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Tourism and Hospitality Industry

Of India

Kuljeet Singh TEC International College Diploma in Hospitality & Destination Management

Tourism and Hospitality Industry

Table of contents

Sr no. 1. Introduction 2. 3. 4. 5. 6. 7. 8. 9. Tourism in India


Page no. 2 3 4 5-6 7 8 9 10 11

Types of tourism in India Opportunities in tourism Hospitality industry in India Opportunities in hospitality sector Impact of sustainable tourism Conclusion References

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Tourism and Hospitality Industry

What is the meaning of HOSPITALITY? There have been different definitions of Hospitality. It is the act of kindness in welcoming and looking after the basic needs of guests or strangers, mainly in relation to food, drink and accommodation. It is a relationship process between a guest and a host. Hospitality Industry provides these services.It compromises of companies or organizations, which provide food and/or drink and/or accommodation to people who are away from home. Hospitality industry is divided into two parts: Entertainment areas:- it includes clubs and bars, restaurants, fast foods, and nightclubs Accommodation:- Accommodation mainly consists of places like public houses, resorts, inn, hotels, hostels, serviced apartments, and motels. Tourism, on the other hand; is defined as the activities of people from different countries traveling to and staying in places outside their usual environment for a specific period. It can be for leisure, business or other purposes.Tourism industry is a dynamic and competitive industry. It requires to constantly adapting to customers' changing needs and desires, as the customers satisfaction, safety and enjoyment is the motto of tourism businesses.It is also the worlds largest and fastest growing industry. It is the main source of valuable foreign currency in most of the countries. It is also the source of revenue and employment. There are countries in the world whose main source of revenue is tourism. Tourism can be of any type, however the major types are:Heritage tourism Adventure Tourism Eco tourism Medical tourism Here I am going to discuss about tourism and hospitality industry of my country INDIA. India is a country with a great potential for tourism. In addition to its places of ancient historical and archaeological interests, wild life sanctuaries, beach resorts and winter sports attract tourists fromall over the world gets attracted to it. The main aspects and opportunities of these two sectors in India are explained further

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Tourism in India
India is a fascinating country. Itattracts travellers with slogans like Atithi Devo Bhava! It means that in India every guest is considered equal to god and is respected and treated with the same enthusiasm. The Indian Ministry of Tourism has made significant efforts in expanding the tourism industry by maintaining the overall infrastructure of the country. This is the reason why India is included in the top destination for travellers seeking a wonderful destination to spend their holidays. Each year millions of travellers travel to India and becomemesmerized by the image of incredible India and warm-welcome by the locals. The great historical monuments, beautiful temples, charming landscapes, flourishing valleys and vibrant culture of India are worth exploring and touch the soul of every culture enthusiast. India has great ancient Historical, Cultural background and India also has abundant natural wealth which attract worldwide tourists. India is currently ranked 12th in the Asia Pacific region and 68th overall in the list of the world's attractive destinations, according to the Travel and Tourism Competitiveness Report 2011 by the World Economic Forum (WEF).. It is ranked 14th best tourist destination for its natural resources and 24th for its cultural resources, with many world Heritages sites both natural and cultural, rich fauna and strong creative industries in the country.

India also made it to the list of Rising stars or the countries that are likely to become major tourist destinations in the next five year, lead by the united Arab Emirates, china and Vietnam. The Indian travel and tourism industry ranked 5th in the Long-term growth (10 year) and is expected to be the second largest employer in the world by 2019. Travel and Tourism sector accounts for 6.4% of total employment, which is 1 in every 15.6 jobs in 2011. In short, tourism Industry in India has greater potential to generate both employment as well as income in the economic for economic development.

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Tourism and Hospitality Industry

Types of Tourism in India There are several segments within the Tourism in India and some new up-coming tourism segments added recently. The major Kinds of Tourism are as follow:

A) Heritage Tourism: India has a rich cultural historyand reflection of its glorious past is still visible in its numerous places, forts, places of worship of various religions, ancient monuments etc. So, tourism regarding above mentioned kinds known as Heritage tourism. Heritage tourism itself can be further classified as colonial heritage, religious tourism, industrial, heritage, urban renewal and ethnicity. The Indian Government started to preserve the heritage sites from a tourism perspective.

