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  2. 2. 2. Team Highlanders: IIM Kozhikode The Sunrise States of India Famous for…  Kaziranga Wildlife Sanctuary  Manas National Park  Keibul Lamjao National Park  Mawlynnong: Asia’s cleanest Village  Loktak lake: The only floating lake  Mawsynram: The wettest place on earth  Dziikou valley  Tawang: Border town with China  Majuli: largest riverine island in the world  Rumtek Monastery  Nathula pass  Ujjayanta Palace INTERESTING facts  Eastern most states in India  Area: 2,55,168 sq km  Population: 40 million (3.8 % of the total population of the country)  220 ethnic groups and equal number of dialects makes it a hugely diverse region  Religion: Hinduism, Islam, Buddhism, Christianity  220 Languages spoken  Literacy rate: 68.5%, higher than national average of 64.8 % What makes them so IMPORTANT?  North East India, part of Indo-Burma 'hotspot'  Out of the 9 important vegetation types of India, 6 are found in the North Eastern region  Treasure trove to eco-tourists, bio- conservationists, sociologist  Holds a strategic point in connecting India with South east Asian countries  Huge natural resources: oil, natural gas, coal, uranium etc...  Hydro- electric power: potential to generate 70,000 MW  Agriculture & Forestry is the bedrock  Prospects in Horticulture and food processing  Thousands of flora and fauna Arunachal Pradesh | Assam | Manipur | Meghalaya | Mizoram | Nagaland | Sikkim | Tripura Way ahead... What can be done to realize the potential for tourism growth in the region? Always GOOD  The exotic wildlife  Gamut of adventure tourism options  Beautiful hill stations  Cultural melting pot  The delicious cuisines  The colorful festivals  Folk music & dance  Tribal tourism  World famous tea  Religious conglomeration
  3. 3. 3. Team Highlanders: IIM Kozhikode 3 Problems facing north east India Methodology • A survey was floated to gauge the general awareness of people (naming the 8 states, their capitals, their specialties etc.) about north east India and its tourist destinations Responses • A total of 210 responses were recorded • Helped identify major factors that impede development of tourism in North East The Problem Triangle- Identification of major factors Results Hampers tourism Awareness Perception Infrastructure Misconception: Problems of terrorism wide spread in many places in north east India-not a safe tourist destination Inadequate hard and soft infrastructure Less awareness about tourist hot spots Yes 37% No 63% Knowledge of the states of North East Cluster of tourist places people are aware of Cluster of tourist places about which awareness is less Kaziranga National Park Cherrapunji-Mawsynram Tawang Gangtok Shillong Sacred Forests of Mawphlang Hornbill Festival War Cemetery Pobitora National Park Orang National Park Khecheopalri Lake Major Attractions Blind Spots Need to integrate both- Cluster Tourism The region is connected to the rest of India by a narrow stretch called the ‘Chicken’s neck” , needs infrastructure to support and ensure significant investments and development aids 0 50 100 150 200 Visit O/L platform for tour informationInquires about tourist places from agents Noof respondents Media Platform v/s Tour Agents Yes No Need to leverage on Media platforms Concerns about law and order issues, the need for permits and limited infrastructure are the main hindrances
  4. 4. 4. Team Highlanders: IIM Kozhikode Tourism in north east India: an analysis Why tourism ?  Takes into account various stakeholders  Impacts social, cultural, political and economic values  Gateway to South East Asian Countries: international borders with Nepal, Bhutan, Bangladesh,…  United Nation World Tourism Organization (UNWTO) study reveals that tourism: • contributes to 9% of Global GDP, which means tourism can generate enough of opportunity in NE which is self sustainable • plays a big role in generating employment – 1/12th of all jobs can be created directly by tourism • encourage exports – authentic local products can be exported to the rest of India and even to neighbouring countries Strengths Rich in biodiversity Strong heritage and culture Plethora of scenic places within small geographic distance High literacy rate High social capital Opportunities Growth of international tourism due to strategic location Boost for allied sectors-agriculture, handicrafts, etc. Development of medical, educational, spiritual tourism International trade development due to location Weaknesses Lack of infrastructural facilities Lack of business acumen/exposure to best practices Non-availability of skilled manpower for development of allied sectors Negative perception of law and order situation Threats Negative perception may hinder development of tourism Separatist movements Corruption Uncertainty in development of external trade SWOT analysis of tourism scenario in north east India Economic SocialPolitical •Stable political climate •Existence of grass-root level administration •Corruption •Infrastructure bottlenecks •Lack of industries •Entrepreneurially backward •High social capital •Improved law and order •Separatist movements EnvironmentalLegalTechnological •No concrete measures to conserve human capital •Need to develop IT infrastructure and e- platforms •Appropriate legal frameworks •Community based rules and regulations •Strong awareness •Joint forestry management schemes PESTLE Analysis: Tourism in NE India The region has favourable legal and environmental set-up in place for tourism development. The infrastructural bottlenecks need to be addressed, along with active political and social support to enable technological investment for boosting tourism.
