WHAT IS TOURISM?

Tourists: The origin of the word “tourist” date back to 1292 AD. It has come from the word
‘tour’. A number of experts have defined the term:

“Tourists are the voluntary temporary travelers, traveling in the expectations of pleasure from the
novelty and change experienced on a relatively and non-current round-trip”.

“Tourist is a person who makes a journey for the sake of curiosity for the fun of traveling”.

Tourist: The UN/WTO (World Tourism Organization) defines visitors as “any person
Traveling to a place other than that of his/her usual environment for less than 12 months
And whose main purpose of the trip is other than the exercise of an activity remunerated
From within the place visited.
Tourists are:

 Persons traveling for pleasure, health and domestic reason.

 Persons arriving in the sea of sea cruise.
 Persons traveling for convention.
In the view of the previously mentioned viewpoints of different experts, the following points
emerge regarding tourism:

 Tourism is a temporary and short-term movement of people.

 Tourism is the totality of relationship.

 Tourism is an activity involving a complex mixture of material and psychological

elements.

 Tourism is the activity concerned with the utilization of leisure hours.

 Tourism is a composite industry consisting of various segments.

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 Tourism – the first commercial venture.

A religious Englishman called Thomas Cook in 1841 arranged, for a fee, a one –day rail
excursion from Leicester to Loughborough for 540 members of a temperance league. Thus the
first bona fide travel agent was Thomas Cook.

While Cook himself did not make a profit on this first venture, he was a man of vision and was
convinced that there was a need for a skilled “travel arranger”. So by 1845 he had become the
first full-time travel agent, operating train excursions from Leicester. The next year he chartered
a train and steamer for an excursion to Scotland for 330 people. In 1851 Cook arranged ocean
steamship travel and accommodations for more than 1,50,000 visitors to the World Exposition in
London and in 1856 he operated the first escorted “grand tour” of Europe. Tours to Europe and
Middle East were also conducted and, in 1872, the first around the world tour was conducted.

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 Tourism as a Global industry

It is difficult to have a command on the cyclic movement of fashion, needs and requirements and
the lifestyles. The process of change is of course, the seeds of dissatisfaction and monotony get a
conducive nexus for their germination and development. Hence to control or regulate the
process, we allow a change which influences our decision making behavior and forces us to
welcome a change place. It was against the background that the travelling was transformed into a
business and of late is an industry. The transformation has witnessed a number of ups and downs
in almost all the areas. Right from the very beginning of the culture and civilization, we find the
process of change continuing, of course as a pilgrimage. There is no doubt in it that the Roman
Empire injected life, strength and continuity to the travelling and therefore, the credibility for the
development of tourism industry ultimately goes to them.

The fall of Roman Empire resulted into the downfall of the tourism, at least still the end of the
middle age. The available facts reveal that the Romans evinced interest in visiting temples,
shrines, festivals and the baths for health and amusement. The contours of development
underwent radical changes at least until the 15th century. The trade and commerce along with
religious activities gained the momentum but till the beginning of industrial revolution, tourism
continued to remain a matter of pilgrimage. Of course a number of developments took place
between 15th and 18th centuries.

Tourism is arguably the world’s largest industry and continuously tremendous annual growth
rates. For the recipients of international tourism, the tourism industry creates dependency upon a
fickle and fluctuating global economy beyond their local control. Local economic activities and
resources are used less for the development of communities and increasingly for export and
enjoyment of others. With so few international policies and guidelines restricting it, tourism has
given free reign to develop throughout the world. In fact, it has leaded the globalization process
in areas of transportation, communications and financial systems.

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Globally, tourism is one of the fastest growing industries in the world, generating wealth and
employment, opening the minds of both visitors and visited to different ways of life. Tourism as
an instrument of economic development will and is taking the greater importance in the future.
There are grounds for optimism about what tourism can mean for poor nations in the 21st
century. Tourism can help poor countries develop by increasing employment opportunities.
Tourism tools encourage activities in least developed countries by promoting, recognizing
developing strategy, encouraging providing what are most desirable, taking measure and
formulating the structure, such as infrastructure. Like any other economic activity, tourism can
also be loss making. But if managed properly tourism can be beneficial is the conclusion.

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 Overview of Tourism industry

Tourism is a temporary, short-term, movement of people to destinations outside the places where
they normally live and work. It involves travels and stay for temporary period to a place distant
from the residence ranging from weekend to a few weeks or months.
Tourism is vital for many countries, due to the income generated by the consumption of goods
and services by tourists, the taxes levied on businesses in the tourism industry, and the
opportunity for employment in the service industries associated with tourism. These service
industries include transportation services such as cruise ships and taxis, accommodation such as
hotels, restaurants, bars, and entertainment venues, and other hospitality industry services such as
spas and resorts.

Tourism is one of the world’s fastest growing industries at present and holds the current status of
the world’s no. 1 industry. The tourism as a whole is presently estimated to earn over US$ 3.5
trillion worldwide.

Tourism industry creates a job every 2.4 seconds with every one of those direct jobs creating
another 11 indirect jobs. Thus it has a great impact on the economy of a country. Spending on
tourism amounts to 5%-10% of total consumer, spending in a year worldwide.

According to the World Travel and Tourism Council, by 2020, the tourism industry will
contribute close to Rs 8, 50,000 crores to India’s GDP. The WTTC also says that the travel and
tourism industry in India employs 17.7 million jobs which are 5.6% of the total number of people
employed in India. This figure is expected to go up to 24.8 million by 2010. The Ministry of
External Affairs says that the tourism industry is the second highest foreign exchange earner in
the economy. This is the very reason why the government of India has been compelled to grant
organizations in this industry export house status.

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Travel and tourism related jobs/employment are not only generated at a relatively low cost and
concentrated in small business and local community but also provide significant opportunities for
women and young people, offer educational training and skill development and protect and
revitalize traditional arts and crafts.

The figures indicate that tourism has certainly become a major social phenomenon of the modern
society with enormous economic consequences. Its importance as an instrument for economic
development and employment generation, particularly in remote and backward areas, has been
now well recognized the world over.

Tourism 2020 vision :

Tourism 2020 Vision is the World Tourism Organization's long-term forecast and assessment of
the development of tourism up to the first 20 years of the new millennium. An essential outcome
of the Tourism 2020 Vision are quantitative forecasts covering a 25 years period, with 1995 as
the base year and forecasts for 2010 and 2020.

UNWTO's Tourism 2020 Vision forecasts that international arrivals are expected to reach nearly
1.6 billion by the year 2020.

By 2020, Tourism in India could contribute Rs 8, 50,000 crores to the GDP.

Tourism industry: Indian scenario

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Tourism industry in india is one of the fastest growing industry. Conde NastTraveler, one of the
world’s most celebrated travel magazines ranked India amongst the top 10 tourist destinations of
the world. JBIC ranked India as the fifth most attractive investment destinations. India has
significant potential for becoming a major global tourist destination. India is known for its
mystical attraction in terms of its rich heritage, diverse culture, religion and scenic beauty, which
makes it one of the most desirable tourism destinations across the world. India’s tourism
destinations such as Kerala, Goa, Rajasthan, Agra etc are already well positioned on the global
tourism map. Further Government has identified locations in various states such as Madhya
Pradesh, Himachal Pradesh, Gujarat, Maharashtra, Bihar, Karnataka, Andhra Pradesh etc to
promote them as tourist’s hub.

Tourism industry also has one of the best employment multipliers when compared with any other
industry in India. It generates maximum job opportunities, as it provides direct employment to
9.1 million people and indirect employment to another 12.4 million. The tourism industry
currently stands 127th on the list of priorities of the Indian government. It is true that India has
yet to reach the prosperity level where leisure activity can be included in the priority sector but,
if solving the country's unemployment and foreign exchange problems are on the top of the
national agenda, the potential of this industry cannot be neglected.

Tourism in India has registered significant growth in the recent years. In 1951, international
tourist arrival stood at around 17 thousand only while the same has now gone up to 3.91 million
in 2005. The upward trend is expected to remain firm in the coming years. Tourism is the third
largest net earner of foreign exchange for the country recording earnings of US$ 5731 million in
2005, a growth of 20.2 percent over 2004. Tourism is also one of the sectors, which employs the
largest number of manpower.

Indian tourism is one of the most diverse products on the global scene. India has 26 world
heritage sites. It is divided into 25 bio-geographic zones and has wide ranging eco tourism
products. Apart from this, India has a 6,000 km coastline and dozens of beaches. India's great
ethnic diversity translates into a wide variety of cuisine and culture. India also has a large
number of villages, plantations and adventure locations. India is home to a great variety of
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wildlife and its reserves are well known throughout the world. It also has one of the world's
biggest railway systems opening possibilities for those interested in rail tourism. India also has
excellent hospitals offering affordable Medicare and traditional healthcare systems like
Ayurveda. In addition to this India organizes numerous fairs and festivals, which are quite
attractive to foreigners.

Tourism sector holds immense potential for Indian economy. It can provide impetus to other
industries through backward and forward linkages and can generate huge revenue earnings for
the country. In the recent 2007-08 budget, the provision for building tourist infrastructure has
been increased from US$ 95.6 million in 2006-07 to US$ 117.5 million in 2007-08.

India’s amazing diversity offers you everything you could ever want in a holiday. From the
moment that you see foot in India to be greeted by a graceful Namaste, a gesture that denotes
both welcome and respect, you are on the way to one of the most rewarding experiences of your
life. Bounded by the majestic Himalayan ranges in the north and edge by a spectacular coastline
surrounded by three seas, India is a vivid kaleidoscope of landscapes, magnificent historical sites
and royal cities, golden beaches, misty mountain retreats, colorful people, rich cultures and
festivals.

At any part of the year India can offer a dazzling array of destinations and experiences. In
summer, when the subcontinent is sizzling, there are spectacular retreats amidst the heady beauty
of the Himalayas or the lush heights of the Western Ghats with cool trekking trails, tall peaks to
conquer or stretches of white water for the adventure seekers.

In the cool of an Indian winter, cities come alive with cultural feasts of music and dance. The
balmy weather is an ideal time for one to go century hoping in romantic cities studded with
medieval forts and palaces.

One can taste the delight of the Indian monsoon anywhere in the country- on a camel safari in the
Rajasthan desert when nature comes alive and the peacocks dance; along the west coast where

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the relentless slanting rain paints the countryside in brilliant greens or even trekking amidst the
stark grandeur of mountain valleys lying in the rain shadow of the Himalayas. Experience exotic
India – live like a maharaja in the rich ambiance of royal forts and palaces that are now heritage
hotels; luxuriate in the serene beauty of a coral island with its turquoise lagoon; participate in the
exuberance of a village fair or a colorful festival; day dream on a house boat drifting down the
palm – fringed back waters; delight in the grace of a dancer or shop till you drop- buying
exquisite silks, carved figurines, brass and silver ware, marble inland with semi-precious stones,
finely crafted jewelry, miniature paintings, carpets …..At unbelievable prices. India always
warm and inviting variety- one that favors tourist with a different facet of its fascination every
time they come on a visit.

The subcontinent of India lies in south Asia, between Pakistan, china and Nepal. To the north it
is bordered by the world’s highest mountain chain, where foothill valleys cover the northern
most of the country’s 26 states. Further south, plateaus; tropical rain forests and sandy deserts are
bordered by palm-fringed beaches.

Side by side with the country’s staggering topographical variations in its cultural diversity, the
result of the coexistence of a number of a religious as well as local tradition. Thus, the towering
temples of south India, easily identifiable by their ornately sculptured surface, are associated
with a great many crafts performing arts of the region.

In the desert of Kutch, Gujarat, on the other hand, a scattering of villages pit themselves against
the awesome forces of nature, resulting in Spartan lifestyle made vibrant by a profusion of
jewelry and ornamental embroidery used to adorn appeal and household linen. In the extreme
north is the high altitude desert of ladakh. Local culture is visibly shaped by the faith Buddhism
as well as by the harsh terrain. Yet another facet on Indian culture is the colorful tribal lifestyles
of the northeastern states of Nagaland, Tripura and Manipur with their folk culture.

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In the central Indian states of Orissa and Madhya Pradesh tribal village life has resulted in a
variety of artistically executed handcrafts. India’s mountain provides heli skiing, river running,
mountaineering and trekking. Its beaches provide lazy sunbathing as well as wind surfing and
snorkeling, and its jungles provide shooting wildlife – with a camera. India’s history goes back
to 3,200 BC when Hinduism was first founded. Buddhism, Jainism, Sikhism, Judaism,
Zoroastrianism, Christianity and Islam all exist with in a country today. As a consequence of
India’s size, the history of a country has seldom been the same for adjoining territories, and its
great natural wealth has lured a succession of traders and foreign influences to it, each having
left their imprint in the country, however faint or localized. Thus, Chinese fishing nets in Kerala
are a throwback to that country’s ancient maritime trade, while in north; terra-cotta figurines of
the centuries BC bear distinctly Greek traces.

Modern India is a home alike to tribal with his anachronistic lifestyle and to sophisticated urban
jet-setter. It is a land where temple elephants exist amicably with the microchip. Its ancient
monuments are the backdrop for the world’s largest democracy where the atomic energy is
generated and industrial development has brought the country within country’s coastline fashion
simple fishing boats in a centuries old tradition while, a few miles away. Motor vehicle glides off
conveyor belts in the state of the art factories.

Industrialization and modernization have been the buzzwords in almost every country, in the post
world war period. Advancements in transportation and communication have been the major
thrust areas for achieving rapid industrialization. As a result many new industries have
mushroomed and have been responsible for catapulting many a nations to the status of highly
industrialized nations. Tourism is one such industry.

Tourism has achieved today the status of an industry and has become more than a cultural
pilgrimage. Realizing the various socio-economic benefits of tourism, governments in all the

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countries are competing with each other in selling “tourism & travel” concept in history, culture,
sunshine, snow and sands to people all over the world.

People with increased disposable incomes are showing interest in holidays, and are warming up
to the idea of travelling and sightseeing. Tourists are swarming places of interest by the hordes.
Globally, tourism is one of the fastest growing industries, accounting for about 8.5% in total
capital investment in the world. As per the projections of the World Tourism Organization
(WTO), by the year 2020, 1.6 billion tourist will cross international borders for holidays.

The Asia-Pacific region has been identified as the number one emerging region in this industry
with an estimated growth of 7.8% annually. By the year 2010, the annual earnings are likely to
reach $3000 billion in this region, whereas the global annual earnings are likely to reach $ 8500
billion.

Tourism is arguably the world’s largest industry and continuously tremendous annual growth
rates. For the recipients of international tourism, the tourism industry creates dependency upon a
fickle and fluctuating global economy beyond their local control. Local economic activities and
resources are used less for the development of communities and increasingly for export and
enjoyment of others. With so few international policies and guidelines restricting it, tourism has
given free reign to develop throughout the world. In fact, it has leaded the globalization process
in areas of transportation, communications and financial systems.

