A Report

On
Tourism industry in India
By
Boda Nithin Goud
Enrollment number:20FMUCHH010093
ICFAI Business School, Hyderabad
A Report
On
Tourism industry in india
By
Boda Nithin Goud
Enrollment number:20FMUCHH010093
ICFAI Business School,Hyderabad

A report submitted in partial fulfillment

Of
The requirements of
BBA program of
IBS Hyderabad

Distribution list:
1.aruna m (faculty driven project)

Date of submission:29th July,2021

Abstract:

Tourism is a very well known word from last many decades. Tourism is the
world's most rapidly growing industry all over the world .India has lots of
natural , historical ,cultural resources with an immense amount of fascinating
mountains, seas and deserts . 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$272.5 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. Based on the importance
of Indian Tourism ,an attempt is made in this paper to assess the tourism
development in India . The report identifies and assesses the range of issues and
problems, which are serving either to help or hinder tourism development. It
suggests necessary actions for facilitating the accelerated development of
tourism in India. The report also analyses the countries' tourism development
policies and new arena of the tourism industry.

Introduction:
Tourism is an integral part of human life. It is a situation where person from one
country, or region to other region and country for a short run period, is included
in the concept of tourism. Now-a-days the tourism industry has a greater
importance. India has a great heritage of historical place like the Taj Mahal,
Various Forts, Natural sites etc. Since 2000 tourism industry has been giving
number of benefits to India.
The number of foreign tourists visited to India which has given foreign
exchange earning to the Country.
Here, we have focused the growth and performance of the Indian tourism
industry. We have also done the causal analysis of the Indian tourism industry
for overall development of the Indian economy. National tourism policy 2002
and its implications are important in this context.
Tourism Industry in India
India's visitor-friendly tradions as summed up by the phrase 'Athi Devo Bhava', varied life
styles and cultural heritage, and colourful fairs and fesvals have always held abiding aracons
for the tourists. Tourism is an incredible way to showcase India's rich and magnificent
history, culture and diversity, while simultaneously reaping substanal economic benefits. The
sector provides substanal employment and leads to considerable foreign exchange earnings.
CONTRIBUTION OF TOURISM TO THE INDIAN ECONOMY
The importance of tourism industry can't be overemphasised in a growing economy like
India. The significance of the tourism sector is evident from its contribuon to the output,
employment, investment and exports.
According to the WTTC Report, the total contribution of travel and tourism to India's GDP
was Rs. 15,239.6 billion (approximately USD 234.0 billion) which was nearly 9.4 per cent of
GDP in 2017. Contribution of the travel and tourism sector to India's GDP is forecast to
increase by 7.5 per cent in 2018, and by 6.9 per cent per annum during the 2018-2028 period.
As a result of this increase in the contribution of this sector, its share in India's GDP is
expected to reach 9.9 per cent in 2028.
Visitor exports are a key component of the direct contribution of travel and tourism. Visitor
exports amounted to USD 27.3 billion in 2017, accounting for 5.8 per cent of total exports of
goods and services during the year. In 2018, visitor exports is expected to grow by 8.8 per
cent, and the country is expected to aract more than 18 million international tourist arrivals.
By 2028, international tourist arrivals are forecast to cross the 30 million mark.
Travel and tourism also leads to substantial job creation in the country. The sector generated
nearly 8 Indian Tourism Industry : Exploring Opportunities for Enhancing Growth per cent of
total employment in 2017. Roughly 26 million jobs or 5.0 per cent of total employment was
created by the tourism sector directly in 2017. Overall jobs supported by the sector is
expected to increase from the present level of 41.6 million to 52.3 million by 2028.
Travel and Tourism also led to nearly USD 41.6 billion of capital investments in 2017 which
was 6.3 per cent of total investment in the country. Hospitality majors, such as Taj and
Shangri-La, are entering into e ups to penetrate deeper into the market. They have entered
into strategic alliances to improve their reach and market share, as also launched loyalty
programme aimed at integrating rewarded customers of both hotels.
Capital investment aracted by the sector is expected to rise by 6.7 per cent in 2018, and
further by 6.7 per cent per annum during 2018 – 2028. This increase in capital investment is
expected to change the share of travel and tourism in total investments from 6.3 per cent in
2018 to 6.1 per cent in 2028
A comparative analysis of the growth rate of the industry across various macro-economic
parameters in India, South Asia and the World presents a promising picture. The expected
Indian growth rate for capital investment, visitor exports, direct contribution to GDP and
employment in the travel and tourism sector during 2018, adjusted for inflation was higher or
equal to that of South Asia and the global average. The growth rate for visitor exports for
India is expected to be 8.8 per cent, while that for South Asia stands at 7.7 per cent and
theglobal figure at 3.9 per cent. It is noteworthy, however, that even though the expected
growth figures are promising, the absolute values of these parameters for India sll has a lot of
catching up to do, especially when compared to countries like China and Thailand.In India,
the Central Government and State Government have announced separate tourism policy
concern to their state time to time. Tamilnadu, UP, Andra Pradesh, Karnataka, Maharashtra,
MP, Kerala, Rajastan, Gujarat and West Bengal are the important states where tourisim
industry has developed. Due to the increasing importance of tourism sector Seventh five
year plan of the Government of India hasannocunced the tourism sector as industry. The
first public milestone in the history of the Indian tourism sector is the establishment of Indian
Tourism Development Corporation (ITDC) in 1966.On the Basis of this, majority of the
states have given the facilities through ITDC separately .
The first Ttourism policy was announced in 1982 in India. This policy was launched for the
action plan for the tourists’ arrival and necessory facilities to provide them. These
facilities are includes altramodern facilities of accomodation, hotels and meanas of
transport etc. The efforts was made to provide these facilities as a cooperative ventures to
collect maximum earnings from domastic and foreign toruistsarriveles in India. The
government of India has oppointed Committee on National Tourism in 1988. This committee
has focoused on public sector to develop tourism sector in India. The committee has
recommanded to prepare a plan for Tourism development in each state. The committee also
suggested to the states to make the provision of fiscal and monetory incentives along with
enviornmental protection. Since 1991 the Central Government has revised the action plan for
the development of Tourism industry in country. This plan is mainly focused for increaseing
employment opportunities, preservation of national heritage and environment and the
development of international Tourism for the optimization of foreign earinings. This policy
has also desided to enhance India’s share in world Tourism from 0.4% to 1% within the five
years.
The important features of National Tourism Policy 2002 are as follows;
1.Tourism is an important tool for employment generation, economic
development and rural tranformation in India
2.To take advantage of global trade transction through traval and tourism
3.This policy is based on seven key indicators of tourism development. Theseindicators are i)
welcome ii) information iii) facilitation iv) seaftyness v) Co-operation vi)
insfrastructural development vii) cleanliness
4.To use human resource, natural resources and technical resources for sustainable
development
5.To use labour intensive technique in tourism sector for employment generation and
upgradation of quality of life.
6.To focus on rural areas for low cost programmes related to tourism centers
7.To create forward and backward linkages in the tourism sector for overall development
8.To increase the foreign earnings through export of tourism services
9.To promote understanding, peace and to contribute national unity and regional stability
10.To develop shopingcenters for the revienue generation and other rural tourism products
Statistics

