2INTRODUCTIONThe Macmillan Dictionary defines tourism as the business of providing services for people who are travelling for their holiday. Wikipedia defines it as travel for recreational, leisure or business purposes.The OECD glossary of statistical terms defined tourism as the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited.
3CONTRIBUTION TO ECONOMY India ranked 12th among 184 countries in terms of travel & tourism‘s total contribution to GDP inIn India, the sector’s direct contribution to GDP is expected to grow at 7.8 per cent per annum during 2013–2023 vis-à-vis the world average of 4.2 per centThe travel & tourism sector in India is estimated to create 78 jobs per USD18,366 of investment compared to 45 in the manufacturing sectorTravel & tourism’s contribution to capital investment is projected to grow at 6.5 per cent per annum during 2013– 2023, above the global average of 5.0 per centContribution of visitor exports to total exports is estimated to increase at 5.7 per cent per annum during 2013–2023 compared to the world average of 4.0 per cent
4SEGMENTS OF TOURISM AND HOSPITALITY SECTOR Includes hotels and restaurant businessACCOMODATION AND CATERINGIncludes airlines ,cruise services railways , car rentals and moreTRANSPORTATIONIncludes historical monuments, heritage sites,beaches ,sanctuaries ,festivals and moreATTRACTIONSIncludes both independant tour operators and online portalsTRAVEL AGENTSIncludes customized tours ,sightseeing, travel and accommodation.TOUR OPERATORS
5HOTELS AND RESTAURANTS Contd.TOURISM INDUSTRYTOUR OPERATORSTRAVEL INDUSTRYHOTELS AND RESTAURANTS
6EVOLUTIONPRE 1990Setting up of the India Tourism Development Corporation in 1966 to promote India as a tourist destination and the Tourism Finance Corporation in to finance tourism projectsNational tourism policy announced in 1982The government formulated a national comprehensive plan to promote tourism in 1988POST 1990Various states declare tourism as an industrygovernment encourages public private partnerships to boost tourismGovernment policies to promote hotelsIn 1992, a National Action Plan was prepared and in the National Strategy for Promotion of Tourism was draftedIn 1997 new policy on tourism drafted
7POST 2000National tourism policy 2002 to develop robust infrastructureOnline portals and low cost airlines boost tourismGovernment announces new marketing initiatives and niche productsDomestic spending accounted for 80.3 % of total revenues from tourism inForeign tourists arrivals rose to 6.36 million annually in 2012 from 3.9 million in 2005
8INITIATIVES BY GOVERNMENT During the 12th Five-Year Plan, a budgetary support of USD2.8 billion has been approved for the Ministry of Tourism for development of tourism infrastructure projects, including rural tourism and human resource development projectsFIVE YEAR PLANS•During the 12th Five-Year Plan, USD1.3 billion has been allocated for the Ministry of CultureThe ministry set up a Hospitality Development and Promotion Board, which will monitor and facilitate hotel project clearances/approvalsSPECIAL BOARDSThe ministry in consultation with state/UT administrations has proposed to employ tourist police at prominent tourist spotsTOURIST POLICEThe government has planned an investment of 10.1 per cent of the Central Plan allocations for North-Eastern Regions and Sikkim in budget FY14ALLOCATIONS FOR NORTH EASTERN REGIONS
9The seven S of New tourism policy 2002 are: Safai (cleanliness) Samrachna (infrastructure)Sahyog (cooperation)Suraksha(security)Suvidha(facilitation)Soochna(information)Swagat (welcome)OTHER SCHEMESHunar se Rozgar’ ProgrammeVisa on Arrival (VoA)Publicity and marketing strategy
10NICHE TOURISM PRODUCTS Niche Products have been identified by the Ministry of Tourism for development and Promotion: i) Cruise ii) Adventure iii) Medical iv) Wellness v) Golf vi) Polo vii) Meetings Incentives Conferences and Exhibitions (MICE) viii) Eco- Tourism ix) Film Tourism x)Religious tourism
11TRENDS IN TOURISM AND HOSPITALITY SECTOR IN INDIA Over 70 per cent of air tickets are now being booked online in the countryA number of online travel and tour operators, which provide better prices and options to consumers, have emerged in IndiaThe widespread practice of Ayurveda, Yoga, Siddha and Naturopathy that is complemented by the nation’s spiritual philosophy makes India a famous wellness destinationGoa has seven casinos and six floating casinos, which attract a large number of tourists every year
12CONTD.India attracted 163,000 cruise visitors in The country’s cruise market is estimated to be worth USD300 millionStrong growth in per capita income in the country is driving the domestic tourism marketA shift in demographics with rising young population (coupled with changing lifestyles) is leading to greater expenditure on leisure services .Domestic spending on tourism has grown significantly with the market size expected to reach USD86.1 billion representing a CAGR of 7.6% during 2007–2013.Capital investment in the tourism and hospitality sector has been rising consistently .
