04 FTEHandicrafts

Survey of Foreign Tourists Expenses on Handicrafts
Ministry of Touriism & Cullture Ministry of Tour sm & Cu ture Government of Indiia Government of Ind a
October 2002
Economiic Serviices Group Econom c Serv ces Group
National Productiiviity Counciill National Product v ty Counc Lodhii Road,, New Dellhii - 110003 Lodh Road New De h - 110003
National Productivity Council, Lodhi Road, New Delhi- 110 003 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
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CONTENTS
Acknowledgement Study Team Executive Summary List of Tables
List of Figures
ii iii iv - v vi vii Page No
Chapter I Chapter II Chapter III
About the Survey Profile of Foreign Tourists Expenditure Pattern of Foreign Tourists Macro Economic Implications
1 9 15
Chapter IV
48
Annexure
53
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ACKNOWLEDGEMENT
The National Productivity Council (NPC) is grateful to the Department of Tourism, Ministry of Tourism and Culture, Government of India for entrusting NPC with the responsibility to carry out the Survey on Foreign Tourists Expenses on Handicrafts. We are thankful to Shri Amitabh Kant, Joint Secretary, Shri J. Dash, Joint DG (MR) and Shri D. D. Mathur , Dy. Director (MR) of Ministry of Tourism & Culture for their continuous encouragement during the conduct of the survey. We are also thankful to the officials of Airports Authority of India and Bureau of Civil Aviation Security for granting permission to carry out the survey inside the international airports at New Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad. We also record our thanks to the Central Cottage Industries Emporium as well as emporia run by various state governments in the six cities mentioned above for their kind co-operation in the smooth conduct of the survey. A large number of star hotels had helped us by allowing the survey team to contact foreign guests (tourists) at the exit lobbies. We are thankful to the managements of all these hotels. Lastly, a number of colleagues from NPCs regional offices in New Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad were involved in this task and without whose co-operation the survey could have not been completed within the short time at the teams disposal. We are thankful to them.
New Delhi 19th Dec., 2002
Dr. N. K. Nair Group Head (Economic Services)
STUDY TEAM Core Members