2) Adventure Tourism:Now a days the popularity of adventure tourism has increased. India has varied geographical and climatic conditions offer excellent environment & opportunities for adventure sports. Adventure sports like trekking, snow climbing. Rock climbing, Cuba driving, skins &river rafting can be undertaking in the country and the country offers several location for such tourism, like the trans Himalayan region, Garhwal & Kumaon mountains, western Ghats, desert of Rajasthan, Andaman &LakshadweepIslands etc. Which are most popular destination for adventure tourism.

c) Eco Tourism: - India has abundant Natural wealth. Ecotourism belongs to natural beauty & diversity. It is relatively new segment in India. India with it natural diversity is one of the pristine places in the world for eco-tourism. The Himalayans region, Kashmir valley, Kerala, Andaman and Nicobar Islands and Lakshadweep Islands, wild life in forest and Western as well as Eastern Ghats are some of the hot spots for eco.

d) Medical Tourism:- It is one of the rapid growing segment in India.It is related to health care therapy system. India has been able to leverage on certain advantages it has over other countries like highly skilled doctors, cost effective treatment, improved quality of private health care etc. India provided treatments for which overseas patients are heart surgery, cosmetic surgery, dental care, and knee transplant. Indias traditional rejuvenation therapy like yoga and ayurvedic therapy are also attracting foreigners to the India.

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Opportunities for Tourism in India

According to the Indian Tourism Industry Analysis report India has the most potential for growth in tourism and hospitality market in the world. Indian tourism and hospitality sector has reached new heights today. Travelers are taking new interests in the country, which leads to the up grading of the hospitality sector. Indian hospitality industry has gained a level of acceptance world over. Many tourists prefer Indian hospitality services not for its quality but India being a cheap destination for leisure tourism.With unlimited tourism and untapped business prospects, in the coming years. Indian hospitality industry is seeing green posture of growth. In Indian hospitality sector is expected to grow at the rate of 8% between 2007 and 2017. India is expected to see an influx of 10 million international tourist by 2010, up from just 4.98 million in 2007. According to the World Economic forum the real GDP growth for travel and tourism economy is expected to be 0.2% in 2009 and to an average 7.7% per annum over the coming 10 years.

Export earnings from international visitors and tourism goods are expected to generate 6.0% of total exports. It is estimated that it will grow up fromUS $ 16.9 billion in 2009 to US $ 51.4 billion in 2019.The travel and tourism sector which accounts 6.4% employment to total employment, which is one in every 15.6 jobs in 2009, is expected to generate 7.2% employment (nearly 40 millionjobs) to total employment which will 1 in ever13.8 jobs by 2019. In short, the Indian hospitality and tourism industry ranked 5th in long term growth and expected to be the 2ndlargest employer in the world by 2019.

The main tourism types, which have maximum opportunities,are1. Medical Tourism: The global advancement in medical research and technologies, increased facilities of transportation and demand for immediate quality healthcare have provided the patients worldwide to travel abroad for treatment. Medical tourism can be broadly defined as provision of cost effective private medical care in collaboration with the tourism industry for patients needing surgical and other forms of specialized treatment. This process is being facilitated by both the corporate sector involved in medical care as well as the tourism industry both private and public. India is one of the best places for all types of healthcare treatment. People around the world have started considering India as the Global Health Destination. Indias health care

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industry is already growing at 30 per cent annually. It has become one of the largest foreign exchange revenue earners. It is incredible pace of growth exhibited by the industry, the Confederation of Indian Industry (CII ) has predicted that the industry will grow to earn additional revenue of $2.2 billion by 2012.

2. Rural Tourism: -The Ministry of Tourism started the scheme of rural tourism in 2002-03 with the aim to showcase art, rural life, and culture and heritage to the tourists at various rural locations and villages. The Ministry intends to help the local community economically and socially, together with facilitating interaction between the local population and tourists, through this scheme. As on 28 February 2011, 169 rural tourism sites in 28 States/Union Territories have been sanctioned by the Ministry of Tourism. This segment has also been winning accolades in the international circuits as well.

