TOURISM SECTOR

INTRODUCTION

Tourism is the act of travel for the purpose of recreation and

business, and the provision of services for this act. Tourists are people
who are "traveling to and staying in places outside their usual
environment for not more than one consecutive year for leisure,
business and other purposes not related to the exercise of an activity
remunerated from within the place visited" (official UNWTO definition).
The distance between these two places is of no significance.

A more comprehensive definition would be that tourism is a

service industry, comprising a number of tangible and intangible
components. The tangible elements include transport systems - air,
rail, road, water and now, space; hospitality services -
accommodation, foods and beverages, tours, souvenirs; and related
services such as banking, insurance and safety and security. The
intangible elements include: rest and relaxation, culture, escape,
adventure, new and different experiences.

Many countries depend heavily upon travel expenditures by

foreigners as a source of taxation and as a source of income for the
enterprises that sell (export) services to these travellers. Consequently
the development of tourism is often a strategy employed either by a
Non-governmental organization (NGO) or a governmental agency to
promote a particular region for the purpose of increasing commerce
through exporting goods and services to non-locals.

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Sometimes Tourism and Travel are used interchangeably. In this

context travel has a similar definition to tourism, but implies a more
purposeful journey.

The term tourism is sometimes used pejoratively, implying a

shallow interest in the societies and places that the tourist visits.
Wealthy people have always traveled to distant parts of the world to
see great buildings or other works of art, to learn new languages, to
experience new cultures, or to taste new cuisine. As long ago as the
time of the Roman Republic places such as Baiae were popular coastal
resorts for the rich.

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DEFINITION

 DEFINITION OF TOURISM

One of the earliest definitions of Tourism was given by the

Austrian Economist Hermann Von Schullard in 1910. He defined it
as,
"Sum total of operators, mainly of an economic nature, which
directly relate to the entry, stay and movement of foreigners inside
and outside a certain country, city or a region."

Hunziker and Krapf, in 1942, defined Tourism as,

"Tourism is the totality of the relationship and phenomenon
arising from the travel and stay of strangers, provided that the stay
does not imply the establishment of a permanent residence and is not
connected with remunerative activities."

In 1976, Tourism Society of England defined it as

"Tourism is the temporary, short-term movement of people to
destination outside the places where they normally live and work and
their activities during the stay at each destination. It includes
movements for all purposes."

In 1981,International Association of Scientific Experts in

Tourism defined Tourism
“In terms of particular activities selected by choice and
undertaken outside the home environment.”

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 DEFINITION OF TOURISTS

The terms tourist and tourism were first used as official terms in
1937 by the League of Nations. Tourism was defined as people
traveling abroad for periods of over 24 hours.

The origin of the word “tourist” date back to 1292 AD. It has
come from the word “tour”. A number of experts have defined the
term:

“Tourist is a person who makes a journey for the sake of

curiosity for the fun of traveling”.

“Tourists are the voluntary temporary travelers, traveling in the

expectations of pleasure from the novelty and change experienced on
a relatively and non-current round-trip”.

Tourists are:
 Persons traveling for pleasure, health and domestic reason.
 Persons arriving in the sea of sea cruise.
 Persons traveling for convention.

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TOURISM: THE INDUSTRY

Tourism emerged as the largest global industry of the 20th

century. In the new millennium global economy will be governed by
Technology, Telecommunication and Tourism. Tourism has a potential
to create the maximum number of jobs. According to an assessment,
in India alone, 100 million additional jobs will be created by the
Tourism industry in the next 25 years. It helps to earn valuable foreign
exchange.

The tourism industry comprises of the following main and

distinctive sectors:
 Transportation

Tourism industry is heavily dependent on the transportation

industry which comprises of airlines, cruise and ferry lines, passenger
railways, coach and bus travel, car hire. Thanks to the increase in
tourist traffic, over the years, the range of airline services has
considerably, not only in terms of frequency of flights and number of
destinations, but also in terms of different services, and differing levels
of service to meet different passenger needs. This shows the important
role marketing plays as competition and demand intensifies.

 Accommodation

Accommodation includes hotels, ranging from the biggest

international chains recognizable worldwide such as Hilton and Holiday
Inn to small independent establishments. In order to gain recognition
in an increasingly competitive marketplace, many smaller independent

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hotels have grouped together, adopting a consortium approach. Under

a central brand name, they can offer central reservations services, for
e.g. and present a recognizable identity to consumers which enables
them to compete against the larger, more established chains. Other
types of accommodations are also well established in tourist markets,
notably self-catering apartments and club type complexes.

 Tour operators

Tour operators are the firms which specialize in providing the

whole holiday package, incorporating travel and accommodation needs
for the consumer. They range from highly specialized operations such
as Indianvisit.com, who customize every kind of trip that you can
dream of, to large operators offering services at all different levels to
cater for budget, family, or singles holidays to ‘near’ or ‘faraway’
destinations.

Thomas Cook is one of the best known of such operators; they

also offer travel agency and financial services to their consumers. An
independent local coach firm may also be a tour operator, and many
transportation companies also offer holiday packages.

 Tourism Destination Operators/ Destination Management

This is new category in many senses, as it is an area of the

tourism industry which has seen a massive growth in the development
of theme parks and other types of artificial tourist destinations in the
recent years. However Disneyland and Disneyworld in America were

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the forerunners of this development in tourism marketing, and they

have been well established for decades.

It is due to the recent growth, and the continuing trends, which

make it area which should be considered separately as a tourism
industry. The new Euro Disney theme park in France is an example of
a tourism destination operation. On a smaller scale, heritage parks
which being developed from Britain’s industrial wasteland such as
Wigan Pier, which attracted over half a million tourists in 1991, and
similar attractions now represent a significant amount of tourism
activity.

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CHARACTERISTICS OF TOURISM INDUSTRY

 INFLEXIBILITY

The tourism industry is highly inflexible in terms of capacity. The

number of beds in a hotel or seats on a flight is fixed so it is not
possible to meet sudden upsurges in demand similarly restaurants
tables, hotels beds and flights seats remain empty and unused in
periods of low demand.

 PERISHABILITY

An unused hotel bed or empty flight seat represents an

immediate loss of that service as a means of earning profit. Tourism
product is used as a time of availability. It cannot be preserved.
Incase, the tourist cannot visit the place the opportunity is lost. Hence,
this becomes one of its important characteristics.

 FIXED LOCATION

Tourism destinations are fixed locations so effort must be taken

in communicating the facility to the potential consumer. Relatively
large financial investment; every modern tourist establishment and
facility requires large investment frequently over a long time scale.

