What is Tourism?

WTO: The activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes. In other words: A tourist is a person who goes to another place for private interest or who is sent there (for example by a company), but is not employed at this place. Business tourists may go to this place for a conference, a workshop or further education. Private tourists may go there for adventure, recreation, education, pilgrimage or other purposes. Importance of tourism in the economy We can define tourism industry in a narrow sense, e.g. accommodation establishments, restaurants, cafes, bars and canteens as well as travel agencies and tour operators. We can also define tourism economy in a broader sense and include related sectors such as transport and branches that are dependent on the tourism industry. Depending on the narrower or wider definition, tourism contributes 4-11% to the gross domestic product (GDP) of the European Union and 4-12% to European employment. Therefore it is an important economic sector. Growth of tourism Europe is the worlds most important tourist destination and the most important tourist generating region. The number of international arrivals in Europe rose from 25.3 million in 1950 to 414 million in 2003 and may rise beyond 700 million in 2020. It is estimated that about 20% of tourism comes under the category of business travels. Although tourism always experiences temporary drawbacks for example because of wars (2001 terrorist attack in New York, Iraq war), diseases (SARS in Asia) or crisis in the energy supply (oil crisis in the 1970s), an exponential growth worldwide is again expected for the period 2010 2020. In Summary Tourism is one of the worlds largest industries and is of particular importance to the economies of many developing countries and emerging markets. As a significant source of foreign exchange and employment the sector can have a great potential for development. Nevertheless, there are great concerns about the social and environmental problems that uncontrolled tourism can cause.

 Tourism can lead to environmental degradation and the destruction of fragile ecosystems. It can also cause and exacerbate social and cultural conflict. In addition as tourism-generated foreign exchange often ends up benefiting foreign-owned tour operators, hotels and airlines rather than local communities, it can also a have a negative effect on poverty. Indian tourism sector is one of the most crucial sectors of the economy in the country. It is not only a significant contributor to GDP and foreign exchange reserve of the country, but also it provides widespread employment. Tourism sector can also be considered the backbone for allied sectors, like hospitality, civil aviation, and transport. Sensing the importance of the sector, Indian Government has invested abundantly in the past for infrastructure development. It has been partially successful with increase in foreign tourist arrivals over the last decade, courtesy Incredible India Campaign. Infrastructure in the hospitality sector is still a matter of concern amongst other factors like season-based tourism in some states. Domestic tourism is very huge in the country, promoted by various intents. Pilgrim and leisure tourism are two very important sectors. A lot of scope is available for new businesses to enter and tap the segment. With the rising economic status of the middle class and affluent population, outbound travel is on the rise. Though Thailand, Malaysia, and Singapore circuit the most favored destinations among the tourists, interest for off-track destinations are also increasing. Foreign tourist arrivals in the country have increased substantially during the past decade motivated by both, business and leisure needs and are further expected to grow at a CAGR of around 8% during 2010-2014, as per our new research report Indian Tourism Industry Analysis. Our thorough analysis of the tourism sector in India has revealed that it is set for a fast growth stage marked by a huge potential in various segments in the industry. Government initiatives, both at center and state level have facilitated rapid development in the sector and are expected to continue in future as well. The market is fragmented and unorganized but is highly competitive. Also, various trends have emerged during the last few years, which are discussed in details in the report. Our report, Indian Tourism Industry Analysis provides detailed analysis of the tourism sector in India. The report facilitates current industry trends and forecast for foreign tourist arrivals, outbound tourists, domestic tourist visits, and several other factors crucial to future developments at regional level. In addition, a detailed analysis of hotel industry has also been provided. Description of key players is also included to efficiently gauge the competition in the market and to provide a balanced research outlook of the tourism industry. RNCOS "Indian Tourism Industry Forecast (2007-2011) report provides an objective analysis of the present scenario and future prospects of the Indian tourism industry. This report focuses on different parameters of tourism industry including: inbound tourism, outbound tourism,

expenditure by inbound tourists, and medical tourism in India. It also helps clients to analyze the opportunities and factors critical to the success of tourism industry in India.

Key Findings
- In India, inbound tourist expenditure per head is third highest in the world and even more than global average tourist spending. - India has been promoting its healthcare tourism by providing the visitors with private healthcare facilities. It is expected that the number of tourists visiting India for the purpose of medical treatment will reach one Million by 2012, representing a CAGR of 28.09% from 2007. - Disposable income in past (during 2001-2006) grew at a CAGR of 10.11%, thereby driving domestic as well as outbound tourism. - Room rent accounts for more than 50% of revenue earned by Indian hotel industry. - Indian outbound tourist flow is expected to increase at a CAGR of 12.79% over the five-year period spanning 2007-2011. - Tourist influx to India is expected to increase at a CAGR of 22.65% between 2007 and 2011. - Indias share in global tourism is expected to reach 1.5% by 2010.

Foreign Tourist Arrivals (FTAs) in India between January and June, 2000 2011

Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

FTAs (in millions) 2.65 2.54 2.38 2.73 3.46 3.92 4.45 5.08 5.28 5.17 5.58 2.92

% change over the previous year 6.7 -4.2 -6.0 14.3 26.8 13.3 13.5 14.3 4.0 -2.2 8.1 10.9

Foreign Exchange Earnings (FEE) (in Rs. crores) from Tourism in India between January and

June, 2000 2011 Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 FEE from Tourism in India (in INR Crores) 15626 15083 15064 20729 27944 33123 39025 44360 51294 54960 64889 35163 % change over the previous year 20.7 -3.5 -0.1 37.6 34.8 18.5 17.8 13.7 15.6 7.1 18.1 12.1

Number of domestic tourist visits, for all states / UTs in India, between January and June,

2000 2010 Year No. of Domestic Tourist Visits (in million) to States / UTs 220.11 236.47 269.60 309.04 366.27 391.95 462.31 526.43 563.03 668.80 740.21 % change over the previous year 15.4 7.4 14.0 14.6 18.5 7.0 18.0 13.9 7.0 18.8 10.7

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010(p)

About 5.92% of the countrys GDP comes from tourism and it provides employment to over 9.24% of the countrys workforce. For every INR 1 million of investment, the number of jobs created is as follows: Industry 18 Agriculture 45 Travel & Tourism 78

The Government of India has from time to time introduced tax deductions and incentives for investments in this sector. In its Union Budget 201011, it introduced an investment-linked deduction benefit, for new hotels, in the 2-star category and above, anywhere in India, was

introduced. It is to figure under Section 30/35 of the IT Act, 1961. Tax deductions would be on the Profits linked to investments. This would induce investment in new projects in the hospitality segment, create more hotel rooms, and boost employment rates; a positive development indeed. In the Union Budget 201112, Service tax on air travel was hiked - by INR 50 for domestic travel and INR 250 for international travel, in the economy class. For higher classes, it would be a flat 10%. The Service tax net was widened to include in its purview hotel accommodation above INR 1,000 per day; air-conditioned restaurants serving liquor and some categories of hospitals and diagnostic tests.R&D breakthroughs have been evident in terms better infrastructure being made available to the discerning traveller. World class airports, passenger handling systems, better air, road, and rail connectivity, more user-friendly hotel rooms and convention facilities (aiding development of potential MICE venues), well-appointed knowledge papers and articles in niche areas of tourism in India and online portals boosting travellers interests in diverse spheres, have enthused tourists. There is also scope for further action in terms of policy changes.

Tourism in India
The Indian Tourism sector is one of the largest service industries in the country in terms of its contribution to the Gross Domestic Product (GDP) and Foreign Exchange Earnings (FEE), as well as for providing employment to millions. The sector in fact is expected to generate around US$ 42.8 billion (INR 1,897.7 billion) by 2017, according to an industry research note by auditing and consulting firm Deloitte Touche. Significantly, the Tourism and the Hospitality sector generated a total of US$ 2,468.39 billion (INR 1,094, 48.4 billion) in Foreign Direct Investment (FDI) during April 2000-April 2011, according to the Department of Industrial Policy and Promotion (DIPP). Further, Foreign Tourist Arrivals (FTAs) are expected to grow to 10 million by 2010-12 and the domestic tourism is expected to increase by 15 per cent to 20 per cent over the next five years as per the Ministry of Tourism. Tourism in India is witnessing widespread growth on the back of increasing inbound tourism by the burgeoning Indian middle class, rising inflow of foreign tourists and successful government campaigns for promoting Incredible India. Infrastructure development holds the key to Indias sustained growth in the Tourism sector. Therefore, Ministry of Tourism has made consistent efforts to develop quality tourism infrastructure at tourist destinations and circuits. Further the government has also allowed 100 per cent foreign investment under the automatic route in the Hotel and Tourism related industry. Also, according to Mr Subodh Kant Sahay, Minister of Tourism, "Government is embarking upon the policy of developing integrated perspective investment plans for key circuits and destinations in each state and Union Territory." He said these investment plans would identify components requiring investments through the Centre, the state governments, public private partnership and private sector.

Significantly, the country has the potential to become a major global tourist destination, with the Tourism sector expected to contribute around INR 3,414.8 billion (US$ 77.0 billion*) by 2021, according to a report by the World Travel and Tourism Council (WTTC). India is currently ranked 12th in the Asia Pacific region and 68th overall in the list of the world's attractive destinations, according to the Travel and Tourism Competitiveness Report 2011 by the World Economic Forum (WEF). According to the Tourism Satellite Accounting (TSA) research, released by World Travel and Tourism Council (WTTC) and its strategic partner Oxford Economics in 2011: The direct contribution of Travel &Tourism to GDP is expected to be INR 1,570.5 billion (US$ 35.4 billion) (1.9 per cent of total GDP) in 2011, rising by 8.1 per cent per annum (pa) to INR 3,414.8 billion (US$ 77.0 billion*) (2.0 per cent) in 2021 The total contribution of Travel &Tourism to GDP, including its wider economic impacts, is forecast to rise by 8.8 per cent pa from INR 3,680.4 billion (US$ 83.0 billion) (4.5 per cent of GDP) in 2011 to INR 8,523.1 billion (US$ 191.2 billion*) (4.9 per cent) by 2021.

Source: World Travel & Tourism Council The TSA research also states that the sector is expected to support directly 24,931,000 jobs (5.0 per cent of total employment) in 2011, rising by 2.0 per cent pa to 30,439,000 jobs (5.2 per cent) by 2021.

Investment Opportunities

The Tourism sector is expected to perform very well in future and the industry offers an interesting investment opportunity for long-term investors. According to the TSA research, the sector is expected to attract capital investment of INR 1,233.0 billion (US$ 27.8 billion), rising by 8.7 per cent pa to INR 2,827.5 billion (US$ 63.7 billion). This means that the sectors share of total national investment will increase from 4.7 per cent in 2011 to 4.8 per cent in 2021.

