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1. Overview - Travel & Tourism Market in India .............................................. 1

1.1 Overview - Travel & Tourism Market in India..................................... 2

1.2 Development - Sustainable Tourism .................................................. 5
1.3 Eco Tourism........................................................................................ 6

2 Rural Tourism – An Introduction.................................................................. 9

2.1 Rural Tourism- An Introduction.......................................................... 9

2.2. Overall Impact of Rural Tourism ..................................................... 10
2.2.1. Economic Impact ............................................................... 10
2.2.2. Socio-cultural Impact ......................................................... 10
2.3. Challenges For Farmers in Rural Tourism ......................................... 11
2.4. Case Study of Rural Tourism Operations: ........................................ 12
Domestic and International

3 Current Drivers and Trends Policies & Regulations ................................ 17

4. The Rural Tourism business Perspective ................................................. 21

4.1. Constraints and Challenges.............................................................. 22

4.2. Global and regional overview of Public/Private .............................. 24
investment in Rural Tourism
4.3. Sources of Finance available ............................................................ 26
4.4. Planning and Marketing of Rural Tourism........................................ 32

5. FICCI-YES BANK 10 point road map ....................................................... 35

AATDO – Agri Tourism Development Organization
CPM – Capacity Management Plan
FDI – Foreign Direct Investment
FICCI – Federation of Indian Chamber of Commerce and Industry
GDP – Gross Domestic Product
IITTM – Indian Institute of Tourism and Travel Management
IT – Information Technology
ITDC – Indian Tourism Development Corporation
KECC – Kanchanaburi Ecotourism Cooperative
LDC – Least Development Countries
NCHMCT – National Council of Hotel Management and Catering Technology
NGO – Non Governmental Organization
PPP – Public Private Partnership
RFD – Royal Forest Department
TIES – The International Ecotourism Society
TSA – Tourism Satellite Accounting
UNCTAD – United National Conference on Trade and Development
UNDP – United Nations Development Program
UNESCO – United Nations Educational Scientific and Cultural Organization
UN-WTO – United National World Tourism Organization
UT – Union Territory
WTTC – World Travel and Tourism Council

Figures
Figure 1 – Tourism Industry Key Benefits
Figure 2 – Boom Pillars of Tourism Industry
Figure 3 – Sustainable Aspects of Tourism
Figure 4 – Facets of Tourism
Figure 5 – Rural Tourism Demand
Figure 6 – PPP Model in Tourism Development
Tables
Box 1 – Key Statistics of India
Box 2 – Tourism Estimates in India
Box 3 – Key Criteria for Sustainable Growth in Tourism
Box 4 – Sustainable Tourism
Box 5 – Global Perspective A case of Rural Tourism in Thailand
Box 6 – Adventure Tourism Activities
Box 7 – Promotion of Paragliding in Portugal A case for Rural Adventure
Tourism
Box 8 – Heritage & Culture Tourism Activites
Box 9 – Sustainable Rural Development in Argentina A case for Rural Heritage
Tourism
Box 10 – Kumbalangi Integrated Tourism Village A case for Domestic Rural
Tourism
Box 11 – Measure Taken by Agri Tourism Development Organization
Box 12 – Scheme for Capacity Building for Service Providers
Box 13 – Product/Infrastructure Development Scheme for Destinations and
Circuits
Box 14 – Rural Tourism Scheme
Box 15 – Options for Public Private Participation
Box 16 – Key Objective/Concerns of Stakeholder in PPP Projects
Box 17 – Large Revenue Generating Projects Assistance Scheme
Box 18 – Market Development Assistance for Promotion of Domestic Tourism
Box 19 – Key Challenges

Annexure I Tourism Typology & Definitions

Annexure II
Graph 1 – Foreign Tourist Arrivals by Port 2008
Graph 2 – Foreign Tourist Arrivals by Transport 2008
Graph 3 – Share of India in Global Tourist Arrivals 2008
Graph 4 – Share of India in Global Tourism Receipts 2008
 Overview - Travel &
Tourism Market in India
1.1 Overview - Travel & Tourism
Market in India
Figure 1. The Travel & Tourism industry in India
is based on core nationalistic ideals
Regional
Development and standards like Swaagat or
welcome, Sahyog or cooperation,
Soochanaa or information,
Government
Earnings Sanrachanaa or infrastructure,
Tourism Suvidha or facilitation, Safaai or
Industry cleanliness and Surakshaa or
Employment security.
benefits
Based on these core themes, the
environment country has taken great strides
protection
forward in Travel & Tourism sector.
According to the latest Tourism
Satellite Accounting (TSA) research,
released by the World Travel
and Tourism Council (WTTC) and its strategic partner Oxford Economics in
March 2009, “The demand for travel and tourism in India is expected to grow
by 8.2 per cent between 2010 and 2019 and will place India at the third
position in the world.”

