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What is tourism?
When we think of tourism, we think mainly of people who are visiting a particular place for sightseeing, visiting friends and relatives, taking a vacation and having a good time. They may spend their leisure time engaging in various sports, sunbathing, talking, singing, taking rides, touring, reading, or simply enjoying the environment. Furthermore, we may include in our definition of tourism people who are participating in a convention, a business conference, or some other kind of business or professional activity, as well as those who are taking a study tour under an expert guide or doing some kind of scientific research or study. These visitors use all forms of transportation, from hiking in a wilderness park to flying in a jet, to travelling by rail or going on a cruise. Any attempt to define tourism and to describe fully its scope, we must consider the various groups that participate in and are affected by this industry. Their perspectives are vital to the development of a comprehensive definition. Four different perspectives of tourism can be identified: The tourist: The tourist seeks various psychic and physical experiences and satisfactions. The nature of these will largely determine the destinations chosen and the activities enjoyed. The business providing tourist goods and service: Business people view tourism as an opportunity to make a profit by supplying the goods and services that the tourist market demands. The government of the host community or area: Politicians view tourism as a wealth factor in the economy of their jurisdictions. Their perspective is related to the incomes their citizens can earn from this business. Politicians also consider the foreign exchange receipts from international tourism as well as the tax receipts collected from tourist expenditures, either directly or indirectly. The host community: Local people usually see tourism as a cultural and employment factor. Of importance to this group, for example, it is the effect of the interaction between large numbers of international visitors and residents. Thus tourism may be defined as the sum of the phenomena and relationships arising from the interaction of tourists, business suppliers, host governments and host communities in the process of attracting and hosting these tourists and other visitors. Tourism is a composite of a activities, services, and industries that delivers a travel experience, namely transportation, accommodations, eating and drinking establishments,
shops, entertainment, activity facilities, and other hospitality services available for individuals or groups that are travelling away from home. It encompasses all providers of visitor and visitor-related services. Tourism is the entire world industry of travel, hotels, transportation, and all other components, including promotion that serves the needs and wants of travellers. Finally tourism is the sum total of tourist expenditures within the borders of a nation or a political subdivision or a transportation-cantered economic area of contiguous states or nations.
Defence has given permission for opening of 104 additional peaks in Leh area of Jammu & Kashmir for adventure tourism, while customs duty on inflatable rafts, snow-skis, sail boards and other water sports equipment has been exempted. Heritage tourism Heritage tourism is defined as travel undertaken to explore and experience places, activities, and artifacts that authentically represent the stories and people of the past and present. It is oriented toward cultural heritage of the tourist location. It involves visiting historical or industrial sites, religious travel or pilgrimages. India is well known for its rich heritage and ancient culture. The countrys rich heritage is amply reflected in the various temples, majestic forts, pleasure gardens, religious monuments, museums, art galleries and urban and rural sites which are citadels of civilisation. All these structures form the products of heritage tourism. Ecotourism Ecotourism, also known as ecological tourism, is travel to natural areas to appreciate the cultural and natural history of the environment, while not disturbing the integrity of the ecosystem and creating economic opportunities that make conservation and protection of natural resources advantageous to local people. It involves travel to destinations where flora, fauna and cultural heritage are primary attractions. Ecotourism also minimises wastage and the environmental impact through sensitised tourists. It can be one of the medium to preserve local culture, flora and fauna and other natural resources. India, with its great geographical diversity, offers several eco-tourism destinations. It is home to a wealth of ecosystems which are well protected and preserved. These include:
Biosphere reserves Mangroves Coral reefs Deserts Mountains and forests Flora and fauna Seas, lakes and rivers Caves
Minimise the impact Build environmental and cultural awareness and respect Provide positive experiences for both visitors and hosts Provide direct financial benefits for conservation Provide financial benefits and empowerment for local people Raise sensitivity to political, environmental, and social climate of the host country Support international human rights and labour agreements.
A few places for ecotourism include the Himalayan region, Kerala, North East India, Andaman & Nicobar and Lakshadweep Islands. Thenmala in Kerala is the first planned ecotourism destination in India. Some most popular ecotourism locations in the country are Rishikesh, Kerala and Puducherry. Ecotourism consists of:
Eco parks Eco places Eco fauna Eco flora Eco destinations Eco trivia Eco treks Eco adventures
Rural tourism Rural tourism showcases rural life, art, culture and heritage of rural locations, benefitting the local community economically and socially as well as enabling interaction between the tourists and locals for a more enriching tourism experience. Rural tourism is multi-faceted and may entail farm/agricultural tourism, cultural tourism, nature tourism, adventure tourism, and ecotourism. Rural tourism has certain characteristics: it is experience oriented; locations are sparsely populated; it is predominantly in a natural environment; it meshes with seasonality and local events; and it is based on preservation of culture, heritage and traditions. Indias rural geographical and cultural diversity enables it to offer a wide range of tourism products and experiences. Increasing levels of awareness, growing interest in heritage and culture, improved accessibility to rural areas, and environmental consciousness are playing an important role in promoting rural tourism. This form holds immense potential in India, where more than 70% of the population resides in villages.
