About Indian Tourism

 As per the Travel and Tourism Competitiveness Report 2009 by

the World Economic Forum, India is ranked 11th in the Asia
Pacific region and 62nd

 overall, moving up three places on the list of the world's

attractive destinations.

 It is ranked the 14th best tourist destination for its natural

resources and 24th for its cultural resources, with many World
Heritage sites, both natural and cultural, rich fauna, and strong
creative industries in the country.

 India made it to the list of "rising stars" or the countries that are
likely to become major tourist destinations in the next five years,
led by the United Arab Emirates, China, and Vietnam.
 India also bagged 37th rank for its air transport network. The
India travel and tourism industry ranked 5th in the long-term (10-
year) growth and is expected to be the second largest employer
in the world by 2019.

 India has been ranked the “best country brand for value-for-
money” in the Country Brand Index (CBI) survey conducted by
Future Brand, a leading global brand consultancy.

 India also claimed the second place in CBI’s “best country brand
for history”, as well as appears among the top 5 in the best
country brand for authenticity and art & culture, and the fourth
best new country for business.
Tourism in India – Figures

 0.8% share of world market

 Tourists (2008)
 4.6 million (International)
 382 million (domestic)

 Employment
 Direct - 10.7 million
 Indirect – 24.4 million
Export earnings ~ US $ 9.6 bn 2008

Contribution to GDP
Direct 2%
Overall 5.9%
India: An emerging
superpower
FUTURE GDP:
India’s GDP will exceed
 Italy’s in 2020,
 France’s in 2020
 Germany’s in 2025 and
 Japan’s in 2035
Tourism growth in India
 According to World Tourism Organization estimates,
India will lead in South Asia with 8.9 million arrivals by
2020

 India is poised to emerge as the 2nd fastest growing

(8.8%) tourism economy in the world over 2005-14
according to the World Travel & Tourism
 Contribution to the economy
 According to the Travel & Tourism Competitiveness Report 2009
brought out by the World Economic Forum, the contribution of
travel and tourism to gross domestic product (GDP) is expected to
be at 6.0 per cent (US$ 67.3 billion) in 2009 rising to US$ 187.3
billion by 2019.
 The report also states that real GDP growth for travel and tourism
economy is expected to be 0.2 per cent in 2009 and to an average
7.7 per cent per annum over the coming 10 years. Export earnings
from international visitors and tourism goods are expected to
generate 6.0 per cent of total exports (almost US$ 16.9 billion) in
2009, growing (nominal terms) to US$ 51.4 billion in 2019.
 The travel and tourism sector which accounts for 6.4 per cent of
total employment or 1 in every 15.6 jobs in 2009 is expected to
generate 40,037,000 jobs i.e. 7.2 per cent of total employment or 1
in every 13.8 jobs by 2019. Real GDP growth for Travel & Tourism
economy is expected to be 0.2 per cent in 2009 and to average 7.7
per cent per annum over the coming 10 years.
 Government Initiative
 The campaign ‘Visit India Year 2009’ was launched at the International Tourism Exchange in Berlin,
aimed to project India as an attractive destination for holidaymakers. The government joined
hands with leading airlines, hoteliers, holiday resorts and tour operators, offering them a wide
range of incentives and bonuses during the period between April and December, 2009.
 The airlines participating in the campaign, Air India, Jet Airways and Kingfisher Airlines are offering
a “companion free ticket” for every ticket purchased for international and domestic flights.
Connecting flights to the departing airports are included in the final travel costs. The Indian Travel
Agents’ Association (IATO) is offering holiday-makers a free sightseeing tour in a city of their
choice.
 Euromonitor International's Travel And Tourism in India report states that the Government of India
increased spend on advertising campaigns (including for the campaigns ‘Incredible India’ and
‘Ahithi Devo Bhava’ - Visitors are like God) to reinforce the rich variety of tourism in India.
 The Ministry promoted India as a safe tourist destination and has undertaken various measures,
such as stepping up vigilance in key cities and at historically important tourist sites. It also
deployed increased manpower and resources for improving security checks at key airports and
railway stations.
Tourist Circuits in India
 CULTURE, HERITAGE AND ETHNO :TOURISM – Chattisgarh, amongst
other states has identified and is developing ethnic villages. The private
sector is also being encouragement for proper maintenance.

 ADVENTURE TOURISM – Adventure sports such as water sports,

trekking, rock-climbing, para-sailing and bungee-jumping are popular with
the younger travelers and working executives.

 MEDICAL TOURISM AND SPAS – India has originated as one of the

most important hubs for medical tourism. Many people from the
developed countries come to India for the rejuvenation promised by yoga
and ayurvedic message therapy as well as for high-end surgeries like
cardiac bypass surgery or knee/hip replacement.

