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AN IN DEPTH STUDY OF

TOURISM INDUSTRY
PRESENTED TO: MR PRANAV YADAY IV SEMESTER - 520429452

DISTANCE EDUCATION SIKKIM MAINPAL UNIVERSITY.

5TH MILE, TADONG, GANGTOK - 7371 !

IN PARTIAL FULFILLMENT OF THE RE"UIREMENTS FOR THE #MANAGEMENT RESEARCH PRO$ECT% COURSE IN THE MASTER OF &USINESS ADMINISTRATION PROGRAMME

PREFACE Today a stiff competition is seen in the economy, Now, the Present scenario of the business world is quite different from the past. Ethics, Conflicts, new ideologies, new ideologies, energy scarcities and crazy dogmas are just. The few of the characteristics that ma e the present quite different from the past. !n order to cope up in the e"er#changing en"ironment, the nowledge of all business worlds is a need today. $.%.&. programs and management institution pro"ide a global manager to this modern business world. %ut only nowledge is not enough for the business %ut successful implementation of the now s the ey to success. 'ence in order to get acquainted with the practical practical life wor . &fter a lot of brain storming we decided tourism industry as a title of project. (e decided to wor on this title. (e referred so many magazines, wed sites, boo s and newspapers for. The study purpose. This project will be fruitful for us in the future also. (e are presenting this report, which comprise of secondary data and to out best nowledge it is true and fair. nowledge each

student is required to implement the theoretical aspects of the subject in to the

ACKNO'LEDGEMENT !t would really difficult for me to complete the project without find co# )peration of certain people. !n other words are so many e*ternal who directly help me in our project. +irst of all we are grateful to $r. ,ai anthan -ir who guided us regarding the project contents and issues related to it. +urther we are "ery grateful to $r. .ajesh /anatra who pro"ided their "aluable guidance to us regarding the project. (e are also "ery grateful to out friends, who helped us and guided us .egarding the sources of information related to particular industry (e are also "ery grateful to my concern 01i"ine %irds 2 $aninagar3 staff especially librarian, (ho helped us and consider our con"enience and gi"e priority to us. (e are also "ery grateful to the librarian of &$& who guided us regarding the sources of information.

E(ECUTIVE SUMMARY Tourism !ndustry is one of the fastest growing industry in the world with an a"erage /1P of 44.56. Changing lifestyle of the people because of a sudden increase in their income le"els accredited to the opening up of the economy and $ultinational Corporation has led to the steep growth of tourism industry in !ndia. Tourist7s attention is shifting from established destinations such as European countries to emerging destination such as &sia#pacific countries. Tra"el barriers ha"e been bro en and there is a flow of free trade. Tourism has become multiple acti"ates focused with the integration of shopping and recreation, entertainment and education and culture and meeting8business center de"elopment. !ndia 2 a subcontinent sprawling se"eral hundred ilometers, with

population o"er nine hundred million, is undoubtedly the largest democracy in the world with a thousand year old ci"ilization. T)* +,-.*/0 +,-123*4 56 -708--9 0- 0)* 15,2-74 ,*54-64 :-, I6325 &*26; 47/) 5 4-7;)0 5:0*, 0-7,240 3*4026502-6. The !ndian Tourism industry comprise go"ernment of !ndia, tour operators, tour agents, hotels !ndian Tourism de"elopment corporation etc. further, the project categorizes tourism industry as follows9 H-8235< 0-7,24=, A31*607,* 0-7,24=, P28;,2=5;* 0-7,24= 563 E/- > 0-7,24=, *0/. !n !ndia there are many tourist destinations, which are not mar eted properly. -o in this project we ha"e con"ersed about the important of M5,9*026; M2? in the !ndian Tourism !ndustry, which consist of Product $i*, Promotion $i*, Price $i*, Place and people.

Tourism !ndustry is deeply affected by the 4-/258, 0*/)6-8-;2/58, */-6-=2/ :5/0-,4. &ll these factors ha"e been gi"en their due credit in the project. Economy being the bloodline of any country has been de"oted a major chun in the study of these factors followed by social and technological factors. /o"ernment policies pro"ide a basic framewor , which minds and controls e"ery industry. Therefore, it has to be studied so that not a single factor remains untouched. +or the de"elopment of any industry the basic infrastructure facilities are "ery important. !ndian railway is the world7s largest networ under a single management. The railway is one of the facilities required for tourism besides a"iation, telecommunications and accommodation. Tour operators and tra"el agents perform the role of a liaison and a catalyst too in this industry without whom it is "ery difficult to operate. P,-=-02-658 5/021202*4 play an important role in the de"elopment of any acti"ity. !nternational road shows, conferences, tourism awareness programs, sporting e"ents, media it, etc. ha"e contributed a lot in promoting !ndian tourism. The project also gi"es a brief about the promotional measures. &s we now that tourism industry of !ndia is growing at a "ery fast pace so in this we ha"e +,-.*/0 584- 3*584 @20) 0)* /7,,*60 4/*65,2- 563 0)* /)588*6;*4 :5/*3 A< 0)* 0-7,24= 263740,< -: I6325. The tourism industry is also 5::*/0*3 A< 0)* -6;-26; @5, A*0@**6 USA 563 I,5B. !f this war continues for the longer time the tourist would not tra"el in the European countries.

& few suggestions about de"elopment of tourism in !ndia ha"e been mar et in the project such as planning, organizational structure, business process reengineering, information systems, operations management, mar eting strategy formulation, en"ironmental impact assessment and project management. %esides tourism industry as a whole a study has been made about Tourism Corporation of /ujarat :imited. &n o"er"iew of the organization and its policies and abo"e all an attempt has been made to perform a -()T analysis for both the industry at the macro le"el as well as for the origination at the end of the project study.

RESEARCH O&$ECTIVES T)* -A.*/021* A*)263 -7, 763*,05926; 0)24 +,-.*/0 24: ; ; ; ; ; To ha"e nowledge about the $ar eting of the Tourism industry in !ndia. To pro"ide an outloo both the people already in the industry as well as for any entrepreneur who wants to enter the industry. To ha"e an in# depth industry in !ndia To identify the specific problems a tourism industry is facing. To study the impact of the tourism industry on the local economy and to establish benchmar s for the industry to realize its full economic potentials. SOURCES OF DATA COLLECTION S*/-635,< D505 C-88*/02-6 S*/-635,< 3505 @288 A* -A0526*3 :,-= 4-7,/*4 829*: 4. <. =. >. ?. 5. /CC! %oo s (ebsites $agazines @ournals Newspapers nowledge about the wor ing of the tourism

CONTENT SR. NO. 1. 4.4 4.< 4.= 4.> !. 3. =.4 C. 5. ?.4 ?.< ?.= ?.> ?.? E. 7. B.4 B.< B.= B.> F. C.4 C.< D. A.4 A.< A.= Certificate Preface &c nowledgement E*ecuti"e -ummary .esearch $ethodology

PARTICULAR D*:26202-6 0- T-7,24= I63740,< Tourism (ho is a Tourist 1efinitions followed in !ndian and across the world !nternational definitions H240-,< -: T-7,24= I63740,< A6 I63740,< -1*,12*@ Challenges faced by the /lobal Tourism !ndustry F*507,*4 -: T-7,24= I63740,< T-7,24= 26 A425 Tourism /rowth factors Economic /rowth !ncrease in !ncome and :eisure time :iberalizations of &ir transport +uture outloo T)* I63256 4/*65,2N*@ C-6/*+04 26 T-7,24= I63740,< Eco Tourism 'eritage Tourism &d"enture Tourism %uddhist Circuit and Pilgrimage Tourism C7,,*60 S/*65,2- -: T-7,24= I63740,< Potential /rowth of Tourism Purpose of ,isit T-7,24= M5,9*026; Dsers of Tourism -er"ices $ar et -egmentation for tourism 1esigning a pac age tour

PAGE NO. 1 4 4 = ? 7 1! 4= 15 1D 4A 4A <4 << << !5 3E =5 =B =C ><. C5 >5 >A 5 ?< ?= ?B

A.> A.? A.5 A.B A.C A.A A.4E 1 . 4E.4 4E.< 4E.= 4E.> 11. 44.4 44.< 44.= 44.> 1!. 4<.4 4<.< 4<.= 4<.> 4<.? 13. 4=.4 4=.< 4=.= 4=.> 4=.? 4=.5 1C. 4>.4 4>.< 4>.= 4>.> 4>.? 4>.5 4>.B 4>.C 4>.A

1estination $anagement of &irport &irlines .ail and .oad and Transportation 'otels .esort .epresentati"es 'otels S'OT A658<424 -trength (ea ness )pportunities Threats PEST A658<424 Political8:egal Economic -ocial Technological P-,0*,%4 F21* F-,/* A658<424 Competition &mong .i"alry Threat of new Entrance Threat from the substitute %argaining Power of -upplier %argaining Power of %uyer R-8* -: S7++-,0 I63740,2*4 &irlines 'otel .ailways .oad Telecommunication Tra"el &gent and Tour )peration T-7,24= F2656/* C-,+-,502-6 -: I6325 !ncorporation and Commencement of %usiness -hare Capital %usiness of the Company Types of +inancial &ssistance for Tourism Projects Norms of &ssistance Technological En"ironment Norms for &utomatic &ppro"al of foreign 1irect !n"estment !ncenti"es for in"estment !n"estment "is#F#"is go"t. policy

?C ?C ?A ?A ?A 54 54 E3 5= 5> 5? 55 EF 5C B5 C4 A= DC A? AB AA 4EE 4E4 1 ! 4E< 4E> 4EB 44E 444 44= 11D 44C 44C 44C 44A 4<E 4<< 4<? 4<? 4<B

15. 4?.4 4?.< 4?.= 45. 45.4 45.< 45.= 17. 1F. 1D. 4A.4 4A.< 4A.= 4A.> 4A.? 4A.5 4A.B 4A.C 4A.A 4A.4E 4A.44

&73;*0 I=+5/0 -6 T-7,24= !mpact on 'otels !mpact on &irlines !mpact on .ailway %udget on Tourism Challenges faced by Tourism !ndustry 'urdles to /rowth !nfrastructure Tourist +acilitation and security I=+5/0 -: '54 R*/-==*63502-64 G7.5,50 T-7,24= !ntroduction !nfrastructure position Transport connections $ar eting $ajor de"elopments )bjecti"es Proposed approach and strategy Planning for tourism de"elopment 'uman resource de"elopment -()T &nalysis 2 /ujarat Tourism Gey -uccess +actors %ibliography &nne*ure

1!D 4=E 4=4 4== 4=5 4=5 4=B 4>4 1C! 1CE 15! 4?< 4?= 4?> 4?> 4?? 4?B 4?C 4?A 45= 45> 45?

1. DEFINITIONS OF TOURISM INDUSTRY 1.1 T-7,24= Tourism is the totality of the relationship and phenomenon arising from the tra"el and stay of strangers, pro"ided the stay does not imply the establishment of permanent residence and is not concerned with the remunerated acti"ities. 1.! ')- 24 T-7,240G %efore we precede any further we need to define a tourist for our study. The most suitable definition we came across is gi"en by the Dnited Nations. This definition is generally followed by all the countries in compiling their tourist statistics and is not based on moti"ation but on an economic concept. H& Tourist is a temporary "isitor to a country other than the one in which he usually resides for any reason other than following an occupation remunerated within the country "isited.H !t is further elaborated that the temporary period should not be less <> hours. There is considerable cross border day traffic amongst many groups of neighboring countries. -uch "isitors are defined as E*cursionists. )n the abo"e lines it has been argued that if pleasure and recreation ha"e become the main moti"ation of present day tourism then why should "isitors who whose main purpose is to conduct business, attend a conference or see relati"es and friends be considered as tourists I The answer is that a "isitor to a conference or one who has come for a business purpose in his spare time also beha"es li e a Jpleasure4 tourist. 'e goes on sightseeing and shopping trips, "isits clubs and bars, and so on. The determining factor is whether the "isit is being paid for in foreign currency or from within the country.

The abo"e definition can be "astly different from what we generally percei"e. 'owe"er, when the facts and the figure are calculated as to the number of people "isiting a country, the abo"e definition is ta en into consideration. ')2/) 0<+* -: /740-=*, 24 5 0-7,240G No formal definition could be found but their e*ist a debate on the profile of the tourist. )ne of the classifications gi"en by &derholt says that there are three major types, they are # T<+* 1 is your con"entional beach holiday ma er who see s sun and sand, shuns contact with the locals, and heads for organized pac age tours and club "acations. T<+* ! combines sightseeing with some bathing in seas or la es, is reasonably curious but not o"erly interested in local culture, and also prefers organized pac ages. T<+* 3 is the Jalert, independent tra"elersJ who is eager for new impressions and e*periences, as well as social and culture contacts. 'e or she prefers small hotels typical of the host countryJs architecture and materials, and arranges trips on an indi"idual basis, not through charters or pac ages. These tra"elers are also often richer, better educated and married. Now !ndia has to decide which type does it want to attract and thus structure its resources for the same.

I6 ;*6*,58 0-7,240 5,*: ; Persons tra"eling for pleasure, health and domestic reason. ; Persons arri"ing in the course of sea cruise. ; Persons tra"eling for business purpose. ; Persons tra"eling for con"ention. 1.3 D*:26202-64 :-88-@*3 26 I6325 563 5/,-44 0)* @-,83 I60*,6502-658 V2420-, &n international "isitor is any person "isiting the country on a foreign passport and the main purpose of "isit is other than e*ercise of an acti"ity remunerated from within the country or establishment of residence in the country. This definition co"ers two segments of "isitors Jtourist and same day "isitorsJ. F-,*2;6 T-7,240 & foreign tourist is a person "isiting !ndia on a foreign passport, staying atleast <> hours in the country, the purpose of whose journey can be classified under on of the following headings. ; :eisure ; %usiness, family, meeting. 1.C I60*,6502-658 3*:26202-64 F-,=4 -: T-7,24= H H H D-=*402/ T-7,24=9 !n"ol"es resident of a gi"en country tra"eling only within this country. I6A-763 T-7,24=: !n"ol"ing non# resident tra"eling in the gi"en country. O70A-763 0-7,24=: !n"ol"ing resident tra"eling in another country.

!nternal tourism, which comprises domestic tourism and inbound tourism. National tourism which comprises demonstration outbound tourism. !nternational tourism, which consist of inbound tourism and outbound tourism. &542/ T-7,24= 76204 &ll types of tra"elers engaged in tourism are described as "isitors. Therefore the term "isitor represents the basic concept for the whole system of tourism statistics. T,51*8*,4 ; ,isitors ; )ther tra"elers &lso tourist are o"ernight "isitors while the rest are same day "isitors. I60*,6502-658 12420-,4 +or statistical purpose the term international "isitor describes any person who tra"els to a country other than that in which he or she has usual residence but outside his 8 her usual en"ironment for a period not e*ceeding 4< months and whose main purpose of "isit is other than e*ercise of any acti"ity remunerated from within the country "isited. !. H240-,< -: T-7,24= I63740,< !t is difficult for us to ha"e command on the cyclic mo"ement of fashions, needs, requirements and the lifestyles. The law of nature, which forces us to welcome a change, of course, influences the process of change. !f we delay, the seeds of dissatisfaction and monotony get a conducti"e ne*us for their germination and de"elopment. 'ence to control or regulate the process, we

allow a change which influences our decision#ma ing beha"ior and forces us to welcome a change of place. !t was against this bac ground that the tra"elling was transformed into a business and of late is an industry. The process of transformation has witnessed number of ups and downs in almost all the areas. .ight from the "ery beginning of culture and ci"ilization, we find the process of change continuing, of course as a pilgrimage. There is no doubt in it that the .oman Empire injected life, strength and the continuity to tra"elling and therefore the credibility for the de"elopment of tourism industry ultimately goes to them. The fall of .oman Empire resulted into downfall of tourism, at least till the end of $iddle East. The a"ailable facts re"eal that .oman e"inced interest in "isiting temples, shrines, festi"als and baths for health and amusement. The contours of 1e"elopment underwent radical change atleast till the 4?th century. The trade and commerce along with religious acti"ities gained the momentum but till the beginning of industrial re"olution, tourism continued to remain the matter of pilgrimage. )f Course a number of de"elopments too place between 4?l and 4Cl centuries. -pecially !n the industrial world which raised the significance of specialization or e*pertise for e*celling competition. This moti"ated the elite of the society to go abroad for enriching the nowledge, speeding up the we find learning cycle de"eloping the e*cellence and ma ing in transportation, communication possible cross fertilization of thoughts and ideas. %y the turn of 4Alh century, multifaceted de"elopment and, technological sophistication, which energized the process of industrial

transformation. The tourism started de"eloping as a business and the professional Tra"el agents started ta ing part in the process. (ith the beginning of the <Elh century the process of in"ention and inno"ation stated gaining momentum which made ways for the de"elopment of infrastructural facilities and further added new dimensions in tourism business. No doubts, the

(orld (ar ! and (orld (ar !! obstructed the flow of de"elopment but the second half of the <Eth century pro"ed to be golden age, since almost all the countries of the world started patronizing tourism as an important economic acti"ity. Thomas coo was of the "iew that beauty is for the people. The opinion of n $r. Coo generated new dimension in the tourism business, which pa"ed copious a"enues for de"elopment of tourism as an industry. (e canJt deny that since the time immemorial tra"el has been first choice of masses , the qualitati"e impro"ement in the process could ta e place with the participation and co#operation of leading global organization , such as ().:1 T)D.!-T )./&N!-&T!)N, P&C!+!C &.E& T.&,E: &--)C!&T!)N, !NTE.N&T!)N&: DN!)N )+ )++!C!&: T.&,E: )./&N!-&T!)N or so (ith the de"elopment of a broader concept, the essence of Tourism further distilled and it was more holistic approach because in the general theory of tourism, (alter 'unzi er and Gurt Graph 04A><3 considered it both a human &s well as economic acti"ity. !n 4AB>, %ur at and $edli again brushed up this approach since they "iewed tourism as a composite phenomenon embracing a whole range of different relationship between tra"elerJs and the host population. The fun and e*citement, no doubt, gained the momentum with the holistic approach. This New approach made possible de"elopment of tra"eling business as an industry. The Policy planners as well as the en"ironmentalists pinpointed the side effects of manufacturing industries remained the only solution to stri e a balance between ecology and industry. The tra"eling business that was transformed into an industry was found efficacious in deli"ering goods to the socio#economic molecule and the multiplier effects could be e*tent. .&lmost all the countries started e*ploring new de"ices for generating foreign e*change to economic requirements. fulfill their multi#dimension socio#

The intensity foreign e*change requirement was found at its pea and the tourism appeared to all of them an important source to be tapped optimally. !n the face of succulent benefit, the de"eloped, less de"eloped and e"en the 1e"eloping countries started assigning due weight age to the tourism industry in their national de"elopment agenda. (e agree with this "iew that with tremendous -ocio#economic potential, the tourism industry is considered to be an economic bonanza which pa"es a"enues for the 1e"elopment of a number of allied !ndustries, such as hotel, communication, ban ing transportation, trade and commerce or so. !n addition, we also consider tourism a potential source for ma ing possible world peace through mutual appreciation and international understanding. !n the !ndian perspecti"e, we find -e"enth +i"e Kear Plan as watershed in the 1e"elopment of tourism industry. +or the first time, the "ast potential of tourism as a foreign e*change earner and generator of employment opportunities was recognized. -e"eral policy initiati"es were ta en to de"elop the tourism sector !n the de"elopment of tourism, the public sector has made a significant contribution. )f late, the industry is equipped with a reasonable infrastructural base and is poised for a self#sustained growth. The future growth of tourism is required to be acti"ated with the support of the pri"ate sector. The strategy for the de"elopment of tourism is required to be designed on the basis of low#cost economy, higher le"el producti"ity, efficiency in the use of infrastructure and sophisticated tourist facilities.

!n the Eighth +i"e Kear Plan04AA<#AB3, the special tourism areas ha"e been selected and in the Ninth +i"e Kear Plan00 4AAB#<EE<3, we too forward the energizing the process of de"elopment but the image problem is found complicating the tas of Professionals. !n the business world, we need more professional e*cellence to ma e an assault on the image problem and it is in this conte*t that we ma e a strong ad"ocacy in fa"our of conceptualizing inno"ati"e mar eting with help of world class professionals. (e ha"e tremendous opportunities and the professional e*cellence would ma e ways for capitalizing on the same optimally. 3. A6 I63740,< O1*,12*@ Tourism is one of the worldJs fastest growing industries at present and holds the status of the worldJs No.l industry. There is currently an estimated ?EE million international tra"elers worldwide. The figure is e*pected to rise to 55E million by the end of the year <EE< &d. The tourism industry as a whole is presently estimated to earn o"er D-L=.? trillion world wide creating a job e"ery one of those direct jobs creating another 44 indirect ones. -pending on tourism amounts to ?6#4E6 of total consumer spending in a year, worldwide. !ndiaJs share of the total mar et is a E.?46. Ne"ertheless, tourism has the distinction of being the third largest e*port industry after gems and jewellery and readymade garments in !ndia. The significance of tourism in terms of employment generation !s rising too. !n 4AA5#AB,direct employment in the sector was estimated at about se"en to A.4 million people, accounting for around <.>6 of the total labor force. Tourism has now come to occupy a strategic position and in the near future will be a real money#spinner.

