INDIA'S TOURISM INDUSTRY - PROGRESS AND EMERGING ISSUES

Dr. Anil Mishra Asst. Prof. JNKVV Jabalpur

Mrs. Priyanka Jharkhariya Research Scholar Barkhatullah university Bhopal

Abstract : Tourism today is the most vibrant tertiary activity India is one of the popular tourist destinations in and a multi-billion industry in India. Traditionally known Asia. India offers a wide array of places to see and largely for its historical and cultural dimensions, things to do. The delighting backwaters, hill stations tourism today is highlighted for its immense business and landscapes make India a beautiful country. opportunities. With its lucrative linkages with Historical monuments, forts, beaches, places of transport, hotel industry etc., the potential and religious interests, hill resorts, etc. add to the grandeur performance of India's tourism industry needs to be of the country. They attract tourists from all over the gauged in terms of its socio-economic magnitudes. world. India is probably the only country that offers This paper traces the progress made by India's various categories of tourism. These include history tourism industry in the planning era, and the emerging tourism, adventure tourism, medical tourism, spiritual issues (like alternative tourism) under globalization. tourism, etc.India has a composite culture. It examines the problems and challenges of the There is a harmonious blend of art, religion and country as well as the pitfalls in tourism planning in philosophy. Religions like Christianity, Buddhism, India. The paper also makes some policy suggestions Islam, Hinduism, Jainism, Sikhism and Zoroastrianism to address the constraints in promoting sustainable etc. has co-existed in India. tourism in India. India has fascinated people from all over the Introduction : world with her secularism and her culture. To promote Tourism is not an activity for pastime and international and domestic tourism in the country The entertainment but is an enriching and energizing Department of Tourism was formed. It provides activity. Tourism is the right vehicle for a developing infrastructure, information aimed at promotion of country like India which is on the path of modern tourist sites in the world market, carries out publicity economic growth through structural transformation campaigns and formulates policies and programmes of the economy. The value-added effect of tourism for the promotion of tourism in India. It has officers is increasing. Sustainable tourism has vast scope in in India and abroad. The Indian Institute of Tourism India by convergence of landscapes with and Travel Management, The National Council for financescapes, technoscapes, and mediascapes. Hotel management and Catering technology etc. India's tourism industry has witnessed upsurge in provide professionally trained personnel to the recent years, paying rich dividends to both consumers industry. and producers. The Tourism Advisory Board recommends The role of Tourism is essential in the economic measures for promotion of tourist traffic in India. It development of a country. Tourism is the second reviews the tourist trends and suggests appropriate largest foreign exchange earner in India. The tourism measures. Some of the places, havel is and castles industry employs a large number of people, both have been converted into heritage hotels. In these skilled and unskilled. Hotels, travel agencies, hotels, the tourists get the experience of the exotic transport including airlines benefit a lot from this lifestyle of the bygone era. The Indian Tourism industry. Tourism promotes national integration It Development Corporation (ITDC) organizes generates foreign exchange. It promotes cultural entertainment programmes like folk dances and songs activities. Tourism also promotes the traditional and provides shopping facilities. handicrafts sector. The tourist gets an insight into With the growth of urban professional middle the rich and diverse cultural heritage of India. class, the tourism in India is flourishing; many states Summer Internship Society Volume V Issue-1 March 2013 19 have taken necessary steps to promote tourism. Goa clubs, beach resorts etc have also contributed to the promotes water sports like sailing, scuba diving and growth and development of this industry. Emphasis rafting. Kashmir offers the pleasure of winter sports laid on HRD is clear. like skating and mountaineering. Kerala has The first major effort to promote the industry introduced the concept of houseboats in its lagoons. was launched with the announcement of 1991 as the Himachal Pradesh has developed winter sports in 'Visit India Year'. Enormous tourist resources were the state. commercialized. The first ever Indian Tourism Day In India, the tourism and hospitality industries was celebrated on January 25, 1998. The year 1999 are witnessing a period of Exponential growth; the was celebrated as 'Explore India Millennium Year' world's leading travel and tourism journal, "Conde with a host of shows, exhibitions etc. The next decade Nast Traveller", ranked India as the numero uno travel saw the restructuring of the schemes of Integrated destination in the world in 2007, as against fourth Development of Tourist Circuits, and Product/ position in 2006.Tourism has now become a significant Infrastructure Destination Development. Additional