 HIGHWAY TOURISM - Besides catalyzing diversification of tourist traffic

and revenue from the urban centers, planned development of highway
tourism opens opportunities for enhancing local employment and uplifting
rural economy through local feeder enterprises, which will find scope to
grow in the vicinity of such highway tourist complexes.
RAIL TOURISM – The Indian Railways has introduces several new
services to promote rail tourism – luxury tourist trains, exclusive
steam and hill charters, tour packages.

CARAVAN TOURISM – A new policy guideline to promote ‘Caravan

Tourism’ in India and facilitate the infrastructure required for the same
would be announced.

WELLNESS TOURISM - A new policy guideline for promoting

‘Wellness Tourism’ in India would be announced. The policy would aim
to leverage India’s potential in traditional systems of wellness and
medicines like Ayurveda, Siddha and Yoga and to project India as a
unique destination for spiritual healing.

HELIPOT TOURISM - With a view to promote tourism in hilly and

remote areas, guidelines would be framed to provide central financial
assistance to States and Union Territories for constructions of
helipads/heliports at selected destinations which have tourism
potential but lack good connectivity's
 Travelers analysis

9% 7% SE Asia
2% W Asia
28% W Europe
0%
2%
Africa Share of Outbound
Australia
5%
Travelers, 2006-2008
C & S America
E Asia
E Europe
12% N America
20% S Asia
30

25

20

15
Number of Outbound Indian Travelers Number of
10 Travellers
(Mn)
5

0
1998 2004 2006 2008 2018
 Foreign Tourist Arrivals

Estimates of foreign tourist arrivals (FTAs) and

foreign exchange earnings (FEE) are
important indicators of the tourism sector. FEE
in US$ terms during the month of November
2009 were US$ 1.2 billion as compared to US$
1 billion in November 2008.
 Tourist Visits in India

The number of domestic and foreign tourists has almost doubled in

2003 and 2008.
 Indian Tourism Industry-Market
Size

300
Market Size in Bn

250
79%
200 78%
78 International Tourist
77%
150 Spends
74%
Domestic Tourist Spe
100
22 164
50
11 73
15 32
0 4
2003 2008E 2013F 2018F
 India GDP Growth

The most important growth is the robust economic growth that has
been witnessed in the country.
India’s GDP has been growing at the rate of 6% since the
liberalization of economy in 1991 and has grown over 8% in the past
few years.
At 8% CAGR, India’s GDP would almost triple from US$ 1200 Bn to
US$ 3500 Bn by 2023
 Growth in GDP per Capita

India’s strong economic growth has caused the GDP per Capita to
increase rapidly over the past 5 to 10 years. At current rate, the GDP
per capita in 2013 would be double of what it was in 2003
Distribution of Households Across Income
Brackets

More and more families are expected to leave the deprived or aspirers
category and join India’s burgeoning middle class.

By 2025, the Indian middle class is expected to constitute 46% of the Indian
population.

Subsequently, discretionary spends would be going up and this bodes

 Share of LCCs In Airlines
80
70
60
50 53%
40 47%
30 Fsc: Full Service Carriers
%
inS
h
re
a

20 LCC : Low Cost Carriers

10
0

The above graphs indicates the increasing share of LCC from 33%
to 47% between 2006 and 2008.

The advent of LCC has spurred domestic air travel to grow from 11
Mn travelers to 36 Mn travels in the last decade.

Operational airports in the country have gone up from close to 40

airports in 2004 to 81 airports at present.
 Air Travel in India

50
43.35% 35.79%
40

30 7.56%
Total
20 Domestic
T
tleA
x
is

Internation
10

0
1996 - 1997 - 1998 - 1999 - 2000 - 2001 - 2002 - 2003 - 2004 - 2005 -
97 98 99 00 01 02 03 04 05 06
Steps taken by Government to Promote
Tourism in Country.

 Airline tickets, tour package are all set to go cheaper

with 2% reduction in service tax
 State-run oil companies have slashed Aviation Turbine
Fuel (ATF) prices by 7%, the 11th reduction since
September last year.
 Airport Charges to be cut for a limited period by 50%.
 Removal of 8% excise duty on ATF.
 Reduce the charges which airport operator charges
from the oil companies, leading to enhanced
performance.
 Indian Textile and Apparel Industry
 Indian textile and apparel industry is one of the oldest and most significant
industries in the country and one of the largest in the world.
 Apart from China, no other country can match the size, spread, depth and
competitiveness of the Indian textile and apparel industry.
 Today the industry contributes around 14% to industrial production in the country,
4% to the GDP, is estimated to directly employ apprx. 35 Mn people apart from the
indirect employment in allied sectors, thus making it the second largest employer
after agriculture.
 It accounts for about 15% to the country’s exports and is, in sum, an important
economic engine for the nation.
 In the past 10 years, the industry’s actions, government policies as well as market
events have begun to converge, providing several growth opportunities for the
sector domestically as well as in the global market.
 Current Size : Indian Textile and Apparel
Market
Indian Textile and
Apparel Market US $ 62
Bn

