PRESENTED TO : SEJAL ACHARYA
PRESENTED BY-DAVE MILN(09)
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE ‘MANAGEMENT RESEARCH PROJECT’ COURSE IN THE
MASTER OF BUSINESS ADMINISTRATION PROGRAMME
Today a stiff competition is seen in the economy, Now, the Present scenario
of the business world is quite different from the past. Ethics, Conflicts, new
ideologies, new ideologies, energy scarcities and crazy dogmas are just. The few of
the characteristics that make the present quite different from the past.
In order to cope up in the ever-changing environment, the knowledge of all
business worlds is a need today. M.B.A. programs and management institution
provide a global manager to this modern business world. But only knowledge is
not enough for the business But successful implementation of the know s the key
Hence in order to get acquainted with the practical knowledge each student
is required to implement the theoretical aspects of the subject in to the practical life
After a lot of brain storming we decided tourism industry as a title of project.
We decided to work on this title.
We referred so many magazines, wed sites, books and newspapers for. The
study purpose. This project will be fruitful for us in the future also. We are
presenting this report, which comprise of secondary data and to out best knowledge
it is true and fair.
It would really difficult for me to complete the project without find co-
Operation of certain people. In other words are so many external who directly help
me in our project.
First of all we are grateful to Pro.Versha Turi who guided us regarding the
project contents and issues related to it. Further we are very grateful to who
provided their valuable guidance to us regarding the project.
We are also very grateful to our friends, who helped us and guided us
Regarding the sources of information related to particular industry.
We are also very grateful to the GOOGLE who guided us regarding the
sources of information.
History of Tourism Industry
Market Segmentation for tourism
Proposed approach and strategy
Planning for tourism development
SWOT Analysis – Gujarat Tourism
Key Success Factors
1. History of Tourism Industry
It is difficult for us to have command on the cyclic movement of fashions,
needs, requirements and the lifestyles. The law of nature, which forces us to
welcome a change, of course, influences the process of change. If we delay, the
seeds of dissatisfaction and monotony get a conductive nexus for their germination
and development. Hence to control or regulate the process, we allow a change
which influences our decision-making behavior and forces us to welcome a change
of place. It was against this background that the travelling was transformed into a
business and of late is an industry. The process of transformation has witnessed
number of ups and downs in almost all the areas. Right from the very beginning of
culture and civilization, we find the process of change continuing, of course as a
pilgrimage. There is no doubt in it that the Roman Empire injected life, strength
and the continuity to travelling and therefore the credibility for the development of
tourism industry ultimately goes to them.
The fall of Roman Empire resulted into downfall of tourism, at least till the
end of Middle East. The available facts reveal that Roman evinced interest in
visiting temples, shrines, festivals and baths for health and amusement. The
contours of Development underwent radical change atleast till the 15th century.
The trade and commerce along with religious activities gained the momentum but
till the beginning of industrial revolution, tourism continued to remain the matter
of pilgrimage. Of Course a number of developments took place between 15l and
18l centuries. Specially In the industrial world which raised the significance of
specialization or expertise for excelling competition. This motivated the elite of the
society to go abroad for enriching the knowledge, speeding up the learning cycle
developing the excellence and making possible cross fertilization of thoughts and
ideas. By the turn of 19lh century,
transportation, communication and, technological sophistication, which energized
the process of industrial transformation. The tourism started developing as a
business and the professional Travel agents started taking part in the process. With
the beginning of the 20lh century the process of invention and innovation stated
gaining momentum which made ways for the development of infrastructural
facilities and further added new dimensions in tourism business. No doubts,
the World War I and World War II obstructed the flow of development but the
second half of the 20th century proved to be golden age, since almost all the
countries of the world started patronizing tourism as an important economic
Thomas cook was of the view that beauty is for the people. The opinion of n
Mr. Cook generated new dimension in the tourism business, which paved copious
avenues for development of tourism as an industry. We can't deny that since the
time immemorial travel has been first choice of masses , the qualitative
improvement in the process could take place with the participation and cooperation of leading global organization , such as WORLD TOURIST
INTERNATIONAL UNION OF OFFICIAL TRAVEL ORGANISATION or so
With the development of a broader concept, the essence of Tourism further
distilled and it was more holistic approach because in the general theory of
tourism, Walter Hunziker and Kurt Kraph (1942) considered it both a human As
well as economic activity. In 1974, Burkat and Medlik again brushed up this
approach since they viewed tourism as a composite phenomenon embracing a
whole range of different relationship between traveler's and the host population.