industry in India, contributing around 5.9 per cent of schemes/incentives were announced for service the Gross Domestic Product (GDP) and providing providers. Upgrading of beaches, airports, tax employment to about 41.8 million people.As per the incentives were also introduced. World Travel & Tourism Council, the tourism industry Besides creating an official website for the in India is likely to generate US$ 121.4 billion of Tourism Ministry, now the calendar of events is economic activity by 2015 and Hospitality sector has planned. Even the new initiatives to encourage the the potential to earn US$ 24 billion in foreign exchange NRIs and PIOs, through visit India programmes, by 2015. Pravasi Bharatiya Divas celebration, Dual Citizenship Additionally, India is also likely to become a to certain categories of diasporic Indians have given major hub for medical tourism, with revenues from much fillip to tourism in India. Thanks also to the the industry estimated to grow from US$ 333 million booming IT and outsourcing industry a growing in 2007 to US$ 2.2 billion by 2012, says a study by number of business trips are made by foreigners to the Confederation of Indian Industry (CII) and India, who will often add a weekend break or longer McKinsey. holiday to their trip. Foreign tourists, generally spend Progress of Indian Tourism : more in India than almost any other country The Indian government's "Incredible India" worldwide. Tourist arrivals are projected to increase tourism campaign and the information technology by over 22 per cent per year through till 2010, with a growth in India have been attracting millions of foreign 33 per cent increase in foreign exchange earnings tourists and business tourists to India. recorded in 2004. The Tourism Ministry has also Medical tourism has also recently mushroomed played an important role in the development of the in India. Tourism industry is a big foreign exchange industry, initiating advertising campaigns such as the earner in India, yet the industry still is hampered by "Incredible India" campaign, which promoted India's Tourism development has always has been an integral culture and tourist attractions in a fresh and part of the country's five-year plans. Initially memorable way. allocations were meager: Rs.3.36 crore in the Second The tourism industry has helped growth in other Plan,Rs.5 crore in the Third Plan & Rs.36 crore in sectors as diverse as horticulture,handicrafts, the Fourth Plan. It was doubled in the Fifth Plan. agriculture, construction and even poultry. India's The National Tourism Policy in 1982 gave a governmental bodies have also made a significant momentum to this sector. Expenditure rose from about impact in tourism by requiring that each and every Rs.187 crore in the Seventh Plan to Rs.595 crore in state of India have a corporation to administer support the Ninth Plan and further to Rs.2900 crore in the issues related to tourism. The tourism industry of India Tenth five-year Plan. The Tourism Development is based on certain core nationalistic ideals and Corporation, Tourism Finance Corporation, Hotel standards which are: Swaagat or welcome, Sahyog Management and Catering Technology Institutes, or cooperation, Soochanaa or information, Food Craft Institutes, Indian Institute Tourism and Sanrachanaa or infrastructure, Suvidha or facilitation, Travel Management, India Tourism Development Safaai or cleanliness and Surakshaa or security. Corporation, Indian Association of Tour Operators, Commonwealth Games is the additional Travel Agents Association of India and a large number opportunity for the Travel Industry to gain some of hotel management colleges, sports and adventure additional business, by offering special tour packages

Summer Internship Society Volume V Issue-1 March 2013 20 to the tourists. As per the reports, it is estimated that etc. more than 3.5 million tourists are going to reach India  Non Implementation of Legislative Law . in 2010 to be a part of the eminent Commonwealth  Excessive formalities for an issue of special Games that are scheduled to be held in Delhi - the permit to view restricted areas sites. capital city of India.  Untrained Guides. It is the high time for the India's Tourism  Tourism development projects are usually Industry, as the foreign tourists will be heavily developed by Indian Government without any dependent upon them for the flight bookings, hotel discussion with community leaders and they are reservations, travel itineraries and visas. dumped to follow the ineffective projects blindly. The growth of India Tourism market is also  Poor Administration & management. equally beneficial for the several associated industries  Absence of alternate site nearby and fair and such as the aviation industry, medical tourism industry festival creates a bottleneck problem in crowd and hotel industry. However year 2008, sees a management. Like In Kumbh fair no effective whopping rise in the arrival of eco tourists in the remides are applied by Indian Government to country. Recently a new concept 'Rural Tourism' has curtail overcrowd by creating other destinations been launched by the government in India, which is in nearby localities. equally doing very well.  