









13th highest contribution • India ranked 13th among 184 countries in terms of travel and tourism‟s total contribution to
to GDP GDP in 2013. It was 6.8 per cent for FY14

Contribution to GDP • In India, the sector‟s direct contribution to GDP is expected to grow 6.4 per cent per
above world average annum during 2014–24 vis-à-vis the world average of 4.2 per cent.

• The travel and tourism sector in India accounted for 7.7 per cent of total employment,
Creating higher generating 35.44 million jobs. The number is expected to rise by 1.9 per cent per annum to
employment 43.8 million jobs in 2024. On an average 78 jobs being created with every USD1 million
invested

• Travel and tourism‟s contribution to capital investment is projected to grow 6.5 per cent per
Higher investments annum during 2014–24, above the global average of 5.1 per cent
• USD18.13 billion in foreign exchange earnings in FY14

Increasing visitor • The contribution of visitor exports to total exports is estimated to increase 4.3 per cent per
exports annum during 2014–2024 compared to the world average of 4.0 per cent

Source: World Travel & Tourism Council‟s (WTTC‟s) Economic Impact 2014, 12 th Five Year Plan, Aranca Research
 2013 Robust demand
Growing demand Attractive opportunities 2022F
• Foreign tourist arrivals increased • India has a diverse portfolio of
Market at a CAGR of 7.2 per cent over niche tourism products – cruises, Market
size: 2005–13 adventure, medical, wellness, size:
• India registered 6.97 million sports, MICE, eco-tourism, film,
USD122.1 USD418.9
foreign tourist arrivals in 2013, rural and religious tourism
billion billion
registering an annual growth of 5.9 • India is expected to receive nearly
per cent over the previous year half a million medical tourists by
2015, implying an annual growth of
30 per cent

Advantage
India
Diverse attractions Policy support
• India offers geographical diversity, • The Visa on Arrival scheme was
attractive beaches, 30 World extended to 180 countries in 2014
Heritage Sites and 25 bio- • A five-year tax holiday has been
geographic zones offered for 2-,3-, and 4- star
• The country‟s big coastline is category hotels located around
dotted with a number of attractive UNESCO World Heritage sites
beaches (except Delhi and Mumbai)

Source: WTTC, Aranca Research

Notes: F stands for Forecasts, WTTC – World Travel and Tourism Council, Market size forecasts by WTTC,
UNESCO – United Nations Educational, Scientific and Cultural Organisation, MICE – Meetings, Incentives, Conferences, and Exhibitions
 2005 onwards

2000–05

1990–2000
• The government has
•
A national policy on undertaken various marketing
tourism was initiatives to attract tourists
announced in 2002, • In April 2008, the Ministry of
• Various states in India
Tourism opened its first tourist
Pre-1990 declared tourism as an focusing on developing
a robust infrastructure office in Beijing, marking its
industry
• Online travel portals first office in China and only its
• The government
and low-cost carrier 14th overseas
• The National stressed on private-
airlines gave a boost to • Domestic spending on tourism
Tourism Policy was public partnership in
domestic tourism accounted for over 80.7 per
announced in 1982 the sector
cent of total tourism revenues
• The government • Government policies in 2013
formulated a give a fillip to the hotel
• The number of foreign tourists
comprehensive plan industry
visiting India rose to 6.97
in 1988 to promote million in 2013 from 3.9 million
tourism in 2005

Source: WTTC, Ministry of Tourism, Aranca Research

 Accommodation
and catering Includes hotel and restaurant businesses

Transportation Comprises airline companies, cruise services, railways, car

rentals and more

Tourism and Constituents include historical monuments, beaches,

Attractions sanctuaries, mountains, and festivals, etc.
hospitality

A fragmented sector with a number of independent travel

Travel agents
agents and many online businesses

Tour operators Offer customised tours, including travel and accommodation,

and sightseeing

Source: Dun and Bradstreet‟s Report on Tourism in India

 • The aim is to develop interest in heritage and culture; and promote visits to village settings to
experience and live a relaxed and healthy lifestyle

Rural
tourism
• One of the biggest
contributor to tourism
Pilgrimage Adventure • A wide range of adventure
industry. India being
sports are covered under this
religious hub for different tourism tourism category with specialised
cultures attracts a large
packages
number of tourists every
year

