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Survey of Foreign Tourists’ Expenses on Handicrafts




Survey of Foreign Tourists’ Expenses on
              Handicrafts




               Ministry of Touriism & Cullture
               Ministry of Tour sm & Cu ture
                     Government of Indiia
                     Government of Ind a




                                  October 2002



                         Economiic Serviices Group
                         Econom c Serv ces Group
        National Productiiviity Counciill
        National Product v ty Counc
     Lodhii Road,, New Dellhii - 110003
     Lodh Road New De h - 110003




National Productivity Council, Lodhi Road, New Delhi- 110 003    Page- 1
Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts




                                        CONTENTS

Acknowledgement                                                          ii
Study Team                                                              iii
Executive Summary                                                   iv - v
List of Tables                                                          vi
      List of Figures                                                  vii


                                                                 Page No


Chapter I                         About the Survey                       1

Chapter II                        Profile of Foreign                     9
                                  Tourists
Chapter III                       Expenditure Pattern                  15
                                  of Foreign Tourists

Chapter IV                        Macro Economic                       48
                                  Implications

Annexure                                                               53




National Productivity Council, Lodhi Road, New Delhi- 110 003      Page- 2
Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts




                                      ACKNOWLEDGEMENT

The National Productivity Council (NPC) is grateful to the Department of Tourism,
Ministry of Tourism and Culture, Government of India for entrusting NPC with the
responsibility to carry out the Survey on Foreign Tourists’ Expenses on Handicrafts.
We are thankful to Shri Amitabh Kant, Joint Secretary, Shri J. Dash, Joint DG (MR)
and Shri D. D. Mathur , Dy. Director (MR) of Ministry of Tourism & Culture for their
continuous encouragement during the conduct of the survey. We are also thankful to
the officials of Airports Authority of India and Bureau of Civil Aviation Security for
granting permission to carry out the survey inside the international airports at New
Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad.

We also record our thanks to the Central Cottage Industries Emporium as well as
emporia run by various state governments in the six cities mentioned above for their
kind co-operation in the smooth conduct of the survey. A large number of star hotels
had helped us by allowing the survey team to contact foreign guests (tourists) at the
exit lobbies. We are thankful to the managements of all these hotels.

Lastly, a number of colleagues from NPC’s regional offices in New Delhi, Mumbai,
Chennai, Kolkata, Bangalore and Hyderabad were involved in this task and without
whose co-operation the survey could have not been completed within the short time
at the team’s disposal. We are thankful to them.




New Delhi                                                           Dr. N. K. Nair
19th Dec., 2002                                       Group Head (Economic Services)




                                          STUDY TEAM

                                 Core Members
                                           N. K. Nair
                                 Group Head (Economic Services)




National Productivity Council, Lodhi Road, New Delhi- 110 003                          Page- 3
Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts


                                              K. P. Sunny
                                   Dy. Director (Economic Services)

                                         Utpal Chattopadhyay
                                   Dy. Director (Economic Services)

                                             Rajesh Sund
                                  Asst. Director (Economic Services)

                                                D. J. Rao
                                   Asst. Director (Economic Services)


                                      Survey Team
New Delhi                              Mumbai                       Kolkata

 K. P. S. Tomer, Dy. Director          O. P. Joshi, Director        S. Pal, Director
 Rajesh Bajaj, Dy. Director            M. Ashok, Dy. Director       P. Chakraborty, Dy. Director
 S. K. Dwivedi, Asst. Director         B. Badole, Asst. Director    S. Mallick, Dy. Director
 D. Bandyopadhyay, Asst.                                            Gautam Roy, Dy. Director
 Director
 M. Natarajan, Asst. Director          Chennai                      Bangalore
 S. Dey, Asst. Director                S. Sivakumar, Dy. Director   V. Rajesh Dy. Director
                                       R. Rajhamany, Trg. Officer   A.Muguntharagan,
                                                                    Asst. Director
 Hyderabad
 G. Hema, Dy. Director




  Executive Summary


  The Ministry of Tourism & Culture, Government of India assigned National Productivity
  Council (NPC) to carry out a Survey of Foreign Tourists’ Expenses on Handicrafts in India.
  The main objective of the survey was to find out how much the visiting foreign tourists spend
  on handicrafts (total & item-wise) while they stayed in India. The ultimate aim of this task
  was to construct the Craft/ Tourism Index (defined as per tourist per day expenditure on
  handicrafts) for India as suggested by the UNESCO.


  The field level survey was launched by NPC during Sept. – Oct., 2002 in six major cities of
  India viz. New Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad. These cities act
  as the major arrival and exit points for an overwhelming majority of the foreign tourists
  visiting India. The foreign tourists leaving India through these six cities were approached
  with a structured questionnaire to gather information on their spending on handicraft items.



  National Productivity Council, Lodhi Road, New Delhi- 110 003                        Page- 4
  Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts


About 47% of the total respondents were interviewed at the departure lounges of
international airports and another 28% from the star hotels. The remaining (25%) tourists
were contacted at the handicraft emporia/shops. Only those tourists who had completed
their purchases from India were interviewed. The purchases on behalf of the companies the
tourist(s) work are not considered in the survey. A total of 12,250 foreign tourists from the six
cities were interviewed.

Following are the major findings of the Survey:

        Respondent tourists from about 100 nations had visited India during the Survey.
        Among the tourists contacted during the survey, 58% are males and 42% females.
        About 70% of the respondents are in the age group 25-44 years. A large number of
        respondents (36%) are in business and more than one fourth (27%) are in service,
        while 10% are students. Income wise, 43% of the respondents belonged to ‘more
        than average’ category and another 32% were ‘average’. Only 3% of the respondent
        tourists had ‘very high’ income level and 2% belonged to the ‘below average’
        category. As observed in the survey, the highest inflow of tourists was from USA
        (11%), followed by UK (10%), France (7%), Japan (7%), Germany (6%) and
        Australia (5%).


        The average duration of stay by a respondent foreign tourist is 20 days. The student
        tourists and tourists below 25 years of age had spent the highest number of days.
        Tourists with very high income stayed for the shortest duration.

        According to survey findings, on an average a foreign tourist spends about Rs.
        12,187 on handicrafts. The female tourists spent more than their male counterparts.
        Income level of the respondent tourists has a direct relationship with expenditure.
        Profession wise business persons are spending more on handicrafts than the others.

        Silk is the most bought (value) item among the handicrafts, as 23% of the total
        expenditure was on this product alone. Other handicraft items of high values bought
        by respondent tourists include metal & jewellery, cotton & wool textiles and leather
        products.

        In terms of per capita daily expenditure the expenses on handicrafts had shown an
        increasing trend among tourists aged between 25 and 54 years and it declined there
        after. The UNESCO’s Craft/ Tourism Index is found to be Rs. 609 ( about US $ 13).

        Majority of the purchases were made using Indian Rupee. A sizeable number had
        used US Dollar and credit cards to finance handicraft purchases. The usage of Euro
        outnumbered Pound Sterling. Americans as a group spent the highest amount on



National Productivity Council, Lodhi Road, New Delhi- 110 003                        Page- 5
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Survey of Foreign Tourists’ Expenses on Handicrafts


        handicrafts, contributing 18% of the total expenses. Tourists from UK, France,
        Australia, Germany, Canada etc. had also spent significant amounts on handicrafts
        in India. These are also among the major export destinations for Indian handicrafts.

        Total expenditure on handicrafts by all the foreign tourists has been estimated at Rs.
        29,851.54 million in 2001, which constitutes about 18% of the total value of
        production of handicraft items in India in 2001-02. This also forms approximately
        44% of the total handicrafts exports (excluding hand knotted carpets) from India
        during the year 2001-02. The amount spent on handicrafts by foreign tourists can be
        considered as deemed export of handicrafts.




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Survey of Foreign Tourists’ Expenses on Handicrafts


                                                   List of Tables                                     Pag
    Table No.                                           Title                                         e
                                                                                                      No.
     Table 1.1     City and location wise Distribution of Survey Tourists                             4
     Table 2.1     Age & Sex Profile of Foreign Tourists contacted during the Survey                  9
     Table 2.2     Distribution of Respondents acc. to Profession                                     10
     Table 2.3     Distribution of Respondents acc. to Income                                         11
     Table 2.4     Distribution of Respondents acc. to Days of Stay in India                          12
     Table 2.5     Distribution of Respondents acc. to Country of Origin                              13
     Table 3.1     Distribution of tourists (%) acc. to number of days stayed and age                 25
     Table 3.2     Distribution of tourists (%) acc. to number of days stayed and sex                 26
     Table 3.3     Distribution of tourists (%) acc. to number of days stayed and profession          27
     Table 3.4     Distribution of tourists (%) acc. to number of days stayed and income              28
     Table 3.5     Distribution of tourists (%) acc. to number of days stayed and city of exit        29
     Table 3.6     Total expenditure on handicrafts by Respondents                                    30




Table 3.7    Item wise total expenditure on handicrafts by Respondents                           31
Table 3.8    Distribution of Respondents (%) acc. to total expenditure and age                   32
Table 3.9    Distribution of Respondents (%) acc. to total expenditure and sex                   33
Table 3.10   Distribution of Respondents (%) acc. to total expenditure and profession            34
Table 3.11   Distribution of Respondents (%) acc. to total expenditure and income                35
Table 3.12   Distribution of Respondents (%) acc. to total expenditure and city of exit          36
Table 3.13   Distribution of Respondents acc. to per capita exp. & no. of days stayed            37
Table 3.14   Distribution of Respondents acc. to per capita daily exp. on handicrafts            38
Table 3.15   Distribution of Respondents (%) acc. to per capita daily expenditure and age        39
Table 3.16   Distribution of Respondents (%) acc. to per capita daily expenditure and sex        40
Table 3.17   Distribution of Respondents (%) acc. to per capita daily expenditure &              41
             profession pprofessionprofession
Table 3.18   Distribution of Respondents (%) acc. to per capita daily expenditure and            42
             income
Table 3.19   Distribution of Respondents (%) acc. to per capita daily exp. & city of exit        43
Table 3.20   Total expenditure on handicrafts acc. to nationality of respondents                 44
Table 3.21   Top ten spending nations on Indian handicrafts                                      45
Table 3.22   Country wise product wise expenditure on handicrafts by respondents                 46
Table 3.23   Currencies used by respondents for purchase of handicraft products                  47
Table 4.1    Movement of WPI: Oct. 2001 to Oct. 2002                                             49
Table 4.2    Estimate of total expenditure on handicrafts by foreign tourists                    50
Table 4.3    Turnover of Indian handicrafts industry                                             51
Table 4.4    Exports of handicrafts from India: 1992-93 to 2001-02 (Rs. Crores)                  52




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Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts




                                                 List of Figures                                 Pag
  Figure No.                                          Title                                      e
                                                                                                 No.


  Figure 1        Distribution survey respondents based on place of Interview                    5
  Figure 2        Distribution respondents based on City                                         6
  Figure 3        Distribution of tourists based on Profession                                   10
  Figure 4        Distribution of tourists based on Country of Origin (top ten countries)        14
  Figure 5        Distribution of respondents based on per capita Expenditure class              19
  Figure 6        Per Capita Daily Expenditure and Age                                           20
  Figure 7        Per Capita Daily Expenditure and Profession                                    21
  Figure 8        Per Capita Daily Expenditure and Family Income                                 22




National Productivity Council, Lodhi Road, New Delhi- 110 003                               Page- 8
Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts


                                             CHAPTER I

                                      ABOUT THE SURVEY

1.      Background

India draws more than 2.5 million foreign tourists annually. The primary factor that
motivates majority of the foreign tourists to visit India is the country’s bountiful
nature, snow-covered mountains in the Himalayas, colorful deserts in Rajasthan,
beautiful beaches in Goa, Kerala and Orissa and tropical lush green forests spread
far and wide in most parts of the country. Beside the nature, the country’s rich
cultural heritage has been a tremendous attraction to a large number of foreign
visitors. The diversity in climate, religion, language and traditions has always been a
matter of curiosity for the people of other countries.           So are India’s exquisite
handloom and handicraft products, which are admired by the foreign tourists.
Purchase of Indian handicrafts is therefore a common practice generally noticed
among the visiting foreigners.

The handicrafts industry in India occupies an important place in the national
economic scene. Firstly, the sector provides direct and indirect employment to a
large number of persons like the artisans and also those who are engaged in the
supply of inputs and in trading. According to an estimate, handicrafts industry
currently employs more than 76 lakh persons in India. Besides high employment
potential, the significant contributions of the sector are felt in terms of high value
addition from a relatively low capital investment and a steady source of foreign
exchange earnings. Available data from Export Promotion Council for Handicrafts
show, in 2001-02, total exports of handicrafts (excluding handknotted carpets) from
India stood at Rs.6769.50 crores. The economic importance of handicrafts sector is
also evident from the huge size of this industry. Turnover of the handicrafts industry,
as estimated by Development Commissioner for Handicrafts, is in the range of Rs.
16,320 crores in 2001-02.




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Survey of Foreign Tourists’ Expenses on Handicrafts


In this background the Department of Tourism, Government of India, had assigned
National Productivity Council (NPC) to carry out a survey of foreign tourists in order
to find how much the tourists spend on handicrafts during their stay in India. The
ultimate outcome of the survey is to facilitate construction of the Craft/ Tourism Index
for India as has been suggested by the UNESCO. The Index would find the
expenses on crafts per tourist per day (in US $) of the foreign visitors to India. The
present report from NPC is the result of the above mentioned survey of foreign
tourists.

2.       Objectives of the Study

         To identify the handicraft products/ items purchased by foreign tourists

         To find out the total expenditure incurred by foreign tourists on handicraft
         products during their stay in India

         To find the currencies used for the purchase of such items

         To find country of origin, age & sex profile, occupation and family income of
         the foreign tourists

         To construct the UNESCO Crafts/ Tourism Index for India


3.       Methodology

The survey used the same definition of foreign tourists followed by the Department
of Tourism, Govt. of India while compiling tourist statistics.         According to this
definition a foreign tourist is a person visiting India on a foreign passport, staying at
least 24 hours in the country for the purpose of (i) leisure (recreation, holiday, health,
study, religion and sport); (ii) business, family, mission and meeting. Transit
passengers not staying at least a day in India were not covered by the survey.
Similarly, minor children accompanying the adult family members (foreign tourists)
were not considered for the survey. NRIs were also excluded from the scope of the
survey




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Survey of Foreign Tourists’ Expenses on Handicrafts


The foreign tourists visiting India were interviewed from three places viz. (i)
international airports, (ii) hotels and (iii) shopping complexes, particularly the
handicrafts emporia and similar establishments selling handicraft items. As
mentioned at the outset, India receives about 2.5 million foreign tourists every year.
Keeping in view the time and cost constraints of the survey, it was decided that
about 0.5% of the total foreign tourists coming to India annually i.e. approximately
12,000 tourists would be interviewed.               A large number of foreign tourists were
approached randomly from the above three places for data collection through a
structured questionnaire. The questionnaire sought information mainly on tourists’
purchase of handicraft items (quantity & value) during their stay in India apart from
some personal data on tourists like the country of origin, age, sex, income etc. The
business purchases, defined as purchases on behalf of companies they represent
were excluded. A copy of the questionnaire used for canvassing during the field
survey is appended in Annexure. It is important to note that the purchases of items
by the tourists were not necessarily from the city in which they were contacted. This
is especially the case in regard to those who were contacted at the international
airports. The items might include those which were bought during their travel
anywhere in the country including the major handicrafts centers.