Within the Asia Pacific region, the Indian subcontinent is well poised to take advantage of the
boom in the tourism sector.

The tourism industry is undergoing a sea change with the revolutions in communication and
information technology. Everybody in the tourism industry will have to change and rediscover its
place in newly defined value chain. The role and the service offerings will undergo a big change
in the present cyber world. The 21st century of tourism magic- the most potent weapon of the
name, fame and reward. Therefore, in the new millennium, most of the countries including India

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are spending millions of dollars for the revamping of the existing facilities or the creation of new
ones.

India is a vast country with a history that goes back 5000 years. Its vast geographical diversity,
rich culture and heritage, fair and festivals, snow capped mountains, a vast coastline,
monumental attractions that span the entire country and the gaps in the infrastructure, offer
tremendous potential for tourism.

Travel & Tourism: Driver for economic growth

India INR % of Tot Growth* INR % of Tot Growth**

(Billion) 2006 (Billion) 2016
Personal Travel and 935.4 3.8 6.9 2,857.1 4.0 6.7
Tourism
Business Travel 260.8 - 8.3 822.1 - 7.0
Government 41.2 1.0 7.7 119.0 1.0 6.1
Expenditures
Capital Investment 681.5 7.2 8.3 2,314.2 7.5 7.8
Visitor Exports 302.2 3.3 10.9 1,031.3 1.3 7.8
Other Exports 121.5 1.3 14.6 984.6 1.3 17.6
Travel and Tourism 2,342.7 - 8.4 8,128.2 - 8.0
Demand
T&T Industry GDP 713.8 2.1 7.2 1,881.9 1.7 5.1
T&T Economy 1,827.6 5.3 7.8 5,542.3 5.0 6.6
GDP
T&T Industry 10,679.6 2.4 0.8 10,591.8 2.0 -0.1
Employment
T&T Economy 24,349.2 5.4 1.4 27, 015.8 5.1 1.0
Employment

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Source: World Travel and Tourism Council
*2006 real growth adjusted for inflation (%)
**2007-2016 annualized real growth adjusted for inflation(%)

Total Demand:
India Travel & Tourism is expected to generate INR1,846.3 bn (US$38.8 bn) of economic
activity (Total Demand) in 2004, growing (nominal terms) to INR7,027.7 bn (US$90.4 bn) by
2014. Travel & Tourism Demand is expected to grow by 8.8% per annum, in real terms, between
2004 and 2014.

Employment:
India T&T Economy employment is estimated at 24,456,600 jobs in 2004, 5.6% of total
employment, or 1 in every 17.8 jobs. By 2014, this should total 27,790,000 jobs, 5.7% of total
employment or 1 in every 17.5 jobs. The 11,404,000 T&T Industry jobs account for 2.6% of
total employment in 2004 and are forecast at 12,441,200 jobs or 2.6% of the total by 2014.

Gross Domestic Product:

India's T&T Industry is expected to contribute 2.0 per cent to Gross Domestic Product (GDP) in
2004 (INR618.4 bn or US$13.0 bn), rising in nominal terms to INR2,002.3 bn or US$25.8 bn
(2.1 per cent of total) by 2014. The T&T Economy contribution (percent of total) should rise
from 4.9 per cent (INR1,477.4 bn or US$31.1 bn) to 5.2 per cent (INR4,972.5 bn or US$64.0 bn)
in this same period.

Capital Investment:
India Travel & Tourism capital investment is estimated at INR485.3 bn, US$10.2 bn or 7.2 per
cent of total investment in year 2004. By 2014, this should reach INR1,663.9 bn, US$21.4 bn or
7.8 per cent of total.

Personal And Business Travel & Tourism:

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India Personal Travel & Tourism is estimated at INR927.3 bn, US$19.5 bn or 5.0 per cent of
total personal consumption in year 2004. By 2014, this should reach INR3,612.9 bn, US$46.5 bn
or 6.1 per cent of total consumption. India Business Travel is estimated at INR114.5 bn, US$2.4
bn in year 2004. By 2014, this should reach INR387.4 bn or US$5.0 bn.

Exports:
Visitor Exports play an important development role for the resident Travel & Tourism Economy.
India Travel & Tourism is expected to generate 6.7 per cent of total exports (INR283.2 bn or
US$6.0 bn) in 2004, growing (nominal terms) to INR1,267.3 bn or US$16.3 bn (5.4 per cent of
total) in 2014.

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 Domestic Tourism in India

Domestic tourist:
A domestic tourist is a person who travels within the country to a place other than his usual place
of residence and stays at hotels or other accommodation establishments run on commercial basis
or in dharamshalas/sarais/musafirkhanas/agra-shalas/choultries etc. for a duration of not less than
24 hours or one night and for not more than 12 months at a time for any of the following
purposes:-
i) Pleasure (holiday, leisure, sports etc);
ii) Pilgrimage, religious and social functions;
iii) Business conferences and meetings; and
iv) Study and health.

Any person residing in a country who travels to a place within the country, outside his/her usual
environment for a period not exceeding 12 months, and whose main purpose of visit is other than
the exercise of an activity remunerated from within the place visited.

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Domestic visitors include:
* Tourists (overnight visitors) : Visitors who stay at least one night in a collective
Or private accommodation in the place visited.
* Some-Day visitors: Visitors who do not spend one night in a collective or
Private accommodation in the place visited.
The following are not regarded as domestic tourists:
i) Persons arriving, with or without a contract to take up an occupation or engage in activities
remunerated from within the State/Centre.
ii) Persons coming to establish more or less permanent residence in the State/ Centre.
iii) Persons visiting their hometown or native place on leave or a short visit for meeting relations
and friends, attending social and religious functions etc., and stay in their own homes or with
relatives and friends and not using any sight seeing facilities.
iv) Foreigners resident in India.
Though there is a remarkable growth in the contribution to GDP through tourism industry of
India, it is seen that the major of the receipts were not from the international arrivals but from the
domestic arrivals. There were receipts of nearly $ 3.66 million from the domestic arrivals from
among the total of $ 4.85 million receipts in the year 2005. There was almost growth of 30%
from the previous year. Thus domestic tourism accounts for the major contribution to the GDP.

According to WTO, global domestic tourism flows at least 10 times greater than the
international tourist flows. There is a huge scope for domestic tourism in India. There are major
states such as Uttaranchal, Andhra Pradesh and Tamilnadu contributing more than 50% of the
total receipts. One of the major drivers for domestic tourism is the pilgrimage tourism. A
National Council of Applied Economic Research (NCAER) study says that Thirupathi in
Andhra Pradesh is the largest recipient of religious tourists earning USD 224 million, Vaishnavo
Devi USD 168 million, and Ajmer Sharif in Rajasthan USD 83 million. Others earn several
million dollars but are not accounted for because most religious tourists travel meagerly as a
pilgrimage and not as a luxury.

Tourism is a generic term, which includes several types of travel and stay depending upon the
motives that impel people to move form one place to another. The main purpose of travel

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determines the form of tourism. Following are the forms of tourism: Domestic tourism, internal
tourism, Recreational tourism, Health tourism, Sports tourism, Cultural tourism, Business travel,
Common interest tourism. Some of the major forms in India are as follows:

Eco tourism:

Ecotourism, also known as ecological tourism, is a form of tourism which appeals to the
ecologically and socially conscious. Generally speaking, ecotourism focuses on local culture,
wilderness adventures, volunteering, personal growth, and learning new ways to live on the
planet; typically involving travel to destinations where flora, fauna, and cultural heritage are the
primary attractions. Sustainable development needs to have social, economic and environmental
needs all together to occur.

Eco tourism is defined as responsible travel to natural areas and sustains the well being of local
people. It is further an amalgamation of interests arising out of environmental, economic ans
social concerns. Tourism has become one of the largest global activities and a way of paying for
nature conservation and increasing the value of land. The flow of dollars can flow back into
conservation and make it pay for itself. The ministry of environment and forests issued
guidelines under which all tourism projects in hills and forests have to get environmental
clearance. The World Travel and Tourism Council is concerned about the increasing number of
tourists worldwide and has issued guidelines focusing on being sensitive to conservation aspects,
protecting threatened areas, species and scenic aesthetics, conserving energy and reducing and
recycling waste.

India, the land of geographical varieties offers several tourist destinations that not just de-stress
but also rejuvenate you. There are several ways to enjoy Mother Nature in most pristine way.
There are series of eco tours for India that provide the coolest hangouts to take pleasure in
indulging oneself into the God gifted environs.

Heritage tourism:

Cultural heritage tourism (or just heritage tourism) is a branch of tourism oriented towards the
cultural heritage of the location where tourism is occurring.

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Culture has always been a major object of travel, as the development of the Grand Tour from the
16th century onwards attests. In the 20th century, some people have claimed, culture ceased to be
the objective of tourism: tourism is now culture. Cultural attractions play an important role in
tourism at all levels, from the global highlights of world culture to attractions that underpin local
identities.

cultural heritage tourism is the fastest growing segment of the tourism industry because there is a
trend toward an increase specialization among tourist. This trend is evident in the rise in the
volume of tourists who seek adventure, culture, history, archaeology and interaction with local
people.

Cultural heritage tourism is important for various reasons; it has a positive economic and social
impact, it establishes and reinforces identity, it helps preserve the cultural heritage, with culture
as an instrument it facilitates harmony and understanding among people, it supports culture and
helps renew tourism. Heritage tourism involves visiting historical or industrial sites that may
include old canals, railways, battlegrounds, etc. The overall purpose is to gain an appreciation of
the past.

Heritage on wheels:

A Journey into the Past...

Backed by the global success of the Palace on Wheels, Rajasthan Tourism Development
Corporation and Indian Railways in their first ever endeavor takes you on board The Heritage on
Wheels, a luxury tourist train on meter gauge enroute to the unexplored regions of Bikaner and
Shekhawati, famous beholders of the Heritage of Rajasthan.

The entire Rajasthan has been a passion to be explored by the tourists. Bikaner and Shekhawati
being lesser explored regions have been chosen for the Heritage on Wheels.

The heart of heritage:

Discover the heart of India as you travel through Madhya Pradesh. A landscape of abundant
forests, soaring hills and silver rivers that was once Kipling's India. Here, experience the timeless
spirit of ancient India. Where Empires rose and fell, leaving behind in forbidding fortresses and

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ornate palaces, the memory of their past glory. The pilgrim's route meanders through temples
where stone carvings capture every facet of life. And the faithful worship at Buddhist stupas.

Adventure Holidays:

India’s vast geographical diversity provides a vast potential for adventure tourism. All tastes are
catered to and there is something for everyone. Form the gentlest to the fast placed, for the
beginners to the experts. Besides this the prices here are lower as compared to international
standards. Travel agents and tour operators very often specialize in certain fields, offering
package deals for groups as well as individuals. Mountaineering, trekking and rock climbing,
ballooning and hand gliding, camel treks and desert safaris, white water rafting and river
exploration are some of the exciting possibilities. Apart from this there are sports like skiing,
scuba diving and underwater coral viewing, angling, wild life and bird watching, golf, tennis,
badminton, polo, swimming and motor rallies amongst the sports

Ever felt the waves of a river on your face, wish to see to the land and everything on it from a
height of 18,000 feet? Fancy trotting from one palace to another riding a camel or perhaps get a
better view of the jungle sitting smart on an elephant? Well if any of them is an affirmative, the
adventure holidays and tourism in India are just for you. Try out the aerial, aqua or land
adventures and enjoy. The quest to do the uncommon, the desire to meet challenges makes
people take up any of the adventure activities and rejuvenate themselves. India is the land of
variety and diversity. The terrain of the sand dunes and long stretches of barren land is ideal for
desert safaris, the queen of rivers, the fun of watching the wildlife at the Corbett National Park
gets multiplied when enjoyed riding an elephant, the Ganges is irresistible for the water sports
and the scenic beauty of Jammu is picture perfect for the paragliding. You name the adventure
and India has the right spot for it.

Desert adventure in Rajasthan:

Rajasthan still retains an elusive fairy-tale character. A land where the tales of valour of its
medieval Rajput warriors are still sung by its travelling bards. Rajasthan is the 'Land of Kings'.
Where opulent palaces dot the desert landscape and battle-scarred fortresses appear on every hill
like sentinels of the past. Here, folk culture still retains all its colour and vivacity. With
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exuberant celebrations of fairs and festivals. A music that echoes across the desert emptiness and
a tradition of craftsmanship with a highly developed aesthetic sense. The four cities on your
itinerary will create a perfect portrait of this exotically-beautiful desert land.

Mountaineering:

scaling the Himalayan peaks- the greatest adventure of all. The mighty mountains stretching
across the northern borders of India have hundred of peaks, many yet unscaled and inviting the
intrepid mountaineer. The states of Jammu and Kashmir, Himachal Pradesh, Uttar Pradesh and
Sikkim offer bases for mountaineering expeditions. There are agents who can make all the
arrangements for groups or individuals including food, transport, porters, camping equipment,
etc. the best season for mountaineering is from May to October and six months notice is required
to book a peak.

Trekking:

India is the ultimate destination for a trekking holiday, offering everything from short and easy
excursions to the long challenges of the snowy peaks, invoking visions of the spectacular
Himalayas, the lush meadows, green woodland and fragrant orchards. The captivating landscape,
with an incomparable diversity of flora and fauna: India is regarded as the 'trekkers' paradise'
and, indeed, is a refreshing treat to the trekkers. The spectacular Himalayas are the abode of
snow and evoke unmatched feelings of reverence and excitement and offer wonderful bevy of
trekking routes. Peninsular India offers natural beauty of another kind of trekking. The Western
Ghats, the aravalli hills, the saptura range and the Nilgiri Mountains have a rich heritage of flora
and fauna, each with a special lure of its own. Treks can be taken along the remote areas or the
route pilgrims have trekked year after year to remote shrines in the mountains.

Rock climbing:

Rock climbing in India can be an enriching experience- quite apart from the exhilarating
experience of climbing on virgin solid granite. As the climbing standards reached greater heights
in the rest of the world, India too was introduced to sticky rubber, chalk, modern protection and
higher climbing standards and development of many superb climbing areas. Some of the areas

20
are superb and can easily be compared to some world class climbing areas. The climbing areas
usually being close to interesting historical sites and unique monuments can provide a pleasant
distraction. Rock climbing, is constantly increasing its tribe of enthusiasts. Rock climbing uses a
minimum of aids and the challenge is to find the toughest route and scale in the least possible
time. Especially popular in the foothills of the Himalayas wherever there are rocks and hills, stiff
climbs and Sheer Mountain sides- rock climbing is the favorite spot.