Source: World Travel & Tourism Council The Tourism industry in India provides opportunities in diverse fields such as tours and travel circuit, hospitality and hotel sector and development of specialised tourisms such as medical tourism, rural tourism, golf tourism, cruise tourism, adventure tourism, eco tourism and wellness tourism. The Tourism sector is witnessing fast growth due to the ever-growing number of participants in allied businesses such as hotels, tour operators, airlines, shipping lines, among others. Therefore, the sector is expected to witness high growth in the near future and offer varied opportunities to the investors in all these areas of businesses. In fact, the hotel industry is one of the major areas wherein investors can look for long-term opportunities. Visitor exports are a key component of the direct contribution of the sector. According to the TSA research, India is expected to attract 6,179,000 international tourist (overnight visitor) arrivals in 2011, generating INR 678.6 billion (US$ 15.3 billion) in visitor exports (foreign visitor spending, including spending on transportation). By 2021, international tourist arrivals are forecast to total 11,149,000, an increase of 6.1 per cent pa generating expenditure of INR 1,344.7 billion (US$ 30.3 billion*).

Drivers behind increase in Tourist Traffic The main reason for increase in tourist traffic to India has been the following factors: Domestic Tourist Traffic Rapidly increasing purchasing power of the middle class Better road connectivity Evolving lifestyle

International Tourist Traffic Value for money/Economical destination Business cum pleasure destination Development of Kerala and Rajasthan as the most acclaimed tourist destinations in India with their distinctive brand image Opening of the sectors of the economy to private sector/foreign investment Reform in the aviation sector such as Open Skies Policy has led to better connectivity with many countries with India

Success of Incredible India campaign and other tourism promotion measures

Government Initiatives
According to the Consolidated FDI Policy, released by DIPP, Ministry of Commerce and Industry, Government of India, the government has allowed 100 per cent foreign investment under the automatic route in the Hotel and Tourism related industry. The terms hotel includes restaurants, beach resorts and other tourism complexes providing accommodation and /or catering and food facilities to tourists. The term tourism related industry includes: Travel agencies, tour operating agencies and tourist transport operating agencies Units providing facilities for cultural, adventure and wildlife experience to tourists Surface, air and water transport facilities for tourists Convention/seminar units and organisations

As a facilitative measure to make Tourism sector in India more attractive the following initiatives are taken by Government: The Government has launched a Scheme of Visa on Arrival (VoA) from January 2010 for citizens of five countries, viz. Finland, Japan, Luxembourg, New Zealand and Singapore, visiting India for tourism purposes. The Government has now extended this Scheme for the citizens of six more countries, namely Cambodia, Indonesia, Vietnam, Philippines, Laos and Myanmar from January 2011. During the period January-June 2011, a cumulative figure of 5774 VoAs were issued, with a total of 865 & 770 VoAs issued in the months of May & June respectively. The Ministry of Tourism has launched a scheme for development of nationally and internationally important destinations and circuits through Mega Projects. As on 4.2.2011, 38 mega projects have been identified, out of which 26 projects have already been sanctioned. To overcome the bottlenecks of multiple inter state road transport barriers, Ministry of Tourism has been advocating implementation of seamless travel for commercial tourist vehicles. This would facilitate smooth movement of tourist traffic and avoid delays and inconvenience to tourists.

Key Players Analyzed

This section covers the key facts about the major players (tour operator & hotels) currently operating in the Indian tourism industry. The key players analyzed in this section include: Thomas Cook India Pvt. Ltd., Kuoni India Ltd., Cox & Kings India Ltd., Raj Travels & Tours Ltd., prominent Hotels & Resorts such as Taj Hotels, the Oberoi Group, Hyatt Corporation and ITC Welcomgroup.

Research Methodology Used Information Sources

Information has been sourced from books, newspapers, trade journals, white papers, industry portals, government agencies, trade associations, by monitoring industry news and developments, and through access to access to more than 3000 paid databases.

Analysis Methods
The analysis methods include the following: Ratio Analysis, Historical Trend Analysis, and Linear Regression Analysis using software tools, Judgmental Forecasting and Cause and Effect Analysis. This research report gives an in-depth analysis of the present and future prospects of the Indian tourism industry. It looks into the Indian tourism industry in detail with the focus on different tourism markets within India and upcoming market segments. Commencing with a slow growth at the start of the millennium, the Indian tourism industry has performed quite well in the last couple of years. The Indian tourism industry has outperformed the global tourism industry in terms of growth in the volume of international tourists as well as in terms of revenue. The World Travel and Tourism Council (WTTC) have named India along with China as one of the fastest growing tourism industries for the next 10 to 15 years. The key driver for this growth in the Indian tourism industry has been a fast growing economy for the last 3-4 years. Despite lagging in the basic infrastructure that supports the tourism industry. Indian tourism industry has been showing an impressive double-digit growth. In order to sustain this growth and meet the expectations, it is essential for the Government of India to invest in infrastructure such as transport and accommodations. The expected growth of the industry in future has provided its players with an opportunity to invest in new technologies such as CRM tools and latest security systems, and to venture into new market segments such as Cruise tourism where India has negligible share in comparison to world cruise tourism market. On the flip side, the growth in the Indian tourism sector is accompanied by the imminent destruction of local ecology and an increase in pollution, which, in the long run, is going to negatively impact the tourism industry of India.

REPORT HIGHLIGHTS

- Global tourism industry scenario with regional performances - Asia-Pacific tourism Industry - Position of Indian tourism industry with respect to the world - Analysis of different market segments and their performance with charts and graphs, forecast and opportunity and challenges faced by the Indian tourism industry - Recent trends and developments in tourism industry in India. - Key driving forces in the Indian tourism industry - Company analysis of the major players in the Indian tourism industry.

Medical Tourism in India Key Findings

- With global revenues of approximately US$ 20 Billion (2005), the medical tourism industry is one of the world's largest industries. India's cost effective treatment makes it an important player in this industry. - Growing Medical tourism in India will be one of the major sources for foreign exchange. - With increasing number of non-insured population in western countries and increasing healthcare expenditure to GDP resulting in people opting for treatment choices outside their country.

Key Players Analyzed

This section provides the overview, key facts, financial information, future plans, and business strategies of prominent players in the Indian Healthcare market like Wockhardt Hospitals Ltd, Apollo Hospitals Enterprise Ltd, Fortis Healthcare Ltd, Max India Ltd, and SRL Ranbaxy. 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 countrys 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. Besides giving statistical details the report, Indian Tourism Industry Outlook (2006) discusses about the significant role that the government has for the growth of the Indian Tourism industry. It also tells what key factors play in pushing this industry. The market research report has a separate section on opportunities, major challenges and emerging trends and changes that face the tourism industry. The report also gives an in-depth analysis of the present situation and future prospects of the Indian tourism industry.

World Inbound Tourism

International tourist arrivals were 880 million in 2009. The European region continues to attract the largest number of tourists, accounting for around 52% of total traffic in 2009. The Asia Pacific and Americas follow with shares of 21% and 16% respectively. France, USA and Spain were the top three tourist destinations in 2009; China and Italy rank fourth and fifth respectively in terms of tourist arrivals.

International tourist receipts were down 5.7% in 2009. Europe continues to draw the highest amount of total receipts, accounting for 49%; the Asia Pacific and Americas formed around 24%

and 19% respectively. USA, Spain and France were the top three earners during 2009 in that order; Italy and China ranked fourth and fifth respectively.

Indian travel and tourism industry

Indian tourism offers most diverse products globally. The countrys rich history, cultural heritage, beauty, diversity of religion and medicine fascinate budget and luxury travelers. Tourism in India has registered significant growth over the years. This has been led by growth in both leisure and business tourism. Rising incomes, increasing affordability, growing aspirations, increasing globalization, and a growing airline industry along with improvement in travel-related infrastructure have supported industry growth. Tourism holds immense potential for the Indian economy. It can provide impetus to other industries through backward and forward linkages and can contribute significantly to GDP.

Indias travel and tourism industry is expected to generate revenue of Rs. 1,970 bn (US$ 42 bn) in 2010, according to the World Travel & Tourism Council (WTTC). This would be around 3.1% of total GDP. However, since travel and tourism touches all sectors of the economy, its real impact is greater and the travel and tourism economy directly and indirectly accounts for ` 5,533 bn (US$ 118 bn), equivalent to 8.6% of total GDP.

Personal travel and tourism is the most significant contributor, accounting for 55% of the total market, while business travel forms only 9%. Capital investment is also significant with a share of 24%. Hotels, air transport, surface transport, basic infrastructure, and facilitation systems environment are some of the related sectors. The share of the Indian travel and tourism industry globally is very less. However the industry holds immense potential. In fact, India has been ranked among the leaders by the WTTC for long-

term (10-year) growth prospects. Further, a globally renowned travel magazine, Conde Nast Traveler, ranked India among the top 10 tourist destinations of the world. JBIC has also ranked India as the fifth most attractive investment destination. India is probably the only country that offers various categories of tourism with its geographical diversity and rich cultural heritage.

Structure of the tourism industry

Tourism comprises activities of people travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and social, recreational, and knowledge seeking purposes. The tourism industry is primarily service and people oriented; it is made up of businesses and organizations belonging to various other industries and sectors. It is interplay among these businesses and organizations/persons which offer travel experience to tourists. The tourism industry comprises hospitality (related to accommodation and dining), travel (transportation services through different modes), and various other businesses which offer services and products to tourists. The components of the tourism industry are shown in Exhibit 1.1. Most of the players in the tourism industry are SMEs. The unorganized sector dominates the industry in India. Hotels, airline companies, and tour operators form the organized sector. Specialist travel service providers assist tourists with travel arrangements. These providers include travel agencies who are involved in retailing of travel products directly to the tourists (individuals or groups). They provide information on different travel destinations and advise customers on travel plans. They also sell associated products such as insurance, car hire, and currency exchange. Business travel agencies specialize in making travel and accommodation arrangements for business travelers and promoting conference trades. The tour operators provide packages for individuals while the principals provide basic travel and tourism related services.

Tour operators offer holiday packages which comprise travel (road, rail, sea, air as well as to and from the destination airport, car hire, excursions, etc) and accommodation (hotels, guesthouses, apartments, etc) services. Transport service providers could be airlines, cruise lines, car rentals, and rail companies. A tourists choice of transport would depend on the travel budget, destination, time, purpose of the tour, and convenience to the point of destination. Accommodation could be hotels and motels, apartments, camps, guest houses, lodge, bed and breakfast establishments, house boats, resorts, cabins, and hostels. In addition, tourists also require catering facilities, which a variety of outlets for food and refreshments offer. These include hotels, local restaurants, roadside joints, cafeterias, and retail outlets serving food and beverages. Another major component of the travel and tourism industry is attractions such as theme parks and natural attractions including scenic locations, cultural and educational attractions, monuments, events, and medical, social or professional causes. The tourist information and guidance providers include a number of service providers such as those offering insurance, recreational, communication, and banking services; government agencies; tour guides; industry associations; packaging agents; ticketing agents; and holiday sellers.

Types of tourists
Tourists can also be classified based on their purpose of visit:

Business tourists
This segment typically comprises those travelling for meetings, incentives, conventions and exhibitions (MICE); however, this definition is not conclusive and includes any tourist on a visit to India for business purposes. Business tourism is viewed as an important market in the country and one of the high-yielding sectors of the tourism industry.

