“Evolution of International Travel and Tourism

Industry in Indian Economy”

AN ANALYSIS REPORT
Submitted by,

YASH PATEL (09)

SANTOSH VISHNOI (028)

M.B.A. Finance (Semester- 4, Section –B)

Guided by,

PROF. (DR.) MUNIRA HABIBULLAH

In fulfilment for the Term Work of Subject

INTERNATIONAL FINANCIAL MANAGEMENT
for the course of
MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF BUSINESS AND INDUSTRIAL

MANAGEMENT
VEER NARMAD SOUTH GUJARAT UNIVERSITY, SURAT

1
 CERTIFICATION

This is to certify that, Yash Patel and Santosh Vishnoi, students of Master
of Business Administration at Department of Business And Industrial
Management, VNSGU have undertaken a project titled “Evolution of
International Travel and Tourism Industry in Indian Economy” in
partial fulfilment of the assignment for semester-4 in the subject of
International Financial Management under the supervision of Dr. Munira
Habibullah. The research report is not submitted to any other university or
institute for the award of any degree.

Date:

Dr. Munira Habibullah

2
 DECLARATION

We hereby declare that this research report titled “Evolution of

International Travel and Tourism Industry in Indian Economy”
submitted to the Department Of Business And Industrial Management,
VNSGU is a record of original work done by M.B.A Semester- 4
(Finance) students under the guidance of Dr. Munira Habibullah.

The information and data in the report is authentic to the best of our
knowledge.
The research report is not submitted to any other university or institute for
the award of any degree.

YASH PATEL - 09

SANTOSH VISHNOI - 028

3
 TABLE OF CONTENTS

Sr. No. Contents Page No.

1 Chapter-1 Introduction 5

2 Chapter-2 Literature Review 10

3 Chapter-3 Research Methodology 13

4 Chapter-4 Data Analysis and Interpretation 16

5 Chapter-5 Conclusions and Summary 27

6 Bibliography 28

7 Annexure-1 (Questionnaire) 29

CHAPTER- 1. INTRODUCTION
India’s Travel & Tourism sector ranks 7th in the world in terms of its total contribution to the
4
country’s GDP, shows a new report by the World Travel & Tourism Council (WTTC).
According to the new data, Travel & Tourism generated INR14.1 trillion (USD208.9 billion)
in 2016, which is the world’s 7th largest in terms of absolute size, the sum is equivalent to
9.6% of India’s GDP. Additionally, the sector supported 40.3 million jobs in 2016, which
ranks India 2nd in the world in terms of total employment supported by Travel & Tourism.
The sector accounts for 9.3% of the country’s total jobs. India’s Travel & Tourism sector was
also the fastest growing amongst the G20 countries, growing by 8.5% in 2016. A further
6.7% growth is forecast for 2017. India’s strong Travel & Tourism figures are predominantly
generated by domestic travel, which accounts for 88% of the sector’s contribution to GDP in
2016. Visitor exports, money spent by foreign travelers in India, only represents 12% of
tourism revenues and in 2016 totaled INR1.5 trillion (USD22.8bn). This is 5.4% of the
country’s total exports, compared to a global average of 6.6%. Data from the UN World
Tourism Organization (UNWTO) shows that India received only 9 million international
arrivals in 2016, placing it 40th in the world, and a tenth of those received by top-ranking
France. However, there is a lot of potential for India to grow their visitor exports. Over the
past few months India has already starting to address this gap and made significant changes to
visa facilitation, which will help to boost international arrivals. It is every year up warding the
revenue in the economy of India. The operating profits were Rs. 24.38 Crore only from ITDC
hotels. In this way we can say the Tourism and Hospitality Industry is playing a vast role in
the contribution of economy of India.
Every Year the industry earns in billions of US$ from domestic and foreign visitors. Also the
tourism and hospitality industry contributes money in the foam of various taxes like Capital
Gains Tax, Corporate Tax, Service Tax, Excise Duty, Personal Income Tax, Value Added
Tax, Wealth Tax etc for the Indian economy. The Tourism and Hospitality Industry is also
playing the gigantic role in the employment of India. There are so many national and
international Key Players of Hospitality Industry in India those are the generating revenue
and tax which is contributed in the economy of India. National: Indian Hotels, EIH, Taj GVK
Hotels, Hotel Leela Venture, Bharat Hotels and Asian Hotels, ITDC and Orient Hotels Ltd.
International: Hilton, Shangri-La, Radisson, Marriott, Meridian, Sheraton, Hyatt, Holiday
Inn, Inter Continental and Crown Plaza.

