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Growth and Performance of Tourism Industry in India
Conference Paper · February 2015
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2. Growth and Performance of Tourism Industry in India
Dr. L. N. Ghatage Dr. V. M. Kumbhar
Head Assistant Professor
Department of Business Economics, Department of Business Economics,
D.G. College of Commerce, Satara D.G. College of Commerce, Satara
(Mbl 9850110746) (Mbl 9860176059)
Email lnghatage@gmail.com kumbharvm@gmail.com
 Introduction
Tourism is an integral part of human life. It is a situation where person from one country, or region
to other region and country for a short run period, is included in the concept of tourism. Now-a-days the
tourism industry has a greater importance. India has a greate heritage of historical place like the Taj Mahal,
Verious Forts, Natural sites etc. Since 2000 tourism industry has been giving number of benefits to India.
The number of foreign tourits visited to India which has given foreign exchange earning to the Country.
Here, we have focused the grwoth and performance of the Indian tourism industry. We have also analized
the causal analysis of the Indian tourism industry for overall development of the Indian economy. National
tourismpolicy 2002 and its implications are important in this context.
 Objectives of the Study
1. To take review oftourism industryofthe country
2. To studythe growth and performance of tourism industry in India
3. To studythe trend of foreign tourist arrival in India
4. To identify the problems of tourism industry in India and suggest remedies
 Data and Methods
The present research paper is mostly based on secondary data sources. We have collecetd
secondary data required for this paper from Reports of the Ministry of Tourism, Govt. of India
2014, India Tourism Statistics at a Glance 2013, Statistical Handbook of India, and other related
infromation has been collecetd from the policy papers as well as research papers published in
verious journals. All collected data was analized with the help of trend line analysis.
 Review of Indian Tourism Industry
In India, the Central Government and State Government have announced separate tourism policy
concern to their state time to time. Tamilnadu, UP, Andra Pradesh, Karnataka, Maharashtra, MP, Kerala,
Rajastan, Gujarat and West Bengal are the important states where tourisim industry has developed. Due to
the increasing importance of tourism sector Seventh five year plan of the Government of India has

3. annocunced the tourism sector as industry. The first public milestone in the history of the Indian tourism
sector is the establishment of Indian Tourism Development Corporation (ITDC) in 1966. On the Basis of
this, majority ofthe states have given the facilities through ITDC separatelly.
The first Ttourism policy was announced in 1982 in India. This policy was launched for the action
plan for the tourists’ arrival and necessory facilities to provide them. These facilities are includes
altramodern facilities of accomodation, hotels and meanas of transport etc. The efforts was made to
provide these facilities as a cooperative ventures to collect maximum earnings from domastic and foreign
toruists arriveles in India. The government of India has oppointed Committee on National Tourism in
1988. This committee has focoused on public sector to develop tourism sector in India. The committee has
recommanded to prepare a plan for Tourism development in each state. The committee also suggested to
the states to make the provision of fiscal and monetory incentives along with enviornmental protection.
Since 1991 the CentralGovernment has revised the action plan for the development ofTourism industry in
country. This plan is mainly focused for increaseing employment opportunities, preservation of national
heritage and environment and the development of international Tourism for the optimization of foreign
earinings. This policy has also desided to enhance India’s share in world Tourism from 0.4% to 1% within
the five years.
The important features ofNational Tourism Policy 2002 are as follows;
1. Tourism is an important tool for employment generation, economic development and rural
tranformation in India
2. To take advantage ofglobal trade transction through traval and tourism
3. This policy is based on seven key indicators of tourism development. These indicators are i)
welcome ii) information iii) facilitation iv) seaftyness v) Co-operation vi) insfrastructural
development vii) cleanliness
4. To use human resource, naturalresources and technical resources for sustainable development
5. To use labour intensive technique in tourism sector for employment generation and upgradation of
qualityof life.
6. To focus on rural areas for low cost programmes related to tourism centers
7. To create forward and backward linkages in the tourism sector for overall development
8. To increase the foreign earnings through export oftourism services
9. To promote understanding, peace and to contribute nationalunity and regional stability
10. To develop shoping centers for the revienue generation and other ruraltourism products