N. K. Nair Group Head (Economic Services)
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K. P. Sunny Dy. Director (Economic Services) Utpal Chattopadhyay Dy. Director (Economic Services) Rajesh Sund Asst. Director (Economic Services) D. J. Rao Asst. Director (Economic Services)
Survey Team
New Delhi Mumbai Kolkata
K. P. S. Tomer, Dy. Director Rajesh Bajaj, Dy. Director S. K. Dwivedi, Asst. Director D. Bandyopadhyay, Asst. Director M. Natarajan, Asst. Director S. Dey, Asst. Director
O. P. Joshi, Director M. Ashok, Dy. Director B. Badole, Asst. Director
S. Pal, Director P. Chakraborty, Dy. Director S. Mallick, Dy. Director Gautam Roy, Dy. Director
Bangalore
Chennai
S. Sivakumar, Dy. Director R. Rajhamany, Trg. Officer
V. Rajesh Dy. Director A.Muguntharagan, Asst. Director
Hyderabad
G. Hema, Dy. Director
Executive Summary
The Ministry of Tourism & Culture, Government of India assigned National Productivity Council (NPC) to carry out a Survey of Foreign Tourists Expenses on Handicrafts in India. The main objective of the survey was to find out how much the visiting foreign tourists spend on handicrafts (total & item-wise) while they stayed in India. The ultimate aim of this task was to construct the Craft/ Tourism Index (defined as per tourist per day expenditure on handicrafts) for India as suggested by the UNESCO. The field level survey was launched by NPC during Sept. Oct., 2002 in six major cities of India viz. New Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad. These cities act as the major arrival and exit points for an overwhelming majority of the foreign tourists visiting India. The foreign tourists leaving India through these six cities were approached with a structured questionnaire to gather information on their spending on handicraft items.
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About 47% of the total respondents were interviewed at the departure lounges of international airports and another 28% from the star hotels. The remaining (25%) tourists were contacted at the handicraft emporia/shops. Only those tourists who had completed their purchases from India were interviewed. The purchases on behalf of the companies the tourist(s) work are not considered in the survey. A total of 12,250 foreign tourists from the six cities were interviewed. Following are the major findings of the Survey: Respondent tourists from about 100 nations had visited India during the Survey. Among the tourists contacted during the survey, 58% are males and 42% females. About 70% of the respondents are in the age group 25-44 years. A large number of respondents (36%) are in business and more than one fourth (27%) are in service, while 10% are students. Income wise, 43% of the respondents belonged to more than average category and another 32% were average. Only 3% of the respondent tourists had very high income level and 2% belonged to the below average category. As observed in the survey, the highest inflow of tourists was from USA (11%), followed by UK (10%), France (7%), Japan (7%), Germany (6%) and Australia (5%). The average duration of stay by a respondent foreign tourist is 20 days. The student tourists and tourists below 25 years of age had spent the highest number of days. Tourists with very high income stayed for the shortest duration. According to survey findings, on an average a foreign tourist spends about Rs. 12,187 on handicrafts. The female tourists spent more than their male counterparts. Income level of the respondent tourists has a direct relationship with expenditure. Profession wise business persons are spending more on handicrafts than the others. Silk is the most bought (value) item among the handicrafts, as 23% of the total expenditure was on this product alone. Other handicraft items of high values bought by respondent tourists include metal & jewellery, cotton & wool textiles and leather products. In terms of per capita daily expenditure the expenses on handicrafts had shown an increasing trend among tourists aged between 25 and 54 years and it declined there after. The UNESCOs Craft/ Tourism Index is found to be Rs. 609 ( about US $ 13). Majority of the purchases were made using Indian Rupee. A sizeable number had used US Dollar and credit cards to finance handicraft purchases. The usage of Euro outnumbered Pound Sterling. Americans as a group spent the highest amount on
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handicrafts, contributing 18% of the total expenses. Tourists from UK, France, Australia, Germany, Canada etc. had also spent significant amounts on handicrafts in India. These are also among the major export destinations for Indian handicrafts. Total expenditure on handicrafts by all the foreign tourists has been estimated at Rs. 29,851.54 million in 2001, which constitutes about 18% of the total value of production of handicraft items in India in 2001-02. This also forms approximately 44% of the total handicrafts exports (excluding hand knotted carpets) from India during the year 2001-02. The amount spent on handicrafts by foreign tourists can be considered as deemed export of handicrafts.
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List of Tables Title City and location wise Distribution of Survey Tourists Age & Sex Profile of Foreign Tourists contacted during the Survey Distribution of Respondents acc. to Profession Distribution of Respondents acc. to Income Distribution of Respondents acc. to Days of Stay in India Distribution of Respondents acc. to Country of Origin Distribution of tourists (%) acc. to number of days stayed and age Distribution of tourists (%) acc. to number of days stayed and sex Distribution of tourists (%) acc. to number of days stayed and profession Distribution of tourists (%) acc. to number of days stayed and income Distribution of tourists (%) acc. to number of days stayed and city of exit Total expenditure on handicrafts by Respondents Pag e No. 4 9 10 11 12 13 25 26 27 28 29 30
Table No. Table 1.1 Table 2.1 Table 2.2 Table 2.3 Table 2.4 Table 2.5 Table 3.1 Table 3.2 Table 3.3 Table 3.4 Table 3.5 Table 3.6
Table 3.7 Table 3.8 Table 3.9 Table 3.10 Table 3.11 Table 3.12 Table 3.13 Table 3.14 Table 3.15 Table 3.16 Table 3.17 Table 3.18 Table 3.19 Table 3.20 Table 3.21 Table 3.22 Table 3.23 Table 4.1 Table 4.2 Table 4.3 Table 4.4
Item wise total expenditure on handicrafts by Respondents Distribution of Respondents (%) acc. to total expenditure and age Distribution of Respondents (%) acc. to total expenditure and sex Distribution of Respondents (%) acc. to total expenditure and profession Distribution of Respondents (%) acc. to total expenditure and income Distribution of Respondents (%) acc. to total expenditure and city of exit Distribution of Respondents acc. to per capita exp. & no. of days stayed Distribution of Respondents acc. to per capita daily exp. on handicrafts Distribution of Respondents (%) acc. to per capita daily expenditure and age Distribution of Respondents (%) acc. to per capita daily expenditure and sex Distribution of Respondents (%) acc. to per capita daily expenditure & profession pprofessionprofession Distribution of Respondents (%) acc. to per capita daily expenditure and income Distribution of Respondents (%) acc. to per capita daily exp. & city of exit Total expenditure on handicrafts acc. to nationality of respondents Top ten spending nations on Indian handicrafts Country wise product wise expenditure on handicrafts by respondents Currencies used by respondents for purchase of handicraft products Movement of WPI: Oct. 2001 to Oct. 2002 Estimate of total expenditure on handicrafts by foreign tourists Turnover of Indian handicrafts industry Exports of handicrafts from India: 1992-93 to 2001-02 (Rs. Crores)
31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 49 50 51 52
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Figure No.
List of Figures Title
Pag e No.
Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Figure 8
Distribution survey respondents based on place of Interview Distribution respondents based on City Distribution of tourists based on Profession Distribution of tourists based on Country of Origin (top ten countries) Distribution of respondents based on per capita Expenditure class Per Capita Daily Expenditure and Age Per Capita Daily Expenditure and Profession Per Capita Daily Expenditure and Family Income
5 6 10 14 19 20 21 22
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CHAPTER I ABOUT THE SURVEY 1. Background
India draws more than 2.5 million foreign tourists annually. The primary factor that motivates majority of the foreign tourists to visit India is the countrys bountiful nature, snow-covered mountains in the Himalayas, colorful deserts in Rajasthan, beautiful beaches in Goa, Kerala and Orissa and tropical lush green forests spread far and wide in most parts of the country. Beside the nature, the countrys rich cultural heritage has been a tremendous attraction to a large number of foreign visitors. The diversity in climate, religion, language and traditions has always been a matter of curiosity for the people of other countries. So are Indias exquisite
handloom and handicraft products, which are admired by the foreign tourists. Purchase of Indian handicrafts is therefore a common practice generally noticed among the visiting foreigners. The handicrafts industry in India occupies an important place in the national economic scene. Firstly, the sector provides direct and indirect employment to a large number of persons like the artisans and also those who are engaged in the supply of inputs and in trading. According to an estimate, handicrafts industry currently employs more than 76 lakh persons in India. Besides high employment potential, the significant contributions of the sector are felt in terms of high value addition from a relatively low capital investment and a steady source of foreign exchange earnings. Available data from Export Promotion Council for Handicrafts show, in 2001-02, total exports of handicrafts (excluding handknotted carpets) from India stood at Rs.6769.50 crores. The economic importance of handicrafts sector is also evident from the huge size of this industry. Turnover of the handicrafts industry, as estimated by Development Commissioner for Handicrafts, is in the range of Rs. 16,320 crores in 2001-02.
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In this background the Department of Tourism, Government of India, had assigned National Productivity Council (NPC) to carry out a survey of foreign tourists in order to find how much the tourists spend on handicrafts during their stay in India. The ultimate outcome of the survey is to facilitate construction of the Craft/ Tourism Index for India as has been suggested by the UNESCO. The Index would find the expenses on crafts per tourist per day (in US $) of the foreign visitors to India. The present report from NPC is the result of the above mentioned survey of foreign tourists. 2. Objectives of the Study To identify the handicraft products/ items purchased by foreign tourists To find out the total expenditure incurred by foreign tourists on handicraft products during their stay in India To find the currencies used for the purchase of such items To find country of origin, age & sex profile, occupation and family income of the foreign tourists To construct the UNESCO Crafts/ Tourism Index for India
3.
Methodology
The survey used the same definition of foreign tourists followed by the Department of Tourism, Govt. of India while compiling tourist statistics. According to this
definition a foreign tourist is a person visiting India on a foreign passport, staying at least 24 hours in the country for the purpose of (i) leisure (recreation, holiday, health, study, religion and sport); (ii) business, family, mission and meeting. Transit passengers not staying at least a day in India were not covered by the survey. Similarly, minor children accompanying the adult family members (foreign tourists) were not considered for the survey. NRIs were also excluded from the scope of the survey
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The foreign tourists visiting India were interviewed from three places viz. (i) international airports, (ii) hotels and (iii) shopping complexes, particularly the handicrafts emporia and similar establishments selling handicraft items. As mentioned at the outset, India receives about 2.5 million foreign tourists every year. Keeping in view the time and cost constraints of the survey, it was decided that about 0.5% of the total foreign tourists coming to India annually i.e. approximately 12,000 tourists would be interviewed. A large number of foreign tourists were
approached randomly from the above three places for data collection through a structured questionnaire. The questionnaire sought information mainly on tourists purchase of handicraft items (quantity & value) during their stay in India apart from some personal data on tourists like the country of origin, age, sex, income etc. The business purchases, defined as purchases on behalf of companies they represent were excluded. A copy of the questionnaire used for canvassing during the field survey is appended in Annexure. It is important to note that the purchases of items by the tourists were not necessarily from the city in which they were contacted. This is especially the case in regard to those who were contacted at the international airports. The items might include those which were bought during their travel anywhere in the country including the major handicrafts centers.
3.1
Field Survey
During the field survey about 12,250 foreign tourists were interviewed by the NPC survey team, against the target of 12,000. The survey was conducted during Sept. 11 Oct. 25, 2002, simultaneously in six major cities of India namely New Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad. About 47% of the total
contacts were made in the international airports of the six cities mentioned above, while the remaining interviews were held in the hotels (28%) and shops/ emporia (25%) (Fig.1). In the airports the tourists were interviewed at the departure lounges and in hotels the contacts were at check-out points. In the handicraft emporia and other shops selling handicraft products only those foreign tourists were interviewed whose departure from India was scheduled within the next twenty-four hours. In all
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the cases, first it was ascertained whether the tourists purchase of handicrafts was complete and data were gathered only from those who had completed purchase from India. The distribution of respondents across the cities (Fig. 2) and the place of contact are given in Table 1.1. Table1.1: City & Location wise Distribution of Survey Respondents
Airports City Target New Delhi Mumbai Chennai Kolkata Bangalore Hyderabad Total 2400 1800 960 420 240 180 6000
Hotels
Shops/Emporia
Total
AchieveAchieveAchieveAchieveTarget Target Target ment ment ment ment 2399 1826 962 185 267 158 5797 1200 900 480 210 120 90 3000 1709 883 427 200 124 102 3445 1200 900 480 210 120 90 3000 1250 903 407 220 128 100 3008 4800 3600 1920 840 480 360 12000 5358 3612 1796 605 519 360 12250
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Figure 1: Distribution of Survey Respondents based on Place of Interview
Market 25% Airports 47% Hotels 28%
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Figure 2: Distribution of Respondents based on City
Bangalore 4% Kolkata 5%
Hyderabad 3%
New Delhi 44%
Chennai 15%
Mumbai 29%
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There have been some minor variations in the number of tourists responding to the survey among the cities as well as across places of contact when compared to the targets set. While in Delhi, Mumbai and Bangalore the total number of respondents exceeded the targets, in two of the remaining cities, viz. Chennai and Kolkata the achievement fell short of their respective targets. In Hyderabad, however, the survey team could achieve the targets. Similarly, the number of contacts inside airports fell marginally below its target, which was fixed at 50% of the total. That the inflow of foreign tourists during the period of survey was found to be less than expected in some of the cities was the main reason for not mustering the required number in these places. 3.2 Data Analysis
Data collected through the structured questionnaire were scrutinized thoroughly before being entered into computer systems. Such data were once again checked to detect possible entry errors. Finally, corrected data were analyzed by computers using Microsoft Excel and SPSS packages. 4. Limitations
Progress of the survey was affected adversely by a number of factors, most of which are beyond the control of the survey team. Firstly, the survey was conducted during middle of Sept. and October, which is generally considered to be a lean season in India for foreign tourists. The inflow of foreign tourists was further low on account of the anticipated disturbances during the anniversary of the Eleventh Sept. incident in New York. The disturbance in Karnataka as a sequel to abduction of a political leader by the notorious sandal wood smuggler and subsequently the Cauvery disputes affected tourist inflow to Bangalore unfavorably. As a result, contacts with adequate number of tourists in Southern locations where, interviews were held, were unfavorably affected leading to delays in the completion of the survey.
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Secondly and perhaps most importantly was the delay in the procurement of entry passes for airports. As per plan, 50% of the total contacts were scheduled to be made in the departure lounges of international airports. The international airports being high security zones, issue of entry passes involved procedures and scrutiny by the Airports Authority of India. Therefore, the survey team had to wait for some time after completing its job in the shops and hotels. The permission to carry out the survey inside airports was granted only for one week, which was short considering the large number of tourists to be interviewed, particularly in places like Delhi and Mumbai.
Finally, the availability of foreign tourists for interview was constrained by the time at their disposal, compatibility of language and also willingness to co-operate by the tourists. All tourists contacted by the team did not agree for the interview for a variety of reasons. Some of the tourists contacted during the survey though provided total expenses on handicrafts, could not recollect its item wise break -ups. All these made the task of the investigation difficult and also delayed the completion of survey by a few days.
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CHAPTER II PROFILE OF FOREIGN TOURISTS
As mentioned in the earlier chapter the Survey had covered a total of 12250 foreign tourists from six cities. Among these, 7145 (58%) were males and the remaining 5105 (42%) were females. The age distribution of the respondent tourists displays a skewed pattern with more than 70% of them falling in the range of 25-44 years of age. Table 2.1 shows the age and sex distribution of the foreign tourists contacted
during the survey.
Table 2.1 : Age & Sex Profile of Foreign Tourists Contacted during the Survey
Age (Years) Less than 25 25-34 35-44 45-54 55-64 65 & above Total
No. of respondents Male Female 535 2090 2997 1192 268 63 7145 602 2025 1724 530 164 60 5105
Total No. Percent 1137 4115 4721 1722 432 123 12250 9.28 33.59 38.54 14.06 3.53 1.00 100.00
The visiting tourists were asked about their professions. It was found that a large number of respondents (36%) are business men/women. While 27% of them are in service, more than 10% are found to be students. The break up of professions of the foreign tourists interviewed during survey is given in table 2.2 (Fig. 3).
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Table 2.2: Distribution of Respondents According to Profession.
No. of Profession Service Business Industry Agriculture Students Others Total Respondents 3361 4456 850 150 1247 2186 12250
Percentage of Respondents 27.44 36.38 6.94 1.22 10.18 17.84 100.00
Figure 3: Distribution of Respondents based on Profession

