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A Strategy For Sustainable Development of Tourism in The Lakshadweep Islands, India.
A Strategy For Sustainable Development of Tourism in The Lakshadweep Islands, India.
A Strategy For Sustainable Development of Tourism in The Lakshadweep Islands, India.
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ACRONYMS AND ABBREVIATIONS
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TABLE OF CONTENTS
LIST OF TABLES V
LIST OF FIGURES V
ACKNOWLEDGEMENT VII
CHAPTER 1
INTRODUCTION 1
1.1 Background and Rationale 1
1.2 Objective and Scope 2
1.3 Research Methodology 3
1.4 Limitations of the Study 4
CHAPTER 2
LAKSHADWEEP ARCHIEPELAGO 6
2.1 Location and Area 6
2.2 History 7
2.3 Socio-economic Profile 8
2.4 Political and Administrative Set-up 13
2.5 Eco-system 16
2.6 Transport-Air and Sea 22
CHAPTER 3
THE TOURISM SECTOR 24
3.1 Sustainable Tourism 25
3.2 Type of Tourists and Facilities 25
3.3 International Legal Framework 27
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3.4 National Policy and Laws. 30
3.5 Corals in India 33
3.6 Major Eco- tourism Destinations in South-western India 34
CHAPTER 4
ORGANIZATION OF TOURISM IN LAKSHADWEEP
4.1 Department of Tourism 38
4.2 Tourism Accommodations 38
4.3 Tourism Products- Tour Packages 42
4.4 Role of Co-operative Societies in Tourism 45
4.5 Linkage with National Tourism Organizations 49
4.6 XIth Development Plan (2007-2012) 50
CHAPTER 5
PERFORMANCE AND FUTURE OF TOURISM SECTOR
5.1 Performance 53
5.2 Tourist Arrivals 53
5.3 Constraints to Tourism Development 54
5.4 Analysis of Organizational Performance 59
5.5 Organizational Strengths and Weaknesses of DOT 68
5.6 Scope for Tourism Organization 71
CHAPTER 6
6.1 General 75
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CHAPTER 7
IMPLEMENTATION PLAN
7.1 Importance 103
7.2 Managing Contradictions 103
7.3 Implementation of Strategies for XIth Plan 106
CHAPTER 8
CONCLUSION AND RECOMMENDATIONS 112
BIBLIOGRAPHY 114
ANNEXURES 115
LIST OF TABLES
LIST OF FIGURES
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2.5 Politico-Administrative Set-up 13
Lakshadweep 58
Tourism in Lakshadweep 78
Lakshadweep 104
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ACKNOWLEDGEMENT
I would like to express my gratitude to the Government of India for deputing me to study the
Manila. I am also grateful to Honorable Administrator Mr B.V. Selvaraj and Mr. A. K. Wasnik,
program. I will always be grateful to Centre for Development Management of the AIM.
My special thanks to my primary advisor Prof. Mario Antonio G. Lopez, who combined his
incisive knowledge of the tourism industry with his insights as an academician of repute, to
guide me in this Management Research Report. My second advisor, Prof. Nihal Amerasinghe,
was tough on me, but his painstaking efforts and constant drive to help me improve this report
greatly contributed to the final result. I am also thankful to Prof. Soledad A. Hernando, Course
Director, and Prof. Benjamin C. Bagadion for advising and guiding me in the preparation of this
MRR. My gratitude is also to third panelist, Mr.Tsewang Namgyal for his knowledge and
My wife Kamlesh Meena and my son Navdeep have been my source of inspiration and love,
caring for me all the way from Delhi. They could not join me as my son is studying in Fourth
Standard at Delhi. But they did not miss calling me, even for a single day and reminded me to
study.
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EXECUTIVE SUMMARY
The Lakshadweep is an archipelago in the Arabian Sea, a distance of 220 to 440 kms
from the coastal city of Cochin in the Kerala State of India. It has considerable potential to attract
high-class tourists because of its geographic location in the Global Eco-region called
Lakshadweep-Chagos-Maldives. The National Tourism Policy-2002 has also advised the tourism
Tourism is a priority sector for the sustainable development of Lakshadweep. The XIth
Plan (2007-2012) under implementation has a proposed outlay of Rs 7539.839 million for
tourism. Tourism growth in the Lakshadweep was 2-3 percent until 2004, lower than the
projected 7 to 9 percent due to insufficient infrastructure. The launch of the Star Cruise ship in
2006-2007 resulted to the influx of 21,522 tourists in Lakshadweep, whose carrying capacity was
a mere 8,000-10,000 tourists per year. It is therefore possible that unplanned introductions by
any development like Star Cruises may damage the ecofragile islands measuring 0.45 to 4.5
square kilometers.
That total bed capacity be raised from 184 to 675 in all inhabited and uninhabited islands,
the individual numbers to be determined according to the carrying capacity of each island, has
been suggested. Expansion of tourism to all inhabited islands and the uninhabited islands of
Cheriam and Thinkara should be taken up in the implementation of the XIth plan using the
pattern of the Bangaram Development Model. Star Cruise operations should promote the sale of
local handicrafts, coconut and fish products in the inhabited islands. The small, sensitive island
rich in marine life and beautiful beaches should be differentiating considerations allowing for
high prices for water sports and accommodations among such segments as rest seekers, nature
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Apart from the four ships of the Department of Shipping, the Department of Tourism of
Lakshadweep has acquired three high-speed vessels and placed an order for the acquisition of
Ship-based tour packages are available: the Coral Reef Package, the Marine Wealth
Awareness Program, the Palm Package, Taratashi, the Weekend Package, and the Scuba Diving
Package. Unique and distinct in the region, they should also be differentiated to attract high
prices, except for the Coral Reef Packages and the Weekend Packages which are for general
tourists like backpackers and students/youth. High value, low volume tourism should be adopted
It is proposed that the competitive advantage strategy market unique products to gain
high value by maintaining the gap vis-à-vis other major regional domestic tourist destinations. A
holistic approach is possible through the integration of the tourism sector with transport and
Development Corporation Limited (LTDCL) that would merge SPORTS and tourism assets from
technology for waste management and training of staff to improve distinct skills for the
LTDCL should be able to manage resources to obtain high returns to society for the
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CHAPTER 1
INTRODUCTION
The Union of India (UOI) comprises 28 states classified as semi federal units and 7 Union
Territories (UT). An administrator of the UOI directly administers these UTs. Compared to the
mainlanders, the people of Lakshadweep, which is one of the smallest UT of the Union of India
in the Arabian Sea, are poor. Twenty-seven percent of its population lives below the poverty line.
They rely on government for additional livelihood opportunities because coconut farming and
fishing, the main occupations in the territory, cannot adequately provide for their survival.
During the period 2001-2002, coconut production was estimated at 53.1 million nuts, while fish
landed was estimated at 12,800 tons, effectively engaging 7,828 fishermen.1In 2004, Per the 61st
round of the National Sample Survey (NSS) the criterion used for poverty line was monthly per
capita consumption expenditure, with figures below Rs. 356.35 for the rural areas and Rs. 538.60
Through advanced planning, the government ensures the supply of all essential
particularly difficult during the rainy season from May to October. But, even then, the poor
people do not have sufficient income to buy these commodities, significant government subsidy
demand for all items, thereby necessitating additional efforts and planning to meet the
requirements of the tourism sector. In these planning efforts, the very low inflow of tourists from
1
Lakshadweep official website-home page-http://www.Lakshadweep.nic.in
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June to September due to the uncertainty of interisland air and sea transport from the mainland to
In 2002 the Government of India launched its National Tourism Policy while for its part,
the Lakshadweep administration had not yet framed a policy for tourism, despite the XIth Plan’s
highlighting the need for such policy. Just like the other places in India, the territory did not
employ a holistic approach in the formulation of its strategy for the development of tourism,
which is crucial given that each territory, particularly Lakshadweep, exhibits unique socio-
Similarly, ways must be found to make society self-sufficient and to improve the quality
unemployed educated youths. Thus far, government has invested heavily in infrastructure,
especially in sea transport and communications, in an effort to enhance contact with the
mainland and explore new avenues for reducing unemployment in this Union Territory. Keeping
in mind the National and International Laws of Coastal Management and Ecotourism, the
Government of Lakshadweep has realized how the tourism sector can change the life of the
people of Lakshadweep through the successful employment of large numbers of people and the
planned and organized for it to flourish without affecting the ecology of the area.
All policy issues and geographical and environmental constraints should be considered
for the sustainable development of the sector, with proper linkages to other sectors of the
economy established. Doing so will ensure the creation of an appropriate strategy for the
development of Lakshadweep.
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1.2 OBJECTIVE AND SCOPE
This Management Research Report (MRR) has prepared a strategy for the sustainable
associating the local people in tourism activities to improve the overall economy of the Union
Territory of Lakshadweep.
It is evident that the Department of Tourism of Lakshadweep and its agencies can be
strengthened to improve their effective utilization of resources for the development of tourism
through an appropriate strategy. The strategy developed under this study would be useful to the
There is a lot of scope to study in such circumstances, given that tourism is an emerging
industry in the territory that hopes to help eliminate poverty. This study will focus on the
development of tourism in association with the native population to whom it would provide
employment and make self-sufficient without affecting the ecology of the area, while
simultaneously fulfilling the social objectives of the Government of India. The study would also
focus on the likely environmental and social implications of the development of tourism and its
The social structure, religion, customs, the eco fragile nature of the Islands, the scarcity
of land, limited opportunities, and related national and international laws would be the limiting
This MRR focuses on the internal and the external factors that affect the biodiversity of the
area. It will explore opportunities and the ways and means to counter threats to the tourism sector
in Lakshadweep. Data has been gathered from various sources such as related studies on the
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national and international levels, the Internet, books, government reports, etc., to come up with a
doable strategy. The following tools were employed to obtain the necessary information and
• Prior to joining the MDM course, the author was a registrar of the Co-operative Societies of
Lakshadweep, a stint that provided him with insights that constitute meaningful inputs to this
study, like direct observation method would. Further, given that the official mentor for this
study is the Secretary of the Department of Tourism (DOT), Lakshadweep, the Secretary
issued instructions to concerned government officials to provide information to the author for
this study. The Government is, after all, currently exerting sincere efforts to develop the
• Secondary data were obtained from relevant records and reports of government, in the public
library and the Internet. The Internet has proved very useful in accessing information relating
to the Coral Islands, the International Ecotourism Law, etc., and for the external analysis of
• In analyzing data and developing strategy, various tools of management taught in MDM, like
The author has tried to obtain all relevant data including international laws on the
conservation of the biodiversity of atolls and the protection of the ecosystem. The relevant
provisions of these laws have been taken into consideration in the formulation of an appropriate
The Lakshadweep is a group of 12 atolls with a fragile ecology, thereby limiting the focus
of the study within the boundaries of the laws prescribed for other sectors of government. This is
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done to ensure proper inter-sector linkages for the sustainable development of tourism. Being a
new study on tourism in Lakshadweep, it looks into the causes and effects of existing problems
and determines the means-end relationship for achieving the objectives of developing tourism in
the territory. Time constraints hindered the conduct of more field visits for ascertaining the views
of various stakeholders. Data collection was limited to obtaining feedback from government
officials, documents/reports and the website of the Lakshadweep administration and my working
experience with Lakshadweep Administration. Still, the author can claim to have captured all
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CHAPTER 2
and 5 submerged banks. It is located between 8 º and 12 º 13” north latitude and between 71º and
74º east longitude, 220 to 440 kilometers away from the coastal city of Kochi in Kerala state of
India, in the Arabian Sea. It has 4,200 square kilometers of lagoon area, 20,000 square
kilometers of territorial waters and about 400,000 square kilometers of economic zones.
The island does not contain any elevated land stratum. All islands are located 4 to 7
meters above the mean sea level. The Map of the Union Territory of Lakshadweep is given
Annex 1.
Source-Lakshadweep.nic.in N E
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2.2 HISTORY2
Legends have it that small settlements first emerged in the islands of Amini, Kavaratti,
Andrott and Kalpeni, after which people from these islands moved to the other islands of Agatti,
Kiltan, Chetlat and Kadmat. Local traditions attribute the first settlements in these islands to the
period of Cheraman Perumal, the last king of Kerala, in 7th century ( A.D). The advent of Islam
in Lakshadweep also dates back to the 7th century around the year 41 Hijra. Even after the
conversion of the all the people of islands to Islam, sovereignty remained in the hands of the
In the beginning of the 16th century, the arrival of the Portuguese in India again made
Laccadives an important place for seafarers. Its finely spun coir was much sought after for use by
ships. So the Portuguese started looting island vessels. They forcibly landed at Amini to procure
coir sometime in the early 16th century, but the people of the island allegedly killed all the
After the battle of Seringapattom in 1799, the islands were annexed by the British East
India Company and administered from Mangalore. The British later issued Lakshadweep
Regulation 1912, which conferred limited power of judicial and magisterial status to
Amins/Karanis of the islands. A reasonable restriction upon outsiders was also enforced by the
above regulation, which remains in force under the Lacadive and Minicoy Island (Entry
Restriction) Regulation 1962. An entry permit is thus required for a non-native to visit
Lakshadweep. In 1973 the Union Territory formed as Lacadives and Minicoy Islands in 1956
2
Vacation India home page- history, accessed as http://www.vacation India.mht
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2.3 SOCIO-ECONOMIC PROFILE
2.3.1 Demography3
Demographic data were obtained from the office of the Registrar of India which issues
such every decade, the latest in 2001. Per the census that year, the total population of
Lakshadweep was 60,650, with the Muslims numbering 57,903. Meanwhile, 57,321 persons
(94.5 percent) were Scheduled Tribes (STs), 2,221 were Hindus and 509, Christians.
The entire indigenous Muslim population has been classified as Scheduled Tribes
because of their geographical isolation. According to the Scheduled Castes and Scheduled Tribes
list (modification orders) in 1956, the inhabitants of Lakshadweep, whose parents were born in
these islands and treated as Scheduled Tribes, registered the highest proportion of ST population
besides Mizoram, among all the states/UTs of India. Island wise population data are given in
Annex 2, with Androth Island registering the highest population at 10,720, followed by Kavaratti
Island at 10,113 per the 2001 census, and Bitra Island registering the lowest population at 225.
The territory’s literacy rate of 87.52 percent is the second highest in the country among all
states/UTs. It is higher than the average National Literacy rate of 64.8 percent. Kerala State, on
the other hand, has the highest literacy rate among all States and Union Territories of India at 90
percent.
In year 2001 the overall sex ratio of the population of Lakshadweep was 947, while the
sex ratio of the indigenous Muslim population was 1003 females per 1000 males, indicating a
change from the 994 reported in the 1991 Census of the indigenous population. The population
density of Lakshadweep is 1,894 per square kilometer as per census 2001. Health indicators
3
The Scheduled Tribes, Census of India,2001:Data Highlight: Lakshadweep, pages 1 and 2 published in 2004
4
Census of India-2001, The Registrar General of India.
-8-
FIGURE: 2.2 DEMOGRAPHY OFTHE LAKSHADWEEP
50
45
40 Birth rate
35 Death rate
Infant Mortality
30
Maternal
25 Mortality
20
15
10
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Source: www://Lakshadweep.nic.in
• As per Census 2001, birth rate was 18.05. This decreased to 16.17 in the period 2005-
• Death rate of 3.87 in 2001 decreased to 3.50 in 2005-2006; the national rate was 7.5 in
2004.
• Infant mortality rate of 28.88 in 2001 slid to 6.73 in the period 2005-2006; the national
• Maternal mortality rate of 0.18 in the period 2000-2001 was down to nil between 2005
and 2006.
2.3.2 Social
belonging to the Shafi School of the Sunni Sect. Comparisons of the population of Lakshadweep
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on the basis of religion vis-à-vis the national figure and those of neighboring states are presented
in Annex 3.
Malayalam is spoken in all the islands except Minicoy, where people speak Mahal, which
is written in Divehi script and spoken in Maldives also. Social customs and the stratification of
society in the territory are similar to those of the Hindu society despite adoption of the Muslim
religion. Social customs are similar to the mainland community’s, namely Nayar, in the sense
that like them, the Muslims of Lakshadweep have a matriarchal society, i.e., the women play an
important role in the social and economic lives of the people. The educated youth are well
conversant in English.
property descends through the female line, in effect protecting the economic rights of the
females. Thus the Tharawad property system has given economic freedom and independence to
women in the social system of the Lakshadweep. In contrast, the Tharawad property is equally
shared among the members of the joint family in the Kavaratti and Agatti islands. Said property
is managed by the eldest male member of the family known as Karanavan, wh` vo, however,
has no right to alienate or sell any portion of the Tharwad property. The wife and children of the
The predominance of women from all walks of life is a peculiar feature of Minicoy. The
husband takes the wife’s family name after marriage. All family affairs are managed by the
female of the house. Being the breadwinners of the family, most males from Minicoy serve in
international ships as seamen. In his travelogue, the famous traveler Marco Polo (1254-
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2.3.3 Economy
The main occupations of the people are fishing, coconut cultivation and coir twisting.
Coconut production patterns covering 1992-1993 and 2001-2002 are presented in figure 2.3.
During the period 2001-2002, production rose to 22,310 nuts per hectare, the highest in the
country. The coconut production of 52.8 million nuts in 2001-2002, which marked the start of
the 10th plan, was topped by the end of the plan in 2006-2007 when production increased to 58.0
million nuts.
500
400
Nuts
300
200
100
0
1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-01 2001-02
The 2001 yields from the second major sector, fishing, are presented in figure 2.4, which
shows major species of fish landings in Lakshadweep. The fish catch for the 10th plan was
52,726 tons. Two new ventures were also initiated in 2001: an ornamental fish hatchery and a
cucumber hatchery.
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Tourism gained notice as an emerging industry. Poultry, boat-making, and the production
of coconut fiber-based produce like copra-based food items and coir are also among the
The people of Minicoy are employed in large numbers as seamen. Total labor engaged in
Lakshadweep is 26 percent, inclusive of marginal laborers who account for 3 percent. Twenty-
seven percent of the population lives below the poverty line. In the territory, 11,710 account for
The work participation rate (WPR) indicates the percentage of workers vis-à-vis the total
population. In 2001, the male WPR was 38.6 percent and the female WPR 7.1 percent.
23%
Cornex
Purchase
RR
Sail
Sear
Shark
Tuna
Others
72%
Consistent with the previous censuses, the Census 2001 did not report any cultivators or
agricultural laborers from this UT.5 The percentage of unemployed persons registered in the
5
Data Highlight: Lakshadweep, The Scheduled Tribes, Census of India, 2001, pages 1 and 2.
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employment exchange is around 19.5 percent (12,700) of the total population. The territory’s
geographical isolation explains the lack of employment options for the educated youth.
of Home Affairs (MHA), Government of India, per article 239 of the Constitution. Normally a
senior civil service officer of the government of India, the administrator functions under the
Minister for Home Affairs who is responsible to the Parliament. A Member of Parliament (MP)
elected by the people of Lakshadweep represents who represent them in the lower house (Lok
Sabha) of the Parliament. The territory’s politico- administrative set-up is shown in figure 2.5.
President Panchayat
Secretary-Tourism Development Comm
Lakshadweep
issioner/Collector
1 Superintendent of
10 Dweep(Island) Director, DOT Police/9,Sub. Div.Officer
President
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2.4.1 Political
the Head of Union Territory, exercises limited rule-making powers in accordance with the
guidelines set by of the Union of India (UOI), its statutes/Laws. In the inhabited islands, a two-
tiered Panchayati Raj system functions under the supervision of the Administrator. On these
institutions are vested the duty of providing basic services and rural development schemes.
Each inhabited island has a Dweep (village) panchayat whose number of elected
members is proportionate to its population. Ten Dweep panchayats have 79 elected members,
each Dweep panchayat headed by a Dweep President elected from amongst the elected members
The District Panchayat has its Headquarters at Kavaratti, where there are 33 directly
elected members from all the inhabited islands. These 33 members, in turn, elect one president-
cum-chief councilor, and two vice presidents-cum-councilors in the District Panchayat. From
amongst themselves are chosen the head and sub-head of district Panchayat of the UT of
Lakshadweep.
