10 Tourism development strategy xi plan
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  • 1. 1 Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 1 India tourism Development Strategy XI plan Dr. Nimit Chowdhary Professor Indian Institute of Tourism and Travel Management Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 2 Tourist buys Advice, information, sales knowledge, ease of booking, price, etc. Tourist prepares for visit Visa, internet, information, etc. Promise promoted Image, sounds, language, etc. Tourist travels and arrives Airport,airline, immigration, forex, transfersand transport,etc. Tourist returns Airport,taxes, CRM, regular communication,etc. Tourist experiences Attractions,service levels, shopping, accommodation, food,friendliness, roads, transport,infrastructure, safety,environment, etc. Tourism supply chain Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 3 Tourism system
  • 2. 2 Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 4 X plan performance • Two pronged approached – Upgrading tourism infrastructure – Aggressive marketing under “Incredible India” banner • Four pronged journey – From non-awareness to awareness – From awareness to interest – From interest to desire – From desire to final action (e.g., booking a holiday) Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 5 X plan performance • Growth of 78% in foreign tourist arrival and growth of 122% in FE earnings • Share of India in foreign arrivals was 0.37% in 2001 and was expected to be 0.53% in 2006. • Additional 12.5 million jobs have been created in tourism sector in India during the plan period. Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 6 Targets for XI plan A. International tourism – Visitations To achieve international visitor level of 10 million by 2011 – Source markets Principal source markets to include South Africa, Israel, Spain, China, Japan, South Korea, Australia, Brazil, Argentina, etc.
  • 3. 3 Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 7 Targets for XI plan A. International tourism – Source markets To concentrate on countries with large Indian diasporas- Fiji, Mauritius, SA, Kenya, Malaysia, etc. Target “Baby Boomers” group in Europe and North America • Visiting oldest civilization of the world • Plurality of cultures Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 8 Targets for XI plan A. International tourism – Revenues • To maintain and increase per capita spending of international visitors • To attract higher quality tourists and increasing per head spending • To concentrate on cruise tourism, MICE sector- which are considered higher revenue generating sectors Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 9 Targets for XI plan A. International tourism – Seasonality • To reduce seasonality in international arrival by targeting markets such as Australia, Spain, etc. • Ensure that drop in arrivals during lean season in not more that 15% of annual average – Average length of stay • Ensure that duration of stay is sustained if not extended
  • 4. 4 Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 10 Targets for XI plan A. International tourism – Purpose of visit • To retain focus on Leisure travelers • To promote business related travel, including MICE market by promoting convention centers of international standards in major cities – Expenditure • To increase expenditure on shopping and other non-accommodation, non-transportation heads, to match international benchmark of 30% Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 11 Targets for XI plan B. Domestic tourism – Visitations • To achieve 760 m for domestic tourist visits by 2011 at an annual growth rate of 12% • To complement international travel with domestic travel in order that seasonality is eliminated • To promote greater dispersal of domestic visitations in order to spread the benefits of tourism to all areas Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 12 Targets for XI plan C. Other goals • To increase approved quality accommodation units from current level of 1,00,000 to at least 2,00,000 by 2011. • To setup hotels on surplus lands with AAI near international airports as per the international practices • Promote development of budget hotels at surplus Railway Land at specified Rly. St. • To create land banks in centre and states and encourage single window facility for investors in tourism products
  • 5. 5 Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 13 Strategy for tourism development • Positioning and maintaining tourism development as a national priority activity – Provide effective linkages and close coordination between various Departments and Ministries of Government – Plan and implement a professionally managed integrated communication strategy to increase awareness and about tourism and its social and economic impacts Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 14 Strategy for tourism development • Enhancing and maintaining competitiveness of India as a tourist destination – Take effective steps for easier and faster availability of visas – Increasing air connectivity and seat capacity from major overseas markets – Improving facilities and quality of services at major international and domestic airports Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 15 Strategy for tourism development • Enhancing and maintaining competitiveness of India as a tourist destination – Rationalization of taxes – Removing restrictions like RAP/PAP/ILP
  • 6. 6 Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 16 Strategy for tourism development • Improving India’s existing tourism products further and expanding these to meet new market requirements – Develop sustainable beach, coastal and cruise tourism; – Package and market India’s wide variety of traditional cuisines – Encourage adventure and rural tourism Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 17 Strategy for tourism development • Improving India’s existing tourism products further and expanding these to meet new market requirements – Develop and promote round-the-year tourism – Pursue medical tourism vigorously – Take advantage of MICE segment Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 18 Strategy for tourism development • Creation of world class infrastructure – Identify travel circuits for development as international standard destinations; – Construction and improvement of highways for good connectivity with tourist destinations – Introduction of special tourist trains, establishment of budget hotels on surplus land available with railways and AAI
  • 7. 7 Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 19 Strategy for tourism development • Developing strategies for sustained and effective marketing plans and programmes: – Maintain and develop the Indiatourism brand position established with the “Incredible India” campaign – Continuous market research on major source markets to receive, analyse and respond to information on pricing, security issues, health, safety and quality of tourism Tour GuidingSeries Thursday, May 12, 2011 Dr. NimitChowdhary 20 Strategy for tourism development • Developing strategies for sustained and effective marketing plans and programmes: – Making use of various technological tools, including internet for advertising for greater and wider impact – Further encourage e-commerce portals to extend effective marketing support to small and medium enterprises and also offer competitive packages