5
 SEGMENTS OF TOURISM AND HOSPITALITY

a) Accommodation and catering: Accommodation could be hotels & motels,

apartments, camps, guest houses, lodge, bed & breakfast establishments, house boats,
resorts, cabins & hostels. In addition, tourists also require catering facilities, which
includes include hotels, local restaurants, roadside joints, cafeterias & retail outlets
serving food & beverages.
b) Transportation: Comprises airline companies, cruise services, railways, car rentals &
more. A tourist’s choice of transport would depend on the travel budget, destination,
time, purpose of the tour & convenience to the point of destination.
c) Attractions: Another major component of the travel & tourism industry is
‘attractions’ such as theme parks & natural attractions including scenic locations,
cultural & educational attractions, monuments, events & medical, social or
professional causes.
d) Travel agents: A fragmented sector with a number of independent travel agents &
many online businesses. They also sell associated products such as insurance, car hire
& currency exchange. Business travel agencies specialize in making travel &
accommodation arrangements for business travelers & promoting conference trades.
e) Tour operators: Offer customized tours, including travel, accommodation & sightse

The Indian tourism and hospitality industry has emerged as one of the key drivers of growth among
the services sector in India. Tourism in India has significant potential considering the rich cultural
and historical heritage, variety in ecology, terrains and places of natural beauty spread across the
country. Tourism is also a potentially large employment generator besides being a significant source
of foreign exchange for the country. During 2018, FEEs from tourism increased 4.70 per cent*
year-on-year to US$ 28.59 billion. FEEs during January 2019 was US$ 2.55 billion.

Market Size
India is the most digitally-advanced traveller nation in terms of digital tools being used for
planning, booking and experiencing a journey, India’s rising middle class and increasing disposable
incomes has continued to support the growth of domestic and outbound tourism.
During 2018, foreign tourist arrivals (FTAs) in India stood at 10.56 million, achieving a growth rate
of 5.20 per cent year-on-year. FTAs in January 2019 stood at 1.10 million, up 5.30 per cent
compared to 1.05 million year-on-year. During May 2019, arrivals through e-tourist visa increased
by 21.70 per cent year-on-year to 1.23 million.
The travel & tourism sector in India accounted for 8 per cent of the total employment opportunities
generated in the country in 2017, providing employment to around 41.6 million people during the
same year. The number is expected to rise by 2 per cent annum to 52.3 million jobs by 2028.
International hotel chains are increasing their presence in the country, as it will account for around
47 per cent share in the Tourism & Hospitality sector of India by 2020 & 50 per cent by 2022.

Investments
During the period April 2000-March 2019, the hotel and tourism sector attracted around US$ 12.35
billion of FDI, according to the data released by Department for Promotion of Industry and Internal
Trade (DPIIT).

Government Initiatives
The Indian government has realised the country’s potential in the tourism industry and has taken
several steps to make India a global tourism hub.
Some of the major initiatives planned by the Government of India to give a boost to the tourism and
hospitality sector of India are as follows:

 Statue of Sardar Vallabhbhai Patel, also known as ‘State of Unity’, was inaugurated in
October 2018. It is the highest standing statue in the world at a height of 182 metre. It is
expected to boost the tourism sector in the country and put India on the world tourism map.
 The Government of India is working to achieve 1 per cent share in world's international
tourist arrivals by 2020 and 2 per cent share by 2025.
 Under Budget 2019-20, the government allotted Rs 1,160 crore (US$ 160.78 million) for
development of tourist circuits under Swadesh Darshan.
 Under Budget 2019-20, the government allotted Rs 160.50 crore (US$ 22.25 million) for
development of tourist circuits under Swadesh Darshan.

Achievements
Following are the achievements of the government during 2017-18:

 During 2018-19, a total of seven projects worth Rs 384.67 crore (US$ 54.81 million) were
sanctioned under the Swadesh Darshan scheme.
  As of July 2018, 14 states had deployed tourist police. In November 2018, Nagaland also
deployed a separate tourist police in the state.

EVOLUTION OF THE INDIAN TOURISM AND HOSPITALITY SECTOR

PERIOD EVOLUTION
Pre 1990  The National Tourism Policy was announced in 1982
 Government Formulated a comprehensive plan in 1988 to
promote Tourism

1990-2000  Various states of India declared Tourism as an Industry

 Government stressed on Private- Public Partnership in the sector
 Government Policies give a boost to hotel Industry

2000-2005  Online Travel Portals and low-cost carrier airlines gave a boost to
domestic tourism
 A National policy on tourism was announced on 2002, focusing
on developing a robust infrastructure

2005 onwards
attract tourists
Wellness Tourism Promotion Board
formed in 2015.
-east
states in August 2016.
– tourist visa launched and 1.697 million tourists arrived in
India in 2017 through these visas.
d Tourism sector accounted for 9.3 per cent of
employment opportunities in India.

ADVANTAGES TO INDIA
ROBUST DEMAND
  Foreign tourist arrivals expected to increase at a CAGR of 7 per cent over 2005–25.