Leisure tourists
Leisure tourism comprises trips for pleasure. It includes holidays within the country or abroad. Visiting friends and relatives and travel for a variety of reasons such as health and fitness, sports, education, and culture also come under the purview of leisure trips. In the past few years, opportunities in India for leisure tourism have emerged strongly owing to the following factors: changing consumption pattern of Indian customers, burgeoning Indian middle class population, and geographical diversity.

Tourists can also be classified into domestic and foreign tourists based on their nationality. Furthermore, depending on the duration, tourism can be classified into picnic, excursion, holidays, weekend getaways, etc.

Different forms of tourism

There are different types of tourism. The recent trend is moving toward niche segments of tourism: Medical/healthcare tourism Adventure tourism Heritage tourism Ecotourism Rural tourism Pilgrimage tourism

Medical tourism
Medical tourism also known as health tourism has emerged as one of the important segments of the tourism industry. The term has been coined by travel agencies and the mass media to describe the rapidly-growing practice of travelling across international borders to for healthcare. Travelers typically seek services such as elective procedures as well as complex specialised surgeries such as joint replacement (knee/hip), cardiac, dental, and cosmetic surgeries. Psychiatry, alternative treatments, and convalescent care are also available. Several factors have contributed to growth in medical tourism worldwide. These include:

Low travel costs

Significant reduction in travel costs worldwide has made travel to other countries for medical treatments more affordable. This has also boosted industry growth. High growth of world-class medical treatments in developing countries Healthcare facilities in many developing countries have improved significantly in recent years and their standards of healthcare are now on par with that in the US or Western Europe. Medical tourism has done exceptionally well in India and the number of medical tourists coming into the country is increasing. Rising healthcare costs in the developed economies, especially the US and the UK, is forcing patients from the region to look for cost-effective and alternative forms of treatment. India, with its pool of highly trained and specialised doctors, good healthcare infrastructure facilities, relatively lower cost of treatment and availability of alternative forms of

treatment such as Ayurveda, Yoga, Siddha, and Naturopathy is seeing strong growth in medical tourism. Medical tourism is promoted through suitable packaging of identified best hospitals and price banding as per treatment requirements. The medical costs in India are much lower at around 25% of the costs in the European and US markets. Medical tourism has grown swiftly despite the economic slowdown. The industry is still at a nascent stage and holds immense potential. The key benefits of medical treatment and medical tourism in India are: World-class treatment at fraction of the cost in western countries Patients from more than 55 countries availing treatment in India Medical technology, equipment, facilities and healthcare infrastructure in India at par with international standards The Indian doctors recognized among the best globally. Various medical treatments that can be availed in India include knee replacement, hip replacement, cosmetic surgery, dental treatment, and cardiac care. The government is also taking several measures to promote medical tourism in the country. This includes issuance of Medical Visa for patients and their attendants coming to India for treatment. It has also requested the state governments to promote healthcare packages. Under the Market Development Assistance Scheme, financial assistance would be provided to medical tourism service providers (MTSP), i.e. accredited hospitals and medical tourism facilitators (travel agents and tour operators approved by the Ministry of Tourism and engaged in medical tourism).

Wellness tourism
Wellness tourism is regarded as a sub-segment of medical tourism. Here, the primary purpose is achieving, promoting or maintaining good health and a sense of well-being. India with widespread presence of Ayurveda, Yoga, Siddha, and Naturopathy, complemented by its spiritual philosophy, is a well-known wellness destination. Wellness tourism includes ayurvedic therapies, spa visits, and yoga meditation. The government is promoting this form of tourism with publicity and promotional activities.

Adventure tourism
Travel for the aim of exploration or travel to remote, exotic and possibly hostile areas is known as adventure tourism. With tourists looking for different options, adventure tourism is recording healthy growth. Adventure tourism refers to performance of acts, which require significant efforts and some degree of risk or physical danger. The activities include mountaineering, trekking, bungee jumping, mountain biking, river rafting, and rock climbing.

India with its diverse topography and climate offers tremendous scope for adventure tourism. The mountain regions offer lot of scope for mountaineering, rock climbing, trekking, skiing, skating, mount biking and safaris; rushing rivers provide opportunities for river rafting, canoeing and kayaking; and oceans provide tremendous opportunity for diving and snorkeling. The government is undertaking measures such as financial assistance to governments of states and union territory for development of adventure tourism destinations. It has also provided financial assistance for organizing mountain biking expedition. The Ministry of Defense 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 civilization. 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 minimizes wastage and the environmental impact through sensitized 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 The basic principles to be followed in ecotourism are: Minimize 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 labor 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 ecologically-sustainable 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.

Major tourist circuits of India

India has several tourist destinations spread across the length and breadth of the country. However, given the distance between various destinations, tourist circuits have been created considering the needs, choices of tourists as well as convenience. Some major tourist circuits are shown in the table 1.6:

Performance of the Indian travel and tourism industry

The tourism business in India can be broadly classified into: inbound tourism, domestic tourism, and outbound tourism. Inbound tourism Foreign tourist arrivals in the country increased steadily from 2.4 million in 2002 to 5.3 million in 2008. It, however, fell to 5.1 million in 2009, recording a decline of 3.3%. The slowdown in Indias core markets, the US, Europe and UK, travel advisories issued by countries against travel to India following the terror attacks in Mumbai, and postponement of holidays by travelers affected tourist inflow into the country in 2009; nevertheless, the impact on the Indian industry was much lesser compared with other countries.

Foreign tourist arrivals are expected to increase in 2010. International events to be held in India and the governments sincere efforts to promote the country as a tourist destination are likely to drive foreign tourist arrivals. International events to be held during the year Commonwealth Games, ICC World Cup Cricket and Formula 1 are expected to attract a number of sports fans across the world to India. Improving infrastructure, low-cost airlines, and improved road connectivity are expected to aid the increase in tourist inflow.

The top 10 countries accounted for around 64% of total tourist arrivals in the country during 2009. The US and the UK together accounted for around 30% of tourist arrivals. Around 14% of the total tourist arrivals in 2009 were from Indias neighboring countries, Bangladesh and Sri Lanka.

Foreign exchange earnings from tourism

The travel and tourism industry contributes significantly to the countrys foreign exchange earnings. Foreign exchange earnings (FEE) from tourism increased steadily from US$ 3.1 bn in 2002 to US$ 11.7 bn in 2008. In line with lower tourist arrivals, FEE fell 3.0% to US$ 11.39 bn in 2009. In rupee terms, earnings rose 8.3% to 549.6 bn. FEE in rupee terms had recorded double-digit
growth in each of the years during 2003-08.

Domestic tourism
Domestic travelers recorded an all-time high of 650 million during 2009, 15.5% higher than the previous year. After rising 18% and 14% respectively in 2006 and 2007, rise in domestic travel slowed down to 6.9% during 2008. The increase in 2009 reflects recovery in sentiment in the later part of the year and preference for domestic visits over international visits. Although the Indian economy was not as severely affected by the economic slowdown as other economies, Indian consumers are cautious and are either postponing their travel plans or opting for shorter duration holidays and travelling within the country. Indians travel within India mainly for pilgrimage/religious reasons, leisure, visiting families/friends and business.

Three states, Andhra Pradesh, Uttar Pradesh and Tamil Nadu, accounted for almost 63% of domestic tourist visits during 2009.

The domestic tourism is set to boom in the coming years along with emerging trends that will allow travelers to indulge more in exploring India and the varied experiences it offers.

Outbound tourism
The trend observed in outbound tourism during 2009 was no different from that seen in inbound and domestic tourism. Number of outbound visits grew a marginal 1.8% to 11.1 million during 2009. After growing 15-17% during 2004-2007, outbound visits slowed down to 11.1% in 2008. A booming economy, higher disposable incomes, higher aspirations, cheaper international travel, and better tourism products boosted outbound tourist flow.

Emerging trends
With changing times and global business conditions, significant changes have been observed in the Indian travel and tourism industry. Demand for niche and customized tourism products Lifestyle changes and higher disposable incomes have resulted in shifting travel preferences and travelers are looking for out-of-the-box experiences. Consequently, travel service providers are offering niche, customized tourism products. This has led to emergence of niche segments such as wine tourism, pop-culture tourism, cruise tourism, wellness tourism, monsoon tourism etc. Tour companies are also willing to customize products as per travelers choices/preferences. Rising online sales Online travel sales have increased drastically in recent years. Greater proliferation of the Internet, growth in low-cost air carriers, secure payment mechanisms, and coming-up of the Indian railways portal have led to rise in online sales in the travel industry. A number of low-cost carriers operate on certain routes, and hence online booking offers choice of air carriers to customers. Airline ticket booking constitutes more than 70% of online travel sales. However, a shift is being seen from air to non-air segments in the online travel market. This shift is due to the non-air ticket booking segment growing swiftly with launch of the Indian Railways online portal (www.irctc.co.in) and many online travel agencies providing bus tickets. Indian Railway Catering and Tourism Corporation is the largest travel website in the APAC in terms of transaction volumes. A number of hotels also use the Internet for booking of rooms.

Travel portals and hotel chains used to provide 360 degree virtual tours, audio tours and photographs, and text reviews to the travelers. They are now marketing through video reviews and video blogs, either put up by themselves or travelers on the travel agency portal or a social media video platform. Online travel market sales are expected to grow in the coming years. Spontaneous travel Online travel booking has become simpler and easier. High pressure lifestyle coupled with simpler online travel booking has led to travelers taking short, random trips during the year. This has given rise to the concept of spontaneous travel. Realizing the potential in this segment, travel companies also offer services for last-minute bookings. Finite travel Another emerging concept in the travel industry is finite travel. A number of people see places and/or species that are endangered or entail some form of time-related environmental risk or natural phenomenon. Need to diversify business model Service providers are now offering attractive price ranges for services on their websites; this has led to increase in online transactions. Consequently, the market size for travel agents has been narrowing. Given this change, travel agents and tour operators now need to diversify their business models and adopt the role of a travel advisor. Travel companies should also start offering valuable services to end-customers for hassle-free travel.

EMERGING DIMENSIONS
Tourism will expand greatly in future mainly due to the revolution that is taking place on both the demand and supply side. The changing population structure, improvement in living standard, more disposable income, fewer working hours and long leisure time, better educated people, ageing population and more curious youth in developing the countries, all will fuel the tourism industry growth. The arrival of a large number of customers, better educated and more sophisticated, will compel the tourist industry to launch new products and brands and re-invents traditional markets. The established traditional destinations founded on sun-sea-sand products will have to re-engineer their products. They must diversify and improve the criteria for destinations and qualities of their traditional offers. Alongside beach tourism, the tourism sector will register a steady development of new products based on natural rural business, leisure and art and culture. Thus the study of new markets and emerging markets and necessity of diversified products are the basis of our strategy,

which can enhance and sustain, existing and capture new markets. Let us discuss some of the new tourism products.

