Beruflich Dokumente
Kultur Dokumente
On
Tourism Industry of Kenya
Business Opportunities for Gujarat / India
Submitted to:GUJRAT TECNOLGICAL UNIVERSITY
Institute Name: Marwadi Education Foundations Group of
Institute Faculty of Management
Institute Code: 734
Under the Guidance of
Prof. MEERA MODI
Assistant Professor
In partial Fulfillment of the Requirement of the award of the
degree of
Master of Business Administration (MBA)
Offered By
Gujarat Technological University
Ahmedabad
Prepared by:
Students of
MBA (Semester - IV)
Group No. : 7
Month & Year: May, 2014
1
Institute Certificate
Certified that this Global Country Study and Report T itled
Tourism Industry of Kenya Business Opportunities for Gujarat /
India is the bonafide work of attached student list with
enrollment numbers, who have carried out their research under
my/our supervision. We also certify further, that to the best of my
knowledge the work reported herein does not form part of any other
project report or dissertation on the basis of which a degree or award
was conferred on an earlier occasion on this or any other
candidate. I/we have also checked the plagiarism extent of this
report which is 13.8 %. and the separate plagiarism report in the
form of html /pdf file is enclosed with this.
Plagiarism report
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PREFACE
As part of our MBA programme, we have been assigned with some practical and
theoretical project work, which are called Global/ country study report. In partial
fulfillment of the project, we have prepared a country study report on TOURISM
INDUSTRY OF KENYA Business Opportunities for Gujarat/INDIA.
Study of the management will be immaterial if it is not coupled with study of practical
aspect of the business. It gives student opportunity to learn the connection between
comparison and execution to test and verify application of theories and practical. The
study gives a chance to know about industries, trade relations, factors affecting
economy and various aspect of starting business in Kenya.
10
Acknowledgement
I would like to acknowledge vice chancellor of Gujarat Technological University
Mr. Akshai Agraval for giving us an opportunity to get exposure and acknowledge of
international market and global business through this global country study report. We
are also heartily thankful to GCR coordinator MS. Meera mody for his all-time support.
given us an active support and who has stand like pillars for concrete Global Country
Study report.
11
List of Contents
Particulars
Sr. no.
Page no.
13
31
40
44
23
48
51
52
7
8
9
10
11
53
59
62
66
70
12
73
13
77
14
78
15
Bibliography
81
12
COUNTRY: KENYA
CAPITAL: NAIROBI
OFFICIAL LANAGUAGE: ENGLISH, SWAHILI
NATIONALITY:KENYAN
AREA OF KENYA: 581,309 Km2
13
14
General
The Republic of Kenya is an equatorial nation on the coast of East Africa, neighboring
Somalia, Ethiopia, Sudan, Uganda, Tanzania, and the Indian Ocean. Kenya has seven
administrative provinces plus the Nairobi Area. Provinces are further divided into
districts. Kenya is a one-party state with Executive, Legislative, and Judicial branches.
The President is head of government and chief of state.
Kenyas population of more than 31 million is growing at an annual rate of 2.2%.
(Census, World Bank 2000) The countrys GNP per capita estimated at purchasing power
parity (PPP) is $975, and the GNP is growing at a rate of 0.1% annually. More than 26%
of Kenyas people live below the international poverty line of $1 per day. (World Bank)
About 75-80% of the labor force is occupied by agricultural activities.
Education
15
Health
The Government of Kenya, churches, private charities, and commercial agencies all
provide health services and facilities in the country. Public expenditure makes up 64.1%
of total health expenditure, while private spending accounts for 35.9%. (WHO) The
Government of Kenya also administers pension, welfare, and social security benefits,
and spends about 5-7% of its budget on health.
The nations total fertility rate (TFR) was 3.5 children per woman in 2001. The infant
mortality rate (IMR) was estimated to be about 68 deaths per 1,000 live births in 2001
(CIA), and the Maternal Mortality Ratio (MMR) was 590 deaths per 100,000 live births
from 1990 to 1998.
Nutrition programs are based at the district level. Some districts have implemented the
UNICEF CSD (Child Survival and Development) program, and some have formed or
proposed nutrition sub-committees of the District Development Committees (DDC). In
other districts, various NGOs carry out nutrition activities.
Kenyas main food crops are maize, wheat, pulses, roots and tubers. (FAO) The normal
lean season is in June and July. Severe drought in 1999-2000 led to decreased
agricultural production, and according to FAO, seriously undermined the food security
of 4.4 million people, particularly in pastoral areas. (FAO) In 1990, Kenya imported $125
million in food, and by 2000 the amount was $278 million.
