An Overview of The Indian Tourism Industry

Tourism
Tourism is the temporary, short-term movement of people to destination outside the places where they normally live and work and their activities during the stay at each destination. It includes movements for all purposes. India is poised to emerge as the 2nd fastest growing (8.8%) tourism economy in the world over 2005-14 according to the World Travel & Tourism

India is now recognized as a year round destination

According to World Tourism Organization estimates, India will lead in South Asia with 8.9 million arrivals by 2020

New Up-coming Tourism Products Monsoon magic . The industry is growing at about 13 per cent annually.7 billion.focus on months from April to October Rural & village tourism . Wellness & Spa tourism – luxurious world class health spa’s are mushrooming across the country.the Indian Healthcare Delivery market is estimated at US$ 18. Palace on Wheels. Medical tourism . Luxury tourism – e.the tourism ministry is laying special emphasis on infrastructure development in various rural destinations in India. Palaces Adventure tourism – with emphasis on eco-tourism MICE – convention centers coming up in the metro cities .g.

• . • • • Special attention for infrastructure development in North East India and Jammu & Kashmir. To have active participation and investment from private sector in tourism industry. To impart a special thrust to eco tourism in all developmental activities.5 %.Government Policies Goals and Objectives • To increase the share in international tourist arrivals. with specific emphasis on the status of the women and to encourage tribal and local crafts. which is estimated at around 0. • To give greater focus to rural tourism with the objective of eliminating poverty and creating employment. To have improvement and environmental up-gradation of the protected monuments.

• To conduct effective training programmes for capacity building of tourism service providers and to increase employability of existing tourism service providers.‟ • To actively participate in activities of international organizations related to tourism such as UN World Tourism Organisation and World Tourism and Travel Council. • To encourage Adventure Tourism for the new class of young tourists. Yoga.e. Indian cuisine etc. having marked preference for adventure sports and distant destinations.• To give due importance to domestic tourism. . • To effectively encourage special products that can attract tourists i. Ayurveda. particularly tourism connected with pilgrimages. Siddha . • Training of State Police to act as „Tourist Police.

New Tourism Policy was launched.Reform measure and policy initiatives • Travel & tourism industry in India is marked by considerable government presence. It was built around 7 mantras – Swagat (welcome). No approval required for foreign equity of up to 51 per cent in tourism projects. • In the year 2002. Some salient features of tourism policy are – • • The policy proposes the inclusion of tourism in the concurrent list of the Constitution to enable both the central and state governments to participate in the development of the sector. Suvidha (facilitation). Each state has a tourism corporation. Sanrachna (infrastructure) and Safai (cleanliness). . Suchna (information). Sahyog (cooperation). Surakhsha (security). while the central government runs the India Tourism Development Corporation. NRI investment up to 100% allowed.

• A multi-pronged approach has been adopted. In order to give greater impetus to development of tourism through public partnership.• • Concession rates on customs duty of 25% for goods that are required for initial setting up. which includes new mechanism for speedy implementation of tourism projects. development of integrated tourism circuits and rural destinations. Several small schemes of 9th Plan have been merged into one scheme of project/infrastructure development for destinations and circuits to create world class tourism infrastructure in the identified destinations and circuits all over the country. or for substantial expansion of hotels. The public private partnership is also being encouraged in the form of capital subsidy. travel agents and tour operators in foreign exchange are exempt from income tax. 50% of profits derived by hotels. • • • . a National Tourism Advisory Council has been constituted.

• • • • • The world's leading travel and tourism journal. Strategic tie-ups with such associations could be a significant factor in the years to come. "Conde Nast Traveller".000 member hotels. Bangalore-based Leela Palace Kempinski has been rated as the favourite business hotel in the world in a Readers' Choice Awards by Conde Nast Traveller. ranked India as the numero uno travel destination in the world. since over 40 per cent of American hotels are owned and operated by People of Indian Origin (PIO). India was adjudged Asia's leading destination at the regional World Travel Awards (WTA). the highest policy making world tourism body represented by 150 countries.Tourism sector towards globalization • The Asian American Hotel Owners Association (AAHOA) has committed to promote India as a tourist destination in the US through its network of 22. The "Incredible India" campaign has been ranked as the Highest Recall Advertisement worldwide by "Travel and Leisure". International Recognition • India has been elected to head the UN World Tourism Organisation (UNWTO). India's Taj Mahal continues to figure in the seven wonders of the world. .