3.1 C)588*6;*4 :5/*3 A< 0)* G8-A58 T-7,24= I63740,< &t present the ;8-A58 0-7,24= 263740,< faces the following issues and challenges 9 ; There is increasing competition from de"eloping countries within the &sian region such as to gain a mar et share of the tourist industry. &t the same time, well # nown industry players such as Thailand, 'ong Gong and -ingapore are launching aggressi"e promotions to attract tourists particularly from Europe. ; &s the won, yen, baht and rupiah suffered the regional currency crisis, there will be a decline in tourist arri"als from -outh Gorea, @apan, Thailand and !ndonesia. ; Tour operators face financial constraints due Hto the slowdown in tourist arri"als and tight credit situation. +eedbac from the industry indicated that C? per cent of tour boo ings for -eptember to 1ecember <EE< were postponed or cancelled. &t the same time, there is a decline in outbound tra"el. The earnings among tourism related companies are forecasted to drop sharply by about =E per cent to >E per cent for the fiscal year <EE=# E>. -mall# sized tra"el agents that concentrate purely on tic eting and outbound tra"el are facing cash flow and capitalization problems. ; ; ; :ow tour boo ing continue to be recorded for the first quarter of <EE< because of the uncertainty that the haze might recur. +oreign tourists are concerned about their personal safety when tra"eling in the region. The hotel industry is facing an o"ersupply of hotel rooms particularly in the Glang ,&::K. !n <EE<, the number of hotels had increased to 4,=5? and o"er E*ceeded the target of 4,=>E hotels by the year <EE>. ; ; There is a tendency for ta*i operators to o"ercharge foreign tourists. Past e*perience in promotions indicated a direct correlation between e*penditure on promotions and tourist arri"als. -o it is necessary to focus

more on increasing promotion e*penditure so as to increase tourist internationally. C. F*507,*4 -: T-7,24= I63740,< +or ma ing the mar eting decision effecti"e, it is pertinent that the tourist Professionals are well aware of the silent features of the tourism product. This would help them in many ways. 1. T-7,24= P,-37/0 24 )2;)8< +*,24)5A8*. Perishability is an important factor that influences the decision#ma ing beha"ior of the tourist professionals. The product is used just when it is offered and therefore, if it remains unused, the chance lost, the business is lost .!f the tourist donJt "isit a particular place, if the seats in hotels, aircraft remains "acant the %usiness is lost .This ma es the product highly perishable and ma e it essential that the tourist professionals ma e the best possible efforts to promote the ser"ices in such a fashion that opportunities ne"er remain untapped. !. T)* 0-7,24= 24 5 4*,12/* +,-37/0 (e find ser"ices the only product used and sold in the tourism industry This ma es it essential that the tourist Professionals assign due weight age to Creati"e mar eting strategies which are found proacti"e. This le"el of judgment &nd nowledge possessed by the indi"iduals and related to tourism reflect on the satisfaction deri"ed by the tourists after "isiting a place. !n this conte*t, the mar eters need to, are high performers, personally committed, imaginati"e and so. This helps them in capitalizing on the opportunities optimally. 3. I6056;2A2820< /-=+82/50*4 0)* 0549 -: =5,9*0*,4 (e are well aware of the fact that tourism is a multi#segment industry in which the transportation and accommodation ser"ices constitute a place of

outstanding significance .The tourist Professionals find it difficult to persuade the users by displaying the seats in the aircraft and the bedrooms in the hotels. The users first use and then come to now about the quality. C. T)* 4*,12/*4 5,* :-, +8*547,* !t is right to mention that the tourism ser"ices are used by the tourist to enjoy. %y ,isiting tourist resorts, spots, sites, beaches, they get pleasure. (e also find the ser"ices instrumental in enriching the nowledge ban of tourists or the crazy persons use the ser"ices to taste the fla"or of ad"enture, This ma es it significant that the tourist organizations ma e the centers attracti"e by adding additional &ttractions. ?. Dsers 5,* 47++-4*3 0- 12420 0)* /*60,* +or a"ailing the ser"ices of the tourism industry, it is pertinent that the users "isit the physically. The users are supposed to come all the way to the spot. This necessitates setting of Product features in a right way. E. A3*B750* 26:,540,7/07,58 :5/28202*4 :-, 0)* 0-7,24= +,-37/0 No doubt that almost all the industries need infrastructural support, but the tourism industry canJt e*ist if hotels, transportation ser"ices are found non# e*istent. Thus we find infrastructural facilities essential to impro"e the quality of ser"ices. Efficient transportation facilities, hygienic hotel accommodation, sophisticated communication ser"ices are some of the facilities add attractions to the tourism ser"ices. 7. T)* 74*,4 5,* 5 )*0*,-;*6*-74 ;,-7+ -: +*-+8* !t is important to mention that the tourism users come from different regions, income groups, sections, age groups, genders, professions or so. This ma es it essential that the are families with the different groups of people using ey infrastructural

the ser"ices. F. F-,*2;6 E?/)56;* E5,6*, Tra"el M Tourism has emerged as the largest e*port industry in the world and !ndia has share in this prosperity. !ts foreign e*change earning from tourism went up from .s. =< crores in 4AB>#B? to .s. 44EEE crores in 4AAB at current prices. Tra"el M Tourism is the third largest foreign e*change earner in the country ne*t to /erms M @ewellery and Te*tile and /arments. !f one were to ignore its negligible import content, tourism would ran e"en higher than the other two in terms of net foreign e*change earnings. D. E=+8-<=*60 G*6*,502-6 +oreign e*change earnings, apart, the Tra"el M Tourism sectorJs potential for Employment generation is immense both in terms of numbers and cost Effecti"eness. Tra"el M Tourism pro"ided direct employment to C.? million people, accounting for <.>6 of the labour force, in <EEE#E4.The figure went up to A.4 million in <EE4#E<.!ndirect employment was of the order of <4.> million. Compared to agriculture, which generates >>.B jobs per million rupees of !n"estment, tourism notches up >>.B jobs for the same in"estment. 5. T-7,24= I6 A425 )"er the last decade, the &sia region has been the fastest growing tourism region in the world. Tourism is one of the most important sectors in a large number of &sian countries. !ncrease in economic growth, disposable income and leisure time, political stability, and aggressi"e tourism campaigns, among other factorsN ha"e fueled the significant growth of tourism. !t re"iews the growth and de"elopment of the tourism industry in the &sian region. The future outloo is bright for the tourism sector, and the region is e*pected to maintain a high rate of growth well into the ne*t century.

5.1

T-7,24= G,-@0) F5/0-,4 & Number of factors are responsible for the rapid growth a de"elopment

of the tourism industry in the &sian region. These include the strong economic growth, increase in income brea down of political, barriers, easing of tra"el restrictions, liberalization of air transport, and focused mar eting campaigns. These factors are e*pected to accelerate the growth of tourism o"er the ne*t decade. ?.< E/-6-=2/ G,-@0) The rapid growth for the tourism industry is a reflection of the regionJs booming and di"ersified economies. Economic growth has ranged between an a"erage of 56 to A6 in the last decade, in contract to =6 to >6 growth achie"ed by the rest of the world. )nly the industrialized countries of &ustralia, @apan, and New Oealand show a lower rate of growth than the rest of the region. China, which has achie"ed double#digit growth o"er the last ? years, is poised to become one of the worldJs largest economies and surpass @apan in the ne*t decade. The region is e*pected to maintain its growth at a rate between 56 to C6 o"er the ne*t decade 0!$+ <EE43 -trong economic growth in &sia is attributed to a focus on mar et reforms, e*port oriented industries, stable currencies, di"ersification of the economy, and massi"e injection of foreign capital. %illions of dollars and being poured into the tourism infrastructure to accommodate a burgeoning &sian tourism industry. This has intensified trade, in"estment, and tra"el within the region and with the rest of the world. &sian go"ernments ha"e also sought to a"oid e*tremes of inflation and unemployment, and are eeping budget deficits small or running surpluses. !t is no wonder that the region has attracted much attention from the rest of the world regarding its success. The opening up of !ndochina, $yanmar, and China to tourism, and gi"en the increasing number of companies setting up bases and new businesses in the region the "olume of business tra"el will rise. This will

pro"ide ample mar eting opportunities for tra"el#related business. ?.= I6/,*54* 26 I6/-=* 563 L*247,* T2=* &s a result of strong economic growth, disposable incomes ha"e soared in &sian countries and along with it, the propensity to tra"el. :eisure consciousness has been enhanced with tra"el no longer seen as a lu*ury. !n fact, it is now seen as an affordable commodity to be enjoyed by all who choose to engage in a "ariety of leisurely pursuits. -ome &sians may see tra"el as a status symbol, while others see it as relief from the pressures of wor . The introduction of a ?#day wor wee in China will pro"ide Chinese residents with more leisure time that will li ely be de"oted to tra"el. & number of &sian countries ha"e recorded significant growth in real per capita income o"er the last year with -ingapore 0B.=63 Thailand 05.C63, China 04E.=63, ?. Gorea 05.B63, and !ndonesia 0B.463, -howing the highest growth 0!$+ <EE43. .ising incomes ha"e created a middle class of .sophisticated and affluent &sians who are better educated, ha"e more disposable income, and who appreciate the "alue of leisure. &lthough price conscious, they still demand high qualify products. -ince &sians are more li ely to tra"el in groups and families, more tra"el products and ser"ices, such as tour pac ages that incorporate acti"ities, must be designed to cater to their needs. 'is may include tra"el to e*otic places, soft#ad"enture tra"el, cruises, and sports related tours, amount others. 1isposable incomes will continue to rise, and thus fuel the demand for leisured tra"el. The trend among &sian countries is towards more frequent regional holidays to "arious destinations and resorts within the region. ?.> L2A*,582I502-6 -: A2, T,564+-,0 Traditionally, &sian countries ha"e safeguarded their national flag carriers to protect them from foreign competition. 'owe"er, the situation is

changing

as

go"ernments

realize

that

such

restricti"e

policies

are

counterproducti"e to tourism. -ingapore and Taiwan ha"e already signed open s ies agreements with the Dnited states and similar agreements are e*pected between the D.-. and $alaysia, -. Gorea and New Oealand. :iberalization of air transport will only ser"e to enhance trade and tourism growth in the region. !t will to lead to more multilateral open s ies agreement between countries. !n other parts of the region, Thailand and $iddle#East are showing more tourism growth as a result of liberalized internal a"iation policies. !ndonesia, the Philippines and south Gorea ha"e followed suit with similar a"iation policies. !ndonesiaJs limited open s ies policy in"ites foreign airlines to fly to new international destinations and participate in code sharing agreements with !ndonesian airlines. ?.? F707,* O708--9 The &sian region will still maintain its status as the fastest growing region in the world and most forecasts point to the regionJs healthy long#terms prospects. The (T)J- 04AA53 forecast re"eals the region emerging as the worldJs number two region behind Europe in <E4E with <<A million international arri"als, growing at an annual rate of B.56. The rapid growth of tourism will create new mar eting opportunities in the cruse line industry, timesharing, meetings mar et, while China has the potential to be the ne*t major "isitor generating mar et. $ajor e"ents that ha"e boost the status of the region include the Cummonwealth /ames in $alaysia in 4AAC and soccerJs (orld Cup in Gorea and @apan in <EE<. +orecasts by the (orld Tra"el and tourism Council 04AA?3 for the &sian region re"eal that by the year <EE?, tra"el and tourism will generate D-L4.A trillion in gross output, and account for 44.56 of /1P. +urther, the industry will create and additional 4E? million new and indirect jobs. To support this growth, D-6??= billion in capital in"estments will be needed for the infrastructure and superstructure.

-trong Economic growth will continue to increase disposable incomes and stimulate the desire to tra"el. This will increase the demand for air tra"el, which is e*pected to grow at an annual rate of C.56 till <EEE and B.46 from <EEE to <E4E. %y <E4E the &sian region will control half of the worldJs total passenger traffic. @apan will dominate the traffic with o"er AE million passengers, followed by 'ong Gong China, and -ingapore. The fastest growing tra"el mar ets by <EE> wil be ,ietnam, China, Taiwan, !ndonesia, and Thailand 0&ir Transport &ction /roup 4AA?3. To accommodate the demand for air tra"el, airlines in the region will ta e deli"ery of more than D-L4EE billion worth of aircraft. &s of $arch 4AA5, &sian airlines had firm orders and options for a total of ?B? aircraft 0$uqbil 4AA53. New airports are opening !n 'ong Gong, Gorea, and $alaysia, while e*pansions in -ingapore and !ndonesia will help to alle"iate capacity and congestion problems. %illions of dollars will be spent in capital in"estments to meet the increasing demands of a burgeoning tourism and hotel industry. @oint promotions and alliances between NT)- and the pri"ate sector, will create a stronger collecti"e tourism product that will increase arri"als and enhance tourism growth +inally, the recent de"aluation of the regional currencies will also ha"e major implications for the tourism industry !n the region. !nbound tra"el will increase, as "isitors will be attracted by the higher purchasing power in countries where currencies ha"e been de"alued. $ore specifically, "isitor e*penditures will increase as a result of a higher length of stay and attracti"e prices. !n the short term, de"aluation may ha"e some negati"e impact on outbound tra"el and operating costs, but the long#term benefits will outweigh the costs. E. T)* I63256 S/*65,2!ndia has continued to remain infatuated by the manufacturing industry. This infatuation has perhaps, been caused by the !ndustrial .e"olution ha"ing "irtually bypassed !ndia before independence 04BCE#4A>B3. !t was only natural

that we want to catch up on the opportunities that ha"e been denied to us. The emphasis on setting up manufacturing industries in the post independence area was natural. Nehru called such factories and dams the new temples of !ndia. &s any economy matures, in the process of de"elopment, it ma es a transition from agriculture to manufacturing and from manufacturing to ser"ices. !n different stages of economic growth, the relati"e importance of these sectors changes in terms of employing people and their relati"e contribution to /1P. (ithin the &sia#Pacific region the !ndian sub#continent is well poised to ta e ad"antage of the boom in the tourism sector. The tourism industry is undergoing a sea change with the re"olutions in communication and information technology. E"erybody inn the tourism industry will ha"e to change and redisco"er its place in newly defined "alue chain. The role and the ser"ice offerings will undergo a big change in the present cyber world. The <4st century is the century of tourism magic # the most potent weapon of name, fame and reward. Therefore, inn the new millennium, most of the countries including !ndian are spending millions of dollars for the re"amping of the e*isting facilities or the creation of new ones. !ndia is a "ast country with a history that goes bac ?EEE years. !ts "ast geographical di"ersity, rich culture M heritage, fairs M festi"als, snow capped mountains, a "ast coastline, monumental attractions that span the entire country and the gaps in the infrastructure, offer tremendous potential for tourism. !ndia, a low cost destination, continues to e*ert its mesmerizing pull not only on the world tourist, but the tra"el bug has also bitten the !ndian tourist. !ndiaJs share in world tourism, which is a meager E.<6 as of date, is e*pected to touch 4#<6 by the year <EE?. &s per the 'ospitality and Toursim industry projections the rise in foreign tourists to !ndia are e*pected to touch ? million and the domestic tourists are projected to touch AE million by the year <EE4. Tourism is also one of the biggest employment generating industries in !ndia, with a capacity to absorb an additional in"estment to the tune of L 4E

billion. &ccording to P&T& 0Pacific &sia#Tra"el3 Tourism directly or indirectly dri"es more than 4E6 of the worldsJ employment today. -ignificant policy initiati"es, such as welcoming of pri"ate sector, foreign and N.! in"estments, setting up to The Tourism +inance Corporation of !ndia 0T+C! renders financial assistance M caters to a "ariety of in"estors needs3 and !n"estment facilitation cell 0&cts as a nodal &gency that interacts between the in"estor, the state go"ernments, the premier financial bodies M the rele"ant ministries3 ha"e been ta e by the go"ernment. T)* P5/95;* To an international tourist what does !ndia offerI !n this segment we see the attracti"eness of !ndia as a tourist destination. !ndia is one of the oldest young countries. !t is a ?E years young democracy but it has seen the rise and fall of ci"ilizations since time immemorial. !ndia has the ruins of the !ndus ,alley Ci"ilization at $ohenjodaro and 'arapa, which spea of the early settlement of man. Through time, "arious cultures ha"e thri"ed on this land and ha"e left some mar behind to say they were here. -ome of the e*amples are the Taj#$ahal a dream in marble, the sun temple at Gonar , the 'a"a $ahal at @aipur, the :a e Palace at Ddaipur, the &janta M Ellora ca"es, the list is unending. !ndia is not all about past, there are brilliant e*amples of modern architecture li e the :outs Temple at 1elhi. Nature has also endowed this land abundantly. !t is one of the few countries, which has such a "aried topography. +rom the beaches in Gerala in the south toJ the snow capped mountains of 'imalayas ! the north, the golden desert in the west to the mangro"es in the east there area a few natural sites, which a "isitor will not find here. !ndia also forms a lin between the East and the (est. This has "isitor will find here. !ndia also forms a lin between the East and the (est. This has pro"ided it with a foreign fla"our. & perfect e*ample of this is /oa where the Portuguese fragrance is still there in the air. Therefore, what we ha"e here

is what a tourist wants, but the statistics show differently. !ndia has only E.?46 of the international tourist traffic coming in. The non tourist countries li e $alaysia and !ndonesia get much more tourists than !ndia +urther, we see what is the status of tourism in !ndia. !ndiaJs amazing di"ersity offers you e"erything you could e"er want in a holiday. +rom the moment that you set foot in !ndia to be greeted by graceful name namaste, a gesture that denotes both welcome and respect, you are on the way to one of the most rewarding e*periences of your life. %ounded by the majestic 'imalayan ranges in the north and edged by a spectacular coast line surrounded by three seas, !ndia is a "i"id aleidoscope of landscapes, magnificent historical sites and royal cities, golden beaches, misty mountain retreats, colorful people, rich cultures and festi"ities. &t any part of the year !ndia can offer a dazzling array of destinations and e*periences. !n summer, when the subcontinent is sizzling there are spectacular retreats amidst the heady beauty of the 'imalayas or the lush heights of the (estern /hats with cool tre ing trails, tall pea s to conquer or stretches of white water for the ad"enture see ers. !n the cool of an !ndian winter, cities come ali"e with cultural feasts of music and dance. Then balmy weather is an ideal time for one to go century hopping in romantic cities studded with medie"al forts and places. )ne can taste the delights of the !ndian monsoon anywhere in the country#on a camel safari in the .ajasthan desert when nature comes ali"e and the peacoc s danceN along the west coast where the relentless slanting rain paints the countryside in brilliant greens or e"en tre ing amidst the start grandeur of mountain "alleys lying in the rain shadow of the 'imalayas. E*perience e*otic !ndia # li"e li e a maharaja in the rich ambiance of royal forts and places that are now heritage hotelsN lu*uriate in the serene beauty of a coral island with its turquoise lagoonN participate in the e*uberance of a "illage fair or a colorful festi"alN day dream on a house boat drifting down the palm #fringed

bac watersN delight in the grace of a dancer or shop till you drop # buying e*quisite sil s, car"ed figurines, brass and sil"er ware, marble inlaid with semi#precious stones, finely crafted jewelry, miniature paintings, carpets ....at unbelie"able prices. !ndia, always warm and in"iting, is a place of infinite "ariety # one that fa"ors tourists with different facet of its fascination e"ery time they come on a "isit. The subcontinent of !ndia lies in south &sian, between Pa istan, China and Nepal. To the north it is bordered by the worldJs highest mountain chain, where foothill "alleys co"er the northernmost of the countryJs <5 states. +urther south, plateausN tropical rain forests and sandy deserts are bordered by palm# fringed beaches. -ide by side with the countryJs staggering topographical "ariations is its cultural di"ersity, the result of the coe*istence of a number of religions as well as local tradition. Thus, the towering temples of south !ndia, easily identifiable by their ornately sculptured surface, are associated with a great many crafts and performing arts of the region. !n the desert of Gutch, /ujarat, on the other hand, a scattering of ,illages pit themsel"es against the awesome forces of nature, resulting in -partan lifestyles made "ibrant by a profusion of jewelry and ornamental embroidery used to adorn apparel and household linen. !n the e*treme north is the high altitude desert of :ada h. :ocal culture is "isibly shaped by the faith # %uddhism # as well as by the harsh terrain. Ket another facet of !ndian culture is obser"ed in the colorful tribal lifestyles of the northeastern states of Nagaland, $izoram, Tripura and $anipur with their fol culture. !n the central !ndian states of )rissa and $adhya Pradesh tribal "illage life has resulted in a "ariety of artistically e*ecuted handicrafts. !ndiaJs mountains pro"ide heli s iing, ri"er running, mountaineering and tre ing. !ts beaches pro"ide lazy sunbathing as well as wind surfing and snor eling, and its jungles pro"ide shooting wildlife#with a camera. !ndiaJs history goes bac to

=,<EE %C when 'induism was first founded. %uddhism, @ainism, -i hism, @udaism, Ooroastrianism, Christianity and !slam all e*ist within the country today. &s a consequence of !ndiaJs size, the history of the country has seldom been the same for two adjoining territories, and its great natural wealth has lured a succession of traders and foreign influences to it, each ha"ing left their imprint in the country, howe"er faint or localized. Thus, Chinese fishing nets in Gerala are a throwbac to that countryJs ancient maritime trade, while in the northN terra#cotta figurines of the centuries %C bear distinctly /ree traces. $odern !ndia is home ali e to the tribal with his anachronistic lifestyle and to the sophisticated urban jetsetter. !t is a land where temple elephants e*ist amicably with the microchip. !ts ancient monuments are the bac drops for the worldJs largest democracy where atomic energy is generated and industrial de"elopment has brought the country within the worldJs top ten nations. Today, fishermen along the countryJs coastline fashion simple fishing boasts in a centuries old tradition while, a few miles away. $otor "ehicles glide off con"eyor belts in state#of#the art factories. The rate of success in the tourism industry is sizably influenced by the instrumentality of supporting industries, such a hotel, transportation, communication, ban ing or so. The de"eloped countries and to be more specific the leading tourist generating countries of the world, such as D-&, DG /ermany, +rance, &ustralia, -pain, -ingapore, Cyprus ha"e assigned due weight age to the principles of modern mar eting in managing the tourism industry. !n the !ndian perspecti"e we find tourism at the bottom of our de"elopment agenda, which has been standing a a barrier while energizing the process of qualitati"e or quantitati"e impro"ements. !t is against this bac ground that we need a basic change in the national de"elopment policy for tourism.

)f course, it was in the early 4A?Es that the /o"ernment of !ndia decided to promote tourism industry but in had no clear objecti"es in was necessary to reorient the mar eting projects and rationalize the locations of the tourist offices abroad eeping in "iew the mar et conditions and potentials. !n order to cater to the needs of professionally sound manpower for tourism mar eting, the !ndian !nstitute of tourism and Tra"el $anagement was de"eloped as model instate. !n "iew of the abo"e, it is right to mention that di"ersification of tourism from the traditional sight seeing to the more rapidly growing holiday tourism mar et within the framewor of the countryJs milieu is need of the hour. The policy planners, the tourist organizations, the domestic and global agencies are required to realize gra"ity of the situation to capitalize on the opportunities optimally. This requires a basic change in the product de"elopment strategy "isa#"ersa the inno"ati"e promotional efforts to project a positi"e image. The beginning of the decade 4AAEs opened new areas for the de"elopment of tourism in the !ndian perspecti"e. This necessitated de"elopment of infrastructure facilities li e transportation, communication, accommodation or so. !n addition, this also required use of sophisticated information technologies by the tourist generating organizations so as to impro"e the quality of ser"ice at deferent points. !n addition to the planning and de"elopment of tourism products, the promotional strategies thus require due attention of professionals. The creati"ity in messages, campaigns and appeals, which probably could not get due weighted to the beha"ioral profile of users. (e canJt deny the fact that till now the tourist organizations ha"e de"alued the instrumentality of beha"ioral studies and therefore were supposed to do it on a priority basis. The emerging trends in the business en"ironment ma e it essential that world class

professional e*cellence is essential that world class professional e*cellence is essential without which all our efforts are to be ineffecti"e. Tourism industry of !ndia is today is being a part of interest for many national and international organizations. Today this industry presenting the business opportunity of a lifetime for anyone interested in in"esting in !ndiaJs JTourism !nfrastructureJ. !ndia has more then =EE million domestic and foreign tourists. The graph of this industry will surely increase in coming years as the liberalization of the economy permeates deeper and deeper. )pportunities abound in the traditional tourism related areas and in no"el e*citing fields from the setting up of international class star hotels, motels, wary#side amenities, heritage hotels and restaurants. To the setting up of golf curses, amusement par s, ad"enture and water sport comple*es, aerial ropeways, cruises, domestic airports and more. .ecognizing that the logistics of identifying locations for the type of in"estments you are interested in ma ing is difficult and time#consumingN the 1epartment of Tourism of the /o"ernment of !ndia in consultation with the "arious -tate /o"ernment has wor ed out a plan of potential projects. The departments of tourism of /o"ernment also help in"estors and facilitate them in getting project clearances and permits for this industry. 7. N*@ C-6/*+04 26 T-7,24= I63740,< The new concepts de"eloped by the go"ernment to e*pand acti"ities under the tourism industry area9 B.4 E/- 0-7,24= Eco tourism is defined as responsible tra"el to natural areas and sustains the well being of local people. !t is further an amalgamation of interests arising out of en"ironmental, economic and social concerns. Tourism has become one of the largest global acti"ities and a way of paying for nature conser"ation and

increasing the "alue of land. The flow of dollars can flow bac

into

conser"ation and ma e it pay for itself. Today conser"ationists, economists and tourists ali e ha"e awa ened to the realization that you canJt sa"e nature at the e*pense of local people. They are the traditional and time honored custodians of the land and are most li ely to lose from conser"ation and should be con"inced that they are the beneficiaries and partners in conser"ation rather than enemies of it. /o"ernment and non#go"ernment agencies are wa ing up to the need to wor closely issued guidelines under which all tourism project in hills and forests ha"e to get en"ironmental clearance. & recent e*ample of such close monitoring is the ban on construction acti"ity within ?EE meters of high tide line on the coasts. The (T) in its projections for the year <EEE estimates that around 4EEE million people will be in"ol"ed in global tourism. The number is li ely to increase, !ndiaJs share in the traffic will be en"ironmentally conscious as past trends indicate. !t is this increasing trend in the number of tourists that the (orld Tra"el and Tourism Council is concerned about and has issued guidelines focusing on being sensiti"e to conser"ation aspects, protecting threatened areas, species and species aesthetics, conser"ing energy and reducing and recycling waste. Eco # tourism is a comple* and multi disciplinary phenomenon. There are many facets that ha"e to be addressed if it is to be successful for those in"ol"ed i.e. the consumers, managers, nati"e people and suppliers. 1etailed and systematic in"entories of the eco#tourists attraction of a country should be elaborated by eeping in mind that these in"entories are different from those of a scientific nature as they reflect certain li"eliness and "ibrant attracti"eness missing from an unemotional and impersonal list of scientific nature.