 RELATIVELY LARGE FINANCIAL INVESTMENT

Every modern tourist establishment and facility requires large

investment, frequently over a long time scale. This means that the

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level of risk and the rate of return are critically important to tourism
management.

 PEOPLE ORIENTED

Tourism Services are high contact services, as people interact

with people at virtually EVERY stage of the way. Tourism services are
very people-oriented services, and the service people are plenty and
have high contact with the consumers. The consumer interacts with a
myriad of service people starting from when he books his ticket and
throughout the course of his holiday.

 BENEFITS TO CUSTOMERS

Since the economy opened up in 1991, several foreign chains

have entered the Indian market, including Hyatt, Four Seasons, Hilton,
Regent, Radisson and Holiday Inn. The result is that the quality of
service has improved. The overseas players have brought in efficient
systems and service standards from Europe and the US. Competition
has forced Indian hotel groups to improve their standards. The
customer has benefited in many ways. The influx of foreign players
has led to major price wars in the industry. In an attempt to woo
customers, Indian hotels have reduced their tariffs significantly.
According to one hotelier, "India has become a normal market -– like
others in the West or in Southeast Asia – with demand and supply
determining the price".

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CLASSIFICATION
Tourism may be classified into the following types:

1. INBOUND INTERNATIONAL TOURISM: It means

visiting to a country by non-resident of that country.

2. OUTBOUND INTERNATIONAL TOURISM: It means

visiting by the residents of a country to another country.

3. INTERNAL TOURISM: It means visiting by residents of a

country to their own country.

4. DOMESTIC TOURISM: It consists of inbound international

tourism plus internal tourism.

5. NATIONAL TOURISM: It consists of internal tourists plus

outbound international tourism.

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SPECIAL FORMS OF TOURISM

For the past few decades many forms of tourism are becoming
more popular, particularly:

1. ADVENTURE TOURISM
This type of tourism involves travel in rugged regions, or
adventurous sports such as mountaineering and hiking (tramping).

2. CULTURAL TOURISM
It includes urban tourism, visiting historical or interesting cities,
such as Delhi, Amritsar, Mumbai, Banglore, Chennai, Ahmedabad, etc.
and experiencing their cultural heritages. This type of tourism may
also include specialized cultural experiences, such as art museum
tourism where the tourist visits many art museums during the tour, or
opera tourism where the tourist sees many operas or concerts during
the tour.

3. EDUCATIONAL TOURISM
It may involve travelling to an education institution, a wooded
retreat or some other destination in order to take personal-interest
classes, such as cooking classes with a famous chef or crafts classes.

4. GARDEN TOURISM
It means visiting botanical gardens, famous places in the history
of gardening, such as Versailles and the Taj Mahal.

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5. HERITAGE TOURISM
It is visiting historical (Rome, Athens, Cracow) or industrial sites,
such as old canals, railways, battlegrounds, etc.

6. HEALTH TOURISM
It means usually to escape from cities or relieve stress, perhaps
for some 'fun in the sun', etc. often to "health spas".

7. MEDICAL TOURISM
It is used for advanced care that is not available in one's own
country, in the case that there are long waiting lists in one's own
country for use of free or cheap health care organisations for what is
illegal in one's own country, e.g. abortion, euthanasia; for instance,
euthanasia for non-citizens is provided by Dignitas in Switzerland.

8. HOBBY TOURISM
Tourism alone or with groups to participate in hobby interests, to
meet others with similar interests, or to experience something
pertinent to the hobby. Examples might be garden tours, square dance
cruises, etc.

9. POP-CULTURE TOURISM
This tourism refers to tourism by those that visit a particular
location after reading about it or seeing it in a film.

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10. PERPETUAL TOURISM

It is mainly for wealthy individuals who are always on vacations;
some of them, for tax purposes or to avoid being resident in any
country.

11. PILGRIMAGE TOURISM

Pilgrimage tourism refers to ancient holy places (Rome and
Santiago de Compostela for Catholics, Temples and stupas of Nepal for
the Hindus and Buddhist, Mount Athos or Painted churches of northern
Moldavia for the Orthodox), religious sites such as mosques, shrines,
etc.

12. SPORT TOURISM

Skiing, golf and scuba diving are popular ways to spend a
vacation. Also in this category is vacationing at the winter home of the
tourist's favorite baseball team, and seeing them play everyday.

13. ECO TOURISM

It means sustainable tourism which has minimal impact on the
environment, such as Safaris (Kenya), Rainforests (Belize) and Hiking
(Lapland), or national parks.

14. GAMBLING TOURISM

This tourism refers to tourism to Atlantic City, Las Vegas, Macau
or Monte Carlo for the purpose of gambling at the casinos there.

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TYPES OF TOURISTS

One such way of classifying the users is by dividing them into categories such as
General, Sex, Region, Education, etc.
 General: Domestic, Foreign Kids, Teens, Youths, Seniors
Students, Executives, Artists Politicians, Movie stars
 Sex: Men, Women
 Region: Rural, Urban
 Education: Literate, Illiterate
 Status: Rich, Poor
 Profession: Executives, Academics, Sportsmen, Artists
 Occupation: White collar, Blue collar.

Another method of classifying users of tourism services is on the basis of the

frequency of usage of services:
 Non-users: They lack the willingness, desire and ability (income &
leisure time).
 Potential Users: They have the willingness but the marketing
resources have not been used optimally to influence their impulse.
 Actual Users: They are already using the services generated by the
tourist organizations
 Occasional Users: They have not formed the habit of traveling
 Habitual Travelers: They have formed a habit and avail of the
services regularly.

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Marketing Mix
 PRODUCT

Product is the combination of tangible and intangible elements. The

tourism product, which is mainly the destination, can only be experienced. The
views of the location travel to the destination, the accommodation and facility as
well as the entertainment at the destination all form the tourism product.

Thus it is a composite product combination of attraction, facilities and

transportation. Each of these components has its own significance in the product
mix and in the absence of even single components, the product mix is
incomplete.

Components Of Tourist Product.

