India's Tourism Policy & Planning

TOURISM POLICY & PLANNING OF
INDIA
A HISTORICAL VIEW
ANKUR MITTAL
Assistant Professor
Arya P.G College, Panipat
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TOURISM POLICY A DEFINITIONS
Tourism policy can be defined as “ A set of regulations,
rules, guidelines, directives and development/ promotion
objectives and strategies that provide a farmwork within
which the collective and individual decisions directly
affecting tourism development and the daily activities
within the destinations are taken”
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Tourism boosts the economy of a country through employment generation, earning foreign
exchange, creating the infrastructures, and is an instrument of cultural understanding
between tourists and the host population. Tourism is a capital-intensive industry and it
encourages the development of multiple-use infrastructure including hotels, resorts,
restaurants, recreational facilities, shopping facilities and transport infrastructures like
aviation, roads, shipping and railways. Systematic growth, maintenance, marketing, and
sustainable development of tourism destinations is essential in tourism planning. This
requires the allocation of budget to achieve the development that is planned. In Five Year
Plans, targets are set to be achieved in the respective five-year duration. Targets are set for
new and existing projects, schemes, strategies along with budget allocation by the Planning
Commission. The specified time duration of Five Years gives the authorities the direction to
develop, execute and monitor the proposed schemes and strategies for the respective Plan.
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STRATEGIES CONSIDERED UNDER THE FIVE
YEAR PLANS
• Developing tourism infrastructure-hotels, airlines, airports, railways, tourist trains, cruise
• Developing and maintaining tourism attractions, travel circuits
• Human Resource creation and Capacity building of service providers
• Tourism Policy, Planning, Destination Plans
• Marketing-Internal and External
• Research and Development
• Sustainable development
• Community Participation
• Public-Private Partnership in Tourism Development
• Incentives and concessions to tourism service providers
• Leveraging technology
• Coordination between States and different Ministries
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BUDGET ALLOCATION FOR TOURISM
DEVELOPMENT IN INDIA UNDER FIVE YEAR
PLANS
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FIVE YEAR PLANS PLAN PERIOD PLAN ALLOCATION ( IN ₹ )
1ST FIVE YEAR PLAN 1951-1956 00
2ND FIVE YEAR PLAN 1956-1961 336.38 LAKHS
3RD FIVE YEAR PLAN 1961-1966 800 LAKHS
THREE ANNUAL PLAN
(Because of Indo-Pak conflict)
1966-1967 58.50 LAKHS
1967-1968 87.65 LAKHS
1968-1969 183.81 LAKHS
4TH FIVE YEAR PLAN 1969-1974 36 CRORE
ROLLING PLAN DUE TO
POLITICAL DISTURBANCE AT
THE CENTER GOVT.
1978-1980 -------
6TH FIVE YEAR PLAN 1980-1985 187.46 CRORE
ANNUAL PLAN DUE TO
POLITICAL DISTURBANCE
1990-1991 83 CRORE
1991-1992 90 CRORE
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THE 1ST FIVE YEAR PLAN (1951-56)
Tourism was not included separately in the First Five Year Plan (1951-56).
At that time priority areas for development differed a great deal from what
they are today. At that time there was no separate Ministry of Tourism and
tourism was looked after by the Ministry of Transport, under a separate
tourism division formed in 1949. The budget allocation was made to the
Ministry of Transport which included the investments to be made for
tourism as well. The provisions for tourism development in the First Five
Year Plan included the production of publicity material and opening of
tourist offices both in the country and abroad. The notable work related to
tourism during the first plan period was upgrading of tourist traffic branch
of the Ministry of Transport as The Tourist Traffic Division in 1955-56. This
up-gradation consequently helped in opening the India Tourist Offices in
London in July 1955, Paris in February 1956, Melbourne in September
1956, and Colombo in October 1956.
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THE 2ND FIVE YEAR PLAN (1956–1961)
It was from the Second Five Year Plan that the development of tourist facilities was taken up in a
planned manner. The main objective of the development of tourism during the Second Five Year Plan
was the development of infrastructure, to provide accommodation and transport facilities at important
tourist destinations. The Tourism Plan was divided into three parts.
