TOURISM AND TRAVEL MANAGEMENT

UNIT 1

What is Tourism?

Tourism involves the activities of people travelling and staying in a place away from their home
environment for leisure, business or other purposes. Mathieson and Wall (1982) define tourism as
follows: "The temporary movement of people to destinations outside their usual places of work and
residence, the activities undertaken during their stay in those destinations, and the facilities created to
cater to their needs."

Tourism was mainly been traditional in its early form. With the evolution of cultures, economies,
and knowledge, tourism took a different form called sustainable tourism with the aspect of well-planned
tour, well-studied destination, and conservation of destination.

TYPES OF TOURISM

1. Recreational tourism:
Tourism is an often activity for recreational purpose. Most tourism took for a change and rest; this is the reason why
package tours have become so popular.

2. Environmental tourism:
Rich and affluent tourist are preferred to spend more visits to remote places where they get pollution free airs to
breath.

3. Historical tourism:
Tourist is interested to know how our forefather lived and administered in a particular area. They visit heritage
locations, temples, churches, museums, forts etc.

4. Ethnic tourism:
This refers to people traveling to distance places looking to their routes and attending to family obligations.
Marriage and death bring people together to their native places. Persons who are settled overseas during later part of
life visit place of their birth for giving boost to ethnic tourism.

5. Cultural tourism:
Some people are interested to know how other people or communities stay, survive and prosper. The kind of culture
they practice their art and music is different from ours. So in order to acquire knowledge, understands culture well,
to become familiar with the culture, they undertake journey.

6. Adventure tourism:
There is a trend among the youth to take adventure tour. They go for trekking,
rock climbing, river rafting etc. They organized camp fire and stay under the blue sky. This tourism is meant for
people with strong nerves who can tolerate stress.

7. Health tourism:
In recent years, health tourism has become highly popular. People visit nature cure centers and hospitals providing
specialist treatment. Many foreigners visit India for treatment because similar services in their country are costly.
8. Religious tourism:
India represents multi-religious composition of population. Various package tours are organized to enable people to
attend the religious duties and visit places of religious importance. E.g. Char Dham yatra.

9. Music tourism:
It can be part of pleasure tourism as it includes moment of people to sing and listen music and enjoy it.

10. Village tourism:

It involves traveling and arranging tours in order to popularize various village destinations.

11. Wild life tourism:

It can be an Eco and animal friendly tourism. Wild life tourism means watching wild animals in their natural habitat.

FACTOR THAT INFLUENCE THE RUNNING OF THE TOURISM INDUSTRY.

Some show immediate effect while, there are also factors which affect in the long run.

 Environment at Destination Tourism is in its best form when the destination boasts of conducive
climate. In contrast, any undesired changes in the environment such as high winds, flash floods,
drought, and extreme climate can affect tourism adversely. For example, during harsh summer
months in India, people prefer to travel to colder climate regions like hill stations
 . Economy of the Country When a country is undergoing economic turbulence and when people
are facing unemployment issues, tourism is affected adversely. On the contrary, when a country’s
economy is doing well and people can afford to spend money on leisure, tourism progresses.
 Historical or Cultural Importance of Destination The place or destination of travel affects the
tourism business to a great extent. If the destination is of great historical or cultural significance
then tourists will certainly like to visit the place for seeing monuments, castles, forts, ancient
architecture, sculptures, caves, antic paintings and utensils, clothes, weapons, ornaments, and
other allied heritage. For example, the world famous places of historical and cultural importance
are Taj Mahal (India), Pyramids of Gaza (Egypt), Began City (Burma), Acropolis (Athens,
Greece)
 Research Importance of Destination There are tourists who visit places with the objective of
studies and exploration. Need for research promotes tourism. Archeologists, Geologists,
Oceanographers, Biologists and Zoologists, Architects, and People researching Arts and Cultures
seek places that have great significance in the field of research
 . Religious Importance of Destination The places of religious importance or worship are always
flooded with tourists. At these places, tourism is at its peak at particular time periods in a year.
The tourists often go on pilgrimage to find inner peace and invoke blessings of the deities .

MOTIVATION OF THE TOURISM

The factors of motivation can be categorized into two types:

Internal Factors of Motivation
Internal factors arouse, direct, and integrate a person’s behavior and influence his decisions for
travelling.
Intrinsic Motivation: For many people, tourism is a way of satisfying their psychological needs such as
travelling, performing leisure activities, exploring novelty and capabilities, self-expression and self-
assurance, creativity, competition, need for relaxation, and belongingness. The intrinsic motivations
pertain to assuring one’s capabilities on different emotional fronts. Intrinsic motivation drives the tourists
to opt for tourism for intangible rewards such as fun, assurance, and other emotional needs. The other
intrinsic factors of motivation are:
Attitudes of Tourist: Knowledge of a person, place, or object + Positive or negative feelings about the
same
Tourist’s Perception: By observing, listening, or getting knowledge, a tourist forms the perception about
a place, person, or an object

Values or Beliefs: A tourist believes or values a specific mode of conduct which is acceptable personally
or socially.
Personality of the Tourist: The nature and physique of a tourist plays an important role towards
motivation in tourism

External Factors of Motivation

There are external motives in tourism that can influence tourists and pull them towards a certain
motivation and subsequent decision.
Extrinsic Motivation: Here, a tourist gets motivated by external factors suchas money and the need to
feel competent on the scale of expenditure and performance.
Place of Origin: The grooming of the tourist depends upon the place of its origin. For example, for the
Indian married women, the tourism might come last in the list of preferential things they wish to do
whereas for American ladies, tourism would acquire much higher rank
Family and Age: The family matters when it comes to the structure and the income. Today, the families
with nuclear structure and double income tend to opt for long distance, extravagant tourism more than
joint families or families with single earning member who are interested in visiting domestic places. The
tourists also have different preferences of places according to their age. For example, tourists in the age
group of 5 to 45 years might enjoy visiting destination in the USA such as Disneyland more than the
senior citizens.
Culture or Social Class: Tourists of different cultures prefer different places, events, and different types
of tourism. In addition, if friends and families who have visited a place earlier spread the first hand
information that motivates the others to visit the place too.
Market: Ever-changing market variables alter tourism. Changes in value of currency, political situations,
and economic wellbeing of the country influence the decisions of a tourist.

MASLOWS THEORY OF MOTIVATION

Abraham Maslow proposed a theory on the hierarchy of human needs. It can be depicted as a model of
five basic motivational needs any human being has. These needs are:
Physiological (or Biological): Need for air, food, water, shelter, warmth, and sleep, which are required
for the survival.
Safety: Need for safety from harmful elements, freedom from fear, physical safety, economical safety,
safety against accidents or their negative impacts. Safety may also manifest into security such as job
security and financial security.
Social: Need for having a family, need for intimacy, friends and social groups. Need for belonging and
being accepted and loved by others.
Self Esteem: Need of feeling accepted and respected by others, need for recognition and attention from
others.
Self-Actualization: Need to realize one’s full potential. A human being requires to attain this need after
all the above needs are satisfied. This pyramid helps to understand the priorities of the human needs in the
order depicted. As we can see, the tourism covers the bottom four levels of the triangle.

COMPONENTS OF TOURISM
The basic components or 4’A’ s of tourism are as follows:

1) ATTRACTION:

 It is the most important element & object that attract people to travel.

  It includes cultural sites, archeological sites, historical buildings & monuments or scenery like

flora & fauna, beach, resorts, mountains, national parks.

   It also includes events like trade fairs, exhibitions, sports events etc.

  It is the preconditions of travel. It attracts the people & provides pleasure.

  It attracts & attaches people to enjoy & involve in tourism activities.

  Two types of attraction:

a) Natural Attraction: Attraction places made by nature. E.g. climate, natural beauty, landscape,

mountains, water resources, flora & fauna, wild life, beaches, safari, caves etc.

b) Man-Made Attraction: Attraction developed by man. E.g. historical buildings, monuments, music,

festivals, temples, churches, leisure parks, Disney lands, museums, discos, casinos etc.

2) ACCESSIBILITY:

 It is important key factor for the development of tourism.

  Attraction may be wherever but without accessibility can’t reach towards that place.

  It is the mode of transportation which helps the tourist to reach the destination.

  Three type of transportation:

a) Surface: Transportation in land through roadways or railways. It is the cheapest means of

transportation.

b) Air Transportation: Transportation through airways to travel long distance. It has helped a lot as

people can travel long journey as well as they can travel through high mountains.

c) Water Transportation: Transportation through water. It made important contribution to travel in 19th

century after the innovation of shipping technology.

3) ACCOMMODATION:

 -It includes food & lodging facilities to the guest.

 It should be comfortable and services & facilities should be provided.

  Two types of accommodation:

a) Serviced Accommodation: It refers to the services provided by the hotel, lodges etc. Different hotels

are established to provide service of lodging & food to the guest.

b) Self Catering or Supplementary Accommodation: It refers to the premises which offer

accommodation but not the services of hotel. It provides food & accommodation in return of cash per day.

E.g. Youth Hostel, Dharmasalas, Pati-Pauwa, Tourist holiday villages etc.

4) AMENITIES:

  Extra facilities & services required to the guest while traveling.

  Facilities complement to the attraction.

 It also provides facilities like providing visa, tickets etc.

  Two types of amenities:

a) Natural: Seashores, sea bath, fishing, rock climbing, trekking, sightseeing, river, sunrise etc.

b) Man made: Dance, Music, Drama, Cinema, Swimming Pool, Fair & Festivals, and Internet etc.
The components of travel and tourism can be broadly divided into six key areas. 
1. Travel Agent:
A travel agent provides information to the people on various travel destinations, advises them of
available holiday packages to suit their tastes and budget and chart their travel plan. He would
generally sell the travel associated products like currency exchange, car rentals, insurance etc.

2. Tour Operators:
Tour operators offer holiday packages which comprise of
1. Travel like by rail, road or air. 
2. Accommodation like hotels, resorts, apartments, guesthouses
3. Travel services like airport pick and drop, sightseeing, excursions etc.
These tour operators may be the wholesale operators who operate tours only through retail travel
agencies or they may be direct sell operators who market their product directly to the public.

3. Accommodation (Lodging and Catering):

This components consists of those who provide accommodation to the people in the form of hotels,
resorts, apartments, camps, guest houses etc. The accommodation may be marketed individually or
through the tour operators in the form of package. Direct marketing may require huge costs on
advertisement and selling through a tour operator guarantees the occupancy rate throughout a holiday
season. These service providers also take care of the catering needs of the people b providing them
huge cafeterias, various fast food outlets in house or in the form of a Galleria.

