TOURISM ORGANIZATIONS

Objectives and Role of ITDC, ASI, TFCI; Ministries of Railways and Civil aviation in Development

SUBJECT: HOSPITALITY AND TOURISM MANAGEMENT

CENTER FOR BUSINESS ADMINISTRATION

SUBMITTED BY: MD IRFAN AHMAD CUJ/1/2009/MBA/15

SUBMITTED TO: C NAGAPAVAN SIR ASSISTANT PROFESSOR CENTRAL UNIVERSITY OF JHARKHAND

INTRODUCTION The development of any industry needs an organisation to plan, develop, and monitor its progress and growth and the tourism industry is no exception. Organisations are formed when groups of people come together for a common purpose or interest .They work together to achieve the purpose i.e. the aims & objectives which the organisation has laid down. These can be best achieve when there is unified action through a formal structuring of its members so that the organisation can work efficiently & effectively as a team & develop the industry. Tourism organisations thus play an important role in marketing destination and managing countrys tourism industry. NEED FOR TOURISM ORGANISATIONS Tourism organisations are essential for the following reasons: Different sectors of the industry are interdependent on each other. For example, for a Tour to be successful, many sectors such as transport , accommodation, transfers and entertainment need to work in harmony. Many of the vendors/operators are small scale operators and need an association to defend and protect their rights. The tourist market is fragmented and organisations help in reaching the potential customers. Destination can be located far apart, especially in case of international tourism. Tourism has to develop in a planned manner if it is to remain sustainable. Factors like importance of tourism in generating foreign exchange, employment prospects, national interests and at times the stage of development have determined the need for such organisations and accordingly influenced their growth and functions. VARIOUS TOURISM ORGANISATIONS IN INDIA INDIAN 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:

OBJECTIVES OF ITDC 1. To construct, take over and manage existing hotels and market hotels, Beach Resorts, Travellers' Lodges/Restaurants. 2. To provide transport, entertainment, shopping and conventional services. 3. To produce, distribute tourist publicity material. 4. To render consultancy-cum-managerial services in India and abroad. 5. To carry on the business as Full-Fledged Money Changers (FFMC), restricted money changers etc. 6.To provide innovating, dependable and value for money solutions to the needs of tourism development and engineering industry including providing consultancy and project implementation. Operations of ITDC: Presently ITDC has the following business groups: 1. Ashoka Group of Hotels (accommodation and cultural division). 2. Ashoka Travel & Tours (travel trade division). 3. Duty and Tax Free Shops (shopping division). 1. Ashoka Groups of Hotels: - The Ashoka chain is the largest hotel chain in public sector undertaking. Originally it was providing accommodation at those places where the private sector afraid to invest in the lodging sector. Now it runs hotels all over the country. ITDC hotels industry ranges from Five Star to lodge. It has thirty-eight properties at twenty-eight permanent tourist places. These properties are divided into elite, classic and comfort hotels as Samrat in New Delhi, Kaniska in New Delhi, Ashoka in Jaipur and Traveler Lodge in Manali. 2. Ashoka Travel & Tours: - ITDC in house travel agency was established in1983. It offers the number of packages towards both domestic and international. It has the largest fleet of cars and coaches. It also promotes domestic tourism and launched number of packages which

Pilgrim Programs and Buddhist are the latest packages in collaboration with railways. The inhouse travel agencies also handle conference and inbound tours. 3. Duty and Tax Free Shops: - The Corporation to facilitate airport shopping has created thirty-two duty free shops in the arrival and departure lounges at Delhi, Mumbai, Kolkata, Chennai and Goa. Tax free shops are at Ashoka hotel, New Delhi. This trade is consistency providing revenue to the corporation. Duty free shops have contributed 38% of the net profit of ITDC. The Govt. has decided to operate ten more duty free shops in near future. ROLE OF ITDC IN TOURISM & TRAVEL TRADE: There is no doubt, that ITDC is at the four front of Indian Tourism which elaborate infrastructure of hotels, beach resorts, travel agencies, car rental services, convention and conference facility across length and breadth of the country. During the recent years, the corporation has entered into the joint venture agreement with several State Govts. to set up mid-market over budget hotel. It has also offered tour packages in collaboration with Air India, State Tourism Corporation and Indian Railways as Enjoy India for domestic tourist and Discover India pilgrim tours and Buddhist tours etc. Role of ITDC can be better understood in the following lines: 1. Help India as a tourist destination. 2. Help in the development of infrastructure. 3. Helps in the promotion of domestic tourism in collaboration with railway. 4. Provides consultancy services. 5. Provides inbound tourist traffic. 6. Provides training facilities. 7. Work as a full fledge money changers (FFMC). 8. Provide transport, entertainment, duty free shopping, and convention services.