Part I schemes were intended to create tourism facilities like accommodation, transport, and
recreational facilities for international tourists. These were fully financed, managed and controlled by the
central government and were carried out through Central Public Works Department. Several Tourist
Bungalows (Class I) were constructed at different tourist destinations under this scheme. They were
later transferred to India Tourism Development Corporation and renamed ‘Traveler's Lodges’.
Part II schemes included the development of tourist facilities for domestic tourists at places that were
also important for foreign tourists. These schemes were jointly sponsored by the Centre and State
governments and the schemes were carried out through State Public works Department. However, the
schemes were treated as Centrally sponsored schemes. There was the provision of the Tourist Bureau
run by State governments for publicity in regional languages for promoting domestic tourism.
Part III schemes included schemes at places that were mainly of local and regional interest and visited
largely by domestic tourists. These schemes were financed by State Governments and managed by the
State Departments of tourism.
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THE 3RD FIVE YEAR PLAN (1961–1966)
When the 3rd Five Year Plan was launched, the potential of tourism as an instrument of growth and
development had been realized. The tourist infrastructure facilities adopted in the 2nd Five Year Plan
continued in the 3rd Five Year Plan and to the subsequent three Annual Plan periods 1966-67, 1967-68,
and 1968-69.
The number of foreign tourists visiting India had shown an increase that amounted to about six times
over the decade. The Central schemes catered to foreign tourists while the schemes of the states
focused on domestic tourism. This resulted in a network of tourist facilities in areas where they had been
negligible or non-existent. Bodhgaya, Khajuraho, Bhubaneshwar, Konark, Mahabalipuram, Sanchi,
Tiruchirappalli, Kanchipuram, Madurai and several other places were provided with accommodation and
other facilities for foreign tourists.
During this plan period, L K Jha Committee or Ad hoc Committee on Tourism was appointed to promote
and develop tourism facilities. Jha committee (1963) recommended that the public sector should play an
active and positive role in tourism promotion in India. As a result, in 1965, three public sector enterprises
were set up–
 Hotel Corporation of India Ltd.
 India Tourism Transport Undertaking Ltd.
 India Tourism Corporation Ltd.
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ANNUAL PLANS (1966-69)
In the Annual Plans (1966-69), the total outlay was Rs. 6757 crores and Rs. 7 crores
were allocated for tourism. The most important milestone during the annual plan period
was the setting up of the India Tourism Development Corporation (ITDC) in 1966 by
unifying the Hotel Corporation of India, India Tourism Transport Undertaking and India
Tourist Corporation. This was followed by another significant move when the Ministry of
Civil Aviation and Tourism was formed in 1967. ‘Operation Europe’ targeting European
countries was launched in 1968 in partnership with Air India. Again in the same year,
1968, the Department of Tourism (DOT) obtained the service of a tourism expert through
UNESCO to investigate the potentialities of the cultural and monumental heritage of India
for tourism development. The DOT also conducted during 1968-69, a ‘Tourism reaction
pattern and expenditure survey’.
The production of tourist publicity literature for promotion in the overseas markets
became an important part of the Annual Plan period. Measures were considered to assist
the hotel industry with loans for the construction of new hotels and improvement or
expansion of the existing ones. This was considered as the tourist traffic was increasing
and there was not enough supply of hotels.
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THE 4TH FIVE YEAR PLAN (1961–1966)
The 4th year plan recognized tourism as an important means for foreign exchange earnings and employment
generation. FOLLOWING initiatives were taken Which gave a push to the overall tourism development.
Various media were used by the Department of tourism for its publicity program including overseas advertising
and allied publicity besides the productions of tourist publicity literature, films and photographs; hospitality and
public relation And participation in fair and exhibitions. The Success of Operation Europe resulted in a substantial
increase of tourist arrival from Europe in 1969 and subsequent years and this lead a further extension of the
scheme to the UK and USA and Canada in 1971 and to Australia, East Asia and West Asia in 1977.
Provision watch made for giving lawns to hotels in the private sector and to private transport operators to
purchase tourist vehicles to build up a tourist transport fleet of acceptable international standard a hotel
development launch scheme was introduced to assist the hotel industry in the construction of a new hotels at
various tourist centre to provide 5500 rooms.
The schemes of ITDC Indian tourism development corporation Included the expansion of Travelers Bungalows and
their renovations, setting up of transport unit and duty free shops at International Airport in addition to the
construction of hotels, motels and tourist cottage.