Ballooning:

About 50,000 cubic feet of hot air fills a giant nylon balloon to which a basket is attached. Hot
air ballooning is becoming a great adventure option in India. A festival balloon mela is organized
in Delhi every year and anyone can take a joy ride. The Ballooning Club in India organizes
numerous international balloon festivals and demonstration flights annually. The best time to
indulge in ballooning is after sunrise when the winds are at their calmest. Winter months provide
the most reliable conditions, but during summer it is better to take off early in the morning.
There are ballooning clubs in Guwahati, Dehradun, Bangalore, Delhi and Jaipur. Balloon Ride
over The Taj Mahal: Hot-air ballooning in India is being given a new dimension by some travel
agents/tour operators. They not only operate joy flights on the balloon but also conduct
interesting tours like balloon-cum-horse or camel safaris. They also offer a view of the Taj
Mahal from a balloon, with the Yamuna flowing by. The sight is not only an exciting but also a
thrilling experience.

Hand gliding:

The sport of hang gliding involves hanging suspended by a harness from a large flying
instrument- a kind of kite shaped vehicle called a hang glider. With the help of certified
instructors anyone can fly with only ten minutes of instruction on the ground hang gliding has
really caught on with clubs coming up in cities such as Bangalore. While India has good thermal
soaring effects during the summer months, and offers hill soaring almost round the year, the
soaring in the winter months, although too static-is also good for hang gliding.

Camel treks and Desert safaris: Rajasthan, India's westernmost state is the very essence of exotic
India. You can see Rajasthan on a jeep safari. Or, if you've a penchant for the high life, aboard
the "Palace on Wheels", the luxury train. But to really get a hands-on feel of the desert state,
21
nothing comes close to a camel safari. Climb up on one of these seemingly ungainly beasts, hang
on for dear life, and let the good times roll, for the Ship of the Desert walks in a way which
would certainly remind any sailor of a rolling, pitching deck in turbulent waters. The Great
Indian Desert provides the scene for exploring the old routes on camel carts. Jeep tours can be
taken over remote desert tracks that are rarely taken by tourists.

White water rafting and river running:

Many a river in the country especially the North Indian Rivers present themselves as a collection
of the best white water in the world within a small geographical location. A number of Lakes in
the Kumaon Region and The Ganga with its upper tributaries (Alaknanda, Bhagirathi and various
other smaller tributaries) can be hailed as the Queen of the White Water Rafting Industry. The
mighty Indian rivers tumble and crash through the mountains to form whit water rapids and
terraced cascades. This is a paradise for the white water sportsmen. Ladakh and Zaskar valley in
Kashmir, lahul valley, the Garhwali hills and Sikkim are some popular areas. The Indus, Zaskar,
Ganges, Ravi, Beas, Chenab and teesta are rivers with both rough and calm waters. These rivers
are excellent for both beginners’ and experts. These rivers are excellent for canoeing and
kayaking.

Winter sports:

Gulmarg in Kashmir is India’s most popular and developed ski resort with most modern
equipment. There is an institute of skiing and mountaineering, which offers training courses. The
Gulamrg- khilanmarg route is a great experience for ski mountaineering enthusiasts. Kufri also
offers skiing. Along the rohtang pass, skiing is possible in summer also. Shimla offers ice-
skating and speed skating.

Motor rallies:

through out the year many rallies are held whose dates can be obtained through the nearest
tourist office. The Himalayan car rally attracts the international participation and goes through
the mountains of Himachal Pradesh and Uttar Pradesh.

Beach resorts:

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Has the combination of Sun, Sand, Sea and Surf ever tempted you to take a break from the daily
monotonous chores that you perform so religiously? Then we have just the right package for you
with the sure-shot itinerary to relax you completely. The balmy beaches of India are perfect
escapade for the fun loving holiday tourism seekers. India with its long coastline of 7500 kms,
offers some of the most exotic beach holidays and beach tourism destinations in the world. The
great peninsula with the Indian Ocean in the middle and accompanied by the Arabian Sea and the
Bay of Bengal on each side besides the two archipelagos of Lakshadweep and Andamans is
perfect for beach holidays for tourists the world over. The young state of Goa certainly happens
to be the Beach Capital of India. It offers the perfect spot for the novice divers. The blaze of
glory, the beautiful waves, the swinging palms and the many hues of the sky, the nature is for
sure at its best at the beaches. India boasts of many beaches of Goa in the West, Kovalam in the
South and Gopalpur in the East. So you may head towards any direction of the Indian peninsula
and be invited to the sun bathed beaches. The never-ending shores and the untouched oceanic
horizons seem to be mesmerizing. The photogenic dawn and dusks at the beaches are sure to be
repetitive visitor to the shores. A sunrise over the horizon turning the sea into molten gold. The
crashing surf streaming up the sand and then receding again, leaving behind sea shells and
driftwood. The swaying, fringed shadow of the palms. On the eastern and western coasts of
Kerala, endless beaches offer you a balmy holiday. The Konkan coast in the west has the beaches
of Goa and Diu. Go southwards to the white sands of Kovalam on the Malabar Coast. On the
Coromandel Coast in the east are the rock-cut temples by the sea at Mamallapuram and the
seaside retreat at Gopalpur-on-Sea. These breathtaking beaches promise the perfect escape to
tranquility.

Scuba diving:

the best spot for scuba diving and snorkeling is at the Andaman Islands, which has a vast
plethora of coral and marine life that is equally interesting to the tourist and naturalist. This clear
water permits exciting under water photography for enthusiasts.

Wild life tourism:

India is home to a rich diversity of wildlife supplemented by an equally rich variety of flora and
fauna. The sight and sounds of a majestic elephant, a peacock’s dance, the stride of a camel, the

23
roar of a tiger are unparalleled experiences in themselves. Watching birds and animals in their
natural habitats is an experience in itself. The country offers immense opportunities for wildlife
tourism. The immense heritage of wildlife in India comprises of more than 80 national parks and
about 441 wildlife sanctuaries including the bird sanctuaries. Indian wildlife has its share of
native birds along with the migratory birds. Several hundred species of birds can be spotted
across India. The Himalayan region is well known to be the natural habitat for the Pheasant,
griffon vulture and ravens. The Keoladeo Ghana National Park popularly known as the
Bharatpur Bird Sanctuary in the Indian state of Rajasthan, in close proximity of Delhi, is home to
indigenous water birds, waterside birds, migratory water birds, land migratory birds, and
domestic land species. Tourists from far and wide are attracted to the Bird Sanctuary. At the
Dudhwa wildlife reserve migratory birds like Egrets, herons, storks and cormorants share space
with the ducks, gees and teals. Tropical forests in its eastern contrast with pine and coniferous
woodlands of western Himalayas. The thrill spotting herds of wild elephants, deer, a rhino or
even a tiger in its natural environment is very difficult to match.

The Buddhist circuit:

Two thousand five hundred years ago, a gentle sage taught the world the path to enlightenment.
Sakyamuni, Gautama Buddha, travelled this land preaching his message of compassion,
simplicity and renunciation. This circuit is a pilgrim's passage through the palaces immortalised
by the enlightened one. The highlight of your journey will be the Holy Bodhi tree at Bodhgaya
under which he gained enlightenment. Visit Sarnath where he gave his first sermon and
Kushinagar where he attained Parinirvana. And among the ruins of Nalanda you can still hear a
distant echo of the chants of scholars of ancient times.

Cultural Holidays:

Ever wondered at the cultural diversity of India? The enticing unity represented by the people of
the country who display a wide range of religions, culture, customs and languages. The rich and
varied heritage happens to be one of the many sources of pride of the nation. The mysterious
ways of the people, their lifestyles and the inseparable culture cannot be done solved in words
but can surely be enjoyed with experience.

Ayurveda and Rejuvenation:

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India adheres to the age-old philosophy of Ayurveda - in a traditional way - that's what makes
India a different locale to visit. Ayurveda recognizes that each individual is different and so
treatment too should be customized. Ayurveda, the traditional Indian system of medicine holds
out to the world the promise of a healthy long life. step into the world, where healing is a ritual
and nurturing life a tradition, i. e. experience the magical power of Traditional Ayurveda.
Ayurveda and Rejuvenation programs include a few programs combining Ayurveda along with
sightseeing and other aspects of tourism in India. An extensive and well - crafted out Ayurvedic
treatment package that would rejuvenate your body and mind and make you face the hustle and
bustle of the city life again.

Golf Tours:

If Golf, is what you are passionate about and you happen to be an avid traveler then the 21 day
Golf Holidays package of India being offered is something you cannot refuse to go ahead with.
The perfect break from the stressful routine religiously followed otherwise. Just catch up with
the Golf fever that has caught the entire country in a big way. Add that extra touch of versatility
in you by playing the different surfaces in the various golf clubs developed in several cities of
India. The turfs, the mounds, the climate, the yards of green all make golf better than ever before.

Railway Tours:

Kuuuuu& Chuk Chuk !!! Doesn't the whistle of the luxury train. Be onboard the luxury trains of
India, the Palace on Wheels, the Royal Orient and the Toy Trains are the pride of Indian
Railways, the largest passenger train service in the world seem to invite you. The Palace on
Wheels lives by its name and is no less than a fort on the swing. The lavish lifestyle, the
facilities, the décor, the comfort and the style have made the first tourist train of India the most
sought after. The marvelous train that today is a joint effort of the Rajasthan Tourism
Development Corporation and the Indian Railways. During this excursion, the tourists are
overwhelmed with the beauty at the major stations of Jaipur, Chittaurgarh, Udaipur, Jaisalmer,
Jodhpur and Bharatpur, and Agra chugging through the culturally colorful states of Rajasthan
and Gujarat. You may even opt for a voyage onboard the Royal Orient, the train offering both
25
style and comfort. It is a project of the Tourism Corporation of Gujarat Limited along with the
Indian Railways. The rainbow of cities trotted by the royal extravagance of the bygone era
include Delhi, Chittaurgarh, Junagarh/Veraval, Somnath/Sasan, Gir/Ahmedpur, Mandvi/Palitana/
Sarkhej, Ahmedabad and Jaipur. Besides the Royal trains, the toy trains of India have attracted
many a tourists. The ride on the train with a 4500 kilometers track chugs through the popular hill
stations of the country like Shimal, Darjeeling, Ooty/ Udagamandalam or Ootacamund and
Matheran. The toy trains are called so because of the narrow gauge railway lines they ride on.
The wondrous miniature of rail engineering that offers the most scenic beauties of the Himalayas
from Kalka to Shimla and another from Jal Pai Guri to Darjeeling.

Yoga Tours in India:

India has been the land of saints and sages who meditated and practiced yoga. The spiritual city
of Rishikesh happens to be the Yoga capital of India. Tourists and travelers flock to contemplate
and practice Yoga and meditation in the lap of Himalayas. The city hosts the International Yoga
Week every year in the month of February attracting several experts and participants.

Backwater Tours in India:

Cruising along the backwaters of Kerala is an ideal way to discover the real Kerala. The placid
backwaters that stretch for over fifteen hundred kilometers are covered with swinging palm trees.
The tourists are left spell bound by the tranquility of the backwaters while riding the Houseboats,
it's the most authentic and unexplored way to explore the beauty of the backwaters. The
Houseboats that float on the backwaters are the improved version of the Kettuvalloms. The
frequently visited tourist destinations amongst the backwaters in Kerala comprise of Kovalam,
Alappuzha, Kottayam and Ernakulam. The tourists may indulge into tourism activities like
boating, fishing and sightseeing while exploring the backwaters of Kerala. The backwater
cuisine, which comprises of delectable fresh fish like pearl spotted fish, barramundi, crabs,
mussels and prawns is finger licking good.

Special theme parties: Under these the following options are available

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Moonlight Boat Cruise on the Backwater of Kerala:

Guests are ferried aboard a spacious, specially decorated boat for a delightful moonlight cruise
on the backwater of Cochin. South Indian culinary surprises are served. There is also a thrilling
firework display.

Corporate incentive tours:

In today's world incentive travel is one of the most effective marketing and motivational tools
especially in the corporate sector. After all those long hours at work let the corporate employee
get the much-deserved break in the form of an incentive. The various corporate incentive tours
that are offered have been planned in a manner to rejuvenate and refresh the employees for the
forthcoming assignments.Along with the corporate incentives tours arrangements can be made
for conferences, conventions, seminars, board meetings, client presentations, training programs,
workshops, dealers meet or any other relationship building activity in any destination in India.

Dream Marriages:

Tie the knot with your knight in shining armor in the most royal way. Celebrate the biggest and
the best occasion of your life - Marriage- in the most beautiful style. Get married at any of the
captivating castles, pulsating palaces or the happening hotels and make your dream come true. At
your dream marriage there will be fun and festivity all around backed by the music of your
choice and decorations with your favorite flowers. The feast to your eyes and ears will be
equaled by the sumptuous food that will treat the taste buds at the dream marriage. From
champagne bottles and confetti to photographers we can arrange it all for the special you and the
very special occasion of your dream marriage. The setting for the realization of your dream will
be splendid and the arrangements will be spectacular for your marriage that will bring smiles on
every face and heart!
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The golden triangle:

This triangle of three cities perfectly captures the pageantry of India. A gorgeous panorama of
majestic architectural creations and a rich tradition of art and culture.
The marble symphony of Shahjahan's Taj Mahal, the imperial elegance of Lutyen's New Delhi,
and the splendor of the desert city of Jaipur. Every city offers its unique blend of sights, sounds
and experiences. From the opulence of the Mughal empire to the vibrant life of modern India.

The great pilgrimage:

As the sun rises over a holy river or the sea, the air echoes to the pilgrims' chant of mantras. An
eternal dawn ritual asking for the benediction of the Gods. Discover the ancient roots of
Hinduism in these age-old cities. Where religion is more than an act of worship; it is a way of
life. Celebrating one of the oldest living religions of the world. At Prayag, take a dip at the holy
confluence of the Ganga, Yamuna and Saraswati rivers; while Varanasi is a city that sings out its
prayers to Lord Shiva. From the tumultuous sea of Puri and Konark, the pilgrims wend their way
to the Jagannath Temple and the exquisite Sun Temple.

Religion in stone:

Discover the worship of the Almighty, through craftsmanship, at Belur and Halebid. Here, the
sculptors and stone carvers of the ancient Hoysala kingdom built temples that show their joyous
devotion through their creation. At these temples, the interior and exterior walls are decorated
with intricately-carved deities, stylised motifs from nature and friezes depicting life during the
reign of the Hoysalas. For centuries, travellers have marvelled at the delicate intricacies of the
carvings. And the ability of the sculptors to breathe such exuberant life into unyielding stone.

The lure of jungle:

The total area of India's protected wildness is approximately 140,000 sq km and constitutes 4
percent of the century's total land area. The emphasis has not only been on protecting wildlife in
28
reserved forests, but in areas where man and animal continue to live in harmony. The country's
protected wilderness consists of 80 National Parks and 441 Sanctuaries, of which 19 fall under
the purview of Project Tiger. Its climatic and geographic diversity makes it the home of over 350
mammals and 1200 bird species, many of which are unique to the subcontinent. The land of tiger
and the elephant, the peacock and the rhinoceros, India's wildlife is a delight for the nature lover.
The wildlife parks and sanctuaries spread across the country offer a fascinating diversity of
terrain, flora and fauna.