• Vast variety of flora and Medical

fauna in various states is a tourism
major factor behind their Eco-tourism
growing popularity as tourist • Tourists seek specialised
destinations. medical treatments, mainly
ayurvedic, spa and other
Luxury Heritage therapies.
tourism tourism

• Tourists visit India for its cultural

• The luxury travel market is estimated to be around heritage in various cities
USD1.7 billion and projected to grow at an average
rate of 15–20 per cent over the next decade
Source: Dun and Bradstreet‟s Report on Tourism in India
Tourism in India accounts for 6.8 per cent of the GDP and is Direct contribution of tourism and hospitality to GDP
the third largest foreign exchange earner for the country (USD billion)

80
The tourism and hospitality sector‟s direct contribution to
71
GDP totalled USD37.3 billion in 2013 70

Over 2006–14, direct contribution is expected to register a 60

CAGR: 10%
CAGR of 10 per cent 50
37 38
The direct contribution of travel and tourism to GDP is 40
36
31 31
expected to grow 6.4 per cent per annum to USD70.6 billion 26
30 25
(2.1 per cent of GDP) by 2024 24
18
20

10
2006 2007 2008 2009 2010 2011 2012 2013 2014 2024E

Source: World Travel & Tourism Council‟s Economic Impact 2014,

Aranca Research
Notes: CAGR – Compound Annual Growth Rate,
E - Estimates, GDP stands for Gross Domestic Product,
The definition of direct, indirect and induced contribution is
specified in the Glossary on Slide 41
The sector‟s total contribution to GDP increased to Travel and tourism‟s total contribution to GDP
USD113.5 billion in 2013 from USD88.1 billion in 2007 and (USD billion)
is expected to reach USD115.6 billion in 2014
227
It is forecast to increase by 7 per cent per annum to
USD227 billion by 2024 (6.8 per cent of GDP)

Note: The definition of direct, indirect and induced

contribution is specified in the appendix

CAGR: 4%
116 113 116
103 105

88 82 89

2007 2008 2009 2010 2011 2012 2013 2014E 2024E

Source: World Travel & Tourism Council‟s Economic Impact 2014,

Aranca Research
Note: E – Estimate
Over 6.97 million foreign tourist arrivals were reported in Foreign tourists arriving in India (million)
2013

Foreign tourist arrivals increased at a CAGR of 7.2 per cent 7.0

during 2005–13 6.6
6.3
CAGR: 7.2% 5.8
By 2024, foreign tourist arrivals are expected to increase to
13.42 million, according to the World Tourism Organisation 5.3
5.1 5.2

4.4

3.9

2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: World Travel & Tourism Council‟s Economic Impact 2014,

Ministry of Tourism, Aranca Research
In 2013, foreign exchange earnings from tourism were Foreign exchange earnings from tourism in India
USD18.1 billion as compared to USD17.7 billion in 2012, (USD billion)
registering a growth of 2.2 per cent
18.1
17.7
Foreign exchange earnings increased at a CAGR of 11.7
per cent during 2005–13 16.6
CAGR: 11.7%
14.2

11.7 11.4
10.7

8.6
7.5

2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: Ministry of Tourism, Aranca Research

 Revenue
Company Segment Other major players
(USD millions)
229 255
197
Yatra.com, cleartrip.com,
Online booking travelocity.com, travelchacha.com,
FY12 FY13 FY14
ixigo.com

345
338
320
Hotel USD377.0 million ITC, Oberoi, Marriott

FY12 FY13 FY14

3.3
3.0 2.9

Airlines USD3.4 billion SpiceJet, Indigo, Indian Airlines

FY12** FY13** FY14**

68.9 75.2
56.0

Tour operators USD12.3 billion SOTC, Raj Travels

FY11 FY12 FY13*

Source: Respective company websites

Notes: ** Highlights revenues are in billion,
FY13* Includes data only for the month of January to September 2012
Domestic travel revenues aggregated USD79.7 billion in 2013 and are expected to reach USD156.7 billion by 2024

Foreign visitor revenues reached USD19 billion in 2013 and are projected to total USD28.34 billion by 2024

