1. INDIAN TOURISM AND HOSPITALITY SECTOR

2. INTRODUCTION
The 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.

3. CONTRIBUTION TO ECONOMY
India ranked 12th among 184 countries in terms of travel & tourism‘s total contribution to GDP in
In 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 cent
The travel & tourism sector in India is estimated to create 78 jobs per USD18,366 of investment compared to 45 in the manufacturing sector
Travel & 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 cent
Contribution 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

4. SEGMENTS OF TOURISM AND HOSPITALITY SECTOR
Includes hotels and restaurant business
ACCOMODATION AND CATERING
Includes airlines ,cruise services railways , car rentals and more
TRANSPORTATION
Includes historical monuments, heritage sites,beaches ,sanctuaries ,festivals and more
ATTRACTIONS
Includes both independant tour operators and online portals
TRAVEL AGENTS
Includes customized tours ,sightseeing, travel and accommodation.
TOUR OPERATORS

5. HOTELS AND RESTAURANTS
Contd.
TOURISM INDUSTRY
TOUR OPERATORS
TRAVEL INDUSTRY
HOTELS AND RESTAURANTS

6. EVOLUTION
PRE 1990
Setting 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 projects
National tourism policy announced in 1982
The government formulated a national comprehensive plan to promote tourism in 1988
POST 1990
Various states declare tourism as an industry
government encourages public private partnerships to boost tourism
Government policies to promote hotels
In 1992, a National Action Plan was prepared and in the National Strategy for Promotion of Tourism was drafted
In 1997 new policy on tourism drafted

7. POST 2000
National tourism policy 2002 to develop robust infrastructure
Online portals and low cost airlines boost tourism
Government announces new marketing initiatives and niche products
Domestic spending accounted for 80.3 % of total revenues from tourism in
Foreign tourists arrivals rose to 6.36 million annually in 2012 from 3.9 million in 2005

8. INITIATIVES 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 projects
FIVE YEAR PLANS
•During the 12th Five-Year Plan, USD1.3 billion has been allocated for the Ministry of Culture
The ministry set up a Hospitality Development and Promotion Board, which will monitor and facilitate hotel project clearances/approvals
SPECIAL BOARDS
The ministry in consultation with state/UT administrations has proposed to employ tourist police at prominent tourist spots
TOURIST POLICE
The government has planned an investment of 10.1 per cent of the Central Plan allocations for North-Eastern Regions and Sikkim in budget FY14
ALLOCATIONS FOR NORTH EASTERN REGIONS

9. The seven S of New tourism policy 2002 are: Safai (cleanliness)
Samrachna (infrastructure)
Sahyog (cooperation)
Suraksha(security)
Suvidha(facilitation)
Soochna(information)
Swagat (welcome)
OTHER SCHEMES
Hunar se Rozgar’ Programme
Visa on Arrival (VoA)
Publicity and marketing strategy

10. NICHE 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

11. TRENDS IN TOURISM AND HOSPITALITY SECTOR IN INDIA
Over 70 per cent of air tickets are now being booked online in the country
A number of online travel and tour operators, which provide better prices and options to consumers, have emerged in India
The widespread practice of Ayurveda, Yoga, Siddha and Naturopathy that is complemented by the nation’s spiritual philosophy makes India a famous wellness destination
Goa has seven casinos and six floating casinos, which attract a large number of tourists every year

12. CONTD.
India attracted 163,000 cruise visitors in The country’s cruise market is estimated to be worth USD300 million
Strong growth in per capita income in the country is driving the domestic tourism market
A 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 .  

13. CONTD.
Investments are expected to increase at a CAGR of per cent during 2007–14 and reach USD37 billion
The government’s collective spending on the tourism and hospitality sector is expected to reach USD2.1 billion in 2014
By 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

14. CONTD.
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 tourists
In January 2012, the government further extended this scheme to the citizens of six countries: Cambodia, Indonesia, Vietnam, the Philippines, Laos and Myanmar
The scheme registered an average growth of per cent over 2010–12

15. CONTD.
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 2012
India 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’ . 

16. Rich rural landscapes are popular tourist destination for foreigners
EMERGING AREAS
RURAL TOURISM
Rich rural landscapes are popular tourist destination for foreigners
Tourists increasingly visiting to explore rich cultural heritage ,educational tours of archaelogist ,historians and anthropologists
HERITAGE TOURISM
MEDICAL TOURISM
Low cost quality healthcare ,ayurvedic spas and naturopathy attact foreign tourists
LUXURY TOURISM
The market is estimated to be around USD 1.7 billion and is projected to grow at % per annum
ECO TOURISM
Vast variety of flora fauna and biodiversity attracts domestic and foreign tourists

17. FACTORS FAVOURING THE SECTOR
FACTORS FAVOURING INDIAN TOURISM AND HOSPITALITY
Five year tax holiday for 2,3,& 4 star category hotels around UNESCO world heritage sites
Further extension of visa on arrival scheme to 5 countries in 2011
POLICY SUPPORT
The countrys coastline, deserts,mountains,plateaus,hills,hill stations,peninsula,rural-urban mix offers variety to travellers
India has 28 world heritage sites and 25 biodiversity zones
DIVERSE ATTRACTIONS
Domestic spending on tourism rising due to increasing disposable income and lifestyle
Foreign tourist arrivals increased at CAGR of 7.8% over
ROBUST DEMAND
India 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

18. GROWTH DRIVERS GROWTH DRIVERS
•Campaigns such as Incredible India and Athithi Devo Bhavah were launched to harness the tourism industry’s potential
100 per cent FDI allowed through automatic route in the hotel and tourism sector
POLICY SUPPORT
•A number of niche offerings such as medical tourism and eco tourism are expected to create more demand
Domestic expenditure on tourism is expected to rise due to the growing income of households
GROWING DEMAND
Tourism & hospitality sector attracted second highest FDI (USD3.2 billion) in FY13*
RISING FDI

19. CONCERNS IN TOURISM AND HOSPITALITY SECTOR IN INDIA
Projection of India’s image as a safe and secure tourist destination
Attract private investment
Infrastructural development
Development of tourism destinations
Development of tourist circuits across states
Seamless travel within circuits
Joint marketing programs

20. CONTD. Differentiated tourism offerings for repeat travelers
Partnership oriented marketing
Human resource development
Inclusive growth

21. FUTURE POTENTIAL
The 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.

22. QUESTIONS