Box 1
Key Statistics - India
According to the latest Tourism Satellite Accounting (TSA) research, released by the World Travel
and Tourism Council (WTTC) and its strategic partner Oxford Economics in March 2009

® The demand for travel and tourism in India is expected to grow by 8.2 per cent
between 2010 and 2019 and will place India at the third position in the world.

® India's travel and tourism sector is expected to be the second largest

employer in the world, employing 40,037,000 by 2019.

® Capital investment in India's travel and tourism sector is expected to grow at

8.8 per cent between 2010 and 2019.

® The report forecasts India to get capital investment worth US$ 94.5 billion in
the travel and tourism sector in 2019.

® India is projected to become the fifth fastest growing business travel

destination from 2010-2019 with an estimated real growth rate of 7.6 per cent.

Developing country destinations accounted for 40.3% of the tourism market in

2005, and the number of travellers to least developed countries (LDCs) tripled
between 1990 and 2005. - UNCTAD
2
India, being the seventh-largest country in the world, with a total land area of
3,287,263 square kilometres offers a great diversity to any visiting tourists–domestic
and foreign. The Northern Himalayas,
Gangetic plains, Central highlands, BOX 2
Coastlines, Deserts, Islands, Wetlands
ESTIMATES TOURISM IN INDIA
and Forests, the count actually covers
 Every 1 million additional visitors could
every aspect of tourism conceivable. translate into Rs. 43 billion of revenue
generation for the industry.
According to the Travel & Tourism
 Every additional investment of Rs. 1
Competitiveness Report 2009 brought million has the potential to generate
out by the World Economic Forum, the 47 jobs and every direct job created
leads to creation of 11 indirect jobs
contribution of travel and tourism to making it 517 jobs
gross domestic product (GDP) is
expected to be at 6.0 per cent (US$
67.3 billion) in 2009 rising to US$ 187.3 billion by 2019. The report also
states that real GDP growth for travel and tourism economy is expected to be
0.2 per cent in 2009 and to an average 7.7 per cent per annum over the
coming 10 years. It is currently growing at around 30% per annum. Medical
tourist arrivals are expected to reach one million soon.

Graph 1

Government Spending on Tourism Sector

50

40
Billion Rupees

30

20

10

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Year
Source:- WTTC Report

Further the focus of government to support the sector is evident from its move to
declare hotel and tourism industry as a focus sector with provision for 100%
foreign direct investment (FDI) through automatic route. It is estimated that the
Travel & Tourism sector is expecting a major thrust with estimate 40 international
hotel brands expected to make an entry into the country by 2011. The boom can
be attributed to the collaborative impact of optimism in all three segment of
Infrastructure, Socio Economic scenario and the dynamics of the sector (fig 2)

3
 Figure 2
Boom Pillars

Infrastructure Socio Economic Sector Dynamics

 Better connectivity  Acceptance in the
 Highways and Airways society
 Domestic Airlines  Adaptability
 Dense Railway  Stable political and
network economic scenario
 IT  Sustained GDP
 Capacity building  Growth in other
sectors
 Encouraging FDI
 Surge in foreign tourists
 Huge domestic tourist
market
 Demand for quality
service
 Technology penetration

In order to sustain growth and surpass the broader expectations some of the
key criteria are:
BOX 3

Diversification of Tourism: New Models for development:

 Development of 'Alternate Tourism' on
the lines of ecotourism
 Exploring new areas and promotion of 
newer tourist destinations for tourism
expansion
 Capitalise on potential for generating
revenue from the already existing
tourist base - greater spending per
tourist
 New models driven by innovation and
technology - global best practices.
Development of comprehensive
tourism destinations and circuits
 Planning to facilitate the necessary
funding, enabling sustainable growth -
coordinated marketing effort,
international agreements
Suitable absorption of expansion,
development of necessary

