A detailed overview of the Indian tourism industry..

1. INCREDIBLE
INDIA
INCREDIBLE INDIA!

2. THE AGENDA
SITUATION
ANALYSIS
SEGMENTS OF
INDIAN TOURISM
IMP STATS
NOTABLE INDUSTRY
TRENDS
2
MARKET OVERVIEW

3. PORTER’S FIVE
FORCES ANALYSIS
KEY GROWTH
DRIVERS
INCREDIBLE INDIA-
AN INCREDIBLE
SUCCESS
GAPS
RECOMMENDATIONS
3

4. 4
03 Economic contributions
04 GOI initiatives
 E-visa scheme to cover almost 150 countries
 The tourist visa on arrival (TVoA) scheme
enabled by electronic travel authorization for
43 countries has led to a sharp growth in
usage of the facility
 Under project ‘Mausam’ the GOI has planned
to revive economic ties with 39 indian ocean
countries
SITUATION ANALYSIS- GROWING INDIAN TOURISM INDUSTRY
01Foreign Tourist Arrivals
• About 22.57 million tourists
arrived in india in 2014,
compared to 19.95 million in
2013 .Currently, india ranks
38th in the world in terms of
foreign tourist arrivals.
02 Investments
• Tourism in India accounts for 6.8 per cent of the
GDP and is the third largest foreign exchange
earner for the country
• The tourism and hospitality sector’s direct
contribution to GDP totalled US$ 44.2 billion in
2015
• The direct contribution of travel and tourism to
GDP is expected to grow 7.2 per cent per
annum to US$ 88.6 billion
• The tourism and hospitality sector is
among the top 15 sectors in India to
attract the highest foreign direct
investment (FDI).
• During the period April 2000-May 2015,
this sector attracted around US$ 8.1 billion
of FDI, according to the data released by
Department of Industrial Policy and
Promotion (DIPP).

5. 5
MARKET
OVERVIEW

6. PRE-1990
• The national tourism policy
was announced in 1982
• The government formulated a
comprehensive plan in 1988
to promote tourism
1990-2000
• Various states in India declared
tourism as an industry
• The government started stressing
on public-private partnership in
the sector
• Government policies give a fillip
to the hotel industry
6
EVOLUTION OF THE INDIAN TOURISM & HOSPITALITY SECTOR

7. 2005 ONWARDS
• GoI undertook various
MARKETING initiatives to attract
tourists
• In April 2008, the ministry of
tourism opened its first tourism
office in Beijing, China
• Domestic spending on tourism
accounted for 81.4% of total
tourism revenues in 2014
2000-05
• A national policy on tourism
was announced in 2002 ,
focusing on developing a
robust infrastructure
• Online travel portals and low
cost carrier airlines gave a
boost to domestic tourism
7

8. SEGMENTS OF TOURISM AND HOSPITALITY
T2
T3
A1 A2
T
AttractionsAccommodation & catering
Transportation
Comprises airline companies, cruise
services, railways, car rentals and more
Travel Agents
A fragmented arrangement with a
number of independent travel agents
and many online businesses. They
also sell associated products such as
insurance, car hire and currency
exchange
Tour operators
Offer customized tours ,
including travel and
accommodation and
sightseeing. For example: Cox
and kings, Expedia etc.
IDEA
Hotels, house boats, resorts, guest houses,
lodging ,cafeterias, restaurants etc. c
Major segment of the tourism and
hospitality market/industry includes
theme parks, natural attractions like

9. EMERGING TOURISM & HOSPITALITY SECTORS
Pilgrimage tourism is one of the
largest contributors and attracts a lot
of tourists. The devotee count for the
vaishno devi yatra stood at 7 million
for the year 2014.
Pilgrimage tourism
Wide range of adventure activities
like river rafting, mountaineering,
bungee jumping are included under
this category. Ladakh is one of the
major hubs for adventure tourism.
Adventure tourism
5.37 million domestic and 0.69 million
foreign tourists visited the Taj mahal in
the year 2014. In 2014-2015, the
monument earned around 22 crore
rupees.
Heritage tourism
The luxury travel market is projected
to reach 14.7 billion dollars in 2015.
and is pegged to grow 25% Y-O-Y..
Luxury tourism
Vast variety of flora and fauna in
various states is the reason behind
the growth of this segment. Thenmala
in kerela is the first planned eco-
tourism destination in india. 2.45 lakh
wildlife lovers compared to 2.1 lakh in
2013-14 visited the Jim Corbett park
this year.
Eco tourism
Medical tourism is expected to grow at
a whopping rate of 30% and projected
to be a 2 billion dollar industry by
2016. 3.2 million medical tourists were
expected in the year 2015
Medical tourism
T
Source: Ministry of tourism, India