Population
1990
1995
29,841,986
2002
Total
23,767,281
0-4 years
18.2%
16.1%
15.5%
13.6%
5-14 years
30.4%
29.7%
28.1%
27.4%
15+ years
51.4%
54.2%
56.4%
59%
2.2%
10.4
17
27,315,145
1999
31,138,735
$975
0.1%
26.5%
($1/day)
Literacy
1990
1996
2000
Females
61%
70.6%
76%
Males
81%
86.1%
88.9%
1999
age group)
Females
93%
92%
Males
97%
92%
1990
1999
Females
21%
29%
Males
28%
32%
1993/94
1994/95
1995/96
Education
17.2%
22.7%
20.8%
Health
5.4%
7.1%
5.9%
24.6%
32.7%
30.1%
68
1980
1998
115
124
age group)
79 (1997-99)
18
590 (1990-1998)
3.5
15
13.95%
96
sanitation
% Population with access improved water
87
Public Sources
Private
Sources
64.1
35.9
Weight/Age (< 2 z-score)
22%
33%
20.9 months
1.5 months
1980
1990
1999
1995
1889
2185
1886
1984
1959
1604
1736
1656
226
285
247
231
47.65
45.21
39.45
37.53
19
Grams
fish
and
seafood
available
8.2
20.27
15.89
12.33
(g/person/day)
TOURISM OF INDIA:
Indian business enterprise trade desires improvement in terms of behavior, honesty. it's
been seen that in Kingdom of Kenya the traits of behaviors were too sensible. Major
determinative issue like politeness, modesty, temperament to assist and settle for
individuals has promoted their business enterprise. The higher than activity traits need
to be strong and bolstered in Asian country. Asian country has robust earth science and
diversity in climate and culture.
The tourism industry of India is economically important and grows rapidly. World Travel
& Tourism Council calculated that tourism generated INR6.4 trillion 6.6% of the nation's
GDP in 2012. It supported 39.5 million jobs, 7.7% of its total employment. The sector is
predicted to grow at an average annual rate of 7.9% from 2013 to 2023. This gives India
the third rank among countries with the fastest growing tourism industries over the next
decade. India has a large medical tourism sector which is expected to grow at an
estimated rate of 30% annually to reach about 95 billion by 2015.
The Ministry of Tourism designs national policies for the development and promotion of
tourism. In the process, the Ministry consults and collaborates with other stakeholders in
the sector including various Central Ministries/agencies, sTAKe governments, Union
Territories and the represenTAKives of the private sector. Concerted efforts are being
made to promote new forms of tourism such as rural, cruise, medical and eco-tourism.
The Ministry also maintains the Incredible India campaign.
India's rich history and its cultural and geographical diversity make its international
tourism appeal large and diverse. It presents heritage and cultural tourism along with
20
People from across the planet currently come back to Asian country for writing, yoga
and mediTAKion in Rishikesh, Uttaranchal that's practiced since centuries. In truth Asian
country has quick emerged as a health business enterprise destination owing to these.
Since past, Asian country has been glorious for its spirituality and yoga tolerance and its
secular character. Asian country is termed the "Yoga-Bhoomi" and therefore the entree
to the heavens.
Asian country is internationally noted for its ancient healing practices and different
therapies. For over thousands of years currently, we've got followed our own native
healing systems and mediTAKive practices like writing, treatment, and Panic Healing to
call simply some. it's no surprise then that individuals from everywhere the planet
square measure turning to the Indian sub continent for steering towards a lot of
spiritually satisfying approach of life.
Majority of foreign tourists visiting Rishikesh believe that spiritual places provides a
peace of mind and that they feel spiritually happy. Thats why they like to create their
visits to spiritual places instead of daring, historical or exotic sites.
Kenyas economic process has created opportunities for U.S. firms during a variety of
infrastructure sectors, together with power, telecommunications, and renewable energy.
Kenyan customers square measure making opportunities for brand spanking new sales
21
of
automotive
accessories,
defense
instrumenTAKion,
broadcast
Tourism may be a booming trade in Asian country. With the amount of domestic and
international tourists rising once a year, this is often one hot sector entrepreneurs
should specialize in. Asian country with its various culture and wealthy heritage includes
a heap to supply to foreign tourists. Beaches, hill sTAKions, heritage sites, life and rural
life, Asian country has everything tourists square measure longing for.
But this sector isn't well union. Asian country lacks trained professionals within the
business enterprise and welcome sectors. Any business during this sector can thrive
within the long-standing time because the demand injures to grow once a year. Foreign
traveler arrivals throughout January-March were fifteen.63hundred thousand with a rate
of twelve.8 percent, compared to thirteen.86 hundred thousand throughout the primary
3 months last year.
22
23
Tourism in Kenya
Kenya offers many varied attractions. These include diving sites, sandy beaches,
hundreds of tropical islands, night-life, archaeological sites, museums, hill tribes,
exceptional flora and bird life, palaces, a large number of Buddhist temples and
several World Heritage sites. Many tourists follow courses during their stay in Kenya.
Popular are classes in Kenyan cooking, Buddhism and traditional Kenyan massage.
For years, Kenya has been ranked among the top tourist destinations of the world,
with about 50% of tourists coming from East Asia, followed by Europe and America.
Most foreign tourists choose to tour Bangkok, followed by the South and the central
region, while Kenyan tourists prefer touring the central region, followed by the
Northeast.
1. Ecotourism
2. Conservation tourism
3. Historical tourism
4. Cultural tourism
5. Rest and relaxation tourism
6. Recreational tourism
7. Shopping tours
8. Tours to neighboring countries
9. Festivals and Events
24
25
Weakness
Unable to attract customers who are not internet savvy.
Reluctance in customers to avail bookings through online payments
competitive market
Opportunity
Customers currently using traditional methods of bookings
Offer better travel packages in line with customer expecTAKion.
Untapped sections of international tourism market
Growing global markets.
Threats
Possible lack of co-ordination with tourism entities
Present competitors having substantial market share
Newly emerging online booking portals with better offerings
increasing costs
to the heart of the rich culture and history of Kenya by surrounding them in the
atmosphere of a traditional Kenyan village. We highlighted the experience with
interactive immersions in the culture of the destination, through cooking courses, fruit
carving demonstrations, a weekly floating market and even instruction in the traditional
martial art of Muay Kenyan.
