Professional Documents
Culture Documents
Tourism Industry in Kerala India
Tourism Industry in Kerala India
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Chairman & CEO
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President & CEO
The Noel Group
Kathleen Taylor
President,
Worldwide Business Operations
Four Seasons Hotels and Resorts
Laurence Geller
Chairman & CEO
Strategic Hotel Capital
Tom Nutley
Chairman
Reed Travel Exhibitions
Alan Parker
Managing Director
Whitbread Hotel Company
Maurice H Greenberg
Chairman & CEO
American International
Group, Inc
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Akbar Al Baker
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CEO
Chairman of Management Board
Qatar Airways
& CEO
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CEO & Managing Director
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Shangri-La Hotels & Resorts
Chairman
Lusotur SA
David Babai
Chairman
Jonathan S Linen
Gullivers Travel Associates
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American Express Company
Vincent A Wolfington
Chairman
Carey International, Inc
Phil Bakes
Chairman & CEO
FAR&WIDE Travel Corporation
Henrik Bartl
EXECUTIVE COMMITTEE: Head of International Hotel
Peter Armstrong
Financing
President & CEO
Aareal Bank AG
Rocky Mountaineer Railtours
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Chairman of the Board & CEO
Vice Chairman
Continental Airlines
Sol Meli
Edouard Ettedgui
Group Chief Executive
Mandarin Oriental Hotel Group
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Group Managing Director
The Emirates Group
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Chairman
TUI AG
Paul Blackney
President & CEO
Worldspan
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Chief Executive
Eurostar Group
Rgis Bulot
Chairman of the Board
Relais & Chteaux
Jennie Chua
Chairman & CEO
Raffles International
Hotels & Resorts
David Clifton
Managing Director,
Europe & Asia
Interval International
PRS Oberoi
Chief Executive
The Oberoi Group
Glen Davidson
Senior VP,Worldwide Travel
Insurance & Related Services
American International
Group Inc
Henry Silverman
Chairman, President & CEO
Cendant Corporation
Lloyd Dorfman
Chairman & Chief Executive
The Travelex Group
Richard Helfer
Raffles International
Hotels & Resorts
James Hensley
President
Allied Europe
James Hogan
President and Chief Executive
Gulf Air
Stephen Holmes
Vice Chairman
Cendant Corporation
Raimund Hosch
President & CEO
Messe Berlin GmbH
Joseph Humphry
CEO
Travelweb LLC
Xabier de Irala
Chairman & CEO
Iberia, Airlines of Spain
Nuno Trigoso Jordo
President & CEO.
Sonae Turismo Gesto
e Servios SA
Sol Kerzner
Chairman & CEO
Kerzner International Ltd
Nigel Knowles
Managing Partner
DLA
Krishna Kumar
Managing Director
The Taj Group of Hotels
Hans Lerch
President & CEO
Kuoni Travel Holding Ltd
Manuel Martin
Partner
CyberDodo Productions Ltd
Dionsio Pestana
Chairman
Group Pestana
Stefan Pichler
Chairman & CEO
Thomas Cook AG
Fernando Pinto
CEO
TAP Air Portugal
David Radcliffe
Chief Executive
Hogg Robinson plc
Jay Rasulo
President
Walt Disney Parks & Resorts
Kurt Ritter
President & CEO
Rezidor SAS Hospitality
Peter Rogers
President & CEO
Diners Club International
Carl Ruderman
Chairman
Universal Media
Bruno Schpfer
Chairman of the Board
Mvenpick Hotels & Resorts
Robert Selander
President & CEO
MasterCard International
Per Setterberg
CEO
Global Refund Group
Eric Speck
Executive Vice President &
Chief Marketing Officer
Sabre Holdings Corporation
Barry Sternlicht
Chairman & CEO
Starwood Hotels & Resorts
Worldwide, Inc
Paul McManus
Ron Stringfellow
President & CEO
Executive Chairman
The Leading Hotels of the World Southern Sun Group
(TSA) for an Indian state. Kerala is also one of the first state/provincial
the world and is projected to increase by 11.4 per cent per annum over
Tourism and provides forecasts based on the most recent national and
the states fragile ecosystem and the provision of facilities to train the
Travel & Tourism in Kerala, this report will act as a catalyst, encouraging
gross state product and employment, which can be compared with other
Jean-Claude Baumgarten
Yogesh Chandra
The World Travel & Tourism Council would like to express its sincere gratitude to the Members and secretariat of the WTTC India Initiative who have contributed their time,
effort and resources to this and many other important India projects. A complete list of WTTC India Initiative Members can be found on the inside back cover of this report.