The fun and excitement, no doubt, gained the momentum with the holistic
approach. This New approach made possible development of traveling business
as an industry. The Policy planners as well as the environmentalists
pinpointed the side effects of manufacturing industries remained the only solution
to strike a balance between ecology and industry. The traveling business that was
transformed into an industry was found efficacious in delivering goods to
the socio-economic molecule and the multiplier effects could be extent. .Almost
all the countries started exploring new devices for generating foreign exchange to
fulfill their multi-dimension socio-economic requirements.
The intensity foreign exchange requirement was found at its peak and the
tourism appeared to all of them an important source to be tapped optimally.
In the face of succulent benefit, the developed, less developed and even the
Developing countries started assigning due weight age to the tourism industry in
their national development agenda. We agree with this view that with tremendous
Socio-economic potential, the tourism industry is considered to be an economic
bonanza which paves avenues for the Development of a number of allied
Industries, such as hotel, communication, banking transportation, trade and
commerce or so. In addition, we also consider tourism a potential source for
making possible world peace through mutual appreciation and international
In the Indian perspective, we find Seventh Five Year Plan as watershed in
the Development of tourism industry. For the first time, the vast potential of
tourism as a foreign exchange earner and generator of employment opportunities
Several policy initiatives were taken to develop the tourism sector In the
development of tourism, the public sector has made a significant contribution. Of
late, the industry is equipped with a reasonable infrastructural base and is poised
for a self-sustained growth. The future growth of tourism is required to be
activated with the support of the private sector. The strategy for the development
of tourism is required to be designed on the basis of low-cost economy, higher
level productivity, efficiency in the use of infrastructure and sophisticated tourist
In the Eighth Five Year Plan(1992-97), the special tourism areas have been
selected and in the Ninth Five Year Plan(( 1997-2002), we took forward the
energizing the process of development but the image problem is found
complicating the task of Professionals. In the business world, we need more
professional excellence to make an assault on the image problem and it is in this
context that we make a strong advocacy in favour of conceptualizing innovative
marketing with help of world class professionals. We have tremendous
opportunities and the professional excellence would make ways for capitalizing on
the same optimally.
2. Market Segmentation for Tourism
The behavioral scientist feels that appeal, strategy and tact vary from
segment to segment in a natural way necessities a change in strategic decisions.
The modern marketing theory prefers the formulation of marketing policies and
strategies for the each market segment which an organization plan to solicit. It is
natural that different segments react in a different way. Segmentation makes
possible tailoring of products and marketing programmes uniquely suitable for
each sub-segment. A market is not only an aggregate demand for a product but the
sum of demands of different market segments. For getting a positive response in
the market, it is pertinent that the marketer's of the tourist professionals are well
aware of the different market segments. It is against this background that we need
to study market segmentation for tourist services.
At the outset, it is essential that the tourist organizations select a suitable
base for segmenting the market. The selection of base has a for reaching impact on
studying the target market. Though there are a number of bases for segmentation,
we find lifestyle an important base since the traveling decisions are fantastically
influenced by the changing lifestyles. The emerging trends in the level of income,
the availability of leisure hour of course influence the process but the main thing is
the lifestyle. This is supported by the logic that if we earn more, we spend more.