ARCHAEOLOGICAL SURVEY OF INDIA (ASI) The archaeological survey of India (ASI), under the ministry of culture, is the premier organisation for the archaeological researches and the protection of culture heritage of nation. Objective of ASI The objective of the ASI is to maintain the ancient monuments, archaeological sites, and remains of national importance. Besides this, it regulates all archaeological activities in the country. For the maintenance of ancient monuments and archaeological sites and remains of national importance, the entire country is divided in to 24 circles. Role of ASI The ASI have a large work force of trained archaeologists, conservators, epigraphists, architects and scientists for conducting archaeological research through its circles, museums, excavations, branches, prehistory branch, epigraphy branches, science branch, horticulture branch, building survey project, temple survey projects, and underwater archaeology wing. There are at present more than 3650 ancient monuments and archaeological sites and remains of national importance. These monuments belong to different periods, ranging from prehistoric period to the colonial period and are located in different geographical setting. They include temple, mosque, tombs, churches, cemeteries, forts, palaces, step wells, rock-cut caves, and secular architecture as well as ancient mounds and sites, which represent the remains of ancient habitation. These monuments and sites are maintained and preserved through the various circles of the ASI spread all over the country. The circles look after the research on these monuments and conservation activities; the science branch , with its headquarter at Dehradun, carries out chemical preservation, and the horticulture branch, with its head quarter at Agra, is entrusted with laying out gardens and environmental development.

TOURISM FINANCE CORPORATION OF INDIA (TFCI) The Government of India had, pursuant to the recommendations of the National Committee on Tourism viz Yunus Committee set up under the aegis of Planning Commission, decided in 1988, to promote a separate All-India Financial Institution for providing financial assistance to tourism-related activities/projects. In accordance with the above decision, the IFCI Ltd. along with other All-India Financial/Investment Institutions and Nationalised Banks promoted a Public Limited Company under the name of "Tourism Finance Corporation of India Ltd. (TFCI)" to function as a specialised All-India Development Financial Institution to cater to the financial needs of tourism industry. TFCI was incorporated as a Public Limited Company under the Companies Act, 1956 on 27th January 1989 and became operational with effect from 1st February 1989 on receipt of Certificate of the Commencement of Business from the Registrar of Companies. TFCI has been notified as a Public Financial Institution under section 4A of the Companies Act, 1956, vide Notification No S.O 7(E) dated the 3rd January 1990 issued by the Ministry of Industry, Department of Company Affairs. TFCI's Registered office is situated at 13th Floor, IFCI Tower, 61, Nehru Place, New Delhi - 110 019. TFCI Objective TFCI provides financial assistance to enterprises for setting up and/or development of tourism-related projects, facilities and services, such as: Hotels Restaurants Holiday Resorts Amusement Parks Multiplexes and Entertainment Centres Education and Sports Safari Parks Rope-ways

 Cultural Centres Convention Halls Transport Travel and Tour Operating Agencies Air Service Tourism Emporia Sports Facilities etc. Forms of Financial Assistance Rupee Loan Underwriting of public issues of shares/debentures and direct subscription to such securities Guarantee of deferred payments and credit raised abroad. Equipment Finance Equipment Leasing Assistance under Suppliers' Credit Working-Capital Financing Takeover Financing Advances against Credit-Card Receivables Role of TFCI TFCI provides financial assistance to enterprises, for setting up and/ or development of tourism related activities, facilities and services, which inter-alia include hotels, restaurants, holiday resorts, amusement parks and complexes for entertainment, education and sports, safari parks, rope-ways cultural centers, convention halls, all forms of transport industry, air-taxis, travel and tour operating agencies, tourism emporia, sports facilities etc.