BENEFIT MEANING WITH RESPECT TO THE
TRAVEL AND TOURISM
INDUSTRY
1. CORE The fundamental benefit or Traveling
BENEFIT service that the customer is
buying
2 BASIC Basic, functional attributes Ticketing, hotel reservation
PRODUCT
3 EXPECTED Set of attributes/conditions the Customer friendliness, good
PRODUCT buyer normally expects food
4 AUGMENTED That meets the customers Prompt services, comfortable
PRODUCT desires beyond expectations and convenient trip,
spectacular sights, music
5 POTENTIAL The possible evolution to Totally customized tour
PRODUCT distinguish the offer packages, A grade service at
every stage

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 PRICE

Pricing in tourism is a complex process. Pricing includes the

prices of other services like Air travel, Bus, Railways, Hotels, etc. All
are included in tourism package. Pricing also depends on the
Geographic location of the destination.

Pricing also depends on Seasonality. Seasonality is the most

important factor in pricing. To match demand and supply tourist
managers try to get either discount. E.g. Taj is the tourist attraction in
India. Pricing is also based on competitors pricing. Pricing is also
subject to government regulations. E.g. Air price changes tourism
package also changes, if Hotel charges change then also tourism
package changes.

Pricing of the tourist product is a complex matter because of its

composite nature. Geographical location of the destination affects the
pricing decision. At the same time, seasonality factor and varying
demand cannot be overruled. The objective of pricing in any other
firms is to fetch a target market share, to prevent competition, and to
take care of the price elasticity of demand.

A very important way, in which the travel and tourism business

responded to their highly complex pricing circumstances, is to operate
at two levels. The first level is corresponds with the marketing
strategy, which concerns with the product positioning, value for the
money, long run return on investments etc. The second level
corresponds to the marketing operations or tactics where the prices
are manipulated to match the current demand and competition.

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 PLACE

Different distribution strategies can be selected for Tourism

marketing. Tourism as a product is distributed as a travel. Internet is
also used widely. There is also small agents spread all over the town
who plays a role of place. Large travel companies like Thomas Cook,
Cox & Kings, SOTC, etc they act as a wholesalers and these
wholesalers also act as a retailer.

The tourism marketer may not have adequate choice of the

tourist center, because in most of the case the tourist destinations
many be natural, historical attraction. But, infrastructure facilities,
transportation, communication are important for the development of
the tourist center. The major decision that the tourism marketer takes
regarding distribution is relating to the channel of choice and channel
members. The uniqueness of tourism industry is predominant position
of intermediaries. The two major functions performed by the
distribution system in tourism marketing are:

 To extend the number of points of sales or access, away

form the location at which services are performed or delivered
 To facilitate the purchase of service in advance

Different distribution strategies may be selected to reflect the

company’s overall objectives. The middleman may be tour operators,
who buy tourism products in bulk and make them available to travel
agents who are retailers. The range of tourist products, which are
bought by the tour operators are airline seats, hotel accommodation,
bus for local sight seeing, etc. they may also sell directly to customers.

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The latest mode of reaching the tourist is through Internet. Ticket

booking can also be done through the Internet and payment is made
with credit card.

 PROMOTION

Advertising and sales promotion in Tourism can be very effective

when supplemented by publicity and personal selling. They use
electronic, print all sorts of media they use; and it is highly promoted
industry. Public or PR (Public Relation) plays an important role in
tourism. It is also through recommendation of friends and relatives
this is a biggest promotion.

Creation of awareness is an important factor in the formulation

of marketing mix for the tourism industry. The promotion task
simplifies the activities of informing, persuading and influencing the
decisions of potential tourists. The promotion mix plays a vital role as
the users of service feel high degree of involvement and uncertainty
about the product and their role in buying process. Some of the
important aspects of promotion are advertising, publicity, sales
support and public relation.

Advertising and sales promotion activities in tourism can be very

effective when supplemented by publicity and personal selling.
Advertising messages may range from subtly attractive visual
messages and symbols designed to appeal and stimulate travel desire
and needs to simple sales announcements drawing attention to specific
product offers.

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Word-of-mouth is a very important tool of promotion in tourism.

Research shows that about 80% of the tourist visited different places
on the persuasion of their friends and relatives and also their own
judgments. Brochures are another form of communication provided by
tour operators to stimulate customers and motivate them to buy. They
are used to demonstrate in pictures and words the images and
positioning of the product and the organizations.

 PEOPLE

It plays a most important part in tourism. In people local people

are very important, that how they treat tourist. The travel agents,
guides, staff of travel companies, sales staff, etc they are the people.
Travel Company also like Railways, Air, etc. is included in people.
Normally a tourist assures a tourism quality like hotels, Travel
Company.

The personnel who attend to the needs of the tourists form an

essential ingredient in tourism marketing. The sales personnel are
responsible for dealing with the customer behind the counter. The
airline and transportation crew interact with customers while traveling.
The resort or hotel representatives enter to the needs of the tourist
when they reach the destination.

The tourist guides, who interact with the customers at the tourist
location, all form the people element in tourism marketing. These
contract persons must be trained on interpersonal skills as well as
knowledge of the product. In the tourism industry the travel agents
and the travel guides are the two most important people who speak a

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lot about the industry. Hence it is imperative that they have to be at

their best at all times. Travel guides especially, are expected to have a
lot of patience, good sense of humor, tact to transform the occasional
tourists into habitual ones, thorough knowledge of the places,
linguistic skills etc.

 PROCESS

The operation process of the tourism firm will depend on the size
of the tourism firm. The sequential steps involved in the delivery of the
tourist products are:

 Provision of travel information --- The information

regarding the travel is provided at a convenient location where the
potential tourist seeks clarification about his proposed tour.

 Preparation of itinerates------ It is a composition of

series of operations that are required to plan a tour.

 Liaison with providers of services--- Before any form

of travel is sold over the counter to a customer; contracts have to
be entered with the providers of various services including
transportation companies, hotel accommodation, coaches for local
sightseeing etc.

 Planning and costing tours------ Once the contracts and

arrangements are entered into, then the task of planning and
costing the tour, this will depend on the tour selected as well as
individual requirements.

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 `Ticketing----- The computerized reservation system has

in recent years revolutionized the reservation system for both rail
and air travel.

 Provision of foreign currency and insurance--- In case

of foreign travel the final task provide foreign currency as well as
insurance

 PHYSICAL EVIDENCE

The tourist attraction, which is an expensive for the customer

must be tangibilised with the help of tangible items like, comfortable
seats while traveling, layout, and design of the resort, natural service
scope, etc. the sign posts that indicate directions, route maps,
information regarding rules and regulations of the tourist spot and the
sign regarding the public utilities like toilets, telephone booth also form
a part of the physical evidence.

