TOURISM POLICIES AND ITS IMPACT ON INDIA

TRIMESTER - 2

METs INSTITUTE OF COMPUTER SCIENCE

TRIMESTER - II

SUBJECT: Managerial Economics

TOPIC: Tourism Policies and its Impact On India

TOURISM POLICIES AND ITS IMPACT ON INDIA

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TABLE OF CONTENTS

Sr. No.

Topic

Page No.

1.

Introduction On Tourism

2.

Tourism Policies Past and Present

3.

Other Service Industries related to Tourism Industry

10

4.

World Scenario and India`s Current Position

12

5.

Recent Trends in Tourism

13

6.

Impact of Tourism in India

16

7.

Challenges

28

8.

Conclusion

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INTRODUCTION

Tourism industry in India has the ability to reign as one of the most visited tourist addresses of the world as the demand is uprising by 10% annually. This discovery is made by the World Travel and Tourism Council or the WTTC.

Evolution of Tourist Destination can be classified in four stages, which can be explained as under:

Euphoria Area: In this stage the destination has few visitors and the local residents are very happy to know that the tourists are interested to visit their locality. It can also be noticed that the local public share a good informal relationship with the tourist visitors. Apathy: In this stage the number of tourist visiting the destination increases and the relationship between the local public and the tourist becomes more informal in nature. Here the tourists are considered as a source of income. Annoyance: The destination reaches a saturation point and development of attraction, facilities and services are occurring everywhere. This continuous over development annoys the local residents and they are now frustrated with the tourism industry. Antagonism: Any further development at the tourist destination produces negative impacts. The local residents are now angry at the tourists for bringing about a negative impact in their locality and thus they express their anger to the tourist.

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TOURISM POLICIES PAST AND PRESENT

The first significant policy initiatives were forged in the early 1980s. With the prospect of hosting the Asian Games of 1982, the Indian Government had to start thinking about accommodating, transporting and entertaining the large number of visitors attracted by the event. This awakened a serious public interest in tourism, which was enhanced by the fact that tourism was India's largest net earner of foreign currency. The public interest was translated into the Tourism Policy of 1982 which provided an action plan based on the development of so-called tourism circuits. A tourist circuit consists of a number of tourist sights which are geographically and/or thematically grouped together with the idea that the value of their sum is more than an adding up of the values of the parts.

In the 1980s, the growing public interest in tourism resulted in the recognition of tourism as an export industry (including the implied tax exemptions) and the creation of a special public tourism finance corporation (1987). These initiatives were thought to openly and explicitly invite private investors and entrepreneurs to participate in tourism development.

In 1997 the department of tourism published a (new) National Tourism Action Plan. Apart from identifying a few areas for 'integrated tourism development', along the lines of the tourism circuits, the aim of the plan was to achieve an overall growth and improvement of the tourism sector in India, by stepping up marketing, infrastructure building and human resource development.

In 2002, when the action plan was finally translated into a tourism policy, tourism policy officially became a joint central-state government concern. The new policy itself, however, was designed by the central government. To a large extent, it portrays the same old concept in a new way. It holds the kind of goals and expectations exemplary for the first policy. To start with,
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the policy document attempts to establish tourism's great contribution to national development and its role as an engine of growth. It suggests that tourism not only generates government revenue, foreign currency, but also provides an optimal use of India's scarce resources, sustainable development, high quality employment (especially to youngsters, women and disabled people), and finally, peace, understanding, national unity and stability (GOI, 2002: 8-9). The policy starts from the idea that tourism can be used as a development tool, e.g. that it can generate high quality, mass employment and prosperity among vulnerable groups in backward areas. In more practical terms, the policy aims at increasing the number of domestic and international tourists. The aforementioned tourism-as-a-development-tool largely concerns domestic tourism, which in this capacity is conceptually linked to 'sustainable' rural development. As far as international tourism is concerned the Indian Government mainly wants to target the 'high-yielding variety' of tourists.

During the first fifty years of independent India, the portion of international tourists visiting India has not been more than 0.4%. It is claimed to have risen to some 0.45% in 2004 (GOI 2004). According to the Indian Tour Operators Promotion Council (ITOPC), over the period 2001-2006, the number of foreign tourists in India has nearly doubled (to some 4.4 million). The opening of its markets in the early 1990s and the recent years of high economic growth have profoundly changed its surface. In the past India was naturally associated with slums and poverty. Nowadays it is often portrayed as a rapidly emerging economic superpower.

