Tourism in India

A service sector growth industry

India: An emerging superpower
Indias GDP will exceed
Italys in 2020,
Frances in 2020
Germanys in 2025 and
Japans in 2035

Goldman Sachs Projections (US 2003 $ Billion)

Tourism growth in India
According to World Tourism Organization
estimates, India will lead in South Asia with
8.9 million arrivals by 2020

India is poised to emerge as the 2nd fastest

growing (8.8%) tourism economy in the
world over 2005-14 according to the World
Travel & Tourism
Foreign earnings
There has been a growth of more than 13%
in foreign tourist arrivals at 3.9 million during
2005, up from 3.4 million foreign tourists who
visited India during previous year.

Foreign exchange earnings from foreign

tourists were up by more than 20% at
$5,730.86 million in 2005, up from $4,769
million earned the previous year.
Air travel and India
Indian air travel to grow 20% each year for the next 5
years

Government and private operators will invest $20 billion

in aircraft and infrastructure over the next five years

Air India will be adding 68 aircraft to its present fleet,

Indian Airlines 43 and private airlines around 275

By 2010, Indian airports will be handling between 90

and 100 million passengers (59 million domestic & 35
million international passengers)
Tourist destinations
North East States such as Sikkim, Assam and
Nagaland have emerged as major players. The major
focus in 2005 was to develop tourism infrastructure in
the region.

New States Uttaranchal attracted 14 million tourists

and in 2004 witnessed a growth of 40% in 2005. Major
focus on marketing to attract high spending tourists,
initiatives to create world-class infrastructure.

Beautiful South Aggressive marketing has helped

achieve over 25% growth in tourism in southern
states. Andhra Pradesh and Karnataka are witnessing
an upswing in foreign tourists.
Forms of tourism
Cultural tourism & Round Trips covering the
popular circuits comprising of the Golden Triangle,
Rajasthan, N. India & in South the well known
temples, backwaters & beaches.

Mass tourism Goa is a tourism based economy

and a leader in this sector, is all set to promote
mass tourism. Goa also won the 2nd most popular
winter destination in UK.

Commonwealth Games 2010 the government

is investing in infrastructure, to further develop
tourism in and around Delhi.
An all-year round destination.
Throughout the world,
India is perceived as a
October to April winter
destination.

Marketing initiatives
by both the
Government and the
private sector is now
successfully
addressing & changing
this perception.
New Tourism Products
Monsoon magic - focus on months from April to
October

Rural & village tourism - the tourism ministry is

laying special emphasis on infrastructure development
in various rural destinations in India.

Medical tourism - the Indian Healthcare Delivery

market is estimated at US$ 18.7 billion. The industry is
growing at about 13 per cent annually.

Luxury tourism e.g. Palace on Wheels, Palaces

Adventure tourism with emphasis on eco-tourism

Benefits of tourism
There has been a positive change in perception about
the benefits of tourism in the minds of planners,
policy makers and as well as state governments in
India.

Tourism is now being seen as an engine of growth

for the economy and a key employment generator.

Low Capital Investment in the trade.

Imports earn foreign exchange.

Cultural revival/ regeneration

Ecotourism in Kerala

There has been a major

growth in ecotourism
that is sustainable and
environmentally non-
invasive.
Resorts are designed
using local labour forces
and local materials.
Energy sources are
sustainable: cow dung
and wood
The market for Ecotourism

Ecotourism tends
to be geared to a
young and
wealthy market.

Activities are
marketed and life
style emphasised.
Medical tourism in India
Medical care in the USA and private health care in UK is very
expensive. India has well-trained doctors who will work for a
lower fee than they could expect abroad.

Medical tourism offers people the option of knee

replacements, hip replacements, heart care, cosmetic &
dental surgery in India.

Hundreds of people have treatment abroad, saving them a

great deal of money in treatment costs.
Sample costs
Discussion points
What does India have to offer tourists? Do some
personal research.

What impact could tourism have on local economies?

What impact could tourism have on local

environments and local traditions?

Should people fly long distance for eco-tourism?