Emerging Indian Economy in 21st Century : Challenges and Opportunities

1. International trade, Government policies and Economic growth

RESEARCH ARTICLE ON
RECESSION AND ITS EFFECTS IN TOURISM
AND HOSPITALITY INDUSTRY
AUTHORS:
T.MILTON,
HOD, Hotel Management ,
Asan Memorial College of Arts & Science,
Jaldampet,
Chennai.600100.
Cell: 09884143887
Email: tmilton1971@gmail.com

Abstract: Tourism is a major global industry. Its influence on economic systems of a country is tremendous. Tourism has influenced a wide
range of variables. Recession is a contraction phase of business cycle. Due to the recession there is a impact of slowdown in the Hospitality
industry .The Indian hospitality and tourism industry has been witnessing difficult times and a slow growth in the recent past. The global
economic slowdown has impacted both business travel as well as pleasure tourist arrivals.. As per the industry estimates, in July2008, foreign
tourist arrivals grew by a 13.8%, but in October 08, the growth rate fell down to 2.8% due to recession. Despite some emerging encouraging
figures, the impact of slowdown on the entire industry cannot be overlooked. Due to the global meltdown and recession, the Indian hospitality
industry experienced a 64 percent fall in profit in the January-March quarter of the year 2009.The negative effects are liquidity crunch, Forex
reserves fluctuations and Project delay in hotels etc. The positive effects are medical tourism and dental tourism have increased .Innovative
ways of handling problems in hotels , New concepts of Management, and Staff are trained for multi skilling are increasing . Hotels coped with
recession Challenges in different ways. Various steps are taken by tourism industry to counter recession challenges but a lot has to be desired in
this aspect. Cutting edge research with clearly defined objectives by academicians and tourism experts should be bestowed to the tourism
industry by addressing recession is the need of the hour. Accordingly this paper attempts to examine the impact of recession and suggest
methods to bail out the industry from the present state of bedlam.

Keywords: Challenges, Effects, Hotels, Recession, Tourism.

1.INTRODUCTION

Tourism is travel for recreational, leisure or business purposes. Tourism is the world’s largest industry with over 10 percent of gross

domestic product globally directed related to tourism activities. 1 There is a phenomenal growth over the centuries. India’s diverse

landscape, culture and festivals have allowed the promotion of tourism through the "Incredible India" campaign. Annually, India

attracts more than 5 million foreign tourists for business and social pleasures. According to the World Travel and Tourism Council,

India's growth rate in tourism is expected to increase, which makes India a very desirable tourist destination. In 2009, India's growth

rate was ranked the highest of all southeast Asian countries, and travel and tourism contributed 6 percent ($67.3 billion) to the gross

domestic product, which was expected to increase to $187.3 billion in 2019. Travel and tourism also contributed over 6 percent of

total employment, which means that as of 2009, about one in every 15 citizens worked in this service industry.

Tourism enhances the economic opportunities and has a wide range of impacts. The growth and development of tourism has both

positive and negative impacts. Tourism industry is a force for positive contributions to the economic and social factors. The benefits

of tourism extend to our cultural environment and daily life because of the diverse nature of its resource base and the intricate way

in which is woven into a community’s regular activities. 2 Tourism enhances the performance of the tourism sector in a

environmentally and culturally sustainable and socially inclusive manner. This is reflected in the increase in the duration of stay,

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distribution of income and benefits from tourism and enhancement of management of natural and cultural heritage sites. India has

the right tourism potential and attractions to captivate all types of tourists whether it is adventurous tour, cultural exploration,

pilgrimages, visit to the beautiful beaches or to the scenic mountain resorts .

The Tourism sector of Indian economy has become one of the major industrial sectors under the Indian economy. This industry is

one of the major foreign exchange earners in India. The tourism sector is linked to many other sectors of the economy, affecting the

growth and employment in those sectors. Tourism helps to generate employment, earns major revenue for government .Indian

tourism industry ranks number third next to gems and garments. Tourist arrivals were highest during the month of December while

lowest numbers or arrivals were recorded in May. But factors like global economic situation, recession, political instability, tourism

facilities, tourist image etc., introduce distorting trend and produce short term variations. 3

RATIONALE OF THE STUDY: Due to the global economic slow down most countries in the world nave undergone major

changes. Moreover recession is still continuing in global economic scenario and economists predict that emerging

economies like India will face a tight situation in the future.

It is in this context present study assumes special importance and relevance. Certain significant issues challenges have

been discussed and highlighted in this paper which may be of immense worth to policy makers, researchers, academician and

entrepreneurs engaged in tourism growth and development.