Printed matters such as brochures also play an important role in

the development of tourism. As the product, in tourism is intangible.
There is a need to describe fully the product, which is done by
providing an elaborate brochure, which shows how different elements
of the programmes are carefully planned to include all necessary
information to make holiday establishes expectation of quality value
for money, product image and status, which must be matched when
the product is delivered.

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SEGMENTATION
Though there are a number of bases for segmentation of tourists,
one of the most important is Lifestyle. Traveling decisions are fantastically
influenced by changing lifestyles. They are also affected by other factors
such as level of income, availability of leisure time, etc.

BASE OF CATEGORIES
SEGMENTATION
Holiday Mass market
Popular market
Individual market
Demand Primary
Secondary
Opportunity
Geography International
On the basis of regions, cities,
etc.
Psychography Lifestyle
Personality motive
Knowledge
Demography Age
Sex
Religion
Socio-economic Rich, Poor
Rural, Urban
Literate, Illiterate
Purpose Business Travel
Cultural Tourism
Common Interest Convention
Age Teens
Youth
Seniors

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Such segmentation is useful when deciding the offerings to target a

particular segment. For example,

 The mass market consists of vacationists that travel in large groups

and prefer all-inclusive tours. They are generally conservative.

 The popular market consists of smaller groups going on inclusive or

semi-inclusive tours. This group includes pensioners and retired people.

 The individual market consists of chairmen, senior executives, etc.

 As the lifestyle changes, consumption of services might change.

For example, a newly married couple might prefer romantic holidays, but once
they have children they would prefer family vacations where there are plenty
of activities to entertain kids. Teens and youth might prefer adventure
holidays whereas senior citizens would probably prefer more relaxing
vacations.

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SWOT ANALYSIS
 STRENGTHS

India’s geographical location,a culmination of deserts, forests,

mountains and beaches:
India is not only a vast country but also a beautiful country with world
famous natural locations, which attracts lots of foreign tourist everyday.
India has all types of seasons at the same time because of its tropical
nature, as you will find the climate hot, humid, cold and warm all at the
same time in different locations. Also its location is not very out of reach
but easy to travel, as there are many modes of transport to reach here.

Diversity of culture, a blend of various civilizations and their

traditions:
India’s diversity is its greatest strength. There is so much to
explore in India. One cannot be tired of exploring its diverse culture,
heritage and locations. The different languages, dialects and other
religious and cultural customs and traditions are all the sources of
attraction in India.

 WEAKNESSES

Lack of adequate infrastructure:

It is a major drawback. It is not the case of less money but the
money is not being utilized in the right places and in the right manner. The
airlines in India, for example, are inefficient and do not provide basic
facilities at airports. The road condition in India is very bad.

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An intolerant attitude among certain sections of people:

This is among the people who do not like the foreigners and their
entry into the Indian Cultures as they feel that they will change the Indian
Culture and attitude and replace it with foreign culture.

No proper marketing of India’s tourism abroad:

Foreigners still think of India as a land of snake, villages, beggars
and elephants. The Indians have not made any efforts to change this
image and this has proved very costly as foreigners still think of Indians as
illiterates and narrow-minded

 OPPORTUNITIES

More proactive role from the government of India in terms of

framing policies:
The government is supporting India tourism industry with the recent
appointment of Mrs. Renuka Chaudhary a very intelligent and practical
woman who would like to develop India tourism. The Indian tourism
industry should take this as an opportunity and push forward its plans.

Allowing entry of more multinational companies into the

country giving us a global perspective:
This is going to develop and build the confidence in the minds of the
foreigners who would like to explore India.

Growth of domestic tourism:

Indian tourism will only develop if the roots are strong. So if the
Indians themselves travel around India the foreigners will feel confident to

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come to India.For eg: Thomas Cook says “Travel Now Pay Latter.”
Affordable traveling at leisure, plenty of job opportunities.

 Threats

Economic conditions and political turmoil in the other countries

affects tourism:
As a result of this people are afraid to venture outside their own
homes for fear of terrorist attacks and threats to their lives.

Aggressive strategies adopted by other counties like Australia,

Singapore in promoting tourism:
There are hardly any tourists who confidently come to India and if
the other countries offer better packages and places then there is no
reason why the tourists should visit India

The important task is to get tourism accepted as an instrument of

development and national integration. For this it is necessary to create
awareness of India’s charms as a tourist paradise and simultaneously
addressing the important issue of toning up infrastructure and then getting
down to marketing the product in a pragmatic and result oriented manner.
All segments of the tourism trade should get together ands hammer out a
strategy taking into account the ground realities and demands of the future.

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PEST ANALYSIS
Environmental influences can be analyzed by using the PEST
analysis.
 Political/Legal

Political factors are the main driving force of the industry. Govt.
support & co-operation to Indian Tourism Industry, railways and roads,
hotel industry, airline industry, tourist operators. Downfall of tourism
industry because of unconducive political environment e.g. Kashmir, Law
is different for different country & is the major determinant for the industry.
“Tax paid by tourists in India is the highest in the world. Indian hotels
charge about 40% tax compared to other Asian countries where it varies
between 3% and 6%".

 Economic:

The criteria here is the more the people spend the more the industry
grows. As we are concentrating on the International tourists, this has led to
the tourism boom. Increase in spend has led to increase in the number of
luxury hotels, & increase in air industry.

 Social:

The general perception for tourism destruction of the social fabric of

a place. The more the tourists coming at the place the more the risk of that
place loosing its identity.

 Technology:

Better technology in cheaper cost to remote and inaccessible area. It

can help the country to get connected to the world. It is very much

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necessary to have better technology to have that place on world tourist

map.

GOVERNMENT POLICES

The New Tourism Policy released in May 2002 has outlined the
following policy initiatives for the tourism sector:

1. The new policy is built around the 7-S Mantra of Swaagat

(welcome), Soochanaa (information), Suvidhaa (facilitation),
Surakshaa (security), Sahyog (cooperation), Sanrachnaa
(infrastructure) and Safaai (cleanliness).

2. The new policy envisages making tourism a catalyst in

employment generation, wealth creation, development of remote
and rural areas, environment preservation and social integration.
The policy also aims to spruce up economic growth and promote
India’s strengths as a tourism destination that is both safe and at
the same time exciting.

3. The policy proposes the inclusion of tourism in the concurrent list

of the Constitution so as to enable both the central and state
governments to participate in the development of the sector.

4. No approval is required for foreign equity of up to 51 per cent in

tourism projects. Enhanced equity is considered on a case-to-case
basis. NRI investment is allowed up to 100%.