Involvement of too many agents and tourism It is believed that in the next few years India operators also makes the cost of tourism package Tour Industry will gain new heights and the percentage too high in India. of India's share in the global tourism will grow 1.5%  Lack of entrepreneurship opportunities also by 2010. Industry is going to fetch maximum business restrict youth to follow a career in Tourism such from the Agra (Taj Mahal), Andhra Pradesh, Tamil as opening a hotel resort or retail outlet or Nadu, Kerala , Gujarat and Rajasthan, that are handicraft business to serve Tourism Industry in expected to receive maximum number of tourists. India. Problems of Indian Tourism :  Indian politicians are the hindrances in the The Indian government's "Incredible India" development of tourism in India; their policies tourism campaign and the information technology directly can influence the tourism growth in India have been attracting millions of foreign Tourism problems are more common in the rural tourists and business tourists to India. interior of the country. These areas are rich in natural Medical tourism has also recently mushroomed beauty, but they often lack basic infrastructure and in India. Tourism industry is a big foreign exchange accommodations for tourists. Often these regions are earner in India, yet the industry still is hampered by highly agrarian. The government is often unable to several problems like - secure enough land for developing tourism  Poor transportation infrastructure because it adversely affects local  Lack of basic hygienic amenities at halting points farmers. An instance of this phenomenon is Orissa.  Non-standardization of rates and fares It is very essential to promote Brand India as a  Lack of sound marketing and promotion tourist destination nationally as well as at the state strategies level. However the tourism departments are always  Poor maintenance of heritages cash strapped, there is general apathy towards work  Issues regarding security and harassment along with aging manpower never works in favor of  Lack of passionate and trained professionals brand promotion. What we need today is dynamic  Inadequate capacity manpower that is committed to take up tourism as a  Costly travel - soaring fuel surcharges, poor flight career and work up to really explore that Incredible management etc India as well as make India a safe tourist destination.  Lack of supportive infrastructure - bad roads, New Issues and Challenges : improper health and hygiene, communication India represents one of the most potential gaps, etc tourism markets in the world. It has expanded rapidly  Gap between demand and supply of manpower over the past few years and underpinned by the  Lapses in security and safety - incidents of tout government support, rising income level and various and harassment of tourists in some places international sports events, the Indian tourism industry  Uneven progress - slow growth of village will continue to grow at the fastest pace in the coming tourism, lack of information about tourist profile years. However, the industry may have to cope up

Summer Internship Society Volume V Issue-1 March 2013 21 with several challenges which will limit its growth. tourism? How to make India a safe and healthy place Post globalization and under GATS many changes to tour and travel? New parameters at the micro, and challenges are confronted by the tourism industry macro and meso levels have to be identified for in India. A few are may be mentioned here: developing tourism keeping in view the incidents of 1. Liberalization and Tourism : GATS came into communalism, deforestation, pollution etc. existence as a result of the Uruguay Round of Isn't it ironical that in this era of globalization - negotiations and entered into force on 1 January 1995, when we are using hi-tech to squeeze space and with the establishment of the WTO. India also signed conquer time - that we have to pause and ponder all the WTO agreements under the single undertaking over communal problems? In Kashmir sadly it looks rule and GATS is a part of this whole package. More like terrorism industry vs. tourism industry. Now it is and more services like transport, banking and seen in the southern states too. These are a few insurance, tourism etc became "tradable services'. aspects of the new paradigm of "geo-politics of Under GATS, tourism and travel related services - tourism" today. No doubt, technological improvements hotels and restaurants (including catering), travel are likely to lead to increased destination alternatives agencies and tour operators' services, tourist guide to physical tourism (e.g. cyber tourism). Our tourism services etc are covered for open market access and industry must prepare itself to meet these and other liberal FDI. With this, tourism has become emerging challenges. "consumption abroad" and travel of tourists, 3. Infrastructural Bottlenecks : A sector that is "movement of natural persons". The principle of expected to increase forex by rupees 5000-10000 "National Treatment" by GATS suggests that 'each crore by 2010, cannot go on and on with the mediocre member shall accord to services and service suppliers infrastructural facilities. For example, the Indira of any other member, in respect of all measures Gandhi International Airport which today ranks affecting the supply of services, treatment no less amongst the worst in the world according to the favorable than that it