4. Various Kinds of Transport:

Transport providers are those operating any major form of transport. They could be airlines, cruise
lines, car rentals, and rail companies. A tourist’s choice of transport would depend on the travel
budget, destination, time, purpose of the tour, and convenience to the point of destination.

5, Information & Guiding: (Ancillary services)

The tourist information and guidance providers include a number of service providers such as those
offering insurance, recreational, communication, and banking services; government agencies; tour
guides; industry associations; packaging agents; ticketing agents; and holiday sellers.

6. Tourist Attractions:
The principle of attraction is to establish the need for the attraction in a particular location to invite
more footfall. It may be a huge theme park, a museum, a gallery, a heritage building, an educational
center etc. Many countries see the need to have one or more visitor attraction in the area to widen
their appeal and attract huge potential tourist.
 UNIT II

Accommodation:

Accommodation is one of the basic needs of ay tourism activity. Traveler’s tourists need lodging for rest,
while they are on a Trip.
Accommodation is in the form of low budget lodges /hotels a luxury hotels is available at all major tourist
destinations to provide tourist a home away from home. These are the established that provide a place for
the tourist to stay . There are the establishments that provide a place for the tourists to stay.

VARIOUS TYPES OF ACCOMMODATIONS

1. Hotels:
Hotels are a vital and essential part of tourism industry . Hotels not only provide accommodation and
meals but also offer a variety of other services as per the needs of the tourists . E.g. Hotels offer health
club, crèche etc. as per the changing needs of the customer. Hotel is generally a largest of all
accommodation types. There is typically a common reception area and rooms generally open directly on a
hallway . Hotels are often member of largest hotel groups and a similar accommodation experiences may
be available in different establishment within the group .

2 Star Hotels:
They are modern western style hotels, found mostly in metro cities and at major tourist destinations and
that are located at prime locations in the city. These hotels are classified on the internationally accepted
star grading which ranges from five stars to one star. The grading is given to the hotel depending on the
facilities and the services that hotel provides

The facilities which are provided are

A) Conference desk
B) Multi cuisine restraint
C) Banquet halls
D) Room services
E) Swimming pools
F) Gymnasium
G) Health club
H) shopping area
I) beauty parlor
J) entertainment
K) cultural programs
L) information desk
3. motels:
The word is an abbreviation of motor hotel . They are located on highways and expressways .the tourists
who are on transient mode and cost conscious prefer to stay in these motels . They are in a shape of
connected rooms with their doors facing the parking lots .They not only provide parking space but also
certain amenities such as T.v, restraint, swimming pool.
4 Resorts:
These cater to tourists who look for rest, relocation and recreation .
They are located mostly at the sea side, hill station, and wild life sanctuaries .
Apart from facilities provided by hotels, resort provide additional to guest for recreation and relaxation
which includes indoor and outdoor games, gambling, spa etc.

5 Time share hotels:

A time share is a vacation property with shared ownership . Management would handle the construction
and sell shares which entitle buyers to spend a specified amount of time at the property . Sometime shares
are large complex with dozen of living units , while other resemble a single family home and are only
large enough for one owner to occupy at a time . Most time shares are located in popular areas where
vacation property is in high demand. Owing a time share is not owning a vacation property outright.
Owners do not have the right to make changes or improvements to the property . Instead the time share
management would perform maintenance, cleaning and improvement using fund pooled by owners

6.Cottages:
Cottage Is a vacation property used for holiday vacation. Such property are typically small homes .
Vacationers can rent and use as it were their own home for the duration of their stay on nightly or weekly
. A second home or vacation home can be a home owners assets as renting it could provide additional
income.

Different types of transport

Road Transport
Road transport refers to the transport of people and goods by roads through various medium of transport
like cars, trucks, buses etc.., it is one of the oldest and most used means of transport all over the world.
Given below are some of the advantages and disadvantages of road transport.

Advantages of Road Transport

Less Expensive
The first and foremost advantage of this mode of transportation is that government has to incur fewer
expenses on construction of roads as compared to other means of transport like railways, sea or air
transport which is the reason why it is present in every corner of the country, also roads can be built
quickly and they are the most viable option as far as connectivity to far flung area is concerned.

Good for Short Distance and Flexibility

It is best suited when the distance is short and one requires flexibility in the journey because suppose
distance is 100 miles and going to the railway station for catching a train or going to an airport and
wasting time in check-ins will result in passenger reaching the destination late as compare to covering the
distance by road. Flexibility implies that one can stop the vehicle wherever he or she wants which is not
possible in case of other means of transport like railways, boats, and airplane.

Present Everywhere
Road transport has the benefit of being present everywhere whether it is in metro, urban or rural area and
also its reach is not limited to particular destinations rather its reach is extensive. Hence for example, if
some industry is located at some remote place than road transport is the only practical way of reaching to
that industry or if one wants to go to some remote tourist place than also road transport is the only way of
reaching there.
Disadvantages of Road Transport

Inconvenient for Long Distances

The biggest problem with road transport is that when distance is long it is very inconvenient to use road
transport as it takes time which is not the case with air transport using which one can quickly reach his or
her destination and also there is no scope of rest as one has to sit continuously throughout the journey
which is not the case with railways where one can sleep whenever one wants.

Affected by Multiple Factors

Another limitation of road transport is that it is affected by multiple factors like traffic congestion, bad
weather conditions, bad roads leading to breakdown of vehicles, risk of theft while driving in night at
isolated places and also accidents related risk which makes road transport vulnerable and risky as
compared to other modes of transport like railways and airplane where these risks are less.

Unorganized
Another disadvantage of road transport is that it is unorganized which leads to exploitation of passengers
as fares for goods and passengers are not uniform and the fares keep changing depending on the
circumstance which is not the case with other mediums of transports like railways, sea and air transport.
As one can see from the above that road transport has advantages as well as disadvantages and for any
economy to prosper it needs to have the proper network of roads connecting every corner of the country
with each other and that is the reason why governments should focus and invest money to improve the
road network in the country.

Water Transport

Water transport is the cheapest and the oldest mode of transport. It operates on a natural track and hence
does not require huge capital investment in the construction and maintenance of its track except in case of
canals. The cost of operation of water transport is also very less. It has the largest carrying capacity and is
most suitable for carrying bulky goods over long distances. It has played a very significant role in
bringing different parts of the world closer and is indispensable to foreign trade.

Kinds of Water Transport:

Water transport consists of:
(i) Inland water transport
ii) Ocean-transport
Inland Water Transport:
As shown in the chart, inland water transport consists of transport by rivers, canals and lakes.

Rivers:

Rivers are a natural waterway which can be used as a means of transport. They are suitable for small
boats as well as big barrages. River transport played a very important role prior to the development of
modern means of land transport. Their importance has gradually declined on account of more reliable and
cheaper transport services offered by the railways.

Canals:

They are artificial waterways made for the purpose of irrigation or navigation or both. Canal transport
requires a huge amount of capital investment in construction and maintenance of its track i.e., the
artificial waterways. The cost of the canal transport is, therefore, higher than that of river transport. To
add to it, the cost of providing water for the canals is also a very big problem of canal transport.

Lakes:

Lakes can be either natural like rivers or artificial like canals.

Advantages:

1. Low Cost:
Rivers are a natural highway which does not require any cost of construction and maintenance. Even the
cost of construction and maintenance of canals is much less or they are used, not only for transport
purposes but also for irrigation, etc. Moreover, the cost of operation of the inland water transport is very
low. Thus, it is the cheapest mode of transport for carrying goods from one place to another.

2. Larger Capacity:
It can carry much larger quantities of heavy and bulky goods such as coal, and, timber etc.

3. Flexible Service:
It provides much more flexible service than railways and can be adjusted to individual requirements.

4. Safety:
The risks of accidents and breakdowns, in this form of transport, are minimum as compared to any other
form of transport.
Disadvantages

1. Slow:
Speed of Inland water transport is very slow and therefore this mode of transport is unsuitable where time
is an important factor.

2. Limited Area of Operation:

It can be used only in a limited area which is served by deep canals and rivers.

3. Seasonal Character:
Rivers and canals cannot be operated for transportation throughout the year as water may freeze during
winter or water level may go very much down during summer.

4. Unreliable:

The inland water transport by rivers is unreliable. Sometimes the river changes its course which causes
dislocation in the normal route of the trade.

5. Unsuitable for Small Business:

Inland water transport by rivers and canals is not suitable for small traders, as it takes normally a longer
time to carry goods from one place to another through this form of transport.

Ocean transport:
Ocean transport is indispensable for foreign trade. It has brought the different parts of the world closer
and has knitted together all the nations of the world into one big world market. It operates on a natural
track, i.e., the sea and does not require any investment in the construction and maintenance of its track. It
is, obviously, the cheapest mode of transport.
Ocean transport includes:
1. Coastal Shipping
2. Overseas Shipping
1. Coastal Shipping:
It is one of the most important means of transport for carrying goods from one part to another in a
country. It is a cheaper and quicker mode of transport and is most suitable for carrying heavy, bulky and
cheap traffic like coal, iron ore, etc. to distant places. But it can serve only limited areas. Earlier, coastal
shipping in India was mainly in the hands of foreign shipping companies. But now from 1951 onwards, it
is exclusively reserved for Indian ships.
2. Overseas Shipping:
There are three types of vessels employed in the overseas shipping:
(i) Liners,
(ii) Tramps,
(iii) Tankers.
(i) Liners:
Liners are the ships which have regular fixed routes, time and charges. They are, usually, a collection of
vessels under one ownership, i.e., a fleet. They provide a uniform and regular service. Liners sail on
scheduled dates and time, whether full of cargo or not.
(ii) Tramps:
Tramps are ships which have no fixed routes. They have no set rules or rate schedule. Usually, they do
not sail till they have full cargo. They can be chartered by exporters and are ready to sail anywhere and at
any time. They are not as fast in speed as liners. Tramps are more suitable to carry seasonal and bulky
goods.
(iii) Tankers:
Tankers are the vessels which are specially designed to carry oil, petrol and such other liquids. They have
a large capacity, 2 to 3 lakh tons of oil, and very shortly, we may have super tankers with a capacity of
about 10 lakh tons of oil.

Advantages:
1. It operates on a natural track as sea provides a readymade ‘road bed’ for the ships to sail. Hence, it does
not require huge amount of capital investment in the construction and maintenance of its track.
2. Due to the smooth surface of sea, comparatively less tractive power is required for its operation which
results in a lesser cost of operation. Thus, it is the cheapest mode of transport.
3. It has the largest carrying capacity as compared to any other transport.
4. The risk of damage in transit of the goods is also less as compared to other modes of transport. But the
goods are exposed to the ‘perils of sea’.
5. It is the only suitable mode of transport for carrying heavy and bulky goods to distant places.
6. It is indispensable to foreign trade.

