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St.mgmt final

  1. 1. TOURISM INDUSTRY IN INDIA<br />Compiled by<br />LIVIN RICHARD.P<br /> MUKESH<br /> PREETHA.D<br /> ROOPAL.S.SHAH<br /> SHAIMA.K<br /> SUMATHI.T<br />
  3. 3. VIEW OF MINISTER OF TRAVEL & TOURISM MS AMBIKA SONI <br />Future prospects of tourist influx in <br />India:<br />Development of Infrastructure <br />(Concessions in taxes) <br />Clean accommodation<br />New airports are coming up.<br />Railways have increased the <br />services. <br />Road transport is better. <br />National highways are being <br />constructed.<br />
  4. 4. Government’s support to the private players<br />Ministry have a budget of 1000 crore for this year (half of this budget is scheduled for the infrastructural support to the states)<br />Now the Ministry has proposed for tax holiday for hotel business for those who would be investing in rural and hinterlands. <br />
  5. 5. TOURISM<br />Tourism is the temporary, short-term movement of people to destination outside the places where they normally live and work and their activities during the stay at each destination. It includes movements for all purposes.<br /> The tourism business in India can be broadly classified into<br />Inbound tourism(5.1 million in 2009)<br />Domestic tourism(650 million in 2009)<br /> Outbound tourism(11.1 million in 2009)<br />
  6. 6. OPERATING SECTORS OF THE TOURISM INDUSTRY<br /><ul><li>Travel trade sector
  7. 7. Accommodation sector
  8. 8. Tourism services
  9. 9. Transportation sector
  10. 10. Entertainment sector
  11. 11. Food services sector
  12. 12. Adventure & outdoor recreation
  13. 13. Food services sector
  14. 14. Attraction sector
  15. 15. Events sector</li></li></ul><li>DIFFERENT FORMS OF TOURISM<br />BASED ON PURPOSE<br />Business Tourism<br />Leisure Tourism<br />
  16. 16. GENERAL TOURISM<br />Spiritual Tourism<br />Eco Tourism<br />Rural Tourism<br />Adventurous Tourism<br />Dark Tourism<br />Medical Tourism<br />
  17. 17. COST COMPARISONS <br />
  18. 18.
  19. 19. TOURISM INDUSTRY Vs FEE<br />Foreign exchange earnings(FEE) <br />US$ 3.1 bn in 2002<br />US$ 11.7 bn in 2008<br />US$ 11.39 bn in 2009. <br />
  21. 21. TRAVELLER ANNUAL READERS SURVEY<br />SUMMER DESTINATIONS<br />Himachal pradesh 23%<br />Kashmir 17%<br />Darjeeling 14%<br />Lakakh 12%<br />Munnar 10%<br />Coorg 9%<br />WINTER DESTINATIONS<br />Goa 25% <br />Kerela 20%<br />Andaman 16%<br />Rajasthan andamans9%<br />Jammu & kashmir 7%<br />Karnataka 7%<br />Lakshadweep 5%<br />Madyapradesh 4%<br />Tamilnadu 4%<br />
  22. 22. Cont..<br />HILL STATIONS<br />MANALI 17%<br />DARJEELING 11%<br />KODAIKANAL 10%<br />GANGTOK 9%<br />NAINTAL 9%<br />OOTY 9%<br />GULMARG 8%<br />MUNNAR 8%<br />MUSSOORIE 6%<br />COORG 5%<br />SHIMLA 4%<br />SHILONG 2%<br />COASTAL STATES<br />Goa 35%<br />Andamans 14%<br />Kerela 13%<br />Lakshaweep 10%<br />Andhrapradesh 6%<br />Maharashtra 6%<br />Orissa 6%<br />Karnataka 5%<br />Gujarat 3%<br />Tamilnadu 1%<br />
  24. 24. GOVERNMENT POLICIES, GOALS AND OBJECTIVES<br />Active participation and investment from private sector in tourism industry.<br />Special attention for infrastructure development in North East India and Jammu & Kashmir. <br />Improvement and environmental up-gradation of the protected monuments. <br />Promotion of rural tourism (eliminating poverty and creating employment)<br />To impart a special thrust to eco tourism in all developmental activities.<br />