 TFCI also co-ordinates and formulates guidelines and policies related to financing of such projects. As a developmental role, TFCI organizes seminars /participates in tourism-related activities organized by Ministry of Tourism, Government of India and by the trade bodies /associations etc. TFCI provides all forms of financial assistance for new, expansion, diversification/ modernisation projects in tourism industry and/ related activities, facilities and services. TFCI follows RBI guidelines with regard to Individual and Group exposure norms in relation to the net owned funds of TFCI. Appraisal criteria for processing of tourism related projects with regard to Promoters' contribution, Debt-Equity Norms, Average Room Occupancy levels and Rates are constantly reviewed by TFCI Board and the guidelines are formulated accordingly. For meeting the fund requirements thereof as well as towards its various other business operations, TFCI raises resources directly from the market (at market-related interest rates) from retail as well as institutional investors - both within India and abroad, through a variety of investor-friendly instruments. TFCI's resource raising efforts have brought it closer to all sections of society. TFCI has been mobilizing resources through a combination of debt and equity. It made a public issue of equity shares in 1994. TFCI's shares are National Stock Exchange, Mumbai, Delhi, Ahmedabad and Madras stock exchanges and dematerialised with National Securities Depositories Ltd. (NSDL and Central Securities Depository Services (I) Ltd. (CSDSL).or Central Depository Services (India) Ltd. (CSDSL). CSDSL depositories where the securities of an investor are held in electronic form through the medium of Depository Participants (DPs). This facility obviates the difficulties of loss, signing of transfer deeds, delay in transfer, etc. and offers scope for paperless trading. Besides the paid up capital of Rs. 67.42 crores and the internal generations, TFCI meets its requirements of funds by way of borrowings viz. private placements of bonds, line of credit from institutions /banks, certificate of deposit etc. at competitive rates with a view to keep the cost of funds at minimum level.

RAILWAY & TOURISM In Indian railways operate certain reasonably priced tour packages across the nation for domestic as well as foreign tourists. These tour packages are categorised under the Bharat Darshan plan with wide ranging destinations and tourism packages. Tourism train also play very important role in varied parts of the country to introduce, reintroduce, live and relive the real, ancient India, its heritage and culture. Indian railways has already introduce exotic and high end trains for the luxury market. Indian Railway Catering and Tourism Corporation Ltd.(IRCTC) has been set up by the Ministry of Railways with the basic purpose of hiving off entire catering and tourism activity of the railways to the new Corporation so as to professionalise and upgrade these services with public-private participation. Rail based Tourism in India will be the specific vehicle for achieving high growth in coordination with state agencies, tour operators, travel agents and the hospitality industry . Objective of IRCTC (1) To be a customer friendly company through constant innovation, technology driven and human resource development. (2) Optimise resources, increase manpower productivity through quality product vending and innovative marketing strategies. (3) Upgrade and consolidate catering services in the organized sector. (4) Expand areas of core competencies, enhance business opportunities through efficient public - private partnerships to maximise generation of resources. (5) Imbibe strong and ethical work culture through teamwork, build and reposition Indian Railways in the emerging services sector. (6) Evolve high standards of business ethics, quality management and effective cost control measures. (7) Concern for the environment and heritage.

ROLE OF IRCTC Running of Special Train, Special Charters / Coach and promotion of Value added tours,

Railway Tourism has seen excellent growth in India Right from IRCTC's inception, we have undertaken dynamic marketing strategy with major tour operators and State Tourism as our partners for providing exclusive tour packages across the country. At present IRCTC is providing following Tourism services across India : Buddhist Circuit Special Train IRCTC has designed a train for the Buddhist Circuit keeping in mind the profile of Buddhist tourists. It covers important sites connected to life of Buddha and Agra : Bodh Gaya , Sarnath , Kushinagar , Lumbini , Shravasti , Rajgir , Nalanda. The train offers comprehensive on board and off board services comprising of catering, housekeeping, hotel accommodation, road transport, sightseeing, trained tourist guides, security, medical facilities, insurance etc. all inclusive in the package. This train won the National Tourism Award in Feb., 2009 Bharat Darshan Village on Wheels IRCTC is operating Bharat Darshan Village on Wheels Train for Budget Traveller @ Rs 500/- per day (all inclusive package). The package includes Train journey, The itineraries range from 7 to 20

accommodation, road transport, site seeing, meals etc.