Government facilitation, not ownership: Theme based tourism products:

 Government recognition of the huge 
investment that cannot be met entirely
through public funds
 Need for private sector efficiencies for
development of this sector
 Government role as a facilitator
without investing directly
 Support to communities in making
their efforts commercially viable
Innovation for diversification of
tourism offerings
 Development of new themes and
experimenting with new ways of
packaging offerings
 Themes could be designed around a
specific resource or developed to be
attractive to a specific new target
segment

Public Private Partnership an effective  Introduce social equity and community

and innovative solution in this scenario participation

4
1.2. Development – Sustainable Tourism

Box 4 Figure 3

Sustainable
Tourism:
“Tourism and
associated
infrastructure
both now and
in the future,
operate within
the natural
capacities for
the
regeneration
and future
productivity of
natural
resources;
recognize the
contribution
that the people
and
communities,
customs and
lifestyles,
make to the
tourism
experience;
accept that
these people
have an
equitable
share in the
economic
benefits of
tourism; are
guided by the
wishes of local
people and
communities in
the host areas”
 Sustainability Aspects of Tourism
Maintenance of
economic gains
and passage of
same to local
community

Economic
Sustainability

S us
Maintenance of

C
Maintenance of distinctive

c o o gi c al

t an aib i t y
u t u ra
Eco
local geographical cultural traits of
features and Tourism the community

flora & fauna

Social
Sustainability

Maintenance of
social harmony
and customs
fabric

The concepts of sustainable tourism and

ecotourism though complementary to each other
should not be confused as being the same.
Sustainability implies that enterprises, as well as the
communities in which they operate, have something
to gain from tourism. Sustainable ecotourism should
ensure that neither the natural environment nor the
socio-cultural fabric of the host communities be
impaired by the arrival of tourists;

Longevity and
preservation of
community has
therefore become
an essential
element of
sustainable
tourism. The
holistic and
inclusive growth
strategy would
encompass actions
for continued and
progressive well
being of host
population. Without
the participation of
local community
and preservation,
tourism
development can
not be called
sustainable. Hence
the participation of
local/host
community
becomes the
fulcrum of all
development
initiatives.

As the tourism
evolves
destination-based
communities
have become
central to a
holistic

5
concept of Sustainability, with focus on integrating environmental,
economic, political, cultural and social considerations.

The concept of developing tourism sustainably for the community is not

without its problems, however. While taking the sustainability approach
following points are important to be considered:-

1. Policy interventions, proper planning and management of the

destination and appropriate essential response to the local problems.

2. There is need to fine balancing between growth and sustainability of

tourism and this should be managed sensitively

3. Thinking and planning should be oriented around long term

vision and objectives.

4. The focus should not be just environmental, but are also economic,
social, cultural, political and managerial efficiencies.

5. The principle of equity and fairness should be the emphasis point

1.3. Eco Tourism

International Ecotourism Society (TIES) defines ecotourism as
'responsible travel to natural areas that conserves the environment and
improves the well being of local people.'

Ecotourism while opening up a whole array of unexplored tourist destinations is of huge

importance as its basic foundation lies in community welfare, economic growth

Figure 4

Rural Tourism Adventure tourism

Rural cuisine, Adventure sports,
culture bird watching,
fishing

Ethnic Tourism Haats, Nature Tourism wildlife,

local craft arts, Fairs & nature landscape,
ECO TOURISM botanical excursions
Melas

Religious Tourism
pilgrimage centres Farm Tourism
Religious festivals Agrarian lifestyle

6
and social equity. Through extensive focus on community participation not only
decision making but also in equity, alternate tourism makes perhaps one of the
strongest cases for sustainable development.

Characteristics of Ecotourism

• Based on preservation of culture, heritage and traditions

• Experience oriented
• In sparsely populated locations
• In predominately natural environment
• With a focus on outdoor activities
• Meshing with seasonality and local events
• Through small establishments with part-time involvement of the local community

7
Rural Tourism –
An Introduction
2. Rural Tourism – An Introduction
Rural areas have traditionally been associated with specific rural functions
agriculture, sparsely populated areas, and geographically dispersed settlement
patterns. However new approaches in social theory have brought about new
avenues for the development of rural areas. Rural tourism is one such opportunity
for the rural community to move beyond their traditional profession .