  25. 25. Giving importance to domestic tourism, pilgrimage tourism .<br />To encourage Adventure Tourism for the new class of young tourists.<br />Encouraging special products like Yoga, Siddha , Ayurveda, Indian cuisine etc. <br />Training programs for capacity building of tourism service providers.<br />Training of State Police to act as Tourist Police.<br />To actively participate in activities of international organizations such as UN World Tourism Organisation and World Tourism and Travel Council.<br />
  26. 26. TRAVEL REGULATIONS FOR INDIA<br />To travel India one need valid passport and Visas obtained and issued from the Indian Embassies or Indian High Commissions abroad.<br />The Passport of the person applying for the visa should be valid for a minimum of six months beyond the date of intended departure from India. <br />Foreigners holding nationality of any other country is required to submit proof of long-term (at least three years)/ permanent residence in the country from where they are applying. <br />
  27. 27. EXEMPTION FROM REGISTRATION<br /> If you are a foreign tourist and visiting India for 180 days or a shorter period, then you don't need to register yourself with any authority in the country. You can freely move about in the country, except to the prohibited places and restricted and protected regions.<br />HEALTH REGULATIONS<br /> Yellow Fever Vaccination Certificate conforming to International Health Regulations.<br />
  29. 29. REFORM MEASURE AND POLICY INITIATIVES<br />Central government runs the India Tourism Development Corporation. In the year 2002, New Tourism Policy was launched. It was built around 7 mantras:<br />Swagat (welcome)<br />Suchna (information)<br />Suvid ha (facilitation)<br />Surakhsha(security)<br />Sahyog(cooperation)<br />Sanrachna(infrastructure) <br />Safai (cleanliness)<br />
  30. 30. Cont..<br />Some salient features of tourism policy:<br />It proposes the inclusion of tourism in both the central and state governments sector.<br />No approval for foreign equity upto 51% in tourism projects. <br />NRI investment up to 100% allowed.<br />
  31. 31. Concession rates on customs duty of 25%.<br /> 50% of profits derived by hotels, travel agents and tour operators in foreign exchange are exempt from income tax. <br /> To obtain impetus for development of tourism through public partnership, a National Tourism Advisory Council has been constituted.<br />The public private partnership.<br /> Several small schemes of 9th Plan have been merged to create world class tourism infrastructure all over the country.<br />
  33. 33. TOURISTS<br />It has become a challenge to please customers. With extreme availability of information and variety of options, it has become even more difficult to please customers in tourism industry.<br /> The customer satisfaction can be gauged on these parameters :<br />Infrastructural factors<br />Services and Safety factors<br />Necessities<br />Cost related factors<br /> Natural or unique factors<br /> 6. Climate<br /> 7. Overall satisfaction<br />
  34. 34.