B.<

H*,205;* 0-7,24= This is a new ind of tourism that has come up in recent times. The

concepts of 'eritage tourism came up to aid M facilitate the curious guests attempts to get to now !ndiaJs great traditions. !t was realized that the historic homes could be maintained only with their appropriate reuse. The large Palaces of $aharajas set the trend by becoming fi"e star hotels. The main charm is the indi"idual attention M personalized ser"ices. The ambience is perfectly reflected through sepia photographs M family memorabilia. +amilies in residence for countries now welcome you to their homes as guests. The homes are modernized to meet the needs of todayJs international tra"eler, with adjoining bathrooms, running hot M cold water, modern plumbing, e"en perhaps a swimming pool. This ind of tourism was de"eloped mostly for the international tourist who wanted to get the feel of traditional !ndia. B.= A31*607,* 0-7,24= 563 H-8235< 0-7,24= !ndiaJs "ast geographical di"ersity pro"ides a "ast potential for ad"enture tourism. &ll tastes are catered to and there is something for e"eryone. +rom the gentlest to the fast placed, for the beginners to the e*perts. %esides this the prices here are lower as compared to international standards. Tra"el agents and tour operators "ery often specialize in certain fields, offering pac age deals for groups as well as indi"iduals. $ountaineering, tre ing and roc climbing, ballooning and hang gliding, camel tre s and desert safaris, white water rafting and ri"er e*ploration are some of the e*citing possibilities. &part from this there are sports li e s iing, scuba di"ing and underwater coral "iewing, angling, wild life and bird watching, golf, tennis, badminton, plol, swimming and motor rallies amongst other sports. +or the tourist in search of sun, sea and surf, there are beach resorts on the western and eastern coasts.

M-760526**,26; -caling the 'imalayan Pea s # the greatest ad"enture of all. The mighty mountains stretching across the northern borders of !ndia ha"e hundreds of pea s, many yet unsealed and in"iting the intrepid mountaineer. The states of @ammu and Gashmir, 'imachal Pradesh, Dttar Pradesh and -i im offer bases for mountaineering e*peditions. There are agents who can ma e all the arrangements for groups or indi"iduals including food, porters, camping equipment, etc. The best season for mountaineering is from $ay to )ctober and si* months notices are required to boo a pea . T,*9926; The spectacular 'imalayas are the abode of snow and e"o e unmatched feelings of re"erence and e*citement and offer wonderful be"y of tre routes. Peninsular !ndia offers natural beauty of another ind for tre ing ing. The

(estern /hats, the &ra"alli 'ills, the -aputara range and the Nilgiri mountains ha"e a rich heritage of flora and fauna, each with a special lure of its own. Tre s can be ta en along the remote areas or the route pilgrims ha"e tre remote shrines in the mountains. The season for tre enter any restricted areas. H R-/9 C82=A26; Especially Popular in the foothills of the 'imalayas where"er there are roc s and hills, stiff climbs and sheer mountainsides # roc popular sport. climbing is a ing is &pril to @une and -eptember to No"ember with ers should not regional "ariations. No system of permits e*ists in !ndia but tre ed year to

&588--626; !n its infancy this sport is a"ailable only !n 1elhi. The %allon Club of

!ndia at 1elhiJs -afdarjung &irports is the &irport is the ta eoff point and has its headquarters within the comple*. H H56; G82326; .ecently introduced in !ndian 'ang /liding is a"ailable at Pune, 1e"lali, $umbai, New 1elhi, Chandigarh, -himla and %angalore. Gangra and Gasauli are de"eloped as major hang#gliding centre. H C5=*8 T,*94 563 D*4*,0 S5:5,24 The great !ndian That 1esert pro"ides the scene for e*ploring the old desert routes on camel bac or for the less intrepid in camel carts. @eep tours can be ta en o"er remote desert trac s that are rarely ta en by tourists. @odhpur, @aisalmer and %i aner are the starting points for such tours with stops at "illages7 en rote. '260*, '50*, R5:026; 563 R21*, R76626; The mighty !ndian ri"ers tumble and crash through the mountains to form white water rapids and terraced cascades. This is a paradise for the white water sportsmen. :ada h and Oans ar "alley in Gashmir, :ahul "alley, the /arhwal 'ills and -i im are some popular areas. The !ndus, Oans ar, /anges, .a"i, %eas, Chenab and Teesta are ri"ers with both rough and clam waters for both beginners and e*perts. These ri"ers and e*cellent for canoeing and aya ing. '260*, S+-,04 /ulmarg in Gashmir is !ndiaJs most popular and de"eloped s i resort with most modern equipment. There is an institute of s iing and mountaineering, which offers training courses. The /ulmarg #Ghilanmarg route is a great

e*perience for s i mountaineering enthusiasts. Gufri also offers s iing. &long the .ohtang pass, s iing is possible in summer also. -himla offers ice#s ating, figure s ating and speed s ating. M-0-, R5882*4 Through out the year many rallies are held whose dates can be obtained from the nearest tourist office. The 'imalayan car rally attracts international participation and goes through the mountains of 'imachal Pradesh and Dttar Pradesh. &*5/) R*4-,04 The e*tensi"e coastline of !ndia has e*cellent "irgin beaches unspoilt as yet by man. The best#de"eloped beach resorts are at /la, Go"alam and $ahabalipuram. E*cellent water sport facilities are a"ailable at these three centers. There are other resorts in smaller cities along the coast of !ndia. '28382:* T-7,24= The !ndian subcontinent pro"ides "ast "ariations in geography and climate, which results in di"ersity in habitats and wildlife. The 'imalayas offer a wide spectrum of landscapes and wildlife. Tropical forests in its eastern e*tremity contrast with pine and coniferous woodlands of western 'imalayas. Natural co"er "aries with altitudes and these e"ergreen forests are bounded with high alpine meadows nearer the snowline and temperate forests of short stout trees in the lower ele"ations. !n the foothills are the deciduous trees, with shrubs, bamboos, fern and grass. The northern plains, the course of holy ri"ers, the great Thar 1esert and the -undarbans, the marshy swamplands, the "olcanic roc of the deccan plateau all pro"ide fascinating habitats that sustain o"er =?E species of mammals, <4EE inds of birds#local and migratory, nearly =?E species of reptile and countless insects. !ndian currently has around CE

national par s and >>4 sanctuaries dotted around the country. (hile some are inaccessible others ha"e e*cellent facilities for the "isitors. The thrill of spotting herds of wild elephants, deer, a rhino or e"en a tiger in its natural en"ironment is "ery difficult to match. &733)240 /2,/720 563 P28;,2=5;* 0-7,24= Pilgrimage tourism is a major segment that contributes to the growth of employment and local economic de"elopment. The National &ction Plan announced in the parliament in 4AA4 recognized pilgrimage tourism for the first time in the country. Temples and tourism go hand in hand and with the increase in the number of temples the tourism industry also grew. Today more than ?E6 of the A.< million domestic tourists tra"el to "isit "arious places of worship starting from the /anges to .ameshwaram and ,aishnode"i to ,alan inil !n 4AAC more than A? :a h people assembled at the Gumbh $ela, the largest and the last of its ind in the <Eth century. &nother standing e*ample is Tirupati in the -outh. !t is also an e*ample of the best temple management in the country. !t has de"ised methods by which e"ery de"otee pays for the ser"ice they get. The go"ernment recently identified 4B places of pilgrimage for de"eloping them for tourism purpose. !ndian also has started attracting tourists from south east &sia where %uddhism has large following. -arnath played host to a world %uddhist meet in )ctober 4AAC. The meet attracted thousands of participants, especially from -outh East &sian Plans are also effort to ma e this and annual e"ent. The East and North East represent the %uddhist Circuit. These concepts are e*pected to generate a growth rate of nearly <E in !ndian tourism. The country has embar ed on the right path. Dpgrading e*isting infrastructural facilities and adding new ones should definitely help tourism industry to tap the enormous e*isting potential. Though the tourism sector is the second largest foreign e*change#earner for the country, in continues to be largely ignored by the /o"ernment. The

parliamentary standing committee on transport and tourism had recently pointed our that although during &pril#1ecember 4AAA, the estimated foreign e*change earning was .s. C,C4B.A4 crores, for the last three financial years, the Plan outlay for tourism has been more or less equal to the cost of one fighter plane. !mpossible, to judge a company by its web site. Therefore, other 0no legal3 measures must also be ta en to boost customer confidence in online shopping. The D. G. /o"ernment is trying to promote the ideas of Je#hallmar sJH which will guarantee that its users are legitimate traders offering assurances on security of payments and communication and gi"ing information on goods, prices and a return policy. & new body 2trust DG# will be set up to accredit c# commerce codes and there are plans to mar et the e#ballmar internationally howe"er many business organization opposes the idea, wanting instead to rely on self#regulation without go"ernment inter"ention. Poor e*ample, &%T& aims to clamp down on internet sales by creating regulations for online tra"el transactions. !t plans to publish a single re"ised code of conduct for agents and operators in $ay <EEE, with a new section on internet sales. !t will require members to ha"e a secure payment system if using the internet to ta e boo ing, and to obser"e the same &%T& rules as for other types of ad"ertising. F. C7,,*60 S/*65,2- -: T-7,24= I63740,< Today, the world economy is transiting towards ser"ices. The global e*port of ser"ices is rising faster than the e*port of goods .!ndia is unfortunately still pursuing manufacturing. (ith the enormous lead that the west has in manufacturing, it is "irtually impossible for !ndia to catch up .Today, with large number of less e*pensi"e, educated and s illed wor ers , !ndiaJs comparati"e ad"antage lies in ser"ices, not in manufacturing. !ndia can grab the opportunity and cur"e a niche for herself by directly leapfrogging to ser"ices. Dnfortunately !ndia has not realized the potential of the ser"ice sector, as yet.

The Tourism industryJs foreign e*change earning in !ndia are around L=.< billion. Tourism is the highest foreign e*change earner if we consider the fact that net "alue addition in /ems and @ewellery is less than =E percent where as, in tourism it is more than AE per cent. !t also has one of the best employment multipliers when compared with any other industry. Tourism also generates ma*imum job opportunities, as it pro"ides direct employment to A.4 million people and indirect employment to another 4<.> million. %ut, these statistics do not appear so impressi"e when "iewed in the global perspecti"e and compared with that of other countries shows in the graph below. Tourism has been a neglected sector in !ndia. Though it was recognized as a priority -ector in the -e"enth +i"e Kear Plan but hardly anything was done to promote this industry. .ecently, the %@P P go"ernment has e"en dropped it from the national agenda. !t is true that !ndia has yet to reach the prosperity le"el where leisure acti"ity can be included in the priority sector but, if sol"ing the countryJs unemployment and foreign e*change Problem are on the top of the national agenda, the potential of this industry cannot be neglected. F.1 P-0*60258 :-, G,-@0) -: T-7,24= &lthough !ndia is in the lowest ebb in international tourism 0only).=>6 of global tourist traffic3, there are se"eral distinguishing features that would help in achie"ing its goal. -ome of these are gi"en below. ; ; The rate of growth in tourist traffic to !ndia has been greater than the global a"erage. The a"erage duration of stay of foreign tourist in !ndia is one of the highest in the world .)n an a"erage, it e*ceeds <B days in the case of non#pac age tourist and is 4> days

; ; ; ; ;

!n the case of pac age tourist. The major share of the international "isitors emanates from (est , Europe and North &merica, The tourist on pac age tours spend nearly 5? percent of their e*penditure on shopping. There is high degree of seasonality in the foreign tourist traffic. The hotels and tourist related industry has been declared as a H'igh PriorityH for 1e"elopment. The confederation of !ndian !ndustry 0C!!3 e*pressed concern o"er the

high ta*es le"ied on the !ndian tourism industry and poor access to tourism destination. This, according to the press release, is stifling growth in the sector. C!! points out that the (orld Tra"el and Tourism Council has obser"ed that Hta* paid by Tourist in !ndia is the highest in the world. !ndian hotels charge about >E6 ta*es compared to other &sian countries where it "aries between =6 and 56. -uch high ta*ation renders the tourism sector as a whole uncompetiti"e. +urther, there is considerable disparity between state le"el ta*es, especially on food and be"erages. !n fact, the sales ta* on imported be"erages "aries widely, e.g.5=6 in Garnata a to <C.B?6 in (est %engal. !ndiaJs tourist industry currently ser"ices about <.=C million "isitors 04AAA, including nonresident !ndian "isiting relati"es3 e"ery year. !n 4AAA> estimated gross e*port Earnings from tourism stood as D-L4.? billion 0some 4?6 higher than in 4AA<#A=3, but by 4AAA the le"el had been raised to D- L=.< bin. !t is e*pected that the "olume would double in the ne*t ten years# but only assuring that the go"ernment manages to get the .ight incenti"es into place. &t present it remains to be seen how far this can be accomplished. &lthough Prime $inister &tal %ehari ,ajpayee is "isibly retreating from his public opposition to the HCultural !mpressionH of D-#bac ed tourism and leisure

pro"iders, foreigners are specifically e*cluded from in"esting in cultural industries. &nd in any case the /o"ernment has not yet created the basis for widespread foreign confidence in his Economic or political management. The <EEE budget shows no clear determination to clean up the countryJs indifferent and inefficient transport system9 both !ndia &irlines and the national rail networ are widely considered too poor in quality to be use for tourism purposes. K*< T,*634 Total 1DD 1DDE <<?> <ACE >=< 1DD7 1DDF <=A4 <=?A =4?= <4?< >?B >C= 1DDD <=C> =4?< ?44 ! <C?5 =?4E ?>E ! 5 ! 1 >>5< BE4? A4<

+oreign 4B<

=?BE ?4E< BE<

,isits 0EEE3 4 Total Tourism 4?4 .e"enues 0L mn3 = Total Tourism >? -pending &broad 0L mn3 S-7,/* Cambridge estimates !nternational

+orecasts,

based

on

(T)

and

industry

F.!

P7,+-4* -: V2420. Tourist arri"als to !ndia according to the purpose of "isit in <EE4.

N502-65820< T-058 T-7,2404 DG D-& -ri :an a /ermany +rance @apan Canada C:-ingapore !taly )thers Total S-7,/* =EE5A5 4B5>C< CAEEA C?=?< B=ECC 5==AC ?5>>4 ?5=CB >>4?B >5?4E ?B=>A5 4?5<E45

H-8235< 563 S2;)04**26; A4.B A=.< A>.C C?.B C<.5 A?.C A5.> C4.= 5<.C A4.B B4.A A5.5

&7426*44

C-6:*,*6/*4 S073<

B.= =.C E.C 4=.< 4>.? =.? 4.? 4B.= <?.5 B.B 4.5 <.C

E.< E.< E.4 E.= E.=4 E.E E.4 E.4 E.E E.E <.= E.4

E.4 E.= E.4 E.4 E.4 E.4 E.= 4.4 E.? E.< E.> E.<

Tourist &rri"als in !ndia 2 highlights, dept. of tourism, go"t. of !ndia <EE4 D. TOURSIM MARKETING & clear perception of tourism mar eting requires a brief analysis of mar eting. (e are well aware of the fact that there ha"e been fundamental changes in the traditional concept of mar eting which has been influenced by the multidimensional changes in the business en"ironment. & transformation in the attitudes, lifestyles and e*pectations is the result of a number of de"elopments. Professionalism pa"es the ways for e*pectations which opens doors for quality generation "is#F#"is competition. &lmost all the organizations producing goods or generate ser"ices ha"e no option but to assign an o"erriding priority to quality /radation that requires inno"ations. This necessitates change in the concept mar eting, which determines its functional boundaries. (e find

satisfaction of users the focal point around which all the functional areas of mar eting cluster. (hile clarifying the perception of tourism mar eting, it is essential that we assign due weightage to the three important considerations, the first generations of fits by the tourist organization second world class ser"ices to the tourists rich help !n satisfying them and the third positi"e contributions of tourist organizations to the process of social transformation and ecological balance. (e consider mar eting a human acti"ity that direct the flow goods and ser"ices from producer to consumer or users. Golter finds mar eting a social and managerial process by which indi"iduals and groups obtain what my need and want through creating and e*changing products and "alue with others !n "iew of the abo"e, the following points emerge regarding tourism mar eting9 Tourism mar eting is process of creating a product or pro"iding a ser"ice. Tourism mar eting comprises fact finding, data gathering, analyzing 0mar eting research3, communication to inform and promote 0Promotion3, ensuring and facilitating sales, selection of mar eting planning 0distribution3, Coordination, Control and e"aluation 0mar eting planning and auditing3, de"eloping Professionally sound personnel0people3. ; ; ; Tourism mar eting is an integral effort to satisfy tourists and more so, it is a 1e"ice to transform the potential tourists into the actual tourist. Tourism mar eting is the safest way to generate demand, e*pand mar et and !ncrease the $ar et share. Tourism mar eting is a managerial process to promote business acti"ity directed at satisfying the needs id wants through e*change processes. The &merican $ar eting &ssociation defines mar eting as the performance of business D.1 U4*,4 -: T-7,24= S*,12/*4

(e find difficult categories of users a"ailing the ser"ices of tourist organization. (e find classification of different categories which would help the tourism Professionals in studying and identifying the le"el of their e*pectations "is#F#"is their beha"ioral profile. G*6*,58 S*? R*;2-6 E37/502-6 S05074 P,-:*442-6 O//7+502-6 N-6 U4*,4 : : : : : : : 9 -tudents, E*ecuti"es, &rtists, Politicians, Cine &rtists $en 8 (omen .ural, Drban :iterate, !lliterate .ich 8 Poor E*ecuti"es, &cademics, &rtists and -portsmen (hile Collar 0Clerical3, %lue Collar0$anual3 Personas not interested in using the ser"ices are

nown as non#users. They lac willingness, desire and ability and therefore, the le"el of income ore e"en the a"ailability of leisure hour is not to influence them. P-0*60258 74*,49 (e also call them prospects or the prospecti"e users. They ha"e willingness but the mar eting resources ha"e not been used optimally for influencing their impulse. They bear the efficacy and the mar eting professionals are supposed to capitalize on their potentials by using creati"e promotional measures. A/0758 74*,4 9 Persons already using the ser"ices generated by the tourist organizations are nown as actual users. O//542-658 74*,4 9 Dsers a"ailing the ser"ices occasionally but nor forming the habit to tra"el are nown as occasional users. H5A20758 74*4 9 Dsers forming a habit and a"ailing the ser"ices regularly are

nown as habitual users. D.! M5,9*0 S*;=*60502-6 :-, T-7,24= The beha"ioral scientist feels that appeal, strategy and tact "ary from segment to segment in a natural way necessities a change in strategic decisions. The modern mar eting theory prefers the formulation of mar eting policies and strategies for the each mar et segment which an organization plan to solicit. !t is natural that different segments react in a different way. -egmentation ma es possible tailoring of products and mar eting programmes uniquely suitable for each sub#segment. & mar et is not only an aggregate demand for a product but the sum of demands of different mar et segments. +or getting a positi"e response in the mar et, it is pertinent that the mar eterJs of the tourist professionals are well aware of the different mar et segments. !t is against this bac ground that we need to study mar et segmentation for tourist ser"ices. &t the outset, it is essential that the tourist organizations select a suitable base for segmenting the mar et. The selection of base has a for reaching impact on studying the target mar et. Though there are a number of bases for segmentation, we find lifestyle an important base since the tra"eling decisions are fantastically influenced by the changing lifestyles. The emerging trends in the le"el of income, the a"ailability of leisure hour of course influence the process but the main thing is the lifestyle. This is supported by the logic that if we earn more, we spend more. (e prefer to utilize our leisure time for gaining pleasure or for enriching the nowledge ban . This necessitates an in#depth study of li e style for ma ing segmentation proacti"e. The li"ing styles of &mericans and !ndian canJt be identical, the decision ma ing of both of them are to be different. The &merican prefer to tra"el and therefore they assign due weightage to the tra"eling decisions while scheduling or ordering their engagements. The !ndians a"oid tra"eling albeit we find them earning more or sufficient leisure time or holidays

in their hands. This ma es it clear that for segmenting mar et, we find this "ariable constituting a place of outstanding significance. The aforesaid facts ma e it clear that for getting a positi"e response, the segmentation of tourism mar et needs an intensi"e care. The tailoring of products with the e*pectations of tourist or a fair synchronization of touristJs e*pectations and potentials of the tourist organization would hardly be possible unless we segment the mar et in a right fashion. The opinion leaders prompt the whole drama of mar eting where the word#of#mouth promoters play an incremental role. The process of segmentation simplifies the tas of mar eters. Tour operations, the transport operators the tra"el agents, the tourist guides, e hotels find it easier to ma e the mar eting decisions. They e"en with the minor intelligence and diligence are found successful in identifying the mar et the potential tourists. !t is right to mention that the needs and requirements well as the le"els of e*pectations canJt be uniform. The segmentation benefits tourist organization in different ways. &n optimal mar eting plan, a balanced de"elopment of mar eting resources, true gauging of the le"el of e*pectations, formulation of creati"e strategies for getting a positi"e response ma e it assign due weightage clear the tourist organizations to segmentation. They are supposed to select a

suitable base for segmentation out of numerous bases li e day base, purpose base, demand base, geographical base, Psychological base, demography base, socioeconomic base, se* base, age base or so. These bases help professionals in studying and understanding the changing beha"ioral profile of users. The mar et segmentation bases ma e it clear that geographic, demographic, psychographic and socio#economic aspects canJt be underestimated to ha"e clear picture of the tourism users. 1. !. H-8235< 54 5 &54* # $ass $ar et, Popular $ar et D*=563 54 A54* # Primary, -econdary opportunity

3. C. 5. E. 7. F.

G*-;,5+)< 54 5 A54* # Cities, Pro"inces, .egions, Countries P4</)-;,5+)< 54 5 A54* # :ifestyle, Personality $oti"e, Product, Gnowledge. D*=-;,5+)< 54 5 A54* # &ge, -e*, )ccupation, Class, .eligion. S-/2--*/-6-=2/ -: A54* # .ich, Poor, .ural, Drban, :iterate, !lliterate P7,+-4* 54 5 A54* # %usiness Tra"el, Cultural Tourism, Common A;* 54 A54* # Gids, Teens, Kouths, Koung, $arried, -ingle. The holiday base focuses or attention on the fact that long#distance tours

!nterest

require a"ailability of more leisure hours. The holiday mar et is classified in terms of demand. The different categories are, the mass mar et, the popular mar et and the indi"idual holiday mar et. The mass mar et in"ol"es largest number of# "acationists who generally tra"el in long groups. They prefer all# inclusi"e tours. The users belong to the conser"ati"e group in which we find s illed and semi#s illed wor ers, blue#collar employees as the potential users. The users are generally class one and class two groups, pensioners and retired people. The indi"idual holiday mar et in"ol"es Hsocial group#&B li e corporate chairman and senior e*ecuti"es. (e find an apparent change in the beha"ioral profile of different categories in the holiday base. &nother base is purpose in which we find business tra"el mar et, cultural tourism mar et, common interest tourism mar et and conference and con"ention. The demand base classifies mar ets into primary tourism mar et, secondary tourism and opportunity tourism. The geographic base includes lifestyle, personality, moti"es, product and nowledge. The demography base co"ers age, se* occupation, class and religion. The socioeconomic base ma es classification li e rich, poor, rural, urban, literate and illiterate. The age#base classifies mar ets for ids, teens, youths, young married and old people mar et. The aforesaid small segments simplify the tas of tourist professionals. They now about the changing needs and requirements of different segments and

inno"ate their strategic decisions accordingly. The de"elopment of mar eting resources in tune with the changing le"els of e*pectations ma e the ways for the stimulation of demand and simplify the tas or mar eters. !t is in this conte*t that we need to segment the mar et for the different allied industries helping the tourism industry in many ways. D.3 D*42;626; 5 P5/95;* T-7, !n the process of formulating a sound product strategy, there are a number of factors to be gi"en due attention. The designing of a pac age tour occupies a place of outstanding significance. +or the profitable mar eting of tourism ser"ices, it is pertinent that the different components of product are managed in a right fashion. This gra"itates our attention on the offering of a pac age holiday product which necessitates management of the following factors. D.C D*4026502-6 The de"elopment of destination or tourist sites has a far#reaching impact on attracting the tourists. !t is essential that destination or the tourist sites are easily accessible. This necessitates safe, fast and reliable transportation facilities hither and thither the tourist sites. To be more specific for promoting world tourism or attracting the foreign tourists, it is essential that the flying time is made proportionate. The site should be clean, the beaches should be sandy, sun# shine should be certain, the entertainment facilities at the site should be of quality the site should be safe to wal about, the local people should be friendly, the tour operator, the tra"el guides and others should ha"e competence of spea ing English and other regional languages. These facilities at the destination would add attractions. D.5 M565;*=*60 -: A2,+-,0 (hile managing the tourism product, the airports are required to be

managed carefully. The airport should be local and con"enient. The arrangement for car par ing should be safe and adequate. !t should not be congested but it should be spacious. !n addition, the shopping facilities should be duty free. The airport should be clean and the "ehicles should be a"ailable so that tourist doesnJt face any trouble. %esides, the security arrangement should be tight to protect the passengers and their "aluables. The aesthetic management occupies a place of significance in the "ery conte*t. D.E A2,826*4 The flights should maintain the time schedule otherwise a dislocation may in"ite multifaceted problems, not only to the tourists but e"en to the airport authorities. The ser"ices should be reliable, good and polite. The sophisticated modern aircrafts of new generation should be included in the fleet to attract the tourists. The safety record should also be up to mar psychosis or psycho#fobia. D.7 R-53 563 R528 T,564+-,0502-6 +or the tourists preferring to tra"el by buses of railways, it is significant that the stations are well managed. The boo ing and reser"ation counters should be managed scientifically. The enquiry should be controlled by efficient and well beha"ed staff. The safety arrangement should be adequate to counter the law and order signposts should be positioned at right places to help the tra"elling passengers. to remo"e the fear

D.F

H-0*84 +or managing the hotel ser"ices, it is essential that we are also careful to

the hotel accommodation facilities. !t is pertinent that hotels are easily accessible to the tourist sites or beaches or shops. The hotel personnel

trustworthy and competent enough to spea

English and other regional

languages. They are supposed to be friendly. The management of facilities at hotels need due care. Though the standard of ser"ices, amenities and facilities depend upon the grade of hotels still it is essential that hotels offer the promised ser"ices to the users. The gap between the ser"ices#promised and ser"ice# offered should be # bridge o"er. The hotels should be well maintained, the decor should be attracti"eN possibly a fair mi* of eastern and western culture, the atmosphere should be calm and quietN specially at the night time, public rooms should be adequate in number, the swimming pool should be neat and clean where inflow and outflow of water should be scientific to protect the danger of water contamination or pollution. There should be bar with good range of drin s. The bedrooms should be spacious in which balcony facilities should be made a"ailable. The childcare ser"ices should also be made a"ailable. Particularly at the beach resorts, the sea "iew should be possible with all rooms, in#room telephonic ser"ices should be a"ailable, in, and room#T, should be pro"ided. There should be adequate cupboard space. The hangers should be attracti"e and artistic, toilets should be neat and clean and well equipped with east and west pro"isions. The lighting and "entilation arrangements should be adequate. The intensity of light at different points should be gi"en due weightage. (hile managing hotels, the restaurants and cafeterias also need due care. The restaurants and cafeterias should be well managed. The food and drin s should ha"e taste#orientation. The "arieties of meals and drin s should be a"ailable. The seating arrangements should be comfortable, the meal should be fle*ible and the hotel personnel should be polite and friendly. D.D R*4-,0 R*+,*4*605021*4 .egarding representati"es of resort, they should be# nowledgeable friendly, accessible and competent.