Domestic
Exports
Market US$ 40
US$ 22 Bn
Bn

Textiles Clothing
US$ 12 Bn US$ 10 Bn

The present size of the Indian textile and apparel market is US$ 62 Bn
of which 22 US$ Bn is exports while rest US$ 40 Bn is the domestic
market.
The Indian domestic textiles and apparel market is one of the fastest
growing market in the world. It is expected to become one of the major
consumption bases in near future.
The textile industry plays a significant role in getting the foreign
exchange reserves into the country as it contributes approx. 15% of
 FDI in India : Current Scenario
 Due to India’s recent liberalization of its foreign investment regulations, the
country has become one of the fastest growing destinations for FDI inflows.
 India offers many advantages to foreign investors like strong economic growth
leading to increased buying power by the middle class, low wages, and an
educated work force.
 India’s Special Economic Zones (SEZs) attract foreign investment by providing tax
incentives, assistance with bureaucratic and administrative problems and access
to reliable infrastructure.
 Indian economy is growing 6 % per annum since last 10 years. Even in times of
recession / slowdown in most of the developed economies, India is expected to
maintain this level of growth.
 From August 1991 to March 2009, India has attracted a total of US$ 106 Bn, of
which approx. US$ 90 Bn was invested during Apr ‘00 to March ’09.
 In textile and apparel sector, 100% FDI allowed under the automatic route. FDI
sectors to the extent permitted under automatic route does not require approval
either by Government of India or Reserve Bank of India (RBI).
 Healthcare Industry

 The wave of change has swept across every industry, such

dynamism and corporatization has completely changed the
face of the healthcare industry.
 Due to increased competition Healthcare Providers are unable
to pass the burden onto patients in the same proportion.
 Since there is a rising demand and unprecedented growth of
the sector, there is a growing need to come up with newer
models to improve operational efficiency and make processes,
infrastructure and out outlook to management more lean and
specific.
 The Ongoing Transformation in Hospitals

Hospital
Documentati Mode of Public Quality Financial Human Customization
on Payment Relations Operations Resources

Revenue Active
Electronic
Third - Marketing Accreditat Cycle Employee Personali
Medical
Party / CRM ion Managem engagem zed Care
Records
ent ent
Medical tourism in India
 Medical care in the USA and private health care in UK is very
expensive. India has well-trained doctors who will work for a
lower fee than they could expect abroad.

 Medical tourism offers people the option of knee replacements,

hip replacements, heart care, cosmetic & dental surgery in
India.

 Hundreds of people have treatment abroad, saving them a

great deal of money in treatment costs.
Confederation of Indian Industry (C II) sponsored Mc Kinsey
& Co. study.–“Healthcare in India : The Road Ahead”
report:-

 1.3 million medical tourists visit Asia / year

 Nos. of US patients seeking cheaper care abroad

- grew to 7,10,000 / year

 Over 1, 50000 medical tourists travelled to India in

2002 bringing in earnings of $ 300 million.
 2007-08 > 3,00000

30
Predicted growth of
medical tourism in
India

2007 2012 2017 2022

By 2012 India is likely to become the top medical destination

Source: CII
 Customer Relationship Management
 Customer Relationship Management (CRM) is a method for an organization to
track, maintain and organize a database of its current and prospective customers.
 In the healthcare sector, there is a wide difference between the customer and
consumer.
 Hence there is a series of relationships that need to be nurtured and managed to
enhance patient retention.
 CRM is increasingly applied in the healthcare industry in the following way:

 CRM goes long way in building patient confidence and goodwill, and hence it becomes a
deciding factor for patient while choosing a hospital again. Hence customer service is
one of the major drivers of repeat business.
 In a active CRM programme it is necessary to train every member of the hospital in
providing quality care and service to the patient . It plays important role in retaining the
patient.
 The cost of efforts undertaken to retain a customer is ten times lesser than that of
acquiring a new one.
 Today health care has become global. India has growing number of international
patients and more and more hospitals are rushing to upgrade their services.
 Application of CRM
Application of CRM
CRM has now evolved into a science which has been used very
Collection
effectively and productively to enhance the efficiency of &
various sectors such as the banking industry. Integration of
Customer
data

Multi-channel
Integration

Customer
Marketing
Customer
Credit Cards, Delight
Insurance Schemes &
Retention
Customer
Analysis
Customer
profitability,
Propensity to busy,
Attrition behaviors

Analysis
Customer &
Care Application
Of this date to
provide quality
Service to
customers
 Education Industry
The enrollment in higher education
is currently at 17 Mn at a Gross Total Current and
Enrollment Ratio (GER) of 13%. Projected Growth in Higher
Enrollment are projected to grow at Education Enrollment (Mn)
GER
a CAGR of 5.6%, reaching 22 Mn 21%

by the year 2013 and 29 Mn by the GER

17%
year 2018. GER
13%
Enrollment
As per these estimates, 12 Mn in Higher
additional seats in the higher 17 22
22 29 Education

education would need to be created

by the year 2018 as shown in the
Exhibit 2.

