“Comparative Study of the Strategies adopted by Tourism Development Corporation (MTDC) and Goa Tourism Development Corporation (GTDC) in promoting tourism industry in the respective states.”

Chapter- 4

Maharashtra Tourism Development Corporation (MTDC)

4.1. Formation, Hierarchy and Organizational Structure of MTDC: 4.1.1. Formation: 4.1.2. Hierarchy and Organizational set-up:

4.2.Need and Importance of MTDC:

4.3.MTDC as a State Agency to Execute the Decisions Taken by the State Government:

4.4.Role of MTDC in Developing Tourism in Maharashtra: 1. Establishment of Accommodation Centres at Various Important Tourism Destination: 2. Organizing Various Programmes : i. Visit Golden Maharashtra: ii. Banganga Festival: 3. Participation in Various National and International Exhibitions: 4. Informative Website: 5. Sales Literature: i. Booklet: ii. Pamphlets: 6. Appointment of Travel Agents: 7. Regional Centres: 8. Helpline: 9. Booking Centres: 10. Bed and Breakfast Scheme: 11. Passing Various Government Resolutions (GRs) Related to Tourism:

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4.5.SWOT Analysis of MTDC: 4.5.1. SWOT Analysis: 4.5.2. SWOT Analysis of MTDC: 4.5.2.1.The SWOT Analysis done by MTDC officials: 1. Strengths: 2. Weaknesses: 3. Opportunities: 4. Threats:

4.6.Conclusion

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Chapter- 4

Maharashtra Tourism Development Corporation (MTDC)

Chapter Four deals with the points such as information, organizational set-up etc. of MTDC, the need and importance of MTDC is explained with suitable points which can throw light on the necessity of MTDC. How MTDC is playing a crucial role in ‘Tourism Development’ in the State has also been explained by illustrating various activities of the MTDC.

4.1.Formation, Hierarchy and Organizational Structure of MTDC: 4.1.1. Formation:

The primary responsibility of overall development of the state lies with the State Government. The state government is empowered to take all kinds of important decisions in relation to development of the state. However, considering the priorities, available human resource and infrastructure, government alone cannot look into all the areas with the same intensity and priority. Hence, the government has established separate specialized bodies for all such areas. The concerned ministries are putting in extra efforts for the proper functioning of the concerned field. For example MIDC is established for promotion of industries, MSRTC for public transport, MSRTC for construction, development and maintenance of the roads, etc.

Likewise, for the proper, sustainable and long term development of tourism in the state, ‘Maharashtra Tourism Development Corporation (MTDC)’ has been established by the Government of Maharashtra in January 1975.

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4.1.2. Hierarchy and Organizational set-up:

Chart Showing Hierarchy and Organizational Structure of

MTDC: Hierarchy and Organizational Structure of MTDC

Hon. Minister of Tourism

Hon. State Tourism Minister

Principal Secretary – Tourism (IAS)

Managing Director

Joint Managing Director

General Manager

Staff in the Head Office

Accommodation and Properties Booking Centres Information Centres

Domestic International

Foreign Embassies Foreign Consulates

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Hon. Chief Minister is the ultimate apex executive authority of the MTDC. However, for the sake of convenience and to look into the routine business of the corporation, Hon. Minister for Tourism is in charge of MTDC. He is assisted by Hon. State Tourism Minister and one bureaucrat i.e. Principal Secretary- an IAS officer. These are the key persons in taking all kinds of policy decisions. They are the connecting link between the MTDC and Government of Maharashtra. They spend majority of their time in ‘Mantralaya’. Hence it is more convenient for them to interact and co-ordinate with the other governmental officials to expedite and complete the formalities related to MTDC at the earliest. The office bearers are the full time staff of the MTDC and they look into the daily routine business of the corporation. They are also responsible for providing the proper input and feedback to the above mentioned officials. They are supposed to take all kinds of efforts to execute the decisions taken by the Government in the most effective and efficient manner. Managing Director, Joint Managing Director and General Manager, fall in this category. However, they are also the top officials and they are part of the high powered committee which takes decisions about tourism.

Thereafter, the arrangement of the staff in the Head office is made, based on the regions as well as specific functions. Mainly controlling, monitoring, guiding and motivating - activities are carried out apart from the routine and mandatory activities at the Head Office. The Head Office of MTDC is well equipped with the necessary infrastructure. It is in continuous touch with all the stake holders. Recently, the location of the Head office has been shifted from Express Towers to Churchgate, at .

The accommodation centres are located at various tourism destinations. Resident Managers are appointed at all such resorts. As per the directions of the Regional Centres and the Head Office, they fulfil their task. The manager of the resort is the head of the accommodation centre, which is also a connecting link between regional centre and the head office. As and when required he interacts with these officials and takes their guidance. As the head of accommodation, he is responsible for all kinds of activities. He must ensure that all the activities are carried out very smoothly as per the guidelines of the

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Head Office. A daily report is prepared by the manager and sent at around 7 p.m., to the concerned regional offices.

There are seven Regional centres namely- , , Nasik, , Sindhudurg, and . The regional centre is headed by the Regional Director. He is responsible for the smooth functioning of the information centre, booking centre and the accommodation centres. He is the connecting link between these centres and the Head Office. Sufficient staff and required equipments are provided to the Regional Director so that he can perform his duties and responsibilities more effectively and efficiently. He is also expected to create and maintain liaison with the local bodies responsible for smooth functioning of the MTDC’s establishments.

The information and booking centres also fall under the concerned Regional Centre. They are also expected to work as per the guidelines of the Regional Director.

The booking centres can have the live status of the accommodation centres which fall under their jurisdiction. As per the condition they complete the booking formalities and communicate the same immediately to the concerned accommodation centre.

With the help of the above organizational set-up, MTDC is performing its activities very smoothly. Hence we can say that the current organizational structure prove to be effective for the corporation.