Air Transport

Air transport is the most recent mode of transport. It is the gift of the 20th century to the world. The two
world wars gave a great impetus to the development of air transport in almost all the countries of the
world. The peculiar characteristic of air transport is that is does not need a specific surface track for its
operations.
It has no physical barriers as in the case of other mode of transport. Political boundaries are also
immaterial although it has to observe the requirements of the International Law. The supreme advantage
of air transport lies in its quickness.
It is the fastest mode of transport. But the cost of its operation is very high and thus it is suitable for only
rich passengers, mails and light and costly cargo. However, in advanced countries like U.S.A., Germany,
etc. it offers a tough competition to the railways.
Characteristics:

Air transport has the following characteristics:

1. Unbroken Journey:
Air transport provides unbroken journey over land and sea. It is the fastest and quickest means of
transport.

2. Rapidity:
Air transport had the highest speed among all the modes of transport.

3. Expensive:
Air transport is the most expensive means of transport. There is huge investment in purchasing aero
planes and constructing of aerodromes.

4. Special Preparations:
Air transport requires special preparations like wheelers links, meteorological stations, flood lights,
searchlights etc.

Fastest Mode of Transport:

Advantages:

1. High Speed:
The supreme advantage of air transport is its high speed. It is the fastest mode of transport and thus it is
the most suitable mean where time is an important factor.

2. Comfortable and Quick Services:

It provides a regular, comfortable, efficient and quick service.

3. No Investment in Construction of Track:

It does not require huge capital investment in the construction and maintenance of surface track.

4. No Physical Barriers:
It follows the shortest and direct route as seas, mountains or forests do not come in the way of air
transport.

5. Easy Access:
Air transport can be used to carry goods and people to the areas which are not accessible by other means
of transport.

6. Emergency Services:
It can operate even when all other means of transport cannot be operated due to the floods or other natural
calamities. Thus, at that time, it is the only mode of transport which can be employed to do the relief work
and provide the essential commodities of life.
7. Quick Clearance:
In air transport, custom formalities can be very quickly complied with and thus it avoids delay in
obtaining clearance.

8. Most Suitable for Carrying Light Goods of High Value:

It is most suitable for carrying goods of perishable nature which require quick delivery and light goods of
high value such as diamonds, bullion etc. over long distances.

9. National Defence:
Air transport plays a very important role in the defence of a country. Modern wars have been fought
mainly by aeroplanes. It has upper hand in destroying the enemy in a very short period of time. It also
supports over wings of defence of a country.

10. Space Exploration:

Air transport has helped the world in the exploration of space.

Disadvantages:

In spite of many advantages, air transport has the following limitations:

1. Very Costly:
It is the costliest means of transport. The fares of air transport are so high that it is beyond the reach of the
common man.

2. Small Carrying Capacity:

Its carrying capacity is very small and hence it is not suitable to carry cheap and bulky goods.

3. Uncertain and Unreliable:

Air transport is uncertain and unreliable as it is controlled to a great extent by weather conditions.
Unfavourable weather such as fog, snow or heavy rain etc. may cause cancellation of scheduled flights
and suspension of air service.

4. Breakdowns and Accidents:

The chances of breakdowns and accidents are high as compared to other modes of transport. Hence, it
involves comparatively greater risk.

5. Large Investment:
It requires a large amount of capital investment in the construction and maintenance of aeroplanes.
Further, very trained and skilled persons are required for operating air service.

6. Specialised Skill:
Air transport requires a specialised skill and high degree of training for its operation.

7. Unsuitable for Cheap and Bulky Goods:

Air transport is unsuitable for carrying cheap, bulky and heavy goods because of its limited capacity and
high cost.
8. Legal Restrictions:
There are many legal restrictions imposed by various countries in the interest of their own national unity
and peace.
 Unit III

DEVELOPMENT OF TOURISM IN INDIA

Early Development

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 National Strategy for Promotion of
Tourism was drafted. In 1997, the New Tourism Policy recognises 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 Panchayati Raj institutions, local bodies, non-governmental organisations and the
local youth in the creation of tourism facilities has also been recognised.

Present Situation and 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.

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.
[www.ibef.org/industry/tourismhospitality.aspx]

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.
[www.ibef.org/industry/tourismhospitality.aspx]
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; centres 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”. 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.

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 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.
Constraints: The major constraint in the development of tourism in India is the non-availability of
adequate infrastructure including adequate air seat capacity, accessibility to tourist destinations,
accommodation and trained manpower in sufficient number.

Poor visitor experience, particularly, due to inadequate infrastructural facilities, poor hygienic conditions
and incidents of touting and harassment of tourists in some places are factors that contribute to poor
visitor experience.

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.

3. Source of Foreign Exchange Earnings: Tourism is an important source of foreign exchange earnings

in India. This has favourable 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.

4. 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.

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

6. 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 in Goa 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.

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.

ENVIRONMENTAL IMPACT OF TOURISM IN INDIA

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.
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.

 6. 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 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.

2. Pollution

Tourism can cause the same forms of pollution as any other industry: air emissions, noise, solid waste and
littering, releases of sewage, oil and chemicals, even architectural/visual pollution
(www.gdrc.org/uem/eco-tour/envi/index.html).

(i) Air and Noise Pollution: Transport by air, road, and rail is continuously increasing in response to the
rising number of tourist activities in India. Transport emissions and emissions from energy production
and use are linked to acid rain, global warming and photochemical pollution. Air pollution from tourist
transportation has impacts on the global level, especially from carbon dioxide (CO2) emissions related to
transportation energy use. And it can contribute to severe local air pollution. Some of these impacts are
quite specific to tourist activities where the sites are in remote areas likeAjanta and Ellora temples. For
example, tour buses often leave their motors running for hours while the tourists go out for an excursion
because they want to return to a comfortably air-conditioned bus.

Noise pollution from airplanes, cars, and buses, as well as recreational vehicles is an ever-growing
problem of modern life. In addition to causing annoyance, stress, and even hearing loss for humans, it
causes distress to wildlife, especially in sensitive areas (www.gdrc.org/uem/eco-tour/envi/index.html).

(ii) Solid waste and littering: In areas with high concentrations of tourist activities and appealing natural
attractions, waste disposal is a serious problem and improper disposal can be a major despoiler of the
natural environment - rivers, scenic areas, and roadsides.

In mountain areas of the Himalayas and Darjeeling, trekking tourists generate a great deal of waste.
Tourists on expedition leave behind their garbage, oxygen cylinders and even camping equipment. Such
practices degrade the environment particularly in remote areas because they have few garbage collection
or disposal facilities (www.gdrc.org/uem/eco-tour/envi/index.html).

(iii) Sewage: Construction of hotels, recreation and other facilities often leads to increased sewage
pollution. Wastewater has polluted seas and lakes surrounding tourist attractions, damaging the flora and
fauna. Sewage runoff causes serious damage to coral reefs because it stimulates the growth of algae,
which cover the filter-feeding corals, hindering their ability to survive. Changes in salinity and siltation
can have wide-ranging impacts on coastal environments. And sewage pollution can threaten the health of
humans and animals. Examples of such pollution can be seen in the coastal states of Goa,
Kerela, Maharashtra, Tamil Nadu, etc.

3. Destruction and Alteration of Ecosystem

An ecosystem is a geographic area including all the living organisms (people, plants, animals, and micro-
organisms), their physical surroundings (such as soil, water, and air), and the natural cycles that sustain
them. Attractive landscape sites, such as sandy beaches in Goa, Maharashtra, Kerela, Tamil Nadu; lakes,
riversides, and mountain tops and slopes, are often transitional zones, characterized by species-rich
ecosystems. The threats to and pressures on these ecosystems are often severe because such places are
very attractive to both tourists and developers. Examples may be cited from Krushedei Island near
Rameswaram. What was once called paradise for marine biologists has been abandoned due to massive
destruction of coral and other marine life. Another area of concern which emerged at Jaisalmer is
regarding the deterioration of the desert ecology due to increased tourist activities in the desert.

Moreover, habitat can be degraded by tourism leisure activities. For example, wildlife viewing can bring
about stress for the animals and alter their natural behavior when tourists come too close. Safaris and
wildlife watching activities have a degrading effect on habitat as they often are accompanied by the noise
and commotion created by tourists.
SARGENT COMMITTEE

Sargent committee various committees on Tourism and Tourism Policies of the Union Government 3.1Sir
John Sargent Committee (1945)'

l The first straight forward effort to promote tourism in India in 1945, when a committee was set up by
the Government oi India under :I)- chairmanship of Sir John Sargent. The main recommendations of the
committee were the following:-

1. Setting up a separate representative organization of tourism with regional offices in metropolitan

cities.

2. The promotion of tourist traffic was a matter of great national ~importance and therefore, deserves the
whole-time attention of separate organizations which should take initiative in such matters as:

- (a) publicity both in India and abroad;

(b) Production of suitable literature such as guide books.

1 provision for training of tourist guides;

2 liaison with other government departments responsible for providing facilities required by tourists;

3 liaison with the travel agencies who provide travel services to tourists;

4 liaison with the hotels and catering institutions;

5 collection of tourist statistics;

6 co-ordination with air and train services to make it comfortable in India;

7 provision of a chain of first class hotels of international standard;

8 starting publicity bureau in London and New Yore;

In the capitals of other countries from where large number of tourists might be coming

THE MINISTRY OF TOURISM

The Ministry of Tourism, is the nodal agency for the formulation of national policies and programs 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
programs. 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 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.
Role and Functions of the Ministry of Tourism

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:

A) All Policy Matters, including:

o Development Policies.

o Incentives.

o External Assistance.

o Manpower Development.

o Promotion & Marketing.

o Investment Facilitation.

B) Planning.
Co-ordination with other Ministries, Departments, State/UT Governments.

C) Infrastructure & Product Development.

D) Human Resource Development

E) Publicity & Marketing

F) Research, Analysis, Monitoring and Evaluation

G) International Co-operation and External Assistance

International Bodies.
Bilateral Agreements.
External Assistance.
Foreign Technical Collaboration

INDIA TOURISM DEVELOPMENT CORPORATION (ITDC)

ITDC came into existence in October 1966 and has been the prime mover in the progressive development,
promotion and expansion of tourism in the country. Broadly, the main objectives of the Corporation are:

1. To construct, take over and manage existing hotels and market hotels, Beach Resorts, Travelers’
Lodges/Restaurants;To provide transport, entertainment, shopping and conventional services;
2. To produce, distribute, tourist publicity material;
3. To render consultancy-cum-managerial services in India and abroad;
4. To carry on the business as Full-Fledged Money Changers (FFMC), restricted money changers
etc.
5. To provide innovating, dependable and value for money solutions to the needs of tourism
development and engineering industry including providing consultancy and project
implementation

Corporation is running hotels, restaurants at various places for tourists, besides providing transport
facilities. In addition, the Corporation is engaged in production, distribution and sale of tourist publicity
literature and providing entertainment and duty free shopping facilities to the tourists. 