Inspired by this success and the positive feedback received from their guests worldwide,
Sankara is proud to be bringing our unique brand of laid-back luxury, intuitive service
and sense of discovery to more breathtaking destinations across Asia.
27
Challenges
29
CONCLUSION
There is huge demand and tremendous potential for leisure tourism segment in the
Kenya destination, proper strategy implemenTAKion plan is need for business plan.
30
Foreign exchange earnings (FEE) from tourism grew by 19.8 percent in rupee terms in
31
February 2013 as compared to February 2012, although the FTA growth was much
lower; this also indicates an impressive growth in the exchange earnings per tourist that
was realised despite the ongoing slowdown in developed country markets, an increase in
the cost of travelling and a fluctuating exchange rate. Foreign tourists tend to spend
more in India than almost any other country worldwide. These are positive signs for the
industry, and indicate significant potential going forward.
tourists. This is reflected in the spurt in global tourist inflows since 2002.
In 2008, the Ministry of Tourism launched a campaign targeted at the local population to
educate them regarding good behavior and etiquette when dealing with foreign tourists.
Indian actor Aamir Khan was commissioned to endorse the campaign which was titled
'Atithi Devo Bhavah', which aimed at creating awareness about the effects of tourism
and sensitizing the local population about preservation of India's heritage, culture,
cleanliness and hospitality. The Ministry of Tourism had also launched a "Campaign
Clean India" to sensitize the masses about keeping Indian destinations clean.
According to World Travel and Tourism Council forecasts, India will be a tourism hotspot
from 2009 to 2018, having the highest 10-year growth potential. The onset of the
financial crisis in 2008 delayed the realisation of this potential, which resumed in 2010.
In recognition of the potential and domestic efforts, India was conferred three awards by
the World Travel Awards organization at the WTM 2012.
33
During the period January-February 2013, a total number of 3,637 VoAs were issued as
compared to 2,618 VoAs during corresponding period of 2012, registering a positive growth of
38.9 percent.
Foreign
Tourist
Arrivals(In
No.s)
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2649378
2537282
2384364
2726214
3457477
3918610
4447167
5081504
5282603
5167699
5775692
6290319
PercentageForeign
Change
Exchange
Over
Earnings
Previous
(Rs.
Year
Crore)
6.7
15626
-4.2
15083
-6
15064
14.3
20729
26.8
27944
13.3
33123
13.5
39025
14.3
44360
4
51294
-2.2
54960
11.8
64889
8.9
77591
34
PercentageForeign
Change
Exchange
Over
Earnings
Previous
(Million
Year
US$)
20.6
3460
-3.5
3198
-0.1
3103
37.6
4463
34.8
6170
18.5
7493
17.8
8634
13.7
10729
15.6
11832
7.1
11394
18.1
14193
19.6
16564
Percentage
Change
Over
Previous
Year
15
-7.6
-3
43.8
38.2
21.4
15.2
24.3
10.3
-3.7
24.6
16.7
The diversity that India is famous for, ensures that there is something to do for all
tourists in India, no matter what their interests.
Adventure tourism
As a kind of tourism in India, adventure tourism has recently grown in India. This involves
exploration of remote areas and exotic locales and engaging in various activities. For
adventure tourism in India, tourists prefer to go for trekking to places like Ladakh,
Sikkim, and Himalaya. Himachal Pradesh and Jammu and Kashmir are popular for the
skiing facilities they offer. Whitewater rafting is also catching on in India and tourists
flock to places such as Uttranchal, Assam, and Arunachal Pradesh for this adrenalinpacked activity.
Wildlife tourism
India has a rich forest cover which has some beautiful and exotic species of wildlife
some of which that are even endangered and very rare. This has boosted wildlife
tourism in India. The places where a foreign tourist can go for wildlife tourism in India
are the Sariska Wildlife Sanctuary, Keoladeo Ghana National Park, and Corbett National
Park.
35
Medical tourism
Tourists from all over the world have been thronging India to avail themselves of costeffective but superior quality healthcare in terms of surgical procedures and general
medical attention. There are several medical institutes in the country that cater to
foreign patients and impart top-quality healthcare at a fraction of what it would have
cost in developed nations such as USA and UK. It is expected that medical tourism in
India will hold a value around US$ 2 billion by 2012. The city of Chennai attracts around
45% of medical tourists from foreign countries.
Pilgrimage tourism
India is famous for its temples and that is the reason that among the different kinds of
36
tourism in India, pilgrimage tourism is increasing most rapidly. The various places for
tourists to visit in India for pilgrimage are Vaishno Devi, Golden temple, Char Dham, and
Mathura Vrindavan.
Eco tourism
Among the types of tourism in India, ecotourism have grown recently. Ecotourism entails
the sustainable preservation of a naturally endowed area or region. This is becoming
more and more significant for the ecological development of all regions that have tourist
value. For ecotourism in India, tourists can go to places such as Kaziranga National Park,
Gir National Park, and Kanha National Park.
Cultural tourism
India is known for its rich cultural heritage and an element of mysticism, which is why
tourists come to India to experience it for themselves. The various fairs and festivals that
tourists can visit in India are the Pushkar fair, Taj Mahotsav, and Suraj Kund mela.