CONTENTS
EXECUTIVE SUMMARY ____________________________________________________________________________
____________________________________________________________________ 21
APPENDIX
SATELLITE ACCOUNT TABLES ________________________________________________________________________________ 26
EXECUTIVE
SUMMARY
THE IMPORTANCE OF TRAVEL & TOURISM TO KERALAS
ECONOMY IS INDISPUTABLE AND CURRENT FORECASTS
PROJECT A VERY ROSY FUTURE FOR THE INDUSTRY.
NEVERTHELESS, CARE MUST BE TAKEN TO ENSURE THAT
FUTURE TOURISM DEVELOPMENT IS SUSTAINABLE, AND
THAT KERALA ATTRACTS THE RIGHT KIND OF TOURISM
WITH BENEFITS FOR ALL STAKEHOLDERS.
The decision to develop a tourism satellite account
the state.
economic
sectors
within
the
state,
such
as
of WTTC, said:
per cent of gross state product (GSP) and 3.0 per cent
years.
of local communities.
larger rewards that Travel & Tourism can bring over the
ECONOMIC IMPACT
IN 2003, KERALAS TRAVEL & TOURISM IS EXPECTED TO GENERATE RS102.2
BILLION (US$2.1 BN) OF ECONOMIC ACTIVITY (TOTAL DEMAND). THE
INDUSTRYS DIRECT IMPACT INCLUDES:
378,584
Rs
39.3
bn
(US$791.1 mn) of
GROSS DOMESTIC PRODUCT
(GDP) equivalent to 3.7% of total GDP.
788,551
Rs
Rs
41.0
bn
(US$1.6 bn)
of GROSS DOMESTIC PRODUCT
equivalent to 7.7% of total GDP.
bn
Rs
(US$826.9 mn) of
EXPORTS, SERVICES & MERCHANDISE
or 16.6% of total Exports.
Rs
1.4
18.1
bn
(US$365.5 mn) of
CAPITAL INVESTMENT
or 7.8% of total Investment.
bn
(US$27.6 mn) of
GOVERNMENT EXPENDITURES
or a 1.0% share.
81.8
GROWTH
IN 2003,TRAVEL & TOURISM IN KERALA IS FORECAST TO SEE REAL GROWTH
OF:
12.2%
in total
TRAVEL & TOURISM DEMAND,
Rs102.2 bn (US$2.1 bn).
13.0%
15.1%
OVER THE NEXT TEN YEARS, KERALAS TRAVEL & TOURISM IS EXPECTED TO
ACHIEVE ANNUALIZED REAL GROWTH OF:
11.4%
in total
TRAVEL & TOURISM DEMAND,
to Rs563.9 bn (US$7.5 bn) in 2013.
11.6%
11.4%
13.8%
in VISITOR EXPORTS,
rising to Rs239.1 bn
(US$3.2 bn) by 2013.
8.3%
5.6%
in terms of
GOVERNMENT EXPENDITURES
to Rs4.4 bn (US$58.9 mn) in 2013.
SUMMARY OF
KEY TRENDS
Kerala coast.
to reach Kerala.
(US$117 million).
tourism has been more than 18 per cent over the past
decade.
Vagamon.
purposes.
KERALAS
TRAVEL & TOURISM
OVERVIEW OF RECENT TRENDS AND DEVELOPMENTS
TAJIKISTAN
EN.