The Ministry of Tourism along with UNDP undertook the Explore Rural India Campaign, to give tourists a chance to experience life in rural India. It is one of the most successful tourism campaigns so far. During the Visit India Year 2009 campaign, 15 rural tourism sites were selected as rural eco-holiday sites. Wildlife tourism Wildlife tourism, one of the fastest segments of tourism, involves travel to different locations to experience wild life in natural settings. Due to its varied topography and distinctive climatic conditions, India is endowed with various forms of flora and fauna and it has numerous species of birds, mammals, reptiles, amphibians and plants and animals. To tap the potential of wildlife tourism, the government has launched some wildlife packages for travelers. Wildlife Tourism in India includes wildlife photography, bird watching, jungle safari, elephant safari, jeep safari, jungle camping, ecotourism etc. The country offers immense opportunities for wildlife tourism. The strong heritage of wildlife in India comprises more than 70 national parks and about 400 wildlife sanctuaries including bird sanctuaries. However, concrete steps by both the government and the private sector need to be taken to promote wildlife tourism. Taj Hotels & Resorts has a joint venture with Conservation Corporation Africa to provide wildlife enthusiasts, circuit tourists and high-end domestic travelers with fascinating wildlife experiences within India through an ecologicallysustainable model. In a bid to preserve the natural habitat, the Ministry of Tourism has launched an initiative, Tigers: Our Natural Beauties. MICE tourism MICE (Meetings, Incentives, Conferences and Exhibitions) tourism is also one of the fastest growing in the global tourism industry. It largely caters to business travelers, mostly corporates. It caters to various forms of business meetings, international conferences and conventions, events and exhibitions. Hong Kong, Malaysia and Dubai are the top destinations for MICE tourism. India is also present in this segment. This form of tourism combines annual business meetings and conferences with pleasurable events for delegates and attendants. India can be competitive with other MICE tourism destinations owing to its natural beauty, rich heritage and geographical diversity. One of the requisites for this form of tourism is world-class convention centres. The Ashok, New Delhi; Hyderabad International Convention Centre, Hyderabad; and Le Meridian, Cochin are
forerunners in the Indian MICE tourism industry, facilitating domestic and International business meetings and conferences. Some other forms of tourism include cruise tourism, beach tourism, pilgrimage tourism, monsoon magic, luxury tourism.
Up to 3 percent of the net turnover is payable as marketing fee under automatic route 10 percent of the gross operating profit is payable as management fee under
automatic route
coming into the country. Over the last few years the country has witnessed a large influx of business travellers in the country owing to relaxation of the governments stand on Foreign Direct Investments (FDI) for most of the sectors in the country. Many foreign companies have already tied up with prominent Indian companies for setting up new hotels, motels and holiday resorts. The entry of McDonalds, PepsiCos Kentucky Fried Chicken, Dominos and Pizza Hut has given an international glitz to the hospitality sector. It costs an average of US$50-80 million to set up five-star hotels with 300 rentable rooms in India. The gestation period is usually between three and four years.
collection of HET by Central Govt. and Luxury Tax by State Govt.s, the net benefit to the economy is considerably smaller and is not compatible with the loss in revenue accruing due to diversion of tourists to lesser-taxed destinations. The problem has got magnified due to increase in the threshold limit, which used to be Rs.2000 per day per individual to Rs.3000 per day during Union Budget 2002-03. With the removal of the words per individual, the benefits of raising the threshold limit were nullified and therefore benefits could not be passed on to tourists. The revenue stream that the Union Government shall have to forego on abolishing Expenditure Tax would not be substantial, and would be more than matched by the benefits that could accrue from the increased flow of tourists who are currently diverted to other less taxed destinations. There is no national wide tax policy there by some international hotel chains are hesitating to establish their subsidiaries in the India. Service Tax on Tour Operators The services provided by a tour operator typically includes a wide range of services covering transportation, boarding and lodging arrangements, local sight-seeing and guide services, etc. which are procured through sub-agencies. Even though 60% abatement is provided, taxation of the gross service amount leads to double taxation and increases the burden for the tourists. Inland Air Travel Tax Air connectivity and Pricing are proven to be critical barriers in Indias ability to become competitive in the global tourism market. In the current context, domestic air travel is much more expensive than international destinations located at a similar distance. The disparity between Foreign Travel Tax (FTT) and Inland Air Travel Tax (IATT) is one of the major factors. FTT constitutes between 2%- 3% of the ticket price while IATT effectively constitutes 12%-13% of the total ticket price, except for north-eastern states where the latter has been exempted. The cost of domestic air travel is too high in India as compared to international standards. The primary reason for this is costly Aviation Turbine Fuel, which constitutes close to 40% of an airlines operating cost. This in turn is due to the structure of duties and levies prevalent in India. The basic customs duty of 20% with a CVD of 16% results in a total tax of 39.2%. The differential rates of sales tax being charged by state governments further complicate the duty structure. This has led to increased costs to the airlines, which in turn gets passed on to the consumer.