accords to its own like services WTCC Report needs to be converted into a modern and service supplies'. Without adequate domestic state-ofthe- art airport. Lack of integration between regulation and enforcement, the liberalization of domestic and international tourism, lack of education services could adversely impact on quality, coordination between modes of transport and standards, equity, and prices, and without up gradation communication is eating up people's time and money, of infrastructure and facilities of premier domestic unproductively. Success of tourism depends to a large institutions there could be loss of competitiveness for extent on better access to infrastructure, consumer- domestic providers and possible diversion of centric approach, terrorism, natural disasters, climate resources. Now the question is whether India is in a change, global warming. position to export-import labor, capital and technology 4. Alternatives : A major breakthrough is taking to reap the advantages of enhanced market access place in international tourism. That is alternative an upgrade its tourism sector. Openness in sky and tourism, a new option for India too. This includes land - vigorous competition ahead, need for quality health tourism, village tourism (in the vintage of global assurance - is India able to meet the challenges? This village!), sports and games tourism etc. Kerala has is the ground reality. How will India be able to handle done innovative thinking in "monsoon tourism". This the issue of "direct interaction with service is really a rich and attractive avenue that not only providers"? How equipped is it to meet the high helps in reducing seasonality of tourism but also international standards in services? Shortage of skilled ensure optimum use of tourist facilities and services. and trained manpower is another obstacle in benefiting Measures Taken by Indian Government : from the opportunities thrown open by GATS to These are some of the instructions given by the tourism. government to the tourists. It is mandatory to follow: 2. Social and Political Concerns : Globalization 1). Acquirement of a Currency Declaration Form has raised socio-cultural issues in tourism too. From and filling up of the Disembarkation Card on your going global we have arrived to the need for "thinking arrival in India. You also require making a verbal globally and acting locally". The nexus of globalism declaration of luggage you are traveling with. and tourism is so sensitive that it is a real challenge 2). Tourists with a visa permit for over 180 days have to development of environmentalism. Can hi-tech to obtain a Registration certificate and a tourism go hand in hand with heritage tourism? Residential Permit. Submission of four recent How balanced are virtual tourism and rural passport size photographs is compulsory for

Summer Internship Society Volume V Issue-1 March 2013 22 registration. tourism. 3). Submit the Certificate of registration while leaving Future of India Tourism Industry the country.  India is expected to see an influx of 10 Million 4). While embarking on an India tour, obtain a yellow international tourists by 2010, up from just 5 fever vaccination certificate. Also consult your Million in 2007. doctor before visiting this country.  Indian outbound tourist departure is expected to 5). Carry attested copies of your visa, passport, and reach 20.5 Million by 2015. other important travel documents.  In 2008, top four (4) states captures more than 6). Avoid purchasing any travel ticket from 75% of total market share of Indian domestic strangers. Go for travel agents for arrangement tourist visits. for transport tickets.  Domestic tourist visits is expected to increase 7). Credit cards, foreign currency or traveler's with a CAGR of 12.29% for the period spanning cheque are accepted from foreign nationals 2008-2015. although Indian currency is needed to give proof  Indian tourism Foreign Exchange Earnings is of having legal foreign exchange. expected to grow with a CAGR of 7.9% for the 8). Accommodate at any of the several top hotel period spanning 2010-2015. groups operated chain hotels in various cities of  In Indian union budget 2010 Indian government the country. You can also go for budget hotels or has given more than INR 1,000 Crore to Ministry guesthouses. of Tourism India 9). Foreign nationals are allowed to ask for the  In 2009 FDI investment in Indian hotel and arrangement of language interpreters. tourism sector was more than US$ 550 Million. 10). Carry packaged mineral water on your tour to  The number of cruise tourist arrivals in India is India. expected to jump by 233.33% by 2010 from the 11). First time visitors should avoid spicy food. number of cruise tourist arrivals in 2007. 12). Traveling to regions like Sikkim and Nagaland  Number of Buddhist tourist arrivals in India has will require special tour permits from authorized doubled in 2009 from 2008 tourist offices.  