We prefer to utilize our leisure time for gaining pleasure or for enriching the
knowledge bank. This necessitates an in-depth study of like style for making
segmentation proactive. The living styles of Americans and Indian can't be
identical, the decision making of both of them are to be different. The American
prefer to travel and therefore they assign due weightage to the traveling decisions
while scheduling or ordering their engagements. The Indians avoid traveling albeit
we find them earning more or sufficient leisure time or holidays in their hands.
This makes it clear that for segmenting market, we find this variable constituting a
place of outstanding significance.
The aforesaid facts make it clear that for getting a positive response, the
segmentation of tourism market needs an intensive care. The tailoring of products
fair synchronization of tourist's
expectations and potentials of the tourist organization would hardly be possible
unless we segment the market in a right fashion. The opinion leaders prompt the
whole drama of marketing where the word-of-mouth promoters play an
incremental role. The process of segmentation simplifies the task of marketers.
Tour operations, the transport operators the travel agents, the tourist guides, e
hotels find it easier to make the marketing decisions. They even with the minor
intelligence and diligence are found successful in identifying the market the
potential tourists. It is right to mention that the needs and requirements well as the
levels of expectations can't be uniform.
The segmentation benefits tourist organization in different ways. An
optimal marketing plan, a balanced development of marketing resources, true
gauging of the level of expectations, formulation of creative strategies for getting
a positive response make it
to segmentation. They are supposed to select a suitable base
for segmentation out of numerous bases like day base, purpose base, demand base,
geographical base, Psychological base, demography base, socioeconomic base, sex
base, age base or so.
These bases help professionals in studying and understanding the changing
behavioral profile of users. The market segmentation bases make it clear that
geographic, demographic, psychographic and socio-economic aspects can't be
underestimated to have clear picture of the tourism users.
Holiday as a Base - Mass Market, Popular Market
Demand as base - Primary, Secondary opportunity
Geography as a base - Cities, Provinces, Regions, Countries
Psychography as a base - Lifestyle, Personality Motive, Product,
Demography as a base - Age, Sex, Occupation, Class, Religion.
Socio-economic of base - Rich, Poor, Rural, Urban, Literate, Illiterate
Purpose as a base - Business Travel, Cultural Tourism, Common Interest
Age as base - Kids, Teens, Youths, Young, Married, Single.
The holiday base focuses or attention on the fact that long-distance tours
require availability of more leisure hours. The holiday market is classified in terms
of demand. The different categories are, the mass market, the popular market and
the individual holiday market. The mass market involves largest number ofvacationists who generally travel in long groups. They prefer all-inclusive tours.
The users belong to the conservative group in which we find skilled and semiskilled workers, blue-collar employees as the potential users. The users are
generally class one and class two groups, pensioners and retired people. The
individual holiday market involves "social group-A7 like corporate chairman and
senior executives. We find an apparent change in the behavioral profile of different
categories in the holiday base. Another base is purpose in which we find business
travel market, cultural tourism market, common interest tourism market and
conference and convention.
The demand base classifies markets into primary tourism market, secondary
tourism and opportunity tourism. The geographic base includes lifestyle,
personality, motives, product and knowledge. The demography base covers age,
sex occupation, class and religion. The socioeconomic base makes classification
like rich, poor, rural, urban, literate and illiterate. The age-base classifies markets
for kids, teens, youths, young married and old people market.
The aforesaid small segments simplify the task of tourist professionals. They know
about the changing needs and requirements of different segments and innovate
their strategic decisions accordingly. The development of marketing resources in
tune with the changing levels of expectations make the ways for the stimulation of
demand and simplify the task or marketers. It is in this context that we need to
segment the market for the different allied industries helping the tourism industry
in many ways.