HEALTH TOURISM
India is promoting the high-tech healing provided by its private health care sector as a tourist attraction. This budding trade in medical tourism, selling foreigners the idea of travelling to India for world-class medical treatment at lowest cost, has really got attention in the overseas market. The Indian system of medicine, which incorporates ayurveda, yoga, sidha, unani, naturopathy and other traditional healing treatments, is very unique and exotic. This medical expertise coupled with allopathic and other modern methods become our new focus segment to project India as a Global Healing Destination. If we believe the report published by McKenzie Consultants and Confederation of Indian Industries (CII), the response is quite positive and it could be generating revenue approximately Rs.100b by the year 2012. Our medical tourism provides low cost treatment. Perhaps you will wonder that the cost of same treatment in the US is ten times more than that in India. Many state governments like Kerala, Andhra Pradesh, Uttaranchal, and Karnataka have been showcasing their medical tourism segment in certain focused market like the Gulf and African regions. (Gaur Kanchilal) Indian private sector hospitals have undertaken massive investment in the area of health. These super-specialty hospitals employ efficient and expert doctors and other paramedical staffs with modern facilities. The experienced doctors, dedicated service minded experts have made available their services for giving alternative system of medicines and treatments. Health camps, lecture training classes are also arranged for general awareness. Yogasana has become popular and widespread and many public and private and other organizations conduct Yoga classes. Ayurveda, naturopathy and nature treatments are popular around the world.

Total Health: A New Mantra Ayurveda

India has a rich heritage in the areas of traditional and natural medicines. The earliest mention of Indian medical practices can be found in the Vedas and Samhitas of Charaka, Bhela and Shusruta. A systematic and scientific approach was adopted by the sages of the time leading to the development of a system that is relevant even today. India is the land of Ayurveda. It believes in removing the cause of illness and not just curing the disease itself. It is based on herbals and herbal components without having side effects. Ayurveda considers that the base of life lies in the five primary elements; ether (space), air, fire, water and earth. And the individual is made up of a unique proportion of the five elements in unique combinations to form three doshas (vata, pita and kapha). When any of these doshas become accute, a person falls ill. Ayurveda recommends a special life style and nutritional guidelines supplemented with herbal medicines. If toxins are abundant, then a cleaning process known as Panchkarma is recommended to eliminate those unwanted toxins and revitalize both mind and body. Ayurveda offers treatments for ailments such

as arthritis, paralysis, obesity, sinusitis, migraine, premature aging and general health care. Kerala is a world tourist destination and part of the reasons lies with the well- known stress-releasing therapies of famed Ayurvedic research centers. The climate along with the blessing of nature has turned Kerala into the ideal place for ayurvedic, curative and rejuvenating treatments. Yoga If Ayurveda is the science of body, yoga is the science of the mind. Practiced together they can go a long way in making an individual fit. The word yoga means to join together. The ultimate aim of yoga is to unite the human soul with the universal spirit. Yoga was developed 5000 years ago and the base of yoga is described in theYoga Sutra of Patanjali. This describes eight stages of yoga. These are Yam (universal moral commands), Niyam (self purification), Asana (posture), Pranayama (breathing control), Prathyahara (withdrawal of mind from external objects), Dharana (concentration), Dhyana (meditation), and Samadhi (state of super consciousness). To get the benefits of yoga, one has to practice Asana, Pranayama and Yoganidra. With the regular practice of asanas one can control cholesterol level, reduce weight, normalize blood pressure and improve cardiac performance. Pranayama helps to release tensions, develop relaxed state of mind and Yoganidra is a form of meditation that relaxes both physiological and psychological systems. Today, yoga has become popular in India and abroad and in a number of places including urban and rural areas yoga is taught and practiced. Spas Most of the other parts of the world have their own therapies and treatment that are no doubt effective in restoring wellness and beauty. New kinds of health tours that are gaining popularity in India are spa tours. Spas offer the unique advantages of taking the best from the west and the east combining them with the indigenous system and offering best of the two worlds. In hydropathy, Swedish massages work with the Javanese Mandy, lulur, aromatherapy, reflexology and traditional ayurveda procedures to help keep the tourist healthy and enhance beauty. Combining these therapies with meditation, yoga and pranayama make the spa experience in India a new destination for medical tourism. The spas are very useful for controlling blood pressure, insomnia, cure tension, depression, paralysis and number of other deadly diseases. Ananda Resort in Rishikesh, Angsana Resort, Golden Palm Spa and Ayurgram in Bangalore offer ayurveda, naturopathy, yoga and meditation packages. (Gaur Kanchilal) Allopathy India has made rapid strides in advanced health care systems, which provides world-class allopathic treatment. This has become possible because of the emergence of the private sector in a big way in this field. More and more foreign tourists are realizing that India is an ideal place for stopover treatment. Indian Multi-specialty hospitals are providing world-class treatment at an amazingly economical cost as compared to the west. Quality services and low price factor primarily go in favour of India. The cardio care, bone marrow transplantation, dialysis, kidney

transplant, neuronsurgery, joint replacement surgery, urology, osteoporosis and numerous diseases are treated at Indian hospitals with full professional expertise. Apollo hospital group, Escorts in Delhi, Jason Hospital, Global Hospital, and Max Health Care are catering to medical care for international patients in the areas of diagnostic, disease management, preventive health care and incisive surgeries. The tourism department has devised websites in order to provide information. Many Ayurveda health resorts that are owned and run by traditional Ayurveda Institutes have come up. Ayurgram is a novel concept that not only offers heritage accommodation but also offers a whole range of Ayurvedic treatments and rejuvenating packages. Similarly hotels have also included these types of packages in their holidays. Some of the tour operators have worked out all-inclusive medical treatment package that include treatment, accommodation, food, airport transfers, post operation recuperative holidays, along with a host of other facilities. This in fact shows our product offers true value for money for service. Many world-class state-of-the-art furnishing and equipment are being added to our Ayurveda Resorts to welcome international guests. Along with these hospitals there are many centers which offer not just physical but emotional and spiritual healing to patients. With all these India is going to be one of the leading medical health care destinations in the near future.

Additional Information
The year 2011 has been a year of madness around the world, in political upheavals. The Japanese earthquake, followed by a pacific-wide tsunami, and nuclear power crisis, by riots in the streets of London, by the fall of the Portuguese coalition government, by union protests throughout the world, from Madison, Wisconsin to Europe, from revolutions in much of the Arab world, to renewed bus bombing and rocket attacks against Israel, to a no-fly zone imposed over Libya. Food prices are rising at alarming rates. There is no one factor to account for the rapid increase in the rise of food prices. These price rises are the result of a number of factors: irregular rainfall in much of the world including a major Texas draught, the high cost of fuel resulting in higher transportation costs, political disturbances in the Middle East, the need to ration food in a post earthquake/tsunami Japan have all contributed to ""food sticker shock"" and political tension. It may well be hypothesized that much of the world's political upheavals have less to do with a desire for democracy and as have occurred throughout history, more to do with the cost of food. The impact of tourism caught in the crossfire is already manifesting itself. Restaurants have had to raise prices or lower their service. Transportation companies have been (and will continue to be) hard hit. The airline industry is especially vulnerable. Airlines depend on both the food industry (at least in first class or executive class) and the fuel industry. Already on the margin, airlines can do nothing more than cut services and raise prices. The result of such a policy may create an economic tsunami as the leisure traveler may well decide that travel is simply too expensive and thus the ""staycation"" (or stay-at-home-vacation) once again becomes a reality influencing hotels and attractions throughout the world.

Furthermore, from a tourism security perspective, the world's security situation has deteriorated. Few nations today are not suffering from either political or economically motivated violence. From Mexico's drug wars to most of Latin America's express kidnappings, from street violence from England to the Middle East, the tourism world must face the fact that there is an increase both in the potential for crime and for acts of terrorism. Indeed the current Libyan government, with a great deal of blood on its hands, is not above ""punishing"" the West by further acts of terrorism. The international tourism industry must also face the reality that world currencies are no longer stable. It is impossible to predict the value of the US dollar or euro over the next twelve months. This inability to know the value of a currency means that long-range tourism prices are especially hard to predict and the fallout from this monetary instability is already affecting multiple tourism support systems. For example, tourism experts are now noting that hospitals are turning people away (despite their nation's laws) who do not have local insurance or a well-backed credit card. The tourism industry must also recognize that despite what the politicians may tell us the world's economy has multiple challenges. Among these challenges is the fact that retirement accounts, throughout the Western world, are no longer sustainable. Well-healed unions may protest, but there is no way that a diminishing working population can afford to allow people to retire at full or three quarter wages for periods of 20 or thirty years or more. What this means is that the group of people who often travel the most, the young retirees, may have to make major lifestyle changes and these changes may have a great impact on the world of tourism. Despite these numerous challenges, it would be a mistake to predict the demise of the travel and tourism industry.

MICE TOURISM
The meetings, incentives, conferences and exhibitions (MICE) industry is extensively and rapidly growing and is largely associated with travel for business purpose. MICE related events include meetings, conferences, conventions, exhibitions and incentive travels. Each of these different subsections of MICE has quite different characteristics although the industry is often referred to as MICE. Increasingly convention bureaus serve the needs of meetings, incentives and exhibitions organizers and service providers supply each of the sectors.

Business with Pleasure

With the Indian economy opening up and government restrictions loosening, Mumbai, Bangalore, Hyderabad, Chennai, Delhi and Kolkata are assuming importance as major centers of business activity in the country. The days of red- tape always associated with Indian business activity is a thing of the past and corporate India has moved towards more western standards of professionalism. Since the liberalization of the Indian economy, MICE tourism is becoming a growing segment in India. More and more business people have been coming to India for business purpose and adding business with pleasure in their India tour. Most of the hotels and tour operators offer special facilities for travellers; some even specialized in this field. They offers pick-up at the

airport, corporate floor rooms which will feature phones, fax machines, computers, journals. All rooms offer elaborate conferencing facilities at hotels and special conventions centers. Hotels are adept in organizing theme banquets for a product launch, small cocktails etc. The important conference centers are New Delhi, Mumbai, Jaipur, Kovalam, Chennai, Bangalore, Agra, and Goa where popular convention tours offer exciting possibilities.

Incentive tourism
Incentive travel has emerged as a popular means of rewarding the employees achievements and contributions, by several business houses especially multinational companies, Insurance Companies, Banks, Pharmaceuticals Firms, etc. Employees are given free tickets or holidays packages to select destinations all paid by company. These are given as added perks to keep up the interest of the executives who are the high performers of the company. Incentive tours market has become fast growing sector within the tourism industry.

ADVENTURE TOURISM
Youth tourism has been identified as one of the largest segments of global and domestic tourism. The young travellers are primarily experience seekers, collecting, enquiring unique experiences. Adventure and risk have a special role to play in the behaviour and attitudes of young travellers. The growing number of young travellers is being fuelled by a number of factors such as increased participation in higher education, falling level of youth unemployment, increased travel budget through parental contribution, search for an even more exciting and unique experience and cheaper long distance travel. Youth and adventure tourism appears to have considerable growth potential. The rising income in some major potential source markets such as the Central and Eastern Europe, Asia and Latin America, combined with the lower travel cost, growing student populations around the world particularly in developing countries, has fuelled the demand. India: a heaven for adventure tourism India has been an attraction for travellers from all over the world. Though in the field of international tourism, the segment of adventure tourism in India is getting only a fraction of such traffic. The trend has been showing an increased movement year after year with the development of facilities and greater awareness about adventure tourism options. Indian tourism offers both international and domestic adventurers a wide choice of adventures. Water sports, elephant safari, skiing, yachting, hail-skiing, gliding, sailing, tribal tours, orchid tours, scaling the high peaks of Himalayas, trekking to the valley of flowers, riding the waves in rapids, and camel safari in the deserts are breath taking opportunities for nature enthusias. Ladakh, the Garwal hills, the Himachal hills, Darjeeling, Goa, Lakshadweep, Andaman and Nicobar, Jaisalmer and wildlife sanctuaries and reserves are some of the places that offer adventure tourism. Himalayas are the centre of Indias main adventure activities as well as outdoor recreational tourism. Our rivers, backwaters, Indian Ocean, Arabian Sea and deserts are unique attractions for the various branches of adventure.