The MP and the chairpersons of the Dweep Panchayats are ex-officio members of the
District Panchayat by virtue of their respective positions. A senior civil service officer who acts
as the chief executive officer to the Panchayati raj assists the district president-cum-chief
councilor.
2.4.2 Administration
under a single file system, Lakshadweep being itself a uni-district administration. To bring the
administration closer to the people, all the inhabited islands along with their attached islands and
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the sites of the district were divided into nine sub-divisions in 1983, each headed by the Sub
Divisional Officer under the District Collector/Magistrate, Lakshadweep. Matters relating to the
district administration, law and order fall under the purview of the District Magistrate who also
Corporation (LDCL), who were also designated secretaries of various departments in an ex-
officio capacity. The MD, LDCL, for instance, is also Secretary to the Department of Tourism
(DOT), Lakshadweep, which the Director of Tourism who is under the Secretary’s supervision,
heads. The LDCL is a corporate body that acts as catalyst for the growth of the Lakshadweep. It
looks after value-added activities relating to fisheries and coconut products. It likewise manages
civil supply operations and supplies, as well as passenger ships-related work. A director heads
each of the following departments: Public Works, Agriculture, Co-operation, Social Welfare,
Vision Statement: The vision adopted by the Lakshadweep Administration under the
Eleventh Development Plan (2007-2012), while not explicitly stated, is expressed in the
To make the economy of the islands self-reliant through faster and sustainable
heritages.
Enhance the quality of life of people through the enhancement of income and by
increasing employment opportunities for the youth, particularly the educated youth.
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Preserve the ecology, the existing social structure, and cultural values.
Prevent migration from the mainland and highlight the carrying capacity of the islands.
sustaining economy, which can also make vital and strategic contributions to the economic
development of the nation by increasing the productivity of sea and land, mainly through the
development of agriculture, fisheries, tourism and industries that generate revenue for
development.
2.5 ECOSYSTEM
There are three main natural ecosystems in the Lakshadweep Islands: the lagoon, the and
the Ocean ecosystems. The islands are flat (Land) and scarcely rise more than two meters from
the sea level. They are made up of fine coral sand and boulders, which have been compacted into
sandstone. Rivers and streams are absent, while water seepage occurs a few meters below the
As coral reefs are the most productive of marine ecosystems, the contributions of the
reefs to the island ecology are very important. The palm-clad islands of the Lakshadweep, with
their lagoons and reefs, attract large numbers of tourists. The natural and man-made ecosystems
are closely linked together. The coral area is a living museum of the islands because it provides
shelter for the breeding of various marine organisms, even as the environment of these islands is
the WWF scientists have pronounced it to be the largest atoll system in the world, with the most
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extensive coral reef systems in the Indian Ocean.6 The global eco-region’s science-based global
ranking indicates it’s having the earth’s most biologically outstanding terrestrial, fresh water and
marine habitats that provide a critical blueprint for biodiversity conservation on a global scale.
Ecoregions, used as the unit of scale for comparison and analysis, are large areas with a
relatively uniform climate that harbor a characteristic set of species and ecological communities.
WWF scientists developed the Global Ecoregions in collaboration with regional experts
in the hope that conservation efforts around the world would contribute to the global bio-
diversity strategy.
As Maldives lies just 80 nautical miles from Minicoy Island of the Lakshadweep, making
it nearer to the territory than the mainland of India, its impact on the ecology of Lakshadweep
merits discussion herein. Tourism development7 in the Maldives is based on the principle of
isolation of tourists from the bulk of the indigenous Muslim population who speak the Dhivehi
language like in Minicoy. A reef encircling a shallow lagoon surrounds each island in the
Maldives, where all the low-lying islands are not more than 2 meters or 7 feet above sea level.
According to the Department of Emigration, Maldives’8 tourist arrivals increased from 467,154
Like the Maldives, the tiny Lakshadweep Islands sit on top of the coral reefs and are
covered with coral sand. These coral reefs are the habitat of a rich marine life, including various
species of turtles. Aside from coral reefs and sandy beaches, Lakshadweep has small mangrove
patches and lagoons covering a large area, in addition to important wetlands alongside the coral
6
http://www.panda.org/index.cfm. Maldives, Chagos, Lakshadweep Atolls - A Global
Ecoregion page from the WWF website.
7
mht: http://www.travel guide.com. Maldives Travel Guide, Maldives island resorts web page
8
http://www.tourism.gov.mv/pub./stat-2005. Maldives’s official website, Tourism page.
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reefs. Lakshadweep does not enjoy legal protection because it has not been classified as a Marine
Perhaps, volcanic eruptions created these Islands out of the sea, but for thousands of
years, some have been slowly sinking back. The reefs and lagoons that remain form complexes
known as atolls.
While no conclusive theories about the formation of these coral atolls exist, the most
accepted theory is that by the British evolutionist, Sir Charles Darwin. In 1842, he concluded that
the subsidence of a volcanic island resulted in the formation of a fringing reef while the continual
subsidence allowed this to grow upwards. Sandbags first naturally formed in an atoll became the
nesting grounds for sea birds until the humans took over. Meanwhile, the fringing reefs were
quickly built, restored and strengthened by a microorganism called the ‘polypous’, which may be
considered the architects and engineers of these atolls. The hard calcareous skeleton of these
polypous are said to make up the corals, a concept that fundamentally remains valid, although
many believe the submerging volcanic islands to be the result of the melting of Pleistocene ice
sheets.
The salinity index of the island groundwater system indicates that no fresh groundwater
without any saline contamination is available in any island of Lakshadweep. It has also been
observed that the quality of water deteriorates as the duration of pumping lengthens. There is no
doubt, therefore, that over-extraction would deteriorate the quality of fresh groundwater in these
islands.10
9
http://en.wikipedia.org/wiki/Attoll_page
10
Ramachandran, K.K. and Ajaykumar Varma, “A Review of the Contribution of Centre for Earth Science Studies
(CESS) Towards Understanding the Totality of Environment of Lakshadweep, India,” http://www.fao.org/docrep.
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2.5.1.2 Flora and Fauna11
The flora of the islands include Banana, Vazha (Musaparadisiaca), Colocassia, Chambu
incise), and wild almond (Terminalia catappa), which are grown extensively. Coconut (Cocos
nucifera) is the only crop of economic importance in Lakshadweep. Two different varieties of
sea grass are evident near the beaches: Thalassia hemprichin and Cymodocea isoetifolia. They
Tharathasi (Sterna fuscata) and Karifetu (Anous solidus) are oceanic birds generally
found in Lakshadweep, particularly in one of the uninhabited islands known as PITTI. This
Molluscan forms are also important from the economic point of view of the islands. The
money cowries (Cypraea monita) abound in the shallow lagoons and reefs of the islands. Other
cypraeds found here are the Cypraca talpa and Cyprea maculiferra. Among the crabs, the hermit
crab is the most common. Colorful coral fish such as the parrot fish (Callyedon sordidus), the
butterfly fish (Chaetodon auriga), and the sturgeon (Acanthurus lineotus) are also a plenty.
Turtles likewise proliferate in Lakshadweep. Meanwhile, the following flora and fauna have
11
http://Lakshadweep.nic.in
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2.5.1.3 Climate
Lakshadweep has a tropical climate. The atmosphere is humid with temperatures ranging
from 22 to 33 degrees Centigrade. From October to April, the climate is very pleasant and
During the rainy season lasting from May to September, the sea is very rough due to the
southwest monsoon. The transportation system to the various Islands is thereby affected. Further,
heavy sea erosion in almost all the islands seriously threatens to destroy houses and the very
Common features of all the Islands in Lakshadweep include a storm beach on the eastern
rim, a coral sand plain to the west, and white boulders strewn across intertidal space on the
2.5.1.3.1 Environment12
Damage done to this precious environment can be gleaned from severe soil erosion, the
depletion of corals, fishes and also other flora and fauna. The greatest threat to coral reefs comes
from the relatively rapid establishment and growth of the tourist industry, the introduction of
mechanized fishing, the coral mining construction of breakwaters, barriers and jetties, and
anchor damage and siltation caused by speed boats. Other threats include pollution, increased
shipping traffic, risk of oil spills and dumping, inadequate water disposal and the overuse of
It is estimated that annually, more than 8,000 tourists can be accommodated in the islands
of Lakshadweep on a sustainable basis. This amounts to more than five times the number of
tourists of both Indian and foreign origin, who visited these islands in the period 2000-2001. The
12
XIth Plan Document of the Department of Planning and Statistics, Lakshadweep chapter of Environment.
- 20 -
economics of tourism notwithstanding, the experiences of many islands where the tourism
industry has taken root worldwide show that, unless proper care is taken right at the investment
the environment, economy and culture. In his study on the natural environment of Lakshadweep,
Ramachandran (1982)13 particularly discussed its “land use capability, problems and prospects”.
Thus apprised, proposed total outlay for the environmental protection needs of
Lakshadweep alone, per the XIth Plan, is Rs. 1053.71 million, an investment that is expected to
help promote tourism in the area through the institution of suitable environmental measures. The
scheme-wise allocations for the XIth Plan (2007-2012) are presented in Table 1 in Annex 4.
for the Lakshadweep Tourism Department’s efforts to promote eco-friendly tourism at the
International Tourism Bourse in Berlin, Germany was evinced. Some of its important features14
are as follows:
1. All the tourism properties use largely PVC solar streetlights. Solar plants supply electricity
2. Tourists are encouraged to live in harmony with nature. The islanders are educated to adopt
eco-friendly ways like the burning of coconut husks, rather than the use of pesticides which can
3. A film informing tourists about the island, its environment, the coral reefs, and their
management is shown to them once they board the ship on the way to Lakshadweep islands.The
13
Ramachandran and Varma, “A Review of the Contribution of Centre for Earth Science Studies (CESS).”
14
XIth Plan Development Document of Department of Planning and Statistics, Lakshadweep Administration.
Chapter on Tourism.
- 21 -
boats, vessels, and ships of the Lakshadweep Administration, especially of the Lakshadweep
tourism sector, carry the names of Island territories that have great ecological value.
4. Most tourist accommodations take on the form of thatched huts and tiled roofs.
5. Fishing in Lakshadweep is carried out using the pole and line method only, as this is the most
eco-friendly method of fishing for tuna in the sense that it allows only the mother fishes to be
caught. The young ones, along with other marine creatures are spared, which would not be the
As the Agatti Island airport is connected to the International Airport at Cochin, Kerala and
Kingfisher, Indian airlines fly between Agatti and Cochin. One helicopter with 20 seats that is
intended for emergency services for the Lakshadweep administration is also used for tourists
Four passenger ships, namely, the MV Tippu Sultan, MV Bharat Seema, MV Amindivi and
MV Minicoy, operate between Cochin and Lakshadweep. The passage takes between 14 and 20
hours. The ships offer different classes of accommodations, as follows: A/C Deluxe Class with
two berth cabins, A/C First Class with four berth cabins, and Tourist Class with A/C seating.
The ships MV Tipu Sultan and MV Bharat Seema have cafeteria and snack bars, an
entertainment lounge, video shows, and an upper deck promenade, among others. A doctor is
available on call aboard these ships. MV Amindivi and MV Minicoy also offer comfortable A/C
accommodations.
New Ship Arrival: Star Cruises, an international luxury ship liner, began operations in
October 2005. For its part, the Lakshadweep Administration has entered into various contracts to
- 22 -
• Three-passenger high-speed vessels with 150 seating capacity, which arrived in 2007.
MV Black Marlin, one of the high-speed crafts (150 seats), flagged off on Republic
high-speed vessel with a seating capacity of 15 from NGV Tech SDN, BHD,
Malaysia.
• Two passenger-cum-cargo ships with capacities of 250 seats and 100 tons each.
Contracts for these were signed with Sri Lanka in March 2008.
- 23 -
CHAPTER 3
The tourism industry employs 260 million people and generates 10.6 percent of the
world’s GDP, making it the largest as well as the fastest growing industry worldwide. Planning
and management are essential to reaping benefits from the industry, and more importantly, to
protecting and conserving the biodiversity of tourist destinations. The effective allocation and
utilization of resources are challenging tasks for the development of sustainable tourism, which
requires conserving resources, valuing the local culture and traditions, and contributing
Tourism in India has grown substantially over the last three decades. Its contribution to
GDP reached 6.1 percent in 2006. In 2003, 10.98 percent of total international tourists visited
the Kerala increased by 18.1 percent and 13.5 percent, respectively. Tourism has apparently
become one of the largest foreign exchange earners of the country. For its part, domestic tourism
On 31 March 2004, Lakshadweep’s gross state domestic product for the period 2003-
2004 was estimated at $60 million. Given the fact that in the UT, only coconut cultivation and
fishing constitute the major sources of income and employment, tourism is looked to, as another
Unfortunately, the growth of tourism inflow has been very erratic in Lakshadweep.
Normal growth has, in fact, been observed to range between 7 and 9 percent per annum. In the
period 2005-2006, the total number of tourists in Lakshadweep was 15,203, up from 4703 in
_2003-2004 due to the starting of the Star cruise. Still, tourism is expected to provide a market
15
http://tourism.gov.in.
- 24 -
for local products, just as the poor natives are expected to benefit from infrastructure
tourism is “envisaged as leading to the management of all resources in such a way that
economic, social, and aesthetic needs can be fulfilled while maintaining cultural integrity,
essential ecological processes, biological diversity, and life support systems” (Honey 2002).
going back to natural products in every aspect of life and helps preserve nature in the process. It
is also the key to sustainable ecological development. Therefore, in the case of Lakshadweep
Lakshadweep.
Tourists vary in terms of their interests, nationality, and age. Lakshadweep, for its part,
There are many international researches on the various types of tourists. The most relevant for
this paper is the study done by Westvlaams Ekonomisch Studiebureau (Johnson et al. 1994, 21)16 in
Belgium, in the sense that 70 percent of tourists from Europe visit India. The organization interviewed
3,000 adults, of whom 75 percent were identified as potential holiday-makers. Said research viewed
such aspects of these tourists as the following: socioeconomic characteristics, behavior, and
16
Irina Kozlova Svetlana Ševèenko, “Identifying Customer Needs:Competitiveness of Liepaja in the Tourism
Market,” thesis under the supervision of Hans-Joachim ZilckenBachelor, 2004. http://www.types of tourist.pdf
- 25 -
The typologies of tourists used by Westvalaas Ekonomisch Studiebureau, while
cosmopolitans and students/youth backpackers among domestic tourists, for a more complete
profile. Similarly, the official/VIP and corporate business groups, who frequently visit for
official reasons or wish to organize business meetings in an isolated and peaceful environment,
must be considered in light of tourism in Lakshadweep. In table 3.1, these groups have been
regrouped on the basis of similarity of choice of Lakshadweep facilities. However, the types of
tourists for domestic/international and facilities in Lakshadweep are mentioned with their general
preference according to the interest of each group indicated. (See the ‘Yes’ or ‘No’ matrix in
table 3.1.
- 26 -
Available facilities and tariffs vis-à-vis the geographical features of individual tourist
destinations in the Lakshadweep are mentioned in detail in Annex 5. The land and lagoon areas
In line with this research, seven clusters were formed. The biggest cluster, the family-
oriented sun and sea lovers (27.2 percent), shared several common traits, namely: an appreciation
for beautiful sceneries, ‘making time for each other’, and an appreciation for kind hospitality,
good food, and ‘child-friendly’ activities. On the other hand, 25.8 percent of the visitors were
considered rest-seekers. The next group was constituted by nature viewers (12 percent) who
preferred visiting beautiful landscapes, followed by discoverers (10.1 percent) who liked to
establish contacts with people, and adored cultural holidays and adventures. Traditionalists
represented 9.9 percent of respondents, who were particular about safety and security. A group
of almost the same size, or about 9.5 percent, attached great importance to a hospitable reception,
to ‘making time for each other’, and ‘making contact with new people’. These were the contact-
minded holiday makers. The smallest group was made up of active sea lovers (5.5 percent) who
considered the presence of the sea and beach the most important factors; these people were also
because the problem of global warming is increasing and threatening the existence of life, aside
utmost concern of international agencies which have deliberated on these issues and formulated
- 27 -
3.3.1 The Global Code of Ethics
The World Tourism Organization has launched the Global Code of Ethics for Tourism,
which promotes environmental, social, and economic principles for sustainable tourism. Articles
3, 5, and 9, in particular, address the environmental and social aspects of sustainability. The text
of the Code provides a useful resource for anyone drawing up similar agreements at the national
or regional level. The Mohonk Agreement17, for instance, provides guidelines for sustainable
tourism. The framework indicates the principles for the certification of ecotourism and
House, New Paltz, New York in November 2000. Workshop participants recognized that tourism
certification programmes need to fit particular geographical reasons and sectors of the tourism
industry, while also agreeing on a basic set of principles that should form the basis of any
Green Globe 2 is the global affiliation, benchmarking and certification program for
sustainable travel and tourism. The Green Globe brand signifies better environmental
performance, improved community interactions, savings through the use of fewer resources and
The environment and tourism are intertwined and cannot be separated. That is, the
environment protection law cannot be ignored while developing tourism. That the conservation
of biodiversity and coral reef protection are relevant to tourism is given credence by the
following:
The Convention on Biological Diversity (CBD) that came into force in December 1993
and Article 10 of the convention, which relates to the sustainable use of biodiversity. Tourism as
17
http://www.eco India.com/eco-tourism main page
- 28 -
a potential sustainable use of biodiversity was recognized in the programme structure of the
the relationship between tourism and biodiversity during its 5th meeting in Nairobi.18
Addressing the threats posed to coral reefs requires two separate areas of action:
protection of the reefs themselves and pollution prevention. While admittedly domestic laws
would be the most effective in addressing these issues, it has also been noted how very few
international laws directly addressed coral reefs conservation in the past. Then in the 1992 Earth
Summit, coral reefs finally received some attention, with Chapter 17 of Agenda 21, the blueprint
framework of international organizations, should assess the need for additional measures
to address the degradation of the marine environment from shipping, by supporting wider
taking action to ensure respect of areas designated by coastal States, within their
exclusive economic zones, consistent with international law, in order to protect and
Further, international efforts to address the problem of coral reef degradation were
spearheaded by the International Coral Reef Initiative (ICRI) created in 1994. The ICRI calls on
and promote the sustainable use of coral reefs and associated environments, with each country
18
: Integrating Biodiversity into Tourism sector: A Guide to Best Practice-UNEP/UNDP Biodiversity Support
Program.
- 29 -
and region incorporating into its existing local, regional, and national development plan,
management and provisions for the protection, restoration, and sustainable use of the structure,
tourists must obtain an entry permit from the Lakshadweep Administration to gain entry. The
entry restriction rule imposed by the British Administration under Regulation 1912 meant to
protect the rights and property of the natives. Thereafter, the Government of India also realized
the need to restrict/regulate the entry of non-natives to Lakshadweep in order to protect the
property and social rights of the natives of these Islands. To this end, it issued the Laccadive
Minicoy and Aminidive Islands (Restriction on Entry and Residence) Rules, 1967.20 The
Lacadive, Minicoy and Aminidive Islands Land Regulation, 1962, also prohibited the transfer of
The main tourism policy is formulated by the national government. Within it, concerned
state/UTs, according to the nature of tourism and ecology of the area, determine respective
policy. However, the Ministry of Environment and Forest, Government of India, also has
policies on the conservation of biodiversity, which the tourism sector abides by.
While the Ministry of Tourism and Culture of the Government of India is the nodal
ministry for formulating policies for the development of tourism, the Ministry of Environment
and Forest plays an important role in regulating the environmental activities of the tourism
19
Source for Coral reef initiative - UNEP industry and environment Oct.-Dec-1998, page-47.
20
http://www.Lakshadweep.nic.in
21
http://tourism.gov.in-Website of Ministry of Tourism, Government of India Lakshadweep page.