 By 2020, medical tourism industry of India is expected to touch US$ 9 billion.

 10.177 million foreign tourists visited India in CY 2017, witnessing increase of 15.6
percent from CY 2016.

ATTRACTIVE OPPORTUNITIES

 India has a diverse portfolio of niche tourism products – cruises, adventure, medical,
wellness, sports, MICE, eco-tourism, film, rural & religious tourism
 In January 2017, Federation of Indian Chambers of Commerce & Industry
(FICCI) announced the launch of India Travel Tech Launchpad.

DIVERSE ATTRACTION

 India offers geographical diversity, attractive beaches, 30 World Heritage Sites and
25 bio-geographic zones
 The country’s big coastline is dotted with a number of attractive beaches

POLICY SUPPORT

 The Visa on Arrival scheme was extended to 150 countries in 2015

 A 5-year tax holiday has been offered for 2,3 and 4 star category hotels
located around UNESCO World Heritage sites (except Delhi & Mumbai)
 Under the Swadesh Darshan scheme, 13 thematic circuits in the country have been
selected for development of tourism infrastructure.
 CHAPTER- 2. LITERATURE REVIEW

The reviews taken from various e-journals, magazines, newspapers and from various
websites, which already done in related study.

“Hotel Industry is one of the important components of tourism industry. The definition of
tourism industry can’t be completed without mentioning the presence of a hotel. A hotel is a
place which provides a space to stay, some food & beverages to eat and drink, and some
facilities to enjoy. Hotel industry is playing a vital role in earning millions of dollars from
foreigners and thus contributing towards revenue generation and increasing employment
opportunities to the host community”, explain by Sharma, A. and Kukreja, S. (2013), also
present paper with “highlights the significance of hotel industry in Indian economy, their
demand and supply scenario, and various challenges before hotel Industry and Government
efforts to remove the problem associated with this industry.” Kulkarni, A. (2012), examine
that, apart from traditional business or leisure travel, India’s hospitality sector has been
witnessing interest from a variety of segments like meetings, incentives, conferences and
exhibitions (MICE), wellness tourism, and spiritual and pilgrimage tourism. “The demand
has been strong from both foreign as well as domestic tourists”. “Given the rather diverse
nature of demand, the hospitality industry is also looking at creating adequate products to
service the varied tourist requirements. With support and initiatives by the governments at
various levels, the hospitality sector is moving toward comprehensive growth.” Pinto, O.R.
(2012), give justification that “there are various factors that affect the Indian economy but
the researcher through this study wants to find whether the impact of global recession has
affected the Indian economy severely or gradually decreases with new initiative policies.
The utility of the study is to know how are the Hospitality industries growing after global
recession in terms foreign tourist arrivals, generation of foreign exchange reserves and how
are they contributing to the Indian economy in terms of GDP, reduction in inflation, rising
of stock markets”. Nigam, V. and Srivastava, S. (2011), they focus on the “impact of global
economic meltdown on Tourism industry in India as a whole with the case study of
Lucknow city. Tour operators, Hoteliers, and other government officials of tourism were
interviewed and make out the problems and prospects of tourism industry. It also helps to
analyse the remedial measures which could be taken at the time of recession.” According to
Ratheiser, D. (2010), “the contribution of the entire travel and tourism sector in India to
Gross Domestic Product is estimated 8.6% (USD 117.9 billion) in 2010 to 9.0% (USD 330.1
billion) by 2020. Between 2010 and2019 the demand for travel and tourism in India is
expected to grow annually by 8.2%, which will place India at the third position in the world.
Travel and tourism in India also accounts for 49,086,000 jobs in 2010 (about 10% of total
employment) and is expected to rise to 58,141,000 jobs (10.4% of total employment) by
2020 (World Travel and Tourism Council, 2009).” Muthe, P.R. (2010), explain that the
“Indian economy is consist of majorly three sectors (1) Primary sector (known as
agriculture), (2) Secondary sector (known as Industry) and (3) Tertiary sector (known as
service sector) which service sector recently alone contribute 55.1% of Indian GDP. The
author analyse the impact of global recession on service sector in India, specially Tourism
and Hotel Industry in the country, because tourism and hotel industry has playing the vital
role in service sector regarding economic development of Indian economy. They focus on
further challenges and opportunities for tourism and hotel industry during recession period.”