Five major ‘integrated projects’ were included in the Plan. These were the Gulmarg Winter Sports Project; Beach
resort development of Kovalam and Goa; Development of Kullu & Manali and a few selected Buddhist centres.
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The tourism development started in the 4th Five Year Plan continued in the 5th Five Year Plan. Also, 15 Youth Hostels started in
the previous plan period and 11 Tourist Bungalows were completed. ITDC scheme continued to provide accommodation,
transport and related facilities to match the anticipated growth of tourism. The disbursement of loans to the private sector for
hotel construction was transferred to Industrial Finance Corporation.
A Central Coordinating Committee was formed for the development of archaeological centres of tourist interest and ten
archaeological complexes were selected for development. The Town and Country Planning Organisation (TCPO) of the Ministry
of Housing & Works was commissioned to prepare master plans of 18 archaeological centres of tourist interest. The National
Institute of Design, Ahmedabad, was assigned with the work of micro-planning of the areas earmarked for the development of
Kushinagar and Sravasti and entrusted with the preparation of detailed drawings and archaeological designs of Fatehpur Sikri
and Braj-Bhoomi Complex.
In 1969 an expert committee was constituted to suggest improvements in the administration of National Parks and Sanctuaries
and advice on the creation of new ones. Kaziranga, Sariska, Gir, Kanha, Bandipur, Mudumalai, Periyar and Tadoba sanctuaries
were selected for development. Forest lodges proposed in the previous Plan were built during this Plan. With the ban on the
shooting of tigers and other protected species, wildlife tourism was thus transformed primarily to a photo safari holiday.
Two studies were commissioned during the 5th Five Year Plan. One was a cost-benefit study of tourism in India by the National
Council of Applied Economic Research (NCAER) to estimate the economic contribution of tourism to the national income, total
employment and tax revenues accruing to the Government while the other study was on alternative passenger transportation
system for the Gulmarg Winter Sports Project which was conducted by the United Nations Development Programmes (UNDP).
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THE 6TH FIVE YEAR PLAN (1980-1985)
The Sixth Five Year Plan (1980-85) was a major landmark in the history of Indian tourism as there were two noteworthy
developments:
 The first-ever ‘Tourism Policy’ of the country was introduced in 1982. The policy specified the development and
promotion objectives and goals of tourism development in the country. This you have learned in the previous Unit.
 ‘Travel Circuit’ concept was introduced to maximize the benefits of tourism.
Travel Circuits
Travel Circuits were defined as ‘predetermined routes along which the flow of tourist traffic could be channelized’.
Two or three travel circuits were identified in each state and union territory in consultation with the respective governments for
integrated development. 61 travel circuits comprising 440 tourist centres were identified for the promotion of international and
domestic tourism. The tourism development was planned on the concept of developing tourist centres falling along the selected
travel routes or circuits.
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The vast potential of tourism in the country was recognized in the 7thFive Year Plan. The National Development
Council approved the proposal and recommended that tourism should be accorded the status of an industry. This
meant that tourism-related business activities would be eligible for the same incentives and concessions as were
available to other export industries. Subsequently, 15 states and 3 UTs declared tourism as an industry and 4 states
declared hotel as an industry. Emphasis was laid on encouraging private sector investments in developing tourism
and leaving the development of support infrastructure to the public sector investments.
The main thrust in the plan was on strongly promoting domestic tourism and moving towards diversification of
overseas tourism to India. Greater emphasis was laid on budget accommodation, leisure holiday tourism, winter
and water-skiing, adventure sports and on the strengthening of infrastructure at beach and mountain resorts and
centres of cultural interest.
A major milestone of the 6th Five Year Plan was the setting up of the National Committee on Tourism in 1986 to
formulate a long-term perspective plan for the tourism sector on an integrated basis. Some of the major
recommendations of this Commission are:
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 Encouraging private sector participation in the development of tourism industry.
 Develop selected tourist circuits and develop non-traditional areas such as trekking, winter sports,
wild-life tourism, beach resort tourism, etc., and explore new tourist generating markets.
 A Tourism Finance Corporation should be set up for providing loans to the tourism industry.
 The tourist offices abroad should be over-hauled and the tourism information service should be
updated and modernized.
 Setting up of the National Tourism Board and redefining the role of ITDC.
