ACKNOWLEDGEMENT
I owe a great many thanks to a great many people who helped and
supported me during making this project. My deepest thanks to Mr.
PROF. KUNAL SRIVASTAVA the Guide of the project for guiding
and correcting various documents of mine with attention and care.
He has taken pain to go through the project and make necessary
correction as and when needed. I also extend my heartfelt thanks
to my family and well wishers.
Contents
What is tourism?..........................................................4
Significance of tourism................................................4
Unique Characteristics of The Tourism Industry...........4
INDUSTRY AND WORKINGS..........................................5
STATISTICS , SURVEYS AND STUDIES...........................6
A S.L.E.P.T. Analysis Of The Tourism Industry In India: 8
S.W.O.T . Analysis :....................................................11
Some Players in Tourism Industry in India..................12
How To Market Tourism (The 7 Ps)..............................18
Development of infrastructure...................................24
International co-operation........................................27
Conclusions................................................................38
Suggestions...............................................................40
Bibliography............................................................42
Annexure- IA..............................................................43
Annexure- IB..............................................................44
What is tourism?
Tourism is travel for recreation, leisure, religious, family or
business purposes, usually for a limited duration. Tourism is
commonly associated with international travel, but may also refer
to travel to another place within the same country. The World
Tourism Organization defines tourists as people "traveling to and
staying in places outside their usual environment for not more than
one consecutive year for leisure, business and other purposes".
Tourism has become a popular global leisure activity. Tourism can
be domestic or international, and international tourism has both
incoming and outgoing implications on a country's balance of
payments. Today, tourism is a major source of income for many
countries, and affects the economy of both the source and host
countries, in some cases being of vital importance.
Significance of tourism
Tourism is an important, even vital, source of income for many
countries. Its importance was recognized in the Manila Declaration
on World Tourism of 1980 as "an activity essential to the life of
nations because of its direct effects on the social, cultural,
educational, and economic sectors of national societies and on
their international relations."
Tourism brings in large amounts of income into a local economy in
the form of payment for goods and services needed by tourists,
accounting for 30% of the world's trade of services, and 6% of
overall exports of goods and services. It also creates opportunities
for employment in the service sector of the economy associated
with tourism.
The service industries which benefit from tourism
include transportation services, such as airlines, cruise ships,
4
Contribution of
Contribution of
Tourism in GDP of Tourism in
the country (%)
Employment Of the
Country (%)
Direc Indir
t
ect
2009 3.68 3.09
-10
2010 3.63 3.05
-11
2011 3.66 3.08
-12
Total
6.68
4.63
6.15
10.78
6.74
4.94
6.55
11.49
10.17
Legal:
The laws that govern the industry are not the same in all the parts
of the country. Many of the laws that are in effect are old and
archaic, and not geared to meet the challenges of the 21st century.
With respect to taxation, the World Travel and Tourism Council has
observed that
Tax paid by tourists in India is the highest in the world. Indian
hotels charge about 40% tax compared to other Asian countries
where it varies between 3% and 6%".
Such high taxation renders the tourism sector as a whole
uncompetitive. Further, there is considerable disparity between
state level taxes, especially on food and beverages. In fact, the
sales tax on imported beverages varies widely, e.g. 63% in
Karnataka to 28.75% in West Bengal.
the world over and India has been no exception. There have been
more people coming into the country with more cash than ever
before. This has lead to an increase in the demand for better
hotels. People who previously used to come to the country on a
shoestring budget and hunt around for the cheapest
accommodation can now afford to go in for luxury hotels. This has
led to an increase in the number of hotels in the country. However,
an increase in spending does not only limit itself to
accommodation. The increase in the spending is also evident in the
increase in the number of people traveling by air. Even the number
domestic tourists traveling by air has dramatically gone up.
Political:
The political factors are the main driving force of the industry. The
Indian tourism industry is built on the backbone of Government
support and the industry cannot sustain itself without it. The
various archaeological sites and the places of historical
importance, the roads and the railways are all in the hands of the
Government. All the support services like the hotel industry, the
airlines industry and the tourist operators to name some are
heavily dependent on the support and the cooperation of the
Government.
The major reason as to why tourists visit India is for the vast and
rich heritage that our country has. That is under the control of the
Government, through the Archaeological Survey of India. Any
12
policy change that comes into force can have dramatic effect on
the way the industry players perform. For example, the
Government charges high rates of taxes on the luxury and the star
category hotels and this has always been a cause of disagreement
between the hotel associations and the Government. There are
many areas where the growth of tourism has not been rapid or has
seen dramatic fall because the political environment has not been
conducive. Examples are the North East for the former and Kashmir
for the latter. The neglect of the Government in developing the
North-East has led to a situation where there is practically no
tourism in the seven states.