Budget for Incredible India campaign increased With a view to stimulating domestic and by INR 62.3 Crore for 2010-11 from previous international investments in this sector, the government year 2009-10. has implemented the following initiatives:  The number of medical tourist arrivals in India is  100% FDI under the automatic route is now expected to increase by a CAGR of 24.6% from permitted in all construction development projects 2009 to 2013. including construction of hotels and resorts,  India has been promoting its healthcare tourism recreational facilities and city and regional level by providing the visitors with private healthcare infrastructure. facilities. India medical tourism market is  100% FDI is now permitted in all airport expected to be more than US$ 2 Billion by development projects subject to the condition that 2013.Key Findings . FDI for up gradation of existing airports requires Suggestions : FIPB approval beyond 74%. For everything we need a policy - a sound policy.  A five year tax holiday has been extended to Let me now put forward a few policy suggestions to Companies that set up hotels, resorts and develop sustainable tourism in India: convention centers at specified destinations, 1. India should make the most of its topography, subject to compliance with the prescribed natural resources and labor to develop not only conditions. traditional products but also non traditional  Plans for substantial up gradation of 28 regional products of tourism. airports in smaller towns and the privatization and 2. Rural tourism should be a byproduct of Indian expansion of Delhi and Mumbai airports. tourism. At the Same time eco-tourism for The aforementioned initiatives have resulted in sustainable livelihoods must be encouraged. increasing FDI inflows being witnessed by this 3. Enhancing security, stepping up investment and industry. For the period April 2000 to November 2007, boosting (world class) infrastructural activities a total of US$ 636 million in foreign direct investments should be on the top of the agenda. Service quality was channelized towards development of hotels and - in hotels, Airports, railway stations, etc - needs

Summer Internship Society Volume V Issue-1 March 2013 23 to be upgraded. depends decisively on recognizing the relevant trends 4. Proper market segmentation should be done on and allowing for them in good time. the basis of criteria like demographic, However the Indian tourism industry has been socioeconomic and geographic variables. Yet a hit by pollution. The effluent emitted by the Mathura holistic approach should be the objective to Refinery has led to the decolonization of the Taj Mahal project an Incredible and Inclusive India. in Agra. The condition of many of our monuments is Commercialization should not result in deteriorating due to the negligence of the concerned dehumanizing tourism. authorities. On the other hand, beaches have become 5. Education, research and training are crucial cogs the dumping grounds of garbage and waste left by in the wheel of tourism. HRD should be given tourists. priority. Adequate importance should be given to This nuisance should be properly monitored. inductive research on historical importance and Kashmir is the paradise for domestic and international contemporary relevance. Tour operators, guides tourists. The terrorism in this valley not only affects must develop a good rapport with tourists. From the life of the common people but also the tourism, touring to learn we should move to learning to which is very important for the economy of the state. tour. Necessary steps should be taken by the state Conclusion : government as well as central government to prevent Tourism is today emerging as a leading sector this menace. in the world and is now considered by some as the The tourist infrastructure in India should be number one industry. Demographic, socio-structural strengthened. Government owned hotels should be and socio-cultural developments have always led to properly managed. The Government should also take changes in tourist demands, and service providers in steps for the maintenance for the tourist destination. tourism are faced with a substantial need to adjust. Steps should be taken to restore the ancient splendour These constant challenges have expanded and of the monuments. Sincere efforts could help to intensified considerably in the first few years of the further develop the Indian tourism industry. new millennium. War and tourism, extreme weather, References : the ongoing internationalization of tourism and the Reference Books ageing of society (increasingly prominent in public Indian Tourism Business, A legal perspective by Gyan awareness) have emphatically demonstrated the Books, Ansari Road. New Delhi. latent vulnerability of tourism as a boom industry. The Encylopedia of Indian Tourism Resources : volume survival of the tourism industry depends decisively I, II, III by Gyan Books, Ansari Road, New Delhi. on recognizing the relevant trends and allowing for Tourism Growth Management and Incentives by them in good time. Development of tourism is a very Kalpaz Publication, New Delhi. complex process of interaction among many players, Websites who have shared the responsibility concerning the www.indiacore.com/tourism. html environmental, social and economic sustainability of www.healthtoursindia.com/ - this lucrative sector. Consumer trends in tourism, www.ibef.org/industry/tourismhospitality which are gradually changing, require an appropriate www.economywatch.com/business-and-economy/ response in terms of both policy formulation and tourism-industry.html investment and the survival of the tourism industry

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