- 30 -
industry to protect the ecosystem of the area. In line with these principles, the international
convention ministry advises state and Union Territories to formulate appropriate guidelines for
the protection of the environment and for the sustainable development of tourism. Coastal zone
regulations are strictly adhered to by all branches of government throughout their quest to
major engine of economic growth. To harness tourism’s direct and multiplier effects for
Harness the direct and multiplier effects of tourism for employment generation, economic
Position India as a global brand to take advantage of the burgeoning global travel trade
Acknowledge the critical role of the private sector with government working as a pro-
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,
- 31 -
3.4.2 Law of Conservation of Environment and the Coral Reef22
Coral reefs were declared ecologically sensitive areas under the Environment (Protection)
Act 1986, which banned their exploitation followed by a Coastal Regulation Zone (CRZ)
Notification in 1991 that prohibited development activities and the disposal of waste in the
mangroves and coral reefs. Taking into consideration the importance of coral reefs and the factor
responsible for their deterioration, Andaman and Nicobar Islands, Lakshadweep Islands, Gulf of
Mannar and Gulf of Kachchha, have been identified for conservation and management.
The Coast Regulation Zone (CRZ) Act of 1991 was enacted by the Government of India
to protect the Indian coast from degradation. The area influenced by tidal action of up to 500
meters from the High Tide Line (HTL), and the land between the Low Tide Line (LTL) and the
HTL, have been declared part of the Coastal Regulation Zone (CRZ). The area is relaxed to 50
meters in the Lakshadweep. The CRZ-I zone includes ecologically sensitive areas, mangroves,
coral reef areas close to breeding grounds of fish and other marine life, areas of outstanding
Under the Wildlife (Protection) Act, 1972, India initiated action through state
governments to create a network of MPAs that would provide protection to critical and important
marine ecosystems. While Lakshadweep is in CRZ-1, it is not covered under the MPA.
Recently, the Ministry of Environment and Forests, Government of India was notified of
some marine life-like corals and whale sharks in Schedule-I of wildlife under the Wildlife
(Protection) Act, 1972 so it would provide strict protection against poaching and destruction.
22
H. S. Singh, “Marine Protected Areas of India: Status of coastal wetland conservation,” page-3
* Morrison 2 Desktop Folder: Current Project :new wcpc:MPA_WCPA:India.doc-Website
- 32 -
3.5 CORALS IN INDIA23
Corals, which are very sensitive, are found in tropical seas housing many other types of
organisms. Serving as the base of small land masses in the sea, they generally entice nature-
In India, coral reefs have been distributed in six regions, viz. the Gulf of Kachchha,
Lakshadweep Islands, Gulf of Mannar, Palk Bay, Andaman and Nicobar Islands. More recently,
table reefs were identified in the Malwan coast (Ratnagiri) of Maharashtra State. Fringing and
barrier reefs are also found in Andaman and Nicobar Islands (Anon 2000).
Andaman and Nicobar24 constitute a UT of India like Lakshadweep. They lie over an area
of 8,249 square kilometers in the Indian Ocean, 193 kilometers away from Cape Negrais in
Myanmar, 1,190 kilometers from Chennai, and 1,255 kilometers from Kolkata.The marine
ecosystems25 of the Andaman and Nicobar Islands are unique because of their very high degree
of biodiversity and the endemism in their fauna and flora. The coral reefs have also come under
heavy pressure due to uncoordinated and inconsistent developmental activities along the coastal
lands, activities that have led to deforestation, mangrove habitat destruction, and the degradation
of marine ecosystems. These islands are unlike Lakshadweep in that they are without a lagoon or
Atoll reefs are recorded in the Lakshadweep archipelago. The total coral reef area in
Lakshadweep is 816.1 square kilometers, the second highest in the six regions. The presence of
various types of reefs can be better appreciated in Annex 6, which shows the extent of the coral
23
Singh, Marine Protected Areas of India..
24
http://www.exotiqueindia.com
25
K. Dorairaj1 and R. Soundararajan, “Status of Coral Reefs of Mahatma Gandhi Marine National Park, Wandoor,
Andamans.” http://www.fao.org/docrepj.htm.
- 33 -
Tourism is increasingly being advocated as a means of increasing economic returns from
the use of the reefs with minimal damage. However, in several reef areas, especially in the very
popular ones to which access is easy, tourist activities have exceeded the carrying capacity.26
Though the major impact of these activities is predicted to be generally on the reef biota, the
fallout of tourism is expected to cover all factors that might otherwise strain the carrying
capacity of the reefs. These factors include: construction activities on or near the reefs, boat
traffic and oil spills, pollution with sewage and non-degrading material (plastic bags, soft drink
cans), abandoned or lost diving and reef-walking accessories. Examples provided by Andaman
and Nicobar will prove useful in assessing environmental impact while developing tourism, to be
Ecotourism success stories abound in India despite there being nothing new in
ecotourism, given that the concepts27 of tourism have already been integrated with the principles
of environmental management, and such practices are in vogue in all parts of India. In a sense,
therefore, ecotourism is a western concept that entails putting “old wine in a new bottle”. It is not
new or unique to countries like India, where ecological balance is a way of life for a large section
of the populace.
The following are important ecotourism destinations along the southwestern coast of the
Arabian Sea. They have influenced the marketing of the tourism products of Lakshadweep.
3.6.1 Goa28
Goa is a state of India situated along the coast of the Arabian Sea. Lying on
26
M. Wafar, “Carrying Capacity of Coral Reefs”, National Institute of Oceanography, Dona Paula P.O., Goa -4
27
O.P. Kelkar, Ecotourism and Green Productivity in India.
28
http://www.goa.nic.in.
- 34 -
the western coast of the Indian Peninsula, Goa is geographically located between the
latitudes of 15° 48' N to 14° 53' N, and longitudes between 74° 20' E to 73° 20'E.
Transport: Indian Airlines, Jet Airways, and Air Sahara fly to Goa from Delhi,
Mumbai, Bangalore, Chennai, Kochi, Kozhikode, Pune and Agatti. The most important
railhead in Goa is Madgaon, which is also known as Margao. Konkan Railways runs
various trains en route to Goa from distant places like Delhi, Mumbai, Bangalore, Kochi,
etc.
The main national highways that cross Goa-4A, 17 and 17-A lead to Goa. The
distances between Panaji and other major cities are as follows: Mumbai - 594km,
Belgaum - 154km, Bangalore - 632km, Pune - 471, Ratnagiri - 236km. State transport
Goa is famous for ecological tourism activities like wildlife viewing, trekking,
rafting, bird watching, angling, camping, sea beaches navigation, and many others.
Besides its natural beauty, fabulous beaches and sunshine, Goa takes pride in the laid-
back, peaceful, warm and friendly nature of its people. Goan cuisine is a blend of
different influences to which Goans have been exposed over the past centuries. Since the
arrival of the hippies in the sixties, Goa has been a major destination of international and
domestic tourists.
Two types of tourists with distinct needs visit Goa. The first type consists of domestic
tourists who comprise 80 percent of all tourists in the island and come to experience the Goan
culture which is known for its mysticism, sense of freedom and an unconventional dress style.
The second type consists of international tourists who visit Goa purely for its natural
environment, sun, and beaches. The tourist season in Goa begins in late September and carries on
through early March. The weather gets fairly hot around May up till the end of June.
- 35 -
Large chains of hotels may be found among the more than 20 four- and five-star hotels in
Goa, in addition to which are various other hotels and cottages. For double bedrooms in five-star
3.6.2 Kerala29
Kerala is a state of India located at its southwestern tip along the coast of the Arabian
Sea. Some 560 km long, the narrow stretch of land has a population of 31.84 million dispersed
over 38, 863 square kilometers. The Malayalam and English languages are widely spoken in
Kerala, which has 7 five-star, 9 four-star, and 66 three-star hotels, in addition to other small
hotels. Tariffs in three- to five-star hotels range from US$100 to US$700 per day for a room.
Kozhikode and Nedumbassery (Kochi), which cater to domestic flights, as well. It has a good
system of roads and railways. Kochi is a major seaport, while Beypore (Kozhikode), Alappuzha,
The most loved tropical paradise of India, Kerala boasts of having some of the richest
biodiversities in the World. Today it is one of the most sought-after tourist destinations in Asia,
and represents one of India's three richest tropical moist forest areas. This part of the country
with its wet evergreen forests has the most complex and species rich vegetation assemblage in
the country. Endemism is very high especially among flowering plants, small mammals and
It has been significantly successful in its tourism efforts, in creating a key tourism
platform for the state and in positioning itself competitively in the international tourist market.30
In 2003, Kerala registered the highest growth in international arrivals in India at 26.8 percent.
29
http://www.ecoindia/kerala
30
Kerala’s Approach to Tourism Development: A Case Study, Ministry of Tourism & Culture, Government of India.
- 36 -
Acclaimed as India’s only ‘tourism superbrand’, Kerala has been able to develop strengths in
The palm-lined beaches of Kerala are most visited for their gentle surf and soothing
azure waters. Some of its beaches--Alappuzha Beach, Kovalam Beach, Pthiramanal Beach,
3.6.3 Bangalore31
Bangalore is an ecofriendly business city which has become a major tourist destination in
the region. Southeast of the South Indian State of Karnataka, it is positioned at 12.97° N 77.56°
E and measures 741 square kilometers. Situated about 300 kms away from Cochin and 650 kms
from Goa, Bangalore is connected by air, road and train to various areas in the region. Tourists
can travel from Bangalore to Cochin, Goa by any mode of transport. Air tariff from Bangalore to
The city has a large number of hotels in all categories. Tariffs of high category hotels in
known to be the Silicon Valley of India due to its preeminent position as the leading contributor
to India's IT industry. It has developed into one of India's major economic hubs. Its various
corporate houses can be attracted to Lakshadweep for confrences and holiday trips.
31
http://en.wikipedia.org/wiki/Bangalore#Geography_.26_Climate
- 37 -
CHAPTER 4
Lakshadweep Development Corporation Ltd., who serves as ex-officio secretary under the
capacity from among senior officers of the Lakshadweep Administration heads the DOT because
assisted by clerical staffs. At present, four tourism officers and three water sports instructors of
the DOT work with the Society for the Promotion of Nature Tourism and Sports (SPORTS) in an
ex-officio capacity.
with the appointment of five tourism officers and four ministerial staff to look after and manage
tourism-related issues. Being responsible for the implementation of various schemes and plans,
the DOT is currently responsible for the implementation of the XIth Plan.
DOT is the owner of accommodations in the various islands, while SPORTS manages
these on lease for tourism activities. The details of accommodations are given in Table 4.133.
32
Director Pravesh Jha, Department of Tourism, Lakshadweep.
33
http://www.lakshadweep.nic.in
- 38 -
Accommodation facilities indicated are with respect to specific resorts with water sports
Kavaratti 5 10 1 10
Bangaram 30 60 1 8 16 8 22 1 2 60
Kadmat 10 20 1 4 60
Kalpeni 1 3 8 8
Minicoy 2 10 20 6 26
Agatti 10 20 20
Total 45 90 6 8 16 28 62 1 2 7 14 184
Source-http://www.lakshadweep.nic.in
All infrastructures were developed by the DOT through the Department of Public Works
as per the Public Works Manual for construction. However, seven private huts also operate under
SPORTS at Kalpeni and Minicoy. Facilities and geographical features are mentioned in section-
3.2 of chapter 3 and in Annex 5. Tariffs for facilities and packages linked with transports are
1. Agatti Beach Resorts (AIBR) - The resort is situated within walking distance
from the Agatti airport. High-speed boats for hire by groups of tourists from AIBR to other
islands are available. High quality basic amenities at three-star facilities for indoor sports, water
sports like snorkeling, scuba diving, deep sea fishing, lagoon fishing, bottom-glass boats, etc. are
similarly available. Facilities and tariffs are listed in Annex 7. Resort structures built by the
government are on lease to the resort operator, Mr. Muthukoya, who determines the schedule of
34
Department of Tourism, Lakshadweep.
- 39 -
Figure 4.1 Agatti Beach cottage
2. Kadmat Island Resort – The Kadmat Island Resort built by the Lakshadweep
Administration consists of two complexes: a family hut complex and a water sports complex.
The island resort has a total bed capacity of 58. Since it began operations in 1995, it has been
managed by SPORTS which pays a monthly rent of Rs. 20,000 and will continue to do so up to
31 May 2010. Both air-conditioned and non-air-conditioned cottages are available in the island.
SPORTS offers tour packages lasting from four to six days at the resort. Said package is
called the Marine Wealth Awareness Programme. Kadmat is also the base for Star Cruise
3. Bangaram Island Resorts (BIR) – The Bangaram Island Resort (BIR) with its
sixty cottages/beds and connected support facilities was constructed by the Lakshadweep
Administration on land leased from local landowners. The resort was opened to international
tourists in 1972. BIR is on lease to SPORTS, which further subleased it to the Casino Group of
Hotels. Figure 4.2 shows the Bangaram Beach, a tourist hut, and the interior of a cottage. Tariffs
of rooms are listed in Annex 7 A. These range from US$325 to US$750 per day.
- 40 -
Figure 4.2 Bangaram Beach Resort Island
4. Minicoy Island Resort - The 20-bed Minicoy Island Resort was also built by the
Lakshadweep Administration. On the uninhabited southern part of the island, the Department has
put up 10 cottages and 20 beds. Apart from these, there are three private cottages set up with the
help of the DOT. Unlike other resorts, Minicoy resorts are not leased out to SPORTS. SPORTS
pays Rs. 250/- per day per room, and Rs. 750/ for the dining hall and kitchen as rent for the days
of occupancy to DOT. The 10 cottages and the three private cottages are marketed by SPORTS
which operates Swaying Palm in the Minicoy Resort. These are geared for tourists who avail of
tour packages.
Lakshadweep Administration has been on lease to SPORTS at a nominal rent since 1983. The
resort has five non-A/C cottages with a capacity of 10 beds. Managed by SPORTS at a nominal
rent, they mainly cater to students groups and scuba diving enthusiasts. The cottages are used in
line with the the Taratashi tour package of SPORTS. Occupancy in the resort is generally very
low due to the limited number of beds which cannot accommodate tour groups. Moreover, the
cottages are rather old. The Kavaratti unit of SPORTS acts mainly as the catering wing of the
Lakshadweep Administration.
SPORTS manage the Dolphin Dive Center at Kavaratti built by the Administration. The
increased to at least 100, so that groups who take the waters sports course can be accommodated.
- 41 -
Likewise, accommodation at Agatti, Kadmat, Kalpeni, Bangaram and Minicoy should also be
increased to 100-bed capacities. Existing accommodations can hardly meet the normal growth in
The schedule of costs of package tours including transport and lodging as determined by
lessees and SPORTS is given in Annex 7. Taxes, tariff and lease terminology used in annexures
• Taxes – Local taxes by tour operators are charged as per policy of Kerala state like- sales
tax, service tax, etc. The Lakshadweep Administration does not impose local taxes.
However, income tax/corporate tax is applicable as per national policy on this matter.
• Tariff - Cost of packages, cottages and ship fares, including or excluding food and other
services, as specified.
• Lease - Rent of resorts received by DOT or SPORTS, as the case may be, in lieu of
leased resorts.
1. Coral Reef Package: This five-day tour package covers the islands of Minicoy,
Kavaratti and Kalpeni, aboard M.V.Tipusultan. The said ship has 150 seats/berths reserved for
the Coral Reef package tourists. SPORTS pays for the tourist tariffs to the Port Department and
operates the package covering three islands. For three days, tourists spend the day in the islands
and stay onboard the ship at night. Three classes of accommodations are available onboard M.V
Tipusultan: deluxe, first class and tourist class. The main attractions of the package are the visits
to three islands, snorkeling at Kalpeni, an aerial view from atop the century-old lighthouse in
- 42 -
Minicoy, and scuba diving/ a ride in the glass-bottomed boat to explore marine life at Kavaratti.
Also available is a wide range of water sports activities like kayaking, canoeing, swimming, etc.
This major package of SPORTS used to be the mainstay of the organization before Star Cruise
Water Sports Institute in the island. The Institute has scuba diving facilities.
3. Swaying Palm Package: The five-night package to the island of Minicoy begins
with a trip onboard M.V.Tipu Sultan/ M.V.Amindivi/ M.V.Minicoy. At the island are ten twin-
bed Cottages (AC) and three private (non-AC) cottages. A full-fledged Water Sports Institute
M.V.Minicoy. Five twin-bed cottages (non-AC) are available in the island, along with a full-
begins with a boat ride at Kochi on a Saturday and ends with a ride back to Kochi on Monday
morning. Sunday is spent on the island of Kalpeni where several water sports activities are on
hand.
offers a Discover Scuba and a PADI Open Water Dive Course lasting eight days. Approved by
world-recognized diving institutes (Pacific Asian Diving Association, SAVA, Mauritius Scuba
Diving Association, CMAS), the Professional Association of Diving Institution (PADI) course
has attracted clientele from the upcountry markets of Germany, Italy, UK and the Pacific area.
- 43 -
Excellence in quality and the ability to impart the latest techniques in the diving arena are
important criteria for the institute’s higher capacity utilization and appreciation by the customers.
These tourism products are suitable to the ecosystem of Lakshadweep in view of the
sensitive eco-fragile island and the scarcity of resources. The tourists stay on board during the
night and travel to the different islands in the daytime, where they enjoy the beauty of the islands
and water sports. For organizing such packages, SPORTS pays the tariffs to the port department.
These packages which are for different periods ranging from one day to eight days provide
choices to different types of tourists whose interest and budgets may vary. The packages help the
Administration invest much less in accommodations while maintaining the carrying capacity of
the islands. In 2005, group tours dramatically increased following the start of Star Cruise
Operations. This increase created market opportunities for products of the native population, not
7. M/S Star Cruises: M/S Star Cruises operating cruise ships to Lakshadweep started out
with MV Superstar Libra’s sailing from Mumbai to Kadmat on a regular basis from October
2005 onwards. Apart from this, M/S Ocean Cruises India Pvt Ltd also began the operation of an
exclusive cruise ship, the MV Ocean Odyssey, to the islands of Suheli Valiyakara, Cheriyam and
Thinnakara since January 2007. At present, two ships, namely, M.V. Superstar Libra and MV
at Kadmat. It has also set up basic facilities in the uninhabited islands of Suheli Valiyakara,
- 44 -
The number of voyages made by a passenger ship is decided based on its dry-docking
and annual maintenance schedules and the monsoon season. On an average these three ships
together are dry-docked and under maintenance for about 250 days a year. 35
It is important to mention here that cooperative societies play a crucial role in the
Regulation 1962, there are 55 societies registered. Each inhabited island has its own Marketing
and Supply Society. An apex society, the Lakshadweep Co-operative Marketing Federation
(LCMF) is responsible for procurement and supplies all materials through Island Marketing and
Supply Societies to its members. Majority of the natives are members of their respective island
society, and these cooperative societies, are in turn, members of the LCMF. The LCMF functions
at the mainland, Cochin, Calicut and Manglore, and supplies materials to all island societies
according to their need. The secretaries of these societies are government officials appointed by
the Registrar of Cooperative Societies, Lakshadweep. The societies receive grants and transport
subsidies from Lakshadweep administration, and also act as Public Distribution Retail outlets of
Apart from the above-mentioned societies, Lakshadweep has many other societies
registered with the Registrar of Co-operative Societies, Lakshadweep under the National
Government Act, the Society Registration Act 1860. Relevant provisions37 of the said act are
35
Department of Ports, Lakshadweep.
36
XIth Plan Document, Department of Planning and Statistics.
37
Society Registration Act. 1860.
- 45 -
Section 1: Any seven or more persons associated for any literary, scientific, or
charitable purpose, or for any such purpose as described in section -20 of this Act, may,
by subscribing their names to a memorandum of association, and the filing the same with
Registrar of Joint –stock Companies form themselves into a society under this Act.
As per Section 20 of the Societies Registration Act 1860, the following societies may be
registered:
the fine arts for instruction, the diffusion of useful knowledge, [the diffusion of political
among the members or open to the public museums and galleries of paintings and other
instruments, or designs.
Inspired by the success of these societies in associating with the native people, thereby
allowing the benefits of the developmental programs of government to reach the grassroots level
without disturbing the social fabric of the indigenous Muslim community in the Lakshadweep,
the Administration put up an organization to ensure the success of tourism: the Society for the
Promotion of Nature Tourism (SPORTS). Established in 1982 and registered under section 1 of
the Societies Registration Act 1860, its Chairman is the Administrator, U. T. of Lakshadweep.