Similarly, the political turmoil in the state of Kashmir and now in
Gujarat has caused a virtual decimation of the flourishing tourism
industry. However, there has been a change in many of the policies
of the Government with regard to the tourism industry. The hotel
industry has been getting many incentives and many State
Governments are encouraging the growth of major hotels in their
states. After years of tight control over airport infrastructure,
Government has finally taken the decision to privatize the airports.
Technological:
Although technology does not seem to be a major influence at first
glance, it plays a major part in the promotion of a place. Better
communication facilities are one of the first prerequisites for
growth in the inflow of tourists. This has been made possible with
technology. Improved technology in the field of communication at
cheaper costs has resulted in many remote and inaccessible areas
of the country getting connected to the rest of the world. This
13
STRENGTHS
India's geographical location, a culmination of deserts, forests,
mountains, and beaches.
Diversity of culture i.e. a blend of various civilizations and their
traditions.
A wealth of archeological sites and historical monuments.
Manpower costs in the Indian hotel industry are one of the
lowest in the world. This provides better margins for the
industry.
A very wide variety of hotels is present in the country that can
fulfill the demand of the tourists. There are international
players in the market such as Taj and Oberoi. Thus, the needs
of the international tourists and travelers are seen to while
they are on a visit to India.
14
WEAKNESSES
Lack of adequate infrastructure. The airlines in India, for
example, are inefficient and do not provide basic facilities at
airports. The road condition in India is very bad.
A xenophobic attitude among certain sections of people.
No proper marketing of India's tourism abroad. Foreigners still
think of India as a land of snake charmers. There are many
places where the image of India is one of poverty,
superstition, and diseases. The case of Plague in Surat in 1994
led to a decrease of 36% in arrival of foreign tourists in India.
OPPORTUNITIES
More proactive role from the government of India in terms of
framing policies.
Allowing entry of more multinational companies into the
country giving us a global perspective.
Growth of domestic tourism. The advantage here is that
domestic tourism and international tourism can be segregated
easily owing to the difference in the period of holidays.
THREATS
Economic conditions and political turmoil in other countries
affects tourism.
15
LuniaHavelia-Aadreamainaredasandstone
not be made but the idea was implanted and today Luni Haveli is
beginning to find itself on tourist itineraries.
DeraaDundlodaKila
Sikkim the tiny Himalayan state and one of the smallest of the
Indian union has the potential of becoming a large tourist
attraction. Nestled in the magnificent Himalayas this state is
nature at its most beautiful. In addition, the untouched air of this
state takes one back to the time when man and nature coexisted
harmoniously.The pure air and clean water does wonders for one's
19
Apart from the Govt. players there are pvt, tour operators. We have
taken the case of an online tour operator, Indianvisit.com, its
profile is as follows:
Indianvisit.com is a part of Indian Holiday Pvt. Ltd. (earlier
known as TRAFFORD TOURS & TRAVELS ), a proactive travel
organization in Indian tourism industry for the last 10 years. They
are a professionally managed closely held agency and
management control is vested with the first generation promoter
20
Tours
They have been operating a variety of tours for their Groups and
Individual tourists and have been able to mastermind their tours
with great deal of efficiency. The company specializes in inbound
tours and offers a host of tourism related services to inbound
tourists in the India and neighboring countries like Nepal, Bhutan,
Tibet, and Srilanka. Various tours they offer are as below. Tailormade packages, cultural tours, adventure tours, religious tours,
yoga & meditation tours, Rejuvenation & Ayurveda tours, safaris,
special interest tours, conferences, incentives and much more in
the Indian Subcontinent. Apart from above other various travel
related services they provide are as below:
Hotel Booking:
Individual or group booking in any hotel of any category and in any
part of Indian subcontinent can be provided instantly. Owing to
their very good connections with the hotels in almost every part of
the country, they are always in a position to offer very lucrative
discounted rates to their clients. Enter their hotel query form and
just let them know the name of city and category of hotel and wait
for some time. Their professionals will get back to you in no time
21
with
a
Air Booking:
number
of
suitable
options.