The number of domestic tourist visits in India during 2012 was 1,036.3 million as compared to 864.53 million in 2011,
recording a growth rate of 19.9 per cent

Domestic travellers contributed over 80.7 per cent to total tourism revenues in 2013

Share of tourists by expenditure (2013) Expected share of tourists by expenditure (2024)

19.3% 15.3%

Domestic Domestic
spending spending

Foreign Foreign
visitor visitor
spending spending

80.7% 84.7%

Source: World Travel & Tourism Council‟s Economic Impact 2014, Aranca Research
Revenues from leisure travel constitute over 78.9 per cent of total tourism revenues in India

Revenues from leisure travel totalled USD77.87 billion in 2013 and are estimated to reach USD153.72 billion by 2024

Business travel revenues stood at USD20.80 billion in 2013 and are projected to reach over USD41.4 billion by 2024

Segment-wise revenue share (2013) Expected segment-wise revenue share (2024)

21.1% 21.2%

Leisure Leisure
spending spending

Business Business
spending spending

78.9% 78.8%

Source: World Travel & Tourism Council‟s Economic Impact 2014, Aranca Research
 Revenues of India‟s hotel industry (USD billion) Various segments‟ revenue share in Indian hotels
(2009)

5.3

22.7%
Domestic consumer
CAGR: 13.3% 4.3

3.8
52.9% Domestic business
3.6
3.2

2.9 International
24.4%
2.5

2005 2006 2007 2008 2009 2010 2011

Source: Media Sources, Aranca Research Source: Datamonitor, Aranca Research

The Indian hotel industry recorded revenues of over
USD5.3 billion in 2011
Over 2005-11, the industry recorded a strong CAGR of 13.3
per cent
Domestic consumers are the biggest revenue generators in
the Indian hospitality sector, with a share of over 52 per cent
in total revenues
Foreign tourists contributed about 23 per cent to total
revenues
 • Over 70 per cent of air tickets are now being booked online in the country
Online travel operators • A number of online travel and tour operators, which provide better prices and options to
consumers, have emerged in India

• The widespread practice of ayurveda, yoga, siddha and naturopathy that is complemented by
Wellness tourism the nation‟s spiritual philosophy makes India a famous wellness destination.

• India attracted 163,000 cruise visitors in 2011

Cruises • The country‟s cruise market is estimated to be worth USD300 million

• Adventure tourism is one of the most popular segments of tourism industry. Owing to India‟s
enormous geo-physical diversity, it has progressed well over the years
Adventure • Part of India‟s tourism policy, almost every state has definite programme to identify and
promote Adventure tourism

• Promotion of Camping sites has been encouraged with adequate acknowledgement of its
adverse effects on environment
Camping sites • Besides providing unique rewarding experiences, responsible conduct of camping can be a
major source for both additional economic opportunities in remote areas as well as an
instrument of conservation

• India has been known as the seat of spiritualism and India‟s cosmopolitan nature is best
reflected in its pilgrim centers
Spiritual tourism
• India has been recognised as a destination for spiritual tourism for domestic and international
tourists
Source: Aranca Research
 Competitive Rivalry

• The Indian hospitality sector is highly fragmented with a large number

of small and unorganised players; this increases competition
• Customers‟ low switching cost and price sensitivity are increasing Threat of New
competition among players Entrants
(Moderate)

Threat of New Entrants Substitute Products

• Entry is easy as it is not capital • Threat of substitute products is

intensive, but a player needs to minimal as no substitutes are Bargaining Competitive Threat of
achieve economies of scale available in the market Power of Rivalry Substitute
and access to distribution Customers (High) Products
channel to compete (High) (Low)

Bargaining Power of Suppliers Bargaining Power of Customers

• There is the threat of forward
integration; for instance, the
airline starts selling directly to
customers
• The cost of switching suppliers
is low
Bargaining
• Low switching cost gives Power of
customer high bargaining power Suppliers
• Customers are price sensitive (Moderate)
and have information about the
services being provided