D.1

M24/*8856*-74 !n addition, the fellow tra"elers should be li e#minded. The main thing is

to ma e the tour pleasant and memorable. !f the tourist ha"e companionable fellow tra"elers, the journey would of course remain memorable. The aforesaid facts ma e it clear that being an amalgam of a number of industries and ser"ices, the tourism industry is nown as a multi#segment industry in which the designing of a pac age which pro"es its instrumentality as a moti"ational force is found a bit difficult and challenging. !t requires professional e*cellence so that we are in a position to assess the changing le"els of e*pectations of the guests8tourists and all the required amenities and facilities are made a"ailable to help tourists to go to the destination, to enjoy and to come bac safely. The tour operators and transport operators bear the responsibility of formulating a pac age tour and therefore they should ha"e world class professional e*cellence to requirements. The ser"ices are related to a number of industries managed by others and therefore, the tour operators and transport operators managing the affairs should ma e it sure that whate"er the promises they ha"e made on behalf of hotels, airways,J railways, roadways are not to be distorted. This is li ely to project the image of tour operators and therefore a gap between the ser"ices#promised and ser"ices#offered would ma e the tas difficult. !t is against this bac ground that designing of a pac age tour occupies a place of outstanding significance and all the allied industries ma ing the pac age are required to be careful that they are not in"iting degeneration. 1 . S'OT A658<424 S0,*6;0)4 ; !ndiaJs geographical location. & culmination of deserts, forests, mountains and beaches. now and understand their changing needs and

; ; ; ; ;

1i"ersity of culture i.e. a blend of "arious ci"ilization and their traditions. & wealth of archeological sites and historical monuments. & "ery wide "ariety of hotels is present in the country that can fulfill the demand for The accommodation of tourists. There are international players in the mar et such as 'oliday !nn and )beroi. Thus, the needs of the international tourist7s tra"elers are seen to, while they are on a "isit to !ndia.

; ; ;

$anpower costs in the !ndian hotel industry is one of the lowest in the world. This pro"ides better "alue for money to the tourists. . !ndia offers a readymade tourist destination with the resources it has. Thus the magnet to pull customers already e*ists. &irline is the most preferred mode of transportation by the foreign tourists as the con"enience pro"ided by the airlines is higher. Thus, the sa"ing in time that this mode of transport offers is immense to the international tourists.

!ndia has one of the largest road networ s in the world. The countryJs total road length was =E,4?,<AA m in 4AA>#A?. Thus connecti"ity to the tourist destination is quiet high.

'*596*44 ; ; ; ; :ac of adequate infrastructure. & *enophobic attitude among certain sections of people. No proper mar eting of !ndiaJs tourism abroad. +oreigners still thin of !ndia as a land of sna e charmers. 'igh ta* structure in the industry ma es the industry worse off than its international equi"alent. !n !ndia the e*penditure ta*, lu*ury ta* and sales ta* inflate the hotel bill by o"er =E6. Effecti"e ta* in the -outh East &sian countries wor s out to only >#?6. -o this directly affects the

spending of tourists. ; )nly ?C,EEE hotel rooms are a"ailable in !ndia today, which is less than the %ang o total hotel capacity. -o accommodation facilities are quiet less. ; The ser"ices currently offered by the hotels in !ndia are only limited "alue added ser"ices. !t is not comparable to the e*isting world standards. This is the reason why international tourists prefers other &sian countries than !ndia. ; !nefficiency of the domestic airlines# there are number of instances of flight being cancelled or delayed. -econdly frequent stri es by the pilots and maintenance problems are a major cause of concern. This is one of the reasons that ma e a tourist disheartened. ; Tra"el agents are most affected by the ta*es that are part of the industry so at last tourists are the sufferers. O++-,076202*4 ; ; ; &llowing entry of more multinational companies into the country gi"ing us a global perspecti"e. /rowth of domestic tourism. 1emand between the national and the inbound tourists can be easily managed due to difference in the period of holidays. +or international tourists the pea season for arri"al is between -eptember to $arch when the climatic conditions are suitable where as the national tourist waits for school holidays, generally the summer months.

; ;

1e"elop a well# studied master plan for tourism in the country, which should ma e it easier for in"estors as well as the authorities. -upport and encourage pri"ate sector to in"est in facilities.

; ; ; ; ; ;

+ight pollution and littering by law. &dopt strict measure for ci"il hygiene and cleanliness. Pro"ides essential basic facilities li e toilets and resting facilities throughout tourism routes. 'a"e an effecti"e international mar eting agency to promote !ndia as a destination. !n"est on P. measure abroad mobilizing the media to a greater e*tent. Project people, culture, lifestyle, food festi"als etc to offer the human element appeal than the natural beauty of the land for long lasting result. There are other naturally beautiful places in the world, but it is the people that ma e a place unique.

The de"elopment of tourist resorts, such as hotels on mountains or hill tops, should be low density and low rise to retain the cool temperature as main attraction of these locations.

The rele"ant authorities must ensure that security measures are enforced at all time.

T),*504 ; ; Economic conditions and political turmoil in the country is affecting tourism. &ggressi"e strategies adopted by other countries li e &ustralia, -ingapore and $alaysia in promoting tourism are also posing as a serious threat to our country. ; ; Changing trends in the west demand similar changes in !ndia, which here are difficult to implement due to high project costs. Pollution is a major menace to the industry, which has to be tac led by the go"ernment through legislation. /arbage, Plastic, sound pollution near tourist centres and all such discrepancies need immediate action from the go"ernment otherwise it will pose a major threat for tourism

industry in !ndia. ; +oreign tourists are concerned about their personal safety when tra"eling in the &sian region because of terrorist attac s and the tension between !ndo# Pa . ; $oreo"er the war between D.-.&. and !raq has stopped the international tourists to tra"el abroad. 11. PEST A658<424 The !ndian tourism industry has seen rapid growth in the last few years. %efore any ind of analysis is underta en, it is important to find out what are the main en"ironmental influences that ha"e lead to this growth and how the e*tent to which the changes are occurring. This is important because the change in these factors can ha"e significant effect on the way the industry performs. These en"ironmental influences can be analyzed by using the PE-T &nalysis. The PE-T &nalysis within its parameters indicates the importance of the political, en"ironmental, social and the technological changes on the industry. 5J P-8202/58 K L*;58 P-8202/58 The political factors are the main force of the industry. The !ndian tourism industry is built on the bac bone of /o"ernment support and the industry cannot sustain itself without it. The "arious archaeological sites and the places of historical importance, the roads and the railways are all in the hands of the /o"ernment. &ll the support ser"ices li e the hotel industry, the airlines industry and the tourist operators to name some are hea"ily dependent on the support and the cooperation of the /o"ernment. The major reason as to why the tourist "isits !ndia is for the "ast and rich heritage that our country has .That is under the control of the /o"ernment through the &rchaeological -ur"ey of !ndia. &ny policy change that comes into force can ha"e dramatic effect on the

way the industry players perform. +or e*ample, the /o"ernment charges high rates of ta*es on the lu*ury and the star category hotels and this has always been a cause of disagreement between. The hotel association and has been getting many incenti"es and many has been getting the go"ernment .There are many areas where the growth of tourism has not been rapid or has been dramatic fall because the political en"ironment has been conducti"e. E*amples are the North East for the former and Gashmir for the later. The neglect of the /o"ernment in 1e"eloping the North East leads to a situation where there is practically no tourism in the se"en. -imilarly, the political turmoil in the state of Gashmir has seen the "irtual decimation of the flourishing tourism industry. The H'ea"en on EarthH is & "irtual hell for the industry. There has been a major change in the policies of the /o"ernment as regard to the industry. The hotel industry has been getting many incenti"es and many -tate /o"ernment are encouraging the growth of major hotels in their states. &fter years of tight control o"er airport infrastructure, /o"ernment has finally ta en the decision to pri"atize the airport. Cobwebs and e"en rats were the frequenters in the arri"al lounge at a major international airport of !ndia . !t is the only way to impro"e their condition. Tourism has been a Neglected sector in !ndia .Though it was recognized &s a priority sector in the -e"enth +i"e Kear Plan but hardly anything was done to promote this industry. .ecently, the %@P /o"ernment has e"en dropped it from the National agenda. !t is true that !ndia has yet to reach the prosperity le"el where leisure acti"ity can be included in the Priority -ector but, if sol"ing the countryJs unemployment and foreign E*change problem are on the top of the National agenda. The potential of this industry cannot be neglected. The $inistry of Tourism, /o"ernment of !ndia is the nodal agency for

The formation of national policies and programmes and for the coordination of acti"ities of "arious central and state go"ernment agencies and the pri"ate sector for the de"elopment of Tourism .'owe"er, all the en"ironmental regulation are enforced by the $inistry of En"ironment and +orests. The national Tourism policy en"isages a "ery big role for all the sta eholders in the decision ma ing process. They are in"ol"ed in the de"elopment of tourism and ha"e contributed substantially is sustainable Tourism in the country. The National Policy on Tourism lays emphasis on sustainable de"elopment of tourism. !n addition, the /o"ernment has brought out a comprehensi"e Eco Tourism Policy and /uidelines .&ll issues rele"ant to sustainable tourism are co"ered in the policy and guidelines. The Eco tourism policy and guidelines will ensure regulated growth of eco tourism and nature#based tourism with its positi"e impact of en"ironment protection and community de"elopment. There are established procedure stipulated by the $inistry of En"ironment and +orest for project clearance and monitoring. There are deterrent in these strategies to chec , control or penalize damaging en"ironmental practices on the part of business and "isitors. There are se"eral &cts and laws, which ensure sustainable tourism. These are the (ild life Protection &ct 4AB<, the En"ironment0Protection3 &ct 4AC5, and Pre"ention of Cruelty to &nimals 4AC5.These do not set aside any specific area for tourism, but such areas ha"e to be identified by the -tate /o"ernment and obtain the required appro"als8rela*ations. Eco#tourism policies and /uidelines ha"e been formulated by the /o"ernment in consultation with the industry and are being implemented on a "oluntary basis. The en"ironment regulations are mandatory. &ll the Players of the tourism industry including consumers ha"e hailed these codes and ha"e shown sensiti"eness to the

en"ironment. !ndia, with the /1P approaching L4 trillion has been put by the !nternational $onetary fund as one of the fi"e biggest mar ets of the world. The sense of urgency that the !ndian in"estment climate has de"eloped has translated into the ind of economic indicators M figures that ha"e indled interest and brought in results from e"en the most conser"ati"e in"estors, here are tremendous opportunities for Companies participating in the tourism sector of the economy. The hotel and tourism related industry has been declared as high priority industry for foreign in"estment .it is now eligible for appro"al of direct in"estment up to ?4 6 of foreign equity. Non#.esident !ndian !n"estment !s allowed up to 4EE6. !n recognition of the relationship between suppliers8users of technology &nd with a "iew to impro"e technology, the go"ernment has allowed automatic appro"al of foreign technology agreements in the tourism ; industry subject to certain conditions. !n the past liberalization period the 1epartment of Tourism has cleared as many as <A5> foreign in"estment Proposals, from &ugustJA4to +ebruaryJA?. N-,=4 :-, A70-=502/ A++,-158 -: F-,*2;6 D2,*/0 I61*40=*60 &pplication for automatic appro"al of +oreign Equity !n"estment up to ?46 in the hotel M tourism related industry ha"e to be made in the prescribed form +C 0..%.!.3 H'otelsH would include restaurant, beach resort and other tourist comple*es pro"iding accommodation and8or catering and food facilities to tourists. The termH Tourist#related industryH would include among others the following9 4. <. Tra"el agencies, operating agencies. Dnits pro"iding facilities for cultural ad"enture and wildlife tour operating agencies and tourist transport

e*perience to tourist. =. -urface, air and water transport facility for touristsN

I6/*6021*4 :-, I61*40=*60 4. =6interest subsidy to hotel project in 4 to = star categories onloans sanctioned by appro"ed financial institutions pro"ided the projects are outside the metre cities of 1elhi, $umbai, Gol ata and $adras. <. ?6 interest subsidies to hotels constructed in tra"el circuits and destinations identified for intensi"e de"elopment as well as for heritage category of hotels. =. Capital subsidy of .s.? la hs or 4E6 of the cost, whiche"er is less, for de"elopment of any monuments8structure o"er B? years old into a 'eritage 'otel. >. 'otels, tra"el agents, tour operators, and other organization connected with tourist trade are now co"ered under :iberalized E*change .ate $anagement -ystem. &uthorized dealers are now allowed to release foreign e*change without the prior appro"al of 1epartment of Tourism. ?. +acility to open and operate E*change Earners +oreign Currency &ccount e*tended to hotel M tourism related industry.<?6 of inward remittance in foreign e*change can be credited to this account and utilized for specific purposes. 5. Customs duty on specified items has been reduced for project imports, pro"ided the goods imported are required for initial setting up of the hotel or for substantial e*pansion of the hotel.

B. C.

Concessional rate of duty for import of equipment for ad"enture sports. Priority consideration for appro"ed projects in allotment of construction materials li e, cement steel etc and for telephone tele*, and :P/

connections. P,-+-4*3 I6/*6021*4 26 0)* -::26; 4. & capital subsidy of .s.<? la hs or <?6 of the total project cost whiche"er is lower, for special project li e heritage hotels and certain :ocations li e mega projects. <. =. E*emption of e*penditure ta* on heritage hotels. E*tending income ta* deduction on <?6 of profits to hotels constructed beyond =4st $arch 4AA? 6 ma ing this deduction applicable to restaurants, air ta*i operators and other tourism related industries. >. ?. 5. B. C. .emo"ing distinction between plant and machinery and furniture M fi*ture for depreciation allowance. !nterest subsidy up to 4E6 for capital#intensi"e projects with long gestation li e hotels M restaurant, airport de"elopment and air ser"ices. & 4?6 interest subsidy for de"elopment of water transportation in mega project area. E*port house status and benefits to tourism establishments earning foreign e*change. 1uty free import of tourist transport "ehicles, specified ad"enture sports equipment by tra"el agents and tour operators and of specified equipment for tourism related amusement par s, health M science tourism. A. .emo"al of hotels from ta* deduction at source by companies paying rent of .s. 4<EEEE.

I61*40=*60 124-L-124 ;-10. +-82/< !n"estment opportunities are "aried, from leisure acti"ities li e water sports centers, amusement par s, health farms to hotels, beach resorts and air lin s, train circuits and ropeways.

The state go"ernment has declared its policy of promoting tourism, and more particularly of encouraging pri"ate in"estment in this sector. The main points of this policy are9 a. b. c. (elcoming of pri"ate in"estment in creating tourist facilities as well as related infrastructure. Encouraging the transfer of technology in tourism related industry. +le*ibility in policy on joint "entures, participation, and terms for %uild, )perate and )wn or Transfer models. The legal en"ironment is also a major determinant for the industry .The laws that go"ern industry are not the same in all the parts of the country. :aws li e the urban :and Ceiling &ct limit the amount of land any organization can hold and this se"erally limits the growth of hotel rooms in many areas of the country. $any of the :aws that are in effect are old and archaic ,and not geared to meet The challenges of the <4st century.. AJ E/-6-=2/4 The tourism industry not unli e the other industries grows with the increase in the spending of the people. The more the people spend the $ore the industry grows. The spending power of the power of the people has been increasing in the country and all o"er the world. -ince we are concentrating on the international tourists, the large increase in the spending power in most de"eloped countries has left a large amount of idle cash in their hands. This has lead to the tourism boom the world o"er and !ndia has been no e*ception.

There ha"e been more people coming into the country with more cash than e"er before. This has lead to an increase in the demand for better hotels. People who pre"iously used to come to the country on a shoestring %udget and

used to hunt around for the cheapest accommodation now Can afford to go for lu*ury hotels. This has lead to an increase in the number of hotels in the country. 'owe"er, an increase in the spending does not only limit itself to accommodation. The increase in the spending is also e"ident in the number of people tra"eling by air. E"en The number domestic tourist tra"eling by air#has dramatically gone up. To#day the world economy is transiting towards ser"ices. The global e*port of ser"ices is rising faster than the e*port of goods. !ndia is Dnfortunately still pursuing manufacturing with the enormous lead that the west has in manufacturing, it is "irtually impossible for !ndia to catch up. To day, with large number or less e*pensi"e, educated and s illed wor ers, !ndia comparati"e ad"antage lies in ser"ices, not in manufacturing. !ndia can grab the opportunity and cur"e aniche for herself by directly leapfrogging to ser"ices. Dnfortunately !ndia has not realized the potential of the ser"ice sector, as yet. The tourism industryJs foreign earnings in !ndia are aroundL=.< billion, tourism is the highest foreign e*change earner if we consider the fact that net "alue addition in /ems, and @ewellery is less than =E6 where as, in tourism it is more than AE6. E/-6-=2/ E612,-6=*60 The !ndian economy has grown rapidly o"er the past decade, with the real /1P growth a"eraging some 56 annually, in part due to the continued structural reform, including trade liberalization. -ocial indicators, such as po"erty and infant mortality ha"e also impro"ed during the last ten years. !n order to achie"e further significant reduction in po"erty. !ndia is currently targeting higher real /1P growth of between B6 and A6 0compared with ?.>6 e*pected for <EE48E<39 to meet this goal. !t will be important, as stressed by the &uthorities, to continue, and e"en accelerate, the reform process and increase competition in the economy. The /o"ernment estimates that annual e*port growth of almost 4<6 is required in order to raise !ndia share of world trade

from its present le"el of E.5B6 to a target of 46 by <EEB. !ndiaJs foreign direct in"estment 0+1!3 policy has been liberalized since its pre"ious re"iew. !n"estment is not only allowed in a greater number of sectors but a larger number of sectors than before are eligible for automatic in"estment procedures, in"ol"ing registration with the .eser"e %an N permission from the go"ernment is still required for in"estment in some sectors, while foreign in"estment is not permitted in a few sensiti"e sectors. 1espite, liberalization, !ndiaJs record in attracting in"estment remains disappointing, with +1! accounting for some 46 of /1PN and there appears to be no significant impro"ement in +1! inflows since the last .e"iew, suggesting perhaps that the policy and infrastructure en"ironment are still constraints. S-=* /7,,*60 */-6-=2/ +,-.*/02-64 5,* 54 763*,: ; ; ; /.1.P. growth rate projection for <EE=# <EE> is B6. /.1.P. growth rate projection for 4Eth ?# year plan is C6. /o"ernment considers .s. 5B4EEA crore for 4Eth ?# year plan. G.D.P. B.EE B.=E B.?E ?.EE 5.CE 5.>E ?.CE ?.EE >.BE

YEAR 4AA>#4AA? 4AA?#4AA5 4AA5#4AAB 4AAB#4AAC 4AAC#4AAA 4AAA#<EEE <EEE#<EE4 <EE4#<EE< <EE<#<E=

-ource9 Q!N1!&N EC)N)$KR .udar 1utt M G.P.$. -udharam GROSS DOMESTIC PRODUCTM

+or any country /.1.P. has great impact on the economy. /.1.P. show how the economy of that country is growing up. -o, it is "ery crucial factor for any industry especially to tea industry. Though the constitution proclaims !ndia to be a socialist country, it is in truth a mi*ed economy with a strong and influential pri"ate sector. Public sector underta ings controlled by the state are in"ol"ed in many industries though the need for disin"estments is being increasingly felt. !ndia has a planned economy. !t is largely an agrarian economy. .ice, wheat, oilseed, cotton, jute, tea, coffee, rubber, sugarcane and potatoes are the bul of the produce. :i"estoc include cattle, water buffalo, sheep, goats and poultry. Coastal communities and those who li"e on ri"erban s are often dependent on fishing for li"elihood. The major foreign e*change earner for !ndia is te*tile, followed by !nformation Technology. (ith !ndian !T professionals ma ing it big in the Dnited -tates and !ndian !T companies pro"ing to be among the best in the crop, there is new international interest in !ndian professionals. Precious and semi#precious stones, leather products, engineering goods and chemicals are also e*ported. $ajor trading partners include D-, DG, /ermany, 'ong Gong, @apan and the D&E. $ajor industries include steel, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum and machinery. &round <?6 of the population li"es below the po"erty line. /1P9 L<.55> trillion 0purchasing power parity3 Per Capita income9 L<5EE 0purchasing power parity3 CJ S-/258 563 C7807,* Tourism was always loo ed upon as something that always leads to the destruction of the social fabric of a place. The more the amount of outside people coming into a place, the more the ris of that place loosing !ts identity. Prime e*ample is /oa. +rom the late 5EJs to the early CEJs (hen the 'ippy culture was at its heights, /oa was a hea"en for them. 'ere they came in the

thousand and changed the whole culture of the state. This had a ripple effect on the country. People became cautious Especially of the international tourists. (hene"er a certain place became +amous, the e*ample of /oa was cited to discourage the inflow of !nternational tourists. &lthough the abo"e my sound may discouraging , the scene is fast Changing. Those places that ha"e .been able to stri e a balance between their own culture and the demands of the international tourist ha"e profited handsomely. The e*ample that come to mind are Gerala and .ajasthan, as discussed ahead in the report. People are now adopting themsel"es to the fact that tourism pays and it can be a major source of !ncome for them. E"en people themsel"es ha"e started tra"eling. !n addition, tourism as a form of recreation has really caught on. People are willing to tra"el to a place that is out of way and e*otic. (hen pre"iously tra"eling on a holiday meant going to a hill stations and beach, now people are willing to go in for ad"enture tourism as well as "isit places that cannot be really be called hospitable. Now places li e :eh and :a swadeep are mentioned in the same breath as /oa or Gashmir. D*=-;,5+)2/ :5/0-,4: H&n indi"idual is a core unit society H a group with similar needs create a mar et for particular product. !t means people or population is the most important factor. The mar eter must ha"e to eep watech on the population size M growth rateN education le"elN regional characteristics and house hold patterns. 1. P-+78502-6 &s !ndian population growth is around < 6 <.?6 per year it pro"ides a good consumer base for the mar et player. -o, as far as the future for consumers are concerned those companies ha"e good opportunity for future business. I6/-=* 8*1*8

&s !ndian le"el of income will increase the le"el of e*penditure would also be increased. &nd le"el of income increase would result in the change of life style of people and they will shift from unbranded to branded tea. L20*,5/< R50* !ndian literacy rate is around ?<6 for the year <EE4#E<. !t seems to be comparati"ely low than countries li e D.-.&. and @apan where that rate is around AE to A?6. This factor has direct relation with the health consciousness of particular country. &s this rate in !ndia is steadily growing up it would lead to increase in the use of branded tea consciousness. -o, it pro"ides a "ery good opportunity for the companies. C. L2:* 40<8* The shifting of customer from traditional base to materialism would lead to change in the mindset of consumers and this is needed in tea industry. To change the mindset of rural customers would be a huge threat for the those mar et player because in rural areas most of the people purchase the unbranded M low quality tea.