  5. 5. 5. Team Highlanders: IIM Kozhikode Tourism as an answer Responsible Tourism  An objective of National Tourism Policy of India: “sustainability should serve as a guiding star”  Tourism has two faces: the ‘good’ and the ‘ugly’  Essential to develop the concept of ‘responsible tourism’, all stakeholders have responsibility to reduce ‘ugly’ side and enhance ‘good’ side  Example: Civil society overlooking conservation efforts, private player managing hospitality and public player leveraging expertise and of each organization and co- ordinate activities of various stakeholders  Modernization and population explosion has impact on environment, 30% of forest area cover is under pressure of rapid land use changes  Gradual deforestation has led to decrease in rainfall by 4.88mm/day in NE region  Conservation is possible when the primary stakeholders are involved and are fully aware of the need for it  To create a sustainable model, a relative interlinked value chain should be developed: conservation & development effort + export potential Holistic development through tourism Tourism has the potential to bring a holistic development of the entire north east region and address some age-old typical issues. Tourism potential  Strategic location, rich biodiversity, heritage and culture make north east India an attractive tourism destination Biodiversity hotspot, wildlife sanctuaries, natural beauty  Education tourism: higher than national average literacy rate, IIT G,NITs,NIFT,regional medical & engineering colleges,schools can help attract students from other states & South Asia  Medical tourism: NEIGHRIMS, GMCH, floating hospital (on the Brahmaputra) can be developed further for quality and affordable healthcare  Spiritual tourism: Vaishnavism (pioneered by Sri Sankardev), syncretic hub (Hajo), presence of monasteries and other religious and tribal places of worship  Historical tourism: Rich history, monuments throughout the region Conservation & development Conservation happens best when primary stakeholder livelihoods are directly linked to it  Rural tourism: More villages similar to Mawlynnong: Asia’s cleanest village, should be developed to encourage cultural as well economic sustainability  Eco tourism: Tourism hubs at undisturbed natural areas should be developed  Volunteer travel: In order to conserve nature travelers must be encouraged to take up volunteering travel where they can involve themselves in charitable acts Parameters to be considered  Economic viability  Local prosperity  Employment quality  Social equality  Local control  Community well-being  Cultural richness  Physical integrity  Biological diversity  Resource efficiency  Environmental purity  Visitor fulfillment
  6. 6. 6 6. Team Highlanders: IIM Kozhikode Tourism as an answer (continued) Common Management Responsible Tourism Tourism bridging the gap Common Management  Objective of National Tourism Policy of India: “to achieve a superior quality of life for India’s people through tourism”  When planning for rural tourism in the NER, various elements (ref: Parameters to be considered, previous slide) should be incorporated  All this start with a Private Public Partnership (PPP) Model as tourism is primarily a private sector driven industry  In NE the following elements should be stressed upon: • Financing new infrastructure projects • Evolving a modern, focused, comprehensive and intensive marketing collaboration • Collaborating in human resource development • Sharing in the development, beautification and maintenance of various tourism products/sites • Participating in the preservation of heritage • Providing leadership in creating awareness about sustainable norms by adopting environmentally-benign practices Public sector Private sector Civil society Financers •Provide investment options to private sector and donors •Drive co-ordination among various stakeholders •Create environment for market driven investment and growth •Adopt commercial initiatives to cater to unique regional needs •Provide commercial and social value, thereby winning trust and confidence •Create and sustain innovation ecosystem •Gatekeeper of transparency and implementation of best practices •Incorporate best practices from companies regarding efficiency and scalability •Leverage funds for greater impact of private sector led initiatives Stakeholder responsibilities Media •Change agent •Creating a favourable perception of north east India