OCCUPIED BY PAKISTAN
AND CLAIMED
BY INDIA
JAMMU
AND
KASHMR
GHANISTAN
Srnagar
Kabul
Islamabad
Kasaragod
HIMCHAL
PRADESH
Lahore
Qandahr
OCCUPIED BY CHINA
AND CLAIMED
BY INDIA
OCCUPIED BY INDIA
AND CLAIMED
BY PAKISTAN
Shimla
PUNJAB
Quetta
Cannanore
Chandgarh
Lhasa
HARYNA
Delhi
Rohtak
New-Dehli
Sukkur
KISTAN
ARUNACHAL
PRADESH
NEPAL
UTTAR
PRADESH
Kathmandu
SIKKIM
RJASTHN
Dispur
Agartala
Bhopl
MADHYA
PRADESH
Indore
WEST
BENGAL
Calcutta
Jamnagar
Calicut
Imphl
MANIPUR
BANGLADESH
Dhaka
Tellicherry
Mahe
Badagara
Kozhikode
NGLAND
Kohima
MEGHLAYA
Shillong
Patna
BIHR
Ahmadbd
Itnagar
BHUTAN
ASSAM
Knpur
chi
Gndhnagar
Thimphu
Gangtok
Lucknow
Jaipur
GUJART
KERALA
Hosdrug
Amritsar
Faisalabad
Ponnani
Kunnamkulam
zawl
TRIPURA
Mandalay
Irinjalakuda
Chittagong
MAHRSHTRA
Bhubaneswar
Cuttack
Valparai
Chiang
Bay of
Bengal
Hyderbd
ANDHRA
PRADESH
Alwaye
MYANMAR
Bombay
Cochin
Kochi
PONDICHERRY
Rangoun
Yanam
Palghat
Chittur
Trichur
MIZORAM
ORISSA
Ngpur
Panaji
Ernakulam
Mattancheri
Kottayam
Changanacheri
Alleppey
Mavelikara
GOA
KARNTAKA
Madras
Bangalore
Indian
Ocean
PONDICHERRY
Kavaratti
LAKSHADWEEP
KERALA
TAMIL
NDU
Pondichery
PONDICHERRY
Kariakal
Jaffna
Quilon
Andaman Islands
ANDAMAN
Indian
Ocean
Shoranur
Attingal
Trivandrum
Neyyattinkara
SRI LANKA
Colombo
Nicobar Islands
NIC
MALDIVES
Kollam
Port Blair
&
Trivandrum
Punalur
Sandwiched between the Western Ghats and the Arabian Sea, the Indian
immense scope for tourism. Within its 38,863 square kilometres, this
These offer the tourist a chance to escape from the mainland and
lush evergreen forests and a rich cultural heritage with unique art forms.
In addition, a moderate climate, a level of literacy far above the rest
of India, and a long history of community harmony, make this region a
In recent years Kerala has become known as the perfect haven for
an average annual rate of more than 18 per cent, while arrivals from
abroad rose by 12 per cent per annum.These growth rates are well above
the world averages and corroborate the findings of the WTTC and
11
Year
Arrivals ('000)
% annual change
1991
949
9.5
simply for regeneration and relaxation has come from both Western and
1992
994
4.8
1993
1,027
3.3
accounting for 35 per cent of arrivals as against 40 per cent from within
1994
1,284
25.0
Asia and 17 per cent from the Americas and Kerala has certainly
1995
3,916
204.9
1996
4,403
12.5
1997
4,953
12.5
1998
4,482
-9.5
1999
4,888
9.1
2000
5,011
2.5
2001
5,200
3.8
air transport accounts for less than 7 per cent of arrivals. And a
million) in 2000 the last year for which details are available nearly
and/or relations.
Kerala's international tourism receiptsa, 1991-2000
6,000
120
5,000
100
the result that the southern Indian states share of the countrys total
arrivals increased from 5.6 per cent to 8.1 per cent. More significantly,
preliminary results for 2002 suggest that, while Indias arrivals declined
4,000
80
3,000
60
by 6.6 per cent the second consecutive year of decline Keralas rose
by 11.4 per cent, taking its share to as much as 9.8 per cent of Indias
2,000
total count.
A major contributor to Keralas tourism growth in the last few years
1,000
40
20
0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Receipts (Rs mnb)
% annual change
Year
India's
arrivals
('000)
1991
1,236
69
na
5.6
1992
1,435
92
32.2
6.3
1993
1,443
95
3.9
6.6
1994
1,886
105
9.8
5.5
1995
2,124
143
36.7
6.7
1996
2,288
177
23.7
7.7
1997
2,374
182
3.2
7.7
1998
2,358
190
4.1
8.1
Tourism was not founded until 1960 and, even then, its initial role was
1999
2,482
202
6.4
8.2
2000
2,677
210
3.8
7.8
2001
2,537
209
-0.4
8.2
2002a
2,370
233
11.4
9.8
% annual
change
Kerala's
share
(%)
a Preliminary estimates
12
Source: KTDC
The first major step for tourism development in Kerala was taken
with the launch of the Kerala Tourism Policy in 1995. To quote the
policy itself:
like Taj and Oberoi through Tourist Resorts (Kerala) Ltd, a subsidiary
of the KTDC.