Sachid Nand Singh (1986) in his research paper “Geography of tourism and recreation”
concluded that managers must understand the importance of satisfaction of every customer,
and should chalk out appropriate after sale services too. Vavra, T.G. (1997) in his book”
Improving your measurement of customer satisfaction” suggested specific programmers to
improve the measurement of customer satisfaction in an organization. Smith, A.K. et al
(1999) in their paper “A Model of Customer Satisfaction with Service Encounters Involving
Failure and Recovery” viewed that economic and social interaction between the customer
and the organization can be triggered by a service failure/recovery encounter. Nelson
Tsang and Hailin Qu (2000) in their research paper “Service quality in China‟s hotel
industry: A perspective from tourists and hotel managers” Analyzed the perceptions of
service quality in China‟s hotel industry from the perspective of both international tourists
and hotel managers. Roger J. Challan and Gabrielle Kyndt (2001) in their research paper
“Business Travelers‟ Perception of Service Quality” identified a number of differences in
the expectations between the international and British business traveler.. Silvia Figini and
Paolo Giudici (2002) in their research paper “Statistical Model for Customer Satisfaction
Data” measuring risks with ordinal variables studied the possible methods to obtain data to
measure customer satisfaction, The paper proposed five levels of opinions for the customers
viz. „very unsatisfied, moderately unsatisfied, neutral, moderately satisfied, and very
satisfied. Malthouse, E.C. et al (2003) in their research paper “Customer Satisfaction across
Organizational Units” examined customer satisfaction across organizational units. The
research paper discussed various customer satisfaction models Karnikeya Budhwar (2004)
in his research paper “An Analysis of the Gap between Management Perceptions and
Customer Expectations”, conducted the research to evaluate the crucial factors that would
impact the restaurant‟s success or failure;. Halil Nadiri and Kashif Hussain (2005) in their
research paper, “Diagnosing the Zone of Tolerance for Hotel Services”, Managing Service
Quality, examined the tolerance zone of customers‟ service and determined the level of
customer satisfaction in Northern Cyprus hotels. Customer Lifetime Value” studied the
word-of-mouth (WOM) and the customer lifetime value (CLV). Biju M.R. (2006) in his
book titled “Sustainable Dimensions of Tourism Management” critically analyzed various
aspects of tourism industry. Rizaldi and Wijaya (2006) in their research paper “Analysis of
five SERVQUAL Dimensions through Disconfirmation Theory Approach to Establish a
Level of Customer Satisfaction at Indrapuyra Restaurant, South India, Netherlands Thayne
Forges (2007) in his working paper on “Valuing Customers” argued that one of the
important intangible assets of any business is the value of customers. Sharma Sunil (2007)
in his book titled “Planning and Development of Tourism and Hospitality” provided a broad
overview of planning and development issues in hospitality and tourism industry. Jessica
Prois (2009) in her article titled “Study measures value of guest experience” said that
travelers still expected a top-notch experience, even though hotels were cutting back. But a
quality hotel experience doesn‟t necessarily mean providing more, but rather something
different. Thomas Petermann and Christoph Revermann (2010) in their research paper
“Future Trends in Tourism” stated that in the tourist system the socio demographic shift-and
specifically the advancing ageing of society-would result in far reaching changes,
particularly on the demand side. Anurag Kothari (2011) in his research paper “Tourism
Marketing” observed that for a tourist product, the basic raw materials are the country’s
natural beauty, climate, history, culture and the people.
 CHAPTER- 3. RESEARCH METHODOLOGY

3.1 Problem Statement:

Evolution of International Travel and Tourism Industry in Indian

Economy
3.2 Research Objectives:
 To Study about the Growth of Tourism Industry in Indian Economy
 To Study about Foreign Capital Inflows though Tourism Industry in India
 To Study about Domestic capital outflow in consideration to few Tours, Travels and
Immigration Agencies of Surat City.

3.3 Research Design:

The research requires developing the most efficient plan for gathering the needed
information. This involves decision on the data sources, research approaches, research
instrument, sampling plan and contact method.

 Scope of study: We will study about overall Tourism Industry with perspective of
International travelling inward and outward through India. To carry out this, we will
analyze different countries tourism trend in India with Statistical data analysis. So, this
study will be helpful for finding out the current Indian trend in International Tourism
Industry and its Contribution in the Indian Economy (GDP) and also for effective
strategy formulation by different organizations and Travel Agencies in India.

 Types of Research Design

 Exploratory Research: Exploratory research is conducted when researcher does not
know how and why certain phenomenon occurs. The prime goal for this research is to
know unknown, this research is unstructured. This study will be carried out Survey
regarding the Tourism Trend and Financials by consulting different Traveling
Agencies in Surat City.
 Descriptive Research: Descriptive research is carried out to describe the phenomenon
or market characteristics. This study is to be carried out to describe the financial and
Comparative analysis of different Countries Foreign Tourists arrivals in India.
 Causal Research: Causal research is done to establish the cause and effect
relationship.

 Sampling:

Since it is not possible to study the whole universe, it becomes necessary to take sample
from the universe to know about its characteristics.