A Brief History of TAAI and its Growth

The TRAVEL AGENTS ASSOCIATION OF INDIA (TAAI) was formed towards the end of the year
1951 by a group of twelve leading travel agents, who felt the time had come to create an Association to
regulate the travel industry in India along organized lines and in accordance with sound business
principles.

The primary purpose was to protect the interests of those engaged in the industry, to promote its orderly
growth and development and to safeguard the travelling public from exploitation by unscrupulous and
unreliable operators.
In the following years, the Association's membership has swelled steadily from the original 12 to
approximately 2500 members consisting of Active, Associate, Allied, Government and Non-Resident.

What is TAAI

1. TAAI is a professional coordinating body of different segments of the travel and tourism
industry.
2. TAAI is the Nodal Association of India.
3. TAAI is non-political, non-commercial and a non-profit making organization.
4. TAAI is recognized as the main representative body of the travel and tourism industry.
5. The symbol TAAI is an enforcement of reliable and professional service.
 Aims and Objectives

a. TAAI is conscious of the interest of the travelling public and maintains high ethical
standards within the travel trade.
b. TAAI aims at the development of the travel and tourism industry in India by constantly
improving the standard of service and professionalism in the industry so as to cater to the
needs of the travelers and tourists from within India and overseas.
c. TAAI is engaged in promoting mutual co-operation among the different segments of the
travel and tourism industry, among TAAI members, by contributing to the sound
progress and growth of the industry as a whole.
d. TAAI functions as a powerful platform for interaction of thoughts and experiences.
e. TAAI helps promote, maintain and stimulate the growth of travel and tourism in the
industry.
f. TAAI educates and equips the members to meet the challenges of tomorrow through
conventions and seminars.
g. TAAI draws the attention of the controlling and regulatory authorities in the country and
discusses with them the problems of the industry and works for the survival and
betterment of its members.
h. TAAI maintains close contact with world bodies and represents matters affecting the
travel and tourism industry of the country.
i. TAAI gathers useful information on travel and tourism and disseminates the same to its
members for their guidance.
j. TAAI helps develop better understanding among the different segments of the travel
industry and brings them into its fold by offering membership under different categories.
k. TAAI fosters fraternity among its members.

Activities of TAAI

TAAI has signed several MOU's with various Travel Agents Associations in neighboring countries and
around the globe. TTDC was incorporated during June 1971 under the Companies Act 1956. TTDC was
formed with the object of promoting tourism in Tamilnadu by providing infrastructure facilities of
transport and accommodation. To fulfil this objective, TTDC has expanded its activities into 3 main
operations, namely, Hotels, Transport and Fairs. TTDC is at present having 53 hotels across Tamil Nadu.
Out of the 53 hotels, TTDC is currently operating 22 hotels. The Transport division is having a fleet of 13
coaches operating tours ranging from half day to 14 days covering the southern states.

TTDC
Tamil Nadu Tourism Development Corporation is a state-government Public Sector Undertaking of the
Government of Tamil Nadu located in the Indian state of Tamil Nadu. Tamil Nadu has been entrusted
with the promotion of tourism and development of tourist related infrastructure. Out of the 53 hotels
under the control of TTDC, TTDC is currently operating 22 hotels and 21 hotels have been leased to
private hoteliers.
All the hotels have been upgraded to ensure comfortable stay for the tourists.

TRANSPORT DIVISION

The Transport Division is at present having a fleet of 13 coaches, of which two Volvo and nine are AC.
TTDC is offering wide range of package tours covering the entire Southern States.Apart from the Sales
Counter at Tourism Complex, Wallajah Road, Chennai, TTDC is also having Sales Counters in other
States and Union territory at New Delhi, Kolkata, Mumbai, Thiruvanthapuram, Bangalore, Hyderabad,
Ahmedabad, Jaipur etc.

RAIL CUM ROAD TOURS

TTDC had launched Rail-cum-Road tours from Mumbai, Kolkata, Delhi, Ahmedabad and Lucknow
during the year 2002-2003 wherein confirmed rail tickets, tour of Tamilnadu in TTDC's Hitech coach,
accommodation in TTDC hotels and Guides services are provided. The tourists are accorded a warm
reception at Chennai Central Station and are also boarded at Chennai Central for return journey.

FAIR

The India Tourist and Industrial Fair is organized every year from January to March for 75 days. All the
Govt. Departments will erect their pavilions in attractive manner with working models to educate the
public about the welfare measures and development programmers undertaken by the State Govt. Apart
from the regular India and industrial Fair, Summer Fair, Deepavali Fair, Food Fair etc., are conducted at
the Island Ground in an area of 21 acres

Trade fair
A trade fair (trade show, trade exhibition, or expo) is an exhibition organized so that companies in a
specific industry can showcase and demonstrate their latest products and services, meet with industry partners and
customers, study activities of rivals, and examine recent market trends and opportunities. In contrast to consumer
fairs, only some trade fairs are open to the public, while others can only be attended by company representatives
(members of the trade, e.g. professionals) and members of the press, therefore trade shows are classified as either
"public" or "trade only". A few fairs are hybrids of the two; one example is the Frankfurt Book Fair, which is trade
only for its first three days and opens to the general public on its final two days. They are held on a continuing
basis in virtually all markets and normally attract companies from around the globe. For example, in the U.S., there
are currently over 10,000 trade shows held every year, and several online directories have been established to help
organizers, attendees, and marketers identify appropriate events.
 UNIT IV

Meaning travel agency 

A travel agency is a private retailer or public service that provides travel and tourism related services to
the public on behalf of suppliers such as activities, airlines, car rentals, cruise lines, hotels, railways,
travel insurance, and package tours. In addition to dealing with ordinary tourists, most travel agencies
have a separate department devoted to making travel arrangements for business travelers; some travel
agencies specialize in commercial and business travel only. There are also travel agencies that serve as
general sales agents for foreign travel companies, allowing them to have offices in countries other than
where their headquarters are located.

Types of travel agents

1. Independent Travel Agents

Both offline and online travel agents want to customize the travel itineraries for their clients in
order to include tours and activities that interest them. By partnering with independent travel
agents and using distribution technology like Rezdy, you can increase your online distribution
and make it easy for agents to recommend your products. In addition, independent agents can
earn a commission between 15 and 25 percent for booking your activities.

2. Online Travel Agents

Online travel agents rely on the convenience and ease of the Internet in order to create packages
for their clients. Today, many travelers want to book travel packages that include not only
transportation and accommodations, but also excursions, tours and activities.
By forming relationships with online travel agents, tour and activity operators can increase their
online distribution. Through Rezdy’s online booking system, online travel agents can book with
you directly and earn a commission at the same time.

3. Visitor Information Centres

Travelers rely on these facilities in order to gain knowledge about local activities. Let the visitor
information centre in your region that they can quickly and easily book your tours and activities
online, and they will be more apt to recommend your products.
4. Hotel and Concierge Services

The role of the concierge has changed due to the rise in popularity of mobile technology, but
concierges are still relied upon to provide personalized, local recommendations. Tour providers
should work with concierges in their region in order to let them know how convenient it is to
book their tours. In addition, they will be pleased to know they will receive a fair commission for
quickly booking with you.

5. Inbound Tour Operators

Inbound tour operators are considered experts in a given destination, and they are aware of the
best tours and activities in any region. They recommend these excursions to their travel clients,
so it’s important that you work with these agents in order to promote your products. They will be
more apt to recommend reliable, exciting tours that are easy to reserve.

6. Global Distribution Systems

Online and offline agents will utilize global distribution systems in order to automatically reserve
available tours and activities in a particular destination. Working with global distribution
systems, such as Amadeus and Sabre, will help you increase your online distribution and secure
more bookings for your tours and activities. These systems prefer to work with tour
providers who offer easy online booking for their activities and tours. By investing in an online
booking system, you will be able to automate the process and increase your online distribution.
When you sign up with Rezdy, you can invite the travel agents that you work with to resell your
products and easily earn a commission.

Meaning of Tour operator

A tour operator typically combines tour and travel components to create a package holiday. They
advertise and produce brochures to promote their products, holidays and itineraries.
a company that makes arrangements for travel and places to stay, often selling these together
as package holidays

Types of Tour Operators

Outbound operators: The Operators which assist the passengers of a country to visit another
country are outbound operators. For instance, the outbound operators help people residing in UK
to visit another country for tourism industry. This type of visitors is also known as international
tourist. Virgin Holidays provide outbound services to its clients. Organization designs
international trip for the customers and provides tour packages to European countries, South Asia,
United States and Africa.
Domestic operators: This type of operators provides services to the tourists within the host
countries. Tours offered by the operators include national park tours, train tours, river boat cruises
etc. This kind of operators provides facility of day to day tours or limited day tours
Direct sell operators: Some operators sell their services through various tour agents. This kind of
operators sells their packages to direct public to get the higher rates.Trade bodies are those who
govern the tourist industry and provide them guidelines to design the holiday packages. Following
are the trade bodies:
Association of Independent Tour Operators: The main aim of AITO is to provide satisfactory
services to the customers by focusing on three factors Choice, quality, and service. Virgin
Holidays has accepted the rules of AITO which protect the interest of customers. Operators are
also bound by AITO’s own code of operation practice.

Association of British Travel Agents: The association binds the operators to adopt quality
standards and offering choice and value in the services. The main function of the ABTA is to raise
the standards of the services offered by the organisation and provide guidance on issues to health
and safety. Virgin Holiday is the member company of ABTA and the organisation needs to follow
the guidelines of the association.

Mass Market Tour operators: They buy services in volume from the suppliers and afford to
sell them to the customers inexpensively.

Specialist Tour Operators: They provide service to the niche market that has interest in a
particular geographical area or a special kind of activity.Depending upon the geographical area
and tourists they handle, there are the following typical types of tour operators:
Retail Tour Operators
These travel agents are the face of main distribution channel for package holidays. They sell the
tour operator’s tourism product in return for commission. Their commission generally ranges
from 10% to 15% of the booking price. They are motivated to sell a product to earn commission
and they are keen to attract repeat business. They setup a retail outlet, both shopfront and online;
as an accessible place for their customers.
Wholesale Tour Operators
Wholesale Tour Operators sell a product through established retail distribution channels, both
shop front and online. For example, Qantas Holidays, which negotiates product rates directly
with suppliers and creates packages that are either distributed to retail tour operators (travel
agents) or sold directly to customers via website. Similar to the retail travel agents, the
wholesalers charge a commission of around 20%.