3.1     Field Survey

During the field survey about 12,250 foreign tourists were interviewed by the NPC
survey team, against the target of 12,000. The survey was conducted during Sept.
11 – Oct. 25, 2002, simultaneously in six major cities of India namely New Delhi,
Mumbai, Chennai, Kolkata, Bangalore and Hyderabad.                  About 47% of the total
contacts were made in the international airports of the six cities mentioned above,
while the remaining interviews were held in the hotels (28%) and shops/ emporia
(25%) (Fig.1). In the airports the tourists were interviewed at the departure lounges
and in hotels the contacts were at check-out points. In the handicraft emporia and
other shops selling handicraft products only those foreign tourists were interviewed
whose departure from India was scheduled within the next twenty-four hours. In all



National Productivity Council, Lodhi Road, New Delhi- 110 003                    Page- 11
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Survey of Foreign Tourists’ Expenses on Handicrafts


the cases, first it was ascertained whether the tourist’s purchase of handicrafts was
complete and data were gathered only from those who had completed purchase
from India. The distribution of respondents across the cities (Fig. 2) and the place of
contact are given in Table 1.1.

        Table1.1: City & Location wise Distribution of Survey Respondents


                    Airports                 Hotels              Shops/Emporia          Total
    City
                         Achieve-        Achieve-        Achieve-        Achieve-
               Target             Target          Target          Target
                          ment            ment            ment            ment

New Delhi       2400       2399       1200        1709           1200   1250     4800       5358

Mumbai          1800       1826        900         883           900     903     3600       3612

Chennai          960        962        480         427           480     407     1920       1796

Kolkata          420        185        210         200           210     220      840        605

Bangalore        240        267        120         124           120     128      480        519

Hyderabad        180        158         90         102            90     100      360        360

Total           6000       5797       3000        3445           3000   3008     12000      12250




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Survey of Foreign Tourists’ Expenses on Handicrafts




          Figure 1: Distribution of Survey Respondents based on
                              Place of Interview




                 Market
                  25%
                                                                 Airports
                                                                  47%


                   Hotels
                    28%




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Survey of Foreign Tourists’ Expenses on Handicrafts




                    Figure 2: Distribution of Respondents
                                based on City



                             Bangalore                  Hyderabad
                                4%                         3%
               Kolkata
                                                                    New Delhi
                 5%
                                                                      44%


Chennai
 15%




               Mumbai
                29%




 National Productivity Council, Lodhi Road, New Delhi- 110 003            Page- 14
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Survey of Foreign Tourists’ Expenses on Handicrafts


There have been some minor variations in the number of tourists responding to the
survey among the cities as well as across places of contact when compared to the
targets set. While in Delhi, Mumbai and Bangalore the total number of respondents
exceeded the targets, in two of the remaining cities, viz. Chennai and Kolkata the
achievement fell short of their respective targets. In Hyderabad, however, the survey
team could achieve the targets. Similarly, the number of contacts inside airports fell
marginally below its target, which was fixed at 50% of the total. That the inflow of
foreign tourists during the period of survey was found to be less than expected in
some of the cities was the main reason for not mustering the required number in
these places.

3.2     Data Analysis

Data collected through the structured questionnaire were scrutinized thoroughly
before being entered into computer systems. Such data were once again checked to
detect possible entry errors. Finally, corrected data were analyzed by computers
using Microsoft Excel and SPSS packages.

4.      Limitations

Progress of the survey was affected adversely by a number of factors, most of which
are beyond the control of the survey team. Firstly, the survey was conducted during
middle of Sept. and October, which is generally considered to be a lean season in
India for foreign tourists. The inflow of foreign tourists was further low on account of
the anticipated disturbances during the anniversary of the Eleventh Sept. incident in
New York. The disturbance in Karnataka as a sequel to abduction of a political
leader by the notorious sandal wood smuggler and subsequently the Cauvery
disputes affected tourist inflow to Bangalore unfavorably. As a result, contacts with
adequate number of tourists in Southern locations where, interviews were held, were
unfavorably affected leading to delays in the completion of the survey.




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Survey of Foreign Tourists’ Expenses on Handicrafts


Secondly and perhaps most importantly was the delay in the procurement of entry
passes for airports. As per plan, 50% of the total contacts were scheduled to be
made in the departure lounges of international airports. The international airports
being high security zones, issue of entry passes involved procedures and scrutiny by
the Airports Authority of India. Therefore, the survey team had to wait for some time
after completing its job in the shops and hotels. The permission to carry out the
survey inside airports was granted only for one week, which was short considering
the large number of tourists to be interviewed, particularly in places like Delhi and
Mumbai.


Finally, the availability of foreign tourists for interview was constrained by the time at
their disposal, compatibility of language and also willingness to co-operate by the
tourists. All tourists contacted by the team did not agree for the interview for a variety
of reasons. Some of the tourists contacted during the survey though provided total
expenses on handicrafts, could not recollect its item wise break -ups. All these made
the task of the investigation difficult and also delayed the completion of survey by a
few days.




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Survey of Foreign Tourists’ Expenses on Handicrafts




                                              CHAPTER II

                              PROFILE OF FOREIGN TOURISTS


As mentioned in the earlier chapter the Survey had covered a total of 12250 foreign
tourists from six cities. Among these, 7145 (58%) were males and the remaining
5105 (42%) were females. The age distribution of the respondent tourists displays a
skewed pattern with more than 70% of them falling in the range of 25-44 years of
age.    Table 2.1 shows the age and sex distribution of the foreign tourists contacted
during the survey.


Table 2.1 : Age & Sex Profile of Foreign Tourists Contacted during the Survey


                                     No. of respondents               Total
                 Age (Years)          Male      Female            No.    Percent
                Less than 25            535           602        1137     9.28
                25-34                  2090           2025       4115     33.59
                35-44                  2997           1724       4721     38.54
                45-54                  1192           530        1722     14.06
                55-64                   268           164         432     3.53
                65 & above               63            60         123     1.00
                Total                  7145           5105       12250   100.00




The visiting tourists were asked about their professions. It was found that a large
number of respondents (36%) are business men/women. While 27% of them are in
service, more than 10% are found to be students. The break up of professions of the
foreign tourists interviewed during survey is given in table 2.2 (Fig. 3).




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Survey of Foreign Tourists’ Expenses on Handicrafts


                Table 2.2: Distribution of Respondents According to Profession.


                                               No. of            Percentage of
                     Profession
                                          Respondents            Respondents
                  Service                             3361                  27.44
                  Business                            4456                  36.38
                  Industry                              850                     6.94
                  Agriculture                           150                     1.22
                  Students                            1247                  10.18
                  Others                              2186                  17.84
                  Total                             12250                  100.00



                                Figure 3: Distribution of
                            Respondents based on Profession

                          18%
                                                   28%
                                                                  Service
                                                                  Business
                    10%
                                                                  Industry
                     1%                                           Agriculture
                       7%                                         Students
                                                                  Others
                                            36%



The respondent foreign tourists were also arranged according to their income levels.
Income, being a highly personal and hence very sensitive information, the tourists
were asked to categorize themselves in to Below Average, Average, More than
Average, High and Very High. Since no uniform norm can be applied to all the
countries having widely varying per capita GDP, the information on income was
collected according to the respondent’s own judgment with respect to his/her own
country’s situation. It was observed that among the foreign tourists interviewed, the



National Productivity Council, Lodhi Road, New Delhi- 110 003                          Page- 18
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Survey of Foreign Tourists’ Expenses on Handicrafts


highest number (43%) was from the ‘more than average’ category. More than 3960
(about 32%) respondent tourists reported that they had only               ‘average’ income.
About 20% of the them were from the ‘high’ income category. Only 2% of the
respondents had ‘below average’ income and about 3% belonged to the ‘very high’
income category (Table 2.3).


                Table 2.3 : Distribution of Respondents According to Income


                                                  No. of    Percent of
                      Income Group             Respondents Respondents

                    Below Average                     271         2.21
                    Average                          3962        32.34
                    More than Average                5240        42.78
                    High                             2458        20.07
                    Very High                         319         2.60
                    Total                           12250        100.00




It was found that about 33% of the foreign tourists responding to the survey had
spent a week or less in India and another 27% had stayed for periods ranging
between 8 days and two weeks. About 28% of the visiting foreigners had spent
between 15 days and one month. Only 10% of the respondents had stayed beyond
one month and up to 90 days, while about 2% had spent above 90 days. Detailed
information on the number of days spent by foreign tourists is presented in table 2.4.




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Table 2.4 : Distribution of Respondents According to Days of Stay in India


                        Days                  No. of              Percent of
                     Stayed (No.)          Respondents           Respondents
                    1-2                        439                   3.58
                    3-7                          3638               29.70
                    8-14                         3279               26.77
                    15-20                        2017               16.46
                    21-30                        1469               11.99
                    31-45                        692                5.65
                    46-90                        496                4.05
                    91-180                       137                1.12
                    181 & above                   83                0.68
                    Total                       12250              100.00




The respondent tourists were asked about his/her country of origin. It was observed
during the survey that India respondent tourists came from a large number of
countries spread almost in all the continents. During the 45 days of survey it was
found that foreigners from more than 100 countries had visited India. The maximum
inflow of tourists, as observed in the survey, was from USA (10.87%), followed by
UK (9.98%), France (7.40%), Japan (6.91%), Germany (6.00%) and Australia
(5.03%). The names of the countries and the number of foreigners coming from
those countries are given in Table 2.5 (Fig. 4).




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Survey of Foreign Tourists’ Expenses on Handicrafts




     Table 2.5 : Distribution of Respondents According to Country of Origin


                                                                       Foreign
                               Foreign Tourists
               Country                                     Country     Tourists

                                 No.        % age                     No.   % age
           USA                  1331        10.87     Nepal           127   1.04
           UK                   1223         9.98     New Zealand     120   0.98
           France                907         7.40     Denmark         120   0.98
           Japan                 846         6.91     Belgium         117   0.96
           Germany               735         6.00     Nigeria         103   0.84
           Australia             616         5.03     Kenya           99    0.81
           Sri Lanka             568         4.64     Ireland         98    0.80
           Italy                 454         3.71     Sweden          98    0.80
           Singapore             381         3.11     Taiwan          88    0.72
           Korea                 347         2.83     Bangladesh      80    0.65
           Spain                 265         2.16     Poland          76    0.62
           Canada                257         2.10     Finland         73    0.60
           Malaysia              250         2.04     Norway          72    0.59
           Netherlands           243         1.98     Brazil          61    0.50
           China                 242         1.98     Philippines     58    0.47
           Russia                228         1.86     Hong Kong       54    0.44
           Switzerland           208         1.70     Saudi Arabia    50    0.41
           South Africa          185         1.51     Mexico          49    0.40
           Thailand              176         1.44     Mauritius       48    0.39
           UAE                   175         1.43     Iran            47    0.38
           Israel                142         1.16     Austria         45    0.37
           Indonesia             129         1.05     Others          659   5.38
           Total                                                     12250 100.00




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Survey of Foreign Tourists’ Expenses on Handicrafts




                           Figure 4: Distribution of Respondents based
                             on Country of Origin (Top Ten Countries)
                            Korea        347

                        Singapore        381

                             Italy        454

                        Sri Lanka              568
    Country of Origin




                         Australia             616

                         Germany                 735

                           Japan                     846

                           France                     907

                              UK                              1223

                             USA                                1331

                                     0   200         400      600      800   1000   1200    1400
                                                           Number of Tourists




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Survey of Foreign Tourists’ Expenses on Handicrafts


                                            CHAPTER III

                   EXPENDITURE PATTERN OF FOREIGN TOURISTS


During the survey the concentration was on to collect information regarding
spending on handicraft items by the visiting foreign tourists during their stay in India.
The information sought from the foreign tourists included number of items bought,
amount spent on a variety of handcraft products etc. For smooth data collection and
analysis handicraft items were grouped into 12 major heads viz. textiles, clay,
bamboo/rattan, wood, metal & jewelry, natural fiber, leather, paper & paper products,
glass, local raw materials, mixture of raw materials and others. The textiles
comprised silk, cotton, wool and others. As mentioned earlier, the company or
business purchases of the foreign tourists were not considered for data collection
and analysis.


In this chapter the expenditure by foreign tourists on handicrafts would be examined
with respect to a number of determinants such as the age, sex, profession, income,
city of exit and duration of stay. The total as well as per capita daily expenditure
incurred by the tourists on handicrafts are worked out separately and arranged
according to the determinants mentioned above so as to examine their influence, if
any, on the expenditure patterns. The duration of stay by the tourists is also
examined with respect to age, sex, profession, income and city of exit.


3.1     Period of Stay in India


The information on number of days stayed by the tourists according to their age,
sex, profession, income etc. are presented in tables 3.1-3.5. The following may be
observed:


        On an average a respondent tourist had spent about 20 days in India.




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        The highest number of days is spent by respondent tourists below 25 years of
        age, while for those belonging to 35-44 years category the duration of stay in
        India is the lowest (17 days). Tourists in the age group 55-64 years stayed for
        about 25 days.


        The duration of stay in India was marginally higher for female tourists (20.33
        days) compared to their male counterparts (19.92 days).


        The student tourists spend more days (34) than the others. The agriculturists
        and industrialists had stayed in India for longer duration compared to
        businessmen and from service sectors.


         The income level of the respondent tourists and their stay duration are seen
        to have inverse relationship. Tourists having ‘below average’ income had on
        an average spent the highest number of days (33), while the tourists from
        ‘very high’ income category stayed for lower number of days (17). Most of the
        ‘below average’ category of respondents are the students. Since India’s is
        one of the lowest cost of living by world standards, even the ‘below average’
        income tourist (according to the income standards in his country) will be able
        to afford a comfortable stay in the country.


3.2     Total Expenditure by Tourists


Total expenditure on handicrafts varied widely across the categories of tourists.
While 426 (3.48%) tourists did not buy any handicraft item, about 811 (6.63%) had
spent over Rs. 25,000 on various handcraft items during their stay in India. The
modal expenditure class is found to be Rs. 2,001 -5,000. About one fifth of the total
tourists interviewed during the survey had incurred total expenditure exclusively on
handicraft items beyond Rs. 5,000 and up to Rs. 10,000. A small percentage
(1.44%) of the tourists had bought handicrafts worth Rs. one lakh or more (Table




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Survey of Foreign Tourists’ Expenses on Handicrafts


3.6). Collectively 12250 respondent tourists had spent a total of Rs. 149.30 million
on handicrafts during their stay in India. The per capita expenditure is found to be
Rs. 12,187.