3. Adventure Tourism:- Adventure travel involves exploration or travel to remote, exotic areas. Adventure tourism is rapidly growing in popularity as a tourist seeks different kinds of vacations. Some of the initiatives taken by the Ministry of Tourism to promote adventure tourism include: Giving special attention for the development of Adventure Tourism in the country, as per the policy for the diversification of tourism product of India. The Ministry of Tourism has also issued Guidelines for Approval of Adventure Tour Operators, which is a voluntary scheme, open to all bona fide adventure tour operators. Formulation of a set of guidelines on Safety and Quality Norms on adventure tourism as basic minimum standards for adventure tourism activities. These guidelines cover Land, Air and Water based activities which include mountaineering, trekking, hand gliding, paragliding, bungee jumping and river rafting. Extension of the Central Financial Assistance to various State Governments/ Union Territory Administrations for development of Tourism Infrastructure in destinations including adventure tourism destinations.

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Hospitality industry in India

Hotels are an important component of the tourism product. They contribute in the overall tourism experience through the standards of facilities and services offered by them.Hotel industry is one of the most important as well as indivisible part of Tourism industry in the world. Hotels are one of the most important support servicesthat affect the Foreign Tourist Arrivals (FTA) to a Country. In India Hotel Travels and Tourism industry is a US $ 32 billion with a Contribution of 5.3% to Indian GDP. 100% Foreign Direct Investment is permitted in Hotel and tourism under the automatic route in India.

In recent year many international hotel chains are setting up hotels in India and many international tour operators are establishing operations from India. Large scale global chain like Marriott International, Intercontinental Hotels Group, Cabana Hotels and the Major players in the industry are, Taj Hotel Group ( Known as Indian hotels Company Ltd.) , The Oberoi, welcome Group of Hotels, Hotel Lella Venture and The Ashoka chains of Hotels owned and operated by the Indian Tourism Development Corporation (ITDC).

There are around 1000 classified hotels and Hotel room availability is 97,000 rooms. Hotels are classified into six categories according to the star rating assigned by the Department of Tourism. About 30% of the rooms fall under the Five Star deluxe categories. Various Hotel Groups and international investors have planned to make a largescale investmentin the hotel industry. In India, investment is likely to torch US $ 11.41 billion within coming two year which would add 65,000 additional rooms in various hotels in India.

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Opportunities for hospitality sector in India

The booming tourism industry has had a cascading effect on the hospitality sector with an increase in the occupancy ratios and average room rates. While occupancy ratio is around 80-85 per cent up nearly 10 percent from three years back, the average increase in room rates over the last one year has hovered around 22-25%. The booming tourism industry has had a cascading effect on the hospitality sector with an increase in the occupancy ratios and average room rates. While occupancy ratio is around 80-85 per cent up nearly 10 percent from three years back, the average increase in room rates over the last one year has hovered around 22-25%. However, the main sectors, which have the highest possible opportunities, are given as follows: Investment in smaller cities Rising business and leisure travel to smaller cities such as Udaipur, Thiruvananthapuram, Bhubaneswar, Pune, Kochi and Chandigarh, have increased demand for quality hotel rooms in these cities. Hospitality chains are expected to increase their presence in smaller cities to leverage this opportunity. Further, they are likely to plan a suitable project mix (more budget/business hotels compared to luxury hotels) for these cities. Acquisitions, strategic alliances and partnerships International hospitality chains are expected to acquire local players to increase their presence in the country. Both domestic and international players are expected to form strategic alliances and partnerships with regional players to expand in the country, reduce risk and optimize resources. Diversification into new segments Many hospitality chains that were earlier focused only on the luxury segment are now diversifying into new product segments, such as budget hotels and serviced apartments, in order to reduce risks. IHCL has already launched budget hotels in India, while Accor has announced plans to introduce its budget hotel brand, Formule 1, in the country.

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Impact of sustainable tourism