10. 31 31
36
40.1 41.1
46.9
88.6
0
10
20
30
40
50
60
70
80
90
100
2010 2011 2012 2013 2014 2015 2025
Direct contribution of tourism and hospitality to GDP (in USD billions)
RISING CONTRIBUTION TO INDIA’S GDP
IMPORTANT STATS
• The direct contribution of travel and tourism to GDP is expected to grow at a CAGR of 7.2% percent from 2015-2025 to 88.6 billion dollars
(2.5% of GDP) in 2025.
• The tourism’s direct contribution to GDP in the year 2015 is around 47 billion dollars.
10
CAGR: 8.7%
Source: IBEF

11. 103 105
116 122.5
136.3
275.2
0
50
100
150
200
250
300
2010 2011 2012 2013 2014 2015
Travel and tourism’s total contribution to GDP
RISING CONTRIBUTION TO INDIA’S GDP (CTD.)
IMPORTANT STATS
• The sector’s total contribution to GDP is expected to increase to USD136.3 billion by the end of 2015 from USD88 billion in 2007 and is
expected to reach USD275.2 billion in 2025E
• It is forecast to increase by 7.3 per cent per annum to USD275.2 billion by 2025 (7.6 per cent of GDP)
11
CAGR: 5.6%
Source: IBEF

12. 5.8 6.3 6.6 7 7.4 7.8
15.3
0
2
4
6
8
10
12
14
16
18
2010 2011 2012 2013 2014 2015 2025
Foreign tourist arrivals in India (In millions)
FOREIGN TOURIST ARRIVALS ARE RISING
IMPORTANT STATS
• Foreign tourist arrivals increased at a CAGR of 7.1 per cent during 2005–15
• By 2025, foreign tourist arrivals are expected to increase to 15.3 million, according to the World Tourism Organisation
12
CAGR: 7.1%
Source: IBEF

13. 14.2
16.6
17.7 18.4
19.7
6.8*
0
5
10
15
20
25
2010 2011 2012 2013 2014 2015
Foreign exchange earnings from tourism in India (USD billions)
FOREIGN EXCHANGE EARNINGS ARE RISING
IMPORTANT STATS
• During January - April 2015, foreign exchange earnings from tourism were USD6.815 billion as compared to USD19.7 billion in 2014,
registering a drop of 65.3 per cent
• Foreign exchange earnings increased at a CAGR of 10.8 per cent during 2006–14
13
* Note: 2015: Jan to apr 2015

14. 14
DOMESTIC CONSUMERS TO LEAD GROWTH
81.40%
18.60%
Share of tourists by expenditure - 2014
Domestic
spending
84.70%
15.30%
Expected share of tourists by expenditure-
2024
Domestic
spending
Foreign
spending
IMPORTANT STATS
• Domestic travel revenues aggregated USD95.17 billion in 2014 and are expected to reach USD156.7 billion by 2024
• Foreign visitor revenues reached USD21.36 billion in 2014 and are projected to total USD28.34 billion by 2024
• The number of domestic tourist visits in India during 2014 was 1282 million as compared to 1145 million in 2013, recording a growth rate of 12 per
cent
• Domestic travellers contributed over 81.4 per cent to total tourism revenues in 2014 Source: IBEF

15. 15
RISING REVENUES FROM LEISURE AND BUSINESS SEGMENTS
83.50%
16.50%
Segment wise revenue share - 2014
Leisure
spending
78.70%
21.30%
Expected segment wise revenue share - 2024
Leisure
spending
Business
spending
IMPORTANT STATS
• Revenues from leisure travel constitute over 83.5 per cent of total tourism revenues in India
• Revenues from leisure travel totalled USD97.20 billion in 2014 and are estimated to reach USD153.72 billion by 2024
• Business travel revenues stood at USD19.34 billion in 2014 and are projected to reach over USD41.4 billion by 2024
Source: IBEF

16. Online travel operators
• Over 70% of the flight tickets being booked
online in the country
Wellness tourism
• The widespread use of Ayurveda, yoga,
siddha and naturopathy that is complimented
by nation’s spirituality image. Kerela is an
example
Cruises
• India attracted about 163,000 visitors in the
year 2014
• 1.2 million cruise visitors expected by 2030-
31
Adventure
• Adventure tourism is one of the most popular
segments of tourism industry. Owing to
India’s enormous geo-physical diversity, it
has progressed well over the years
Camping sites
• Camping sites in places like Rishikesh,
Dharamshala, Shimla and other popular hill
stations are becoming increasingly popular
Spiritual
• India has been known as the seat of
spiritualism and India’s cosmopolitan nature
is best reflected in its pilgrim centers
NOTABLE TRENDS IN THE TOURISM INDUSTRY
TRENDS