ENVIRONMENTAL ANALYSIS

Social:
Tourism was always looked upon as something that led to the destruction of the social fabric of a
place. The more the amount of outside people coming into a place, the more the perceived risk of
that place losing its identity. A good example is Goa. From the late 60's to the early 80's when
the Hippy culture was at its height, Goa was a haven for such hippies. Here they came in
thousands and changed the whole culture of the state. This had a ripple effect on the country.
People became cautious, especially of the international tourists. Whenever a certain place
became famous, the example of Goa was cited to discourage the inflow of international tourists.
However some places such as Kerala and Rajasthan have been able to strike a balance between
their own culture and the demands of the international tourists and have profited handsomely in
the bargain. People are now adopting themselves to the fact that tourism pays and it can be a
major source of income for them.
In addition, tourism as a form of recreation has really caught on. People themselves have started
traveling and are willing to travel to a place that is out of the way and exotic. While traditionally
traveling on a holiday meant going to a hill station or a beach, now people are willing to go in for
adventure tourism and also visit places that might be exotic and cannot really be called
hospitable. For example, now places like Leh and Lakshwadeep are mentioned in the same
breath as Goa or Kashmir.

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Legal:
The laws that govern the industry are not the same in all the parts of the country. Many of the
laws that are in effect are old and archaic, and not geared to meet the challenges of the 21st
century.
With respect to taxation, the World Travel and Tourism Council has observed that
“Tax paid by tourists in India is the highest in the world. Indian hotels charge about 40%
tax compared to other Asian countries where it varies between 3% and 6%".
Such high taxation renders the tourism sector as a whole uncompetitive. Further, there is
considerable disparity between state level taxes, especially on food and beverages. In fact, the
sales tax on imported beverages varies widely, e.g. 63% in Karnataka to 28.75% in West Bengal.

With respect to Foreign Investment in any tourism related venture, clearance must be obtained
from the Central government (RBI or Foreign Investment Promotion Board). 51% foreign equity
is automatically approved subject to meeting certain prescribed criteria, including having a
capital base proposal below US $143 million (Rs. 6 billion). In the case of NRIs, 100% foreign
equity is automatically approved. Foreign equity holding above 51 percent are possible, but are
subject to FIPB approval. It is to be noted that the Ministry of Industry provides final clearance
of FIPB approvals.
Dividends on such investments are repatriable.

The National Policy on Tourism lays emphasis on sustainable development of tourism. In

accordance, the Government has brought out a comprehensive Eco Tourism Policy and
Guidelines. There are several Acts and laws, which ensure sustainable tourism. These are the
Wild Life Protection Act 1972, the Environment (Protection) Act 1986, and Prevention of
Cruelty to Animals Act 1986. These do not set aside any specific area for tourism, but such areas
have to be identified by the State Governments and obtain the required approvals/relaxations.

Economic:
The tourism industry not unlike the other industries grows with the increase in the spending of
the people. The more the people spend the more the industry grows. The spending power of the
people has been increasing in the country and all over the world. Since we are concentrating on

30
the international tourists, the large increase in the spending power in most developed countries
has left a large amount of idle cash in their hands. This has led to a tourism boom the world over
and India has been no exception. There have been more people coming into the country with
more cash than ever before. This has lead to an increase in the demand for better hotels. People
who previously used to come to the country on a shoestring budget and hunt around for the
cheapest accommodation can now afford to go in for luxury hotels. This has led to an increase in
the number of hotels in the country. However, an increase in spending does not only limit itself
to accommodation. The increase in the spending is also evident in the increase in the number of
people traveling by air. Even the number domestic tourists traveling by air has dramatically gone
up.

Political:
The political factors are the main driving force of the industry. The Indian tourism industry is
built on the backbone of Government support and the industry cannot sustain itself without it.
The various archaeological sites and the places of historical importance, the roads and the
railways are all in the hands of the Government. All the support services like the hotel industry,
the airlines industry and the tourist operators to name some are heavily dependent on the support
and the cooperation of the Government.
The major reason as to why tourists visit India is for the vast and rich heritage that our country
has. That is under the control of the Government, through the Archaeological Survey of India.
Any policy change that comes into force can have dramatic effect on the way the industry
players perform. For example, the Government charges high rates of taxes on the luxury and the
star category hotels and this has always been a cause of disagreement between the hotel
associations and the Government. There are many areas where the growth of tourism has not
been rapid or has seen dramatic fall because the political environment has not been conducive.
Examples are the North East for the former and Kashmir for the latter. The neglect of the
Government in developing the North-East has led to a situation where there is practically no
tourism in the seven states.

Similarly, the political turmoil in the state of Kashmir and now in Gujarat has caused a virtual
decimation of the flourishing tourism industry. However, there has been a change in many of the
31
policies of the Government with regard to the tourism industry. The hotel industry has been
getting many incentives and many State Governments are encouraging the growth of major
hotels in their states. After years of tight control over airport infrastructure, Government has
finally taken the decision to privatize the airports.

Technological:
Although technology does not seem to be a major influence at first glance, it plays a major part
in the promotion of a place. Better communication facilities are one of the first prerequisites for
growth in the inflow of tourists. This has been made possible with technology. Improved
technology in the field of communication at cheaper costs has resulted in many remote and
inaccessible areas of the country getting connected to the rest of the world. This connectivity has
made these places visible to the world. Better communication means access to media. And that is
very important if any place wants to be on the world tourist map.
Similarly better transportation facilities have lead to a dramatic increase in the number of tourists
visiting any particular place. The presence of an airport and the availability of frequent flights are
a great convenience to any traveler.

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 SWOT Analysis:

STRENGTHS:
 India's geographical location, a culmination of deserts, forests, mountains, and beaches.
 Diversity of culture i.e. a blend of various civilizations and their traditions.
 A wealth of archeological sites and historical monuments.
 Manpower costs in the Indian hotel industry are one of the lowest in the world. This
provides better margins for the industry
 A very wide variety of hotels is present in the country that can fulfill the demand of the
tourists. There are international players in the market such as Taj and Oberoi. Thus, the
needs of the international tourists and travelers are seen to while they are on a visit to
India.
 Political commitment to tourism development
 Acknowledgement of public and private sector partnership

WEAKNESSES:

 Lack of adequate infrastructure. The airlines in India, for example, are inefficient and do
not provide basic facilities at airports. The road condition in India is very bad.
 No proper marketing of India's tourism abroad. Foreigners still think of India as a land of
snake charmers. There are many places where the image of India is one of poverty,
superstition, and diseases. The case of Plague in Surat in 1994 led to a decrease of 36% in
arrival of foreign tourists in India.
 Limited market segmentation
 Lack of awareness about India’s tourist potential

33
  Political instability
 Lack of awareness about potential for employment and economic development

OPPORTUNITIES:
 More proactive role from the government of India in terms of framing policies
 Allowing entry of more multinational companies into the country giving us a global
perspective.
 Growth of domestic tourism. The advantage here is that domestic tourism and
international tourism can be segregated easily owing to the difference in the period of
holidays.
 Cooperation among competitors
 SAARC countries : a viable target
 Restrategise offerings to corporate clients

THREATS:

 Economic conditions and political turmoil in other countries affects tourism.

 Political turbulence within India in Kashmir and Gujarat has also reduced tourist traffic
 Aggressive strategies adopted by other countries like Australia, Singapore in promoting
tourism.
 India’s image of an unsafe country
 Victim of seasonality
 Under provision of infrastructure
 Competition from existing and future destinations
 Growing terrorism

34
We have seen in the SLEPT analysis how various environmental forces influence the tourism
industry. The other aspect of this industry is that it is heavily dependent on a set of other
industries that are in turn dependent on the tourist flow of their business. This combination of
carious industries has to work as one to increase the tourist traffic of the country. this set of
industries takes care of the activities like travel, accommodation, sight seeing, entertainment, etc.
major industries that support tourism are:

Accommodation:
Accommodation includes hotels, ranging from the biggest international chains
recognizable worldwide such as Hilton and Holiday Inn to small independent establishments. In
order to gain recognition in an increasingly competitive marketplace, many smaller independent
hotels have grouped together, adopting a consortium approach. Under a central brand name, they
can offer central reservations services, for eg. and present a recognizable identity to consumers
which enables them to compete against the larger, more established chains. Other types of
accommodations are also well established in tourist markets, notably self-catering apartments
and club type complexes.

With the innumerable dream destinations India offers the best of the accommodation
facilities to the travelers to the land. There are plenty of hotels and resorts in India that cater to
the needs of tourists of all kinds. The hotels and resorts in India provide high standards of quality
of accommodation, facilities and comforts to satisfy the client’s at the most reasonable rates. The
variety of hotels and resorts in India ranging from Luxury Hotels, Standard Hotels, Budget
Hotels to the Heritage Hotels In India. Then there are several Indian & International Hotel
Chains in India. The services and the facilities are such that the hospitability of India gets

35
revealed always. Throughout the length and the breadth of the country that is dotted with tourist
destinations the hotels and resorts are available to make your experience of India unique.

The incomparable and incredible land of India offers plenty of accommodation options
such that the visit to the wonderland suits all pockets. The country where tradition and trends
fuse to give you the best the range of possible accommodations is vast. There are the exclusive
hotels and hotel chains that boast of luxurious amenities and world-class décor.

Hotels in India have been categorized on different parameters all of them taking into
account the factors such as service provided, infrastructure, location, heritage value, and types of
guests accommodated. Like many other countries worldwide, these categorizations help the
common travelers zero down on the accommodation option he can afford or wanted to stay at
during his/her visit.

Hotel industry:

Hotels form one of the most important support service that affect the arrival of tourist to a
country. The major players in the industry are Indian Hotels Company Ltd (IHCL) operating
under the Taj brand, the Oberoi, Oriental hotels, hotel Leela venture and the Ashoka chain of
hotels, owned and operated by the Indian tourism development corporation.

There are around 1000 classified hotels and the total room availability is pegged at 60000 rooms.
Hotels are classified into six categories according to the star rating assigned by the development
of tourism. These range from one star to five star deluxe depending upon the size and amenities.
About 30% of the rooms fall under five star categories. To identify the present status of this
industry we have done a SWOT analysis. This will help us in understanding this industry and
also identify the weak points.

Strengths:

 A very wide range and variety of hotels are present in the country that can fulfill the
demand of tourists.
 There are international players in the market such as Taj and Oberoi.

36
  Manpower costs in the Indian hotel industry are one of the lowest in the world. This
provides better margin for the industry
 India offers a readymade tourist destination with the resources it has. Thus the magnet to
pull the customers already exists.

Weaknesses:

 The cost of land of India is high at 50% of total project cost as against15% abroad. This
act as a major deterrent to Indian hotel industry.
 The hotel industry in India is heavily staffed. This can be gauged from the facts that
while Indian company have to staff to room ration3:1, this ratio is very high compared to
international ratio which is 1:1.
 The hotel industry in India has a major burden of tax over it. The expenditure tax, luxury
tax and the sales tax inflate the hotel bill by over 30%.
 Only 58000 rooms are available in India today which is very less.
 The services currently offered by the hotels in India are only limited value added
services. It is not comparable to existing world standards.

Opportunities:

 Demand between the national and the inbound tourists can be easily managed due to
difference in the period of holidays. For international tourists the peak season for arrival
is between September to march when the climatic conditions are suitable where as the
national tourist waits for school holidays, generally the summer months.
 In the long- term the hotel industry in India has latent potential for growth .This is
because India is an ideal destination for tourists as it is the only country with the most
diverse topography. For India, the inbound tourists are a mere 0.4% of the global
figures .This number is expected to increase at a phenomenal rate thus pushing up the
demand for the hotel industry.
37
Threats:

 Guest houses replace the hotels. This is a growing trend in the west and is now catching
up in the whole India, thus diverting the hotel traffic.
 Political turbulence in the area reduces tourist traffic and thus the business of hotels. In
India examples of the same are insurgency in Jammu and Kashmir & the Kargil war.
 Changing trends in the environment which are difficult to implement due to high project
costs.
 The economic conditions in a country have a direct impact on the earnings in the hotel
industry.

Transportation industry:

Tourism industry is heavily dependent on the transportation industry which comprises of airlines,
cruise and ferry lines, passenger railways, coach and bus travel, car hire. Thanks to the increase
in tourist traffic, over the years, the range of airline services has considerably, not only in terms
of frequency of flights and number of destinations, but also in terms of different services, and
differing levels of service to meet different passenger needs. This shows the important role
marketing plays as competition and demand intensifies. Passenger rail services have also
changed, and their role in tourism is as wide as with, for example, Euro rail tickets allowing
extensive international travel at basic(service) standard for students and budget tourists, to the
luxury of Palace on Wheels – where the train voyage is the holiday. Cruise lines are operating
different services tailored to consumers’ budgets, and other shipping lines involved in the tourist
industry, especially the ferry operators, are broadening and upgrading their range of services and
facilities to meet consumer expectations, and to remain competitive. Coach and bus companies
have acted in a similar fashion and so have the car rental companies.

Aviation industry:

38
Airports are the primary infrastructure facility that a country has to offer to the tourists. It would
be surprising that renowned tourist’s destinations like jaipur do not have an international airport.
Many tourists have to travel via Mumbai or Delhi to reach the destination. This makes thing
cumbersome and time consuming, thus discouraging many a time conscious tourists form
visiting these places. Similar is the case of cities like Agra, Udaipur and Varanasi, where tourist
account for more than 50%.

The major strength of this industry is that avaibility of number of domestic airlines affording at
reasonable prices. Though its major weakness is the inefficiency- there are number of instances
that the flights are delayed or cancelled. Secondly major strikes by the pilots and the
maintenance problems are major cause of concern.

As the tourism industry expands the tourism industry expands the airline industry is also in for a
boom. The major threat to this is from competition from other basic modes of transportation and
from the other transnational airlines.

Road network and railways:

Airports being a weak links in Indian tourism, tourists are forced to use roads. More than 80% of
the tourists have to use road network but the deplorable road conditions in India do not make the
travelling easier. The major factor that hampers the development of road sector is the
government control over all the road properties. Thus, the basic infrastructure to support the
tourism industry is missing.

The major strength of this sector is that there is the avaibility of the largest road network. There
are facilities like the palace on wheels providing the feel of Indian majesty of the days gone by.
The major weakness is the condition of roads during the monsoon seasons. There are no major
threats to this industry as there is no substitute at present. Airlines are the only threat which will
take time to develop to come up to have such extensive distribution as rail and roads.

Travel agents and tour operators:

39
Tour operators are the firms which specialize in providing the whole holiday package,
incorporating travel and accommodation needs for the consumer. They range from highly
specialized operations such as Indianvisit.com, who customize every kind of trip that you can
dream of, to large operators offering services at all different levels to cater for budget, family, or
singles holidays to ‘near’ or ‘faraway’ destinations.

Thomas Cook is one of the best known of such operators; they also offer travel agency and
financial services to their consumers. An independent local coach firm may also be a tour
operator, and many transportation companies also offer holiday packages.