18% 28% Service Business Industry Agriculture Students Others 36%
10% 1% 7%
The respondent foreign tourists were also arranged according to their income levels. Income, being a highly personal and hence very sensitive information, the tourists were asked to categorize themselves in to Below Average, Average, More than Average, High and Very High. Since no uniform norm can be applied to all the countries having widely varying per capita GDP, the information on income was collected according to the respondents own judgment with respect to his/her own countrys situation. It was observed that among the foreign tourists interviewed, the
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highest number (43%) was from the more than average category. More than 3960 (about 32%) respondent tourists reported that they had only average income.
About 20% of the them were from the high income category. Only 2% of the respondents had below average income and about 3% belonged to the very high income category (Table 2.3).
Table 2.3 : Distribution of Respondents According to Income
Income Group Below Average Average More than Average High Very High Total
No. of Percent of Respondents Respondents 271 3962 5240 2458 319 12250 2.21 32.34 42.78 20.07 2.60 100.00
It was found that about 33% of the foreign tourists responding to the survey had spent a week or less in India and another 27% had stayed for periods ranging between 8 days and two weeks. About 28% of the visiting foreigners had spent between 15 days and one month. Only 10% of the respondents had stayed beyond one month and up to 90 days, while about 2% had spent above 90 days. Detailed information on the number of days spent by foreign tourists is presented in table 2.4.
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Table 2.4 : Distribution of Respondents According to Days of Stay in India
Days Stayed (No.) 1-2 3-7 8-14 15-20 21-30 31-45 46-90 91-180 181 & above Total
No. of Respondents 439 3638 3279 2017 1469 692 496 137 83 12250
Percent of Respondents 3.58 29.70 26.77 16.46 11.99 5.65 4.05 1.12 0.68 100.00
The respondent tourists were asked about his/her country of origin. It was observed during the survey that India respondent tourists came from a large number of countries spread almost in all the continents. During the 45 days of survey it was found that foreigners from more than 100 countries had visited India. The maximum inflow of tourists, as observed in the survey, was from USA (10.87%), followed by UK (9.98%), France (7.40%), Japan (6.91%), Germany (6.00%) and Australia (5.03%). The names of the countries and the number of foreigners coming from those countries are given in Table 2.5 (Fig. 4).
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Table 2.5 : Distribution of Respondents According to Country of Origin
Country
Foreign Tourists No. % age 10.87 9.98 7.40 6.91 6.00 5.03 4.64 3.71 3.11 2.83 2.16 2.10 2.04 1.98 1.98 1.86 1.70 1.51 1.44 1.43 1.16 1.05
Country
Foreign Tourists No. % age 1.04 0.98 0.98 0.96 0.84 0.81 0.80 0.80 0.72 0.65 0.62 0.60 0.59 0.50 0.47 0.44 0.41 0.40 0.39 0.38 0.37 5.38
USA UK France Japan Germany Australia Sri Lanka Italy Singapore Korea Spain Canada Malaysia Netherlands China Russia Switzerland South Africa Thailand UAE Israel Indonesia Total
1331 1223 907 846 735 616 568 454 381 347 265 257 250 243 242 228 208 185 176 175 142 129
Nepal New Zealand Denmark Belgium Nigeria Kenya Ireland Sweden Taiwan Bangladesh Poland Finland Norway Brazil Philippines Hong Kong Saudi Arabia Mexico Mauritius Iran Austria Others
127 120 120 117 103 99 98 98 88 80 76 73 72 61 58 54 50 49 48 47 45 659
12250 100.00
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Figure 4: Distribution of Respondents based on Country of Origin (Top Ten Countries)

Korea Singapore Italy Country of Origin Sri Lanka Australia Germany Japan France UK USA 0 200 400 347 381 454 568 616 735 846 907 1223 1331 600 800 1000 1200 1400
Number of Tourists
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CHAPTER III EXPENDITURE PATTERN OF FOREIGN TOURISTS
During the survey the concentration was on to collect information regarding spending on handicraft items by the visiting foreign tourists during their stay in India. The information sought from the foreign tourists included number of items bought, amount spent on a variety of handcraft products etc. For smooth data collection and analysis handicraft items were grouped into 12 major heads viz. textiles, clay, bamboo/rattan, wood, metal & jewelry, natural fiber, leather, paper & paper products, glass, local raw materials, mixture of raw materials and others. The textiles comprised silk, cotton, wool and others. As mentioned earlier, the company or business purchases of the foreign tourists were not considered for data collection and analysis.
In this chapter the expenditure by foreign tourists on handicrafts would be examined with respect to a number of determinants such as the age, sex, profession, income, city of exit and duration of stay. The total as well as per capita daily expenditure incurred by the tourists on handicrafts are worked out separately and arranged according to the determinants mentioned above so as to examine their influence, if any, on the expenditure patterns. The duration of stay by the tourists is also examined with respect to age, sex, profession, income and city of exit.
3.1
Period of Stay in India
The information on number of days stayed by the tourists according to their age, sex, profession, income etc. are presented in tables 3.1-3.5. The following may be observed:
On an average a respondent tourist had spent about 20 days in India.
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The highest number of days is spent by respondent tourists below 25 years of age, while for those belonging to 35-44 years category the duration of stay in India is the lowest (17 days). Tourists in the age group 55-64 years stayed for about 25 days.
The duration of stay in India was marginally higher for female tourists (20.33 days) compared to their male counterparts (19.92 days).
The student tourists spend more days (34) than the others. The agriculturists and industrialists had stayed in India for longer duration compared to businessmen and from service sectors.
The income level of the respondent tourists and their stay duration are seen to have inverse relationship. Tourists having below average income had on an average spent the highest number of days (33), while the tourists from very high income category stayed for lower number of days (17). Most of the below average category of respondents are the students. Since Indias is one of the lowest cost of living by world standards, even the below average income tourist (according to the income standards in his country) will be able to afford a comfortable stay in the country.
3.2
Total Expenditure by Tourists
Total expenditure on handicrafts varied widely across the categories of tourists. While 426 (3.48%) tourists did not buy any handicraft item, about 811 (6.63%) had spent over Rs. 25,000 on various handcraft items during their stay in India. The modal expenditure class is found to be Rs. 2,001 -5,000. About one fifth of the total tourists interviewed during the survey had incurred total expenditure exclusively on handicraft items beyond Rs. 5,000 and up to Rs. 10,000. A small percentage (1.44%) of the tourists had bought handicrafts worth Rs. one lakh or more (Table
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3.6). Collectively 12250 respondent tourists had spent a total of Rs. 149.30 million on handicrafts during their stay in India. The per capita expenditure is found to be Rs. 12,187.
3.3
Item-wise Expenditure
Item wise spending also displays large variance. Among the 12 groups of handicrafts listed earlier, the highest spending was on silk products (23.13%), followed by metal & jewelry (19.97%), cotton textiles (15.75%), wool textiles (6.19%) and leather products ( 5.75%). There was low spending on items like natural fiber (0.43%), glass (0.60%), bamboo products (0.64%) and mixture of items (0.89%). The detailed data on handicraft items and the amount spent on those items by foreign tourists are given in Table 3.7. The data presented in this table do not relate to all the tourists interviewed during the survey, since about 1000 respondents could not provide item wise break-up of their expenditure even though they could give the total expenses on handicrafts.
3.4
Average Expenditure Per Tourist
Tables 3.8 3.13 present per capita expenditure incurred by foreign tourists arranged according to the age, sex, profession, income, number of days stayed and city of exit. The following may be noted:
Per capita expenditure per respondent tourist is the highest in the age group 45-54 years (Rs.16333), followed by the age group 35-44 years (Rs.12686) and 25-34 years (Rs.11655). Per capita expenditure was the lowest in the age group 65 and above.
Female tourists spend (Rs.12897) more than their male counterparts (Rs.11680).
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Business tourists spend the highest on handicrafts (Rs.17392) among all categories of respondents. Industrial categories of tourists spend much less (Rs.11703), followed by agricultural tourists (Rs.9978) and tourists from service category (Rs.9902). As expected student tourists incur an
expenditure only of Rs. 4893 on handicrafts in per capita terms.
Per capita expenditure is directly related to income categories. While those in the below average income bracket incurred an expenditure of Rs.6472, high and very high categories reported high levels of expenditure on handicrafts, between Rs. 18242 and Rs.33171.
Per capita expenditure was found to be the highest among those who stayed beyond two weeks but up to three weeks (Rs.18755).
3.5
Per Capita Per Day Expenditure
As per the survey data, respondent tourists stay in India varied from one day to more than six months. The purchases of handicraft items also varied widely, ranging from zero to more than one lakh rupees. Table 3.14 presents per capita per day expenditure by respondent tourists. It can be seen that 3673 tourists (30%) had spent between Rs. 250 and Rs. 750 per day on handicraft products (Fig. 5). About 20% of them had spent above Rs. 100 and up to Rs. 250 and almost an equal number (18%) spent between Rs. 750 and Rs. 2000 per day. More than 3% of the tourists had incurred expenditure on handicrafts exceeding Rs. 5000 per day. UNESCOs Craft/ Tourism Index defined as expenses on handicrafts per foreign tourist per day is found to be Rs. 609 (approx. US $ 13 1).
Exchange Rate 1US$ = Rs. 48.30 as on Oct. 2002
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Figure 5: Distribution of Respondents based on Per capita Expenditure Class Number of Tourists
4000 3000 2000 1000 0