4.2. Need and Importance of MTDC: In order to avail the benefits of tourism, the Central Government has initiated various steps. Appointment of Sergeant Committee, establishment of ITDC, National Tourism Board and the setting up of a separate Tourism Ministry, are concrete efforts in this direction. Due to these substantial efforts, the country has witnessed tremendous growth in the tourist inflow, both domestic as well as foreign. However, considering the huge geographical area, diversity in culture, language and variety in tourist destinations, it was very difficult for the Central Government to reach and promote all tourist destinations. Therefore it was decided by the Government of to assign the primary

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responsibility of development and promotion of local tourism destinations to the respective state governments. Initially, the State Governments started their activities without any specialized body. But gradually it was realized that, it is difficult to undertake all the required activities related to tourism, in addition to the routine assignments of the government. Therefore a separate body was set up with the following objectives:-

1. To set up a separate body to look after the activities relating to tourism. 2. To execute the decisions taken by the State Government about tourism. 3. To supervise and monitor the tourism activities professionally. 4. To undertake studies and researches and submit the same to various concerned departments whenever required. 5. To maintain and make available all kinds of state tourism data. 6. To undertake the state tourism promotional activities at national and international levels. 7. To establish a good contact and exchange the information with other State Tourism Corporations. 8. To give valuable suggestions and recommendations to the state government to boost tourism industry. 9. To explore and develop new tourism destinations in the state. In light of the above objectives, various state governments established State Tourism Development Corporations. (The detailed list of all State tourism development corporations has been given in Chapter -3)

In line with the objectives cited above and to come up as a pro-tourism state, the Government of Maharashtra also established a separate corporation termed as ‘Maharashtra Tourism Development Corporation’ (MTDC).

The State of Maharashtra is a unique State due to various reasons which are mentioned below: 1. Geographically, it is one of the biggest state in the country; 2. Large number of industries are located; 3. It has fairly good social and infrastructural development;

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4. There is a variety in language, food pattern, living standard etc. in different regions of the state; 5. Long distance (Approximately 720 kms) sea beaches;(Around six times more than Goa beaches). 6. Large number of temples and pilgrimage places; 7. Education and IT hub; 8. Mumbai- The financial capital of the country; 9. Caves, Forts, Hill Stations etc. are located in almost every part of the state; 10. It has a well developed transport and communication infrastructure.

Looking at the above unique features of the state, one can undoubtedly say that, Maharashtra is really a most suitable and desirable destination for both domestic as well as foreign tourists. Considering these points and in order to live up to the expectations of the tourist, the State Government has set up the tourism corporation. Following points would throw more light on the need and importance of the MTDC:

1. The need to Institutionalize the Efforts of Development and Promotion of Tourism in the State : In order to develop tourism in the state, the need was felt to prepare a plan in a systematic manner. It was also felt necessary to have a full time professional body which would concentrate only on tourism. The planned effort at the centre has shown encouraging results and hence, the state also wanted to move ahead in the same direction. Considering the large number of priorities of the state government, it may not be possible to pay due attention to tourism. Hence, the decision to set up MTDC was taken.

2. Inability of the Central Government and other Tourism Bodies at the Centre, to Reach out to all the Tourist Destinations in the Country : India is one of the biggest countries in the world both in terms of geography and population. Long distance, problems in accessibility of the various

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destinations, huge quantum of time and efforts required to develop and maintain a particular tourism destination etc, make it more difficult to carry out the tourism developmental activities from the centre. Apart from these physical constraints, there are certain issues which arises due to huge population. Large variety in tastes and preferences, different cultural and social values in different regions and states in the country, makes the issue more complex. Therefore, considering the above factors, a local body proves to be effective to achieve the tourism objectives in a short period of time.

3. To Provide Input so as to Devise and Decide Proper Tourism Policies as per the States’ Requirement : One of the important activities assigned to MTDC is to assimilate the tourism related data and provide proper input to the state government, to enable it to take appropriate decisions on tourism related issues. The officials located at various accommodations, booking, information and regional centres perform this job. The feedback forms taken from the tourists are used for necessary corrections and improvements. Along with that, various seminars and workshops are also organized to carry out discussions on related issues. It has proved to be one of the important sources of input. Along with the experts in the field, academicians, bureaucrats, decision makers, ministers, tour operators etc. also participate in such seminars, due to which it becomes very fruitful.

4. To Promote all the Tourist Destinations in the State : It is said that, (perhaps) Maharashtra is the only state in the country, where in the tourist finds maximum variety in tourist destinations. In fact, unfortunately this positive aspect has been turned into negativity. It means that, the state or the MTDC cannot reach out to all the destinations and cannot promote them aggressively with the same level of priority and intensity. Hence, MTDC has established its resorts at some of the important and strategic locations. However, with the help of its sales and informative literature such as brochures, leaflets, pamphlets, booklets, website etc. it provides adequate

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information about such places, which can arouse interest in the mind of the tourist.

5. To Create a Mechanism for Continuous Efforts to Boost Tourism in the State : Development and promotion of tourism is not a onetime activity. It is a continuous and ongoing process for both the established as well as new tourism destinations. It is so because of the continuous change in the requirements and taste of the tourists. The dynamism becomes more vibrant because of the direct and indirect impacts of the overall changes in the socio- economic factors both at national and international levels. Therefore, the MTDC officials have to continuously be on their toes to cater to the requirements in the field.

6. To Create Infrastructural Facilities at the Existing as well as Potential Tourist Destinations : It is said that, infrastructure development is one of the important wheels of tourism promotion and development. The State has observed that even if few infrastructural facilities like roads and accommodations are made available, automatically, in the vicinity along with the tourism development, other socio- economic developments do take place. However, for speedy and organized promotion and development, MTDC has to make a continuous follow-up with the state government for deliberate planning and immediate execution of the decision about the infrastructural development in the various regions. The infrastructural development includes the construction of roads, providing transportation facility, making available basic civic facilities and measures related to comfort, safety and security of the tourist. Though lot of ground needs to be captured in this area, the efforts taken so far by MTDC are definitely noteworthy. For example, some of its accommodation centres at Ganpatipule, Bhandardara, Malshej Ghat etc. are centres having state of art infrastructure location wise, and almost touching the tourist destinations, which has contributed a lot in

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promoting tourism as a USP in those respective places. In these places, along with tourism, other economic activities have also increased to a great extent. 7. To Interact and Co-ordinate with other State, National and International Tourism Bodies : Since MTDC is Maharashtra’s official body established to take care of tourism in the state, it has to co-ordinate within the state with various bodies like MSRTC, Railways, Police, and State Government etc. to perform its activities more effectively. Moreover, it has to interact with the various state corporations, national bodies like Department of Tourism, ITDC and the international tourism associations and bodies. It is very much required not only to promote the states’ tourism at such places but to establish strategic ties and to exchange important data and required information about the field.

