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Regional Tourism Satellite Account Andhra Pradesh, 2009-10 Study Commissioned by the Ministry of Tourism, Government of India Prepared By National Council of Applied Economic Research 11, I. P. Estate, New Delhi, 110002 © National Council of Applied Economic Research, 2014 All rights reserved. The material in this publication is copyrighted. NCAER encourages the dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the publisher below. Published by Anil Kumar Sharma Acting Secretary, NCAER National Council of Applied Economic Research (NCAER) Parisila Bhawan, 11, Indraprastha Estate, New Delhi–110 002 Email: [email protected] Disclaimer: The findings, interpretations, and conclusions expressed are those of the authors and do not necessarily reflect the views of the Governing Body of NCAER. Regional Tourism Satellite Account–Andhra Pradesh, 2009-10 STUDY TEAM Project Leader Poonam Munjal Senior Advisor Ramesh Kolli Core Research Team Rachna Sharma Amit Sharma Monisha Grover Praveen Kumar Shashi Singh i Regional Tourism Satellite Account–Andhra Pradesh, 2009-10 ii Regional Tourism Satellite Account–Andhra Pradesh, 2009-10 PREFACE Tourism is as important an economic activity at sub-national level as it is at national level. In a diverse country like India, it is worthwhile assessing the extent of tourism within each state through the compilation of State Tourism Satellite Account (TSA). The scope of State TSAs goes beyond that of a national TSA as it provides the direct and indirect contribution of tourism to the state GDP and employment using state-specific demand and supply-side data. NCAER, the National Council of Applied Economic Research, was commissioned by the Ministry of Tourism in the Government of India in 2013 to compile the Regional Tourism Satellite Accounts for all the states and UTs of India for the year 2009–10. NCAER had earlier successfully compiled both the first and second TSA for India. NCAER was requested to supplement the second national TSA for 2009-10 with state accounts in order to have a more complete understanding of the tourism sector. The present report is a part of 3-year integrated plan to prepare the regional Tourism Satellite Accounts for all the states and UTs of India. Across the globe, TSAs at the sub-national level are increasingly becoming necessary. According to the United Nations World Tourism Organization (UNWTO), there are various reasons for encouraging countries to develop sub- national or regional TSAs. One of the main reasons is a worldwide trend towards a decentralization of political power and decentralized management of national resources in federal states, regions and municipalities. In order to allocate and monitor these resources effectively, more and better integrated regional and local information are required. Also, the unequal geographical distribution and characteristics of tourism activity within a national territory, from the standpoint of both demand and supply, lead to additional requirements for tourism statistics at various territorial levels. Besides, there is a great necessity for improving the allocation of resources in national and local economies, which can only be achieved by upgrading data and measuring economic impact. In the absence of standard international guidelines to prepare sub-national TSAs, NCAER has compiled the state TSAs along the same lines as national the TSA, despite several data limitations. These limitations have been overcome by using the most logical rates and ratios based on reasonable assumptions. I would like to thank the agencies that provided the underlying data for the TSA 2009-10, especially the National Sample Survey Office, the Indian Statistical Institute, and Central Statistical Office (CSO). NCAER is particularly grateful to iii Regional Tourism Satellite Account–Andhra Pradesh, 2009-10 several Ministry of Tourism officials, Shri R.K. Bhatnagar, Additional Director- General, Mr Shailesh Kumar, Deputy Director, Smt. Mini Prasanna Kumar, Joint Director and Shri S.K. Mohanta, Data Processing Assistant – Grade B for their valuable inputs and administrative support during the preparation of the state TSAs. In ending, I’d like to thank the team members Shri Ramesh Kolli, Senior Advisor; Dr Poonam Munjal, Team Leader, Ms. Rachna Sharma, Associate Fellow, Shri Amit Sharma, Research Analyst, Ms. Monisha Grover, Consultant, and Shri Pravin Kumar, Research Associate who all worked tirelessly