Top 10 Source Countries for Foreign Tourist Arrivals (FTAs) in India in 2019

S. No Source Country FTAs (in Million) Percentage (%) Share

1 Bangladesh 2,256,675 21.49

2 United States 1,456,678 13.80

3 United Kingdom 1,029,758 9.75

4 Sri Lanka 353,684 3.35

5 Canada 351,040 3.32

6 Australia 346,486 3.28

7 Malaysia 319,172 3.02

8 China 281,768 2.67

9 Germany 274,087 2.60

10 Russian Federation 262,309 2.48

Total 6,931,657 65.5

Others 3,626,272 34.35

Grand Total 10,557,929 100.00

Types of tourism:
Adventure tourism
As a kind of tourism in India, adventure tourism has recently grown in India. This involves
exploration of remote areas and exotic locales and engaging in various activities. For
adventure tourism in India, tourists prefer to go for trekking to places like Ladakh, Sikkim,
and Himalaya. Himachal Pradesh and Jammu and Kashmir are popular for the skiing
facilities they offer. Whitewater rafting is also catching on in India and tourists flock to
places such as Uttranchal, Assam, and Arunachal Pradesh for this adrenalin-packed activity.
Beach Tourism
India’s vast coastline and islands provides ample opportunities for fun packed
tourism. Kerala, Goa, Andaman & Nicobar Islands, Lakshadweep islands attract tourists in
large numbers all around the year.
Cultural tourism
India is known for its rich cultural heritage and an element of mysticism, which is why
tourists come to India to experience it for themselves. The various fairs and festivals that
tourists can visit in India are the Pushkar fair (Rajasthan), Taj Mahotsav (Uttar Pradesh), and
Suraj Kund mela (Haryana). Sites like Ajanta & Ellora caves (Maharshtra), Mahabalipuram
(TamilNadu), Hampi (Karnataka), Taj Mahal (Uttar Pradesh), Hawa Mahal (Rajasthan).
Eco tourism
Among the types of tourism in India, ecotourism have grown recently. Ecotourism entails the
sustainable preservation of a naturally endowed area or region. This is becoming more and
more significant for the ecological development of all regions that have tourist value. For
ecotourism in India, tourists can go to places such as Kaziranga National Park (Assam), Gir
National Park (Gujarat), and Kanha National Park (Madhya Pradesh).
Medical tourism
Tourists from all over the world have been thronging India to avail themselves of cost-
effective but superior quality healthcare in terms of surgical procedures and general medical
attention. There are several medical institutes in the country that cater to foreign patients and
impart top-quality healthcare at a fraction of what it would have cost in developed nations
such as USA and UK. The city of Chennai (Tamil Nadu) attracts around 45% of medical
tourists from foreign countries.
Wildlife tourism
India has a rich forest cover which has some beautiful and exotic species of wildlife – some
of which that are even endangered and very rare. This has boosted wildlife tourism in India.
The places where a foreign tourist can go for wildlife tourism in India are the Sariska
Wildlife Sanctuary, Keoladeo Ghana National Park (Rajasthan), and Corbett National Park
(Uttarakhand).