3.3     Item-wise Expenditure


Item wise spending also displays large variance. Among the 12 groups of
handicrafts listed earlier, the highest spending was on silk products (23.13%),
followed by metal & jewelry (19.97%), cotton textiles (15.75%), wool textiles (6.19%)
and leather products ( 5.75%). There was low spending on items like natural fiber
(0.43%), glass (0.60%), bamboo products (0.64%) and mixture of items (0.89%).
The detailed data on handicraft items and the amount spent on those items by
foreign tourists are given in Table 3.7. The data presented in this table do not relate
to all the tourists interviewed during the survey, since about 1000 respondents could
not provide item wise break-up of their expenditure even though they could give the
total expenses on handicrafts.


3.4      Average Expenditure Per Tourist


Tables 3.8 – 3.13 present per capita expenditure incurred by foreign tourists
arranged according to the age, sex, profession, income, number of days stayed and
city of exit. The following may be noted:


        Per capita expenditure per respondent tourist is the highest in the age group
        45-54 years (Rs.16333), followed by the age group 35-44 years (Rs.12686)
        and 25-34 years (Rs.11655). Per capita expenditure was the lowest in the
        age group 65 and above.


        Female tourists spend (Rs.12897) more than their male counterparts
        (Rs.11680).




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          Business tourists spend the highest on handicrafts (Rs.17392) among all
          categories of respondents. Industrial categories of tourists spend much less
          (Rs.11703), followed by agricultural tourists (Rs.9978) and tourists from
          service category (Rs.9902).                As expected student tourists incur an
          expenditure only of Rs. 4893 on handicrafts in per capita terms.


          Per capita expenditure is directly related to income categories. While those in
          the ‘below average’ income bracket incurred an expenditure of Rs.6472, ‘high’
          and ‘very high’ categories reported high levels of expenditure on handicrafts,
          between Rs. 18242 and Rs.33171.


          Per capita expenditure was found to be the highest among those who stayed
          beyond two weeks but up to three weeks (Rs.18755).


3.5       Per Capita Per Day Expenditure


As per the survey data, respondent tourists’ stay in India varied from one day to
more than six months. The purchases of handicraft items also varied widely, ranging
from zero to more than one lakh rupees. Table 3.14 presents per capita per day
expenditure by respondent tourists. It can be seen that 3673 tourists (30%) had
spent between Rs. 250 and Rs. 750 per day on handicraft products (Fig. 5). About
20% of them had spent above Rs. 100 and up to Rs. 250 and almost an equal
number (18%) spent between Rs. 750 and Rs. 2000 per day. More than 3% of the
tourists had incurred expenditure on handicrafts exceeding Rs. 5000 per day.
UNESCO’s Craft/ Tourism Index defined as expenses on handicrafts per foreign
tourist per day is found to be Rs. 609 (approx. US $ 13 1).




1
    Exchange Rate 1US$ = Rs. 48.30 as on Oct. 2002



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Survey of Foreign Tourists’ Expenses on Handicrafts



                         Figure 5: Distribution of Respondents based on Per
                                       capita Expenditure Class
  Number of Tourists


                       4000
                       3000
                       2000
                       1000
                          0




                                                  d.
                                                  0
                                                  0


                                                  0

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                                                00
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                                       50




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                                     25




                                       o
                                    75




                                    00




                                     N
                                  15
                                  20

                                 50
                                                  Expenditure Class



It would be worth to see whether the daily expenditure on handicrafts had varied
across age, sex, profession, income level of the respondent tourists. The information
on daily expenditure with respect to the above determinants is listed in tables 3.15 -
3.19 (also Figs. 6-8). The main findings, which are in conformity with the trend
observed in case of total expenditures, are as follows:


                        In all age categories the maximum number of respondent tourists belonged to
                        the daily expenditure class ranging between Rs. 250 and Rs. 750 per day,
                        except in the case of “less than 25” and “65 & above” slabs where people are
                        seen spending over Rs. 100 and up to Rs. 250 per day.


                        Daily expenditure had shown an increasing trend for tourists having age
                        between 25 and 54 years, after which it started declining.


                        Like total expenditure, the daily expenditure also increased with rise in the
                        income of the tourists.




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Survey of Foreign Tourists’ Expenses on Handicrafts


                             In terms of profession too, the tourists’ daily expenses on handicrafts
                             repeated the same trend as that of the total expenditure. Businessmen spent
                             the most, while students spent the least. Service professionals and
                             industrialists had spent almost same amount and it was higher than the
                             amount spent by agriculturists and others.




                                          Figure 6: Per Capita daily Expenditure and Age


                             900

                             800

                             700
    Daily Expenditure (Rs)




                             600

                             500

                             400

                             300

                             200

                             100

                               0
                                      >25         25-34        35-44      45-54       55-64        65 & >
                                                                  Age group




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Survey of Foreign Tourists’ Expenses on Handicrafts




                                    Figure 7: Per Capita Daily Expenditure and Profession


                             1200

                             1000
    Daily Expenditure (Rs)




                             800

                             600

                             400

                             200

                               0
                                    ce




                                                              ry




                                                                                                  s
                                                                          re



                                                                                       ts
                                               ss




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.



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Survey of Foreign Tourists’ Expenses on Handicrafts




                            Figure 8: Per Capita Daily Expenditure
                                      and Family Income

                          2500
    Daily Expences (Rs)




                          2000

                          1500

                          1000

                           500

                             0
                                  Below Average              More      High         Very
                                 Average                     than                   High
                                                            Average
                                                       Family Income




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3.6     Nationality wise Expenditure

The survey data on expenses on handicrafts were organized according to the
nationality of the tourists. It was observed that US nationals have spent the highest
amount (Rs. 26.76 million) on Indian handicrafts and their combined expenditure
formed about 18% of the total expenditure on handicrafts by all the 12,250 visiting
foreign tourists interviewed during the survey. The other higher spenders include
nationals from U.K. (12%), France (8%), Australia (6%), Germany (5%), Canada
(4%) etc. Tourists from U.A.E., Italy, Japan and Switzerland reported a reasonably
high level of expenses with each country having a share of about 3% in total
expenditure. While for seven countries (Singapore, Sri Lanka, Netherlands, Nigeria,
South Africa, Ireland & Korea) the share in total expenses was 2% each, another
nine countries (Malaysia, Spain, China, Belgium, Denmark, Russia, Indonesia, New
Zealand & Saudi Arabia) had a share to the tune of 1%. Table 3.20 lists nationality
wise total as well as per capita expenditure on handicrafts by foreign tourists from 26
leading nations (each having a share of 1% or more in total expenses). According to
survey findings, these 26 countries collectively contributed more than 80% of both
the total expenses on handicrafts and total tourists inflow in India.


The expenditure pattern of foreign tourists discussed above is in conformity with the
trend in total export of handicrafts from India. It may be noted that during 2001-02,
USA was the major destination for Indian handicrafts exports with a share of 30% of
the total value (excluding hand knotted carpets). The other countries having
significant share in Indian handicrafts exports include UK (11%), Germany (10%),
France (5%), Italy (4%), Japan (4%), Canada (3%) and Australia (2%). As may be
noticed from table 3.21 these eight countries absorbing 69% of total handicraft
exports from India are the same nations whose citizens had contributed major part of
the total amount spent (59%) on handicraft products while on tour to India.




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In terms of per capita expenditure, however, the highest spenders on handicrafts are
found to be the tourists from UAE (Rs. 28,376), followed by Saudi Arabia (Rs.
26,955), Nigeria (Rs.25073), Ireland (Rs. 24687) and Canada (Rs. 21,204). The US
tourists who had the highest share (18%) in total expenses reported much less per
capita expenditure (6th rank). The Japanese tourist was seen to incur the least
expenses (Rs. 5249) on handicrafts. Tourists from ten nations (Indonesia, New
Zealand, Singapore, Malaysia, China, Spain, Russia, Korea, Sri Lanka & Japan) had
reported per capita expenditures, less than the average for all countries, Rs. 12,187
(table 3.20).

The product wise expenditures by foreign tourists from the same 26 nations are
presented in table 3.22. The data in this table represent the percentage(s) of the
total expenditure (on handicrafts) a respondent tourist spends on a particular item. It
can be seen from the table that silk, metal & jewelry, cotton textiles, leather products
and wool textiles remained the most bought handicraft items by the foreign tourists
visiting India irrespective of their country of origin. For tourists from South Africa,
Belgium, Sri Lanka, Nigeria and Italy silk alone contributed more than 30% of their
total expenditures on all handicrafts. The UAE tourists had a strong preference for
Indian cotton textiles as they incurred more than 60% of their total expenditure on
this item. Similarly, nationals from Switzerland and Nigeria also displayed preference
for cotton textile (handicraft) products from India. Metal & jewelry items were bought
in high values (forming 25% or more of the total purchase) by tourists from the
Netherlands (55%), Russia (34%), Canada (29%) and France (26%).

3.7     Currency Used
During the survey the foreign tourists were asked to provide information on currency
used by them while purchasing various handicraft items in India. The summary of
information on currency used is presented in table 3.23. It can be seen that, as
expected, Indian rupee (INR) was the main currency used by respondent tourists
while buying the handcraft products. The next frequently used currency was the US
dollar. In spite of being a relatively new currency Euro has outperformed Pound



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Sterling in almost all products. A significant number of tourists are also seen to use
credit cards at the time of purchase.




               Table 3.1 : Distribution of Tourists (%) acc. to Number of
                                       Days Stayed and Age


                                        Age category (Years)
   Days Stayed                                                                    Total
      (No.)                                                               65 &   (Nos.)
                       <25      25-34     35-44     45-54        55-64
                                                                         above
  1-2                  3.87     3.67       3.58      3.60        2.55    1.63     439

  3-7                 25.15 30.38         31.84     27.64        22.92   19.51   3638

  8-14                21.99 25.47         28.87     27.00        27.08   29.27   3279

  15-20               16.71 16.43         15.42     18.41        19.68   17.07   2017

  21-30               12.23 13.22         10.17     11.50        17.82   25.20   1469

  31-45                5.19     4.96       6.35      6.16        4.17    4.07     692

  46-90                8.97     4.01       2.99      3.89        4.40    1.63     496

  91-180               4.22     1.17       0.40      0.99        0.93    0.81     137

  181 & above          1.67     0.70       0.38      0.81        0.46    0.81     83

  Total (Nos.)        1137      4115      4721       1722        432     123     12250

  % to total           9.28     33.59     38.54     14.06        3.53    1.00    100.00

  Average               31        20        17        20          25      19      20




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              Table 3.2 : Distribution of Tourists (%) acc. to Number of
                                      Days Stayed and Sex


                     Days Stayed
                                         Male         Female     Total (Nos)
                        (No.)
                    1-2                   3.82           3.25       439
                    3-7                  31.25          27.52       3638
                    8-14                 26.79          26.74       3279
                    15-20                15.72          17.51       2017
                    21-30                11.49          12.69       1469
                    31-45                 5.23           6.23       692
                    46-90                 3.85           4.33       496
                    91-180                1.11           1.14       137
                    181 & above           0.74           0.59        83
                    Total (Nos.)         7145           5105       12250
                    % to total           58.33          41.67      100.00
                    Average              19.92          20.33      20.09




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               Table 3.3: Distribution of Tourists (%) acc. to Number of
                                  Days Stayed and Profession



   Days Stayed                        Profession                                      Total
      (No.)    Service Business Industry Agriculture Students             Others     (Nos.)

  1-2                  3.48       4.82        2.59         2.00   2.17     2.52       439

  3-7                 31.48      33.64       19.06        16.67   23.82   27.31      3638

  8-14                26.78      28.82       25.65        24.67   21.65   26.08      3279

  15-20               15.86      16.07       17.06        25.33   16.84   17.15      2017

  21-30               11.13       9.58       17.88        16.67   14.27   14.32      1469

  31-45                6.22       3.97       13.06         7.33   6.82     4.53       692

  46-90                3.84       2.45        3.29         4.00   8.18     5.58       496

  91-180               0.80       0.38        0.71         2.00   4.01     1.56       137

  181 & above          0.42       0.27        0.71         1.33   2.25     0.96        83

  Total (Nos.)         3361       4456        850          150    1247    2186       12250

  % to total          27.44      36.38        6.94         1.22   10.18   17.84     100.00

  Average               18         16          24           25     34      23          20




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               Table 3.4: Distribution of Tourists (%) acc. to Number of
                                    Days Stayed and Income


                                         Annual Family Income
   Days Stayed                                                                   Total
      (No.)             Below          More than                         Very    (Nos)
                               Average                           High
                       Average         Average                           High
  1-2                    3.69         3.28          3.49         4.56    1.25     439
  3-7                    19.19       28.02         31.37         30.96   22.26    3638
  8-14                   19.56       25.42         26.85         29.13   30.09    3279
  15-20                  15.87       17.26         15.90         15.87   21.00    2017
  21-30                  17.34       12.62         11.79         10.21   16.61    1469
  31-45                  8.49         6.61          5.08         4.96    5.96     692
  46-90                  7.75         4.29          4.26         3.01    2.51     496
  91-180                 6.64         1.67          0.73         0.57    0.31     137
  181 & above            1.48         0.83          0.53         0.73    0.00      83
  Total (Nos.)            271        3962          5240          2458    319     12250
  % to total             2.21        32.34         42.78         20.07   2.60    100.00
  Average                  33          22            19           18      17       20




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                Table 3.5: Distribution of Tourists (%) acc. to Number of
                                  Days Stayed and City of Exit



Days Stayed                                          City                          All India
   (No.)                                                                            (Nos.)
                   Delhi     Mumbai Chennai Kolkata Hyderabad Bangalore

1-2                 5.34       2.13        2.17        4.63       0.00    1.73        439

3-7                37.20       25.00       29.06      15.21       6.94    19.85      3638

8-14               23.89       31.89       25.28      18.68       14.44   43.93      3279

15-20              10.36       21.01       19.77      25.95       18.06   24.28      2017

21-30               9.63       13.18       13.47      16.03       29.17   6.36       1469

31-45               8.29       2.80        2.23        5.12       18.06   2.12        692

46-90               4.37       2.71        3.84        8.93       10.00   0.96        496

91-180              0.63       0.69        2.45        3.80       2.22    0.58        137

181 & above         0.30       0.58        1.73        1.65       1.11    0.19         83

Total (Nos.)       5358        3612        1796        605        360     519        12250

% to total         43.74       29.49       14.66       4.94       2.94    4.24      100.00

Average              17          19          27         31         32      15          20




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        Table 3.6: Total Expenditure on Handicrafts by Respondents


                Per Capita
                                   No. of                                  Average
             Expenditure. Class             Percent
                                Respondents                               Exp. (Rs.)
                   (Rs.)
             1- 500                            637                5.20       343
             501-1000                         1000                8.16       813
             1001-2000                        1735               14.16      1594
             2001-5000                        3335               27.22      3475
             5001-10000                       2454               20.03      7442
             10001-25000                      1852               15.12     15629
             25001-50000                       475                3.88     34319
             50001-100000                      160                1.31     71066
             100001 & above                    176                1.44     335410
             No spending                       426                3.48        0
             Total                           12250               100.00    12187




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         Table 3.7: Item wise Expenditure on Handicrafts by Respondents