OBJECTIVES OF THE STUDY: The main objective of the study is to

1. Identify challenges on Indian tourism industry recession .

2. Evaluate ways to overcome such challenges

DATA AND METHODOLOGY: For analyzing the various relevant issues of global economic slow down this study has used relevant

available data have been collected from secondary sources of information only. Research papers published in various journals ,books,

reports, surveys and ideas of tourism experts have largely contributed towards construction of this paper.

2.EMERGING DIMENSIONS IN TOURISM IN INDIA

There was a great increase in tourism activities in the last decade due to globalization, modernization and increase in disposable

income and awareness created by the media have contributed a marvelous growth in the tourist industry. More over due to the

promotional activities carried by various state governments and central governments in the exhibitions and fairs more people are

now visiting tourist places. The movement of people is not only within their own country but also to near and far countries. The

motivation behind travel varies from individual to individual depending on the nature of tourists. 4.The travel motivators are

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physical, cultural ,interpersonal and status and prestige motivators. The following are the various types of tourism carried out by the

tourists .

HEALTH TOURISM:
In India Heath tourism is a one of the much loved type of tourism. Out of the various vacation packages offered by travel

agencies this health tourism is the most sought after package. In the present hectic schedule of work for people and a wide

range of financial woes , increasing diseases, illness of people and city living habits is rigid and exhausting competition of sorts

brings down capability of human beings to cheer up and happy in their life.In this frantic and frenzied lifestyle people acquire either

diseases and illness or mentally stressed a lot. Due to this citizens resort to mainly hospitals to get cured for their illness and get

refreshed. When there is a chance for getting treatment coupled with stress relieving activities which a tourism package offers

people resort to this health tourism package gladly. The concept of health tourism India refers to visit by overseas patients for

medical treatment and relaxation. The opportunities in Indian Healthcare sector in medical infrastructure and technology are just as

good as those in the West. Meditation classes, yoga ashram , stress relieving massages are available in plenty for tourists visiting

India. The diverse landforms , unique culture, various health treatments, ayurvedic medicine, beautiful landscapes offer a vibrant

peace to the health visitors. Kerala, Tamil nadu are the few states which attracts health tourists.

SPIRITUAL TOURISM:
It is a type of tourism offered for religious person who likes to undertake a religious pilgrimage. It is usually a journey or search of

great moral importance. As per the persons beliefs and faith the person travels to pilgrim spot according to the significance of

shrine. Of late spiritual tourism is emerging as a great crowd puller to Indian as it is having a variety of pilgrim spots catering to

almost all religions practiced in the world. In India many religious are professed as the unity of many beliefs, universal truth-finder's

path and a land of intrinsic holiness. Due to this observation innumerable number of foreign tourists visit the country and return

with fond memories and individual sanctification of their weary souls having stepped on the many renowned Indian worship sites

and pilgrimage centers. Bihar, Orissa, Kerala, Tamil nadu and Goa are the states which attracts many a spiritual tourists .

ADVENTURE TOURISM
It is package or recreation, enjoyment education and the trills of participating in an adventure. Traveling to participate in

adventurous feats is a popular form of modern tourism. Mostly young people are attracted to this from tourism because of the

great excitement it offers along with risks involved. In the adventure tourism the recreation has a revitalizing effect because all

adventure activities are outdoor recreational activities with the unpredictability of nature adding thrill and spice to the tour. As

young people want to live life in the fast track this type of tourism fascinates them. Adventure tourism is of many forms like

adventure on land, water and air. It is popular in the Himachal Pradesh, Andaman Nicobar islands, Jammu Kashmir, Uttar Pradesh

and Sikkim.

MICE TOURISM( MEETINGS, INCENTIVES, CONFERENCES, EXHIBITIONS.)

As the technology is condensing the whole world into a small village Businessmen start business not only their countries but also

extend it to various countries. Due to this business tourism is increasing these days. Business tourism involves meetings, conferences

and conventions where various datas and information are exchanged, lavish events are organized to launch new products .

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Incentive travel is offered to several employees of the various companies to motivate them and to reward their work. More and

more fairs and exhibitions are organized to promote corporations. This is popularly called as meetings incentives, conventions and

exhibition/expositions or MICE tourism.

MICE even includes small formal and informal meetings , training courses, seminars, workshop have gained special significance as a

type of tourism through out the world. Many hotels , resorts and countries have developed to cater these type of meetings and are

uniquely devoted to this form of tourism. This type of tourism is increasing in the states which has metropolitan cities like Calcutta,

Delhi, Bangalore, Hyderabad, Mumbai and Chennai.

NATURE TOURISM:

Nature Tourism, often referred to as Ecotourism, was introduced to the tourist industry in the early 1980s. Ecotourism was initially

connected with outdoor travel to remote, unique, and/or scenic areas. Though early Ecotourism involved an educational aspect, this

was not a crucial or required element to the industry or the consumer.