4.  Review of Research on Tourism Sector
For the purpouse of understanging the facts about the Tourism industry we have reviewed some
important research papers related to Tourism sector;
Shalini N. Tripathi & Masood H. Siddiqui (2010) mentioned that tourism and hospitality have
become key global economic activities as expectations with regard to our use of leisure time have evolved,
attributing greater meaning to our free time. While the growth in tourism has been impressive, India's share
in total global tourism arrivals and earnings is quite insignificant. It is an accepted fact that India has
tremendous potential for development oftourism
According to Lok Sabha Secretariat (2013), the role of the Government in tourism development
has been redefined from that of a regulator to that of a catalist. Apart from marketing and promotion, the
focus of tourism development plans is now on integrated development of enabling infrastructure through
effective partnership with various stakeholders.
Ashish Nag (2013) mentioned that the Ministry of Tourism in any country seeks ways to promote
and develop tourism in the country. Tourism Industry Growth in any country is prone to the changing
economic conditions. In the event when a country is passing through a low phase or an individual's job is at
stake, not many people choose to travel.
Archana Bhatia (2013) mentioned that tourism today is a leisure activity of the masses. People
todaytravelto internationaldestinations to break the regular monotonyof life. They are mainly attracted by
either the scenic beauty of its nature or by fascinating leisure, sports and adventure activities offered by the
destination. But every destination has some internal strengths and weaknesses that either enhance its
capacity to attract foreign visitors or diminish it. Similarly from the external environment can originate
various opportunities or threats as well.
Anushree Banerjee (2014) stated that the major issues that are restraining the industry from
achieving high economic value are shortage of qualified personnel, shortage of tourism training institutes,
shortage of well qualified trainers, working conditions for the employees. Policies which can help the
employees to work in supportive environment are also a point of concern. The paper is an attempt to judge
the work done by the HRD team of the tourism industry with special reference to Jet Airways India Ltd.
This in turn can enhance the capabilities and motivate themto work more efficiently.
 Growth of Tourism Industry in India
A growth of Tourism industry in India sicne 1997 to 2013 is continousally growing in respect of
number of foreign tourists’ arrivals and foreign exhange earnings. Accoridng to the annual report of
tourism industryof2013-14, the progress ofTourism industry is shown in the Tabale No-1

5. Table No1: Foreign Tourist Arrivals (FTAs) in India, 1997-2013
Year
FTAs from Tourism in
India (in Million)
Percentage (%)
change over the
previous year1997 2.37 3.8
1998 2.36 -0.7
1999 2.48 5.2
2000 2.65 6.7
2001 2.54 -4.2
2002 2.38 -6.0
2003 2.73 14.3
2004 3.46 26.8
2005 3.92 13.3
2006 4.45 13.5
2007 5.08 14.3
2008 5.28 4.0
2009 5.17 -2.2
2010 5.78 11.8
2011 6.31 9.2
2012 6.58 4.3
2013 6.97 5.9
Source:(i) Bureau of Immigration, Govt. of India, for 1997-2013
Table No1 indicates the growth of foreign tourists’ arrival in India. If we consider the
trends in foreign toruists arrivals in India since 1997 to 2013 there is continous growth. The
Figure No 1 depicts the trendline in foreign tourists’ arrivals.
 Foreign Exchange Earnings from Tourism Sector
It is necessory to consider the economic significance of tourism industry in India. The
total fess collected from the foreign toruisrst arruval in India and the changes in it since 1997 to
2013 gradually increeased from 2889 US$ to 18445 US$. It indicates that tourism industry has
0
1
2
3
4
5
6
7
8
Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Figure No 1 : FTAs from Tourism in India (in Million)