days covering major tourist and religious places across India . Rail Tour Packages IRCTC offers all Inclusive packages with confirmed Rail reservation, hotel accommodation, road transportation, meals, sightseeing etc. At present over 70 packages for important tourist destinations across India covering Kerala, Rajasthan, Tamilnadu, Karnataka, Jammu & Kashmir, Uttar Pradesh etc. are being operated. Hill Charters The Steam trains are operated on Darjeeling Himalayan Railway, Kangra Valley Railway, Kalka-Shimla Railway and Nilgiri Mountain Railway. Hill charters showcase the special characteristics of the respective hill sections with heritage stations, seasonal features, breath taking scenery & adventure tourism. IRCTC offers single window value added services.

 Educational Tours IRCTC offers Educational Tours Package with rich educational content and in a caring environment for the students of educational institutions across the country. The facility is being used by Kendriya Vidyala Sangathan, Sarva Shiksha Abhiyan of Tamil Nadu and West Bengal and Delhi State Government Schools. Tourism Portal IRCTC's tourism portal www.railtourismindia.com , is the fast growing a one stop travel shop and meet all the travel & tourism needs of a tourist. Online booking of tour packages, hotels and Car Rental across the country is becoming increasingly popular through this National Tourism Award winner tourism portal of IRCTC. Budget Hotel IRCTC is planning to develop Budget Hotels through Public Private Partnership. Budget Hotels are to be set up in the vicinity of railway stations for tourists and rail users. These Budget Hotels will provide quality guestrooms with modern facilities, dcor and ambience on affordable prices, choice of food and beverage services and Web enabled reservation system. At present four budget hotels are operational at New Delhi , Howrah , Puri & Ranchi in the existing buildings. Luxury Tourist Train IRCTC has set up a 50:50 JV Company, Royale India Train Tours Limited (RIRTL) in Participation with M/s Cox & Kings India Limited. RIRTL will run Pan India Luxury Tourist Train. Estimated Cost of the train is Rs.49.48 Crore. The Luxury Train named as Maharajas' Express is owned by IRCTC. Marketing and operation of the Maharajas' Express would be done by RIRTL. The train was officially unveiled at the ITB Berlin in March, 2009. Role of IRCTC in Tourism Development in Brief Launching of a Luxury Tourist Train with pan India itineraries.

 Thrust of Educational Tour on All India basis. Further development of rail tour package business Strategic tie-ups for promoting tourism Comprehensive travel services to foreign tourists booking tickets on IRCTC website. MINISTRY OF CIVIL AVIATION The Ministry of Civil Aviation is responsible for formulation of national policies and programmes for the development and regulation of the Civil Aviation sector in the country. It is responsible for the administration of the Aircraft Act, 1934, Aircraft Rules, 1937 and various other legislations pertaining to the aviation sector in the country. Main functions of the Ministry of Civil Aviation and Tourism are : a. Framing of laws and formulation of policies relating to civil aviation and its implementation; b. Modernising and upgrading of airports, air routes and air services; c. Managing matters relating to air space control, safe take off of aircrafts, aeronautical inspection and supervision of issuance of licences for aircrafts and pilots; d. Framing of laws and rules relating to registration of travel agencies and their implementation; e. Framing of laws and formulation of policies on tourism in Bangladesh and its implementation, up gradation in the contest of globalisation; f. Undertaking research for development of tourism industry, its modern management and development of efficient manpower; g. Establishment, operation and control of associated/servicebased organisations relating to the overall development of tourism industries; and h. Signing of contracts relating to civil aviation and tourism with local and international organisations and their coordination.

CONCLUSION The tourism industry has recognised the fact that successful tourism can be best achieved through a consolidated effort of government and private organisations. These organisations need to with the various sectors of the tourism industry to ensure that they function harmoniously and with maximum profits. At the same time these organisations should ensure easy accessibility, adequate facilities, safety, and value for money for the tourists, leading to the customer delight.