Ecotourism includes an entire methodology of planning, management, and economics. It is a robust and encompassing process that

not only includes site information, but also considers the environment, conservation, education, equitable social benefits, and

community responsibility.

Nature Tourism includes several major principles:

 Education about the area
 Sustainable use of resources, and avoidance of degradation
 Enhancement of local community and assistance in development
 Respect for cultural/social/political aspects of local people

Nature tourism is famous in states like Chattisgarh, Orissa, Arunachal Pradesh, Sikkim and Kerala.

RURAL TOURISM:

Tourists like to travel to new rural destinations to discover and experience the destination in different way..They like to have first hand

knowledge for the local people their cuisine .Across the world the trends of industrialization and development have had an urban centric

approach. Along side, the stresses of urban styles have led to growing interest in the rural areas. Any village is a tourist destination and

most villagers are very hospitable across globe. Farming as an agricultural choice is getting highly mechanized and therefore requires less

labour.

This is causing economic pressure on the village leading to exodus of innocent youth to urban landscape. Rural tourism showcases the

rural life, art, culture and heritage at rural locations, thereby benefiting the local community economically and socially as well as enabling

interaction between the tourists and the locals for a more enriching tourism experience can be termed as rural tourism.

Rural tourism is essentially an activity which takes place in the countryside. It is multi-faceted and may entail farm/agricultural tourism,

cultural tourism, nature tourism, adventure tourism, and eco-tourism

Rural tourism has focus on participating in rural lifestyles. It can be a variant of ecotourism. The emphasis is on having an experience in

rural setting. This type of tourism is prominent in states like Rajasthan, Tamil Nadu, Karnataka, and Andhra Pradesh.

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 3.TOURISM AND INDIAN ECONOMY:

Tourism is multi dimensional concept and implies many things to many people. Those who sell tourism naturally see things

differently. To them it is an industry a source of income.5 The Tourism sector of Indian economy is at present experiencing a huge

growth. The Tourism sector of Indian economy has become one of the major industrial sectors under the Indian economy. The

tourism industry earns foreign exchanges worth 21,828 crore. Previous year the growth rate of the tourism sector of Indian

economy was recorded as 17.3% . The Indian tourism industry growth is due to the rise in the arrival of increasing foreign tourists

and the augment in the number of domestic tourists. Tourists from Africa, Australia, Lain America, Europe, Southeast Asia, etc are

visiting India and their are growing by the thousands every year.

India’s governmental bodies have also made a significant impact in tourism by requiring that each and every state of India have a

corporation to administer support issues related to tourism. A new growth sector is medical tourism. It is currently growing at

around 30% per annum. Medical tourist arrivals are expected to reach one million soon.The tourism industry of India is based on

certain core nationalistic ideals and standards which are: Swaagat or welcome, Sahyog or cooperation, Soochanaa or information,

Sanrachanaa or infrastructure, Suvidha or facilitation, Safaai or cleanliness and Surakshaa or security.

Several reasons are cited for the growth and prosperity of India’s travel and tourism industry. Economic growth has added millions

annually to the ranks of India’s middle class, a group that is driving domestic tourism growth. Disposable income in India has grown

by 10.11% annually from 2001-2006, and much of that is being spent on travel. Tourist arrivals are projected to increase by over 22%

per year through till 2010, with a 33% increase in foreign exchange earnings recorded in 2004.

Indian Tourism offers an assortment of different cultures, traditions, festivals, and places of interest. There are a lot of options for

the tourists. India is a country with rich cultural and traditional diversity. This aspect is even reflected in its tourism. The different

parts of the country offers wide variety of interesting places to visit. While the international tourism is experiencing a decelerated

growth, the Indian counterpart is not affected.

The factors for the growth of the Tourism sector of Indian economy

 Increase in the general income level of the populace

 Aggressive advertisement campaigns on the tourist destinations
 Rapid growth of the Indian economy
The objectives of the National Action Plan for Tourism
 Socio economic development of areas
 Increase in the opportunities for employment
 Development of the domestic tourism for the middle class segment of the society
 Preservation and restoration of the national heritage and environment
 Developing international tourism
 Promotion of tourism based product diversification
 Increasing the Indian share in global tourism
Some of the important tourist destinations in India
NORTH INDIA:
 New Delhi: The capital city of India and has a rich cultural past
 Agra: The city of the Taj Mahal and one of the greatest tourist attractions in India
 Simla: A splendid hill station in the Himalayas
 Dehradun: The capital of Uttaranchal and famous for its fantastic scenery