                                                     Per
                                     Item wise              % to total     No.of Resp.
               Item                                 capita
                                     Exp. (Rs)                Exp.     incurred expenditure
                                                   Exp.(Rs)
Textiles
    Silk                     34534294 7409                       23.13       4661
   Cotton                    23506987 5321                       15.75       4418
   Wool                       9239398 5250                        6.19       1760
   Others                     5809262 4563                        3.89       1273
Clay                          2377445  1570                       1.59       1514
Bamboo                         953170  1418                       0.64        672
Wood                          5768142 2091                        3.86       2759
Metal & Jewellery            29807345 6040                       19.97       4935
Natural Fibre                 644410  1159                        0.43        556
Leather                      8585426  2685                        5.75       3197
Paper & Paper products       1799247  1362                        1.21       1321
Glass                          900364  1144                       0.60        787
Local raw material           2011636  2395                        1.35        840
Mixture of raw mater.        1336048  3267                        0.89        409
Others                       8891473  2755                        5.96       3227
Item break up not available 13131837 4129                         8.80         **
Total Exp.                  149296483 12187                      100.00      12250
** About 1000 respondents could not provide item wise expenditure




National Productivity Council, Lodhi Road, New Delhi- 110 003                    Page- 39
Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts




 Table 3.8: Distribution of Respondents (%) acc. to Total Expenditure and Age


                                             Age category (Years)
       Per Capita
                                                                                  Total
       Exp.Class                                                          65
                            <25      25-34 35-44         45-54   55-64           (Nos.)
         (Rs.)                                                         & above

   1- 500                   9.67      5.52     3.62       3.89   8.80    19.51    637

   501-1000                13.81      9.26     6.19       7.14   7.41    12.20   1000

   1001-2000               20.49 15.87 12.05             11.73   13.19   17.07   1735

   2001-5000               31.31 28.17 26.65             24.80   25.69   19.51   3335

   5001-10000              12.31 18.59 22.83             22.65   15.28   12.20   2454

   10001-25000              7.21     12.47 18.17         18.00   19.21   4.88    1852

   25001-50000              1.50      3.77     4.55       4.24   3.24    0.81     475

   50001-100000             0.70      1.46     1.10       1.80   1.85    0.81     160

   100001 & above           0.79      1.39     1.44       2.03   1.62    0.00     176

   No spending              2.20      3.52     3.39       3.72   3.70    13.01    426

   Total (Nos.)            1137      4115      4721      1722     432    123     12250

   % to total               9.28     33.59 38.54         14.06   3.53    1.00    100.00
    Av. Expenditure 7106 11655 12686 16333                       11092   3622    12187




National Productivity Council, Lodhi Road, New Delhi- 110 003                     Page- 40
Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts




               Table 3.9: Distribution of Respondents (%) acc. to Total
                                       Expenditure and Sex


                  Per capita
                  Exp. Class (Rs.)                Male      Female Total (Nos)
                  1- 500                          5.25           5.13    637
                  501-1000                        8.26           8.03   1000
                  1001-2000                       14.11      14.24      1735
                  2001-5000                       27.92      26.25      3335
                  5001-10000                      20.14      19.88      2454
                  10001-25000                     14.14      16.49      1852
                  25001-50000                     3.15           4.90    475
                  50001-100000                    1.27           1.35    160
                  100001 & above                  1.47           1.39    176
                  No spending                     4.30           2.33    426
                  Total                           7145           5105   12250

                  % to total                      58.33      41.67      100.00

                  Av. Expenditure                11680       12897      12187




National Productivity Council, Lodhi Road, New Delhi- 110 003                    Page- 41
Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts




                 Table 3.10: Distribution of Respondents (%) acc. to Total
                                    Expenditure and Profession


   Per Capita                                        Profession                             Total
   Exp.Class
                     Service       Business       Industry Agriculture Students Others     (Nos.)
     (Rs.)
1- 500                   5.83           3.66         4.35          4.67    8.34    5.95      637
501-1000                 9.16           5.83         7.41          5.33    13.63   8.74     1000
1001-2000               15.56          10.73        14.59          12.00   20.53   15.37    1735
2001-5000               28.53          24.78        25.29          27.33   32.88   27.72    3335
5001-10000              20.35          21.50        22.59          24.67   13.23   19.12    2454
10001-25000             12.50          19.37        15.76          16.00   8.26    14.09    1852
25001-50000              3.33           5.12         4.71          2.67    0.88    3.66      475
50001-100000             1.04           1.82         1.88          1.33    0.32    1.01      160
100001 & above           1.22           2.40         1.06          0.67    0.24    0.69      176
No spending              2.47           4.80         2.35          5.33    1.68    3.66      426
Total                    3361          4456          850           150     1247    2186    12250
% to total              27.44          36.38         6.94          1.22    10.18   17.84   100.00
Av. Expenditure          9902         17392        11703           9978    4893    9593    12187




  National Productivity Council, Lodhi Road, New Delhi- 110 003                       Page- 42
  Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts




               Table 3.11: Distribution of Respondents (%) acc. to Total
                                    Expenditure and Income


                                          Annual Family Income
   Per Capita Exp.                                                               Total
     Class (Rs.)           Below          More than                      Very    (Nos)
                                  Average                        High
                          Average         Average                        High
  1-500                     12.18        6.94          4.54      3.42    2.19     637
  501-1000                  12.92        10.12         7.73      5.66    6.27    1000
  1001-2000                 15.50       19.28         12.96      9.36    6.27    1735
  2001-5000                 26.57       32.00         26.95      21.72   15.36   3335
  5001-10000                14.76       15.90         22.23      23.03   16.61   2454
  10001-25000               10.70        9.41         16.03      21.28   27.27   1852
  25001-50000                2.58        1.92          3.68      6.27    14.11    475
  50001-100000               1.11        0.71          1.11      2.16    5.64     160
  100001 & above             0.37        0.81          1.30      2.40    5.02     176
  No spending                3.32        2.90          3.47      4.72    1.25     426
  Total                      271         3962          5240      2458    319     12250
  % to total                 2.21       32.34         42.78      20.07   2.60    100.00
  Av. Expenditure           6472         7456         11943      18242   33171   12187




National Productivity Council, Lodhi Road, New Delhi- 110 003                    Page- 43
Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts




                 Table 3.12: Distribution of Respondents (%) acc. to Total
                                    Expenditure and City of Exit


   Per Capita                                            City                 All India
   Exp.Class
     (Rs.)              Delhi      Mumbai Chennai Kolkata Hyderabad Bangalore (Nos.)
1- 500                  3.17         7.78         5.18      12.89   0.28    2.70          637
501-1000                5.58         12.32        7.29      14.21   2.78    5.59         1000
1001-2000              12.34         16.39       15.14      23.64   1.94    11.56        1735
2001-5000              29.38         26.58       27.95      27.60   18.06   12.91        3335
5001-10000             21.87         16.89       21.10       9.09   30.00   25.05        2454
10001-25000            17.34         10.83       13.20       4.96   32.78   28.32        1852
25001-50000             4.16         3.57         2.56       1.32   9.44    6.74          475
50001-100000            1.01         2.05         0.56       0.33   3.06    1.73          160
100001 & above          0.65         2.91         0.17       0.50   1.67    4.62          176
No spending             4.50         0.69         6.85       5.45   0.00    0.77          426
Total                   5358         3612         1796       605    360     519          12250
% to total             43.74         29.49       14.66       4.94   2.94    4.24        100.00
Av. Expenditure         9765        17680         6524      4308    16939   24458        12187




  National Productivity Council, Lodhi Road, New Delhi- 110 003                     Page- 44
  Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts




          Table 3.13: Distribution of Respondents acc. to Per Capita Expenditure and
                                             Number of Days Stayed



Per Capita Exp.                                      Days spent by tourists (No.)
     Class
     (Rs.)                                                                                181 &
                         1-2     3-7     8-14 15-20 21-30 31-45 46-90 91-180                          Total
                                                                                          above
1- 500                 11.85 6.57        3.20     5.40     4.63    3.32   5.85    4.38    7.23         637
501-1000                8.88     8.36    8.20     8.97     7.01    5.64   10.08   9.49    2.41        1000
1001-2000              13.44 14.54 15.37 13.98 14.91 10.40                8.87    12.41   10.84       1735
2001-5000              21.18 30.13 28.33 24.99 26.62 20.95 24.60                  27.74   20.48       3335
5001-10000             13.44 18.77 21.68 20.33 19.67 22.54 20.16                  16.79   27.71       2454
10001-25000             6.83 10.50 14.70 18.54 17.90 25.87 19.96                  18.25   21.69       1852
25001-50000             2.28     2.89    3.87     3.47     4.29    7.80   6.85    5.11    6.02         475
50001-100000            1.14     1.35    1.25     1.14     1.29    1.88   1.41    1.46    1.20         160
100001 & above          1.82     0.85    1.83     2.28     1.23    1.01   0.60    1.46    1.20         176
No spending            19.13 6.05        1.56     0.89     2.45    0.58   1.61    2.92    1.20         426
Total                   439     3638 3279 2017 1469                 692   496     137      83         12250
% to total              3.58 29.70 26.77 16.47 11.99 5.65                 4.05    1.12    0.68        100.00
Av. Expenditure 9635 8969 12623 18755 11037 13616 10781                           9548    11203       12187




        National Productivity Council, Lodhi Road, New Delhi- 110 003                      Page- 45
        Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts




              Table 3.14: Distribution of Respondents acc. To Per Capita Daily
                                  Expenditure on Handicrafts



                      Daily Exp. Class                  Respondents
                            (Rs.)
                                                    No.          Percent

                     1- 50                          1113           9.1
                     50.1-100                       1190           9.7
                     100.1-250                      2420          19.8
                     250.1-750                      3673          30.0
                     750.1-2000                     2251          18.4
                     2000.1-5000                    769            6.3
                     5000.1-15000                   266            2.2
                     15000.1 & above                142            1.2
                     No Spending                    426            3.5
                     Total                         12250         100.00




National Productivity Council, Lodhi Road, New Delhi- 110 003              Page- 46
Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts




           Table 3.15: Distribution of Respondents (%) acc. to Per Capita
                                   Daily Expenditure and Age


                                            Age category (Years)
  Daily Exp. Class                                                                  Total
        (Rs.)                                                               65 &   (Nos.)
                           <25      25-34      35-44      45-54   55-64
                                                                          above
  1- 50                   21.46     10.04       5.27      6.74    13.43   26.83    1113

  50.1-100                16.27     11.23       7.82      7.43    8.56    7.32     1190

  100.1-250               23.13     21.51      17.73      18.12   20.60   27.64    2420

  250.1-750               22.52     27.70      32.79      33.62   29.63   17.89    3673

  750.1-2000               9.76     16.23      22.22      20.79   13.43   5.69     2251

  2000.1-5000              2.64      6.34       7.31      5.69    7.87    0.81      769

  5000.1-15000             1.50      2.26       2.39      2.26    0.69    0.81      266

  15000.1 & above          0.53      1.17       1.08      1.63    2.08    0.00      142

  No Spending              2.20      3.52       3.39      3.72    3.70    13.01     426

  Total (Nos.)            1137       4115      4721       1722    432      123     12250

  % to total               9.28     33.59      38.54      14.06   3.53    1.00     100.00

  Av. Expenditure          229       583        746        817    444      191      609




National Productivity Council, Lodhi Road, New Delhi- 110 003                      Page- 47
Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts




           Table 3.16: Distribution of Respondents (%) acc. to Per Capita
                                   Daily Expenditure and Sex


                      Daily Exp.Class                                  Total
                                                Male       Female
                            (Rs.)                                      (Nos)
                    1- 50                       8.83         9.44      1113
                    50.1-100                    9.36        10.21      1190
                    100.1-250                  19.73        19.78      2420
                    250.1-750                  30.52        29.23      3673
                    750.1-2000                 18.07        18.81      2251
                    2000.1-5000                 5.93         6.76       769
                    5000.1-15000                2.11         2.25       266
                    15000.1 & above             1.13         1.19       142
                    No Spending                 4.30         2.33       426

                    Total (Nos.)                7145         5105      12250

                    % to total                 58.33        41.67      100.00

                    Av. Expenditure              586             634    609




National Productivity Council, Lodhi Road, New Delhi- 110 003                   Page- 48
Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts




        Table 3.17: Distribution of Respondents (%) acc. to Per Capita Daily
                                  Expenditure and Profession


Daily Exp.Class                      Profession                                            Total
      (Rs.)     Service Business Industry Agriculture Students Others                     (Nos.)
1- 50                    8.99        4.40         9.65           7.33    20.77   12.03        1113

50.1-100                10.24        6.17        11.29           9.33    17.56   11.07        1190

100.1-250               20.83        16.02       21.88           30.67   24.62   21.36        2420

250.1-750               33.23        30.23       30.71           26.67   22.61   28.64        3673

750.1-2000              16.69        24.28       15.88           14.00   9.62    15.19        2251

2000.1-5000              4.67        9.00         4.94           5.33    2.57    5.90         769

5000.1-15000             1.96        3.19         2.47           0.67    0.48    1.37         266

15000.1 & above          0.92        1.91         0.82           0.67    0.08    0.78         142

No Spending              2.47        4.80         2.35           5.33    1.68    3.66         426

Total (Nos.)             3361        4456         850            150     1247    2186     12250

% to total              27.44        36.38        6.94           1.22    10.18   17.84    100.00

Av. Expenditure          550         1087         488            399     144     417          609




National Productivity Council, Lodhi Road, New Delhi- 110 003                      Page- 49
Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts




       Table 3.18: Distribution of Respondents (%) acc. to Per Capita Daily
                              Expenditure and Income


                                           Annual Family Income
       Daily Exp.Class                                                               Total
             (Rs.)           Below          More than                                (Nos)
                                    Average                      High    Very High
                            Average         Average
       1- 50                 26.94       12.92        7.65       4.64      4.08      1113
       50.1-100              12.92       13.48        8.84       5.49      7.21      1190
       100.1-250             19.56       23.60       19.83       14.44    11.91      2420
       250.1-750             20.30       30.09       29.43       32.55    26.33      3673
       750.1-2000             8.49       11.81       20.92       23.60    26.33      2251
       2000.1-5000            6.27       3.26         6.81       8.99     14.11       769
       5000.1-15000           1.48       1.31         2.02       3.54      5.33       266
       15000.1 & above        0.74       0.63         1.03       2.03      3.45       142
       No Spending            3.32       2.90         3.47       4.72      1.25       426
       Total (Nos.)           271        3962         5240       2458      319       12250
       % to total             2.21       32.34       42.78       20.07     2.60      100.00
       Av. Expenditure        196         339          629       1013      1951       609




National Productivity Council, Lodhi Road, New Delhi- 110 003                           Page- 50
Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts




           Table 3.19: Distribution of Respondents (%) acc. to Per Capita
                              Daily Expenditure and City of Exit



Daily Exp.Class                                         City                         All India
      (Rs.)                                                                           (Nos.)
                       Delhi Mumbai Chennai Kolkata Hyderabad Bangalore

1-50                   6.25     11.21       10.36       25.62    5.28    2.50          1113

50.1-100               5.82     14.34       10.24       19.34    7.50    6.17          1190

100.1-250             17.25     23.09       20.04       25.29    20.56   14.45         2420

250.1-750             32.40     26.97       32.02       17.36    33.06   31.60         3673