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5. Approvals for Technology agreements in the hotel industry are

available on an automatic basis, subject to the fulfilment of certain
specified parameters.

6. Concession rates on customs duty of 25% for goods that are

required for initial setting up, or for substantial expansion of hotels.

7. 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.

8. Approved hotels are entitled to import essential goods relating to

the hotel and tourism industry up to the value of 25% of the foreign
exchange earned by them in the preceding licensing year. This limit
for approved travel agents/tour operators is 10%.

9. Hotels located in locations other than the four major metro cities
are entitled to 30% deduction from profit, for a ten-year period.

10. The expenditure tax has been waived in respect of hotels

located in the hills, rural areas, places of pilgrimage or specified
place of tourist importance.

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 TOURISM SECTOR

TOURISM IN INDIA
India is one of the popular tourist destinations in Asia. Bounded
by the Himalayan ranges in the north, and surrounded on three sides
by water (the Arabian Sea, Bay of Bengal, and the Indian Ocean), with
a long history and diverse culture, India offers a wide array of places
to see and things to do. In 2004, foreign tourists visiting India spent
15.4 billion USD - the ninth highest in the world. India is also ranked
among the top 3 adventure tourism destinations. One can expect to
spend about $1,750 in 2005 dollars for a two week visit, staying in
accommodations equivalent to Western ones.

Perhaps India's best-known site is the Taj Mahal, one of the

world's greatest architectural achievements. It was built between 1631
and 1653 by Emperor Shah Jahan in honor of his wife, Arjumand
Banu, more popularly known as Mumtaz Mahal. The Taj Mahal serves
as her tomb.

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 TOURISM SECTOR

One of the popular tourist circuits is called the Golden Triangle:

the cities Delhi; Agra (site of the Taj Mahal); and Jaipur. Delhi is
approximately 200 kilometers away from Agra, and 250 kilometers
from Jaipur.

India also has a large variety of protected wildlife. The country's

protected wilderness consists of 75 National Parks of India and 421
Sanctuaries, of which 19 fall under the purview of Project Tiger. Its
climatic and geographic diversity makes it the home of over 350
mammals and 1200 bird species, many of which are unique to the
subcontinent. Some well known national wildlife sanctuaries include
Corbett, Kanha, Sariska, Periyar, Ranthambore, and Bharatpur.

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Some of the popular tourists places are as follows:

 JAMMU AND KASHMIR-THE LAND OF HEAVENS

The Manasbal Lake near Srinagar, Jammu and Kashmir is 2000

meters above sea level.Tourist destinations in Jammu and Kashmir
include:

1. Srinagar
2. Jammu
3. Leh
4. Amarnath
5. Vaishno Devi

Other cities of interest in Northern India include Gwalior,

Khajuraho, Varanasi, Mathura, and Haridwar.

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 TOURISM SECTOR

 DELHI

Delhi,known in India as the "Lotus Temple", the Bahá'í House

of Worship is one of the most famous landmarks in the Delhi.

Delhi, the capital of the vast, mystic subcontinent that is India. A

fine blend of old and new, ancient and modern in every stream of life
is the soul of Delhi. A melting pot of cultures and traditions, religions
and castes Delhi is true to its democratic nature. Delhi has ruled
always from the mythological days to the present, the Aravali ridges
and the Yamuna river stand a mute witness to it. The rulers left behind
their trade marks in the architecture. Tughlakabad fort and the Qutab
Minar, the Jama Masjid and the Lotus temple, The Humayun's tomb
and the Red Fort, and India Gate and the Magnificent President's
house. Delhi is famous for its wide roads and crisp winters. One of the
few places in India where colours of nature changes with the seasons.
Kerala to Kashmir and from Gujarat to Assam all the mouth watering
delicacies and shopping goods are found in Delhi. The cosmopolitan
nature of the city has only added to the beauty and glory of it. Big
gardens, wide roads, ancient structures, and power of politics is what
Delhi is all about.

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 TOURISM SECTOR

 GOA

The sunny beaches of Goa attracts millions of tourists every

year.Goa is another popular destination, famous for its excellent
beaches, churches, and temples.

Goa, a tiny emerald land on the west coast of India situated

between the borders of Maharastra and Karnataka, is better known to
the world at large as the former Portuguese enclave on the Indian soil.
With the rule of the Portuguese for over 450 years and the
consequential influence of the Latin culture, Goa presents a somewhat
different picture to the foreign visitor than any other part of the
country. Not only the proportion of Christians (almost all of whom are
Catholics) in the total population of Goa much higher than that
obtaining in most of the other States; the general way of living is also
markedly different. Western influence is evident in the dress and food
habits, and the general life of the people is quiet and peaceful. A
striking feature of Goa is the harmonious relationship between the two
principal religious communities, the Hindus and the Catholics, who
have lived together peacefully for generations.

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 TOURISM SECTOR

 RAJASTHAN-THE LAND OF KINGS

Rajasthan has a rich history and culture making it one of the

most popular tourist destinations in India. Shown here is the Hawa
Mahal in Jaipur, Rajathan.Rajasthan, the "Land of the Kings", is one of
the most attractive tourist destinations in Northern India. The vast
sand dunes of the Thar Desert attract millions of tourists from around
the globe every year. Major visitor attractions in Rajathan include:

1. Jaipur - The capital of Rajasthan, famous for its rich

history and royal architecture.
2. Jodhpur, fortress-city at the edge of the Thar Desert,
famous for its blue homes and architecture.
3. Jaisalmer is famous for its golden fortress.
4. Barmer and surrounding areas offer perfect picture of
typical Rajasthani villages.
5. Bikaner is famous for its medieval history as a trade route
outpost.
6. Mount Abu is also one of the world famous tourist place.

```

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 TOURISM SECTOR

 ORISSA-SPIRIT OF Buddhism

Orissa has been a preferred destination from ancient days for

people having interest in spirituality, religion, culture, art and beauty
of the nature. Ancient and medieval architecture, pristine sea beaches,
nature at her beautiful best, the classical and ethnic dance forms and a
variety of festivals, all in combine attract tourists from far off places to
explore this state to a have a divine exposure of love and hospitality.

Orissa has kept alive Buddhism and the Buddha in its ancient
womb. The spirit of Buddhism still haunts the very air of Orissa. Rock-
edicts that have challenged time stand huge and over-powering by the
banks of the river Daya. The silent stones sing out songs of peace and
non-violence. The torch of Buddhism is still ablaze in the sublime
triangle at Udayagiri, Lalitgiri & Ratanagiri, on the banks of river
Birupa. The surrounding hills of Langudi and Kayama stand as mute
witness to the quirks and twists of history. Precious fragments of a
glorious past come alive in the shape of stupas, rock-cut caves, rock-
edicts, excavated monastries, viharas, chaityas and sacred relics in
caskets. Rock-edicts of Ashoka are a bonus for your eyes.

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 TOURISM SECTOR

 TAMIL NADU
Tamil Nadu has a rich culture and offers a wide selection of
temples famed for their architectural beauty. Some of the more
popular temple tour destinations include:

1. Chennai - The capital of Tamil Nadu has

the second longest beach in the world, the Marina Beach.
2. Madurai is known for the beautiful
Meenakshi temple.
3. Rameshwaram is famous for the longest
corridor in the world.
4. Kanyakumari, located at the tip of India,
is at the confluence of the Bay of Bengal, Arabian Sea and the
Indian Ocean. Recently a massive statue of Thiruvalluvar has been
installed here.
5. Kumbakonam, known for the numerous
temples in the town. The Mahamaham festival is held here once in
every twelve years and attracts millions of devotees to the place.
6. Tiruchirapalli known for its
Akhilandeshwari temple and Rockfort temple.
7. Thanjavur has the famous Brihadeeswara
temple.
8. The famous hillstations Kodaikanal and
Nilgiris offer the visitors a welcome relief from the usually hot
climate in the state.

 KARNATAKA
The southern state of Karnataka offers:

1. Bangalore, the IT capital of India, is also significant for its

history;

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2. Mysore, about 140km from Bangalore, has palaces, KRS Dam,

several temples, a Hindu temple atop Chamundi hills;
3. Srirangapatna, where nearby fortresses can be found (Tipu's);
4. Hampi the city of ruins (1500's when the Muslim kings destroyed
the prosperous Vijayanagar empire);
5. The Belur and Halebid temples are famed for their sculptural
beauty;
6. Sravanabelagola has a Jain temple dedicated to king Bahubali.
The statue is massive and a Maha Masthaka Abhishekham
performed one every year, attracts a huge number of pilgrims;
7. Sringeri, located in the western ghats, has a wonderful
temple dedicated to Sarada devi;
8. The Western Ghats offer many other places of exceptional
beauty like Agumbe, Horanadu etc.;
9. Madikeri, Kodagu, Talakaveri, Kemmanagundi all places of
immense natural beauty.

 KERALA-GOD'S OWN COUNTRY

Kerala, nicknamed as "God's own country", is one of the most
beautiful states in Southern India. Shown here is Munnar, in
Kerala.Kerala is an evergreen lush state, tucked away in the southern
corner of India. It is one of the most haunted visits of tourists in India.
The state has its own tourism brand name - "God's Own Country",
which has super-brand status. Kerala is famous for its backwaters and
lagoons. Kerala is also known for its Ayurveda. The state was nicked
as one of the "10 paradises of the world" by the National Geographic
traveller. The government of Kerala offers tourism packages related to
Ayurveda also. The major attractions in Kerala include:
1. Backwaters, lagoons, tropical beaches and spice
farms.

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 TOURISM SECTOR

2. Hill stations at Thekady and Munnar

3. Enchanting waterfalls at Athirapilly and Vazhachal
4. An exquisite flora and fauna at its wildlife santuries.
5. Its historical monuments.
6. The housboats of Alapuzha.

 MAHARASHTRA
Maharashtra with its diverse
geographical features provides a range
of tourist centres. The state has a 720-
km coastline dotted by rugs standing
as mute witnesses down the ages to
the march of warrior kings, foreign
trading vessels and invaders from
across the seas.
The beauty of Maharashtra is in its forts, caves and temples, so
much so that it is called 'Dagd-Ancha Desh', meaning the Land of
Rocks. It has a lot to offer to a visitor, its features are such that any
tourist will definitely find something of his interest from among its
beaches, forts, caves, temples, cities, wildlife sanctuaries, bird
sanctuaries etc. The intricately carved caves of Ajanta, Ellora and
Elephanta highlight the Indian heritage and the spellbinding Indian
Culture. Religious places like Pandharpur, Nashik, Shirdi,
Trimbakeshwar, Tuljapur, Ganapatipule, Bhimashankar etc are a
refreshing experience and make a fascinating whole.

Mumbai, the capital, can well claim to be (after Kolkata) the

second cultural centre of India. Also known as the First city of India, it
is one of the world's truly great cosmopolitan metropolises. Being the
economic powerhouse of India Mumbai is the most affluent and

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industrialised city in the country today. Its tradition of glamour and

showbiz makes it the city of dreams. Lively and pulsating, Mumbai is
India's answer to Hollywood, producing more films each year than any
other county in the world. It is also the centre of a healthy theatre
culture.

MAJOR PLAYERS IN TOURISM

 SOTC-A DIVISION OF KUONI TRAVEL INDIA LTD.

(VISITED)

A pioneer and market leader in outbound group travel, this

division markets and operates foreign holiday packages under the
SOTC World Famous Tours brand in India and in the big NRI markets
of the Middle East, USA and UK. It is also active in the Incentive Tours
and the Trade Fair Tours segments. SOTC operates from 26 branches
with over 400 employees in India.

 Highlights of SOTC
1. Pioneered Package Tours in India. Today, India's largest Outbound
Tour Operator with a distribution network of 116 points across the
country.
2. First to introduce package tours to NRI's. Today, 13 General Sales
Agents in 14 countries abroad: USA, Canada, UK, UAE, Saudi Arabia,
Bahrain, Kuwait, Oman, Kenya, Qatar, Tanzania, Hong Kong and
Singapore.
3. Turnover in excess of Rs.200 crores.
4. Has a special tour for Pure Vegetarians and Jains.
5. Launched Happy Holidays in 1997. Customers Holiday Abroad and
Pay Later in easy monthly installments.

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 TOURISM SECTOR

6. Has a Customer Club called SOTC Holiday Club patronized by over

20,000 frequent travelers.
7. Introduced Namaste India Holiday Club in year 2002 giving
opportunity to NRI's to discover India.
8. Awarded for Outstanding Performance in South Asia at the World
Travel Mart 1999.
9. Honoured by Switzerland with the renaming of Engel berg town as the
' SOTC Indian Village '.