 A specialized management cadre for tourism to be called the India Tourism Service should be
constituted.
 The Indian Institute of Tourism & Travel Management (IITTM) established in 1983 should be
effectively developed as an apex body in travel trade education development.
 The natural and man-made resources for tourism and recreation should be preserved and
assessment of carrying capacity of areas should be carried out where tourism is sought to be
promoted.
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In the 8th Five Year Plan, the thrust was on the involvement of the private sector for the development and
expansion of tourism infrastructure. For encouraging the involvement of private sector, better incentives
were extended. The strategy for development during the 8th Five Year Plan was based on the principle of a
low-cost economy, higher productivity and efficient use of infrastructure. A National Action Plan for
Tourism was announced in May 1992. The objectives of this action plan include preservation of national
heritage and environment; increasing employment opportunities; socio-economic development;
diversification of the tourism products etc. These, we have already outlined in the previous Unit.
Development of the Buddhist Circuit in the states of Uttar Pradesh and Bihar and the Ajanta-Ellora region
was taken up with the assistance of the Overseas Economic Co-operation Fund (OECF) of Japan. In
addition to the construction of tourist complexes at many places, improving service efficiency in public
sector corporations; and streamlining of facilitation procedures at the airport were undertaken.
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The policy objective in the Ninth Plan was to work towards creating a tourism product that provides tourists
a pleasant experience through an environment of peace, stability, security and an integrated system of
physical infrastructure. The development of selected centres and circuits was through effective coordination
of public and private sectors. The Ministry of Tourism identified 21 circuits and 12 destinations for
development. Financial assistance was provided to state/U.T. Governments for developing tourist
infrastructure at these places. The focus was on the development of basic infrastructures such as transport
facilities and civic amenities and provision of accommodation and other facilities for both domestic and
international tourists. The plan also seeks to diversify the tourism product by ‘encouraging rural and village
tourism, adventure and eco-tourism, indigenous and natural health tourism, heritage tourism and youth and
senior citizen's packages’.
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The 10th Five Year Plan recognized the vast employment generating potential of travel and tourism and thus
the strategy was to tap the socio-economic potential by creating 3.6 million jobs and enhancing India’s share
of international arrivals. The highly successful international tourism campaign, the ‘Incredible India’
campaign was launched in 2002. Also in 2002, the second full- fledged tourism policy of the country, the
National Tourism Policy 2002 was introduced.
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THE 11TH FIVE- YEAR PLAN (2007-2012)
The vision for the tourism sector for the 11th Five- Year Plan was ‘to achieve a superior quality of life through development and
promotion of tourism which would provide a unique opportunity for physical invigoration, mental rejuvenation, cultural
enrichment and spiritual elevation.’ To accomplish the targets outlined in the 11th Five- Year Plan, the Ministry of Tourism
implemented the following schemes during 2007-12.
i) Product Infrastructure Development for Destination and Circuits (PIDDC)
ii) Overseas Promotion and Publicity Including Market Development Assistance
iii) Assistance to IHMs / FCI / IITTM / NIWS / NIAS / NCHMCT and capacity Building for Service Providers
iv) Domestic Promotion and Publicity
v) Assistance to Large Revenue Generating Projects
vi) Incentives to Accommodation Infrastructure
vii) Creation of Land Banks
viii) Assistance to Central Agencies
ix) Market Research including Twenty Years Perspective Plan.
x) Computerization and Information Technology
xi) Others (Externally Aided Projects and Construction of Building for IISM)
The Ministry of Tourism along with the stakeholders has adopted the Code of Conduct for “Safe & Honourable Tourism”. The
“Safe & Honourable Tourism” was formally signed by key stakeholders’ associations and over 100 industry leaders on 27th
September 2010.
