Escolar Documentos
Profissional Documentos
Cultura Documentos
Group - 1
Members
Name
Student ID
Email ID
Section
1301-018
ft13amitkumarswain@imt.ac.in
M V S Srikanth
1301-108
ft13mvsshrikant@imt.ac.in
Sachin Jaiswal
1301-399
ft13sachinjaiswal@imt.ac.in
Saswati Sunayana
1301-196
ft13saswatisunayana@imt.ac.in
Sidheshwar Birajdar
1301-218
ft13sidheshwarbirajdar@imt.ac.in
Sudipta Goswami
1301-420
ft13sudiptagoswami@imt.ac.in
Sulabh Gupta
1301-572
ft13sulabhgupta@imt.ac.in
A
Abstract
Tourism, is not just a leisure activity anymore. Large amount of revenue is generated from this
sector and that adds to the many other potentials of this industry such as employment
generation, improved lifestyle of residents, cross culture communication etc. Tourism in a way,
is related to every other industry, though the connection has not been focussed on in many
research papers. This paper attempts to find a relation between the dependent and independent
variables of tourism industry, handicraft industry, IT industry and hospitality industry. While in
some cases, the hypothesis formed comes out with a clean chit, in some other cases it has
been rejected since the conditions of hypothesis did not come true.
Acknowledgement
As a part of our curriculum, we completed our research on the topic and submitted an account
of our work. During the research, we have utilized the resources of the institute and taken help
from professors, seniors and colleagues. This is an attempt to express our gratitude for all those
acts of cooperation.
Introduction:
Tourism evolved as a sector and created its own space in the market in the last two decades
only. Even though India has always been a place of interest for the visitors, tourism was not one
of the key sectors which were focussed on immediately after independence. In fact, as
acknowledged in National Tourism Policy, 2002, the growth of Indian tourism sector, is
dependent on many other sectors. Also the growth of this sector has direct or indirect impact on
these sectors. (http://www.academia.edu/1855785/TOURISM_IN_INDIA). The campaign
Incredible India gave a new direction to the perception towards tourism. This is evident from
the figures that say tourism and hospitality sector alone accounted for $2468.39 billion in the
period April 2000 - April 2011. Considering the increasing tourist arrival driven by business,
leisure and medical reasons at a compound annual growth rate of 8 percent, the future of this
sector seems a safe bet. Government initiatives to facilitate international air travel with better
connectivity, allow investments from private and foreign sources and develop infrastructure
have added value to the lucrative business models of tourism industry.
(http://www.asa.in/pdfs/surveys-reports/Tourism-in-India.pdf).
Literature Review:
In this section we went through the work of other researchers in the same area. The
methodology used was studied with much care so that we can jot down our thoughts on similar
lines. To start with, Liu and Wall presented a paper on planning tourism employment: a
developing country perspective. This research paper tells us to take a holistic approach for
tourism planning. It says that tourism shouldnt be about planning only for the visitors but
planning for both the visitors and the local residents. So the tourism plans should include
Human Resources development as a major focus area. Also the form of tourism should fit well
with the human resource capabilities of the area else the local people would find it difficult to
participate fully.
Tourism in developed countries a taken as an economic endeavour so it is well planned but it
developing countries it is not taken as a leading economic sector. Also most of the benefits of
the economic proceeds are taken up by the government and the tourism companies rather that
the local residents.
So Liu and Wall proposed a conceptual framework which focuses on using training and
education as tools to facilitate the entry of local residents and job advancements in tourism
sector. Thus tourism should be considered as a social engineering tool to promote
advancement of local residents.
T Asli D.A. Tasci gives us an idea about how much influence different factors have on the image
of a destination as perceived in the minds of tourists. This analysis is based on a large dataset
of Michigan Regional Travel Market Survey. The factors which are considered are based on
both cognitive and affective components. A regression analysis was conducted on all the factors
and finally it was concluded what all factors decide the destination image. The destination image
is considered to be a function of the following selected variables
DI = f (R, G, A, I, S, OTE, V, SS)
Where
DI = Respondents image of the study destination
R = Respondents race
G = Respondents gender
A = Respondents age
I = Respondents total annual household income
S = Respondents state of residence
OTE = Respondents overall travel experience
V = Prior visitation to the study destination
SS = Survey season
Onome Daniel Awaritefes study on Evaluating Tourism Resource Areas in Nigeria for
Development was conducted to find out the distribution of population in 101 identified tourist
destinations in Nigeria. Though there were major tourist attraction places in all the destinations it
was found out the majority of tourism was concentrated in the Lagos and Yankari/Jos/Abuja.
