Growth and Performance of Tourism Industry in India Dr. L. N. Ghatage Head Department of Business Economics, D.G. College of Commerce, Satara (Mbl 9850110746) Email
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Dr. V. M. Kumbhar Assistant Professor Department of Business Economics, D.G. College of Commerce, Satara (Mbl 9860176059)
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Introduction Tourism is an integral part of human life. It is a situation where person from one country, or region to other region and country for a short run period, is included in the concept of tourism. Now-a-days the tourism industry has a greater importance. India has a greate heritage of historical place like the Taj Mahal, Verious Forts, Natural sites etc. Since 2000 tourism industry has been giving number of benefits to India. The number of foreign tourits visited to India which has given foreign exchange earning to the Country. Here, we have focused the grwoth and performance of the Indian tourism industry. We have also analized the causal analysis of the Indian tourism industry for overall development of the Indian economy. National tourism policy 2002 and its implications are important in this context. Objectives of the Study 1. To take review of tourism industry of the country 2. To study the growth and performance of tourism industry in India 3. To study the trend of foreign tourist arrival in India 4. To identify the problems of tourism industry in India and suggest remedies Data and Methods The present research paper is mostly based on secondary data sources. We have collecetd secondary data required for this paper from Reports of the Ministry of Tourism, Govt. of India 2014, India Tourism Statistics at a Glance 2013, Statistical Handbook of India, and other related infromation has been collecetd from the policy papers as well as research papers published in verious journals. All collected data was analized with the help of trend line analysis. Review of Indian Tourism Industry In India, the Central Government and State Government have announced separate tourism policy concern to their state time to time. Tamilnadu, UP, Andra Pradesh, Karnataka, Maharashtra, MP, Kerala, Rajastan, Gujarat and West Bengal are the important states where tourisim industry has developed. Due to the increasing importance of tourism sector Seventh five year plan of the Government of India has
annocunced the tourism sector as industry. The first public milestone in the history of the Indian tourism sector is the establishment of Indian Tourism Development Corporation (ITDC) in 1966. On the Basis of this, majority of the states have given the facilities through ITDC separatelly. The first Ttourism policy was announced in 1982 in India. This policy was launched for the action plan for the tourists’ arrival and necessory facilities to provide them. These facilities are includes altramodern facilities of accomodation, hotels and meanas of transport etc. The efforts was made to provide these facilities as a cooperative ventures to collect maximum earnings from domastic and foreign toruists arriveles in India. The government of India has oppointed Committee on National Tourism in 1988. This committee has focoused on public sector to develop tourism sector in India. The committee has recommanded to prepare a plan for Tourism development in each state. The committee also suggested to the states to make the provision of fiscal and monetory incentives along with enviornmental protection. Since 1991 the Central Government has revised the action plan for the development of Tourism industry in country. This plan is mainly focused for increaseing employment opportunities, preservation of national heritage and environment and the development of international Tourism for the optimization of foreign earinings. This policy has also desided to enhance India’s share in world Tourism from 0.4% to 1% within the five years. The important features of National Tourism Policy 2002 are as follows; 1. Tourism is an important tool for employment generation, economic development and rural tranformation in India 2. To take advantage of global trade transction through traval and tourism 3. This policy is based on seven key indicators of tourism development. These indicators are i) welcome ii) information iii) facilitation iv) seaftyness v) Co-operation vi) insfrastructural development vii) cleanliness 4. To use human resource, natural resources and technical resources for sustainable development 5. To use labour intensive technique in tourism sector for employment generation and upgradation of quality of life. 6. To focus on rural areas for low cost programmes related to tourism centers 7. To create forward and backward linkages in the tourism sector for overall development 8. To increase the foreign earnings through export of tourism services 9. To promote understanding, peace and to contribute national unity and regional stability 10. To develop shoping centers for the revienue generation and other rural tourism products