Source: Aranca Research

 • Players are using innovative marketing strategies to succeed in this sector. For example:
• The Goa Tourism Development Corporation (GTDC) is planning to organise
familiarisation trips or “fam” trips for international tour operators and media to
Marketing strategy showcase Goa as a tourist destination. It has also planned to promote Goa in
international markets through the print and electronic media
• Indian Railways is providing various benefits to foreign tourists such as priority
reservation and Indian rail pass for train travel

• Players are trying to ensure convenience for their customers by providing all services available
on a single portal. For example, makemytrip.com and a host of other websites provide a
One stop solution comprehensive basket of offerings which include outbound and inbound travel for leisure and
business trips, hotels and car booking, holiday packages within India or abroad, etc

• Players are opting for many channels to maximise sales and ensure convenience for their
customers. For example, Thomas Cook and Kuoni India launched their online portals to
Multiple channels compete with others. On the other hand, makemytrip.com is planning to go for the offline
channel to complement its existing portal and has already launched mobile apps for
maximising sales

• The launch of several branding and marketing initiatives by the Government of India such as
Branding
Incredible India! and Athiti Devo Bhava provides a focused impetus to growth

• Indian government has also released a fresh category of visa – the medical visa or M visa, to
M-visa encourage medical tourism in India

Source: Company websites, Aranca Research

Notes: CDMA – Code Division Multiple Access, GSM – Global System for Mobile Communication

• More than half of the Ministry of
Tourism‟s Plan budget is channelised for
funding the development of destinations,
circuits, mega projects as well as rural
tourism infrastructure projects
Infrastructure
• Tourism and hospitality attracted the
second highest FDI (USD3.2 billion) in
FY13*
• Domestic expenditure on tourism is
expected to rise due to the growing
Growing income of households
demand
• A number of niche offerings such as
medical tourism and eco tourism are
expected to create more demand
Growth Policy
drivers support
• In the hotel and tourism sector, 100 per
cent FDI was allowed through the
automatic route
Rising FDI
• Campaigns such as Incredible India and
Athithi Devo Bhava were launched to
harness the tourism industry‟s potential
Source: Datamonitor, Aranca Research
Note: * Data as per February 2013
Strong growth in per capita income in the country is driving Per capita income in India
the domestic tourism market
2,500 30%
A shift in demographics with rising young population 2,000
25%
(coupled with changing lifestyles) is leading to greater 20%
expenditure on leisure services 1,500 15%

1,000 10%
According to the IMF, nominal per capita income increased 5%
at a CAGR of 9.5 per cent over 2000–13 500
0%
0 -5%

2015F
2016F
2017F
2018F
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Per Capita income, USD, LHS Growth

Source: IMF, Aranca Research

Note: F - Forecast
 Domestic expenditure on tourism (USD billion)
157

• Domestic expenditure on tourism has grown significantly; the

market is expected to reach USD82 billion in 2014 and
CAGR: 6.4% USD157 billion in 2023, representing a CAGR of 6.4 per cent
80 82 during 2007–14E
77 76
69
58 56
53
Source: WTTC - Travel & Tourism Economic Impact 2014,
2007 2008 2009 2010 2011 2012 2013 2014E 2024E Aranca Research
Note: E – Estimate
 • In the 12th Five Year Plan, a budgetary support of USD2.8 billion has been approved for
the Ministry of Tourism for the development of tourism infrastructure projects, including
Five Year Plan
rural tourism and human resource development projects
• Under the plan, USD1.3 billion has been allocated for the Ministry of Culture

• The ministry set up a Hospitality Development and Promotion Board, which will monitor
Special boards
and facilitate hotel project clearances/approvals

• The ministry, in consultation with state/UT administrations, has proposed to employ tourist
Tourist police
police at prominent tourist spots

Allocation for North- • The government has planned an investment of 10.1 per cent of the allocations under the
Eastern regions Central Plan for the North-East region and Sikkim in the Union Budget for FY14

• An investment-linked deduction under Section 35 AD of the Income Tax Act is in place for
Tax incentive establishing new hotels in the 2-star category and above across India, thus permitting a
100 per cent deduction in respect of the whole or any expenditure of a capital nature

Source: World Travel & Tourism Council‟s Economic Impact 2013, 12 th Five Year Plan, Aranca Research
Capital investments in the tourism sector (USD billion) Collective government spending on tourism (USD billion)
3.8
65