3. Gujarat Tourism
Hospitality, the foundation on which the structure of tourism is built, is
indigenous to Gujarat. Gujarat sends largest number of travelers to almost every
corner of the world. But its strength to be host has not been fully utilized due to the
lack of information highway. Gujarat offers colorful experience to its travelers
packed with pleasant surprises - endowed with forests and deserts, hills and plains,
sea and lakes, tribal hinterlands and special interest destinations with a strong rail,
road and air network. Gujarat - be the only lion sanctuary of Asia, the only temple
clad summit of Shatrunjaya and the only site of the Indus valley civilization with
an elaborate network of hotels, restaurants, entertainment parks, water resorts, kala
bhandars & many more, has an inherent strength to pull the tourism all over the
world under the umbrella of web based services. Gujarat has made economic
strides on the strength of private enterprise, pragmatic public policies and efficient
administration. While industrial growth is particularly intense in Ahmedabad Vapi corridor, the development is not skewed.
19.2 Infrastructures Position.
1. Installed Electricity Generation Capacity (MW)
2. Electricity Generation (Crore KWH – 1993-94)
3. Roads (km)
* National Highway
* State Highway
* Main district roads
* Other district roads
* Village roads
4. Railway Track (km)
19.3 Transport Connection.
1. Railway Facilities
2. Functional Airport
3. Non-Functional Airport
4. Airlines operating in Gujarat
5. No. of flights landing in Gujarat Over
6. International flights from Ahmedabad
In tourism marketing a destination is being marketed. Once a destination is
shall to a customer or customer group, everyone who is providing the service in
relation to tourism gets benefited. A destination can have a large variation of
products or benefits to offer and a unique combination of features that cannot be
duplicated elsewhere. The question that arises is how is one to attract tourists to
Gujarat – an industrial hub of India – had nothing as glamorous as the Taj Mahal
or the backwaters of Kerala or the beautiful landscapes of Kashmir to talk about.
This was the task faced by TGCL in 1975 i.e. how to develop and promote tourism
in the state and maintain and strengthen the existing tourist infrastructure.
19.5 Major Developments
The foreign tourists are slightly bored with Rajasthan. Gujarat in terms of
culture and craft is rich and varied and offers a unique combination of desert and
sea. The private enterprise is adding to Gujarat's attractions. For example, the high
teach mega religious complex of Swaminarayan (Akshardham) set up in 1990s is a
tourist destination in itself. The area around Ahmedabad and Gandhinagar is
emerging in to a major recreation region of western India with Akshardham,
waterparks, amusement parks, multiplex cinemas, clubs and resorts. Big hotel
chains like the Taj, Oberoi, Holiday Inn, ITC hotels now have a presence in
Gujarat. The civil aviation scene is also experiencing a boom. Over 100 flights
land at 11 Gujarat airports everyday.
A separate Tourism Department was established in 1973 to identify and
develop the tourism potential in the State This was followed by the creation of
Tourism Corporation of Gujarat Limited in 1978, which was entrusted with the
task of undertaking and developing tourism related commercial activities. The
Corporation is presently engaged in a variety of activities such as creation of
loading and boarding facilities for the tourists and other aspects of tourist
facilitation such as transportation, packaged tours, wayside catering along the
National and state Highways, arranging cultural festivals, organizing exhibitions
and producing and distributing maps, posters, brochures and pamphlets. The
Corporation has set up accommodation facilities at Chorwad, Ahmedpur Mandvi,
Porbandar, Veraval, Hajira, Ubharat and Tithal. Similar facilities at pilgrimage
centres like Palitana, Somnath, Dwarkja, Pavagadh and Dakor have also been set
up by the Corporation. One of the recent tourist attractions introduced by the
Corporation in collaboration with the Indian Railways is a special tourist train. The
Royal Orient Train that connects up various tourist destinations straddling the
Gujarat and Rajasthan State. However, the Corporation has suffered losses due
to a number of organizational constraints. In order to minimize these losses and
also to provide better services
to the tourists,
undertaken privatization of some of the commercial property unities of the
In spite of possessing a variety of tourist attractions such as wildlife, scenic
beauty, pilgrimage centres, exotic traditional crafts and festivals, beaches,
hospitality of the region and a varied healthy and tasteful cuisine, the State has not
been able to accelerate the pace of tourism in comparison to other state. In 1991,
the State did declare a tourism policy but it did not elicit adequate response from
the private sector since the policy contained only a handful of benefits while the
implementation was tardy due to legal and administrative constraints. This was at a
time when the Government of India had already declared tourism as an industry
and a large number of states had followed suit. This enabled the tourism industry to
avail of incentives, reliefs, and benefits available to the industry in those states.