This was because of the easy accessibility and the cultural and natural resources present in
those areas. This study thus establishes the conditions required for destination planning and
marketing approaches required for the other regions.
Moller et al. tried to study the changing travel behaviour of Austrias ageing population and its
impact on tourism. As the average age of population is increasing continuously and this
phenomenon is more visible in the western countries, it is important to consider their
preferences in all the industry. This paper researches on the effect of this aging population on
tourism industry. It tries to find out whether the tourism interest changes according to age. Thus
a research was conducted in Austria with a participant age group of 55+ and their leisure and
travel habits were analysed.
It was found out that they didnt change their travel habits considerably but their preferences
were changed like they now preferred longer stays and travelling off season. Thus it was
concluded that as the travel and leisure behaviour are build up gradually during the life span of
the people they dont get changed completely with age.
Lindroth et al. put attempt to study why creativity was important in the tourism sector also. With
rising creative influence in every sector the tourism sector also needs organisational creativity
along with cultural competence. This is achieved by researching in a town of Porvoo in Finland.
Creative tourism is an extension to normal tourism. It offers visitors with an opportunity to
develop their creative potential by active participation in learning experienceswhich are
characteristic of the holiday destination where they are undertaken (Richards and Raymond,
2000). The needs of the visitors are changing and the completion among destinations are
increasing. It was concluded that the tourism is affected with a wide range of factors like sociophysical environment, logistics, traffic, accessibility marketing, service structure, networking etc.
According to Zehrer and Siller, although motivation is merely one variable explaining travellers
behaviour, it's considered to be one of the most important. Hence, nature-based commercial
enterprise resources as non-market product or destination product have their own economic
value that is often neglected. This paper seeks to look at this issue. This study attempts to
quantify the value and significance of nature and landscape for tourists travel motivation for
vacations. The study was conducted across both the summer and winter seasons. The survey
shows that notably within the summer season Nature/Landscape is that the most significant
theme for summer vacation nowadays and it can be even more in 2020. Therefore, it clearly is
one in all the foremost essential travel motives within the eyes of the consultants. Nature-based
vacation encompasses a robust significance and price for the province, with Nature among the
highest 3 strengths within the Delphi survey.
Travel photos are often symbols reflective inner feelings of the photographers. They additionally
function as records that store travel expertise of the photographers. By content analysing one
hundred forty five travel photos submitted to the New York Times, Pan et al.s paper aims to
explore the relationships among motivations, image dimensions and affective qualities of
places. It was established that image dimension of natural resources like flora and fauna,
wealth of countryside and beaches are often associated with pleasant and arousing
feelings toward a destination. On the other hand, image dimension of culture, history and art is
frequently associated with pleasant quality of an area. These three association rules are
successively frequently coupled to intellectual travel motivation. Photos that induce arousing
and pleasant feelings are typically taken in long shot, at eye-level angle, with stark density
level and with single-person composition.
Sirakaya and Woodside discussed about building-block propositions for making useful theories
of decision making by travellers by a qualitative review of the tourist decision-making literature.
This article describes trends in developing someone destination selection models besides
examining decision-making propositions from the literature, the article covers resolution of
important issues which are needed for creating advances in understanding, describing, and
predicting tourist's decision-making. It tests theories like Advancing consumer decision making
in tourism and tests different consumer decision making theories and critically examines each. It
also examines various travel decision models and states their contributions and limitations.