Trekking holds out the greatest potential in terms of numbers. It requires little infrastructure and carries its benefits to remote hills and mountain regions. Many of them are economically poor and backward. For our own youth it also helps in inculcating a spirit of adventure, respect for nature. Indian Mountaineering Federation, Ministry of Tourism and State Governments are trying to improve trekking facilities and ensure safety and protection of travellers. The Institute of Mountaineering also organizes courses for guides to train them in basic rock climbing safety procedures, environmental knowledge, and flora and fauna conservation. The major trek heads in the Himalayan region include Kashmir valley, Kirshwasser Zanskar, Ladhak, Lahul and Spiti, Champa and Manali, etc, Trekking in the Himalayas is a quite enjoyable. Let us now discuss some important adventure activities:

1) Mountaineering Expedition
This is the first and foremost activity in the Himalayas. In India, the expeditions are controlled and regulated by Indian Mountaineering Federation, which is the nodal body. Foreign expedition groups have to request the Indian Mountaineering Foundation (IMF) to book the required peak and IMF confirms the peak, by charging the royalty depending upon the number of persons and height of peak. Ministry of Defence, Home Ministry, Ministry of External Affairs are also involved in this process. 2) River rafting The Himalayan rivers offer River rafting that run through the beautiful terrains, sandy white beaches, boulder studded rapids, river confluences, deep gorges, and some revered temples and towns. White-water sports are popular in Rishikesh, Manali, Zanskar Teesta, Beas, Central Ministry of Tourism has great extremely extended support to import inflatable rafts, canoes, kayaks, and accessories to boost water sports. Lakshadweep and Andaman have been promoted for scuba diving and windsurfing. 3) Water Sports To boost water sports, water skiing and sailing both in seas and lakes, and river facilities has been provided. Chilka Lake in Orissa, Kollam in Kerala, Bhopal Lake in Madhya Pradesh, Dal Lake in Kashmir are some of the places where facilities have been provided for water sports. In Himachal hills Heli-skiing is also being promoted in season. The Garwal Mandal Vikas Nigam provides regular skiing courses during the season. It can be said that India is a new destination for adventure tourism. The Ministry of tourism, The Himalayan Task Force and Himalayan Tourism and Adventure Tourism Board (HMTAB) meet every year to discuss conservation, promotion for Himalayan tourism, and conservation of ecology.

NATURE TOURISM

In search of new tourism products, travellers and suppliers are today seekingto reshape the meaning of nature as a tourism attraction. Modern nature based tourism focuses on experiencing flora and fauna in natural settings. The nature based tourism related to nature, its attractiveness so that the visitors experience it in its natural settings. Eco-tourism takes into account unspoiled natural and socio-cultural attraction. Today the term nature tourism is often used synonymously with eco-tourism. Today nature tourism is the fastest growing segment of the tourism sector. It comprises around 40-60% of all international tourism. Diversity of India is to be seen not only in its people, culture, religions, language and life style, the diversity starts in the land itself. The snow bourd peaks of the Himalayas, tropical rain forests, and hot deserts and breathtaking beautiful coasts. Each diverse geographical region generates a different picture and exploring them provides a unique experience. Now all these are packaged for tourists to provide eco-friendly holidays in India.

1) Wild life
The diversity of wild life in India is as rich as that of its flora and fauna. The great wealth of Indian wild-life can be imagined with the sight of majestic elephants, the dance of peacocks, the camel strides, the roar of tigers, at unparalleled acts of beauty. Watching birds and animals in their natural habitat is an experience in itself. The vastness of wild life and wilderness is India unparallel in the world. All these account for the immense opportunities for wild life tourism in India. The immense heritage of wild life in India comprises 80 national parks and another whopping 441 wild life sanctuaries including bird sanctuaries. These reserves and forest areas are spread across the breadth and length right form the foot hills of Himalayan, the Jim Corbet National park to six national parks in Andaman, from Ranthambhor national park in Rajasthan to Hazaribag wild life sanctuary in Bihar. India also boasts of the unique ecosystem at Sunderbans which is a UNESCO world heritage site and home to the largest number of tigers in the world. The Himalayan region is renowned for being the national habitat for a variety of wild life, elephants, snow leopards, deer, panther, wild buffalos, wild ass, one horned rhinoceros, porcupine, snow leopards, etc. The Kaziranga Game Sanctuary is ideal habitat for the rhino that the nature lovers and environmentalists are fascinated by. The great Indian bustard and the black buck of Kerera sanctuary attract a lot of tourists. The Madhav National Park (Shivpuri Park) is another rich habitat for the wild life. The royal animal, tiger happens to be symbol of strength and speed. Amongst the best-known tiger reserves in India is Bandhawgarh in Madhya Pradesh. It is also known as the crown in the wild life heritage of India. The variety of birds in India is enormous. Several hundred species of bird can be spotted across India. Indian wild life has its share of native birds along with migratory birds. The region of Andaman is home to rare species of birds like Narcondum hornbills, Nicobar pigeons and megaspores. The Himalayan region is well known as the natural habitat for the pheasant griffon, vulture and ravens. Dudhuwa wild life reserve, Keoladeao, Ghana national park, the Bharatpur bird sanctuary in Rajasthan is home to indigenous and migratory water birds. These bird sanctuaries are attracting tourists from far and wide.

2) Fishing and angling

Among the amazing array of nature tours offered in India are those that offer angling and fishing. The waters of Indian sub-continent are mind blowing grounds for the nature sports. The adventures settings range from the majestic Himalayan valleys, snow fed streams and high altitude lakes and wide coastal stretches of the Arabia Seas and Bay of Bengal. Amidst the beautiful hills of the Himalayas is tented accommodation along the river beds, excellent option for adventure holidays in India. The Cauvery fishing lodge near Mysore, the hill stations of Munnar, and streams and lakes of Kerala and Kashmir are a paradise for anglers.

3) Hill Stations
At heights that range from 600 m to 3500m above sea level, most of the hill resorts of India are tourist destination in India. The hill stations add to the nature tour of India with majestic mountains and ravishing rivers. Mountain ranges of Shimla, Kullu Manali, Dalhousie, Palampur in Himachal Pradesh, Nainital-Almora-Kausani in Kumaon hills of Uttar Pradesh, Pachmarhi in MadhyaPradesh, Darjeeling are important for their snow-dusted peaks, lakes, parks and hot springs. The waterfalls, sulphur bath and all provide such an experience, which will linger in ones mind. Green heavens are on not only in the forest but the Islands are also a source of the best ecotourism destinations. The tourism activities in Lakshadweep bring you close to nature. Andamans that are covered with rainforest, ringed by coral reefs, marine life, swimming and sunbathing are good experiences. We are promoting tourism but while promoting tourism in eco-sensitive areas the emphasis is to control the volume of tourists so that the fragile balance of the area is not disturbed. The whole objective of nature tourism is to have purposeful travel to natural areas. Taking special note of this very objective of the eco-tourism while utilising the economic opportunities we should ensure conservation of natural resources. People travel to those areas, which enlightens, educates and entertains them. The new changed concept of nature tourism revives the tired source of the eco-tourism. It also provides basic economic upliftment to local people and other stakeholders who are directly dependent on this natural heritage. This strong relationship is targeted throughout eco-tourism.

Government Initiatives
Ministry of Tourism formulated eco-tourism guidelines for regulated and sustainable tourism. Tour operators operating in the fragile zones have adopted the (American Society of travel Agents) ecopractices for ecotourism practices. These are: Leave only foot prints, take photographs, but do not take away from natural areas and heritage monuments. Encourage local culture Respect local traditions

 Help in the conservation efforts Do not buy products made of endangered plants and animals. Try to respect natural habitats and support those products which promote the cause of environment and protection Ecotourism Guidelines. (Gaur Kanchilal)

RURAL TOURISM
Rural tourism has been identified as one of the priority areas for development of Indian tourism. Rural tourism experience should be attractive to the tourists and sustainable for the host community. The Ninth Plan identified basic objectives of rural tourism as: Improve the quality of life of rural people Provide good experience to the tourist Maintain the quality of environment.

Indian villages have the potential for tourism development. With attractive and unique traditional way of life, rich culture, nature, crafts, folk-lore and livelihood of Indian villages are a promising destination for the tourist. It also provides tourism facilities in terms of accessibility, accommodation, sanitation and security. Rural tourism can be used as a means to: Improve the well being of the rural poor Empower the rural people Empower the women Enhance the rural infrastructure Participate in decision-making and implementing tourism policies Interaction with the outside world Improve the social condition of lower sections of the society. Protection of culture, heritage, and nature.

To tap the immense opportunities, coordinated actives of all agencies involved in the development are required. A carefully planned and properly implemented development will definitely benefit the community economically and improve the quality of life in the villages. The success of such development depends upon the peoples participation at grass root level for the development of tourist facilities and for creating a tourist friendly atmosphere. Development of rural tourism is fast and trade in hotels and restaurants is growing rapidly. Increase in the share of earnings through rural tourism will no doubt; provide an attractive means of livelihood to the poor rural community. It increases the purchasing power at all levels of community and strengthens the rural economy. Development of infrastructure facilities such as rail, electricity, water, health and sanitation will definitely improve the quality of life.

Government Initiatives

Central Government and State Governments have been encouraging rural handicrafts and fairs and festivals that have direct impact on preservation of heritage and culture of rural India. It also draws tourists from all over the world. Regional fairs, festivals help the growth of tourism, provide a ready market for the handicrafts, alternative income to the community, and facilitate regional interaction within the country. The state governments have been monitoring closely the ecological relationship, socio cultural impact and conducting feasibility studies before selecting tourist sites. The state governments also ensure that: Tourism Does not cause the tension for the host community No adverse impact on the resources Psychological satisfaction for the tourist. The large inflow of tourists would not put a stress on the local system Local community should not be deprived of basic facilities for the benefits of tourist The rural tourism does not disrupt the rhythm of community life

Thus the Central Government and State Governments have taken various steps for the promotion of tourism and attainment of the goal of sustainable tourism development.

Future Developments
Tourist destination of the future will be influenced by variety of factors, but technology and the demands of new tourist will be dominant. Technology permeates destination development in many ways such as, hotel communication system, computer reservation system which allows matching of demand with supply and computer generated imagery and use of virtual reality. Thus the stage is set for a range of new tourist destinations to be developed and for the more effective management of existing destinations. There is no doubt that these new and existing destinations need to be better planned and managed and show more concern for their environment and host community.