Category
No. of hotels
No. of rooms
5-star deluxe
93
5-star
584
4-star
465
3-star
39
1,602
2-star
36
940
1-star
24
703
tourism.
Heritage resorts
In line with the 1995 Kerala Tourism Policy, the government is also
Total
112
122
4,499
Source: KTDC
In 2000, 677 rooms (15 per cent of total supply) were in the five-star
operators, like Kerala Travels, Great India Tour Company and Pioneer
industry.
has been constituted with major industry players and other stakeholders
have already established hotels and resorts in the state. Kerala currently
has 147 classified hotels ie hotels that are officially recognized by the
13
TSA CONCEPTS
& STRUCTURE
Year 2003 (US$ mn, 000 Jobs)
Personal Travel
& Tourism
Business Travel
757.6
Government
Expenditures
(Individual)
81.9
Visitor
Exports
Government
Expenditures
(Collective)
709.9
8.4
19.2
Capital
Investment
Exports
(Non-Visitor)
365.5
117.1
1,557.8
2,059.5
1,557.8
501.8
Imports
357.3
791.1
Comp.
Indirect
Taxes
Operating
Surplus Subsidies
Depreciation
2,059.5
Travel & Tourism Economy GDP
(Direct and Indirect)
Imports
1,647.8
T&T Industry
Employment
378.6
T&T
Economy
Employment
Property
Taxes
Property
Taxes
788.6
Personal
Income Taxes
Indirect
Taxes
14
411.7
Corporate
Taxes
direct impact only, for comparison with all other industries, while the
Travel & Tourism.Through this process, the Satellite Account is also able
(Industry and Economy) into the direct and indirect impacts of Gross
Finally, one of the most important elements of the Travel & Tourism
government work.
quantified for the basic Travel & Tourism Industry and the broader Travel
T&T
Economy
by 2013.
should grow to more than 2.2 million jobs 15.0 per cent of total
for 3.0 per cent of total employment in 2003 and are forecast to rise to
Travel & Tourism exports in India are expected to represent 5.9 per cent
In 2003, the Travel & Tourism Industry should contribute 3.7 per cent
contribution of 2.0 per cent in 2003, while the Travel & Tourism
Rs216.5 billion, or US$2.9 billion (5.2 per cent of total GSP), by 2013.
2003, the private and public sectors combined are expected to spend
The Travel & Tourism Economy contribution should grow from 7.7 per
9.6 per cent of total investment rising to US$1.3 trillion, or 10.1 per
its total economic activity by 4.6 per cent per annum worldwide in real
investment.
11.4 per cent per annum in real terms between 2004 and 2013.
generated by the Travel & Tourism Economy. The Travel & Tourism
Industry accounts for 2.6 per cent of global employment.Today there are
67.4 million Travel & Tourism Industry jobs and 194.6 million jobs in
the Travel & Tourism Economy, and these will rise to 83.9 million Travel
per cent of the total and government spending on Travel & Tourism to
& Tourism Industry jobs and 247.2 million Travel & Tourism Economy
jobs by 2013.
Indias Travel & Travel Industry is expected to generate 11.1 million jobs
are expected to total to Rs1.4 billion (US$27.6 million), or 1.0 per cent
in 2003 (2.7 per cent of total employment), while the broader Travel &
Tourism Economy will account for 23.8 million jobs (5.8 per cent of
total employment).
spending.