 Sample Technique The sampling technique that used in the study is Non
Probabilistic Convenience Sampling. The data is collected from International
Tourism Services Agencies of Surat City.
 Sample Size: Sample size for the project is 1 International Tourism Services
Agencies of Surat City.
 Sample frame: International Tourism Services Agencies of Surat City.

 Data Collection:
 Primary Data

The data will be collect from International Tourism Services Agencies through
structured questionnaire.
 Secondary Data

The information related to research subject is collected through journals, Books and
Internet.
 Tools for analysis:- Microsoft Excel
SPSS

3.4. Limitations of the study

  As the whole area & all Agencies cannot be visited. So only Random samples
are taken from different areas of Surat city. So, the study which may differ
result from whole.
 This study is limited for only International Tourism in India. So, The overview
of the study is limited to these areas only.
 Level of accuracy of results of research is restricted to the accuracy level with
which people have given answers and the accuracy level of the answer cannot
be predicted.
 And our research is limited to only Current Time (2019) of the study only.
 Data Analysis of Capital Outflow is limited to few agencies of Surat City only.
So, it will not give the complete picture of whole country.

3.5. Benefits of the study

 Through the study we can get the idea about the growth of International Tourism
to the India and from the India and One can find out Future trends Of Indian
Tourism Industry.
 We can analysis the foreign capital outflow and inflow through Tourism
Industry and its contribution to Indian Economy.
 CHAPTER- 4. DATA ANALYSIS AND INTERPRETATION

 Below Table is Showing the data related to Foreign Tourist arrivals (FTAs) ,
Non-resident Indians (NRIs) and International Tourist arrivals.

Percentage International Percentage

NRIs Percentage (%)
FTAs in (%) change Tourist (%) change
arrivals in change over
Year India (In over arrivals in over the
India (in the Previous
Millions) previous India (in Previous
million) Year
year million) Year
2001 2.54 -4.2 - - - -
2002 2.38 -6 - - - -
2003 2.73 14.3 - - - -
2004 3.46 26.8 - - - -
2005 3.92 13.3 - - - -
2006 4.45 13.5 - - - -
2007 5.08 14.3 - - - -
2008 5.28 4 - - - -
2009 5.17 -2.2 - - - -
2010 5.78 11.8 - - - -
2011 6.31 9.2 - - - -
2012 6.58 4.3 - - - -
2013 6.97 5.9 - - - -
2014 7.68 10.2 5.43   13.11  
2015 8.03 4.5 5.74 5.7 13.76 5
2016 8.8 9.7 6.22 8.5 15.03 9.2
2017 10.04 14 6.77 8.8 16.81 11.8
2018 10.56 5.2 6.87 1.4 17.42 3.7
Source: (i) Bureau of Immigration, Govt. of India
So, From the data, one can analyse that Foreign Tourists arrivals (FTAs) with NRIs arrivals
in India is continuously growing at average ate of 8.25% from 2001 to 2019. So, there is a
good opportunity for the Tourism Industry and related organisations in India.

 Below Table is showing data related to Foreign Tourist Arrivals in India on

Monthly Basis for Last Three years. And also changes in percentage changes
in the Tourists arrivals compared to previous year.
  Foreign Tourist arrivals (FTAs) in India Percentage (%) change
month 2017 2018 2019 2018/17 2019/18
January 9,64,109 10,45,035 11,03,380 8.4 5.6
February 9,31,025 10,49,255 10,87,694 12.7 3.7
March 8,85,936 10,21,530 9,72,866 15.3 -4.8
April 7,17,899 7,45,051 7,71,353 3.8 3.5
May 6,22,408 6,06,522 6,10,590 -2.6 0.7
June 6,63,470 6,83,928 7,21,015 3.1 5.4
July 7,79,309 8,06,495   3.5  
August 7,19,129 7,86,003   9.3  
September 7,19,964 7,19,845   0  
October 8,66,976 8,90,229   2.7  
November 9,97,738 10,12,564   1.5  
December 11,67,840 11,91,472   2  
Total (Jan-June) 47,84,847 51,51,321 52,66,898 7.7 2.2
Total (Jan-Dec) 10035803 10557929   5.2  
Source: (i) Bureau of Immigration, Govt. of India, for 2017,2018 & 2019

Foreign Tourist arrivals (FTAs) in India

 From the Above data, one can find that Every Year arrival of International Tourists
in India decline during the months from April to August. While, These Numbers
start increasing from September to December. This Pattern is almost similar in
Every year.
 This phenomenon is happening because of the Seasonal changes and Vacation
season internationally. In India, from the months of March to July is summer season
and having high atmospheric temperature. While, November to February, the
Winter season is going on. So, it is good time for foreign travelers to explore India.