750.1-2000            23.44     13.51       14.64        3.97    23.33   26.20         2251

2000.1-5000            7.63      5.18        4.06        1.98    9.17    10.60          769

5000.1-15000           1.98      2.66        1.56        0.99    0.83    5.20           266

15000.1 & above 0.73             2.35        0.22        0.00    0.28    2.50           142

No Spending            4.50      0.69        6.85        5.45    0.00    0.77           426

Total (Nos.)           5358      3612        1796        605     360     519          12250

% to total            43.74     29.49       14.66        4.94    2.94    4.24         100.00

Av. Expenditure 574               931         242        139     529     1631           609




National Productivity Council, Lodhi Road, New Delhi- 110 003                    Page- 51
Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts




        Table 3.20: Total Expenditure on Handicrafts acc. to Nationality of
                                            Respondents

                           Total Expenditure          Tourists      Per Capita
           Country
                          (Rs. Million)     %age       (No.)     Expenditure (Rs.)
        USA                   26.76          18          1331         20103
        UK                    17.58          12          1223         14373
        France                11.98           8           907         13211
        Australia              8.97           6           616         14555
        Germany               7.91           5            735         10756
        Canada                 5.45          4            257         21204
        UAE                    4.97           3           175         28376
        Italy                  4.85          3            454         10681
        Japan                  4.44           3           846          5249
        Switzerland           4.08           3            208         19634
        Singapore              3.72          2            381          9752
        Sri Lanka              3.57           2           568          6293
        Netherlands           3.24           2            243         13333
        Nigeria                2.58           2           103         25073
        South Africa           2.47          2            185         13326
        Ireland                2.42           2            98         24687
        Korea                  2.42           2           347          6962
        Malaysia               2.15           1           250          8593
        Spain                  2.08           1           265          7851
        China                  1.98           1           242          8183
        Belgium                1.89           1           117         16156
        Denmark                1.61           1           120         13430
        Russia                 1.58           1           228          6913
        Indonesia              1.49           1           129         11569
        New Zealand           1.36           1            120         11331
        Saudi Arabia          1.35           1            50          26955
        Others                16.42          11          2052          8001




National Productivity Council, Lodhi Road, New Delhi- 110 003                        Page- 52
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Survey of Foreign Tourists’ Expenses on Handicrafts



        All Countries        149.30          100        12250           12187




            Table 3.21: Top Ten Spending Nations on Indian Handicrafts
                                                                 ( % of Total)
                                                       NPC Survey        EPCH@ Data on
             SL. No.           Country                  Findings            Exports
                                                       (Oct., 2002)        (2001-02)
               1     USA                                    18                   30
               2     UK                                     12                   11
               3     France                                 8                    5
               4     Australia                              6                    2
               5     Germany                                5                    10
               6     Canada                                 4                    3
               7     UAE                                    3                    na
               8     Italy                                  3                    4
               9     Japan                                  3                     4
               10    Switzerland                            3                    2
            Total of 10 countries                           62                   71
            @ Export Promotion Council for Handicrafts, na = Not Available
             Note : Total excludes UAE




National Productivity Council, Lodhi Road, New Delhi- 110 003                         Page- 53
Tel: 24690331-33, Fax: 24615002      website: www.npcindia.org
04 fte handicrafts
04 fte handicrafts
04 fte handicrafts
04 fte handicrafts
04 fte handicrafts
04 fte handicrafts
04 fte handicrafts
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04 fte handicrafts

