A

Project report on

Trends and growth of Tourism sector

Submitted in Partial Fulfillment for the degree of

Bachelor of Business Administration

S.S. JAIN SUBODH P.G.(Autonomous)COLLEGE JAIPUR

(2020-21)

SUBMITED BY SUBMITED To

PRIYA KUMAWAT DR. GAURI DHINGRA

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 CERTIFICATE

This is to certify that the Project Report entitled “Trends and Growth of tourism sector “is a record of project work done by independently by

Priya Kumawat under my guidance and supervision and that it has not previously formed the basis for the award of any degree, fellowship or

associate ship.

Dr. Gauri Dhingra

DESIGNATION

S.S. Jain Subodh P.G.(Autonomous)College

Jaipur

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 DECLARATION

I Priya Kumawat student of B.B.A. SEM IV here declare that the project work presented in the
report is my own work has been carried out under the supervision of B.B.A. Faculty GUIDE of
S.S. Jain Subodh P.G.(AUTONOMOUS) College.This work has not been previously submitted
to any other university for any examination

Priya Kumawat

S.S. Jain Subodh P.G.(Autonomous) college

Jaipur

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 ACKNOWLEDGEMENT
It is not often in life that u get a chance of appreciating and expressing your feelings in black and
white to thank the people who have been a crucial part of your successes, your accomplishment,
and your being that you are today. I take this opportunity first of all thanks the faculty at S.S.
Jain Subodh P.G.(Autonomous) College ,specially Dr .Gauri Dhingra and Dr Chitra Rathore
Head, department of B.B.A. for inculcation and instilling me the knowledge ,learning,
willpower, value and the competitiveness and professionalism required by me a management
student .I would like to give special thanks to Dr Gauri Dhingra for educating me silver lining in
very dark cloud. Her enduring efforts, guidance, patience and enthusiasm have given a sense of
direction and purposefulness to this project and ultimately made it a success.I express my sincere
and heartiest thanks to everyone who has contributed towards the successful completion of the
project.Last but not the least; I would like to thanks: to my family my parents for supporting me
spiritually throughout my life. The errors and inconsistency remain my own.

Priya Kumawat

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 Index

Chapters Particular Page No

Chapter 1 Introduction

Chapter 2 Research methodology

Chapter 3 Initiatives of government

to increase tourism in
India

Chapter 4 Growth of tourism

Chapter 5 Impact of Covid-19 on

Tourism sector

Chapter 6 Conclusions

Chapter 7 Bibliography

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Chapter 1
Introduction

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Tourism is one of the world's fastest growing industries as well as the major source of foreign
exchange earnings and employment for many developing countries.

The concept of tourism refers to the broad framework that identifies tourism’s essential
characteristics and distinguishes tourism from similar, often related but different phenomena The
two terms ‘travel’ and ‘tourism’ can be used in isolation or together to describe three concepts:

• The movement of the people

• A sector of the economy or an industry

• A broad system of interacting relationships of people, their needs to travel outside their
communities and services that attempt to respond to these needs by supplying products

According to the WTO tourists are people who: “travel to and stay in places outside their usual
environment for not more than one consecutive year for leisure, business and other purposes not
related to the exercise of an activity remunerated from within the place visited.”

Devised by WTO was endorsed by the UN Statistical Commission in 1993 following an

International Government Conference held in Ottawa, Canada in 1991.

Before people can experience tourism they usually need at least:

1. disposable income, ie. money to spend on non-essentials

2. leisure time

3. tourism infrastructure, such as transport and accommodation.

4. Other factors such as health and motivation to travel are also important.

As a service industry, tourism has numerous tangible and intangible elements. Major tangible
elements include transportation, accommodation, and other components of the hospitality
industry. Major intangible elements relate to the purpose or motivation for becoming a tourist,
such as rest, relaxation, the opportunity to meet new people and experience other cultures, or
simply to do something different and have an adventure.

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History of Travel Agency Business in India :

The tourism business is at least 2,000 years old. It began when wealthy citizens of ancient Rome,
deciding they would rather spend their summers away from the city, took trips to the countryside
and the coast.

A tourist industry soon sprang up to cater for the Romans’ travel and accommodation needs, and
for a while it thrived. But Roman tourism ended with its empire, and for hundreds of years the
turbulent economic, social and military situation in Europe made frequent, safe travel out of the
question.

During the medieval era, however, tourism again appeared thanks to a growing interest in
pilgrimages. The organizer’s arranged the tourism basics of itineraries and places to eat and
sleep. And from records such as Chaucer’s Canterbury Tales, it’s evident that many pilgrims
were keen to relax and enjoy themselves as well as visit a holy shrine. In fact it’s from the Old
English word hāligdæg (holy day) that “holiday” derives.

But it was two other factors hundreds of years later that encouraged the start of more widespread
and regular tourism: health and culture. Those who could afford to do so began to visit the spa
and seaside towns of eighteenth century Europe to benefit from the spring waters and fresh air.
Others, most notably the English, took educational holidays to countries such as Italy with the
intention of studying paintings, sculptures and architecture, and visiting historical sites.

Travel agents were not merely meant for selling travel-related services, but also used to take part
individually or with group for promotion of tourism destinations. The international travel
organizations like Thomas Cook, American Express and Cox and King have made remarkable
contributions to the growth of travel agency and tour operation business.

Those travel agencies brought several new ideas to the limelight. Similarly, travel agencies in
various countries followed and practiced the innovative business strategies.

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Travel trade in India was not considered as a business to grow given the scanty demand of people
for traveling in domestic and foreign countries during the pre-independence period. Apart from
Thomas Cook’s organized package tour, there was hardly any entrepreneur from India who
ventured into the business. The Government of India took a slew of measures during the post
independence period to increase tourist traffic to India. It increased the inbound tourist traffic to
India after 1950.The growth of travel agency business was not so significant in the first phase of
the Post-Independence Period. Nevertheless, several initiatives were taken to increase the share of
India’s in international tourist arrivals and revenue receipts.

Types of Tourism

Tourism has two types and many forms on the bases of the purpose of visit and alternative forms
of tourism. Tourism can be categorized as
A. International tourism
a. Inbound tourism
b. Outbound tourism
B. Domestic tourism

Tourism has two types and various forms. On the basis of the movement of people tourism
categorized into two types.

International Tourism

When people visit a foreign country, it is referred to as International Tourism. In order to travel
to a foreign country, one needs a valid passport, visa, health documents, foreign exchange, etc.
International tourism further divides into two types;
Inbound Tourism and Outbound Tourism.
Inbound Tourism

This refers to tourists of outside origin entering a particular country. When people travel outside
their host/native country to another country, then it is called inbound tourism for that country

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where he/she is traveling. For example when a tourist from Indian origin travels to Japan then it
is Inbound tourism for Japan because foreign tourist comes to Japan.

Outbound Tourism

This refers to tourists traveling from the country of their origin to another country. When tourists
travel a foreign region than it is outbound tourism for his own country because he/she is going
outside their country. For example when a tourist from India travel to Japan then it is outbound
tourism for India and Inbound tourism for Japan.

Domestic Tourism

The tourism activity of the people within their own country is known as domestic tourism.
Traveling within the same country is easier because it does not require formal travel documents
and tedious formalities like compulsory health checks and foreign exchange. In domestic
tourism, a traveler generally does not face many language problems or currency exchange issues.