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Initiatives to Boost Tourism: Some of the recent initiatives taken by the Government to boost tourism include grant of export house status to the tourism sector and incentives for promoting private investment in the form of Income Tax exemptions, interest subsidy and reduced import duty. The hotel and tourism-related industry has been declared a high priority industry for foreign investment which entails automatic approval of direct investment up to 51 per cent of foreign equity and allowing 100 per cent non-resident Indian investment and simplifying rules regarding the grant of approval to travel agents, tour operators and tourist transport operators. The first-ever Indian Tourism Day was celebrated on January 25, 1998. The Year 1999 was celebrated as Explore India Millennium Year by presenting a spectacular tableau on the cultural heritage of India at the Republic Day Parade and organising India Tourism Expo in New Delhi and Khajuraho. Moreover, 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 with leading airlines, hoteliers, holiday resorts and tour operators, and offered them a wide range of incentives and bonuses during the period between April and December, 2009.

Kerala Tourism: The Kerala Tourism Development Corporation (KTDC) is a public sector undertaking that conducts and regulates the tourism activities of the Indian state of Kerala. The KTDC is headquartered at Thiruvanathapuram and has offices across all the districts of Kerala. The agency also operates hotels, resorts, and tourist rest houses in key locations in the state. Its official slogan is "Official host to God's own country." It is one of the most profitable ventures of the Kerala government. Kerala was a relatively unknown state among tourist circles until the early 1960s. The first initiative to popularize Kerala as a tourist destination was undertaken by Travancore's first prince: H.H. Col. Goda Varma Raja (husband of H.H. The Queen of Travancore) started Kerala Tours Limited to popularize key tourist locations in Travancore Kingdom. When Travancore merged with India, Kerala Tours Limited became a private entity under the Travancore royal family. For more than 20 years since Independence, Kerala trend to ignore tourism as a key
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industry, leaving KTL and other private players to lead the role. In the 1960s, KTL struck gold, by collaborating with Thomas Cook and started popularizing Kovalam in western countries which started the advent of hippie culture in Kovalam Beach. The strong inflow of tourists into Kovalam, started Kerala government to consider tourism as a key industry. Though it tried to nationalize Kerala Tours Limited, it soon fell into legal issues. This resulted in the government to think starting a new entity known as Kerala Tourism Development Corporation (KTDC) IN 1966. Started as department, KTDC became a separate commercial entity by the 1970s. Several premium guest houses of Kerala Government were identified and converted into hotel brands, making strong profits of organization.

Tourism in Goa: Variously known as "Rome of the East", "Tourist Paradise" and "Pearl of the Orient" the state of Goa is located on the western coast of India in the coastal belt known as Konkan.The magnificent scenic beauty and the architectural splendors of its temples, churches and old houses have made Goa a firm favorite with travelers around the world. But then, Goa is much more than just beaches and sea. It has a soul which goes deep into unique history, rich culture and some of the prettiest natural scenery that India has to offer. Goa is best known as a tourist paradise, both in India and abroad. Lavishly gifted by nature for its scenic beauty, virgin beaches girdling its 105-km long palm-fringed coast interspersed with enchanting coves, bays and estuaries, paddy fields, shady coconut, cashew and mango groves dotted with tiny picturesque villages, temples and churches renowned for worship and pilgrims, forts and monuments and above all, friendly and hospitable people, Goa presents an ideal tourism profile. Goa Tourism is so prominent that the number of tourists almost equals the number of state population.

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Goa attracts almost 12% of total foreign tourists arriving in India. In terms of direct charters, it is 75% of the total direct charter traffic in India. To give a big fillip to hospitality industry in the state, the Department of Tourism Goa has taken multi-pronged strategy involving both private and government organizations. Tourism in Gujarat India is developing at a fast pace for more reasons than one. Not only is the state known for its industries but also renowned for its rich cultural heritage and scenic splendor. The beautiful temples, historical monuments, secluded beaches and the rich flora and fauna has led to the growth of tourism in Gujarat. Gujarat tourism attracts good number of pilgrims and nature lovers from all parts of the country. With the objective of opening up, vistas to discerning travelers who would love to spend their vacations in Gujarat, Gujarat Tourism Development Corporation has taken initiative to develop good infrastructure near the Gujarat travel destinations and open Gujarat Tourism information offices all across the country. These information centers provide information about Gujarat tourism. The vibrant website of Gujarat tourism is a virtual Gujarat tourism guide, which gives out Gujarat travel details and offers exciting Gujarat tours, excursions and family vacation packages. The ideal time to visit Gujarat is from October to February when the state enjoys a warm and pleasant weather Tourism in Orissa Orissa, the land of quintessential charm is one of the most preferred tourist destinations in India. Tourism in Orissa is a major industry that has shown phenomenal growth in the past few years. Orissa Tourism department has recognized the importance of tourism promotion in economic growth, and has accordingly, undertaken several measures. These include development of infrastructure, and preservation and restoration of historical monuments, promotion of various tourist spots, and development of entertainment leisure centers in the from of amusement Parks, theme Parks, multiplexes; water sports complexes; golf courses, bowling alleys and other sports related facilities. The new colorful logo of Orrisa tourism positions Orrisa as a vibrant tourist destination which is scenic, sublime and, serene. Various Fairs and festivals such as 'Ekamra

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Utsav' at Bhubneshwar, 'Sreekhetra Utsav' at Puri, and 'Konark Festival' at Konark are organized by Orissa tourism to exhibit tourism and cultural potential of the State.