In its simplest definition rural tourism includes all tourism activity that takes
place in the countryside. It is a complex multi-faceted activity which includes
farm-based holidays but also comprises special-interest nature holidays and
ecotourism – walking, climbing and riding, adventure, sport and health tourism,
education travel, cultural and heritage tourism, and religious tourism.

The market for rural holidays is growing at the same time as the future of many rural
regions remains uncertain, due to changes in agricultural practice or the increasing
attractiveness of urban living standards. Rural tourism is an appropriate tool to revitalise
the declining rural areas and to ensure their sustainable future by job retention or even job
creation, service retention, farm support, broadened cultural provision, landscape and
nature conservation or the maintenance of rural arts and crafts as tourist attractions. Rural
tourism often provides an incentive for infrastructural development, which then contributes
to the growth of other economic activities in rural areas.

Figure 5
Rural Tourism Demand

STATE AND
NATIONAL
PARKS

SMALL TOWN OUTDOOR

ATMOSPHERE RECREATION

RURAL
TOURISM
FESTIVALS &
SCENERY
EVENTS

ENVIRONMENTAL AGRICULTURAL
WONDERS TOURISM

9
Personal Travel & Tourism Spending
5-8%
1800 of this
1600 spend

billion Rupees
1400 ing in
1200 rural
1000
destin
800
ation
600
400 would
200 result
0 in
2000 2001 2002 contri
2003 2004 2005 bution
2006 2007 2008 of 80
2009
Bn to
Year 120
Source WTTC Bn
rupee
s to
rural
econo
my,
with
out
any
fiscal
burde
n on
gover
nment
.

2.2 Overall Impact of

Rural Tourism
Interest in rural tourism as a
development strategy has grown
in the last few years, partly in
response to the changes in
agricultural and rural policies and
partly in response to changes in
thinking and practices in the
global tourism industry towards
sustainable ventures. The influx
of tourists to the rural areas has
both a positive and a negative
impact on the rural ecosystem.

2.1.1 Economic Impact

The economic benefits accruing to

an area through a rural tourism
project include,

• Direct - Impact of
 tourism spending on
incomes and job
opportunities at
businesses where
tourists spend their
money

• Indirect -
Impact
resulting from
successive
rounds of local
business
transactions
that result from
tourism
spending

• Induced - Impact of
the infrastructure
created to support the
rural tourism project
attracting businesses
from other sectors

The only negative economic

impact of a rural tourism project
would be that moving traditional
farmers away from agriculture into
tourism activity which may not be
sustainable. Therefore to
overcome this, the project should
be planned a way that it is
sustainable and the rural
community can reap long-term
benefits.

2.1.2 Socio-cultural Impact

Alternate tourism models such

as Rural Tourism should be
planned is a sustainable way
ensuring the following are not
impacted,

• Pressure on the
environment – Tourist
destinations bring huge
number of tourists thus
 putting a pressure on
the rural environment
resources

10
 • Social and Cultural Pressure – Influence of tourists on the traditional
culture of the rural community

Since the income from tourism is much higher than what rural people can earn
from agriculture, tourism has been accepted willingly in many rural areas.
However, a poorly planned rural tourism project may lead to an influx of foreign
visitors with different values, thus disrupting rural culture. A decline in participation
in rural traditional and cultural practices follows. Traditional houses are replaced
by modern buildings, as the local culture is eroded. The agriculture which was the
basis of traditional life is replaced by, and becomes secondary to, tourism. It is
widely recognized that such negative impacts on rural communities have become
stronger, and that rural tourism must be modified to give rural people its benefits.

2.3 Challenges for Rural Tourism

The global movement towards sustainable ventures has been favourable to
the concept of rural tourism. However, the development of rural tourism still
encounters many challenges.

Inadequate Authority and Disharmony in Development

The authority of existing legislative organizations is still restricted as far as tourism

development is concerned. The legislation which gives governing bodies their
authority does not clearly state their power to manage and develop rural regions.
Other government organizations are thus unwilling to cooperate unless a direct
order or financial aid is given from the top administrators of the nation. Another
major constraint is the conflict between various government organizations involved
in rural development, each of which tries to direct its own vision & direction.
What's required is a collective effort towards improving the standards in the rural
areas thus attracting interest from tourist operators.

Legislation Problems

Rural tourism needs to be developed as a niche activity with its focus on increasing
the average spend as against volume of tourists. The strategy requires tour operators
to build expertise in implementing a differentiated model from mass tourism.