CAGR: 16.3%
CAGR: 11.2%

36 33 36 2.1 2.0
33 33 2.0 2.0 1.9
29 1.7
23 1.6

13 1.0

2007 2008 2009 2010 2011 2012 2013 2014E 2024E 2007 2008 2009 2010 2011 2012 2013 2014E 2024E

Capital investment in the tourism and hospitality sector has
been rising consistently
Investments are expected to increase at a CAGR of 16.3
per cent to USD36 billion during 2007–24E
By 2024, investments are expected to increase to USD65
billion
The government‟s collective spending on the tourism and
hospitality sector is expected to reach USD2.0 billion in
2014
By the end of 2014, spending is projected to expand at a
CAGR of 11.2 per cent over a seven-year period
By 2024, the government‟s collective spending is expected
to increase to USD3.8 billion

Source: World Travel & Tourism Council‟s Economic Impact 2014, Aranca Research
Note: E – Estimates
The Visa on Arrival scheme has been popular among Growth in visa on arrival
tourists

20,294
In June 2014, the government approved 180 countries
under the Visa on Arrival scheme to attract additional
foreign tourists
16,084
CAGR: 45.8%
The scheme registered an average growth of Visa on Arrival
12,761
45.8 per cent over 2010–13

Indian government has also released a fresh category of

visa – the medical visa or M visa, to encourage medical
6,549
tourism in India
2010 2011 2012 2013

Source: Ministry of Tourism, Aranca Research

 Medical tourism Cruise tourism Rural tourism Ecotourism

• The presence of • Cruise shipping is one • The potential for the • India is often termed
world-class hospitals of the most dynamic development of rural as hotspot of bio-
and skilled medical and fastest growing tourism in India is diversity and this rich
professionals makes segments of the high as most of its natural heritage is
India a preferred global leisure industry population resides in unparallel in many
destination for rural areas ways. Such valuable
medical tourism • India, with its vast and resource base gives
beautiful coastline, • This can benefit the impetus for the
• India‟s earnings from virgin forests and local community practice of variety of
medical tourism could undisturbed islands, economically and alternate tourism
exceed USD3.9 billion can be a good socially, and facilitate forms and many of
in 2014 from USD1.9 destination for cruise interaction between which are already in
billion in 2011 tourists tourists and locals for existence. For
a mutually enriching example: The national
• Tour operators are experience parks, wildlife
teaming up with sanctuaries and
hospitals to tap this biosphere reserves
market

Source: Ministry of Tourism, BMI, Aranca Research

 Delhi – Attracted 11.5 per cent of
foreign tourists visiting India in 2013
Major attractions – Qutub Minar,
Red Fort, Humayun‟s Tomb, India
Gate, Jantar Mantar and Jama
Masjid
Maharashtra – Attracted 20.8 per cent
of foreign tourists visiting India in 2013
Major cities to visit – Amravati,
Kolhapur, Mumbai and Nashik
Major attractions – Ajanta and Ellora
Caves, Shirdi, Ashtavinayak and
Matheran
Uttar Pradesh – Attracted 10.3 per cent of foreign tourists
and 16.3 per cent of domestic tourists in 2013
Major cities to visit – Agra, Allahabad, Ayodhya,
Lucknow, Fatehpur, Meerut and Varanasi
Major attractions – Taj Mahal, Agra Fort, Fatehpur Sikri
and Sarnath
West Bengal – Attracted 6.2 per cent of
foreign tourists visiting India in 2013
Major attractions – Victoria Memorial,
Sunderbans, Cooch Behar Palace,
Darjeeling Himalayan Railway, Hazarduari
Palace, Adina Mosque, Shantiniketan,
Bishnupur Terracotta Temples,
Dakshineswar Kali Temple
Tamil Nadu – Second most visited state by foreign tourists;
attracted 20.0 per cent of total foreign tourists visiting India in 2013
Major cities to visit – Chennai, Coimbatore, Kanyakumari,
Madurai, Ooty, Rameswaram and Salem
Major attractions – Meenakshi Temple, Brihadeeswarar Temple,
Yelagiri Hills, Hogenakkal Falls and Vivekananda Memorial
Source: Aranca Research
 Forecasts of foreign tourists arriving in India Forecasts of foreign exchange earnings from
(million) tourism in India (USD million)

