Tourism: Empowering Communities To
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Title Inclusive Tourism: Empowering Communities to Year March 2014 Author Public and Social Policies Management (PSPM), Copyright No part of this publication may be reproduced in any form by photo, photo-print, microfilm or any other means without the written permission of YES BANK Ltd. & ASSOCHAM. Disclaimer This report is the publication of YES BANK Limited (“YES BANK”) & ASSOCHAM and so YES BANK & ASSOCHAM has editorial control over the content, including opinions, advice, statements, services, offers etc. that is represented in this report. However, YES BANK & ASSOCHAM will not be liable for any loss or damage caused by the reader’s reliance on information obtained through this report. This report may contain third party contents and third-party resources. 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Marg, New Delhi – 110021 Fax : +91 22 2497 4088 Website : www.yesbank.in Tel : +91 11 4655 0555 Fax : +91 11 2301 7008/9 Email : [email protected] Website : www.assocham.org Tourism in India Tourism in India Foreword The Travel and Tourism industry has emerged as a key sunrise sector and potential game changer for India. The sector has been able to drive equitable growth through large scale employment for specialized as well as unskilled workforces, develop several remote locations, encourage entrepreneurial ventures at the micro level and promote environment issues and sustainability. Tourism also has significant potential in poverty alleviation - this is reflected in discussions around the Millennium Development Goals, notably in the context of the 2002 Johannesburg Summit on Sustainable Development. According to the World Travel & Tourism Council, Tourism generated INR 6.4 trillion i.e. 6.6% of India’s GDP in 2012. The sector supported 39.5 million jobs i.e. 7.7% of India’s total employment. The Tourism sector is predicted to grow at an average annual rate of 7.9% from 2013 to 2023. This will make India the third fastest growing tourism destination over the next decade. The total market size of India’s tourism and hospitality sector is US$117.7 billion – this is expected to grow four-fold to US$ 418.9 billion by 2022. The Central Government has allocated INR 3.5 billion (US$56.41 million) in FY2013-14 for Domestic as well as Overseas Promotion and Publicity to enhance India’s competitiveness as an attractive tourist destination. Further, India has signed 48 agreements with other countries and international organisations to strengthen mutual promotion of tourism. The number of tourists availing the Visa on Arrival (VOA) scheme during January to October, 2013 has recorded a growth of 28.5 percent with a total number of 15,770 VOAs issued, compared to 12,273 VOAs during the same period in 2012. Tourism in India is insulated against economic fluctuations and it is important to leverage its potential through a sustainable policy framework, encouraging community participation and collaborative community models, offering a holistic platform to promote inclusive growth and strengthening the backward linkages of the industry. Tourism is a sector in which developing countries like India can have a comparative advantage due to our heritage, cultural diversity and natural beauty which are being successfully promoted in various ways. For instance, India occupies 73 per cent of the Himalayan Region and a special campaign - 777 days of the Incredible Indian Himalayas, has been launched by the Ministry of Tourism. The new and revamped Incredible India campaign has also resulted in an exemplary shift in the way Indian destinations are being promoted abroad as well as in India. The Government is also making concerted efforts to promote new forms of tourism such as rural, cruise, medical and eco-tourism, all of which have phenomenal growth potential. India, by virtue of its ancient civilization, has been home to most major religions of the world – this is a significant enabler for Religious Tourism whose core motive is the experiencing of different religious sites and monuments, along with art, culture, traditions and architecture from different eras of Indian history. The Buddhist Circuit, for instance, is a shining example of the endeavour to promote Buddhist pilgrimage, covering primary pilgrimage sites such as Lumbini, Bodhgaya, Sarnath and Kushinagar. ASSOCHAM, through strategic knowledge interventions and representations to the Government, has been championing the cause of Tourism development in India. I am pleased to present the YES BANK - ASSOCHAM knowledge report, ‘Inclusive Tourism: Empowering Communities to create Sustainable Livelihoods’ which highlights key challenges and opportunities and suggests a holistic strategy for development of Tourism in India. I am confident that the contents of the knowledge report will provide important insights to policy makers, industry leaders and stakeholders to conceptualize and execute sustainable development models for boosting growth of the tourism sector in India and providing economic and livelihood security to all sections of our society. Thank you. Sincerely, Rana Kapoor President Managing Director & CEO Tourism in India MESSAGE Tourism has long been identified as one of the sunrise sectors for India which can serve the dual purpose of not only earning foreign exchange but also boosting inclusion by increasing disposable domestic income. With its backward and forward linkages and local connect; tourism becomes an important driver of equitable growth and prosperity, offering an alternative source of livelihood, development & growth in remote locations, preservation of local skills, enterprise development at the micro level, and sustainable environment management. At this backdrop, ASSOCHAM has organized the Annual Summit on Inclusive Tourism: Think Tourism – Think India, on March 19, 2014 in New Delhi. The Summit addressed, the importance of Inclusive Tourism which is emerging as a Socio-Economic Enabler, challenges & issues faced in Domestic & International Tourism and the Emerging Needs and Challenges of the Tourism Sector from an industry perspective. I am glad to share the release of ASSOCHAM-YES BANK Knowledge Report titled, Inclusive Tourism: Empowering Communities to Create Sustainable Livelihoods and congratulate the YES BANK and ASSOCHAM team for preparing this report, which will certainly help the Government and other important stakeholders in preparing future roadmap. I also convey my heartfelt gratitude and congratulate ASSOCHAM, YES BANK and thank all stakeholders for their immense support and guidance to organize a highly successful Tourism Summit. D.S. Rawat Secretary General Tourism in India Table of Content: 1. Introduction 1 2. Understanding the Growth Dimensions of Tourism 5 2.1.