Indian Tourism Sector

P.G.D.M 2010‐2012

Submitted by:
Deepak Upadhyay
 Tourism Industry
• Tourism is largest industry in world
• Economic impacts of Tourism
– Government Revenue
– Foreign exchange revenue
– Employment generation
– New Business Opportunities

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 Tourism growth in India
• According to World Tourism Organization estimates,
India will lead in South Asia with 8.9 million arrivals
by 2020

• India is poised to emerge as the 2nd fastest growing

(8.8%) tourism economy in the world over 2005-14
according to the World Travel & Tourism

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 Global Tourism Forecast

Forecast of Tourist arrival by region (in million) -2020

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 Tourist destinations
• North East – States such as Sikkim, Assam and Nagaland
have emerged as major players. The major focus in 2005
was to develop tourism infrastructure in the region.

• New States – Uttaranchal attracted 14 million tourists

and in 2004 witnessed a growth of 40% in 2005. Major
focus on marketing to attract high spending tourists,
initiatives to create world-class infrastructure.

• Beautiful South – Aggressive marketing has helped

achieve over 25% growth in tourism in southern states.
Andhra Pradesh and Karnataka are witnessing an
upswing
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in foreign tourists.
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 Forms of tourism
• Cultural tourism & Round Trips – covering the
popular circuits comprising of the Golden Triangle,
Rajasthan, N. India & in South the well known
temples, backwaters & beaches.

• Mass tourism – Goa is a tourism based economy

and a leader in this sector, is all set to promote mass
tourism. Goa also won the 2nd most popular winter
destination in UK.

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 An all-year round destination
• Throughout the world,
India is perceived as a
October to April winter
destination.

• Marketing initiatives by
both the Government
and the private sector is
now successfully
addressing & changing
this perception.
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 New Tourism Products
• Monsoon magic - focus on months from April to October

• Rural & village tourism - the tourism ministry is laying

special emphasis on infrastructure development in various
rural destinations in India.

• Medical tourism - the Indian Healthcare Delivery market

is estimated at US$ 18.7 billion. The industry is growing at
about 13 per cent annually.

• Luxury tourism – e.g. Palace on Wheels, Palaces

• Adventure
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tourism –SriSIIM
with emphasis
Deepak Upadhyay
on eco-tourism 8
 Benefits of tourism
• There has been a positive change in perception about the benefits of
tourism in the minds of planners, policy makers and as well as state
governments in India.

• Tourism is now being seen as an engine of growth for the economy

and a key employment generator.

– Low Capital Investment in the trade.

– Imports earn foreign exchange.

– Cultural revival/ regeneration

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 Ecotourism in Kerala
• There has been a major
growth in ecotourism
that is sustainable and
environmentally non-
invasive.
• Resorts are designed
using local labour forces
and local materials.
• Energy sources are
sustainable: cow dung
and wood
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 The market for Ecotourism
• Ecotourism tends
to be geared to a
young and wealthy
market.

• Activities are
marketed and life
style emphasised.

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 Medical tourism in India
 India has world class corporate hospitals and
excellent treatment Centres in the world.
 Hospital infrastructure & technology on par
with USA, UK & other European countries
 No waiting period
 Success rate – India -- 98.7%
-- US – 97.5%
 Immediate attention / treatment / surgery

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 Medical tourism in India
 Best Nursing Care with compassion
 Language no barrier – English speaking staff
 Low cost (1/10th), high quality, affordable
best healthcare

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 Confederation of Indian Industry (C II) sponsored Mc
Kinsey & Co. study.–“Healthcare in India : The Road Ahead”
report:-
 1.3 million medical tourists visit Asia / year

 Nos. of US patients seeking cheaper care abroad - grew

to 7,10,000 / year

 Over 1, 50000 medical tourists travelled to India in 2002

bringing in earnings of $ 300 million.
 2006-07 > 3,00000

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The size of Indian Medical Tourism sector estimated in 2002
to be min 1,00000 to 1,50,000 foreign patients per year
(Medical Tourists) .
The annual growth rate of Medical Tourism in India
2000 – 15% per year

2007 – 30% per year

Kerala - > 8000 patients annually.
Cardiac, Ortho & Ayurveda treatment
- KIMS (2007) – 40,000 medical tourism patients

Hospital ‘A’ in Bangalore - reported 900 medical tourists per

year.
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 “India’s Tourist Industry could yield from $ 1.2
billion presently to $ 2.2 billion annually by 2012 .

The growth rate of Medical Tourism Industry @

12% in 2002 will go to @ 30% annually by 2012 .
Up market private care in India to be worth from
Rs.15000 crores to Rs. 30,000 crores by 2012
Medical Tourism revenue can potentially rise from
Rs. 5000 crores to Rs.10,000 crores per year.

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$ 17 billion Indian Healthcare Industry contributes about
4% -5% of GDP. It is expected to grow @ 13% annually in
next 5 yrs.

Health care spending in India will increase from Rs. 86,000

crores in 2000-2001 to over Rs. 200,000 crores by 2012.

Private Health care share will form the largest of this @

Rs.156,000 crores and growth will be driven by rising life
style diseases.

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 Anatomy of Medical Value Travel – (Eonomic
Potential)

 Travel tourism
+
 pleasure, physical & mental relaxation
+
 value addition of medical
treatment at lowest cost

=Medical Tourism
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 Economic Crisis, Credit Crisis & Recession
in USA - Will it affect Medical Tourism
market in India ?
• No
• There are almost 50 million Americans with
no health insurance
• Canada - > 700000 patients waiting for
procedures/surgery for > 6 months- 1yr
• It can have a very positive impact on tourism
industry in India for hospital & allied
healthcare industry who position themselves
in the right direction .
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 Planning Commission Report -
 Govt will provide ‘M’ Visa to Medical Tourists on
priority.
 Most patients visit from SAARC + US &UK
 Lowest cost -
o Heart Bypass Surgery -
India Thailand Singapore US / UK
$ 6000 $ 7894 $ 23,983 $19,700
o Heart Valve Replacement Surgery
$ 8000 $ 10,000 $ 12500 US $ 20000
UK & 90,000
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 Comparative Cost Analysis
Metal Free Dental Bridge
India – US
$ 500 $ 5500

Bone Marrow Transplant

India US UK
$ 30,000 $ 250,000- $40,000 $ 150,000
Cosmetic Surgery
India Thailand US Singapore
$ 2000 $ 35,00 $ 10,000 -
Spinal Fusion
$ 5500 $ 7000 $ 62,000 $ 9000
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 To India

UK, USA, Canada, Middle East, South East Asia Medical

Tourists

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