37
Golf Tourism
India has several golf courses of international standards. Further, golf events held in
India also attract domestic and international tourists. With international tourists
expected to grow in the next few years, it is important that India has the right product to
meet the need of the visitors.
Polo Tourism
India has rich historical ties with many of the sporting traditions including Polo. The
game of Polo originated in India is one of the few countries in the world where this game
is still preserved and practiced. The Kolkata Polo Club is the oldest Polo club in the world
and is 150 year old. Therefore Polo can rightly be termed as "Heritage Sports" of India.
Rural Tourism
The development of infrastructure in rural areas having potential for tourism is being
supported under the existing scheme of destination development. The objective is to
showcase rural life, art, culture and heritage at rural locations and in villages, which have
core competence in art & craft, handloom, and textiles as also an asset base in the
natural environment. The intention is to benefit the local community economically and
socially as well as enable interaction between tourists and local population for a
mutually enriching experience.
38
Cruise Tourism
'Cruise Shipping' is one of the most dynamic and fastest growing components of the leisure
industry worldwide. It is fast emerging as a new marketable product. India with its vast and
beautiful coastline, virgin forests and undisturbed idyllic islands, rich historical and cultural
heritage, can be a fabulous tourist destination for cruise tourists. With the Indian economy
developing at a steady pace, middle class growing in number and increasingly possessing
disposal incomes which could be spent on leisure activities, Indians could also take on cruise
shipping in a big way.
People with different abilities and older persons are now becoming a growing group of
consumers of travel, sports and other leisure-oriented products and services. In an effort to
tap the potential of this group for promotion of tourist destinations in the country, the
Ministry of Tourism has taken an initiative to make tourist destinations barrier-free.
Guidelines have been issued for making the tourist-facilities which are being created with
central financial assistance, barrier-free.
Sector Outlook: WTTC has named India as one of the fastest-growing tourist destinations
in the world for the next 10-15 years. From 11 million travelers in 2008, the figure is
expected to touch 29 million visitors by 2018. There is an opportunity in the inbound
MICE sector, which has already registered a growth of 15 percent to 20 percent during
the last five years.
39
FDI in Kenya
Foreign investments in Kenya are meager and in 2011-2012 fell sharply due to the
political upheavals in the country, in 2011 and 2012. FDI flux should improve
progressively in the coming years.
Political tensions, corruption and security problems are some of the barriers
Kenya has to overcome in order to increase FDI in-flow. Even though most sectors are
open to foreign investments, infrastructures and media areas largely continue to be
monopolized by the State.
The banking and tourism sectors are the ones that attract most of the FDI. The
40
United Kingdom, the Netherlands, Belgium and South Africa are the main investor
countries.
Conservation tourism
Conservation tourism is a growing trend, because of the global warming phenomenon.
And the uniqueness of Kenyas natural and cultural resources helps make both visitors
and hosts keenly aware of the need to conserve and preserve the world they are passing
on. For this type of tourism, visitors tour natural and cultural sites with a sense of
responsibility; their objectives are to learn about and enjoy the destinations, as well as
create opportunities for residents and the Kenyan economy, so that resources of the
country are used sustainably.
Historical tourism
Kenya has several interesting historical sites available for tourism, such as the historical
parks in Ayutthaya and Si Satchanalai, where the past glory of the Kenyan Kingdom can
41
be felt, or the archeological sites of Ban Chiang and the Dinosaur Museum, which take
visitors back to ancient times.
Cultural tourism
Tourists find much of interest in Kenyan art and culture. Therefore, numerous attractions
in Kenya give tourists the opportunities to learn about Kenyan culture, including the
lifestyle of residents or ethnic hill tribes by leading the same way of life, practicing crafts
or agriculture through the home-stay accommodations, or even learning muay Kenyan
boxing and Kenyan cookery. Many tourists spend days touring Buddhist temples and
museums to see the important works of art on view.
Recreational tourism
The unique art and culture of Kenya have been combined with the new advances of the
modern world. Thus, all kinds of conveniences and fun-filled activities are ready to
welcome tourists, who, apart from enjoying peaceful rests, can also unwind with every
kind of activity available in Kenya, whether they find themselves at golf courses, zoos,
amusement parks, or night entertainment places
42
Shopping tours
Kenya offers an unbelievable range of merchandise for tourists who want to shop to
their hearts delight. There are world-famous brand-name products side by side with
Kenyan products, Kenyan brands, foreign brands, and local folk products, all made
available at leading compartment stores, along walking streets, weekend markets, or at
many villages and towns, not only in Bangkok. Tourists can enjoy shopping in all major
provinces in Kenya, all complete with foreign and Kenyan goods for their shopping
enjoyment.
43
packages, buses, and car rentals. We offer a host of travel services designed to make
business and leisure travel easier.
44
Yatra.com is an Indian online travel agency and a travel search engine based in Gurgaon,
Haryana, founded by Dhruv Shringi, Manish Amin and Sabina Chopra in August 2006. In
April 2012, it was the second largest online travel website in India, with 30 per cent
share of the 370 billion (US$6.2 billion) market for all online travel-related transactions.,
it also launched a "holiday-cum-shopping card" with STAKe Bank of India (SBI), India's
largest bank.