Domestic Tourist Visit (in Lakhs)

1800 1600 1400 1200 1000 800 600 400 200 0 327.02 157.85 159.1 231.06 306.28 255.59 219.35 205.29 2008 2009 2010 1574.9 1348.32 1157.56

Foreign Tourist Visit (in Lakhs)

60 50 40 30 20 10 0 2008 2009 2010

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OTHER SERVICE INDUSTRIES RELATED TO TOURISM INDUSTRY

1. Accommodation Industry:

Hotels Resorts Motels Apartment Hotels Heritage Hotels

2. Food Industry :

Restaurants Wayside Facilities on the State Highways.

3. Other Tourism - Related Service :

Amusement Parks and Water Sports Handicraft Village Complexes Fairs and Festivals. Camps and Facilities Encouraging Adventure Train Travel Projects Sea/River Cruise Projects Sound and Light Shows Museums Natural Parks/Zoos Safari Projects Sports/Health Facilities Complexes Training Schools for the managerial expertise for Hospitality Industry. Golf Courses.
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4. Service Oriented Industries:

Travel Agency Tour operation Transport Operation Linkage with the International Hotel Chains (Franchise) Human Resources Development (HRD) for Tourism Industry and necessary training facilities.

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WORLD SCENARIO & INDIA`S CURRENT POSITION

In recent years tourism has emerged as a major economic activity that is employment oriented and earns foreign exchange. Its share in the worlds GDP in 1994-95 was 10% which is more than the world military budgets put together. In global terms, the investment in tourism industry and travel trade accounts for 7% of the total capital investment. Today 21.2 crore people around the globe are employed in travel trade and tourism. In future, this industry is likely to see unprecedented growth. According to the World Tourism Council at Bruseels, the revenues from travel and tourism in Asia Pacific region will grow at the rate of 7.8% annually over the next decade. Amongst the economic sectors, the tourism sector is highly labor intensive. A survey by the Government of India notes that the rate of employment generation (direct and indirect) in tourism is 52 persons employed per Rs.10 lakh investment (based on 1992-93 Consumer Price Index). This is much higher than the rates of employment generation in most other economic sectors. Indias tourism industry has also recorded phenomenal growth. The rate of international arrivals in India in recent years has been to the tune of about 19 lakh arrivals per year. The unprecedented growth in tourism in India has made it the third largest foreign exchange earner after gem and jewellery and ready-made garments. This is not surprising since India possesses a whole range of attractive normally sought by tourists and which includes natural attractions like Iandscapes, scenic beauty, mountains, wildlife, beaches, kajor rivers and manmade attractions such as monuments, forts, palaces and havelis. However, in global terms, in spite of such attractions, tourist arrivals in India are a mere 0.30% of the world arrivals. Receipts are similarly low, just a 0.50% of the world receipts. We are still quite far from the target of 50 lakh tourist arrivals per year.

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RECENT TRENDS IN TOURISM IN INDIA

Recent Trends In Tourism

Religious And Archaeological tourism Heritage Wildlife Coastal and Beach Based on Traditional Art and Craft and Cultural Activities Corporate Adventure

