Description
It describes Economics report on Indian Tourism Industry.Covers GDP share, imports, exports, employment etc
Indian Tourism Industry
Table of Contents
Introduction .................................................................................................................................................. 3 Government Initiatives ................................................................................................................................. 3 Incredible India Campaign ............................................................................................................................ 5 Medical Tourism ........................................................................................................................................... 5 Scope ......................................................................................................................................................... 6 Growth of the Medical Tourism Industry ................................................................................................. 7 Promotion of Medical Tourism ................................................................................................................. 7 Less (or No) Third-Party Payment ............................................................................................................. 8 The Road Ahead ........................................................................................................................................ 8 Eco-Tourism .................................................................................................................................................. 9 Ecotourism Resources of India.................................................................................................................... 10 Indian Ecosystems and Resources .......................................................................................................... 10 Promoting Ecotourism in India ............................................................................................................... 11 Government Responsibilities for Ecotourism ......................................................................................... 11 The Responsibilities of Ecotourists ......................................................................................................... 12 Economic Impact on India by Tourism Industry ......................................................................................... 12 GDP ......................................................................................................................................................... 12 EMPLOYMENT ......................................................................................................................................... 13 VISITOR EXPORTS .................................................................................................................................... 13 Problems in Tourism Industry ..................................................................................................................... 13 Effect of Terrorism on Tourism ............................................................................................................... 14 Effect of Swine Flu on Tourism ............................................................................................................... 15 Probable Solutions ...................................................................................................................................... 15 Conclusion ................................................................................................................................................... 17 References .................................................................................................................................................. 18
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Introduction
The tourism industry has emerged as one most profitable industries of India, driven by the burgeoning Indian middle class, growth in high spending foreign tourists, and coordinated government campaigns to promote India as a global tourist destination. It is one of the main foreign exchange earners and contributes to the economy indirectly through its linkages with other sectors like horticulture, agriculture, poultry, handicrafts and construction. Tourism industry also provides employment to millions of people in India both directly and indirectly through its linkage with other sectors of the economy. Total direct employment in the tourism sector is estimated to be around 20 million. Several reasons are cited for the growth and prosperity of this service-oriented industry. Economic growth has added millions to the ranks of India?s middle class and this group is driving domestic tourism growth. Disposable income in India has grown by 10.11% annually from 2001-2006, and much of that is being spent on travel. Thanks in part to India?s IT and outsourcing industry a growing number of business trips are made by foreigners to our country, who will often add a weekend break or longer holiday to their trip. Foreign tourists spend more in India than almost any other country worldwide. Tourist arrivals are projected to increase by over 22% per year through till 2010, with a 33% increase in foreign exchange earnings recorded in 2004.
Government Initiatives
The Tourism Ministry has also played an important role in the development of the industry.
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Tourism was officially recognized as an industry in 1982.Before 2002, the Indian government regularly formulated policies and prepared pamphlets and brochures for the promotion of tourism; however, it did not support tourism in a concerted fashion .As a result, the country attracted very few tourists. However, in 2002, the government made a conscious effort to bring in more professionalism in its attempts to promote tourism. It announced a New Tourism Policy to give the much needed boost to the tourism sector. This policy is built around the 7-S Mantra of Swaagat (welcome), Soochanaa (information), Suvidhaa (facilitation), Surakshaa (security), Sahyog (cooperation), Sanrachnaa (infrastructure) and Safaai (cleanliness). Some of the salient features of the New Tourism Policy are: ? 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. No approval required for foreign equity of up to 51 per cent in tourism projects. NRI investment up to 100% allowed. Automatic approval for Technology agreements in the hotel industry, subject to the fulfillment of certain specified parameters. 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.
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Apart from this, government took several other measures for the promotion of tourism. A multipronged approach was adopted, which included new mechanism for speedy implementation of tourism projects, development of integrated tourism circuits and rural destinations, special capacity building in the unorganized hospitality sector and new marketing strategy. As part of this marketing strategy, The Government of India formulated integrated communication propaganda with the aim of promoting India as a destination of choice for the discerning traveler.
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Incredible India Campaign
The services of Ogilvy & Mather (India) (O&M) were employed to create a new campaign to increase tourist inflows into the country. The 'Incredible India' campaign, as it was called, was launched in 2002 with a series of television commercials and print advertisements. It projected India as an attractive tourist destination by showcasing different aspects of Indian culture and history like yoga, spirituality and many others. The campaign was conducted globally and received appreciation from tourism industry observers and travelers alike. It made and continues to make a powerful visual impact on the global audience and has created a perception of India as being a magical place to visit.
Medical Tourism
A new growth sector within the tourism industry is medical tourism. India is quickly becoming a hub for medical tourists seeking quality healthcare at an affordable cost. The Indian healthcare delivery system is making continuous efforts to match international standards and already 13 Indian hospitals have been accredited by the Joint Commission
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International (JCI). Accreditation and compliance with quality expectations are important since they provide tourists with confidence that the services are meeting international standards. Reduced costs, access to the latest medical technology, growing compliance to international quality standards and ease of communication all work towards India?s advantage. Another secondary motivation besides accessibility and cost of care is the idea of having your medical treatment combined with a relaxing vacation at an exotic destination. This is an opportunity for India to embrace its Ayurveda and other alternative medicine options by adopting more of a holistic approach to healthcare delivery that includes wellness tourism for rejuvenation of the body and mind.One of the main concerns that patients face when opting for medical value travel is whether or not they will receive proper follow-up care in their home country post treatment in a foreign country. Another concern is the issue of liability, for example if something were to go wrong during a procedure in a foreign country how easy or difficult would it be for that individual to work through the host country?s legal system.Thus, these are the issue that the governmental bodies must look into to fuel further growth of medical tourism in India.
Scope
There is no doubt that the Indian medical industry?s main appeal is low cost treatment. Most estimates claim treatment costs in India start around a tenth of the price of comparable treatment in leading countries of the world. AIIMS is a destination for patients from Nepal, Bangladesh, Bhutan, Myanmar, Mauritius and Pakistan. There are regular patients from the Middle East, and an occasional patient drop from US and other European countries. Along with providing treatment, the stay of the foreign patients is taken care of by the hospital itself. In India the strong tradition of traditional systems of healthcare in Kerala, for example is utilized. Kerala Ayurveda centres have been established at multiple locations in various metro cities, thus highlighting the advantages of ayurveda in health management. Kerala- the pioneer state or God?s own country as its corporate slogan goes has pioneered health and medical tourism in India. They have made a concentrated effort to promote health tourism in a big way which has resulted in a substantial increase of visitor arrivals into the state. Maharashtra offers tremendous potential to develop medical tourism. The latest addition in Mumbai is the Asian Heart Institute at Bandra Kurla complex, which offer State of the art facilities for all types of heart complications and even offers preventive cardio logical treatment to avoid heart ailments and also to keep under control a host of heart problems. The government of Karnataka reportedly has set up a Bangalore International Health city corporation to attract patients for all sorts of healthcare and treatments. Karnataka produces the maximum number of doctors, nurses and medical technicians in the country. Karnataka is an ideal health tourism destination with the best healthcare facilities and tourist destinations. The state also boasts of having the unique property, golden palms Spa& resort, which is the one and only resort in the country where a guest can have a complete range of pathological, dental, electro-cardiograms, X-rays and even sonography tests.