The registration number of the Society is S. R. XLV. Its main objective is the promotion of
4.4.1 Society for the Promotion of Nature Tourism and Sports (SPORTS)
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friendly tourism in the Lakshadweep. The impossibility of changing or even creating a new post
in the DOT, because the power to do so is vested in the National Government, also convinced the
Lakshadweep. This effort of the Administration shows how the DOT requires professionalism
Under the Lakshadweep Administration, SPORTS, a society fully funded by the DOT,
was set up to act as a flexible nodal agency for tourism operations in Lakshadweep. Tourism
officers are tasked to serve as its Deputy General Managers (DGMs). Its organizational chart is
Six members of the Board of Directors of SPORTS are heads of the following
departments: Tourism, Industries, Public Works, Ports, Collector and Registrar of Co-operative
Societies. The Administrator acts as Chairman, while the Secretary of the DOT acts as its
Managing Director. Four tourism officers and three water sports instructors of DOT work with
SPORTS, to which DOT has transferred tourism infrastructure on rent or lease. SPORTS has, in
turn, leased tourism infrastructure to private tourist operators who provide and manage tourism
The society has been acting as the hospitality wing of the Administration. Since 2003,
SPORTS has been managing the State Guest House, Kavaratti. Its activities have yielded not
only additional revenue for the society, but have also guaranteed employment for 36 local
unemployed youths. Efforts are on to bring forth the operation of Minicoy and the Agatti Dak
38
Department of tourism, Lakshadweep.
39
Department of Tourism, Lakshadweep.
- 47 -
Bungalow and Lakshadweep Bhavan New Delhi under SPORTS. Such moves would offer direct
employment to nearly 50 local youths in the hospitality industry. SPORTS also looks after the
1. Mr. T. Muthukoya: SPORTS leased the Agatti Island Beach Resort to Shri T
Muthkoya of Amini Island for a period of five years on 1st November 1996. Lease of the resort
to SPORTS by the Lakshadweep Administration had expired by then. Then when the lease to
Shri T Muthkoya expired in 2001, the Lakshadweep Administration intervened, citing the fact
that the property belonged to the government. Accordingly, Shri Muthkoya was directed to remit
a lease rent of Rs. 800,000.00 per annum directly to the DOT, rather than to SPORTS, starting 1
November 2001.
On completion of lease period, Shri T Muthkoya filed a case in the District Court,
Kavaratti regarding the operation of the resort as the lease was not renewed for the next five
years. After detailed deliberations, the lessee was allowed to renew the lease for a period up to
31 October 2011, subject to the fulfillment of certain conditions. The terms and conditions were
The court passed an order to renew the lease up to 31 October, 2011. However, the lease
2. Casino Group of Hotels: The Bangaram Island Resort (BIR) resort started
operations in 1974. Since then, it has catered to international tourism exclusively. The Hotel
Corporation of India managed the island resort until 1982. On 22 October 1988, the Casino
Group of Hotels, Cochin entered the field of Lakshadweep tourism through a lease with
SPORTS, to operate the Bangaram Island Resort. Since then, the Casino Group of Hotels has
40
Ibid.
- 48 -
been operating Bangaram. It has since renamed its hotel chain to CGH Earth (Casino Group
Hotels). The CGH group is paying an average of Rs5.5 million per annum to SPORTS.
operations. It runs one dive shop in Kadmat and another in Bangaram. The Kadmat dive shop is
leased from SPORTS, while the Bangaram one is leased from CGH.
The Ministry of Tourism and Culture, Government of India, is the nodal ministry for the
formulation of developmental and regulatory policies with regard to tourism. That this is so is in
accordance with International and National Laws. Like other states/UTs, Lakshadweep has no
Legislative Assembly to make state level laws. Instead, state and union territories submit their
policy proposals for new developments to the Ministry of Home Affairs (MHA) for approval.
The Administrator, who is the Head of State, represents Lakshadweep in all policy making
At the national level, a corporate body, India Tourism Development Corporation (ITDC),
promotes and manages tourism under the Ministry of Tourism, Government of India. ITDC
assists states/UTs in the conduct of skills development programs for tourism professionals
through its nationwide network of 14 training institutions dedicated to hotel management and
catering services. Similarly, all state Government/UTs haves State Tourism Development
Corporation to promote and regulate the tourism sector in their respective state/UT, except in
Lakshadweep. These corporate bodies are public sector entities under the Department of Tourism
of the concerned state/UT. They seek to inculcate flexibility and professionalism in the tourism
- 49 -
4.6 THE XIth DEVELOPMENT PLAN (2007-2012)
The basic objective of the XIth five-year plan is to build a strong infrastructure base for
the development of tourism in Lakshadweep. In the course of the implementation of the plan,
transport facilities, accommodations, and training will be improved. The DOT will be
4.6.1 Schemes
The proposed outlay for the following six schemes under the XIth five year plan41 is
Rs7539.897 million. Details given in Table 4.2 indicate higher goals relative to those set under
Table 4.2
Proposed Outlay at a Glance (Rs. In millions)
Sr No. Name of 2007- 2008- 2009- 2010- 2011- Total
Scheme 08 09 10 11 12
1 Human Resources 8.6 10.04 12.54 13.0 14.4 58.58
2 Tourism Marketing 10.0 11.5 12.02 13.3 14.5 61.32
and Promotion
3 Opening of More 10.0 11.314 12.216 13.5 14.8 61.83
Islands for Tourism
4 Public/ Private 8.0 10.02 12.0 13.8 15.0 58.82
Participation in
Tourism
5 Strengthening of 110.0 655.219 1600.0 1800.0 2000.0 6165.22
Tourist Transport
6 Infrastructure/Civil 153.4 100.0 169.554 331.29 379.884 1134.13
Works
Total 300.0 798.093 1818.33 2184.89 2438.58 7539.9
Department are to develop and strengthen the infrastructure base for tourism development in
41
XIth Plan Document, Department of Tourism, Lakshadweep administration.
- 50 -
Lakshadweep. The DOT functions without a single Group A or B officer, except for the ex-
officio Director. New posts will be created and filled up during the plan period, and the much-
needed training of the staff will be conducted. The development of Lakshadweep as a water
sports destination has been proposed, along with the procurement of water sports equipment for
the newly opened tourist centers. The total proposed outlay for the scheme’s implementation is
Rs5.858 million.
inevitable than in the mainland that the potential tourists are not only informed about the
facilities available but that they are also educated about the fragile ecosystem of these islands.
Therefore, the department will undertake to streamline tourism marketing vigorously through
exhibitions, seminars, fairs, etc. Total plan outlay for the scheme is Rs61.32 million.
model of development, the Lakshadweep administration obtained the approval of the Ministry of
Tourism, Government of India, for the development of tourism in two uninhabited islands:
Thinnakara and the Cheriam islands. Land will be made available to the resort at concessional
rates, i.e., 9 percent of the land value so that the viability of the projects would not be affected.
Appropriate decisions with regard to the opening of more islands for domestic tourism, i.e.,
Amini, Kiltan, Chetlat, Bitra and Androth, were to be made. The proposed outlay for the scheme
is Rs61.83million.
Scheme No. 4: Public/ Private Participation in Tourism - The market for handicraft
items for tourists will be developed to provide employment opportunities for the youth and the
construction cost of the shop. The individual entrepreneur should put up the remaining 50
- 51 -
percent. As the nodal agency, SPORTS will carry out tourism functions in Lakshadweep. The
has no tourist ship/boats/helicopters exclusively for tourists, who are thus transported from the
mainland to the island by the MV Tippu Sultan Passenger Ship, along with the local passengers.
For this reason, the administration has included provisions in the XIth plan for the acquisition of
speedboats and helicopters, and a big cruise ship dedicated to transporting tourists. The proposed
Scheme No. 6: Civil Work - The Department of Tourism has been functioning since
1988 without a separate office building. The Administration has thus proposed the construction
of a separate building and of huts, health clubs, bathing huts, etc. on islands, where the
development of tourism has been recommended. It has also been proposed that information,
tourism and cultural cum convention centers be opened at Lakshadweep Bhawan, New Delhi to
investors and media. Total proposed outlay for this scheme is Rs1132.84 million.
- 52 -
CHAPTER 5
5.1 PERFORMANCE
Analysis of data for the assessment of the performance and achievement of the tourism
sector is important to instituting improvements and future planning. It is also necessary to study
the external environment to be able to appreciate the effects of external forces, resources, and
The people of Lakshadweep constitute an indigenous tribe with unique social values and
customs. The place is a rare case where so many elements are scarce and even the population
density is high at 1,894 per square kilometer. The achievement of government’s Tenth Plan in
terms of budget utilization and physical targets is given in Annex 9. Macroeconomic indicators
like the level of growth of tourism and the reduction in employment exhibit a direct impact on
the achievement of the overall goal of government, i.e., the attainment of a self-reliant economy.
effectiveness of the DOT in the utilization of resources. Therefore, it appears necessary to study
the trend of tourist arrivals in Lakshadweep to better appreciate the other constraints to
development.
<
Performance in terms of tourist arrivals can be seen in table 5.1 and figure 5.1. In figure
5.1, it appears that the increase in tourist arrivals from 2588 during the period 2004-2005, to
15,203 during the period 2005-2006 is due to the operation of the Star Cruise. The breakdown of
- 53 -
Tourism sector growth was very erratic until 2000-2001 when it averaged between 2 and
1
Source: Lakshadweep Administration’s Web Page://lakshadweep.nic.in/Tourism.PDF
The trend in tourists inflow clearly establishes the negligible rise in tourist arrivals and
its decrease from 1998-1999 to 2001-2002. Inadequate accommodations and transport facilities
have been identified as the main causes of such erratic growth. On the other hand, the sudden
increase in arrivals from 2005 onwards is credited to the commencement of Star Cruise
operations that allowed tourists to stay on board the ship during the night.
The Government of India has allocated a sufficient budget for tourism development and
provided subsidies for food and transport to the Lakshadweep. It supplies all food, grain, oil, and
other essential items at reasonable prices, through distribution networks consisting of cooperative
- 54 -
But literacy rate is 87.5 percent and employment opportunities in government jobs are
very limited. The development of industries is slowed down by environmental constraints and
the scarcity of raw materials. Agriculture cannot be developed as much either due to the paucity
of land and the soil quality, which effectively limits agricultural opportunities to coconut
production.
While some laborers are engaged in coir twisting and fisheries, inadequate pricing of
their produce due to the inaccessibility of the market does not make the sectors lucrative. Fish
catch at present is 12,800 tons. Further, these sectors are not able to provide employment to the
educated youth.
percent marginal labor. The percentage of unemployed persons registered in the employment
In view of above data, it appears that the high unemployment problem is due to limited
job opportunities, leading in turn to low values for local products due to the lack of
customers/markets for their products. This predicament has forced the locals to contend with a
vicious cycle of poverty. The need to align the development of various sectors to achieve the
It is also important to analyze how best to achieve the objectives of the Lakshadweep
As mentioned earlier, the 2 to 3 percent growth of the tourism sector which was lower
than the expected 7-9 percent failed to provide job opportunities for the unemployed youth in
Lakshadweep. Therefore, the Low Growth of the Tourism Sector is the core development
- 55 -
It is also clearly inferred from the Problem Tree that the four major constraints to
development are the weak institutional set-up, low returns on resource utilization and lack of
the ecosystem. These four constraints have caused the low growth of tourism that has in turn
resulted to the slow growth of the economy of Lakshadweep. Similarly, the cause of these
problems can be inferred from looking at the Problem Tree downward. The Problem Tree
explains very well the cause-effect relationships of various constraints leading to the low growth
Top management of SPORTS consists of DOT officers and lower level staffs are
shortage of skilled manpower have been blamed for the slow development of tourism.
Ever since resources were transferred to SPORTS, which further transferred these
resources to private parties for managing on a sublease basis, a delay in the lease renewal
was experienced, while low returns on resources resulted for the DOT. For instance, the
lessee of AIBR managed to extend the lease without any lease enhancements effected in
linkages: As the DOT forged long-term leases of its resources with private parties, it
failed to benefit much from revenues of new distinct products like water sports. Further,
marketing promotion was not explicitly directed at high class and rich tourists for
differentiated products in the domestic western region of India. Since, tourism operations
- 56 -
was curtailed and unemployment increased. The market could not be developed, thereby
allowing the low value of local products like handicraft, coir and fish and coconut-based
products to persist.
equivalent to 184 beds were not sufficient for water sports institutes, which could not, in
turn, utilize the insufficient accommodations. Delays in the expansion to other islands
also added to the slow growth of tourism, as did the insufficiency of air and sea transport.
DOT did not undertake marketing promotions of products because products pricing and
use were under the purview of SPORTS and its lessees. These arrangements further
4 Threat to the Ecosystem: Insufficient coordination between the DOT and the
did the lack of people’s participation, the low involvement of NGOs and social groups.
The distinct and highly sensitive culture of the Muslim also obstructed participation in
and promote solid waste management likewise created major threats to the ecosystem.
Constraints like the lessee and lessor relationship between DOT, SPORTS and tour
operators were subject to the adjudication process. The adoption of the existing lease agreements
ignores all accountability to the Government of India. The rich cultural heritage has not been
documented, so this could not be shared with tourists. Traditional skills in preserving marine
biodiversity have not been utilized. The aforementioned constitute institutional failures.
There is an urgent need to integrate the three ecosystems--lagoon, sea and landmass-- for
the sake of sustainable development. This could be done using information from various national
and international studies, and from the experiences encountered in the course of developing the
- 57 -
Coral Islands. Having one agency like the Department of Environment and Forest undertake
environment and ecology protection by itself is ill-advised. Taking a holistic approach in the
sustainable development of tourism or any other sector in the Coral Islands of Lakshadweep
would be more prudent. Marine life is put at risk by development activities, especially water
sports, and by the waste_disposal of solid and garbage by various forms of transport and tourists,
because Lakshadweep is home to live corals. It is the second largest atoll with only 32 square
kilometers of landmass.
High Unemployment
& High Poverty
Effect
No Development of Less opportunity for Low Mobility of Native
Market for Products employment Population
- 58 -
The weaknesses and strengths of the organization can be analyzed using a diagnostic tool
Leaders and consultants often use the 7-S framework to help them capture the
multiplicity of factors that shape an organization’s behavior and performance. 43 The 7-S
framework, which emerged from a stream of researches for analyzing organizations, was
developed by a team of McKinsey & Company consultants, the Harvard Business School and the
Stanford Business School. It has been used to analyze the DOT’s operations as follows:
5.4.1 Strategy
DOT does not have any strategic approach for marketing its products on a competitive
basis because it operates through SPORTS. The DOT has plans to expand tourism
the pattern of Bangaram Island for international tourism, and to the inhabited islands of Amini,
Kiltan, Chetlat, Bitra and Androth for domestic tourists. No cost-benefit analysis has been done
and expenditures are being made on the presumption that tourism will create employment
opportunities for native educated youths. No inference was made with regard to the extent of
benefits given to natives in the form of job creation in tourism or its allied sectors, like the
development of markets, the participation of locals in tourism, etc. The XIth plan also stipulated
that loan schemes would be extended to natives so they could construct shops for selling their
products to tourists. However, no strategy was made available to show how this scheme would
be executed. Neither has a strategy been formulated to promote the locals’ products in the market
43
Harvard Business School (9-497-045) , ‘Organizational Alignment: The 7-S Model’, Rev. November 19, 1996.
- 59 -
The DOT has not been able to accelerate the development of tourism in line with the
major goals of the Lakshadweep Administration, i.e., the creation of a self-reliant economy
through sustainable development. The strategy to align goals with the preservation of ecology as
determined by the environment authorities for the mitigation of the impact of waste disposal on
marine life and coral islands does not exist, even if ecology protection is the most important
mission statement.
There is no strategy for targeting high-end tourists, especially foreign tourists and rich
domestic honeymoon couples from Bangalore, Goa, Kerala and other domestic/international
jump-off points to Lakshadweep, to balance population tourist ratio vis-à-vis national standards,
and to get high returns for the use of the pristine beauty of the Virgin Islands without disturbing
the ecology. There is also no strategy to ensure that organizational functions comply with
international laws.
5.4.2 Structure
The DOT has a hierarchical form of organization and the Administrator, Secretary and
Director are civil servants who function on a division basis rather than specialize, being as they
are top management. Lower-level officials/managers who specialize in tourism work with
Its association with SPORTS through a lease system makes porous boundaries for DOT,
thereby creating confusion across the different functions and causing mismanagement due to
function overlaps.
The top managements of DOTS and SPORTS’ sharing dual responsibilities results into a
very weak system of governance. The DOT is left with the tasks of planning and budget
disbursement without any accountability mechanism that would allow it to check the practices of
- 60 -
tour operators and SPORTS offices. There is no mechanism pertaining to the welfare of
employees in the tourism sector to ascertain whether such employees receive remuneration
The DOT does not even have a separate building for its office, so that the construction of
one for its exclusive use has been proposed by the XIth Plan. The same plan has proposed the
Working conditions are very hard for the staff because harsh weather conditions disrupt
the supply of food articles and vegetables during the rainy season, given that everything has to be
procured from the mainland. Sometimes, even vegetables are not available during the rainy
season. However, there is no pollution in Lakshadweep so that everyone can fully enjoy the
5.4.3 System
There is no system within the DOT to facilitate the efficient management of tourism
through the effective utilization of resources. Its lessee arm is similarly full of weaknesses, being
managed as it is by borrowed staff from the DOT. Other employees of SPORTS are not
professionally competent to be able to add value to tourism products. As for the earlier lease,
there has been no enhancement of lease/rents in the last 10 years, resulting to losses on the part
of government. Operating through SPORTS has also created confusion and legal complications
for DOT. Those who benefit from the arrangement without promoting the participation of the
native people are the private individuals. As things stand, the Department of Tourism has very
good and modern developed infrastructure that meet international standards like-AIBR, BIR
Island resorts. But these are leased to private parties by SPORTS. Further, performance measures
and rewards systems do not exist in the organization so that employees receive no more than
- 61 -
regular government salaries at par with those who work in other government departments. There
have been no serious efforts to re-engineer the DOT to revitalize its functioning either.
The financial performance of DOT, SPORTS could be gleaned from the following:
5.4.3.1 Financial
The Department of Tourism has beautiful resorts like AIBR, Agatti, BIR Bangaram,
Kadmat, Kavaratti and Minicoy that have been transformed into water sport diving centers
equipped with modern facilities. All these resorts were built using government funds exclusively
and then leased to SPORTS. Details on the lease/rent revenue (Rs. 9.09 million per annum) they
Income of DOT- Income44 from the tourism sector accrued from the lease of facilities
by the DOT, Lakshadweek to SPORTS are presented in the table 5.2. The lease/rent rates have
Income of SPORTS: Income generated from other tour packages managed by SPORTS
44
Sent by Mr. A . M. Hussain, Tourism Officer, Department of Tourism, Lakshadweep.
- 62 -
and tariffs for travel and night stay are paid to the Department of Port and to the Star Cruise Line
operators by SPORTS. Details on the different tour packages are not available in the DOT but
revenue generated by SPORTS from Star Cruise was Rs20 million in 2006-2007. SPORTS
further leased infrastructure to private tour operators who organized tour packages.
Details on the gross profit of SPORTS from financial year 1996-97 to 2000-01 as of 31st March
2001 are shown in table 5.3. Details45 on the percentage income breakdown from different
(a) Package tour collections: 49 percent, (b) Lease rent, royalty, etc.: 23 percent
(c) Catering and related activities: 10 percent, (d) Water sports, scuba diving, etc.: 2
percent
e) Miscellaneous income (interest from FD, income tax refund, rent, etc.): 16 percent
Table: 5.3- The income and expenditure patterns from 1996-1997 to 2000-2001
(in Rs millions)
Year Income Expenditure Gross Profit
1996-97 23.98 16.287 7.641
1997-98 27.976 10.680 17.296
1998-99 27.613 18.911 8.725
1999-00 12.704 14.340 - 1.6.36
2000-01 29.888 18.570 11.318
2001-02 33.489 23.950 9.539
Source: SPORTS, Lakshadweep
Further, SPORTS income from lease/rent and package products is but 23 percent and 49
percent of total revenue respectively, despite tariffs paid to the Department of Shipping,
Government of India. These indicate that package products have the potential to generate
revenue. Similarly, income from water sports is shown to account for only 2 percent of
45
SPORTS, Lakshadweep
- 63 -
Incomes of Lessee - Lessees charge US$240 and US$470 average per day for one double
room in Agatti and Bangaram islands, respectively. Actual tariffs for AIBR/BIR charged by the
Casino Group Hotel are given in Annex 7 and 7A. It is clear that Bangaram, Agatti Resort
facilities and water sports facilities are at par with international products/resorts in the same
category. The projected income statement as per tariff fixed by the Casino Group of Hotels is
shown in table 5.4. It shows that a profit earned by the lessee in lieu of lease of Rs. 5.5 million is
six times of lease/rent. The estimated income statement of BIR is sufficient to estimate actual
revenue generated from DOT‘s tourism resorts which are presently on lease to CGH through
SPORTS.