Acquisition
Yatra.com has made three acquisitions till nowticket consolidator Travel Services
International (TSI) in October 2010, global distribution system (GDS) provider
MagicRooms.in, and Indian events and entertainment portal BuzzInTown.comall for
undisclosed amounts. In June 2012, Yatra.com announced its plans to fully acquire
Travelguru.com from Travelocity Global.
Brand Ambassador
In March 2012, Yatra.com announced Bollywood actor Salman Khan not just as the
brand ambassador for the travel website but also as a shareholder. Earlier, Bollywood
actor Boman Irani has also been the brand ambassador for Yatra.com online flight
booking services.
Investors
Companies like Reliance Venture Asset Management Ltd, Web18 of TV18 Group (a joint
venture of NBCUniversal and the Network 18), Norwest Venture Partners and Intel
Capital have invested substantially in Yatra.com.In April 2011, the website announced
receiving funding of 2 billion (US$33 million) from blue chip investors including Valiant
Capital Management, Norwest Venture Partners (NVP) and Intel Capital.
45
47
Strengths
Yatra has the good products such as flights, cruises, hotels suites etc and well
versed and competitive partners which has grabbed the major market of the
travel industry.
Corporate tour is great opportunity for Yatra.com
Provides reservation facility for more than 3,800 hotels across 300 cities in India
and over 90,000 hotels around the world
high growth rate
skilled workforce
Salman Khan as Brand Endorser/ Ambassador
Weakness
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Opportunity
Customers currently using traditional methods of bookings
Offer better travel packages in line with customer expecTAKion.
Untapped sections of international tourism market
growth rates and profitability
income level is at a constant increase
growing demand
global markets
Threats
Possible lack of co-ordination with tourism entities
Present competitors having substantial market share
Newly emerging online booking portals with better offerings
global economy
growing competition and lower profitability
increasing costs
49
government regulations
tax changes
financial capacity
increase in labor costs
50
Sankara. The word in Sanskrit means "without end" and evokes the freedom, movement
and harmony that are the spirit of the Sankara Experience. Each Sankara Hotel and
Resort draws its strength from the rich cultural traditions, historic heritage and natural
beauty of its destination. As such, every experience is a unique voyage of discovery and
inspiration that is distinctly Sankara.
The Sankara Experience was born in 2001, with the launch of the first Sankara Resort in
Kenya's historic seaside resort enclave of Hua Hin. We sought to bring our guests closer
to the heart of the rich culture and history of Kenya by surrounding them in the
atmosphere of a traditional Kenyan village. We highlighted the experience with
interactive immersions in the culture of the destination, through cooking courses, fruit
carving demonstrations, a weekly floating market and even instruction in the traditional
martial art of Muay Kenyan.
Since then, we have brought the Sankara Experience to Kenya's far northern Golden
Triangle region, with the unique and world-renowned Sankara Elephant Camp
experience, and to the island of Samui, offering an immersion in the rich culture of
southern Kenya. In 2006, the Sankara Experience went global, with the launch of Sankara
in the Maldives, providing guests with the opportunity to live the fantasy of a truly
remote island getaway, before expanding further across Asia and the Middle East.
Inspired by this success and the positive feedback we have received from our guests
worldwide, Sankara is proud to be bringing our unique brand of laid-back luxury,
intuitive service and sense of discovery to more breathtaking destinations across Asia,
the Indian Ocean, Middle East and Africa, including Cambodia, China, Indonesia,
Maldives, Mozambique, Kenya, United Arab Emirates, and Vietnam. Inspiring passion,
personal freedom and an appreciation for the rich cultures of our world the art of the
Sankara Experience.
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Weakness
Limited global presence as compared to some other leading hotel chains.
Huge number of competitors means limited market share.
Opportunities
Growing market and tourism industry.
Foreign Tourists Arrival constantly growing.
Novel traveling concepts like Ecotourism, Medical Tourism.
52
Threats
International hotel chains entering in Kenya market.
Economy fluctuations affect tourism.
Domestic competition.
London, United Kingdom (UK) and Paris, France were second and third respectively.
According to the Tourism Authority of Kenya, 55% of the tourists in 2007 came from
the Asia Pacific region
From January to April 2013, the Tourism Authority of Kenya reported that 8,841,730
trips to Kenya were registered.
Domestic tourism has also grown significantly in the past decade. Revenues from
domestic tourism have gone from 187,898 million Swahili in 1998 to 380,417 million
Swahili (approximately 7.8 billion Euros) in 2007.
India, China and Russia will be the fastest growing markets for Kenyan tourism in 2014,
according to the Tourism Authority of Kenya (TAK). These three markets are mostly in the
medium- and low-end segments, TAK says. TAK projects the number of visitors from
India will reach 1.3 million this year. The spending per head of Indian tourists is
estimated around 5,281 Swahili per day, compared to 4,389 Swahili per day for general
54
tourists. Runjuan Tongrut, the TAKs director for North and East India, Bangladesh,
Bhutan and Nepal, says more than half of Indias population is less than 25 years old.
They will grow up and be a future tourism market, he voices. He also added that 94
percent of Indian tourists are Smartphone users and can access mobile internet, so
travel agents can use the online channel to promote their tourism products.
TAK forecasts a seven percent jump in overall foreign arrivals in Kenya, with revenue up
13 percent. Foreign arrivals are forecast to hit 28 million, an increase of seven percent
from the 2013 projection of 24.5 million. Tourism revenue next year is projected at 1.32
trillion Swahili, up 13 percent from this years estimate of 1.14 trillion Swahili.