Travel agents and tour operators form the backbone of the industry. They play an important role
in promoting tourism. An example, City Cross Travels Private Ltd, Mumbai is promoting
tourism in Jammu and Kashmir despite of the violence that took place sometimes ago. Similarly
other travel agencies are also trying to project a peaceful picture of India. The travel agencies
provide the package tours which extract the best of the places and give tourist a feel of the rich
cultural diversity.

The major strength of this industry is the avaibility of various tour packages and acting as a
tourism consultant, who take the complete responsibility for the consumer needs. The major
weakness is the structure of different taxes that levied on this industry. The major threat is from
the role of internet due to which this company is facing a threat of extinction.

40
 Infrastructure facilities for Development of Tourism

Accommodation:

The prime and paramount factor that facilitates tourism is accommodation i.e. the success or
failure of tourism industry mainly depends upon the avaibility and quality of accommodation
facilities. Tourists have become highly conscious of better comforts and hygiene. In the world of
Charles Kaiser and Helberg, “accommodation facilities are the places where tourists stop
travelers and become guests. The levels of satisfaction by an area accommodation facilities will,
in large measure, determine the total success of tourism program.” Keeping this in view the
government of India has taken efforts to development facilities.

Accommodation facilities can be broadly grouped into hotels, motels, inns, guest houses,
establishments with bed and breakfasts, holiday camps, paying guest accommodation, shelters
etc.

For better comfort and conveniences and to meet the needs of the tourists the department of
tourism, ministry of tourism and civil aviation, government of India has a system of categorizing
the available accommodation as per certain criteria to measure the standards and enforce control.
The approved hotels are of international standard and have a stamp of official recognition.

Railways:

Railways were established in 1853 and are now in the 154th year of existence. The railways are
the nations’ lifeline and prime carrier of men and material. It is the world’s largest network under
single management with a travel route of 62500 kms, 7000 stations and employment to 1.8
million people.

41
Rail tourism: to develop rail tourism the Indian railways have come up with various methods and
innovative ways to promote travel by rail. They are:

 Launching of 8 new exclusive luxury tourist trains on the palace of wheels pattern to
operate on popular tourist circuits.

 Hotel infrastructure at 100 railway stations in places of tourists circuit

 Discover India indrail passes for use from half a day to 90 days.

 Super fast inter-city Rajdhanis and day return Shatabdi trains.

 Rail holiday package tours.

 Setting up of Railway Catering and tourism Corporation ( IRCTC) to provide necessary

control and direction to the catering services on trains as well as stations.

Aviation and tourism:

Airports are the primary infrastructure facility that a country has to offer to the tourists. It would
be surprising that renowned tourist’s destinations like jaipur do not have an international airport.
Many tourists have to travel via Mumbai or Delhi to reach the destination. This makes thing
cumbersome and time consuming, thus discouraging many a time conscious tourists form
visiting these places. Similar is the case of cities like Agra, Udaipur and Varanasi, where tourist
account for more than 50%.

The liberalization of civil aviation policies in India are marked by licensing of private airlines to
operate on routes served for 40 years by the state owned carriers was prompted by the demands
of tourism. Despite the synergies, there can be conflicts between aviation and tourism as for
instance question of protection of airline in the context of growing tourist traffic.

Tourism related civil aviation development is not limited to licensing of operators for serving
short haul routes. Airport development, up gradation and expansion of services, replacements
and renewals are part of infrastructure requirements.

The economic objectives of tourism policies involve growth of national incomes, employment,
foreign exchange earnings, regional developments and government tax revenues. In each of these

42
aspects the civil aviation sector has a private role. Precise evaluation of the economic benefits
form increased tourism arising form the adoption of more liberal aviation policies will be
possible if the database is strengthened. Doubtlessly there is a need to increase international seat
capacity to India. Airport and airspace congestion, passenger facilitation, environmental issues
and constraints of resources are problems affecting the tourism and aviation sectors. There are
likely to aggravate as increased leisure time and disposable income increase of the people world
over. Air transport has contributed to business travel and to conference tourism as well.

Telecommunication and tourism:

From the plain old telephone services to multimedia the telecom revolution, in its rapid pace, has
enveloped the tourism sector as any other economic activity. The use of hand free tools gifted by
the telecom industry has grown phenomenally in the tourism sector to extent that any
establishment that fails to be one up loses to its competitors. Even the plain old telephone has its
uses in marketing. A caller could get not only the information about the flights, connections and
seat avaibility but also whole lot information useful to the traveler like car rentals, hotel
bookings, theatre shows and museum timings.

High incidence of internet access is illustrative of another instance of the great impact of
telecommunications. The greatly publicized information super-highway is accessible to anyone
with time, interest and curiosity. With customers becoming ever more demanding, hospitality
services too offer a range of services by internet. Travel agents and airline offices are
increasingly linked by the electronic information distribution systems. The electronic card door
keys have become popular in most of the hotels in all big cities. Another travel aid is the satellite
phone. With the success of its successful implementation in the Rajdhani trains it was decided to
equip all the trains with this service. Hospitality services are not only beneficiaries of these aids
but also at times the cause of their creation. Since there has been telecom revolution today
tourism’s growth is greatly conditioned by the web and the net.

43
 Importance of infrastructure in tourism industry

Goods and services consumed by the tourists are the product of the tourist. Tourists product sold
by the industry are intangible though the plant for creating the products are very much tangible in
other words the courtesy, facilities, etiquette, mannerism, hospitality provided by sector have
physical forms and therefore are intangible, while the plants (infrastructure), which create these
product, i.e. hotels, airlines coach service, entertainment center, sports and shopping center,
health club have physical form and therefore are tangible.

A successful tourist destination is compose of a serious of accommodation and attraction which

draw predictable volume visit traffic therefore various infrastructure aspect related quality and
availability of air, water, transport system, clean and hygienic, good accommodation and
catering, way side amenities like petrol pump, auto service centers, public toilets and eating
house and opportunities of recreation and entertainment are to be provided by tourist plant. It is
not just enough to ensure that the tourist reaches their destination quickly and comfortably and
our housed and fed suitably, but also the facilities extended should be within their reach,
according to their convenience as per their expectation and liking. The various infrastructure
facilities are summarized below:

Accommodation:

it is one of the basic components of tourist system and improves all such provisions all such
provisions necessary for the sojourn of a visitor such as hotels, motels, tourist rest houses,
traveler’s lodges, resort hotels, etc. Among all these the hotels are the most popular and widely
sought after as far as tourism industry is concerned. However, the hotels alone are not sufficient
to meet the tourist demand for the accommodation and therefore, other type of supplementary
accommodation to hotels are required. The role of supplementary accommodation depends upon
the factors like type of tourist destination, its socio-economic background, tourist inflow pattern,
tourist activities, state of tourism development and so on.
44
Transport facility:

transport forms an integral part of tourism. Transport is to tourism what Veins and Arteries to
human body. As travelling is an essential part of tourism, transport facility at any place should be
excellent for speedy tourism development. The term transport is broad and comprehensive and
relates to 3 subsectors- air transport, surface transport and water transport.

Air transport has made movement form one place to another very fast and comfortable. It has
thereby reduced the distance which separates the people. It is now therefore, easier to reach
distant places by the excellent network of connecting flights. While air transport is used for lone
distance, road transport is important for both long and short distance. Also, road transport is the
most feasible means of transport for regions, which lie in the interior. Therefore, road transport
has a high level of penetration. It is convenient, cheap and fast. For the development and growth
of road transport there should be effective network of roads and avaibility of transport
equipments. Water transport is also very important mode of transport but subjected to the
avaibility of water bodies. The water bodies are river systems, natural or manmade lake or sea.
There are many forms of travel on water such as ocean cruises, ferries, ships and passenger
cargo.

Communication:

Tourists regularly find it necessary to communicate with homes and offices from which they are
getting away from. It is essential that long distance and local telephone, telegraph and television
services are available in the accommodation centers.

Sewage and drainage:

the capacity and quality of sewage and drainage facilities can be a major factor in the success of
a tourism program. Tourists simply do not come in large numbers to unclean areas. Sewage and
drainage requires technical expertise. Large expenditures are also necessary in many instances.

45
Because it is virtually impossible to develop a major tourist destination without substantial
investment in this infrastructure component, careful consideration is essential.

Health care facilities:

people have medical emergencies. All people do. Tourists are no exception. Destination area
planning must recognize. The health care facilities necessary to accommodate tourism will
depend largely on anticipated visitor volume, the age group expected, the types of activities they
will engage and local geographical factors. For example- mountain resource will typically need a
number of professional trained to evacuate accident victims and apply first aid measures; major
medical facilities should be available for use by tourist

Failure to recognize these needs can have drastic results. Recognizing and dealing with them on
the other hand can be relatively easy and can lead to considerable goodwill.

46
 Role of Tour Operators and Travel Agents

Tour operators are the firms which specialize in providing the whole holiday package,
incorporating travel and accommodation needs for the consumer. They range from highly
specialized operations such as Indianvisit.com, who customize every kind of trip that you can
dream of, to large operators offering services at all different levels to cater for budget, family, or
singles holidays to ‘near’ or ‘faraway’ destinations.

Thomas Cook is one of the best known of such operators; they also offer travel agency and
financial services to their consumers. An independent local coach firm may also be a tour
operator, and many transportation companies also offer holiday packages.

Travel agents and tour operators form the backbone of the industry. They play an important role
in promoting tourism. An example, City Cross Travels Private Ltd, Mumbai is promoting
tourism in Jammu and Kashmir despite of the violence that took place sometimes ago. Similarly
other travel agencies are also trying to project a peaceful picture of India. The travel agencies
provide the package tours which extract the best of the places and give tourist a feel of the rich
cultural diversity.

Modern travel agency business is not mere ticketing and reservations bur covers a wide spectrum
of activities including travel guidance, planning, pricing, accommodation, local travel and sight
seeing, insurance, provision for foreign exchange and the like.

Airlines, hotels, car hire, credit card and insurance companies, banks and other engaged in travel
and tourism need distributors; the passengers need specialists to provide advice and make
services available. The unique feature is that agent gets his remuneration through commissions
from producers of services and provides them free of cost to the passenger. The job of travel
agent in the beginning consisted merely arranging simple reservations and some form of
transport and arrange tickets. Since then, the business has undergone a series of changes.
47
In India, the organized travel agency system came into being in late 1940s. The Travel Agents
Association of India (TAAI) was formed towards the end of the year 1951 by a group of twelve
leading Travel agents, who felt that the time had come to create an Association to regulate the
Travel industry in India. The primary purpose was to protect the interests of those engaged in the
industry, to promote its orderly growth and development and to safeguard the rights of the
traveling public. TAAI represents all that is professional, ethical and dynamic in nation's Travel
related activity and has been recognized as the voice of the Travel and Tourism industry in India.
With a membership data base of over 1800 Active; Allied and Associate members comprising of
IATA accredited Travel Agencies; Airlines & General Sales Agencies; Hotels and Tour
operators; TAAI is the largest Travel Association of India. The Association with an excellent and
wide data base of membership comprises of Travel Agents, Tour Operators (Inbound &
Outbound); Hotels - Room & Packages Selling Agencies; Airlines; General Sales Agents of
Airlines; Leading Hoteliers and other travel related partners; etc. The Travel industry is now
highly specialized and the average traveler depends upon the professional Travel agent to guide
him wisely. The Principals who appoint Travel agents to represent them also depend upon their
approved agents to follow the best traditions of salesmanship and ethical conduct. The growing
number of Travel agents and their increased scale of activities require their adherence to fair
dealing and ethical practices. Therefore, each TAAI member by reason of their membership
admits and acknowledges that they are aware of the TAAI Code of Ethics and subscribes to and
supports the precepts and principles contained therein. There are nearly about 720 IATA
approved head offices locations, a total of some 850- branches. 50% of IATA head office cre
concentrated in Mumbai an Delhi; one-third of the balance has their offices in four major cities
of Chennai, Kolkata, Bangalore and Ahmadabad. On the whole, travel agency is yet a highly
fragmented business, with sharp imbalances in its spread areas of over congestion and large
stretches of inadequate representation.

48
 Marketing of Tourism Services

Marketing in tourism in words of krippendrof “marketing in tourism is to be understood as the

systematic and coordinated execution of business policy by tourist undertakings whether private
or state, owned at local, regional, national and international levels to achieve the optional
satisfaction of the needs of identifiable consumer groups and in doing so achieves an appropriate
return.”

A clear perception of tourism marketing requires a brief analysis of marketing. We are all aware
of the fact that there have been fundamental changes in the traditional concept of marketing
which have been influenced by multidimensional changes in business environment. A
transformation in the attitudes, lifestyles, and expectations is the result of a number of
developments. Professionalism paves the way of excellence, which opens doors for quality
generation vis-à-vis competition almost all the organization providing goods and services have
no option but to assign an over riding priority to quality up gradation that require innovations.
This necessitates a change in the concept of marketing, which determines its functional
boundaries. We find satisfaction of the users the focal point around which all the functional areas
of marketing cluster. While clarifying the perception of tourism marketing, it is essential that we
assign due weight age to the three important considerations, the first generation of profits by the
tourist organizations, second world class services to the tourists which help them in satisfying
them and the third positive contributors of tourist organization to the process of social
transformation and ecological balance.

There are certain points on tourism marketing that needs to be given due importance:

 Tourism marketing is a process creating a product or providing a service.

 Tourism marketing comprises fact findings, data gathering, analyzing, communication to
inform and promote, ensuring and facilitating sales, and selection of marketing planning,
coordination, control and evaluation, developing professionally sound personnel.
49
  Tourism marketing is an integral effort to satisfy tourist and more so, it is a device to
transform the potential tourist into actual tourist.
 Tourism is the safest way to generate demand, expand market and increase the market
share.
 Tourism marketing is a managerial process to promote business.

In tourism marketing a destination is being marketed. Once a destination is sold to a customer or

customer group, every one who is providing the service in relation to tourism gets benefited. A
destination can have a large variation of products or benefits to offer and a unique combination
of features that cannot be duplicated elsewhere. The question that arises is how a one to attract
tourists to Gujarat is – an industrial hub of India – that nothing as glamorous as the Tajmahal or
the backwaters of Kerala or the beautiful landscapes of Kashmir to talk about. This was the task
faced by TGCL in 1975 i.e. hoe to develop and promote tourism in the state and maintain and
strengthen the existing tourist infrastructure.

A major ingredient in tourism publicity is the information service. An updated information

service with quick retrieval facilities leads to good tourist turnover. The technological
development in the fields of communications and computers would be profitable for establishing
a tourist information network. These communication services can export information on tourist
services and allied infrastructure. Another effective marketing tool for india is its cuisines, which
have gained popularity all over the world. The food-cum-cultural festivals have made invaluable
contribution. They have proved very popular with foreigners. This promotional activity should
be a regular feature at trade fairs and exhibitions.