16
2003
% of Total
Growtha
Rs bn
2013
% of Total
Growthb
37.6
5.4
10.9
195.7
7.2
10.8
4.1
---
17.4
19.1
---
9.7
1.4
1.0
4.8
4.4
1.1
5.6
Capital Investment
18.1
7.8
7.7
75.1
8.3
8.3
Visitor Exports
35.2
14.3
16.0
239.1
19.9
13.8
Other Exports
5.8
2.4
10.8
30.6
2.5
10.9
102.2
---
12.2
563.9
---
11.4
39.3
3.7
13.0
216.5
5.2
11.4
81.8
7.7
11.6
423.5
10.2
10.7
378.6
3.0
15.1
1,135.7
7.7
11.6
788.6
6.2
13.8
2,221.4
15.0
10.9
a2003 Real Growth Adjusted for Inflation (%); b2004-2013 Annualized Real Growth Adjusted for Inflation (%); cEmployment in '000 Jobs
Rs bn
2003
% of Total
748.3
4.5
Growtha
7.9
Rs bn
3,286.1
2013
% of Total
Growthb
5.4
8.7
Business Travel
91.5
---
0.7
465.4
---
10.4
Government Expenditures
32.5
1.0
3.8
101.8
1.0
5.1
Capital Investment
412.9
7.0
6.8
1,616.7
7.4
7.5
Visitor Exports
156.1
3.9
8.2
802.4
3.6
10.5
78.4
2.0
15.6
463.9
2.1
12.0
1,519.7
---
7.4
6,736.3
---
8.8
Other Exports
Travel & Tourism Demand
T&T Industry GDP
529.4
2.0
6.1
2,153.4
2.2
7.9
1,274.6
4.8
6.5
5,180.2
5.3
7.9
11,093.1
2.7
1.0
12,659.9
2.7
1.3
23,839.8
5.8
1.3
27,684.9
6.0
1.5
2013
% of Total
Growthb
a2003 Real Growth Adjusted for Inflation (%); b2004-2013 Annualized Real Growth Adjusted for Inflation (%); cEmployment in '000 Jobs
2003
% of Total
Growtha
US$ mn
2,135,860
9.9
2.2
3,862,270
10.8
3.7
Business Travel
488,765
---
0.6
871,716
---
3.7
Government Expenditures
224,058
3.9
2.8
378,172
4.1
3.0
Capital Investment
685,957
9.6
2.8
1,308,620
10.1
4.3
Visitor Exports
530,912
5.9
3.0
1,332,080
6.0
7.1
Other Exports
478,952
5.3
8.9
1,186,990
5.4
7.2
4,544,240
---
2.9
8,939,730
---
4.6
1,280,350
3.7
1.1
2,279,200
3.8
3.6
3,526,850
10.2
2.0
6,461,360
10.8
3.9
67,441.1
2.6
0.1
83,893.6
2.8
2.2
194,562.0
7.6
1.5
247,205.0
8.4
2.4
a2003 Real Growth Adjusted for Inflation (%); b2004-2013 Annualized Real Growth Adjusted for Inflation (%); cEmployment in '000 Jobs
17
TSA HIGHLIGHTS
KERALA
Travel & Tourism Total Demand
(2003 Est Rs bn)
TOTAL DEMAND
Travel & Tourism in Kerala is expected to total
Rs102.2 billion of Total Demand in 2003, growing
12.2 per cent over 2002 levels, and is expected to
grow a further 11.4 per cent per annum over the
next decade.
The largest portion of Kerala Travel & Tourism
Demand is personal consumption by residents at
Rs37.6 billion followed by international and exKerala Visitor Exports of Rs35.2 billion.
KERALA
Travel & Tourism Total Demand
(Cumulative Real Growth, %)
300
250
200
150
100
50
0
1990
KERALA
Travel & Tourism Employment
('000 Jobs)
EMPLOYMENT
The Travel & Tourism Industry in Kerala is
expected to yield directly 378,600 jobs in 2003, or
3.0 per cent of total employment. A total of
788,600 jobs (direct and indirect), or 6.2 per cent
of total employment are expected to be generated
across the broader spectrum of the Travel &
Tourism Economy.
Over the next ten years, Keralas Travel &
Tourism Industry is expected to create 757,100
jobs while the broader Travel & Tourism Economy
is expected to create 1.4 million new jobs.
GSP
The Travel & Tourism Industry in Kerala is
expected to produce directly Rs39.3 billion, or 3.7
per cent, of total gross state product (GSP) in 2003.
The broader Kerala Travel & Tourism Economy
(direct and indirect) is expected to produce Rs81.8
billion, or 7.7 per cent of total GSP.
The long-term expectations for Travel &
Tourism GSP are exceedingly positive - exceeding
10.7 per cent annualized real growth.