13CONTD.Investments are expected to increase at a CAGR of per cent during 2007–14 and reach USD37 billionThe government’s collective spending on the tourism and hospitality sector is expected to reach USD2.1 billion in 2014By the end of 2014, spending is projected to expand at a CAGR of 13.3 per cent over a seven-year period .The “Visa on Arrival” Scheme has been popular among tourists
14CONTD.In January 2010, the government launched the “Visa on Arrival” Scheme for citizens of five countries – Finland, Japan, Luxembourg and New Zealand – to attract additional foreign touristsIn January 2012, the government further extended this scheme to the citizens of six countries: Cambodia, Indonesia, Vietnam, the Philippines, Laos and MyanmarThe scheme registered an average growth of per cent over 2010–12
15CONTD.Visa on Arrival increased 47.1 per cent to tourists during January-March 2013 from the previous year . Incredible India is an international marketing campaign by the Government of India to promote tourism in India in 2002 internationally Foreign tourist arrivals grew at a CAGR of 7.8 per cent during 2005–12 to 6.6 million in 2012India currently attracts 0.63 per cent of world tourist and the government aims to increase it to one per cent In 2012, India Tourism has launched two new campaigns : an International Campaign called ‘Find What You Seek’ and a Domestic Campaign called ‘Go Beyond’ .
16Rich rural landscapes are popular tourist destination for foreigners EMERGING AREASRURAL TOURISMRich rural landscapes are popular tourist destination for foreignersTourists increasingly visiting to explore rich cultural heritage ,educational tours of archaelogist ,historians and anthropologistsHERITAGE TOURISMMEDICAL TOURISMLow cost quality healthcare ,ayurvedic spas and naturopathy attact foreign touristsLUXURY TOURISMThe market is estimated to be around USD 1.7 billion and is projected to grow at % per annumECO TOURISMVast variety of flora fauna and biodiversity attracts domestic and foreign tourists
17FACTORS FAVOURING THE SECTOR FACTORS FAVOURING INDIAN TOURISM AND HOSPITALITYFive year tax holiday for 2,3,& 4 star category hotels around UNESCO world heritage sitesFurther extension of visa on arrival scheme to 5 countries in 2011POLICY SUPPORTThe countrys coastline, deserts,mountains,plateaus,hills,hill stations,peninsula,rural-urban mix offers variety to travellersIndia has 28 world heritage sites and 25 biodiversity zonesDIVERSE ATTRACTIONSDomestic spending on tourism rising due to increasing disposable income and lifestyleForeign tourist arrivals increased at CAGR of 7.8% overROBUST DEMANDIndia is expected to recieve nearly half a million medical tourists by 2015 implying annual growth of 30 %Lesser costs as compared to western and other asian countries .ATTRACTIVE OPPORTUNITIES
18GROWTH DRIVERS GROWTH DRIVERS •Campaigns such as Incredible India and Athithi Devo Bhavah were launched to harness the tourism industry’s potential100 per cent FDI allowed through automatic route in the hotel and tourism sectorPOLICY SUPPORT•A number of niche offerings such as medical tourism and eco tourism are expected to create more demandDomestic expenditure on tourism is expected to rise due to the growing income of householdsGROWING DEMANDTourism & hospitality sector attracted second highest FDI (USD3.2 billion) in FY13*RISING FDI
19CONCERNS IN TOURISM AND HOSPITALITY SECTOR IN INDIA Projection of India’s image as a safe and secure tourist destinationAttract private investmentInfrastructural developmentDevelopment of tourism destinationsDevelopment of tourist circuits across statesSeamless travel within circuitsJoint marketing programs
21FUTURE POTENTIALThe demand for travel and tourism in India is expected to grow by 8.2 per cent between 2010 and 2019 and will place India at the third position in the world.India's travel and tourism sector is expected to be the second largest employer in the world, employing 40,037,000 by 2019.Capital investment in India's travel and tourism sector is expected to grow at 8.8 per cent between 2010 and 2019.The report forecasts India to get capital investment worth US$ billion in the travel and tourism sector in 2019.India is projected to become the fifth fastest growing business travel destination from with an estimated real growth rate of 7.6 per cent.sector’s share of total national investment will increase from 4.7 per cent in 2011 to 4.8 per cent in 2021.