IMPACTS OF TOURISM
The impact of tourism on any destination will be determined by a wide variety of factors: Volume of tourism arrivals Structure of the economy Types of tourism activity Differences in socio-cultural characteristics between host and the tourists. The fragility of the local environment. As tourism development in a destination takes place, the magnitude of impacts whether positive or negative will change the nature. Every destination is subject to a carrying capacity- a level of tourism activity that can be sustained into the long term without creating serious or irreversible changes to the destination. The carrying capacity is defined as that level of tourist presence which creates impact on the host community, environment, and economy that are acceptable to both tourists and hosts and sustainable over future period of time. If the carrying capacity is exceeded,

the destination will find that the negative impacts rapidly increase while the positive impacts diminish. The tourism development process will be hindered and irreversible damage may be experienced and finally the tourist dissatisfaction results in the decline of destinations. The damage may be concerned with social, environment or economic aspects but the end result will be the same. The economic impact of tourism has been discussed in lesson 4 and now we will discuss the social and environmental impacts.

ENVIRONMENTAL IMPACT
Tourism development in many places has led to the deterioration in environmental quality since the onset of mass tourism. In many destinations, tourism development has taken place with little regard for natural environment. The effect of mass tourism and increasing awareness of human impact as environment led to a generalization that nature is not an in exhaustive resource. For some destinations the environmental effects of tourism have led to direct threat to the industry, as the success in attracting tourist lead to negative impact on the attraction of environment. This section discusses the major environmental impact of tourism. The environmental effect of tourism in developing countries is among least studied one. However they have attracted considerable attention in developed countries where high intensity usage and demand by tourism has transformed many land farms. Tourism bought economic prosperity which adversely affected environment. In search of holidays Million of tourists are crowding the popular beach resorts, mountain treks, jungles and at ancient monuments. The population of Goa is just one million but over one million visitors visit every year in Goa. Its beaches are crowded at peak season. The beautiful Dal Lake of Kashmir has been reduced to half of its size in less than 50 years by human encroachments. 30 years ago, Manali in Himachal Pradesh was a small hill resorts catering to the needs of people who loved nature. Now it is an overcrowded city with ugly multi storied buildings. Precious wild life tigers, lions and panthers have become virtually extinct in Indian jungles due to hunting and poaching. The Ladakh in Kashmir is jammed with litter left by tourists. Too many hotels on the lovely beaches of Goa have created anti-tourism feelings among the local people. Modern tourism involves thousands of visitors and demand massive infrastructure. Development takes many shapes and forms roads, hotels, restaurants and transport facilities altering ecological balances of destinations. The opening of new roads leads to the exploitation of remote forest areas, which provided green cover and timely rains for our fields. The rush to build tourist facilities at the most attractive and convenient sites changes the ecosystem and affects the natural beauty of the place. The upsurge of world tourism has changed the situation and caused alarm all over the world. The environmentalists who want to save nature from destructions and motivate people to take care the future of this earth. Hunter and Green provide an overview of the major potential impact of tourism on the natural environment. The following Table illustrates the wide range of potential consequence of tourism development in specific habitats.

SUMMARY
Tourism development like other industries brings negative impacts on economy, society and the environment. The tourism industry generates foreign exchange, employment and contributes to the balance of payment. But these positive effects are often accompanied by disastrous implication such as inflation, leakages and dependency. The social impacts of tourism are demonstration

effect, acculturation, prostitution and crime, displacement of community and commercialization of culture. Tourism development in many places has led to the deterioration of environmental quality. The loss of habitat, extinction of species, pollution, etc. will ultimately result in decline of the destination and even threatens the very existence of the community. In search for new tourism products, the suppliers are seeking to reshape the nature as a tourism attraction. Eco tourism, a broader concept, is environmental friendly concept involves protection and conservation of environment. This is based on the sustainable tourism development. The sustainable tourism development ensures the use of resources for present and future generations.

POINTS OF VIEW What some of the Tourism Industry Chiefs say and do about corporate social responsibility . Ive been in this business for a long time and know first hand that tourism is the economic cornerstone of many communities around the world. While a thriving tourism industry can provide a better livelihood for local people, it cannot be at the expense of the environment and local culture. Travel & Tourism has come a long way in the past decade in facing up to its social and environmental responsibility, and we are proud to be part of organizations such as WTTC that are raising the bar for the industry. J W Marriott Jr, Chairman & CEO, Marriott International ---------------------------------------------------------------------------------------------------We strongly believe that local people who live around our hotels, especially youth, are our future. In the hotel business we have a responsibility and an excellent opportunity to help people develop in ways that will contribute to the prosperity of the entire community and help individuals realize their dream of a better life. At the same time, this approach is good for our business when you help people, they do their best for you. Jean Gabriel Prs, President & CEO, Movenpick Hotels ---------------------------------------------------------------------------------------------------Corporate social responsibility is part of the future for all companies. With the creative use of incentives and awards, the entrepreneurial spirit and market forces can be harnessed for the good of business and society. Jean-Marc Espalioux, Chairman of the Management Board & CEO, ACCOR ----------------------------------------------------------------------------------------------------

I am convinced that the Travel & Tourism industry has a huge opportunity to contribute to building a sustainable global society. By bringing people into contact with different cultures and environments across the globe, we can increase awareness of what the issues are and of what is needed for responsible practices. Rod Eddington, Chief Executive, British Airways ---------------------------------------------------------------------------------------------------As global companies become citizens of everywhere, each must be on guard that they dont become citizens of nowhere. As a family-owned company, we have a deep sense of commitment to being good corporate citizens and promoting the sustainable development of local communities. We do this not only by creating value, but by placing the highest possible value on our employees, our communities and the environment. Marilyn Carlson Nelson, Chairman & CEO, Carlson Companies, Inc ---------------------------------------------------------------------------------------------------At Radisson SAS our commitment to sustainable development and responsible tourism has developed considerably over the past ten years, and today we have made environmental and social responsibility a cornerstone of how we conduct business around the world. I am proud to say that our Responsible Business programme has resulted in significant achievements, both to improve the quality of life in the communities where we operate and to reduce our impact on the environment. I have no doubt that these achievements will help shape the future success of our company. Kurt Ritter, President & CEO, Radisson SAS Hotels & Resorts ----------------------------------------------------------------------------------------------------

Future Outlook
The Asia Pacific region will still maintain its status as the fastest growing region in the world and most forecasts point to the region's healthy long term prospects. The WTO's (1996b) forecast reveals the region emerging as the world's number two region behind Europe in 2010 with 229 million international arrivals, growing at an annual rate of 7.6%. The rapid growth of tourism will create new marketing opportunities in the cruise line industry, timesharing, meetings and

incentives, ecotourism, and dive travel. Japan will continue to be the principal visitor generating market, while China has the potential to be the next major visitor generating market. Major events that will boost the status of the region include the Commonwealth Games in Malaysia in 1998, the 2000 Olympic Games in Sydney and soccer's World Cup in Korea and Japan in 2002. Forecasts by the World Travel and Tourism Council (1995) for the Asia Pacific region reveal that by the year 2005, travel and tourism will generate US$1.9 trillion in gross output, and account for 11.6% of GDP. Further, the industry will create an additional 105 million new and indirect jobs. To support this growth, US$553 billion in capital investments will be needed for the infrastructure and superstructure. Strong economic growth will continue to increase disposable incomes and stimulate the desire to travel. This will increase the demand for air travel which is expected to grow at an annual rate of 8.6% till 2000 and 7.1% from 2000 to 2010. By 2010, the Asia Pacific region will control half of the world's total passenger traffic. Japan will dominate the traffic with over 90 million passengers, followed by Hong Kong, China, and Singapore. The fastest growing travel markets by 2000 will be Vietnam, China, Taiwan, Indonesia, and Thailand (Air Transport Action Group 1995). To accommodate the demand for air travel, airlines in the region will take delivery of more than US$100 billion worth of aircraft. As of March 1996, Asia Pacific airlines had firm orders and options for a total of 575 aircraft (Muqbil 1996). New airports are opening in Hong Kong, Korea, and Malaysia, while expansions in Singapore and Indonesia will help to alleviate capacity and congestion problems. Billions of dollars will be spent in capital investments to meet the increasing demands of a burgeoning tourism and hotel industry. Joint promotions and alliances between NTOs and the private sector, will create a stronger collective tourism product that will increase arrivals and enhance tourism growth. Finally, the recent devaluation of the regional currencies will also have major implications for the tourism industry in the region. Inbound travel will increase as visitors will be attracted by the higher purchasing power in countries where currencies have been devalued. More specifically, visitor expenditures will increase as a result of a higher length of stay and attractive prices. In the short term, devaluation may have some negative impact on outbound travel and operating costs, but the long-term benefits will outweigh the costs.

Travel & Tourism Careers - Future Outlook

Salaries are slowly going up. People are living longer. The cost of travel (both domestic and international) is constantly going down. What this means is that the travel & tourism industry is poised for tremendous growth in the coming years. It's not uncommon for families to take trips to Europe for summer vacation. Expect this trend to spread to South America, Asia, and Africa as well.

Travel & tourism careers

This is great news for anyone with a career in recreation and tourism. Hotel staff, chefs, tour guides, travel agents, flight attendants, and even embassy personnel will have plenty of work as a result of heightened travel and leisure time. And because tourism is such a vast field, you have many different careers from which to choose. Are you a lawyer at heart? Every resort needs legal counsel. Perhaps you're a history fanatic or an outdoor adventure. Lead tour groups. Handy in the kitchen? Study to become a gourmet chef at a spa. Whatever career you desire, there are options out there.

However, schooling is necessary

Tourism is about providing quality service to deserving customers. After weeks of saving and scrimping, people want to be treated lavishly during their few precious days of free time. That's why most employers will require that you complete formal study and training in your appropriate field. Your studies will prepare you to provide the high level of service required for whatever job you choose to enter.

Constant growth. Limitless possibilities

Retiring couples now have the resources and availability to get away for a few months. College graduates often take extended summer vacations between their studies. Honeymooners can jet to the other side of the world instead of the usual Niagara Falls getaway. If you want a career that promises many rewards, daily stimulation, and personal fulfilment, why not explore tourism as a possible option. Wouldn't you rather have an office at a resort than in a downtown cubicle?