Croes and Vanegas Sr. put forward their study to examine the econometric estimates so as to
elucidate tourist arrivals to Aruba from the United States, Netherlands and Venezuela. The
study specified a dynamic economics model for modelling short term as well as the long-term
responses. It calculated both linear and log-linear functions, and it applied the BoxCox
statistical procedure to determine the suitable practical form. The inclusion of Venezuela as a
developing country allowed the comparison of the behaviour of tourism demand in
comparatively rich and poor countries. The results showed to how much extent the crosscountry behaviour of demand differs with regard to changes in effective costs and exchange
rates. It was found out that price and exchange rate are considerably more important and
compelling pull conditions for Venezuelan tourists than the American and Dutch tourists. So this
finding reflects the stage of economic development of Venezuela with reference to the other two
countries. For all countries, the foremost result is the importance of the income variable,
followed by the exchange rates and relative prices.This study will assist future formulation of
the present understanding of small firms. It also shows how this knowledge leads to wider
tourism understanding. It was established that there were not sufficient evidence to establish
that the small firms impact tourism in a positive or negative way. Thus this area should be more
researched.
Scope of study:
Our study focuses on tourism sector and its importance for the overall growth of Indian economy
and how it affects other industries. Previously there have been studies on demand function
models with the help of which we can determine the effect of independent factors such as
income, price, transportation cost, foreign exchange rate etc. As mentioned in the literature
survey we have gone through research papers on the econometric study in other countries.
These models helps optimizing the revenue of tourism industry with the help of the independent
factors. However, according to our best knowledge, this interdependence of sectors has not
been studied properly and we see some scope of research here.
We put forward a hypothesis that there are independent factors in other sectors which have
direct or indirect impact on tourism. In this report we have tried to determine the effect of these
independent factors on the growth of tourism industry in terms of revenue generated and tourist
arrival. The results can be used to justify an attempt to tap the yet unexplored areas of this
sector.
Hypothesis formulation:
The hypothesis of this research makes a claim that change in number of tourist footfall can be
expected with change in percentage penetration of IT industry and number of approved hotels in
India. So if we define the actual number of tourist footfall and the expected number of
footfall , where = a+ b , the form of hypothesis can be given as
:
:
Methodology:
Starting with handicraft sector, we studied a survey given by ministry of tourism and culture on
the expense of foreign tourists on handicrafts. 58 percent of tourists were male, age of 70
percent of the tourists was in the range of 25 to 44 years, about 36 percent tourists were
business executives, 10 percent were students and 27 percent were from service industry. Also
43 percent of the tourists come in the more than average income category and 32 percent in
average income category thus making a perfect bias free sample space. The expenditure
pattern of the tourists was studied. The total and per capita expenditure on handicrafts were
estimated separately. The handicraft items were grouped under 12 major heads. The impact of
various factors such as age group, income range, city of stay and number of days of stay was
studied separately.
Coming to IT sector, we observed that various issues tourists used to face are being addressed
by latest innovations in information technology. With the increase in number of internet users
the number of tourist arrival in India also shows a positive trend. We analysed the data available
and came up with a hypothesis that the percentage penetration of internet can be described as
an independent factor affecting the growth of tourism industry.
Finally, we took hospitality industry into consideration. We studied the trend of foreign tourist
arrival in India, the occupancy rate of hotels by foreign and domestic tourists and tried to find a
connection between the number of approved hotels in India and tourist footfall, number of
approved hotels being the independent variable.
Data Collection:
Number of Foreign Tourist Visits in India
(1997 to 2012)
(In Million)
No. of Foreign
Percentage
Tourist Visits
(%) Change
over the
Year
Previous Year
1997
5.5
9.3
1998
5.54
0.7
1999
5.83
5.3
2000
5.89
1.1
2001
5.44
-7.8
2002
5.16
-5.1
2003
6.71
30.1
2004
8.36
24.6
2005
9.95
19
2006
11.75
18.1
2007
13.26
12.8
2008
14.38
8.5
2009
2010
2011
2012
5.17
5.78
63.09#
66.48#
-2.2
11.8
9.2
5.4
Note: #: In Lakh.
Source: Ministry of Tourism, Govt. of India.
From the above graph, it can be seen that the number of foreign tourist visits to India remained
almost constant during the period of 1997 to 2001. The number of foreign tourist visits started to
grow consistently from 2002 onward till 2008 after which there was a sharp dip in the number of
foreign tourist arrivals to India. This dip could be justified by the onset of recession period in
2009.