Lack of Manpower

Though there are various training courses organized by universities, the number
of personnel with specific skills such as the interpretation of nature, local culture,
history and archaeology, is still limited. In particular, local authorities do not have
experienced staff in tourism management and development.

11
Insufficient Financial Support

Development of rural tourism requires a large amount of funding to improve rural

infrastructure, connectivity and hospitality services. This requires dedicated governmental
focus on, essential developments such as human resource management, enforcement of
regulations, building of physical structures, and land use management.

Lack of Local Involvement

Though the concept of local participation is strongly emphasized in rural tourism,

in practice local people are seldom involved in decision making, planning and
implementing policies. Many rural communities have no knowledge of tourism,
and are misled by outside investors who hope to take most of the economic
benefits from rural areas. Consequently, local people become divided about what
kind of tourism they want to establish in their own area.

2.4 Case of Rural Tourism Operations:

Domestic and International
Tourism in rural areas is rather a dispersed and fragmented marketplace with a
multitude of opportunities. Major emphasis has to be given to the characteristics,
needs, and desires of the visitors of a defined rural market. The motives attracting
people to the countryside are a reflection of a growing interest in heritage, the
search for peace and solitude, and increasing interest in the outdoors. Therefore
further segmentation of tourism avenues in rural areas is necessary.

BOX 5
Global Perspective: A case of Rural Tourism in Thailand

Kanchanaburi province in central Thailand has great natural beauty and historical and
archaeological importance, as well as a strong cultural identity. It is the seventh most
popular province among tourists, with more than 700,000 overseas tourists each year.
Kanchanaburi Ecotourism Cooperative (KECC) was founded by the local people of
Lintin sub-district, under the leadership of local government and with the support of the
Ministry of Agriculture and Cooperatives, and the Royal Forest Department (RFD).
KECC can be described as the first successful cooperation for tourist development
between local people, government organizations, and outside experts.
Projects Involved
Projects are based on the concept that income from tourism will only be sustainable if
the ecological and cultural environment is preserved. Input comes from local
communities assisted by experts. Ten projects that were planned include,
Environmental trails;
Handicraft and souvenir production and training centres;
A museum on local folklore, folk culture, history and the natural environment; A
herbal botanical garden and traditional Thai herbal medicine training centre;

12
 An elephant village, elephant hospital and elephant conservation
centre; A central market for local agricultural products;
A KECC store and supermarket;
A KECC savings bank; and

A KECC credit fund for small loans for small-scale enterprises centred
around ecotourism activities.
Operations
To promote the local involvement and increase its funding, KECC has given the
local people the opportunity to buy KECC shares, borrow funds from commercial
banks and monetary organization, utilize KECC members' savings, and use
donations from the private sector and donor organizations.
Marketing Plans
Local members were encouraged to market KECC ecotourism activities through
registered ecotourism travel agents. In addition, to ensure an even distribution of profits,
KECC has set up commission standards for its members. For example, villagers who
work within the handicraft and souvenir sector will receive 65-80% of earnings from all
sales, while KECC receives the rest as a commission or management fee. Members will
also gain annual dividends for any cooperative share they buy.
Future Prospects
KECC is such a profitable prototype that eight more Ecotourism Cooperatives are
to be established in Thailand, under the patronage of the Ministry of Agriculture
and Cooperatives. Furthermore, the Royal Forest Department is also officially
permitting KECC to operate Ecotourism Cooperatives in the six national parks in
Kanchanaburi province. Given its success and experience, KECC is now in a
good position to assist other rural communities in tourism development.
The cooperative system can be an effective approach to developing tourism in rural areas.
Local people can monitor and control the negative impacts of tourism on their own society, if
they have an equal stake and authority in management and development.

Adventure Tourism BOX 6

Adventure tourism is any activity

close to nature that is
undertaken by someone who
departs from known
surroundings to encounter
unfamiliar places and people,
with the purpose of exploration,
study, business, communication,
recreation, sport or sightseeing.