The cost per seat in a regular higher education institution is UD%$ 8300.
Therefore, the total investment that India required for higher education alone
would be US$100 Bn.
 Total Current and Projected Growth in K-12
Enrollment
Currently, the total number of
students enrolled in K-12 Total Current and Projected
schools in the country is 317 400 Growth in K-12 Enrollment
Mn and expected to grow to (Mn)
Age
328 Mn by 2013 and further to 300 10
Group
97 0
351 Mn by year 2018. 97
1 4-1 8
200 74 80
Clearly, India will need to add 72 1 1-1 4
at least 34 Mn additional seats
6 -1 1
in K-12 segment in the next 10 1 0 0 14 15 17
7 8 1
years to cater to the education
needs of its continuously 0
growing population, as shown 2008 2013 2018
in the Exhibit 1.
The cost per additional seat, at a conservative estimate is US$ 2400
(cost of land included at US$ 1 Mn per acre). This translates into a
minimum investment requirement of US$ 80 Bn of investment over the
nest 10 years to establish these 34 Mn seats.
 Vocational Streams of Education
Parameters Health & Counseling English
Speaking
Beauty
No. of Students 1380 560 1180
Capex- 1 Centre (US$) 195,800 133,333 100,000
Cost Per Seat (US$) 145 240 84
Cost per Seat Estimation in Few Vocational Streams of Education
The vocational education and training landscape of India is extremely
underdeveloped. India currently has 5,500 industrial training institutes and
1,745 polytechnics as compared to 500,000 similar institutes in China. This
infrastructure cater to only 2.5 Mn people annually. There are 175 trade training
programs in India as compared to 1,500 in the USA. Clearly there is a
pronounced skill gap in terms of both quality and quality in the
country.

As estimated 85-90 Mn people with vocational skills would be requited in

various sectors between 2008-2013. According to industry sources, the split of
people intake sector-wise over the next 5 years will be 44.8% from the service
sector, 31.2% from agriculture and 12.6% from manufacturing.

 Cost per seat will very vary significantly in this segment depending on the
location, scale, positioning of training service and investment by private players
 INFRASTRUCTURE FOR
TOURISM-WHAT DOES IT
INDICATE
Adequate Accommodation
Road infrastructure
Air connectivity
Basic amenities at tourist centres
Developed tourism circuits
Adventure Tourism
Tourist trains
 The Road Ahead
According to the latest Tourism Satellite Accounting (TSA) research,
released by the World Travel and Tourism Council (WTTC) and its
strategic partner Oxford Economics in March 2009:
 The demand for travel and tourism in India is expected to grow by 8.2 per
cent between 2010 and 2019 and will place India at the third position in the
world.
 India’s travel and tourism sector is expected to be the second largest
employer in the world, employing 40,037,000 by 2019.
 Capital investment in India's travel and tourism sector is expected to grow at
8.8 per cent between 2010 and 2019.
 The report forecasts India to get capital investment worth US$ 94.5 billion in
the travel and tourism sector in 2019.
 India is projected to become the fifth fastest growing business travel
destination from 2010-2019 with an estimated real growth rate of 7.6 per
cent.
 Preparing for the 2010 Commonwealth Games in Delhi, the Tourism Ministry is
exploring the provision of tented accommodation to tourists in Faridabad and
Suraj kund in nearby Haryana.
Benefits of tourism
 Employment generator.
 Low Capital Investment in the trade.
 Imports earn foreign exchange.
 Cultural revival/ regeneration
 SWOT ANALYSIS
Strengths Weakness Opportunities Threats

DIFFERENT INADEQUATE FAST TERRORISM

VARIANTS OF INFRASTRUCTURE EXPANSIONS RECESSION
TOURISM ACCOMADATION RAPIDLY INFLATION/
INTERNATIONAL BASIC AMENITIES GROWING MIDDLE DEFLATION
COOPERATION LACK OF CLASS
AVERAGE LENGTH PROFESSIONAL
OF STAY MANAGEMENT
CONCLUSIONS
 Tourism is one of the main driver of economic
growth/employment generation in India.

 It has the potential of addressing issues such as rural

poverty, strengthening the economic status of the rural
artisans, earning forex etc.

 India has the potential to become a “global health

destination”

 It is necessary to create the right environment to attract

FDI by establishing progressive legal-institutional
framework and facilitating organizations
THANK YOU