5.

P-+78502-6 G,-@0) &s mentioned earlier the growing population leads increase in needs and

wantN which mean growing demand of all necessities and other products. (orldJs population is around B.= billions at the end of 4AAA and the !ndian population crossed the 4EEE million mar N !t is 4>6 of worldJs total population.?A6 of total labor wor is engaged in agriculture acti"ities. 4C6 in industry and <?6 are in ser"ice industry. >=6 of the total population constitutes the labor force.

E.

E37/502-6 G,-7+ The population in any society falls into fi"e # education group.

4. !lliteracy. <. 'igh school drop out, =. 'igh school degree. >. College degree. ?. Professional degree. !n !ndia adult literacy rate is ?.46.5>6 of total male population and ><6 of the female population is literate. C-647=*, 5@5,*6*44: Tea is "ery useful for the health for the following way but most of the customers are not aware about it so the organization has to increase the awareness about tea in customerJs mind. KEY STATISTICS - DEMOGRAPHY PROFILE: &rea Population 0Est @an 47AA3 Population growth rate 0current3 Population 0.ural 8 Drban3 :ife e*pectancy 0years3 Popular :anguages .eligion =.<CB -q. Gms. 4EEE mm people 2 o"er that S<6 appro*imately Drban =E6, .ural BE6 $ale 2 5<, +emale 2 5= 'indi, English 'indu C<6, $uslim

4<6,

Christians <6, -i hs <6 @ains 46, :iteracy /1P -ectoral share 0+KABE3 others 46 .s. 5B4EEA. Primary 0&griculture etc.3 <C.B6 -econdary 0!ndustry etc.3 <A.?6 /1P growth rate 0<EE< 2 <EE=3 Per capita income E*change rate Tertiary 0-er"ices etc.3 >4.C6 ? 2 ?.?6 .s. 4=>5<, D-L=B? D- L 4 T .s. >C.?E.

!ndia has much di"ersity in groups. Each group has distinct taste preference, benefits and "alues. This distincti"eness affects their choice of product and %eha"iour as well as consumption beha"ior. -o mar eter has to understand their culture and social di"ersity and respond by way of designing their product. -o social and culture e"aluation helps the mar eter to target and positioned its products, and ad"ertising in "arious members for "arious masses. ; .eligion ; :anguage ; +ood ; Culture M Crafts ; Education The fabric of !ndian society is wo"en with myriad threads. The result is multi#te*tured, many layered and though this di"ersity has fuelled some dissension, it continues to be !ndiaJs strength. !ndia is predominantly 'indu and it also has the worldJs largest population of $uslims. -i hs, %uddhists, @ains, Christians 0.oman Catholic, Protestant and -yrian Christian3, @ews and Ooroastrians people this great land. There is phenomenal ethnic di"ersity too. (hile the people of the north are mainly !ndo#&ryan, in the south they are mostly 1ra"idian. The tribal population in the northeast is of Tibeto#%urmese e*tract, while the Jadi"asisJ of $adhya Pradesh and /ujarat are probably proto &ustraloid. :anguage "aries almost e"ery ten miles and !ndiaJs billion#strong population has a total of 4?=? recognized dialects. )ne of the most mar ed things about !ndian society is the great di"ersity. This applies to religion, ethnicity and language as much as to the economic situation. The yawning gap between the rich and the poor is bridged by a large middle class of small businessmen, professionals, bureaucrats etc.

$ost !ndians acti"ely practice their religion, and despite the creeping westernization, most of !ndia is socially orthodo*. That means that caste distinctions ha"e not been forgotten, man#woman interaction may be frowned upon, and the public display of affection is strictly no#no. The cow is sacred and Jall ye who forget that#be doomedJ. The left hand, which is an indispensable tool for !ndian ablutions, is considered impure and isnJt used in passing things around. )n the whole the !ndians are a warm welcoming people. The guest is ne*t only to /od and croo s and touts notwithstanding, and curious loo s and probing questions notwithstanding, youJll find that they are great hosts. Their idiosyncrasies just ma e it all the more interestingN be patient and you will learn to lo"e the complete pac age. R*82;2-6 !ndia probably has the most religious di"ersity in any country. !tJs the birthplace of 'induism, %uddhism, -i hism and @ainism. !tJs among the few places to ha"e a resident Ooroastrian population. The -yrian Christian Church is well established in GeralaN the %asilica of %om @esus in /oa, old churches in Calcutta and 1elhi, synagogues in Gerala, temples from the tiny to the tremendous, JstupasJ, JgompasJ and the %odhi tree, the &jmer -harif and Galiya -harif in %ombay, all reflect the amazing multiplicity of religious practice in !ndia. Tribal people in the northeast, $adhya Pradesh and /ujarat practice forms of nature worship. -ecularism is enshrined in the Constitution. L56;75;* The national language of !ndia is 'indi, which in one form or another is spo en all o"er the north. !n the 1eccan 0south !ndia3, the languages are completely different. The states were formed on the basis of language so each

has its own. )n the whole though, dialects, accents, idioms and linguistic flourishes change e"ery few miles. There are 4C official languages but o"er a thousand recognized dialects. English is widely spo en. F--3 +rom 1C to 1a ota, (arwic to what#ha"e#you, !ndian spices are letting off steam e"erywhere in the whole wide world. &nd you come to !ndia and realize......hey, thereJs nothing authentic about itU E"ery itchen, e"ery man, woman, coo , chef does it different. & meal in the north would typically constitute chapattis or rice with dal 0lentil curry3 and a dish of "egetables or meat. Pappads 0wafers fried or toasted to a crisp3, yoghurt and pic le are usual accompaniments. The chapatti is a round flat unlea"ened bread of which you tear bits to scoop the curry. ,ariations of the chapatti are paratha, poorie, bhatoora, and Tandoori naans. !dli, dosa, "ada, sambar, uppamaU !n the south, too, a meal centers on a base of rice, or as in the -outh #!ndian case, semolina preparation. The idli is a steamed rice ca e and the crisp salty panca e often stuffed with potatoes is the dosa. Eaten alongside is the -outh#!ndian dal #HsambharH, sour, hot, souped #up with "egetables. The %rahmins are "egetarian, but the rest consume sour#hot fish, mutton, and chic en with gusto. !n Gerala seafood is simmered in coconut mil and delicately +la"oured with curry lea"es. $ost !ndians eat three meals, each one full#fledged. -a"oury snac s li e pa oras pep the e"ening cuppa. &nything coated in batter 0of chic pea, flour et al3 and deep#fried will pass for pa ora. &lso, readily a"ailable on the roadside are snac s li e bhel puri 0spiced up puffed rice3 and paapri chaat 0wafers and boiled potato doused in curd and sauces3. ,egetarians will feel li e theyJ"e come home, especially in the south. %ut no matter where

you are, in a plush restaurant or a roadside JdhabaJ, in Gunnur or Gullu, you can be sure of sumptuous "egetarian meals. &ll along the coast and e*tensi"ely in the northeast fish is consumed almost as a staple. %oth fresh water and sea fish are popular. !ndians lo"e their sweets. There is great regional "ariety and among the most popular types is the %engali HmishtiH. ThereJs also a huge "ariety in drin s. %esides JchaiJ 0tea3 and coffee, sweetened8salty churned yoghurt called lassi, the ubiquitous Jneemboo# paniJ or lemon#water, fruit juice in tetra pac s and aerated drin s are readily a"ailable in !ndia. !$+: e*pands into !ndian made +oreign :iquor and spans the entire range from beer to whis ey. -ome e*amples of local brews are JchaangJ in &runachal, toddy in the -outh and /oaJs famous JfeniJ.

C7807,* N C,5:04 M742/. $uch of !ndiaJs classical music is de"otional and a lot of that, de"oted to the flute playing god, Grishna. The North !ndian 'industani and -outh !ndian Carnatic streams are distinct and both ha"e a comple* JragaJ framewor . /hazals in Drdu reflect on life and are light on the ear. E"ery region has a distincti"e fol tradition too. !nstruments that would typically accompany !ndian music are the stringed "eena, sitar, and the !ndian drum9 tabla or mridangam in the south. D56/*:

The legacy of dance in !ndia is tremendous. )n temple walls, on an urban stage, in impromptu bursts by a mellow e"ening fire, men and women twin le their toes in e*pression of joy. The classical dances of !ndia are numerous. Characterized by stylized mo"ements and elaborate costumes, these dances communicate age#old tales of lo"e, longing and rage. Gatha ali of Gerala, %haratnatyam of Tamil Nadu, Guchipudi of &ndhra Pradesh, $anipuri and )dissi from )rissa are the prominent dance forms in this country that sways to an altogether no"el beat. The robust bhangra of Punjabi men, the graceful whirling of .ajasthani women, the gentle sway of northeastern dancers, "igorous tribal dances, e"ery comer has de"eloped its own unique form. T)*50,*: There is a robust theatrical tradition. The Ka shagana, nautan i and puppetry are ancient fol forms that li"e on till date. This tribe of wandering performers is on the decline but there still are occasional performances on the rudimentary stages of the rural areas. .ustic and coarse the fla"our might be, but the techniques are surprisingly sophisticated. There is a growing body of contemporary wor both in English and in the "ernacular. A,0: The earliest specimens of !ndian painting are the ones on the walls of the &janta Ca"es dating bac to <nd century %C. The typical Jfigures in profileJ art of !ndia came to be when the @ain manuscripts were being illustrated. The $ughals had a huge impact on !ndian art. The miniature, which had been only on palm lea"es in the northeast, came into prominence. The influence of Persian art brought placid garden scenes, illustrations from myths, legends and history into !ndian art. :ater schools include the %engal -chool of Tagore and the Company -chool of European influence. $ore recently the opulent paintings of .aja .a"i

,arma, the paintings of $.+. 'ussain, @amini .oy and /anesh Pyne among others rule the art scene. C,5:04: (ord craft, handicrafts, architecture and sculpture all contribute to this rich and "aried domain. !ndian literature, both in English and in the "ernacular, is e"er more popular around the world. 'andicrafts are as "aried as the country itself. The $ughal and colonial structures and the temple architecture across the length and breadth of the country are testaments to the lands e*citing past. -culptures adorn temple walls, stupas, street junctions and ancient ca"es. The oldest schools are the /andhara and the $athura. M-12*4: The 'indi mo"ie industry is the most prolific in the world. %ased in %ombay, hence Hollywood, this spool#spitting machine ta es on the onerous responsibility of fuelling !ndiaJs prime passion. There is sheer joy in the easy stereotypes of muscle#fle*ing machismo, leering "illainy and leading ladies of 'indi filmdom, but not all 'indi films are a simmering brew of action, romance, and song and dance. There is a parallel stream of HartH cinema though itJs not nearly half as popular as the HcommercialH stream. /i"ing competition to the 'ollywood masala film is the equally spicy south !ndian fare. .egional cinema is fairly popular in its local conte*t and with serious cinemagoers. C,2/9*0O )h for the lo"e of a si*#erU !ndia grinds to a halt when the countryJs ele"en don their colours. !n cric et#crazy Calcutta, old fol gather to trash the Jnew fangledJ limited#o"ers formatN in front of a million T, sets, four million pray for "ictory 0often nowing theyJre praying for a miracleU3 tirelessly. !tJs a mad#mad#mad world and in !ndia cric et stars adorn the doors of innumerable

cupboards. 'oc ey, football and now the &TP tour too ha"e a decent following. E37/502-6 ?A.?6 of !ndia is literate9 BE.<6 males and >C.=6 females. Gerala is the model state as far as education le"els are concerned boasting figures of almost AA6 literacy. 'igher education in !ndia has a formidable reputation. (hether in engineering or medicine, business management or social science education, !ndia uni"ersities are at par with the best in the world. D. T*/)6-8-;2/58 Technology although does not seem to be a major influence at the first glance, stillJ it plays a major part in the promotion of a place. %etter communication facilities are one of the first prerequisites for growth in the inflow of tourists. This has been made possible with technology. %etter technologies in the field of communication with cheaper costs ha"e seen many remote and inaccessible areas of the country get connected to the rest of the world. This connecti"ity has made these places "isible to the world. %etter communication means access to media. &nd that is "ery important if any place wants to be on the world tourist map. -imilarly better transportation facilities ha"e lead to a dramatic increase in the number of tourists "isiting any particular place. The presence of an airport and the a"ailability of frequent flights are a great con"enience to any tra"eler. FIVE FORCE ANALYSIS Professor $ichel porter of 'ar"ard %usiness -chool has con"incingly demonstrated the state of competition in an !ndustry !s a composite of fi"e competiti"e forces which are as under. 43 <3 The ri"alry among competing sellers. The potential entry of new competitor.

=3 >3 ?3

Competiti"e pressures from substitute products. -upplier# seller collaboration and bargaining. -eller#buyer collaboration and bargaining. (e ha"e analysis here the fi"e force competition in conte*t with Tourism

industry analysis of the fi"e force of competition, are as under relating to Tourism !ndustry. T)* R2158,< 5=-6; C-=+*026; S*88*,4. The strongest of the fi"e competiti"e forces is usually the joc eying for position and buyer fa"our that goes on among ri"al sellers of Tourism !ndustry. !n the tourism industry cross country ri"alry is centered on price Competition M promotional scheme. .i"alry among competitors is "ery high in case of tourism industry 1ue to the following reason.

R*54-64 F-, H2;) R2158,<. 1. N7=A*, -: /-=+*020-,4 26/,*54*4: There is increasing competition from de"eloping countries within the &sian region such as to gain a mar et share of the Tourism !ndia. &t the same time well nown and -ingapore are launching aggressi"e promotion to attract tourist particularly from Europe. !. G,-@26; D*=563: !n a rapidly e*panding tourism mar et, there tends to be enough business for e"erybody to grow. Tourism is one of the worldJs fastest growing industries

at present and hold the status of the worldJs on 4 !ndustries There is currently can estimated >EE million !nternational tra"elers world wide. The figure is e*pected to rise to 55E million by the end of the year <EE<. The tourism !ndustries as a whole is presently estimated to earn o"er us 6 =.? million world wide creating a job e"ery <.> second with e"ery one of there direct job creating another indicate ones. -pending on tourism &mounts to ?6 # 4E6 of total consumer spending in a year world wide. !ndustries share of the total mar et is a pittance at E.?6 Ne"erthless, tourism has the distinction of being the third largest e*port !ndustry after gems and jewellery and rady made garments in !ndia. 3 L-@ S@20/)26; /-40: The lower the cost of switching the easier it is for the ri"al seller to raid another seller, customers. !n case of Tourism industry, switching cost is "ery low. /enerally all competitors mar eting their respecti"e brand with same price and promotional schemes which ma es competition tougher and tougher. C. S05635,32I* 4*,12/*: Tourism is base on standardize ser"ice generally the process of producing tourism is nearly same. %ut ser"ice differentiation is there so such condition increases the .i"alry among competing sellers. 5. P,2/* /704 563 /-=+*02021* @*5+-64: &s number of competitors !ncreases all mar eter force to reduce their price and ha"e the increase promotional acti"ities. $ajor players and new entrants mar eting their respecti"e brands with low price and doing promotion to increases the usage. ENTRY &ARRIERS: 1. H7;* I61*40=*60:

!f the company wants to launch at National le"el them its requires the huge !n"estment so it is not easy for new companies to come in sector. -o the entry is not so easy for new companies. 'igh &mount at capital is required to produce qualitati"e product. The cost of other !nfrastructure facilities is also to be considered by new entrants so, capital requirement is also one of the entry barriers. !. E/-6-=2/4 -: S/58*: Economies of sale are the main barriers to entry in tourism !ndustry bases they force potential competitors either to enter on large scale or to accept cost ad"antage. !f new entrant enters with large scale it may not capture the mar et in proportion of supply. !f new entrant accept cost disad"antage it may not sur"i"e in tough competition. 3. C-40 563 R*4-7,/* 3245315605;*4: E*isting firms may ha"e cost and resources ad"antages not a"ailable to potential entrants. These ad"antages can include partnerships with the best and cheapest suppliers of ser"ices. C. L*5,626; 563 E?+*,2*6/* C7,1* E::*/04: (hen lower unit costs are partly or mostly a results of e*perience in producing the product and other learning cur"e benefits new entrants face a potentially significant cost disad"antage competing against e*isting firms with more accumulated now how. 5. R*;7850-,< P-82/2*4: /o"ernment agencies are limit or e"er bar entry by requiring licenses and permits stringent go"ernment mandate safety regulations and en"ironmental pollution standards are entry barrier because they raise entry costs. C-=+*02021* P,*447,*4 F,-= S7A402070* P,-37/04.

Tourism !ndustry gi"en entertainment to the tourist and also pro"ide some. Gnowledge of that place as per that we can says, media, 'ollywood, and all type of entertainment industry are the substitute of the tourism industry. %ut we canJt say that they are close substitute of industry. %ecause they are different thing than tourism. Thus, tourism industries has no problem for the close substitute because they are not other product or ser"ice which is use as substitute of tourism so the tourism industry is being fearless from the substitute. S7++82*, S*88*, C-885A-,502-6 563 &5,;52626;: (hether supplier seller relationship represents a strong or wea competiti"e force depends on whether supplier can e*ercise sufficient bargaining power to influence the terms and condition of supply and the e*tent of supplier. -eller collaboration in the tourism industry.

-upplier are li ewise relegated to a wea bargaining position whene"er there are good substitutes for the item they pro"ide and buyers find it neither costly nor difficult to switch their purchases to the suppliers of alternati"e items. -uppliers also tend to ha"e less le"erage to bargaining o"er price and other terms of sale when the company they are supplying is a major customer. S*88*, - &7<*, C-885A-,502-6 563 &5,;52626; &n industryJs customers constantly loo for reduced prices, impro"ed product quality and added ser"ices and thus can affect competition within an industry. %uyers play indi"idual suppliers against one another in their efforts to obtain these and other concessions. This is certain the case with some large retailers in their dealings with many of their suppliers.

R*54-64: 1. L5,;* 67=A*, -: A7<*,4 The numbers of buyers are large so it require mass promotional schemes and consumers are located in different geographic areas ha"ing different culture. They may not generate sufficient bargaining power collecti"ely. !. I=+-,056/* -: 0)* S*,12/*: Tourism is "ery necessary for its regular customer, it decrease the bargaining power of the buyer. 13. ROLE OF SUPPORT INDUSTRIES 13.1 A2,826*4 &irports are the primary infrastructure facility that a country has to offer to the international tourism. !t would surprising to note that renowned tourists destinations li e @aipur and /oa do not ha"e an international airport. +oreign quests, who constitute more than 5E6 of the tourists destined for these cities, currently ha"e to tra"el "ia $umbai, unless they are ready to charter a flight. This ma es things cumbersome and time consuming, thus discouraging many time conscious tourists from "isiting these places. -imilar is the case of cities li e &gra, Ddaipur and ,aranasi where foreign tourists account for appro*imately ?E6 of the total tourist arri"al. & Close :in age in another four years it is assumed that the number of !nternational tra"elers arri"ing into !ndia would be ? million. The question posed before the ministers, business delegation and indi"idual promoters by o"erseas tra"el operators is Jhow reliable and stable is the domestic networ of air ser"ices and how easy is the seat a"ailability on flights to !ndia from the e*isting and potential mar ets. &n international business tra"eler plan his or her itinerary well in ad"ance and would li e to be assured that there would not be any last minute changes.

&s many as AB6 of the foreign "isitors tra"el by air ma ing ci"il a"iation a prime influence on the course of tourism growth. This ma es both these sectors far too interdependent. The liberalization of ci"il a"iation policies in !ndia mar ed by licensing of pri"ate airlines to operate on routes ser"ed for >E years by the state owned carriers was prompted by the demands of tourism. &ccording to the (orld Tourism )rganization of which !ndia is the member, tra"el and tourism account for 4<6 of consumer spending with air tra"el about a quarter of this e*penditure. 1espite the synergies, there can be conflicts between a"iation and tourism policies as for instance o"er the question of protection of a national airline in the conte*t of growing tourist traffic. The eenness shown by air carriers of se"eral countries to operator flights to !ndia or to increase frequencies for their e*isting ser"ices only heightens the potential of the !ndia mar et. Tourism # related ci"il a"iation de"elopment is not limited to licensing of operators for ser"ing short # haul routes. &irport de"elopment, up gradation and e*pansion of ser"ices, replacements and renewals are part of infrastructure requirements. The economic objecti"es of tourism policies in"ol"e the growth of national incomes, employment, foreign e*change earnings, regional de"elopment and go"ernment ta* re"enues. !n each of these aspects the ci"il a"iation sector has a pi"otal role. Precise e"aluation of the economic benefits from increased tourism arising from the adoption of more liberal a"iation policies will be possible if the database is strengthened. 1oubtlessly there is a need to increase international seat capacity to !ndia. The largest of ? million is far too modest for a country with wondrous tourism product and capacity e*pansion will ha"e to be pro"ided for. &ir !ndia has been planning to induce new generation medium capacity long# range aircraft into its e*isting fleet. &t the same time, principal domestic carrier, the !ndian &irlines has se"eral incenti"es for "isitors from o"erseas. )n discounted dollar fares the

tra"eler can journey to any part of the country by !&Js fleet or aircraft. No less than <?6 of the seats on all domestic ser"ices are reser"ed for foreign tourists. &irport and airspace congestion, passenger facilitation, en"ironmental issues and constraints of resources are problems affecting the tourism and a"iation sector. There are li ely to aggra"ate as increased leisure time and disposable income increase of the people the world o"er. &ir transport has contributed most to business tra"el and to conference tourism as well. 13.! H-0*8 I63740,< 'otels form one of the most important support ser"ice that affect the arri"al of tourist to a country. The major players in the industry are !ndian 'otels Company :td 0!'C:3 operating under the Taj brand, the )beroi, )riental 'otels, 'otel :eela ,enture and the &sho a chain of hotels, owned and operated by the !ndian Tourism 1e"elopment Corporation 0!T1C3. The %ritish made the plantation of a western concept in the eastern en"ironment initially. The Taj $ahal 'otel built by @ameshedji Nauroji Tata in %ombay in 4AE= is the only e*ception since till dawn of the independence by and large almost all the hotels in !ndia were owned and managed by %ritish or -wiss. The hotel industry particularly in the !ndian perspecti"e has often considered mar eting as a tantamount of selling. !t is the high time that the pri"ate and public sector realizes the rele"ance of economic hotels for burgeoning $iddle Class. !n addition it is also important that the big hotel chains thin about hotel accommodation facilities albeit for the low # income group of the !ndian society. This is essential because the urban population is increasing fast. (e find a profitable opportunity there which focuses on de"elopment of new economic hotels. There are around 4EEE classified hotels and the total room a"ailability is pegged at 5E,EEE rooms. 'otels are classified into si* categories according to the star rating assigned by the 1epartment of Tourism. These range from one

star to fi"e star delu*e depending upon size and amenities. &bout =E6 of the rooms fall under the ?# star or ?# star delu*e categories. The hotel should pro"ide facilities li e reception, cash and information counter attended by well qualified, trained and e*perienced personal, conferences in the form of one or more conference rooms8banquet halls and pri"ate dinning rooms. There should be a recognized tra"el counter, money changing and safe deposit facilities, luggage room and medicines on the premises. The hotel should offer both !nternational and !ndian Cuisine and the food and be"erage ser"ice should be highest standers. The hotel staff should be well qualified and should be able to understand and spea English. There should be pro"ision of laundry and dry cleaning. (ith a "iew to maintaining standards and enforcing control, the 1epartment of Tourism $inistry of Tourism and Ci"il &"iation, /o"ernment of !ndia has de"eloped a system of categorizing the a"ailable accommodation as per certain criteria. &ccordingly, the hotels are either appro"ed or unappro"ed. The appro"ed hotels are found of international standard and normally the foreign tourists prefer to stay in that category of hotels. This is due to the fact that the appro"ed hotels ha"e the stamp of official recognition. &ppro"al in itself simplifies the tas of promotion. The hotels professionals bear the responsibility of identifying the emerging segments. )f late we a new trend e"en in !ndia condition because women ha"e been found staying in hotels or eating in hotel restaurants. There are women e*ecuti"es and women going on holidays in all age groupN albeit without accommodating men. & number of married women ha"e been found ta ing an e*tra holiday on their own. $iddle# aged, di"orce or single women ha"e also been found staying in hotels. !t is against this bac ground that we find women segment emerging as an important segment for the hotel business.