Tour Operator Characteristics

A tour operator is responsible for the safety of the tourists and overall success of a tour. A successful tour
operator must have the following basic characteristics:
• Well Organized: To pass on the best possible experience to the customer, the tour operators need to have
appropriate systems and processes in place.

• Best Net-worker: They make tourism better by building relationships with peer tour operators,
contacting them in challenging situations as well as making liaisons when dealing with a tour.

• Friends with Technology: Learning and having strong hold on new technology creates an opportunity
for a tour operator to reach customers, expose a wide range of tour products, and increase sales in less
cost and time.

• Enthusiastic and Friendly: A tour operator must have enthusiastic and friendly attitude to create
welcoming and interesting environment among the customers.

• Knowledgeable: The tour operator must be well-acquainted with the tourism products, destinations,

attractions, and cultures .

Meaning of tourist guide

A tour guide  or a tourist guide (European) is a person who provides assistance, information on cultural,
historical and contemporary heritage to people on organized tours and individual clients at educational
establishments, religious and historical sites, museums, and at venues of other significant interest.

Classification of Guides on the basis of the nature of the tourist destination

1. Heritage

a.History:One who gives information of the past, moreover found at Palaces, Forts, Museums,
Battlefields, Tombs / Mausoleums, Temples , Churches etc 
b.Archeological:One who gives information on the ancient civilizations and the bygone era , found at
museums and archeological sites like the Giza Pyramid s, Harappa & Mohenjo-Daro, Nalanda University,
Machu Picchu etc 
c.Architecture Guide :One who gives information of the art and construction strategy of the monuments
and masterpieces from the past, found especially outside Temples, Palaces, Tombs / Mausoleums, Towers
etc 
2. Culture Guide :
One who gives information on the lifestyle patter on the native society of that particular Tourist
Destination 
a.Cuisine Guide: One who gives information on the Agriculture, cultivation, and staple diet of a
place, delicacies of that region and where to eat what and when. He /she takes the guest around the
city making them taste specialties prepared at different food shops and restaurants. Places visited
are Farms, Restaurants, Sweet Shops, Chocolate Factory, Cheese Factory, Vineyards, Orchards
etc 
b.Religious Guide / Temple Guide / Pilgrim Guide : One who gives information on the religion, gods &
goddesses, mythology, traditions, rituals etc, such guides are hired especially during festival times,
they are found at temples, and other shrines
3. Adventure Guide
Mountaineering Guide
Trekking Guide
Skiing Guide
Surfing Guide
eg. Scuba Diving / Snorkeling Guide
4. Forest / Wilderness Guide
Hunting Guide
Safari Guide
5. Business Guide
Real Estate Consultant
6. Coach Guide
City Tour Guide
7. Nature Guide
Desert Guide
Hill Station Guide
Botanical Garden Guide
8. Special Interest Guide :
Cruise Guide, Golf Guide, Shopping Guide, Hotel Guide, Wedding Guide etc

The Role of Tour Guide

Tour guides are referred as tourist guides in some country. A tour guide is a person who guides the
visitors in the language of their choice. He leads a group of people around the museum, town, and
important venue. Guides are representative of the cities for which they are qualified and they interpret the
culture and heritage of the area.
Guide helps travelers to understand the culture of the region and the way of life its inhabitants. On one
hand their role is to promote the cultural and natural heritage and on other hand making the visitors aware
of its importance.
Guide provides full information about the features and history of the location. As the importance of places
is known by the guide, he will educate and narrates you all the local stories, history and culture as and
when the location comes. The importance is placed on the guide's knowledge; he will try his best to
explain you in language you know. While traveling to next location guide entertain you, and gives you
relevant information about the place where you will land up next.
On visiting any historical place, a guide with complete knowledge of that place is required. So that he
narrate the history of that place in detail. If you move without a guide you will not come to know
anything about the place and you will not understand what you are seeing and what does it means. Guide
answers all your questions and you can gain lot of knowledge from him. Many times it happens that we
ignore small things, but always a small thing contains a big story, so only guide can educate us about the
place.
Before going for a trip you can ask your friends and relatives about the place who have been there. But to
get the whole insight information it is better to appoint a guide. A guide helps you to know about the
climatic condition, culture, language, specialty of the place and also helps us to buy the famous thing
available there.
The importance of tour guide is only understood by those who had a unplanned tour. The unplanned tour
can put you in to a very critical circumstance that your enjoyable trip can go into a worst nightmare.

Characteristics of a Great Tour Guide.

In order to get the most out of a visit to a significant site, it all comes down to information and
communication – in other words, the quality of your tour guide. Here are our top 10 essentials for a great
tour guide.
1. Understandable
Ideally, your tour guide should speak a range of languages, including your own, as well as the local lingo.
They should also speak clearly, audibly and with confidence. Depending on the type of tour, you might be
asked to wear earphones or use other types of audio equipment.
2. Punctual
Your tour leader should be waiting for you when you arrive, rather than the other way around. Ideally,
they should also ensure that other tour members arrive and depart on time, and don’t cause delays for the
group as a whole.
3. Friendly
A relaxed and friendly manner is key to a great tour guide. They also need to have a certain level of
authority, and be able to keep tour members together and focused without coming across as intimidating,
patronising or arrogant – not a good look in a tour guide.
4. Knowledgeable
A good tour guide has an in-depth knowledge of the site, its history and importance. A great tour guide
has a passion for their subject and can convey their enthusiasm to the group. Such passion can be
contagious and inspiring, and make the site really come alive. Being able to convey a sense of the overall
cultural background is also important, as it can greatly enhance each tour member’s overall understanding
of the site as a whole.
5. Engaging
Great tour guides share their knowledge in an engaging, illuminating and entertaining way, rather than
repeating a list of facts by rote.
6. Interactive
Effective tour guides also invite questions and interaction from tour members, rather than treating the tour
as a one-person show or a ‘be quiet and listen’ school lesson.
7. Funny
A certain level of friendly humour is essential. Equally, a good tour guide also knows when to include a
little quiet time, and when to let the site speak for itself.
8. Observant
The tour needs to be relevant to a broad range of people, including different age groups. A good tour
leader also needs to be aware of tour members with special needs.
9. Good Pacing
Whether the speed of the narrative or the pace of a walking tour, it should be neither too fast nor too slow.
Like Goldilocks, it should be just right.
10. Flexible
When appropriate, a flexible approach can make the difference between a good and a great tour guide.
Being flexible means being open to serendipity, taking a moment to enjoy spontaneous moments like a
particularly perfect sunset.

International Civil Aviation Organization (ICAO)

The International Civil Aviation Organization is a specialized agency of the United Nations. It codifies the
principles and techniques of international air navigation and fosters the planning and development of
international air transport to ensure safe and orderly growth.[2] Its headquarters are located in the Quartier
International of Montreal, Quebec, Canada.
The ICAO Council adopts standards and recommended practices concerning air navigation, its infrastructure,
flight inspection, prevention of unlawful interference, and facilitation of border-crossing procedures for
international civil aviation. ICAO defines the protocols for air accidentinvestigation followed by transport
safety authorities in countries signatory to the Chicago Convention on International Civil Aviation.
The Air Navigation Commission (ANC) is the technical body within ICAO. The Commission is composed of
19 Commissioners, nominated by the ICAO's contracting states, and appointed by the ICAO Council.[3]
Commissioners serve as independent experts, who although nominated by their states, do not serve as state or
political representatives. The development of international Standards And Recommended Practices is done
under the direction of the ANC through the formal process of ICAO Panels. Once approved by the
Commission, standards are sent to the Council, the political body of ICAO, for consultation and coordination
with the Member States before final adoption.
ICAO is distinct from other international air transport organizations, like the International Air Transport
Association (IATA), a trade association representing airlines; the Civil Air Navigation Services Organization
(CANSO), an organization for Air navigation service providers (ANSPs); and the Airports Council
International, a trade association of airport authorities.
Strategic Objectives
 
ICAO Strategic Objectives 2011-2013
 
As the global forum for cooperation among its Member States and with the world aviationcommunity, the
International Civil Aviation Organization (ICAO) sets standards and recommendedpractices for the safe
and orderly development of international civil aviation. In its ongoing missionto foster a global civil
aviation system that consistently and uniformly operates at peak efficiencyand provides optimum safety,
security and sustainability, ICAO has established three StrategicObjectives:
Safety
: Enhance global civil aviation safety
 Security
: Enhance global civil aviation security
 Environmental Protection and Sustainable Development of Air Transport
: Fosterharmonized and economically viable development of international civil aviation that doesnot
unduly harm the environment.

The International Civil Aviation Organization (ICAO) - Purposes

ICAO's aims and objectives, as stated in the Chicago Convention, are to foster the planning and
development of international air transport so as to ensure the safe and orderly growth of international civil
aviation throughout the world; encourage the arts of aircraft design and operation for peaceful purposes;
encourage the development of airways, airports, and air navigation facilities for international civil
aviation; meet the needs of the peoples of the world for safe, regular, efficient, and economical air
transport; prevent economic waste caused by unreasonable competition; ensure that the rights of
contracting states are fully respected and that every contracting state has a fair opportunity to operate
international airlines; avoid discrimination between contracting states; promote safety of flight in
international air navigation; and promote generally the development of all aspects of international civil
aeronautic

 World Tourism Organization (UNWTO)

The World Tourism Organization (UNWTO) is the United Nations agency responsible for the promotion of
responsible, sustainable and universally accessible tourism. It is the leading international organization in the
field of tourism, which promotes tourism as a driver of economic growth, inclusive development and
environmental sustainability and offers leadership and support to the sector in advancing knowledge and
tourism policies worldwide. It serves as a global forum for tourism policy issues and a practical source of
tourism knowledge. It encourages the implementation of the Global Code of Ethics for Tourism[1] to
maximize the contribution of tourism to socio-economic development, while minimizing its possible negative
impacts, and is committed to promoting tourism as an instrument in achieving the United Nations Sustainable
Development Goals (SDGs), geared towards eliminating poverty and fostering sustainable development and
peace worldwide. UNWTO generates market knowledge, promotes competitive and sustainable tourism
policies and instruments, fosters tourism education and training, and works to make tourism an effective tool
for development through technical assistance projects in over 100 countries around the world.
UNWTO’s membership includes 156 countries, 6 territories and over 500 affiliate members representing the
private sector, educational institutions, tourism associations and local tourism authorities. Its headquarters are
located in Madrid.
PRIORITIES

Mainstreaming tourism in the global agenda: Advocating the value of tourism as a driver of

socioeconomic growth and development, its inclusion as a priority in national and international policies
and the need to create a level playing field for the sector to develop and prosper. 