Foreign Exchange Earnings from Tourism in India
(1991 to 2012)
Rs. in
In US$
Year
Crore
Change
Million
Change
1991
43180
1861
1992
59510
37.8
2126
14.2
1993
66110
11.1
2124
-0.1
1994
71290
7.8
2272
1995
84300
18.2
2583
13.7
1996
10046
19.2
2832
9.6
1997
10511
4.6
2889
1998
12150
15.6
2948
1999
12951
6.6
3009
2.1
2000
15626
20.7
3460
15
2001
15083
-3.5
3198
-7.6
2002
15064
-0.1
3103
-3
2003
20729
37.6
4463
43.8
2004
27944
34.8
6170
38.2
2005
33123
18.5
7493
21.4
2006
39025
17.8
8634
15.2
2007
44360
13.7
10729
24.3
2008$
50730
14.4
11747
9.5
2009$
54960
8.3
11394
-3
2010
64889
18.1
14193
24.6
2011
77591
19.6
16564
16.7
2012
94487
21.8
17.74^
7.1
Rs. in Crore
100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
Rs. in Crore
From the above graph it can be seen that the foreign exchange earnings from tourism in India
has grown substantially over the years. As we have seen above that over the years the foreign
tourist visits have grown substantially and hence has grown the foreign exchange earnings from
tourism in India.
For handcraft industry, data was collected taking all the diversified factors that can affect
tourism revenue into consideration which included profile of tourists such as gender, age,
profession, income group and country of origin, number of days of stay in India, currency used
and city of departure into consideration. The expenditure pattern of the tourists was studied
taking daily per capita expenditure and total expenditure into account separately.
Percentage penetration of IT industry was studied year wise. Also, we focussed our attention on
online travel agencies. The trend of share of tourism sector B2C e commerce space was
observed. We also tried to find give a picture of the distribution of online travel sales in India
across bus travel, air travel, railways, hotel booking and hotel deals.
Data for hospitality was taken from indiastats.com. We concentrated on number of hotels in
India and the bookings. Information regarding average number of days of stay, share of
domestic tourists and foreign tourists and distribution across 5 star, 4 star, 3 star, 2 star, 1 star
and heritage hotels were also collected.
Data analysis:
For the analysis of data related to hospitality sector, we studied two parameters such as the
number of approved hotels in India and the percentage share of foreign tourists in the hotel
bookings. The data was taken for the period 2002-08.
Regression Statistics
Multiple R
0.343570657
R Square
0.118040796
Adjusted R Square
-0.058351045
Standard Error
263.2293459
Observations
Coefficients
Standard
Error
t Stat
Pvalue
Intercept
1855.03338
328.581479
4
5.6455
81
0.002
42
1010.
388
2699.
679
1010.
388
2699.
679
X Variable
-25.77596181 31.5092496
4
0.8180
4
0.450
542
106.7
73
55.22
114
106.7
73
55.22
114
The simple linear regression analysis with number of approved hotels as input parameter (x)
and tourist footfall as the input parameter (y) year wise gave the t stat value 5.64 and R square
value 0.118. As the t stat value exceeds critical t value 2.306 with 8 df, our null hypothesis
doesnt get rejected. Some unknown but non-zero value of b exists and there definitely lies
some correlation between the independent and dependent parameter. Also, from the R square
value it can be inferred that 11.8 percent of tourist footfall can be explained by number of
approved hotels in India.
Regression Statistics
Multiple R
0.494305353
R Square
0.244337782
Adjusted R Square
0.093205338
Standard Error
2.476131526
Observations
Coefficients
Standard
Error
t Stat Pvalue
Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercept
20.240
3.090882
6.54
8
0.001
244
12.29
478
28.18
551
12.29
478
28.1855
107
X Variable
0.376
0.296399
1.27
15
0.259
485
0.385
05
1.138
791
0.385
05
1.13879
122
Similar results were delivered when percentage share of hotel booking was taken as input
parameter (x) rest all conditions remaining the same. The t stat value and R square value were
found to be 0.244 and 6.548 respectively. Again it can be interpreted that since the t value
exceeds 2.306, we can assume safely that our hypothesis holds true and doesnt get rejected.