Governments throughout the

 Activities associated Locations associated
with Adventure
Physical activity – Outdoors, Wilderness
involving physical
exertion
Contact with nature Outdoor, Wilderness,
activities bringing Rural Regions
contact with natural
world in general
Contact with different Remote, Unusual Places,
cultures people, Rural Regions
faith, lifestyles
world have increasingly sought to
find means to revitalize rural communities and the introduction or elevation of
tourism with recreational sport and outdoor activities has become a common tactic

13
to increase rural revenue. The two main reasons for the attractiveness of rural
communities for adventure tourism are

• Low level of crowding and natural local amenities serve as attractions

because they lend themselves to recreational sports

• Many recreational activities require particular natural conditions

mountains, winds, waterways

When a rural community's local environment enables a popular recreational

sport, the opportunity to engage in that sport becomes an attractive activity for
promoting tourism. However, for a sporting activity to contribute to the overall
tourism development of a host destination, that activity must be integrated with
other tourism products and services available at the destination.

BOX 7
Promotion of Paragliding in Linhares de Beira, Portugal

The trend of using adventure as a means to attract tourism to rural

communities is in practice over the past two decades in Europe. UK Tourism
Industry has utilized this opportunity to attract about 10000 tourists a month to
rural Scotland to undertake adventure sport activity.
Linhares da Beira in Portugal is an excellent example for promoting sustainable
adventure sport-based rural tourism. The community is located in central northern
Portugal surrounded by hills and grazing land. The plan to revitalize Linhares and
provide employment opportunities to local youth has been established as a
national policy objective. European Union has partly funded the project by proving
funds for developing rural infrastructure.
Paragliding is one among an array of adventure sports that has enjoyed
substantial growth in popularity in Europe. Linhares with its hills and grazing land
was an ideal location to promote this sport and attract tourists. The challenge
before the local government was to promote the regions beyond just professional
paragliders. The Portuguese government thus implemented the following three
steps to established the sport and the regions as a sustainable means of tourism,
Promoting the location to paragliders from across the Europe for
practice, particularly during the summer season
Organizing a week long international paragliding competition
Establishing a paragliding school offering training and specializing equipment stores
Adventure opportunity extend beyond paragliding as local hills allow rock climbing
and mountain biking. Also the presence of a twelfth century castle nearby provides
tourists an opportunity to experience a bit of the region's ancient history.

Heritage & Cultural Tourism

Tourism is increasingly being regarded as a positive force for the preservation

of nature and culture and also providing benefits for the rural community and its

14
members with incentives to look after and maintain their Heritage. Cultural &
Heritage tourism with respect to Rural Tourism basically involves travelling
to experience and learn the history behind the places and activities that
represent the stories and people of the past and present.

BOX 8
Tourist Attractions
Historic Building & Monuments
Sites of important historical events such as battles
Traditional landscapes & Indigenous Wildlife
Language, Literature, Music & Art
Traditional Festivals & Folklore Practices
Rural Lifestyle including food, drink & sport

BOX 9
Case Study – Archaeological Park for Sustainable Rural Development in Quebrada de
Humahuaca, Argentina

Quebrada de Humahuaca is located on a major cultural route, the Camino Inca,

along the spectacular valley of the Rio Grande. The location has been including in
the list of UNESCO's World Heritage Sites since 2003. The valley shows substantial
evidence of its use as a major trade route over the past 10,000 years and features
visible traces of prehistoric hunter-gatherer communities, of the Inca Empire and of
the fight for independence in the 19th and 20th centuries.
The region has always been at the crossroads for economic, social and cultural
communication. The strategic initiative by the local government was to place value
on this historical location defined by a strong cultural resource with scientific, social
and economic dimensions.
The program involved the use of various means for attracting tourists to this
remote rural location, which include
Archaeological Area – An archaeological park was created to encourage
participation and investigation of location culture.
Botanical Area – The region is rich wild medicinal plants and traditionally
followed autochthonous cultivation technique. The site slowly became the
origin of origin of numerous floristic species used in the traditional medicine,
as aromatic and tinctoreal use.
Adventure Area – The rugged mountainous regions provided a great opportunity
to include adventure activities such as Mountain Biking, Trekking etc.
Research Area – The strategy in including a research area as part of the project was
to allow information research, development and production area establishing a
direct connection between researchers, the local community and the tourists.
Inhabited Areas – Providing accommodation and typical local food
along with a knowledge of the local celebrations
By the appropriate use of both modern technologies such as providing alternative
energy sources (solar panels) and a sewage processing system, and local traditional
resources (building materials, building traditions), eco-friendly tourist facilities were
constructed. The local community managed the all the facilities thus creating
employment and an opportunity to impart local culture and traditions to tourists.