Religious (pilgrimage) and Archaeological Tourism : Gujarat has a preponderance of pilgrimage centers as in some other states. Somnath and Dwarka - some of the well known and revered sites of ancient Hindu temples are situated in the State. The temple architecture has reached heights of excellence in Jain temples at Shetrunji, Girnar and Taranga. The temple of Ambaji situated in Aravalli range in North Gujarat is an important religious centre for devotees in the country. Dakor, Pavagadh, Bahucharaji, Shamlaji, Narayan Sarovar, Sudamas Porbandar, Kabirvad Shuklatirth, Kayavarohan, Bhadrakali Temple Ahmedabad and Tankara - Maharshi Dayanand Saraswatis birth place are also important pilgrimage destinations which have kept alive the religious sentiments of the people. Lakhs of pilgrims visit these places every year.
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These places are visited not only by the devotees from all over the country but also by nonresident Indians and travellers especially from the eastern part of the world. Necessary accommodation facilities and related services will be created on these sites. For ensuring orderly and planned development of pilgrimage centres, the State Government has constituted Pavitra Dham Vikas Board chaired by the Chief Minister. The Board will prepare and implement plans to provide necessary facilities to the devotees and also ensure conservation of cultural atmosphere consistent with sentiments of visiting devotees. There are a number of places of archaeological importance is such as the temple-town of Palitana, Modhera with its Sun temple, historical Ranki Vav at Patan with relics of an ancient capital, the Girnar Hills with Hindu and Jain temples, Junagadh with a historical fort, Dabhoi, Champaner, Pavagadh, Shaking Minarets, Gandhi Ashram, Siddi Sayed Jali etc. These can be developed by providing necessary infrastructural facilities and marketed as tourist destinations to attract tourists. Heritage Tourism: A large number of old palaces, havelis, darbargadhs exist in the State. These historical buildings can be converted into hotels, restaurants or museums by providing suitable incentives to owners. Wildlife and Pilgrimage Tourism circuits can be linked to heritage properties exploiting the geographical congruity. Development of this sub-sector will not only attract foreign tourists but also provide encouragement and support to local art and craft. Wildlife Tourism: There is substantial scope for development of tourism based on wildlife in the State. Gir Forest of Gujarat is the last stronghold of Asiatic Lions. The Bear Sanctuary at Ratan Mahal (Dist.Panchmahal, Black Buch Sanctuary at Velavadar (Dist.Bhavnagar), Bird Sanctuary at Nalsarovar (Dist.Ahmedabad), Wild Ass Sanctuary at Kutch etc. can be effectively developed into tourist destinations by providing infrastructural facilities. In order to facilitate visitors to these areas, coordination among various agencies will be established.

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TOURISM POLICIES AND ITS IMPACT ON INDIA Coastal and Beach Tourism:

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The Gujarat State has the longest coastline among Maritime States of the country. Identified stretches of coastline can be developed into beaches from tourism point of view. It will be the endeavour of the State to develop beach potential by providing such facilities as may attract foreign tourists. Tourism based on Traditional Art and Craft and Cultural Activities: Banni in Kutch, Khambhat, Junagadh etc. are known for their craftsmanship. Similarly, there are hundreds of fairs that are celebrated through out the year with enthusiasm. Tarnetar Fair in Surendranagar District, Chitra Vichitra Fair at Poshina (Sabarkantha District), Kanwat Fair at Chhota Udepur (Panchmahals District), Dang Darbar in Dang. Bhavnath Fair of Junagadh, Vautha Fair of Ahmedabad etc. have immense tourism value. By developing accommodation, transport and other facilities, these fairs and festivals will be promoted nationally and internationally. The places of importance from art and craft point of view will be included in the tourist circuits and necessary facilities provided to tourists. Corporate Tourism: Private sector will be encouraged to build the state of the art convention centres, seminar halls etc. so as to attract corporate events like seminar, workshops and annual general meetings. Participants in such events generally have high purchasing power and provide a boost to local economy. Adventure Tourism: This is also a territory with possibility of development as a sub-sector which will be examined and new activities like Camel Safari in Kutch, Horse-riding in Aravalli hill ranges, Parachuting in Saputara, Trekking in Dang, Pavagadh, Palitana etc. will be promoted. Such activities will create large scale employment opportunities for guides, coolies, traders for hire of tents and equipments etc. and will also encourage paying guest accommodation in such areas. Private entrepreneurs and institutions will be encouraged to develop such facilities.
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IMPACT OF TOURISM ON INDIA

A] ECONOMIC IMPACT Tourism industry in India has several positive and negative impacts on the economy and society. These impacts are highlighted below.

POSITIVE IMPACTS

Generating Income and Employment: Tourism in India has emerged as an instrument of income and employment generation, poverty alleviation and sustainable human development. It contributes 6.23% to the national GDP and 8.78% of the total employment in India. Almost 20 million people are now working in the Indias tourism industry. Tourism creates many jobs such asDirect Employment: Directly involved in tourism eg. Hotel, travel agency Indirect Employment: Jobs in the tourism supply sector eg catering company providing food to an airline Money created in local economy at a destination through Wages and salaries (locals employed in local area), Profits (local businesses benefitting from tourists spending), Rent (Leasing accommodation to tourists),Tax (VAT, local or national tax)

Balance of payments: The difference between the amount of money leaving a country and the amount of money coming into the same country. Tourism can help minimise BOP. Tourism brings currency into country. It benefits the host country. Particularly ones that have tourists from the high value areas such as UK,US.
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Source of Foreign Exchange Earnings: Tourism is an important source of foreign exchange earnings in India. This has favourable impact on the balance of payment of the country. The tourism industry in India generated about US$100 billion in 2008 and that is expected to increase to US$275.5 billion by 2018 at a 9.4% annual growth rate.