India has just realized the potential of the software industry whose annual export earnings total
Rs 4500 cores. Tourism on the other hand is already generating an annual forex income of Rs
12000 cores. Therefore through high visibility advertising and promotional campaigns, industry
and government should work together to destroy India’s image of being a low priority country in
markets such as the US, Germany, Europe etc. In a highly competitive market where almost all
countries are actively vying for attention of tourists, international connectivity becomes essential
for promoting tourism. Online connectivity amongst all supporting sector of the tourism industry
facilitates the travel process for the international traveler.
50
In order to attract tourists from abroad as well as from within the country, a proper infrastructure
has to be put in place and maintained. Since tourism includes pleasure, conference and business
travel infrastructure relating to travel, transport, hospitality and communications become
important focus area for potential consumers. The air traffic capacity into the country as well as
within the country should be expanded. The number of air- conditioned tourist coaches, mini
vans. The development of civil aviation sector would aid in the promotion of tourism.
Availability of basic infrastructure components like airports, railways, roads, waterways, etc. is a
crucial requirement. Therefore some of the small airport and airstrips access to even to the
remote areas without potential. A liberal should be adopted in allowing capacity expansion. India
has a vast coast line of over 5000 kms and several navigable inland water resources. In order to
facilitate movements of tourists, particularly where the road segments are in poor condition, it is
important to develop after transport systems like cruises, catamarans, hydroplanes, etc in the
private sector by providing attractive incentive and the necessary berthing facilities at the
respective ports.

TYPES OF CUSTOMERS & SEGMENTATION

Users Of Tourism Services:

The users of tourism services can be categorized in a number of ways. One such way of
classifying the users is by dividing them into categories such as General, Sex, Region, Education,
etc.

1. General: Domestic, Foreign

Kids, Teens, Youths, seniors

Students, Executives, Artists

Politicians, Movie stars

2. Sex: Men, Women

3. Region: Rural, Urban
4. Education: Literate, Illiterate
5. Status: Rich, Poor
6. Profession: Executives, Academics, Sportsmen, Artists
51
 7. Occupation: White collar, Blue collar
Another method of classifying users of tourism services is on the basis of the frequency of usage
of services.

1. Non-users: They lack the willingness, desire and ability (income & leisure time).
2. Potential Users: They have the willingness but the marketing resources have not been
used optimally to influence their impulse.
3. Actual Users: They are already using the services generated by the tourist organizations
4. Occasional Users: They have not formed the habit of traveling
5. Habitual Travelers: They have formed a habit and avail of the services regularly.

In a nutshell, tourist organizations need to undertake segmentation in order to simplify

their task of creating and stimulating demand. In this way they can identify the potential
tourists, transform them into actual tourists and further into habitual tourists.

Need For Segmentation:

Consumer behavior can be defined in psychological terms as the whole range of the
generation of wants and their transformation into buying or using decisions. Users have
values, perceptions, preferences and expectations which are the result of environmental
influences. There are a number of factors that influence the behavioral profile of consumers.

In recent years, the users have become more discriminating in their using habits and
therefore their needs for different services, products and brands change constantly. This
makes it essential that the marketers analyze their behavioral profile and undertake
segmentation so that they know the level of expectations.

In a nutshell, tourist organizations need to undertake segmentation in order to simplify

their task of creating and stimulating demand. In this way they can identify the potential
tourists, transform them into actual tourists and further into habitual tourists.

C) Segmentation:
Though there are a number of bases for segmentation of tourists, one of the most important is
Lifestyle. Traveling decisions are fantastically influenced by changing lifestyles. They are also

52
affected by other factors such as level of income, availability of leisure time, etc. they are as
follows:

 Holiday: Mass market, Popular market, Individual market.

 Demand: Primary, Secondary, Opportunity.

 Geography: International, on the basis of religions, cities, etc.

 Psychographic: Lifestyle, Personal motive, Knowledge

 Demography: Age, Sex, Religion.

 Socio-economic: Rich-Poor; Rural-Urban; literate- Illiterate

 Purpose: Business Travel, Cultural Tourism, Common Interest Convention

 Age: Teens, Youth, Seniors

Such segmentation is useful when deciding the offerings to target a particular segment. For
example:
♠ The mass market consists of vacationists that travel in large groups and prefer all-inclusive
tours. They are generally conservative.

♠ The popular market consists of smaller groups going on inclusive or semi-inclusive tours. This
group includes pensioners and retired people.

♠ The individual market consists of chairmen, senior executives, etc.

♠ As the lifestyle changes, consumption of services might change. For example, a newly married
couple might prefer romantic holidays, but once they have children they would prefer family
vacations where there are plenty of activities to entertain kids.
♠ Teens and youth might prefer adventure holidays whereas senior citizens would probably
prefer more relaxing vacations.

Marketing Mix

53
James Gulliton described the marketing executives as a mixer of ingredients. This inspired Prof.
Neil Borden to coin a new terminology in the marketing literature, i.e. Marketing Mix. He was of
the view that without the help of quality sub-mixes; the marketing executives would hardly be
successful in accomplishing the organizational goals. This engineered a sound foundation for the
frequent use of the term marketing mix in which initially four sub-mixes were included, such as,
Product mix, Promotion mix, Price mix, Place mix. Gradually, we find inclusion of some other
mixes such as People, Process, Productivity and Physical evidence.

The designing of the marketing mix variables in case of tourism is significant as it helps the
marketer in conceiving the right ideas, particularly to raise the acceptability of the tourist product
by stimulating and penetrating the demand. Framing of a proper marketing mix is significant
because it helps the tourist organization in accomplishing the objective and projecting a fair
image. The marketing concept for the travel and tourism industry is profit driven and customer
centric (unlike sales which are volume driven and target centric).

Product mix:

Tourism is a composite product with components like attraction facilities and transportation.
Attraction deserves an intensive care. It includes natural site, places of historic interest, events
and cultural attraction.

Like the manufactured product, potential users cannot feel, taste, touch or sample a package
tour.the tourism product is a non-material intangible thing. The tourism product is essentially an
intangible thing. Also, because tourism is a multi-segment industry, the task of formulating a
product mix becomes more difficult & challenging.

Selling a holiday is ‘selling dreams’. The way to win the customer’s heart is through the
peripheral services provided along with the core product. Thus a tourism product is quite a
complex one, including the destination, airline seat, hotel room, occasional tangible products
such as souvenirs, a free bag or bottle of whisky, etc.

Innovation in the tourism industry helps to raise the sensitivity in this regard. There is nothing
fixed or fundamental about the tourism product. The content factor is within the jurisdiction of
the government that undertakes the maintenance, development and conservation of tourist

54
attractions such as parks, museums, beaches, historical treasures, etc. Unless these factors are
developed in the right fashion, the marketing professionals would never be successful in making
the marketing resources productive.

Thus the direct or indirect patronage of the government is essential to get a positive response.
The government and private tourist organizations work together to undertake activities such as
developing infrastructural facilities such as transportation, water, banking, Medicare facilities,
etc., and also developing and maintain hotels, cottages, havelis, lodges, etc.

Tourism products:

1. Accommodation
• Hotels-5 star, 4 star, 3 star, 2 star, 1 star
• Motels
• Boatels
• Flotels
2. Destination
• Natural Scenes
• Historic Excellence
• Artificial Beauties
• Social Cultural Excellence
3. Transportation
• Infrastructural
i. Airways
ii. Railways
iii. Roadways
iv. Waterways
• Local
i. Local transport
4. Tour operators
• Travel companies
• Travel agents
55
 • Guides
5. Shopping
• Handicrafts
• Handloom
• Books
• artistic,
• garments
• jewellery, etc

PRODUCT ELEMENTS

BENEFIT MEANING WITH RESPECT TO THE TRAVEL

AND TOURISM INDUSTRY

1. CORE The fundamental benefit or service that Travelling

BENEFIT the customer is buying

2 BASIC Basic, functional attributes Ticketing, hotel reservation

PRODUCT

3 EXPECTED Set of attributes/conditions the buyer Customer friendliness, good food

PRODUCT normally expects

4 AUGMENTED That meets the customers desires Prompt services, comfortable and
PRODUCT beyond expectations convenient trip, spectacular sights,
music

5 POTENTIAL The possible evolution to distinguish Totally customized tour packages, A

PRODUCT the offer grade service at every stage

Salient features of tourism product:

 Tourism product is highly perishable: perishability is an important factor that influences

the decision making behavior of the tourists professionals, the product is used just when
56
 it is offered and therefore, if it remains unused, the chance is lost, the business is lost. If
the tourists do not visit a particular place the seats in the hotels, aircrafts remain vacant,
the business is lost.

 Tourism product is a service product: we find services the only product used and sold in
the tourism industry. This makes it essential that tourist professional due weight age to
creative marketing strategies which hare found proactive.

 Service is for pleasure: it is right to mention that to enjoy use tourism services. By
visiting tourist resorts, spots, sites, beaches, they get pleasure.

 Users are supposed to visit the center: for availing the services of the tourism industry, it
is pertinent that the users visit the place physically. The users are supposed to come all
the way to the spot. This necessities setting of product features in a right way.

 Adequate infrastructure facilities fir the tourism product: no doubt, not that almost all the
industries need infrastructural support, bur the tourism industry cannot exist if hotels,
transportation services are found non-existent. Thus, we find infrastructural facilities
essential to improve the quality of services.

Pricing:

Pricing of the tourist product is complex. Geographical location of the destination, seasonality
and varying demand affects the pricing decision.

In India the pricing strategies become important for promoting or contracting the tourism
industry, since more than 40% of the total populations are below the poverty line. In order to
develop the tourism industry more and more potential users are to be transformed into actual
users.

When a tourist proposes to visit a particular place, the total cost of his traveling also includes the
expenses incurred on transportation, accommodation and communication.

57
Liberal pricing strategy is found to be a productive pricing decision, particularly in case of
tourism industry. The pricing strategy which includes low income group people, student and
retired persons can be more effective. This is possible if the government concessional and
subsidized infrastructural facilities to the potential tourist below the average income.

The different pricing methods generally used are cost based pricing, demand based pricing and
competition based pricing.

In pricing decisions, the product or the service mix of the tourist organization is important. They
have to set prices in line with the quality of services to be made available to the customers.
Pricing decisions are influenced by internal and external factors. The tourism professionals are
supposed to watch the emerging trends in both the markets. They are required to think in favors
of discounting price. These may include discounts for cash payments, seasonal discounts, trade
discounts etc. But while offering the discounts, it is not to be forgotten that it may also create
image problem since some of the value sensitive tourists may doubt the quality

Tourism pricing follows the principles and practices of pricing package and therefore, they are
either cost based or market based. With in these categories prices may be profit oriented,
government controlled, competitive or customer oriented. However the characteristics of tourism
do influence the pricing and therefore different methods of pricing are to be followed. There are
some basic guidelines for pricing of tourism which help in developing an appreciation of the
framework for tourism policy:

 For tourism, the pricing strategy should be such that demand fluctuations are successfully
handled.

 Tourism prices should be based on costs so as to take into account the cost of tangible
clues of intangible service.

 The tourism pricing should be such as to provide value addition and quality indication.

 The pricing strategy should be such as to cope with the degree of competition operating
within a certain geographic and time zone.

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Pricing objectives: the pricing to tourism is greatly influenced by basic tourism characteristics.
However, in setting price objectives, several factors in relation to overall marketing strategy of
the corporation should be considered.

 First is the planned market position for the tourism product, price affects customers
perceptual positioning.

 Secondly, the stage of life cycle of the tourism product and demand elasticity is
important.

 Thirdly competition should be studied both from the point of view of inter brand and also
from the point of view of the brand which provides the same need satisfaction.

 Lastly, you have to see what strategic role the pricing can play in overall marketing
strategy.

Place:

The tourist centers should be located at suitable points if the tourists spots are natural there is no
question of selection. In a vast country like India with a divergent socioeconomic and cultural
patterns, the promotion of domestic tourism encourages unity in diversity.

Infrastructural facilities, transport and communication are important for development of tourist
centres. The site selected should have natural surroundings, increased accessibility and improved
amenities. At the same time it is also important that the ecological balance is not disturbed. Since
growing ecological imbalances leads to pollution, some important steps like promoting
afforestation, promotion and beautification may be undertaken in countering the side effects of
atmospheric pollution and maintaining ecological balance

Place or distribution management is concerned with two things – availability and accessibility.

Researchers in tourism must determine how and where potential customers prefer to buy tourism
products and services.

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Most tour operators sell their services through travel agents, however some deal directly with the
consumers and eliminate middlemen. Other companies may also utilize more than one method of
distribution. Airlines, for example, sell tickets through travel agents, and sell seats on flights to
tour operators, and also offer travelers to book seats themselves through their own booking
offices.

There exist, however, a number of intermediaries in the tourism marketing channel. It depends
largely on the channel type. The intangibility feature in the service sector prevents intermediaries
from taking possession or ownership of goods. Tourism, however, proves an exception where
cuisine and souvenirs are goods and ownership is possible for the intermediaries.

Transport also plays a major role in the tourism industry. It makes the destinations accessible to
people from around the world. Also, in the case of tangible products in tourism such as souvenirs
and cuisine, transportation becomes a major logistical component

Promotions:

The promotion mix includes advertising, publicity, sales support and public relations.

The purpose of promotion is to make available the information to the user. Advertising the sales
promotion can be effective when supplemented by publicity and personal selling.

Radio, TV, newspapers, cinema and printings are some of the important vehicles for traveling of
messages. Effective slogans raise the effectiveness of advertisement.

Another important component of the promotion mix is public relation. It helps in projecting the
image of an organization. Public relation and publicity include regular articles and photographs
of tour attraction, use of TV and travel journalists to promote editorial comment.

Public relation officer plays an important role. It should be efficient, active, impressive,
intelligent and well-behaved.

Good image projection can be made if the PRO manages the affair like a professional. It is said
that word of mouth is the best form of publicity. The word of mouth promotion is an important
tool in tourism marketing.

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People:
The people who attend to the needs of the tourists form an essential ingredient in tourist
marketing. The tourism industry is an amalgam of the services of a lot of people and hence this
industry cannot work efficiently if the travel agents, tour operators and travel guides lack world
class professional excellence. The travel guides need professional excellence since the projection
of a positive image regarding a destination in particular requires their due cooperation, failing
which even the world class services offered by the travel agents are found meaningless. The tour
operators also need to manage human resources efficiently.

In the tourism industry the travel agents and the travel guides are the two most important people
who speak a lot about the industry. Hence it is imperative that they have to be at their best at all
times. Travel guides especially, are expected to have a lot of patience, good sense of humour,
tact to transform the occasional tourists into habitual ones, thorough knowledge of the places,
linguistic skills etc.

A service is a performance and it is usually difficult to separate the performance from the people
investing in people. Quality in a service business like tourism means investing in a product
quality. To realize its potential in internal marketing- the attraction, development, motivation and
retention of qualified employee- customer through need meeting job products.