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EAST INDIA:
 Kolkata: The cultural capital of India, the city of Tagore, and Satyajit Ray
 Guwahati: Important base for tourism in the region
 Shillong: The capital of Meghalaya, and famous for its breathtaking lush green landscapes
 Patna: One of the oldest cities in India and famous for its historical relics
 Jamshedpur: An important industrial township, home of the Tata industries
CENTRAL INDIA:
 Allahabad: The city of the Prayag and the Kumbha Mela
 Varanasi: The holiest city for the Hindus, famous for its temples and ghats
 Bhopal: The capital of Madhya Pradesh and important center of tourism
WEST INDIA:
 Mumbai: The commercial capital of India and the city that never sleeps
 Panjim: The main city in the state of Goa which is famous for its golden beaches and pristine waters
 Udaipur: The city of palaces famous for its Lake Palace in the middle of Lake Pichola

SOUTH INDIA:
 Chennai: The Automobile capital of India
 Bangalore: The Silicon Valley of India, famous for its software companies and a has a beautiful weather
 Trivandum: The city of the famous Kovalam Beach
 Cochin : A coastal city famous for its historical relevance
 Ooty: A fabulous hill station in the Nilgiris famous for its verdure valleys

4 .WHAT IS RECESSION?
Recession is a contraction phase of the business cycle.National Bureau of Economic Research (NBER) the official agency in charge of

declaring that the economy is in a state of recession defines recession as :“Significant decline in economic activity lasting more than a few

months, which is normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales”. Due to the

recession factor the global meltdown has started affecting the tourism industry, there has been a significant drop in the occupancy rates

in hotels . Ultimately, the major hotel chains have slashed room charges by upto thirty per cent.

According to the industry insiders, the collapse of Lehman Brothers last year was a crucial moment for the hotel industry. The impact

has been mixed with the luxury hotels bearing the brunt. Now, the focus has shifted to various minor aspects such as pricing strategies

and value additions. Countries are now linked through trade and investment with each other and the global economic slowdown is likely

to affect every nation. The regulations and control systems in India have still not opened fully to the global perils and are insulated to a

great extent.' This sums up the Indian economic situation better than any analysis. The Indian economics' fundamentals were sound and

there is little doubt that the global recession is going to have an effect on India's hospitality industry. Organisations that want to

effectively take note of the recessionary trends and protect their business will have to take on some hard decisions like 'back to basic' kind

of planning, and ensure that input costs are maintained at levels that would continue to give them the profit margins without sacrificing

the quality of delivery or the products. The hospitality industry should work on training, preventive maintenance, multi-skilling, employee

exposure, cross training and such measures that are non-financial and would enhance guest satisfaction. Staff retrenchment, cost cutting,

travel and advertisement cuts may show savings in the short run but would certainly damage the long term growth of the hospitality

industry.

ECONOMIC SLOWDOWN & RECESSION: The current economic downturn is the biggest challenge the hospitality industry is facing.

Several real estate developers are reconsidering their foray into the hospitality sector, with some players actually shelving their planned

projects. Both for hoteliers and developers, lack of funds is the major concern.

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  Global hotel markets are expected to continue to feel pressure from contracting economies and reduced leisure and business

travel across much of the world. However, despite declines across most major regions of the world in 2008-2009, operating

performance in the global hotel industry remained profitable as hoteliers focused on controlling costs and preserving the

bottom line .

 Low cost carriers and accommodations such as service apartments, smart stay hotels, budget hotels, B&B etc., were the areas

the leaders are playing.

ESCALATING COSTS
 If the recession has a silver lining it is that companies are concentrating on improving efficiencies and reducing costs.

 There is concern that operating expenses will escalate at a greater rate than income, potentially eroding the bottom line.

Following needs to be monitored:

HIGHER INSURANCE COSTS: The costs of claims will translate into higher insurance premiums as well as possible changes in

deductibles and/or coverage limits for  users. For some, the ability to participate in larger pools, such as chain operations, may

soften the blow.

LABOR COSTS AND LABOR SHORTAGES: There are national movements to enact living wage ordinances and some major unions are

determined to tie together the labor contracts of the top U.S. convention cities in an attempt to strengthen their position at the

negotiating table. These potential cost increases come at a time when the industry at large is having difficulty attracting employees.  

The silver lining is that probable higher wages will result in a larger and more competitive labor pool.

BRAND STANDARDS: Many brands are changing brand standards, and “raising the bar” via increased services and/or amenities in an

attempt to gain a competitive edge in the marketplace which has resulted in increases in operating costs for many hotels

ACCELERATING CHANGE AND MERGING OF TECHNOLOGIES

 Hospitality systems and their interfaces are rapidly moving to Internet-based technology, which allows dramatically easier and

more flexible integration and hence more complete guest/operational data.

 Many hotel operators are moving to take full advantage of this opportunity to streamline their operations, but adoption is

frequently hampered by older systems and outdated infrastructure. The investment required to upgrade is significant, but the

full benefits of this change cannot be realized without it.