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Growth of the Medical Tourism Industry
The countries where medical tourism is being actively promoted include Greece, South Africa, Jordan, India, Malaysia, Philippines and Singapore. India is a recent entrant into medical tourism. According to a study by McKinsey and the Confederation of Indian Industry, medical tourism in India could become a $1 billion business by 2012. The report predicts that: "By 2012, if medical tourism were to reach 25 per cent of revenues of private up-market players, up to Rs 10,000 crore will be added to the revenues of these players". The Indian government predicts that India's $17-billion-a-year health-care industry could grow 13 per cent in each of the next six years, boosted by medical tourism, which industry watchers say is growing at 30 per cent annually. In India, the Apollo group alone has so far treated 95,000 international patients, many of whom are of Indian origin. Apollo has been a forerunner in medical tourism in India and attracts patients from Southeast Asia, Africa, and the Middle East. The group has tied up with hospitals in Mauritius, Tanzania, Bangladesh and Yemen besides running a hospital in Sri Lanka, and managing a hospital in Dubai.
Promotion of Medical Tourism
The key "selling points" of the medical tourism industry are its "cost effectiveness" and its combination with the attractions of tourism. The latter also uses the ploy of selling the "exotica" of the countries involved as well as the packaging of health care with traditional therapies and treatment methods. Price advantage is, of course, a major selling point. The slogan, thus is, "First World treatment' at Third World prices". The cost differential across the board is huge: only a tenth and sometimes even a sixteenth of the cost in the West. Open-heart surgery could cost up to $70,000 in Britain and up to $150,000 in the US; in India's best hospitals it could cost between $3,000 and $10,000. Knee surgery (on both knees) costs 350,000 rupees ($7,700) in India; in Britain this costs £10,000 ($16,950), more than twice as much. Dental, eye and cosmetic surgeries in Western countries cost three to four times as much as in India. The price advantage is however offset today for patients from the developed countries by concerns regarding standards, insurance coverage and other infrastructure. This is where the tourism and medical industries are trying to pool resources, and also putting pressure on the government. In India the strong tradition of traditional systems of health care in Kerala, for example, is utilized. Kerala Ayurveda centres have been established at multiple locations in various metro cities, thus highlighting the advantages of Ayurveda in health management. The health tourism focus has seen Kerala participate in various trade shows and expos wherein the advantages of this traditional form of medicine are showcased. A generic problem with medical tourism is that it reinforces the medicalized view of health care. By promoting the notion that medical services can be bought off the shelf from the lowest priced provider anywhere in the globe, it also takes away the pressure from the government to provide comprehensive health care to all its citizens.
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Less (or No) Third-Party Payment
Markets tend to be bureaucratic and stifling when insurers or governments pay most medical bills. In the United States, third parties (insurers, employers and government) pay for about 87 percent of health care. So patients spend only 13 cents out of their own pocket for every dollar they spend on health care. As a result, they do not shop like consumers do when they are spending their own money, and the providers who serve them rarely compete for their business based on price. A much higher percentage of private health spending is out of pocket in countries with growing, entrepreneurial medical markets. For instance, patients pay 26 percent of health care spending out of pocket in Thailand, 51 percent in Mexico and 78 percent in India. When patients control more of their own health care spending, providers are more likely to compete for patients based on price. Consequently, these countries have more competitive private health care markets.
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The Road Ahead
Global competition is emerging in the health care industry. Wealthy patients from developing countries have long travelled to developed countries for high quality medical care. Now, a
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growing number of less affluent patients from developed countries are travelling to regions once characterized as “third world.” These patients are seeking high quality medical care at affordable prices. Many of these “medical tourists” are not wealthy, but are seeking high quality medical care at affordable prices. To meet the demand, entrepreneurs are building technologically advanced facilities outside the United States, using foreign and domestic capital. They are hiring physicians, technicians and nurses trained to American and European standards, and where qualified personnel are not available locally, they are recruiting expatriates. The medical industry on a commercial platform with tourism is a new and upcoming industry and needs to be explored. States like Karnataka, Kerala, Delhi, West Bengal and Maharashtra are trying their best to woo foreign patients to India and to be amongst the most favourable health destination. There is a need for constant endeavour for other states to try their best to nurture themselves in this field and contribute to GDP by providing quality service. For example the FICCI and CII have taken the lead by setting up a task force for the promotion of health and medical tourism in Maharashtra. According to CII India has the potential to attract 2 billion tourists per annum which could contribute $ 5 billion to the economy. India is not having only the expertise professionals but also has strong infrastructure to support the medical tourism industry. There is no doubt that India can be the leader in providing medical tourism by 2012.
Eco-Tourism
Another sector poised for immense growth is ecotourism. Ecotourism (also known as ecological tourism) is a form of tourism that appeals to ecologically and socially conscious individuals. Generally speaking, ecotourism focuses on volunteering, personal growth and learning new ways to live on the planet. It typically involves travel to destinations where flora, fauna and cultural heritage are the primary attractions. In addition to environmental and cultural evaluations, an integral part of ecotourism is the promotion of recycling, energy efficiency, water conservation and creation of economic opportunities for the local people of that area. Countries across are responding to the demands of eco-tourists. Ecotourism has come of age in India as well. The Rainforest resort in the Madikeri town of Kodage district in southern Karnataka, the Green Magic nature resort in the last belt of Asia?s
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tropical rainforests in the Wayanand district of North Kerala, Dune Eco Beach hotel in Pondicherry, or the Eco-Friendly tents provided by the Madhya Pradesh State tourism Development corporation in Dilwari are all ecotourist locations that leave an ecotraveller spoilt for choice. These resorts are located in the heart of natural habitatsand the surroundings are left untouched. Once you choose your holiday destination, the resort owner will carry out a check to ensure that you are a true nature lover, that you love walking, trekking etc and if you book you will be picked up from specified spot. These resorts only allow guests and walk in visitors are usually discouraged. A green holiday at one of these resorts would be something like this: ? ? ? ? ? Your meals would be completely organic, made from the vegetables and food crops grown in the organic farms of these resorts. The menu would comprise of items from local cuisine There wouldn?t be any conventional sources of energy and instead a combination of solar energy, gobar gas and kitchen waste would be used to light up the rooms. Tourists cannot take their laptops and other gadgets with them as the resort does not have any place for them Tourists can stay in rooms made out of bamboo poles,coir, palmyra leaves etc, The slightly adventurous ones can also stay in tree houses or even cave houses There is usually no room service as self sufficient, healthy living is encouraged
Certain hotels like Vyithri resort in north Kerala discourage the use of plastic bottles, with the exception of mineral water bottles. But even these will be prohibited once the resort?s mineral water plant gets operational and the water is bottled in glass bottles. Tourists are educated about organic farming, made to interact with the local people and pick up local customs and traditions.