Performance of Tourism Sector During January 2011

Ministry of Tourism compiles monthly estimates of Foreign Tourist Arrivals (FTAs) and Foreign Exchange Earnings (FEE) from tourism on the basis of data received from major airports. Following are the important highlights regarding FTAs and FEE from tourism in India during the month of January 2011. Foreign Tourist Arrivals (FTAs): FTAs during the Month of January 2011 were 5.38 lakh as compared to FTAs of 4.91 lakh during the month of January 2010 and 4.22 lakh in January 2009. There has been a growth of 9.7 % in January 2011 over January 2010 as compared to a growth of 16.4 % registered in January 2010 over January 2009. The trend of significant positive growth in FTAs observed during the year 2010 continued in January, 2011 also with a growth rate of 9.7 %. Foreign Exchange Earnings (FEE) from Tourism in Indian Rupee terms and US $ terms:

FEE during the month of January 2011 were Rs.5777 crore as compared to Rs. 5593 crore in January 2010 and Rs. 4598 crore in January 2009. The growth rate in FEE in Rupee terms in January 2011 over January 2010 were 3.3 % as compared to 21.6 % in January 2010 over January 2009. FEE in US $ terms during the month of January 2011 were US $ 1273 million as compared to FEE of US $ 1215 million during the month of January 2010 and US$ 941 million in January 2009. The growth rate in FEE in US$ terms in January 2011 over January 2010 was 4.8 % as compared to the growth of 29.1 % in January 2010 over January 2009. Although a land of rich cultural heritage and breathtaking natural beauty, India ranks 41st among the top global destinations for international travel. Theres still a long way to go for India to feature among the top ten destinations. The domestic tourist volume in India is also booming, reaching 705 million in 2010. The scope is immense, and the onus is now on the countrys administration to take the correct policy measures. Bright future The future of tourism in India is certainly bright but we do have a long road ahead. Development of quality infrastructure will be the key to India's harnessing her full tourism potential. The Ministry of Tourism has been very supportive to the fraternity efforts, and now visa on arrival is slowly becoming a reality. India's tourism market is showing signs of maturity, with state tourism boards luring the consumers through their creative marketing campaigns, even the lesser marketed regions like Chhattisgarh, Orissa and West Bengal are gaining ground for their authentic local experiences. Some exciting new trends that will have a positive impact in the development of India tourism, over the next two years, are those of adventure and responsible tourism. India's pledge to sustainable tourism development has led to the industry waking up to the need for doing its bit of giving back to society through CSR and environment protection. The Internet has also added a new dimension to the business of travel with websites being used as a primary source of information and booking. The way forward for India tourism would be to have a streamlined approach so that we can widen the scope of the industry.

Trend in Domestic Tourist Arrivals in India

Years 2005 2006 Domestic Tourists (In millions) 391.95 462.31 Percentage (%) change 7.0 18.0

2007 2008 2009 2010

526.56 562.98 669.02 740.00

13.9 6.9 18.8 10.61

The domestic tourist data further reveals a pattern of a few states garnering a larger chunk of the growing traffic. For instance, top five states namely Andhra Pradesh (155.8 mil), Uttar Pradesh (144.4 mil), Tamil Nadu (111.6 mil), Maharashtra (48.5 mil) and Karnataka (38.2 mil) constitute around 67% of the total traffic in 2010. This is indicative of a trend in spatial concentration of tourist activities, which indeed has been consistently observed over many decades owing perhaps much to the religious/pilgrim tourism and location of important cultural attractions in those states. Not that Indians are touring only within its national limits. It is rather interesting to observe two main features of their overseas travel patterns. First and foremost is a consistent increase in the numbers of Indians taking international vacation travel over the years, which would suggest growing from 7.2% in 2005 to 12.3% in 2010. Even when the global 7 tourist movements fallen substantially as a result of global recession, Indian outbound traffic has been growing with consistency and stability. Second, rather more pertinent from the perspective of travel account balance, is the difference in terms of inbound and outbound tourist numbers where the later can be seen double to inbound numbers. The phenomenal growth in outbound travel could be a byproduct of many economic and social factors, most important being material prosperity and urge for travel and life styles. Other contributing factors being ease of travel documents like passport, visa, relaxation in foreign exchange regulations, better awareness of destinations and benefits of travel etc. As regards travel segments, the MICE and business travel are arguably growing faster compared to the leisure segments. The quantum of Indian nationals on overseas vacations increased from 6.2 million in 2004 to 11 million in 2009.

Indian Nationals Going Abroad

No. of Outbound visits (in millions) Year 2005 Growth (%) 15.6 Total 7.18 2006 16.1 8.34 2007 17.3 9.78 2008 11.1 10.87 2009 1.8 11.07 2010 11.4 12.28

Indian Tourism Sector and Union Budget 2011 - Presentation Transcript

International Tourism Industry International Tourist Arrivals (ITAs), 2001-10 (Figures in Millions) Source: World Tourism Organization (www.unwto.org) International Tourist Arrivals was totaled 642 million between January and August 2010, expecting to increase in the range of 5%-6% over the full year. International Tourist Arrivals by Country of Destination. 2008, 2009 and 2010 (Figures in Millions) Top 10 Destination Country wise Out of a global total of 880 million tourists in 2009, India was ranked at 41 st place, still a long way to be among top 10 destinations in the world. Source: World Tourism Organization (www.unwto.org), http:// www.statistics.gov.uk/cci/nugget.asp?id=352 Figures for Italy and Germany are not updated. 2009 2008 2010 World Travel Market In 2009, International tourism with tourist arrivals was down by 4% and world travel exports fell by 9% worldwide. However, Asia was least impacted World tourism is recovering rapidly. According to WTO, the number of international tourists increased by 3-4% in 2010. Source: World Tourism Organization (www.unwto.org) and Indian Economic Survey 201011 Decline in Number of International Tourists, 2009 (Figures in %) Tourism Market in India is a land of vast attractions, ranging from diverse natural formations to historical monuments and relics going back to more than two millennia, there is vast scope for expansion of tourism in India. In 2010 the total number of foreign tourists that arrived in India was 5.58 million and they brought in a foreign exchange earning of Rs. 648.89 billion ($14.4 billion). It should be possible for India to get many times more inbound tourists than it currently does. Tourism is the key area which can yield large benefits for society. FTA in India jumped to 5.58 million in 2010 compared to 5.11 million in 2009. Similarly, FEE increased to $14 billion compared to $11 billion in 2009. There is a need to offer unique experience to international tourists. International tourists are used to booking their stay online. In India, Tourists have to depend on local travel agents to find a place to stay. Foreign Tourist Arrivals Foreign Tourist Arrivals (FTAs), 2006-10 (Figures in Millions) Source: Indian Tour Operator Promotion Council; Ministry of Tourism and Culture Indias performance in tourism sector has been quite impressive over this decade. Foreign Exchange Earning (FEEs), 2006-10 (Figures in $ Million) The number of domestic tourist visits increased to 705 million in 2010 compared to 650 million in 2009. However, the major share of domestic tourism includes religious trips, family reunion and business travel trips from one place to another. Domestic Tourists Statics Domestic Travellers, 2006-10 (Figures in Millions) Source: Ministry of Tourism and Culture Describing domestic tourism is the backbone of India Tourism Industry. Tourism - Major Engines of Economic Growth Tourism is one of the major engines of economic growth in most parts of the world including India. Since tourism does not fall under a single heading in the National Accounts Statistics, its contribution has to be estimated. According to the UN World Tourism Organization, tourism provides 6-7% of the worlds total jobs directly and

millions more indirectly through the multiplier effect in this sector. In absolute numbers, the total number of tourism jobs in the country increased from 38.6 million in 2002-03 to 49.8 million in 2007-08. Tourisms Contribution - GDP and Total Jobs, 2007-08 (Figures in %) Exports of Travel Services World exports of Travel Services were valued at $870 billion in 2009. In 2009, all commercial services sectors were affected by the global crisis but not to the same extent. Travel was the least impacted segment with a negative growth of 9% in 2009. India is moving towards a services-dominated GDP. The share of Software and Business services are increasing. However, the cause of concern is the decline of exports of Travel Services from 21.5% in 2000-01 to 12.4% in 2009-10. India has not yet tapped the vast tourism potential. Source: Indian Economic Survey 2010-11 GNIE= Government not included elsewhere Miscellaneous includes Software Services, Business Services, Financial Services and Communication Services Miscellaneous Travel Transportation GNIE Insurance Indias Export of Services, 2000-01 and 2010-11 (Figures in %). National Tourism Policy 2002 National Tourism Policy evolves around six broad areas such as Welcome (Swagat), Information (Suchana), Facilitation (Suvidha), Safety (Suraksha), Cooperation (Sahyog) and Infrastructure Development (Samrachana). The key aim of the Safe and Honorable Tourism is to ensure that Indian tourism follows international standards of safe tourism practices, applicable to both tourists and local residents, i.e. local people and communities who may be impacted by tourism in some way. The Code has been formed to sensitize travellers and the travel industry, close all possibilities of exploitation, specifically of women and children, and make India a safe tourism destination. To strengthen the National Tourism Policy 2002s critical pillar of Suraksha (Safety), the Government has adopted the Code of Conduct for Safe and Honorable Tourism on 1 st July 2010. Mega Tourism Projects Mega Tourism Projects are a judicious mix of cultural, heritage, spiritual, and eco tourism in order to give tourists a holistic experience. MoT is coordinating with with other Central Government ministries such as Railways, Civil Aviation, Road Transport & Highways, Food Processing and Urban Development as well as the concerned State Governments to achieve convergence and synergy so that the impact of investment in these destinations is maximized. Till date, the Government has identified 38 projects out of which 23 have been sanctioned. In order to meet the huge skill gap in the hospitality industry, the Government has put in place a multipronged strategy which includes strengthening and expanding the institutional infrastructure for training and education. Besides, steps are being taken for skill training of youth in the hospitality sector and providing skill certification. Ministry of Tourism (MoT) is making concerted efforts for development of nationally and internationally important destinations and circuits through Mega Tourism Projects. Tourist Visa on Arrival (TVoA) In order to promote tourism, Government of India launched a scheme of Tourist Visa on Arrival (TVoA) in January 2010 on pilot basis. Citizens from 11 countries are cover under the TVOA scheme - Finland, Japan, Luxembourg, New Zealand, Singapore, Cambodia, Laos, Vietnam, Philippines, Myanmar and Indonesia. A total of 6,549 VoAs were issued in 2010, of which Singapore (1814), New Zealand (1944), Japan (1457) ,Finland (1263) and Luxembourg (71). In January 2011, a total of 790 VoAs were issued, of which New Zealand (242), Finland (156), Japan (155), Singapore (125), Philippines (98), Luxembourg (6),

