THE INDIAN TOURISM INDUSTRY Presented By:

DHIRAJ SHARMA Roll no:1212MPB

MBA(INFRASTRUCTURE

The history of tourism developed mainly through indirect sources in the early period.

In the early days, pilgrimage or pilgrim travel assumed great importance.

First foreigners to visit India, were the Persians. There was trade, commerce and cultural exchanges between Persia and India.

In the early 1960s The ITDC (India Tourism Development Corporation) was started to provide western comforts to International visitors.

3rd

Promoting adventure tourism, by the establishment of a winter sports complex at Gulmarg in Kashmir

4th&5th

Promoting improvement of tourist facilities with a view to promote Destination traffic

6th

(1980-85) It was a major landmark in the history of Indian Tourism. Tourism Policy was announced (1985-90)National Committee on Tourism set up by the Govt. in 1986 to evaluate the economic and social relevance of tourism in India (1992-97)was It proposed to achieve diversification of tourism product-tourism infrastructure, effective marketing and promotional efforts in the overseas markets Product Development, Human Resource Development, Promotion and Marketing, Coordination, MONITORING

7th

8th

9th


I. II. III.

Tourism industry can be mainly classified into three forms, namely, DOMESTIC TOURISM INBOUND TOURISM OUTBOUND TOURISM
The World Travel and Tourism Council calculated that tourism generated $121 billion or 6.4% of the nation's GDP in 2011. It was responsible for 39,3 million jobs, 7.9% of its total employment. The GDP of the tourism sector has expanded 229% between 1990 and 2011. The sector is predicted to grow at an average annual rate of 7,7% in the next decade. In a 2011 forecast the World Travel and Tourism Council predicted the annual growth to be 8,8% between 2011 and 2021. This gave India the fifth rank among countries with the fastest growing tourism industry.India has a large medical tourism sector which is expected to grow at an estimated rate of 30% annually to reach about 9,500 crore by 2015. Travel and tourism industry is the second highest foreign exchange earner for India. According to World Travel and Tourism Council, India will be a tourism hotspot from 20092018, having the highest 10-year growth potential.

ADVENTURE TOURISM MEDICAL TOURISM ECO TOURISM CULTURAL TOURISM RURAL TOURISM PILGRIMAGE TOURISM SPIRITUAL TOURISM BEACH TOURISM

IMPACT

OF TRAVEL & TOURISM INDUSTRY ON OTHER SECTORS.

Worker shortage. Improper communication system to interior places. Economical exploitation of tourists. Pollution problem.

The Travel & Tourism Competitiveness Report 2007 ranked tourism in India 6th in

terms of price competitiveness and 39th in terms of safety and security.

Tourism has been recognized as one core sector of Indian economy however no specific tax incentives have taken place.

Identify core legal issues

Environmental laws & protection of wildlife-Promoting sustainable tourism

Having a sync between state tourism laws & national tourism laws To facilitate quality of services to tourists in the country Attract more foreign tourists to India

Pricing & welfare issues-transport sectors , special discounts & offers No approval required for foreign equity of up to 51 per cent in tourism projects. NRI investment up to 100% allowed. Concession rates on customs duty of 25% for goods that are required for initial setting up, or for substantial expansion of hotels 50% of profits derived by hotels, travel agents and tour operators in foreign exchange are exempt from income tax. The remaining profits are also exempt if reinvested in a tourism related project.

Taxation & Tariff-Government charges high rates of taxes on the luxury and the star category hotels A luxury tax of 10% followed by VAT and other service taxes of approx. 10% (on food, beverages, etc.) makes hotel business in India very costly. 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%". Sales tax on imported beverages stands at 63% in Karnataka and 28% in West Bengal

The policy proposes the inclusion of tourism in the concurrent list of the Constitution to enable both the central and state governments to participate in the development of the sector.

Low investment in tourism

Lack of proper Marketing & Advertisement. Dependency on Third Party. Lack of adequate Infrastructural support.

Funds constraining the development of region.

It is not Places, Properties or Ideas that are being sold. Selling tourism involves selling Experience! Create experiences, not sight-seeing spots Aggressive tourism marketing Sell niche tourism Introducing private players Reducing taxes on hotels so there is no entry barrier to the market. Having a price policy