“Internal marketing paves the way for external marketing”

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Process:

The importance of process management is that it assures service availability and consistent
quality. Without sound process management, balancing service demand with service supply is
extremely difficult Service cannot be inventoried; therefore, it becomes essential to find out ways
and means to handle peak load to optimize different customer needs with varied expertise levels
within the service organization.

The size of the tourist firm determines the operation process of the firm. The following steps are
involved in the delivery system of the tourist product:

 Provision of travel information

 Preparation of itineraries(planned routes and journey)

 Liaison with providers of service

 Planning and costing tours

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  Ticketing

 Provision of foreign currency and insurance

Physical evidence:

Though a customer cannot see a service, but definitely he can see various tangible clues of the
service offers like facilities, communication material, brochures, objects, employees, other
customers, price, etc. on the basis of this perception of the tangible clues, the customer makes the
purchase decision. These clues might be both intended and unintended ones and therefore
managing evidence is integral to the service marketing mix.

Physical environment, facilities and atmosphere give enough physical evidence to help shape
customer perceptions. In tourism marketing both the peripheral and the essential evidence are
significant as they tangibalise the service. Essentially evidence, on the other hand, is those which
cannot be possessed. For tourism industry, name of the place and the means of travel is
essentially evidence. Physical facilities are important in facilitating the delivery of service.

In Parsuraman’s scheme of thinking the physical environment is one of the three elements-
environment, communication and price. These three elements of service are not mutually
exclusive, rather they influence each other. The tourist organizations like relating to tourism
industry need to manage the evidence they use in a planned and systematic way to overcome the
market challenges created by the intangible characteristics of services. To manage the evidence it
is suggested that one should attempt to make the service more tangible.

The primary role of evidence management is to support the organizations marketing program me
by making it possible to manage both intended and unintended clues, which can give adequate
evidence to customer.

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 Brief look on Pilgrimage Tourism

In religion and spirituality, a pilgrimage is a long journey or search of great moral significance.
Sometimes, it is a journey to a sacred place or shrine of importance to a person's beliefs and
faith. Members of every major religion participate in pilgrimages. A person who makes such a
journey is called a pilgrim

India has long been known as a very spiritual, religious heavy area of the world. In India,
religion is a way of life. It is an integral part of the entire Indian tradition. For the majority of
Indians, religion permeates every aspect of life, from common-place daily chores to education
and politics.

Secular India is home to Hinduism, Islam, Christianity, Buddhism, Jainism, Sikhism and other
innumerable religious traditions. Hinduism is the dominant faith, practiced by over 80% of the
population. Besides Hindus, Muslims are the most prominent religious group and are an integral
part of Indian society.

In fact India has the second largest population of Muslims in the world after Indonesia. Common
practices have crept into most religious faiths in India and many of the festivals that mark each
year with music, dance and feasting are shared by all communities.

Each has its own pilgrimage sites, heroes, legends and even culinary specialties, mingling in a
unique diversity that is the very pulse of society. In 600 B.C., around the time of the birth of
Siddhartha Gautama, better known as the Buddha, India was comprised of many small
communities under different rulers, some organized in to kingdoms but for the most part, in to
small city states.

Long had been in the process of the caste system which still exists today. The noble class,
Priestly Class, the Merchant class, the Worker class and the Slave class still exist in India in
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some form or another currently.

The current area takes what it can from the known history of the people of India, and
incorporates some of the legends from their religious texts, The Rig Veda and the Bhagavad
Gita. The current area is also comprised of two small villages, the Island of Ceylon (currently
known as Sri Lanka) and the city of Bhimbhetka which is in relatively close proximity to
current-day Bengal.

With 2.5 million temples dating back several hundred years (and some several thousands),
religious tourism in India is turning out to be a major revenue earner although most of the
revenues are not really accounted.

A National Council of Applied Economic Research (NCAER) study says that Thirupathi in
Andhra Pradesh is the largest recipient of religious tourists earning USD 224 million, Vaishnavo
Devi USD 168 million, and Ajmer Sharif in Rajasthan USD 83 million. Others earn several
million dollars but are not accounted for because most religious tourists travel meagerly as a
pilgrimage and not as a luxury. Also, since most of the religious places are located in places that
are not well connected or provided for, most trips are only to nearby cities that have these
facilities.

For instance, there are 5000 temples in Tamil Nadu’s Thanjavur area built more than a 1000
years ago that are rich in art, architecture, and culture. However, facilities such as quality hotels,
eating options, quality roads, etc are missing leaving out thousands who may be interested to see
such heritage. Similarly, 800-year old Hampi or 700-year old Belur & Halebid in Karnataka,
over a 1300-year old Simachalam in Andhra Pradesh all lack access and facilities.

Even so, the South dominates religious and cultural tourism whereas the North the more
lucrative business tourism. Maharashtra, Andhra Pradesh, Karnataka, and Tamil Nadu rank very
high in religious tourism while lawless Bihar the lowest. Even the 2500 year old Buddhist shrine
Bodh Gaya does not get tourists because of abject neglect for the last 15 years.

All mankind needs purification of the body, mind and the soul. To achieve the same pilgrimage holidays
have been designed. The secularism of India and the variety of religions followed by the people of the
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country are amazing. The faith reflected in the chanting of 'Om', 'Budham Sharanam Gachami' and
'Wahe Guru' all remind us of the Almighty and focus on the gospel of peace and love for humanity.

Being a country of the pious, India is dotted with pilgrimages. Thus, Pilgrimage tourism in India is
extremely popular. Great religions like Hinduism, Buddhism and Sikhism have originated on the Indian
soil. The unity in diversity is the keyword for the grand country. The Hindus flock to take a dip in the
holy rivers, the Sikhs walk up to a height of 4329 meters through the difficult terrain to reach the
Hemkund Sahib. The cradle of Buddhism, devotees from the world over frequent the holy city of
Sarnath.

Haridwar, or the door to God, at the foothills of Shivaliks, is a pilgrim destination for the Hindus.
The aarti held every evening at the Har-ki-pauri, with innumerable floating diyas and flowers is a
must for all, something not to be missed. The yatra to the char-dhams comprise visit to holy
places of Badrinath, Kedarnath, Gangotri and Yamunotri. The char dham yatra is a major
attraction for tourism in India. Rishikesh, in the laps of the Himalayas happens to be the common
point for all the four pilgrim spots besides being sacred itself. It happens to be a great site for
rafting and trekking as well. Thus, devotes as well as the adventurers flock to Rishikesh. The
sources of the two most sacred rivers of India Ganga and Yamuna, Gangotri and Yamunotri are
amongst the four shrines in the Himalayas.

The pilgrim spot of Devprayag, located at the confluence of the Alaknanda and the Bhagirathi
rivers besides is renowned for the Raghunathji temple. Similarly, the town of Uttarkashi is
situated on the banks of the river Bhagirathi and its Vishwanatha temple, devoted to Lord Shiva,
attracts several pilgrims. The holy city of Rudraprayag located at the confluence of Alaknanda
and Mandakini draws several pilgrims to the Radranath, Chamunda Devi and the Koteshwar
temples. Further up at Gaurikund, the visit the famous Gauri temple and bathe in the hot water
pond. The package is completed with visit to Joshimath, Badrinath and Govind Ghat.

The Buddhists too have several pilgrim spots in the country that are associated with the birth and
teaching places of Buddha.

The holy city of Varanasi is situated on the banks of Ganga. Its name has been derived from the
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two steams flowing through it namely, Varuna and Assi. Pilgrims to the holy land, follow the age-
old tradition of bathing and performing puja at the ghats.

The Alamgir Mosque or the Beni Madhav Ka Darera close to the main city is an example of the
beauty of amalgamation of the hindu and mughal styles or architecture. Noticeably, the mosque
was earlier the Vishnu temple. It boasts of the largest residential university is Asia, namely the
Benaras Hindu University. It BHU was founded by Pt. M.M. Malviya. The campus has added
attractions like the Vishwanath temple and a museum. Another major attraction for the pilgrims
happens to be the Bharat Mata temple, which is not dedicated to any God or Goddess but Mother
India.

Lumbini is noteworthy for being the birthplace of Buddha. The city of Sarnath popular amongst
the Buddhist as the spot for His first sermon, which revealed the eight-fold path after His
enlightenment. Lord Buddha had attained Enlightenment under the Bodhi tree in Bodhgaya,
which too is a pilgrimage for the Buddhists. The pilgrimage to Vaishali is significant as Buddha
delivered His last sermon here and announced His Nirvana. Similarly, there are a number of other
spots for pilgrimage tourism in India.

For the Sikhs one of the most revered shrines is the Hemkund Sahib. Pilgrims trek to a height of
4329 meters to pray at the world's Highest Gurudwara. The pilgrimage starts at the base camp of
Govind Dham. Devotes visit the Sri Guru Nanak Dev ji gurudwara at Manikaran known for the
hot water springs with healing properties. The sacred city of Poanta Sahib is visited to regard the
tenth guru, Guru Govind Singh. Pilgrims also flock to Anandpur Sahib, the residence and
meditation spot for the Gurus.

With faith in the Almighty, the pilgrims cover the most difficult of terrains with ease. Pilgrimage
tourism in India is not just a fad but it is an experience of lifetime. Make this experience your
own.

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 Case study: Development of Tourism in Goa

Tourism plays an important role in the economies of Goa. For Goa, tourism generates
13.7percent of the state’s net domestic product, 7 percent of employment and 7 percent of tax
revenues. Goa capitalizes on its comparative environmental advantages: beach and sunshine.
Goa also capitalizes on its unique historical and cultural heritage while the Maldives on its
unique archipelagic and coral reef marine environment. Goa promotes heterogeneous tourism
development with upscale and inexpensive charter tourism to international and domestic
audiences.

The preservation of the natural environment, the prudent use of natural resources, disposal of
solid waste and sewage, and the depletion and deterioration of groundwater attributable to tourist
inflows are, among others, issues which the government of Goa face. In Goa, the growth of
coastal tourism has been rapid and uncontrolled. Tourism development has resulted in, the loss
of biodiversity, erosion of sand dunes, declining fish catches, accretion and siltation and
depletion of groundwater.

Although the environmental diversity and sensitivity of Goa has been widely known, a complex
mixture of customary rights, land ownership, a variety of stakeholders with very differing
interests, and ineffective institutional and political structures seem to have made it difficult for
Goa to define a tourism strategy and to enforce its implementation. The Government has played
a key role in promoting tourism on unoccupied islands (or abandoned islands where customary
usufruct rights were compensated) through certain traditionally powerful families and with
certain funding arrangements to encourage foreign investments; the government has been closely
monitored the development of tourism.

Tourism development has many social impacts. Goa does not have land which is untitled or
unowned or which is not of some historical significance, the needs of tourists and the local
population in Goa come into frequent conflict over the use of local resources (e.g., water,
beaches, and transport). The Goan social scene is further complicated by the states porous
borders with the rest of India. While Goa’s geographical location improves domestic demand for
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tourism, it has also lead to a large influx of labor from adjoining states, further exasperating
social impacts. The situation in Goa is rather complex due largely to the number of stakeholders
involved in tourism: luxury hotels, family-run guest houses, the needs of tourists, local residents,
and other sectors of the economy. Mechanism for resolving conflicts among the various resource
users do exist, such as the panchayats (.communidades.) and the courts, but the long backlog of
cases has delayed justice. The high number of conflicts among users suggests that an improved
institutional response is necessary.
Environmental legislation and regulatory mechanisms are formulated by the government for
development of tourism in Goa. In Goa, while a MasterTourism Plan is in place, the
implementation of the laws and regulations appears to be somewhat tardy. Although the paper
alludes to several government department charged with varies aspects of tourism planning in
Goa, institutional strengthening is a clear issue. Similarly, a systematic study of the
environmental impacts of tourism and the implementation of a monitoring and management
system would also aid Goa.
In Goa, although institutional responses and the development of a tourism strategy which
integrates the needs of all stakeholders has lagged, the active lobby of its citizenry at all levels,
which has intensively documented its environmental impacts and brought environmental
concerns to the public agenda, should be highlighted. The active participation of all stakeholders
in the planning process lends itself to greater sustainability of tourism in the long-run. As in any
other sector of an economy, tourism requires a sound, well-defined and executed approach in
which the government, the various stakeholders and the public cooperate.
.
Nature and Growth of Tourism in Goa:
Most of the tourism in Goa is concentrated in the coastal stretches of Bardez, Salcete,
Tiswadi and Marmagao. Over 90 percent of domestic tourists and over 99 percent of the
international tourists frequent these areas. Consequently, beach tourism is the only type that is
avidly encouraged by policymakers and other concerned parties alike. Goa is visited by two
types of tourists with distinct needs which this state satisfies. The first is the domestic tourists,
who comprise 80 percent of all tourists. These people come in search of the culture that is
different. from the rest of India, as the Goan image holds a degree of mysticism, a sense of
freedom and. unconventional. dress style. The second is the international tourists who visit Goa

69
purely for the natural environment. sun and beaches. Within the category of international tourists
are there are two sub-categories: backpackers and charter tourists. Although both visit Goa for
the beaches, they stay away from each other. The backpackers are not found in areas of charter
tourists; they prefer to mingle and live with the local communities. Whereas, the charter tourists
tend to stay in the luxury starred hotels. Domestic and international tourists also differ in terms
of the areas they frequent. For the domestic tourist, the beaches hold limited appeal, so domestic
tourists remain away from the places frequented by the international tourists. The timings of
visits are clearly different for the domestic and the international tourists. In previous decades, a
clear off season for all tourists could be identified, today this is not so for domestic tourists, who
come throughout the year albeit in larger numbers in the non-monsoon months. Conversely,
international tourists avoid the monsoon months, as for them the use of the beach is the prime
attraction to come to Goa.

The various factors that have contributed to this rise in domestic tourism are:

 increased disposable income of the middle class,

 increased urbanization and stress of living in cities and towns,
 increased ownership of cars, which is making domestic tourism more attractive,
especially among the upper-middle and middle classes ,
 improved employment benefits, such as the leave travel concession, development of
inexpensive mass transport and improved connections to various places of tourist interest
 increased number of cheap accommodations and resorts,
 greater advertising targeted at domestic tourists both by the central and the state
governments, as well as the tourist industry, and
 development of time sharing of holiday accommodations, that is being targeted at the
middle class

Tourism development among policy-makers tends to be discussed in terms of the factors that
are of concern to the national and the state governments. The discussion is very much economic
in nature with some industry orientation and focuses on factors such as the revenues from
70
tourism, the foreign exchange earnings, the employment created and the income generated5. The
focus has always been on the implications of tourism development on the economy of Goa and
on the relations among the various components of its tourism industry. The micro level impact of
tourism on the destination area immediately around it has been relatively less studied, if at all6.
The impacts of such a large-scale, diversely interactive activity as tourism should be more
inclusive of all components. Tourists travel to and from their destinations, are accommodated,
fed and entertained. All these activities require extensive infrastructural networks and support
services that may not remain limited to the geographical positions of a tourists movements.
Moreover, the effects result very much from the interactions among the tourists and the agents in
the destination area.
The foreign exchange earning potential of the tourism industry is one of the main attractions
for its support by national governments, while state governments are more concerned with its
contribution to local income, taxes and employment. On an average, earnings in foreign
exchange for the last three years were US$43-57 million8. It is estimated that tourism contributes
to around13.7 percent of Net State Domestic Product; 7 percent of employment and 7 percent to
state tax revenues. The money spent by domestic and international tourists is received by
different segments of the industry which provide the supporting goods and services.
Tourist receipts can be classified into five categories: accommodation and food, shopping,
internal travel, entertainment and miscellaneous items. In the last few years indications are that
the domestic tourist coming to Goa is increasingly from the more affluent segments of society,
and the international tourist have increasingly been more of the inexpensive charter packages.
Although tourism is concentrated along the coastal zone in Goa, it has had a number of
positive benefits in terms of increased incomes, increased employment, added avenues for
upwardmobility for locals, increased revenue and increased foreign exchange earnings.
However, there are also some socio-economic and environmental impacts associated with these
benefits that need to be highlighted.