Forms of Tourism

Tourism has various forms on the basis of the purpose of visit and alternative forms. These are
further divided into many types according to their nature. Forms of tourism are following as :

Some most important forms of tourism are following:

Adventure Tourism
Atomic Tourism
Bicycle Tours
Beach Tourism
Cultural Tourism
Ecotourism
Geotourism
Industrial Tourism

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Medical Tourism
Religious Tourism
Rural Tourism
Space Tourism
Sports Tourism
Sustainable Tourism
Virtual Tourism
War Tourism
Wildlife Tourism

Classification of Tourism

Tourism can be classified into six distinct categories according to the purpose of travel. These
are following as:
1) Recreational: Recreational or leisure tourism takes a person away from the humdrum of
everyday life. In this case, people spend their leisure time at the hills, sea beaches, etc.

2) Cultural: Cultural tourism satisfies cultural and intellectual curiosity and involves visits
to ancient monuments, places of historical or religious importance, etc.

3) Sports/Adventure: Trips have taken by people with a view to playing golf, skiing and
hiking, fall within this category.

4) Health: Under this category, people travel for medical, treatment or visit places where
there are curative possibilities, for example, hot springs, spa yoga, etc.

5) Convention Tourism: It is becoming an increasingly important component of travel.

People travel within a country or overseas to attend conventions relating to their business,
profession or interest.

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 6) Incentive Tourism: Holiday trips are offered as incentives by major companies to
dealers and salesmen who achieve high targets in sales. This is a new and expanding
phenomenon in tourism, These are in lieu of cash incentives or gifts, Today incentive
tourism is a 3 billion dollar business in the USA alone.

Nature of Tourism

Tourism as a socio-economic phenomenon comprises the activities and experiences of tourists

and visitors away from their home environment and serviced by the travel and tourism industry
and host destination. The sum total of this activity experience and services can be seen as a
tourism product.

The tourism system can be described in terms of supply and demand. Tourism planning should
strive for a balance between demands and supply. This requires an understanding not only of
market characteristics and trends but also of the planning process to meet the market needs.

Often tourist from core generating markets are identified as the demand side; the supply side
includes all facilities, programmes, attraction, and land uses designed and managed for the
visitors. These supply-side factors may be under the control of private enterprise, non-profit
organizations, and government. New and innovative forms of partnerships are also evolving to
ensure the sustainable development and management of tourism related resources.

The supply and demand side can be seen to be linked by flows of resources such as capital, labor,
goods and tourist expenditures into the destination, and flows of marketing, promotion, tourist
artifacts and experiences from the destination back into the tourist generating region.
In addition, some tourist expenditures may leak back into the visitors generating areas through
repatriation of profits of foreign tourism investors and payment for improved goods and services
provided to tourists at the destination. Transportation provides an important linkage both to and
from the destination.
For planning purposes, the major components that comprise the supply side are:

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 • Various modes of transportation and other tourism-related infrastructure.
• Tourist information.
• Marketing and promotion.
• The community of communities within the visitor’s destination area.
• The political and institutional frameworks for enabling tourism.

The tourism system is both dynamic and complex due to many factors linked to it and because of
the existence of many sectors contributing to its success. These factors and sectors are linked to
the provision of the tourist experience and generation of tourism revenue and markets.

The dynamic nature of tourism system makes it imperative to scan the external and internal
environment of the destinations on a regular basis so as to makes changes when necessary to
ensure a healthy and viable tourism industry.

Importance of Tourism

Tourism and hospitality, which are inextricably linked to each other, are among the major
revenue-earning enterprises in the world. They happen to be among the top employers too. There
has been an upmarket trend in tourism over the last few decades as travel has become quite
common. People travel for business, vacation, pleasure, adventure or even medical treatments.
With several business-related activities associated with tourism, the industry has a tremendous
potential of generating employment as well as earning foreign exchange. There are many
countries in the world, such as Mauritius, Malaysia, Singapore, Fiji, and the Caribbean, whose
economies are primarily driven by tourism. Tourism can contribute to the economic growth of a
country in the followings ways:

• Employment Generation

It creates a large number of jobs among direct services providers (such as hotel,
restaurants, travel agencies, tour operators, guide and tour escorts, etc.) and among indirect

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services providers (such as suppliers to the hotels and restaurants, supplementary
accommodation, etc.

• Infrastructure Development

Tourism spurs infrastructure development. In order to become an important commercial or

pleasure destination, any location would require all the necessary infrastructure, like good
connectivity via rail, road, and air transport, adequate accommodation, restaurants, a well-
developed telecommunication network, and, medical facilities, among others.

• Foreign Exchange

The people who travel to other countries spend a large amount of money on accommodation,
transportation, sightseeing, shopping etc. Thus, an inbound tourist is an important source of
foreign exchange for any country.

Structure and organizations

The tourism industry is based on many different components and interrelated parts. For example,
transport, accommodation, attractions, activities, marketing and government regulation. Many
businesses span more than one sector and the impacts in one part of the tourism industry have
significant implications for other sectors.

The tourism industry includes:

1. those sectors which enable the tourist to travel to and from the destination (for example travel
agents, airlines, bus companies, tour operators and rental car companies)

2. those sectors which are part of the product at the destination (for example, accommodation,
facilities and attractions)

3. the human component of tourism (the labour force)

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 4. public sector or government agencies, regional tourism organizations, professional associations
and industry training organizations.

International organizations

World Tourism Organization (UNWTO) is the most widely recognized and the leading
international organization in travel and tourism today. It is a specialized agency of the United
Nations. It serves as a global forum for tourism policy and a practical source of tourism know-
how. With its headquarters in Madrid, Spain the World Tourism Organization plays a central and
decisive role in promoting development of responsible, sustainable and universally accessible
tourism, with the aim of contributing to economic development, international understanding,
peace prosperity and universal respect for and observance of human rights and fundamental
freedoms.

Its membership includes 150 countries and territories and more than 450 affiliate members
representing local governments, tourism associations, educational institutes and private sector
companies including airlines, hotels and tour operators.

Other international organizations which have a specialized interest in tourism include the
International Civil Aviation Organization (ICAO) which is a specialized agency of the United
Nations and is concerned with the development of international civil aviation, and the
International Governmental Maritime Consultative Organization (IMCO) which is an inter-
governmental organization concerned with co-operation in sea transport.

The International Air Transport Association(IATA) is an association of airlines concerned with

the development and regulation of the air transportation industry. Members comprise of
approximately 80% of the world’s international airlines.

Regional International Organizations

The Pacific Asia Travel Association (PATA) is a mix governmental and non-governmental
bodies that work together to promote tourism industry professionalism in the Asia and Pacific
area.

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European Civil Aviation Conference (ECAC) this is a regional organization with a specialized
interest in tourism and concerned with co-operation and co-ordination of European airlines.
www.ecac-ceac.org
European Travel Commission is a strategic alliance that provides for the collaboration between
thirty-three European national tourism organizations. The commission’s goal is to attract
customers from overseas markets to come to Europe through promotional campaigns and
industry trade shows.

National Organizations

Public (government) sector

The major reason for government involvement in tourism is concerned with the welfare of their
citizens and the overall welfare of their country. This relates to areas such as economic stability,
protection of natural resources, national security, public health and employment. Tourism
activity can occur in all of these areas so governments are concerned that it is regulated and
directed so as to ensure maximum benefit for the country and the negative factors are minimized.

The degree of control differs between each country. State organizations in the former Soviet
Union had almost total control of tourism from the formation of policy to running the only travel
agency in tourist, airline Aeroflot and over 40000 rooms.

The only remaining countries that still control tourism completely so that independent travel is
impossible are North Korea and Turkmenistan.

In capitalist countries, the mix of private-sector and public-sector involvement in tourism varies
considerably between each country.