6. given continously foreign aernings to India. The details regarding the FEE from Tourism in India
and its changes per year have shown in the Table No 2.
Table No. 2: Foreign Exchange Earnings form Tourism Sector (in US$ Million)
Year
FEE from Tourism in India Percentage (%) change over the previous
year
1997 2889 2
1998 2948 2
1999 3009 2.1
2000 3460 15
2001 3198 -7.6
2002 3103 -3
2003 4463 43.8
2004 6170 38.2
2005 7493 21.4
2006 8634 15.2
2007 10729 24.3
2008 11832 10.3
2009 11136 -5.9
2010 14193 27.5
2011 16564 16.7
2012 17737 7.1
2013 18445 4.0
Source: Government of India, Ministry of Tourism Report 2014
Table No. 2 shows the foreign exchange earnings of tourism industry of India
since 1997 to 2013. If we observed the seventeen years data shown in the table, seven
years i.e. 2000, 2003, 2004, 2007, 2010 and 2011 the percentage of change over the
pervious year is higher than the previous year. The trends in the foreign exchange
earning are shown in the figure 2.
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
Fig 2: FEE from Tourism in India

7.  Statewise Scene of foreign Tourist Arrivals in India
There are 10 top states in India where the foreign tourists visit every year. These states
are of Maharashtra, Tamil Nadu, Delhi, UP, Rajstan, West Bengal, Kerala, Bihar, Karnataka and
Goa. The number of domestic and foreign tourists’ visit frequentaly visits to the important places
to these states. The total number of foreign tourists visits to these states in 2013 shown in the
Table No. 3
Table No 3 : Share of Top 10 States/UTs of India in Number of Foreign Tourist
Visits in 2013
Foreign Tourist Visit in 2013 (P)
Rank State/UT Number Percentage Share %
Maharashtra 4156343 20.8
Tamil Nadu 3990490 20
Delhi 2301395 11.5
Uttar Pradesh 2054420 10.3
Rajasthan 1437162 7.2
West Bengal 1245230 6.2
Kerala 85814
3
4.3
Bihar 76583
5
3.8
Karnataka 63637
8
3.2
Goa 49232
2
2.5
Total of Top 10 States 1793771
8
89.9
Others 2013308 10.1
Total 1995102
6
100
Source: Government of India, Ministry of Tourism 2014
Table No3 indicates the share of 10 important states of India in respect of the
development of tourism industry. Maharashtra, Tamilnadu, Delhi and UP are the four most
important states which contributes 61.8% of foreign tourists arrival in 2013. Remaining states are
also important regarding foreign tourists visits. The share of these 10 states about 89.9% in total
tourists’ arrival in India.

8.  Indian Tourism Industry-A Global Scene
In 2006, India’s share was 1.16% of the world market travel and tourism market.
Further, the WTO has forecast the Travel & Tourism Industry in India to grow by 8% per
annum in real terms, between 2008 and 2014. Foreign exchange earnings from tourism
alone could show annualized faster growth during the same period. The government of India
has given inspiration to tourism industry since 1991. This industry has modernised the
facilities to be provided to the foreign tourists so since new economic policy India’s share in
international tourism market has increased. The share of India’s international Tourism
receipts in the world and Asia and Pacific region during the period of 1997 to 2013 is shown
in the Table No 4.
Table No 4: Share of India in International Tourism Receipts in
World and Asia & the Pacific Region, 1997-2013
International
Tourism
Receipt
(In US $ billion)
FEE in
India (In
US $
Million)
Percentage (%)
share and rank of
India in World
Percentage (%)
share and rank of
India in Asia and
the Pacific
Year
World
Asia and
the
Pacific
%
Share Rank
%
Share Rank
1997 442.8 82.6 2889 0.65 - 3.5 -
1998 444.8 72.3 2948 0.66 34th 4.08 -
1999 458.2 79.1 3009 0.66 35th 3.8 -
2000 475.3 85.3 3460 0.73 36th 4.06 10th
2001 463.8 88.1 3198 0.69 36th 3.63 12th
20.83%
20.00%
11.54%
10.30%
7.20%
6.24%
4.30%
3.84%
3.19%
2.47% 10.09%
Fig 3 : Foreign Tourist Visit in 2013
Maharashtra
Tamil Nadu
Delhi
Uttar Pradesh
Rajasthan
West Bengal
Kerala
Bihar
Karnataka
Goa
Others