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 TOURISM SECTOR

 VISIT REPORT
In the afternoon conversation started with Mr. Hemant
Manchekar, Assistant Manager, Retail Service of SOTC. Speaking about
Tourism, he explained us how important it is to provide best services and
make the tourist satisfied.
According to his views, tourism sector is fast booming resulting
in market competition among tour operators, he spoke about various
services offered like individual tours, group tours to various destinations
like Europe, Australia, New-Zealand, Egypt, China and so on , also about
the special packages that are on discounts for families individuals
packages as per the schemes.
Further about the segmentation of the company, he informed us
that they have to look at the market level, strategy, age-group, seasons,
and so on. They provide the customer services as per the tourists’
desires.
About the additional value to tourists, he said that they apply
various strategies, like wishing them on the occasions like Birthdays,
aniversies and so on. And also providing extra facilities and special
packages to regular customers. He informed about their Strength of the
company that “Sky is their Limit” as they are based on multinational
support from Swiss company, they have huge turnover and has captured
almost a big part of the tourism industry.
In India, their major competitors being Thomas Cook, Coxs And
Kings, Raj Travels and so on. Asking about the competitors strategy, he
replied that they provide various incentives and facilities like Group Tour,
Incentive Tour, Awards, Cricket Matches, corporate Travel. Etc. are
provided to customers.
At last, talking about the Indian economy, he stated that, it is
resulting in higher growth level of economy. Also other important factors
contributing to rising tourism sector are fall in air fares, ease getting of
visas, embassy support and give-take relations.

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(OTHER PLAYERS/COMPETITORS OF SOTC)

 COX & KINGS
Cox & Kings is the longest established travel company in the
world. Its distinguished history began in 1758 when it was appointed
as general agents to the regiment of Foot Guards in India under the
command of Lord Ligonier.

By 1878, C&K were agents for most British regiments posted

overseas, including the Royal Cavalry, Artillery and Infantry, as well as
the Royal Wagon Train and the Household Brigade. The Royal Navy
was next and in 1912, The Royal Air Force came under its wings.

Between 1750's and 1950's, Cox & Kings was witness to an

exciting era in Indian history, and, in its own way, helped to shape it.
In 1947, the British administration departed, but bound by strong ties
to India, Cox & Kings stayed on and flourished. Today, Cox & Kings is
a premium brand in all travel related services in the Indian
subcontinent, employing over 800 trained professionals.

 THOMAS COOK
Thomas Cook is one of the world's leading international travel
and financial services groups and serves over 20 million customers a
year. They provide services to customers at 4,500 locations in more
than 100 countries and employee over 20,000 people.

The Thomas Cook Holiday comes with a 150-year-old

guarantee of eternally sunlit memories. They couldn't expect any less
from the people who invented travel for leisure. They offer the world's
most enjoyable holidays, to exotic destinations in India and abroad

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 TOURISM SECTOR

where everything is taken care of from beginning to end. Customers

don't have to do a thing except, of course, have a good time.

They strategic mergers and alliances with the world's leading

leisure travel agencies allow the company to offer the Indian travelers
a choice of world-class international holidays. The tempting array of
choices includes budget tours with Cosmos; resort holidays with Club
Med and luxury cruises with Star Cruises, Cunard and others. For
those customers traveling in India, they provide the entire gamut of
services from customizing guided tours to arranging theme evenings.

 KESARI TOURS
Established in 1984, Kesari Tours is a premium travel company,
which offers world-class holidays in India and around the world. Kesari
have perfected their tour itineraries to meet the special needs of the
Indian tourist abroad.The motto of organization is 'No compromise
on quality'.

At Kesari Tours, they have made a promise to us; if they make a

promise to their customers, they honor it. They believe in honest,
transparent deals. No hidden costs and no compromise on sightseeing.
They strive for 100% satisfaction of tourists. Immense goodwill. That's
what they earned out of their beliefs.

Whether travelers visit their corporate office or any of their

branches across Maharashtra and India, they will experience the same
level of service and commitment. All their business associates, branch
offices and preferred sales agents are connected online and each one
has complete access to the sophisticated reservation system for up to
date information.Totally dedicated, hard working team strives for total

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 TOURISM SECTOR

customer satisfaction. Their team has a way of winning over hearts

effortlessly with their professionalism and warm behavior.

At Kesari tours, from youngsters to senior citizens, from couples

to families, everyone enjoys their tours to the fullest. Their personal
touch ensures maximum repeat passengers. Many lifetime friendships
begin on a Kesari tours holiday.

 RAJ TRAVELS
A passion for Travel & a vision for creating innovative travel
packages, two driving forces saw the beginning of a Travel Company in
a very modest way in Mumbai’s Masjid Bunder.

Raj travels started with conducting & managing tours to Srinagar

(the Switzerland of India) & to South India. The aggressive marketing
combined with several add-on features like inclusions of maximum
sightseeing, using top class hotels, catering to good food, innovative
ideas, a pre-departure get-together, games on tour, library, mobile
T.V & intercom, were some of the inclusions, which were unheard of.
This was their Unique Selling Point & it spoke for itself. A quality
product had to be with a high price tag. Customers chose it.
In 3 years time (1979), Raj Travels introduced International
tours. PATTAYA, BANGKOK, HONGKONG, MACAU, MANILA,
SINGAPORE, PENANG, and KUALA LUMPUR-the maiden tour was fully
packed with 44 people!!! A big number in those days. The tremendous
success & satisfaction of this tour paved way for Raj to hold its banner
high & it continues to do so till date. They are proud to say that year
after year they have improved on the product, adding new
destinations, new attractions, pro-active marketing, & building
customer confidence.

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 TOURISM SECTOR

The growth & success can be attributed to its constant

improvisation and introducing new features - be it the choice of Hotels,
choice of Airlines, or choice of Destinations. Awareness of the growing
trends in travel trend, up to the demands of the more educated and
savvy travelers.

Orlando, Madame Tussauds, Kukenhof Gardens, Fantasia land,

Holiday Park, TGV train ride, Hovercraft ride Safari, Helicopter ride,
Balloon ride, Ski flight, Dinners at Planet Hollywood, Hard Rock Café,
Rainforest Café, James Bond Breakfast at Schilthorn, Mt Titlis, Mt Rigi,
Dinner on 107th floor of World Trade Center, Para Sailing, Submarin
ride, Ride on MTR, the Singapore Zoo, Night all these and more were
brought to the discerning traveller, only in a Raj Tour.

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 TOURISM SECTOR

BOOMING TOURISM INDUSTRY

The year 2004-05 saw tourism emerging as one of the major
sectors for growth of Indian economy, the foreign exchange earnings