The United Nations Conference on International Travel and Tourism in Rome in 1963 adopted
the following resolution:

The Conference considers that it is incumbent on governments to stimulate and co-ordinate

national tourist activities, convinced that this task can, in the main, be carried out through the
medium of national tourist organizations.

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Virtually every country in the world has a national body responsible for tourism. It can be part of
a ministry, a constituted part of a government department or an organization with a separate legal
status. Generally the role of a NTO will be to ensure appropriate development and promotion of
a nation as a tourism destination.

This can include the following functions:

• research

• information and promotion within the country

• overseas promotional activities

• international relations

• development of tourist areas

• overall tourism policy and promotion

• in supporting key tourism interests in a time of financial crisis

Local Authorities

Below the National Tourism, in most countries, there is often a complex web of organizations
which complement the work of the NTO at the regional and local level. Their activities are often
a scaled-down version of the NTO’s work at a regional level; they often implement national
policy and pursue integrated activities with the NTO providing guidance.

Direct elements of the Tourism Industry - Those areas of the tourism industry which come
into direct contact with tourists
• Sales

• Accommodation

• Transport

• Activities

• Attractions

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 • Ancillary Services

Indirect elements of the Tourism Industry - Often called support sectors. Those parts of the
tourism industry which may not come into direct contact with tourists, but without the rest of the
industry could not function.
• Infrastructure

• Roads

• Airports

• Communications use

• Public Toilets

• Signs

• Manufacturing

• Building Industry

• Electricity

• Water supply

• Sewerage and waste disposal

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 Chapter 2

Research methodology

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Research methodology is a process uses specific techniques research process to collect,

assemble and evaluate data. It defines those tools that are used to gather relevant

information in a specific research study. Surveys, questionnaires and interviews are the

common tools of research.

There are two types of data:-

1. Primary Data

Primary data is that data which is collected by a person or a researcher from first

hand sources, using methods like surveys, interviews, or experiments. It is

collected with the research mind, directly from primary sources.

2. Secondary Data

Secondary data is that data which is gathered by a person from studies, surveys,

or experiments that have been conducted by other person/s for the same or for

any other purpose. In this people collect information from second-hand sources

which is published or printed generally.

I generally took secondary data which was published and researched by researchers as I

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had limited time. For theoretical knowledge I mostly used information from external

sources i.e. published and commercial. I generally used researchers and newspapers

information to make my project but some content I used my experience.

Objective of study

1. To find out the opportunities available for Tourism .

2. To develop a marketing mix for Rural tourism in Maharashtra.
3. To develop a marketing strategy for tourism in by studying the existing projects and
their strategies inside/ out side .
4. To study the modus operandi of tourism sector in India
5. To analysis the trends and growth of tourism in India
6. To offer suggestions based on the findings
7. To do a practical and Live observation of the work place.
8. To do a comprehensive analysis of the company and prepare the SWOT analysis report
for the company.

Limitations of study:

Any research in any field topic gives some new results, discovering new areas etc.But there are
always some limitations thereof:

• The data collected is totally dependent on respondents view, which could be basic nature.
• Sometimes respondent do not give a response or give partial response. It is called non
response error. The reason may be lack of knowledge or unwillingness to answer.
• The sample size is small and it may not actually represent the whole population.
• It’s very time consuming.
• Lack of time- I had the limited time as an adversary, the research period was short period
to carryout study with almost precautions.
• I heavily relied on external sources for the information i.e. published and commercial.
• Researchers‘ information which I gathered varied and some information was tampered by
many users who used the researchers‘ information so, I tried to eliminate the irrelevant
and wrong information.

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 Chapter 3

Initiative of government to increase tourism in India

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The Indian tourism and hospitality industry has emerged as one of the key drivers of growth among
the services sector in India. Tourism in India has significant potential considering the rich cultural and
historical heritage, variety in ecology, terrains and places of natural beauty spread across the country.
Tourism is also a potentially large employment generator besides being a significant source of foreign
exchange for the country. In FY20, 39 million jobs were created in the tourism sector in India; this
accounted for 8.0% of the total employment in the country. The number is expected to rise by two%
annum to 52.3 million jobs by 2028.

According to WTTC, India ranked 10th among 185 countries in terms of travel & tourism’s total
contribution to GDP in 2019. During 2019, contribution of travel & tourism to GDP was 6.8% of
the total economy, ~ Rs. 13,68,100 crore (US$ 194.30 billion).
Market Size
India is the most digitally advanced traveller nation in terms of digital tools being used for
planning, booking, and experiencing a journey. India’s rising middle class and increasing
disposable income has supported the growth of domestic and outbound tourism.
During 2019, foreign tourist arrivals (FTAs) in India stood at 10.89 million, achieving a growth
rate of 3.20% y-o-y. During 2019, FEEs from tourism increased 4.8% y-o-y to Rs. 1,94,881 crore
(US$ 29.96 billion). In 2019, arrivals through e-Tourist Visa increased by 23.6% y-o-y to 2.9
million.
International hotel chains are increasing their presence in the country, and it will account for
around 47% share in the tourism and hospitality sector of India by 2020 and 50% by 2022

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Investments
India was globally the third largest in terms of investment in travel and tourism with an inflow of
US$ 45.7 billion in 2018, accounting for 5.9% of the total investment in the country.
Hotel and Tourism sector received cumulative FDI inflow of US$ 15.48 billion between April
2000 and June 2020.
Government Initiatives
The Indian Government has realised the country’s potential in the tourism industry and has taken
several steps to make India a global tourism hub.
Some of the major initiatives planned by the Government of India to boost the tourism and
hospitality sector of India are as follows:

• The Ministry of Tourism developed an initiative called SAATHI (System for

Assessment, Awareness & Training for Hospitality Industry) by partnering with the
Quality Council of India (QCI) in October 2020. The initiative will effectively implement
guidelines/SOPs issued with reference to COVID-19 for safe operations of hotels,
restaurants, B&Bs and other units.
• Ministry of Tourism launched Dekho Apna Desh webinar series to provide information
on many destinations and sheer depth and expanse on the culture and heritage of India.
• Ministry of Tourism launched Audio Guide facility App called Audio Odigos for 12 sites
in India (including iconic sites).
• Prime Minister, Mr. Narendra Modi urged people to visit 15 domestic tourist destinations
in
India by 2022.
• Statue of Sardar Vallabhbhai Patel, also known as ‘Statue of Unity’, was inaugurated in
October 2018. It is the highest standing statue in the world at a height of 182 metre. It is
expected to boost the tourism sector in the country and put it on the world tourism map.
• Government of India is working to achieve one% share in world's international tourist
arrivals by 2020 and 2% share by 2025.
• Under Budget 2020-21, the Government of India has allotted Rs. 1,200 crore (US$
171.70 million) for development of tourist circuits under Swadesh Darshan for eight
Northeast states.

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 • Under Budget 2020-21, the Government of India has allotted Rs. 207.55 crore (US$
29.70 million) for development of tourist circuits under PRASHAD scheme.
• In 2019, Government reduced GST on hotel rooms with tariffs of Rs. 1,001 (US$ 14.32)
to Rs. 7,500 (US$ 107.31) per night to 12% and those above Rs. 7,501 (US$ 107.32) to
18% to increase India’s competitiveness as a tourism destination.

Achievements
Following are the achievements of the Government during 2019-20:

• During 2019-20, an additional fund Rs. 1,854.67 crore (US$ 269.22 million) was
sanctioned for new projects under the Swadesh Darshan scheme.
• Ministry of Tourism sanctioned 18 projects covering all the North Eastern States for Rs.
1,456 crore (US$ 211.35 million) to develop and promote of tourism in the region under
Swadesh Darshan and PRASHAD schemes.
• Statue of Sardar Vallabhbhai Patel, also known as ‘State of Unity’, was inaugurated in
October 2018 and the total revenue generated till November 2019 stood at Rs. 82.51
crore (US$ 11.81 million).