 Full optimization of the operation requires effective systems integration and adoption of the new technology.

SHORTAGE OF QUALITY WORKFORCE

 One of the greatest challenges plaguing the industry is the unavailability of quality workforce in different skill levels. The

industry has failed to retain good professionals.

 Though there is boom in the service sector, most of the hotel management graduates are joining other sectors like retail and

aviation

RETAINING QUALITY WORKFORCE

 Retention of the workforce through training and development in the hotel industry is a problem and attrition levels are too

high.

 The skilled and trained workforce opt for rewarding prospects like cruises, abroad land jobs.

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 TOURISM & GOVERNMENT POLICIES
 Tourism ministry not equipped with executive powers to bring about sweeping changes in the system

 Absence of an updated master plan for tourism to take into account a changing global scenario

 Tourism considered a state subject, which leads to fragmented and piecemeal approach to address the needs of the sector

 'Industry' status to tourism not granted by all states and tough lending norms by Indian banks .

 Multiplicity of taxes; local governments unaware of the potential

 Archaic laws governing the operations of hotels

 Hotel classification/rating system outdated

LOSSES IN AVIATION SECTOR

 Global aviation currently faces what is probably its most challenging environment ever.

 In India, the decline in demand has been driven by a combination of the slowing economy and higher airfares resulting from

the dramatic increases in fuel prices .

 According to CAPA, following issues are barriers in aviation growth and absence of a civil aviation policy

5. NEGATIVE EFFECTS OF RECESSION.

Liquidity Crunch: Situation where it becomes considerably difficult and expensive to raise funds for banks and business.

 Project delay: The recession seems to have plagued a series of five-star hotel projects in Uttarakhand . Eg.First 5 star hotel

venture stopped in Kumaon region.

 Forex reserves fluctuations: Currency swings will continue falling from record highs.

 Terror threat, The immediate impact has been a spate of cancellations, half empty flights, unemployed guides and low

occupancy at many hotels ,

 Hike in air fares hit the tourism sector hard in 2009 with number of foreigners visiting the country dropping by over 6 per cent

FOREIGN TOURIST ARRIVALS (FTAS) IN INDIA DURING 2008 AND COMPARATIVE FIGURES OF 2006 AND 2007
         
     Foreign Tourist Arrivals (Nos.)   Percentage Change  
Month
2006 2007 @ 2008 @ 2007/2006 2008/2007  
January 459489 532088 584765 15.8% 9.9%  
February 439090 498806 560658 13.6% 12.4%  
March 391009 444186 509926 13.6% 14.8%  
Total 1289588 1475080 1655349 14.4% 12.2%
Source: Indian Tourism Statistics

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Source: Ministry of Tourism ,Government of India for 2009 & 2010.

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The above table reveals the tourists statistics arrivals from other countries which has been steadily increasing from 2005 to 2008.

From 2008 to 2009 there is huge decline in the tourists arrival due to recession. Even though there is a small increase in 2010 but

when compared with the years of 2003 to 2007 it is very less.

6. POSITIVE EFFECTS OF RECESSION

 Medical tourism increased by 30 percent in the number of patients coming to India in the last few months

 Dental tourism as a concept for a planned vacation along with total dental treatment solution and care is fast gaining ground in

India.

 Innovative ways of handling problems

 New concepts of management is getting evolved.

 Staff trained for multi skilling. Staff are trained to work in two different departments in the hotel so as to reduce staff.

 Positive ripple effects. It allows people to analyze and identify their core competencies and helps in rebuilding focus, pruning

tangential activities to achieve cost controls, which help in creating more effective systems and processes in tourism industry.

TOURISM ARRIVAL STARTS REGISTERING POSITIVE GROWTH 36 TOURISM HUBS THROUGHOUT THE COUNTRY IS INITIATED

 Against global perception, international tourist arrival in India registered a growth of more than 16% in November. The

Government of China’s decision to accord "approved destination status" to India to allow Chinese to travel in larger groups to

India has in fact added yet another feather to the potential of pilgrimage tourism in India. Direct flights to Gaya from Colombo

and Bangkok were started to facilitate tourists to visit Buddhist circuits. Japan invited an exhibition of Indian artifacts, which

proved a major attraction at Tokyo.

 Regeneration of Ajanta, resurrection of Red Fort, revamping of cultural legacy of Kurukshetra, Haridwar and Rishikesh,

rediscovery of intellectual and spiritual heritage of Buddhism and Jainism and development of new tourism circuits were the

highlights .