While other state Governments made successful offorts in developing
tourism within their states, the relative inability of the Gujarat State to harness and
develop its full tourist potential may be attributed to a combination of factors such
as lack of effective policies, inadequate infrastructure, ineffective marketing and
lack of decent facilities for the tourists.
The main objective of the Gujarat State Tourism is to intensive Development of
tourism in the State and thereby increase employment opportunities. The following
related objectives are dovetailed with main objectives.
Identify and develop tourist destinations and related activities.
Diversification of tourism products in order to attract more tourist Through a
varied consumer choice.
Comprehensive development of pilgrimage centre as tourist Destination.
Create adequate facilities for budget tourists.
Strengthen the existing infrastructure and development new ones where
Creation of tourism infrastructure so as to preserve handicrafts, folk arts and
culture of the state and thereby attract more tourist.
19.7 Proposed Approach and strategy.
The Government should adopt the following strategy towards the private
sector with the objective of securing the active involvement in Leading the
development of tourism in the State.
The tourism should be given the status of industry in order that the facilities
and benefits available to the industry are also made available to tourism
A special incentive package should be made available for encouraging new
tourism projects as well as expansion of existing tourism units.
Infrastructure facilities should be strengthened and developed within the
State, particularly in Special Tourism Areas.
Effective mechanism should be set up to build meaningful coordination with
the Central Government and the State Government agencies, the local selfgovernment bodies and the NGOs.
Government should encourage building effective linkages with the economic
agents and agencies such as the national and international tour operators and
travel agents of repute, hotel chains and global institutions connected with
tourism such as WTO.
19.8 Planning for tourism development
A perspective plan for tourism development will be prepared in consultation
with experts. An overview of possible tourism products is offered below.
Religious (Pilgrimage) and Archaeological Tourism Gujarat has a hold of
pilgrimage centers like some other states. Somnath and Dwarka- some of the wellknown and revered sites of ancient Hindu temples- are situated in the state.
Architecturally brilliant and of significant religious importance are some of the
temples of the state like the ones at Shetrunji, Girnar, Taranga,and Ambaji. Other
temples like those at Dakor Pavagadh, Bahucharaji, Shamlaji, Narayan Sarovar,
Sudamas Porbandar, Kabirvad, Shuklatirth, Kayavaohan, Bhadrakali (Ahmedabad)
and Tankara(Maharshi Dayanand Sraswati's birth place) are also important
pilgrimage destination, which have kept alive the religious sentiments of the
people, Millions of pilgrims visit these places every year.
Not only the devotees from all over the country but also by Non-Resident
Indians and travelers visit these places especially from the eastern part of the
world. Necessary accommodation Facilities and related services will bee created
on these sites. For ensuring orderly and planned development of pilgrimage
centers, the state government has constituted Pavitra Dham Vikas Board chaired by
the Chief Minister. The board will implement plans to provide necessary facilities
to devotees and also ensure conservation of cultural atmosphere consistent with
sentiments of visiting devotees. Shamlaji is an ancient site for Buddhists. The
excavated relies from the Buddhist period at the site are now kept in a museum at
There are a number of places of archaeological importance such as the
temples town of Palitana. Modhera withits Sun temple, historical Rani ki Vav at
Patan with the relief of an ancient capital, the Girnar Hills with Hindu and Jain
temples, Junagadh with a historical fort,Dabhoi, Champaner, Pavagadh, Shaking
Minsrets, Gandhi Ashram, Sidi Sayed Jali etc. These can be developed by
providing necessary infrastructure facilities and marketed tourist destinations to
A large number of old palaces, havelis, darbargadhs exist in the state.These
historical building can be converted into hotels, restaurant or museum by providing
suitable incentives to owners. Wildlife and pilgrimage tourism circuits can be
linked to heritage properties exploiting the geographical congruity. Development
of this sub-sector will not only attract foreign tourists but also provide
encouragement and support to local art and crafts.