Improving tourism competitiveness: Improving UNWTO Members’ competitiveness through

knowledge creation and exchange, human resources development and the promotion of excellence in
areas such as policy planning, statistics and market trends, sustainable tourism development, marketing
and promotion, product development and risk and crisis management. 
Promoting sustainable tourism development: Supporting sustainable tourism policies and practices
which make optimal use of environmental resources, respect the socio-cultural authenticity of host
communities and provide socio-economic benefits for all.

Advancing tourism’s contribution to poverty reduction and development: Maximizing the

contribution of tourism to poverty reduction and achieving the SDGs by making tourism work as a tool
for development and promoting the inclusion of tourism in the development agenda. 

Fostering knowledge, education and capacity building: Supporting countries to assess and address
their needs in education and training, as well as providing networks for knowledge creation and
exchange. 

Building partnerships: Engaging with the private sector, regional and local tourism organizations,
academia and research institutions, civil society and the UN system to build a more sustainable,
responsible and competitive tourism sector. 

Structure/ Function World Tourism Organization 

General Assembly
The General Assembly is the principal gathering of the World Tourism Organization. It meets every two years to
approve the budget and programme of work and to debate topics of vital importance to the tourism sector. Every
four years it elects a Secretary-General. The General Assembly is composed of Full Members and Associate
Members. Affiliate Members and representatives of other international organizations participate as observers.
The World Committee on Tourism Ethics is a subsidiary organ of the General Assembly.

Regional Commissions
UNWTO has six regional commissions-Africa, the Americas, East Asia and the Pacific, Europe, the Middle East
and South Asia. The commissions meet at least once a year and are composed of all the Full Members and Associate
Members from that region. Affiliate Members from the region participate as observers.

Executive Council
The Executive Council is UNWTO's governing board, responsible for ensuring that the Organization carries out its
work and adheres to its budget. It meets at least twice a year and is composed by Members elected by the General
Assembly in a ratio of one for every five Full Members. As host country of UNWTO´s Headquarters, Spain has a
permanent seat on the Executive Council. Representatives of the Associate Members and Affiliate Members
participate in Executive Council meetings as observers.

Committees
Specialized committees of UNWTO Members advise on management and programme content. These include: the
Programme and Budget Committee, the Committee on Statistics and the Tourism Satellite Account, the Committee
on Tourism and Competitiveness, the Committee on Tourism and Sustainability, the World Committee on Tourism
Ethics and the Committee for the Review of Applications for Affiliate Membership.

.Objectives
  To provide permanent information services on legislative, administrative and policy measures related to
the tourism sector.
  To provide a permanent tourism information referral service and a standardized tool for tourism
information transfer and exchange.
 To provide direct support to UNWTO Members, especially to National Tourism Administrations to permit
them to fully participate in the tourism information networking development.

Meaning of pacific Asia Travel Association

The Pacific Asia Travel Association (PATA) is a membership association working to promote the responsible
development of travel and tourism in the Asia Pacific region.

PATA INDIA
The PATA India Chapter was established in 1974 with a handful of members. It has grown to include 245
members and is one of the most dynamic Chapters in the Asia Pacific region today. With major support
from the Ministry of Tourism, Government of India which is the main and largest PATA India member
organization, the Chapter includes State Tourism Boards, Carriers, Hotels, Travel Agents, Tour
Operators, Service Providers and other travel-related companies.

The Chapter is proactive and responsive to the needs and requirements of the local industry and global
interests. The PATA India Chapter enhances interactivity within the business and trade eco-system
through its events and activities that are planned and executed keeping in mind domestic and global
business trends. The Chapter has excellent relations and works towards a collaborative common vision
with other trade bodies such as TAAI, IATO, ADTOI, ATOAI, HAI, FHRAI, TAFI, WTTC and
Domestic Tour Operators.

PATA publications, information and intelligence are made available to members, and developmental and
networking events are planned through the year. Chapter membership is distinct from PATA membership
and provides industry professionals the advantage of direct involvement in promotional and learning
activities.

An Executive Committee (EC) spearheads strategy and advocacy. The EC is made up of members from
within the industry. The office of the Chairman is held by the Secretary, Department of Tourism,
Government of India. Other office bearers are elected from within the Committee, for a term of two years.

Definition International Air Transport Association (IATA)

Private organization promoting cooperation among the world's scheduled airlines to ensure safe, secure,
reliable, and economical air services. Through IATA, local airlines have combined their individual
ticketing and reservation networks into a global system that overcomes differences in currencies, customs,
languages, and laws.
PRORITIES

Safety
Safety is the number one priority for IATA.[8] The main instrument for safety is the IATA Operational
Safety Audit (IOSA). IOSA has also been mandated at the state level by several countries. In 2017,
aviation posted its safest year ever, surpassing the previous record set in 2012. The new global Western-
built jet accident rate became the equivalent of one accident every 7.36 million flights. [9] Future
improvements will be founded on data sharing with a database fed by a multitude of sources and housed
by the Global Safety Information Center. In June 2014 the IATA set up a special panel to study measures
to track aircraft in flight in real time. The move was in response to the disappearance without trace
of Malaysia Airlines Flight 370 on 8 March 2014.[10]

Security
Security has become increasingly important following the September 11 attacks in 2001. Following a series of
uncoordinated rules by different countries, the industry has developed a Checkpoint of the Future, [11][12] which is
based on risk assessment and passenger differentiation.

Simplifying the Business

Simplifying the Business was launched in 2004. This initiative has introduced a number of crucial concepts to
passenger travel, including the electronic ticket and the bar coded boarding pass. Many other innovations are
being established as part of the Fast Travel initiative, including a range of self-service baggage options.
An innovative program, launched in 2012 is New Distribution Capability. This will replace the pre-Internet
EDIFACT messaging standard that is still the basis of the global distribution system /travel agent channel and
replace it with an XML standard. This will enable the same choices to be offered to high street travel shoppers
as are offered to those who book directly through airline websites. A filing with the US Department of
Transportation brought over 400 comments.

Environment
IATA members and all industry stakeholders have agreed to three sequential environmental goals:

1. An average improvement in fuel efficiency of 1.5% per annum from 2009 through 2020
2. A cap on net carbon emissions from aviation from 2020 (carbon-neutral growth)
3. A 50% reduction in net aviation carbon emissions by 2050 relative to 2005 levels.
At the 69th IATA annual general meeting in Cape Town, South Africa, members overwhelmingly endorsed a
resolution on “Implementation of the Aviation Carbon-Neutral Growth (CNG2020) Strategy.”
The resolution provides governments with a set of principles on how governments could:

 Establish procedures for a single market-based measure (MBM)

 Integrate a single MBM as part of an overall package of measures to achieve CNG2020
IATA member airlines agreed that a single mandatory carbon offsetting scheme would be the simplest and
most effective option for an MBM.

Services
IATA provides consulting and training services in many areas crucial to aviation.
Travel Agent accreditation is available for travel professionals. Full accreditation allows agents to sell tickets
on behalf of all IATA member airlines.
Cargo Agent accreditation is a similar program.
IATA also runs the Billing and Settlement Plan, which is a $300 billion-plus financial system that looks after
airline money.
And it provides a number of business intelligence publications and services.
Training covers all aspects of aviation and ranges from beginner courses through to senior management
courses.
IATA manages the Ticket Tax Box Service (TTBS), a database of taxes for airlines.

Strategic partners
IATA's Strategic Partners are aviation solution providers who, through their work with various IATA work
groups, help build and maintain relationships with key industry stakeholders and work with IATA in serving
the air transport industry.[21]

Main Objectives of the IATA

The International Air Travel Association is an international trade body set up by several airlines. It was
founded in Havana, Cuba, in 1945, but now has its headquarters in Montreal, Canada. It represents over
230 different airlines, which make up for about 93 percent of the total air traffic. The IATA’s mission is
“to represent, lead and serve the airline industry.”

 One of the objectives of the IATA is to help decision makers be informed and understand more
about the industry by increasing awareness of the contribution of aviation to the economies of
different countries and the world. The IATA takes up the causes of airlines across the world,
fighting their case when charges or taxes are unreasonably high, and tries to advocate pro-airline
regulations.
 As an industry leader, the IATA aims to help airlines simplify their systems and processes and
serve passengers better, while at the same time reducing costs and increasing their efficiency. Its
"Simplifying the Business" initiative is estimated to save the global airline industry a sum of 18.1
billion dollars every year. The IATA Operational Safety Audit program assesses the operational
management and control system of airlines.
 The IATA works with its member airlines to ensure the easy travel and transfer of goods and
services across different airlines and across the world, and to make sure they move with ease
traveling within a country in the same airline. It also helps airlines to train staff, offer consultation
and has publications that provide similar support.
 UNIT V

Meaning of passport

Passport is an official document containing your name, photograph, and personal details, which

you need to show when you enter or leave a country. An official document issued by the government of a
country to one of its citizens and, varying from country to country, authorizing travel to foreign countries
and authenticating the bearer's identity, citizenship, right to protection while abroad, and right to reenter
his or her native country.

TYPES OF PASSPORTS

A rough standardization exists in types of passports throughout the world, although passport types,
number of pages and definitions can vary by country.

Full passports

Passport (also called tourist passport or regular passport) – The most common form of passport, issued to
citizens and other nationals. Occasionally, children are registered within the parents' passport, making it
equivalent to a family passport.

Official passport (also called service passport) – Issued to government employees for work-related
travel, and their accompanying dependants.

Diplomatic passport – Issued to diplomats of a country and their accompanying dependents for official
international travel and residence. Accredited diplomats of certain grades may be granted diplomatic
immunity by a host country, but this is not automatically conferred by holding a diplomatic passport. Any
diplomatic privileges apply in the country to which the diplomat is accredited; elsewhere diplomatic
passport holders must adhere to the same regulations and travel procedures as are required of other
nationals of their country.

Emergency passport (also called temporary passport) – Issued to persons whose passports were lost or
stolen, without time to obtain a replacement. Laissez-passer are also used for this purpose.

Collective passport – Issued to defined groups for travel together to particular destinations, such as a
group of school children on a school trip.

Family passport – Issued to an entire family. There is one passport holder, who may travel alone or with
other family members included in the passport. A family member who is not the passport holder cannot
use the passport for travel without the passport holder. Few countries now issue family passports; for
example, all the EUcountries and Canada require each child to have their own passport.
Non-citizen passports

1.Latvia and Estonia

Non-citizens in Latvia and Estonia are individuals, primarily of Russian or Ukrainian ethnicity, who are
not citizens of Latvia or Estonia but whose families have resided in the area since the Soviet era, and thus
have the right to a non-citizen passport issued by the Latvian government as well as other specific rights.
Approximately two thirds of them are ethnic Russians, followed by ethnic Belarusians, ethnic Ukrainians,
ethnic Poles and ethnic Lithuanians.