Ecotourism Resources of India
The geographical diversity of India makes it home to a wealth of ecosystems which are well protected and preserved. These ecosystems have become the major resources for ecotourism.
Indian Ecosystems and Resources
? ? ? ? ? ? ? ? Biosphere Reserves Mangroves Coral Reefs Deserts Mountains and Forests Flora and Fauna Seas, Lakes and Rivers Caves
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Biosphere reserves are multi-purpose protected areas, for preservation of the genetic diversity and the integrity of plants, animals and micro-organism in representative ecosystems. There are seven such reserves in India at present ? ? ? ? ? ? ? Nilgri Nanda Devi Nokrek Great Nicobar Gulf of Mannar Manas Sunderbans
Promoting Ecotourism in India
The key players in the ecotourism business are governments at both levels, the local authorities, the developers and the operators, the visitors, and the local community. Each one of them has to be sensitive to the environment and local traditions and follow a set of guidelines for the successful development of ecotourism. In addition, non-governmental organisations and scientific and research institutions also have to play a key role in the development of ecotourism. A management plan for each ecotourism area should be prepared by professional landscape architects and urban planners, in consultation with the local community as well as others directly concerned. Integrated planning should be adopted to avoid inter-sectoral and cross-sectoral conflict. A first step should be to prepare 20-year Master Plans for each state. The architectural program for ecotourism centres should include controlled access points, roads, self-guided nature trails, transportation options, interpretation centres, signs, observation towers and adequate but unpretentious lodging and dining facilities, docks, garbage disposal facilities and other utilities as needed. If required, suitable living quarters and facilities for project personnel should be provided. The following is a list of actions for the development of ecotourism, where the responsibility is with the government.
Government Responsibilities for Ecotourism
? Regulate structures that create visual pollution, unaesthetic views and are non-compatible architecture; and encourage use of local building material and structures befitting the local environment Exclude developments in geologically unstable zones and define development and buffer zones after proper environmental impact assessments Establish and enforce standards, building codes and other regulations Specify environmental, physical and social carrying capacities to limit development Ensure continuous monitoring of adverse effects of tourism activities and initiate suitable corrective measures Recognise and award quality by accreditation of ecotourism operators
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Provide visitor information and interpretation services covering particularly what to see; how to see it; and how to behave. This can be by way of brochures, leaflets, specialised guides and visitor information centres Prepare and distribute codes of conduct to all visitors Launch training programs on ecotourism for tourism administrators, planners, operators and the general public
The Responsibilities of Ecotourists
? ? Help conserve habitats of flora and fauna as well as any site, natural feature or culture, which may be affected by tourism Make no open fires and discourage others from doing so. If water has to be heated with scarce firewood, use as little as possible. Where feasible, use kerosene or fuel-efficient wood stoves Remove litter, burn or bury paper and carry back all non-degradable litter Keep local water clean and avoid using pollutants such as detergents in streams or springs. If no toilet facilities are available, relieve yourself at least 30 metres away from water sources and bury or cover the waste Respect the natural and cultural heritage of the area and follow local customs Respect privacy of individuals and ask permission to take photographs of local inhabitants Respect holy places; do not touch or remove religious objects Strictly follow the guidelines for personal safety and security and always take your own precautions and safety measures
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Economic Impact on India by Tourism Industry
According to World Travel and Tourism Council Report for 2009, the economic impacts on India by the tourism industry are as follows:
GDP
The Travel &Tourism Industry is expected to contribute directly2.2% to Gross Domestic Product (GDP) in 2009 (INR1,165.4 bn or US$24.2 bn), rising in nominal terms to INR3,345.3 bn or US$61.0 bn (1.9% of total) by 2019.
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EMPLOYMENT
Travel &Tourism Economy employment is estimated at 31,105,000 jobs in 2009, 6.4% of total employment, or 1 in every 15.6 jobs. By 2019, this should total 40,037,000 jobs, 7.2% of total employment or 1 in every 13.8 jobs. The 12,875,000 T&T Direct Industry jobs account for 2.7% of total employment in 2007 and are forecast to total 15,952,000 jobs or 2.9% of the total by 2019.
VISITOR EXPORTS
Exports make up a very important share of Travel & Tourism's Contribution to GDP. Of India's total exports, Travel & Tourism is expected to generate 6.0% (INR811.9 bn or US$16.9 bn) in 2009, increasing to INR2,819.0 bn or US$51.4 bn (4.1% of total), in 2019.
Problems in Tourism Industry
The potential for growth and development of tourism in India is clearly immense. However, there is no denying the fact that India?s tourism industry is plagued with several problems, faced by both domestic and foreign tourists. Some of the problems are as follows: ? Excessive formalities are required for an issue of special permit to view restricted areas sites like Sunderbans
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Untrained Guides & Sherpas Lack of Infrastructure Roads, Flyovers, Telecommunication and Virtual Network Lack of facilities like availability of fresh water, clean restroom, hygienic food & beverages while travelling Danger of fraud, cheating, thefts or physical assault by antisocial elements Communication and culture problem which is precipitated by the lack of knowledgeable interpreters Lack of direction boards and other readily accessible portals of information during the journey Crowd control and management in festivals such as Kumbh Mela Chaos created by large number of tourist operators and agents Tourism itineraries that do not provide value for money. Unnecessary sites are added in the itinerary to extend the length of stay and increase the cost of package which is highly inconvenient for tourists Fear of diseases due to unsanitary conditions prevailing in most parts of the country
Apart from the above problems, the biggest challenge facing the tourism industry in India is the threat of terrorism. The tourism sector is witnessing a downturn due to the travel advisories being issued by various countries against India, recently for the terror attacks in Mumbai and in other destinations in the past. The attacks are expected to dent the image of 'Incredible India' and make it difficult for the 'brand' to achieve its goal of doubling tourist arrivals from last year's five million to ten million by 2010. Tourism figures may even regress, as it happened in Bali after the bombings in a nightclub in 2002 and the country lost more than one third of its tourism traffic overnight.