Also, it can be said that 24.4 percent of tourist footfall can be explained by the percentage share
of foreign tourists. This can be attributed to the initiatives being taken to improve the experience
of foreign tourists by Government and other institutions in India.
Regression Statistics
Multiple R
0.767723888
R Square
0.589399969
Adjusted R Square
0.486749961
Standard Error
0.786643797
Observations
Coefficients
Standa t Stat
rd
Error
Pvalue
Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercept
0.64819403
1.1056
45
0.5862
59
0.5891
89
2.4215
7
3.7179
56
2.4215
7
3.7179
56
X Variable 1
0.275608549
0.1150
18
2.3962
14
0.0746
62
0.0437
3
0.5949
51
0.0437
3
0.5949
51
Though we have tested our hypothesis there might be some errors as the data was taken in
2001-02 but still it was a large scale survey containing 12250 participants and thus we assume
that it will be comprehensible for our analysis.
Count
Male
10
Female
10
Sum
7145
5105
Average
Variance
714.5
403856.94444444
4
510.5
197824.72222222
2
ANOVA
Source of
Variation SS
df
MS
Between
Groups
208080
208080
Within
Groups
5415135
18
300840.8
33333333
Total
5623215
19
P-value
F crit
Thus by performing a single factor Anova over the distribution of tourists according their sex and
their spending on handicrafts we find that the amount spent by different groups of people
according to sex are not significantly different as the calculated F with 95% confidence interval
is lesser that the F critical value. Also the P value is greater that our threshold level of 0.05.
So the spending patterns of tourists grouped in terms of sex are not different.
Count Sum
Average
Variance
Service
10
1136
113.6
10946.7111111111
Business
10
4118
411.8
126439.733333333
Industry
10
4720
472
177662.222222222
Agriculture
10
1724
172.4
27821.1555555556
Students
10
432
43.2
2090.17777777778
Others
10
124
12.4
118.488888888889
ANOVA
Source
Variation
Between
Groups
of
SS
df
MS
P-value
F crit
1867424.3333
3333
5
Within
Groups
3105706.4
57513.08
14814815
Total
4973130.7333
3333
59
54
Thus by performing a single factor Anova over the distribution of tourists according their
professions and their spending on handicrafts we find that the amount spent by different groups
of people according to professions are different as the calculated F with 95% confidence interval
is much larger and the F critical value. Also the P value is less that our threshold level of 0.05.
So the spending patterns of tourists grouped in terms of their profession are significantly
different.
Analysis of Tourism expenditure variance according to Age.
SUMMARY
Groups
<25
25-34
35-44
45-54
55-64
65 & above
Count
10
10
10
10
10
10
Sum
1137
4115
4721
1722
432
123
Average
Variance
113.7
12875.566666666
7
411.5
130372.27777777
8
472.1
196605.21111111
1
172.2
22892.622222222
2
43.2
1242.8444444444
4
12.3
91.566666666666
7
ANOVA
Source
Variation
of
SS
df
MS
P-value
F crit
1867045.533333
33
5
6.15374
373409.106 1191498 0.0001396540 2.3860698615
666666
51
45435
7422
Within
Groups
3276720.8
60680.0148
148148
Total
5143766.333333
33
59
Between
Groups
54
Between
Groups
1741277.666666
66
9
2.84314
193475.296 3875712 0.0087659804 2.0733511634
296296
58
0622
7462
Within
Groups
3402488.666666
67
50
68049.7733
333333
Total
5143766.333333
33
59
Thus by performing a single factor Anova over the distribution of tourists according to their age
and their spending on handicrafts we find that the amount spent by different groups of people
according to age are different as the calculated F with 95% confidence interval is much larger
and the F critical value. Also the P value is less that our threshold level of 0.05. So the spending
patterns of tourists grouped in terms of their profession are significantly different.
Count
Below Average
10
Average
More
Average
Sum
1137
10
4113
Average
Variance
113.7
8792.6777777777
8
411.3
169592.23333333
3
472
186750.66666666
7
than
10
4720
High
10
1721
172.1
21704.766666666
7
Very High
10
431
43.1
1248.1
ANOVA
Source
Variation
Between
Groups
of
SS
df
1424696.
