About Tourism Industries

India has tremendous potential to become a major global tourist destination and
Indian tourism industry is exploiting this potential to the hilt. Travel and tourism
industry is the second highest foreign exchange earner for India, and the
government has given travel & tourism organizations export house status.

The buoyancy in the Indian tourism industry can be attributed to several factors.
Firstly, the tremendous growth of Indian economy has resulted in more disposable
income in the hands of middle class, thereby prompting increasingly large number of
people to spend money on vacations abroad or at home. Secondly, India is a
booming IT hub and more and more people are coming to India on business trips.
Thirdly, aggressive advertising campaign "Incredible India" by Tourism Ministry has
played a major role in changing the image of India from that of the land of snake
charmers to a hot and happening place and has sparked renewed interest among
foreign travelers. 

Tourism industry also provides employment to millions of people in India both directly
and indirectly through its linkage with other sectors of the economy.

Travel & tourism industry in India is marked by considerable government presence.

Each state has a tourism corporation, which runs a chain of hotels/ rest houses and
operates package tours, while the central government runs the India Tourism
Development. . 

In the year 2002, the Government of India announced a New Tourism Policy to give
boost to the tourism sector. The policy is built around the 7-S Mantra of Swaagat
(welcome), Soochanaa (information), Suvidhaa (facilitation), Surakshaa (security),
Sahyog Sanrachnaa (infrastructure) and Safaai (cleanliness). 
(cooperation),
Some of the salient features of the Torism policy
are

 Automatic approval for Technology agreements in the hotel industry, subject

to the fulfillment of certain specified parameters.
 Concession rates on customs duty of 25% for goods that are required for
initial setting up, or for substantial expansion of hotels.
 50% of profits derived by hotels, travel agents and tour operators in foreign
exchange are exempt from income tax. The remaining profits are also exempt
if reinvested in a tourism related project.
 No approval required for foreign equity of up to 51 per cent in torism
project.NRI investment upto 100% allowed
 The policy proposes the inclusion of tourism in the concurrent list of the
Constitution to enable both the central and state governments to participate in
the development of the sector.

Apart from this, government has taken several other measures for the
promotion of tourism. A multi-pronged approach has been adopted, which includes
new mechanism for speedy implementation of tourism projects, development of
integrated tourism circuits and rural destinations, special capacity building in the
unorganized hospitality sector and new marketing strategy.
Latest way
India's Ministry of Tourism has projected the number of foreign tourists arrival in
India to rise 10 million by 2010. According to the estimates, India epitomizes
one of the most potential tourism markets in the world.

 In the last few years, it has expanded rapidly and due to the
unprecedented and unbound support from all levels of government,
upgraded income level and inauguration of various International sports
events (Cricket 20/20 and Commonwealth Games) the India Tourism
Industries will be surely fruitful and continue to grow at the high lavel in
the year to come.

 Commonwealth Games is the additional opportunity for the Travel

Industry to gain some additional business, by offering special tour
packages to the tourists.

 As per the reports, it is estimated that more than 3.5 million tourists
are going to reach India in 2010 to be a part of the eminent
Commonwealth Games, that are scheduled to be held in Delhi - the
capital city of India. It is the high time for the India's Tourism Industry,
as the foreign tourists will be heavily dependent upon them for the flight
bookings, hotel reservations, travel itineraries and visas .

 The growth of India Tourism market is also equally beneficial for the
several associated industries such as the aviation industry, medical
tourism industry and hotel industry. However year 2008, sees a
whopping rise in the arrival of eco tourists in the country

 Recently a new concept 'Rural Tourism' has been launched by the

government in India, which is equally doing very well.
About Indian Tourism
• As per the Travel and Tourism Competitiveness Report 2009 by the World
Economic Forum, India is ranked 11th in the Asia Pacific region and 62nd

•overall, moving up three places on the list of the world's attractive destinations.

•It is ranked the 14th best tourist destination for its natural resources and 24thfor its
cultural resources, with many World Heritage sites, both natural andcultural, rich
fauna, and strong creative industries in the country.

•India also bagged 37th rank for its air transport network. The India travel andtourism

industry ranked 5th in the long-term (10-year) growth and is expected tobe the

second largest employer in the world by 2019.

 •India has been ranked the “best country brand for value-for-money” in Brand
Index (CBI) survey conducted by Future Brand, a leading the Country global
brand consultancy.

 India also claimed the second place in CBI’s “best country brand for history”, as
well as appears among the top 5 in the best country brand for authenticity and
art & culture, and the fourth best new country for business.