Effect of Terrorism on Tourism
The Mumbai terror acts have put an end to the tourism season, especially the inbound segment, as 22 foreign tourists were killed spreading a wave of fear among foreign nationals slated to visit India. Thus, Indian tourism sector and all players of the travel industry are now witnessing a flurry of booking cancellations by overseas visitors. Due to low volumes, few travel suppliers might consider a reduction in prices to attract business. On this, a Delhi based tour operator said, “The drop in prices will not bring in more volumes and I think the industry over the years has matured and has realized that dropping prices in many ways at the end of the day
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just harms all of us and it is still the same amount of business that is going to come in”, says Mukesh Jagga, President, Association of Domestic Tour Operators of India (ADTOI). Both leisure and business segments were hampered due to the economic downturn. The threat of terrorism will further slow down the leisure segment and to some extent business travel as well.
Effect of Swine Flu on Tourism
The recent spread of swine flu has struck another blow to the tourism industry. Swine flu has affected the whole country and domestic tourism business has been badly affected. People travelling to and fro from different parts of the country have postponed their trips because of swine flu. Regular business trips are still continuing and the number of cancellations from foreign clients is also not significant. However, with WHO raising its concern over increase in virus activity during monsoons, inbound tourism has dropped by almost 30 per cent. While Indian tour operators find their problems multiplying he only thing that they want in such a situation is for the media to not hype the situation. The extensive media coverage is creating a panic like situation among tourists which is often baseless. Due to the coverage from Pune, tourists have cancelled their bookings. There has been a similar effect on Rajasthan as well. The tourism industry in India's northwestern city of Jaipur, has taken a huge plunge. The industry has been registering huge losses due to swine flu, with around ten to fifteen percent of tourists either canceling or postponing their visit to the city.
Probable Solutions
Each of the above problems has to be dealt with carefully and solved eventually, for the unstinted growth of the tourism industry. Unnecessary bureaucratic complications should be avoided so that travel to remote and exotic destinations can be undertaken without any hassles. This can generate revenue for these locations and also aid in the development of the local communities. The local guides and sherpas should be trained by the state tourism bodies. The local youth in the tourist locations should be encouraged to enroll as interpreters and the required linguistic skills should be imparted to them. This will greatly aid foreign tourists. The government should undertake cleanliness drives, infrastructural development and provide a holistic hygienic travelling environment for all tourists. Vaccinations and medical facilities to combat indigenous diseases should also be readily available. The tourism sector as a whole needs superior administration and management, both at the central and the state level, so that tourists have an „Incredible? experience. To combat the threat of terrorism, the government should enhance security levels in the country and simultaneously communicate to other countries that India is a safe place to visit. Veena Patil, CMD, Kesari Tours Pvt. Ltd. is of the opinion that travel agents and tour operators should not worry and instead, believe that in the next six months tourists will gain confidence and the
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fortunes of the tourism industry will be revived. Meanwhile, travel trade can focus on domestic tourism as this segment has higher potential than inbound. Recently, the Ministry of Tourism (MoT) announced that most tourists currently travelling in India have not cancelled their travel plans. Talking about the recent feedback taken by MoT from various inbound tourists, Devesh Chaturvedi, Director, MoT said, “Most international tourists currently in India have not changed their travel plans and flown off. Instead tourists around India are expressing strong intention of continuing their itinerary in India.”. The international and national tourism offices of India Tourism are cracking every nut to change the perception of fear created by the influence maker – Media. India Tourism board in United Kingdom is planning to launch a campaign aimed at reassuring visitors that the country is safe following the attacks in Mumbai. A spokesperson from India Tourism, UK said, “We are in talks with MoT in India and local tour operators to launch the new ad campaign for rebuilding the India brand. The travel trade has till now not recorded any cancellations for travelling to India but are planning for a change in itinerary. We are in talks with the travel trade on national and international level for their support to rebuild the image of India as a safe tourist destination. We are working on several short term plans to reinforce the confidence of travelers travelling to India, but don?t want to disclose at this point of time about plans that are underway.” On similar note, Sujata Thakur, Regional Director – Western Region, India Tourism said, “Government has initiated few action plans in the right direction and we are looking forward for a positive outcome in tourism. We are going to work closely with travel trade to enhance the brand image of India as a secure tourist destination. That is our numero uno action plan right now” Whatever be the action plan of MoT, the tourism sector has to sustain the hard blow of terrorism. The terror attacks can happen anywhere in the world. It should be realized that the impact of terrorism on tourism is not limited to the trend in arrivals in a destination immediately following the occurrence of an incident, but extends to the „reaction to the reaction? of authorities and private sector tourism enterprises to the threat of terrorism. For example, restrictions on hand luggage in airports or the requirement for biometric passports might deter tourists as well. With regard to swine flu, the advent of vaccinations should improve the situation. Government as well as private hospitals should be equipped so as to provide the correct medication in case of disease detection.
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Conclusion
Tourism has proved to be an engine of growth in many economies in the world. It provides for the generation of income, wealth and employment, and helps in the sustainable development of remote areas. In India, tourism provides direct employment to 9 million people and indirect employment to another 13 million persons, thus providing a livelihood to 22 million persons. Tourism has proved to have negative impacts as well as the positive ones. It is criticised for contaminating indigenous culture. This takes the form of changing values, resulting in social maladies like drug addiction, child prostitution, etc. A far more widespread negative impact is caused by mass tourism in environmentally fragile areas like mountains, hills, deserts and coastal regions. Due to heavy tourist traffic in some areas, the cultural and environmental assets of the community are under threat. Although this phenomenon is not widespread in India, there is a need to take note of the possible negative influences of tourism so that timely preservation action can be taken and irreparable loss avoided. The movement towards ecotourism is at once a threat and an opportunity to create more sustainable tourism: by diverting tourist traffic to ensure the carrying capacity of any destination is not exceeded; by planning for regeneration of natural resources; and by generating awareness in the host community whereby they are prepared and forearmed to deal with the negative impact of mass tourism. As in most cases, a middle path is the most creative way to maximise the economic potential of tourism, while at the same time minimising the negative social influences and threats to the environment. Only ecotourism where the tourists, the service providers, the host community and authorities are well informed and prepared to harness tourism as an engine of growth can yield sustainable results.