How much money do visitors of different regions or countries spend in Kenya? Important
parameters are the number of visitors per region or country, the days spent in Kenya,
and the money spent per day a stay. These parameters vary somewhat widely between
regions and less so within countries of one particular region.
1.
55
56
As it can be seen that the lots of tourism is coming in are from the East Asian countries &
India.
So, Yatra.com have good business opportunities to attract Indian tourist who
57
wants to travel in Kenya, Because India is leading country who visited Kenya.
So, Yatra.Com have a opportunities to tie up with any Hotel & resort company
because as from the above chart we can analyze that most of the Travellers who
visist Kenya spend their money mostly into accommodation & food.
So investing into Kenya Food & Accomodation is not a Wrong Deal.
58
1. Strategic Alliances
A strategic alliance is an agreement between two or more parties to pursue a set of
agreed upon objectives needed while remaining independent organizations. This form of
cooperation lies between Mergers & Acquisition M&A and organic growth.
Partners may provide the strategic alliance with resources such as products, distribution
channels, manufacturing capability, project funding, capital equipment, knowledge,
expertise, or intellectual property. The alliance is a cooperation or collaboration which
aims for a synergy where each partner hopes that the benefits from the alliance will be
59
greater than those from individual efforts. The alliance often involves technology
transfer (access to knowledge and expertise), economic specialization, shared expenses
and shared risk.
An arrangement between two companies that have decided to share resources to
undertake a specific, mutually beneficial project. A strategic alliance is less involved and
less permanent than a joint venture, in which two companies typically pool resources to
create a separate business entity. In a strategic alliance, each company maintains its
autonomy while gaining a new opportunity. A strategic alliance could help a company
develop a more effective process, expand into a new market or develop an advantage
over a competitor, among other possibilities.
Advantages
The advantages of forming a strategic alliance include:
Allowing each partner to concentrate on their competitive advantage.
Learning from partners and developing competencies that may be more widely
exploited elsewhere.
Adequate suitability of the resources and competencies of an organization for it to
survive.
To reduce political risk while entering into a new market.
Stages of Alliance Formation
A typical strategic alliance formation process involves these steps:
Strategy Development: Strategy development involves studying the alliances
feasibility, objectives and rationale, focusing on the major issues and challenges and
development of resource strategies for production, technology, and people. It
requires aligning alliance objectives with the overall corporate strategy.
Partner Assessment: Partner assessment involves analyzing a potential partners
strengths and weaknesses, creating strategies for accommodating all partners
60
61
Fee
Validity of Visa
Validity of Stay
INR 2,000
3 Months
INR 4,000
6 Months
Applicant applying at Delhi / Chandigarh application center The visa fee is payable by
CASH or demand draft favoring VFS Global Services Pvt. Ltd. payable at New Delhi.
Bank Charge of INR30/per application will be paid in CASH only
Visa fee listed above are per applicant.
Documents Required
Tourist Visa
A Tourist Visa is issued to applicants who wish to enter Kenya for the purpose of tourism.
Documents Required: (For Application submitted in The Royal Kenyan Embassy, New
Delhi.)
The applicants must submit the following relevant documents, depending on the
purpose of their visit:
1. Passport or travel document with validity not less than 6 months with TWO
OPPOSITE BLANK PAGES
2. Visa Application Form completely filled out.
3. Two recent photographs of the applicant (3.5 x 4.5 cm) against white background.
4. Evidence of TransporTAKion (Any of below)
confirmed tickets in and out of Kenya
5. Evidence of adequate finance (Any of below)
Original receipt of endorsement of $700/person or
Original Bank STAKement from last month with minimum balance equally as
$700/person with bank stamp and signature or
Credit Card issued by a bank or financial institution along credit card sTAKement
from last month.
6. Proof of hotel/accommodation reservation in Kenya
7. Reserved under applicants name covering total number of days wished to say in
Kenya
8. If intend to stay with relatives or friends must provide inviTAKion letter along with
their ID/passport photocopy. In case they are not Kenyan, must provide their
working records in Kenya, e.g. work permit, letter from company they are working
with valid at least six months
9. international Health Certificate on Yellow Fever Vaccination for applicants traveling
from 45 countries
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2. Photo Specification
No. of Photos
Tourist Visa
2
3.5 x 4.5 cm
Non-Immigrant
Visa
2
3.5 x 4.5 cm
Two recent (not older than 3 months) color photographs taken against a white (clothes
color should be different from background) so that your features are clearly
distinguishable.
A person who always wears white for religious purpose, the photographs can be taken
against a light blue background.
The photographs should be clear and of good quality, and should be printed on normal
photographic paper. Please note that we will be unable to accept photographs that do
not meet these specifications.
Your full face should be visible. The photograph should be taken without sunglasses and
without a hat or any other head covering, unless you wear such an item because of your
religious beliefs or ethnic background.
3.