  7. 7. 7. Team Highlanders: IIM Kozhikode Proposed solution # 1: Bridging the gap Problems Development of local industriesTerrorism ConnectivityPerceptionAwareness about tourist places InfrastructureTourism Responsible tourism Common Management Tourism as a solution • Development of tourism in the North Eastern States will help eradicate common misconceptions that people foster about North East • Funds generated will help in the overall development of the region Benefits • Emergence of North East as a region of diverse culture with scenic beauty and an array of untapped potential • Foster growth and development in the region • Help in the improvement of infrastructure- connectivity • Increases awareness about the region Creating awareness Online Changed perception Development of websites, print media, ads Overall development of the region NE as a safe tourist destination rich in flora and fauna Development of infrastructure Boosts tourism 2 – Way Street Model Development of infrastructure boost tourism which in turn infuses funds which can be used for further development Long term growth model Awareness about the region 2 main problem headings addressed Growth and develop ment Ad jingle with catch phrase: “North East India: Explore the unexplored mystique of nature”
  8. 8. 8. Team Highlanders: IIM Kozhikode Proposed solution #2: Developing economic hubs based on agriculture, tourism potential, handloom, crafts and SMEs These hubs will act as ink-spot hubs and help the surrounding areas to develop, thereby improving the market linkages on three scales: • Within north east India • With the rest of India • With international markets Selection of specific hub(eg. Sulakuchi for silk, Darangiri for bananas) Development of soft and hard infrastructure Construction of market to farm/factory roads Strengthening of market information systems Introduction of computerized market yards Development of internationally accepted product grades and standards Strengthening of quality control mechanisms Expansion of rural credit facilities/creation of SHGs Imparting training to local producers/manufacturers on promotion of product and importance of quality standards Yearly festivals in each economic hub as promotional strategy Leverage specialty of each hub to attract tourists Development of economic hub Please refer to Annexure A for exhaustive diagram (Causal Loop Diagram) on how tourism in NE India can help develop other sectors and vice versa Development of economic hub Economic development of region Income generation Development of quality and competitiveness Market mechanism development Increase in total production More employment opportunities
  9. 9. 9. Team Highlanders: IIM Kozhikode Proposed solution #2: Developing economic hubs (continued) Focus crop group^ Arunachal Pradesh Assam Manipur Meghalaya Mizoram Nagaland Sikkim Tripura Pineapple     Citrus     Ginger    Turmeric    Passion fruit  Kiwi fruit  Naga chilli  Large cardamom  Vegetables*   *Potato,cabbage,cauliflower,brinjal,tomato,bitter gourd,okra,bean ^ISAP analysis NE India is heavily dependant on agriculture, as it provides livelihood to more than 70% of the region’s population. Although the region covers 8% of the total area of the country, yet agricultural produce is only 1.5% of total produce in India. Special attention needs to be given to the development of certain crops along with development of economic hubs and tourism, to bring holistic and sustainable growth . These crop groups may be identified on the basis of their economic value, demand in distant markets, post harvest infrastructure, exclusivity to the north east region and inherited advantage. Cash crops like tea, rice (especially ‘joha’ rice) shall continue to be focus of attention alongside the focus crop groups. Other crops like apples, bananas, rubber, orchids, areca nut, coconut and guavas can also grown in a large scale. Creation of focus crop groups and their development for boosting tourism 1. Gangtok (Orchid) 2. Sualkuchi (Silk) 3. Sarthebari (Bell metal) 4. Hajo (Syncretism) 5. Guwahati (Nerve centre) 6. Pabitora (Bird sanctuary) 7. Darangiri (Banana market) 8. Kaziranga (Wildlife sanctuary) 9. Dibrugarh(Tea) 10. Hojai (Fragrance) 11. Kohima (Naga shawl) 12. Dimapur (Export hub) 13. Djukou (Floriculture) 14. Tawang (Adventure sports/monastery) 15. Majuli (Cultural centre) 16. Shillong (Sacred groves/JFM) 17. Cherrapunji (Honey/caves) 18. Moirang (Loktak lake) 19. Aizwal(Development of sports infrastructure) 20 Agartala (Rubber/palaces) 1 2 34 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 5 Proposed economic hubs