  35. 35. Foreign Tourist Arrivals (FTAs) from Tourism in India during December 2008 and comparative figures of 2006 and 2007<br />
  37. 37. ATTRACTIVE SOCIAL & CULTURAL ELEMENTS<br />Work<br />Dress<br />Architecture<br />Handicrafts<br />History<br />Language<br />Religion<br />Education<br />Traditions<br />Leisure activities<br />Art/music<br />Gastronomy<br />
  38. 38. BEST TOUR OPERATORS IN INDIA<br />India focus<br />Prime travels<br />Travelmartindia<br />Indiamap<br />Atrip2india<br />Akshayaindia<br />Makemytripindia<br />Touroperatorindia<br />Seaindia<br />Greatindianoutdoors<br />
  39. 39. SOME FACTORS AFFECTING INDIAN TOURISM<br />Poor transportation.<br />Lack of basic hygienic amenities at halting points.<br />Non-standardization of rates and fares.<br />Lack of sound marketing and promotion strategies.<br />Poor maintenance of heritages.<br />Issues regarding security and harassment.<br />Lack of passionate and trained professionals. <br />
  40. 40. UNION BUDGET 2011<br />To promote tourism, the government has allocated Rs 1170 crores in the General Budget for 2011-12, marking an increase of Rs 104 crores over last year. <br />The budget, presented in the Lok Sabha has made provision of Rs 499 crores for development of tourist infrastructure, wayside amenities, tourist reception centers, refurbishment and illumination of monuments. <br />
  41. 41. SWOT ANALYSIS<br />
  42. 42. STRENGTHS<br />One of the ten paradise and top 50 places to be visited in lifetime by national geographic traveller.<br />Variety of products and services.<br />Highly reputable, bagged various national and international awards.<br />Eco tourism initiatives.<br />Rich culture heritage and colorful festivals.<br />Scenic beauty of the country.<br />Terrain is ideally suited for various adventure activities.<br />Well known Indian hospitality.<br />High life expectancy.<br />Excellent quality of life.<br />
  43. 43. WEAKNESSES<br />Restrictive Airline Policy of the Government of India.<br />Overcrowding of popular tourist centers.<br />Inadequate marketing and information channels.<br />Some places are inaccessible, especially in winter.<br />Inadequate infrastructure to match the expectation.<br />
  44. 44. Lack Innovative branding and positioning.<br />Restrictive coastal regulation zone.<br />Lack of effective waste management system<br />Lack of regulatory mechanism for sustainable development<br />Shortage of funds for tourism expansion<br />Exploitation of tourists(Overcharging for services)<br />
  45. 45. OPPORTUNITIES<br />• GOI is giving special attention to certain regions like NE India. <br />• Asian Development Bank is preparing a Sub- Regional Plan for development of tourism in India.<br /> • Potential for private sector's investment in tourism projects.<br /> • Availability of high quality human resource.<br /> Lot of unused prospective on heritage, medical and pilgrimage tourism.<br />Accessibility of quality human resource.<br />Employability in tourism and related areas.<br />
  46. 46. THREATS<br />Terrorism is a major setback of the region. <br /> Disorganized tourism development. <br /> Environmental factors also impose a threat<br />Strong Competition within states of India and abroad. <br />Growth of tourism may lead to pollution problem ,ecological hazards etc.<br />Over emphasis may lead to secession in the period of downturn.<br />
  47. 47. PORTER’S FIVE FORCE MODEL<br />Substitutes<br />Media Entertainments<br />Internet <br />Amusement parks<br />New Entrants<br />Upcoming destinations and the issues they are up against<br />
  48. 48. Cont..<br />Rivalry among Competitors<br />Vietnam<br />Philippines<br />Indonesia<br />Malaysia <br />Singapore<br />Barriers to entry<br />Infrastructure<br />Cultural issues<br />Global mindset<br />Ease of access<br />Language<br />Security<br />
  50. 50. CURRENT AFFAIRS IN TOURISM INDUSTRY IN INDIA<br />Hyderabad in New York Times 2011 list of must see places  The New York Times (NYT) has featured the city of pearls in its list of '41 places to go in 2011.'  <br />Kerala Tourism sweeps PATA Awards 2011 Kerala Tourism - four of the top honors at the Pacific Asia Travel Association (PATA) - global campaign film ‘Your Moment is Waiting’.<br />Kerala Tourism Wins Prestigious Award at Fitur, Madrid Kerala Tourism won the award for the best international stand at FITUR (International Tourism Trade Fair) held in Madrid, Spain.<br />