1,000
Economy
2000
2005
2010
KERALA
Travel & Tourism Economy Employment
(Cumulative Real Growth, %)
Industry
300
800
250
600
200
150
400
100
200
50
0
0
1999
2000
2001
2002
2003
1990
2004
KERALA
Travel & Tourism GSP
(1990 Constant US$ mn)
2,000
Economy
1995
2000
2005
2010
KERALA
Travel & Tourism Economy GSP
(Cumulative Real Growth, %)
Industry
300
1,500
250
200
1,000
150
100
500
50
0
0
1999
18
1995
2000
2001
2002
2003
2004
1990
1995
2000
2005
2010
KERALA
Travel & Tourism Capital Investment
(Cumulative Real Growth, %)
KERALA
Travel & Tourism Capital Investment
(1990 Constant US$ mn)
CAPITAL INVESTMENT
450
300
400
250
200
350
150
100
300
50
250
0
1999
2000
2001
2002
2003
2004
1990
KERALA
Personal & Business Travel & Tourism
(1990 Constant US$ mn)
1,250
Business
1995
2000
2005
2010
KERALA
Personal Travel & Tourism
(Cumulative Real Growth, %)
Personal
300
1,000
250
750
200
150
500
100
250
50
0
0
1999
2000
2001
2002
2003
1990
2004
KERALA
Travel & Tourism Exports
(1990 Constant US$ mn)
1,250
Other
1995
2000
2005
2010
KERALA
Travel & Tourism Exports
(Cumulative Real Growth, %)
Visitor
300
1,000
250
750
200
150
500
100
250
50
0
0
1999
2000
2001
2002
2003
1990
2004
KERALA
Travel & Tourism Govt Expenditures
(1990 Constant US$ mn)
1995
2000
2005
2010
EXPORTS
Travel & Tourism Exports to international and exKerala visitors play a fundamental role in Keralas
Travel & Tourism business.
In 2003, Travel & Tourism services and
merchandise exports for Kerala are expected to
total Rs41.0 billion or 16.7 per cent of total
exports for the state.
Over the next decade, Visitor Exports are
expected to grow at an annual rate of 13.8 per cent,
one of the highest rates in the world.
KERALA
Travel & Tourism Govt Expenditures
(Cumulative Real Growth, %)
GOVERNMENT
35
300
250
30
200
150
25
100
50
20
0
1999
2000
2001
2002
2003
2004
1990
1995
2000
2005
2010
19
THE POLICY
FRAMEWORK
POLICY RECOMMENDATIONS
The development of the 1995 Kerala Tourism Policy is a clear indication that the
government of Kerala recognizes the contribution that Travel & Tourism can make to the
states economy, both in terms of wealth creation and employment generation.The steps
that have already been taken to harness the regions tourism potential are a further
reflection of the governments commitment to the industry.
Nevertheless, despite the growing recognition of Travel & Tourisms
the industry and its potential as a catalyst for the development of other
State.
services to visitors, travel companies and the community at large are very
diminish their appeal. One example is Kovalam beach which, due to its
by the private sector. Despite the bullish forecasts, neglect of this kind
in the state. Kerala should ensure that newly developed beaches do not
related policies and activities. However, the private sector also has a
In line with the strategy outlined in the 1995 Kerala Tourism Policy,
services.
The
Development Authorities
should
involve
the
best
namely:
Coastal cruises
Luxury cruise boats would ensure the development of coastal travel,
eventually linking Keralas beaches and inland water destinations to the
Lakshadweep and Maldives islands, as well as to Sri Lanka and other parts
of Southeast Asia. The development of marinas would, in turn, attract
upmarket travellers visiting the region on their private yachts.
Luxury houseboats
Kerala has introduced the system of houseboats to harness the potential
of its backwaters. Unfortunately, quality houseboats are few and far
between.WTTC is aware that Indias finest houseboats, of every category,
are to be found on the Dal Lake in Kashmir. But, because of the poltical
problems in Kashmir, many of the houseboat builders and owners are out
of work, which causes enormous distress.
WTTC would therefore strongly recommend that the Government
of Kerala invite the houseboat builders/owners in Kashmir to create
similar houseboats and facilities in the backwaters of Kerala. In this way
two separate problems affecting tourism in different parts of the
country could be successfully addressed.
Water sports
WTTC has noted that facilities for water sports are relatively undeveloped
in Kerala. In order for the state to attract high-yield tourists to its beaches
and backwaters, private investment in water sports facilities should be
increased. What is needed is the full complement of facilities for every
type of water sports water-skiing, water scooters, para-sailing, airborne
sailing, marine fishing and scuba diving.These sporting facilities should be
listed as priority areas for investment by foreigners and Keralites alike.
22
Ayurveda
In order to make Travel & Tourism the states primary economic driver,
attraction for tourists. The Kerala Government should ensure that all
Keralas cuisine
not be taken.
Kerala boasts of some of the best seafood anywhere in the world the
be final and would determine the execution of policy in this vital sector.
Traditional festivals
The traditional Kerala festivals are colourful social events that reflect the
vibrant nature of the land and its people. Boat races in the backwaters
are majestic and the traditional art forms in the state are spectacular.