Foreign Exchange Earning in US $

FEE in US $
16000 14000 12000 10000 8000 6000 4000 2000 0 2006 2007 2008 2009 2010 8634 FEE in US $ 10729 11832 11394 14193

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Foreign Exchange Earning in Rs. Crore

FEE in Rs (Crore)
70000 64889 60000 54960 50000 40000 30000 20000 10000 0 2006 2007 2008 2009 2010 39025 44360 FEE in Rs (Crore) 51294

Foreign Exchange Earning (Month Wise in Rupees - Cr)

8000 7000 6000 5000 4000 3000 2000 1000 0 2009 2010

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4. Preservation of National Heritage and Environment: Tourism helps preserve several places which are of historical importance by declaring them as heritage sites. For instance, the Taj Mahal, the Qutab Minar, Ajanta and Ellora temples, etc, would have been decayed and destroyed had it not been for the efforts taken by Tourism Department to preserve them. Likewise, tourism also helps in conserving the natural habitats of many endangered species.

5. Developing Infrastructure: Tourism tends to encourage the development of multiple-use infrastructure that benefits the host community, including various means of transports, health care facilities, and sports centers, in addition to the hotels and high-end restaurants that cater to foreign visitors. The development of infrastructure has in turn induced the development of other directly productive activities.

6. Promoting Peace and Stability: Honey and Gilpin (2009) suggests that the tourism industry can also help promote peace and stability in developing country like India by providing jobs, generating income, diversifying the economy, protecting the environment, and promoting crosscultural awareness. However, key challenges like adoption of regulatory frameworks, mechanisms to reduce crime and corruption, etc, must be addressed if peace-enhancing benefits from this industry are to be realized. Hence these are also called as multiplier effect that is tourist expenditure will inject additional cash flow into the regional economy and increase the regional income.

NEGATIVE IMPACTS 1. Undesirable Social and Cultural Change: Tourism sometimes led to the destruction of the social fabric of a community. The more tourists coming into a place, the more the perceived risk of that place losing its identity. A good example is Goa. From the late 60's to the early 80's when the Hippy culture was at its height, Goa was a haven for such hippies. Here they came in
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thousands and changed the whole culture of the state leading to a rise in the use of drugs, prostitution and human trafficking. This had a ripple effect on the country.

2. Increase Tension and Hostility: Tourism can increase tension, hostility, and suspicion between the tourists and the local communities when there is no respect and understanding for each others culture and way of life. This may further lead to violence and other crimes committed against the tourists. The recent crime committed against Russian tourist in Goa is a case in point.

3. Creating a Sense of Antipathy: Tourism brought little benefit to the local community. In most all-inclusive package tours more than 80% of travelers fees go to the airlines, hotels and other international companies, not to local businessmen and workers. Moreover, large hotel chain restaurants often import food to satisfy foreign visitors and rarely employ local staff for senior management positions, preventing local farmers and workers from reaping the benefit of their presence. This has often created a sense of antipathy towards the tourists and the government.

4. Adverse Effects on Environment and Ecology: One of the most important adverse effects of tourism on the environment is increased pressure on the carrying capacity of the ecosystem in each tourist locality. Increased transport and construction activities led to large scale deforestation and destabilisation of natural landforms, while increased tourist flow led to increase in solid waste dumping as well as depletion of water and fuel resources. Flow of tourists to ecologically sensitive areas resulted in destruction of rare and endangered species due to trampling, killing, disturbance of breeding habitats. Noise pollution from vehicles and public address systems, water pollution, vehicular emissions, untreated sewage, etc. also have direct effects on bio-diversity, ambient environment and general profile of tourist spots.

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5. Leakages: Money spent on goods and services outside the local economy. Money saved in Banks. Investments from MNCs means that some money earned by that organisation will leave the local economy eg. Headquarters in a different destination. Importing goods means another economy is benefitting from spending.

6. Opportunity Cost: Developing tourism at the expense of the other activities or areas of investment. Public money invested in tourism that is not invested elsewhere. eg. local infrastructure at another location.

7. Inflation: Increase in demand leads to increase in inflation. Locals may not be able to afford to love in a particular area, local business may suffer.

B] ENVIROMENTAL IMPACT The tourism industry in India can have several positive and negative impacts on the environment which are discuss below.

POSITIVE IMPACTS

1. Direct Financial Contributions Tourism can contribute directly to the conservation of sensitive areas and habitat. Revenue from park-entrance fees and similar sources can be allocated specifically to pay for the protection and management of environmentally sensitive areas. Special fees for park operations or conservation activities can be collected from tourists or tour operators.

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2. Contributions to Government Revenues The Indian government through the tourism department also collect money in more far-reaching and indirect ways that are not linked to specific parks or conservation areas. User fees, income taxes, taxes on sales or rental of recreation equipment, and license fees for activities such as rafting and fishing can provide governments with the funds needed to manage natural resources. Such funds can be used for overall conservation programs and activities, such as park ranger salaries and park maintenance.