Role and functions of Ministry

The Ministry of Tourism, is the nodal agency for the formulation of national policies and
programmes and for the co-ordination of activities of various Central Government Agencies, State
Governments/UTs and the Private Sector for the development and promotion of tourism in the
country.This Ministry is headed by the Union Minister of State for Tourism (Independent Charge).
The administrative head of the Ministry is the Secretary (Tourism). The Secretary also acts as the
Director General (DG) Tourism. The office of the Director General of Tourism {now merged with
the office of Secretary (Tourism)} provides executive directions for the implementation of various
policies and programmes. Directorate General of Tourism has a field formation of 20 offices within
the country and 14 offices abroad and one sub-ordinate office/project i.e. Indian Institute of Skiing
and Mountaineering (IISM)/ Gulmarg Winter Sports Project. The overseas offices are primarily
responsible for tourism promotion and marketing in their respective areas and the field offices in

25
India are responsible for providing information service to tourists and to monitor the progress of
field projects.The activities of IISM/GWSP have now been revived and various Ski and other
courses are being conducted in the J&K valley.
The Ministry of Tourism has under its charge a public sector undertaking, the India Tourism
Development Corporation and the following autonomous institutions:
Indian Institute of Tourism and Travel Management (IITTM) and National Institute of Water
Sports (NIWS)
National Council for Hotel Management and Catering Technology (NCHMCT) and the Institutes
of Hotel Management.
The Ministry of Tourism functions as the nodal agency for the development of tourism in the
country. It plays a crucial role in coordinating and supplementing the efforts of the State/Union
Territory Governments, catalyzing private investment, strengthening promotional and marketing
efforts and in providing trained manpower resources. The functions of the Ministry in this regard
mainly consist of the following:
All Policy Matters, including:
• Development Policies.

• Incentives.

• External Assistance.

• Manpower Development.

• Promotion & Marketing.

• Investment Facilitation.
Planning Co-ordination with other Ministries, Departments, State/UT Governments
Regulation:
• Standards.

• Guidelines
Infrastructure & Product Development.
• Guidelines
Human Resource Development
• Institutions.

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 • Setting Standards and Guidelines.
Publicity & Marketing:
• Policy.

• Strategies.

• Co-ordination.
Research, Analysis, Monitoring and Evaluation International Co-operation and External
Assistance
• International Bodies.

• Bilateral Agreements.

• External Assistance.

• Foreign Technical Collaboration

Legislation and Parliamentary Work, Establishment matters, Vigilance
matters, Implementation of official language policy, Budget co-ordination and related
matters, Plan-coordination and monitoring.
The Functions of Attached Office viz. Directorate General of Tourism are as under [The office of
DG (T) has now been merged with the office of Secretary (Tourism)]:
Assistance in the formulation of policies by providing feedback from the field
offices. Monitoring of Plan Projects and assisting in the Plan formulation & Regulation:
• Approval and classification of hotels and restaurants.

• Approval of travel agents, Inbound tour operators and tourist transport operators, etc.
Inspection & Quality Control
• Guide service

• Complaints and redressal.

Infrastructure Development:
• Release of incentives.

• Tourist facilitation and information.

• Field publicity, promotion & marketing.

• Hospitality programmes.

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 • Conventions & conferences.
Assistance for Parliamentary work.

Central Government Role in Indian Tourism Scenario India has immense possibilities of
growth in the tourism sector with vast cultural and religious heritage, varied natural attractions,
but a comparatively small role in the world tourism scene. The tourist organisations of India had
their beginning in the report of the Sargent Committee in 1945. Sir John Sargent. The Committee
recommended that a separate tourist organization should be set up at the centre with regional
offices at the metro cities. It was in 1948 that the independent government under the transport
ministry set up ad hoc Committee constituting representatives from tourist, transport and Hotel
industries. From time to time, the Government has included in its five year plans, planning &
development of travel & tourism. The functions of the ministry cover both promotional and
organizational activities like, Planning and Programming, Publicity and conference, Travel trade,
Hospitality and accommodation, Supplementary accommodation and wildlife, Market Research
and Administration. Indian Tourism Development Corporation (ITDC) was set up in 1966. ITDC
performs following activities like;

• Construction, management and marketing of hotels, restaurants and travelers lodges at

various places in the country.
• Provision of tourist publicity materials
• Provision of entertainment facilities in the shape of sound and light shows, music concerts
etc.
• Provision of shopping facilities in the shape of duty free shops and
• Provision of consultancy cum managerial service in India and abroad.

It would lead to larger foreign exchange earnings and create conditions for more foreign direct
investment. So, a New Tourism Policy, which builds on the strength of the national Tourism Policy
of 1982.The Tourism Policy 1982Tourism emerged as the largest global industry of the 20th
century and is projected to grow even faster in the 21st century. India has immense possibilities of
growth in the tourism sector with vast cultural and religious heritage, varied natural attractions,
but comparatively small role in the world tourism scenario. The government of India announced
the first tourism policy in November 1982.The tourism policy, 1982 was more aggressive

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statement in marketing than a perspective plan for development. Following measures were
suggested by the policy-

• To take full advantage of the national heritage for attracting tourists.

• To increase tourist resorts.
• The status of an export industry to tourism
• To adopt the approach to develop few tourist circtouris
• To invite private sector.

National Committee on Tourism (NCT)

The National Committee on Tourism set up by the Government in 1986 to evaluate the economic
and social relevance of tourism in India and to draw up a long term measure for ensuring
accelerated growth of tourism. On the basis of these recommendations a package of incentives as
made available for the tourist industries and the Tourism Finance Corporation of India (TFCI) was
set up to finance tourism projects. In the same year, Tourism was given the status of an ‘industry’
and became eligible for several incentives and facilities including tax incentives, subsidies,
priorities in the sanctioning of loans by the State financial institutions and preferences in providing
electricity and water connections. Tourism was made a priority sector for foreign direct investment
in 1991 making it eligible for automatic approvals upto 51% of the equity.

National Action Plan 1992

The development plans for tourism during the Eight Plan (1992-97) was based on the National
Action Plan 1992. The rapid growth of tourism has raised a number of interrelated issues that
challenges the effectiveness and efficiency of government. Notable objective among them are:

• Socio - economic development of region.

• Increasing employment opportunities.
• Development of domestic tourism.
• Preserving national heritage and environment.
• Development of international environment
• Diversification of the tourism products.

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 • Increase in India’s share in world tourism.

The new Tourism Policy of 2002

In 2002, the action plan was finally translated into a tourism policy. Tourism policy officially
became a joint central-state government concern. The new policy itself, however, was designed by
the central government. To start with, the policy document attempts to establish tourism's great
contribution to national development and its role as an engine of growth. It suggests that tourism
not only generates government revenue and foreign currency, but also provides an optimal use of
India's scarce resources, sustainable development, and high quality employment especially to
youngsters, women and disabled people and finally, peace, understanding, national unity and
stability. The new tourism policy is announced in 2002, which incorporates the 7-S mantras which
have been identified to provide thrust for tourism development in our country. These are: Swagat
(welcome), Soochana (information), Suvidha (facilitation) , Suraksha (safety), Sahyog(Co-
operation), Samrachan (infrastructure development) and Safai (cleanliness

30
 Chapter 4

Growth of tourism

DEVELOPMENT OF TOURISM IN INDIA

The first conscious and organized efforts to promote tourism in India were made in 1945 when a
committee was set up by the Government under the Chairmanship of Sir John Sargent, the then
Educational Adviser to the Government of India (Krishna, A.G., 1993). Thereafter, the
development of tourism was taken up in a planned manner in 1956 coinciding with the Second
Five Year Plan. The approach has evolved from isolated planning of single unit facilities in the
Second and Third Five Year Plans. The Sixth Plan marked the beginning of a new era when
tourism began to be considered a major instrument for social integration and economic
development.