Lease from BIR to DOT per annum =Rs 5.5 million In USD
Assume occupancy 70 percent and 250 days tourist days
BIR Tariffs $ 290 to $650 per day for double bed as per Annex 470 Avg
7A
Assume 55 percent operating cost including Salaries,
Total Cottage at Bangaram – 30
A- Total Gross Revenue in a Year 2467500
B- Salary and Administrative Expenses 108140
C- Operating and Maintenance Costs 1233750
Total Operating and Maintenance Costs (B+C) 1341890
Gross Profit A-(B+C) 1125610
Corporate Taxes @ 30 % 337683
Net Profit 787927
In Rupees (1 USD =Rs.43) As of 23 May 2008 33880861=Rs.33.88Million
Lease per annum to DOT in Rs. 5.5 Million
Estimated difference between lease to DOT and net income of 28.38 Million
BIR per annum in Rs.
- 64 -
5.4.3.2 Xth Plan Budget Expenditure
The financial allocation46 for the Tenth Five-Year Plan (2002-2007) was Rs 501.55
million, as given in Table 2, Annex 4. But actual financial allocation was increased to
Rs1062.88 million for the Xth Plan. Actual financial and physical targets for the Xth Plan, along
Performance measurements are given in terms of funds utilization during the plan years,
but no return on investment in DOT as per achievement presented in Annex 9 is shown. For
example, actual equity participation of Rs60 million with LDCL under scheme 4 is shown
against the original plan outlay of Rs13.5 million given in table 2 in Annex 4. This example
shows that funds allocated for tourism development were used as equity with LDCL in the
absence of strategic planning for tourism development. Similarly, Rs 67.28 million was used
under scheme 1 for the procurement of water sports equipment and the training of 144 personnel,
whereas DOT has no such large number of staffs and all water sports infrastructure are on lease
to different lessees through SPORTS. Data show the lack of accountability in the use of funds
Presently, the XIth Plan is in progress. An outlay of Rs7539.89 million has been
proposed for the development of tourism. There is a provision in Scheme 1 for the development
of infrastructure and human resources, but nothing is mentioned about the type of infrastructure
and the requirements of professionals and skilled staffs. Scheme 6 speaks about civil works,
which actually refer to infrastructure, and there is provision of Rs1132.841 million for the
For marketing promotion under Scheme 2, proposed outlay is Rs61.32 million, but the
scheme mentions that tourists will be educated on eco-fragile ecology through exhibitions.
46
XIth Plan Document of Department of Planning &Statistics (2007), Lakshadweep Chapter on Tourism.
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Government, for its part, stipulated separate provisions for the Department of Environment to the
The Department of Tourism could not utilize the allocated fund under the Tenth Plan.
Increase in tourist arrivals was due to the private ventures of cruise liners, and revenue generated
was for the account of SPORTS rather than the Government of Lakshadweep. Therefore, the
goal set by DOT is not clear and the measurement of output is not possible due to the DOT’s not
setting clear enough goals and performance indicators for its lessee.
5.4.4 Staffing
Administration are responsible for setting the direction and policy making functions, but they
cannot devote much time to monitoring and supervising the regular functions of the DOT
The Director who is the head of DOT is also in ex-officio capacity, in addition to his
other designations. There is no sanctioned post of Director to provide direction and supervise
work at the DOT. The Director is assisted by one superintendent (Administration), an Account
Officer to look after the budget and disbursement of funds, and one Upper Divisional Clerk
(UDC). Five tourism officers and three sports instructors work with SPORTS. Targets have not
been attained in terms of human resource management and physical achievement, as mentioned
in Annex 9, which stipulated the filling of six posts but ended up in the filling of none. Similarly,
training was proposed for 325 personnel, but only half were trained whereas DOT does not have
sufficient staff as shown. This development shows that the training proposed was unrealistic.
The Government of India recruited officers and created lower staff vacancies through the
normal bureaucratic system of recruitment and selection, which was cumbersome and delayed
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5.4.5 Skill
The DOT’s core competencies are the Bangaram and Agatti Beach Resorts, which meet
international standards with regard to facilities. Distinct skills are available at the Diving
Institute, Kadmat, Bangaram and Kavaratti, which have water sports facilities like snorkeling,
scuba diving, etc. The emergence of Star Cruise line operators in Lakshadweep is a recent major
The DOT is fully competent and can efficiently fund the development of infrastructure
through the Department of Civil Works, which can, in turn, complete tasks within the time frame
and advance further to the other islands. Still they need to learn to maximize the use of marine
biodiversity for sustainable tourism, amidst the available resources and ecological constraints.
5.4.6 Style
The Administrator and Secretary who are both government heads set the style. Their
functioning is purely authoritative and bureaucratic; rarely do they get the opportunity to meet all
the managers of all the resorts, which lessees operate under their supervision.
The decision-making process in the DOT is hierarchical so that everything is done the
The DOT has no corporate culture, but the vision of the Lakshadweep Administration for
the sustainable development of Lakshadweep through the participation of the local people
without disturbing the ecosystem of the area, serves as the guiding principle for obtaining the
budget allocation for tourism. As mentioned earlier, tourism has already been identified as a core
The people of Lakshadweep have high expectations of the tourism sector because the
other two sectors--fisheries and agriculture have limited scopes due to the scarcity of land and
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the smallness of the market. The DOT’s main motto is to provide employment opportunities to
the local people through the development of tourism. The natives and the DOT have a shared
The 7-S Model is a helpful tool for discerning the strengths and weaknesses of organizations, as
discussed herein.
A 7-S analysis highlights the areas that might limit the effectiveness and cause the
internal misalignment of the DOT. “Nonetheless, the 7-S framework, when used as a tool by
leaders and consultants to understand the strength and weaknesses of organization, can offer
powerful insights to guide management,”47 Here the tourism organization is the Department of
out the development of the area in order to improve the quality of life of the people. In this
particular case, government wants to promote the tourism industry vigorously, through the
development of tourism activities via associating the people of Lakshadweep. Through the
territory’s sustainable development, the people can make the economy self-reliant.
The strengths and weaknesses inferred from the performance analysis of the DOT are
5.5.1 Strengths
uninhabited islands and for the opening of international tourist spots that meet international
standards. Other resorts and huts in various islands with water sports facilities have
established their reputation, among them resorts that are presently on lease to different tour
47
Harvard Business School (9-497-045), ‘Organizational Alignment: The 7-S Model’ , Rev. November 19, 1996.
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operators. The Tourism Department’s efforts to promote eco-friendly tourism were
appreciated at the international tourism bourse in Berlin, Germany. Water sports and PADI
training courses, are available in various islands like Kadmat, Kalpeni Minicoy,and
Bangarm, along with the distinct skills of the native employees. The Star Cruise Line
2. Financial assistance from the Government of India for the development of Lakshadweep
along with a subsidy component strengthens the resource base of DOT. Total proposed
outlay per the XIth Plan is Rs7539.897 million for the development of tourism in
Lakshadweep.
3. SPORTS have gained experience, knowledge and skills through tourism-related impact
biodiversity, and in organizing training programmes for water sports personnel as per
sections 1 & 20 of the Society Registration Act 1860. SPORTS can provide valuable
support to the DOT in protecting the ecosystem for the sustainable development of tourism.
4. The DOT works under the Administrator of UT of Lakshadweep, who is appointed by the
President of India as a constitutional head with the power to frame rules for the affairs of
the Lakshadweep Administration, within the guidelines set by the Government of India. It
5. The experience of using eco-friendly thatched roofs for cottages and solar energy, the
acquisition of high-speed vessels/boats and the plan to acquire ships and a helicopter are
worthwhile moves.
6. The national government’s approval of expansion to uninhabited islands and the proposal
of DOT to expand to other inhabited islands provide scope for the future development of
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5.5.2 Weaknesses
1. The DOT is headed by an ex-officio director under an ex-officio secretary, who is also
charged with other responsibilities. Its role is confined to the implementation of plan
schemes and to expediting budget allocations from the Government of India. As explained
in Annex 9, the DOT could not meet the physical targets. The budgetary financial
allocation had increased from the proposed plan layout of Rs501.55 million to Rs1062.88
2. The DOT lacks professionalism. Tourism officers and water sports instructors are deputed
to work with SPORTS, and even the Director, the Secretary and the Administrator are with
the Board of Directors, performing dual functions for the sake of tourism. Top management
has experience and competency, but lacks professional support from middle and lower
management.
3. The DOT invests funds as per the Government of India’s financial rules. Hence, it is
accountable for adequate revenue generation and increased employment opportunities for
the native of Lakshadweep. But the DOT leased developed structures to SPORTS, which
further leased these to private tour operators who are gaining in real terms from these
resorts, paying as they are lease rates fixed ten years earlier under garb of court litigation.
Return on investment is very low for the DOT due to the modus operandi of SPORTS.
4. The DOT’s budgetary expenditure allocation for the Xth Plan (2002-2007) was Rs1062.88
million, whereas income of DOT from rent and lease is Rs9.09 million per annum
return on investment.
5. SPORTS is a society registered under the Society Registration Act of 1860 and cannot be a
business organization as per provision of said act. This gives an opportunity to the lessee to
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exploit legal weakness in the court of law because society is also a lessee, not the owner;
6. The DOT has transferred its resources and manpower to SPORTS, and does not have a
separate building for its office. Linkage with the environment and the marine agency is not
clear.
7. Six heads of departments of the Lakshadweep Administration under the Chairman are
meet frequently because the Board of Directors, Chairman, Secretary and General Manager
look after the other functions of their respective departments, while the work of SPORTS is
managed by Deputy General Managers and lower level managers are unable to manage
tourism in a business-like manner and could not muster the much-needed impact of job
creation for the local people. A mechanism does not exist to ensure the people’s
participation either.
a separate non-government legal entity, being a society of some kind. Hence, it lacks
accountability.
9. The DOT lacks corporate governance and culture, just like the other states/UTs Tourism
Along with internal alignment, organizations must also stay aligned with their external
environment (e.g., product and labor market, the socio-political environment). The internal
alignment must support the strategy of seeking opportunities and manage threats as per skill, to
ensure the effectiveness of the organization. Opportunities and challenges identified using the ‘7-
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5.6.1 Opportunities
Lakshadweep is strategically located in the Arabian Sea, some 200 to 440 kilometers
away from Kerala mainland, which is one of the important ecotourism destinations in India. The
Lakshadweep lies along an international sea route connecting major international tourist
destinations, namely, Kerala, Goa, and Mumbai in India, Chagos, and Maldives, which are part
of the same eco-region of the Coral Islands. These major international tourist destinations can
provide high-value tourists to Lakshadweep, which has beautiful uninhabited Islands. Alongside
the uninhabited islands that have yet to be opened to tourism to provide employment to the local
people are five inhabited islands. Maldives is just 80 nautical miles from Minicoy Island, where
tourist accommodations have reached the 85-percent occupancy level. Star Cruise operates from
India’s business capital, Mumbai, and sails to Lakshadweep via the international tourist
destination, Goa. Bangalore is the biggest center of an eco-friendly corporate house, and its
All islands of the Lakshadweep have a rich marine life, inclusive of live corals, rich flora
and fauna. They offer vast potentials for water sports that allow the discovery of the pristine
beauty of Virgin Islands and vast lagoon areas. Various species of fishes, turtles, and a bird
Private tour operators, Kingfisher and Indian Airlines, Star Cruise Operators, Department
of Shipping, and all government departments, would like to exploit the potential for the
tourism. The islands have available 19.6 percent unemployed educated youth and 26 percent
labor force.
Local resource management of coir twisting, coconut-based food and seafood production
can cater to the needs of tourists, and can attract tourists to buy locally made handicraft items.
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The Government of India’s goal is to provide opportunities for the development of
natives of Lakshadweep, through various development programmes. On the other hand, the
development process without disturbing the sensitive social fabric. Subsidies are granted for
various activities including transport. Therefore, budgetary resources can always be availed of
The unique and distinct culture of the matriarchal, indigenous Muslim society and the
history of advent of Muslim religion provide an opportunity for tourists to be acquainted with
through the network of its training institutes. The Lakshadweep administration can register a
corporate body like the other states and UTs do, to manage tourism and a transport system in a
business-like manner.
5.6.2 Challenges
The biggest challenge is to preserve the sensitive ecosystem, which includes a rich
biodiversity and the eco-fragile nature of Coral islands. Also forming part of the challenge is to
associate the native people with the tourism sector without disturbing local cultural values. The
indigenous community may oppose tourism development if it will affect their social values.
The supply of essential commodities and other items to different uninhabited islands
including drinking water and essential services, like health, requires great effort to coordinate
Scarcity of land is a major constraint that requires a balance in the population to tourist
ratio, especially in the inhabited islands. Special care should be taken in the uninhabited islands,
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like-the Pitti bird sanctuary, to preserve ecology. As per international convention and national
laws, the protection of the environment and the biodiversity of these areas is a major challenge.
Increase in waste and its disposal are likewise major concerns as there is no Solid Waste
Management program at present. To preserve the corals, all coastal areas should be protected
Rough weather is also a major challenge during the monsoon season from May to
September when continuous rains and high tides disrupt life in these islands, including transport
from the mainland to Lakshadweep and interisland. One helicopter is used for emergency
Finally, all development activities have to be done in consonance with local customary
laws and International/National laws on the protection of corals, biodiversity, and the
environment.
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CHAPTER 6
6.1 GENERAL
in the Arabian Sea. It has a distinct Muslim culture interspersed with traces of the culture of the
mainland Hindu communities in India and the Muslim religion as practiced in Maldives. Native
inhabitants of the Lakshadweep are declared indigenous (ST). To its people the Government of
India has committed to improving the quality of life at par with the mainland.
Lakshadweep has a sensitive ecology with rich marine resources of a high atheistic value,
the preservation of which is a big challenge. In Chapter 3 various international and national
standards/laws were discussed, highlighting the importance of coral reefs to the tourism sector.
Threats to the coral atolls were also taken up in light of national and international tourism
experiences, the domestic and regional market, etc. in an effort to asses the position of the
tourism sector of Lakshadweep. In Chapter 5 that atolls are truly only resource for the
economic impact on the native people of the Lakshadweep. To reiterate, the vision, mission and
objectives as explicit in the XIth Plan document of the Lakshadweep Administration and
mentioned in Chapter 2 are: “To make the economy self-reliant through faster and sustainable
development to enhance the quality of life of people through people’s participation without
disturbing ecology of islands, lagoons, sea and, culture of natives of the Lakshadweep….” The
development of agriculture, fisheries, tourism and industries for them to make a vital
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contribution to the national economy. Apparently, the sustainable development of tourism can
bring about the realization of the aforementioned objectives, vision and mission of the
Lakshadweep administration. That the schemes of government espouse the same substantiates
The constraints to the development of the overall economy were analyzed using the
Problem Tree, which showed cause and effect relationships of various factors leading to the slow
growth of the tourism sector which has, in turn, delayed the overall development of a self-
sustaining economy in the Lakshadweep. Using the Objective Tree to determine the means-end
relationships relating to the overall objective of sustainable development would help in the
The traditional strategic planning process recommends the use of the “end-ways-means”
Model48 for the plan of action. The first step per this model is to establish corporate objectives
(ends), followed by the development of a strategy (ways) for attaining them. Thereafter, one
Figure 6.1 explains how studying the means-end relationship helps in the solution of
problems identified in ‘Problem Tree’. As per the Objective Tree analysis, the core development
objective is the sustainable development of tourism in the Lakshadweep for the sake of
improving the people’s quality of life, reducing poverty and unemployment. The four major
tourism resources. It is also essential to recruit skilled manpower and professionals to manage
48
Robert H. Hayes, prof. of Management and technology at Harward business school “ Why strategic planning goes
awry” from book-“Readings in strategic management” by Thompsons, Stricklands and Fulmer 2nd edition.
- 76 -
the affairs pertinent to tourism organization to further enhance capacity and expand the reach of
K-2: Increasing rate of return: The participation of the people in the sale of local
handicrafts will increase tourism and ensure high values for local products due to market
development, through the provision of backward and forward linkages to fisheries, coconut and
other products.
The consolidation of tourism packages to inhabited and uninhabited islands will similarly
enhance the value of these products. But marketing promotion of these products is important to
attracting the rich and a particular nature lover, sea discoverers, Sun and sea oriented segment of
K-3: Adequate infrastructures in all islands: At present, the six islands have but a 184-
bed capacity. This number should be increased and existing facilities expanded to other inhabited
islands and uninhabited ones. Existing sea transport and helicopter services, however, are not
K-4: Preserving the ecosystems: There are three ecosystems: the sea, the lagoon, and
ecosystems. There should be a mechanism to associate distinct social groups and NGOs in the
development of tourism, without affecting their social fabric. It is also important to have
institutional mechanisms for solid waste management and preserving marine biodiversity to
It can be inferred from the Objective Tree analysis that a holistic and integrative approach
will provide opportunities to develop a strategy for the sustainable development of tourism in the
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Lakshadweep. Therefore, it is necessary that a plan of action to achieve the four, above-
High Return to
Strengthen Investment- Adequate Preserve
Institutional set up-K-1 K-2 Infrastructure in Sensitive
all Islands- ecosystem-
K-3 K-4
strategic planning when it provides perspectives from both the macro/long-term and micro/short-
term analysis. Strategic issues have emerged from the assessment of opportunities, threats to the
external environment, and the weaknesses and strengths of the internal environment of the
tourism sector. Logical connections should be established for the development of a strategic
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framework. A SWOT matrix will be relevant and useful to developing strategic options for the
The use of SWOT analysis to identify strategic issues can be justified on the basis of a
proposition that the key strategic issues can emerge from the fit or tension between an
organization and its environment, rather than from the gap between its goals and the actual or
projected performance. This is consistent with those definitions of strategic management which
see it as the management of the relationship between an organization and its environment
(Ansoff 1968, 18; Kay 1993, 335).49 Assessment of SWOT is arranged in Table 6.1, in order of
importance of the strategic actions from sections 5.5 and 5.6 of Chapter 5.
Four major objectives were identified in the objective analysis. These are denoted as K-1,
K-2, K-3, and K-4 in the Objective Tree. These are also shown in the SWOT matrix against each
relevant option, which will be adopted for strategic action. Strategic issues were identified by
Matrix in four groups, namely O-S strategy, W-S strategy, T-S strategy, and T-W strategy. One
option or a combination of these strategic options should propel a tourism organization to attain
objective analysis. It is seen in the matrix that there are four options each under the O-S and W-S
strategy, three under the S-T strategy and two options are under the T-W strategy. K-1, K-2, K-
3, and K-4 objectives are shown in the matrix against relevant strategic options to serve as a
guide in choosing the option for achieving the sustainable development of tourism.
49
Paul Joyce & Adrian Woods “Essentials of strategic Management” First Edition-1996, p. 66
- 79 -
TABLE 6.1 SWOT MATRIX OF TOURISM ORGANIZATION OF LAKSHADWEEP
STRENGTHS-(S) WEAKNESSES-(W)
Internal Environment Assessment W-1. Weak institutional system. No corporate
S-1. BIR, Model is a success at par with body like other states/UTs which have tourism
international standards for uninhabited Islands. development organizations. No office building.
S-2. Courses like the PADI course to develop
distinct water sports skills available in dive W-2. Insufficient number of skilled staff and
institutes with training facilities. professional executives.
W-3. Lack of financial accountability and low
External Environment Assessment S-3. Success of products of package tours. return on investment and equity with LDCL.