Film Tourism
In an endeavor to establish India as a filming destination, the Ministry of Tourism will
promote the Cinema of India as a sub-brand of Incredible India. International Film Festivals
like  IFFI  Goa, European Film Market, Cannes Film festival will be held in India in the
future.

Sustainable Tourism

Sustainable Tourism includes approval and classification of hotels to the expected standards
for different classes of tourists. This system will rate hotels from one star to five star and
Heritage and Classic etc.

Cruise Tourism

Cruises are one of the most dynamic and fastest-growing components of the leisure industry
in India. Cruises tourism is the new marketable product for India to explore the beautiful
coastline, undisturbed idyllic islands, and virgin forests.

The coastline and inland waterways of India has the potential to develop cruise or boathouse
tourism. The 8 tourist Cruise circuits in India will include Ocean Cruise, River Cruise, and
Lake Cruise.

Wellness Tourism

Wellness Tourism includes travel for a less stressful lifestyle, promoting a healthier, and
finding balance in one’s life. Ayurveda, Yoga, meditation, Panchakarma, Rejuvenation
Therapy are among the most ancient systems of medical treatment in India and the best way
to promote Wellness Tourism.

Golf Tourism

India has several golf courses of international standards and as the sports tourism in India is
gaining interest, Ministry of Tourism is creating a comprehensive and coordinated framework
for promoting golf tourism in India.

Polo Tourism

The game of Polo is originated in India and still preserved and practiced in Kolkata Polo
Club, the oldest Polo club in the world. Polo can be listed as Heritage Sports of India.

Advertisement campaigns

In this hectic world, traveling has become a great stress relieving activity. Many companies
have set up in the metro cities that guide people how and where to travel. Travel and tourism
are also very important because it brings an experience of different cultures and the type of
people that live in our country. Government is trying to promote tourism from many years. In
order to attract new visitors in different states, most of the states in India encourage people
with their advertisement campaigns. Have a look at some of the best state tourism ad
campaigns of India:

1. Khushbu Gujarat Ki: Gujarat

This advertisement campaign gained huge popularity and showed the cultural and religious
form of Gujarat, this ad featured Bollywood legend Amitabh Bachchan and won the National
Tourism Award for 2011-12. A famous slogan from this ad was ‘Breathe in a bit of Gujarat’.

2. Sau Rang: Madhya Pradesh

Madhya Pradesh is known as the ‘heart of India’ because of its geographical location in the
country. The ad tries to attract people by showing different colours of MP by featuring key
tourist attractions such as Kanha’s tigers, Khajuraho’s famous sculptures, Mandu’sJahaz
Mahal, Sanchi Stupa and Ujjain’s Mahakal Aarti.

3.Devbhoomi :Uttarakhand

After the floods that Uttarakhand saw in 2013 decreased the number of travellers to visit the
state. To promote tourism once again in this beautiful state Wilderness Films India made this
amazing ad campaign.

4. Jaane Kya DikhJaaye: Rajasthan

Rajasthan tourism always comes up with creative ad campaigns. This ad shows there are
many things in Rajasthan that can surprise anyone.

5.Where Time Stands Still: Jammu & Kashmir

Jammu & Kashmir can make anyone go mad for its amazing mountains and this ad campaign
has done complete justice with the beauty of the place.

6. KahinChhut Na JaayeChhath: Bihar

‘Chhath’ is a very important festival for the people of Bihar. This ad perfectly captures how it
feels like celebrate a festival at home. This ad won many hearts and was a very good way to
promote tourism in Bihar.