25
International co-operation
36
1997
1998
1999
2000
2.37
2.36
2.48
2.65
3.8
-0.7
5.2
6.7
2001
2002
2003
2.54
2.38
2.73
-4.2
-6.0
14.3
2004
2005
3.46
3.92
26.8
13.3
2006
2007
4.45
5.08
13.5
14.3
2008
2009
2010
2011
5.28
5.17
5.78
6.31
4.0
-2.2
11.8
9.2
2012
6.58
4.3
40
2013
Jan-June, 2014
6.97
5.9
3.54(P)
5.2 @
Percentage(%) Change
2012
2013
2014 (P)
January
681002
720321
719965
2013/2012
5.8
2014/2013
0.0
February
681193
688569
737870
1.1
7.2
March
606456
639530
668896
5.5
4.6
April
447581
450580
504211
0.7
11.9
May
374476
417453
420976
11.5
0.8
June
433390
451223
491833
4.1
9.0
July
485808
506427
4.2
August
445632
486338
9.1
September
411562
453561
10.2
October
556488
598095
7.5
November
701185
733923
4.7
December
752972
821581
9.1
Total
6577745
6967601
3543751
5.9
Sub-Total (Jan-June)
3224098
3367676
3543751
4.5 @
5.2 @
in India
1997
2889
2.0
1998
2948
2.0
1999
3009
2.1
Year
41
2000
3460
15.0
2001
3198
-7.6
2002
3103
-3.0
2003
4463
43.8
2004
6170
38.2
2005
7493
21.4
2006
8634
15.2
2007
10729
24.3
2008
11832
10.3
2009
11136
-5.9
2010
14193
27.5
2011
16564
16.7
17737
7.1
18445
4.0
2012
2
2013#
Jan-June, 2014 #1
9334
-0.8 @
Month
2012
2013#2
2014#1
2013/2012
2014/2013
January
1681
1984
1786
18.0
-10.0
February
March
1729
1559
1906
1755
1805
1662
10.2
12.6
-5.3
-5.3
April
May
1305
1023
1329
1207
1431
1210
1.8
18.0
7.7
0.2
June
July
1158
1512
1227
1442
1440
6.0
-4.6
17.4
August
September
1306
1219
1328
1224
1.7
0.4
October
November
1538
1776
1404
1703
-8.7
-4.1
1931
1936
0.3
17737
8455
18445
9408
December
Total
Sub Total (Jan-June)
4.0
11.3 @
9334
42
-0.8 @
Source Country
1.
USA
2.
Percentage %
Share
1085309
15.58
United Kingdom
809444
11.62
3.
Bangladesh
524923
7.53
4.
Sri Lanka
262345
3.77
5.
Russian Fed.
259120
3.72
6.
Canada
255222
3.66
7.
Germany
252003
3.62
8.
France
248379
3.56
9.
Malaysia
242649
3.48
Japan
220283
3.16
4159677
59.70
Others
2807924
40.30
6967601
100.0
10.
G.Total
Source:- Bureau of Immigration, Govt. of India
43
2000
2001
4.42
4.56
7.3
3.4
2002
2003
4.94
5.35
8.2
8.3
2004
2005
6.21
7.18
16.1
15.6
2006
2007
8.34
9.78
16.1
17.3
2008
2009
10.87
11.07
11.1
1.8
2010
2011
12.99
13.99
17.4
7.7
2012
2013
14.92
16.63
6.7
11.4
in India, 1997-2013
Year
1997
1998
1999
159.88
168.20
190.67
14.1
5.2
13.4
2000
2001
220.11
236.47
15.4
7.4
2002
2003
269.60
309.04
14.0
14.6
2004
2005
366.27
392.01
18.5
7.0
2006
2007
462.32
526.56
17.9
13.9
2008
2009
563.03
668.80
6.9
18.8
2010
2011
747.70
864.53
11.8
15.6
1045.05
1145.28
20.9
9.6
2012 $
2013 (P)
45
1997
1998
1999
5.50
5.54
5.83
9.3
0.7
5.3
2000
2001
2002
2003
5.89
5.44
5.16
6.71
1.1
-7.8
-5.1
30.1
2004
2005
8.36
9.95
24.6
19.0
2006
2007
11.74
13.26
18.0
12.9
2008
2009
2010
2011
14.38
14.37
17.91
19.50
8.5
-0.1
24.6
8.9
2012 $
2013 (P)
18.26
19.95
-6.3
9.2
State/UT
1.
Tamil Nadu
244232487
21.3
2.
Uttar Pradesh
226531091
19.8
3.
Andhra Pradesh
152102150
13.3
4.
Karnataka
98010140
8.6
5.
Maharashtra
82700556
7.2
6.
Madhya Pradesh
63110709
5.5
7.
Rajasthan
30298150
2.6
8.
Gujarat
27412517
2.4
9.
West Bengal
25547300
2.2
10.
Chhattisgarh
22801031
2.0
972746131
84.9
Others
172534312
15.1
1145280443
100.0
Total
Source: State/ UT Tourism Departments.
(P): Provisional.
46
State/UT
Percentage Share %
1.
Maharashtra
4156343
20.8
2.
Tamil Nadu
3990490
20.0
3.
Delhi
2301395
11.5
4.
Uttar Pradesh
2054420
10.3
5.
Rajasthan
1437162
7.2
6.
West Bengal
1245230
6.2
7.
Kerala
858143
4.3
8.
Bihar
765835
3.8
9.
Karnataka
636378
3.2
492322
17937718
2.5
89.9
2013308
10.1
19951026
100.0
10.