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References
? ? ? ? ? www.incredibleindia.org www.india-tourism.com Pindyck Robert, Daniel Rubinfeld, Prem Mehta, Microeconomics, 6th edition, Pearson education Economic and Political Weekly Journals – Dec 2008 to June 2009 World Travel and Tourism Council Economic Impact Report, 2009
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doc_938445367.docx
It describes Economics report on Indian Tourism Industry.Covers GDP share, imports, exports, employment etc
Indian Tourism Industry
Table of Contents
Introduction .................................................................................................................................................. 3 Government Initiatives ................................................................................................................................. 3 Incredible India Campaign ............................................................................................................................ 5 Medical Tourism ........................................................................................................................................... 5 Scope ......................................................................................................................................................... 6 Growth of the Medical Tourism Industry ................................................................................................. 7 Promotion of Medical Tourism ................................................................................................................. 7 Less (or No) Third-Party Payment ............................................................................................................. 8 The Road Ahead ........................................................................................................................................ 8 Eco-Tourism .................................................................................................................................................. 9 Ecotourism Resources of India.................................................................................................................... 10 Indian Ecosystems and Resources .......................................................................................................... 10 Promoting Ecotourism in India ............................................................................................................... 11 Government Responsibilities for Ecotourism ......................................................................................... 11 The Responsibilities of Ecotourists ......................................................................................................... 12 Economic Impact on India by Tourism Industry ......................................................................................... 12 GDP ......................................................................................................................................................... 12 EMPLOYMENT ......................................................................................................................................... 13 VISITOR EXPORTS .................................................................................................................................... 13 Problems in Tourism Industry ..................................................................................................................... 13 Effect of Terrorism on Tourism ............................................................................................................... 14 Effect of Swine Flu on Tourism ............................................................................................................... 15 Probable Solutions ...................................................................................................................................... 15 Conclusion ................................................................................................................................................... 17 References .................................................................................................................................................. 18
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Introduction
The tourism industry has emerged as one most profitable industries of India, driven by the burgeoning Indian middle class, growth in high spending foreign tourists, and coordinated government campaigns to promote India as a global tourist destination. It is one of the main foreign exchange earners and contributes to the economy indirectly through its linkages with other sectors like horticulture, agriculture, poultry, handicrafts and construction. Tourism industry also provides employment to millions of people in India both directly and indirectly through its linkage with other sectors of the economy. Total direct employment in the tourism sector is estimated to be around 20 million. Several reasons are cited for the growth and prosperity of this service-oriented industry. Economic growth has added millions to the ranks of India?s middle class and this group is driving domestic tourism growth. Disposable income in India has grown by 10.11% annually from 2001-2006, and much of that is being spent on travel. Thanks in part to India?s IT and outsourcing industry a growing number of business trips are made by foreigners to our country, who will often add a weekend break or longer holiday to their trip. Foreign tourists spend more in India than almost any other country worldwide. Tourist arrivals are projected to increase by over 22% per year through till 2010, with a 33% increase in foreign exchange earnings recorded in 2004.
Government Initiatives
The Tourism Ministry has also played an important role in the development of the industry.
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Tourism was officially recognized as an industry in 1982.Before 2002, the Indian government regularly formulated policies and prepared pamphlets and brochures for the promotion of tourism; however, it did not support tourism in a concerted fashion .As a result, the country attracted very few tourists. However, in 2002, the government made a conscious effort to bring in more professionalism in its attempts to promote tourism. It announced a New Tourism Policy to give the much needed boost to the tourism sector. This policy is built around the 7-S Mantra of Swaagat (welcome), Soochanaa (information), Suvidhaa (facilitation), Surakshaa (security), Sahyog (cooperation), Sanrachnaa (infrastructure) and Safaai (cleanliness). Some of the salient features of the New Tourism Policy are: ? 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. No approval required for foreign equity of up to 51 per cent in tourism projects. NRI investment up to 100% allowed. Automatic approval for Technology agreements in the hotel industry, subject to the fulfillment of certain specified parameters. 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.
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Apart from this, government took several other measures for the promotion of tourism. A multipronged approach was adopted, which included new mechanism for speedy implementation of tourism projects, development of integrated tourism circuits and rural destinations, special capacity building in the unorganized hospitality sector and new marketing strategy. As part of this marketing strategy, The Government of India formulated integrated communication propaganda with the aim of promoting India as a destination of choice for the discerning traveler.
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Incredible India Campaign
The services of Ogilvy & Mather (India) (O&M) were employed to create a new campaign to increase tourist inflows into the country. The 'Incredible India' campaign, as it was called, was launched in 2002 with a series of television commercials and print advertisements. It projected India as an attractive tourist destination by showcasing different aspects of Indian culture and history like yoga, spirituality and many others. The campaign was conducted globally and received appreciation from tourism industry observers and travelers alike. It made and continues to make a powerful visual impact on the global audience and has created a perception of India as being a magical place to visit.
Medical Tourism
A new growth sector within the tourism industry is medical tourism. India is quickly becoming a hub for medical tourists seeking quality healthcare at an affordable cost. The Indian healthcare delivery system is making continuous efforts to match international standards and already 13 Indian hospitals have been accredited by the Joint Commission
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International (JCI). Accreditation and compliance with quality expectations are important since they provide tourists with confidence that the services are meeting international standards. Reduced costs, access to the latest medical technology, growing compliance to international quality standards and ease of communication all work towards India?s advantage. Another secondary motivation besides accessibility and cost of care is the idea of having your medical treatment combined with a relaxing vacation at an exotic destination. This is an opportunity for India to embrace its Ayurveda and other alternative medicine options by adopting more of a holistic approach to healthcare delivery that includes wellness tourism for rejuvenation of the body and mind.One of the main concerns that patients face when opting for medical value travel is whether or not they will receive proper follow-up care in their home country post treatment in a foreign country. Another concern is the issue of liability, for example if something were to go wrong during a procedure in a foreign country how easy or difficult would it be for that individual to work through the host country?s legal system.Thus, these are the issue that the governmental bodies must look into to fuel further growth of medical tourism in India.
Scope
There is no doubt that the Indian medical industry?s main appeal is low cost treatment. Most estimates claim treatment costs in India start around a tenth of the price of comparable treatment in leading countries of the world. AIIMS is a destination for patients from Nepal, Bangladesh, Bhutan, Myanmar, Mauritius and Pakistan. There are regular patients from the Middle East, and an occasional patient drop from US and other European countries. Along with providing treatment, the stay of the foreign patients is taken care of by the hospital itself. In India the strong tradition of traditional systems of healthcare in Kerala, for example is utilized. Kerala Ayurveda centres have been established at multiple locations in various metro cities, thus highlighting the advantages of ayurveda in health management. Kerala- the pioneer state or God?s own country as its corporate slogan goes has pioneered health and medical tourism in India. They have made a concentrated effort to promote health tourism in a big way which has resulted in a substantial increase of visitor arrivals into the state. Maharashtra offers tremendous potential to develop medical tourism. The latest addition in Mumbai is the Asian Heart Institute at Bandra Kurla complex, which offer State of the art facilities for all types of heart complications and even offers preventive cardio logical treatment to avoid heart ailments and also to keep under control a host of heart problems. The government of Karnataka reportedly has set up a Bangalore International Health city corporation to attract patients for all sorts of healthcare and treatments. Karnataka produces the maximum number of doctors, nurses and medical technicians in the country. Karnataka is an ideal health tourism destination with the best healthcare facilities and tourist destinations. The state also boasts of having the unique property, golden palms Spa& resort, which is the one and only resort in the country where a guest can have a complete range of pathological, dental, electro-cardiograms, X-rays and even sonography tests.