Cambodia (4), and Vietnam (4). Persons holding Diplomatic/ Official passports are not eligible to avail this facility. It is single entry visa a short period with a validity of 30 days strictly for the purpose of tourism and a tourist can come to India only twice a year on this visa. The fee for the visa on arrival is $60 (Sixty United States Dollars) or equivalent amount in Indian Rupees per passenger (including children). Inbound Tourists Vs. Outbound Tourists India is one of the fastest-growing outbound travel markets in the world and has witnessed a growth of over 20% over the last few years. India inbound tourism market is still in nascent stage. Indias share in international tourist arrivals is a paltry 0.60% in 2010. Outbound Indians are more than double the inbound tourists, though foreign exchange outgo due to outbound Indians is much less than the foreign exchange inflow from inbound tourists. India sends out more outbound tourists than it gets inbound ones, which is fairly unusual for an emerging economy Source: Ministry of Tourism, Research and Markets Inbound Vs. Outbound Tourists, 2006 - 10 (Figures in million) Tourism - Hotels and Restaurants The hotels sector comprises various forms of accommodation, namely star category hotels, heritage category hotels, timeshare resorts, apartment hotels, guest houses, and bed and breakfast establishments. Availability of good quality and affordable hotel rooms plays an important role in boosting the growth of tourism in the country. Presently there are 1593 classified hotels with a capacity of 95,087 rooms. Several studies have identified the demandsupply gap in hotel rooms in India; some of them have estimated a gap of 150,000 hotel rooms, of which 100,000 rooms are in the budget segment. The hotels and restaurants sector is an important sub-component of the tourism sector. 2004-05 2007-08 2008-09 2009-10 Growth in Availability of Hotel Rooms (Figures in %) The CAGR in the GDP contributed by the hotels and restaurants sector was 8.5% in 200405 to 200910. Source: Economic Survey 2010-11 Commonwealth Games 2010 (CWG) India hosted the 19th Commonwealth Games in which 71 countries and territories participated, were organized successfully by India. The event has significantly contributed to employment generation, infrastructure development, tourism inflow, and growth in national income. The Sports Ministry had undertaken a massive and unprecedented training programme for the top sportspersons of India, to prepare the Indian contingent for CWG 2010. A Scheme for Preparation of Indian Athletes for CWG 2010 was put in place for providing comprehensive and intensive training and exposure to Indian sportspersons, both domestically and abroad. In this effort, 170 Indian and 30 foreign coaches and 78 supporting technical personnel were involved. This has resulted in the best-ever performance by India in any major, multidisciplinary sports event with a haul of 101 medals (38 gold, 27 silver, and 36 bronze), which is more than double the medals India won at CWG, Melbourne, 2006. This achievement placed India second in medals tally after Australia and ahead of major sporting countries such as England, Canada, and South Africa. Budget 2010-11 vs. 2011-12 Tourism Sector In order to boost investment in the tourism sector which has high employment potential, the government extended the benefit of investment linked deduction. Benefits of 100% investment linked tax deduction on capital expenditure (excluding land, goodwill and financial instrument) for building and operating a new hotel (commissioned after 1st April 2010) of two-star category and above, extended from select locations to across the country. Budget 2010-11 Budget 2011-12 Service tax on air conditioned restaurants possessing

licenses to serve alcoholic beverages. Service tax on hotel accommodation, in excess of declared tariff of Rs. 1,000 per day. Revision in service tax rates on air travel Hike in domestic and international travel (economy class) by Rs. 50 and Rs. 250 respectively. Tax on domestic air travel (other than economy) at standard rate of 10% (in line with international travel).

Customers
In tourism, customers are TOURISTS, the purview of tourists does not only include foreign tourists but also tourists from within India. It has become a challenge to please customers. With extreme availability of information and variety of options, it has become even more difficult to please customers in tourism industry. The customer satisfaction can be gauged on these parameters:

Infrastructural factors:
Accommodation Accessibility Transport Shopping facilities Informative

Services and Necessities: Safety factors:

Catering Entertainment Local people Safety Food Water Amenities

Cost related Natural or factors: Unique factors:

Prices Value for money Scenery Climate Overall Satisfaction

IMPACT OF TOURISM IN INDIA

Tourism industry in India has several positive and negative impacts on the economy and society. These impacts are highlighted below. POSITIVE IMPACTS 1. Generating Income and Employment: Tourism in India has emerged as an instrument of income and employment generation, poverty alleviation and sustainable human development. It contributes

6.23% to the national GDP and 8.78% of the total employment in India. Almost 20 million people are now working in the Indias tourism industry. 2. Source of Foreign Exchange Earnings: Tourism is an important source of foreign exchange earnings in India. This has favourable impact on the balance of payment of the country. The tourism industry in India generated about US$100 billion in 2008 and that is expected to increase to US$275.5 billion by 2018 at a 9.4% annual growth rate. 3. Preservation of National Heritage and Environment: Tourism helps preserve several places which are of historical importance by declaring them as heritage sites. For instance, the Taj Mahal, the Qutab Minar, Ajanta and Ellora temples, etc, would have been decayed and destroyed had it not been for the efforts taken by Tourism Department to preserve them. Likewise, tourism also helps in conserving the natural habitats of many endangered species. 4. Developing Infrastructure: Tourism tends to encourage the development of multiple-use infrastructure that benefits the host community, including various means of transports, health care facilities, and sports centers, in addition to the hotels and high-end restaurants that cater to foreign visitors. The development of infrastructure has in turn induced the development of other directly productive activities. 5. Promoting Peace and Stability: Honey and Gilpin (2009) suggests that the tourism industry can also help promote peace and stability in developing country like India by providing jobs, generating income, diversifying the economy, protecting the environment, and promoting crosscultural awareness. However, key challenges like adoption of regulatory frameworks, mechanisms to reduce crime and corruption, etc, must be addressed if peace-enhancing benefits from this industry are to be realized.

Negative Impacts
1. Undesirable Social and Cultural Change: Tourism sometimes led to the destruction of the social fabric of a community. The more tourists coming into a place, the more the perceived risk of that place losing its identity. A good example is Goa. From the late 60's to the early 80's when the Hippy culture was at its height, Goa was a haven for such hippies. Here they came in thousands and changed the whole culture of the state leading to a rise in the use of drugs, prostitution and human trafficking. This had a ripple effect on the country. 2. Increase Tension and Hostility: Tourism can increase tension, hostility, and suspicion between the tourists and the local communities when there is no respect and understanding for each others culture and way of life. This may further lead to violence and other crimes committed against the tourists. The recent crime committed against Russian tourist in Goa is a case in point. 3. Creating a Sense of Antipathy: Tourism brought little benefit to the local community. In most all-inclusive package tours more than 80% of travelers fees go to the airlines, hotels and other international companies, not to local businessmen and workers. Moreover, large hotel chain restaurants often import food to satisfy foreign visitors and rarely employ local staff for senior

management positions, preventing local farmers and workers from reaping the benefit of their presence. This has often created a sense of antipathy towards the tourists and the government. 4. Adverse Effects on Environment and Ecology: One of the most important adverse effects of tourism on the environment is increased pressure on the carrying capacity of the ecosystem in each tourist locality. Increased transport and construction activities led to large scale deforestation and destabilisation of natural landforms, while increased tourist flow led to increase in solid waste dumping as well as depletion of water and fuel resources. Flow of tourists to ecologically sensitive areas resulted in destruction of rare and endangered species due to trampling, killing, disturbance of breeding habitats. Noise pollution from vehicles and public address systems, water pollution, vehicular emissions, untreated sewage, etc. also have direct effects on bio-diversity, ambient environment and general profile of tourist spots.

CONCLUSION
Tourism industry in India is growing and it has vast potential for generating employment and earning large amount of foreign exchange besides giving a fillip to the countrys overall economic and social development. But much more remains to be done. Eco-tourism needs to be promoted so that tourism in India helps in preserving and sustaining the diversity of the India's natural and cultural environments. Tourism in India should be developed in such a way that it accommodates and entertains visitors in a way that is minimally intrusive or destructive to the environment and sustains & supports the native cultures in the locations it is operating in. Moreover, since tourism is a multi-dimensional activity, and basically a service industry, it would be necessary that all wings of the Central and State governments, private sector and voluntary organisations become active partners in the endeavour to attain sustainable growth in tourism if India is to become a world player in the tourism industry.

Conclusion:
Tourism Industry is a very dynamic industry and so are its challenges and strategies, therefore a learning approach towards best-practices would yield better results in enhancing competitiveness of this industry. Also, the need for sound perspective in planning and private-public-community participation is imperative for this purpose. This paper was an attempt to illuminate the area through simple yet effective examples and cases collected from around the world, based on their contribution in making their respective Tourism Industry more competitive. It leaves a background for further research, as assessing theimplications of using the above mentioned best-practices in Indian Tourism Industry can be another rewarding study. Foreign exchange earnings went up by 23 % (2003). International tourist arrivals increased by 16 %. INDIA selected among the top 10 preferred destinations: The Conde Nast Traveller. Among the top 5 destinations: The Lonely Planet Travel Guide.

The planning framework of Indian Tourism Industry can be redesigned,taking World Tourism corporations recommendations of 2002-07 as a base.Tourism has adopted an industry oriented outlook for making professionallydesigned specific plans for responding to changing consumer demands and other critical and contemporary issues, like: Destination marketing; Product, branding and competitive positioning.

Technological Advancement:
ECommerce
All those web sites and portals launched by government as well as private organizations would offer a wide range of tourism products and services like airlines, hotels, restaurants, camp-sites, tours, activity centers, concerts, festivities,shopping and many more with choicest of assortments of services.Plan the tour online through agents web sites. Reservation or shopping of facilities for train, airlines, cruise, hotels, resorts, motels, and rental cars andadventures can be done on line. Still leaving a part of simple web based portal, which just provides static information & beautiful pictures with less updatedknowledge and data transfer, tourism industry is expecting more practical and satisfied chain solutions from Information Technology.

Customer Relationship Management

CRM based system enables service provider to provide knowledge, value and efficient service to its clients. CRM enables service provider to build up a lifetime relationship by providing on time solutions. Especially tourism industry needs excellent CRM solutions to assist visitors or clients before flying on tour, during tour and always after tour services. CRM solutions can be provided to avisitor through web, email, call centre, kiosks and travelling information offices any time & anywhere. What an experience! We are standing at "TajMahal" and we are able to read history details with all graphics and animated roles on multimedia kiosks. Even we can check our further travel registration request process through kiosks. So much beyond our imagination

Value chain integration

Tourism industry is a chain of many service providers. In long term solutions, cost cutting & effectiveness in data & information transfer, speed in transactions and looking towards heavy multimedia based services back end systems need excellent value chain integration through solutions like SCM, ERP and CRM.However till today applications of SCM and ERP are not up to the industrial remarks as tourism industry is kind of service industry.

Knowledge Management System

KM and business intelligence systems have wide scope of implementation inTourism industry. Well, well, well we can imagine it. Comparing historytimelines and providing instance knowledge about place on the spot makes eager to know more about place to a tourist. Even information enables analyst to find tourists behaviour and trends with data and information. To find out customers demand is no more difficult task.

SWOT ANALYSIS:Strengths: Rich culture heritage and colourful festivals. Scenic beauty of the country draws tourists from far off places. Terrain is ideally suited for various adventure activities. Well known Indian hospitality. Weaknesses: Inadequate infrastructure to match the expectation. Restrictive Airline Policy of the Government of India. Overcrowding of popular tourist centres. Inadequate marketing and information channels. Some places are inaccessible, especially in winter. Opportunities: GOI is giving special attention to certain regions like Northeast India. Asian Development Bank is preparing a Sub-Regional Plan for development of tourism in India. Potential for private sector's investment in tourism projects. Availability of high quality human resource. Threats:

 Strong Competition within states of India and abroad. Terrorism is a major setback of the region. Disorganized tourism development. Environmental factors also impose a threat.

Key Issues and Facts Analyzed

- What is the current state of tourism industry in India? - What are the emerging trends in the tourism sector in India? - What is the future outlook of the tourism industry in India in terms of inbound as well as outbound tourism, and expenditure by inbound and outbound tourists? - Which factors are driving the India tourism industry? - What are the emerging trends in the Medical Tourism Industry in India? - Key regulations and policy environment in the industry. - What is the future scenario of the Medical Tourism Industry in India? - What opportunities exist for the Medical Tourism Industry? - What Challenges are faced by the industry? - Who are the Key players in Indian medical tourism industry? - Government initiatives to promote medical tourism in India.