Kerala also has a rich and singular cultural heritage. These festivals
promotion.
Travel & Tourism clearly reflects its lack of appreciation of the industrys
importance as a generator of wealth and employment. It also
The Government of India has a very restrictive air transport policy, and
Travel & Tourism be increased significantly over the next few years, so
that it is more in line with the forecast contribution of Travel & Tourism
countries/states: Singapore, 9.1 per cent; Hong Kong, 7.4 per cent;
Malaysia, 5.1 per cent; Sri Lanka, 4.0 per cent; and China, 3.8 per cent.
% annual change
1995/96
173.0
na
1996/97
292.0
68.8
Tax intelligently
1997/98
360.0
23.3
1998/99
372.0
3.3
1999/00
360.0
-1.2
2000/01
460.0
27.8
2001/02
400.0
-13.0
food and beverages) are higher than in any other state in India.
Tourism taxes in Kerala
Source: KTDC
Luxury tax
Room rate:
Non air-conditioned
Air-conditioned
7.5%
15.0%
% annual change
1995/96
21.0
na
9.2%
1996/97
23.6
12.4
100.0%
1997/98
27.7
17.4
10.0%
1998/99
69.9
152.3
1999/00
112.5
60.9
2000/01
122.5
8.9
2001/02
140.0
14.3
Year
Sales tax
Food
Imported liquor
Local liquor
Source: KTDC
Source: KTDC
luxury items. Many visitors look on these items as necessities and ones
that are readily available in their everyday lives at home. It is also worth
noting that the lowering of these tax rates can make a destination a more
not only in the interest of tourism, but also for the general economic
private sector investors on a build, operate and transfer (BOT) basis, and
increase in percentage terms over the last few years, as the following
tables show, the allocation for tourism has remained stagnant in terms of
its share in the overall budgets.
a five-year period, with the state allocation for Travel & Tourism
tourism assets.
24
FAVOUR TECHNOLOGICAL
ADVANCEMENT
E-marketing and distribution
PROMOTE RESPONSIBILITY IN
NATURAL, SOCIAL AND CULTURAL
ENVIRONMENTS
Kerala has a fragile eco-system and its backwaters and coastal lagoons are
the myriad of interests public and private sector, state and local and
studies.
Tourism Industry after the 1992 Rio Earth Summit by WTTC, the
database. This should be carried out with partners from the private
recommends that:
& Tourism are spread equitably across the population in all parts of
25
SATELLITE ACCOUNT
1998
1999
2000
2001
2002E
2003E
2013P
19.08
2.88
2.59
0.29
0.22
17.63
22.71
3.40
3.04
0.37
0.27
20.41
26.22
3.77
3.36
0.41
0.31
23.27
28.64
3.47
3.09
0.38
0.34
25.50
32.00
3.27
2.90
0.36
0.37
28.64
37.61
4.07
3.62
0.44
0.42
35.24
195.67
19.10
17.43
1.67
1.34
239.07
39.82
46.80
53.57
57.95
64.28
77.33
455.17
0.50
10.02
2.98
0.63
11.64
3.51
0.70
13.04
4.11
0.78
14.20
4.60
0.86
15.88
4.95
0.95
18.14
5.81
3.07
75.13
30.56
53.31
62.58
71.42
77.53
85.97
102.23
563.94
210.94
24.68
241.54
27.31
290.20
29.49
328.82
32.79
378.58
39.27
1,135.66
216.52
506.21
57.24
611.28
62.11
692.98
69.11
788.55
81.80
2,221.37
423.52
4.95
1.01
7.72
15.63
7.76
5.16
1.01
7.74
15.48
8.41
5.21
1.01
7.75
15.27
8.59
5.27
1.02
7.78
15.83
8.71
5.41
1.03
7.82
16.62
8.97
7.16
1.10
8.27
22.42
11.59
2.35
3.48
2.45
3.47
2.56
3.48
2.70
3.52
2.98
3.71
7.68
5.23