•India made it to the list of "rising stars" or the countries that are likely to become
major tourist destinations in the next five years, led by the United ArabEmirates,
China, and Vietnam.
 Contribution to the economy

•According to the Travel & Tourism Competitiveness Report 2009brought out by the
World Economic Forum, the contribution of travel and tourism to gross domestic
product (GDP) is expected to be at 6.0 per cent (US$ 67.3 billion) in 2009 rising to
US$ 187.3billion by 2019.

•The report also states that real GDP growth for travel and tourism economy is
expected to be 0.2 per cent in 2009 and to an average7.7 per cent per annum over
the coming 10 years. Export earnings from international visitors and tourism goods
are expected to generate 6.0 per cent of total exports (almost US$ 16.9 billion)
in2009, growing (nominal terms) to US$ 51.4 billion in 2019.

•The travel and tourism sector which accounts for 6.4 per cent of total employment or 1
in every 15.6 jobs in 2009 is expected to generate 40,037,000 jobs i.e. 7.2 per cent
of total employment or 1in every 13.8 jobs by 2019. Real GDP growth for Travel &
Tourism economy is expected to be 0.2 per cent in 2009 and to average 7.7per cent
per annum over the coming 10 years.

Government Initiative

•The campaign ‘Visit India Year 2009’ was launched at the International Tourism
Exchange in Berlin,aimed to project India as an attractive destination for
holidaymakers. The government joined hands withleading airlines, hoteliers, holiday
resorts and tour operators, offering them a wide range of incentivesand bonuses
during the period between April and December, 2009.

 The airlines participating in the campaign, Air India, Jet Airways and Kingfisher
Airlines are offering a“companion free ticket” for every ticket purchased for
international and domestic flights. Connectingflights to the departing airports are
included in the final travel costs. The Indian Travel Agents’Association (IATO) is
offering holiday-makers a free sightseeing tour in a city of their choice.

•Euromonitor International's Travel And Tourism in India report states that the
Government of India increased spend on advertising campaigns (including for the
campaigns ‘Incredible India’ and ‘Ahithi Devo Bhava’ - Visitors are like God) to
reinforce the rich variety of tourism in India.

•The Ministry promoted India as a safe tourist destination and has undertaken
various measures, such asstepping up vigilance in key cities and at historically
important tourist sites. It also deployed increased manpower and resources for
improving security checks at key airports and railway stations.
Initiatives at State-level with involvement of Locals:
States are taking initiatives in teaming with locals to provide a flavor of their culture
and traditions some of initiatives are mentioned below

HIMACHAL PRADESH - The Himachal govt has introduced a scheme –

Himachal Pradesh
Home Stay Scheme 2008 under which tourists are given the opportunity see the
rural areas.

GUJARAT – Through the ‘Vibrant Gujarat’ programme plans to actively market

the tourism
sector.

MP – The govt of MP is keen to initiate the development of an artificial beach in

the state.
The concept is based on ‘Ocean Dome’ artificial beach in Japan.

KERALA -Kerala has introduced innovative tourism initiatives. Two of its villages,

Aranmula and Kumbalangi, are being promoted as tourist destinations in a big way
as part ofthe ‘Endogenous Tourism Project’ of United Nations Development
Programme and Govt of India.

RAJASTHAN -Rajasthan has a developed tourism infrastructure, with

close to 6,000 hotel rooms spread over more than 150 hotels.

AP – AP has about 18 projects lined up under various categories such

as temple circuit development and eco-tourism projects.

CULTURE, HERITAGE AND ETHNO :TOURISM – Chattisgarh, amongst

other states has identified and is developing ethnic villages. The private

sector is also being encouragement for proper maintenance.

ADVENTURE TOURISM – Adventure sports such as water sports,

trekking, rock-climbing, para-sailing and bungee-jumping are popular with the

younger travelers and working executives

ECO – TOURISM – India’s forest, national parks and wildlife

sanctuaries are major attraction for a whole lot of tourist from around

the world.

AVIAN TOURISM – Adding another dimension to the Kerala's

backwater and health tourism is the avian tourism to attract

birdwatchers from all over the world.

 Foreign Tourist Arrivals

•Estimates of foreign tourist arrivals (FTAs) and foreign exchangeearnings (FEE) are
important indicators of the tourism sector. FEEin US$ terms during the month of
November 2009 were US$ 1.2billion as compared to US$ 1 billion in November 2008
Steps taken by Government to Promote Tourism in
Country.

Airline tickets, tour package are all set to go cheaper with 2%

reduction in service tax

State-run oil companies have slashed Aviation Turbine Fuel (ATF)

prices by 7%, the 11th reduction since September last year.

Airport Charges to be cut for a limited period by 50%.

Removal of 8% excise duty on ATF.

Reduce the charges which airport operator charges from the oil

companies, leading to enhanced performance