 CONTRIBUTED GROWTH IN INVESTMENT IN THE TOURISM

SECTOR

 India’s tourism sector attracted capital investments of Rs 2,284.9 billion which was 5.7 per
cent of total investment (US$ 34 billion) received during 2016. They are expected to grow
by 5.7 per cent over the upcoming 10 years

 International hotel chains are increasing their presence in the country, as it will account for
around 47 per cent share in the Tourism & Hospitality sector of India by 2020 & 50 per cent
 by 2022, increasing from 44 per cent in 2016
 Berggruen Hotels is planning to add around 20 properties under its midmarket
segment 'Keys Hotels' brand across India, by 2018
 Hilton plans to add 18 hotels pan India by 2021, along with 15 operational hotels
under its brands namely Hampton, Hilton Garden Inn, Conrad, Hilton Hotels &
Resorts & DoubleTree by Hilton.
 In 2018, Marriott International plans to add 20 more properties to its existing
portfolio of 98 hotels in India.
 Visakhapatnam port traffic (million tons) Capital investments in the tourism sector
(US$ billion)
 Government’s collective spending on tourism & hospitality sector, in 2016 stood at
around US$ 2.4 billion
 The government’s collective spending is expected to increase to Rs 320.1 billion
(US$ 4.87 billion) by 2027

 CONTRIBUTION TO GDP
 2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
0
10

Contribution to GDP (in billions)

20
30
40
50
60
70
80
90

The below chart shows the contribution of Tourism Industry to Indian GDP (Gross
Domestic Production)

 Tourism in India accounts for 9.6 per cent of the GDP & is the 3rd largest foreign
exchange earner for the country
 The tourism & hospitality sector’s direct contribution to GDP in 2016, was US$ 71.7
billion. This is expected to rise by 6.9 per cent to US$ 76.6 billion in 2017.
 During 2006–17E, direct contribution of tourism & hospitality to GDP is estimated to
have registered a CAGR of 14.05 per cent
 The direct contribution of travel & tourism to GDP is expected to reach US$ 148.2
billion by 2027
 The sector’s total contribution to GDP stood at US$ 208.9 billion (9.6 per cent of
GDP) in 2016 and is forecast to rise by 6.7 per cent in 2017, and to rise by 6.7 per
 cent pa to Rs 28,491.8 billion (US$ 424.5 billion), 10 per cent of GDP in 2027.
 In December 2017, the country earned foreign exchange of around US$ 3.038 billion,
from the tourism sector.

 SOURCE COUNTRIES FOR FTAs IN INDIA IN 2018

The below table is showing analysis of Major countries for Foreign Tourist Arrivals (FTAs)
in India in 2018 with Percentage share of the particular country

Percentage (%)
Sr. No Source country FTAs
Share

1 Bangladesh 2256675 21.37

2 United States 1456678 13.8

3 United Kingdom 1029758 9.75
4 Sri Lanka 353684 3.35

5 Canada 351040 3.32

6 Australia 346486 3.28

7 Malaysia 319172 3.02
8 China 281768 2.67
9 Germany 274087 2.6
10 Russian Fed 262309 2.48
Total top 10 countries 6931657 65.65
others 3626272 34.35
Grand Total 10557929 100
Source: Bureau of Immigration, Govt. of India
 Percentage share of Different countries FTAs in India in 2018

Banglade
sh
21%
Others
34%

United
States
14%
Russian
Germany
Fed China United
3%
2%Malaysia Sri Lanka Kingdom
Australia
Canada
3%
3% 3%3%3% 10%

 As per the data, Bangladesh has the highest percentage Share around 21% of Foreign
Tourist Arrivals in India
 Second Highest Foreign Tourist Arrivals are from the United States of America,
which are around 14% of Total Tourist arrivals.
 Third Highest Foreign Tourist Arrivals are from the United States of America, which
are around 10% of Total Tourist arrivals.
 Other major countries like Sri Lanka, Canada, Australia, Malaysia, China, Germany,
Russian Fed etc. have almost similar percentage share of Foreign Tourist Arrivals
(FTAs).

 ESTIMATES OF FOREIGN EXCHANGE EARNINGS (FEEs) FROM

TOURISM OF INDIA
The Below Data is showing the estimates of Foreign Exchange Earnings (FEEs) from
Tourism of India from 2000 to 2018

FEE from Tourism Percentage (%) FEE from Percentage (%)

Year in India (in USD $ change over the Tourism in India change over the
Millions ) previous year (in Rs. crore) previous year

