RVS COLLEGE OF ARTS AND SCIENCE AUTONOMOUS SULUR, COIMBATORE SCHOOL OF BUSINESS MANAGEMENT I BBM B -2011 BATCH

E-MAGAZINE TOPIC: INDIAN TOURISM GROUP-1

GROUP MEMBERS
Mathan Raja.S Minnu Mol.N.M Mohammed Ashlam.A Mohammed Fasil.K Mohammed Mushin.P.U Muhamed Ashif.C.P Muhamed Shamil.P Muhammed Anas.M

INDIAN TOURISM
INTRODUCTION Tourism is the largest sector in the worldwide exports of goods & services. The tourism industry generates substantial economic benefits to both host countries and tourists home countries. Especially in developing countries, one of the primary motivations for a region to promote itself as a tourism destination is the expected economic improvement. TOURISM IN INDIA India is poised to emerge as the 2nd fastest growing tourism economy in the world over 2005-14 according to the World Travel &Tourism. According to World Tourism Organization estimates, India will lead in South Asia with 8.9 million arrivals by 2020.India is known for its mystical attraction in terms of its rich heritage, diverse culture, religion and scenic beauty, which makes it one of the most desirable tourism destinations across the world.India offers a vast variety in tourism i.e. heritage tourism; religious tourism; adventure tourism; leisure tourism; business tourism; eco-tourism; wildlife tourism,spiritual tourismetc., to cater the diverse interests of the tourists/ visitors.NorthEast States such as Sikkim, Assam and Nagaland have emerged as major players. The major focus in 2009 was to develop tourism infrastructure in the region. New States Uttaranchal attracted 14 million tourists and in 2008 witnessed a growth of 50% in 2011. Its major focus is on marketing to attract high spending tourists, initiatives to create world-class infrastructure.Beautiful South aggressive marketing has helped to achieve over 25% growth in tourism in southern states. 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

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 economy and a key employment generator.    Low Capital Investment in the trade. Imports earn foreign exchange. Cultural revival/ regeneration

ECONOMIC IMPACTS According to the World Tourism Organization,698 million people traveled to a foreign country in 2000, spending more US$ 478 billion. International tourism receipts combined with passenger transport currently total more than US$ 575 billion making tourism the world's number one export earner, ahead of automotive products, chemicals, petroleum and food. NEGATIVE ECONOMIC IMPACTS OF TOURISM Leakage Enclave tourism Infrastructure cost Increase in prices Economic dependence Seasonal character of jobs

POSITIVE ECONOMIC IMPACTS OF TOURISM Foreign exchange earnings Contributions to government revenues Employment generation Infrastructure investment Contribution to local economies

FACTORS AFFECTING TOURISM INDUSTRY IN INDIA Leisure Tourists: Indias low leisure tourist numbers (inbound as well as domestic) could be attributed to:  Inadequate Promotion & Marketing  Poor Infrastructure  Restrictive Policies  Other Obstacles Business Tourists: Indias low business tourist numbers (inbound as well as domestic) could be attributed to:  Inadequate Magnets to attract business groups and facilities for business conventions  Attitude towards potential business investors  Inadequate Promotion & Marketing  Poor Infrastructure  Restrictive Policies Tourism Infrastructure The Government does not have adequate finance for the upkeep of the 3700 protected monuments and 10,000 unprotected monuments. The annual budget of Rs.156 crores amounts to a paltry sum of Rs.7600 per year per monuments. Involve the private sector for upgrading and maintaining the key monuments of tourist interest, 38 have been identified. The Government need not spend money at all on these, e.g. The Indian Hotels Group has adopted the TajMahal,use Government funds to upgrade other protected monuments

Pricing & Taxation It will help if the State and Central taxes are rationalisedtaking into account the fact that wide difference between states create operational problems and high taxation which pushes up the pricing dampens the the growth of tourism. Tourism is price elastic.Tourism earnings could be deemed as Exports to the extent of the Net Foreign exchange earned.Tax Deferment in case of Currency Fluctuation Reserve to the extent of Net Foreign Exchange (NFE) earned can be provided to encourage investment in tourism. Organizational mechanism for development of tourism: Why a professional body - National Association for Tourism Promotion (NATPRO) an apex professional body which can coordinate& promote the interest of the tourism industry.There is a need to co-ordinate the needs and activities of the various trade bodies on the one hand and co-ordinate the actions of various ministries which act independently but impact the tourism business.The option of vesting of all possible powers / responsibilities related to the tourism industry with a single ministry is also not a practical solution, because of the nature of issues involved.

Aims & Objectives of NATPRO  Vision and Strategy: Build a brand of Indian tourism & work towards building & delivering what the brand promises to offer  Maintain close interaction & work actively with the GoI in formulating National Tourism Policy & other related issues  Maintain & disseminate information & statistical database of tourism & hospitality services related activities  Take effective steps to create awareness about the economic & social benefits of tourism  Promote the concept of travel as a leisure activity domestically.

 Encourage members to provide world class quality products & services by laying down industry standards of service, manpower quality & infrastructure.  Actively help in the development of tourism related service infrastructure by assuming the role of certifying/accreditation body for various tourism industry related vocation & training institutions.  Provide an ideal forum for overseas & domestic players to explore the vast potential of Indian tourism through joint ventures, strategic & marketing alliances, joint product development by organising business meets with delegations of various countries.  Provide members with opportunities to participate at major tourism events across the world &organise tourism events in India.

CONCLUSION India is known for its mystical attraction in terms of its rich heritage, diverse culture, religion and scenic beauty, which makes it one of the most desirable tourism destinations across the world.India is second of the fastest growing tourism economy in the world today.Indias tourism destinations such as Kerala, Goa, Rajasthan, Agra etc are already well positioned on the global tourism map. Further Government has identified locations in various states such as Madhya Pradesh, Himachal Pradesh, Gujarat, Maharashtra, Bihar, Karnataka, Andhra Pradesh etc to promote them as tourists hub.