17. KEY GROWTH DRIVERS
Source: Make in India, DIPP

18. 66.1
79.7 89.7 85.7 89
100.9
332.4
0
50
100
150
200
250
300
350
2010 2011 2012 2013 2014 2015 2025
Domestic expenditure on tourism (USD Billion)
INCREASING SPENDING ON TOURISM
GROWTH DRIVER-
DEMAND
• Domestic expenditure on tourism has grown significantly; the market is expected to reach USD100.9 billion in 2015 and USD332.4 billion in
2025, representing a CAGR of 7 per cent during 2008–15
18
CAGR: 7.0%
Source: IBEF

19. 19
INCREDIBLE INDIA:
SUCCESS STORY- IN
NUMBERS

20. 20
Capitalist Slides
INCREDIBLE INDIA- AN INCREDIBLE SUCCESS
5.8
6.3
6.6
7
7.4
7.8
15.3
0
2
4
6
8
10
12
14
16
18
Growth in FTAs pre and post incredible india (in millions)
CAGR: 7.1 %
2010 2025 E
• Incredible India is a marketing campaign launched by the
Government of India in 2002 to promote India as a tourist
destination internationally
• In 2012, India Tourism launched two new campaigns: Find What
You Seek, an international campaign; and Go Beyond, a domestic
campaign
• In 2013, the Ministry of Tourism had welcomed the launch of a
campaign ‘777 days of the Indian Himalayas’ as a step to promote
the Himalayan states as well as the gateway cities which are entry
points for domestic and international tourists
• In 2015, Ministry of Tourism has launched new TV advertisement
campaign through which four films have been made on the theme
of ‘Adithi Devo Bhava’ which spreads awareness that conveys on
how to extend hospitality by adopting friendly attitude towards
tourists visiting India
Source: KPMG India tourism report & IBEF

21. 21
Capitalist Slides
INDIA’S BRAND VALUE ON A RISE
1.62
2.16
0
0.5
1
1.5
2
2.5
India’s brand value growth
GR: 32 %
2014 2015
• India's nation brand value has in 2015 increased by a whopping
32 per cent to $2.14 trillion, compared with $1.62 trillion last year,
shows a report by London-based Brand Finance, a leading
independent brand valuation and strategy consultancy
• Not only has India's rate of increase been the highest among the
top 10 by brand value, it has also helped the country improve its
global ranking by a notch to seventh
• Only three Asian nations - China, India and South Korea - figure
among the top 20 most valuable nation brands
• Even as China has maintained its second position, it has lost one
per cent of its value over a year to $6.3 trillion in 2015. South
Korea has improved its ranking to 12th from 17th with a 10 per
cent increase in value to $1.1 trillion
• India's "Incredible India" slogan, used for tourism promotion, has
worked well as "an umbrella brand", with more targeted and
detailed campaigns appealing to the different audiences.
Source: KPMG India tourism report & IBEF

22. 22
Capitalist Slides
EXAMPLES OF INDIVIDUAL STATE’S SUCCESS DUE TO II
2.50%
2.80%
3.50%
5.10%
8.20%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
Contribution of tourism to Gujarat’s GDP
0.8 0.9 1 1
3.7
4.2
4.4
4.2
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Revenue generated from tourism in kerela (USD
Billion)
Foreign exchange
Total revenues
• The government spent nearly USD13 million for the
‘Khusbhoo Gujarat Ki’ campaign, which featured Amitabh
Bachchan
• The campaign led to an increase in the number of visitors
to 5.4 million in the last two years
• Kerala successfully marketed its serene
backwaters, wildlife sanctuaries, ayurvedic
treatments and temple festivals
• Revenue from tourism increased at a CAGR of
over 10.2 per cent during 2005–14
2C10 2015
2010 2014
2022
Source: KPMG India tourism report & IBEF

23. 23
Capitalist Slides
LEADING STATES IN TERMS OF FOREIGN TOURISTS
Source: KPMG INDIA TOURISM REPORT

24. 24
Capitalist Slides
GROWTH IN VISA ON ARRIVAL AND E-TOURIST VISA
6549
12761
16084
20294
39046
126214
0
20000
40000
60000
80000
100000
120000
140000
Growth in visa on arrival
2112
15557
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Growth in E-tourist visa
• In June 2014, the Indian government approved 150 countries
under the Visa on Arrival scheme to attract additional foreign
tourists
• The scheme registered an average growth of Visa on Arrival
80.7 per cent over 2010–15
CAGR: 80.7%
• In June 2015, this scheme was further extended to 31
countries
• A total of 15,557 tourists had arrived on e – tourist visa
during June 2015 as against a total of 2112 tourists during
June 2014 exhibiting an increase of 636.6 per cent
GR: 636.6 %
2C10 2015
June 2014 June 2015
Source: KPMG India tourism report & IBEF