increased from Rs. 16,429 crore to 21,828 crore up to December.
Similarly in the last year, tourism industry registered a growth rate of
17.3% in foreign tourist arrivals, which has been the highest in last 10
years. Foreign exchange earnings grew at an even higher rate 30.2%.

India's tourism industry is thriving due to an increase in foreign

tourists arrivals and greater than before travel by Indians to domestic
and abroad destinations. The visitors are pouring in from all over the
world: Europe, Africa, Southeast Asia and Australia. At the same time,
the number of Indians traveling has also increased. Some tourists
come from Middle East countries to witness the drenching monsoon
rains in India, a phenomenon never seen in desert climates.

Domestic tourists are also fueling the industry's revival. Many of

them escape from the summer heat on the plains to resorts in the
Himalayan Mountains. One of the major beneficiaries this year is
Kashmir, where a cease-fire between India and Pakistan has reduced
violence, if not completely, at least enough to help revive the state's
sagging tourism industry.

Among the most favoured tourist destinations in India, Kerala for

its scenic beauty, Agra for Taj Mahal, Khujraho for its sculptures and
temples, Goa for its beaches and some pilgrimages are the most
important.

Interesting feature of this growth is that it has come even as

global tourism has dropped, due to the September 11 terrorist attacks
in the United States, the outbreak of Severe Acute Respiratory
Syndrome in East Asia, and the Iraq war. Even the disastrous tsunami

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 TOURISM SECTOR

didn't affect India's tourism industry, as tourist arrivals in India rose

23.5 percent in Dec 2004 and tourist arrivals crossed 3 million mark
for the first time in 2004. The disaster was expected to have a
negative impact on India's tourism in terms of large-scale cancellations
of tourists to India but nothing of that sort was seen.

 REASONS FOR THIS BOOM

There could be several reasons for the buoyancy in the Indian
tourism industry. First, the upward trend observed in the growth rate
of Indian economy has raised middle class incomes, prompting more
people to spend money on vacations abroad or at home. Also, India is
booming in the information technology industry and has become the IT
center. Aggressive advertising campaign "Incredible India" by the
government has also had contribution in changing India's image from
that of a land of snake charmers, and sparking new interest among
overseas travellers.

 TOURISM’S CONTRIBUTION TO INDIAN ECONOMY

It is not hidden that tourism is among India's important export
industries. Even with comparatively low levels of international tourist
traffic, tourism has already emerged as an important segment of the
Indian economy. Tourism also contributed to the economy indirectly
through its linkages with other sectors like horticulture, agriculture,
poultry, handicrafts and construction. Foreign exchange earnings from
tourism during 2003-04 were US $ 3,533 million ( Rs 16,429 crore).

Besides being an important foreign exchange earner, tourism

industry also provides employment to millions of people in India both
directly and indirectly ( through its linkage with other sectors of the

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economy.) It is estimated that total direct employment in the tourism

sector is around 20 million.

 MEASURES TAKEN FOR TOURISM PROMOTION

Recently, Indian government adopted a multi-pronged approach
for promotion of tourism, which includes 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.

A nation wide campaign, for creating awareness about the

effects of tourism and preservation of our rich heritage & culture,
cleanliness and warm hospitality through a process of training and
orientation was launched during 2004-05. The aim was to rebuild that
sense of responsibility towards tourists among Indians and re-enforces
the confidence of foreign tourist towards India as a preferred holiday
destination. More than 6500 taxi drivers, restaurant owners and guides
trained under the programme.

Government also took several other initiatives to promote Indian

tourism industry and increased the plan allocation for tourism i.e. from
Rs 325 crore in 2003-04 to Rs. 500 crore in 2004-05. Road shows in
key source markets of Europe, Incredible India campaign on prominent
TV channels and in magazines across the world were among the few
steps taken to advertise Indian tourism. In addition a task force was
set up to promote India as prominent health tourism destination.

However, in order to attract more visitors, India still needs to

upgrade its airports, roads and other infrastructure to global
standards. Even with the recent surge, tourist arrivals are just a mere

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percentage of those in such popular Asian destinations like Bangkok

and Thailand.

 RECENT DEVELOPMENT IN TOURISM INDUSTRY

India Tourism office at Tokyo won two International Awards in
Tour Expo held at Daegu in Korea for excellent tourism promotion.
Indian Pavilion won the Best Booth Design Award as well as Best
Folklore Performance Award competing with major players in tourism
such as China, Japan, Thailand, Malaysia and Canada.

The theme of pavilion was the Buddhist pilgrimage in India. Multi

promotional activities undertaken by Tokyo office drew a large crowd
to India Pavilion, which added colours to the entire travel show. The
Korea’s leading newspapers published on the front page the Incredible
India booth’s photographs highlighting various aspects. The live Yoga
performance and Indian traditional snacks at the pavilion were enjoyed
very much by the visitors.

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 TOURISM SECTOR

ARTICLE

 TOURISM – THE FIRST COMMERCIAL VENTURE.

A religious Englishman called Thomas Cook in 1841 arranged, for

a fee, a one –day rail excursion from Leicester to Lough borough for
540 members of a temperance league. Thus the first bona fide travel
agent was Thomas Cook.

While Cook himself did not make a profit on this first venture, he
was a man of vision and was convinced that there was a need for a
skilled “travel arranger”. So by 1845 he had become the first full-
time travel agent, operating train excursions from Leicester.

The next year he chartered a train and steamer for an excursion

to Scotland for 330 people. In 1851 Cook arranged ocean steamship
travel and accommodations for more than 1,50,000 visitors to the
World Exposition in London and in 1856 he operated the first escorted
“grand tour” of Europe. Tours to Europe and Middle East were also
conducted and, in 1872, the first around the world tour was
conducted.

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CONCLUSION
Wars, tsunami and bird flu etc. are serious problems that have a
significant affect on tourism. But, these are not the elementary
problems. Infrastructure is one primary problem to many industries in
India. Infrastructure in India has improved but still it is far from what
is required to become a world tourist destination. Another one is the
infamous corruption of India, which is a major obstacle to the tourism
industry.Resolving these issues will itself help in overcoming other
smaller problems mentioned above.

Government of India has a target of 10% GDP growth rate, with

the present growth rate at around 8%. To maintain such a high growth
rate and increase the employment opportunities also at the same rate,
it has to exploit the highly potential and growing sectors like Tourism.
And, to fully exploit these sectors, problems related to these sectors
should be addressed along with the fundamental issues like
infrastructure and corruption.

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