The tourism sector in India is growing rapidly and is an important part of the economy. However, there are still some problems holding it back from reaching its full potential. Unplanned development has negatively impacted some popular destinations and there is a lack of development in certain regions. Additionally, many Indians are choosing to travel abroad rather than within India. Looking ahead, the government and industry are taking steps to promote sustainable growth through diversification and improved infrastructure. If developed properly while protecting the environment and local cultures, tourism can provide significant economic opportunities for India.

1. PROBLEMS & PROSPECTS
IN THE
TOURISM SECTOR
By
ANAND PRABHUDESAI
14020448076
MBA EE 14-17 WEEKDAY BATCH

2. Overview
 Its boom time for India’s tourism and hospitality sector.
 A 5,000 year history,culture ,religion and alternative medicine fascinate both budget and luxury
travelers alike.
 The focus of the industries on the “Atithi Devo Bhavah”campaign, targeted at the inbound
foreign tourists in the country. Translated literally this means “Guest is God”
• The tourism industry in India is economically important and is growing rapidly. The World
Travel & Tourism Council calculated that tourism generated INR6.4 trillion or 6.6% of the
nation's GDP in 2012. It supported 39.5 million jobs, 7.7% of its total employment. The sector
is predicted to grow at an average annual rate of 7.9% from 2013 to 2023.
• This gives India the third rank among countries with the fastest growing tourism industries over
the next decade.
• India has a large medical tourism sector which is expected to grow at an estimated rate of 30%
annually to reach about 95₹ billion by 2015
• According to provisional statistics 6.29 million foreign tourists arrived in India in 2011, an
increase of 8.9% from 5.78 million in 2010. This ranks India as the 38th country in the world in
terms of foreign tourist arrivals. Domestic tourist visits to all states and Union Territories
numbered 1,036.35 million in 2012, an increase of 16.5% from 2011.The most represented
countries are the United States (16%) and the United Kingdom (12.6%). In
2011, Maharashtra Tamil Nadu and Delhi were the most popular states for foreign tourists.
Domestic tourists visited the states Uttar Pradesh, Andhra Pradesh and Tamil Nadu most
frequently. Chennai, Delhi, Mumbai and Agra have been the four most visited cities of India by
foreign tourists during the year 2011
• The Travel & Tourism Competitiveness Report 2013 ranks India 65th out of 144 countries
overall. The report ranks the price competitiveness of India's tourism sector 20th out of 144
countries. It mentions that India has quite good air transport (ranked 39th), particularly given
the country’s stage of development, and reasonable ground transport infrastructure (ranked
42nd). Some other aspects of its tourism infrastructure remain somewhat underdeveloped
however. The nation has very few hotel rooms per capita by international comparison and
low ATM penetration. The World Tourism Organization reported that India's receipts from
tourism during 2012 ranked 16th in the world and 7th among Asian and Pacific countries
• The Ministry of Tourism designs national policies for the development and promotion of
tourism. In the process, the Ministry consults and collaborates with other stakeholders in the
sector including various Central Ministries/agencies, state governments, Union Territories and
the representatives of the private sector. Concerted efforts are being made to promote new
forms of tourism such as rural, cruise, medical and eco-tourism. The Ministry also maintains
the Incredible India campaign.
• India's rich history and its cultural and geographical diversity make its international tourism
appeal large and diverse. It presents heritage and cultural tourism along with medical, business,
educational and sports tourism.

3. Brand Ambassadors tie-up for promoting Tourism in India & States
 Incredible India! - Aamir Khan
 Gujarat Tourism - Amitabh Bachhan.
 Kingdom of Dreams - Shahrukh Khan
 West Bengal - Shahrukh Khan
 Goa Tourism - Prachi Desai
 Andhra Pradesh Tourism - Saina Nehwal
 Telangana Tourism - Sania Mirza
 Himachal Pradesh Tourism – Preity Zinta
 Kerala Tourism -Govt. of Kerala (Tagline-Gods Own Country)
 Rajasthan Tourism:- Govt. of Rajasthan(Incredible India!).
 Madhya Pradesh Tourism:- Govt. of MP(Incredible India!).
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PROBLEMS
• Although India has progressed a lot since 1950s with respect to tourism, she is still way behind
the developed or even the developing countries. India’s share in the tourist arrival has been
growing at a snail’s pace from 0.23 per cent in 1975 to 0.28 per cent in 1980 and 0.42 per cent
in 2004.
• In India, tourism provides 5.6 per cent of the total jobs, China that just pulled its iron curtain, is
doing better with 7 per cent. Torn apart by civil war Sri Lanka still has 7.4 per cent of its jobs
coming from the tourism sector. Travel is a happening business in Thailand, generating 11.2 per
cent of the total jobs.
• Still there are large areas which are untapped from the tourist point of view. Traditionally a
popular destination, North India still draws about 49 per cent of the tourists; whereas only 4 per
cent go to east.West is doing better getting 29 per cent of the tourist inflow. South, despite its
beaches, temples, hills, etc. gets only 18 per cent of foreign and domestic tourists. Thus there is
great potential for development of tourism, particularly in east and south, which require proper
tapping with immediate effect.
• Another problem of recent origin is that Indian tourists have started travelling abroad rather
than travelling within the country. In 2004, as many as 6.2 million Indian tourists went abroad
in contrast to only 2.9 million foreign tourists visiting India.With each outgoing Indian tourist
spending an average of $ 3 000 an estimated amount of Rs. 72,600 crore went out of the
country. Of late, Indian tourists are looking beyond Shimla, Srinagar, Ooty, Mumbai, Delhi and
Goa, and are grabbing foreign holiday deals like never before. The main cause of outflow of
Indian tourists is high aviation cost in the domestic sector. When a tourist in North India can get
cheaper return tickets to Sri Lanka or Thailand than to Goa or Kerala, he will obviously go
abroad.

