Tourism Industry In India (Nov 2006)

Tourism Industry in India (Nov 2006)

Contents

Ð'* Introduction

Ð'* Incredible India

Ð'* Boom Time

Ð'* Economic Growth Engine

Ð'* India on the World Map

Ð'* The scene till now

Ð'* Govt Policies and Initiatives

Ð'* Open Eyes- Open Arms

Ð'* Challenges

Ð'* Conclusion

Ð'* References

Introduction

It is boom time for India's Tourism and Hospitality sector. Driven by a surge in business traveller arrivals and a soaring interest in India as a tourist destination, the year 2006 has been the best year till date.

Incredible India !!

India is probably the only country that offers various categories of tourism. These include history tourism, adventure tourism, medical tourism (ayurveda and other forms of Indian medications), spiritual tourism, beach tourism (India has the longest coastline in the East) etc.

Explore India - choose the locales of your choice, and see what each state has to offer. Lose yourself in the wonder that is India. Meander through lands steeped in chivalry and pageantry that begin before recorded history. Explore modern cities that have grown organically from the roots of a multi-hued past. Make a pilgrimage to holy shrines that echo with tales of antiquity. Frolic on a vast array of golden beaches that dot an enviable coastline, washed by two seas and an ocean. Sport with adventure in style. Let the jungle lure you to a fascinating world at a diverse array of wildlife sanctuaries and national parks....... this is the wonder that is India.

Indian Tourism industry is one of the most important export industries of the country. Although the international tourist inflow is relatively low, India has found tourism emerging as an important sector of its economy.

Tourism yields substantial foreign exchange for India. It is turning into a volume game where a large number of participants are contributing to the revenue of the industry. Segments such as hotels, tour operators, airlines, shipping etc., are significant contributors to this revenue.

With lot of imagination and ideas the Indian tourism sector is gathering momentum and is set to have not only large numbers of foreign tourists but also make a big share in the country's Gross Domestic Product ( GDP ). Recent statistics have revealed that during the first quarter of 2006, the performance of the tourism industry has been very encouraging which has registered an 11% increase in foreign tourist arrivals.

RNCOS' recent market research report, "Indian Tourism Industry Outlook ( 2006 )" draws a colorful picture about the future of Indian tourism as its share of employment is expected to account 10%, including self-employment.

According to the market researchers, in 2006, the total in-bound tourists were 1.28Mn while the same was 1.14Mn in 2005. The resulting foreign exchange earnings were as high as 12% of an amount of $1,780Mn.

Boom time !

According to global hotel and hospitality consulting firm, HVS International, the strong performance in tourist arrivals in 2005 can be attributed to a strong sense of business and investment confidence in India inspired by:

Ð'* India's strong GDP performance

Ð'* Strengthening of ties with the developed world, and

Ð'* Opening of sectors of the economy to private sector/ foreign investment.

The efforts made by the Ministry of Tourism & Culture in the last few years have had a salutary effect on India's tourism industry.

Ð'* Foreign tourist arrivals are expected to witness a growth of 78 per cent in 2006 over 2001 (last 5 years)

Ð'* Growth in foreign exchange earnings is expected to be of the order of 122 per cent during this period.

Ð'* As per estimates (Ministry of Tourism), on an average, about 3.1 million additional jobs per year have been created directly and indirectly in the tourism sector in the last four years.

India is fast emerging as one of the most enticing destinations for the global leisure traveller. The Readers Travel Awards 2006, conducted by CondÐ"© Nast Traveller has recently placed India at number four among the world's must-see countries, up from number nine in 2003. The Incredible India campaign has also been a huge success.

An economic growth engine

As an engine for economic growth, the tourism and hospitality sector cuts across the rural-urban divide, and bridges economic boundaries. According to The World Travel & Tourism Council's 2006 Travel and Tourism Economic Research, the travel and tourism sector in India is expected to generate a total demand of US$ 53,544.5 million of economic activity in 2006, accounting for nearly 5.3 per cent of GDP and 5.4 per cent of total employment.

According to the report, the sector is expected to grow at a rate of 8.4 per cent in 2006 and by 8 per cent per annum, in real terms, between 2007 and 2016.

Growth in the tourism and hospitality sector

GDP Employment Visitor Exports Personal T&T Capital Investment Government Expenditure

Outlook for 2006 (Real Growth) 7.8% 1.4% 10.9% 6.9% 8.3% 7.7%

By 2020, Tourism in India could contribute Rs 8,50,000 crores to the GDP. (Source- WTTC).

In other words, every man, woman and child could become richer by Rs 7,000. India has yet to realise its full potential from tourism. The Travel and Tourism industry holds tremendous potential for India's economy. It can provide impetus to other industries, create millions of new jobs and generate enough wealth to help pay off the international debt. That is why we have included Tourism amongst the Core Sectors of the Indian Economy.

India