Non-citizens in the two countries are issued special non-citizen passports as opposed to regular passports
issued by the Estonian and Latvian authorities to citizens. This practice has been described as xenophobic.

2.American Samoa

Although all U.S. citizens are also U.S. nationals, the reverse is not true. As specified in 8 U.S.C. § 1408,
a person whose only connection to the U.S. is through birth in an outlying possession (which is defined in
8 U.S.C. § 1101 as American Samoa and Swains Island, the latter of which is administered as part of
American Samoa), or through descent from a person so born, acquires U.S. nationality but not U.S.
citizenship. This was formerly the case in only four other current or former U.S. overseas possessions.

The U.S. passport issued to non-citizen nationals contains the endorsement code 9 which states: "THE
BEARER IS A UNITED STATES NATIONAL AND NOT A UNITED STATES CITIZEN." on the
annotations page.

Non-citizen U.S. nationals may reside and work in the United States without restrictions, and may apply
for citizenship under the same rules as resident aliens. Like resident aliens, they are not presently allowed
by any U.S. state to vote in federal or state elections, although, as with resident aliens, there is no
constitutional prohibition against their doing so.

3.United Kingdom

Due to the complexity of British nationality law, the United Kingdom has six variants of British
nationality. Out of these variants, however, only the status known as British citizen grants the right of
abode in a particular country or territory (the United Kingdom) while others do not. Hence, the UK issues
British passports to those who are British nationals but not British citizens, which include British
Overseas Territories citizens, British Overseas citizens, British subjects, British Nationals (Overseas) and
British Protected Persons.

Other types of travel documents

Laissez-passer — Issued by national governments or international organizations (such as the U.N.) as

emergency passports, travel on humanitarian grounds, or for official travel.
Interpol Travel Document — Issued by Interpol to police officers for official travel, allowing them to
bypass certain visa restrictions in certain member states when investigating transnational crime.

Certificate of identity (also called alien's passport, or informally, a Travel Document) — Issued under
certain circumstances, such as statelessness, to non-citizen residents. An example is the "Nansen
passport" (pictured). Sometimes issued as an internal passport to non-residents.

Refugee travel document — Issued to a refugee by the state in which she or he currently resides
allowing them to travel outside that state and to return. Made necessary because refugees are unlikely to
be able to obtain passports from their state of nationality.

Permits. Many types of travel permit exist around the world. Some, like the U.S. Re-entry Permit and
Japan Re-entry Permit, allow residents of those countries who are unable to obtain a permit to travel
outside the country and return. Others, like the Bangladesh Special Passport, the Two-way permit, and the
Taibaozheng (Taiwan Compatriot Entry Permit), are used for travel to and from specific countries or
locations, for example to travel between mainland China and Macau, or between Taiwan and China.

Chinese Travel Document — Issued by the People's Republic of China to Chinese citizens in lieu of a
passport.

Hajj passport — a special passport used only for Hajj and Umrah pilgrimage to Mecca and Medina.

Travel visa

A visa (from the Latin charta visa, meaning "paper which has been seen") is a conditional authorization
granted by a country to a foreigner, allowing them to enter, remain within, or to leave that country. Visas
typically include limits on the duration of the foreigner's stay, territory within the country they may enter,
the dates they may enter, the number of permitted visits or an individual's right to work in the country in
question. Visas are associated with the request for permission to enter a country and thus are, in some
countries, distinct from actual formal permission for an alien to enter and remain in the country. In each
instance, a visa is subject to entry permission by an immigration official at the time of actual entry, and
can be revoked at any time.

Types

Each country typically has a multitude of categories of visas with various names. The most common types
and names of visas include:

1.By purpose

•Transit visas

For passing through the country of issue to a destination outside that country. Validity of transit visas are
usually limited by short terms such as several hours to ten days depending on the size of the country or
the circumstances of a particular transit itinerary.

Airside transit visa, required by some countries for passing through their airports even without going
through passport control.
Crew member, steward or driver visa, issued to persons employed or trained on aircraft, vessels, trains,
trucks, buses and any other means of international transportation, or ships fishing in international waters.

Short-stay or visitor visas

For short visits to the visited country. Many countries differentiate between different reasons for these
visits, such as:

Private visa, for private visits by invitation from residents of the visited country.

Tourist visa, for a limited period of leisure travel, no business activities allowed.

Visa for medical reasons, for undertaking diagnostics or a course of treatment in the visited country's
hospitals or other medical facilities.

Business visa, for engaging in commerce in the country. These visas generally preclude permanent
employment, for which a work visawould be required.

Working holiday visa for individuals traveling between nations offering a working holiday program,
allowing young people to undertake temporary work while traveling.

Athletic or artistic visa, issued to athletes and performing artists (and their supporting staff) performing
at competitions, concerts, shows and other events.

Cultural exchange visa, usually issued to athletes and performing artists participating in a cultural
exchange program.

Refugee visa, issued to persons fleeing the dangers of persecution, a war or a natural disaster.

Pilgrimage visa: this type of visa is mainly issued to those intending to visit religious destinations, as for
example in Saudi Arabia or Iran, and to take part in particular religious ceremonies. Such visas can
usually be obtained relatively quickly and at low cost; however, those using them are usually permitted to
travel only as a group. The best example is Hajj visas for Saudi Arabia.

Digital nomad visa, for digital nomads who want to temporarily reside in a country while performing
remote work. Thailand launched its SMART Visa, targeted at high expertise foreigners and entrepreneurs
to stay a longer time in Thailand, with online applications for the visa being planned for late 2018.
Estonia has also announced plans of a digital nomad visa, after the launch of its e-Residencyprogram.

•Long-stay visas

Visas valid for longer but still finite stays:

Student visa (F-1 in the U.S.), which allows its holder to study at an institution of higher learning in the
issuing country. The F-2 visa allows the student's dependents to accompany them in the U.S.

Research visa, for students doing fieldwork in the host country.

Temporary worker visa, for approved employment in the host country. These are generally more
difficult to obtain but valid for longer periods of time than a business visa. Examples of these are the
United States' H-1B and L-1 visas. Depending on a particular country, the status of temporary worker
may or may not evolve into the status of permanent resident or to naturalization.

Journalist visa, which some countries require of people in that occupation when traveling for their
respective news organizations. Countries which insist on this include Cuba, China, Iran, Japan, North
Korea, Saudi Arabia, the United States (I-visa) and Zimbabwe.

Residence visa, granted to people obtaining long-term residence in the host country. In some countries,
such as New Zealand, long-term residence is a necessary step to obtain the status of a permanent resident.

Asylum visa, issued to people who have suffered or reasonably fear persecution in their own country due
to their political activities or opinion, or features, or association with a social group; or were exiled from
their own country.

Immigrant visas

Granted for those intending to immigrate to the issuing country (obtain the status of a permanent resident
with a prospect of possible naturalization in the future):

Spouse visa or partner visa, granted to the spouse, civil partner or de facto partner of a resident or
citizen of a given country to enable the couple to settle in that country.

Marriage visa, granted for a limited period before intended marriage or civil partnership based on a
proven relationship with a citizen of the destination country. For example, a German woman wishing to
marry an American man would obtain a Fiancée Visa (also known as a K-1 visa) to allow her to enter the
United States. A K1 Fiancée Visa is valid for four months from the date of its approval.[11]

Pensioner visa (also known as retiree visa or retirement visa), issued by a limited number of countries
(Australia, Argentina, Thailand, Panama, etc.), to those who can demonstrate a foreign source of income
and who do not intend to work in the issuing country. Age limits apply in some cases.

•Official visas

These are granted to officials doing jobs for their governments, or otherwise representing their countries
in the host country, such as the personnel of diplomatic missions.

Diplomatic visas are normally only available to bearers of diplomatic passports.

Courtesy visas are issued to representatives of foreign governments or international organizations who do
not qualify for diplomatic status but do merit expedited, courteous treatment - an example of this is
Australia's Special purpose visa.
Difference Between Passport and Visa

BASIS FOR
PASSPORT VISA
COMPARISON

Meaning Passport is a legal document, that the
government of a country issues to its
citizens, authorizing to travel abroad
and certifying the identity and
nationality of the holder.
Visa means an official permission granted
by the authorized officer of the country and
affixed in the passport, allowing the bearer
to enter, travel or stay in the country for the
duration specified.

What is it? It is a personal identification. It is an official permission.

Form Legal Document Stamp

Purpose To identify a person when travelling To enter and stay within a foreign country.
foriegn country and also to reenter in
the country of citizenship.

Issued by Government of the country you Representative officials you are wiling to
belong. visit.

Authority to issue Specific Government Department Embassy or Consulate

Emigration

Emigration is the act of leaving one's resident country with the intent to settle elsewhere. Conversely,
immigration describes the movement of persons into one country from another. Both are acts of migration
across national boundaries.

Demographers examine push and pull factors for people to be pushed out of one place and attracted to
another. There can be a desire to escape negative circumstances such as shortages of land or jobs, or
unfair treatment. People can be pulled to the opportunities available elsewhere. Fleeing from oppressive
conditions, being a refugee and seeking asylum to get refugee status in a foreign country, may lead to
permanent emigration.

Forced displacement refers to groups that are forced to abandon their native country, such as by enforced
population transfer or the threat of ethnic cleansing.
Push and pull

Demographers distinguish factors at the origin that push people out, versus those at the destination that pull them
in. Motives to migrate can be either incentives attracting people away, known as pull factors, or circumstances
encouraging a person to leave.
Push factors

 Lack of employment or entrepreneurial opportunities;

 Lack of educational opportunities;
 Lack of political or religious rights;
 Threat of arrest or punishment;
 Persecution or intolerance based on race, religion, gender or sexual orientation;
 Inability to find a spouse for marriage.
 Lack of freedom to choose religion, or to choose no religion;
 Shortage of farmland; hard to start new farms (historically);
 Oppressive legal or political conditions;
 Struggling or Failing economy;
 Military draft, warfare or terrorism;
 Famine or drought;
 Cultural fights with other cultural groups;
 Expulsion by armed force or coercion;
 Overpopulation.