3. Improved Environmental Management and Planning Sound environmental management of tourism facilities and especially hotels can increase the benefits to natural environment. By planning early for tourism development, damaging and expensive mistakes can be prevented, avoiding the gradual deterioration of environmental assets significant to tourism. The development of tourism has moved the Indian government towards this direction leading to improved environmental management.

4. Raising Environmental Awareness Tourism has the potential to increase public appreciation of the environment and to spread awareness of environmental problems when it brings people into closer contact with nature and the environment. This confrontation heightens awareness of the value of nature among the community and lead to environmentally conscious behaviour and activities to preserve the environment.

6. Protection and Preservation of Environment Tourism can significantly contribute to environmental protection, conservation and restoration of biological diversity and sustainable use of natural resources. Because of their attractiveness,
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pristine sites and natural areas are identified as valuable and the need to keep the attraction alive can lead to creation of national parks and wildlife parks. In India, new laws and regulations have been enacted to preserve the forest and to protect native species. The coral reefs around the coastal areas and the marine life that depend on them for survival are also protected.

NEGATIVE IMPACTS

1. Depletion of Natural Resources: Tourism development can put pressure on natural resources when it increases consumption in areas where resources are already scarce. (i) Water resources: Water, especially fresh water, is one of the most critical natural resources. The tourism industry generally overuses water resources for hotels, swimming pools, golf courses and personal use of water by tourists. This can result in water shortages and degradation of water supplies, as well as generating a greater volume of waste water. In dryer regions like Rajasthan, the issue of water scarcity is of particular concern. (ii) Local resources: Tourism can create great pressure on local resources like energy, food, and other raw materials that may already be in short supply. Greater extraction and transport of these resources exacerbates the physical impacts associated with their exploitation. Because of the seasonal character of the industry, many destinations have ten times more inhabitants in the high season as in the low season. A high demand is placed upon these resources to meet the high expectations tourists often have (proper heating, hot water, etc.). (iii) Land degradation: Important land resources include minerals, fossil fuels, fertile soil, forests, wetland and wildlife. Increased construction of tourism and recreational facilities has increased the pressure on these resources and on scenic landscapes. Direct impact on natural resources, both renewable and non renewable, in the provision of tourist facilities is caused by

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the use of land for accommodation and other infrastructure provision, and the use of building materials Forests often suffer negative impacts of tourism in the form of deforestation caused by fuel wood collection and land clearing e.g. the trekking in the Himalayan region, Sikkim and Assam.

2. Pollution Tourism can cause the same forms of pollution as any other industry: air emissions, noise, solid waste and littering, releases of sewage, oil and chemicals, even architectural/visual pollution (i) Air and Noise Pollution: Transport by air, road, and rail is continuously increasing in response to the rising number of tourist activities in India. Transport emissions and emissions from energy production and use are linked to acid rain, global warming and photochemical pollution. Air pollution from tourist transportation has impacts on the global level, especially from carbon dioxide (CO2) emissions related to transportation energy use. And it can contribute to severe local air pollution. Some of these impacts are quite specific to tourist activities where the sites are in remote areas like Ajanta and Ellora temples. For example, tour buses often leave their motors running for hours while the tourists go out for an excursion because they want to return to a comfortably air-conditioned bus. Noise pollution from airplanes, cars, and buses, as well as recreational vehicles is an evergrowing problem of modern life. In addition to causing annoyance, stress, and even hearing loss for humans, it causes distress to wildlife, especially in sensitive areas. (ii) Solid waste and littering: In areas with high concentrations of tourist activities and appealing natural attractions, waste disposal is a serious problem and improper disposal can be a major despoiler of the natural environment - rivers, scenic areas, and roadsides. In mountain areas of the Himalayas and Darjeeling, trekking tourists generate a great deal of waste. Tourists on expedition leave behind their garbage, oxygen cylinders and even camping equipment. Such practices degrade the environment particularly in remote areas because they have few garbage collection or disposal facilities.
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(iii) Sewage: Construction of hotels, recreation and other facilities often leads to increased sewage pollution. Wastewater has polluted seas and lakes surrounding tourist attractions, damaging the flora and fauna. Sewage runoff causes serious damage to coral reefs because it stimulates the growth of algae, which cover the filter-feeding corals, hindering their ability to survive. Changes in salinity and siltation can have wide-ranging impacts on coastal environments. And sewage pollution can threaten the health of humans and animals. Examples of such pollution can be seen in the coastal states of Goa, Kerela, Maharashtra, Tamil Nadu, etc.