These impacts have arisen as a result of the trajectory that tourism has followed in Goa and can
be summed up as follows:

 The growth of coastal tourism has been rapid and uncontrolled.

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  The seasonal nature of tourism has led to swings in employment and income most
markedly in the small sector and to the unskilled worker.
 There has been no clear nor firm policy relating to tourism; most decisions have been on
a purely ad hoc basis, except for a marked predisposition to up market tourism. The
policy initiatives that have been introduced are not attentive t o local concerns. This has
led to some disaffection among locals toward tourists that needs to be studied.
 There has been a marked spatial concentration of tourism development along the
 coast, which is leading to heavy demand for resources in these places. Cumulatively, this
results in concentration and congestion of population, enormous increase in the density of
construction, and related infrastructure and facilities. Consequently, there has been an
overall decline in the agricultural sector in the state.

 It poses major changes in land use, shortages of resources, such as land and water, and
damage to coastal aquifers, the sand dune system, and mangrove vegetation.

 Spawning and breeding grounds have been lost due to anthropogenic activities related to
tourism; consequently, fish populations are decreasing and traditional fishing activities
are on the decline.

 The principles of sustainability and the norms related to the conservation of the
environment and ecology are generally ignored; the coastal environment is becoming
irreversibly degraded as evidenced by the concretization of beaches

It is clear that there is much to be learned about the impacts of tourism in Goa, and that further
planning and development requires information gaps to be filled. More specifically, the
following actions are needed:

72
  A careful study on the type of tourism that best suits Goa: up-scale, low budget or a
combination of the two.
 Recognition that tourism is a vulnerable industry, subject to the fads of the trade; hence,
tourism cannot be allowed to permanently change the face of the coast in the long run.
 A systematic study of the environmental impacts of tourism, through perhaps, a life cycle
analysis, and the valuation of the environment to enable its integration into decision-
making.
 Understandings of the processes that make the Goan coast a preferred tourist destination
rather than the hills or the hinterland areas.
 A monitoring and management system to ensure the effectiveness of coastal and
environmental regulations. The development of sustainability markers would be a way to
ensure this. Such markers will enable both the industry and government t o identify the
emerging issues and to facilitate mitigation before problems becomes unmanageable.
They can also serve as the basis for monitoring changes in the ecosystem, social and
economic spheres.
 The integration of the principles of coastal environment and ecology into the planning
stage of any coastal activity, as preventative rather than remedial measures.
 An environmental impact assessment and studies of Goa’s coastal stretches including
estuaries and backwaters.
 Policies which recognize the type of interconnections among tourism, local communities
and the environment, to ensure that tourism contributes to a sustainable development
agenda.

Suggestions for Development of Tourism in India:

The development and promotion of tourism sector should be done keeping on the basis of:

 Planning
73
 Organizing structures

 Business process re-engineering

 Information systems

 Technology planning

 Human resource management

 Operations management

 Marketing, Economic & Financial planning

 Strategy and Policy formulation

 Regional planning and perspective/ development planning

 Market strategy formulation

 Market research and analysis

 Infrastructure planning

 Visitor management systems planning

 Environment impact assessment

 Land use planning

 Economic and financial feasibility

 Manpower development and training

 Project implementation planning

 Project management

 Information systems and technology planning

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  Public relations

The seven key areas or the seven ‘S’ mantras which will provide thrust to the tourism
development are:

 Swagat( welcome)

 Soochna( information)

 Suvidha( facilitation)

 Suraksha( safety)

 Sahyog( cooperation)

 Samrachna( infrastructure development) and

 Safai( cleanliness)

The tourism industry, unlike many other industries, is a composite of several service providers.
These service providers are generally in the private sector. In addition, public sector institutions
such as the national or state departments of tourism are involved in the planning, development
and management of tourism. The participation of different private and public agencies makes
tourism industry a complex phenomenon requiring a strong cooperation for it to be developed
and expanded along lines that will contribute to the overall national development objectives.

Uncontrolled tourism growth could damage India’s socio- cultural structure, degrade its tangible
and intangible cultural and natural heritage, and lead to adverse economic impacts such as high
importation costs and weakening inter industry linkages. On the other hand, when industry is
properly planned, developed and managed at all levels of government in partnership with the
private sector, it will strengthen India’s socio- cultural structure. It would valorize its tangible
and intangible cultural and natural heritage and lead to positive economic impacts including
enhanced employment and income opportunities, lower importation costs and stronger inter-
industry linkages.

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There should be creation of world class infrastructure. India’s physical infrastructure is the very
foundation on which tourism is to be built, and it ranges from ports of entry, to modes of
transport to destinations, by the airways, roads, railways or waterways, to urban infrastructure
supporting tourism facilities such as access roads, power and electricity, water supply, sewage
and telecommunications amongst others. There should be development of integrated circuits,
construction and improvement of highways linking the heritage sites and tourist place of
significance, introduction of special tourist trains such as tourist trains, railway hotels, heritage
railway buildings, hill railways, railway heritage tourism, etc.

India should apply the principle of BOT i.e. build , operate and transfer to the tourism industry as
has been done in the maldives. There should be development of theme based tour packages and
network of facilities. There should be promotion of small tour operators who specialize in
planning short organized trips. There should be promotion of 3-star or less luxurios functional,
clean and hygenic accomodation, with good service near tourist attractive spots. All states should
follow the path of Rajasthan and Kerela in the promotin of tourism. Appropriate incentives and
income tax benefits may be provided to those who invest in infrastructure development for
tourism, to encourage private sector participation. Tourism education and training are critical
aspects of the tourism industry’s international competitiveness. Programs relating to the same
should be carried out to develop the tourism sector. The government should help in funding to
assit programs designed to set hig hset of professionalism for guides working in all sectors of
tourism industry.

ANNEXURES

Government laying stress on domestic tourism: Ms Ambika Soni

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New Delhi :The central government is laying greater stress on domestic tourism as it helps unite
the country, Union Minister for Culture and Tourism Ambika Soni said here Friday.

'We are laying greater stress on domestic tourism as we believe it is an important factor in
uniting the country. And that will lead to further development and progress,' the minister said at
a launch of a Hindi travelogue 'Safar Suhana Duniya Ka' written by Alok Mehta, senior
journalist and editor of Hindi weekly Outlook Saptahik.

Soni said that even as she was promoting India as a tourist destination across the world, she
would continue to promote domestic tourism with equal importance.

Inbound travel set to turn cheaper with service tax relief

Ms Ambika Soni

New Delhi, July 22 Travelling to India could become not only a bit cheaper but also a lot easier.

The Government’s recent decision to levy service tax on only 25 per cent of international tourist
packages instead of the existing 40 per cent could make such packages cheaper.

“The decision was taken a few days back. It was not easy to convince the Finance Ministry. But
they have finally agreed to increase the abatement to 75 per cent although the industry was keen
that it be increased to 90 per cent,” the Minister for Tourism and Culture, Ms Ambika Soni said
while inaugurating a travel and tourism conference on ‘Managing Growth’ organised by the
World Travel and Tourism Council, India Initiative. The domestic industry has been seeking to
get the abatement level raised since 2005.

The decision needs to be notified by the Finance Ministry before it can come into effect. It is
expected to reduce tour prices by about 1.5 per cent, the Managing Director, Le Passage to India,
Mr Arjun Sharma said.

The Government plans to start issue of visa-on-arrival at Delhi and Mumbai airports. “I have got
an assurance, which though not written is as good as it gets. When the modernisation of Delhi
and Mumbai airports is completed the visa-on-arrival programme would be started on a trial
basis. There is no problem in implementing the decision as Advance Passenger Information
System is available now and unwanted people can be screened before they leave their country,”
Ms Soni said.

Commonwealth Games will push up share in tourist arrivals'

New Delhi:March 25 The Commonwealth Games in 2010 will push up India's share in foreign
tourist arrivals to about 1.5 per cent in 2010 from mere 0.52 per cent in 2006 out of 842 million
tourist arrivals globally, according to Assocham.

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The Games will generate additional employment opportunities for over five lakh workforce in
sectors such as airlines and airports, hotels, tour operators, flyover, stadia developers, besides
medical and eco-tourism.

With modernisation of Delhi and Mumbai international airports and revamping of 35 metro
airports, airlines and airport industry will alone create over 2.5 lakh jobs, according to the
Chamber.

Hotel biggies bet on religious tourism

28 Sep 2007,

BANGALORE: India's religious destinations and temple towns draw some of the largest
numbers of tourists and devotees. Yet, most of them can't speak much for their hospitality
facilities. It's dominated by small standalone lodging places, whose hygiene, cleanliness, safety
and food offerings often leave much to be desired.

That could now change. Major hotel chains and newer entrants into the hospitality industry see a
potential business coming from the increasing demand for quality accommodation at affordable
prices from the 150 million domestic devotional travellers.

Budget hotel Ginger, which already has a presence in Haridwar, is on its way to open shop at
Puri. "We are also keen on going to Tirupati," says Prabhat Pani, CEO, Roots Corporation of
Tata Group which owns Ginger brand. The hotel, in order to get more room nights, is planning to
offer wellness facilities at its leisure-cum-devotional destinations.

Sources say Iskcon (International Society for Krishna Consciousness) Bangalore is looking at
opening accommodation facilities at nine devotional destinations, which would boast of a unique
product. The offering, which could range from being a budget hotel to a serviced apartment
complex to full-fledged homes, will invoke the essence of the particular religious destination in
which it is based.

Taposh Chakraborty, CEO of Boutique Hospitality Consultants, says the market at religious
destinations has tremendous potential for growth, as people look at quality accommodation to
extend their trip for a few extra days.

On an average, people visit devotional places twice in a year. There are some who visit temples
every month. Around 90% visit with friends and families and stay on an average for two-three
nights.

What's fuelling the interest of hospitality players is also the growing number of NRI and new age
urban Indians to these pilgrim centres. Some of the leading devotional destinations are Tirupati,
Puri, Rishikesh, Haridwar, Badrinath, Rameshwaram, Shirdi, Velankanni, Guruvayoor and
Amarnath.

While, basic comfort and hygiene is what the masses want, some 5% of the travellers look at
luxury offerings.
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Sudhir Gopi Holdings, pioneers in the field of higher education services, are now foraying into
the hospitality sector with the launch of their debut luxury project Vaikundam Retreat in
Guruvayoor. The group is planning to build a chain of luxury serviced apartments across the
pilgrim centres of south India, including Palani, Velankanni, Tirupati and Puttaparti.

"We are investing Rs 500 crore to set up luxury/religious hospitality properties," says Sudhir
Gopi, CMD.

Govt planning to set up Special Tourism Zones

NEW DELHI: With a view to making a more focussed effort at developing the tourism industry,
the Centre is considering a proposal to set up Special Tourism Zones (STZs) on the lines of
Special Economic Zones (SEZs).

The idea to create STZs was approved at a recent meeting of the National Tourism Advisory
Council (NTAC) chaired by Minister for Tourism and Culture Ambika Soni.

The STZs are proposed to be located in the major tourist destinations, cities as well as along the
coastline.

Each STZ should be able to provide 2,000-3,000 hotel rooms, about 100 odd restaurants,
facilities for shopping, entertainment etc, according to the recommendations of the sub-
committee of the council on 'public-private partnership'.

While the state government would be required to create such STZs, the private sector would
provide all the facilities and services inside the zones.

"All the concessions available to the Special Economic Zones could be fine tuned to the STZ,"
the sub-committee said in its report.

"The government would need to provide single window clearance and incentives that go along
similar special zones," it said.

Among the recommendations are that there should be 100 per cent tax exemption for a period of
10 years, exemption from import duty on capital goods and raw material, withdrawal of luxury
tax and lower VAT.

As per the sub-group, the STZs are needed as in view of the tremendous growth potential of the
tourism industry, the requirement of infrastructure will be of a high magnitude.

The proposal will now be placed before the Planning Commission for its approval.
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Nation on the move: 420 m domestic tourists in 2006
25 Apr 2007,

NEW DELHI: Indians are travelling like never before to explore the charms of their ‘incredible’
country. Revealing last year’s figures, the Union tourism ministry says a whopping 420 million
domestic tourists were recorded in 2006. And this figure just includes people who spent a night
in hotel in a city where they went as tourists and not those who also travelled but stayed with
relatives or friends. This figure is up from 236 million just four years ago.

Buoyed by the sudden surge in number of domestic tourists, Union tourism minister Ambika
Soni has decided to make this sector as the prime focus area. To prove that it means business, the
ministry has earmarked Rs 650 crore of its fiscal’s budget allocation of over Rs 1,000 crore to
develop sites within the country.

‘‘We are going to develop six circuits and 15 key destinations this year. The ministry will give a
maximum of Rs 50 crore and Rs 25 crore to state governments to develop each circuit and
destination,’’ said a senior official. Among the places identified are — Hampi, Ajanta, Ellora,
Ajmer, Jaisalmer, ghats of Varanasi, Badrinath and Kedarnath. MoUs will be signed with states
to ensure that the latter implements the projects within stipulated time periods. While the Centre
will fund the projects, states will have to give land and implement the work. Among the chosen
circuits is the famed Buddhist area of Rajgir, Nalanda and Bodh Gaya. The ministry is now
going to appoint consultants, including ITDC, to draw up project reports.

In fact, the Centre has now accepted tourism as one of the major drivers of economic growth.
Tourism ministry has for the first time been included in the committee of infrastructure that’s
headed by the PM. This move came after Soni made a presentation to PM Manmohan Singh,
highlighting the importance the sector could play in driving development of infrastructure.

Bibliography

 www.tourismofindia.com
 www.indiasta.com
 www.indiainfoline.com
 www.tourisminindia.com
 www.indiavisitinformation.com
 www.tourism.gov.in
 www.gooogle.com
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  www.yahoo.com
 www.indiatimes.com
 www.incredibleindia.com
 www.world-tourism.org

Books and magazines:

 Service sector management

By S.M.JHA

 India today

November, 2006 – Tourism special

 Business India.

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