It is natural that we in! a !i eren"e in the in!ustr# in the intensit# $ %$th the "ate&$ri'es $ t$urists( 1J D-=*402/ T-7,2404: !n the group of domestic tourists, the different categorizes are pilgrims "isiting the sacred places, students on educational tours, officials on deputations, political representati"es, film stars on location shooting. Gnowledge see ers on de"eloping their credentials, sportsmen playing national games. The domestic Jtourists stay in hotels with a different moti"e. (e find a change in the le"el of domestic users. /enerally the domestic customers pay less attention on "alue and more on price. & majority of the domestic tourists are found price sensiti"e and therefore the hoteliers are supposed to ma e pricing decisions moti"ational. !J F-,*2;6 0-7,2404: !n the group of foreign tourists, we find political representati"es on peace mission, trade representati"es on business promotion, educationists, sportsmen, culture representati"es, film stars, pilgrims, etc. These categorizes of foreign tourists "isit hotel with di"erse aims and objecti"es. They normally prefer to stay in the classified hotels where the ser"ices are found standardized. (e also find cases where foreigners stay e"en in the unclassified hotels. To be more specific the e*isting world wide economic depression has made e"en the foreign tourists sensiti"e to price and this ma es it significant that policy ma ers and the senior e*ecuti"es assign due weightage to this new de"elopment. 13.3 R528@5<4 .ailway was established in 4C?= and is now the 4?E year of e*istence. The railway is the nationJs lifeline and prime carrier of men and material. !t is the worldJs largest networ under single management with a tra"el route of 5<?EE ms. BEEE stations and pro"ides employment to 4.C million people.

R528 T-7,24= To de"elop rail tourism the !ndian .ailways ha"e come up with "arious methods and inno"ati"e ways to promote tra"el by rail. They are9 :aunching of eight new e*clusi"e lu*ury tourist trains on the Palace on heels pattern to operate on popular tourist circuits. 'otel infrastructure at 4EE railway stations in places of tourist interest. 1isco"er !ndia !ndrail passes for use from half#a#day to AE days. Networ of /-&s around the world. -uperfast inter#city .ajdhanis and day return -hatabdi trains. .ail holiday pac age tours.

S7+*, L7?7,< T-7,240 T,5264. The !ndian railway has identified the launching of eight super lu*ury trains designed li e ?# star hotels on wheels. )perating on a B#night itinerary tra"eling between <EEE to =EEE ms each and co"ering B major destinations ha"ing the theme of tra"eling by night and sightseeing by day These trains will be fully air#conditioned with 4> saloons, < dining cars, a :ounge#cum#bar, a baggage car, a staff car and < power cars. D24/-1*, I6325 0),-7;) I63,528 P544. To e*plore the splendors of !ndia, the railways ha"e designed the !ndrail pass. Passes can be purchased by foreign nationals and nonresident !ndians in D- dollars, pound sterling and other con"ertible foreign, currency in cash, tra"elers cheque and credit cardsU3 These passes are sold by /-&s 0/eneral -ales &gents3 abroad. !n !ndia they are sold at the !nternational Tourist %ureau at New 1elhi railway station and <E other major railway stations. C I60*,6502-658 T-7,24= &7,*57

The !nternational Tourism %ureau deals with foreign tourists intending to Tra"el by rail in !ndia. !t pro"ides assistance to foreign tourists and N.!s .elated to boo ings, reser"ations, itinerary planning and other inquiries through its tourism guides and staff con"ersant with foreign languages.3 !ndrail passes are issued to foreign tourists enabling them to tra"el as they li e from any station to the destination of their choice to any point by rail within the period of "alidity of the passes. The !T% arranges accommodation in retiring rooms and .ail Katra Nowise as also bedrolls in trains on demand. !nformation can also be obtained from &gra, &hmedabad, &urangabad, %angalore, $umbai, Gol ata, /ora hpur, @aipur, @odhpur, @aisalmer, Chennai, Puttaparthi, .ameshwaram, -ecundrabad, Tri"andrum, ,adodara, ,asco#da# /ama, ,ijaywada and ,aranasi. 1 - )-0*8 P,-.*/0 !ndian railways ha"e formulated a mega project to set up 4EE railway hotel3 at stations of tourist importance to pro"ide the infrastructure inputs needed. +or implementing the tourism action plan of the go"ernment to attract ? million tourist by <EEE &.1. this scheme has a potential of adding 4EEEE hotel rooms in the organized sector in the country, attracting an in"estment pf .s. 4EEEE crores on infrastructure de"elopment and generating direct employment for =EEEE people and indirect for twice the number of people in related acti"ities. This scheme has been planned in the joint sector with organization in the pri"ate and public sectors. R528@5<4 0- 4*0 7+ C50*,26; 563 T-7,24= C-,+-,502-6 &s part of its promotional campaign of tourism the go"ernment has proposed to set up the .ailway Catering and Tourism Corporation 0!.CTC3rVThe corporation is e*pected to pro"ide necessary control and direction to the catering ser"ices on train as well as stations.

13.C R-53 &irports being a wea lin s in !ndian tourism, tourists are forced to use .oads. $ore thanCE6 of the tourists has to use road networ but the deplorable road conditions in !ndia do not ma e the tra"eling easier. The major factor that hampers the de"elopment of road sector is the go"ernment control o"er all the road properties. !nternationally, all the major cities within the country are connected with si* lane highways. %ut in !ndia, e"en the four metros are not well connected. Thus, the basic infrastructure to support the tourism industry is missing. & de"eloped country possesses e*cellent roads since this opens for them new "istas of de"elopment. Contrary to it in a bac ward country, the road Present a "ery gloomy picture. The roads strengthen our infrastructural %ase and so become instrumental in acti"ating the process of de"elopment. &s compared to other forms of transport, the road transport is found cheaper of course in the !ndian perspecti"e, the !ndian .ailways ha"e been offering economic ser"ices to the users which are found cheaper than the road transport. The operational cost of railways, steam#ship or airplanes. .ailways or steamship or airplane can be used by anyone e"en without ma ing a direct payment. This clarifies the significance of road transport in todayJs perspecti"e. -electi"e up gradation of road ma ing equipments and construction Practices can achie"e high standards of road quality demanded by the modern generation of road "ehicles .!t is found that large programmes of road construction ha"e an ad"erse effect on the en"ironment or ecosystem. Pre"ention of ribbon de"elopment, pro"ision of wide#side amenities, landscaping and drainage and the landslide areas need an intensi"e care. $aintenance through normal repairs, periodic renewals and rehabilitations di"ert a close attention. The thrust towards the modernization of the road sector requires adequate bac up in the form computerizing, introduction of $anagement !nformation -ystem and planning and monitoring agencies. The

national 'ighways gra"itate a close attention because N' though only two percent of length of the total road system, they carry one#third of the total road traffic. 13.5 T*8*/-==762/502-64 +rom the plan old telephone ser"ices to multimedia, the telecom re"olution, in its rapid pace, has en"eloped the tourism sector as any other economic acti"ity. The use of hands free tools gifted by the telecom industry has grown phenomenally in the tourism sector to the e*tent that any establishment that fails to be one up loses to its competitors. E"en the plain old telephone has its uses in mar eting as shown in the :ondon sur"ey of ele"en airways using the instrument for special ser"ice. The -ur"ey ran ed %ritish &irways number one in this facilitation8& caller could get not only all information about flights, connections and seat &"ailability but also a whole lot of information useful to the tra"eler li e Car rentals, hotel boo ings, theatre shows and museum timings The sur"ey ran ed &ir !ndia the last of the ele"en#a call to its ser"ice got a taped message directing that the query be addressed another number. 0'igh incidence of internet access is illustrati"e of another instance of the /reat impact telecommunications3 .The greatly publicized information super# highway is accessible anyone with time, interest and curiosity. (ith curiosity. (ith customers becoming e"er more demanding hospitality ser"ices too offer a range of ser"ices by internet. Tra"el agents and airline offices are increasingly lin ed by the electronic information distribution system li e /alileo, &bacus, -itar, etc. The electronic card door eys ha"e become common in major hotels in all big cities. %esides, all e*ecuti"e suites ha"e facilities to dispatch and .ecei"e fa* messages ensuring complete pri"acy. &nother tra"el aid is the satellite phone. Pioneered by the :ondon based !nternational $obile -atellite

)rganization#!mmersed, these instruments are to be installed on :ong distance e*press and mail trains of !ndian .ailways. This follows the success of satellite telephones were e*perimentally fitted to two .ajdhani E*press trains in 4AA?.This has become so popular that it has been decided to equip all the ele"en .ajdhani trains with satellite phones as well as any new train that enters the ser"ice. 'ospitality ser"ices are not the only beneficiaries of these aids but also at times the cause of their creation. -ince there has been telecom re"olution today tourismJs growth is greatly conditioned by the web and the net. 13.E T,51*8 5;*604 563 0-7, -+*,50-,4 T,51*8 A;*60 & tra"el industry is found to be uncoordinated people trying to achie"e a coordinated result. & tra"el agent is one who acts on behalf of a principal, i.e. the original pro"ider of the tourism ser"ices, such as 'otel Company, airline, tour operator a shipping company. & tra"el agency is also called a manufacturing of tourist product, i.e. an inclusi"e of pac aged tour.

T-7, -+*,50-, & tour operator is one who buys the indi"idual elements in the tra"el product on his own account and combines them in such a way that he is selling the pac age of tra"el, the tour to his clients. & tour operator bears the responsibility of deli"ering the ser"ices.3'e creates his own pac ages by buying or reser"ing necessary supply elements and often retails through tra"el agents, their own offices or by direct mail "ia boo ing form in brochure or by direct enquiries from consumers. Tra"el agents and tour operators form the bac bone of the industry. They play an important role in promoting the country as a tourist destination. &n e*ample, City Cross Tra"els Pri"ate :imited, $umbai is promoting tourism in @ammu and Gashmir despite the "iolence that place some times ago. -imilarly

other tra"el agencies are also trying to project a peaceful picture of !ndia abroad. The tra"el agencies pro"ide pac age that lure the foreign tourists towards our country. These pac aged tours e*tract the best out of places and gi"es a foreign tourist a feel of the rich cultural di"ersity of our country. This business is competiti"e. The success depends on the prices, which ha"e to be the lowest since holidays ha"e become a standardized product. This is particularly true in case of a large number of holiday ma ers see ing the three -Js# sun, sea and sand. & particular destination for e.g. !n the case of beach holiday is not so important for the customer to as its Price if it gi"es hi "alue for his money. !f he finds that it is o"erpriced he -ubstitutes for another destination, which offers the same product for lower price. &s regards to this it, also coupled with increasing competition from domestic competitors, it becomes "ery essential for the tra"el operator to mar et itself.

F,** :-, 5 +,2/*: (ith profit margins coming down pac age tour companies ha"e to ladle out unbelie"able offers to attract tourists that these freebies are laden with hidden costs is different thing. $ar et leader -)TC "irtually triggered off a war of freebies when it ad"ertised its offer of free air tic ets on its tours to Europe and D.-. )ther tra"el biggies li e Thomas Coo and Co* M Gings immediately whipped up almost identical offers. -harply increasing competition has ensured lower margins which are down from<E6 three years ago to a mere ?6 now, forcing companies to come up with newer mar eting gimmic s e"ry season. To o"ercome the costs, many companies a"oid e*pensi"e#but interesting cities li e Paris, .ome and :ondon, heading instead for cheaper alternati"es li e

%russels. %esides the best sightseeing is usually ept optional and tourist end up footing the bill. The selection of cheaper hotels outside the city and fewer meals further help cut these costs on tours. T,51*8 6-@, +5< 850*, !n the past couple of years holidays ha"e been increasingly pac aged li e any other consumer durable. The most effecti"e of these is the tra"el now and pay later scheme. +or e*ample today an C day tour in Europe from Guoni can cost <> quoted monthly installments 0E$!J-3 of .s. <4A? while and C days trip to Thailand will set you bac by 4C E$!J- of .s. 45AE each. Than s to this, tra"el majors ha"e seen their business grow. The major segment targeted here comprises of the families with annual income of .s. ?4 :a h. &lso, as our report discusses there is a high "oltage action in the tour business with plant of possible mergers in the pipeline. That will mean better economies in operations and lower prices.

T)* 3*42 0-7/) The emphasis by tra"el majors is to project a much localized identity and rather than sing about their foreign affiliation, to actually in"est in a local identity. -o we ha"e Thomas coo using Taisa ,asool in its ad"ertisements and Co* M Gings promoting a J%harat 1e hoJ and J1uniya 1e hoJ with .aj Tra"els in any case biting into di"erse ma ets including those of their foreign competitors promoting an absolute local fla"or and attention to local taste buds. The J%harat 1e hoJ and J1uniya 1e ho4 are therefore all set to become brands in their own right with huge amounts of money being pumped in to establish them a brand names. Presently Co* M Gings and Thomas Coo may well face the problem of the Phoren Tag and strongly phone for the JPaisa ,asoolJ and 1uniya 1e hoJ to buy them out.

S*,12/* - 0)* 9*< 0- 4740*656/* !t appears to be the unanimous feed bac from most tra"el agents that nothing will beat the ser"ice factor, aptly aided by technology of course. !t will definitely read the motto of toe )lympics in tra"el to...faster, higher.... %etterU Now, more than e"er ser"ice will be the ey component. %attle will need to be fought or lost at the front des . No more does the consumer ha"e time for queues to get a patient hearing. 'e will need a smile and a laugh and much more, a "eritable dream he can go home with. 1estination tra"el, as the a"erage !ndian is wa ing up to is all about the e*perience. (e sell him a dream and we will need to fulfill e"ery aspect of his dream to disco"er the repeat customer. The e*perience at the front des is where the battles between big and small will be fought, and won or lost, and therein lies our new horizon a new frontier # our great opportunity.

1C. T-7,24= F2656/* C-,+-,502-6 -: I6325 1C.1 I6/-,+-,502-6 563 C-==*6/*=*60 -: A7426*44 T+C! was incorporated on <B44 @anuary, 4ACA as a public limited company under the Companies &ct 4A?5. !t became operational on lsi +ebruary, 4ACA on the receipt of Certificate of Commencement of business from the .egistrar of Companies. 1C.! S)5,* C5+2058 The authorized share capital of T+C! is .s. 4EE crores of which the initial paid#up capital was .s. ?E Crores. T+C! came out with a public issue of equity share capital of .s. 4B Crores at a premium of .s. <E per share. This issue was o"ersubscribed by 4E times. T+C! has o"er one la hs shareholders.

1C.3

&7426*44 -: 0)* C-=+56< T+C! pro"ides financial assistance to enterprises for setting up and

de"elopment of tourism related acti"ities, facilities and ser"ices including hotels, restaurants, holiday resorts, motels, highway facilities, amusement par s and comple*es for entertainment,. education and sports, safari par s, ropeway, cultural center, con"ention halls, all forms of transport industry, air ta*is tra"el and tour operating agencies, tourist emporia, sports facilities, etc. T+C! also formulates guidelines and policies related to financing of such projects i.e. it plays a de"elopmental role the o"erall policies of the go"ernment. 1C.C T<+*4 -: F2656/258 A4424056/* :-, T-7,24= P,-.*/04 T+C! pro"ides financial assistance of new, e*pansion, di"ersification, modernization projects in tourism industry and other related acti"ities in the following forms9 a. b. c. d. .upee :oans Dnderwriting of public issue of shares8debentures and direct subscription of such securities. /uarantee for deferred payments and credits raised in !ndia M abroad. $erchant %an ing and &d"isory -er"ices. T+C! is operating similar lines as !1%!, !+C! and !C!C!, T+C! has been included as a member in the consortium of projects of all !ndia public financial and in"estment institutions under Project +inancing Participation -cheme 0P+P-3. !t has also been declared a public financial institution under section >& of the companies act 4A?5 "ide notification number -.). B. 0E3 1ated =rd @anuary, 4AAE issued by the $inistry of !ndustry, 1epartment of Company &ffairs, T+C! pro"ides financial assistance for projects in tourism industry where the total project cost is o"er = crores, in consortium with other financial

institutions li e !+C!, !C!C!, and !1%!. .egarding projects with capital cost between .s. 4 Crore and .s. = Crores, T+4C +inances the gap after ta ing into account financial assistance a"ailable from the -tate le"el institutions. .ate of interest charged by T+C! is equi"alent to the other financial institutions. 'eritage hotels are gi"en interest subsidy at the rate of ?6 1C.5 N-,=4 -: A4424056/* & fle*ible "iew is ta en in to account with regards to the norms for financial assistance regarding promoterJs contribution, debt#equity ratio, moratorium period and repayment period depending upon the merits and circumstances in each case. The general norms are as under9 A P,-=-0*,4P /-60,2A702-6 : The normal promotersJ contribution for new product is =E6 .ela*ations is allowed in respect of large projects in"ol"ing capital cost e*ceeding .s. 4EE crores. & D*A0 EB720< R502- : The general norm sis 4.?94 marginal rela*ation depending upon the nature of the project and its capacity to ser"ice loans and the share capital. C M-,50-,27= +*,2-3 563 R*+5<=*60: This depends upon period of completion of the project and stabilization of operations as well as the cash flow generation estimated to be a"ailable for debt#ser"icing purposes. Currency loan would be for C#4< years including the moratorium period. (ith respect to transport sector, restaurants and similar projects the repayment period would be within ? years. D L563 C-40:

T+C! has been adopting a norm of 4E#4? percent of the project cost of land whiche"er is lower, in respect of land for hotel projects, subject to the capacity of the project to ser"ice the in"estment including cost of land. !n e*ceptional cases a rela*ation beyond 4?6 might be considered base on the merits and circumstances of the case. E O+*,502-64 -: TFCI: T+C! has recei"ed an o"erwhelming response from the tourism industry. The cumulati"e sanction of assistance by T+C! in the last 5 years ending =4st $arch, 4AA? amounted to .s. B?? Crores for <>5 projects including projects promoted by entrepreneurs entering tourism industry for the first time. Cumulati"e addition in hotel rooms as a direct result of assistance by T+C! amounted to 4?<>5 rooms and the total in"estment amounted to .s. <><? Crores. T+C! has also assisted in non#con"entional projects li e amusement par s, sports facilities, car rental, ta*is, ferries, ropeways, airport facilitation centre, training institutes for hotel personnel, etc. 1C.E T*/)6-8-;2/58 E612,-6=*60 Technology related issue is already incorporated in the eco#tourism and En"ironment Policies of the /o"ernment. 'otels and other tourist establishments follow the guidelines framed by the $inistry of Tourism. !nformation is disseminated through brochures, computer media, and wor shops for tour operators, tra"el agents and other concerned parties. $apping and in"entorying of natural resources and ecosystem characteristics in tourist areas is an ongoing acti"ity of the /o"ernment. Potential users of information ha"e to approach the concerned agencies. !nformation is also a"ailable on the internet. The $inistry of Tourism, /o"ernment of !ndia is the nodal agency for

the formulation of national policies and programmes and for the coordination of acti"ities of "arious central and state go"ernment agencies and the pri"ate sector for de"elopment of Tourism. 'owe"er, all the en"ironmental regulations are enforced by the $inistry of En"ironment and +orests. The National Tourism Policy en"isages a "ery big role for all the sta eholders in the decision ma ing process. They are in"ol"ed in the de"elopment of tourism and ha"e contributed substantially ! sustainable tourism in the country. T)* N502-658 P-82/< -6 T-7,24= lays emphasis on sustainable de"elopment of tourism. !n addition, the /o"ernment has brought out a comprehensi"e E/T-7,24= +-82/< 563 /uidelines. &ll issues rele"ant to sustainable tourism are co"ered in the policy and guidelines. The Eco tourism policy and guidelines will ensure regulated growth of eco tourism and nature#based tourism with its positi"e impacts of en"ironment protection and community de"elopment. There are established procedures stipulated by the $inistry of En"ironment and +orests for project clearance and monitoring. There are deterrents in these strategies to chec , control or penalize damaging en"ironmental practices on the part of businesses and "isitors. There are se"eral &cts and laws, which ensure sustainable tourism. These are the wil! li e )r$te"ti$n A"t *9+2, the En-ir$n.ent /Pr$te"ti$n0 A"t *912 563 Pre-enti$n $ 3ruelt# t$ Ani.als A"t *912( These do not set aside any specific an area for tourism, but such areas ha"e to be identified by the state /o"ernments and obtain the required appro"als 8 rela*ations. E/- T-7,24= Policies 563 G723*826*4 ha"e been formulated by the

/o"ernment in consultation with is industry and are being implemented on a "oluntary basis. The en"ironment regulations are mandatory. &ll the players of the tourism industry including consumers ha"e hailed these codes and ha"e shown sensiti"eness to the en"ironment. !ndia, with /1P approaching L 4 trillion has been put by the !nternational $onetary +und as one of the fi"e biggest mar ets of the world. The sense of urgency that the !ndian in"estment climate has de"eloped has translated into ind of economic indicators M figures that ha"e indled interest and brought in results from e"en the most conser"ati"e in"estors. There are tremendous opportunities for Companies participating in the tourism sector of the economy. The 'otel and Tourism related industry has been declared as a high priority industry for foreign in"estment. !t is now eligible for appro"al of direct in"estment up to ?46 of foreign equity. Non#.esident !ndian !n"estment is allowed up to 4EE6. !n recognition of the relationship between suppliers8users of technology and with a "iew to impro"e technology, the go"ernment has allowed automatic appro"al of foreign technology agreements in the tourism industry subject to certain conditions. !n the post liberalization period the department of Tourism has cleared as many as <A5> foreign in"estment proposals, from &ugust JA4 to +ebruary JA?. 1C.7 N-,=4 :-, A70-=502/ A++,-158 -: F-,*2;6 D2,*/0 I61*40=*60 &pplications for automatic appro"al of +oreign Equity !n"estment up to ?46 in the hotel M tourism related industry ha"e to be made in the prescribed form +C 0.%!3. H'otelsH would include restaurants, beach resorts and other tourist comple*es pro"iding accommodation and 8or catering and food facilities to tourists. The term HTourism#related !ndustryH would include among others the following9 4. Tra"el agencies, tour operating agencies and tourist transport operation

agencies. <. =. 1C.F 4. Dnits pro"iding facilities for cultural, ad"enture and wildlife e*perience to tourists. -urface, air and water transport facilities for touristsN I6/*6021*4 :-, 261*40=*60 =6 interest subsidy to hotel projects in 4 to = star categories on loans sanctioned by appro"ed financial institutions pro"ided the projects are outside the metro cities of 1elhi, $umbai, Gol ata and $adras. <. ?6 interest subsidy to hotels constructed in tra"el circuits and destinations identified for intensi"e de"elopment, as well as for heritage category of hotels. =. Capital subsidy of .s. ? :a hs or 4E6 of the cost, whiche"er is less, for de"elopment of any monument8structure o"er B? years old into a 'eritage 'otel. >. 'otels, tra"el agents, tour operators, and other organizations connected with tourist trade are now co"ered under :iberalized E*change .ate $anagement -ystem. &uthorized dealers are now allowed to release foreign e*change without the prior appro"al of 1epartment of Tourism. ?. +acility to open and operate E*change Earners +oreign Currency &ccount e*tended to hotel M tourism related industry. <?6 of inward remittances in foreign e*change can be credited to this account and utilized for specified purposes. 5. Customs duty on specified items has been reduced for project imports, pro"ided the goods imported are required for initial setting up of the hotel or for substantial e*pansion of the hotel. B. C. Concessional rate of duty for import of equipment for &d"enture sports. Priority consideration for appro"ed projects in allotment of construction materials li e cement, steel etc and for telephone, tele*, and :P/

connections. P,-+-4*3 26/*6021*4 26 0)* -::26; 4. & capital subsidy of .s. <? :a h or <?6 of the total project cost, whiche"er is lower, for special projects li e heritage hotels and certain locations li e mega projects. <. =. E*emption of e*penditure ta* to heritage hotels. E*tending income ta* deduction on <?6 of profits to hotels constructed beyond =4st $arch 4AA? M ma ing this deduction applicable to restaurants, air ta*i operators and other tourism related industries. >. ?. 5. .emo"ing distinction between plant M machinery and furniture M fi*ture for deprecation allowance. !nterest subsidy up to 4E6 for capital#intensi"e projects with long gestation li e hotels M restaurants, airport de"elopment and air ser"ices. 4?6 interest subsidy for de"elopment of water transportation in mega project areas. B. C. E*port house status and benefits to tourism establishments earning foreign e*change. 1uty free import of tourist transport "ehicles, specified ad"enture sports equipment by tra"el agents and tour operators and of specified equipment for tourism related amusement par s, health M science tourism. A. .emo"al of hotels from ta* deduction at source by companies paying rent of .s. 4<EEEE. 1C.D I61*40=*60 124-L-124 ;-10. +-82/< !n"estment opportunities are "aried, from leisure acti"ities li e water sports centers, amusement par s, and health farms to hotels, beach resorts and air lin s, train circuits and ropeways.