3. Destruction and Alteration of Ecosystem An ecosystem is a geographic area including all the living organisms (people, plants, animals, and micro-organisms), their physical surroundings (such as soil, water, and air), and the natural cycles that sustain them. Attractive landscape sites, such as sandy beaches in Goa, Maharashtra, Kerela, Tamil Nadu; lakes, riversides, and mountain tops and slopes, are often transitional zones, characterized by species-rich ecosystems. The threats to and pressures on these ecosystems are often severe because such places are very attractive to both tourists and developers. Examples may be cited from Krushedei Island near Rameswaram. What was once called paradise for marine biologists has been abandoned due to massive destruction of coral and other marine life. Another area of concern which emerged at Jaisalmer is regarding the deterioration of the desert ecology due to increased tourist activities in the desert. Moreover, habitat can be degraded by tourism leisure activities. For example, wildlife viewing can bring about stress for the animals and alter their natural behaviour when tourists come too close. Safaris and wildlife watching activities have a degrading effect on habitat as they often are accompanied by the noise and commotion created by tourists

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C] SOCIO CULTURAL

Tourism can have a positive and negative effect on the locals and their culture at a destination. It is important for socio-cultural impacts to be recognised as very important to tourist development.

Positive Socio-Cultural Impacts Education and training Provides opportunity for locals to learn new skills and qualifications. Skills and qualifications are essential in tourism industry. Staff training and development within organizations.

Enhance the quality of life Positive economic impacts of Tourism effect the quality of life locals will experience. Increase in tourist spending in tourist destination leads to an increase in disposable income for locals. Public sector investment in an area can improve local infrastructure(roads, facilities)

Pride Increase in local pride as more tourists will visit a destination and increase in investment into local areas. Pride in local traditions, customs, culture, food, craft, and ceremonies.etc

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Negative Socio-Cultural Impacts

Commodification It refers to turning a product or service into something different in order to please the tourist. Performance and ceremonies are commodified, that is made more attractive and dramatic. But then this is not representing the true culture of the locals.

Crime Where there are more tourists, crime rates are higher. Tourists are easy targets for thieves. Tourists carry a lot of valuables when travelling. Tourists may also become involved in illegal experiences (prostitution and drugs)

Demonstration Effect Locals observe tourist and try to copy them. This can be in terms of behaviour, culture, clothes and food. Eg.westernisation culture.

Displacement Development of tourism areas can lead to an area becoming too expensive for locals to continue living there. Land needed for large constructions can also move local inhabitants.

Exploitation Employment opportunities may seem exciting to begin with but may become a negative socio-cultural impact. Some companies may exploit local populations for their own benefits through child labour, forced labour, cheap labour.

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CHALLENGES

Lack of proper infrastructure Infrastructure needs for the travel and tourism industry range from physical infrastructure such as ports of entry to modes of transport to urban infrastructure such as access roads, electricity, water supply, sewerage and telecommunication. The sectors related to the travel and tourism industry include airlines, surface transport, accommodation (hotels), and infrastructure and facilitation systems, among others. Access and connectivity To harness Indias tourism potential, several efforts are being taken for opening new destinations and exploring niche segments. However, infrastructure facilities such as air, rail, road connectivity, and hospitality services at these destinations and the connecting cities are inadequate. This remains a major hurdle for development of tourism. Roadways form a vital network in the tourist industry with almost 70% tourists in India travelling by road. Moreover, many tourist circuits depend on roads. Despite numerous efforts to improve road infrastructure, connectivity remains a major problem. There is a greater need for strengthened road and rail network, development of more expressways, and tourist-specific routes to improve connectivity to various locations across different regions. Aviation infrastructure is also critical since it is a major mode of entry for inbound tourism. Passenger traffic is expected to increase in the coming years; however infrastructure facilities at airports are cause for concern. Expansion and development of airports at major gateway cities is underway to cater to the increasing passenger traffic. However, in addition, airport facilities at important secondary cities and tourist destinations also need to be improved to be able to handle greater passenger traffic.

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Amenities Amenities available at various tourist locations and en route need to be improved. These include basic amenities such as drinking water, well maintained and clean waiting rooms and toilets, first aid and wayside amenities (to meet the requirement of the tourists travelling to tourist destinations) such as lounge, cafeteria, and parking facilities, among others. India scores poorly in terms of availability of these infrastructure facilities. Inadequate infrastructure facilities affect inbound tourism and also could lead to an increase in the outflow of domestic tourists from India to other competitive neighbouring countries. Hence, for the industry to register healthy growth, issues concerning all the related sectors need to be addressed. Human resource Availability of skilled manpower is a major challenge faced by the travel and tourism industry, one of the largest employment generators in the country. To sustain growth in the travel and tourism industry, trained manpower/ workforce is required at every level managerial, supervisory, skilled or semi-skilled. Challenges faced at each level are different. At mid and senior management levels, the industry faces talent crunch and at the front-line staff level, although human resources are adequate, a boom in other service industries such as banking, retail, airline and BPO have resulted in shortage of manpower at this level for the travel and tourism industry. Thus, we have a demand-supply mismatch with respect to manpower in the travel & tourism and hospitality sector in India. A study conducted by Ministry of Tourism suggests that existing supply of human resources do not cater to even 40% of the demand. Thus, the industry has no alternative but to fill the void with untrained resources. Such a high proportion of untrained manpower would adversely affect quality of services offered to the tourists. Attrition, shortage of tourism training infrastructure, qualified trainers, and lack of proper strategies and policies for human resource development also affect the industry. The industry needs to address these problems at the earliest.