  • 1. Survey of Foreign Tourists’ Expenses on Handicrafts Survey of Foreign Tourists’ Expenses on Handicrafts Ministry of Touriism & Cullture Ministry of Tour sm & Cu ture Government of Indiia Government of Ind a October 2002 Economiic Serviices Group Econom c Serv ces Group National Productiiviity Counciill National Product v ty Counc Lodhii Road,, New Dellhii - 110003 Lodh Road New De h - 110003 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 1 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 2. Survey of Foreign Tourists’ Expenses on Handicrafts CONTENTS Acknowledgement ii Study Team iii Executive Summary iv - v List of Tables vi List of Figures vii Page No Chapter I About the Survey 1 Chapter II Profile of Foreign 9 Tourists Chapter III Expenditure Pattern 15 of Foreign Tourists Chapter IV Macro Economic 48 Implications Annexure 53 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 2 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 3. Survey of Foreign Tourists’ Expenses on Handicrafts ACKNOWLEDGEMENT The National Productivity Council (NPC) is grateful to the Department of Tourism, Ministry of Tourism and Culture, Government of India for entrusting NPC with the responsibility to carry out the Survey on Foreign Tourists’ Expenses on Handicrafts. We are thankful to Shri Amitabh Kant, Joint Secretary, Shri J. Dash, Joint DG (MR) and Shri D. D. Mathur , Dy. Director (MR) of Ministry of Tourism & Culture for their continuous encouragement during the conduct of the survey. We are also thankful to the officials of Airports Authority of India and Bureau of Civil Aviation Security for granting permission to carry out the survey inside the international airports at New Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad. We also record our thanks to the Central Cottage Industries Emporium as well as emporia run by various state governments in the six cities mentioned above for their kind co-operation in the smooth conduct of the survey. A large number of star hotels had helped us by allowing the survey team to contact foreign guests (tourists) at the exit lobbies. We are thankful to the managements of all these hotels. Lastly, a number of colleagues from NPC’s regional offices in New Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad were involved in this task and without whose co-operation the survey could have not been completed within the short time at the team’s disposal. We are thankful to them. New Delhi Dr. N. K. Nair 19th Dec., 2002 Group Head (Economic Services) STUDY TEAM Core Members N. K. Nair Group Head (Economic Services) National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 3 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 4. Survey of Foreign Tourists’ Expenses on Handicrafts K. P. Sunny Dy. Director (Economic Services) Utpal Chattopadhyay Dy. Director (Economic Services) Rajesh Sund Asst. Director (Economic Services) D. J. Rao Asst. Director (Economic Services) Survey Team New Delhi Mumbai Kolkata K. P. S. Tomer, Dy. Director O. P. Joshi, Director S. Pal, Director Rajesh Bajaj, Dy. Director M. Ashok, Dy. Director P. Chakraborty, Dy. Director S. K. Dwivedi, Asst. Director B. Badole, Asst. Director S. Mallick, Dy. Director D. Bandyopadhyay, Asst. Gautam Roy, Dy. Director Director M. Natarajan, Asst. Director Chennai Bangalore S. Dey, Asst. Director S. Sivakumar, Dy. Director V. Rajesh Dy. Director R. Rajhamany, Trg. Officer A.Muguntharagan, Asst. Director Hyderabad G. Hema, Dy. Director Executive Summary The Ministry of Tourism & Culture, Government of India assigned National Productivity Council (NPC) to carry out a Survey of Foreign Tourists’ Expenses on Handicrafts in India. The main objective of the survey was to find out how much the visiting foreign tourists spend on handicrafts (total & item-wise) while they stayed in India. The ultimate aim of this task was to construct the Craft/ Tourism Index (defined as per tourist per day expenditure on handicrafts) for India as suggested by the UNESCO. The field level survey was launched by NPC during Sept. – Oct., 2002 in six major cities of India viz. New Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad. These cities act as the major arrival and exit points for an overwhelming majority of the foreign tourists visiting India. The foreign tourists leaving India through these six cities were approached with a structured questionnaire to gather information on their spending on handicraft items. National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 4 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 5. Survey of Foreign Tourists’ Expenses on Handicrafts About 47% of the total respondents were interviewed at the departure lounges of international airports and another 28% from the star hotels. The remaining (25%) tourists were contacted at the handicraft emporia/shops. Only those tourists who had completed their purchases from India were interviewed. The purchases on behalf of the companies the tourist(s) work are not considered in the survey. A total of 12,250 foreign tourists from the six cities were interviewed. Following are the major findings of the Survey: Respondent tourists from about 100 nations had visited India during the Survey. Among the tourists contacted during the survey, 58% are males and 42% females. About 70% of the respondents are in the age group 25-44 years. A large number of respondents (36%) are in business and more than one fourth (27%) are in service, while 10% are students. Income wise, 43% of the respondents belonged to ‘more than average’ category and another 32% were ‘average’. Only 3% of the respondent tourists had ‘very high’ income level and 2% belonged to the ‘below average’ category. As observed in the survey, the highest inflow of tourists was from USA (11%), followed by UK (10%), France (7%), Japan (7%), Germany (6%) and Australia (5%). The average duration of stay by a respondent foreign tourist is 20 days. The student tourists and tourists below 25 years of age had spent the highest number of days. Tourists with very high income stayed for the shortest duration. According to survey findings, on an average a foreign tourist spends about Rs. 12,187 on handicrafts. The female tourists spent more than their male counterparts. Income level of the respondent tourists has a direct relationship with expenditure. Profession wise business persons are spending more on handicrafts than the others. Silk is the most bought (value) item among the handicrafts, as 23% of the total expenditure was on this product alone. Other handicraft items of high values bought by respondent tourists include metal & jewellery, cotton & wool textiles and leather products. In terms of per capita daily expenditure the expenses on handicrafts had shown an increasing trend among tourists aged between 25 and 54 years and it declined there after. The UNESCO’s Craft/ Tourism Index is found to be Rs. 609 ( about US $ 13). Majority of the purchases were made using Indian Rupee. A sizeable number had used US Dollar and credit cards to finance handicraft purchases. The usage of Euro outnumbered Pound Sterling. Americans as a group spent the highest amount on National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 5 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 6. Survey of Foreign Tourists’ Expenses on Handicrafts handicrafts, contributing 18% of the total expenses. Tourists from UK, France, Australia, Germany, Canada etc. had also spent significant amounts on handicrafts in India. These are also among the major export destinations for Indian handicrafts. Total expenditure on handicrafts by all the foreign tourists has been estimated at Rs. 29,851.54 million in 2001, which constitutes about 18% of the total value of production of handicraft items in India in 2001-02. This also forms approximately 44% of the total handicrafts exports (excluding hand knotted carpets) from India during the year 2001-02. The amount spent on handicrafts by foreign tourists can be considered as deemed export of handicrafts. National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 6 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 7. Survey of Foreign Tourists’ Expenses on Handicrafts List of Tables Pag Table No. Title e No. Table 1.1 City and location wise Distribution of Survey Tourists 4 Table 2.1 Age & Sex Profile of Foreign Tourists contacted during the Survey 9 Table 2.2 Distribution of Respondents acc. to Profession 10 Table 2.3 Distribution of Respondents acc. to Income 11 Table 2.4 Distribution of Respondents acc. to Days of Stay in India 12 Table 2.5 Distribution of Respondents acc. to Country of Origin 13 Table 3.1 Distribution of tourists (%) acc. to number of days stayed and age 25 Table 3.2 Distribution of tourists (%) acc. to number of days stayed and sex 26 Table 3.3 Distribution of tourists (%) acc. to number of days stayed and profession 27 Table 3.4 Distribution of tourists (%) acc. to number of days stayed and income 28 Table 3.5 Distribution of tourists (%) acc. to number of days stayed and city of exit 29 Table 3.6 Total expenditure on handicrafts by Respondents 30 Table 3.7 Item wise total expenditure on handicrafts by Respondents 31 Table 3.8 Distribution of Respondents (%) acc. to total expenditure and age 32 Table 3.9 Distribution of Respondents (%) acc. to total expenditure and sex 33 Table 3.10 Distribution of Respondents (%) acc. to total expenditure and profession 34 Table 3.11 Distribution of Respondents (%) acc. to total expenditure and income 35 Table 3.12 Distribution of Respondents (%) acc. to total expenditure and city of exit 36 Table 3.13 Distribution of Respondents acc. to per capita exp. & no. of days stayed 37 Table 3.14 Distribution of Respondents acc. to per capita daily exp. on handicrafts 38 Table 3.15 Distribution of Respondents (%) acc. to per capita daily expenditure and age 39 Table 3.16 Distribution of Respondents (%) acc. to per capita daily expenditure and sex 40 Table 3.17 Distribution of Respondents (%) acc. to per capita daily expenditure & 41 profession pprofessionprofession Table 3.18 Distribution of Respondents (%) acc. to per capita daily expenditure and 42 income Table 3.19 Distribution of Respondents (%) acc. to per capita daily exp. & city of exit 43 Table 3.20 Total expenditure on handicrafts acc. to nationality of respondents 44 Table 3.21 Top ten spending nations on Indian handicrafts 45 Table 3.22 Country wise product wise expenditure on handicrafts by respondents 46 Table 3.23 Currencies used by respondents for purchase of handicraft products 47 Table 4.1 Movement of WPI: Oct. 2001 to Oct. 2002 49 Table 4.2 Estimate of total expenditure on handicrafts by foreign tourists 50 Table 4.3 Turnover of Indian handicrafts industry 51 Table 4.4 Exports of handicrafts from India: 1992-93 to 2001-02 (Rs. Crores) 52 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 7 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 8. Survey of Foreign Tourists’ Expenses on Handicrafts List of Figures Pag Figure No. Title e No. Figure 1 Distribution survey respondents based on place of Interview 5 Figure 2 Distribution respondents based on City 6 Figure 3 Distribution of tourists based on Profession 10 Figure 4 Distribution of tourists based on Country of Origin (top ten countries) 14 Figure 5 Distribution of respondents based on per capita Expenditure class 19 Figure 6 Per Capita Daily Expenditure and Age 20 Figure 7 Per Capita Daily Expenditure and Profession 21 Figure 8 Per Capita Daily Expenditure and Family Income 22 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 8 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 9. Survey of Foreign Tourists’ Expenses on Handicrafts CHAPTER I ABOUT THE SURVEY 1. Background India draws more than 2.5 million foreign tourists annually. The primary factor that motivates majority of the foreign tourists to visit India is the country’s bountiful nature, snow-covered mountains in the Himalayas, colorful deserts in Rajasthan, beautiful beaches in Goa, Kerala and Orissa and tropical lush green forests spread far and wide in most parts of the country. Beside the nature, the country’s rich cultural heritage has been a tremendous attraction to a large number of foreign visitors. The diversity in climate, religion, language and traditions has always been a matter of curiosity for the people of other countries. So are India’s exquisite handloom and handicraft products, which are admired by the foreign tourists. Purchase of Indian handicrafts is therefore a common practice generally noticed among the visiting foreigners. The handicrafts industry in India occupies an important place in the national economic scene. Firstly, the sector provides direct and indirect employment to a large number of persons like the artisans and also those who are engaged in the supply of inputs and in trading. According to an estimate, handicrafts industry currently employs more than 76 lakh persons in India. Besides high employment potential, the significant contributions of the sector are felt in terms of high value addition from a relatively low capital investment and a steady source of foreign exchange earnings. Available data from Export Promotion Council for Handicrafts show, in 2001-02, total exports of handicrafts (excluding handknotted carpets) from India stood at Rs.6769.50 crores. The economic importance of handicrafts sector is also evident from the huge size of this industry. Turnover of the handicrafts industry, as estimated by Development Commissioner for Handicrafts, is in the range of Rs. 16,320 crores in 2001-02. National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 9 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 10. Survey of Foreign Tourists’ Expenses on Handicrafts In this background the Department of Tourism, Government of India, had assigned National Productivity Council (NPC) to carry out a survey of foreign tourists in order to find how much the tourists spend on handicrafts during their stay in India. The ultimate outcome of the survey is to facilitate construction of the Craft/ Tourism Index for India as has been suggested by the UNESCO. The Index would find the expenses on crafts per tourist per day (in US $) of the foreign visitors to India. The present report from NPC is the result of the above mentioned survey of foreign tourists. 2. Objectives of the Study To identify the handicraft products/ items purchased by foreign tourists To find out the total expenditure incurred by foreign tourists on handicraft products during their stay in India To find the currencies used for the purchase of such items To find country of origin, age & sex profile, occupation and family income of the foreign tourists To construct the UNESCO Crafts/ Tourism Index for India 3. Methodology The survey used the same definition of foreign tourists followed by the Department of Tourism, Govt. of India while compiling tourist statistics. According to this definition a foreign tourist is a person visiting India on a foreign passport, staying at least 24 hours in the country for the purpose of (i) leisure (recreation, holiday, health, study, religion and sport); (ii) business, family, mission and meeting. Transit passengers not staying at least a day in India were not covered by the survey. Similarly, minor children accompanying the adult family members (foreign tourists) were not considered for the survey. NRIs were also excluded from the scope of the survey National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 10 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 11. Survey of Foreign Tourists’ Expenses on Handicrafts The foreign tourists visiting India were interviewed from three places viz. (i) international airports, (ii) hotels and (iii) shopping complexes, particularly the handicrafts emporia and similar establishments selling handicraft items. As mentioned at the outset, India receives about 2.5 million foreign tourists every year. Keeping in view the time and cost constraints of the survey, it was decided that about 0.5% of the total foreign tourists coming to India annually i.e. approximately 12,000 tourists would be interviewed. A large number of foreign tourists were approached randomly from the above three places for data collection through a structured questionnaire. The questionnaire sought information mainly on tourists’ purchase of handicraft items (quantity & value) during their stay in India apart from some personal data on tourists like the country of origin, age, sex, income etc. The business purchases, defined as purchases on behalf of companies they represent were excluded. A copy of the questionnaire used for canvassing during the field survey is appended in Annexure. It is important to note that the purchases of items by the tourists were not necessarily from the city in which they were contacted. This is especially the case in regard to those who were contacted at the international airports. The items might include those which were bought during their travel anywhere in the country including the major handicrafts centers. 3.1 Field Survey During the field survey about 12,250 foreign tourists were interviewed by the NPC survey team, against the target of 12,000. The survey was conducted during Sept. 11 – Oct. 25, 2002, simultaneously in six major cities of India namely New Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad. About 47% of the total contacts were made in the international airports of the six cities mentioned above, while the remaining interviews were held in the hotels (28%) and shops/ emporia (25%) (Fig.1). In the airports the tourists were interviewed at the departure lounges and in hotels the contacts were at check-out points. In the handicraft emporia and other shops selling handicraft products only those foreign tourists were interviewed whose departure from India was scheduled within the next twenty-four hours. In all National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 11 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 12. Survey of Foreign Tourists’ Expenses on Handicrafts the cases, first it was ascertained whether the tourist’s purchase of handicrafts was complete and data were gathered only from those who had completed purchase from India. The distribution of respondents across the cities (Fig. 2) and the place of contact are given in Table 1.1. Table1.1: City & Location wise Distribution of Survey Respondents Airports Hotels Shops/Emporia Total City Achieve- Achieve- Achieve- Achieve- Target Target Target Target ment ment ment ment New Delhi 2400 2399 1200 1709 1200 1250 4800 5358 Mumbai 1800 1826 900 883 900 903 3600 3612 Chennai 960 962 480 427 480 407 1920 1796 Kolkata 420 185 210 200 210 220 840 605 Bangalore 240 267 120 124 120 128 480 519 Hyderabad 180 158 90 102 90 100 360 360 Total 6000 5797 3000 3445 3000 3008 12000 12250 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 12 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 13. Survey of Foreign Tourists’ Expenses on Handicrafts Figure 1: Distribution of Survey Respondents based on Place of Interview Market 25% Airports 47% Hotels 28% National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 13 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 14. Survey of Foreign Tourists’ Expenses on Handicrafts Figure 2: Distribution of Respondents based on City Bangalore Hyderabad 4% 3% Kolkata New Delhi 5% 44% Chennai 15% Mumbai 29% National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 14 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 15. Survey of Foreign Tourists’ Expenses on Handicrafts There have been some minor variations in the number of tourists responding to the survey among the cities as well as across places of contact when compared to the targets set. While in Delhi, Mumbai and Bangalore the total number of respondents exceeded the targets, in two of the remaining cities, viz. Chennai and Kolkata the achievement fell short of their respective targets. In Hyderabad, however, the survey team could achieve the targets. Similarly, the number of contacts inside airports fell marginally below its target, which was fixed at 50% of the total. That the inflow of foreign tourists during the period of survey was found to be less than expected in some of the cities was the main reason for not mustering the required number in these places. 