4.3. MTDC as a State Agency to Execute the Decisions Taken by the State Government:

The executive apex head of the MTDC is Hon. Minister of Tourism. He is assisted by Hon. State Tourism Minister and the Principal Secretary- Tourism, who is an IAS officer. These three officials are closely connected with the State Government. Therefore whatever feedback or input is required is taken from the staff of the MTDC and forwarded immediately to the State Government for decision making. All the important decisions relating to finance, expansion of the existing projects, development of the new projects, offering concession in terms of tax, stamp duty, or any other such incentive etc. are solely taken at the cabinet Ministers meeting, chaired by the Hon. Chief-Minister. It means that, all the important policy decisions regarding tourism are the decisions of the State Government. Hence it has got absolute weightage.

Once the decisions are taken, they are communicated to MTDC officials for their further execution and implementation.

In the light of the policy decisions taken above, all the required routine decisions are taken and executed by the MTDC.

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Therefore, MTDC is a State body established by the government to execute the decisions taken by the State Government.

4.4.Role of MTDC in Developing Tourism in Maharashtra : Appointment of Sergeant Committee was the formal and in the real sense, India’s first effort to chalk out an effective plan and undertake the proper development of tourism in the Indian horizon. Although there were certain instances where in some kind of efforts were made in this direction, the appointment of Sergeant Committee is considered to be the most important breakthrough in this direction. Since then organized and consistent efforts were made through various ways and means. The Government of India, appointed ITDC to carry out certain specified functions in the field of tourism. Later a separate ministry was established to look after this very complex and dynamic field considering its importance and voluminous work. All these efforts at national level realised in to tremendous and notable results. However, considering the huge geographical area and the other constraints, it was felt necessary to boost the efforts by establishing the State Tourism Development Corporations at state level with certain definite objectives to be fulfilled. Maharashtra Tourism Development Corporation (MTDC) is the state body established by the state to look after and promote tourism in the state. As a state agency, although its activities are limited only to execute the decisions taken by the State Government, it has been observed that sizable amount of progress in the tourism sector has been witnessed by the state due to such a specialized body. The MTDC is fulfilling its task of promoting tourism with the help of following activities.

1. Establishment of Accommodation Centres at Various Important Tourism Destinations : In order to boost tourism in the state, the first task undertaken by MTDC is development of good infrastructure. As a part of it, the corporation constructed the following accommodation centres at various strategic places in the state.

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Type and Number of Rooms Available

Deluxe Suit Standard Cottage Others

Room Room Sr. No.

Name of the Place AC Non AC AC Non AC AC Non AC Dormitory AC Non AC AC Non AC Total Capacity 1 Ajanta Junction 5 0 0 0 0 0 0 0 0 0 0 5 Amboli Green 2 Valley 4 6 6 0 0 0 0 0 0 4 20 3 Aurangabad 0 0 0 18 7 11 0 0 0 11 19 66 Auronda House 4 Boat 0 0 0 0 0 0 0 0 0 0 2 2 5 Bhadardara 0 10 0 0 0 8 2 0 6 0 9 35 6 Bordi 4 0 0 0 0 0 0 0 0 11 0 15 Chikhaldara 7 Convention Co 0 0 0 0 0 0 1 5 5 0 11 8 Dhamapur 0 0 1 5 0 0 1 0 0 1 1 9 9 Fardapur 16 12 0 0 0 0 1 0 0 0 29 10 Ganpatipule 30 44 0 0 0 0 0 4 0 3 39 120 Green Valley 11 Vijaydurg 0 0 8 0 0 0 0 0 0 0 0 8 12 Harihareshwar 5 0 0 0 0 0 0 0 0 10 2 17 13 28 0 8 0 0 0 0 0 0 0 0 36 14 Jotiba Royale 0 27 0 0 0 2 0 0 0 0 29 15 Karala 0 0 6 4 0 12 5 14 20 12 5 78 16 Kharepatan 0 0 0 0 0 0 1 0 0 3 3 7 17 Khekranala 0 0 4 4 0 0 4 0 0 0 0 12 18 Lonar 4 0 0 0 0 4 4 0 0 0 0 12 19 0 0 0 20 0 21 4 30 0 0 34 109 20 Mahalaxmi Panhala 0 0 0 0 0 7 1 0 0 0 12 20 21 Malshej Ghat 18 12 0 0 0 0 2 0 4 0 0 36 22 Panhala Fort Resort 0 0 0 0 0 2 0 0 2 0 0 4 23 Panshet Resort 0 0 0 0 0 0 0 0 0 9 0 9 24 Raigad 0 12 0 0 0 0 4 0 0 0 0 16 25 Pilgrim Inn. 25 25 0 0 0 0 0 0 0 0 0 50 Tadoba Moharli 26 Tourist Co. 0 0 0 0 12 3 0 0 0 0 0 15 Takarli Beach 27 Resort 4 0 0 0 0 0 2 0 0 10 10 26 28 Takarli House Boat 0 0 0 0 2 0 0 0 0 2 4 29 TRC Nagpur 0 0 0 0 8 0 0 0 0 0 0 8 30 Velneshwar 0 0 0 0 0 0 0 0 0 5 10 15 Total Room Capacity 143 148 33 51 29 68 34 53 37 77 150 823

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2. Organizing Various Programmes : MTDC organizes various programmes such as seminars, conferences, festivals and cultural programmes etc. Through these programmes, the policies of the MTDC are communicated to various stake holders, at the same time some kind of brain storming sessions are carried out due to which good amount of input is received by MTDC. The information about such programmes is mentioned below- a) Visit Golden Maharashtra :

A yearlong celebration of “Visit Golden Maharashtra” was launched with a two day tourism conference titled ‘Golden Maharashtra ’ at Y.B. Chavan Centre, Mumbai on 20 th April, 2010.