 NEW TOURISM CIRCUITS : Six tourism circuits with great tourism potential identified this year for integrated infrastructure

development in consultation with the State Governments. A new work culture and result oriented style of governance for

speedy implementation adopted for this purpose. A team lead by Tourism and Culture Minister took study tours to the places

along with State governments and other agencies to take decisions on the spot, ensure speedy follow up by cutting out

unproductive channels. Circuits being developed include Buddist Circuits (Bodhgaya, Rajgir, Nalanda and Varanasi), Himalayan

Circuits (Chandigarh, Bilaspur, Kullu-Manalii, Rohtang La and Leh, Shimla, Sangla, Keylong, Sarchu, Yashi), Central Circuits

(Gwalior, Shivpuri, Chanderi, Khajuraho, Jhansi, Sanchi and Kanha Jabalpur), Western Circuits (Bombay, Allibagh, Vijaydurg,

Mithibad, Shiroda, Amboli, Goa, Karnataka and Bekal), Southern Circuits (Cochin, Kumarakom, Kottayam and Trivandrum) and

Eco-Tourism Circuit (Shillong, Guwahati, Kaziranga, Tezpur, Majuli, Sibsagar and Kohima). These circuits within the next 2-3

years will become great attractions for tourists.

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 7.HOW HOTELS COPED WITH RECESSION CHALLENGES

The economic slowdown and the battering tourism has taken have called for some smart house-keeping, and five-star hotel chains in the

country are trying their best to behave like prudent housewives. It is a tightrope walk for them. They have to cut costs without being seen

as reducing customer amenities. Le Grand Meridien, Bangalore had Less number of flowers in restaurants and less number of Bathroom

towels in the guest rooms. The number of writing pad sheets kept in rooms and conference room have less pages. Newspapers delivered

to guest rooms are now ordered only according to occupancy.

At the hotel, pressure reducing valves have been inserted in taps in all public areas and particularly the kitchens -- because stewards and

cooks don't always close the taps "each time they wash a plate." This saves about 30 per cent of the water consumed. Similarly LED lights

in the lobby and public areas save 70 per cent of electricity consumption and auto flush systems in the rest-room save up to 40 per cent

water.

Heating a swimming pool on the other hand, in winter, costs Rs 20,000 each time. So every time you avoid heating it, you make a

substantial saving too.Manpower is being trained in the need to conserve energy and water (taps with sensor even in staff lockers, not

just guest bathrooms) and even food in the staff cafeteria. Provisions was made for the corridor lights for automatic switch on or off,

detecting human presence.

8.GENERAL METHODS FOLLOWED TO HANDLE RECESSION BY HOTELS

 Recycle and reuse is the main mantra.

 News papers ordered as per occupancy of guest rooms.

 Pressure reducing valves for water taps to reduce water usage.

 Auto flush systems in the rest-room save up to 40 per cent water.

 Chillers switch off for at least one hour a day.

 Corridor lights that automatically switch on or off, detecting human presence.

 'Pre-filters' in their swimming pools save 5000 litres in a week.

 Spot lights near pastry counters and computers that usually remain switched on 24x7 in business centres are switched off.

9. WHAT HOSPITALITY INDUSTRY SHOULD DO TO COUNTER RECESSION CHALLENGE?

 Take hard decisions like 'back to basic' kind of planning, ensure input costs are maintained at levels to give them the profits without

sacrificing the quality of delivery & products.

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  More thrust on training, preventive maintenance, multi-skilling, employee exposure, cross training and such measures that are non-

financial and would enhance guest satisfaction.

 Staff retrenchment, cost cutting, and advertisement cuts may show savings in the short run but would certainly damage the long

term growth of the hospitality industry.

 Another opportunity before the hoteliers is to look at options of joint promotions .

10. STEPS TAKEN BY TOURISM INDUSTRY TO COUNTER RECESSION CHALLENGE

 A team lead by Tourism and Culture Minister took study tours to the places to take decisions on the spot, ensure speedy follow up

by cutting out unproductive channels. 6 Circuits being developed, Buddhist, Himalayan, Central, Western, Southern and Eco tourism

circuits.

 Initiative was also taken to develop a world heritage tourism corridor connecting 10 world heritage sites out of the 16 declared by

UNESCO in India .

 Steps taken to contain the unfavourable impact of the global economic crisis include strengthening the market development

assistance to stakeholders, organising familiarisation tours for overseas media and travel trade representatives, offering incentives

to repeat visitors, making available subsidies to the trade and state governments for participation in international travel fairs and

exhibitions, organising the Travel Mart and the Great India Travel Bazaar in Jaipur in association with the state government and all

stakeholders, and promoting 2009 as Visit India Year.   

 As a result of the initiative taken by the Ministry of Tourism, the rules governing external commercial borrowing have been

liberalised for the hotel sector. It is hoped that this measure will promote investment in the hotel sector, alleviating shortages in

hotel accommodation, as well as serving as a demand-boosting measure in a period of recession. A number of supply-side measure

and initiatives are continuing from the past and have received added impetus. These include policies to address gaps in the

availability of high-quality human resources in the sector and alleviating shortages in tourism accommodation.  