5.13
7.28
5.38
7.33
5.68
7.41
6.20
7.73
15.02
10.24
5.92
-10.72
6.37
-10.44
10.86
17.44
10.80
9.74
7.30
5.61
6.27
8.51
4.91
5.27
5.27
6.49
6.97
2.48
5.62
5.59
4.81
7.74
16.05
10.78
13.47
12.17
5.62
6.66
13.78
9.14
12.18
11.45
4.87
0.99
7.69
16.28
7.54
Travel & Tourism Real Growth (% per annum, except 2013 = 10-year annualized)
Personal Travel & Tourism
12.97
13.33
11.00
Business Travel & Tourism
8.31
12.46
6.50
Govt Expenditures
Capital Investment
Visitor Exports
Other Exports
Travel & Tourism Consumption
Travel & Tourism Demand
26
15.06
1.65
15.26
-3.09
13.63
10.14
20.83
10.64
10.22
12.17
11.93
11.79
7.09
7.69
9.56
12.59
10.02
9.70
TABLES
1998
Travel & Tourism Industry Aggregates (Direct Impact Only)
Gross Domestic Product
11.58
Employment
13.88
1999
2000
2001
2002E
2003E
2013P
12.44
-22.65
6.35
14.51
4.70
20.14
5.91
13.31
12.96
15.13
11.44
11.61
6.51
14.68
5.23
20.76
5.96
13.36
11.64
13.79
10.75
10.91
462.48
69.87
62.81
7.07
5.24
427.42
527.44
79.07
70.55
8.52
6.37
474.09
583.54
83.93
74.81
9.12
6.80
517.69
606.95
73.59
65.46
8.13
7.17
540.26
659.94
67.37
59.88
7.49
7.71
590.74
757.60
81.92
72.96
8.96
8.37
709.86
2,610.78
254.81
232.53
22.28
17.87
3,189.74
965.01
1,086.98
1,191.96
1,227.96
1,325.76
1,557.76
6,073.20
12.02
242.83
72.16
14.62
270.37
81.45
15.60
290.20
91.41
16.44
300.98
97.41
17.69
327.62
102.04
19.20
365.52
117.06
40.98
1,002.46
407.77
1,292.03
1,453.42
1,589.17
1,642.78
1,773.11
2,059.54
7,524.41
210.94
241.54
290.20
328.82
378.58
1,135.66
573.28
607.69
624.80
676.37
791.11
2,888.93
506.21
1,273.56
611.28
1,316.09
692.98
1,425.41
788.55
1,647.81
2,221.37
5,650.81
608.70
91.26
7.35
547.13
1,254.44
16.87
312.03
94.00
1,677.34
675.67
97.19
7.88
599.42
1,380.14
18.07
336.01
105.84
1,840.07
715.65
86.76
8.45
637.01
1,447.87
19.38
354.88
114.85
1,936.98
761.25
77.71
8.90
681.43
1,529.28
20.41
377.92
117.71
2,045.31
843.95
91.26
9.32
790.77
1,735.30
21.39
407.18
130.40
2,294.27
2,353.12
229.66
16.10
2,874.94
5,473.82
36.94
903.52
367.53
6,781.80
661.60
1,384.46
703.63
1,474.63
736.69
1,551.78
780.20
1,644.23
881.28
1,835.61
2,603.81
5,093.12
588.42
1,231.62
27
P R S Oberoi*
The Oberoi Group
Ankur Bhatia*
Amadeus India Pvt Ltd
Hugh Hamilton-Andrews
PFG Nomura
K L Muralidhara*
American Express
Priya Paul
The Park Hotels
Harsh Neotia
Ambuja Cement Eastern Ltd
Arjun Sharma
Select Holiday Resorts
K Roy Paul
Air India
Himmat Anand
Sita World Travel
Alun Cathcart*
Avis Europe Plc
Daniel Desbaillets*
Six Continents Hotels
Lalit Suri*
Bharat Hotels Ltd
R K Krishna Kumar*
The Taj Group
Peter Kerkar
Cox & Kings
Ashwini Kakkar*
Thomas Cook (India) Ltd
Maurice Flanagan*
Emirates
Adi J Katgara
Travel Corporation India Pvt Ltd
Yogesh Chandra
Secretary General,WTTC India Initiative
Vivek Nair
Hotel Leelaventure Ltd
Ritu Chatrath
Executive Assistant,WTTC India Initiative
Sunil Arora
Indian Airlines
Marianne Thompson-Hill
Director, Regional Programmes,WTTC
Nakul Anand
ITC Hotels
WTTC India
D-56 Malcha Marg
Chanakyapuri
New Delhi 110021
India
Tel: +91 (11) 2410 9745
Fax: +91 (11) 2410 8464
Email: rchatrath.wttc@starith.net
Naresh Goyal
Jet Airways
HH Maharaja Gaj Singh
Maharaja Heritage Resorts