Pull factors

 Favourable letters relatives or informants who have already moved; chain migration
 Better opportunities for acquiring farms for self and children
 Cheap purchase of farmland
 Quick wealth (as in a gold rush)
 More job opportunities
 Promise of higher pay
 Prepaid travel (as from relatives)
 Better welfare programmes
 Better schools
 Join relatives who have already moved; chain migration
 Building a new nation (historically)
 Building specific cultural or religious communities
  Political freedom

Immigration

Immigration is the international movement of people into a destination country of which they are not natives or
where they do not possess citizenship in order to settle or reside there, especially as permanent residents or
naturalized citizens, or to take-up employmentas a migrant worker or temporarily as a foreign worker.
As for economic effects, research suggests that migration is beneficial both to the receiving and sending countries.
Research, with few exceptions, finds that immigration on average has positive economic effects on the native
population, but is mixed as to whether low-skilled immigration adversely affects low-skilled natives. Studies show
that the elimination of barriers to migration would have profound effects on world GDP, with estimates of gains
ranging between 67 and 147 percent

Difference between immigration and Emigration

1.Immigration means movement of people to a country and emigration means movement of people from a
country.
2.Immigration can be called as moving into a country and emigration as moving out of a country.
3.An immigrant is one who migrates to a nation and emigrant is one who migrates away from his home
country.
4.Immigration is Latin immigrare that means ‘to go into’. Emigration comes from Latin emigrare, which
means ‘to move’.
5.Immigration and emigration have the same meaning ‘moving into’ but are opposed to each other in
direction.
6.Though there are specific laws for immigration and emigration, the former is very strictly controlled by
the host nations, as they are much concerned about their own citizens.

Foreign exchange market

The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-
counter (OTC) market for the trading of currencies. This market determines the foreign exchange rate. It
includes all aspects of buying, selling and exchanging currencies at current or determined prices. In terms
of trading volume, it is by far the largest market in the world, followed by the Credit market.
The main participants in this market are the larger international banks. Financial centers around the world
function as anchors of trading between a wide range of multiple types of buyers and sellers around the
clock, with the exception of weekends. Since currencies are always traded in pairs, the foreign exchange
market does not set a currency's absolute value but rather determines its relative value by setting the
market price of one currency if paid for with another

The foreign exchange market is unique because of the following characteristics:

1. Its huge trading volume, representing the largest asset class in the world leading to high liquidity;

2. Its geographical dispersion;

3. Its continuous operation: 24 hours a day except weekends, i.e., trading from 22:00 GMT on Sunday
(Sydney) until 22:00 GMT Friday (New York);

4. The variety of factors that affect exchange rates;

5. The low margins of relative profit compared with other markets of fixed income; and

6. The use of leverage to enhance profit and loss margins and with respect to account size.

Balance of payments

The balance of payments, also known as balance of international payments and abbreviated B.O.P. or
BoP, of a country is the record of all economic transactions between the residents of the country and the
rest of the world in a particular period (over a quarter of a year or more commonly over a year). These
transactions are made by individuals, firms and government bodies. Thus the balance of payments
includes all external visible and non-visible transactions of a country. It is an important issue to be
studied, especially in international financial management field, for a few reasons.

First, the balance of payments provides detailed information concerning the demand and supply of a
country's currency. For example, if Mauritius imports more than it exports, then this means that the
supply of rupees is likely to exceed the demand in the foreign exchanging market, ceteris paribus. Second,
a country's balance of payments data may signal its potential as a business partner for the rest of the
world. If a country is grappling with a major balance of payments difficulty, it may not be able to expand
imports from the outside world. Third, balance of payments data can be used to evaluate the performance
of the country in international economic competition. Suppose a country is experiencing trade deficits
year after year. This trade data may then signal that the country's domestic industries lack international
competitiveness
BOP Components

The balance of payments has three components. They are the financial account, the capital account and
the current account.The financial account describes the change in international ownership of assets. The
capital account includes any financial transactions that don't affect economic output. The current account
measures international trade, the net income on investments and direct payments. Here are the balance of
payments components and how they work together.

1. Financial Account
The financial account measures 1) changes in domestic ownership of foreign assets and 2) foreign
ownership of domestic assets. If foreign ownership increases more than domestic ownership does, it
creates a deficit in the financial account. This means the country is selling off its assets, like gold,
commodities and corporate stocks, faster than it is acquiring foreign assets.
2. Capital Account

The capital account measures financial transactions that don't affect a country's income, production or
savings. For example, it records international transfers of drilling rights, trademarks and copyrights. Many
capital account transactions happen infrequently, such as cross-border insurance payments. The capital
account is the smallest component of the balance of payments.

3. Current Account

The current account measures a country's trade balance plus the effects of net income and direct
payments. When the activities of a country's people provide enough income and savings to fund all their
purchases, business activity and government infrastructure spending, then the current account is in
balance.

4. Current Account: Deficit

A current account deficit is when a country's residents spend more on imports than they save. To fund the
deficit, other countries lend to, or invest in, the deficit country's businesses. The lender country is usually
willing to pay for the deficit because its businesses profit from exports to the deficit country. In the short
run, the current account deficit is a win/win for both nations.But if the current account deficit continues
for a long time, it will slow economic growth. Why? The foreign lenders will begin to wonder whether
they will get an adequate return on their investment. If demand falls off, the value of the borrower
country's currency may also decline. This leads to inflation as import prices rise. It also creates higher
interest rates as the government must pay higher yields on its bonds.

5. Current Account: U.S. Deficit

The U.S. current account deficit reached a record $803 billion in 2006. That created concern about the
sustainability of such an imbalance. Even though the recession scaled it back, it appears it's on the rise
again.
6. Current Account: Trade Balance

The trade balance measures a country's imports and exports. This is the largest component of the current
account, which is itself the largest component of the balance of payments. Most countries try to avoid a
trade deficit, but it's a good thing for emerging market countries. It's helps them grow faster than they
could if they maintained a surplus.

7. Trade Balance: U.S. Imports and Exports

The United States traded $4.9 trillion with foreign countries in 2016. That was $2.2 trillion in exports and
$2.7 trillion in imports. It's the third-largest exporter, but the top importer. With its size and wealth, it
should be exporting more. One of the major challenges to U.S. exports is that other countries have lower
standards of living. They can make things more cheaply because they pay their workers less.

8. Current Account: Trade Deficit Definition

A trade deficit results when a country's imports more than it exports. Imports are any goods and services
produced in a foreign country, even if produced overseas by a domestic company.Therefore, a trade
deficit can occur even if all the imports are being sold by, and sending profit to, a domestic firm. With the
rise of multinational corporations and job outsourcing, trade deficits are on the rise.

9. Current Account: U.S. Trade Deficit

A large part of the U.S. trade deficit is caused by America's reliance on foreign oil. When oil prices rise,
so does the trade deficit. America also imports a lot of automobiles and consumer products. U.S. exports
include many of the same things, but not enough to outweigh the deficit.

The IMF definition of Balance of Payment

The International Monetary Fund (I.M.F.) use a particular set of definitions for the BoP accounts, which
is also used by the Organisation for Economic Co-operation and Development (OECD), and the United
Nations System of National Accounts (SNA).

The main difference in the IMF's terminology is that it uses the term "financial account" to capture
transactions that would under alternative definitions be recorded in the capital account. The IMF uses the
term capital account to designate a subset of transactions that, according to other usage, previously
formed a small part of the overall current account. The IMF separates these transactions out to form an
additional top level division of the BoP accounts. Expressed with the IMF definition, the BoP identity can
be written:

The IMF uses the term current account with the same meaning as that used by other organizations,
although it has its own names for its three leading sub-divisions, which are:

The goods and services account (the overall trade balance)

The primary income account (factor income such as from loans and investments)

The secondary income account (transfer payments)

balance of payments are also known as "balance of international trade"

Package tour

A package tour, package vacation, or package holiday comprises transport and accommodation advertised
and sold together by a vendor known as a tour operator. Other services may be provided such a rental car,
activities or outings during the holiday. Transport can be via charter airline to a foreign country, and may
also include travel between areas as part of the holiday. Package holidays are a form of product bundling.
Package holidays are organised by a tour operator and sold to a consumer by a travel agent. Some travel
agents are employees of tour operators, others are independent.

Travel insurance

Travel insurance is insurance that is intended to cover medical expenses, trip cancellation, lost luggage,
flight accident and other losses incurred while traveling. Travel insurance can usually be arranged at the
time of the booking of a trip to cover exactly the duration of that trip, or a "multi-trip" policy can cover an
unlimited number of trips within a set time frame.
Some credit card issuers offer automatic travel insurance if travel arrangements are paid for using their
credit cards, but these policies are generic and particular care must be taken to take into account personal
requirements. There are many travel insurance policies available in the market place, but care must be
taken of what events are covered by each policy, and what exclusions, exceptions and limits apply,
besides other issues.

Coverage types

The most common risks that are covered by travel insurance plans are:
1.Medical treatment, including transportation to the medical facility.
2. Cancellation, curtailment and trip interruption

This section covers any unused travel and or accommodation costs, pre-paid charges (including any
additional travel expenses incurred, provided they are deemed reasonable and necessary) if a trip is
canceled or cut short under a variety of circumstances, which may include any of the following,
depending on the policy:

1. death, bodily injury, illness, disease, or pregnancy complications

2. compulsory quarantine
3. jury service
4. being called as a witness
5. termination of employment (provided you did not know about it before you booked the holiday)
6. being called up if you are a member of the armed forces or other public defense or safety
organization
7. prohibition of travel by the government to the intended destination
8. officially recommended evacuation from the intended destination
9. official advisory against going to or remaining at the intended destination
10. death or serious illness of a family member (subject to age restrictions).
11. Repatriation of remains
12. Return of a minor
13. Trip cancellation
14. Trip interruption
15. Visitor health insurance
16. Accidental death, injury or disablement benefit
17. Overseas funeral expenses
18. Lost, stolen or damaged baggage, personal effects or travel documents
 19. Delayed baggage (and emergency replacement of essential items)
20. Flight connection was missed due to airline rescheduling or delay.
21. Travel delays due to weather
22. Hijacking

Medical expense coverage can be per-occurrence or maximum-limit.

Optional coverage

Some travel policies will also provide cover for additional costs, although these vary widely between
providers.

1. In addition, often separate insurance can be purchased for specific costs such as:
2. Pre-existing conditions (e.g. asthma, diabetes)
3. Sports with an element of risk (e.g. skiing, mountain climbing, scuba diving)
4. Travel to high risk countries (e.g. due to war, natural disasters or acts of terrorism)
5. Additional AD&D coverage
6. Rental Car Coverage
7. Cancel for Any Reason Coverage
8. 3rd party supplier insolvency (e.g. the hotel or airline to which you made non-refundable pre-
payments has gone into administration)
9. Acute onset of pre-existing conditions
10. Specific event coverage, (e.g., to cover travel cancellation costs if the reason the person is
travelling, such as a concert, is cancelled. )