  10. 10. 10. Team Highlanders: IIM Kozhikode •Multi-stakeholder planning process •Define shared aspirations •Market driven, govt. the enabler •Designed for scalability •Choose not to do certain things •Realistic and quantifiable objectives •Trade-offs among various value chains •Bankable investment opportunities across chain •Engaging appropriate manpower •Incentives for their motivation •Encourage entrepreneurship •Creation of an innovation ecosystem •Development of roadways, railways, airways, waterways •Provision of power, irrigation facilities, telephony •Development of IT services and human capital •PPP projects, creation of SEZs •Catalytic capital financing mechanisms •Combination of guarantees, grants & commercial money •Insurances and guarantees •Funding commitments •Regulations and control mechanisms •Delivery unit to monitor change •Availability of resources for operational development •Transparency monitoring and real time monitoring •Manage conflicts and controversies Realizing the growth potential of tourism in north east India: Goals and measuring their progress Measuring the goals Goal Indicator Unit Economic opportunity •Development of trade •Growth in SMEs •Growth in agriculture etc. •Increase in state GDP •Population migration from BPL to APL Tourism development •Development of hospitality and allied industries •Increase in inflow of tourists Environmental sustainability •GHG emissions •Water usage efficiency •Soil usage •SPM •Water quality •Use of organic farming practices Economic opportunity Environmental sustainability Tourism development through holistic development of tourism Leadership & prioritization Investment opportunities Infrastructural development Financing Risk management Institutions for delivery Drivers of tourism development •Tanzania’s SAGCOT •Rwanda’s CAADP •CII, FICCI, NEC, DONER initiatives •PPP model by GOI •Ryuthu Bazaar model, Andhra Pradesh •Grameen Danone, Bangladesh •Feeder roads in South Sudan •Brazil’s SENAR •NREGA scheme •Contract farming in Punjab •Reliance’s Farm to Fork model E x a m p l e s o f b e s t p r a c t i c e s
  11. 11. • Difficulty in gaining attention of ‘mainstream’ Indians • Thorough leverage of mass media/ advertisements /online agencies to create awareness of tourism potential of north east India • Changing the negative notion that North East India is unsafe • Issue of Development versus Preservation: the need to maintain sustainability in the face of urbanisation/commercialisation • Regular agitations/strikes/bandhs called by different groups (political/militant/student) • Changing the mentality of the local population to be positive for the cause • Hindrance of crime(abductions/asking ransom amounts/threats) • Varying demands of each stakeholder: Each region has unique stakeholders, hence difficult to agglomerate demands • Complacent government machinery • Region is prone to natural disasters(lanslides/floods/earthquakes): impediment to development of infrastructure and growth of tourism 11. Team Highlanders: IIM Kozhikode Challenges to holistic tourism development Addressing these challenges through active participation of all stakeholders (mutual give and take) and rising above narrow self interests for the cause of the entire north east region is the key to holistic tourism development. The drivers of tourism development should work in sync with one another to realise the true potential of tourism in north east India.
  12. 12. • Korstanje M.E., Clayton A., 2010; “Tourism and terrorism: conflicts and commonalities”; Emerald Group Publishing Limited • Stronza A.L., 2010; “Commons management and ecotourism: ethnographic evidence from the Amazon”; International Journal of the Commons • Small Farmers’ Agribusiness Consortium (SFAC), 2012; “Value chain analysis of select crops in north eastern states” • E&Y-FICCI, 2012; “India Infrastructure Summit 2012” • World Economic Forum-McKinsey & Company, 2012; “Putting the new vision for agriculture into action: a transformation is happening” • Ministry of Tourism, GOI, (2011); “Annual Report 2011-12” • Ministry of Tourism, GOI, (2011); “India tourism statistics” • The Convention on Biological Diversity (CBD), 2010; “A good practice guide sustainable forest management, biodiversity and livelihoods” • KPMG-CII, 2009; “Infrastructure development in agriculture: Route to rural transformation” 12. Team Highlanders: IIM Kozhikode References
  13. 13. 13. Team Highlanders: IIM Kozhikode Annexure A: Causal Loop Diagram (CLD) of tourism development in NE India vis-à-vis other macroeconomic variables
  14. 14. 14.Team Highlanders: IIM Kozhikode Together, we shall overcome. THANK YOU!