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Service level In addition to tour operators and hotel staff, tourists interact with persons from different backgrounds, occupations and experience. Such people include staff at bus/railway station, immigration staff at airports, taxi/coach operators, ticketing/ travel agencies, small hotels, dhabas/roadside eateries, staff at heritage sites, and tour guides, among others. The degree of service offered by these various stakeholders has a significant impact on determining the tourists overall experience of India as a tourist destination. The government has taken initiatives to promote responsible tourism by sensitising key stakeholders of the tourism industry through training and orientation, to develop a sense of responsibility towards tourists and inspire confidence of foreign tourists in India as a preferred destination. One such major initiative is the Atithi Devo Bhava campaign. More such efforts are required to improve the degree of service across various operators. Marketing and promotion Marketing and promotion of India as a major tourist destination is critical for the industry to achieve its potential. Lack of adequate budgetary support for promotion and marketing, compared with competing tourist destinations, is a major reason for India lagging behind as a tourist destination. Marketing under the Incredible India campaign helped place India as a good tourist destination on the global tourism map. Indian tourism products are promoted primarily by the Ministry of Tourism with the involvement of state governments through the State Tourism Development Corporations. Newer tourism concepts, which include cruise tourism, adventure tourism, agri tourism or rural tourism, are emerging in India and these require support to develop and flourish. Hence, greater marketing push for these different products is required. To remain competitive in the fiercely competitive field, India needs to change its traditional marketing approach to a more competitive and modern approach. There is a need to develop a unique market position and the brand positioning statement should capture the essence of the countrys tourism products: i.e., they should be able to convey an image of the product to a potential customer.

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Taxation Travel and tourism in India is a high-taxed industry, which makes India expensive as a tourist destination. This is affecting the growth of the industry in India and India is losing out to other low-cost destinations. Inbound tourism is the one most affected. Various taxes are levied across the entire industry right from tour operators, transporters, airline industry to hotels and these include service tax, luxury tax, tax on transportation, tax on aviation turbine fuel (airline industry), and various taxes on transportation. In addition, these tax rates tend to vary across different states in the country. Security Security has been a major problem as well for growth of tourism for a number of years. Terrorist attacks or political unrest in different parts of the country have adversely affected sentiments of foreign tourists. Terror attacks at Mumbai in November 2008 dealt a strong blow to tourism in the country. The terror attacks raised concerns of safety. In addition, insurgency in different parts of the country also mars Indias image as a safe destination. Following the terror attacks in Mumbai, security at tourist spots, airports and hotels has been beefed up to regain confidence of tourists. However, the government needs to take a proactive approach in addressing these issues and in averting the potential impact on the industry. Cyber crime is another major challenge the travel industry faces. Use of Internet in the travel and tourism industry has increased rapidly in recent years and has emerged as one of major segments for online spends. However, some of the biggest frauds have been detected in this segment and the issue of online security has assumed significant importance. While the online travel industry has registered robust growth, major concerns relating to security of online transactions persist. The industry needs to take measures to make the process of online bookings more secure and transparent and also needs to create awareness regarding this.

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Regulatory issues For inbound international tourists, visa procedures are seen as a hindrance. A number of countries competing with India for tourists provide visa on arrival. India should provide visa on arrival for more countries or for certain categories of tourists for a specific duration.

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CONCLUSION

Tourism industry in India is growing and it has vast potential for generating employment and earning large amount of foreign exchange besides giving a fillip to the countrys overall economic and social development. But much more remains to be done. Eco-tourism needs to be promoted so that tourism in India helps in preserving and sustaining the diversity of the India's natural and cultural environments. Tourism in India should be developed in such a way that it accommodates and entertains visitors in a way that is minimally intrusive or destructive to the environment and sustains & supports the native cultures in the locations it is operating in. Moreover, since tourism is a multi-dimensional activity, and basically a service industry, it would be necessary that all wings of the Central and State governments, private sector and voluntary organisations become active partners in the endeavour to attain sustainable growth in tourism if India is to become a world player in the tourism industry.

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