9. 2002 481.9 96.5 3103 0.64 37th 3.22 13th
2003 529.3 93.7 4463 0.84 37th 4.76 9th
2004 633.2 124.1 6170 0.97 26th 4.97 8th
2005 679.6 135 7493 1.1 22nd 5.55 7th
2006 744 156.9 8634 1.16 22nd 5.5 7th
2007 857 187 10729 1.25 22nd 5.74 6th
2008 939 208.6 11832 1.26 22nd 5.67 6th
2009 853 204.2 11136 1.31 20th 5.45 7th
2010 931 255.3 14193 1.52 17th 5.56 7th
2011 1042 289.4 16564 1.59 17th 5.72 8th
2012 1078 329.1 17737 1.65 16th 5.39 7th
2013 1159 358.9 18445 1.59 16th 5.14 8th
Source: (i) UNWTO Tourism Market Trends 2007 Edition, for the ears upto 2005
(ii) UNWTO Barometer June 2009 for 2006 & 2007
(iii) UNWTO Tourism Highlights 2011 Edition for 2008 and 2012 Edition or 2009 .
(iv) UNWTO Barometer April 2014 for 2010, 2011 , 2012 & 2013
 Major Findings and Suggestions
Tourism industry has been developed in India after post reform period. The study of
this industry reveals the situation of foreign tourists’ arrivals in India during the period of
1997 to 2013. The trends and major findings of this paper are as follows;
1. There are 10 important states in India where foreign tourists visits. They are of
Maharashtra, Tamil Nadu, Delhi, UP, Rajstan, West Bengal, Kerala, Bihar, Karnataka
and Goa.
2. The share of top ten states in India in respect of foreign tourists’ visits was 89.9 percent
in 2013.
3. India’s share in the world market of traval and tourism has also increased from .65%
to 1.59% during the period of 1997 to 2013.
4. One of the important features of the progress in India’s rank in the world has also
developed from 40th
rank to 16th
rank.
5. We also observed that the share and rank of India’s tourism sector towards asia and
pacific countries has reached up to the 8th
rank
6. The Central Government and state governments has announced ourism policy time to
time for the improvement of tourism sector in India.
7. National tourism policy 2002 has given different facilities and recommandations for
the development of tourism sector.

10. 8. The different study on tourism sector reveals the need of changes to be made for the
development of traval and tourism sector.
9. The studies conducted by the researchers reveals that the facilities to be provided by
the government to these centers
10. Recent study conducted in 2014 focused on the major issues related to the
development of tourism industry and enahancing the foreign capital to India.
11. The central and state governments should provide qualified personels and related
facilities to develop tourism sector in India.
12. It is necessary to arrenge training programme by the human resource ministry to
develop the manpower involved in the tourism sector.
Referances
1. Ashish Nag (2013). A Study of Tourism Industry of Himachal Pradesh With Special Reference to
Ecotourism, Asia Pacific Journal ofMarketing & Management Review, Vol.2 (4), April(2013)
2. Archana Bhatia (2013). SWOT Analysis of Indian tourism Industry, International Journal of
Application or Innovation in Engineering & Management (IJAIEM), Volume 2, Issue 12,
December 2013
3. Shalini N. Tripathi & Masood H. Siddiqui (2010). An empirical study of tourist preferences using
conjoint analysis, Int. Journal of Business Science and Applied Management, Volume 5, Issue 2,
2010
4. Anushree Banerjee (2014). Human Resource Development in Tourism Industry in India: a Case
Study of Jet Airways India Ltd. Journal of Tourism: A Contemporary Perspective, Vol 1(1), 1–6,
January 2014
5. Lok Sabha Secretariat (2013) Tourism Sector in India,
http://164.100.47.134/intranet/TourismSectrinIndia.pdf
6. Annual Report of Ministry of Tourism 2013-14
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