2000 3460 15 15626 20.7

2001 3198 -7.6 15083 -3.5
2002 3103 -3 15064 -0.1
2003 4463 43.8 20729 37.6
2004 6170 38.2 27944 34.8
 2005 7493 21.4 33123 18.5
2006 8634 15.2 39025 17.8
2007 10729 24.3 44362 13.7
2008 11832 10.3 51294 15.6
2009 11136 -5.9 53754 4.8
2010 14490 30.1 66172 23.1
2011 17707 22.2 83036 25.5
2012 17971 1.5 95607 15.1
2013 18397 2.4 107563 12.5
2014 19700 7.1 120367 11.9
2015 21013 6.7 134844 12
2016 22923 9.1 154146 14.3
2017 27310 19.1 177874 15.4
2018 28585 4.7 194882 9.6
Source: (i) Reserve Bank of India, for 2000 -2015 (ii) Ministry of Tourism, Govt. of India for 2016-2018
  Foreign Exchange Earnings (FEEs) from Tourism in India in both terms (USD and
INR) have increased significantly from 2000 to 2018.
 In 2000, The FEE was around 3460 Million USD, which has been increased to 28585
Million USD in 2018. Which shows CAGR growth in FEE at around 12.45%.
 Also in INR terms, FEE have been increased from 15626 crore to 194882 crore.
Which shows CAGR growth in FEE at around 15%.

 MAJOR COUNTRIES IN THE WORLD AND INDIA IN

INTERNATIONAL TOURISM RECEIPTS IN 2018
The Below Data is showing International Tourism Receipt in terms of USD $ Billions of
major top 10 countries of the world and its comparison with India.

S. No Source country International Tourism Percentage (%) Share

receipts (in US $ billion)
1 USA 214.5 14.81
2 Spain 73.8 5.1
3 France 67.4 4.65
4 Thailand 63 4.35
5 UK 51.9 3.58
6 Italy 49.3 3.4
7 Australia 45 3.11
 8 Germany 43 2.97
9 Japan 41.1 2.84
10 China 40.4 2.79
Total top 10 Country 689.4 47.61
India 28.6 1.98
Others 730 50.41
Grand Total 1448 100
Source:-UNWTO Barometer May 2019 for countries other than India, Ministry of Tourism for India

 In International Tourism Receipt, USA is standing at top with total 15% world
market share on amount of 214.5 billion USD.
 While India’s Market share in International Tourism Receipt is around 2% of
World market share on amount of 28.6 billion USD.

 ANALYSIS OF TOURISM AGENCIES OF SURAT CITY

The following data is representing the survey analysis conducted for the 17 different
agencies of Tourism from different areas of Surat City per Monthly Basis.

No. of
Sr. Cost Amount
County Tourists Per Type of Cost Total Cost
No. (in Rs.)
Month
 Airfare cost 75000 4125000
County Visa Cost 8500 467500
1 Europe 55
Accommodation and
166500 9157500
Other expenses
Total Expenses 250000 13750000
Airfare cost 25000 1225000
County Visa Cost 6000 294000
Malaysia and
2 49 Accommodation and
Singapore 54000 2646000
Other expenses
Total Expenses 85000 4165000
Airfare cost 14500 1261500
County Visa Cost On arrival N.A.
Thailand ,
3 87 Accommodation and
Bali 25500 2218500
Other expenses
Total Expenses 40000 3480000
Airfare cost 17000 340000
County Visa Cost On arrival N.A.
4 Maldives 20 Accommodation and
38000 760000
Other expenses
Total Expenses 55000 1100000

Airfare cost 15000 1005000

County Visa Cost 6000 402000

5 Dubai 67 Accommodation and
29000 1943000
Other expenses
Total Expenses 50000 3350000
Airfare cost 75000 1050000
County Visa Cost 12000 168000
6 New Zealand 14 Accommodation and
100000 1400000
Other expenses

Total Expenses 187000 2618000

Airfare cost 72000 1224000

7 Australia 17 County Visa Cost 10000 170000

Accommodation and
88000 1496000
Other expenses
 Total Expenses 170000 3179000
Airfare cost 81000 1620000
County Visa Cost 10000 200000
8 Canada 20 Accommodation and
104000 2080000
Other expenses
Total Expenses 195000 3900000
Airfare cost 72000 432000
County Visa Cost 12000 72000
9 The U.S.A. 6 Accommodation and
116000 696000
Other expenses

Total Expenses 200000 1200000

Airfare cost 58000 638000

County Visa Cost 8000 88000
The U.K. and Accommodation and
10 11 94000 1034000
Ireland Other expenses
Total Expenses 160000 1760000

  Total 346 Grand Total 38502000

 Here, based on the survey of 17 different Tourism Services agencies, the combined
data analysis has been shown
 In this data, Bifurcation based on Different Country wise and different types of
Expenses wise has been done.
 On monthly bases, Average around 346 tourists from Surat via particular 17 agencies
travel Abroad. And Total cost they incurred is around Rs. 38500000.
 Most Preferred countries by the tourists from Surat city are Malaysia, Singapore,
Thailand, Dubai, Maldives, Australia, Canada, the U.S.A., the U.K., New Zealand etc.
 Percentage share of Capital Outflow