15
 BOX 10
Domestic Perspective: A case of Kumbalangi Integrated Tourism Village project in Kerala

The Island of Kumbalangi in Kerala was formed from the sediment and silt deposits
from rivers during the great flood of 1341 AD. This island with an area of about
15.77 sq kilometres is surrounded by backwater lakes on all sides. The livelihood of
the village depends largely on agriculture. What makes the village an attractive
location for a rural tourism project is the close proximity to the city of Cochin about
25 kilometres away. The Kumbalangi project was set in motion in 2003 to help the
local people, the economy and the locality and also to provide an alternative option
for foreign tourists for experiencing village life.
Kumbalangi was the first model eco-tourism village in the country without having
any of the hallmarks that is normally associated with tourism in India i.e, built-for-
tourists cottages, four-lane roads or walkways. The project is more work-bound than
time-bound as efforts toward the packaging of the village is being done in fragments
as and when funds were allocated from various state government departments.
Attractions
Kalagraamam, an artists' village showcasing traditional arts and
handicrafts Home Stays with local farmers
An experience of local cuisine
First hand experience of fishing communities
Operations
The local panchayat with financial assistance from the state government has implemented the
project to create an alternate means of income from the community and employment. The
panchayat decided not to take up infrastructure developmental offers from the big tourism
industry players. No new structures were built and only improvements on existing sites and
facilities was undertaken to ensure environmental sustainability. To protect the ambience of
the village home-stay arrangements were made. The tourists are invited to dine and partake
in occupational and community activities with the host family. They can walk through the
village, watch or join fisher folk at work, go canoeing or just visit the farms. The Panchayat is
available for assistance and keeps a watchful eye on the activities of the tourists and the
village service providers.

16
Current Drivers and Trends –
Policies & Regulations
3. Current Drivers & Trends–
Policies & Regulations
Tourism, an activity driven by the human quest to see the unknown, feel new cultures
and also enjoy the man-mad and natural wonders is a quick money-spinner for any
kind of economy. The activity generates a number of secondary jobs and also the
intense growth of the sector puts great stress on remaining biologically diverse
habitats and indigenous cultures, which are used to support mass tourism.

Sustainable tourists can reduce the impact of tourism in many ways, including:

• Iinforming themselves of the culture, politics, and economy of the

communities visited Anticipating and respecting local cultures'
expectations and increased tolerance of local sentiments
• Supporting the integrity of local cultures by favoring businesses which
conserve cultural heritage and traditional values
• Supporting local economies by purchasing local goods and
participating with small, local businesses
• Conserving resources by seeking out businesses that are environmentally
conscious, and by using the least possible amount of non-renewable resources

“Responsible tourism" is a pathway towards sustainable tourism.

Responsible tourism and sustainable tourism have an identical goal,
that of sustainable development. The pillars of responsible tourism are
therefore the same as those of sustainable tourism – environmental
integrity, social justice and economic development.

World Travel and Tourism Council (WTTC) estimates show that in 2002 travel,
tourism and related activities will contribute 11% to the world's GDP, rising to 12% by
2010. The industry is currently estimated to generate 1 in every 12.8 jobs or 7.8% of
the total workforce. This percentage is expected to rise to 8.6% by 2012. Tourism is
also the world's largest employer, accounting for more than 255 million jobs, or 10.7%
of the global labour force. Such an activity will generate investment, interest and
needs stringent laws to protect the vulnerable environment.

A few of the initial steps that can start are:

Ö Educate and inform visitors and local communities of the importance of

preserving the areas natural resources and respect local cultures,
religions and built heritage.
Ö Involve the local community in activities that preserve their traditional way
of life and yet offer long term economic benefit.
Ö Make the tourism experience as authentic and informative as
possible by deploying knowledgeable local rangers and guides.

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Ö Restrict activities that disturb or endanger the sensitive biodiversity of the area.
Ö Promote local products and create employment in the village community.
Ö Minimize pollution through wise waste disposal
Ö Earn respect in the local and international community by implementing
a long term and sustainable ecotourism resort

India does not have any overall rules and regulations where Sustainable
tourism or Eco-Rural tourism. Compared to the International counterparts,
who actually have stringent rules for forests, marine land, mountains,
deserts, coral reefs and above all the waste disposal mechanisms, India will
need to strive much ahead to protect its pristine villages and also promote
them. In fact rural tourism is quiet a new idea to the country and integrated
packages are yet to develop. So the policies and regulations are also at a
very nascent stage–changeable and adoptable according to need.