8.5 9.2
19,949

6.6 7.0

CAGR: 5% 18,988

18,100
17,740

2012 2013 2014F 2015F 2012 2013 2014F 2015F

Foreign tourist arrivals are expected to increase at a CAGR
of 16.1 per cent during 2013-15F
India registered 7.0 million foreign tourist arrivals in 2013,
registering an annual growth of 5.9 per cent over the
previous year
The number of foreign tourists arriving in India is anticipated
to be more than 9.2 million by 2015
Foreign exchange earnings from tourism are expected to
increase at a CAGR of 5.0 per cent during 2013–15F
The foreign exchange earnings from tourism during 2013
was USD18.1 billion, registering an annual growth of 2.2 per
cent over the previous year
Foreign exchange earnings are forecast to reach USD20
billion in 2015
Source: Ministry of Tourism, BMI, Aranca Research
Notes: F stands for Forecasts, CAGR – Compound Annual Growth Rate
The number of hotel beds in the country is expected to Capacity of hotels in India („000)
increase to 501,000 by 2016 from 269,000 in 2011
501
The number of hotel rooms in the country is expected to 443
increase to 220,000 by 2016 from 121,000 in 2011
392
339
The long term outlook for the Indian hospitality business
295
continues to be positive, both for the business and leisure 262
241
segments with the potential for economic growth increase in 210 220
197
disposable income and the burgeoning middle class 176
135 154
98 109 121

2009 2010 2011 2012F 2013F 2014F 2015F 2016F

Number of hotel rooms Number of hotel beds

Source: BMI, Aranca Research

Note: F – Forecast
 • Growth in low-cost airlines is expected to lower tourism costs and increase domestic
Low-cost airlines
spending on tourism

• The market is likely to become more competitive due to the entry of an increasing number
Increase in international
of international flight operators expected to offer improved services to tourists. JVs such as
flight operators Air Asia and Tata SIA are beginning services in India and can provide better services

• The industry will become more competitive as the number of international players
New airlines entering
operating in the country increase. Some new players that have entered the country are
the market Etihad and Vistara

Increasing number of • The Airports Authority of India aims to start operating 250 airports across the country by
airports 2020

• The government is expected to earmark USD12.4 billion in the 12th Five-Year Plan (2012–
Higher investments
17); of these, private investments are likely to total USD9.2 billion

• By 2020, passenger traffic at Indian airports is expected to rise to 450 million from 160
Higher passenger traffic
million currently

Source: World Travel & Tourism Council‟s Economic Impact 2013, 12 th Five Year Plan, Aranca Research
Incredible India is a marketing campaign launched by the Growth in foreign tourist arrivals pre and post
Government of India in 2002 to promote India as a tourist incredible India (million)
destination internationally
7.0 6.8
6.5 6.3 6.6
Foreign tourist arrivals increased at a CAGR of 9.7 per cent CAGR: 9.7%
6.0 5.8
during 2003-13 to 6.8 million by the end of 2013
5.5 5.3
5.1 5.2
5.0 4.5
India currently attracts 0.63 per cent of tourists from world
4.5
over; the government aims to increase it to 1 per cent 3.9
4.0 3.5
3.5
In 2012, India Tourism launched two new campaigns: Find 3.0 2.7
What You Seek, an international campaign; and Go 2.4 2.4 2.5 2.5 2.4 2.7
2.5
Beyond, a domestic campaign
2.0

1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Source: Gujarat's Ministry of Tourism,
Aranca Research
Gujarat is the 7th largest state, located in the Western part of Contribution of tourism to Gujarat's GDP
India, with the longest coastline of 1,600 km

10.2%
The government spent nearly USD13 million for the
„Khusbhoo Gujarat Ki‟ campaign, which featured Amitabh
Bachchan, brand ambassador of the state; the campaign 8.2%
was a huge success

The campaign led to an increase in the number of visitors to 5.1%

5.4 million in the last two years
3.5%
The government plans to focus on the state's 1,600 km
2.5% 2.8%
coastline to promote maritime, coastal and ecotourism
2002 2005 2010 2015E 2020E 2022E