Review of Research on Tourism Sector For the purpouse of understanging the facts about the Tourism industry we have reviewed some important research papers related to Tourism sector; Shalini N. Tripathi & Masood H. Siddiqui (2010) mentioned that tourism and hospitality have become key global economic activities as expectations with regard to our use of leisure time have evolved, attributing greater meaning to our free time. While the growth in tourism has been impressive, India's share in total global tourism arrivals and earnings is quite insignificant. It is an accepted fact that India has tremendous potential for development of tourism According to Lok Sabha Secretariat (2013), the role of the Government in tourism development has been redefined from that of a regulator to that of a catalist. Apart from marketing and promotion, the focus of tourism development plans is now on integrated development of enabling infrastructure through effective partnership with various stakeholders. Ashish Nag (2013) mentioned that the Ministry of Tourism in any country seeks ways to promote and develop tourism in the country. Tourism Industry Growth in any country is prone to the changing economic conditions. In the event when a country is passing through a low phase or an individual's job is at stake, not many people choose to travel. Archana Bhatia (2013) mentioned that tourism today is a leisure activity of the masses. People today travel to international destinations to break the regular monotony of life. They are mainly attracted by either the scenic beauty of its nature or by fascinating leisure, sports and adventure activities offered by the destination. But every destination has some internal strengths and weaknesses that either enhance its capacity to attract foreign visitors or diminish it. Similarly from the external environment can originate various opportunities or threats as well. Anushree Banerjee (2014) stated that the major issues that are restraining the industry from achieving high economic value are shortage of qualified personnel, shortage of tourism training institutes, shortage of well qualified trainers, working conditions for the employees. Policies which can help the employees to work in supportive environment are also a point of concern. The paper is an attempt to judge the work done by the HRD team of the tourism industry with special reference to Jet Airways India Ltd. This in turn can enhance the capabilities and motivate them to work more efficiently. Growth of Tourism Industry in India A growth of Tourism industry in India sicne 1997 to 2013 is continousally growing in respect of number of foreign tourists’ arrivals and foreign exhange earnings. Accoridng to the annual report of tourism industry of 2013-14, the progress of Tourism industry is shown in the Tabale No-1
Table No1: Foreign Tourist Arrivals (FTAs) in India, 1997-2013 FTAs from Tourism in Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Percentage (%)
India (in Million) 2.37 2.36 2.48 2.65 2.54 2.38 2.73 3.46 3.92 4.45 5.08 5.28 5.17 5.78 6.31 6.58 6.97
change over the 3.8 year previous -0.7 5.2 6.7 -4.2 -6.0 14.3 26.8 13.3 13.5 14.3 4.0 -2.2 11.8 9.2 4.3 5.9
Source:(i) Bureau of Immigration, Govt. of India, for 1997-2013
Table No1 indicates the growth of foreign tourists’ arrival in India. If we consider the trends in foreign toruists arrivals in India since 1997 to 2013 there is continous growth. The Figure No 1 depicts the trendline in foreign tourists’ arrivals.
8 7 6 5 4 3 2 1 0
Figure No 1 : FTAs from Tourism in India (in Million)
Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Foreign Exchange Earnings from Tourism Sector It is necessory to consider the economic significance of tourism industry in India. The total fess collected from the foreign toruisrst arruval in India and the changes in it since 1997 to 2013 gradually increeased from 2889 US$ to 18445 US$. It indicates that tourism industry has
given continously foreign aernings to India. The details regarding the FEE from Tourism in India and its changes per year have shown in the Table No 2. Table No. 2: Foreign Exchange Earnings form Tourism Sector (in US$ FEE from Tourism in India Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
2889 2948 3009 3460 3198 3103 4463 6170 7493 8634 10729 11832 11136 14193 16564 17737 18445
Million)
Percentage (%) change over the previous year 2 2 2.1 15 -7.6 -3 43.8 38.2 21.4 15.2 24.3 10.3 -5.9 27.5 16.7 7.1 4.0
Source: Government of India, Ministry of Tourism Report 2014 Table No. 2 shows the foreign exchange earnings of tourism industry of India since 1997 to 2013. If we observed the seventeen years data shown in the table, seven years i.e. 2000, 2003, 2004, 2007, 2010 and 2011 the percentage of change over the pervious year is higher than the previous year. The trends in the foreign exchange earning are shown in the figure 2.
Fig 2: FEE from Tourism in India 20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0
Statewise Scene of foreign Tourist Arrivals in India There are 10 top states in India where the foreign tourists visit every year. These states are of Maharashtra, Tamil Nadu, Delhi, UP, Rajstan, West Bengal, Kerala, Bihar, Karnataka and Goa. The number of domestic and foreign tourists’ visit frequentaly visits to the important places to these states. The total number of foreign tourists visits to these states in 2013 shown in the Table No. 3 Table No 3 : Share of Top 10 States/UTs of India in Number of Foreign Tourist Visits in 2013 Foreign Tourist Visit in 2013 (P) Rank State/UT
Number
Percentage Share %
Maharashtra
4156343
20.8
Tamil Nadu
3990490
20
Delhi
2301395
11.5
Uttar Pradesh
2054420
10.3
Rajasthan
1437162
7.2
West Bengal
1245230
6.2
85814
4.3
Kerala Bihar
3
76583
3.8
Karnataka
5
63637
3.2
Goa
8
49232
2.5
Total of Top 10 States
2
1793771
89.9
Others
8
2013308
10.1
1995102
100
Total
6 Ministry of Tourism 2014 Source: Government of India, Table No3 indicates the share of 10 important states of India in respect of the development of tourism industry. Maharashtra, Tamilnadu, Delhi and UP are the four most important states which contributes 61.8% of foreign tourists arrival in 2013. Remaining states are also important regarding foreign tourists visits. The share of these 10 states about 89.9% in total tourists’ arrival in India.