5. Database and computer reservation Sys (CRS): 'lost cities' Home video and TV video texts: BBC's Ceefax Service "Travel Advice Countries' Transport innovations: high speed trains 66% of American users believe that eTourism web sites provide better services than travel agents! Samosa!! 4. 3. .Technology 1. 2.

“ Helping Tourism Grow” TFCI provides financial assistance to enterprises for setting up and/or development of tourism-related projects. facilities and services.Tourism Finance Corporation of India Ltd. such as • Hotels • Restaurants • Holiday Resorts • Multiplexes and Entertainment Centers • Education and Sports • Safari Parks • Convention Halls • Transport Travel and Tour Operating Agencies • Air Service • Tourism Emporia The coverage under project-related services and tourism-related studies by TFCI include: • Project-Related Services • Tourism-Related Studies/ Services • Govt Sector • Private Sector .

.com .com.coxandkings.indiatourism.lonelyplanet. • official websites like www. www. www. • www. www. and other state websites • Previous Travelers especially Hollywood personalities and Statesmen • Indian Consulates –besides their other functions also provide information related to tourism in India.com.org.Suppliers Of Indian Tourism • Lonely Planet Guidebooks • Websites like www.incredibleindia.com.etc.makemytrip. www.tourisminindia.keralatourism.com .tourindia.makemytrip. www. www.com .com.com.

Total Tourist Arrivals 2500000 2000000 1500000 Series1 1000000 500000 0 1 2 3 .

Scheme wise Government Expenditure on Tourism .

Total Revenue Earned 6000 5000 4000 Series1 3000 2000 1000 0 January February March April May Series2 Series3 .

With extreme availability of information and variety of options. customers are TOURISTS.Customers In tourism. It has become a challenge to please customers. the purview of tourists does not only include ‘foreign’ tourists but also tourists from within India. Infrastructural factors: • Accommodation • Transport • Accessibility • Shopping facilities • Informative . it has become even more difficult to please customers in tourism industry. The customer satisfaction can be gauged on these parameters : 1.

2. Services and Safety factors: • Catering • Entertainment • Local people • Safety 3. Necessities: • Food • Water • Amenities 4. Cost related factors: • Prices • Value for money 5. Natural or unique factors: • Scenery • Climate • Overall satisfaction .

SWOT ANALYSIS Strengths: • • • • Rich culture heritage and colorful festivals. Well known Indian hospitality. Restrictive Airline Policy of the Government of India. Inadequate marketing and information channels. Terrain is ideally suited for various adventure activities. Some places are inaccessible. Weaknesses : • • • • • Inadequate infrastructure to match the expectation. Scenic beauty of the country draws tourists from far off places. especially in winter. . Overcrowding of popular tourist centres.

Asian Development Bank is preparing a Sub. . Disorganized tourism development. Terrorism is a major setback of the region. Environmental factors also impose a threat.Opportunities • • • • GOI is giving special attention to certain regions like Northeast India. Availability of high quality human resource. Threats • • • • Strong Competition within states of India and abroad. Potential for private sector's investment in tourism projects.Regional Plan for development of tourism in India.

It is expected that the total market for medical tourism will reach US$ 2 Billion by 2012.16%. driving the growth of several associated industries. representing a CAGR of 60.Key Findings • • • India is expected to see an influx of 10 Million international tourists by 2010. medical tourism industry and aviation industry Personal disposable income during 2002-2007 grew at a CAGR of 14. thereby driving domestic as well as outbound tourism • . including hotel industry. Uttar Pradesh. up from just 5 Million in 2007 Andhra Pradesh.69% • • • Indian outbound tourist flow is expected to increase at a CAGR of 13. Tamil Nadu.30% over the five-year period spanning from 2008 to 2012 India’s share in the global tourism is expected to reach 1. Karnataka and Rajasthan are the leading tourism destinations in India in terms of total tourist arrivals India has been promoting its healthcare tourism by providing the visitors with private healthcare facilities.5% by 2010 The growth in India’s tourism market is expected to serve as a boon.

Incredible India Campaign The ‘Incredible India’ Campaign implemented by the Government of India has proved a catalyst in attracting record tourists into India. it has created a unique brand and identity of India in the world travel & tourism space. . Being the first B2C campaign of its kind.

Presented ByPallavi Chaturvedi Namrata Srivastava Nishtha Kavita Abhishek Solanki Ashish Agarwal Manu Pant .

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