Tourism Project
Tourism Project
Tourism Project
INTRODUCTION The one land that all men desire to see & having seen once, by even glimpse, would not even glimpse for the shows of all the rest of the world combined is said by Mark Twain on India. The Macmillan Dictionary defines tourism as the business of providing services for people who are travelling for their holiday. Wikipedia defines it as travel for recreational, leisure or business purposes. The OECD glossary of statistical terms defined tourism as the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited. Over the decades, tourism has experienced continued growth and deepening diversification to become one of the fastest growing economic sectors in the world. Tourism has become a thriving global industry with the power to shape developing countries in both positive and negative ways. No doubt it has become the fourth largest industry in the global economy. Similarly, in developing countries like India tourism has become one of the major sectors of the economy, contributing to a large proportion of the National Income and generating huge employment opportunities. It has become the fastest growing service industry in the country with great potentials for its further expansion and diversification. However, there are pros and cons involved with the development of tourism industry in the country. DEVELOPMENT OF TOURISM IN INDIA Tourism development in India has passed through many phases.
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Other promotional initiatives undertaken during the year include Incredible India Events organized in Russia in September, 2009 as part of the celebrations of the Year of India in Russia and a major India promotion event India Calling organized in association with the National Geographic Society at Hollywood Bowl and California Plaza in Los Angeles in September 2009.
India tourism offices overseas have participated in approximately 104 Travel Fairs and Exhibitions in important tourist generating markets the world over as well as in emerging and potential markets to showcase and promote the tourism products of the country. These include the major international Travel Fairs such as the Arabian Travel Market (ATM) in Dubai, PATA Travel Mart in Hangzhou, China, ITB Asia in Singapore Top Resa in Paris, and World Travel Market (WTM) in London.
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3. National Tourism Policy 2002 In order to develop tourism in India in a systematic manner, position it as a major engine of economic growth and to harness its direct and multiplier effects for employment and poverty eradication in an environmentally sustainable manner, the National Tourism Policy was formulated in the year 2002. Broadly, the Policy attempts to: y y
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Position tourism as a major engine of economic growth; Harness the direct and multiplier effects of tourism for employment generation, economic development and providing impetus to rural tourism; Focus on domestic tourism as a major driver of tourism growth. Position India as a global brand to take advantage of the burgeoning global travel trade and the vast untapped potential of India as a destination; Acknowledges the critical role of private sector with government working as a pro-active facilitator and catalyst; Create and develop integrated tourism circuits based on India s unique civilization, heritage, and culture in partnership with States, private sector and other agencies; and Ensure that the tourist to India gets physically invigorated, mentally rejuvenated, culturally enriched, spiritually elevated and feel India from within .
Growth Trends Tourism and hospitality being the largest service sector in the country, contributes around 6.23 per cent to the national GDP and 8.78 per cent of the total employment in the country. The country welcomes around 6 million international visitors every year and nearly 562 million domestic tourists. The Union Ministry of Tourism compiles a monthly estimate on the foreign tourist arrivals (FTAs) and foreign exchange earnings (FEE) based on the total number of foreign visitors in the country. The important trends in the sector for June 2011 based on the report by the Ministry of Tourism are as follows:
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The total number of tourists visiting the country during June 2011 were 0.39 million as compared to 0.37 million during June 2010 and 0.352 million in June 2009. A growth of 7.2 per cent has been registered during June 2011 as compared to 4.9 per cent growth in June 2010. Also, the 7.2 per cent growth rate in June 2011 was higher than the observed growth rate of 7.0 per cent in May 2011. FTAs during the period January-June 2011 were 2.91 million with a growth of 10.9 per cent as compared to the FTAs of 2.63 million with a growth of 8.9 per cent during January-June 2010 over the corresponding period of 2009. FEE during the month of June 2011 were US$ 1,213 million as compared to FEE of US$ 1,020 million during the month of June 2010 and US$ 796 million in June 2009. The growth rate in FEE in June 2011 over June 2010 was 18.9 per cent as compared to the growth of 28.1 per cent in June 2010 over June 2009. FEE from tourism during January-June 2011 were US$ 7,811 million with a growth of 14.2 per cent, as compared to US$ 6,842 million, with a growth of 36.6 per cent during January-June 2010, over the corresponding period of 2009.
Performance of Tourism Sector during 2010 Ministry of Tourism compiles monthly estimates of Foreign Tourist Arrivals (FTAs) and Foreign Exchange Earnings (FEE) from tourism on the basis of data received from major airports.Because of the availability of final figures from Bureau of Immigration (BOI) for 2009, the provisional figure of 5.11 million FTAs for 2009 released earlier by Ministry of Tourism, has now been revised to 5.17 million. Following are the important highlights regarding FTAs and FEE from tourism in India during the year 2010.