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Growth of the Medical Tourism Industry
The countries where medical tourism is being actively promoted include Greece, South Africa, Jordan, India, Malaysia, Philippines and Singapore. India is a recent entrant into medical tourism. According to a study by McKinsey and the Confederation of Indian Industry, medical tourism in India could become a $1 billion business by 2012. The report predicts that: "By 2012, if medical tourism were to reach 25 per cent of revenues of private up-market players, up to Rs 10,000 crore will be added to the revenues of these players". The Indian government predicts that India's $17-billion-a-year health-care industry could grow 13 per cent in each of the next six years, boosted by medical tourism, which industry watchers say is growing at 30 per cent annually. In India, the Apollo group alone has so far treated 95,000 international patients, many of whom are of Indian origin. Apollo has been a forerunner in medical tourism in India and attracts patients from Southeast Asia, Africa, and the Middle East. The group has tied up with hospitals in Mauritius, Tanzania, Bangladesh and Yemen besides running a hospital in Sri Lanka, and managing a hospital in Dubai.
Promotion of Medical Tourism
The key "selling points" of the medical tourism industry are its "cost effectiveness" and its combination with the attractions of tourism. The latter also uses the ploy of selling the "exotica" of the countries involved as well as the packaging of health care with traditional therapies and treatment methods. Price advantage is, of course, a major selling point. The slogan, thus is, "First World treatment' at Third World prices". The cost differential across the board is huge: only a tenth and sometimes even a sixteenth of the cost in the West. Open-heart surgery could cost up to $70,000 in Britain and up to $150,000 in the US; in India's best hospitals it could cost between $3,000 and $10,000. Knee surgery (on both knees) costs 350,000 rupees ($7,700) in India; in Britain this costs £10,000 ($16,950), more than twice as much. Dental, eye and cosmetic surgeries in Western countries cost three to four times as much as in India. The price advantage is however offset today for patients from the developed countries by concerns regarding standards, insurance coverage and other infrastructure. This is where the tourism and medical industries are trying to pool resources, and also putting pressure on the government. In India the strong tradition of traditional systems of health care in Kerala, for example, is utilized. Kerala Ayurveda centres have been established at multiple locations in various metro cities, thus highlighting the advantages of Ayurveda in health management. The health tourism focus has seen Kerala participate in various trade shows and expos wherein the advantages of this traditional form of medicine are showcased. A generic problem with medical tourism is that it reinforces the medicalized view of health care. By promoting the notion that medical services can be bought off the shelf from the lowest priced provider anywhere in the globe, it also takes away the pressure from the government to provide comprehensive health care to all its citizens.
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Less (or No) Third-Party Payment
Markets tend to be bureaucratic and stifling when insurers or governments pay most medical bills. In the United States, third parties (insurers, employers and government) pay for about 87 percent of health care. So patients spend only 13 cents out of their own pocket for every dollar they spend on health care. As a result, they do not shop like consumers do when they are spending their own money, and the providers who serve them rarely compete for their business based on price. A much higher percentage of private health spending is out of pocket in countries with growing, entrepreneurial medical markets. For instance, patients pay 26 percent of health care spending out of pocket in Thailand, 51 percent in Mexico and 78 percent in India. When patients control more of their own health care spending, providers are more likely to compete for patients based on price. Consequently, these countries have more competitive private health care markets.
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The Road Ahead
Global competition is emerging in the health care industry. Wealthy patients from developing countries have long travelled to developed countries for high quality medical care. Now, a
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growing number of less affluent patients from developed countries are travelling to regions once characterized as “third world.” These patients are seeking high quality medical care at affordable prices. Many of these “medical tourists” are not wealthy, but are seeking high quality medical care at affordable prices. To meet the demand, entrepreneurs are building technologically advanced facilities outside the United States, using foreign and domestic capital. They are hiring physicians, technicians and nurses trained to American and European standards, and where qualified personnel are not available locally, they are recruiting expatriates. The medical industry on a commercial platform with tourism is a new and upcoming industry and needs to be explored. States like Karnataka, Kerala, Delhi, West Bengal and Maharashtra are trying their best to woo foreign patients to India and to be amongst the most favourable health destination. There is a need for constant endeavour for other states to try their best to nurture themselves in this field and contribute to GDP by providing quality service. For example the FICCI and CII have taken the lead by setting up a task force for the promotion of health and medical tourism in Maharashtra. According to CII India has the potential to attract 2 billion tourists per annum which could contribute $ 5 billion to the economy. India is not having only the expertise professionals but also has strong infrastructure to support the medical tourism industry. There is no doubt that India can be the leader in providing medical tourism by 2012.
Eco-Tourism
Another sector poised for immense growth is ecotourism. Ecotourism (also known as ecological tourism) is a form of tourism that appeals to ecologically and socially conscious individuals. Generally speaking, ecotourism focuses on volunteering, personal growth and learning new ways to live on the planet. It typically involves travel to destinations where flora, fauna and cultural heritage are the primary attractions. In addition to environmental and cultural evaluations, an integral part of ecotourism is the promotion of recycling, energy efficiency, water conservation and creation of economic opportunities for the local people of that area. Countries across are responding to the demands of eco-tourists. Ecotourism has come of age in India as well. The Rainforest resort in the Madikeri town of Kodage district in southern Karnataka, the Green Magic nature resort in the last belt of Asia?s
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tropical rainforests in the Wayanand district of North Kerala, Dune Eco Beach hotel in Pondicherry, or the Eco-Friendly tents provided by the Madhya Pradesh State tourism Development corporation in Dilwari are all ecotourist locations that leave an ecotraveller spoilt for choice. These resorts are located in the heart of natural habitatsand the surroundings are left untouched. Once you choose your holiday destination, the resort owner will carry out a check to ensure that you are a true nature lover, that you love walking, trekking etc and if you book you will be picked up from specified spot. These resorts only allow guests and walk in visitors are usually discouraged. A green holiday at one of these resorts would be something like this: ? ? ? ? ? Your meals would be completely organic, made from the vegetables and food crops grown in the organic farms of these resorts. The menu would comprise of items from local cuisine There wouldn?t be any conventional sources of energy and instead a combination of solar energy, gobar gas and kitchen waste would be used to light up the rooms. Tourists cannot take their laptops and other gadgets with them as the resort does not have any place for them Tourists can stay in rooms made out of bamboo poles,coir, palmyra leaves etc, The slightly adventurous ones can also stay in tree houses or even cave houses There is usually no room service as self sufficient, healthy living is encouraged
Certain hotels like Vyithri resort in north Kerala discourage the use of plastic bottles, with the exception of mineral water bottles. But even these will be prohibited once the resort?s mineral water plant gets operational and the water is bottled in glass bottles. Tourists are educated about organic farming, made to interact with the local people and pick up local customs and traditions.