The government will take necessary steps to promote heritage tourism in the state.
There is substantial scopes for development of tourism based on wildlife in
the state. The Gir forest of Gujarat is the last stronghold of the Asiatic Lion. The
bear sanctuary at Ratan Mahal(Panchmahal district), Black Buch Sanctuary at
Velavadar (Bhavnagar district),bird sanctuary at Nalsarovar (Ahmedabad district),
wild asa sanctuary at Kutch etc.can be effectively developed into tourist
destinations by providing infrastructure facilities. In order to facilitate visitors to
these areas, coordination among agencies will be established.
Coastal and Beach Tourism
Gujarat state has the longest coastline among the maritime board states of
the country. Identified stretches of coastline can be developed into beaches from
the tourism point of view. It will be the endeavor of the state to develop beach
potential by providing facilities as they attract foreign tourist. Various tourist
destinations easily accessible from the coast will be linked through coastal
Tourism based on Traditional Art, Craft and Cultural Activities.
Banni in Kutch, Khambhat, Junagadh etc. are known for their craftsmanship
.Similarly, there are hundreds of fairs that are celebrated throughout the year with
enthusiasm. The Tarnetar Fair in Surendranagar district, Chitra Vichitra Fair at
Poshina (Sabarakantha district), Kanwat Fair at Chhota Udepur Panchmahal
district), Danf Darbar at Dang, Bhavnath Fair of Junagadh, Vautha Fair of
Ahmedabad etc. have immence tourism value.By developing accommodation,
transport and other facilities, these fairs and festivals will promoted nationally and
internationally. The places of importance from the art and craft point of view will
be included in the tourist circuits and necessary facilities will bee provided to
The private sector will be encouraged to build state-of-the-art Convention
centers, seminar halls etc. so as to attract corporate events like seminars,
workshops and annual general meetings. Participants in such events generally have
high purchasing power and provide boost to the local economy.
This is also a territory with the possibility of development as a , sub-sector,
which will be examined and new activities like camel safari Kutch, horse -riding in
the Aravalli hill ranges, Parachuting in Saputara, trekking in Dang, Pavagadh,
Palitana etc. will be promoted. Such activities will create large- scale Employment
opportunities for guides, collies, traders for hire Of tents and equipments etc. and
will also encourage paying guest accommodation in such areas Private
entrepreneurs and Institutions will be encouraged to develop such facilities.
There is a good network of state and national highways, which Criss-cross
the state and a large number of travelers prefer road journey. Because of the large
geographical expanse of the state, these journeys tend to be quite long and boring.
There is a need for creating necessary facilities like hotels, restaurants, picnic
spots, water parks etc. along the highways at suitable intervals for the highway
travelers to relax. In fact, travelers can be induced to follow certain traffic routes if
such facilities are better developed. Highway facilities and wayside amenities are
so well developed in some states that this has become the mainstay of tourism. The
state shall encourage private investors to create such facilities on the highways.
19.10 SWOT Analysis-Gujarat Tourism
Government support( in term of grants) - both government of Gujarat as well
as government of India sets aside annual grants for the development of
tourism in the state.
Wide network of Services under its fold-includes hotels, tourist Information
Significant internal weaknesses
Low employee morale
Lack of professionalism in the organization.
Bapu culture prevalent
Awareness regarding its products, services as will as its investment
opportunities in this sector has not been highlighted.
Scope for investment in new ventures
Joint ventures with private parties
Cashing in on excellent infrastructure facilities
Competition from other state tourism corporations
Private parties assuming the role played by TCGL at this juncture.
Key success Factors
Improved service quality
Increase in usage of those services
Boosting employee morale