50 .1 -1 00 10 0. 125 0 25 0. 175 75 0 0. 120 20 00 00 .1 -5 50 00 00 0 .1 -1 50 15 00 00 0. 1 & > N o Sp en d. 150
Expenditure Class
It would be worth to see whether the daily expenditure on handicrafts had varied across age, sex, profession, income level of the respondent tourists. The information on daily expenditure with respect to the above determinants is listed in tables 3.15 3.19 (also Figs. 6-8). The main findings, which are in conformity with the trend observed in case of total expenditures, are as follows:
In all age categories the maximum number of respondent tourists belonged to the daily expenditure class ranging between Rs. 250 and Rs. 750 per day, except in the case of less than 25 and 65 & above slabs where people are seen spending over Rs. 100 and up to Rs. 250 per day.
Daily expenditure had shown an increasing trend for tourists having age between 25 and 54 years, after which it started declining.
Like total expenditure, the daily expenditure also increased with rise in the income of the tourists.
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In terms of profession too, the tourists daily expenses on handicrafts repeated the same trend as that of the total expenditure. Businessmen spent the most, while students spent the least. Service professionals and industrialists had spent almost same amount and it was higher than the amount spent by agriculturists and others.
Figure 6: Per Capita daily Expenditure and Age 900 800 700 Daily Expenditure (Rs) 600 500 400 300 200 100 0 >25 25-34 35-44 45-54 55-64 65 & > Age group
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Figure 7: Per Capita Daily Expenditure and Profession
1200 Daily Expenditure (Rs) 1000 800 600 400 200 0

In du st ry ce ltu re Bu si ne ss St ud en ts Se r Ag ric u O th er
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vi
Profession
Figure 8: Per Capita Daily Expenditure and Family Income