The state go"ernment has declared its policy of promoting tourism, and particularly of encouraging pri"ate in"estment in this sector. The main points of this policy are9 4. <. =. (elcoming of pri"ate in"estment in creating tourist facilities as well as related infrastructure. Encouraging the transfer of technology in tourism related industry. +le*ibility in policy on joint "entures participation, and terms for %uild, )perate and )wn or Transfer models. 15. I=+5/0 -: &73;*0 -6 0-7,24= Tourism has been gi"en rightful place :. Grishna Gumar, ,ice President# +inance, !ndian 'otels Company saysN ; The /o"ernment has followed up its promise in the budget speech last year by gi"ing tourism its rightful place along with other industries. The budget will ha"e an e*tremely fa"orable impact on the hotel industry, said :. Grishna Gumar, ,ice President +inance, !ndian 'otels Company. 'e further added that, H-pecific proposals, which will benefit the industry include. H '20)3,5@58 -: E?+*63207,* T5?. This will ha"e the effect of impro"ing the demand and net realization for the hotel industry. !t is a major step ta en by the /o"ernment in rationalizing ta*es on the tourism sector. H R*37/02-6 26 /740-=4 D70< 0- 5% and abolition of counter"ailing duty for hotel projects This will help to reduce project costs and impro"e returns from projects. H H E?0*642-6 -: ,*82*: 7K4 1 Q!3JQ;J 0- 8*63*,4 :-, )-0*8 +,-.*/04 S26/* 8*63*,4 @288 ;*0 05? *?*=+02-6 -6 26/-=* :,-= 8*6326; 0- )-0*8 +,-.*/04, 0)24 @288 )51* 0)* *::*/0 -: 8-@*,26; A-,,-@26; /-404 :-, )-0*8 /-=+562*4.

E?0*642-6 -: *82;2A2820< 0- 4*0 -:: +540 8-44*4 in the case of amalgamation of hotel companies u8s B<& of !T &ct9 This benefit, @)2/) )54 been a"ailable to other industries, has now been *?0*63*3 to hotel projects. The amendment will help hotel companies to restructure their operations and impro"e "iability. The budget speech also referred to e*emption from -er"ice Ta* in the case of hotel operations. (hile the e*act nature of this proposal is not clear, e*emption from -er"ice Ta* presently applicable could also benefit the hotel industry. The Dnion budget has set the right tone for meeting many of the demands of the tourism industry. This has to be supplemented with other policy initiati"es such as streamlining entry procedures for tourists and upgrading airport and other tra"el related infrastructure. The budget includes proposals for upgrading major airport and pri"atization of certain other airports. This should be followed up with a liberal open s ies policy.

15.1 I=+5/0 -: &73;*0 -6 H-0*84 The +inance $inister has gi"en an impetus to the tourism and the hotel sector. !n order to pro"ide further fiscal relief to the tourism sector the following measures ha"e been adopted9# H E?+*63207,* 05? -6 )-0*84 will, henceforth, apply only to room charges, and will be payable only where such charges are .s. =,EEE or more per day, as against the e*isting threshold of .s. <EEE per day. H T)* 3*37/02-6 515285A8* 763*, 4*/02-6 F HHD -: 0)* 26/-=*-05? A/0 !n respect of foreign e*change earnings of hotels or tour operators will be enhanced to bring it in line with the deduction a"ailable to e*porters under section CE ''C. H A 3*37/02-6 -: 5 R -: 0)* +,-:204 *5,6*3 by units setting up and

operating large con"ention canters will be allowed for ? years under section CE# !%. ; %y the recent spate of e"ents. !n 1ecember <EE4, ser"ice ta* on the ser"ices pro"ided by hotels had been e*empted. This e*emption e*pires on =4st $arch <EE<, which has been *?0*63*3 :-, -6* =-,* <*5, 7+0- 3140 M5,/) ! 3.

15.! I=+5/0 -: &73;*0 -6 A2,826*4 Propelling the tourism industry will harmonize with the e*pansion in the hotel industry. The industry found good mention in the budget .with the following proposals9 The plan outlay for tourism has been increased by ?E per cent to .s. <<? crores for <EE<#<EE=. Pri"ate sector management and in"estment inn the de"elopment of airport infrastructure through long term leases ha"e been emphasized. Dp gradation of the > metropolitan airports to international standards has already been announced. $odalities for in"iting offers ha"e been finalized and the lease process is e*pected to be completed in <EE<#<EE=. Pri"ate sector participation in /reenfield airports will be encouraged through a pac age of concessions9 ; ; &"ailability of land and related infrastructure from the -tate /o"ernments. E*emption from le"y of !nland &ir Tra"el Ta 0!&TT3 and +oreign Tra"el Ta* 0+!T3 on departing passengers for projects located in -tates that charge sales that charge sales ta* on &"iation Turbine +uel 0&T+3 at Central -ales Ta* 0C-T3 rate. ; Charging of &d"ance 1e"elopment +ee 0&1+3 by way of additional Passenger -er"ice +ee 0P-+3 at the e*isting airports for help in financing of the /reenfield airport. ; :e"y of Dser 1e"elopment +ee 0D1+3 at the new airport.

; ;

+inancial assistance8equity participation by &irports &uthority of !ndia. !n order to encourage de"elopment of world class infrastructure facilities, the customs duty on specified equipment for ports and airports has been reduced to 4E6 the proposed new airports in %angalore and 'yderabad will benefit from these concessions. !n pursuit of the go"ernmentJs disin"estment plan, disin"estment in the 'otel Corporation of !ndian 0'C!3 and !nternational Tourism 1e"elopment Corporation 0!T1C3 is e*pected this year. !n order to promote air tra"el, in addition to the e*emption of inland air

tra"el ta* within the North East -tates, the e*emption has also been e*tended on air tra"el to and from North East -tates. 15.3 I=+5/0 -: R528@5< A73;*0 -6 0-7,24= 263740,<. The .ailways has also done its bit to promote tourism in the country. !n the +K <EE4 %udget the $inister for .ailways made the following announcements. ; ; !ndian .ailway Catering M Tourism Corporation :imited incorporated and e*pected to become functional by lsl &pril, <EEE. !nspection carriages, popularly called JsaloonsJ to be increasingly used for commercial purpose and tourismN wide publicity to be gi"en to a"ailability of such saloons to public on payment basis. ; New JPlace on (heelsJ type of train as joint effort between .ailways and /o"ernment of $aharashtra to be introduced on route from $umbai # .atnagiri # -indhudurg # /oa #Golhapur # Pune # &janta Ellora # Nasi to $umbai. T-7,24= 263740,< 4**94 32,*/0 - 05? 4-+4 26 A73;*0 The tourism industry is loo ing forward at direct ta* incenti"es from the for the coming budget. The recommendations made by the industry include

consideration of foreign e*change earned through tourism to be treated as deemed e*port, introduction of in"estment allowance for the tourism sector and creation of foreign currency fluctuation reser"e. The tra"el and tourism industry has also requested the e*emption of the ? percent ser"ice ta* for at least fi"e years and to cap the aggregate indirect ta* impact at 4? percent @ehangir N. Gatgara, president of The Tra"el &gents &ssociation of !ndia -aid, HThe tourism industry has faced a rough weather in the recent past. (hile a reco"ery is underway, it would ta e some time to wipe out the losses. &t this juncture, we are loo ing forward to a rationalization of ta*es and additional ta* incenti"es to the tourism sector the go"ernment to ma e !ndian tourism globally competiti"e. &t a time when foreign countries li e $alaysia, Thailand and the D&E are ma ing money hand o"er fist by promoting tourism, !ndia, with far superior inherent ad"antages should not let go the opportunity,H Gatgara added. &ccording to a study conducted by the %ombay Chamber of Commerce and !ndustry, the share of tourism in !ndiaJs /1P is ?.5 percent while the would a"erage is 44.5 percent. The study also highlighted that in"estment in the tourism industry generate larger number of jobs compared with other industries. +or instance, while an in"estment of .s. 4E :a h in tourism sector creates CA jobs, a similar in"estment >? jobs and 4= jobs respecti"ely in agricultural and manufacturing sector respecti"ely. 1E. C)588*6;*4 F5/*3 A< 0)* T-7,24= I63740,< T)* C)588*6;*4 :5/*3 A< 0)* 0-7,24= 263740,< 5,* : 1E.1 H7,38*4 0;,-@0) 4uch being the potential for growth of tra"el M tourism in !ndia, one should naturally e*amine the measures necessary to realize this potential fully. To do that, we must begin by loo ing at the inadequacies in the present

arrangements, which hamper growth. These inadequacies are many and can be broadly listed as follows9 a3 b3 c3 d3 e3 f3 g3 :ac of adequate infrastructure in the form of air ser"ices and airports, roads, telecom and accommodation. :e"y of ta* on tourism and tourists that are not only high but also unconscionable. Plethora of clearances to be obtained from numerous agencies of the Central and -tate /o"ernments. 1ifficulties in obtaining land for hotel projects. .estrictions on mo"ement of tourists and tourist "ehicles. :ac of adequate security to foreign tourists to go around without fear of bodily harm of loss of belongings. !nadequate human resource de"elopment leading to the "isitor being treated more as an intruder than as an honoured guest.

1E.! I6:,540,7/07,* &3 A2, 4*,12/*4 &ir ser"ices and airports are still at a primiti"e state in !ndia. 'ardly a day passes without the newspapers carrying angry letters to the editors from irate foreign tourists complaining of cancellation of flights or the lac of facilities at the airports. 0There are less than half a dozen international airports in this "ast country. The tourist is compelled to ta e to connecting flights to his chosen destination from these airports. This result J in needless waste of time which is so precious and causes incon"enience to the foreign tourists, who often tra"el in groups. The loss of personal effects is an e"er#present ris during internal flights. The first and foremost suggestion to e made in this conte*t would be that

0a number of airports would need to be e*panded and modernized to international standards and ser"e as models for the others. $any others, for e*ample, %angalore, Calicut, Cochin, /oa, 'yderabad and @aipur (ould need to be con"erted into international airports. &irports at important tourist up gradation to handle bigger aircraft and more passenger traffic than now. The architecture and designing of airports and related facilities is a highly specialized job. (e do not ha"e such specialist architects and designing firms or consultants in this country. !t would be ad"isable to enlist the ser"ices of e*perienced foreign consultants and firms to design our major airports. 0+or facilitating reliable short#haul ser"ices, a number of airstrips would need to be maintained better. !t is estimated that there are 4=A such airstrips under the control of -tate /o"ernments and 4<4 with the Central /o"ernment. &ccording to the 1epartment of Tourism, /o"ernment of !ndia, international air seat capacity to !ndia would need to be doubled to enable ? million tourists "isit !ndia. This calls for permission for chartered flights to carry passengers to non# designated airports, Hadoption of a liberal policy in allowing capacity e*pansion by international airlinesH, capacity additions to local airlines, etc. &J R-53 N*0@-,9 !t is estimated that CE6 of the foreign and domestic tourists ma e use of the road transport system for "isiting different destinations. 'owe"er, the condition of !ndian roads and of the !ndian road transport system is deplorable by any standards. The absence of goods roads and a modicum of comfort for the tra"eler ma es road journey an ordeal. -ince pri"ate enterprise has been allowed to enter the infrastructure sector, particularly highways, the de"elopment of highways, camping sites and motels leading to important tourist destinations may be gi"en high priority. This would also need fiscal and financial incenti"es in the form of abolition of customs duties on import on of tourist "ehicles, pro"ision of

Concessional interest, etc. CJ H-0*8 A//-==-3502-6 The total a"ailability of hotel rooms in !ndia is ?C,EEE. This is less than the number of rooms in the city of %ang o alone. China has o"er =.A million rooms and !ndonesia has o"er 4.? million. !t has been estimated that hotel accommodation would bid to be at least doubled in the "ery immediate future to cater to the projected tourist arri"als into the country. -ince most of the foreign tourist and local tourists are not affluent, it would be necessary to create reasonably priced middle range accommodation li e tourist comple*es, youth hostels and motels. This, incidentally, points to the need to harness the resources of the pri"ate sector in a big way. DJ T*8*/-==762/502-64 & particular irritant affecting any "isitor to the country is the lac of reliable telecommunication facilities.3 (ith the entire world emerging as a single mar et place, where production centers and distribution networ s are spread o"er continents, immediate contact with business associates, relati"es and friends, and tra"el agents becomes an imperati"e needs for any foreign tra"eler. The group wor ing on the !.T. sector, it is hoped, will loo into this aspect. E. T5?*4 !n a note circulated by the +ederation of 'otel and .estaurant &ssociations of !ndia at the meeting of state Tourism $inisters in New 1elhi in &ugust, 4AAC, it was stated that the biggest factor depressing the Tra"el M Tourism industry in !ndia is the charging of higher ta*esL3!t has been seen in many countries that lower ta*es induce higher tourism arri"als and longer stayH, -ince tra"el M Tourism is of the nature of an e*ports and that too of a negligible

import content. The imposition of E*penditure Ta* by the Centre and :u*ury Ta*es on hotel rooms by the state go"ernments inflate the accommodation bill of the foreign tra"eler. The net result would be di"ersion of traffic away from !ndia to other destinations. !t is also seen that may states base their :u*ury Ta* on a Jrac rateJ compounding the burden on the foreign tourist. F. L563 (here the number of hotels rooms has to be stepped up steeply in the few years. !t is essential that land for building hotels must become a"ailable with ease. &t the -tate Tourism $inisters Conference held in &ugust 4AAC, the industry represented that Hland for hotels and Tra"el M Tourism#related projects should not be auctioned. :and for hotel use should be reser"ed and made a"ailable to the promoters on long term graded lease.H &long with this , the floor area ratio norms for hotels should also be increased.

;.

I63740,< 405074 The conferral of industry status on Tra"el MTourism would entitle Tra"el

M Tourism to secure se"eral ad"antages, notably in project funding, e*emption from local ta*es for the first few years, Concessional power tariffs, etc. Though the central /o"ernment has recognized Tra"el M Tourism as an industry, many state go"ernments ha"e still to accord this facility to hoteling and tourism. 3. &3 T-7,240 :5/2820502-6 N S*/7,20< I==2;,502-6 563 12454 The wor ing /roup on Tourism for the !W +i"e Kear Plant @une 4AA5 recommended that Hthe facilitation ser"ices a"ailable for "isiting !ndia are often the subject of criticism by se"eral tourists. This co"ers the entire spectrum of

tourist facility in !ndia.H 0,isitors ha"e often complained of the ponderous ways of immigration staff at airport. )btaining of "isas from an !ndian Embassy abroad which should normally ta e less than <> hours is more in the realms of theory than practice. :uggage handling systems at the airport as well as the lac of police "igilance outside are also a cause for general complaint. The unhelpful attitude of police personnel at the airports, the pestering of foreign tourists by touts and shady hotel eepers, the ric ety ta*is and the and the wily ta*i dri"er create a poor first image of the country in the foreignerJs mind.X 17. I=+5/0 -: '5, -6 0-7,24= & D.-. war in !raq hit hard tourist traffic to !ndia and also reduce leisure tra"el within the country industry e*perts warn. Tour operators who had begun to reco"er from the import of A844 worry that a conflict in the /ulf would set the cloc bac once again in a country trying to replicate the <EE4 performance when <.? million tourist "isited !ndia. Tourism and war, said one man, just donJt mi*. 'otel owners share the fears. The !ndian tourism industry is an*ious about the war clouds, particularly after D.-. President /eorge %ush ordered his !raqi counterpart -addam 'ussein to quit his country or face war. The war could also derail domestic and outbound tra"el. Dncertainty in the $iddle East is bound to effect long #haul tra"el for at least two to three wee s, he saidH &s was witnessed after A844, holiday ma ers would try to stay closer home. %usiness tra"el will also be affected. )ptional tra"el will be reduced. %ut if the war is short, we can e*pect tourist inflows as the perception will return that the region is secure,H said $adho , who is also chairman of the !ndo# &merican Chamber of Commerce. &s compared to the boom of <EE4 when some <.? million tourists "isited !ndia, industry "eterans say the country has a long way to go despite the encouraging growth of o"er 45 percent in tourist traffic in recent months

compared to the corresponding period last year. (ith the possibility of a war pushing up the cost of a"iation turbine fuel, (ahi moaned that airlines might cut down un"iable flights, !n case the price of a"iation turbine fuel goes up further in addition to drop in traffic, there are bound to be cut in flights. The timing of the war will not hurt !ndian Tourism immediately. The season is ending, the slac summer months are approaching and if the war doesnJt drag on, officials hope the Hpent#upH demand for the leisure tourism will find a release. )"erall, the figures were so far encouraging, !n +ebruary <EE=, for instance, <.B< la h tourist came in, up from <.5< la h in +ebruary <EE4 and from <.>4 la h in +ebuary <EE< between )ctober and +ebruary, the figures indicates a 45.C percent increase in number. !n foreign e*change earnings, the first two months of <EE= yielded .s. =EEE crore, up from figures for <EE4 and <EE<. -o officials can only hope for first e"er media campaign running @anuary to march on channels li e 1isco"ery, CNN, %%C will not be money down the drain. E"en as tour operators in /ujarat await special instructions from airlines, inquiries about refund on cancellation of tic ets, rerouting of flights and other fle*ible options ha"e been pouring in since D- went on the offensi"e against !raq. They all agree that the war has had its casualty already# boo ings are not corning their way due to safety concerns and e*tra cost one may ha"e to bear on rerouting of flights. -ays general manager of Prominent Tours and Tra"els Thomas )men, H(e mostly cater to corporate clients and this month, the &merican and %ritish companies ha"e instructed their employees against flying. Clients are shying away from "isiting e"en safer destinations li e China, @apan and Europe. Though boo ings for &pril remain untouched, there ha"e been eight to ten

parties canceling their foreign trips this month.H H& group of doctors who were planning a $alaysian tour ha"e bac ed out and three families which had world tour plans ha"e dropped the idea. &nd some ha"e stopped pursuing the tra"el plans e"en after paying deposit, a clear indication that people are not too sure of their plans now,H says @ayendrasinh @hala of Transline Tours and Tra"els, who adds that the sil"er lining howe"er, is the possible boom in domestic tours. H+rom the time President %ush issued an ultimatum to !raq, the boo ing for foreign tra"el has dropped. People are apprehensi"e and ha"e opted out of tra"el plans. (e too are preparing for last minute changes li e re#routing by airlines,H says manager of -achinam Tra"els Chandresh )za, adding that the war has put a question mar on the fate of tour operators as itJs a big JnoJ to leisure trips. .eiterating the claim that people are tra"eling only where it is ine"itable, partner of $ar and $ar tours and tra"els, 'anna $ar says, H:oo s li e leisure trips will be put on hold for some time now. +irst, the safety concerns and then the e*tra cost due to re# routing of flights. The most outbound traffic this season comprises business tra"elers and those "isiting their relati"es and family in the D- li e e"ery year.H 'owe"er, a few tra"el agents confide that people, who ha"e already made their tra"el plans are now trying to a"oid flying o"er or halting in the /ulf region and many are see ing JsaferJ airlines. -ays a sales representati"e with the /ulf &irlines, H-o far, we ha"enJt faced any rush for cancellations, though we ha"e been recei"ing inquiries from people who are worried about security concerns.H $ahendra ,a haria, director of Pathfinders tra"el agency, says, Hthey are hoping that the war is short#li"ed. Those wishing to holiday abroad are apprehensi"e and ha"e called us up enquiring about a possible fare hi e or if their flight# route ta es them o"er the war#zone.H

1F.

R*/-==*63502-64 To boost tourism the go"ernment should stri"e towards achie"ement of

the following targets # ; The plan outlay for tourism has been abysmally low o"er the years. The share of outlay for tourism must be increased substantially. )nce a sizeable amount of money is made a"ailable to this sector, only then correct allocation of funds can be made to set up the proper infrastructure necessary for facilitating tourism. )nce a proper infrastructure is in place, tourism is bound to flourish. ; +or the ne*t ? years, /o"ernment should ha"e an intensi"e focus on tourism pro"iding incenti"es and remo"ing all disincenti"es in consultation with the industry. /o"ernment should acti"ely support capital formation in the form of domestic and foreign in"estment and encourage participation of the organized sector. ; !n terms of support, go"ernment should pro"ide facilities in terms of pro"iding quic clearances 0to potential in"estors for "arious projects. ; ; :and should be made a"ailable to projects at reasonable rates. !n order to ma e business "entures "iable, the go"ernment must urgently rationalize the ta*#structure. There e*ists a plethora of ta*es and sometimes duplication of ta*es at both central and state le"els. There need to be adequate lin ages between Centre and the -tates on the ta* front. Centre and -tate /o"ernments must announce "arious ta*#concessions and incenti"es to enable new tourism project. !n order to enable ta*# rationalization, Tourism may be placed in the Concurrent :ist. The New Tourism Policy has already initiated action on this front. ; !ndia being a long#haul destination, ci"il a"iation must play a "ery crucial

role and thus the Ci"il &"iation Policy 0which has beenPon an"il for quite a few months now3 with respect to its bilateral, airport de"elopment, airlines etc. must be in tune with the national Tourism Policy. The scrapping of the proposal on "isa#on#arri"al for security reasons is understandable. 'owe"er, this practice may be restricted for select nations which pose security threat. ; TourismJs benefits are yet to sin in amongst the masses. Thus massi"e awareness campaign should be initiated to educate how tourism can be powerful engine for economic growth. !n a country which has belie"ed in H&tithi debo#"aboH 0/uest is li e a /od3, tourism must in"ol"e the communities and local people and it as to be transformed in to a HPeopleJs $o"ementH. ; !ndiaJs heritage and culture, natural or man#made, should be le"eraged as her unique selling proposition 0D-P3. +or heritage in the man#made category, /o"ernment needs to acti"ely promote pri"ate participation inn terms of adoption of monuments, heritage building etc. by pro"iding adequate incenti"es to the pri"ate sector. ; Cleanliness and hygiene at tourist spots figured as one of the major negati"es in a sur"ey conducted by C!4 M & T Gearney on the e*perience of foreign tourists in !ndia. Thus it is imperati"e to maintain cleanliness at least in and around all the major tourist attractions. 'uman .esource 1e"elopment 0'.13 is a "ery crucial aspect for an industry that is largely ser"ice#oriented. & focused approach on manpower training is an absolute must. Educational courses at primary le"el should include tourism. & National ,olunteer Corps for Tourism may be modeled in the lines of NCC and some Hlearn#and#earnH programmes is started for students and youth during their "acations. & fund is set up for special training for heritage management. Central /o"ernment should acti"ely support -tate /o"ernments to build

their own Hbrand imageH and mar et that at both domestic and international le"els as some states ha"e already started doing. )f late there has been some degree of sensitization amongst the English dailies on the benefits of tourism and they ha"e started bringing our tourism supplements. The ,ernacular Press needs to be brought into the fold so that the message can be con"eyed to the masses. There is a need for better co#ordination at = le"els # ! ii iii %etween Central /o"ernment and -tate /o"ernments &mongst Central /o"ernment $inistries and other Concerned )rganizations and 1epartments %etween /o"ernment and !ndustry To tide o"er the current crisis, the go"ernment can ta e some immediate steps to gi"e a fillip to domestic tourism #P ; & focused media campaign must be launched projecting !ndia as a Hsafe destinationH. )n the international front special focus to be on the main source mar ets for !ndia ; ; ; :u*ury Ta* be imposed on realized room rate and not on rac rate in all -tates. /o"ernment should acti"ely consider eeping :ea"e Tra"el &llowance 0:T&3 outside the ta*#net /o"ernment should ensure that land a"ailability for tourism projects be made easer and the procedure for obtaining clearances be simplified to attract more in"estment to this sector. +or each tourist spot, a 1estination $anagement &uthority be created comprising empowered local bodies so as to in"ol"e local communities to ensure cleanliness and hygiene. 1estinations need to be classified in terms of the mi* of tourist traffic that they attract, the ind of facilities they should ha"e and the id of safety and security arrangement that they deser"e a happy tourist is the best ambassador of destination. Proper certified short duration training

modules 0of "arious grades3 on courtesy, manners, language etc. be started for people li e guides money changers, ta*i dri"ers, baggage handlers etc. who form the primary interface with the tourists. The students of !nstitute of 'otel $anagement can be used for conducting these training modules. People undergoing these courses should be issued a Pass %oo would ac nowledge the "arious grades of training modules they ha"e completed tourist guide is probably the most crucial interface for any tourist. %ut present licensing policy is completely non#transparent. Tourism industry must be associated with the selection and recruitment of tourist guides and their licensing. Tourism be made a mandatory subject at school le"els to foster a better sense of belonging and instill a sense of pride for motherland amongst the future generation. !ndian politicians, on their foreign trips, should act as Tourism &mbassadors and project !ndiaJs image as a safe and beautiful destination with loads of attractions on offer. Tourists while tra"elling through "arious states face unlimited difficulties because of the "arious ta*es that need to be paid to -tate /o"ernments. Ta*es on inter#state tra"el of tourist "ehicles be abolished &bolish !nland &ir Tra"el Ta* 0!&TT3 to ma e domestic flights cheaper. 1D. G7.5,50 T-7,24= 'ospitality, the foundation on which the structure of tourism is built, is indigenous to /ujarat. /ujarat sends largest number of tra"elers to almost e"ery corner of the world. %ut its strength to be host has not been fully utilized due to the lac of information highway. /ujarat offers colorful e*perience to its tra"elers pac ed with pleasant surprises # endowed with forests and deserts, hills and plains, sea and la es, tribal hinterlands and special interest destinations with a strong rail, road and air networ . /ujarat # be the only lion sanctuary of &sia, the only temple clad summit of -hatrunjaya and the only site of the !ndus "alley 1D.1 I60,-37/02-6

ci"ilization with an elaborate networ

of hotels, restaurants, entertainment

par s, water resorts, ala bhandars M many more, has an inherent strength to pull the tourism all o"er the world under the umbrella of web based ser"ices. /ujarat has made economic strides on the strength of pri"ate enterprise, pragmatic public policies and efficient administration. (hile industrial growth is particularly intense in &hmedabad # ,api corridor, the de"elopment is not s ewed. 1D.! I6:,540,7/07,*4 P-4202-6. 4 . < . = . P National 'ighway P -tate 'ighway P $ain district roads P )ther district roads P ,illage roads .ailway Trac 0 m3 4?BE 4A5EA <E<5C 4E==B 4C4B? ?<<B !nstalled Electricity /eneration Capacity 0$(3 Electricity /eneration 0Crore G(' 2 4AA=#A>3 .oads 0 m3 ?EB5 <>4<

> .