W-4. Dual functions of senior officers connected
OPPORTUINITIES-(O) S-4. Experience of Star Cruise Line operations. with DOT and SPORTS.
O-1. Strategic geographic location in
Maldives-Chagos – Lakshadweep global eco-
region near domestic tourist destinations S-5. Experience of developing of a organization W-5. Experience of lessees of SPORTS, litigation,
namely, Kerala, Bangalore, and Goa like SPORTS. low lease/rent.
O-2. Rich in marine life in coral islands,
lagoon, and reef including Pitti bird sanctuary.
No such biodiversity/ecosystem and water W-6-SPORTS has legal limitations in functioning.
sport facilities in domestic market in this S-6. Experience of developing tourism as a business entity as per the Society Registration
region. infrastructure. Act.
S-7. Acquisition of high-speed vessels/boats and
O-3. Uninhabited islands for development, institution of plan for the purchase of two ships W-7. Lack of a waste management system and
with pristine natural beauty. and a helicopter. coordination with ecology/environment agencies.
S-8. XIth plan allocation with subsidy from the
Government of India for the development of W-8. No reward and welfare system for employees
O-4.Six inhabited islands yet to be opened. tourism (Rs. 7539.9 million) in the tourism sector.
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There are two types of options in the matrix i.e., external and internal. External strategic
options mean the action plan of an organization for interaction with its surroundings and
environment to increase its business and other related activities. Internal strategic options refer to
essentials to support the external strategies. They mean equipping or designing the organization
to implement external strategies for the growth of an organization. The placing of the SWOT
analysis in the strategy process can be crucial to how it works in practice. Evaluations of
proposals for strategic actions are usually done against set criteria in a business organization; but
Therefore, the 7-S Model is again a very useful tool for designing an organization to support
external strategies and testing relevant strategic options for final strategy formulation, which will
be discussed as follows.
The organizational performance of the DOT, Lakshadweep was assessed using the 7-S
Model developed by McKinsey & Company consultants, the Harvard Business School and the
Stanford Business School. This tool is also useful for designing various organizational fits for
proper alignment, which is essential to the sustainability of organization for it to attain the
“Is there an easy way to tell which strategies are likely to run amok because a company
does not have the wherewithal to make them work? My claim is that there is, and my aim to
propose an answer to that question. The answer lies in the use of the McKinsey’s 7-S
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Framework. Originally developed a way of thinking more effectively, the framework also proves
Therefore, it is necessary here to arrange various strategic options from the strategic
platform (SWOT matrix) under the 7-S Framework, with justifications for suitable linkages. In
7-S analysis, external strategic options are considered as strategy while other strategic options
are for internal changes in the organization. They are suitable for designing various fits of for the
organization to support strategy where the alignment of each of ’S’ to eliminate the execution
gap is evident. Strategic options found in the matrix suggest that the DOT should have a
corporate body. Other options have been evaluated in terms of designing a corporate body for the
is necessary to suggest a form of organization to test the strategic option in the 7-S Model for the
strengthening institutional arrangement. This strategic action will help to overcome weaknesses
50
Robert H. Waterman, Jr. Thomas, J.Peters, R Philip in “structure is not organization” Business Horizons-June
1980 ,page-288, Book- Reading in strategic management by Thompson, Stickchand,Fulmer, 2nd edition.
- 83 -
The Lakshadweep administration should form a corporate body like all other states/UTs
to manage its tourism sector. A name suggested for the proposed body is “Lakshadweep Tourism
defined in Section 617 of The Companies Act-1956, the type of corporate body it should assume
should be as follows:
Any company in which not less than 51 per cent of the share capital is held by the Central
and partly by one or more State Governments. In the case of a Government company, the auditor
The Lakshadweep Administration should register a company with the office of the
Registrar of Companies per The Companies Acts-1956. The Registrar is empowered to register
Lakshadweep has acquired high-speed vessels/boats, and has proposed the acquisition of a cruise
ship and a helicopter to improve interisland connectivity and connectivity to and from the
mainland. The Lakshadweep has no separate department for transport due to the virtual non-
existence of public road transport, except for a few private vehicles/ taxis because of the small
size of the islands. The DOT has no structure to manage transport in consonance with tourism
51
The Companies Act-1956, Government of India.
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activities for the effective utilization of resources. Hence, it is necessary to have LTDCL rather
A newly formed corporate body, the LTDCL will be a registered corporate company
under the Companies Act-1956It will be a separate legal entity so it could carry out its business
of tourism and its transport of tourists in the Lakshadweep, so as to avoid any legal
complications. This arrangement will provide flexibility to its functioning and will instill
The LTDCL will be a business-like organization with the flexibility to formulate its
internal policies to create division of work on the basis of a mix of specialization and division or
area basis to coordinate, monitor and implement its programmes. The LTDCL will also integrate
functions relating to the environment, biodiversity and the social system of the indigenous
population for the sustainable development of the tourism sector. Accountability and
tourism sector. The proposed organizational set up based on function and division is shown in
Annex 11. Top management consists of generalist civil service officers supported by a diverse
Various strategic fits have been designed using the 7-S Model of LTDCL by testing
strategic options for achieving objectives identified in the objective analysis for sustainable
development of the Lakshadweep. The external strategy for LTDCL as per strategic options for
Per the analysis in section 4.6, the DOT does not have a strategy to market its products on
a competitive basis to create high value. It has not undertaken any marketing promotion efforts
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for these products targeting suitable market segments due to the fact that tourism functions are
operated through SPORTS on a lease/rent basis despite a liberal resource allocation and
O-W Strategy 4: Marketing Niche Strategy – The marketing efforts of DOT were
confined to ecology awareness and film showings in the ships about the importance of atolls. The
niche strategic option emphasizes product outputs that fulfill the special needs of a few buyers.
Because need-fulfilling products outputs present very high value to their consumers and are
produced in lower numbers, the route to profitability consists of high profit margins and pricing
policies. When a business unit decides to offer existing products or technologically new or
improved products that fulfill the need of a particular buyer in an industry, it has chosen the
Hence, a business unit competing through the niche option should be prepared to face and
There are several opportunities for LTDCL to develop its own marketing niche for the
products of Lakshadweep that target tourism. Possible targets are as follows: nature viewer and
sea lover, discoverer, rest-seekers, family-oriented sun and sea lover, corporate houses, the
cosmopolitan rich tourists segment from the domestic region, which international tourists also
visit in large numbers. Details on these segments of tourists and their choices have already been
mentioned in section 3.2 of chapter 3; and these groups of tourists account for almost 75 percent
of total tourists. In neighboring state Kerala, the influx of international tourists grew by 26.8
percent, which shows immense potential for this strategy. However, the limited carrying capacity
52
P. Wright, “ MNC-Third World Business Unit Performance: Application of Strategic Element.” Strategic
Management Journal.August,1984, pp.231-40, Book, Reading in Strategic Management , by Thompson,
Strickland, and Fulmer.
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of islands as per the study conducted by the center for Earth Science Studies mentioned in
O-S Strategy 3: Marketing Promotion- The LTDCL should launch its website for
products promotion. The website should feature the importance of distinct eco value, rich
biodiversity; water sports facilities, various packages and the unique culture of the native people.
Online advanced booking facilities should be made available to tourists. Further, the Marketing
Division of LTDCL should establish a network with big hotels in Cochin, Mumbai, Goa, and
Delhi and in European countries from where the above-mentioned segments of tourist arrivals in
the region are high. Kerala was visited by 26 percent of international tourists to India in 2003,
which indicates the possibility of a boon for the Lakshadweep’s tourism thrust in the future due
The Marketing Niche strategy should be followed by the LTDCL because the domestic
sector has competitive advantages to offer, given its capability of providing unique products like
Bangaram Island Resort, water sports, etc. The concept of competitive advantage reinforces the
recommendation to follow this strategy for Lakshadweep tourism, as represented in figure 6.2
Compared to its regional competitors Kerala, Bangalore, and Goa, LTDCL has been
Competitive advantage will last over the long term due to the advantage of geographic location.
The differentiation strategy of tourism products will prolong the sustainable advantage for the
sustainable development of tourism, which will be discussed under the Skill strategic fit.
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FIGURE-6.2: Capability and Position Interaction in Lakshadweep Tourism
Capability-Development of Bangaram
Model, for uninhabited islands and
Package tour products with rich
biodiversity and water sports facilities at
all islands like Scuba diving, Snorkeling,
PADI course Competitive Advantage
Compared to Kerala, Goa,
Bangalore, and can attract
international Tourist from
Geographic Location in second Maldives also in long run.
largest eco region of Atolls,200-400kms
away from mainland &just 80 kms from
Maldives. Major domestic tourist destination
Kerala, Goa, and Bangalore without such
facilities in this region of India
O-S Strategy 4: Backward and forward linkages with other sectors – The
development of a market for local products with the people’s participation, the establishment of
linkages with cooperative societies and environment agencies. The XIth plan under scheme 4
provides for people’s participation in market development involving the sale of value-added
coconut and fisheries products to tourists. Total allocation proposed is Rs58.86 million, which is
inclusive of the Rs 10 million subsidy components. LTDCL will be legally competent to issue
shares to private individuals up to 49 percent, which will motivate natives, employees and
present lessees/tour operators. Shareholders, on the basis of the volume of their shareholdings,
Private cottages in the inhabited islands should also be promoted, and such cottages
should be operated upon the accreditation of the LTDCL, to ensure their compliance to the laws
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The cooperative societies, which can play an important role, can also hold shares. The
apex society’s Managing Director from the LCMF should be a member of the Board of LTDCL.
A cooperative society for organizing the youth so they could avail of loan schemes should also
be a useful mechanism for the development of local market and for regulating the marketing of
backward and forward linkages of LTDCL with other sectors. Market development for local
products will attract more tourists, thereby supporting LTDCL indirectly. Moreover, the local
people will get a high price for value added to local products, thereby enhancing the income of
individual households. This will also help provide jobs and develop the entrepreneurial skills of
local people, as well as expose them to modern ideas that will help integrate them with
mainstream society.
The two aforementioned strategic options found suitable for high-price, low-volume
tourism and the people’s participation will ensure sustainable development by integrating society
and other sectors of the economy of Lakshadweep. Therefore, LTDCL should be designed as per
the internal strategy to support the external strategy. It should have as vision the in response to
sensitive ecology and social fabric. Strategic option T-W is relevant, and organization and its
business should revolve around the vision to achieve the goal of the Lakshadweep
T-W Strategy 2: Promote the value of environment, biodiversity and sensitive social
fabric - There is a need to integrate the ecosystem for sustainable development due to the eco
fragile ecology and the sensitive social system. The distinct social culture and environmental
benefits will enhance and maintain the atheistic value of nature to attract nature lovers, discovery
and rest seekers from among the international and rich cosmopolitan tourists, to earn high value
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for tourism products, while maintaining the ecology for the sustainable development of tourism.
The Muslim culture of these islanders is distinct from the rest of the world because they continue
to practice many customs like those of the Hindu mainlanders, but they are very sensitive and
avoid mixing with outsiders. Therefore, modern facilities like a liquor bar; massage spa, etc. are
control the adverse impacts on the ecosystems and environment, especially those from tourism
and transport and, in general, from other sources because ecosystems have high value for the
LTDCL, being of the small islands. These values are shared by everyone in the organization and
by the natives. This strategic option seeks to achieve the overall objective for the sustainable
development of tourism in the Lakshadweep. It reflects the vision and mission of the LTDCL
“To Position the Lakshadweep as a unique tourist destination in the world tourism
international law in the region with the participation of the native people”.
In view of the above external strategies, organization and vision, all strategic options
related to the internal design of LTDCL like staffing, system of functioning, skill of staff and
leadership are discussed under the ‘S’ of the 7-Model for the alignment of its various fits to
Relevant strategic options to achieve objectives K-2 and K-3 are discussed hereunder.
inhabited and uninhabited islands for expansion and improving existing infrastructures - There is
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a 184-bed capacity for all types of existing developed tourist resorts, and these are not sufficient
to meet the present demand of tourists and distinct tour packages. Each island should have a total
of 50 to 100 bed capacities in the existing resorts as well as improved facilities, out of which at
least 30 to 50 bed capacities should be like the BIR model, catering to high-value tourists in each
island. However, bed capacity should consider the area and population of each island to maintain
the carrying capacity within the limit for sustainable development. Expansion will be financially
The projected income statement for the beginning of the year of business after
explained in the income statement. In the year 2011-2012, net profit is estimated at US$11.89
million, and net profit margin ratio is 28.7 percent. Return on assets is 11.4 percent. Payback
period will be less than 10 years, assuming the life of all assets like cottages, ships,
infrastructure, and the helicopter to be 30 years. As per analysis, the new strategy will be
financially viable in addition to reaping tangible and intangible economic benefits to attain a self-
Therefore, the XIth plan allocation should be utilized for infrastructure development to
promote tourism in the uninhabited islands (Bangaram, Thinkara, and Cheriam), and in the
inhabited islands (Kadmat, Minicoy, Kalpeni, Kavaratti, Agatti, Androth, Amini, Kiltan, Bitra
and Chetlat).
T-S Strategy 2: Mechanism to protect eco fragile ecology- Due to the scarcity of land,
LTDCL should adopt a solid waste management system with modern recycling technology due
to the scarcity of land. All strategies like competitive advantage and differentiation of products
depend on nature-based objects like the lagoon, rich biodiversity, the ecology of the area.
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Biodiversity and ecosystems are assets for the tourism sector in the Lakshadweep, while
degradation of the ecosystem will result in Lakshadweep’s devastation. Waste from sea transport
should also be checked and controlled, and corals should be fully protected from water sports
REPLACE, REUSE and RECYLE” should be followed. Therefore, solid waste management,
including transport-based garbage, should be collected and recycled using modern technology.
Apart from awareness and training programmes, there should be a provision imposing fines on
violators. The Department of Forest and Environment should also be associated in this
mechanism for an integrated approach which has an allocation of Rs1053.371 million in the XIth
Plan.
Rules of Behavior to preserve ecology: Infusing the vision of LTDCL in the culture of
the staff and the local people is necessary to preserve ecology. Therefore, LTDCL should ensure
the issuance of ecology protection rules in pursuance of laid down principles on this matter from
the administration of Lakshadweep and it should also ensure compliance to such rules as listed
herein.
• Set up specific environmental educational programmes for the entire staff to practice the
best methods in the preservation of ecology as per Chapters 3, 5 and 9 of the Global Code
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• Use the Internet and other communication systems to disseminate biodiversity
• Support sustainable fishing- fishing should be done using the eco-friendly pole and line
• Ensure and educate tourists not to touch the corals, not even with the lightest touch of the
hands during diving and snorkeling, to avoid damage to sensitive coral polyps.
• Don’t dump trash inthe beach or at sea; plastic bags and other debris can injure or kill
marine animals.
• Don’t throw any waste in sea or at land, and always ensure that such waste be delivered
• A film should be shown in ships, and passengers should be educated on the importance of
marine biodiversity. Rules for good behavior should be imparted to all visitors.
• Ships should not dispose of garbage near the lagoon area and coral reefs. All non-
O-S Strategy 2: Suggest to expand to inhabited islands and differentiate water sport-linked
packages. LTDCL should expand tourism to uninhabited islands, and water sports products
should be differentiated by pricing high in segmented markets because such tourism products are
not available, particularly in the western domestic region. Similarly, the O-S 1 strategic option
suggests expanding to more uninhabited islands, which should be differentiated from inhabited
islands because in the uninhabited islands, tourists gain more from the islands’ pristine and
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atheistic value compared to inhabited islands. A consolidation strategy should be followed to
support the differentiation strategy which will be improved via skills enhancement.
T-S Strategy 3: Consolidation Strategy for tour packages and Star Cruise
operations - As discussed in section 4.2 of chapter 4, two products, namely, the Coral Reef
Package (5-night) to Minicoy, Kavaratti and Kalpeni, and the weekend package should be
considered as awareness products. On the other hand, the other four package tours should be
improved through a differentiation strategy to get high value at low volume. The name of the
Marine Wealth Awareness Program to Kadmat should be changed to “Discover Marine Wealth
Package”. No ship-based packages should be offered to uninhabited islands including Star Cruise
Operators to protect their ecology and high atheistic value. Only air transport-based tourism
packages should be allowed in these islands. SPORTS earned 49 percent of the total revenue
from 1996 to 2002 from its package tours which explains the high returns on from tour packages.
Stopping the cruise ship operation of M/S Ocean Odyssey to uninhabited islands, namely,
namely Suheli, Valyakara, Cheriyam and Thinkara, which began in January 2007, has been
recommended. Cruise ship operations should be restricted to inhabited islands to promote the
sale of local value-added eco-friendly products, thereby promoting the people’s participation and
creating job opportunities. The latest computerized information system will be essential to the
Benchmarking for success is essential to assessing the position for continuous improvement to
ensure fulfilling the need of the market segment. In evaluating the performance of an
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data by management on their own organization’s performance and that of other organizations
and it is used to make comparisons in terms of performance. Benchmarking assumes that firms
are trying to catch up with the best and can create a copycat mindset in which firms are not
None of the tourist destinations is capable of offering such unique products in the
domestic tourism sector in the western region of India. Major tourist destinations in neighboring
Kerala, Goa, and Bangalore will provide opportunities for LTDCL. But Lakshadweep offers a
unique and different experience to tourists in the lap of nature where human activities have not
yet been taken up in the virgin island some 200 to 400 kilometers away from the mainland. The
sizes of these islands range from 0.35 to 2.00 square kilometers, with major constraints like lack
of supply of materials, energy, etc. Therefore, visits to such places provide a unique experience
that is priceless for sea discoverers and nature lovers. Three-star hotel equivalent facilities are
available in the Bangaram for which the tariff rates of the present operator (CGH), the highest in
The strategy of differentiation does not require benchmarking, but it will be useful to the
follow the Global Code Ethics launched by the World Tourism Organization to address the
environmental and social aspects of sustainability by obtaining Green Globe 21 branding under
the Benchmarking and the Certification program as mentioned previously under rules of
53
By Paul Joyce & Adrian Woods Book; Essential Strategic Management, First Edition Published in 1996. page-81
- 95 -
The National Tourism Policy-2002 also advised positioning tourism products through
Global Branding at the international level, to tap the rich potential of tourist destinations.
Adopting tourism practices as per the principles in chapter 9 of the Agenda-21 of the World
Tourism Organization for environment, social and economic sustainability will help obtain
certification from international agencies like Green Globe 21 for benchmarking, which will, in
turn, provide the opportunity to avail of the Global Environment Fund (GEF) for future
development. Such certification will promote the branding of unique products of the
Lakshadweep for expanding the market to high-end tourists. Skilled staff and professional
management are necessary to carry out the above functions. Strategic option O-W suggests
set-up of LTDCL will have corporate human resource practices. Recruitment, training reward
and performance systems will be established to motivate employees. It is difficult to improve the
staffing reward and pay system in the DOT due to uniform set-ups for all sectors of government.
A corporate body will have the flexibility to adjust the rewards system of its employees,
according to their performance. It can also then recruit professionals on the basis of their
competency and knowledge. However, top management from the General Manager upwards will
have to come from civil service cadres like in the other states/UTs on deputation, as per their
selection by the board of directors to bring new ideas and provide neutral leadership to the native
employees of LTDCL. The LTDCL will have operations and marketing, finance, administration,
transport, ecosystems functional heads at the headquarters level. An Assistant General Manager
will manage tourism in the island on an area basis, supported by assistant managers depending
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on the volume of work in a respective area. The details on the staffing pattern are given in the
organogram in Annex-11.
The staffing pattern is based on a functional and an area basis. The recruitment of staff
will be done at the level of Assistant Managers from among the native population. The
as well as a diploma in hotel management. The selected candidate should undergo a one-year
training program on tourism, finance, human resource and environment with ITDC and an
environment agency. However, at the entry level, the staff of construction and maintenance
works, finance, and administration should possess a degree in his/her respective field and will
work in that area till his/her promotion to AGM. The Assistant Manager is usually promoted to
Manager after four years, while the Manager will be eligible for promotion to Assistant General
Manager (AGM) after six years, depending on his/her performance and the availability of
vacancies. Similarly, the AGM will be promoted on completion of his sixth year as to Deputy
General Manger (DGM). The GM and MD will become civil service officers on deputation.