(On Indian tourism & hospitality industry) Sustainable tourism is tourism attempting to make as low impact on the environment and local culture as possible, while helping to generate future employment for local people. The aim of sustainable tourism is to ensure that development brings a positive experience for local people, tourism companies and the tourists themselves. Sustainable Tourism /Ecotourism Ministry of Tourism in its initiative to achieve Sustainable Tourism growth is in the process of evolving the Sustainable Tourism Criteria for India. In recent years, tourism industry inIndia has registered a considerable growth.However, uncontrolled and unorganizedgrowth could lead to an irreversible impact onthe ecology and environment of the country.This particular initiative of Ministry of Tourismhas assumed greater significance in such abackdrop. Global Sustainable Tourism Criteria are a set of 37voluntary standards representing the minimumthat any tourism business should aspire toreach in order to protect and sustain the worldsnatural and cultural resources while ensuring thattourism meets its potential for poverty alleviation.The GSTC was developed by Rain Forest Alliance,United Nations Environmental Programme(UNEP), United Nations Foundation (UNF) andthe United Nations World Tourism Organization. A Steering Committee with representatives fromall the sectors of the tourism and hospitalityindustry of India has been constituted to develop draft Sustainable Tourism Criteriathat wouldeventually be adopted by the different sectors ofthe industry. In the first instance, an attempt hasbeen made to develop the Criteria for the hoteland tour operator sector. As a follow-up of these efforts of the Ministryof Tourism a Pledge for Commitment towardsSustainable Tourism was taken by all the stakeholdersof the travel trade and hospitality industry on WorldTourism Day, 27th September, 2010.Recognizing that every earth resource is finite andfragile, I / We further pledge to fully implementsustainable tourism practices, consistent withthe best environment and heritage protectionstandards, such that my/our present tourismresource requirements optimize both localcommunity benefit and future sustainableuses. Once adopted, it would be mandatory for allorganizations in travel trade and hospitalityindustry of India to adopt the SustainableTourism Criteria.

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Tourism and Hospitality Industry

Tourism industry is one of the major segments of our economy, it contribution major part of foreign exchange and generates employment and helps infrastructure development. Government of India has formulated policies to boost the tourism industry. Tourism will expand greatly in future mainly due to the great revolution that are taking place in demand and supply. Thus, the study is a critical issue in tourism industry. In addition, new product development and innovation is essential for survival. Health tourism in India is promoted as high-tech healing destinations, which provides world-class treatment at low cost, incorporating the Indian system of medicine ayurveda, naturpathy, unani, siddha and allopathy (medical terms in India)

The Tourism sector in India is providing an important contribution towards the growth of the countrys economy, with the sector recording double growth in FEEs (Foreign Exchange Earnings) and FTVs (Foreign Tourist Arrivals)in the recent past. Further, the Government measures such as promoting India through Incredible India project is not only providing a holistic experience to the tourists visiting India but is also showcasing the opportunities to the investors in the tourism sector.

The sector is further expected to gain through the development of a comprehensive and coordinated framework, by capitalizing on the existing infrastructure and building upon the strength of Indias position as the fastest growing free market economy.

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Tourism and Hospitality Industry

Literature 1. Bhatia A.K (2010) Tourism in India, sterling publishers Pvt. Ltd., New Delhi. 2. Leos notes, Burst of activity in tourism sector, the Hindu, Friday, december22, 2010,p.18 3. Dharmarajan s. and aviation, s (2009) tourism a close linkage, yojana, vol. 40, no. 8, p. 27. 4. Ecomomic impact, no.29 international communication agency, Washington. D.C; USA, 1989/1, pp.34-37. 5. Harisha, N., jayasheela and basil hans, V.(2008) tourism Industry in Karnataka: An overview , Southern economist , vol. 46, no. 20, pp. 33-36. 6. Revathy, s. (2008) tourism: Indian awakens to incredible opportunities , Southern economist , vol. 45,no. 14,pp. 18-20. 7. Bheemaraj, p. (2008) importance of tourism in Economic development: a micro study ,Southern economist, vol. 46 no. 20, pp. 35-38. 8. K. V. Ravisankar, Tourism: A Social Uplifter, Tourism India, Vol.,11, March, 2011 9. FauziaFarha, The Impact of September 11 Attack on Tourism Industry inIndia, MTA Project Report, submitted to the Department of Commerce,A.M.U. Aligarh, 2009. 10. G. GanapathySubramaniam, Tourism Industry Aims Global Tie- ups to boostBrand India, Times News Network, Chennai, December, 8, 2009. 11. Meier and Baldwin, Economic Development: Theory and Policy. 12. Charles P. Kindleberger and Bruce Herrick, Economic Development. 13. Dudley Seers, The Meaning of Development, 11thWorld Conference of theSociety of International Development. 14. Sustainable tourism II by Ca. A. Brebbia, F. D. Pineda

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