2500 Daily Expences (Rs) 2000 1500 1000 500 0 Below Average Average More than Average High Very High
Family Income
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3.6
Nationality wise Expenditure
The survey data on expenses on handicrafts were organized according to the nationality of the tourists. It was observed that US nationals have spent the highest amount (Rs. 26.76 million) on Indian handicrafts and their combined expenditure formed about 18% of the total expenditure on handicrafts by all the 12,250 visiting foreign tourists interviewed during the survey. The other higher spenders include nationals from U.K. (12%), France (8%), Australia (6%), Germany (5%), Canada (4%) etc. Tourists from U.A.E., Italy, Japan and Switzerland reported a reasonably high level of expenses with each country having a share of about 3% in total expenditure. While for seven countries (Singapore, Sri Lanka, Netherlands, Nigeria, South Africa, Ireland & Korea) the share in total expenses was 2% each, another nine countries (Malaysia, Spain, China, Belgium, Denmark, Russia, Indonesia, New Zealand & Saudi Arabia) had a share to the tune of 1%. Table 3.20 lists nationality wise total as well as per capita expenditure on handicrafts by foreign tourists from 26 leading nations (each having a share of 1% or more in total expenses). According to survey findings, these 26 countries collectively contributed more than 80% of both the total expenses on handicrafts and total tourists inflow in India.
The expenditure pattern of foreign tourists discussed above is in conformity with the trend in total export of handicrafts from India. It may be noted that during 2001-02, USA was the major destination for Indian handicrafts exports with a share of 30% of the total value (excluding hand knotted carpets). The other countries having significant share in Indian handicrafts exports include UK (11%), Germany (10%), France (5%), Italy (4%), Japan (4%), Canada (3%) and Australia (2%). As may be noticed from table 3.21 these eight countries absorbing 69% of total handicraft exports from India are the same nations whose citizens had contributed major part of the total amount spent (59%) on handicraft products while on tour to India.
Page- 31
In terms of per capita expenditure, however, the highest spenders on handicrafts are found to be the tourists from UAE (Rs. 28,376), followed by Saudi Arabia (Rs. 26,955), Nigeria (Rs.25073), Ireland (Rs. 24687) and Canada (Rs. 21,204). The US tourists who had the highest share (18%) in total expenses reported much less per capita expenditure (6th rank). The Japanese tourist was seen to incur the least expenses (Rs. 5249) on handicrafts. Tourists from ten nations (Indonesia, New Zealand, Singapore, Malaysia, China, Spain, Russia, Korea, Sri Lanka & Japan) had reported per capita expenditures, less than the average for all countries, Rs. 12,187 (table 3.20). The product wise expenditures by foreign tourists from the same 26 nations are presented in table 3.22. The data in this table represent the percentage(s) of the total expenditure (on handicrafts) a respondent tourist spends on a particular item. It can be seen from the table that silk, metal & jewelry, cotton textiles, leather products and wool textiles remained the most bought handicraft items by the foreign tourists visiting India irrespective of their country of origin. For tourists from South Africa, Belgium, Sri Lanka, Nigeria and Italy silk alone contributed more than 30% of their total expenditures on all handicrafts. The UAE tourists had a strong preference for Indian cotton textiles as they incurred more than 60% of their total expenditure on this item. Similarly, nationals from Switzerland and Nigeria also displayed preference for cotton textile (handicraft) products from India. Metal & jewelry items were bought in high values (forming 25% or more of the total purchase) by tourists from the Netherlands (55%), Russia (34%), Canada (29%) and France (26%). 3.7 Currency Used
During the survey the foreign tourists were asked to provide information on currency used by them while purchasing various handicraft items in India. The summary of information on currency used is presented in table 3.23. It can be seen that, as expected, Indian rupee (INR) was the main currency used by respondent tourists while buying the handcraft products. The next frequently used currency was the US dollar. In spite of being a relatively new currency Euro has outperformed Pound
Page- 32
Sterling in almost all products. A significant number of tourists are also seen to use credit cards at the time of purchase.
Table 3.1 : Distribution of Tourists (%) acc. to Number of Days Stayed and Age
Days Stayed (No.) 1-2 3-7 8-14 15-20 21-30 31-45 46-90 91-180 181 & above Total (Nos.) % to total Average
Age category (Years) <25 3.87 25-34 3.67 35-44 3.58 31.84 28.87 15.42 10.17 6.35 2.99 0.40 0.38 4721 38.54 17 45-54 3.60 27.64 27.00 18.41 11.50 6.16 3.89 0.99 0.81 1722 14.06 20 55-64 2.55 22.92 27.08 19.68 17.82 4.17 4.40 0.93 0.46 432 3.53 25 65 & above 1.63 19.51 29.27 17.07 25.20 4.07 1.63 0.81 0.81 123 1.00 19
Total (Nos.) 439 3638 3279 2017 1469 692 496 137 83 12250 100.00 20
25.15 30.38 21.99 25.47 16.71 16.43 12.23 13.22 5.19 8.97 4.22 1.67 1137 9.28 31 4.96 4.01 1.17 0.70 4115 33.59 20
Page- 33
Table 3.2 : Distribution of Tourists (%) acc. to Number of Days Stayed and Sex
Male 3.82 31.25 26.79 15.72 11.49 5.23 3.85 1.11 0.74 7145 58.33 19.92
Female 3.25 27.52 26.74 17.51 12.69 6.23 4.33 1.14 0.59 5105 41.67 20.33
Total (Nos) 439 3638 3279 2017 1469 692 496 137 83 12250 100.00 20.09
Page- 34
Table 3.3: Distribution of Tourists (%) acc. to Number of Days Stayed and Profession
Profession Days Stayed (No.) Service Business Industry Agriculture Students 1-2 3-7 8-14 15-20 21-30 31-45 46-90 91-180 181 & above Total (Nos.) % to total Average 3.48 31.48 26.78 15.86 11.13 6.22 3.84 0.80 0.42 3361 27.44 18 4.82 33.64 28.82 16.07 9.58 3.97 2.45 0.38 0.27 4456 36.38 16 2.59 19.06 25.65 17.06 17.88 13.06 3.29 0.71 0.71 850 6.94 24 2.00 16.67 24.67 25.33 16.67 7.33 4.00 2.00 1.33 150 1.22 25 2.17 23.82 21.65 16.84 14.27 6.82 8.18 4.01 2.25 1247 10.18 34
Others 2.52 27.31 26.08 17.15 14.32 4.53 5.58 1.56 0.96 2186 17.84 23
Total (Nos.) 439 3638 3279 2017 1469 692 496 137 83 12250 100.00 20
Page- 35
Table 3.4: Distribution of Tourists (%) acc. to Number of Days Stayed and Income
Annual Family Income Below More than Average Average Average 3.69 19.19 19.56 15.87 17.34 8.49 7.75 6.64 1.48 271 2.21 33 3.28 28.02 25.42 17.26 12.62 6.61 4.29 1.67 0.83 3962 32.34 22 3.49 31.37 26.85 15.90 11.79 5.08 4.26 0.73 0.53 5240 42.78 19 High 4.56 30.96 29.13 15.87 10.21 4.96 3.01 0.57 0.73 2458 20.07 18 Very High 1.25 22.26 30.09 21.00 16.61 5.96 2.51 0.31 0.00 319 2.60 17
Total (Nos) 439 3638 3279 2017 1469 692 496 137 83 12250 100.00 20
Page- 36
Table 3.5: Distribution of Tourists (%) acc. to Number of Days Stayed and City of Exit
City Delhi 5.34 37.20 23.89 10.36 9.63 8.29 4.37 0.63 0.30 5358 43.74 17 Mumbai Chennai Kolkata Hyderabad Bangalore 2.13 25.00 31.89 21.01 13.18 2.80 2.71 0.69 0.58 3612 29.49 19 2.17 29.06 25.28 19.77 13.47 2.23 3.84 2.45 1.73 1796 14.66 27 4.63 15.21 18.68 25.95 16.03 5.12 8.93 3.80 1.65 605 4.94 31 0.00 6.94 14.44 18.06 29.17 18.06 10.00 2.22 1.11 360 2.94 32 1.73 19.85 43.93 24.28 6.36 2.12 0.96 0.58 0.19 519 4.24 15
All India (Nos.) 439 3638 3279 2017 1469 692 496 137 83 12250 100.00 20
Page- 37
Table 3.6: Total Expenditure on Handicrafts by Respondents
Per Capita No. of Expenditure. Class Percent Respondents (Rs.) 1- 500 501-1000 1001-2000 2001-5000 5001-10000 10001-25000 25001-50000 50001-100000 100001 & above No spending Total 637 1000 1735 3335 2454 1852 475 160 176 426 12250 5.20 8.16 14.16 27.22 20.03 15.12 3.88 1.31 1.44 3.48 100.00
Average Exp. (Rs.) 343 813 1594 3475 7442 15629 34319 71066 335410 0 12187
Page- 38
Table 3.7: Item wise Expenditure on Handicrafts by Respondents
Item
Item wise Exp. (Rs)
Per % to total No.of Resp. capita Exp. incurred expenditure Exp.(Rs) 23.13 15.75 6.19 3.89 1.59 0.64 3.86 19.97 0.43 5.75 1.21 0.60 1.35 0.89 5.96 8.80 100.00 4661 4418 1760 1273 1514 672 2759 4935 556 3197 1321 787 840 409 3227 ** 12250
Textiles 34534294 7409 Silk 23506987 5321 Cotton 9239398 5250 Wool 5809262 4563 Others Clay 2377445 1570 Bamboo 953170 1418 Wood 5768142 2091 Metal & Jewellery 29807345 6040 Natural Fibre 644410 1159 Leather 8585426 2685 Paper & Paper products 1799247 1362 Glass 900364 1144 Local raw material 2011636 2395 Mixture of raw mater. 1336048 3267 Others 8891473 2755 Item break up not available 13131837 4129 Total Exp. 149296483 12187
** About 1000 respondents could not provide item wise expenditure
Page- 39
Table 3.8: Distribution of Respondents (%) acc. to Total Expenditure and Age
Per Capita Exp.Class (Rs.) 1- 500 501-1000 1001-2000 2001-5000 5001-10000 10001-25000 25001-50000 50001-100000 100001 & above No spending Total (Nos.) % to total
Age category (Years) <25 9.67 13.81 25-34 35-44 5.52 9.26 3.62 6.19 45-54 3.89 7.14 11.73 24.80 22.65 18.00 4.24 1.80 2.03 3.72 1722 14.06 65 55-64 & above 8.80 7.41 13.19 25.69 15.28 19.21 3.24 1.85 1.62 3.70 432 3.53 11092 19.51 12.20 17.07 19.51 12.20 4.88 0.81 0.81 0.00 13.01 123 1.00 3622 Total (Nos.)
637 1000 1735 3335 2454 1852 475 160 176 426 12250 100.00 12187
20.49 15.87 12.05 31.31 28.17 26.65 12.31 18.59 22.83 7.21 1.50 0.70 0.79 2.20 1137 9.28 12.47 18.17 3.77 1.46 1.39 3.52 4115 4.55 1.10 1.44 3.39 4721
33.59 38.54
Av. Expenditure 7106 11655 12686 16333
Page- 40
Table 3.9: Distribution of Respondents (%) acc. to Total Expenditure and Sex
Per capita Exp. Class (Rs.) 1- 500 501-1000 1001-2000 2001-5000 5001-10000 10001-25000 25001-50000 50001-100000 100001 & above No spending Total % to total Av. Expenditure
Male 5.25 8.26 14.11 27.92 20.14 14.14 3.15 1.27 1.47 4.30 7145 58.33 11680
Female Total (Nos) 5.13 8.03 14.24 26.25 19.88 16.49 4.90 1.35 1.39 2.33 5105 41.67 12897 637 1000 1735 3335 2454 1852 475 160 176 426 12250 100.00 12187
Page- 41
Table 3.10: Distribution of Respondents (%) acc. to Total Expenditure and Profession
Per Capita Exp.Class (Rs.) 1- 500 501-1000 1001-2000 2001-5000 5001-10000 10001-25000 25001-50000 50001-100000 100001 & above No spending Total % to total Av. Expenditure
Profession Service 5.83 9.16 15.56 28.53 20.35 12.50 3.33 1.04 1.22 2.47 3361 27.44 9902 Business 3.66 5.83 10.73 24.78 21.50 19.37 5.12 1.82 2.40 4.80 4456 36.38 17392 Industry Agriculture Students Others 4.35 7.41 14.59 25.29 22.59 15.76 4.71 1.88 1.06 2.35 850 6.94 11703 4.67 5.33 12.00 27.33 24.67 16.00 2.67 1.33 0.67 5.33 150 1.22 9978 8.34 13.63 20.53 32.88 13.23 8.26 0.88 0.32 0.24 1.68 1247 10.18 4893 5.95 8.74 15.37 27.72 19.12 14.09 3.66 1.01 0.69 3.66 2186 17.84 9593
Total (Nos.) 637 1000 1735 3335 2454 1852 475 160 176 426 12250 100.00 12187
Page- 42
Table 3.11: Distribution of Respondents (%) acc. to Total Expenditure and Income
Per Capita Exp. Class (Rs.) 1-500 501-1000 1001-2000 2001-5000 5001-10000 10001-25000 25001-50000 50001-100000 100001 & above No spending Total % to total Av. Expenditure
Annual Family Income Below More than Average Average Average 12.18 12.92 15.50 26.57 14.76 10.70 2.58 1.11 0.37 3.32 271 2.21 6472 6.94 10.12 19.28 32.00 15.90 9.41 1.92 0.71 0.81 2.90 3962 32.34 7456 4.54 7.73 12.96 26.95 22.23 16.03 3.68 1.11 1.30 3.47 5240 42.78 11943 High 3.42 5.66 9.36 21.72 23.03 21.28 6.27 2.16 2.40 4.72 2458 20.07 18242 Very High 2.19 6.27 6.27 15.36 16.61 27.27 14.11 5.64 5.02 1.25 319 2.60 33171
Total (Nos) 637 1000 1735 3335 2454 1852 475 160 176 426 12250 100.00 12187
Page- 43
Table 3.12: Distribution of Respondents (%) acc. to Total Expenditure and City of Exit
Per Capita Exp.Class (Rs.) 1- 500 501-1000 1001-2000 2001-5000 5001-10000 10001-25000 25001-50000 50001-100000 100001 & above No spending Total % to total Av. Expenditure
Delhi 3.17 5.58 12.34 29.38 21.87 17.34 4.16 1.01 0.65 4.50 5358 43.74 9765
All India Mumbai Chennai Kolkata Hyderabad Bangalore (Nos.) 7.78 12.32 16.39 26.58 16.89 10.83 3.57 2.05 2.91 0.69 3612 29.49 17680 5.18 7.29 15.14 27.95 21.10 13.20 2.56 0.56 0.17 6.85 1796 14.66 6524 12.89 14.21 23.64 27.60 9.09 4.96 1.32 0.33 0.50 5.45 605 4.94 4308 0.28 2.78 1.94 18.06 30.00 32.78 9.44 3.06 1.67 0.00 360 2.94 16939 2.70 5.59 11.56 12.91 25.05 28.32 6.74 1.73 4.62 0.77 519 4.24 24458 637 1000 1735 3335 2454 1852 475 160 176 426 12250 100.00 12187
City
Page- 44
Table 3.13: Distribution of Respondents acc. to Per Capita Expenditure and Number of Days Stayed
Per Capita Exp. Class (Rs.) 1- 500 501-1000 1001-2000 2001-5000 5001-10000 10001-25000 25001-50000 50001-100000 100001 & above No spending Total % to total
Days spent by tourists (No.) 1-2 3-7 8-14 15-20 21-30 31-45 46-90 91-180 3.20 8.20 5.40 8.97 4.63 7.01 3.32 5.64 5.85 10.08 8.87 4.38 9.49 12.41 27.74 16.79 18.25 5.11 1.46 1.46 2.92 137 1.12 9548 181 & above 7.23 2.41 10.84 20.48 27.71 21.69 6.02 1.20 1.20 1.20 83 0.68 11203 Total 637 1000 1735 3335 2454 1852 475 160 176 426 12250 100.00 12187
11.85 6.57 8.88 8.36
13.44 14.54 15.37 13.98 14.91 10.40
21.18 30.13 28.33 24.99 26.62 20.95 24.60 13.44 18.77 21.68 20.33 19.67 22.54 20.16 6.83 10.50 14.70 18.54 17.90 25.87 19.96 2.28 1.14 1.82 2.89 1.35 0.85 3.87 1.25 1.83 1.56 3.47 1.14 2.28 0.89 4.29 1.29 1.23 2.45 7.80 1.88 1.01 0.58 692 6.85 1.41 0.60 1.61 496 4.05
19.13 6.05 439
3638 3279 2017 1469
3.58 29.70 26.77 16.47 11.99 5.65
Av. Expenditure 9635 8969 12623 18755 11037 13616 10781
Page- 45
Table 3.14: Distribution of Respondents acc. To Per Capita Daily Expenditure on Handicrafts
Daily Exp. Class (Rs.) 1- 50 50.1-100 100.1-250 250.1-750 750.1-2000 2000.1-5000 5000.1-15000 15000.1 & above No Spending Total
Respondents No. 1113 1190 2420 3673 2251 769 266 142 426 12250 Percent 9.1 9.7 19.8 30.0 18.4 6.3 2.2 1.2 3.5 100.00
Page- 46
Table 3.15: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and Age
Daily Exp. Class (Rs.) 1- 50 50.1-100 100.1-250 250.1-750 750.1-2000 2000.1-5000 5000.1-15000 15000.1 & above No Spending Total (Nos.) % to total Av. Expenditure
Age category (Years) <25 21.46 16.27 23.13 22.52 9.76 2.64 1.50 0.53 2.20 1137 9.28 229 25-34 10.04 11.23 21.51 27.70 16.23 6.34 2.26 1.17 3.52 4115 33.59 583 35-44 5.27 7.82 17.73 32.79 22.22 7.31 2.39 1.08 3.39 4721 38.54 746 45-54 6.74 7.43 18.12 33.62 20.79 5.69 2.26 1.63 3.72 1722 14.06 817 55-64 13.43 8.56 20.60 29.63 13.43 7.87 0.69 2.08 3.70 432 3.53 444 65 & above 26.83 7.32 27.64 17.89 5.69 0.81 0.81 0.00 13.01 123 1.00 191
Total (Nos.) 1113 1190 2420 3673 2251 769 266 142 426 12250 100.00 609
Page- 47
Table 3.16: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and Sex
Daily Exp.Class (Rs.) 1- 50 50.1-100 100.1-250 250.1-750 750.1-2000 2000.1-5000 5000.1-15000 15000.1 & above No Spending Total (Nos.) % to total Av. Expenditure
Male 8.83 9.36 19.73 30.52 18.07 5.93 2.11 1.13 4.30 7145 58.33 586
Female 9.44 10.21 19.78 29.23 18.81 6.76 2.25 1.19 2.33 5105 41.67 634
Total (Nos) 1113 1190 2420 3673 2251 769 266 142 426 12250 100.00 609
Page- 48
Table 3.17: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and Profession
Profession Daily Exp.Class (Rs.) Service Business Industry Agriculture Students Others 1- 50 50.1-100 100.1-250 250.1-750 750.1-2000 2000.1-5000 5000.1-15000 15000.1 & above No Spending Total (Nos.) % to total Av. Expenditure 8.99 10.24 20.83 33.23 16.69 4.67 1.96 0.92 2.47 3361 27.44 550 4.40 6.17 16.02 30.23 24.28 9.00 3.19 1.91 4.80 4456 36.38 1087 9.65 11.29 21.88 30.71 15.88 4.94 2.47 0.82 2.35 850 6.94 488 7.33 9.33 30.67 26.67 14.00 5.33 0.67 0.67 5.33 150 1.22 399 20.77 17.56 24.62 22.61 9.62 2.57 0.48 0.08 1.68 1247 10.18 144 12.03 11.07 21.36 28.64 15.19 5.90 1.37 0.78 3.66 2186 17.84 417
Total (Nos.) 1113 1190 2420 3673 2251 769 266 142 426 12250 100.00 609
Page- 49
Table 3.18: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and Income
Annual Family Income Below More than Average Average Average High Very High
Daily Exp.Class (Rs.) 1- 50 50.1-100 100.1-250 250.1-750 750.1-2000 2000.1-5000 5000.1-15000 15000.1 & above No Spending Total (Nos.) % to total Av. Expenditure
Total (Nos)
26.94 12.92 19.56 20.30 8.49 6.27 1.48 0.74 3.32 271 2.21 196
12.92 13.48 23.60 30.09 11.81 3.26 1.31 0.63 2.90 3962 32.34 339
7.65 8.84 19.83 29.43 20.92 6.81 2.02 1.03 3.47 5240 42.78 629
4.64 5.49 14.44 32.55 23.60 8.99 3.54 2.03 4.72 2458 20.07 1013
4.08 7.21 11.91 26.33 26.33 14.11 5.33 3.45 1.25 319 2.60 1951
1113 1190 2420 3673 2251 769 266 142 426 12250 100.00 609
Page- 50
Table 3.19: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and City of Exit
Daily Exp.Class (Rs.) 1-50 50.1-100 100.1-250 250.1-750 750.1-2000 2000.1-5000 5000.1-15000
City Delhi Mumbai Chennai Kolkata Hyderabad Bangalore 6.25 5.82 17.25 32.40 23.44 7.63 1.98 11.21 14.34 23.09 26.97 13.51 5.18 2.66 2.35 0.69 3612 29.49 931 10.36 10.24 20.04 32.02 14.64 4.06 1.56 0.22 6.85 1796 14.66 242 25.62 19.34 25.29 17.36 3.97 1.98 0.99 0.00 5.45 605 4.94 139 5.28 7.50 20.56 33.06 23.33 9.17 0.83 0.28 0.00 360 2.94 529 2.50 6.17 14.45 31.60 26.20 10.60 5.20 2.50 0.77 519 4.24 1631
All India (Nos.) 1113 1190 2420 3673 2251 769 266 142 426 12250 100.00 609
15000.1 & above 0.73 No Spending Total (Nos.) % to total 4.50 5358 43.74
Av. Expenditure 574
Page- 51
Table 3.20: Total Expenditure on Handicrafts acc. to Nationality of Respondents Total Expenditure
(Rs. Million) %age
Country USA UK France Australia Germany Canada UAE Italy Japan Switzerland Singapore Sri Lanka Netherlands Nigeria South Africa Ireland Korea Malaysia Spain China Belgium Denmark Russia Indonesia New Zealand Saudi Arabia Others
Tourists (No.) 1331 1223 907 616 735 257 175 454 846 208 381 568 243 103 185 98 347 250 265 242 117 120 228 129 120 50 2052
Per Capita Expenditure (Rs.) 20103 14373 13211 14555 10756 21204 28376 10681 5249 19634 9752 6293 13333 25073 13326 24687 6962 8593 7851 8183 16156 13430 6913 11569 11331 26955 8001
26.76 17.58 11.98 8.97 7.91 5.45 4.97 4.85 4.44 4.08 3.72 3.57 3.24 2.58 2.47 2.42 2.42 2.15 2.08 1.98 1.89 1.61 1.58 1.49 1.36 1.35 16.42
18 12 8 6 5 4 3 3 3 3 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 11
Page- 52
All Countries
149.30
100
12250
12187
Table 3.21: Top Ten Spending Nations on Indian Handicrafts