4. • The unplanned and unrestricted growth of tourism has a detrimental effect on environment. The
origin and growth of tourism in India as elsewhere in the world, is distinctly urban oriented
rather than being spread over the countryside. This is due to the fact that urban centres provide
the necessary infrastructure and wider choice of facilities and price ranges for accommodation,
food, entertainment, etc.
• There is lack of appreciation of the holistic approach to tourism development which takes into
account the linkages between environment and pressure of tourists. The result is that, almost all
the popular tourist centres are groaning under the pressure of annual visitors and quite often
facing difficult situation.
• The unplanned and unchecked growth of tourist centres deprives them of their original charm
and ultimately proves disastrous. This is what is happening to some of the famous tourist
centres like Shimla, Mussoorie, Darjeeling, etc. where sometimes even drinking water is not
available to cater to the needs of the tourists.
• Sometimes, the area around a tourist spot is covered by commercial constructions and even by
industries. Such unplanned growth tarnishes the image of the concerned spot. The Taj Mahal at
Agra, the Meenakshi Temple at Madurai, the Lingaraja temple in Bhubaneshwar and the palace
in Udaipur are examples of this nature where much of the original beauty and charm is lost due
to unplanned constructions around them.
PROBLEMS OF MASS TOURISM
1) Effects of Environment
It is aptly described that tourism = nature’s beauty + wild life + cultural attractions + ecology. All these
are the components of one single and indivisible system. They need to be conserved in order to protect
the very resource base of tourism from destruction.
A declining biodiversity as a result of all sorts of human activity is decried in the latest United Nations
Report on assessment of ecosystems. The wild animals and the birds always move away to avoid
human contact. If it is not possible for them to keep away, they may even die. The loss of ground
shelter, bad quality of water, frequent dredging of silt from wetlands, silting of wetlands and an
excessive noise disturb the wild life
For an example, instead of relocating all villages away from the core of Maharashtra’s top tiger reserve
of Melghat, taned roads have been built in it. Tigers often burn their baws by walking on them in hot
summer.
Heavy rush of tourists day in and day out in Ajanta, Ellora and Elephanta caves is reported to be
creating an excessive amount of humidity. It checks free circulation of air inside them. It has led to the
deterioration of wall paintings and the rock frescoes
The vibrations caused by the taking off and the landing of aeroplanes at a runway to close to the
Khajuraho temples are harming the sculptures
Jantar Mantar at Delhi is no longer functioning astronomically because the unchecked construction of
sky scrapers.
One such example is the successful effort supported through a court order to clear a 10,500 sq. km area
surrounding the Taj Mahal at Agra to keep it an glimmering a site as it was earlier. There was the