But it was only after the 80’s that tourism activity gained momentum. The Government took
several significant steps. A National Policy on tourism was announced in 1982. Later in 1988,
the National Committee on Tourism formulated a comprehensive plan for achieving a
sustainable growth in tourism. In 1992, a National Action Plan was prepared and in 1996 the

31
National Strategy for Promotion of Tourism was drafted. In 1997, the New Tourism
Policyrecognises the roles of Central and State governments, public sector undertakings and the
private sector in the development of tourism were. The need for involvement of Panchayat Raj
institutions, local bodies, non-governmental organisations and the local youth in the creation of
tourism facilities has also been recognised.

TOURISM IS A BUSINESS

Tourism is one of the world’s fastest growing industries as in-come is generated by the spending
of goods and services required by tourists. The tourism industry is therefore very important to the
well being of many countries. At the beginning of this century, tourism was turning into a
business, although it slackened in the first half of the century, owing to the two world wars. After
these difficulties, tourism came to signify the personal transfer from one place to another for
income, for the purposes of consumerism as the result of economic well being and technological
progress. Tourism has led to the creation of new habits and different behavior and life models as
well as a different conception of time.

TOURISM IN INDIA AS UPCOMING INDUSTRY

Home of Buddha, Gandhi and the seat of the Dali Lama, India has long draw certain types of
tourists as a pilgrimage location. But with over 4,000 miles of coastline, a portion of the
Himalayas and megalopolises like Bombay and Delhi, there are many other attractions to draw
tourists. As a young country, having gained independence from Britain in 1947, India is in the
midst of the process of honing, developing and expanding its tourism industry and messaging.

Features of Tourism in India

Today tourism is the largest service industry in India, with a contribution of 6.23% to the
national GDP and providing 8.78% of the total employment. India witnesses more than 5 million
annual foreign tourist arrivals and 562 million domestic tourism visits. The tourism industry in
India generated about US$100 billion in 2008 and that is expected to increase to US$275.5
billion by 2018 at a 9.4% annual growth rate. The Ministry of Tourism is the nodal agency for
the development and promotion of tourism in India and maintains the "Incredible
India" campaign.

32
According to World Travel and Tourism Council, India will be a tourism hotspot from 2009-
2018, having the highest 10-year growth potential. As per the Travel and Tourism
Competitiveness Report 2009 by the World Economic Forum, India is ranked 11th in the Asia
Pacific region and 62nd overall, moving up three places on the list of the world's attractive
destinations. It is ranked the 14th best tourist destination for its natural resources and 24th for its
cultural resources, with many World Heritage Sites, both natural and cultural, rich fauna, and
strong creative industries in the country. India also bagged 37th rank for its air transport network.
The India travel and tourism industry ranked 5th in the long-term (10-year) growth and is
expected to be the second largest employer in the world by 2019. The 2010 Commonwealth
Games in Delhi are expected to significantly boost tourism in India further.

Moreover, India has been ranked the "best country brand for value-for-money" in the Country
Brand Index (CBI) survey conducted by Future Brand, a leading global brand consultancy. India
also claimed the second place in CBI's "best country brand for history", as well as appears
among the top 5 in the best country brand for authenticity and art & culture, and the fourth best
new country for business. India made it to the list of "rising stars" or the countries that are likely
to become major tourist destinations in the next five years, led by the United Arab Emirates,
China, and Vietnam.

Tourist Attractions in India:

India is a country known for its lavish treatment to all visitors, no matter where they come from.
Its visitor-friendly traditions, varied life styles and cultural heritage and colourful fairs and
festivals held abiding attractions for the tourists. The other attractions include beautiful beaches,
forests and wild life and landscapes for eco-tourism; snow, river and mountain peaks for
adventure tourism; technological parks and science museums for science tourism; center’s of
pilgrimage for spiritual tourism; heritage, trains and hotels for heritage tourism. Yoga, ayurveda
and natural health resorts and hill stations also attract tourists.

The Indian handicrafts particularly, jewellery, carpets, leather goods, ivory and brass work are
the main shopping items of foreign tourists. It is estimated through survey that nearly forty per
cent of the tourist expenditure on shopping is spent on such items.

Despite the economic slowdown, medical tourism IN India is the fastest growing segment of
tourism industry, according to the market research report “Booming Medical Tourism in India”.

33
The report adds that India offers a great potential in the medical tourism industry. Factors such as
low cost, scale and range of treatments provided in the country add to its attractiveness as a
medical tourism destination.

HIGLIGHTS OF INDIAN TOURISM

The following are the scope and highlights of Indian Tourism

• Increase in GDPC making the tourism industry a unifying force

• Helping to preserve, retain and enrich our cultural heritages

• Increase in International Trade

• Giving more innovative promotion all measures for tourism

• Offering more Tourism Education

• Growth in Health Care Management

• Progress in Health Care Industries

• Multi-socio cultural Activities

• Growth in Hotel Industry

• Focus on Rural Tourism

• Motivating private sectors to attract more tourists

Initiatives to Boost Tourism:

Some of the recent initiatives taken by the Government to boost tourism include grant of export
house status to the tourism sector and incentives for promoting private investment in the form of
Income Tax exemptions, interest subsidy and reduced import duty. The hotel and tourism-related
industry has been declared a high priority industry for foreign investment which entails
automatic approval of direct investment up to 51 per cent of foreign equity and allowing 100 per

34
cent non-resident Indian investment and simplifying rules regarding the grant of approval to
travel agents, tour operators and tourist transport operators.

The first-ever Indian Tourism Day was celebrated on January 25, 1998. The Year 1999 was
celebrated as Explore India Millennium Year by presenting a spectacular tableau on the cultural
heritage of India at the Republic Day Parade and organising India Tourism Expo in New Delhi
and Khajuraho. Moreover, the campaign ‘Visit India Year 2009’ was launched at the
International Tourism Exchange in Berlin, aimed to project India as an attractive destination for
holidaymakers. The government joined hands with leading airlines, hoteliers, holiday resorts and
tour operators, and offered them a wide range of incentives and bonuses during the period
between April and December, 2009.

Future Prospects:
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.

Similarly, in developing countries like India tourism has become one of the major sectors of the
economy, contributing to a large proportion of the National Income and generating huge
employment opportunities. It has become the fastest growing service industry in the country with
great potentials for its further expansion and diversification. However, there are pros and cons

35
involved with the development of tourism industry in the country. Let us discuss the
development as well as the negative and positive impacts of tourism industry in India.

Digital Technology in Tourism

Today, tour operators and tourists, both are equipped with latest technology. It has empowered
the tourism business managers and tourists to explore, discover and reach new places by
facilitating online travel and accommodation bookings, and more.

The tourists use various mobile apps as simple as a compass app, online booking apps, currency
converter apps, world time apps, language translation apps, weather apps, google maps, and
restaurant or accommodation locating services on their mobile device. The tourists can also add
their own data to create overlay on the Google Map and explore all possibilities in visiting a
location by using Google Maps API. Some apps help to plan the tour, find out cheap flights, local
transport hubs, eating joints, and destination attractions.

The apps enhance the tourist experience before, during, and after the tour.