Ecotourism Resources of India
The geographical diversity of India makes it home to a wealth of ecosystems which are well protected and preserved. These ecosystems have become the major resources for ecotourism.
Indian Ecosystems and Resources
? ? ? ? ? ? ? ? Biosphere Reserves Mangroves Coral Reefs Deserts Mountains and Forests Flora and Fauna Seas, Lakes and Rivers Caves
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Biosphere reserves are multi-purpose protected areas, for preservation of the genetic diversity and the integrity of plants, animals and micro-organism in representative ecosystems. There are seven such reserves in India at present ? ? ? ? ? ? ? Nilgri Nanda Devi Nokrek Great Nicobar Gulf of Mannar Manas Sunderbans
Promoting Ecotourism in India
The key players in the ecotourism business are governments at both levels, the local authorities, the developers and the operators, the visitors, and the local community. Each one of them has to be sensitive to the environment and local traditions and follow a set of guidelines for the successful development of ecotourism. In addition, non-governmental organisations and scientific and research institutions also have to play a key role in the development of ecotourism. A management plan for each ecotourism area should be prepared by professional landscape architects and urban planners, in consultation with the local community as well as others directly concerned. Integrated planning should be adopted to avoid inter-sectoral and cross-sectoral conflict. A first step should be to prepare 20-year Master Plans for each state. The architectural program for ecotourism centres should include controlled access points, roads, self-guided nature trails, transportation options, interpretation centres, signs, observation towers and adequate but unpretentious lodging and dining facilities, docks, garbage disposal facilities and other utilities as needed. If required, suitable living quarters and facilities for project personnel should be provided. The following is a list of actions for the development of ecotourism, where the responsibility is with the government.
Government Responsibilities for Ecotourism
? Regulate structures that create visual pollution, unaesthetic views and are non-compatible architecture; and encourage use of local building material and structures befitting the local environment Exclude developments in geologically unstable zones and define development and buffer zones after proper environmental impact assessments Establish and enforce standards, building codes and other regulations Specify environmental, physical and social carrying capacities to limit development Ensure continuous monitoring of adverse effects of tourism activities and initiate suitable corrective measures Recognise and award quality by accreditation of ecotourism operators
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Provide visitor information and interpretation services covering particularly what to see; how to see it; and how to behave. This can be by way of brochures, leaflets, specialised guides and visitor information centres Prepare and distribute codes of conduct to all visitors Launch training programs on ecotourism for tourism administrators, planners, operators and the general public
The Responsibilities of Ecotourists
? ? Help conserve habitats of flora and fauna as well as any site, natural feature or culture, which may be affected by tourism Make no open fires and discourage others from doing so. If water has to be heated with scarce firewood, use as little as possible. Where feasible, use kerosene or fuel-efficient wood stoves Remove litter, burn or bury paper and carry back all non-degradable litter Keep local water clean and avoid using pollutants such as detergents in streams or springs. If no toilet facilities are available, relieve yourself at least 30 metres away from water sources and bury or cover the waste Respect the natural and cultural heritage of the area and follow local customs Respect privacy of individuals and ask permission to take photographs of local inhabitants Respect holy places; do not touch or remove religious objects Strictly follow the guidelines for personal safety and security and always take your own precautions and safety measures
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Economic Impact on India by Tourism Industry
According to World Travel and Tourism Council Report for 2009, the economic impacts on India by the tourism industry are as follows:
GDP
The Travel &Tourism Industry is expected to contribute directly2.2% to Gross Domestic Product (GDP) in 2009 (INR1,165.4 bn or US$24.2 bn), rising in nominal terms to INR3,345.3 bn or US$61.0 bn (1.9% of total) by 2019.
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EMPLOYMENT
Travel &Tourism Economy employment is estimated at 31,105,000 jobs in 2009, 6.4% of total employment, or 1 in every 15.6 jobs. By 2019, this should total 40,037,000 jobs, 7.2% of total employment or 1 in every 13.8 jobs. The 12,875,000 T&T Direct Industry jobs account for 2.7% of total employment in 2007 and are forecast to total 15,952,000 jobs or 2.9% of the total by 2019.
VISITOR EXPORTS
Exports make up a very important share of Travel & Tourism's Contribution to GDP. Of India's total exports, Travel & Tourism is expected to generate 6.0% (INR811.9 bn or US$16.9 bn) in 2009, increasing to INR2,819.0 bn or US$51.4 bn (4.1% of total), in 2019.
Problems in Tourism Industry
The potential for growth and development of tourism in India is clearly immense. However, there is no denying the fact that India?s tourism industry is plagued with several problems, faced by both domestic and foreign tourists. Some of the problems are as follows: ? Excessive formalities are required for an issue of special permit to view restricted areas sites like Sunderbans
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Untrained Guides & Sherpas Lack of Infrastructure Roads, Flyovers, Telecommunication and Virtual Network Lack of facilities like availability of fresh water, clean restroom, hygienic food & beverages while travelling Danger of fraud, cheating, thefts or physical assault by antisocial elements Communication and culture problem which is precipitated by the lack of knowledgeable interpreters Lack of direction boards and other readily accessible portals of information during the journey Crowd control and management in festivals such as Kumbh Mela Chaos created by large number of tourist operators and agents Tourism itineraries that do not provide value for money. Unnecessary sites are added in the itinerary to extend the length of stay and increase the cost of package which is highly inconvenient for tourists Fear of diseases due to unsanitary conditions prevailing in most parts of the country
Apart from the above problems, the biggest challenge facing the tourism industry in India is the threat of terrorism. The tourism sector is witnessing a downturn due to the travel advisories being issued by various countries against India, recently for the terror attacks in Mumbai and in other destinations in the past. The attacks are expected to dent the image of 'Incredible India' and make it difficult for the 'brand' to achieve its goal of doubling tourist arrivals from last year's five million to ten million by 2010. Tourism figures may even regress, as it happened in Bali after the bombings in a nightclub in 2002 and the country lost more than one third of its tourism traffic overnight.