( % of Total) SL. No. Country NPC Survey Findings (Oct., 2002) EPCH@ Data on Exports (2001-02)
1 USA 2 UK 3 France 4 Australia 5 Germany 6 Canada 7 UAE 8 Italy 9 Japan 10 Switzerland Total of 10 countries
18 12 8 6 5 4 3 3 3 3 62
30 11 5 2 10 3 na 4 4 2 71
@ Export Promotion Council for Handicrafts, na = Not Available Note : Total excludes UAE
Page- 53
Table 3.22: Country wise Product wise Expenditure on Handicrafts by Respondents (%)
Country Silk Other Cotton Wool Text. Handicraft Product (s) Mix.Raw Metal & Local Paper Clay Bamboo Wood Glass Others Break up NA Nat.Fibre Leather Jewelery Raw Matl. Matl. & Pdts Total Exp.
USA UK France Australia Germany Canada UAE Italy Japan Switzerland Singapore Sri Lanka Netherlands Nigeria South Africa Ireland Korea Malaysia Spain China Belgium Denmark Russia Indonesia New Zealand Saudi Arabia
23.14 28.96 19.60 15.28 21.47 21.02 8.86 30.80 20.04 22.02 21.81 44.17 13.62 39.02 53.38 17.79 11.59 19.72 26.94 13.49 47.40 26.27 15.02 8.37 40.89 35.18
13.76 7.32 4.88 1.99 9.21 12.74 3.69 1.22 20.30 6.60 4.57 1.60 19.84 4.15 4.64 2.48 20.76 4.34 2.79 1.80 17.07 3.44 5.00 0.58 62.74 1.23 1.18 0.46 7.71 8.07 3.02 1.46 9.28 4.96 5.19 2.86 37.57 7.02 1.00 0.42 6.41 1.71 3.56 1.93 16.38 1.17 2.07 1.19 6.91 3.69 1.23 0.35 30.51 0.82 0.36 0.22 4.87 1.98 0.92 1.64 4.05 9.40 1.00 0.39 23.88 2.39 5.37 1.29 13.26 3.68 2.51 0.54 12.40 9.70 2.23 2.56 5.45 1.84 4.31 1.62 6.31 3.44 1.90 5.77 9.03 13.52 1.82 1.60 12.11 7.17 2.12 1.80 13.39 2.46 13.97 1.36 5.63 8.08 2.57 2.36 9.23 1.15 1.32 0.18
0.29 0.25 0.37 0.32 0.32 0.36 0.63 0.33 1.60 0.29 6.69 0.45 0.05 0.01 0.21 6.39 0.90 0.24 0.86 1.18 0.35 0.15 0.13 0.25 0.37 0.00
3.48 2.94 3.50 3.77 4.21 3.41 1.39 6.00 5.87 1.53 2.37 2.42 5.60 0.74 2.60 11.36 5.84 4.20 4.87 3.47 2.68 5.63 2.53 4.30 3.89 8.98
17.98 18.74 25.83 14.69 19.43 29.37 6.46 22.79 23.77 9.75 23.01 12.84 55.27 17.50 13.20 16.23 15.67 24.08 21.36 19.08 7.54 16.38 34.06 24.48 13.96 17.26
0.82 0.30 0.34 0.43 0.39 0.15 0.16 0.38 0.55 0.27 0.15 0.18 0.13 0.08 0.76 0.12 0.50 0.30 0.29 1.02 0.52 0.33 0.15 0.41 0.14 0.07
3.50 5.43 5.10 3.80 9.88 7.27 1.45 7.69 8.84 5.23 12.37 4.35 5.48 8.39 5.13 1.40 7.04 5.12 6.23 9.29 1.96 4.55 10.09 3.37 5.79 16.68
0.75 0.61 1.12 1.28 1.24 0.49 0.75 1.82 1.38 0.37 1.99 0.95 0.73 0.16 0.81 10.29 2.07 0.90 2.07 0.94 1.83 0.30 0.83 0.29 4.30 0.52
0.32 0.43 0.34 0.50 0.52 3.16 0.85 0.63 1.17 0.11 0.53 0.21 0.24 0.17 0.61 0.33 0.81 0.99 0.35 1.25 0.20 0.18 0.41 0.68 0.55 0.95
1.70 0.62 1.46 1.13 0.94 0.75 0.28 1.86 1.38 0.63 1.88 3.62 1.16 0.22 0.66 0.89 2.38 1.91 2.43 2.39 0.37 0.69 1.37 1.08 1.68 0.59
1.28 4.32 0.99 3.37 0.40 4.84 0.39 7.67 0.52 4.76 0.18 2.41 0.11 9.99 0.12 4.40 0.45 7.47 0.24 13.11 1.14 10.55 1.06 7.60 0.35 4.08 0.00 1.34 0.64 3.22 9.42 10.59 1.13 9.82 3.12 6.11 0.33 4.96 2.84 4.81 0.03 19.19 0.45 19.09 0.26 4.98 0.94 5.69 0.61 1.54 0.81 7.06
14.46 10.48 4.04 19.61 6.64 5.35 3.47 2.96 5.19 0.44 3.93 1.34 1.11 0.46 9.37 0.33 9.31 13.33 2.43 27.01 0.51 0.00 6.98 18.98 7.65 0.02
100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Table 3.23: Currencies Used by Respondent Tourists for Purchase of Handicraft Products Currency Used (Number of purchases) Products
INR US $ Pound Sterling Euro Credit Card Other Foreign Currencies Total
Silk Cotton Wool Others Clay Bamboo Wood Metal & Jewelry Natural Fiber Leather Paper & Paper products Glass Local raw material Mixture of raw materials Others Total
4200 4058 1740 1175 1505 764 2446 4418 665 3018 1307 894 824 460 2866 30340
270 185 86 94 78 34 116 232 34 122 88 20 46 18 53 1476
31 21 12 7 2 2 11 31 2 17 4 1 4 2 6 153
39 28 8 25 18 4 19 41 1 17 22 2 17 7 37 285
197 151 54 51 55 31 144 182 18 99 35 36 40 41 136 1270
35 21 15 4 7 2 92 64 6 14 13 3 9 11 106 402
4772 4464 1915 1356 1665 837 2828 4968 726 3287 1469 956 940 539 3204 33926
Page- 55
CHAPTER IV MACRO ECONOMIC IMPLICATIONS
As already mentioned earlier, the foreign tourists contacted during the Survey had spent about Rs. 12,187 per person. For arriving at expenditure on handicrafts by the total foreign tourists coming to India we relied on the data on foreign tourists arrival in India of Market Research Division of the Department of Tourism, Govt. of India. According to the latest data available for the year 2001, India drew 2.54 million foreign tourists in 2001, which was lower than the previous years 2.65 million. Country-wise, during 2001 the highest number of tourists came from U.K. (16%), followed by USA (13%), Sri Lanka (4.4%), France (4%), Canada (3.5%), Japan and Germany (both 3.2%). In terms of Survey findings (Oct., 2002), the maximum number of tourists contacted is from the USA (10.87%), while U.K. is the close second (9.98%). France, Japan, Germany and Sri Lanka, which were among the top countries in terms of actual inflow during 2001, are also occupying the top most positions in the respondents list as per the present Survey data (Table 2.5).
The per capita expenditure on handicrafts, as found from the Survey data, when multiplied by the actual number of tourists visiting India every year would yield the total annual expenditure on handicrafts by all the foreign tourists. However, while the tourists arrival data are only up to 2001, per capita expenditure relates to the period October, 2002, when the survey was conducted. Keeping this in view, the per capita expenditure data for (Oct.) 2002 has been adjusted to the level of 2001 for inflation between 2001 and 2002 (Oct. to Oct.) by the Wholesale Price Index (WPI) for all commodities (Table 4.1). The price adjusted data on per capita expenditure (Oct., 2001) have been multiplied by the number of tourists to
Page- 56
Survey of Foreign Tourists Expenses on Handicrafts estimate the total expenditure on handicrafts. Table 4.2 presents the total as well country-wise total expenses on handicrafts. For the sake of brevity, estimates for only leading 26 countries (in terms of number of tourists and expenditure on handicrafts) have been arrived at.
As can be seen from this table, total expenditure on handicrafts by all the foreign tourists has been estimated at Rs. 29,851.54 million in 2001. This constitutes about 18% of the total estimated value of production of handicraft items in India in 2001-02 (Table 4.3). Data from Export Promotion Council for Handicrafts (EPCH) indicate that the export of handicrafts from India (excluding hand knotted carpets) had constituted about Rs. 67695 million in 2001-02 (Table 4.4). The estimated total expenditure on handicrafts by foreign tourists thus forms about 44% of the total handicrafts exports (excluding hand knotted carpets) from India during the year 2001-02. Since the amount is spent by foreign tourists while in India, this can be considered as deemed export of handicrafts.
According to Tourist Statistics 2001 (Deptt. of Tourism), in 2001, India had earned foreign exchange to the tune of Rs. 1,43,440 million from the tourism sector alone. Thus the foreign tourists expenses on handicrafts in India formed about 21% of the total foreign exchange earnings from tourism. Table 4.1 : Movement of WPI : Oct.2001 to Oct. 2002 Period October, 2001 October, 2002 Change in Index
Source: Monthly Review of the Indian Economy CMIE, Dec., 2002
WPI Index 162.5 167.3 4.8
Page- 57
Table 4.2: Estimate of Total Expenditure on Handicrafts by Foreign Tourists Country (1) USA UK France Australia Germany Canada UAE Italy Japan Switzerland Singapore Sri Lanka Netherlands Nigeria South Africa Ireland Korea Malaysia Spain China Belgium Denmark Russia Indonesia New Zealand Saudi Arabia Others Total Tourists (No.) 2001 (2) 329147 405472 102434 52691 102434 88600 21483 41351 80634 25308 42824 112813 42368 7539 21162 6136 29685 57869 23073 13901 18851 14531 24831 7767 11700 9851 842827 2537282 Per Capita Per Capita Expr.(Rs.) Expr.(Rs.) Oct. 2002 Oct. 2001 (3) (4) 20103 19526 14373 13961 13211 12832 14555 14137 10756 10447 21204 20596 28376 27562 10681 10375 5249 5098 19634 19071 9752 9472 6293 6112 13333 12950 25073 24354 13326 12944 24687 23979 6962 6762 8593 8346 7851 7626 8183 7948 16156 15692 13430 13045 6913 6715 11569 11237 11331 11006 26955 26182 8001 7771 Total Expr. (Rs. Million) 2001 (5) [col. 2 x col.4] 6427.00 5660.64 1314.43 744.91 1070.17 1824.77 592.11 429.00 411.10 482.64 405.64 689.56 548.69 183.60 273.91 147.13 200.74 483.00 175.95 110.49 295.82 189.55 166.73 87.28 128.77 257.92 6549.98 29851.54
Source: Col. 2 = Deptt. Of Tourism, GOI; Col. 3 = NPC Survey
Note: Figures in col. 4 have been arrived at from col. 3 after adjusting for inflation
Page- 58
Table 4.3 : Turnover of Indian Handicrafts Industry Estimated Production (Rs. Million) 1,39,155.60 1,63,404.40 1,63,200.00
Year 1999-2000 2000-2001 2001-2002
Source: Development Commissioner (Handicrafts)
Page- 59

