TOURISM INDUSTRY IN INDIA

By

NUMBERS

GDP: Direct Contribution The direct contribution of Travel &Tourism to GDP is expected to be INR1,570.5bn (1.9% of total GDP) in 2011, rising by 8.1% pa to INR3,414.8bn (2.0%) in 2021 (in constant 2011 prices)
GDP: Total Contribution The total contribution of Travel &Tourism to GDP, including its wider economic impacts, is forecast to rise by 8.8% pa from INR3,680.4bn (4.5% of GDP) in 2011 to INR8,523.1bn (4.9%) by 2021.

NUMBERS

Employment: Direct Contribution Travel & Tourism is expected to support directly 24,931,000 jobs (5.0% of total employment) in 2011, rising by 2.0% pa to 30,439,000 jobs (5.2%) by 2021.
Employment: Total Contribution The total contribution of Travel & Tourism to employment, including jobs indirectly supported by the industry, is forecast to rise by 2.3% pa from 37,655,000 jobs (7.5% of total employment) in 2011 to 47,480,000 jobs (8.1%) by 2021.

1%) in 2021.NUMBERS Visitor Exports Travel & Tourism visitor exports are expected to generate INR678. Investment Travel & Tourism investment is estimated at INR1.7% pa to reach INR2.8% of total exports) in 2011. growing by 11.344.7bn (2.6bn (3.4%pa (in nominal terms) to INR1.0bn or 4.8%) of total investment in 2021. .7% of total investment in 2011.233.827. It should rise by 8.5bn (or 4.

DOMESTIC TOURISM .

INTERNATIONAL FOOTFALLS .

WHERE INDIA STANDS GLOBALLY .

KEY TOURISM STATISTICS .

PESTLE ANALYSIS .

POLITICAL • Government is the backbone of the entire tourism industry and should support the private players • Government charges high rates of taxes on the luxury and the star category hotels • A luxury tax of 10% followed by VAT and other service taxes of approx. Gujarat experienced reduced tourists to the state • After years. Delhi and Rajiv Gandhi International at Hyderabad . government decided to privatize airports and now India can boast of good airports like IGI. etc. Kashmir and NorthEast have suffered from tourism revenue despite the high potential they possess • Following Godhra riots. • Because the political environment is not conducive. 10% (on food.) makes hotel business in India very costly. beverages.

International tourists as well as domestic tourists have grown with time India has witnessed an amazing rise in the number of people travelling by air in the last decade Luxury hotels have witnessed a spurt of tourists preferring to stay • • • • .ECONOMIC • Growth in income levels in most developing nations and more idle cash with citizens of developed nations has increased tourism all over the world There have been more people coming into the country with more cash than ever before.

INTERNATIONAL TOURIST ARRIVALS .

INDIAN DOMESTIC AIR TRAFFIC Source: Airports Authority of India .

Goa was a haven for such hippies.SOCIAL • From the late 60's to the early 80's when the Hippy culture was at its height. especially of the international tourists. • People became cautious. • This had a ripple effect on the country. .

• Now places like Leh and Lakshwadeep are mentioned in the same breath as Goa or Kashmir.SOCIAL • However some places such as Kerala and Rajasthan have been able to strike a balance between their own culture and the demands of the international tourists and have profited handsomely in the bargain. . • People themselves have started traveling and are willing to travel to a place that is out of the way and exotic.

Indian hotels charge about 40% tax compared to other Asian countries where it varies between 3% and 6%" . especially on food and beverages • Sales tax on imported beverages stands at 63% in Karnataka and 28% in West Bengal . • Further. the World Travel and Tourism Council has observed that “Tax paid by tourists in India is the highest in the world.LEGAL With respect to taxation. there is considerable disparity between state level taxes.

the Environment (Protection) Act 1986. • The National Policy on Tourism lays emphasis on sustainable development of tourism.LEGAL • Eco-tourism policies and Guidelines have been formulated by the Government in consultation with the industry and are being implemented on a voluntary basis. . • The Wild life Protection Act 1972. and Prevention of Cruelty to Animals Act 1986 are being implemented.

reviews. flight and hotel bookings. it plays a major part in the promotion of a place. • Travel companies have to now focus on Search Engine Optimization (SEO) like never before to improve their visibility. • Reading. maps.TECHNOLOGICAL • Although technology does not seem to be a major influence at first glance. designing itinerary is done completely online by visitors before travelling . researching about a place.

SWOT ANALYSIS .

. forests. mountains.e. a culmination of deserts. eco tourism. a blend of various civilizations and their traditions. herbal tourism. and beaches. • Diversity of culture i. food tourism. wildlife tourism and adventure tourism • A wealth of archaeological sites and historical monuments.STRENGTHS • India's geographical location. • Such diversity helps in selling niche areas of tourism like culture tourism.

UN’S WORLD HERITAGE SITES List of countries with 20 or more World Heritage Sites Country Number of sites 47 43 41 37 36 31 28 28 24 21 Italy Spain China France Germany Mexico India United Kingdom Russia United States .

The road condition in India is very bad. are inefficient and do not provide basic facilities at airports. • No proper marketing of India's tourism abroad. .WEAKNESSES • Lack of adequate infrastructure. India has one of the highest fatal road accidents in the world. and diseases. • A xenophobic attitude among certain sections of people. for example. superstition. The airlines in India. • There are many places where the image of India is one of poverty.

• Improved conditions of roadways could attract more people . • Selling niche areas of tourism owing to diversity of all sorts.OPPORTUNITIES • Allowing entry of more multinational companies into the country giving us a global perspective. • Growth of domestic tourism. The advantage here is that domestic tourism and international tourism can be segregated easily owing to the difference in the period of holidays.

Canada. Singapore and Canada in promoting tourism.THREATS • Political turbulence or civil commotion taking place in neighboring countries that affect the image of entire South Asia • Aggressive strategies adopted by other countries like Australia.pomegranatephone. The Government of Nova Scotia even went ahead with a website for a hoax phone named www. .com to promote tourism in Nova Scotia.

CONCLUSIONS .

WHAT ENTITY IS BEING SOLD OUT OF THE FOLLOWING IN TOURISM? • • • • • • • • • • Goods Services Events Experiences Persons Places Properties Organizations Information Ideas .

• It is not ‘ Places’. • Selling tourism involves selling ‘Experience’! • The success stories from around the world confirm the same • The recommendations (on next slides) could help boost revenue from tourism in India . ‘Properties’ or ‘Ideas’ that are being sold.

ALLOW CORPORATES TO SPONSOR HERITAGE BUILDINGS Baradari palace. Patiala maintained by Neemrana Hotels. Image Credit: Panoramio .

CREATE EXPERIENCES. NOT SIGHTSEEING SPOTS Grand Canyon Skywalk: Creates an experience and not just a sight seeing spot Image Credit: Panoramio .

BUILD GREAT ACCESS POINTS Horseshoe bend near Grand Canyon: A special access point was created to encourage more visitors Image Credit: Panoramio .

AGGRESSIVE TOURISM MARKETING The phone that was magical! But never existed… For promotion of Nova Scotia Image Credit: SMDBits .

wildlife. Image Credit: Pruned Blog .SELL NICHE TOURISM Various forms of tourism like adventure. eco can be promoted in India owing to huge diversity.

India World Tourism Organization Travel Industry Association of America National Geographic Channel Conde Nast Traveller .REFERENCES • • • • • • • • • Lonely Planet United Nations World Bank Airport Authority of India Ministry of Tourism.