Maharashtra Economic Development Council (MEDC) along with MultiNet Worldwide organized this event which was supported by Government of Maharashtra.

The event showcased the culture, tradition, cuisine and lifestyle of Maharashtra. It helped in exploring business potential and creating a roadmap for the next 10 years of growth and development of the state. It also facilitated the interaction with policy-makers and corporates’ and felicitated legendary personalities of Maharashtra.

b) Banganga Festival: There is a fascinating legend about the Banganga. It is said that Lord Rama, on his way to Lanka, stopped on the hillock of Malabar Hill. His followers were worshippers of Shiva and fashioned a 'Shivalinga' out of sand and called it the 'Walluka Ishawar' (Later called Walkeshwar). Since the area was surrounded by sea, they could not find any fresh water to quench their thirst or to perform their daily puja. So, the Lord shot a 'Bana' (arrow) and the holy Ganga sent forth its waters! The highlight of the evening is when the sun sets in the western skies, myriad temple bells chime the 'aartis' and the festival evokes memories of a bygone era, Of artisans who toiled, hour after hour, to chisel and shape and carve poetry out of rock and wood.

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First held in 1992, the Banganga Festival is jointly organized by the Indian Heritage Society, Mumbai and MTDC. The objective of the event, the Banganga Festival, was a two day musical extravaganza. Mumbai, the city of dreams, has paid tribute to its heritage through rhythm and music. The Banganga is a unique festival that promotes landmark sites, comprising several temples, dating back to the 6th century BC. The festival also increased a substantial awareness about the Banganga tank and its environs. Eminent personalities from the field had participated in the programme. It helped to achieve various objectives such as: - i) Communicating the policies of MTDC; ii) Brain storming on various burning and upcoming issues; iii) Active participation of various stake holders; iv) A concrete platform to showcase the USPs of MTDC; v) Establishing connecting link between MTDC and Society at large. Apart from these, MTDC was instrumental in organizing ‘Pune Festival’, ‘Ellora Festival’, etc.

3. Participation in Various National and International Exhibitions : Exhibition is a place where MTDC not only can showcase its properties but also other touristic destinations of Maharashtra. It gives an opportunity to highlight USPs and attract the potential tourist and vendors to such places. MTDC participates in various exhibitions organized by TIFT and IITM Due to such active participations, MTDC also gets to know the peculiarities and uniqueness of the other state corporations and tourism organisations.

4. Informative Website : The official website of the corporation is more informative and exhaustive enough to satisfy almost all the queries of the tourist. More than that, in today’s technology age, it offers the facility of online bookings for accommodations. Alongwith the mandatory information such as Government’s Resolutions related to tourism, information about RTI, contact us etc., information from tourist point of view is also provided on the website. The important information such as Cuisine, Culture, Trivia Places to visit,

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Currency exchange etc. adds to the utility of the website. The website provides this information in three languages namely Marathi, Hindi and English. However, the website can be browsed almost in forty languages. Actual site photographs, descriptive information about various touristic places, how to reach the places, things to buy, live status of booking, etc. are added features of the website. Following home page of MTDC illustrates an indicative insight about the website:

The official website of MTDC:

(Source: “http://www.maharashtratourism.gov.in”, referred of 24 th May, 2010.)

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5. Sales Literature : MTDC has prepared a wide range of marketing, sales and informative literature such as pamphlets, leaflets and brochures etc. The brochures are not only colourful but it provides almost all the required details that a tourist expects. The literature is prepared in various formats as mentioned below: - i. Booklet : The booklet is prepared to give informative details about all the accommodation centres at a glance. It also provides the information about the regional centres, booking centres and helpline. The booklet communicates the actual places where the MTDC resorts are located. Reaching the destinations, things to buy, places of interest, nearest airport and railways station etc along with the contact details of the destination are suitably provided in the booklet. Though such a large amount of information is provided in the booklet, care is taken not to make it heavy and bulky. The size and shape of the book is very compact and it is very easy to carry the same. ii. Pamphlets : It is a single page informative material giving details about the particular accommodation centre. Along with all the information provided in the booklet additional information such as the nearby places to visit, fares, more contact details, timing etc are provided therein. The pamphlets are printed in black and white as well as in colour. The black and white pamphlet contains attractive pictures and interesting information about the tourist place is provided in the colour printouts.

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As an example, a sample of Ganpatipule pamphlet is given as under:

(Source:“ http://www.maharashtratourism.gov.in/mtdc/html/mahahttp://www.maharashtratourism.gov.in/mtdc/html/maharashtratourashtratourism/imagrism/imag es/DestinationFolders/Ganpatipule.pdf ”, referred on 27 th May 2011.) Apart from the same, as per the requirements, additiona l literature is prepared by the MTDC. 6. Appointment of Travel Agents : It is not possible f or every tourist to visit the contact places of MTDC such as website, regional centre or use the helpline to get the information about a particular centre. Even if it is possible for some people to avail the facilities mentioned, they may not be able to access the information they wish to. The tourist may be interested to v isit a particular place personally and collect the necessary information. This gap is bridged by appointing travel agents. MTDC

“Comparative Study of the Strategies adopted by Maharashtra Tourism Development Corporation (MTDC) and Goa Tourism Development Corporation (GTDC) in promoting tourism industry in the respective states.”