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Foreign Exchange Earnings (FEE) from Tourism in Indian Rupee terms and US $ terms y FEE from tourism in Rupee terms during 2010 were Rs.64889 crore as compared to Rs. 54960 crore during 2009 and Rs. 50730 crore during 2008. y The growth rate in FEE in Rupees terms during 2010 was 18.1% as compared to the growth rate of 8.3% in 2009 over 2008.Therefore, the growth rate observed in 2010 over 2009 was substantially high. y FEE from tourism during 2010 were US $ 14193 million as compared to US$ 11394 million during 2009 and US $ 11747 million during 2008. y The growth rate in FEE in US$ terms during 2010 was 24.6% as compared to a decline of 3% in 2009 over 2008. Therefore, in US$ terms, also growth rate observed in 2010 was positive and substantially high. Government Initiatives The Government has allowed 100 per cent foreign investment under the automatic route in the hotel and tourism related industry, according to the Consolidated FDI Policy, released by DIPP, Ministry of Commerce and Industry, Government of India. The terms hotel includes restaurants, beach resorts and other tourism complexes providing accommodation and /or catering and food facilities to tourists. The term tourism related industry includes:
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Travel agencies, tour operating agencies and tourist transport operating agencies
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Units providing facilities for cultural, adventure and wildlife experience to tourists Surface, air and water transport facilities for tourists Convention/seminar units and organisations
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The Government of India has announced a scheme of granting Tourist Visa on Arrival (T-VoA) for the citizens of Finland, Japan, Luxembourg, New Zealand and Singapore. The scheme is valid for citizens of the above mentioned countries planning to visit India on single entry strictly for the purpose of tourism and for a short period of upto a maximum of 30 days. The government has taken up a number of initiatives to enhance the tourism and hospitality sector performance and profits. Identification and development of 37 destinations within the last two years, and execution of 600 projects for 300 tourist spots across the country with an investment of over US$24 million are some project s taken by the Government to boost the travel industry and create awareness for the sector. These efforts have been coupled with monetary assistance from the Central government to the tune of US$ 5 million and US$ 10 million, as per the Tourism report by the Gujarat Government. The Ministry of Tourism under the Marketing Development Assistance (MDA) Scheme has also set up committees to assist and motivate travel tour operators and help them to familiarise with international standards of hospitality. Also, the Government provides financial assistance to travel agents to participate in travel marts and annual conventions for travel and tourism, as per the Annual report by the Ministry of Tourism. The Uttarakhand State Government has launched 100 per cent tax exemption program to exempt multiplex projects, amusement parks, and other tourist facilities for a period of five years under the Vision 2020 document. On the same lines, Rajasthan has reduced the luxury tax level to 8 per cent from the existing 10 per cent levels. Kerala, Madhya Pradesh, Orissa and Gujarat have entered into Private Public Partnerships (PPP) to promote travel and tourism to attract tourists.
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POSITIVE IMPACTS
1. Generating Income and Employment Tourism in India has emerged as an instrument of income and employment generation, poverty alleviation and sustainable human development. It contributes 6.23% to the national GDP and 8.78% of the total employment in India. Almost 20 million people are now working in the India s tourism industry. 2. Source of Foreign Exchange Earnings Tourism is an important source of foreign exchange earnings in India. This has favourable impact on the balance of payment of the country. The tourism industry in India generated about US$100 billion in 2008 and that is expected to increase to US$275.5 billion by 2018 at a 9.4% annual growth rate. 3. Preservation of National Heritage and Environment Tourism helps preserve several places which are of historical importance by declaring them as heritage sites. For instance, the Taj Mahal, the Qutab Minar, Ajanta and Ellora temples, etc, would have been decayed and destroyed had it not been for the efforts taken by Tourism Department to preserve them. Likewise, tourism also helps in conserving the natural habitats of many endangered species. 4. Developing Infrastructure Tourism tends to encourage the development of multiple-use infrastructure that benefits the host community, including various means of transports, health care facilities, and sports centers, in addition to the hotels and high-end restaurants that cater to foreign visitors. The development of infrastructure has in turn induced the development of other directly productive activities.
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1. Undesirable Social and Cultural Change Tourism sometimes led to the destruction of the social fabric of a community. The more tourists coming into a place, the more the perceived risk of that place losing its identity. A good example is Goa. From the late 60's to the early 80's when the Hippy culture was at its height, Goa was a haven for such hippies. Here they came in thousands and changed the whole culture of the state leading to a rise in the use of drugs, prostitution and human trafficking. This had a ripple effect on the country. 2. Increase Tension and Hostility Tourism can increase tension, hostility, and suspicion between the tourists and the local communities when there is no respect and understanding for each other s culture and way of life. This may further lead to violence and other crimes committed against the tourists. The recent crime committed against Russian tourist in Goa is a case in point. 3. Creating a Sense of Antipathy Tourism brought little benefit to the local community. In most all-inclusive package tours more than 80% of travelers fees go to the airlines, hotels and other international companies, not to local businessmen and workers. Moreover, large hotel chain restaurants often import food to satisfy foreign visitors and rarely employ local staff for senior management positions, preventing local farmers and
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Conclusion of Case Study: We would like to put forth the submission that tourism has an important place in the economy of Goa, but this has to be carried out in a
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