Table 4.4: Export of Handicrafts@ from India : 1992-93 to 2001-02 (Rs. Crores)
ITEMS Artmetalware Woodware Handprinted Textiles & Scarves Embroidered & Crochetted Goods Shawls as Artware Zari & Zari Goods Imitation Jewellery Misc. Handicrafts TOTAL
1992-93 480.05 68.20 196.50 42.70 28.15 42.65 19.05 534.70 1412.00
1993-94 680.20 98.50 354.25 70.45 32.95 48.90 28.75 656.00 1970.00
1994-95 1022.25 136.90 475.12 102.20 36.90 57.95 36.88 767.70 2635.90
1995-96 1205.95 155.65 580.45 115.30 39.75 70.95 40.20 812.10 3020.35
1996-97 1370.60 188.45 695.17 131.10 36.43 79.78 44.13 1022.92 3568.58
1997-98 1214.6 221.82 838.24 990.75 17.08 70.34 98.03 902.32 4353.18
1998-99 1324.16 286.04 1033.98 1159.42 18.18 74.95 104.10 1057.57 5058.40
1999-00 1497.18 348.95 1158.05 1584.36 21.50 83.52 113.64 1116.40 5923.60
2000-01 1778.10 434.44 1276.75 1964.78 27.20 142.32 121.68 1210.08 6955.35
2001-02 (P) 1758.90 431.88 1221.59 1931.97 27.01 134.04 117.53 1146.58 6769.50
@ Excludes Handknotted Carpets, P = Provisional Source: Export Promotion Council for Handicrafts
Page- 60