  51. 51. on e-books, travel Dorling-Kindersley-India a publishing subsidiary of Penguin Books, is expanding its footprint in the Indian market with new digital and travel titles in 2010-11. <br />WTM (World Travel Market)2010 expects to generate more travel industry business this year <br />Gypsy travels: Caravan tourism arrives in IndiaIt is operated between Orchha and Khajuraho in Madhya Pradesh. <br />
  52. 52. CURRENT TOURISM STRATEGIES<br />Turn around – Incredible India.<br />Internet Strategy.<br />Cost leadership in medical tourism.<br />Developmental strategy(Ministry has spotted out 130 sites to be developed as the tourists destinations).<br />
  53. 53. PROPOSED STRATEGIES<br />Innovation strategies to capture new markets.<br />Customer satisfaction is important.<br />Optimum utilization of resources.<br />Develop financial performance.<br />
  54. 54. For promotion of tourism, Rs 347.75 crores has been earmarked in the budget. <br />Social awareness campaigns also released to sensitize the masses and tourism stakeholders. <br />The Ministry has got Rs 123 crores for its training programmes. <br />
  55. 55. Training manpower is important for development, at present there are 41 institutes of hotel management and 5 food craft institutes. <br />Keeping the special requirements of the northeast region in mind, Rs 110 crores is being earmarked for the NE region and Sikkim in the budget.<br /> <br />
  57. 57. GLOBAL SCENARIO: TOURISM SECTOR TOWARDS GLOBALIZATION<br />The Asian American Hotel Owners Association (AAHOA) Promotes India as a tourist destination in the US through its network of 22,000 member hotels. <br />Strategic tie-ups with such associations could be a significant factor in the years to come, since over 40 % of American hotels are owned and operated by People of Indian Origin (PIO).<br />
  58. 58. GLOBAL SCENARIOINTERNATIONAL RECOGNITION<br />India has been elected to head the UN World Tourism Organization (UNWTO). <br />The world's leading travel and tourism journal, "Conde Nast Traveller", ranked India as the numerous travel destination in the world.<br />The "Incredible India" campaign has been ranked as the Highest Recall Advertisement worldwide by "Travel and Leisure". <br />India was adjudged Asia's leading destination at the regional World Travel Awards (WTA). <br />India's TajMahal continues to figure in the seven wonders of the world.<br />Bangalore-based Leela Palace Kempinski has been rated as the favorite business hotel in the world in a Readers' Choice Awards by Conde Nast Traveller.<br />
  59. 59. NEW UP-COMING TOURISM PRODUCTS<br />Monsoon magic (April to October)<br />Rural & village tourism<br />Medical tourism<br />Spa tourism ( luxurious world class health spa’s are mushrooming across the country)<br />Luxury tourism( Palace on Wheels, Palaces Adventure tourism)<br />MICE–convention centers coming up in the metro cities<br />
  60. 60. EMERGING TRENDS<br />Demand for niche and customized tourism products.<br />Lifestyle changes and higher disposable incomes have resulted in shifting travel preferences and travelers are looking for ‘out-of-the-box’ experiences. <br /><ul><li>wine tourism,
  61. 61. pop-culture tourism,
  62. 62. cruise tourism,
  63. 63. wellness tourism,
  64. 64. monsoon tourism etc.</li></ul>Tour companies are also willing to customise products as per travelers’ choices/preferences.<br />
  65. 65. COST BREAK-UP<br />Airline 27.2%<br />Cruise 25.9%<br />Hotel 8.4%<br />Car rental 4.6%<br />Tour packages 29.9%<br />Other 4.0%<br />
  66. 66. KEY FINDINGS<br />India is expected to see an influx of 10 Million international tourists by 2010(3.5 million –commonwealth games), up from just 5 Million in 2007 <br />Health care tourism is expected to reach US $2 Billion by 2012, representing a CAGR (Compounded annual growth rate)of 60.69%<br />Indian outbound tourist flow is expected to increase at a CAGR of 13.30% from 2008 to 2012. <br />
  67. 67. It makes the 11% of the total GDP of the world and also makes the 8% of the employed population of the world.The Indian tourism industry is expected emerge as a second largest employer by 2019. <br />Capital investment in the tourism sector is expected to increase by 8.8% from 2010 to 2019.<br />
  68. 68. India’s share in the global tourism is expected to reach 1.5% by 2011.<br />The growth in India’s tourism market is expected to serve as a boon for hotel, medical tourism and aviation industry<br />Personal disposable income during 2007-2010 grew at a CAGR of 14.16%, driving domestic as outbound tourists.<br />The ‘Incredible India’ Campaign.<br />
  69. 69. REFERENCES<br />Websites <br /><br /><br /><br /><br /><br /><br /><br /><br /><br />
  70. 70. THANK YOU!!!<br />