3.2 Data Analysis Data collected through the structured questionnaire were scrutinized thoroughly before being entered into computer systems. Such data were once again checked to detect possible entry errors. Finally, corrected data were analyzed by computers using Microsoft Excel and SPSS packages. 4. Limitations Progress of the survey was affected adversely by a number of factors, most of which are beyond the control of the survey team. Firstly, the survey was conducted during middle of Sept. and October, which is generally considered to be a lean season in India for foreign tourists. The inflow of foreign tourists was further low on account of the anticipated disturbances during the anniversary of the Eleventh Sept. incident in New York. The disturbance in Karnataka as a sequel to abduction of a political leader by the notorious sandal wood smuggler and subsequently the Cauvery disputes affected tourist inflow to Bangalore unfavorably. As a result, contacts with adequate number of tourists in Southern locations where, interviews were held, were unfavorably affected leading to delays in the completion of the survey. National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 15 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 16. Survey of Foreign Tourists’ Expenses on Handicrafts Secondly and perhaps most importantly was the delay in the procurement of entry passes for airports. As per plan, 50% of the total contacts were scheduled to be made in the departure lounges of international airports. The international airports being high security zones, issue of entry passes involved procedures and scrutiny by the Airports Authority of India. Therefore, the survey team had to wait for some time after completing its job in the shops and hotels. The permission to carry out the survey inside airports was granted only for one week, which was short considering the large number of tourists to be interviewed, particularly in places like Delhi and Mumbai. Finally, the availability of foreign tourists for interview was constrained by the time at their disposal, compatibility of language and also willingness to co-operate by the tourists. All tourists contacted by the team did not agree for the interview for a variety of reasons. Some of the tourists contacted during the survey though provided total expenses on handicrafts, could not recollect its item wise break -ups. All these made the task of the investigation difficult and also delayed the completion of survey by a few days. National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 16 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 17. Survey of Foreign Tourists’ Expenses on Handicrafts CHAPTER II PROFILE OF FOREIGN TOURISTS As mentioned in the earlier chapter the Survey had covered a total of 12250 foreign tourists from six cities. Among these, 7145 (58%) were males and the remaining 5105 (42%) were females. The age distribution of the respondent tourists displays a skewed pattern with more than 70% of them falling in the range of 25-44 years of age. Table 2.1 shows the age and sex distribution of the foreign tourists contacted during the survey. Table 2.1 : Age & Sex Profile of Foreign Tourists Contacted during the Survey No. of respondents Total Age (Years) Male Female No. Percent Less than 25 535 602 1137 9.28 25-34 2090 2025 4115 33.59 35-44 2997 1724 4721 38.54 45-54 1192 530 1722 14.06 55-64 268 164 432 3.53 65 & above 63 60 123 1.00 Total 7145 5105 12250 100.00 The visiting tourists were asked about their professions. It was found that a large number of respondents (36%) are business men/women. While 27% of them are in service, more than 10% are found to be students. The break up of professions of the foreign tourists interviewed during survey is given in table 2.2 (Fig. 3). National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 17 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 18. Survey of Foreign Tourists’ Expenses on Handicrafts Table 2.2: Distribution of Respondents According to Profession. No. of Percentage of Profession Respondents Respondents Service 3361 27.44 Business 4456 36.38 Industry 850 6.94 Agriculture 150 1.22 Students 1247 10.18 Others 2186 17.84 Total 12250 100.00 Figure 3: Distribution of Respondents based on Profession 18% 28% Service Business 10% Industry 1% Agriculture 7% Students Others 36% The respondent foreign tourists were also arranged according to their income levels. Income, being a highly personal and hence very sensitive information, the tourists were asked to categorize themselves in to Below Average, Average, More than Average, High and Very High. Since no uniform norm can be applied to all the countries having widely varying per capita GDP, the information on income was collected according to the respondent’s own judgment with respect to his/her own country’s situation. It was observed that among the foreign tourists interviewed, the National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 18 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 19. Survey of Foreign Tourists’ Expenses on Handicrafts highest number (43%) was from the ‘more than average’ category. More than 3960 (about 32%) respondent tourists reported that they had only ‘average’ income. About 20% of the them were from the ‘high’ income category. Only 2% of the respondents had ‘below average’ income and about 3% belonged to the ‘very high’ income category (Table 2.3). Table 2.3 : Distribution of Respondents According to Income No. of Percent of Income Group Respondents Respondents Below Average 271 2.21 Average 3962 32.34 More than Average 5240 42.78 High 2458 20.07 Very High 319 2.60 Total 12250 100.00 It was found that about 33% of the foreign tourists responding to the survey had spent a week or less in India and another 27% had stayed for periods ranging between 8 days and two weeks. About 28% of the visiting foreigners had spent between 15 days and one month. Only 10% of the respondents had stayed beyond one month and up to 90 days, while about 2% had spent above 90 days. Detailed information on the number of days spent by foreign tourists is presented in table 2.4. National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 19 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 20. Survey of Foreign Tourists’ Expenses on Handicrafts Table 2.4 : Distribution of Respondents According to Days of Stay in India Days No. of Percent of Stayed (No.) Respondents Respondents 1-2 439 3.58 3-7 3638 29.70 8-14 3279 26.77 15-20 2017 16.46 21-30 1469 11.99 31-45 692 5.65 46-90 496 4.05 91-180 137 1.12 181 & above 83 0.68 Total 12250 100.00 The respondent tourists were asked about his/her country of origin. It was observed during the survey that India respondent tourists came from a large number of countries spread almost in all the continents. During the 45 days of survey it was found that foreigners from more than 100 countries had visited India. The maximum inflow of tourists, as observed in the survey, was from USA (10.87%), followed by UK (9.98%), France (7.40%), Japan (6.91%), Germany (6.00%) and Australia (5.03%). The names of the countries and the number of foreigners coming from those countries are given in Table 2.5 (Fig. 4). National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 20 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 21. Survey of Foreign Tourists’ Expenses on Handicrafts Table 2.5 : Distribution of Respondents According to Country of Origin Foreign Foreign Tourists Country Country Tourists No. % age No. % age USA 1331 10.87 Nepal 127 1.04 UK 1223 9.98 New Zealand 120 0.98 France 907 7.40 Denmark 120 0.98 Japan 846 6.91 Belgium 117 0.96 Germany 735 6.00 Nigeria 103 0.84 Australia 616 5.03 Kenya 99 0.81 Sri Lanka 568 4.64 Ireland 98 0.80 Italy 454 3.71 Sweden 98 0.80 Singapore 381 3.11 Taiwan 88 0.72 Korea 347 2.83 Bangladesh 80 0.65 Spain 265 2.16 Poland 76 0.62 Canada 257 2.10 Finland 73 0.60 Malaysia 250 2.04 Norway 72 0.59 Netherlands 243 1.98 Brazil 61 0.50 China 242 1.98 Philippines 58 0.47 Russia 228 1.86 Hong Kong 54 0.44 Switzerland 208 1.70 Saudi Arabia 50 0.41 South Africa 185 1.51 Mexico 49 0.40 Thailand 176 1.44 Mauritius 48 0.39 UAE 175 1.43 Iran 47 0.38 Israel 142 1.16 Austria 45 0.37 Indonesia 129 1.05 Others 659 5.38 Total 12250 100.00 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 21 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 22. Survey of Foreign Tourists’ Expenses on Handicrafts Figure 4: Distribution of Respondents based on Country of Origin (Top Ten Countries) Korea 347 Singapore 381 Italy 454 Sri Lanka 568 Country of Origin Australia 616 Germany 735 Japan 846 France 907 UK 1223 USA 1331 0 200 400 600 800 1000 1200 1400 Number of Tourists National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 22 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 23. Survey of Foreign Tourists’ Expenses on Handicrafts CHAPTER III EXPENDITURE PATTERN OF FOREIGN TOURISTS During the survey the concentration was on to collect information regarding spending on handicraft items by the visiting foreign tourists during their stay in India. The information sought from the foreign tourists included number of items bought, amount spent on a variety of handcraft products etc. For smooth data collection and analysis handicraft items were grouped into 12 major heads viz. textiles, clay, bamboo/rattan, wood, metal & jewelry, natural fiber, leather, paper & paper products, glass, local raw materials, mixture of raw materials and others. The textiles comprised silk, cotton, wool and others. As mentioned earlier, the company or business purchases of the foreign tourists were not considered for data collection and analysis. In this chapter the expenditure by foreign tourists on handicrafts would be examined with respect to a number of determinants such as the age, sex, profession, income, city of exit and duration of stay. The total as well as per capita daily expenditure incurred by the tourists on handicrafts are worked out separately and arranged according to the determinants mentioned above so as to examine their influence, if any, on the expenditure patterns. The duration of stay by the tourists is also examined with respect to age, sex, profession, income and city of exit. 3.1 Period of Stay in India The information on number of days stayed by the tourists according to their age, sex, profession, income etc. are presented in tables 3.1-3.5. The following may be observed: On an average a respondent tourist had spent about 20 days in India. National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 23 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 24. Survey of Foreign Tourists’ Expenses on Handicrafts The highest number of days is spent by respondent tourists below 25 years of age, while for those belonging to 35-44 years category the duration of stay in India is the lowest (17 days). Tourists in the age group 55-64 years stayed for about 25 days. The duration of stay in India was marginally higher for female tourists (20.33 days) compared to their male counterparts (19.92 days). The student tourists spend more days (34) than the others. The agriculturists and industrialists had stayed in India for longer duration compared to businessmen and from service sectors. The income level of the respondent tourists and their stay duration are seen to have inverse relationship. Tourists having ‘below average’ income had on an average spent the highest number of days (33), while the tourists from ‘very high’ income category stayed for lower number of days (17). Most of the ‘below average’ category of respondents are the students. Since India’s is one of the lowest cost of living by world standards, even the ‘below average’ income tourist (according to the income standards in his country) will be able to afford a comfortable stay in the country. 3.2 Total Expenditure by Tourists Total expenditure on handicrafts varied widely across the categories of tourists. While 426 (3.48%) tourists did not buy any handicraft item, about 811 (6.63%) had spent over Rs. 25,000 on various handcraft items during their stay in India. The modal expenditure class is found to be Rs. 2,001 -5,000. About one fifth of the total tourists interviewed during the survey had incurred total expenditure exclusively on handicraft items beyond Rs. 5,000 and up to Rs. 10,000. A small percentage (1.44%) of the tourists had bought handicrafts worth Rs. one lakh or more (Table National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 24 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 25. Survey of Foreign Tourists’ Expenses on Handicrafts 3.6). Collectively 12250 respondent tourists had spent a total of Rs. 149.30 million on handicrafts during their stay in India. The per capita expenditure is found to be Rs. 12,187. 3.3 Item-wise Expenditure Item wise spending also displays large variance. Among the 12 groups of handicrafts listed earlier, the highest spending was on silk products (23.13%), followed by metal & jewelry (19.97%), cotton textiles (15.75%), wool textiles (6.19%) and leather products ( 5.75%). There was low spending on items like natural fiber (0.43%), glass (0.60%), bamboo products (0.64%) and mixture of items (0.89%). The detailed data on handicraft items and the amount spent on those items by foreign tourists are given in Table 3.7. The data presented in this table do not relate to all the tourists interviewed during the survey, since about 1000 respondents could not provide item wise break-up of their expenditure even though they could give the total expenses on handicrafts. 3.4 Average Expenditure Per Tourist Tables 3.8 – 3.13 present per capita expenditure incurred by foreign tourists arranged according to the age, sex, profession, income, number of days stayed and city of exit. The following may be noted: Per capita expenditure per respondent tourist is the highest in the age group 45-54 years (Rs.16333), followed by the age group 35-44 years (Rs.12686) and 25-34 years (Rs.11655). Per capita expenditure was the lowest in the age group 65 and above. Female tourists spend (Rs.12897) more than their male counterparts (Rs.11680). National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 25 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 26. Survey of Foreign Tourists’ Expenses on Handicrafts Business tourists spend the highest on handicrafts (Rs.17392) among all categories of respondents. Industrial categories of tourists spend much less (Rs.11703), followed by agricultural tourists (Rs.9978) and tourists from service category (Rs.9902). As expected student tourists incur an expenditure only of Rs. 4893 on handicrafts in per capita terms. Per capita expenditure is directly related to income categories. While those in the ‘below average’ income bracket incurred an expenditure of Rs.6472, ‘high’ and ‘very high’ categories reported high levels of expenditure on handicrafts, between Rs. 18242 and Rs.33171. Per capita expenditure was found to be the highest among those who stayed beyond two weeks but up to three weeks (Rs.18755). 3.5 Per Capita Per Day Expenditure As per the survey data, respondent tourists’ stay in India varied from one day to more than six months. The purchases of handicraft items also varied widely, ranging from zero to more than one lakh rupees. Table 3.14 presents per capita per day expenditure by respondent tourists. It can be seen that 3673 tourists (30%) had spent between Rs. 250 and Rs. 750 per day on handicraft products (Fig. 5). About 20% of them had spent above Rs. 100 and up to Rs. 250 and almost an equal number (18%) spent between Rs. 750 and Rs. 2000 per day. More than 3% of the tourists had incurred expenditure on handicrafts exceeding Rs. 5000 per day. UNESCO’s Craft/ Tourism Index defined as expenses on handicrafts per foreign tourist per day is found to be Rs. 609 (approx. US $ 13 1). 1 Exchange Rate 1US$ = Rs. 48.30 as on Oct. 2002 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 26 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 27. Survey of Foreign Tourists’ Expenses on Handicrafts Figure 5: Distribution of Respondents based on Per capita Expenditure Class Number of Tourists 4000 3000 2000 1000 0 d. 0 0 0 00 00 00 > 50 00 25 75 en & -1 20 1- 50 -5 1- 1- 1 Sp .1 1- -1 0. .1 0. 0. 50 0. .1 00 00 10 25 o 75 00 N 15 20 50 Expenditure Class It would be worth to see whether the daily expenditure on handicrafts had varied across age, sex, profession, income level of the respondent tourists. The information on daily expenditure with respect to the above determinants is listed in tables 3.15 - 3.19 (also Figs. 6-8). The main findings, which are in conformity with the trend observed in case of total expenditures, are as follows: In all age categories the maximum number of respondent tourists belonged to the daily expenditure class ranging between Rs. 250 and Rs. 750 per day, except in the case of “less than 25” and “65 & above” slabs where people are seen spending over Rs. 100 and up to Rs. 250 per day. Daily expenditure had shown an increasing trend for tourists having age between 25 and 54 years, after which it started declining. Like total expenditure, the daily expenditure also increased with rise in the income of the tourists. National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 27 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 28. Survey of Foreign Tourists’ Expenses on Handicrafts In terms of profession too, the tourists’ daily expenses on handicrafts repeated the same trend as that of the total expenditure. Businessmen spent the most, while students spent the least. Service professionals and industrialists had spent almost same amount and it was higher than the amount spent by agriculturists and others. Figure 6: Per Capita daily Expenditure and Age 900 800 700 Daily Expenditure (Rs) 600 500 400 300 200 100 0 >25 25-34 35-44 45-54 55-64 65 & > Age group National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 28 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 29. Survey of Foreign Tourists’ Expenses on Handicrafts Figure 7: Per Capita Daily Expenditure and Profession 1200 1000 Daily Expenditure (Rs) 800 600 400 200 0 ce ry s re ts ss er en st ltu ne vi th du r ud u Se si O ric In Bu St Ag Profession . National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 29 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 30. Survey of Foreign Tourists’ Expenses on Handicrafts Figure 8: Per Capita Daily Expenditure and Family Income 2500 Daily Expences (Rs) 2000 1500 1000 500 0 Below Average More High Very Average than High Average Family Income National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 30 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 31. Survey of Foreign Tourists’ Expenses on Handicrafts 3.6 Nationality wise Expenditure The survey data on expenses on handicrafts were organized according to the nationality of the tourists. It was observed that US nationals have spent the highest amount (Rs. 26.76 million) on Indian handicrafts and their combined expenditure formed about 18% of the total expenditure on handicrafts by all the 12,250 visiting foreign tourists interviewed during the survey. The other higher spenders include nationals from U.K. (12%), France (8%), Australia (6%), Germany (5%), Canada (4%) etc. Tourists from U.A.E., Italy, Japan and Switzerland reported a reasonably high level of expenses with each country having a share of about 3% in total expenditure. While for seven countries (Singapore, Sri Lanka, Netherlands, Nigeria, South Africa, Ireland & Korea) the share in total expenses was 2% each, another nine countries (Malaysia, Spain, China, Belgium, Denmark, Russia, Indonesia, New Zealand & Saudi Arabia) had a share to the tune of 1%. Table 3.20 lists nationality wise total as well as per capita expenditure on handicrafts by foreign tourists from 26 leading nations (each having a share of 1% or more in total expenses). According to survey findings, these 26 countries collectively contributed more than 80% of both the total expenses on handicrafts and total tourists inflow in India. The expenditure pattern of foreign tourists discussed above is in conformity with the trend in total export of handicrafts from India. It may be noted that during 2001-02, USA was the major destination for Indian handicrafts exports with a share of 30% of the total value (excluding hand knotted carpets). The other countries having significant share in Indian handicrafts exports include UK (11%), Germany (10%), France (5%), Italy (4%), Japan (4%), Canada (3%) and Australia (2%). As may be noticed from table 3.21 these eight countries absorbing 69% of total handicraft exports from India are the same nations whose citizens had contributed major part of the total amount spent (59%) on handicraft products while on tour to India. National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 31 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 32. Survey of Foreign Tourists’ Expenses on Handicrafts In terms of per capita expenditure, however, the highest spenders on handicrafts are found to be the tourists from UAE (Rs. 28,376), followed by Saudi Arabia (Rs. 26,955), Nigeria (Rs.25073), Ireland (Rs. 24687) and Canada (Rs. 21,204). The US tourists who had the highest share (18%) in total expenses reported much less per capita expenditure (6th rank). The Japanese tourist was seen to incur the least expenses (Rs. 5249) on handicrafts. Tourists from ten nations (Indonesia, New Zealand, Singapore, Malaysia, China, Spain, Russia, Korea, Sri Lanka & Japan) had reported per capita expenditures, less than the average for all countries, Rs. 12,187 (table 3.20). The product wise expenditures by foreign tourists from the same 26 nations are presented in table 3.22. The data in this table represent the percentage(s) of the total expenditure (on handicrafts) a respondent tourist spends on a particular item. It can be seen from the table that silk, metal & jewelry, cotton textiles, leather products and wool textiles remained the most bought handicraft items by the foreign tourists visiting India irrespective of their country of origin. For tourists from South Africa, Belgium, Sri Lanka, Nigeria and Italy silk alone contributed more than 30% of their total expenditures on all handicrafts. The UAE tourists had a strong preference for Indian cotton textiles as they incurred more than 60% of their total expenditure on this item. Similarly, nationals from Switzerland and Nigeria also displayed preference for cotton textile (handicraft) products from India. Metal & jewelry items were bought in high values (forming 25% or more of the total purchase) by tourists from the Netherlands (55%), Russia (34%), Canada (29%) and France (26%). 