appoints authorized travel agents who can book the accommodation centres officially for the tourist. The travel agents provide all the necessary information required by the tourist. They show the photographs of the rooms, actual tourist site etc. due to which, the tourist gets a feel of the place. At the same time, during the tour, whenever necessary, a travel agent interacts with the tourist to satisfy his queries. It gives a great sense of personal touch to the tourist. The travel agents on their own publish advertisements in various media about the accommodation and other facilities provided by MTDC. Through the advertisements such as sign boards prepared by the agents and his marketing tools, he directly or indirectly markets the MTDC. The travel agents are the brand ambassadors of MTDC. Thus MTDC reaches out to the prospective tourist within a short period of time. 7. Regional Centres: Considering the vast geographical area of the state, it is not possible for MTDC to monitor all the activities and exercise control over all the accommodation centres from the Head office. Therefore for the sake of convenience, six regional centres namely Mumbai, Pune, Aurangabad, Nagpur, Ratnagiri and Nasik have been established by the corporation. These centres are well equipped with all the required information which can satisfy all the queries of the tourists coming in the vicinity of the concerned regional centre. 8. Helpline: A toll free helpline is provided by the corporation. A tourist can avail the required information about the tourist destination, travel options, security and cuisine tips etc. free of cost. It proves to be very convenient to the tourist because he need not visit the information centre personally. 9. Booking Centres: In order to offer specialty services to tourists, various booking centres have been established at various places. A tourist can personally visit the booking centre or he can avail the required facility by a telephone call. The booking centres are well connected with the Head Office and the accommodation

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centres. They can access the live status of the booking and can pass on the information immediately. 10. Bed and Breakfast Scheme : It is considered to be one of the most ambitious projects. The state government, through its GR dated 27 th May, 1998, took the decision to permit the owners of private individual houses, flats, row-houses etc to provide two to ten bed accommodations to the tourist. Following were the objectives of the said scheme: - Instead of blocking the huge funds and spending much time and energy associated with the private individual’s accommodation for MTDC, it could concentrate on other important issues to promote tourism in a speedy way.

a) Allow the private individuals to provide accommodations to the tourist.

b) Along with the bed facility, morning breakfast also to be served to them.

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List of Bed and breakfast facility accommodations to be provided: Statement showing City wise Bed & Breakfast facility of MTDC

Sr. Name of the Total Capacity of Bed Range of Charges No. City No of Rooms No of Beds ( in Rs) 1 Alibag 241 482 300 to 900 (For non AC) 1875 ( for AC) 2 Shriwardhan 104 208 200 to 600 (for non AC) 800 to 1200 (for AC) 3 Mahabaleshwar 177 354 200 to 500 (for non AC) 900 to 1200 (for AC) 4 Murud 82 164 120 t0 400 (for non AC) 500 to 800( for AC) 5 Sindhudurg 174 342 250 to 425 (for non AC) 800 to 1200 (for AC) 6 257 596 250 to 650 (for non AC) 800 to 1250 (for AC) 7 Nasik 19 142 120 to 300 (For non AC) 450 to 600(for AC) 8 54 108 100 to 250(For non AC) 9 Mumbai 104 208 250 to 400(For non AC) 500 to 600 (for AC) 10 Aurangabad 14 116 125 to 400(For non AC) 11 Pune 58 116 250 to 500(For non AC) 500 to 700 (for AC) 12 15 110 200 to 400 (For non AC) 400 to 800 (for AC) 13 Ratnagiri 80 160 200 to 400 (For non AC) 400 to 500 (for AC) 14 Pandharpur 5 10 400 15 Buldhana 5 50 450 (For non AC) 600 (for AC) 16 Nagpur 3 18 300 to 500 (Source:“http://www.maharashtratourism.gov.in/mtdc/HTML/MaharashtraTourism/i mages/PDF/ANNEXURE-V%28B%29.pdf”, referred on 24 th May, 2011.)

11 . Passing Various Government Resolutions (GRs) Related to tourism: a) Exemption on stamp Duty for Tourism Projects under Tourism Policy-2006

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b) Exemption on Electricity Duty for Tourism Project-2006 c) Govt. Resolution on use of land in Non-Development Zone for Tourism purposes d) Water Supply benefits in Rural Maharashtra-Notification e) Govt. Resolution dated 24/5/2004 about Luxury Tax benefits under Tourism Incentive Scheme-1999 f) Government Resolution for Constitution of High Powered Committee for Scrutiny, Recommendation and Declaration of Mega Tourism projects under Tourism Policy-2006 g) Exemption on Entertainment Duty for projects under Tourism Policy-2006

4.5.SWOT Analysis of MTDC:

4.5.1. SWOT Analysis:

It is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable or unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University, US, in 1960s and 1970s using the data from Fortune 500 companies.

A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research.

• Strengths: Characteristics of the business or team that give it an advantage over others in the industry.

• Weaknesses : Characteristics that place the firm at a

disadvantage relative to others.

• Opportunities : External chances to make greater sales or profits in the

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environment.

• Threats: External elements in the environment that could cause

trouble for the business.

Identification of SWOT is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.

First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process is repeated.

4.5.2. SWOT Analysis of MTDC: Since MTDC is a professional body set-up to take care of tourism of the State, it is very much essential for MTDC to identify its SWOTs. It will certainly help in preparing realistic planning and execute the same professionally.

4.5.2.1.The SWOT Analysis done by MTDC officials: Realising the usefulness the MTDC has identified its SWOTs, which are mentioned below:-

SWOT Analysis: SWOT analysis has been used to create a quick map of the internal organisation and the fundamental external dynamics involved. Analysis of Maharashtra’s tourism sector is based on national and global factors and environmental considerations.

