TRAVEL AND TOURISM

Presented By:
Keyur Kapadia -A009
Harsh Kandoi -A012
Raj Hadvani -A022
Priyesh Chheda -A033
Paridhi Agrawal -A038
 OVERVIEW
• Total outbound trips increased by 8.7 per cent to 19.9 million in 2015
• Inbound tourist volume grew at a Compound Annual Growth Rate (CAGR)
of 6.8 per cent during 2010-15
• Foreign Tourist Arrivals (FTAs) in India increased 11.8 per cent in 2016
• Online hotel bookings in India are expected to double by 2016 due to the
increasing penetration of the internet and smart phones
• The industry is expected to generate 13.45 million jobs across sub-
segments such as:
 Restaurants (10.49 million jobs),
 Hotels (2.3 million jobs) and
 Travel Agents/Tour Operators (0.66 million).
 PORTER’S FIVE FORCE MODEL

Threats from New Entrants

Bargaining Power of Suppliers Industry Rivalry Bargaining Power of Buyers

Threats from Substitutes

 FACTORS AFFECTING TOURISM
INDUSTRY
• Political Factors- Religious intolerance, relations with neighboring
countries, lack of international representation, govt. incentives to Hotels.
• Economic factors-Per capita income, disposable income, exchange rate
• Social factors- Festivals throughout the years, exhibition, aspiration to
travel the world, increasing propensity to spend, pursue education abroad
• Technological factors- growth of e-tourism, VR, Skype and face Time
 IFE Matrix
Key External Factors Weight Rating Weighted Score

Strength

• Festivals 0.30 3 0.9

• Historical monuments 0.30 4 1.2

• Natural and cultural diversity 0.30 3 0.9

Weakness
• Perception about Indians 0.15 2 0.3
• Safety and security 0.25 3 0.75
 EFE Matrix
Key External Factors Weight Rating Weighted Score

Opportunities

• Tie-ups with country for visa on arrival 0.10 3 0.30

• growth rate of 7.5% 0.05 3 0.15

• top 5 in medical tourism 0.15 4 0.60

• weaker currency against dollar, euro and 0.28 2 0.56

pound
Threats
• political unrest 0.25 1 0.25
• Increasing crime rate 0.17 3 0.51
 BUSINESS CANVAS MODEL
KEY KEY VALUE CUSTOMER CUSTOMER
PARTNERS ACTIVITIES PROPOSITION RELATIONSHIPS SEGMENTS

• Personal
• Hotels and • Sales • Customization assitance, • Students
restaurants • CRM • Off – season • Security, • Travellers
• Insurance • Marketing offering • Rewards, • Rotary clubs
providers • Customization • Add on services • Membership, • Researchers
Payment (insurance, pick • 24*7 customer • Business people
providers up) care
• Education centers • Destination-
• Suppliers specific
• Website company
KEY RESOURCES (monopoly)
CHANNELS
• Social media
• Transportation
• Skilled • Website
partners
employees • Cold Calling
• Brand name • Offices
• Affiliations
COST STRUCTURE REVENUE STREAMS
Salaries and Rent, Sales
Website maintenance fees, Commissions
Marketing, sponsorship, Membership fee
CRM services, Commissions, Advertisements on websites
Off-season discount, R&D
 GOVERNMENT INITIATIVE
• The Union Cabinet has approved a MoU between India and South Africa
aimed at expanding bilateral cooperation
• The Ministry of Tourism revise guidelines to exempt homestays from service
tax or commercial levies
• The Union Cabinet approved the signing of MoU between the Ministry of
Tourism of India and the Ministry of Trade Industry and Tourism of
Colombia
• The Central Government has approved for signing of a MoU between India
and Cambodia
• 8 missions cities including Varanasi, Mathura, Ajmer, Dwaraka, Badami,
Vellankini, Warangal and Amaravati have been approved by HRIDAY
National Empowered Committee for a total cost of Rs 431 crore (US$ 64.27
million).
• ‘Project Mausam’ the GoI has proposed to establish cross cultural linkages.
 IMPACT OF GST
• FAITH has sought amendments to the draft GST law that include making
an exception for T&H businesses, and classifying them under 6-8 per cent
tax slab as some other countries do.
• The GST, once implemented, is expected to rationalize indirect tax
structure and usher in seamless tax credit
• Indirect taxation is very high in India i.e., range of 18-25% compared to
2-5% in global markets where GST has been introduced.
 RECOMMENDATION
• Projection of India’s image as a safe and secure tourist destination
• Infrastructural development
• Inclusive growth
• Development of tourism destinations
• Attract private investment
• Human resource development
 REASONS TO INVEST
• The presence of world-class hospitals and skilled medical professionals
make India a preferred destination for medical tourism.
• The e-Tourist Visa facility has now been increased for travelers of 150
countries.
• An investment-linked deduction under Section 35 AD of the Income Tax
Act is in place for establishing new hotels in the 2-star category and
above across India.
• To develop and enhance tourist infrastructure a provision of USD 108.67
million is made for developing Swadesh Darshan (13 Theme based Tourist
circuits) and USD 15.38 million for Pilgrimage Rejuvenation and
Spirituality Augmentation Drive (PRASAD) for Beautification of
Pilgrimage Centers.
• India is 15th in the world in terms of International Tourism Receipts with
a share of 1.62% of the world's tourism receipts
 BIBLIOGRAPHY
• http://www.gstindia.com/hospitality-and-tourism-industry-asks-for-6-8-
per-cent-levy-under-gst/
• http://www.ibef.org/industry/tourism-hospitality-india/showcase
• http://www.gstindia.com/tag/tourism/
• http://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Doc
uments/KPMG-CII-Travel-Tourism-sector-Report.pdf