Tourism industry in india


Published on

Published in: Travel, Business
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Tourism industry in india

  1. 1. TOURISM INDUSTRY IN INDIA Dissertation project Ameya Waghmare 10020241006SIIB MBA Marketing 2010 – 2012
  2. 2. 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 widereconomic 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.
  3. 3. 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 from37,655,000 jobs (7.5% of total employment) in 2011 to 47,480,000 jobs (8.1%) by 2021.
  4. 4. Visitor ExportsTravel & Tourism visitor exports are expected to generate INR678.6bn (3.8% of total exports) in 2011, growing by 11.4%pa (in nominal terms) to INR1,344.7bn (2.1%) in 2021. InvestmentTravel & Tourism investment is estimated at INR1,233.0bn or 4.7% of total investment in 2011. It should rise by 8.7% pa to reach INR2,827.5bn (or 4.8%) of total investment in 2021.
  9. 9. 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. 10% (on food, beverages, etc.) makes hotel business in India very costly.• Because the political environment is not conducive, Kashmir and North- East have suffered from tourism revenue despite the high potential they possess• Following Godhra riots, Gujarat experienced reduced tourists to the state• After years, government decided to privatize airports and now India can boast of good airports like IGI, Delhi and Rajiv Gandhi International at Hyderabad
  10. 10. 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 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
  12. 12. INDIAN DOMESTIC AIR TRAFFIC Source: Airports Authority of India
  13. 13. SOCIAL• From the late 60s to the early 80s when the Hippy culture was at its height, Goa was a haven for such hippies.• This had a ripple effect on the country.• People became cautious, especially of the international tourists.
  14. 14. 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.• Now places like Leh and Lakshwadeep are mentioned in the same breath as Goa or Kashmir.
  15. 15. LEGALWith respect to taxation, the World Travel and Tourism Council has observed that“Tax paid by tourists in India is the highest in the world. Indian hotels charge about 40% tax compared to other Asian countries where it varies between 3% and 6%".• Further, there is considerable disparity between state level taxes, especially on food and beverages• Sales tax on imported beverages stands at 63% in Karnataka and 28% in West Bengal
  16. 16. 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 National Policy on Tourism lays emphasis on sustainable development of tourism.• The Wild life Protection Act 1972, the Environment (Protection) Act 1986, and Prevention of Cruelty to Animals Act 1986 are being implemented.
  17. 17. TECHNOLOGICAL• Although technology does not seem to be a major influence at first glance, 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, researching about a place, flight and hotel bookings, maps, reviews, designing itinerary is done completely online by visitors before travelling
  19. 19. STRENGTHS• Indias geographical location, a culmination of deserts, forests, mountains, and beaches.• Diversity of culture i.e. a blend of various civilizations and their traditions.• Such diversity helps in selling niche areas of tourism like culture tourism, food tourism, herbal tourism, eco tourism, wildlife tourism and adventure tourism• A wealth of archaeological sites and historical monuments.
  20. 20. UN’S WORLD HERITAGE SITESList of countries with 20 or more World Heritage Sites Country Number of sites Italy 47 Spain 43 China 41 France 37 Germany 36 Mexico 31 India 28 United Kingdom 28 Russia 24 United States 21
  21. 21. WEAKNESSES• Lack of adequate infrastructure. The airlines in India, for example, are inefficient and do not provide basic facilities at airports. The road condition in India is very bad. India has one of the highest fatal road accidents in the world.• A xenophobic attitude among certain sections of people.• No proper marketing of Indias tourism abroad.• There are many places where the image of India is one of poverty, superstition, and diseases.
  22. 22. 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.• Selling niche areas of tourism owing to diversity of all sorts.• Improved conditions of roadways could attract more people
  23. 23. 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, Singapore and Canada in promoting tourism. The Government of Nova Scotia even went ahead with a website for a hoax phone named to promote tourism in Nova Scotia, Canada.
  25. 25. WHAT ENTITY IS BEING SOLD OUT OF THE FOLLOWING IN TOURISM?• Goods• Services• Events• Experiences• Persons• Places• Properties• Organizations• Information• Ideas
  26. 26. • It is not ‘Places’, ‘Properties’ or ‘Ideas’ that are being sold.• 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
  27. 27. ALLOW CORPORATES TO SPONSOR HERITAGE BUILDINGSBaradari palace, Patiala maintained by Neemrana Hotels.Image Credit: Panoramio
  28. 28. CREATE EXPERIENCES, NOT SIGHT- SEEING SPOTSGrand Canyon Skywalk: Creates an experience and not just a sight seeing spotImage Credit: Panoramio
  29. 29. BUILD GREAT ACCESS POINTSHorseshoe bend near Grand Canyon: A special access point was created to encourage more visitorsImage Credit: Panoramio
  30. 30. AGGRESSIVE TOURISM MARKETINGThe phone that was magical! But never existed… For promotion of Nova ScotiaImage Credit: SMDBits
  31. 31. SELL NICHE TOURISMVarious forms of tourism like adventure, wildlife, eco can be promoted in India owing to huge diversity.Image Credit: Pruned Blog
  32. 32. REFERENCES• Lonely Planet• United Nations• World Bank• Airport Authority of India• Ministry of Tourism, India• World Tourism Organization• Travel Industry Association of America• National Geographic Channel• Conde Nast Traveller