Today, the large tour operators invest finances to create their own mobile apps. They are inclined
to use as less papers as they can and prefer to send pdf documents of itinerary to their customers
and insurance documents to insurance service providing clients. They also use most of the apps
the tourists use; plus, they highly rely on some apps such as Trafalgar app, Passport to
Tourapp, trap app, which can connect them with the tourists on the trip, track the itinerary, and
get on-the-fly information of the tour.

Since technology is making tour operators reach their customers and clients at the speed of light,
the tour operators use it for promoting their business and various products, increasing their brand

36
awareness, knowing tourists’ preferences, and providing easy access to their products and
services.

IMPACT OF TOURISM IN INDIA

Tourism industry in India has several positive and negative impacts on the economy and society.
These impacts are highlighted below.

POSITIVE IMPACTS

1. Generating Income and Employment: Tourism in India has emerged as an

instrument of income and employment generation, poverty alleviation and
sustainable human development. It contributes 6.23% to the national GDP and
8.78% of the total employment in India. Almost 20 million people are now
working in the India’s tourism industry.

2. Source of Foreign Exchange Earnings: Tourism is an important source of

foreign exchange earnings in India. This has favorable impact on the balance of
payment of the country. The tourism industry in India generated about US$100
billion in 2008 and that is expected to increase to US$275.5 billion by 2018 at a
9.4% annual growth rate.

3. Preservation of National Heritage and Environment: Tourism helps preserve

several places which are of historical importance by declaring them as heritage
sites. For instance, the Taj Mahal, the Qutab Minar, Ajanta and Ellora temples,
etc, would have been decayed and destroyed had it not been for the efforts taken
by Tourism Department to preserve them. Likewise, tourism also helps in
conserving the natural habitats of many endangered species.

4. Developing Infrastructure: Tourism tends to encourage the development of

multiple-use infrastructure that benefits the host community, including various
means of transports, health care facilities, and sports centers, in addition to the
hotels and high-end restaurants that cater to foreign visitors. The development of

37
 infrastructure has in turn induced the development of other directly productive
activities.

5. Promoting Peace and Stability: Honey and Gilpin (2009) suggests that the
tourism industry can also help promote peace and stability in developing country
like India by providing jobs, generating income, diversifying the economy,
protecting the environment, and promoting cross-cultural awareness. However,
key challenges like adoption of regulatory frameworks, mechanisms to reduce
crime and corruption, etc, must be addressed if peace-enhancing benefits from
this industry are to be realized.

NEGATIVE IMPACTS

1. Undesirable Social and Cultural Change: Tourism sometimes led to the destruction of
the social fabric of a community. The more tourists coming into a place, the more the
perceived risk of that place losing its identity. A good example is Goa. From the late 60's
to the early 80's when the Hippy culture was at its height, Goa was a haven for such
hippies. Here they came in thousands and changed the whole culture of the state leading
to a rise in the use of drugs, prostitution and human trafficking. This had a ripple effect
on the country.

2. Increase Tension and Hostility: Tourism can increase tension, hostility, and suspicion
between the tourists and the local communities when there is no respect and
understanding for each other’s culture and way of life. This may further lead to violence
and other crimes committed against the tourists. The recent crime committed against
Russian tourist inGoa is a case in point.

3. Creating a Sense of Antipathy: Tourism brought little benefit to the local community.
In most all-inclusive package tours more than 80% of travelers’ fees go to the airlines,
hotels and other international companies, not to local businessmen and workers.
Moreover, large hotel chain restaurants often import food to satisfy foreign visitors and
rarely employ local staff for senior management positions, preventing local farmers and
workers from reaping the benefit of their presence. This has often created a sense of
antipathy towards the tourists and the government.

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 4. . Adverse Effects on Environment and Ecology: One of the most important adverse
effects of tourism on the environment is increased pressure on the carrying capacity of
the ecosystem in each tourist locality. Increased transport and construction activities led
to large scale deforestation and destabilisation of natural landforms, while increased
tourist flow led to increase in solid waste dumping as well as depletion of water and fuel
resources. Flow of tourists to ecologically sensitive areas resulted in destruction of rare
and endangered species due to trampling, killing, disturbance of breeding habitats. Noise
pollution from vehicles and public address systems, water pollution, vehicular emissions,
untreated sewage, etc. also have direct effects on bio-diversity, ambient environment and
general profile of tourist spots.

❖ Socio-economic factors
Four important socio-economic factors that influence the development of tourism:

1. Accessibility : Of all socio-economic factors, accessibility is the most important

one. All tourist centers must be easily accessible by various modes of transportation like
roads, railways, air and water. To enjoy nature's beautiful sites seeing traveling by roads
and railways is a better option. If a tourist plans to reach a remote tour-destination in the
quickest possible time, then airway is the most suitable choice. Generally, waterways are
seldom selected unless a tourist decides to enjoy a luxury cruise experience in sea and/or
interested to visit an isolated archipelago.
2. Accommodation : Places of tourists' interest must be capable enough to provide
good accommodation and catering facilities. A type of accommodation required by
tourists depends on their lives-styles, standard of living, capacity to spend money, nature
of services expected, etc. Classification of accommodation centers (i.e. various hotels,
motels, dormitories, etc.) on basic of rating like five stars and below are essential so that
tourists can make a proper choice and plan their trips appropriately. Generally, tourism
mostly prospers in those areas where good lodging and food facilities are available at
reasonable prices.
3. Amenities : Growth of tourism at a particular place is also influenced crucial
factors like; how well the site is maintained for touring activities like skiing, roping,

39
 paragliding, rowing, fishing, surfing, safari adventure, etc. Whether emergency facilities
are available or not, so on.
4. Ancillary services : If a tour destination is equipped by ancillary (supplementary)
services like banking and finance, the Internet and telecom connectivity, hospitals,
insurance, so on, then such a place succeeds to hold (retain) more tourists for a longer
time. This overall helps to boost the local economy to some extend.

❖ Historical and cultural factors

Many tourists are attracted to places of historical significance and that which have a legacy of
rich cultural heritage. People love and enjoy exploring destinations where there are famous
ancient monuments, marvelous forts, castles and palaces of earlier kings and queens, etc.

Examples of places that are famous throughout the world for their historical and cultural
accounts are; Taj Mahal in India, Nazca lines and Machu Picchu in Peru, Pyramid of Giza in
Egypt, Great wall of China and Stonehenge in England.

❖ Religious factors

People often make pilgrims to places of religious importance to seek inner peace, get blessing of
their favorite deities and gurus, attain salvation before death, etc. Here, faiths, beliefs and
sentiments of people contribute in booming tourism at holy places.

Examples of places that are well-known for their religious significance are Jerusalem in Israel,
Mecca and Medina in Saudi Arabia, Varanasi and Amritsar in India, etc.

❖ Other factors

Sometimes other factors also contribute toward growth of tourism at unexpected places.For
example, UFO crash site in Roswell, New Mexico (USA) attracts many tourists from around the
world.

40
Research activities and adventures of deep seas and caves, geological studies of hot-water
springs and geysers, seismic analysis of active volcanoes, investigation of paranormal-activities
in abandoned ghost towns, etc. also contribute in developing tourism on some scale.

So, these are some of the main factors influencing the growth of tourism.

❖ ENVIRONMENT

The tourism industry in India can have several positive and negative impact on the environment
which are discuss below.

➢ POSITIVE IMPACTS

1. Direct Financial Contributions

Tourism can contribute directly to the conservation of sensitive areas and habitat.
Revenue from park-entrance fees and similar sources can be allocated specifically to pay
for the protection and management of environmentally sensitive areas. Special fees for
park operations or conservation activities can be collected from tourists or tour operators.