1. Strengths: Most obviously, Maharashtra has immense tourism potential with its natural beaches, heritage and culture. Most of the other states in India too have similar offerings. So, the strengths for Maharashtra will lie with its unique perspectives. The strengths are answers to these questions: What is the value proposition offered in relation to the other states in India? Why should a

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tourist visit destinations in Maharashtra when he has so many options? The primary strength of Maharashtra is Mumbai. It is a commercial and entertainment capital of India and now heading to be a top urban tourist destination. Its strengths are:

a) South Mumbai: The South Mumbai area houses the , Museums, Shopping malls and Designer showrooms. It offers Victorian buggy rides, walking down Kala Ghoda’s art district in an aesthetically designed surrounding. With its proximity to the world heritage site of Elephanta, South Mumbai can become the primary activity oriented destination.

b) International airport: Mumbai’s International airport brings around 26 per cent of international tourists to India. It has the advantage of getting more and more tourists to the state as compared to any other state in India.

c) Bolleywood: Mumbai is the entertainment capital of India. Major actors, and designers, reside in Mumbai. Bollywood has received international attention and is of prime interest to population of Indian origin in the source markets of USA and UK.

d) Commercial Capital : Mumbai primarily caters to international and domestic business tourists. Mumbai’s new prime hotels are close to the airport making it convenient for the business tourists visiting the North Mumbai business areas of Santacruz Electronic Export Processing Zone (SEEPZ) and - Kurla Complex. e) Amusement Parks: The premier amusement parks of Essel world and Water-world are at close proximity to the international airport, and offer an excellent one-day outing.

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f) Sea Forts : Maharashtra has a huge cache of sea forts, most of which are in the belt and offer a distinct uniqueness. Also, the sea forts of Alibag and Murud- Janjira are close to Mumbai. g) Maharashtra Residents: Maharashtra is the largest generator of domestic tourism with around forty per cent of its population showing a high propensity for travel. Moreover, an India profile study by British Tourist Authority shows that the primary source- state for Indian Outbound to Britain is Maharashtra.

h) Nationally known Religious Sites: Maharashtra homes prominent religious places with nationwide following. Shirdi, Ashtavinayak and even the famous Siddhivinayak temple at Mumbai are a must in the itinerary of domestic tourists visiting Maharashtra. i) Tangible and Intangible Culture : Maharashtra’s richness of culture lies in the arts of Warli, Chitrakathi, Bidriware and music traditions at Elephanta, Balgandharva, Banganga, Kalaghoda and Kalidas. These handicrafts and tribal arts indeed add to the unique value of Maharashtra. j) Rich Buddhist Cave Architecture Heritage: Not just Ajanta-Ellora, but also the caves of Bhaja and Bedsa, Karla, Pandavleni, Junnar and Pithalkhora are Buddhist heritage sites, each offering the view of ancient “cave architecture”. According to the Convener of the Indian National Trust for Art and Cultural Heritage, this architecture is one of its kinds in the world thus offering a unique perspective of the Buddhist culture. k) Specialty Tourism: The rise in rural, agro, and eco-tourism worldwide finds ample opportunity in Maharashtra with its forests and national parks as well as special areas like Lonar.

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l) Beaches: A 720 km. coastline dotted by beaches in the Sindhudurg and Ratnagiri regions along with a potential to attach culture and nature is one of the main assets for Maharashtra.

2. Weaknesses: a) Long Haul Tourist Dependence : Maharashtra depends highly on the leisure tourist long- haul markets of UK, USA, France and Germany. One of the most prominent disadvantage of a strong long haul market is their unpredictable nature. Any security and safety issues at the destination initiate cancellation of vacations. Effects of economic slowdown and 9/11 are most prominent for the long-haul markets. WTO - Tourism 2020, South Asian Sub-region (of which India forms more that 50 per cent) states: “South Asia region relies on long haul tourists, mostly ultra long- haul tourist (Europe and America). For these tourists, high budgets are necessary. It will be vital for South Asian Countries to consolidate these sources through well-directed and appropriate marketing, and seek to avoid “monoculture” by developing and penetrating other regional sources. b) Mumbai’s Host Ambience : Mumbai represents the most visited destination site of Maharashtra. When tourists land at Mumbai they form their first impression. Mumbai’s poor condition of the Western express highway, touts and beggars creates a very poor host ambience. Most of the tourism experts interviewed, stressed on this aspect being the most important problem area for Mumbai. c) Mumbai’s Transit Destination Status: In spite of having around 50 per cent of tourists visiting India, through Mumbai airport, only 5-8 per cent of international tourists travel to Maharashtra destinations. There are no clear indications whether the tourist spends any time visiting Mumbai attractions.

d) High priced destination: According to the World Travel and Tourism Council (WTTC) research (World Travel and Tourism Tax Policy centre “Key Issues in taxation”), the tax paid

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by tourists in India is around 40 per cent, which is the highest in the world. Mumbai is among the least competitive destinations with the highest tax burdens (Economic Times, 2002). A recent study conducted by AF Ferguson and Co. for FICCI showed that lowering tax rates could increase tourist arrivals. The study reveals that cutting tax by 50 per cent could double the potential number of households who can afford tourism at that level and can actually increase the total revenue for government.

e) Connectivity to destinations: Present leisure tourists looking for value for money and time wants to reach their destinations without time gaps and inconveniences. If a domestic traveller wants to go to Tarkarli, he has to first come to Mumbai and then travel via pre-booked trains or buses. Destination connectivity is grossly lacking. Also majority of the source markets are long- haul, making it necessary that travel time to get to end destinations should be minimal.

f) Mumbai’s Dependence on Business Tourism : Most of the hotels in Mumbai cater to the high return business tourists and have not focused on leisure tourism. According to the Jones Lang LaSalle Hotel report on Mumbai, foreign business travellers primarily drive demand for high-end accommodation.

g) Lack of Innovation: Maharashtra’s tourism products does not cater to the “new experience” requirements of today’s highly aware tourists. The world tourism trends indicate growth of adventure tourism, rural/ethnic tourism (World Tourism Organisation Business Council (WTOBC) Changes in Leisure Time “The Impact on Tourism” 1999).

h) Unfocused Development and Lack of Co-operation: Many contributors to Maharashtra tourism – MTDC, MSRDC, Min. of railways, FMDC, ASI etc. have followed their own objectives and plans and are working on separate platforms. There is lack of an overall vision and

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strategy to for tourism planning and development. Also, lack of cooperation between various governmental organisations involved in tourism creates inconvenience for the tourist. A visit to Ajanta World Heritage Site requires a tourist to purchase as many as 7 tickets due to a distinct jurisdiction issue.