 The Ministry of Tourism has launched the “Visit India 2009” Scheme whereby attractive incentives by way of value additions were

offered to foreign tourists visiting the country during the period April to December 2009. The incentives were offered in

collaboration with airlines, hotels and tour operators.

 To counter the contagion of panic in the wake of terrorist attacks, the Ministry is continuously reviewing the status of the travel

advisories issued by major tourist generating countries on a regular basis. The Ministry has also undertaken confidence building

measures to minimize the negative impact on tourism by putting security updates for foreign tourists on its website, and liaising with

Indian Missions, the travel industry and the overseas media.

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 The government of India conducted an All-India Survey of Domestic Tourism during July 2008-June 2009 based on the household

approach. An International Passenger Survey will also be launched very shortly. The data from these two surveys will be used for

preparing the next TSA of the country, besides obtaining information on various aspects of domestic and international tourism for

policy purposes.

 Initiative was also taken to develop a world heritage tourism corridor connecting 10 world heritage sites out of the 16 declared by

UNESCO in India. The tourists would be able to have glimpses of rich Indian heritage passing through the corridor. The scheme to

develop places associated with great sons of India-Mahatma Gandhi, Swami Vivekanand and Philosopher Saint Swami

Shankracharaya was also taken up to introduce younger generation with the values and work of these great figures.

 NEW TOURISM POLICY: The long pending need to replace tourism policy of 1982 was fulfilled. The previous policy was framed in an

environment of a closed economy with licensing procedure. New Tourism policy announced during 2002 attempts to position

tourism as a major engine of economic growth, harness the direct and multiplier effects of tourism for employment generation,

economic development and providing impetus to rural tourism. It also acknowledges the critical role of private sector with

government working as pro-active facilitator and catalyst.

 CREATING INDIA TOURISM BRAND AND NEW MARKETING STRATEGIES As a follow up of new tourism policy, a positioning statement

"incredible India" announced to capture the essence of variety of tourism products. Simultaneously, a new website ‘Tourism of

India’ launched to convey a unique image of Indian tourism to potential consumers. Internet marketing also initiated through

overseas offices to attract more tourists. New sets of tourism literature, CDs and videos produced to target various overseas

markets.

 TOURISM AND CULTURAL HUBS: In order to synthesize elements of tourism and culture the Central Government has decided to set

up at least one hub in each State. These hubs will work as a centre to project art and heritage of the area. Places of tourism interest

and art-cultural heritage will be linked. Documentation centre, handicraft emporiums and other similar facilities with improved

infrastructure will be created at places. These hubs are being created at Mahabalipuram, Arikamedu, Hampi, Fort Cochin, Ajanta,

Bhimbetka and Gwalior Shivpuri Complex, Kumbhalgarh fort and Chittaurgarh Fort, Kurukshetra, Dholavira and Modhera, Rishikesh-

Badrinath-Kedarnath-Gangotri, Udaygiri-Khandigiri and Raghurajpur and Bodh Gaya,. The hubs would act as a pacesetter for the

entire country to develop cultural tourism and would provide an insight into the great heritage of the country in a healthy and

elevating environment.

 Under the scheme, Ajanta Caves have already been given totally new look with improved ambience. All the activities around the

caves have been shifted to a newly created centres, 3 kms away from the caves to ensure siren surroundings while appreciating

Buddhists paintings in the newly installed fibre optical light system. Similarly, Red Fort have been totally chemically washed, gardens

have been laid at the backside with fountains and number of other steps taken to restore the grandeur of the old monument.

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  The Government’s intention for promoting tourism as major engine of economic growth in view of its vast potential was manifested

in the budget allocation also. The budget allocation was increased from Rupees 150 crore to Rupees 225 crore

 The new initiatives taken during the year aims not only at promotion of tourism arrival but also have a larger purpose, too. It is to

project an image of India, which is inspiring and elevating. According to Minister of Tourism and Culture, states that the overall

objective is to ensure that the tourist to India should get physically invigorated, mentally rejuvenated, culturally enriched and

spiritually elevated and on return to his country, he should feel India within him.

 The government’s efforts are more towards creating general awareness of India as a tourist destination in the global market. The

‘Incredible India’ campaign has been well received and the promotional film commissioned by the Experience India Society has won

numerous awards and generated considerable interest in India.

11. SUGGESTIONS AND TECHNIQUES TO OVERCOME RECESSION

The seventh largest country in the world, India has the potential to be among the ten best destinations in the world in terms of tourist arrivals.

Currently we are ranked 42 with 5.2 million foreign tourists.