1. Delhi
Indian residents and foreign nationals applying for Transit, Tourist and NonImmigrant Visas can submit their applications at the VFS Kenya V isa Application
Centre geographically convenient to them
Kenya Visa Application Centre
8-11, UGF, Tolstoy House, Tolstoy Marg,
Connaught Place,
New Delhi 110 001
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Submission Timings:
Individual Applicants 08:00 to 13:00 hrs (Monday-Friday)
Travel Agents 08:00 to 11:00 hrs (Monday-Friday)
Processing Time 3 working days
2. Chandigarh
Indian residents and foreign nationals applying for Transit, Tourist and NonImmigrant Visas can submit their applications at the VFS Kenya V isa Application
Centre geographically convenient to them
Kenya Visa Application Centre
SCO 165-166, Madhya Marg Sec 8C,
Chandigarh-160018
Visa Application Submitted On:
Monday - Thursday
Day 5 Afternoon
Friday
Thursday Afternoon
65
Here both the company requires building such a mechanism that would help both
the firm to achieve above average return. In tourism business its necessary to
evaluate results of promotional and marketing campaign done for enhancing
customer awareness and loyalty towards the brand. But if company fails to evaluate
results of the campaign than entire investment becomes worthless for the firm.
Yatra.com & Sankara Both the firms set benchmark in their operation. But to
66
increase the tourism & customer loyalty towards his brand is challenging task for
both the firms, because both the firm requires lots of resources & marketing Strategy
to Attract Customer towards Company.
Credit card fraud is the most common type of crime affecting visitors. Use cash
wherever possible and only use ATMs attached to banks or major hotels. Dont lose
sight of your credit card if you use it. Some travelers experience problems using their
cards on arrival in Kenya when their banks automated fraud protection system
blocks transactions. It may be possible to avoid this by informing your bank in
advance of your intended travel arrangements. There are plenty of money-changers
in tourist areas if you want to change cash.
6. Inflation
Kenyas headline inflation is forecast to rise to 34 per cent in coming year. Inflation
pressures are increased by the high price of crude oil, in particular, but the problem
is global.
The rise in the price of crude oil is increasing the costs of air transportation, which in
turn is causing pressure to raise the price of air tickets. On the other hand, fuel costs
in airlines are only a part of total costs, although one of the biggest items of
expenditure. Moreover, aircraft energy-efficiency is improving: for example, the new
aircraft engines consume increasingly less fuel and emit fewer pollutants. The biggest
costs incurred by households are housing, transport and food. The rise in the global
market prices of crude oil and foodstuffs are raising the costs of these items, hence
there may be less disposable income for travel abroad.
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7. Environmental Issues
Environmental issues have arisen and intensified as air- pollution levels have become
so bad that people walk the streets of Bangkok with handkerchiefs across their faces.
Added to this are the traffic jams of cars and buses, which add significantly to air and
noise pollution in Nairobi and, increasingly, in other developed urban areas such as
Mombasa. Environmental issues have created negative results within the Kenyan
tourism industry.
Cleaning beaches and tourism destinations (such as World Heritage site at
Ayutthaya) will help relieve environmental concerns and improving the quality of
seawater at beach areas are ways to maintain the number of international tourists
and create positive responses to the country.
8. Political instability
69
70
6. Use of Advertising
Increase the awareness of services provide by the both the company with the
help of marketing campaigns in social media ,print media and other leading
mediums of advertising with option of low cost but luxuries tour experience.
8. 94 percent of Indian tourists are Smartphone users and can access the mobile
Internet, so Yatra.com and Sankara can use the online channel to promote the
products and services of company. Company can also goes for marketing and
promotions through digital and online networks as well as online games and mobile
applications.
9. To capture the high-end market in India, Sankara & Yatra.com can promote
honeymoon and wedding, because most of the Indian population are young &
Sankara is well known for Hotels & resorts so they can able to capture the attention
71
markets
To expand these markets, the Yatra.com & Sankara will try to attract medium- to
high-end tourists by providing economical tour package.
11. Both the company will put more effort to increase first-time visitors and high
spenders (luxury markets) through use of Digital technology, by making unique
image of Sankara hotel& resorts and Kenya tourism, by creating and serving tourist
in such way that they remain loyal to company.
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Risk management is an integral part of the Companys business process. With the help of
experts in this field, risks are carefully mapped and risk management frameworks
evolved. Pertinent policies and methods are set forth to mitigate such risks.
The Company must take several measures at all levels to beef up its security
preparedness. In addition to the physical security measures, the Company also takes care
about adequate insurance cover to meet financial obligations which may arise from any
untoward incidents.
To counter the risk from growing competition, both the Company must renovating and
continuously repositioning its properties. It is also improving its service standards to
provide exceptional services, consistently, across all its hotels and travel business.
Efficient Internal Control Systems
The Company has required establishing a well-structured internal control system. Various
policies and standard operating procedures covering all critical and important activit ies
viz. revenue assurance, hotel operations, purchase, finance, human resources, etc. These
policies & procedures are updated from time to time.
The focuses of efficient control system are as follow
73
Yatra.com and Sankara hotel requires giving importance to human resources and focuses
on high degree of professional learning and development, concern and care towards its
employees.
To ensure that there is transparency and higher level of integrity with the feedback
system, Employee Satisfaction Surveys are rolled out online, with very little human
interface. All feedbacks received are analyzed and worked upon to enhance work place
efficiencies and make the Company an 'Employer of Choice'.
Physical Resources
Whether a small home business or a retail operation with multiple locations, every
organization must have the appropriate physical resources to survive. This includes a
proper workspace, working telephone line, adequate information systems and effective
marketing materials. This aspect of business planning can be one of the costliest. As
such, it is important for an entrepreneur to realistically assess his needs before making
any purchases.