25. 25
DRAWBACKS OF THE INDIAN TOURISM
INDUSTRY
GAPS
• Single window clearance: In Maharashtra itself, a company needs to
acquire 132 licenses to develop a star category hotel. Organising one festival
or entertainment event in India requires a minimum of 30 licenses to be
procured. The absence of a single window clearance to obtain all the
approvals becomes a major obstacle
• Cyber security: The tourism industry is faced with another challenge, cyber
crime. The issue of online security for the travel industry is becoming critical
as some of the biggest frauds have been detected in this segment. Online
Travel Agents (OTAs) are registering an impressive year-on-year growth.
However, a majority are still not convinced about the security of online
transactions
• Infra: The Golden Triangle (Delhi-Agra-Jaipur) is India’s only circuit which is
world famous. Creating circuits will also give a boost to niche tourism
segments and help in prioritising destination development and infrastructure
• Taxation: Travel and tourism in India is a high-taxed industry, which makes
India expensive as a tourist destination. Inbound tourism is the one most
affected. Various taxes are levied across the entire industry right from tour
operators, transporters, airline industry to hotels and these include service
tax, luxury tax, tax on aviation turbine fuel (airline industry). In addition, these
tax rates tend to vary across different states in the country.

26. 26
DRAWBACKS OF THE INDIAN TOURISM
INDUSTRY
GAPS
• Amenities: Amenities available at various tourist locations and en route need
to be improved. These include basic amenities such as drinking water, well
maintained and clean waiting rooms and toilets, first aid and wayside amenities
(to meet the requirement of the tourists travelling to tourist destinations) such
as lounge, cafeteria, and parking facilities, among others
• Security: has been a major problem as well for growth of tourism for a number
of years. Terrorist attacks or political unrest in different parts of the country
have adversely affected sentiments of foreign tourists. Terror attacks at
Mumbai in November 2008 dealt a strong blow to tourism in the country. The
terror attacks raised concerns of safety. In addition, insurgency in different
parts of the country also mars India’s image as a safe destination
• Regulatory issues: For inbound international tourists, visa procedures are
seen as a hindrance. A number of countries competing with India for tourists
provide visa on arrival. India should provide visa on arrival for more countries
or for certain categories of tourists for a specific duration. A number of projects
in the tourism infrastructure segment and in the hotels industry are delayed due
to non-attainment of licenses and approvals on time. The government recently
cleared the long-standing proposal for single window clearance for hotel
projects to hasten the process of infrastructure development

27. 27
RECOMMENDATIONS
RECOMMENDATIONS
• Projection of India’s image as a safe and secure tourist destination: Tourist
Police Task Force has been established by various state governments for ensuring
safety and security for tourists. Special sensitisation campaigns may be
implemented for women tourists and to publicise these campaigns on global
platforms. Health concerns for tourists visiting India also needs to be mitigated
• Seamless travel within circuits: Steps may be taken in order to enhance travel
experience for visitors across states. Payment of road tax, toll etc. while entering
each state may be replaced by an integrated taxation regime. This may further be
augmented by development of an integrated public transport system at a national
level on lines of the Eurail network in Europe
• Joint marketing programs: With tourist circuits spanning across various states,
collaborative marketing efforts may be required for promotion of the same: –
Focused branding and promotional campaigns may be designed – Marketing
material like brochures, print creative, audio video presentations, short films, radio
jingles, creation of web-sites, online creatives, advertisements over media channels
like print, radio or internet etc. may be utilised – Involvement of local travel trade
partners may be encouraged. Trips to involved destinations, informative sessions,
financial support and incentives may be provided

28. 28
RECOMMENDATIONS
RECOMMENDATIONS
• Development of tourism destinations: An extensive market research and
evaluation exercise may be undertaken in order to identify desired tourist destination
attributes and major markets and segments. Identified tourist destinations may then
be developed through flagship projects involving state governments and private
sector players. These may be developed either as ‘products’ such as religious,
wellness, adventure, nature
• Inclusive growth: There is a need to spread education and awareness on the
importance of tourism sector and increase stakeholder participation involving the
government, private sector and the community at large. Marketing campaigns like
‘Atithidevo Bhava’ may be implemented at regular intervals. Tourism awareness
programs and workshops may be organized to enhance sensitisation towards
tourists and tourism destinations and for sustainable development and maintenance
of tourism sites in the country
• Infrastructural development:Investments in tourism infrastructure may include
development of both tourism as well as civic infrastructure. This may also involve
provision of way side amenities, tourist information bureaus and websites for
providing requisite tourist information

29. Thank you!I hope you guys enjoyed it!