 Get into the top ten tourism destinations by setting a target of between 3 to 5 years and making strategic investments.

 Can achieve outstanding success by preservation, upkeep of monuments

 Unrestricted movement of tourists from all regions of world to India.

 Offer affordable accommodation with little variation in prices between

Types of accommodation, world class transportation and decent levels of sanitation

 Single lane roads to be converted into double lane or four lane highways is an important need to ensure safety of travelers

 Increase job opportunity in hospitality sectors

 Reduce export duties for tourism products

 Infra structure development for foreign investment

 Introduce more subsidies for tourism projects.

 Promote tourism related small scale and rural industries

 An additional opportunity before the hoteliers is to look at options of joint promotions. Many hoteliers are already operating in

collaboration with airlines, travel agents, etc for packages, not only for tourists but also groups, MICE as well as wedding

promotions. Hotels have also associated with car rentals, travel portals and airline networks. This is expected to help ease the

recessionary cascading effect.

 Hoteliers can join hands with the respective state tourism boards and other private operators to take full advantage of the hitherto

unexploited domestic tourism potential. We must take heart in the fact that international tourists still prefer India. With the baton of

the Commonwealth Games 2010 being passed on to India, and hotels increasing rooms, things will definitely start looking up in a

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 few months. These challenging months in the recession gives us sufficient time to introspect and make changes which will ultimately

benefit the tourists. It is also an opportune time to make a commitment to responsible tourism,

12.CONCLUSION

India needs is integrated planning and development of some selected tourist sites / locations as well as coordinated national policies on aspects

such as taxation. Visa on arrival should gradually be extended to more countries on a reciprocal basis. Eventually, as has happened in most of

the bigger countries in the world, the pressures of domestic tourism create the infrastructure and services network that is then eventually also

used by inbound foreign tourists. Domestic tourism sites, accommodations and other infrastructure need to be strengthened; automatically,

foreign tourists will follow to those destinations.

 Tourists do not consider language to be a major hindrance when visiting countries for leisure and pleasure.

 Opportune time to make a commitment to responsible tourism . It means we will invest sufficient amounts to make rivers free

of pollutants, invest heavily in sewage treatment plants, look at alternative energy sources,

 Take care to ensure our fragile mountain ranges do not suffer from the impact of unrestricted growth. Eg. Ooty.

 keep a strict check in ensuring forest land does not shrink, because of the pressures of local population, avaricious timber

merchants and merciless poachers.

 Increased interest in the Indian markets, improved international access coupled with the modernising of major airports will

definitely boost travel into India.

 Lack of aesthetics, an unbalanced ambience, harassment from touts and those seeking alms, improper disposal of waste and

sanitation, unhygienic conditions and overcharging

 India is expected to receive more than 5.9 Million overseas tourists in the coming years while the figure will exceed 6.3 Million

in 2013

 We need to make best use of this word, 'recession’ and invest quality time, money, and political will in ensuring we get into the

first ten tourism destinations. Once this happens, tourism will 'conquer’ both recession and tourism. This is a realistic

possibility.

REFERENCE BOOKS:

Ramesh Chandra.,2006.Recent trends in World tourism.1st ed., New Delhi:Akansha Publishing house
1.
Sinha .P.C.,1998.Tourism issues and Strategies.1st ed., New Delhi:Anmol Publications Pvt. Ltd
2.
Madhusoodan tripathi, Nishant Singh.,2007. Indian Tourism Industry – A blue print to success .1st ed., New Delhi:Radha
3.
Publications
4. Sunetra Roday, Archana Biwal .,Vandana Joshi.,2009. Tourism Operations and Management .1st ed., New Delhi:Oxford
University Press
5. Arun Kumar Sarkar,Premnath Dhar .,1998. Indian Tourism : Economic Planning and Strategies .1st ed., New Delhi:Kanishka
Publishers
REFERENCE JOURNAL:
6. Sundararaman.S., 2010. Developing tourism amidst economic slowdown and terror attacks. Journal of Hospitality Application
& Research (JOHAR), Department of Hotel Management, BIT- Mesra, Ranchi, Volume V , No.2 ,July 2010, pp.111

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WEBLIOGRAPHY
1.http://www.ehow.com/list_6361370_benefits-tourism-india_.html#ixzz1KjBBlE7n
2. http://business.mapsofindia.com/sectors/tourism.html
3. http://www.slideshare.net/aakankshak1/accounting-rules
4. http://www.travelmartindia.com/Article/Spiritual-Tourism.html
5. http://business.mapsofindia.com/sectors/tourism.html
6. http://naturetourism.allegheny.edu/additionalinformation.html
7. http://www.economywatch.com/business-and-economy/tourism-industry.html
8. http://www.hotelmule.com/management/html/01/n-3901-3.html

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