Emotional Resources
Starting a business can be an extremely stressful endeavor for an entrepreneur to
undertake. To maintain her sanity as well as stay motivated, it is important she have a
support team that can give her inspirations and guidance as needed. This team may be
composed of friends and family as well as a mentor or professional group.
74
Strategy
The next step is to know how customers will answer the question "why my hotel?"
How will you tailor your services to the customers you want to attract, whether they
are families with kids, couples on romantic vacations, businesspeople, or
international tourists? Consider the combination of amenities, atmosphere, location,
and services that will be right for your customers. Always keep in mind that strategy
means making tradeoffs - it is almost impossible to be everything to everyone and
succeed. You might have to forgo certain customer target markets in order to make
your service offering perfect for your most desired customers.
Planning
A simple, clear, but persuasive business plan will be necessary not only for company
to think through how they will take on the opportunity, but for company to convince
any investor or lender that they have the ability to do so. No savvy investor will be
attracted by a lack of planning. There is no excuse to not create a plan with the
wealth of information available on writing business plans and even business plan
templates tailored to the hotel business sector.
Finance
Whether you buy an existing hotel, build one from scratch, or renovate a building
into a hotel, or start a online travel company you will need millions of dollars to
invest. Assuming you do not have this money, you will need to seek bank loans
and/or angel investment in your business. As you will be working with considerable
assets, dependable and experienced legal and accounting help is a must as you
create deals with investors.
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Hospitality Mindset
Finally, you must have an ingrained sense of how you want your guests to be treated
so that you can instill this mindset in your top management and they can, in turn,
teach this to the staff. Staying at a hotel can be stressful and uncomfortable, and
guests demand the highest attention to their needs or they will have no problem
complaining loudly and publicly. If employees sense you have higher motives than
customer satisfaction, customer service may fall by the wayside and your hotel
business may fail or never take off in the first place.
76
Social networking & mobile internet are in increasing trends in overall world.
If we compare the internet marketing in tourism of both india and Kenya then we
find that india is having largest online market as compare to Kenya.
77
Business Model
report by Tourism Authority of Kenya (TAK) says that in 2013 the country has
set a target to lure 24.5 million tourists, up from 19.09 million in 2012, and
generate tourism-related revenue of 1.1 trillion Swahili, up from 734.5 billion
Swahili. The big target is for 2015. The Yingluck Shinawatra administration plans
to welcome 30 million tourists and earn two trillion Swahili from tourism.
TAK forecasts
403,000 millionaires within three years and the world's largest population, ahead
of China, in 2025.
With
the number of Indian visitors leaping 20.57 per cent to 916,787 last year,
Kenya was the No 1 destination while India became the sixth-largest source
market for the country, he said. This reflected the growing economy, improving
air access and facilities and increasing affordability.
According to
Indian tourists visited Kenya in 2012. Kenyan tourism estimates indicate the
figure will likely swell by 16 percent to about 11 lakh in the coming years.
78
TAK projects the number of visitors from India will reach 1.3 million this year. The
spending per head of Indian tourists is estimated around 5,281 Swahili per day,
compared to 4,389 Swahili per day for general tourists.
Business Strategy:
Yatra.com & SANKARA HOTEL & SPA make A Strategic Alliance
Sankara Hotel, Resorts, & Spa has not having good online travel system and make my
trip does not have any alliances with hotels, resorts, heritages etc. So it will be a
healthy deal for both the company
Through strategic alliance both the company will be able reduce the cost of
operation so it will be reduce the overall cost of serving the customer.
the demand.
Promote Tourism:
Do a Branding of 'Amazing Kenya: It begins with the People' With SANKARA, Kenya
Hospitality company.
Communicate emotional value of visiting the country & to stay in the Sankara
To make communication and Marketing Strategy by Keep in mind the culture and
Kenyan-ness. of Kenya
79
Provide product and service that crate unique experience for visitors
3. Affordable & Customized tour Package
Both the company can give the customized services in terms of travelling,
accommodation, food & entertainment.
It also possible through strategic alliance that both the company reduce the cost of
operation and other expenses so its reduced cost of tourism package offer to
customer and increase the sales revenue of both the firm.
80
percent of Indian tourists are Smartphone users and can access the mobile
Internet, so Yatra.com and Sankara can use the online channel to promote the
products and services of company. Company can also goes for marketing and
promotions through digital and online networks as well as online games and mobile
applications.
81
Business Model
Distributor
Suppliers
Hotel
SANKARA
SANKARA
Resorts
SANKARA
Spa
Entertainmen
t & Leisure
Service
Provided By
Hotel
SANKARA
Other
Car & Bus
Rental
Visa
Passport
Office
Cruise
line
Other
leisure
tourism
service
provider
Customers
Websites
Direct Office or
Agent
Customer
STRATEGIC
ALLIANCE
YATRA.COM
PVT. LTD.
Online B2B
Portal
Online B2C
Portal
82
Leisure
Business
CONCLUSION
This research has identified the market opportunities and weakness of Kenya
Tourism Company and Indian Tourism Company. As we wants to increase our
revenue so for that we have made business plan to improve the financial as well
as operational condition of company with the help of cooperative strategy
adoption and giving concept of 'Amazing Kenya: It begins with the People' for
enhance their leisure and luxuries tourism segment.
There is huge demand and tremendous potential for leisure tourism segment in
the Kenya destination, proper strategy implemenTAKion plan is need for business
plan.
83
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