Goa
Total
47
Year
International
Tourist Arrivals
(in millions)
World
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
593.0
611.0
633.8
683.3
683.4
703.2
691.0
762.0
803.4
846.0
894.0
917.0
883.0
Percentage (%)
share and rank of
India in World
FTAs in
India
Asia and (in Million)
the
% Share
Pacific
89.0
2.37
0.40
88.3
2.36
0.39
97.6
2.48
0.39
109.3
2.65
0.39
114.5
2.54
0.37
123.4
2.38
0.34
111.9
2.73
0.39
143.4
3.46
0.45
154.6
3.92
0.49
166.0
4.45
0.53
182.0
5.08
0.57
184.1
5.28
0.58
181.1
5.17
0.59
Rank
% Share
Rank
47th
46th
50th
51st
54th
51st
44th
43rd
44th
41st
41st
41st
2.67
2.67
2.54
2.42
2.22
1.93
2.44
2.41
2.53
2.68
2.79
2.87
2.85
11th
12th
12th
11th
11th
11th
11th
11th
11th
11th
48
2010
2011
2012
2013
948.0
995.0
1035.0
1087.0 (P)
204.9
218.5
233.5
248.1(P)
5.78
6.31
6.58
6.97
0.61
0.63
0.64
0.64
42nd
38th
41st
42nd
2.82
2.89
2.82
2.81
11th
9th
11th
11th
P: Provisional, - NA
Source:-(i) UNWTO Tourism Market Trends 2007 Edition, for the years upto
2005. (ii) UNWTO Barometer June 2010 for 2006 and January 2011 for
2007
(iii) UNWTO Tourism Highlights 2011 Edition for 2008 and 2012 Edition for 2009. (iv)
UNWTO Barometer April 2014 for 2010, 2011, 2012 & 2013
Conclusions
The success of an organization depends on its ability to affect
continuous improvement and provide quality products and services
to its customer. This will require every personnel in the
organization to possess the requisite knowledge, skill and attitude.
Proper identification of tourist segments and focused marketing
efforts, with the help of professionals, should be undertaken. Only
overall growth can help in improving revenue generation, which
needs to grow in line with the additional capacity being set up by
the hospitality industry.
Tourism activities depend upon nature and natural heritage, it is essential to ensure
that tourism development is ecologically sustainable ecological process must not be
49
neglected. Similarly tourism offers real experience of unique culture of the country
and the State. Hence the development should ensure that social and cultural
sustainable tourism development compatible with the culture and values of the local
people.
The agenda for action should concentrate around community participation in tourism
development and planning, training of the personnel associated with tourism
development so that they can provide quality services without devaluing the same.
In the framework of action it is necessary to ensure that the benefits to the
community are so spread out that the people perceive the benefits flowing to them.
Similarly, there is need for a legal and procedural frame work that deals adequately
with social evils like exploitation, child use, sex tourism, interference with heritage
products etc.
In conclusion, the path for department of accessible tourism is
tough and one has to negotiate with many culpable challenges and
bottlenecks. Perhaps, some of those are not difficult to deal with or
manage. What would be needed is certain degree of commitment,
earnest efforts and coordination on the part of direct stakeholders.
When it comes to more complex problems involving considerable
financial commitment and coordination, it would be necessary to
institute suitable policy mechanisms and higher level of interdepartment coordination mechanisms.
Suggestions
Proper planning of master plans needs to be prepared with specific objectives
be integrated with Assams overall economic and social development objective.
Proper development of infrastructure, tourist facilities, enhancement of
communication networks etc.
50
51
Bibliography
All the introductory information are taken from the internet site
www.wikipedia.com. Some of data analysis are taken from the
annual report of ministry of tourism 2013-2014.
Annexure- IA
Supervisor's Certificate
This is to certify that Mr.SANKET.A.SHAH a student of B.Com. Honours in Management of THE
52
my supervision and
Place:
Kolkata
SANKET.A.SHAH
Date:
22/1/15
Name:
Designation: STUDENT
THE BHAWANIPUR EDUCATION SOCIETY
COLLEGE
Annexure- IB
Student's Declaration
53
I hereby declare that the Project Work with the title TOURISM
INDUSTRY
Submitted by me for the partial fulfilment of the degree of B.Com.
Honours in Accounting & Finance / Marketing / Taxation / Computer
Applications in Business under the University of Calcutta is my
original work and has not been submitted earlier to any other
University /Institution for the fulfilment of the requirement for any
course of study.
I also declare that no chapter of this manuscript in whole or in part
has been incorporated in this report from any earlier work done by
others or by me. However, extracts of any literature which has
been used for this report has been duly acknowledged providing
details of such literature in the references.
Name: SANKET.A.SHAH
Address: 48,
Place: KOLKATA
Nehru Colony
Date:
22/1/15
017121096612
Registration NO. :-
54