4A.= Transport Connection. 4 . < . = . > . .ailway +acilities +unctional &irport Non#+unctional &irport &irlines operating in /ujarat E*tensi"e Networ 44 4> !ndian &irlines @et &irways

-ahara ? . 5 . No. of flights landing in /ujarat )"er !nternational flights from &hmedabad /ujarat &irways 4EE :ondon New Kor $uscat )ther 1estinations 1D.C M5,9*026;. !n tourism mar eting a destination is being mar eted. )nce a destination is shall to a customer or customer group, e"eryone who is pro"iding the ser"ice in relation to tourism gets benefited. & destination can ha"e a large "ariation of products or benefits to offer and a unique combination of features that cannot be duplicated elsewhere. The question that arises is how is one to attract tourists to /ujarat 2 an industrial hub of !ndia 2 had nothing as glamorous as the Taj $ahal or the bac waters of Gerala or the beautiful landscapes of Gashmir to tal about. This was the tas faced by T/C: in 4AB? i.e. how to de"elop and promote tourism in the state and maintain and strengthen the e*isting tourist infrastructure. 1D.5 M5.-, D*1*8-+=*604 The foreign tourists are slightly bored with .ajasthan. /ujarat in terms of culture and craft is rich and "aried and offers a unique combination of desert and sea. The pri"ate enterprise is adding to /ujaratJs attractions. +or e*ample, the high teach mega religious comple* of -waminarayan 0& shardham3 set up in 4AAEs is a tourist destination in itself. The area around &hmedabad and /andhinagar is emerging in to a major recreation region of western !ndia with & shardham, waterpar s, amusement par s, multiple* cinemas, clubs and resorts. %ig hotel chains li e the Taj, )beroi, 'oliday !nn, !TC hotels now ha"e

a presence in /ujarat. The ci"il a"iation scene is also e*periencing a boom. )"er 4EE flights land at 44 /ujarat airports e"eryday. & separate Tourism 1epartment was established in 4AB= to identify and de"elop the tourism potential in the -tate This was followed by the creation of Tourism Corporation of /ujarat :imited in 4ABC, which was entrusted with the tas of underta ing and de"eloping tourism related commercial acti"ities. The Corporation is presently engaged in a "ariety of acti"ities such as creation of loading and boarding facilities for the tourists and other aspects of tourist facilitation such as transportation, pac aged tours, wayside catering along the National and state 'ighways, arranging cultural festi"als, organizing e*hibitions and producing and distributing maps, posters, brochures and pamphlets. The Corporation has set up accommodation facilities at Chorwad, &hmedpur $and"i, Porbandar, ,era"al, 'ajira, Dbharat and Tithal. -imilar facilities at pilgrimage centres li e Palitana, -omnath, 1war ja, Pa"agadh and 1a or ha"e also been set up by the Corporation. )ne of the recent tourist attractions introduced by the Corporation in collaboration with the !ndian .ailways is a special tourist train. The .oyal )rient Train that connects up "arious tourist destinations straddling the /ujarat and .ajasthan -tate. 'owe"er, the Corporation has suffered losses due to a number of organizational constraints. !n order to minimize these losses and also to pro"ide better ser"ices to the tourists, the /o"ernment has underta en pri"atization of some of the commercial property unities of the Corporation. !n spite of possessing a "ariety of tourist attractions such as wildlife, scenic beauty, pilgrimage centres, e*otic traditional crafts and festi"als, beaches, hospitality of the region and a "aried healthy and tasteful cuisine, the -tate has not been able to accelerate the pace of tourism in comparison to other state. !n 4AA4, the -tate did declare a tourism policy but it did not elicit adequate response from the pri"ate sector since the policy contained only a handful of benefits while the implementation was tardy due to legal and

administrati"e constraints. This was at a time when the /o"ernment of !ndia had already declared tourism as an industry and a large number of states had followed suit. This enabled the tourism industry to a"ail of incenti"es, reliefs, and benefits a"ailable to the industry in those states. (hile other state /o"ernments made successful offorts in de"eloping tourism within their states, the relati"e inability of the /ujarat -tate to harness and de"elop its full tourist potential may be attributed to a combination of factors such as lac of effecti"e policies, inadequate infrastructure, ineffecti"e mar eting and lac of decent facilities for the tourists. 1D.E OA.*/021*4 The main objecti"e of the /ujarat -tate Tourism is to intensi"e 1e"elopment of tourism in the -tate and thereby increase employment opportunities. The following related objecti"es are do"etailed with main objecti"es. P P P P !dentify and de"elop tourist destinations and related acti"ities. 1i"ersification of tourism products in order to attract more tourist Through a "aried consumer choice. Comprehensi"e de"elopment of pilgrimage centre as tourist 1estination. Create adequate facilities for budget tourists.

P P

-trengthen the e*isting infrastructure and de"elopment new ones where necessary. Creation of tourism infrastructure so as to preser"e handicrafts, fol arts and culture of the state and thereby attract more tourist.

4A.B P,-+-4*3 A++,-5/) 563 40,50*;<. The /o"ernment should adopt the following strategy towards the pri"ate

sector with the objecti"e of securing the acti"e in"ol"ement in :eading the de"elopment of tourism in the -tate. ; The tourism should be gi"en the status of industry in order that the facilities and benefits a"ailable to the industry are also made a"ailable to tourism projects. ; ; ; & special incenti"e pac age should be made a"ailable for encouraging new tourism projects as well as e*pansion of e*isting tourism units. !nfrastructure facilities should be strengthened and de"eloped within the -tate, particularly in -pecial Tourism &reas. Effecti"e mechanism should be set up to build meaningful coordination with the Central /o"ernment and the -tate /o"ernment agencies, the local self#go"ernment bodies and the N/)s. ; /o"ernment should encourage building effecti"e lin ages with the economic agents and agencies such as the national and international tour operators and tra"el agents of repute, hotel chains and global institutions connected with tourism such as (T). 1D.F P856626; :-, 0-7,24= 3*1*8-+=*60 & perspecti"e plan for tourism de"elopment will be prepared in consultation with e*perts. &n o"er"iew of possible tourism products is offered below. 4. .eligious 0Pilgrimage3 and &rchaeological Tourism /ujarat has a hold of pilgrimage centers li e some other states. -omnath and 1war a# some of the well# nown and re"ered sites of ancient 'indu temples# are situated in the state. &rchitecturally brilliant and of significant religious importance are some of the temples of the state li e the ones at -hetrunji, /irnar, Taranga,and &mbaji. )ther temples li e those at 1a or Pa"agadh, %ahucharaji, -hamlaji, Narayan -aro"ar, -udamas Porbandar, Gabir"ad, -hu latirth, Gaya"aohan, %hadra ali 0&hmedabad3 and Tan ara0$aharshi 1ayanand -raswatiJs birth place3 are also

important pilgrimage destination, which ha"e ept ali"e the religious sentiments of the people, $illions of pilgrims "isit these places e"ery year. Not only the de"otees from all o"er the country but also by Non#.esident !ndians and tra"elers "isit these places especially from the eastern part of the world. Necessary accommodation +acilities and related ser"ices will bee created on these sites. +or ensuring orderly and planned de"elopment of pilgrimage centers, the state go"ernment has constituted Pa"itra 1ham ,i as %oard chaired by the Chief $inister. The board will implement plans to pro"ide necessary facilities to de"otees and also ensure conser"ation of cultural atmosphere consistent with sentiments of "isiting de"otees. -hamlaji is an ancient site for %uddhists. The e*ca"ated relies from the %uddhist period at the site are now ept in a museum at %aroda. There are a number of places of archaeological importance such as the temples town of Palitana. $odhera withits -un temple, historical .ani i ,a" at Patan with the relief of an ancient capital, the /irnar 'ills with 'indu and @ain temples, @unagadh with a historical fort,1abhoi, Champaner, Pa"agadh, -ha ing $insrets, /andhi &shram, -idi -ayed @ali etc. These can be de"eloped by pro"iding necessary infrastructure facilities and mar eted tourist destinations to attract tourists. !. H*,205;* T-7,24= & large number of old palaces, ha"elis, darbargadhs e*ist in the state.These historical building can be con"erted into hotels, restaurant or museum by pro"iding suitable incenti"es to owners. (ildlife and pilgrimage tourism circuits can be lin ed to heritage properties e*ploiting the geographical congruity. 1e"elopment of this sub#sector will not only attract foreign tourists but also pro"ide encouragement and support to local art and crafts. The go"ernment will ta e necessary steps to promote heritage tourism in the state.

3.

'28382:* T-7,24= There is substantial scopes for de"elopment of tourism based on wildlife

in the state. The /ir forest of /ujarat is the last stronghold of the &siatic :ion. The bear sanctuary at .atan $ahal0Panchmahal district3, %lac %uch -anctuary at ,ela"adar 0%ha"nagar district3,bird sanctuary at Nalsaro"ar 0&hmedabad district3, wild asa sanctuary at Gutch etc.can be effecti"ely de"eloped into tourist destinations by pro"iding infrastructure facilities. !n order to facilitate "isitors to these areas, coordination among agencies will be established. C. C-54058 563 &*5/) T-7,24= /ujarat state has the longest coastline among the maritime board states of the country. !dentified stretches of coastline can be de"eloped into beaches from the tourism point of "iew. !t will be the endea"or of the state to de"elop beach potential by pro"iding facilities as they attract foreign tourist. ,arious tourist destinations easily accessible from the coast will be lin ed through coastal shipping circuits. 5. T-7,24= A54*3 -6 T,53202-658 A,0, C,5:0 563 C7807,58 A/021202*4. %anni in Gutch, Ghambhat, @unagadh etc. are nown for their

craftsmanship .-imilarly, there are hundreds of fairs that are celebrated throughout the year with enthusiasm. The Tarnetar +air in -urendranagar district, Chitra ,ichitra +air at Poshina 0-abara antha district3, Ganwat +air at Chhota Ddepur Panchmahal district3, 1anf 1arbar at 1ang, %ha"nath +air of @unagadh, ,autha +air of &hmedabad etc. ha"e immence tourism "alue.%y de"eloping accommodation, transport and other facilities, these fairs and festi"als will promoted nationally and internationally. The places of importance from the art and craft point of "iew will be included in the tourist circuits and necessary facilities will bee pro"ided to tourists. E. C-,+-,50* T-7,24=

The pri"ate sector will be encouraged to build state#of#the#art Con"ention centers, seminar halls etc. so as to attract corporate e"ents li e seminars, wor shops and annual general meetings. Participants in such e"ents generally ha"e high purchasing power and pro"ide boost to the local economy. 7. A31*607,* T-7,24= This is also a territory with the possibility of de"elopment as a , sub# sector, which will be e*amined and new acti"ities li e camel safari Gutch, horse #riding in the &ra"alli hill ranges, Parachuting in -aputara, tre ing in 1ang, Pa"agadh, Palitana etc. will be promoted. -uch acti"ities will create large# scale Employment opportunities for guides, collies, traders for hire )f tents and equipments etc. and will also encourage paying guest accommodation in such areas Pri"ate entrepreneurs and !nstitutions will be encouraged to de"elop such facilities. F. H2;)@5< T-7,24= There is a good networ of state and national highways, which Criss# cross the state and a large number of tra"elers prefer road journey. %ecause of the large geographical e*panse of the state, these journeys tend to be quite long and boring. There is a need for creating necessary facilities li e hotels, restaurants, picnic spots, water par s etc. along the highways at suitable inter"als for the highway tra"elers to rela*. !n fact, tra"elers can be induced to follow certain traffic routes if such facilities are better de"eloped. 'ighway facilities and wayside amenities are so well de"eloped in some states that this has become the mainstay of tourism. The state shall encourage pri"ate in"estors to create such facilities on the highways. 1D.D H7=56 ,*4-7,/*4 D*1*8-+=*60 'uman .esources 1e"elopment is an important aspect of ser"ice

industries. Tourist depends upon tra"el agents, guides and hence trained manpower is a sine qua non of tourism industry. )n the %asis of a"ailable statistics, training facilities can be safely said to be totally inadequate. !f trained manpower is not a"ailable locally, the objecti"e of local employment will not be achie"ed. Geeping in "iew the approach of mar et#led de"elopment, the state go"ernment will encourage and support the creation of training facilities in the pri"ate sector by pri"ate agencies 8 indi"iduals. 'otel management courses meant for guides, catered and other super"isory and non#super"isory staff of hoteld would be introduced in the !ndustrial Training !nstitutes0!T!s3. &ppro"ed hotel associations and pri"ate entrepreneurs will be encouraged to create new training facilities by ma ing a"ailable land to them for this purpose and by gi"ing other appropriate incenti"es. The go"ernment will consider setting up a 'otel $anagement Training !nstitute at the state le"el preferably in the pri"ate sector. .esident of /ujarat, especially local youths, would be encouraged to facilitated to ta e in such training courses. The !nstitute of 'otel $anagement, Catering M Nutrition that is wor ing under the administration control of the central go"ernment will be utilized to start new training courses so that the residents of /ujarat can get admission and the manpower .equirement of this sector is met. 1D.1 S'OT A658<424-G7.5,50 T-7,24= ; /o"ernment support0 in term of grants3 # both go"ernment of /ujarat as well as go"ernment of !ndia sets aside annual grants for the de"elopment of tourism in the state. ; (ide networ (ea ness ; ; -ignificant internal wea nesses :ow employee morale of -er"ices under its fold#includes hotels, tourist !nformation %ureaus etc.

; ; ; ;

:ac of professionalism in the organization. %apu culture pre"alent !n#effecti"e Promotions &wareness regarding its products, ser"ices as will as its in"estment opportunities in this sector has not been highlighted.

O++-,076202*4 ; ; ; ; ; 1D.11 ; ; ; -cope for in"estment in new "entures @oint "entures with pri"ate parties Cashing in on e*cellent infrastructure facilities Competition from other state tourism corporations Pri"ate parties assuming the role played by TC/: at this juncture. K*< 47//*44 F5/0-,4 !mpro"ed ser"ice quality !ncrease in usage of those ser"ices %oosting employee morale

T),*504

&I&LIOGRAPHY A,02/8*4 4. <. =. >.


4.

%usiness -tandard# @an <C,<EE= !ndian $anagement, 1ec. <EE< Times of !ndia#$arch <4, <EE= Times of !ndia# $arch <>, <EE=
!. 1onald .. Cooper, Pamela -. -chindler9 Business research methods: 05th edition3 4 $c/raw#'ill, Third .eprint <EE4

&--94

<. =. >. ?. 5. B.

1r. 1. 1. -harma, Marketing Research 0-econd Edition 4AAA3 -ultanchand M -. .eprint <EE4. /ujarat !ndustrial M Technical Consultancy )rganisation :td. # Year 2002. -. $. @ha9 er!ices Marketing: 0$illennium Edition.3 'imalaya Publications :td. -unil /upta M -.P. %ansal9 "ourism "owards 2#st $entury, 1eep M 1eep Publican. P"t. :td. -. -. .ao9 Hand%ook &or writers and 'ditors, &hmedabad $anagement -e"enth Edition, 4AAA. Tourism statistics of !ndia9 (an)*e% 200+ &ssociate

'*A420*4 4. <. =. >. ?. 5. B. C. A. 4E. www.cii.com www.ciionline.com www.ecen.org www.e*presstra"elandtourism.com www.gujaratchamber.org8articles#tourismincenti"es.htm www.gidb.org www.indiainfoline.com www.tourismindia.com www.indiantourism.com www.cybrary.com. ANNE(URE 1 H-0*8 S*/0-, P*,:-,=56/* 26 $5675,< !BB3 $a*imum room# nights9 A>5,5BC 0E.E63N &"ailable room # nights9 C54,<>C 0#E.=63 /ross settings9 54=,4<B 0YE.563N paid lettings9 5E=,5E4 0YE.?63 -tandard &).9 B4.<6 0 up E.< percentage points o"er @anuary <EE<3 Nominal &).9 5=.C6 0up E.= percentage points o"er @anuary <EE<3

-tandard &..9 L4<=.E 0#=.=63 Nominal &..9 L 4<>.A 0#=.<63 .e"enue per a"ailable room 0.e"par39 L CB.5 0Y=.E63 &). &.. .e"par T T T &"erage )ccupancy .ate &"erage .oom .ate &). * &..

+igure for the 'otel -ector Performance is updated as at 4?4J4 @anuary <EE=.

ANNE(URE > ! F-,*2;6 E?/)56;* E5,626;4 37,26; ! ! N!


YEAR

! 563 C-,,*4+-6326; F2;7,*4 :-,


IN USS MILLION

1.
IN RS. CORES R CHANGE R CHANGE

<EEE 0@an#1ec3 <EE4 0@an#1ec3 <EE< 0@an#1ec3

4><=C.EE 4>=>>.EE 4=5>=.C4

## E.B # >.AA

=45C.EE =E><.EE <C44.4>P

## # >.E # B.5

PROVISIONAL +oreign Tourist &rri"als in !ndia during <EE< &nd Corresponding +igures

for <EEE M <EE4. FOREIGN TOURIST ARRIVALS PERCENTAGE CHANGE $onth @anuary +ebruary $arch &pril $ay @une @uly &ugust -eptember )ctober No"ember 1ecember T-058 <EEE <?=555 <?B>E= <=>5E5 4CC4=< 4=5?B? 45454= <4<A>A 4C5C>= 4CEEBE <=EABC <AE<E4 =4==>< !ECD37F <EE4 <C=B?E <5<=E5 <>CA5? 4C?==C 4?4EAC 4B5B45 <<>>=< 4A5?4B 45<=<5 4C445E? <EA5C? <?>?>> !537!F! ANNE(URE 3 H*,205;* H-0*84 26 G7.5,50 :a*mi ,ilas 8 $otibagh Palace, ,adodara .ajmahal Palace, .ajpipla Nat"ar Niwa Palace, .ajpipla 0Project Planning3 The Palace Dtelia, :othal 'otel Nilambagh Palace, %ha"nagar .i"erside8 )rchad Palace, /ondal .oyal )asis8 .esidency, (an aner %alaram Palace .esort, Palanpur 1arbargadh Poshina, Poshina <EE< <<C4?E <<B?<AP <<???CP 4??=BCP 4=<ACCP 4>=4EEP 4C5>C<P 454>BBP 4?4B<4P <4<4A4P <>=?55P <C44E<P !35C1!7T <EE48EE 44.A 4.A 5.4 #4.? C.= A.= ?.> ?.< #A.A #<4.> #<B.B #4C.C -C.!

The Palace, $ansa 0Project Planning3 /arden Palace, %alasinore 0Project Planning3 1igbhu"an Palace, :imbdi 0Project Planning3 Gusum ,ilas Palace, Chhota Ddaipur /opnath %unglow, %ha"nagar 0Project Planning3 ,ijay ,ilas Palace 'otel M .esorts, Paltitana 0Project stage3

ANNE(URE C F52,4 N F*4021584 I6 G7.5,50 Tarnetar .a"achi 0 .apar in Gutch3 Chitra ,ichitra 0Poshina3 Ga"ath 0 Chhota # Ddaipur3 1hrung 0Gutch3 ,autha 0 1on ey +air3 Tribal +air 0 -hamlaji3 %ha"nath 0@unagadh3

%hadar"a Poonam 0&mbaji3 @anmashtmi 01war a3 1a or 0 'oli and @anmashtami3 $odhera +esti"al 0TC/:3 Gutch +esti"al 0TC/:3 Gite +esti"al 0TC/:3

ANNE(URE > 5 T-7,240 F8-@ 0- I632123758 D*4026502-64 26 G7.5,50. S,. N-. 4. <. =. >. ?. 5. B. C. A. D*4026502-6 &hmedabad ,adodara -urat Pawagadh M Champaner ,api ,alsad %haruch M &n leshwar Teethanl Dbhrat T-7,240 F8-@ <E,C<,?A4 >,<B,=>B =,AC,=CE >,<4,=>4 4,B5,EA5 4,?=,E>C ?,>4,C<4 =?,?4> C,<BE

4E. 44. 4<. 4=. 4>. 4?. 45. 4B. 4C. 4A. <E. <4. <<. <=. <>. <?.

-aputara %ha"nagar Palitana Patan &mbaji @amnagar .aj ot 1war a Porbandar @unagadh ,era"al8-omnath -asangir 1iu &hmedpur#$and"i $and"i#Gutch %huj /ross Tourist +low of <> 1estinationP -ay 1iscounting for inter#destination o"erlap &llowances for minor destination Z ?6 Net tourist +low to /ujarat E*cludes 1iu from total

<,=5,C=E <,A?,4?< B,A5,C<> 55,=CE 4>,E><=4 <,=?,CE4 4,BE,<=E ?,4?,C>= 4,>?,?5? 4,5A,CC> =,B>,BE= ?C,44< 4,<E,>?E 4>,4?C >=,CAE <,4C,BEE CA,AE,B4? CA.A lacs C.=B lacs >.?5 lacs C5,EA,B4?

E*cludes large flow on account of festi"als to certain religious pla

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