There are 20 odd farms in India which has the capacity and training to undertake
rural tourism–which implies that we are still leaving out the rural sector
completely. Some rules and laws made by Maharashtra has actually taken the
lead in framing the rules and regulations for this particular type of tourism.

It is important that the rules are laid down at this nascent stage of development,
as the fine environmental balance of rural society has to be maintained.

The encompassing methodology needs to consider the immediate environment, site-

specific information including historic human use, conservation and preservation
education, community responsibility and equitable social benefits; as well as outdoor
activities and education. Ecotourism has been described to include pursuits as diverse
as bicycling; bird watching; big-game hunting; meditation; sailing; paddling canoe
trails; hiking; and visits to buffalo farms, historic reenactments and museums.
BOX 11
Measures Taken by Agri Tourism Development Organisation (ATDO)
Maharashtra Krishi Paryatan Vistar Yojana 2008
 The registration of Agri Tourism Centers shall be done only in those cases where the
agriculture farms are fully developed and worth visiting from the tourism point of view.
 It is mandatory to have minimum 3 room accomodation for registration of
the Agri Tourism Center.
 The registration shall be done initially for three years from the date of signing of
agreement which could be further extended depending on the recommendation
of the Inspecting / Reviewing Committee of ATDO taking into consideration the
quantum of business generated,
 Number of visitors, maintenance of Agri Tourism center etc.
 It is mandatory to maintain a visitor's book and remarks obtained from the guests
and the same is forwarded every month to ATDO Offices at Baramati and Pune.
 The Agri tourism centers applying for registration will have to provide
all the information supported by required documents

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  The application fee of Rs.3,000/-shall be payable to the Agri Tourism
Development Organization through Demand Draft, payable at Pune.
 The Farmer/ owner of the Agri Tourism Center is responsible for any casualty
may occur during the stay of the visitors and is liable to provide immediate
medical and transportation assistance. The farmer will be required to give an
affidavit to this effect at the time of registration.
 ATDO may cancel the registration, if any complaint of any nature is received
against the farmer.
 The availability of facilities and services will be evaluated as per the enclosed checklist

 An inspection committee of ATDO will inspect the Agri Tourism center and
recommend its registration and thereafter inspection shall be carried out at
regular intervals to monitor the progress.
 ATDO reserves the right to modify the guidelines / terms and conditions from
time to time.
 All the liabilities such as rates and taxes on electricity, water, property and
entertainment etc. will be borne by the farmer. ATDO does not assure any
relaxation / exemption on the liabilities specified above.
 No sign boards or logo or name of ATDO will be displayed in any form including
printed publicity material, cash receipts, letter heads, rubber stamps etc. by the
 Farmers. Violation of this condition will attract cancellation of registration.
 A registration certificate shall be issued by ATDO which can be displayed at
the reception / office. Farmers may only use the term Registered with ATDO
on their sign boards or their other printed materials.
 Any change in tariff, discontinuation of activity or inclusion of new activity from the
tourism point of view implemented by the farmer should be conveyed to ATDO.
 A police verification report is required to be submitted by the Agri Tourism
Center owner
 The Rules & Regulations of the concerned departments/agencies of the Government
shall be strictly adhered to by the Farmers. They should ensure that no rules or norms
are violated in any manner. It will be the sole responsibility of the Farmer to face the
consequences if any action is initiated by these departments.

However, though ATDO is recognized by UN-WTO, the rules only address the
requirement of the visitors. Hardly any reference has been made to the requirements
of related infrastructure and the fragile balance that is protected by the rural areas.
While visitors going to a Mango orchard may enjoy looking at the variety and tasting
the luscious fruit, any kind of environmental hazards will lead to a fall in productivity.

Tourism means economic activityleading to more wastes and more usage of

power, water, waste disposal and other amenities. Our rural areas are largely
dependant on natural/ local sources to address these. Power supply
condition is quite bad in the rural areas. Usage of generators or other crude
devices will only make the environment more polluted, if not taken care of at
the conception of the project. Hence Rural Tourism necessarily needs to be
tagged along with Responsible tourism as well.

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