2. Contributions to Government Revenues

The Indian government through the tourism department also collect money in more far-
reaching and indirect ways that are not linked to specific parks or conservation areas.
User fees, income taxes, taxes on sales or rental of recreation equipment, and license fees
for activities such as rafting and fishing can provide governments with the funds needed
to manage natural resources. Such funds can be used for overall conservation programs
and activities, such as park ranger salaries and park maintenance.

3. Improved Environmental Management and Planning

Sound environmental management of tourism facilities and especially hotels can increase
the benefits to natural environment. By planning early for tourism development,
damaging and expensive mistakes can be prevented, avoiding the gradual deterioration of
environmental assets significant to tourism. The development of tourism has moved the
Indian government towards this direction leading to improved environmental
management.

41
 4. Raising Environmental Awareness

Tourism has the potential to increase public appreciation of the environment and to spread
awareness of environmental problems when it brings people into closer contact with nature and
the environment. This confrontation heightens awareness of the value of nature among the
community and lead to environmentally conscious behavior and activities to preserve the
environment.

5. Protection and Preservation of Environment

Tourism can significantly contribute to environmental protection, conservation and restoration of

biological diversity and sustainable use of natural resources. Because of their attractiveness,
pristine sites and natural areas are identified as valuable and the need to keep the attraction alive
can lead to creation of national parks and wildlife parks.

In India, new laws and regulations have been enacted to preserve the forest and to protect native
species. The coral reefs around the coastal areas and the marine life that depend on them for
survival are also protected.

➢ Negative Impacts

1) . Depletion of Natural Resources: Tourism development can put pressure on natural

resources when it increases consumption in areas where resources are already scarce.

I. Water resources: Water, especially fresh water, is one of the most critical natural
resources. The tourism industry generally overuses water resources for hotels, swimming
pools, golf courses and personal use of water by tourists. This can result in water
shortages and degradation of water supplies, as well as generating a greater volume of
waste water. (www.gdrc.org/uem/eco-tour/envi/index.html). In dryer regions like
Rajasthan, the issue of water scarcity is of particular concern.

II. Local resources: Tourism can create great pressure on local resources like energy, food,
and other raw materials that may already be in short supply. Greater extraction and
transport of these resources exacerbates the physical impacts associated with their
exploitation. Because of the seasonal character of the industry, many destinations have
ten times more inhabitants in the high season as in the low season. A high demand is

42
 placed upon these resources to meet the high expectations tourists often have (proper
heating, hot water, etc.).

III. Land degradation: Important land resources include minerals, fossil fuels, fertile soil,
forests, wetland and wildlife. Increased construction of tourism and recreational facilities
has increased the pressure on these resources and on scenic landscapes. Direct impact on
natural resources, both renewable and nonrenewable, in the provision of tourist facilities
is caused by the use of land for accommodation and other infrastructure provision, and
the use of building materials (www.gdrc.org/uem/eco-tour/envi/index.html)

Forests often suffer negative impacts of tourism in the form of deforestation caused by fuel wood
collection and land clearing e.g. the trekking in the Himalayan region, Sikkim and Assam

Reasons for growth in Tourism:

• Better/Quicker Air Travel- Making Previously Remote areas accessible.

• More Paid Holidays- People tend to take many small holidays rather than one big one.

• Increase in amount of Disposable income- People can afford to treat them.

• Awareness of attractions- People are becoming more aware of travel from travel shows
and advertising.

•2 working parents

• Smaller families

• Longer life expectancy

• Cheaper/ Easier Travel

• Internet booking/advertising

• More unusual tourist destinations and attractions/destinations

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Future of Tourism

It is quite obvious that tomorrow’s tourists and tour operators will tend to rely more on
technology. With the introduction of the next generation apps and online services, tourism is
going to get further accessible and enjoyable.

According to Ari Steinbuerg, the founder of a travel startup Vamo, the tourists will tend to spend
less time planning in advance. Efficient booking services and apps will enable the tourists to
create versatile itineraries with reasonable price. Future tourists would not prefer to be confined
to packaged tours. With the availability of large number of options, the tourists would prefer to
realize every possible wish regarding tourism.

With more flight connectivity, travelling modes and accommodations introducing more comfort,
technology helping mankind progressively, the tourism will continue to bring momentum in its
sector.

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 Chapter 5
The Effect of COVID-19 Lockdown on Indian Tourism

45
Corona virus that causes cold and seasonal flu, which was earlier been Severe Acute Respiratory
Syndrome (SARS) and Middle Eastern Respiratory Syndrome (MERS). This was first detected
in Wuhan, China, which was said to be spread out from bats. The outbreaks announced by WHO
on 30 January 2020 as Public Health Emergency of International Concern. Lockdown and self-
isolation were the only way identified to control the spread of the virus and to break the chain the
step taken by the world countries. The same thing happened in India, and was put on lockdown.
The lockdown, in turn, had a drastic impact on the country's economy, as it stopped money
circulation. Tourism and hospitality were among the industries most affected. This research was
undertaken to examine the pandemic situation of India and its effects on tourism, hospitality, and
food services.

Indian Tourism Industry

India is a vast market for travel and tourism. It offers a heterogeneous portfolio of niche tourism
products – cruises, adventure, medical, wellness, sports, eco-tourism, film, rural and religious
tourism. India has been identified as a destination for sacred tourism for domestic and
international tourists. In recent years, India had experienced exponential growth in travel and
tourism aided by different kinds of travel.

Tourism sector in India generates significant revenue for the Indian economy besides
contributing to the global output. Before the onset of the pandemic, the sector was growing
rapidly as it supports a large employment base and rakes in huge profits. Today, the country has
many preferred destinations for both domestic and international travelers.

The World Travel and Tourism Council (WTTC) reported that the tourism in India generated
Rs.16.91 lakh crore or 9.2% of India’s GDP in 2018 and supported 42.673million jobs, which is
8.1% of its total employment. According to the WTTC, India has ranked 3rd among 185
countries in terms of travel and tourism’s total contribution to GDP in 2018.

Effect of Covid-19 on Tourism and Sector of India

46
The tourism sector adds to India's GDP by 9 per cent. India's aviation, tourism and hospitality
industry sustained highest damage from Covid-19 outbreak1. The industry comprises of hotels,
restaurants, tour agencies, food and beverage outlets, transportation, etc2. Indian tourism
industry is projected to suffer a loss of 125 trillion in 2020 along with a potential loss of around
38 million, that is, 70% of the overall workforce3. Relative to last year, the tourism income in
the country may be declined in 2020. The outbreak of the corona virus triggered global recession
by 20204. There is a sense of fear among people that foreign tourists could be carriers of viruses
because the virus came from aboard to India5. Through an economic standpoint, the ban of
traveling and closure of industrial units leads to a reduction in jobs and production6. Neither can
all roads be opened in rural areas or new tourism trails be built7. Moreover, the Indian medical
tourism that was estimated to be at $28 billion by 2020 was disrupted due to the spread of virus8.
The main reason behind all this was the spread of virus that can be restrained only by social-
distancing and thus the affected countries decided on lockdown of the nation.

Pandemic Situation in India

As of January 30th, 2020, corona virus struck India and the cases are growing day by day. Day
one started with one case and the latest trend is increasing day after day by more than 10000
cases. The total cases in the country is 366946 with cumulative deaths of 12237 as on 18th June
2020 . This makes India gradually climb up the ladder to position 4 in the global table of Covid-
19 affected countries.