Source: World Travel & Tourism Council‟s

Economic Impact 2013, Aranca Research
Note: E – Estimates
Kerala is on the Malabar coast in Southwest India Revenue generated from tourism in Kerala (USD billion)

In the early 1990s, the state was known as a single beach

3.7 3.5 3.8 3.9
destination
2.9 2.7 2.8
Kerala successfully marketed its serene backwaters, wildlife 2.0
1.7
sanctuaries, ayurvedic treatments and temple festivals 0.6 0.8 0.8 1.0
0.4 0.7 0.6 0.8
0.3
Revenue from tourism increased at a CAGR of over 11.0
per cent during 2005–13 2005 2006 2007 2008 2009 2010 2011 2012 2013

Foreign exchange earnings Total tourism revenues

The share of foreign tourists increased from 7.3 per cent in
2012 to 7.8 per cent in 2013 Number of tourists visiting Kerala annually (in million)

10.1 10.1
9.4
7.9 8.6
6.6 7.6
5.9 6.3

0.8 0.9
0.3 0.4 0.5 0.6 0.6 0.7 0.7

2005 2006 2007 2008 2009 2010 2011 2012 2013

Domestic Tourists Foreign Tourists

Source: Kerala‟s Ministry of Tourism, Aranca Research

Makemytrip.com Revenues (USD million)

The website was conceived and founded by Deep Kalra in 255

2000 229

CAGR: 37.2% 197

Makemytrip offers airline tickets, hotel bookings, domestic
and foreign packaged tours, bus tickets, corporate travel
services, visa assistance, foreign exchange and travel 125
insurance
69 84
The company‟s revenues totalled USD255.4 million in FY14
38

It has a market capitalisation of USD1.09* billion FY08 FY09 FY10 FY11 FY12 FY13 FY14

The company‟s revenues expanded at a CAGR of over 37.2 Source: www.makemytrip.com

per cent during FY08–14 Note: * - As of 5 June 2014
Indian Hotel Company Limited (IHCL) Revenues (USD million)

The company was incorporated in 1902 and launched the

first hotel in India, The Taj Mahal Palace & Tower, in 380
Mumbai in 1903
356
Taj Hotels Resorts and Palaces has 66 hotels in 42 345
locations across India and 16 hotels worldwide 337 338
327
320 320
IHCL operates in the luxury, premium, mid-market and
value market segments through various brands such as Taj,
Taj Exotica, Taj Safari, Vivanta, Gateway Hotel and Ginger

IHCL operates Taj Air, a luxury private jet service

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

The company operates Taj Sats Air Catering Ltd, the largest
airline catering service in South Asia Source: IHCL‟s website

IHCL‟s revenues stood at USD320 million in FY14

Federation of Hotel & Restaurant Associations of India (FHRAI)
B-82, 8th Floor, Himalaya House,
23, Kasturba Gandhi Marg,
New Delhi – 110001
Phone: 91-11- 40780780
Fax: 91-11- 40780777

Hotel Association of India (HAI)

B 212–214
Som Dutt Chamber-I,
Bhikaji Cama Place,
New Delhi – 110 066
Phone: 91-11-2617 1110/14
Fax: 91-11-2617 1115
Direct contribution: Spending on accommodation, transportation, attractions and entertainment

Indirect contribution: Travel and tourism investment spending, and government collective travel and tourism spending

Induced contribution: Spending of direct and indirect employees

GOI: Government of India

CAGR: Compound Annual Growth Rate

INR: Indian Rupee

USD: US Dollar

Wherever applicable, numbers have been rounded off to the nearest whole number
 Exchange rates (Fiscal Year) Exchange rates (Calendar Year)

Year INR equivalent of one USD Year INR equivalent of one USD

2004–05 44.81 2005 43.98

2006 45.18
2005–06 44.14
2007 41.34
2006–07 45.14
2008 43.62
2007–08 40.27
2009 48.42
2008–09 46.14
2010 45.72
2009–10 47.42
2011 46.85
2010–11 45.62
2012 53.46
2011–12 46.88
2013 58.44
2012–13 54.31
Q12014 61.58
2013–14 60.28
Q22014 59.74

Q32014 60.53

Average for the year

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