Details on the managerial staff are given in Annexure 11. However, each Manager and AGM
will be provided one computer-literate clerk and one peon, while the DGM will be given two
computer literate clerks and one peon. The GM will be assisted by two computer literate clerks,
one personal assistant and one driver. The MD will have two clerks, two personal assistants and
one driver.
Personnel for services like housekeeping, restaurants, etc. or those below the rank of
Assistant Manager will be hired on the basis of transparent criteria through open tendering, on
the condition that only native population will be employed for such. The contracting out of
services will provide opportunities for local people to participate in the process of development,
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and these will help them develop entrepreneurial skills related to the hotel management and
tourism sectors. The practice will also increase the efficiency in operation, will eliminate
problem of unionism. Such service providers will work under their respective Assistant Manager,
and their contracts should be renewed every year on the basis of performance. However, water
sports skilled instructors, numbering three per diving institute, will be regular employees of
LTDCL who will be trained for the purpose in water sports institutes. Per the law, all employees
would be from the native populace whose cultural values are distinct. By sharing these values
with rest of the organization, they will somehow transform it into a family. There is a scope to
develop a one family type work culture similar to that in South West Airlines.
The training of staff should be arranged with the central agency, ITDC, which is charged
with the continuous learning of the employees and provides training to the local people in
Lakshadweep for their participation and social development. Water sports instructors should be
provided training on skills enhancement with international institutes in their respective field. It is
necessary to impart training on the latest developments related to skills enhancement on the use
of marine resources in a sustainable manner. Higher pricing should also be instituted to increase
As already discussed, the differentiation of products like the BIR model resort within
Lakshadweep and all tourist islands and water sports products in the region could be maintained
by promoting marine wealth. Doing so would allow the LTDCL to maintain its competitive
advantage over other tourist destinations where such unique products are not available. The
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T-S Strategy 1: Differentiation strategy - A firm that decides to offer products which
are considered unique in the industry chooses the strategic option of differentiation. Products that
are considered unique are normally priced well above production costs. And their sales potential
to a number of studies, higher profitability may correlate with both smaller or greater production
differentiation of products, while core competencies should be embodied in core products, which
are components of the end products as shown in figure 6.3. This model was developed on the
Lying 450 kilometers from the mainland, the Bangaram Island Resort is the embodiment
of the core competence of tourism in the Lakshadweep; with accommodation facilities at par
with three-star hotels with distinct water sports based products. The Lakshadweep is located in
the world’s largest eco-region of atolls with live corals and rich biodiversity, which provide it
competitive advantage over other domestic tourist destinations like Kerala, Goa, and Bangalore.
The BIR like resort has no domestic competitors in India in this category. Maldives is its only
international competitor in this class, given that it has the same type of ecosystem. The Maldives
is on the verge of reaching full capacity utilization, and has reportedly registered some adverse
management and leadership can mobilize all resources through its staff for effective utilization.
Co-ordination of transport, accommodation and the issuance of entry permits are necessary.
54
Cardyn Y Woo and C. Cooper, “Strategies of effective Low Share Businesses” Strategic Management journal,
July-Sept 1981,Book- Reading in Strategic Management By Thompson, Strictland, Fulmer ,pp.-99.
55
By Paul Joyce & Adrian Woods; Book- Essentials Strategic Management First edition-1996, p.163.
- 99 -
Strategic option T-W 3 suggests a merger and acquisition strategy to achieve K-1 and K-2. This
Bangaram Beach Resorts on Tour packages to Kadmat, Kalpeni, Minicoy, and Kavaratti
Uninhabited Island with 3 star hotel with modern facilities and water sports, Sun, Sea, Lagoon
facilities and water sports, Beach, sun, & Beach,.
Lagoon, sand and biodiversity
Tourist resorts on inhabited and uninhabited islands, Bangaram, Minicoy, Kadmat, Kalpeni, and Kavaratti
with water sports facilities which will be expanded as expansion strategy.
Integrated
LTDCL
Diving Institute
Approach 3star-accommo Snorkeling Scuba Diving with latest water
dations uninhab.is sports equipment
body without the features of accountability and legality due to its defined mandate per section 20
of Society Registration Act-1860. The merger should cover all assets and staff without loss of
skills and experience in tourism. The merger strategy would improve the morale of the
employees with the overall reorganization sending the message of a change in leadership style.
All tourism and its transport related activities including the equity of the tourism
department should be taken over from the LDCL under the Acquisition strategy. The style of
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functioning of top management should be corporate rather than the existing pattern. The merger
of SPORTS and the acquisition of the transport ship/boats and equity from the LDCL will result
in the effective utilization of resources through improved coordination between tour packages,
entry permits, accommodations, local markets and transport facilities. The benefits of economies
Members of the Board of Directors will come from diverse backgrounds representing all
important stakeholders to facilitate the creation of a holistic view in policy making. The Board of
Directors, which will assist the Chairman, should include government officials, women, NGOs,
The 7-S Model in figure 6.4 shows that 6 other ‘S’ are supporting strategy, ‘S’ ,meant for
external strategy. Similarly each ‘S’ is responsive to the other related ‘S’ as shown by lines about
their each other’s relationship_for proper alignment of various fits of LTDCL_in order to ensure
high financial returns, economic benefits through the effective utilization of resources, and
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of 7-S evaluated the various strategic options to retain as external and internal strategy for
Considering all the above formulated strategies, it is clear that a strategy of “High Value
and Low Volume” is suitable for Lakshadweep. The distinct and unique products of tourism are
priced high by virtue of high atheistic value. Such products would attract the market segment of
tourists mentioned earlier. However, within these products, differentiation of inhabited and
uninhabited island resorts and the categorization of tour packages and star cruise operations also
suggest organizing internal business concerns accordingly. Therefore, high value and low
volume tourism should be promoted. Meanwhile, Star Cruise operations and two packages,
namely the Coral Reef and Weekend packages should be considered awareness packages to
attract backpackers/youth and students who can be future customers of the highly priced
products. Water sports can be availed of by all categories at the uniform price as applicable to
All materials are supplied to Lakshadweep from the mainland, so that in the island,
energy, water, and food cost higher than in the mainland. Apart from these constraints, the
distinct value of the products and their differentiation, as discussed above, water sports not
available in the domestic region. Distinct products and high atheistic value should be the main
determinants in pricing the various facilities and products in Lakshadweep. Uninhabited islands
like Bangaram should be priced highest, while inhabited islands like Kadmat should be priced on
the pattern of AIBR. Transport should be charged separately as per existing patterns, except for
helicopter service. Normally food cost is also included in the tariffs of rooms.
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CHAPTER 7
IMPLEMENTATION PLAN
7.1 IMPORTANCE
We have seen that problems of the tourism sector of Lakshadweep were analyzed using
the Problem Tree model, for which the objective analysis was done using the Objective Tree.
Strategic options to meet these identified objectives on the basis of objectives analysis of the
Lakshadweep tourism were found in the ‘SWOT Matrix’. The strategy implementation design
for the internal and external strategies evaluated and developed using the 7-S Model will ensure
sustainability, with all parts of the organization supporting each other in the implementation of
the business strategy of LTDCL. This will ensure the achievement of the targeted growth of the
tourism sector in a sustainable manner and the attainment of the overall objectives of the
Lakshadweep administration to improve the quality of life of the native people of Lakshadweep.
While these factors will help to minimize ‘contradictions’ in the existing system of government,
orientation versus a ‘people’ orientation, and the like”. 56- By Peters and Waterman, 1982,
It is necessary to organize the strategic theme and relate activities to the expected results
of the tourism sector by adopting proposed strategic actions to convince all the stakeholders
including various government agencies, the local people, politicians, NGOs, employees unions,
56
By Paul Joyce & Adrian Wood ; Book: Essential Strategic Management, First Edition-1996, pp.228 ,
- 103 -
women organizations, lessees of AIBR/BIR, and cruise ship operators of strategic action plan of
sustainable tourism.
may be requiring adjustments and changes in organizational leadership, culture and company
structure (McNamee 1992, 218).”57 The model shown in figure 7.1 found relevant and most
discussed below:
Lakshadweep; he is also Chairman of SPORTS and LDCL. The administrator has the biggest
influence on all aspects of operations: administrative, legislative, and the acceptance of strategic
DOT/SPORTS to Leadership of
LTDCL - Corporate Administrator/MD,
Governance to be LTDCL are strong
Established &positive.
Goal and
-
Strategy
-Sustainable
tourism.
-
Resource
Rs 7540 plan fund Culture - SPORTS,
-
Functional Operations Sensitive Society
Vested interest like
Lessees & Some
SPORTS Official
57
Essential Strategic Management p. 220 by Paul Joyce & Adrian Woods
- 104 -
The Administrator will also be the chairman of a newly constituted corporate body which
will be legally authorized to manage the tourism sector. It is likely for him to be more interested
in becoming Chairman of the LTDCL rather than SPORTS as the latter has no mandate to do
business due to its limited role, SPORTS being a registered society managed by DOT staff,
Culture – The social system of the indigenous Muslim of Lakshadweep can be described
as “sensitive”. They have a closely-knit social group that can organize immediately when they
see that their rights are infringed. Consequently, there are chances of their being misled by few
vested interests like lessees and SPORTS officials where new development initiatives are
concerned, even if the proposed reforms stand to benefit the employees of SPORTS as well as
The employees of SPORTS are from the native populace so that the culture of society
and the employees is similar. Again, the leadership role of the Administrator is very crucial in
tackling socio-culture issues involving the employees and organization. Support the
implementation plan should be managed through the mobilization of influential social and
New Structure - the LTDCL will merge SPORTS and acquire tourism transport related
functions from LDCL for the effective utilization, coordination and proper alignment of the
resorts’ capacity, the tour package schedules according to the carrying capacity of the islands.
The LTDCL will also help prevent the degradation of marine ecology. Structural changes should
be managed effectively during the implantation process. Culture and leadership issues are
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Resources - The Government of India has proposed a financial allocation of Rs7539.9
million under the XIth Plan for the tourism sector, excluding the salary of the DOT staff. .
Resources will not be a problem as seen in the Tenth Plan, where the budget allocation is double
the proposed allocation. A proportionate share for ecosystem preservation will also be allocated
from the Environment and Forest sector, which has an allocation of Rs1053.7 million under the
XIth Plan. Despite this, the total estimated investment and expenditure for tourism development
will be Rs6866.5 million which is given in ‘Logframe’ a tool can be used in the implementation
Functional operations – The management of the LTDCL will take charge of operations
which are currently being managed by SPORTS and the lessee in a fragmented manner, leading
to the ineffective utilization of resources. The new institutional arrangement will improve
financial performance, and LTDCL will be able to generate revenue for its future expansion and
operations as a business-like organization. The profit and overall economic benefits will also
rise, in general, through the development of the market for local products. Cruise ships will bring
a large number of tourists to the inhabited islands where local products will be on sale, thereby
increasing demand for these products. The functional operations of the tourism sector will bring
The DOT is set to adopt corporate governance, so that it is important for top management
to know what this means – the end relationship of the development of anchor projects as per the
proposed strategy is to attain the targeted growth of the tourism sector. Therefore, there should
be vertical logic in the means-end relationship to achieve the objectives identified in the
Objective Tree. Vertical logic tests the soundness of the result chain derived from the Objective
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Tree. It checks if the inputs are sufficient to carry out the activities, which have to be sufficient to
produce the output. The Design and Monitoring Framework (DMF)58 also called the ‘Logframe’
is a management tool for project implementation; it has been found suitable to the present
scenario. It should be a convenient tool for top management in the process of implementation,
which includes showing the plan and time schedule for the development of tourism in
Lakshadweep. The Design Summary for the XIth Five-Year plan (2007-2012) of LTDC is given
The proposed budget for the implementation of the XIth plan from 2007 to 2012 is Rs 7539.40
million. However, the actual allocation is set annually on the basis of the previous year’s
expenditure and development plan, as submitted to the government prior to the preparation of the
annual budget. Therefore, the yearly budget allocation should be made under the various
schemes mentioned in the plan. Activities mentioned in the Logframe for implementing
strategies are grouped as per plan schemes given in the XIth Plan for budget allocation from
2008 to 2012. Table 7.2 shows details of financing needed per year. Activities are grouped under
various schemes as shown in the Logframe. In addition to the financial allocation to the tourism
sector, a separate allocation of Rs1053.7 million for the preservation of the environment and
ecology of the islands is also available in the XIth plan. A strategy is suggested for a
coordinating mechanism for the effective utilization of such fund to preserve the ecology.
58
Project Performance Management System; Guideline for Preparing a Design and Monitoring Framework, March
2006, Asian Development Bank.
- 107 -
Table 7.1: Design and Monitoring Framework for the Sustainable Development of Tourism in Lakshadweep for XIth Plan
Design Summary Performance Indicator /Targets Monitoring Mechanism Assumption and Risk
GOAL –To make 1-Present poverty level is 27 percent;and almost equal 1-National economic
economy self-reliant percentage of labor force which will be reduced by providing survey report.
and reduce poverty jobs. for their income enhancement above the poverty line. 2-Annual Reports of the
to 10 percent by 2 – Economic growth of 9 percent per annum by March 31, Department of Planning
2015.Growth of 2009 and Statistics
Sustainable 3-Decrease in WPR for males from 38.6 percent to 15 3-Annual report of LTDCL
development of percent, and for females from 7.1 percent to zero.
tourism @ 7-9
percent per annum
PURPOSE: 1-Increase level of employment opportunities in_all 1-National economic Assumptions 1-
1-Sustainable sectors_through private participation in market development survey report. Department of
development of related to other sectors like coconut-based products and 2-Annual Reports of the Agriculture and LDCL
tourism. value-added fisheries products by enhancing the growth of Department of Planning with the Department of
the handicraft and fish process industries to 10 percent per and Statistics. Industries will take the
annum up to 2012. 3-Annual report of LTDCL necessary steps to
2--To increase tourism growth from 2-3 percent to 7-9 4 - World Tourism promote value-added
percent. Organization Report. activities for producing
3- 100 percent implementation of environment/ecology laws products as per need of
by January 30, 2011. tourists.
4- Obtain certification like Green Globe 21 as a result of Risk- Increase in the
compliance to social, economic and environment number of value-
sustainability standards by January 30, 2012. addition activities may
raise the level of
polluting substances
discharged and waste.
OUTPUTS: 1-Incorporation and establishment of the corporate body 1-Memorandum of Article Assumption-1,
1-Institutional LTDCL by December 30, 2008. (?) of registered corporate Administrator will take
strengthening -Recruitment of Assistant Manager (34) and training of body, LTDC. the initiative for the
through corporate present staffs (50) upon the merger of SPORTS by June 30, 2-Quarterly or annual establishment of
governance and 2009. performance report of LTDCL.
improvement of - Merger and acquisition of SPORTS and transport equity LTDC. Assumption2-
Human Resource from LDCL by March 30, 2009. 3- Annual Report of Administator will
Management. - Development of local market in all inhabited islands by Lakshadweep mobilize politicians,
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2-Increase in level of December 30, 2009. Administration.
social group by virtue of
effective utilization - Diverting operations of Star Cruise from uninhabited 4- Record of LTDC like
his position and
of resources and islands to inhabited island by December 30, 2008 Booking, influence.Works,
backward and 2-All resorts and resources to be put under the direct Environmental Impact
Assumption-3-
forward linkages. operational control of LTDCL by December 30, 2010 and Assessment report and
Administrator will
increase ROI to 20 percent by March 31, 2011. Transport records of
initiate the merger of
3-Expansion of 3- Development of tourism facilities at Thinkara and LTDC. SPORTS and the
tourism to Cheriam Islands by December 30, 2009, and 5 inhabited acquisition of transport
uninhabited and islands, namely,Amini, Androth, Chetlat, Bitra, and Kiltan. ship for tourism from
inhabited islands. Increase bed capacity of existing resorts from 184 to 600. LDCL.
4-Improvement of 4-Increase number of passenger tourists to Lakshadweep Assumption-4- Water,
air/sea transport. from 5000 per year to 10,000 by December 30, 2010 except energy, health services
5-Improvement of those taking the Star Cruise. will be provided by the
marketing - Deploy existing acquired ship/boats between existing pertinent government
promotion. resorts and the mainland by January 30, 2009, and purchase department.
one passenger ship and one helicopter by Risk-1- Prolonged rough
December 30, 2010. weather conditions
-Allow private airliners to offer interisland air service by during monsoon season
helicopter (with 20 seats) by December 30, 2009. may delay execution of
5- Launch publicity for distinct products and create a strategy.
network of the establishments in the region and Risk-2- Some influential
internationally (with big hotels) by December 30, 2009. lessees and SPORTS
Some 80 percent of the identified market segments should employees may
know about Lakshadweep tourism by December 2010. misguide local natives
about project
developments and the
formation of the LTDC.
SCHEMES/ACTIVITIES: INPUTS:
1. Human Resource 1.1-Rs2 million plus Rs
1.1-Registration of corporate body and establishment and takeover of assets from SPORTS/LDCL and 200 million in paid-up
miscellaneous expenses. by December 30, 2008. capital
1.2 Recruitment of new staff and completion of training for existing staff by June 30, 2009. 1.2 – Rs30 million.
1.3- Completion of training of fresh recruits (1 year at ITDC) by June 30, 2010. 1.3-Rs 40 million.
1.4- Giving of salaries, allowances/advances and other miscellaneous expenditures till 2012. 1.4-Rs 570million. .(Rs.
Civil Works and infrastructure 120 million per annum)
2.1- Construction of office building at Kavaratti by December 2009. Furnished by June 2010.
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2.2-Civil works related to construction of cottages/health clubs, etc. in existing resorts: Bangaram(20), Kavaratti 2.1-100 million.
(45), Kadmat (20), Minicoy (36), Agatti (40) and one health club per island, except in Bangaram by Dec. 30, 2009. 2.2-[(161 xRs 1500 per
2.3- Furnishing and SWM, water sports equipments in uninhabited islands by June 30, 2010. sq ft.x 500 sq ft.) + (5 x
2.4-Acquisition of Land at Thinkara and Cheriam by Dec. 30, 2009. Rs 2.5 million)] =Rs.
2.5-Construction and furnishing of 50 cottages per island, health clubs, water sports facilities, etc. by June 2011. 133.25 million+ Rs.
2.6- Construction of road helipad and other structures during the 2009-2012 period in the uninhabited islands. 15million as
2.7- Approval from the National Government for Expansion to the inhabited islands by June 2009. contingency fund. Total
2.8- Land acquisition in inhabited islands, i.e.,Amini, Kiltan, Chetlat, Bitra and Androth for resorts and diving =Rs 148.25 million.
institutes by March. 30, 2010. Androth will have a conference-cum- auditorium for corporate houses (events?). 2.3-Rs 80 million.
2.9-Civil works in inhabited island during the 2010-2011 period. (Amini-50, Androth-25, Kiltan -30, Chetlat-30, 2.4- Rs 60 million for 80
Bitra-20 double bed cottages , one health club and water sports facilities, including a deep compression chamber.) hectare land.
2.10- Furnishing and installation of SWM, etc. in inhabited islands by December 2012. 2.5- Rs 175 million.
2.11-Construction of road helipad and other structures in inhabited islands during the 2009-2012 period. 2.6-Rs 350million.
3. Water Sports Equipment 2.7-Rs. 1 million
3.1- Purchase of modern water sports equipment. 2.8-Rs150million.
4. Public and Private Sector Participation 2.9-Rs.335million+Rs.
4.1-Loan disbursement of Rs100,000 as 50 percent cost of shop for 80 people, out of which 50 percent will be 30million+Rs.15 million
women in the inhabited islands of Minicoy, Kavaratti, Kadmat and Agatti (20 each) by March 30, 2009. as
4.2. Disbursement of loans to 100 persons every year starting from a newly inhabited island, similar to sr.no.4.1 contingency=Rs380milli
till March 30, 2012 at 9 percent interest rate recoverable in monthly installment one year after loan disbursement. on.
5. Transport 2.10- Rs 100million.
5.1 - Purchase of one 20-seater helicopter, high-speed vessels and ships by Dec. 30, 2009-2010. 2.11-Rs 600 million.