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THE MAJOR EMPHASIS WAS ON THE FOLLOWING THREE SCHEMES:
i) Product Infrastructure Development for Destination and Circuits - This is the only centrally sponsored scheme focusing on integrated
infrastructure development of tourism circuits/ destinations and the improvement of existing products as well as the development of new
tourism products of global standards. The tourism destinations and circuits were sanctioned the maximum cost of Rs 5 crores and Rs 8 crores
respectively. Mega tourism destinations and circuits were sanctioned the maximum cost of Rs 25 crores and Rs 50 crores. 65 Rural tourism
projects were sanctioned under this scheme.
ii) Overseas promotion and publicity Including Market Development Assistance- Vigorous publicity and marketing campaigns were initiated
to position India globally as the most favoured destination. The brand ‘Incredible India’ was promoted in the established markets as well as in
emerging markets. Promotional activities in some of the markets such as Spain, China, France, etc, were undertaken in vernacular languages
for a wider and targeted reach. Efforts were made to establish representative offices of the Ministry in new markets. The 14th Overseas India
Tourism Office in Beijing commenced operations in April 2008.
iii) Central assistance to IHMs/FCIs/ IITTM / NIWS / NIAS / NCHMCT and Capacity Building for Service Providers- This scheme
“envisages to create and upgrade adequate institutional infrastructure for training and certification of manpower resources. Emphasis was
placed on the opening of new institutes such as Institutes of Hotel Management (IHM) and Food Craft Institutes (FCI). The scheme ‘Capacity
Building for Service Providers’ provides for training to cover a wide range of services like health and personal hygiene, cleanliness, basic
service techniques, cooking techniques, garbage disposal, etiquette and basic manners, basic nutrition values, energy saving techniques,
guides’ training, etc. Under this scheme a short duration flagship programme, ‘Hunar Se Rozgar Tak’ was launched. The scheme was expanded
to cover courses like Housekeeping and Utility, Bakery, etc.
iv) Hunar Se Rozgar Tak Scheme
The Ministry of Tourism launched a special initiative called Hunar Se Rozgar Tak (HSRT) in 2009-10, for the creation of employable skills
amongst 8th pass (up to 28 years of age) youths belonging to economically weaker strata of the society in Food Production and Food &
Beverages Services. This programme is conducted through the Ministry of Tourism sponsored IHMs and FCIs at select State Government
Institutes and certain Star category Hotels.
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The strategies for the development of tourism during the 12th Five Year Plan were:
1) A Pro-Poor Tourism development approach aimed at increasing the economic, social, environmental or
cultural benefits to the poor. This ensures that tourism growth contributes to poverty reduction.
2) Clusters or circuits-based tourism development based on India’s vast resources with tourism potential
like historical sites, places of religious significance, and other significant national attractions.
3) Developing formal and informal links between all stakeholders and coordination across all levels of
Government to implement various strategies for tourism development.
4) Developing tourism from people’s perspectives by involving local Panchayats and local communities at
various stages to enable sustainable tourism development.
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SOME OF THE PROMINENT SCHEMES AND INITIATIVES UNDER
THE 12TH FIVE YEAR PLAN INCLUDE:
• Launched e-visa scheme in 2014
• On 2nd October 2014, Swachh Bharat Mission was launched throughout the length and breadth of the country as a national movement. The
campaign aims to achieve the vision of a ‘Clean India’.
• launched two major schemes-Swadesh Darshan - Integrated Development of Theme- Based Tourist Circuits and PRASHAD- Pilgrimage
Rejuvenation and Spiritual, Heritage Augmentation Drive for development of tourism infrastructure in the country
• A National Medical and Wellness Tourism Board has been constituted in 2015 to work as an umbrella organization to govern and promote
medical tourism in India.
• to promote India as a 365 days destination, the Ministry of Tourism has taken the initiative of identifying, diversifying, developing and
promoting niche tourism products of the country like Cruise, Adventure, Medical, Wellness, Golf, Polo, Meetings Incentives Conferences &
Exhibitions (MICE), Eco-tourism, Film Tourism, etc
• To overcome a gap of 8.10 lakh manpower in the hospitality sector, enhancement of the Institutional Infrastructure of Hospitality Education
by opening new Institutes of Hotel Management (IHM) and Food Crafts Institutes (FCI).
• launched the 24x7 Toll-Free Multi-Lingual Tourist Help Line in 12 International Languages-Hindi, English, Arabic, French, German, Italian,
Japanese, Korean, Chinese, Portuguese, Russian and Spanish. This service is available on the Toll-Free number 1800111363 or a short
code 1363 thus offering a “multi-lingual helpdesk”
• Launched the “Incredible India 2.0” Campaign in 2017. This Campaign marks a shift from the generic promotions being undertaken across
the world to market-specific promotional plans and content creation.
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