The U.K. and

TheIreland
U.S.A.
3% 5%
Canada
10%
Europe
36%
Australia
8%

New Zealand
7%

Dubai
9% Malaysia and
Maldives
3% Thailand , Bali Singapore
9% 11%

 From the above chart, we can analyze that the maximum outflow of Capital from
Surat city is happening to Europe (around 36%), while Consecutively Malaysia &
Singapore (11%), Thailand & Bali (9%), Dubai (9%), Canada (10%), Australia (8%),
New Zealand (7%) etc.
 As per the Survey, It is also found that tourism Preference also depends upon Timing
of Season throughout the year.

CHAPTER- 5. CONCLUSIONS AND SUMMARY

The Tourism and hospitality industry is very sensitive to economic cycles and is therefore
essentially linked to the state of the economy. It’s totally like a agriculture industry in India
because the Tourism and Hospitality Industry effect by nature up-down like agriculture As
per the last one decade data is witnessed of the Indian economic downturns and a historic
growth period during this time.

India ranked 3rd among 184 countries in terms of travel & tourism’s total contribution to
GDP in 2017. India’s foreign exchange earnings (FEEs) from tourism increased by 20.8 per
cent during CY 2018 to reach US$ 28.6 billion. In India, the sector’s direct contribution to
GDP is expected to grow by per cent per annum during 2016–26. The travel & tourism
sector in India accounted for 9.3 per cent of the total employment opportunities generated in
the country in 2016, providing employment to around 40.3 million people during the same
year. The number is expected to rise by 2 per cent annum to 46.42 million jobs by 2026.
Contribution of visitor exports to total exports is estimated to increase 7.2 per cent per
annum during 2016– 2026 compared to the world average of 4.3 per cent. The government
of India has taken and taking various initiatives to strengthen the industry. Indian hospitality
industry is one of the fastest growing and important sector revenues wise as well as
employment wise.

After analyzing all the information/data collected from various sources, it may be concluded
that the Indian Tourism and Hospitality Industry is expected to show a healthy growth in the
coming years on the base of previous years which provide good and healthy economy to
India due to strongly increased Tourism development program in the country, favorable
government policies, boosting employment rate and rising per capita income

Indian Tourism Industry is Showing Very High Growth Potential with consistent growth in
International Tourism in India over the past 18 years. Which is also essential to boost
domestic Growth as it Inflows the Foreign Exchanges Earnings in India.

BIBLIOGRAPHY

Sr.
Reference Data
No.
 https://www.wttc.org/media-centre/press-releases/press-releases/2017/indias-is-the- worlds-
1
7th-largest-tourism-economy-in-terms-of-gdp-says-wttc/
2 Ministry of Tourism Govt. of India (2019). FTA and FEE, from Annual Report

3 http://tourism.gov.in/writereaddata/

4 http://business.mapsofindia.com/india-gdp/

5 http://www.indiabiznews.

6 Tourism & Hospitality Industry in India: Market Size, Govt Initiatives, Investments | IBEF

Contribution of tourism and Hospitality industry in the economy of India, Parul Mathur and Daleep
7
Kumar _2248.pdf

Hospitality Industry in India: A Big Contributor to Indias Growth Dr. Nitya Sharma, Anil Kalotra
8
V5N6-139(1).pdf

9 http://tourism.gov.in/market-research-and-statistics

10 https://www.statista.com/topics/2076/travel-and-tourism-industry-in-india/

 QUESTIONNAIRE
 “Evolution of International Travel and Tourism Industry in Indian
Economy”

We, Students of Department of Business and Industrial Management (DBIM), are pursuing MBA
and conducting a research for the study purpose. Kindly please help us to fill this questionnaire.
We assure you that your responses and information would be kept confidential and will only be
used for educational Purpose. Thank you for your valuable time.

 Consultancy Information
1) Name of Consultancy –
2) Name of Person –
3) Area –
4) Total No. Of Customers Visiting Per Month –
 For Immigration-
 For Abroad Study –
 For International Tour –
5) Which top 5 counties are Most preferable for travelling for Below purposes?
 Immigration –

 Abroad Study –

 International Tour –
 6) How many Customers Travel Abroad For below Purposes per month?
 For Immigration-
 For Abroad Study –
 For International Tour –

7) How Much Cost incurred by Customers for below different Purposes?

 For Immigration-
 For Abroad Study –
 For International Tour –
8) How much Cost incurred by Customers in Them in different types

Type of Cost
Air Travel Booking
Country visa Fees
Accommodation
and Hotel
Expenses
Other Expenses

Type of Cost
Air Travel Booking
Country visa Fees
Accommodation
and Hotel
Expenses
Other Expenses