Tourism in India

A service sector growth industry

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 PRESENTED BY

Prashant Mechkar AB 1027

 Premlal Lathanivas AB 1028
 Pritam Bhandare AB 1029
 Parag Janwe AB 1030
 Rahul Barhate AB 1031
 Rahul Shelke AB 1032

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 INTRODUCTION

Tourism is the largest service industry in India, with a

contribution of 6.23% to the national GDP

 8.78% of the total employment in India.

 India witnesses more than 5 million annual foreign tourist

arrivals and 562 million domestic tourism visits.

 The tourism industry in India generated about US$100

billion in 2008 and that is expected to increase to US$275.5
billion by 2018 at a 9.4% annual growth rate.

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Tourism in India need to be understood in the global
context of competing destinations.

It may be thought of as multiple India's with a

multitude of competing destinations Goa, Rajasthan
Kerala, Assam, Kashmir under the India umbrella.

 India's 5000 years of history, its length, breadth and

the variety of geographic features make its tourism
basket large and varied.

It presents heritage and cultural tourism along with

medical, business and sports tourism.

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In the year 2009, 5.11 million foreign tourists visited
India. Majority of foreign tourists come from USA and UK
and Tamil Nadu, Maharashtra, Delhi and Uttar Pradesh
were the top four states to receive inbound tourists.

 Domestic tourism in the same year was massive at 650

million.

 Andhra Pradesh, Uttar Pradesh and Tamil Nadu received

the big share of these visitors.

 Ministry of Tourism is the nodal agency to formulate

national policies and programmes for the development and
promotion of tourism. In

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India’s GDP will exceed
Italy’s in 2020,
France’s in 2020
Germany’s in 2025 and
Japan’s in 2035

Goldman Sachs Projections (US 2003 $ Billion)

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

 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

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Types and forms of tourism

Types of tourism
 according to time period
 short-term (up to 3 days)
long-term (>7 days)

according to way of organization

 organized (by travel agency)
individual (families on

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according to place of destination
 international tourism (prevails on Europe)
 domestic tourism (prevails in large countries – USA,
Canada)

 according to direction of tourist flows

 incoming tourism
 outgoing tourism

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Forms of tourism
Seaside tourism
· recreation by the sea, water sports (swimming, rowing,
sailing, surfing, windsurfing)

Mountain tourism
 mountain hiking, climbing, biking
Sport tourism

 winter sports – skiing, snowboarding, cross-country skiing

 summer sports, extreme sports (rafting, paragliding, sky
diving, etc.) sport events (world championships)

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Cultural tourism
 historical sites, buildings and monuments
 places of historical events, e.g. battles (Waterloo)

Health tourism
 spas, fitness, relaxation, wellness

Rural tourism
ecotourism = besides relaxation people work in farms
rearing animals, participating in farming
processes, i.e. dairying, processing of vines, taking care
of horse etc

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Shopping tourism
· to go for shopping abroad due to lower prices of goods, e.g.
from SK to PL, CZ

Business tourism
· international/national/regional/local conferences, seminars,
business trips, etc.

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An all-year round destination.

 Throughout the world,

India is perceived as a
October to April winter
destination.

 Marketing initiatives by
both the Government
and the private sector
is now successfully
addressing & changing
this perception.

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 New Tourism Products
 Monsoon magic - focus on months from April to October

 Rural & village tourism - the tourism ministry is laying

special emphasis on infrastructure development in
various rural destinations in India.

 Medical tourism - the Indian Healthcare Delivery market

is estimated at US$ 18.7 billion. The industry is growing
at about 13 per cent annually.

 Luxury tourism – e.g. Palace on Wheels, Palaces

 Adventure tourism – with emphasis on eco-tourism

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 Benefits of tourism
 There has been a positive change in perception
about the benefits of tourism in the minds of
planners, policy makers and as well as state
governments in India.

 Tourism is now being seen as an engine of growth for

the economy and a key employment generator.

 Low Capital Investment in the trade.

 Imports earn foreign exchange.

 Cultural revival/ regeneration

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Ecotourism in Kerala

 There has been a major

growth in ecotourism
that is sustainable and
environmentally non-
invasive.
 Resorts are designed
using local labour forces
and local materials.
 Energy sources are
sustainable: cow dung
and wood

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The market for Ecotourism

 Ecotourism tends
to be geared to a
young and
wealthy market.

 Activities are
marketed and life
style emphasised.

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 GOVERNMENT SCHEME
 SCHEME OF FINANCIAL ASSISTANCE TO THE
IHMs/FCIs/IITTM.

 LARGE REVENUE GENERATING PROJECTS

SCHEME.

 APPROVED GUIDELINES FOR FINANCIAL

ASSISTANCE TO STATE GOVERNMENT / UNION
TERRITORY ADMINISTRATIONS FOR ORGANIZING
FAIR AND FESTIVALS AND TOURISM RELATED
EVENTS.

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 CONTI…
 SCHEME FOR PRODUCT/INFRASTRCUTURE
DEVELOPMENT FOR DESTINATIONS AND CIRCUITS.

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 OBJECTIVE OF MINISTY OF
TOURISM
1 Development of tourism infrastructure in the
country including niche products.
2 Promotion and marketing to increase the visibility
of Indian tourism sector.
3 Developing HRD infrastructure in the hospitality
sector to meet the growing demand of quality
human resource.

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 Conti…
4. Develop hotel accommodation of requisite
standards in the country to meet the growing
demand

5. Leveraging the Common Wealth Games for

development and promotion of tourism.

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 Conti…
6. Undertaking surveys, studies and compilation of
statistics in the field of tourism for policy advice
and knowledge sharing with stakeholders.

7. To facilitate quality of services to tourists in the

country.

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