ANNEXURE Questionnaire for Constructing UNESCO Crafts/ Tourism Index for India Amount spent in India on Handicraft products during the current trip
(excluding company or business purchases) SL. No. 1. PRODUCTS QUANTITY AMOUNT SPENT CURRENCY USED (Relates to amount spent)
Silk Cotton Textiles Wool Others 2. Clay (ceramics, pottery) 3. Bamboo, rattan 4. Wood 5. Metal,Jewellery 6. Natural Fibre (baskets) 7. Leather 8. Paper & paper products 9. Glass 10. Local raw materials (indigenous) 11. Mixture of raw materials or new materials 12. Others (traditional foods, cosmetics etc.) TOTAL The Interviewee: Nationality or Country of Residence: No. of days spent in India: Age: Sex : < 25 Male 25/34 Female Business Industry Agriculture Students Others 35/44 45/54 55/64 65 & above
Profession: Service Annual Family Income: The Interviewer: Date: Place of Interview: City: Delhi
Below Average High
Average Very High
More than Average
Airport
Hotel Chennai
Market Kolkata Hyderabad Bangalore Signature
Mumbai
Page- 61

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Survey of Foreign Tourists Expenses on Handicrafts

Survey of Foreign Tourists Expenses on Handicrafts

Economiic Serviices Group Econom c Serv ces Group

Survey of Foreign Tourists Expenses on Handicrafts

ii iii iv - v vi vii Page No

Chapter I Chapter II Chapter III

Survey of Foreign Tourists Expenses on Handicrafts

New Delhi 19th Dec., 2002

Dr. N. K. Nair Group Head (Economic Services)

STUDY TEAM Core Members

Survey of Foreign Tourists Expenses on Handicrafts

O. P. Joshi, Director M. Ashok, Dy. Director B. Badole, Asst. Director

S. Sivakumar, Dy. Director R. Rajhamany, Trg. Officer

V. Rajesh Dy. Director A.Muguntharagan, Asst. Director

G. Hema, Dy. Director

Survey of Foreign Tourists Expenses on Handicrafts

Survey of Foreign Tourists Expenses on Handicrafts

Survey of Foreign Tourists Expenses on Handicrafts

Survey of Foreign Tourists Expenses on Handicrafts

List of Figures Title

Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Figure 8

Survey of Foreign Tourists Expenses on Handicrafts

CHAPTER I ABOUT THE SURVEY 1. Background

Survey of Foreign Tourists Expenses on Handicrafts

Survey of Foreign Tourists Expenses on Handicrafts

Survey of Foreign Tourists Expenses on Handicrafts

Survey of Foreign Tourists Expenses on Handicrafts

Figure 1: Distribution of Survey Respondents based on Place of Interview

Market 25% Airports 47% Hotels 28%

Survey of Foreign Tourists Expenses on Handicrafts

Figure 2: Distribution of Respondents based on City

Survey of Foreign Tourists Expenses on Handicrafts

Survey of Foreign Tourists Expenses on Handicrafts

Survey of Foreign Tourists Expenses on Handicrafts

CHAPTER II PROFILE OF FOREIGN TOURISTS

during the survey.

Survey of Foreign Tourists Expenses on Handicrafts

Table 2.2: Distribution of Respondents According to Profession.

Percentage of Respondents 27.44 36.38 6.94 1.22 10.18 17.84 100.00

Figure 3: Distribution of Respondents based on Profession

Survey of Foreign Tourists Expenses on Handicrafts

Table 2.3 : Distribution of Respondents According to Income

Survey of Foreign Tourists Expenses on Handicrafts

Table 2.4 : Distribution of Respondents According to Days of Stay in India

Survey of Foreign Tourists Expenses on Handicrafts

Table 2.5 : Distribution of Respondents According to Country of Origin

127 120 120 117 103 99 98 98 88 80 76 73 72 61 58 54 50 49 48 47 45 659

Survey of Foreign Tourists Expenses on Handicrafts

Figure 4: Distribution of Respondents based on Country of Origin (Top Ten Countries)

Survey of Foreign Tourists Expenses on Handicrafts

CHAPTER III EXPENDITURE PATTERN OF FOREIGN TOURISTS

Period of Stay in India

On an average a respondent tourist had spent about 20 days in India.

Survey of Foreign Tourists Expenses on Handicrafts

Total Expenditure by Tourists

Survey of Foreign Tourists Expenses on Handicrafts

Average Expenditure Per Tourist

Survey of Foreign Tourists Expenses on Handicrafts

expenditure only of Rs. 4893 on handicrafts in per capita terms.

Per Capita Per Day Expenditure