32
4
Total
MS
P-value
F crit
4917492.
32
49
Thus by performing a single factor Anova over the distribution of tourists according their income
level and their spending on handicrafts we find that the amount spent by different groups of
people according to income are different as the calculated F with 95% confidence interval is
much larger and the F critical value. Also the P value is less that our threshold level of 0.05.So
the spending patterns of tourists grouped in terms of their profession are significantly different.
We also tried to find out the cumulative effect of three variables such as fraction of foreign
tourists in the total number of hotel bookings in India, number of hotel rooms and penetration of
IT in percentage on tourist footfall. The result we obtained in multiple regression analysis is
given below.
Regression Statistics
Multiple R
0.935184
R Square
0.874569
Adjusted R
Square
0.686423
Standard Error
1712767
Observations
6
Coefficients
Intercept
X Variable
1
X Variable
2
X Variable
3
11053274
Standard
Error
t Stat
P-value
112.3738 103.4206
1.08657 0.390742
-2.02197 0.180546
Lower 95%
Upper
95%
Lower
95.0%
Upper 95.0%
30230357.11 52336906
-3E+07 52336905.85
332.6092231 557.3567 332.609 557.356745
0.083939258 0.623377 0.08394 0.623376561
1733772.606 625203.1 1733773 625203.0572
Compiling the results, the equation obtained from regression analysis is as follows,
Where
refers to number of approved hotel rooms in India,
refers to percentage of IT
penetration in India and
refers to percentage of foreign tourists in hotels.
With an adjusted R square value of 0.686423, it can be safely inferred that there exist some
effects of the above mentioned three factors on the total tourist footfall.
Findings:
From the analysis performed, we gathered that hospitality industry has a positive impact on
tourism sector. The total number of hotels and the quality of service do matter to attract more
number of tourist to Indian tourist destinations. The penetration of IT however does not follow
the pattern for which we tried to come up with some probable explanation.
The handicrafts industry in India is one of the major sectors in India which provides direct and
indirect employment to about 76 lakh persons as per data from Export Promotion Council for
Handicrafts (EPCH) in 2001-02 shows. It valued the total export of handicrafts from India in
2001-02 as Rs. 6769.5 crores. Moreover this sector is of keen interest as it requires relatively
low capital investment and draws a steady source of foreign exchange.
Thus a survey was done by the National Productivity Council (NPC) to find out how much the
foreign tourists spend in India and the main products purchased by the tourists. From this
survey it was found out that the total expenditure on handicrafts by all the foreign tourists has
been pegged at Rs. 2985.154 crores in 2001. This roughly calculates to about 44% of the total
estimated export value of handicraft items in India in 2001-02 comparing data of EPCH.
According to Tourist Statistics provided by Department of Tourism in 2001, India had earned
foreign exchange of Rs. 14344 crores from the tourism sector alone. Thus the foreign tourists
expenditures on handicrafts in India formed about 21% of their total spending in India.
Thus it can be understood from the data of Export promotion Council of Handicrafts that the
foreign tourism sector is highly influences the handicrafts industry of India.
Managerial Implications:
There are many factors that motivate tourism in India like the nature and landscapes, the
adventurous Himalayas, deserts in Rajasthan, beaches of Goa, lush green forests in Odisha
and Kerala. There are also factors like rich cultural heritage also attracts the tourists. The variety
in language, climate, traditions and religion has continually been a matter of curiosity for the
tourists. Also Indias handloom and handicraft products have been major attraction. Therefore
the foreign tourists generally purchase generously.
And if special attention is given to improving the condition of the tourist attraction points and
accessibility of these spots, it can work wonders to increase the revenue of tourism industry.
Conclusion:
Hereby we conclude our report stating that hospitality sector and handicraft sector have at least
some impact on the growth of Indian tourism sector. This is a sector that not only puts a brand
image of our country on the world map, but also generates revenue and creates employment. If
well taken care of, this has the potential to give a big push to Indian economy. Though the
impact of IT sector was not that evident in this report, the future of tourism industry sure will
benefit the IT industry and vice versa. Government initiatives, campaigns such as incredible
India bring in a lot of publicity to the tourist places, which in turn works for the maintenance of
the spot as well.
References
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