47
Effect of Covid-19 on Tourism Revenue of India

In a situation where tourism contributes to the country's GDP, it's faced decline due to the
pandemic. Tour operators and travel agencies would face a financial crunch as tourists visit
India12. Tourism revenue of the country has been reduced drastically .Both aspects of tourism
were impacted by the stoppage of the tourist

traffic to take control of the

transmission of Corona Virus. As a result of decline in tourist arrivals so does the tourism
revenue according to Tourism Revenue of India: Department of Tourism, India after January
2020, the tourism revenue has dropped down lesser than 50000 INR million.

Suggestions to Mitigate the Impact of COVID-19 on Tourism Sector:

• Government Intervention
The Ministry of Tourism and Ministry of Finance need to work jointly to resolve issues in the
tourism sector regarding the payment of salaries and liquidity shortages. Providing a moratorium
on term loans and value added tax (VAT) exemptions could also help ease the financial burden
on those struggling with poor business activity. The Government can also set up Employee
Provident Fund (EPF) and Employee State Insurance (EPF) measures, if they haven't been done
so already. In countries like Croatia, Greece and Austria, similar relief measures have been
introduced.

48
 • National Role
Governments across the world have used empty rooms in hotels as backup options for extra bed
capacity, by paying a small fee to hotels. This went a small way in helping these hospitality
companies manage their finances.

• Incentives and Subsidies

Action should be taken to promote tourism both at domestic and international level by providing
incentives and subsidies to tour operators.

• Re-engineering Business Model

The hospitality sector, in addition to relying on government interventions, should focus on
improvising its business model given the impending changes in people's social behaviour vis-a-
vis social distancing and hesitation to travel far distances. Investing in safety and hygiene would
reassure customers in availing their services. For example, the idea of emptying the middle seats
or alternate rows of airplanes and other modes of transport is a welcome step. Higher focus on
the use of cashless payment methods and contactless food deliveries is an effective strategy to
win the trust of customers.

• Concept of Travel Bubbles

Amidst the economic downturn, governments across the world are considering the idea of a
“travel bubble” to revitalise their tourism sectors. “Travel bubbles” are an agreement between
countries or regions within a country that allows for travel across borders for non-essential trips
without the requirement of a 14-day quarantine upon arrival. The goal is to create safe passage
for travel in an attempt to normalise economic activity.

• Digital Solutions
Virtual tourism experiences of various historical places, museums and other tourist attractions
offer a novel digital solution. Such measures will boost the confidence of tourist operators and
tourist guides, while also incentivising users of such platforms to travel when the pandemic

49
subsides. For instance, BSocial is a travel company that launched an app named “Experience
Makkah" for virtual Hajj pilgrimages. Companies like and Beyond, Singita, Lewa Wildlife etc
have begun rolling out “virtual safaris” on social media. And the response has been
overwhelming.

• Web Portals
India can develop an application or web page through which frequent updates are shared
regarding the business and economic situation to those engaged in the hospitality industry. They
could serve as the first point of contact when the economy is finally reopened for tourists.

All in all, there is a critical need to adopt tourism policy based on a customer-centric scientific
approach by maximizing the utilization of technology and integrating this with the governmental
approach so that relief measures are consistent. By aligning the policies of the Government with
those specific to the tourism industry, this can not only safeguard numerous jobs but also make
recovery more

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 Questionnaire:-

1. Demographics :-
A) Name :-
B) Age :-
C) Gender :-
D) Contact No :-
E) E-Mail Id :-
F) Designation :-

Surveyed Questionnaires :-

2. Under which range would you like to travel within country?

A) 5000-10,000 ( ) B) 10,000-15000 ( )
C) 15,000-20,000 ( ) D) Above 20,000 ( )

3. The following mode of transport is provided by our company ?

A) Bus ( ) B) Railways ( )

C) Flight ( ) D) Ship ( )

4. The types of hotel provided by our company ?

A) Luxury and High-End Hotels ( ) B) Eco hotel ( )

C) Apartment hotel ( ) D) Others (please mention)

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 5. Where do you want to go most often from the packages that is provided by our
company ?

A) Hill stations ( ) B) Historical places ( )

C) Deserts ( ) D) Other (please mention)

6. With whom, do you travel most often?

A) Family ( ) B) Friends ( )

C) Colleagues ( ) D) Alone ( )

7. What is the most common type purpose of your travel?

A) Family Vacation ( ) B) Adventure ( )

C) Business ( ) D) Others (please mention)

8. The following duration of trip is provided by our company :

India : Min. (2-3days) Max. (A Month)

International : Min. (One week) Max.(A Month-More Then A Month )

9. Do you wish to go for a world tour?

A) Yes ( ) B) No ( )

10. What things do you consider before choosing a holiday destination?

A) Weather ( ) B) Budget ( )

C) Distance ( ) D) Others (please mention)

11. The following option provided by our company ?

A) By internet ( ) B) Travel agents ( )

C) Telephone ( ) D) Others (please mention)

12. What are your main activities on holiday?

A) Relaxing/Spa ( ) B) Sightseeing ( )

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C) Sports activity ( ) D) Others (please mention)

13. How many time in a year would you like to travel?

A) 1 time ( ) B) 2-3 time ( )

C) 4-5 time ( ) D) More than 5 time

14. When you want to travel, how do you research on it?

A) Ask a friend/colleague/family member B) Find out area reputation

C) Read online reviews D) Other

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Conclusions

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Tourism helps a country’s economy in a various ways. Tourism is a service industry and can
have a significant effect on those countries with surplus labour .To this service industry human
labour is extremely important, most sector of tourism industry are labour- intensive, and require
relatively short training for most jobs. Jobs in tourism were always attractive and high-ly
respected. It is a composite sector, generating income in a large number of activities as sectors
and sub sectors like, hotel and other accommodation units, travel agents and tour operator
transport services, tourist resorts and complexes, shopping facilities including sales outlets for
curious, handicrafts, souvenirs, and so on. The tourism sector is often criticized for providing
only low-wage, seasonal employment, but it has to be obvious that if there were no tourism many
workers in India would be unemployed. Tourism in India should be developed in such a way that
it accommodates and entertains visitors in a way that is minimally intrusive or destructive to the
environment and sustains & supports the native cultures in the locations it is operating in.
Moreover, since tourism is a multi-dimensional activity, and basically a service industry, it
would be necessary that all wings of the Central and State governments, private sector and
voluntary organisations become active partners in the endeavour to attain sustainable growth in
tourism if India is to become a world player in the tourism industry. As the world faces its
biggest pandemic in a century, almost all the sectors of the economy are hit and will take a long
time to recover. The tourism sector lookout will really depend on how rapid this virus spreads, or
how it is contained. If the virus starts subsiding in the third and fourth quarter this year, we can
predict that the tourism sector will recover partially in 2021, but will take a long time to recover
completely. The tourism sector is driven by the psychology of people and is very sensitive to
safety and security aspects. Companies have to regain the trust of people in the recovery period
to travel again after the pandemic and thus it would be a challenging task. Unlike other business

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sectors, tourism will take a longer time to return to normalcy in the recovery period because
tourists need to ensure that the situation is really safe and secure before they step out to travel
again. To assist the tourism sector recover quickly after the pandemic, several actions must be
carried out such as disinfecting major tourist destinations, including hotels, in order to regain
people’s trust that tourist destinations and accommodations are all safe from Covid-19.

Bibliography

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Internet:

http://www.webpodia.com

http://www.socialtrensorg.com

http://www.tourism

http://www.govtourismpolicy

http://www.covidtourism

http://www.tourismrevenue

Journal:

• Times of India
• Economics times

Magazine

• Business Times
• Travel-Leisure

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• Today’s Traveller’s

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