5. danger that the world famous monument would lose its charm because of the pollutants thrown in air
around from Mathura oil refinery and thousands of factories nearby. Now the whole area called ‘Taj
Trapezium’ extending right upto Bharatpur bird sanctuary and Firozabad glass factories has been
cleared of factory and a green belt has been laid around it. The air pollution from Mathura refinery has
also been controlled. But the riverside of Yamuna continues to be as much dirty as many other rivers
and the cites around are turning to be.
All components of environment, the soil, flora fauna and water flower besides the monuments of
heritage tourism need to be protected from adverse impact of large scale tourism.
Merely controlling the influx of tourists in isolation fails to secure sustainable measures of conservation
of environment in the absence of practising cooperative tourism with the participation of local
communities.
2) Effects on local economy
An irregulated rush of visitors to areas of tourist interest also puts a great pressure on local resources.
There is an hike in the price of land because of the greater demand for construction of hotels for the
tourists. The prices of daily needs especially of perishable goods like milk, eggs, vegetables and fruits
shoot up in the upcoming tourist place. A rise in the wages of labour occupied in the service of tourists
takes place The generation and rise in income are happy signs.
Even a modest but unregulated rush of tourists raises the wages of labour, prices of land and of articles
of daily use in the tourist region. z More demand and less supply of water and power, shared by both
the tourists and the local residents, creates shortages—the worse sufferers are always the indigenous
people. z Tourist carrying capacity of a resort needs to be matched to the growing tourist traffic and the
increase in the number of incoming job seekers to check these problems
3) Effects on local cultures
Economic benefits of tourism are always welcomed in less developed countries like India. But its social
effects are not easy to digest. They arouse reaction among the people living in the tourist regions. It is
the result of the clash of two different sets of values.
Gandhiji said that nations live neither on democracy alone nor on economic growth. They must retain a
sense of their own identity by keeping alive the pride in their heritage.
the popular beach town of Mahabalipuram near Chennai for converting it into an wholesale tourist
place. It has been historically more famous for its ethnic art and sculpture. The international
intervention would have virtually led to the moving out of local people, dedicated for long to express
their legends into stones through sculpture. It would have paved the way giving full freedom to
foreigners including their females to lie freely on its beaches. A fashion craze which does not fit in with
Indian custom. By accepting it as an international tourist town, the expected clash of cultures between
the visitors and the locals could have been avoided in one stroke. Those who were the proposers or the
supporters started telling that it will boost income earned from recreative tourism. But there were others
calling it a cultural coloniser coming back to an Independent India. Such culture clashes at different
stages are reported from a number of other tourist resorts in the country.
The encounter between foreign tourists and the local people is a clash between two sets of cultures
observed at a number of tourist resorts.
There is only a commercial relation between the tourists and their hosts just as is between the sellers
and buyers of goods and services in the market.
Treating local people as objects of curiosity by the tourists cause irritation among the former.
Tourists are generally members of a high consumption society of pleasure seekers landing in the midst
of a society suffering from wants. Youths of the host area suffer from cultural alienation by imitating
the behavior pattern of the tourists and losing the hold of their family traditions. It is the major negative

6. impact of mass tourism, more harmful in the stages of its early growth.
PROSPECTS
With a view to improve tourism and at the same time taking care of the environment, the central and
state governments are coming forward with new development plans. Although tourism is the
responsibility of the state governments, the Central Government lends all help to develop tourism. India
Tourism Development Corporation (ITDC) was established in October 1966.
The main thrust of the Government has been,
• Development of selected tourist places/areas
• Diversification from culture-oriented tourism to holiday and leisure tourism
• Development of trekking, winter sports, wildlife and beach resort tourism Restoration of
national heritage projects
• Launching of national image building and marketing plans in key markets.
• Providing inexpensive accommodation in different tourist centers
• Streamlining of facilitation procedures of airports.
Indian railways have also recognized its role in tourism development. The launching of Rajdhani and
Shatabdi trains is a step in the right direction. ‘Palace on Wheels’ is already operational in Rajasthan.
Another special tourist train ‘Orient Express’ has been introduced in Gujarat and ‘Deccan Odyssey’ in
Maharashtra
SWOT ANALYSIS OF TOURISM INDUSTRY/SECTOR
STRENGTHS
• Pleasant Weather.
• Ideal Geographical location.
• Good Hospitality culture of Indian people.
WEAKNESS
• Lack of proper Marketing & Advertisement.
• Dependency on Third Party.
• Lack of adequate Infrastructural support.
• Funds constraining the development of region.
OPPORTUNITY
• The concept of holiday is gaining popularity in India among various classes of people.
• Increased disposable incomes of the Indian middle class.
• Adventure sports & trekking. Eco-tourism is gaining popularity
• Medical Tourism
THREATS
• Stiff Competition.
• Environmental factors also impose a threat.
• Exploration of new tourist spots and hubs.

10. Important Highlights of Indian Tourism

25. 2015 Data
Performance of Tourism Sector during January 2015
Foreign Tourist Arrivals (FTAs):
• FTAs during the Month of January 2015 was 7.90 lakh as compared to FTAs of 7.59 lakh
during the month of January 2014 and 7.20 lakh in January 2013. There has been a growth of
4.0% in January 2015 over January 2014.
• The Percentage share of Foreign Tourist Arrivals (FTAs) in India during January 2015 among
the top 15 source countries was highest from USA (16.35%) followed by UK (11.82%),
Bangladesh (9.29%), Canada (4.70%), Australia (3.63%), Russian Federation (3.50%), France
(3.16%), Germany (3.12%), Sri Lanka (2.93%), Malaysia (2.91%), Japan (2.63%), China
(2.30%), Rep.of Korea (1.89%), Afghanistan (1.76%) and Oman (1.54%).
Foreign Exchange Earnings (FEEs) from Tourism in India in rupee terms and in US$ terms
• FEEs during the month of January 2015 were `11,529 crore as compared to `11,082 crore in
January 2014 and `10,785 crore in January 2013.
• The growth rate in FEEs in rupee terms during January 2015 over January 2014 was 4.0% as
compared to 2.8% in January 2014 over January 2013.
• FEEs in US$ terms during the month of January 2015 were US$ 1.854 billion as compared to
FEEs of US$ 1.786 billion during the month of January 2014 and US$ 1.984 billion in January
2013.
• The growth rate in FEEs in US$ terms in January 2015 over January 2014 was 3.8% compared
to a negative growth of 10.0% in January 2014 over January 2013.