i) Availability of Information: Most obviously, Maharashtra does not have a proactive information strategy to attract a tourist at the decision making point, since most of the tourists worldwide, tap into websites for required information and purchase of products. Hotel websites at 5.5 per cent had the highest growth rate over the previous year especially in the heritage sector where it accounted for 12.4 per cent of all advance reservations. This reflected a dramatic 600 per cent increase over the previous year. Overall increase in web-based reservations reflected a growth of 400 per cent.

j) Lack of Analytical Data: Every vision strategy and policy should be based on analytical data. In the case of tourism, information like destination-wise source, country-wise tourist arrivals, spending patterns etc. would offer an opportunity to make intelligent analysis. Maharashtra does not maintain any such informative data.

k) Lack of Quality Human Resource: Tourism is a people-centric activity. A tourist meets “people” throughout his/her travel and interacts with them for purchases, advice, guidance and services. Thus, the quality of experience a tourist has, is highly dependent on the “human resource” element. In Maharashtra, there is the Institute for Hotel management, Catering Technology and Applied Nutrition at Dadar, as well as university affiliated Garware Foundation that offers travel and tourism courses and small private institutes offer IATA certification courses, ticketing and airline services courses that are mainly operational. But, a scientific human resource policy is absolutely required that singularly focuses on quality only.

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3. Opportunities: a) Domestic Tourism: Domestic tourism’s predictability and controllability has been seen as virtue post 9/11 and is stated for high growth worldwide (Dave, 2002). Worldwide many countries are undertaking initiatives to attract domestic tourism as a tourism growth strategy. Indian Government’s work on the Golden Quadrilateral highway project and North-South and East-West corridors are expected to increase accessibility and promote domestic tourism (GoI, 2002). Also with Maharashtra’s nationally known religious sites and the city of Mumbai, this growing market can be considered as a golden opportunity.

b) Growing Buddhist Populated Source Markets : Growing tourism source countries of Japan, China and neighbouring Sri- Lanka have Buddhist populations (Buddha Dharma Education Association). Their interest in Buddhist architecture and heritage can be an opportunity for Maharashtra to offer them its unique “cave architecture”.

c) Proximity to Economically Growing ASEAN Countries: The economic situation of source markets affects their outbound tourist expenditure. The projected economic growth for emerging markets such as the members of ASEAN or those in Eastern Europe has been maintained or even raised. The proximity to these growing economies is an opportunity to encash on the high spending tourists.

d) China Outbound Market: Although China's outbound tourism market is rarely analyzed, a 1999 survey ranked travelling as third, in all desired expense items among Chinese consumers. China has overtaken Netherlands and Canada in tourist spending and together with Hong Kong, China is becoming increasingly important in terms of expenditure, spending more than even France. It is the second-largest source of travellers in Asia Pacific after Japan – 18 million in the same year.

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e) India’s Tourism Prospects: The WTTC has identified India as one of the world’s foremost tourist growth centres in the coming decade. After Turkey, India is expected to achieve the fastest rate of growth of the total amount of economic activity likely to be generated by travel and tourism, at 9.7 per cent over the next 10 years (WTTC, 2002). The growth in ‘visitor exports’ or spending by international tourists is likely to be the fastest in India at 14.3 per cent per annum over the next decade.

f) Growth in Cultural Tourism: World trends have shown that an increasing number of tourists want a unique cultural experience (WTO Sustainable tourism Development: Guide for Local Planners). Most of Maharashtra’s present source markets of Europe and USA have interest in experiencing the art and culture (WTO Sustainable tourism Development: Guide for Local Planners).

g) Transit Visitors: Most of India’s international visitors use Mumbai as the transit port of entry or exit. This existing captive audience can be converted from transit visitors to tourists. In gross terms, the benefit of this opportunity was explained by Mr. Pradip Madhavji as a $42 million increase in tourism earnings for every additional day spent in Maharashtra by every transit tourist. India’s foreign exchange earnings of around $3 billion from 2.5 million tourists to India implies that approximately $1280 per person was spent in 31 days, i.e. $42 per tourist, per day. For Maharashtra, if 94 per cent of 1.08 million tourists that are in transit, spend an additional one day it means approximate tourist earnings of $38 million per day.

h) Nostalgia and Roots Tourism: Many countries today have a large NRI population e.g. UK, USA, South Africa, Australia etc. Also, WTO has declared the world wide growing trend of nostalgia tourism.

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i) Indian Outbound Market: India’s outbound tourism is approximately 4 million. Malaysia, Dubai, UK, Mauritius, Singapore, China and even Tunisia have tourism offices in India trying to tap the value for money by Indian tourists as well as the MICE market. Tourism boards of various countries are planning to step up their advertising expenditure by about 25 per cent to target Indian outbound travellers who have emerged as the highest spenders. India’s foreign exchange earnings from 2.5 million tourists to India of around $3 billion means approximately per person spend of $1280 spent in 31 days, per day tourist expense of $42. For Maharashtra, 94 per cent of 1.08 million tourists that transit through spend one more day it means approximate tourist earnings of $42 million per day (Business Standard, February 25, 2003). If Maharashtra can offer this class of tourists an opportunity to see added values – experiences, this growing outbound market can be shifted to domestic tourism. Also according to the report of British Tourist Authority, Britain’s primary Indian state source market is Maharashtra with 36 per cent of the Indian outbound market to UK residing in Maharashtra (British Tourist Authority market profile India, July 2002).

j) Business Tourism and MICE Market : An FHRAI study observes that 57 percent of all guests in Indian Hotel Industry comprise of Business Guests. Most of the travel agents interviewed during this research study agreed that business travel had grown in the last couple of years by 10-15 percent annually. The Meeting Incentives Convention Exhibition (MICE) market is growing worldwide, India being no exception. Most of the Southeast Asian countries are tapping the source markets for India namely – Mumbai, New Delhi, Chennai and Bangalore. According to Express Travel and Tourism “The MICE segment will be the important driver for corporate travel in India, enhancing traffic to key cities like Mumbai and Delhi, while increasing traffic to emerging nodal towns like Pune, Hyderabad and Bangalore” (WTTC 2003) The Union Budget’s announcement of the proposed establishment of two global standard international convention centres at an estimated cost of Rs. 1000 crore, one

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being in Mumbai, will be a big boost for the MICE market (Express Travel and Tourism, March 25, 2003).

k) International Airport at Goa: Goa is planning an international airport North Goa, just a few kilometers away from the high tourism potential district of Sindhudurg. Accessibility to this region will certainly assist in increasing tourist interest in this region as also encourage premier hotel groups to provide tourism facilities in Sindhudurg.