Fig 3 : Foreign Tourist Visit in 2013 Maharashtra
2.47%
10.09%
Tamil Nadu
3.19% 3.84%
20.83%
Delhi Uttar Pradesh
Rajasthan
4.30%
West Bengal 6.24%
Kerala 20.00%
7.20%
Bihar
Karnataka Goa 10.30%
Others
11.54%
Indian Tourism Industry-A Global Scene In 2006, India’s share was 1.16% of the world market travel and tourism market. Further, the WTO has forecast the Travel & Tourism Industry in India to grow by 8% per annum in real terms, between 2008 and 2014. Foreign exchange earnings from tourism alone could show annualized faster growth during the same period. The government of India has given inspiration to tourism industry since 1991. This industry has modernised the facilities to be provided to the foreign tourists so since new economic policy India’s share in international tourism market has increased. The share of India’s international Tourism receipts in the world and Asia and Pacific region during the period of 1997 to 2013 is shown in the Table No 4. Table No 4: Share of India in International Tourism Receipts in World and Asia & the Pacific Region, 1997-2013 International Tourism Receipt (In US $ billion) Asia and World the Pacific
FEE in India (In US $ Million)
1997 1998
442.8 444.8
82.6 72.3
1999
458.2
2000 2001
475.3 463.8
Year
Percentage (%) share and rank of India in World % Share
Rank
Percentage (%) share and rank of India in Asia and the Pacific % Share Rank
2889 2948
0.65 0.66
34th
3.5 4.08
-
79.1
3009
0.66
35th
3.8
-
85.3 88.1
3460 3198
0.73 0.69
36th 36th
4.06 3.63
10th 12th
2002 2003
481.9 529.3
96.5 93.7
3103 4463
0.64 0.84
37th 37th
3.22 4.76
13th 9th
2004 2005
633.2 679.6
124.1 135
6170 7493
0.97 1.1
26th 22nd
4.97 5.55
8th 7th
2006 2007
744 857
156.9 187
8634 10729
1.16 1.25
22nd 22nd
5.5 5.74
7th 6th
2008 2009
939 853
208.6 204.2
11832 11136
1.26 1.31
22nd 20th
5.67 5.45
6th 7th
2010
931
255.3
14193
1.52
17th
5.56
7th
2011 2012 2013
1042 1078 1159
289.4 329.1 358.9
16564 17737 18445
1.59 1.65 1.59
17th 16th 16th
5.72 5.39 5.14
8th 7th 8th
Source: (i) UNWTO Tourism Market Trends 2007 Edition, for the ears upto 2005 (ii) UNWTO Barometer June 2009 for 2006 & 2007 (iii) UNWTO Tourism Highlights 2011 Edition for 2008 and 2012 Edition or 2009 . (iv) UNWTO Barometer April 2014 for 2010, 2011 , 2012 & 2013
Major Findings and Suggestions Tourism industry has been developed in India after post reform period. The study of this industry reveals the situation of foreign tourists’ arrivals in India during the period of 1997 to 2013. The trends and major findings of this paper are as follows; 1. There are 10 important states in India where foreign tourists visits. They are of Maharashtra, Tamil Nadu, Delhi, UP, Rajstan, West Bengal, Kerala, Bihar, Karnataka and Goa. 2. The share of top ten states in India in respect of foreign tourists’ visits was 89.9 percent in 2013. 3. India’s share in the world market of traval and tourism has also increased from .65% to 1.59% during the period of 1997 to 2013. 4. One of the important features of the progress in India’s rank in the world has also developed from 40th rank to 16th rank. 5. We also observed that the share and rank of India’s tourism sector towards asia and pacific countries has reached up to the 8th rank 6. The Central Government and state governments has announced ourism policy time to time for the improvement of tourism sector in India. 7. National tourism policy 2002 has given different facilities and recommandations for the development of tourism sector.
8. The different study on tourism sector reveals the need of changes to be made for the development of traval and tourism sector. 9. The studies conducted by the researchers reveals that the facilities to be provided by the government to these centers 10. Recent study conducted in 2014 focused on the major issues related to the development of tourism industry and enahancing the foreign capital to India. 11. The central and state governments should provide qualified personels and related facilities to develop tourism sector in India. 12. It is necessary to arrenge training programme by the human resource ministry to develop the manpower involved in the tourism sector.
Referances
1. Ashish Nag (2013). A Study of Tourism Industry of Himachal Pradesh With Special Reference to Ecotourism, Asia Pacific Journal of Marketing & Management Review, Vol.2 (4), April (2013) 2. Archana Bhatia (2013). SWOT Analysis of Indian tourism Industry, International Journal of Application or Innovation in Engineering & Management (IJAIEM), Volume 2, Issue 12, December 2013 3. Shalini N. Tripathi & Masood H. Siddiqui (2010). An empirical study of tourist preferences using conjoint analysis, Int. Journal of Business Science and Applied Management, Volume 5, Issue 2, 2010 4. Anushree Banerjee (2014). Human Resource Development in Tourism Industry in India: a Case Study of Jet Airways India Ltd. Journal of Tourism: A Contemporary Perspective, Vol 1(1), 1–6, January 2014 5. Lok Sabha Secretariat (2013) Tourism Sector in India, http://164.100.47.134/intranet/TourismSectrinIndia.pdf 6. Annual Report of Ministry of Tourism 2013-14