6. Marketing Promotion 3.1- Rs. 50million.
6.1- Launching of an exclusive LTDCL website and a film for broadcasting in the Interational Geographic 4.1-Rs 8million.
Channel and national channels for advertisement by June 30, 2009. 4.2-Rs. 60million.
6.2 Establish a Cultural and Tourism Center at Lakshadweep, Bhawan Delhi by March 30, 2009 and also establish 5.1-Rs 3000milion plus
a network with all embassies in Delhi and five-star hotels in Delhi, Mumbai, Kerala, Goa and in European 6.1-Rs. 10million.
countries by October 30, 2010 for the promotion of distinct and unique marketing products. 6.2-Rs.50 million.
6.3 Award of best practices to a resort for best environment /biodiversity preservation practices by December 30, 6.3- Rs. 3 6million.
2009 and every year thereafter; launch of its advertisement in Website and TV channels as promotion marketing. Total=Rs 667.25million.
Note-1- Total operating and maintenance cost for each resort will be approximately Rs 750million per Plus Rs.750million
annum, All fund estimates are based on market trend and approximations, as per manual of public works operating &
department. maintenance cost for one
2- Energy, water supply, health services and other basic services will be provided by concerned department year. Hence, Gross Total
on payment of fixed commercial tariff. in XIth plan would be
Rs6866.25million.
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The establishment of a new entity called “LTDCL” with paid-up capital of Rs200 million
has been proposed. The amount of the paid-up capital and related expenses are shown under
HRD. The actual budget can be higher as seen in the Xth Plan. However, the Government of
India disburses funds on receipt of yearly demand. Therefore, Plan implementation should be as
per details given in Table 7.2. Salary and administrative expenses and total operating and
maintenance costs amount to Rs125 million and Rs750 million for one year, respectively. Salary
expense is included till 2012, but operating and maintenance costs are for one year only. Total
plan outlay for the remaining duration of the XIth Plan is estimated at Rs6866.5 million. Salary,
administrative and operating costs are not included in table 7.2 which showing investment plan
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CHAPTER 8
The strategic location of the islands in the Arabian Sea closer to Maldives attracts the
attention of everyone. Wonderful marine life including live corals makes it a destination of
choice for nature-loving tourists. Protecting marine life and preserving the environment pose
major challenges to the sustainable development of Lakshadweep. The tourism sector has been
identified as the engine of growth through the people’s participation in creating a self-reliant
economy in Lakshadweep.
The XIth plan reflects the tourism sector’s goal of providing employment to the native
people, but organizational weaknesses and the functioning system’s lacking accountability
feature, disallow the use of resources in an efficient and effective manner in the course of
developing tourism. The management of resorts, tour packages and their marketing has several
lacunas because the DOT suffers from a lack of professionalism and a weak corporate culture. It
has, in fact, handed over the management of tourism infrastructure on a nominal lease/rent to
SPORTS. SPORTS, in turn, has handed the resorts to different lessees in exchange for lease
payments/rent, thereby hampering the career prospects of the employees and also hindered the
forging of backward and forward linkages with other sectors that could have otherwise promoted
functions and environmental awareness among the locals, has been appreciable; but the business
strategy of SPORTS lacks legal teeth that would have allowed it to generate revenue
corresponding to the investment made in the tourism sector, for use in future expansion and to
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Problems and objectives analysis helped select the right combination of strategic options
to come up with doable strategies. The sustainable competitive advantage strategy is suitable for
the marketing of tourism products in the region and getting high value for them. The
differentiation strategy and maintaining a capability gap vis-à-vis major domestic tourist
destinations like Kerala, Goa, Bangalore and others are important to ensuring sustainable
tourism. The sustainable development of tourism requires that tourism practices conform with
the Global Code of Ethics as prescribed by the World Tourism Organization. Therefore, the
institutional design of the LTDCL of aligning various parts to make it an ‘organism type’ for
increase growth to 7-9 percent in this decade through the people's participation in the quest to
improve the quality of life of the native inhabitants of the Lakshadweep islands.
the proposed strategies relating to the concept of “High Value, Low Volume’ tourism. To this
end, the administration should first register the proposed organization LTDCL as a Public sector
entity. The administrator should then convene a meeting to discuss the proposed implementation
plan with all stakeholders in the Lakshadweep so as to gain their support for the action plan. An
interim committee should be set up under the Administrator for the timely implementation of the
plan. It is also recommended that the XIth Plan allocation should be budgeted as proposed in the
strategy and the strategy implemented within the XIth plan period (2008-20012) to ensure the
effective utilization of resources. The Government of India has allocated adequate resources
which should be utilized effectively and prudently through the implementation of the
recommended strategy within the prescribed time schedule for the sustainable development of
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BIBLIOGRAPHY
Dorairaj and R. Soundararajan. Status of Coral Reefs of Mahatma Gandhi Marine National
Park, Wandoor, Andamans.
Ramachandran, K.K. and Ajaykumar Varma. A Review of the Contribution of Centre for
Earth Science Studies (CESS) Towards Understanding the Totality of Environment of
Lakshadweep, India-2000.
Report of Registrar General of India. Census Giant Clams through a Community Reserve in
the Lakshadweep Island.
Sawkar, Kalidas, Ligia Noronha, Antonio Mascarenhas, O. S. Chauhan, and Simad Saeed.
Tourism and the Environment, Case Studies on Goa, India, and the Maldives-1998.
UNEP. Integrating Biodiversity into the Tourism Sector: A Guide to Best Practice.
World Travel & Tourism Council and International Hotel & Restaurant Association. The
Global Importance of Tourism.
Note: All internet sources are mentioned in footnote of relevant data and informations.
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ANNEXURES Page
ANNEX 1: THE LAND AND LAGOON AREA OF ISLANDS PROPOSED FOR 116
TOURISM DEVELOPMENT
LAKSHADWEEP 118
ANNEX 7: TARIFFS FOR AIBR AND BIR, AND COST OF PACKAGE TOURS 124
ANNEX 12: ESTIMATED INCOME STATEMENT OF LDCL FOR YEAR 2011-12 130
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ANNEX 1
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ANNEX 2: POPULATION OF THE LAKSHADWEEP ISLANDS
Provisional Data
Population Sheet
Area*(in Population Population Total Growth Density Sex Literacy
U. T. /C. D. Sq. Km. of 0-6 age Literates rate (Per Ratio rate**
Block group 19991- Sq.
2001 km)
Persons Male Females Persons Male Females Persons Male Females
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Lakshadweep 32. 00** 60595 31118 29477 8860 4488 4372 45281 24806 20475 17. 19 1894 947 87. 52
Chetlat 1. 14 2553 1341 1212 414 216 198 1837 1011 826 12. 17 2239 904 85. 88
Kiltan 1. 63 3664 1847 1817 655 344 311 2518 1337 1181 19. 54 2248 984 83. 68
Kadmat 3. 12 5319 2685 2634 848 411 437 4042 2143 1899 33. 48 1705 981 90. 4
Amini 2. 59 7340 3727 3613 1122 599 523 5239 2892 2347 13. 85 2834 969 84. 26
Agatti 3. 84 7072 3688 3384 1230 614 616 5170 2898 2272 23. 4 1842 918 88. 5
Kavaratti 4. 22 10113 5579 4534 1175 614 561 7889 4645 3244 16. 55 2396 813 88. 29
Androth 4. 84 10720 5356 5364 1731 860 871 7617 4162 3455 17. 52 2215 1001 84. 74
Kalpeni 2. 79 4319 2279 2040 556 259 297 3188 1863 1325 5. 75 1548 895 84. 72
Minicoy 4. 39 9495 4616 4879 1129 571 558 7781 3855 3926 14. 12 2163 1057 93. 01
Bitra 0. 1 45. 61
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ANNEX 3
LAKSHADWEEP
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ANNEX 4
(In millions)
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ANNEX-5 Geographical features, attractions and facilities of Tourist Destinations of
Lakshadweep
1-Agatti
It is 459 km away from Kochi and 57 km away from the headquarters island of
Kavaratti. On the horizon northwards can be seen the Bangaram, Thinnakara, Parali and
Kalpitty islands. These islands are within a 20-km radius of each other, and tourists are
allowed to visit all the islands in the group.
Tourists can avail of snorkeling, kayaking and canoeing facilities through which
one can appreciate the wonderful marine life.
Kalpeni is situated north east of Kavaratti, which is the second closest island to
the mainland after Androth Island. Kalpeni is more known for its three satellite isles,
namely, Tilakkam, Pitti, and Cheriyam. Kalpeni is 2.8 km in length and 1.2 km in width.
To its north is Cheriyam Island, while southwest are Tilakkam and Pitti. Kalpeni has one
of the largest lagoons in the Lakshadweep archipelago. Cheriyam Island is an important
attraction for tourists visiting Kalpeni. Visiting Kalpeni during low tide means being able
to walk all the way to Cheriyam Island over coral debris.
Tourists can visit the unexplored Moinnuddeen Mosque along the southernmost
shore of Kalpeni. The architecture is Kerala style, its roof covered with old Mangalore
tiles. There is a local handicraft store behind the Koomel resort which sells various wood
work items. Lakshadweep tourism organizes shows featuring traditional Parichakkali and
Kolkali dances. Kalpeni can be reached by taking Lakshadweep Tourism's Coral Reef
Package.
The island is 8 km long, 550 meters wide at its broadest point, and covers an area
of around 3.20 sq km. The warm and clear water lagoons are perfect for swimming and
scuba diving. whereas the silvery beaches are ideal for spending lazy and carefree hours
under swaying palms. The shallow lagoons on the western side of the island are dotted
with the most beautiful coral reefs in the archipelago. Without a doubt, the shores of
Kadmat are one of the most irresistible in the entire Asia.
The diving school on the island is one of the best and most famous. It is the first
and only certified or World Underwater Federation diving school in India. Scuba diving
offers a view of the awesome spread of coral reefs on the sea bed. The Kadmat Resort
also provides facilities for many water sports facilities like kayaking, and snorkeling. It
59
Source- http://www.indialine.com/travel/lakshadweep/kalpeni/
60
Lakshadweep Tourism web page of Indialine; http://www.indialine.com/travel/lakshadweep/kadamat/
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organizes excursions to nearby islands in a glass-bottomed boat, which allows one to see
the colorful marine life in Lakshadweep islands.
The resort also offers such amenities as a cloak room, currency exchange, and a
doctor on call, laundry service and a front desk. It also organizes cultural performances
by the locals. The multi-cuisine restaurant of Kadmat resort is truly a delight for seafood
lovers. The restaurant also serves Continental and Chinese cuisine, apart from famous
Kerala dishes. Kadmat can be reached from Agatti by taking a cruise. It can also be
reached by joining the Lakshadweep Tourism Department’s Marine Wealth and Scuba
Diving packages.
The most important attraction in Minicoy island has been the same for over a
century. Built in 1885 by the British, the magnificent lighthouse has become a symbol of
pride for Minicoy. It is one of the oldest surviving structures in the entire Lakshadweep.
From the highest point of the lighthouse, one can enjoy the mesmerizing view of an
unending sea and the lush green Minicoy islands.
One of the hobbies of the people here is wood craft which they paint in the most
vibrant colors. Snorkeling is unbelievably refreshing and rewarding in the long and
shallow lagoons. The Lakshadweep tourism office also organizes the presentation of
traditional Minicoy Bandiya and Lava dances. Minicoy can be visited as part of
Lakshadweep Tourism's Swaying Palms and Coral Reef package.
In the lagoons around Kavaratti, you can come face to face with starfish,
anemones, sea cucumbers and innumerable fishes of different varieties and colors.
Kavaratti, the centre of Lakshadweep islands, covers an area slightly over 4 square
kilometers. The Ujra Mosque is one of the most important attractions in Kavaratti Island.
Built by the Sheikh Mohammad Kasim in 17th century A. D., its main attractions are the
intricately carved pillars and ceilings.
A few blocks away is an aquarium which is also a museum. The main attraction
of the aquarium is a small shark. Watching a shark from up close is truly an amazing
experience, especially when knows it can do no harm. Inside the large glass
61
Lakhadweep tourism web page of Indialine; http://www.indialine.com/travel/lakshadweep/minicoy/
62
Lakshadweep Tourism Web Page of Indialine;http://www.indialine.com/travel/lakshadweep/kavaratti/
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compartment, the shark shares space with sea cucumbers, octopuses, schools of fishes
and few anemones. The museum section holds different types of shells, splendid-looking
corals and innumerable fishes preserved in glass jars. Right next to the museum is the
Dolphin Dive Center.
The center offers different PADI programmes for amateur and professional
divers. PADI (Professional Association of Diving Instructors) is the world's largest
leisure diving organization. A glass-bottomed boat can be hired to view the marine life in
Kavaratti lagoons. Kavaratti is part of the itinerary of two packages offered by
Lakshadweep Tourism, namely the Coral Reef and Taratashi packages.
The Pitti island lies north, west of Kavaratti and 18 kms away. It accommodates a
large concentration of birds, which is beautiful. The tourists can be taken to the island by
boat for a distant view of these birds.
The Bangaram resort offers Ayurvedic massage in separate facilities for men and
women. The resort serves both local and international cuisines and has a well-stocked
bar. Dance theatre, indoor games, library, internet, television, and landline as well as
mobile communications are available.
63
Lakshadweep Web Page of India line; http://www.indialine.com/travel/lakshadweep/bangaram/
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ANNEX 6
Sandy - - (67.4) -
substrate
Reef patch - - (13.4) -
Deep - - (98.5) -
Uncertain - - (143.5) -
Total 460.2 94.3 816.1 959.3
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ANNEX 764
3. Ship-Based Tour Packages: All Packages Inclusive of: Transport cost, Tour cost, Day
sightseeing tours, Boarding and lodging. Additional Charges: 5% service charge, 5% service tax
Ships Tour Package On board Tariffs in Rupees Room Tariff per night
Single
Delux First Touist Single Double Non Double
Coral Reef Packages Ac Class Class A.C. AC A.C. Non A.C.
Marine Wealth
Awareness Program 15,000 14,260 9040 2,500 4,000 2,000 3,000
64
Travel Keral Web Page_Lakshadweep; http://www.travelskerala.com/lakshadweep_tour_packages.htm
- 124 -
ANNEX-7A
CGH GROUP OF HOTELS - Valid from 1st Oct 2007 to April 2008
High Season 01 Oct - 20 Dec & 11 Jan - 31 Jan &01 Mar - 30 Apr,
Peak Season 01 Feb - 28 Feb & 21 Dec - 10 Jan
EXTRA TAX in
Rates in USD HIGH SEASON PEAK SEASON
PAX percent
SGL DBL SGL DBL
Casino Hotel (CP)
Standard Room 110 120 110 120 50 15
Brunton Boatyard (CP)
Standard Seafacing 345 345 375 375 50 15
Deluxe Seafacing 480 480 550 550 50 15
Coconut Lagoon (CP)
Bungalow 235 235 270 270 50 15
Mansion 295 295 330 330 50 15
Private Pool Villa 470 470 550 550 50 15
Spice Village (CP)
Standard Villa 235 235 270 270 50 15
Deluxe Villa 365 365 395 395 50 15
Marari Beach (CP) Long Stay Offer (Subject To Minimum 07 Nights
Garden Villa 230 230 255 255 50 15
Garden Pool Villa 400 400 470 470 50 15
Deluxe Pool Villa 470 470 530 530 50 15
Marari Beach (CP)
Garden Villa 270 270 295 295 50 15
Garden Pool Villa 470 470 550 550 50 15
Deluxe Pool Villa 550 550 620 620 50 15
Spice Coast Cruises (AP)
01 Bed Room (Sleeps 02) Air
350 350 460 460 - 4. 9
Conditioned
02 Bed Room (Sleeps 04) Air
570 570 650 650 - 4. 9
Conditioned
Bangaram Island (AP) (Subject To Minimum 10 Nights)
Standard Hut 320 320 390 390 150 -
Deluxe (Sleeps 4) 580 580 640 640 150 -
Bangaram Island (AP)
Standard Hut 355 355 430 430 150 -
Deluxe (Sleeps 4) 645 645 715 7150 150 -
SwaSwara,Gokarna (CP)
Garden Villa 300 300 375 375 50 12
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ANNEX 8 : ORGANIZATIONAL CHART OF SPORTS.
CHAIRMAN
General Manager
DY. General
Manager
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ANNEX 9
3 Opening of More
Islands for Intl
Tourism
Lease Rent 5800 7 5600 13 200 5
Scheme Total 5800 7 5600 13 200 5
4 Equity Participation
with LDCL
Grant/Share Capital 6000 60000 0 0 0 0
Scheme Total 6000 60000 0 0 0 0
5 Tourist Ship
Feas’lity Study T Ship 400 1 300 0 300 1
Aquis’n of SpeedBoat 30225 3 32500 0 15000 1
Scheme Total 30625 4 32800 0 15300 2
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ANNEX 10
- 128 -
ANNEX 11
- 129 -
ANNEX-12 INCOME STATEMENT OF LTDCL FOR 2011-12
Total no. of cottages(double bed) on inhabited islands=525, uninhabited islands=150
Water sports like scuba diving charges as per Annex 7=US$ 65 per day
Cottage Tariffs for uninhabited island(BIR) per day for double bed Average=US $470
Cottage Tariffs for inhabited island(AIBR) per day for double bed Average=US $240
Fair for Ship from mainland to Lakshadweep Rs 3000 to Rs 7000(To and Fro), Average=Rs.5000
No of ships 2 passenger-cum-cargo of 250 seats and 100tons each, and 150 seat high speed z
(Assuming that budget of cruise ship utilized for above 2 ships in March 2008) vessels(3)
Total seats will be 500+450=950 seats
Assumption : Operating and Maintenance cost for Resorts/cottages=50 percent of gross revenue
Operating and Maintenance cost for ships =25 percent of gross revenue
Occupancy of cottages =60 percent Helicopter occupancy= 50 percent
Occupancy of seats in ship =50 percent Helicopter Operating and Maintenance=20 percent of gross revenue
Total no days in season for traveling=250 days Water sports O & M=20 percent
Freight Tariff =Rs 3000 per ton Capacity utilization 50% of gross revenue
Total Investment and operating and maintenance in the beginning year i.e.2011-12
Life of all assets =30 years Rs 6886.5 million=US $160.16 million
Total Assets=Rs 4523 million= US $ 105.19 million Salvage Value of ships/hel 10 percent
Total no of average to and fro trips by a ship =83 Rs 300million=US $ 6.98 million
Total no tourists traveling by ships=39425 1US$=Rs. 43 as on23/5/2008
INCOME STATEMENT OF LTDCL FOR 2011-12 IN US DOLLAR
Year 2009-10 2010-11 2011-12
A-Gross Revenue In million
Revenue from uninhabited resorts 10575000 11209500 11.88
Revenue from inhabited resorts 18900000 20034000 21.24
Revenue from Ships from tourists 4584302.3 4859360.5 5.15
Revenue from Ships from 200 tons Cargo 579069.77 613813.95 0.65
Revenue from Helicopter
300daysx 4 interisland trips @$125 1500000 1590000 1.69
Revenue from water sports,assuming
25 percent travelers will avail facilities 640656.25 679095.63 0.72
Total 36779028 38985770 41.32
B-Salary and Administrative Expenses 2441860.5 2588372.1 2.74
C-Operating and Maintenance Cost
Inhabited and uninhabited resorts cost 14737500 15621750 16.56
Ships 1146075.6 1214840.1 1.29
Helicopter 300000 318000 0.34
Water sports 128131.25 135819.13 0.14
Total 16311707 17290409 18.33
Gross Total( B+C) 18753567 19878781 21.07
Gross Profit A-(B+C) 18025461 19106989 20.25
In million 18.03 19.11 20.25
Depreciation 3.27 3.27 3.27
Profit before tax 14.75 15.83 16.98
30 % tax 4.43 4.75 5.09
Net Profit 10.33 11.08 11.89
Payback period, if growth is @7 percent will be less than 10 years
NET PROFIT MARGIN IN 2011-12=Net income/Gross RevenueX100= 28.78
NOTE: Inflation is assumed at 6 percent in deriving calculation for 2011-2012, and straight-line method of
deprecation is used. ROA= Net Income/Total Assets= 0.1130336 ROA=11.4 percent
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