4. Threats: a) Perception: An issue that is essential in stabilizing tourism growth is the factor of “perception”. How your present and potential tourist markets perceive the destinations in Maharashtra state is important in defining their travel options. The bomb blasts and scares have caused a tremendous setback to tourism in Maharashtra. The dispersed marketing initiatives do not clearly give an idea to a tourist as to which destination he can choose or visit.

b) Global and National Effects : The comments of Mr. Frangialli, WTO president that, “There is an increasing awareness that risk is no longer associated exclusively with specific destinations; that risk can exist in one’s own backyard”, bring out the global nature of tourism. Recently, WTO news has mentioned the Asian destinations that have not recorded major cases of infection to date, (India, Indonesia, Malaysia, Cambodia, the Philippines, Thailand…) have suffered almost as the areas actually affected, China, Hong Kong and Singapore. Thus, in spite of India being a part of Asia and in close proximity to the affected regions in South East Asia, tourism has been affected drastically. Also, India being such a vast country, the rest of India does not essentially feel the effects of security and safety tensions. Yet , in general, has been affected by such notable incidences.

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c) Safety and Security Issues in Mumbai: In today’s information-savvy and global world, safety and security issues in destinations have prime importance. How present and potential tourist markets perceive the destination, beyond its leisure, fun, shopping etc., image, in terms of health and safety has found prominence after the 9/11 SARS and Gulf War.

d) International Airports at Other Indian Metros: Thiruvananthapuram, Hyderabad and Chennai already have international airports while Goa is on the verge of building one. As these airports will become more popular with leisure and business tourists, offering convenient connecting time, Mumbai might lose out on its transit status.

Economic situations at Source market: The outbound tourism is inevitably linked with the general economic situation of the source market countries. The International Monetary Fund published its World Economic Outlook last September, in which it lowered its economic development projections for most countries. The available figures indicate a generalized reduction in growth among the developed countries, which are the main generators of tourism.

e) Competition from other Indian States: The small cache of foreign tourists visiting India predominantly travel to the five states: Kerala, Rajasthan, Tamil Nadu, Delhi, Maharashtra and Goa. According to DOT data, Maharashtra ranks second in India’s tourist destinations. But that ranking can be attuned to the existence of the international airport at Mumbai. Goa, Rajasthan and Kerala have already initiated the Economic Impact Assessment working with support from WTO and WTTC. Kerala has initiated the Vision 2025 for long-term sustained tourism development. These states depend highly on the upcoming tourism industry. With international airports within the state and large scale charter flights, all have accessibility support. The governments in these states have directly supported tourism in a big way through large budgets and promotions. Maharashtra faces competition from these states in the areas of Heritage tourism, Special Interest Tourism – Backwater, Palaces and beach tourism.

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(Source:“http://planningcommission.nic.in/plans/stateplan/sdr_maha/ch-12-14-02- 05.pdf”, referred on 23 rd May, 2011.)

SWOT Analysis in Nutshell

STRENGTHS WEEKNESSES

• South Mumbai • Long Haul Tourist Dependence • International Airport • Mumbai’s Host Ambience • Bolleywood • Mumbai’s Transit Destination Status • Commercial Capital • High Priced Destination • Connectivity to Destinations • Amusement Parks • Mumbai’s Dependence on Business • Sea Forts Tourism • Maharashtra Residents • Lack of Innovation • Nationally known Religious Sites • Unfocused Development and Lack of • Tangible and Intangible Culture Co-operation • Rich Buddhist Cave Architecture • Information Availability Heritage • Lack of Analytical Data • Specialty Tourism • Lack of Quality Human Resource • Beaches OPPORTUNITIES THREATS

• Domestic Tourism • Perception • Growing Buddhist Populated Source • Global and National Effects Markets • Safety and Security Issues in Mumbai • Proximity to Economically Growing • International Airports at Other ASEAN Countries • China Outbound Market Indian Metros • • India’s Tourism Prospects Competition from other Indian States: • Growth in Cultural Tourism • Transit Visitors • Nostalgia and Roots Tourism • Indian Outbound Market: • Business Tourism and MICE Market

International Airport at Goa

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4.6. Conclusion:

In line with the decision of the Central Government, the State Government has established MTDC as a State body to take care of state tourism, professionally. To increase the efficiency, the government has set up a separate Ministry, and given one State tourism mister and an IAS officer as a Principal Secretary of Tourism, for assistance and smooth functioning of the same. As a result of this, MTDC has done an excellent and noteworthy job, within its permitted range of activities. The task of developing tourism in the State has been done very effectively and efficiently. The figure shows that Maharashtra is the third choice of the foreign tourists.

To march little ahead and excel in its functioning, MTDC has done its SWOTs. It has helped in identifying the objectives, constraints and the chances of achieving the expected targets.

To conclude, it can be said that, though MTDC has not achieved ‘the brand’ status, and has not reached all the tourist destinations in the State, the work done so far by it is certainly satisfactory and encouraging.

Like MTDC other states have also started their state agencies for the promotion and development of tourism. Goa Tourism Development Corporation (GTDC) is the state agency of Government of Goa. Inspite of size constraints, GTDC has exploited all the possible opportunities in the field of tourism.

In order to know more information about GTDC the researcher has made an attempt to provide maximum details in the next chapter.

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