Effect of Terrorism on Tourism
The Mumbai terror acts have put an end to the tourism season, especially the inbound segment, as 22 foreign tourists were killed spreading a wave of fear among foreign nationals slated to visit India. Thus, Indian tourism sector and all players of the travel industry are now witnessing a flurry of booking cancellations by overseas visitors. Due to low volumes, few travel suppliers might consider a reduction in prices to attract business. On this, a Delhi based tour operator said, “The drop in prices will not bring in more volumes and I think the industry over the years has matured and has realized that dropping prices in many ways at the end of the day
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just harms all of us and it is still the same amount of business that is going to come in”, says Mukesh Jagga, President, Association of Domestic Tour Operators of India (ADTOI). Both leisure and business segments were hampered due to the economic downturn. The threat of terrorism will further slow down the leisure segment and to some extent business travel as well.
Effect of Swine Flu on Tourism
The recent spread of swine flu has struck another blow to the tourism industry. Swine flu has affected the whole country and domestic tourism business has been badly affected. People travelling to and fro from different parts of the country have postponed their trips because of swine flu. Regular business trips are still continuing and the number of cancellations from foreign clients is also not significant. However, with WHO raising its concern over increase in virus activity during monsoons, inbound tourism has dropped by almost 30 per cent. While Indian tour operators find their problems multiplying he only thing that they want in such a situation is for the media to not hype the situation. The extensive media coverage is creating a panic like situation among tourists which is often baseless. Due to the coverage from Pune, tourists have cancelled their bookings. There has been a similar effect on Rajasthan as well. The tourism industry in India's northwestern city of Jaipur, has taken a huge plunge. The industry has been registering huge losses due to swine flu, with around ten to fifteen percent of tourists either canceling or postponing their visit to the city.
Probable Solutions
Each of the above problems has to be dealt with carefully and solved eventually, for the unstinted growth of the tourism industry. Unnecessary bureaucratic complications should be avoided so that travel to remote and exotic destinations can be undertaken without any hassles. This can generate revenue for these locations and also aid in the development of the local communities. The local guides and sherpas should be trained by the state tourism bodies. The local youth in the tourist locations should be encouraged to enroll as interpreters and the required linguistic skills should be imparted to them. This will greatly aid foreign tourists. The government should undertake cleanliness drives, infrastructural development and provide a holistic hygienic travelling environment for all tourists. Vaccinations and medical facilities to combat indigenous diseases should also be readily available. The tourism sector as a whole needs superior administration and management, both at the central and the state level, so that tourists have an „Incredible? experience. To combat the threat of terrorism, the government should enhance security levels in the country and simultaneously communicate to other countries that India is a safe place to visit. Veena Patil, CMD, Kesari Tours Pvt. Ltd. is of the opinion that travel agents and tour operators should not worry and instead, believe that in the next six months tourists will gain confidence and the
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fortunes of the tourism industry will be revived. Meanwhile, travel trade can focus on domestic tourism as this segment has higher potential than inbound. Recently, the Ministry of Tourism (MoT) announced that most tourists currently travelling in India have not cancelled their travel plans. Talking about the recent feedback taken by MoT from various inbound tourists, Devesh Chaturvedi, Director, MoT said, “Most international tourists currently in India have not changed their travel plans and flown off. Instead tourists around India are expressing strong intention of continuing their itinerary in India.”. The international and national tourism offices of India Tourism are cracking every nut to change the perception of fear created by the influence maker – Media. India Tourism board in United Kingdom is planning to launch a campaign aimed at reassuring visitors that the country is safe following the attacks in Mumbai. A spokesperson from India Tourism, UK said, “We are in talks with MoT in India and local tour operators to launch the new ad campaign for rebuilding the India brand. The travel trade has till now not recorded any cancellations for travelling to India but are planning for a change in itinerary. We are in talks with the travel trade on national and international level for their support to rebuild the image of India as a safe tourist destination. We are working on several short term plans to reinforce the confidence of travelers travelling to India, but don?t want to disclose at this point of time about plans that are underway.” On similar note, Sujata Thakur, Regional Director – Western Region, India Tourism said, “Government has initiated few action plans in the right direction and we are looking forward for a positive outcome in tourism. We are going to work closely with travel trade to enhance the brand image of India as a secure tourist destination. That is our numero uno action plan right now” Whatever be the action plan of MoT, the tourism sector has to sustain the hard blow of terrorism. The terror attacks can happen anywhere in the world. It should be realized that the impact of terrorism on tourism is not limited to the trend in arrivals in a destination immediately following the occurrence of an incident, but extends to the „reaction to the reaction? of authorities and private sector tourism enterprises to the threat of terrorism. For example, restrictions on hand luggage in airports or the requirement for biometric passports might deter tourists as well. With regard to swine flu, the advent of vaccinations should improve the situation. Government as well as private hospitals should be equipped so as to provide the correct medication in case of disease detection.
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Conclusion
Tourism has proved to be an engine of growth in many economies in the world. It provides for the generation of income, wealth and employment, and helps in the sustainable development of remote areas. In India, tourism provides direct employment to 9 million people and indirect employment to another 13 million persons, thus providing a livelihood to 22 million persons. Tourism has proved to have negative impacts as well as the positive ones. It is criticised for contaminating indigenous culture. This takes the form of changing values, resulting in social maladies like drug addiction, child prostitution, etc. A far more widespread negative impact is caused by mass tourism in environmentally fragile areas like mountains, hills, deserts and coastal regions. Due to heavy tourist traffic in some areas, the cultural and environmental assets of the community are under threat. Although this phenomenon is not widespread in India, there is a need to take note of the possible negative influences of tourism so that timely preservation action can be taken and irreparable loss avoided. The movement towards ecotourism is at once a threat and an opportunity to create more sustainable tourism: by diverting tourist traffic to ensure the carrying capacity of any destination is not exceeded; by planning for regeneration of natural resources; and by generating awareness in the host community whereby they are prepared and forearmed to deal with the negative impact of mass tourism. As in most cases, a middle path is the most creative way to maximise the economic potential of tourism, while at the same time minimising the negative social influences and threats to the environment. Only ecotourism where the tourists, the service providers, the host community and authorities are well informed and prepared to harness tourism as an engine of growth can yield sustainable results.
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References
? ? ? ? ? www.incredibleindia.org www.india-tourism.com Pindyck Robert, Daniel Rubinfeld, Prem Mehta, Microeconomics, 6th edition, Pearson education Economic and Political Weekly Journals – Dec 2008 to June 2009 World Travel and Tourism Council Economic Impact Report, 2009
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