3.7 Currency Used During the survey the foreign tourists were asked to provide information on currency used by them while purchasing various handicraft items in India. The summary of information on currency used is presented in table 3.23. It can be seen that, as expected, Indian rupee (INR) was the main currency used by respondent tourists while buying the handcraft products. The next frequently used currency was the US dollar. In spite of being a relatively new currency Euro has outperformed Pound National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 32 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 33. Survey of Foreign Tourists’ Expenses on Handicrafts Sterling in almost all products. A significant number of tourists are also seen to use credit cards at the time of purchase. Table 3.1 : Distribution of Tourists (%) acc. to Number of Days Stayed and Age Age category (Years) Days Stayed Total (No.) 65 & (Nos.) <25 25-34 35-44 45-54 55-64 above 1-2 3.87 3.67 3.58 3.60 2.55 1.63 439 3-7 25.15 30.38 31.84 27.64 22.92 19.51 3638 8-14 21.99 25.47 28.87 27.00 27.08 29.27 3279 15-20 16.71 16.43 15.42 18.41 19.68 17.07 2017 21-30 12.23 13.22 10.17 11.50 17.82 25.20 1469 31-45 5.19 4.96 6.35 6.16 4.17 4.07 692 46-90 8.97 4.01 2.99 3.89 4.40 1.63 496 91-180 4.22 1.17 0.40 0.99 0.93 0.81 137 181 & above 1.67 0.70 0.38 0.81 0.46 0.81 83 Total (Nos.) 1137 4115 4721 1722 432 123 12250 % to total 9.28 33.59 38.54 14.06 3.53 1.00 100.00 Average 31 20 17 20 25 19 20 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 33 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 34. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.2 : Distribution of Tourists (%) acc. to Number of Days Stayed and Sex Days Stayed Male Female Total (Nos) (No.) 1-2 3.82 3.25 439 3-7 31.25 27.52 3638 8-14 26.79 26.74 3279 15-20 15.72 17.51 2017 21-30 11.49 12.69 1469 31-45 5.23 6.23 692 46-90 3.85 4.33 496 91-180 1.11 1.14 137 181 & above 0.74 0.59 83 Total (Nos.) 7145 5105 12250 % to total 58.33 41.67 100.00 Average 19.92 20.33 20.09 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 34 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 35. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.3: Distribution of Tourists (%) acc. to Number of Days Stayed and Profession Days Stayed Profession Total (No.) Service Business Industry Agriculture Students Others (Nos.) 1-2 3.48 4.82 2.59 2.00 2.17 2.52 439 3-7 31.48 33.64 19.06 16.67 23.82 27.31 3638 8-14 26.78 28.82 25.65 24.67 21.65 26.08 3279 15-20 15.86 16.07 17.06 25.33 16.84 17.15 2017 21-30 11.13 9.58 17.88 16.67 14.27 14.32 1469 31-45 6.22 3.97 13.06 7.33 6.82 4.53 692 46-90 3.84 2.45 3.29 4.00 8.18 5.58 496 91-180 0.80 0.38 0.71 2.00 4.01 1.56 137 181 & above 0.42 0.27 0.71 1.33 2.25 0.96 83 Total (Nos.) 3361 4456 850 150 1247 2186 12250 % to total 27.44 36.38 6.94 1.22 10.18 17.84 100.00 Average 18 16 24 25 34 23 20 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 35 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 36. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.4: Distribution of Tourists (%) acc. to Number of Days Stayed and Income Annual Family Income Days Stayed Total (No.) Below More than Very (Nos) Average High Average Average High 1-2 3.69 3.28 3.49 4.56 1.25 439 3-7 19.19 28.02 31.37 30.96 22.26 3638 8-14 19.56 25.42 26.85 29.13 30.09 3279 15-20 15.87 17.26 15.90 15.87 21.00 2017 21-30 17.34 12.62 11.79 10.21 16.61 1469 31-45 8.49 6.61 5.08 4.96 5.96 692 46-90 7.75 4.29 4.26 3.01 2.51 496 91-180 6.64 1.67 0.73 0.57 0.31 137 181 & above 1.48 0.83 0.53 0.73 0.00 83 Total (Nos.) 271 3962 5240 2458 319 12250 % to total 2.21 32.34 42.78 20.07 2.60 100.00 Average 33 22 19 18 17 20 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 36 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 37. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.5: Distribution of Tourists (%) acc. to Number of Days Stayed and City of Exit Days Stayed City All India (No.) (Nos.) Delhi Mumbai Chennai Kolkata Hyderabad Bangalore 1-2 5.34 2.13 2.17 4.63 0.00 1.73 439 3-7 37.20 25.00 29.06 15.21 6.94 19.85 3638 8-14 23.89 31.89 25.28 18.68 14.44 43.93 3279 15-20 10.36 21.01 19.77 25.95 18.06 24.28 2017 21-30 9.63 13.18 13.47 16.03 29.17 6.36 1469 31-45 8.29 2.80 2.23 5.12 18.06 2.12 692 46-90 4.37 2.71 3.84 8.93 10.00 0.96 496 91-180 0.63 0.69 2.45 3.80 2.22 0.58 137 181 & above 0.30 0.58 1.73 1.65 1.11 0.19 83 Total (Nos.) 5358 3612 1796 605 360 519 12250 % to total 43.74 29.49 14.66 4.94 2.94 4.24 100.00 Average 17 19 27 31 32 15 20 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 37 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 38. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.6: Total Expenditure on Handicrafts by Respondents Per Capita No. of Average Expenditure. Class Percent Respondents Exp. (Rs.) (Rs.) 1- 500 637 5.20 343 501-1000 1000 8.16 813 1001-2000 1735 14.16 1594 2001-5000 3335 27.22 3475 5001-10000 2454 20.03 7442 10001-25000 1852 15.12 15629 25001-50000 475 3.88 34319 50001-100000 160 1.31 71066 100001 & above 176 1.44 335410 No spending 426 3.48 0 Total 12250 100.00 12187 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 38 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 39. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.7: Item wise Expenditure on Handicrafts by Respondents Per Item wise % to total No.of Resp. Item capita Exp. (Rs) Exp. incurred expenditure Exp.(Rs) Textiles Silk 34534294 7409 23.13 4661 Cotton 23506987 5321 15.75 4418 Wool 9239398 5250 6.19 1760 Others 5809262 4563 3.89 1273 Clay 2377445 1570 1.59 1514 Bamboo 953170 1418 0.64 672 Wood 5768142 2091 3.86 2759 Metal & Jewellery 29807345 6040 19.97 4935 Natural Fibre 644410 1159 0.43 556 Leather 8585426 2685 5.75 3197 Paper & Paper products 1799247 1362 1.21 1321 Glass 900364 1144 0.60 787 Local raw material 2011636 2395 1.35 840 Mixture of raw mater. 1336048 3267 0.89 409 Others 8891473 2755 5.96 3227 Item break up not available 13131837 4129 8.80 ** Total Exp. 149296483 12187 100.00 12250 ** About 1000 respondents could not provide item wise expenditure National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 39 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 40. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.8: Distribution of Respondents (%) acc. to Total Expenditure and Age Age category (Years) Per Capita Total Exp.Class 65 <25 25-34 35-44 45-54 55-64 (Nos.) (Rs.) & above 1- 500 9.67 5.52 3.62 3.89 8.80 19.51 637 501-1000 13.81 9.26 6.19 7.14 7.41 12.20 1000 1001-2000 20.49 15.87 12.05 11.73 13.19 17.07 1735 2001-5000 31.31 28.17 26.65 24.80 25.69 19.51 3335 5001-10000 12.31 18.59 22.83 22.65 15.28 12.20 2454 10001-25000 7.21 12.47 18.17 18.00 19.21 4.88 1852 25001-50000 1.50 3.77 4.55 4.24 3.24 0.81 475 50001-100000 0.70 1.46 1.10 1.80 1.85 0.81 160 100001 & above 0.79 1.39 1.44 2.03 1.62 0.00 176 No spending 2.20 3.52 3.39 3.72 3.70 13.01 426 Total (Nos.) 1137 4115 4721 1722 432 123 12250 % to total 9.28 33.59 38.54 14.06 3.53 1.00 100.00 Av. Expenditure 7106 11655 12686 16333 11092 3622 12187 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 40 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 41. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.9: Distribution of Respondents (%) acc. to Total Expenditure and Sex Per capita Exp. Class (Rs.) Male Female Total (Nos) 1- 500 5.25 5.13 637 501-1000 8.26 8.03 1000 1001-2000 14.11 14.24 1735 2001-5000 27.92 26.25 3335 5001-10000 20.14 19.88 2454 10001-25000 14.14 16.49 1852 25001-50000 3.15 4.90 475 50001-100000 1.27 1.35 160 100001 & above 1.47 1.39 176 No spending 4.30 2.33 426 Total 7145 5105 12250 % to total 58.33 41.67 100.00 Av. Expenditure 11680 12897 12187 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 41 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 42. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.10: Distribution of Respondents (%) acc. to Total Expenditure and Profession Per Capita Profession Total Exp.Class Service Business Industry Agriculture Students Others (Nos.) (Rs.) 1- 500 5.83 3.66 4.35 4.67 8.34 5.95 637 501-1000 9.16 5.83 7.41 5.33 13.63 8.74 1000 1001-2000 15.56 10.73 14.59 12.00 20.53 15.37 1735 2001-5000 28.53 24.78 25.29 27.33 32.88 27.72 3335 5001-10000 20.35 21.50 22.59 24.67 13.23 19.12 2454 10001-25000 12.50 19.37 15.76 16.00 8.26 14.09 1852 25001-50000 3.33 5.12 4.71 2.67 0.88 3.66 475 50001-100000 1.04 1.82 1.88 1.33 0.32 1.01 160 100001 & above 1.22 2.40 1.06 0.67 0.24 0.69 176 No spending 2.47 4.80 2.35 5.33 1.68 3.66 426 Total 3361 4456 850 150 1247 2186 12250 % to total 27.44 36.38 6.94 1.22 10.18 17.84 100.00 Av. Expenditure 9902 17392 11703 9978 4893 9593 12187 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 42 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 43. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.11: Distribution of Respondents (%) acc. to Total Expenditure and Income Annual Family Income Per Capita Exp. Total Class (Rs.) Below More than Very (Nos) Average High Average Average High 1-500 12.18 6.94 4.54 3.42 2.19 637 501-1000 12.92 10.12 7.73 5.66 6.27 1000 1001-2000 15.50 19.28 12.96 9.36 6.27 1735 2001-5000 26.57 32.00 26.95 21.72 15.36 3335 5001-10000 14.76 15.90 22.23 23.03 16.61 2454 10001-25000 10.70 9.41 16.03 21.28 27.27 1852 25001-50000 2.58 1.92 3.68 6.27 14.11 475 50001-100000 1.11 0.71 1.11 2.16 5.64 160 100001 & above 0.37 0.81 1.30 2.40 5.02 176 No spending 3.32 2.90 3.47 4.72 1.25 426 Total 271 3962 5240 2458 319 12250 % to total 2.21 32.34 42.78 20.07 2.60 100.00 Av. Expenditure 6472 7456 11943 18242 33171 12187 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 43 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 44. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.12: Distribution of Respondents (%) acc. to Total Expenditure and City of Exit Per Capita City All India Exp.Class (Rs.) Delhi Mumbai Chennai Kolkata Hyderabad Bangalore (Nos.) 1- 500 3.17 7.78 5.18 12.89 0.28 2.70 637 501-1000 5.58 12.32 7.29 14.21 2.78 5.59 1000 1001-2000 12.34 16.39 15.14 23.64 1.94 11.56 1735 2001-5000 29.38 26.58 27.95 27.60 18.06 12.91 3335 5001-10000 21.87 16.89 21.10 9.09 30.00 25.05 2454 10001-25000 17.34 10.83 13.20 4.96 32.78 28.32 1852 25001-50000 4.16 3.57 2.56 1.32 9.44 6.74 475 50001-100000 1.01 2.05 0.56 0.33 3.06 1.73 160 100001 & above 0.65 2.91 0.17 0.50 1.67 4.62 176 No spending 4.50 0.69 6.85 5.45 0.00 0.77 426 Total 5358 3612 1796 605 360 519 12250 % to total 43.74 29.49 14.66 4.94 2.94 4.24 100.00 Av. Expenditure 9765 17680 6524 4308 16939 24458 12187 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 44 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 45. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.13: Distribution of Respondents acc. to Per Capita Expenditure and Number of Days Stayed Per Capita Exp. Days spent by tourists (No.) Class (Rs.) 181 & 1-2 3-7 8-14 15-20 21-30 31-45 46-90 91-180 Total above 1- 500 11.85 6.57 3.20 5.40 4.63 3.32 5.85 4.38 7.23 637 501-1000 8.88 8.36 8.20 8.97 7.01 5.64 10.08 9.49 2.41 1000 1001-2000 13.44 14.54 15.37 13.98 14.91 10.40 8.87 12.41 10.84 1735 2001-5000 21.18 30.13 28.33 24.99 26.62 20.95 24.60 27.74 20.48 3335 5001-10000 13.44 18.77 21.68 20.33 19.67 22.54 20.16 16.79 27.71 2454 10001-25000 6.83 10.50 14.70 18.54 17.90 25.87 19.96 18.25 21.69 1852 25001-50000 2.28 2.89 3.87 3.47 4.29 7.80 6.85 5.11 6.02 475 50001-100000 1.14 1.35 1.25 1.14 1.29 1.88 1.41 1.46 1.20 160 100001 & above 1.82 0.85 1.83 2.28 1.23 1.01 0.60 1.46 1.20 176 No spending 19.13 6.05 1.56 0.89 2.45 0.58 1.61 2.92 1.20 426 Total 439 3638 3279 2017 1469 692 496 137 83 12250 % to total 3.58 29.70 26.77 16.47 11.99 5.65 4.05 1.12 0.68 100.00 Av. Expenditure 9635 8969 12623 18755 11037 13616 10781 9548 11203 12187 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 45 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 46. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.14: Distribution of Respondents acc. To Per Capita Daily Expenditure on Handicrafts Daily Exp. Class Respondents (Rs.) No. Percent 1- 50 1113 9.1 50.1-100 1190 9.7 100.1-250 2420 19.8 250.1-750 3673 30.0 750.1-2000 2251 18.4 2000.1-5000 769 6.3 5000.1-15000 266 2.2 15000.1 & above 142 1.2 No Spending 426 3.5 Total 12250 100.00 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 46 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 47. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.15: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and Age Age category (Years) Daily Exp. Class Total (Rs.) 65 & (Nos.) <25 25-34 35-44 45-54 55-64 above 1- 50 21.46 10.04 5.27 6.74 13.43 26.83 1113 50.1-100 16.27 11.23 7.82 7.43 8.56 7.32 1190 100.1-250 23.13 21.51 17.73 18.12 20.60 27.64 2420 250.1-750 22.52 27.70 32.79 33.62 29.63 17.89 3673 750.1-2000 9.76 16.23 22.22 20.79 13.43 5.69 2251 2000.1-5000 2.64 6.34 7.31 5.69 7.87 0.81 769 5000.1-15000 1.50 2.26 2.39 2.26 0.69 0.81 266 15000.1 & above 0.53 1.17 1.08 1.63 2.08 0.00 142 No Spending 2.20 3.52 3.39 3.72 3.70 13.01 426 Total (Nos.) 1137 4115 4721 1722 432 123 12250 % to total 9.28 33.59 38.54 14.06 3.53 1.00 100.00 Av. Expenditure 229 583 746 817 444 191 609 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 47 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 48. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.16: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and Sex Daily Exp.Class Total Male Female (Rs.) (Nos) 1- 50 8.83 9.44 1113 50.1-100 9.36 10.21 1190 100.1-250 19.73 19.78 2420 250.1-750 30.52 29.23 3673 750.1-2000 18.07 18.81 2251 2000.1-5000 5.93 6.76 769 5000.1-15000 2.11 2.25 266 15000.1 & above 1.13 1.19 142 No Spending 4.30 2.33 426 Total (Nos.) 7145 5105 12250 % to total 58.33 41.67 100.00 Av. Expenditure 586 634 609 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 48 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 49. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.17: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and Profession Daily Exp.Class Profession Total (Rs.) Service Business Industry Agriculture Students Others (Nos.) 1- 50 8.99 4.40 9.65 7.33 20.77 12.03 1113 50.1-100 10.24 6.17 11.29 9.33 17.56 11.07 1190 100.1-250 20.83 16.02 21.88 30.67 24.62 21.36 2420 250.1-750 33.23 30.23 30.71 26.67 22.61 28.64 3673 750.1-2000 16.69 24.28 15.88 14.00 9.62 15.19 2251 2000.1-5000 4.67 9.00 4.94 5.33 2.57 5.90 769 5000.1-15000 1.96 3.19 2.47 0.67 0.48 1.37 266 15000.1 & above 0.92 1.91 0.82 0.67 0.08 0.78 142 No Spending 2.47 4.80 2.35 5.33 1.68 3.66 426 Total (Nos.) 3361 4456 850 150 1247 2186 12250 % to total 27.44 36.38 6.94 1.22 10.18 17.84 100.00 Av. Expenditure 550 1087 488 399 144 417 609 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 49 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 50. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.18: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and Income Annual Family Income Daily Exp.Class Total (Rs.) Below More than (Nos) Average High Very High Average Average 1- 50 26.94 12.92 7.65 4.64 4.08 1113 50.1-100 12.92 13.48 8.84 5.49 7.21 1190 100.1-250 19.56 23.60 19.83 14.44 11.91 2420 250.1-750 20.30 30.09 29.43 32.55 26.33 3673 750.1-2000 8.49 11.81 20.92 23.60 26.33 2251 2000.1-5000 6.27 3.26 6.81 8.99 14.11 769 5000.1-15000 1.48 1.31 2.02 3.54 5.33 266 15000.1 & above 0.74 0.63 1.03 2.03 3.45 142 No Spending 3.32 2.90 3.47 4.72 1.25 426 Total (Nos.) 271 3962 5240 2458 319 12250 % to total 2.21 32.34 42.78 20.07 2.60 100.00 Av. Expenditure 196 339 629 1013 1951 609 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 50 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 51. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.19: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and City of Exit Daily Exp.Class City All India (Rs.) (Nos.) Delhi Mumbai Chennai Kolkata Hyderabad Bangalore 1-50 6.25 11.21 10.36 25.62 5.28 2.50 1113 50.1-100 5.82 14.34 10.24 19.34 7.50 6.17 1190 100.1-250 17.25 23.09 20.04 25.29 20.56 14.45 2420 250.1-750 32.40 26.97 32.02 17.36 33.06 31.60 3673 750.1-2000 23.44 13.51 14.64 3.97 23.33 26.20 2251 2000.1-5000 7.63 5.18 4.06 1.98 9.17 10.60 769 5000.1-15000 1.98 2.66 1.56 0.99 0.83 5.20 266 15000.1 & above 0.73 2.35 0.22 0.00 0.28 2.50 142 No Spending 4.50 0.69 6.85 5.45 0.00 0.77 426 Total (Nos.) 5358 3612 1796 605 360 519 12250 % to total 43.74 29.49 14.66 4.94 2.94 4.24 100.00 Av. Expenditure 574 931 242 139 529 1631 609 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 51 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 52. Survey of Foreign Tourists’ Expenses on Handicrafts Table 3.20: Total Expenditure on Handicrafts acc. to Nationality of Respondents Total Expenditure Tourists Per Capita Country (Rs. Million) %age (No.) Expenditure (Rs.) USA 26.76 18 1331 20103 UK 17.58 12 1223 14373 France 11.98 8 907 13211 Australia 8.97 6 616 14555 Germany 7.91 5 735 10756 Canada 5.45 4 257 21204 UAE 4.97 3 175 28376 Italy 4.85 3 454 10681 Japan 4.44 3 846 5249 Switzerland 4.08 3 208 19634 Singapore 3.72 2 381 9752 Sri Lanka 3.57 2 568 6293 Netherlands 3.24 2 243 13333 Nigeria 2.58 2 103 25073 South Africa 2.47 2 185 13326 Ireland 2.42 2 98 24687 Korea 2.42 2 347 6962 Malaysia 2.15 1 250 8593 Spain 2.08 1 265 7851 China 1.98 1 242 8183 Belgium 1.89 1 117 16156 Denmark 1.61 1 120 13430 Russia 1.58 1 228 6913 Indonesia 1.49 1 129 11569 New Zealand 1.36 1 120 11331 Saudi Arabia 1.35 1 50 26955 Others 16.42 11 2052 8001 National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 52 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
  • 53. Survey of Foreign Tourists’ Expenses on Handicrafts All Countries 149.30 100 12250 12187 Table 3.21: Top Ten Spending Nations on Indian Handicrafts ( % of Total) NPC Survey EPCH@ Data on SL. No. Country Findings Exports (Oct., 2002) (2001-02) 1 USA 18 30 2 UK 12 11 3 France 8 5 4 Australia 6 2 5 Germany 5 10 6 Canada 4 3 7 UAE 3 na 8 Italy 3 4 9 Japan 3 4 10 Switzerland 3 2 Total of 10 countries 62 71 @ Export Promotion Council for Handicrafts, na = Not Available Note : Total excludes UAE National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 53 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org