to produce India’s first State Tourism Satellite Accounts. New Delhi Shekhar Shah October 30th, 2014 Director-General NCAER iv Regional Tourism Satellite Account–Andhra Pradesh, 2009-10 ACKNOWLEDGEMENT We would like to thank the officials of The Ministry of Tourism (MoT) for their valuable inputs during the project review meetings and presentations. In particular, we are immensely grateful to Dr. R.K. Bhatnagar (ADG, Market Research, MoT) and Shailesh Kumar (Deputy Director, Market Research, MoT). The study also benefited immensely from the important inputs from Shri Parvez Dewan (Secretary, MoT) and Shri Girish Shankar (Addl. Secretary, MoT) apart from the other officials of State Tourism Departments. v Regional Tourism Satellite Account–Andhra Pradesh, 2009-10 vi Regional Tourism Satellite Account–Andhra Pradesh, 2009-10 ABBREVIATIONS AND ACRONYMS Units used in the Report 1 crore = 10 million 1 lakh = 100 thousand Abbreviations CES Consumer Expenditure Survey CFC Consumption of Fixed Capital CIF/cif Cost, insurance and freight (valuation of imports) COE/CoE Compensation of Employees COICOP Classification of Individual Consumption According to Purpose CPC Central Product Classification (United Nations) CSO Central Statistical Office DTS Domestic Tourism Survey Eurostat Statistical Office of the European Union EUS Employment and Unemployment Survey FISIM Financial Intermediation Services Indirectly Measured GCE/GFCE Government Final Consumption Expenditure GDP Gross Domestic Product GO Gross output GVA Gross Value Added GVATI Gross Value Added of Tourism Industries HCE Household consumer expenditure IC Intermediate consumption IC - PP Intermediate consumption at purchasers’ price IMF International Monetary Fund IPS International Passenger Survey IRTS International Recommendations on Tourism Statistics ISI Indian Statistical Institute ISIC International Standard Industrial Classification (United Nations) ISWGNA Inter-secretariat Working Group on National Accounts vii Regional Tourism Satellite Account–Andhra Pradesh, 2009-10 Abbreviations MI Mixed Income MRP Mixed reference period MNREGA Mahatma Gandhi National Rural Employment Guarantee Act MPCE Monthly per capita consumer expenditure NAS National Accounts Statistics (of India) NCAER National Council of Applied Economic Research NIT Net Indirect tax NPISH Non Profit Institutions Serving Households NRI Non-Resident Indian NSO National Statistical Office NSSO National Sample Survey Office OECD Organisation for Economic Cooperation and Development OS Operating Surplus OS/MI Operating Surplus/Mixed Income PFCE Private Final Consumption Expenditure PP Purchasers price PIO People of Indian Origin RMF Recommended Methodological Framework Rs. Indian Rupees SNA System of National Accounts SUT Supply and Use Tables TDGDP Tourism Direct Gross Domestic Product TDGVA Tourism Direct Gross Value Added TSA Tourism Satellite Account TSA:RMF Tourism Satellite Account: Recommended Methodological Framework TTM Trade and transport margins UN United Nations UNSC United Nations Statistical Commission UNWTO United Nations World Tourism Organisation VAT Value Added Tax WTO World Tourism Organisation viii Regional Tourism Satellite Account–Andhra Pradesh, 2009-10 CONTENTS Study Team i Preface iii Acknowledgement v Abbreviations and Acronyms vii List of Tables xi List of Figures xiii 1. Introduction 1 About Tourism 1 Some Definitions of Tourism 1 UNWTO Definition 2 Tourism - World 2 Tourism – India 3 Tourism – Andhra Pradesh 4 Measurement of Tourism 5 Satellite Accounts 6 Tourism Satellite Account 7 Uses and Applications of TSA 8 Regional Tourism Satellite Account 9 Structure of the Report 10 2. Profile of the State 13 Geographic Profile 13 Climate Profile 13 Historical Background 14 Demographic and Social Profile 17 Society 20 Economic Profile 21 Structure of the Economy 21 Tourism 23 3. Data Sources and their Key Findings 29 Data Sources 29 Domestic Tourism Survey (DTS) 29 Use of DTS in preparation of state TSA 31 ix Regional Tourism Satellite Account–Andhra Pradesh, 2009-10 DTS– key findings for AP 31 International Passenger Survey (IPS) 33 IPS – Key Findings for AP 34 Employment and Unemployment Survey 37 Use of EUS data in preparation of State TSA 37 Household Consumer Expenditure Survey 40 Use of CES data in preparation of State TSA 41 State GDP Accounts 44 4. Methodology 47 Tourism Satellite Account 47 Expenditure or Demand Side Data 47 Production or Supply side data 48 Compilation of State TSAs 50 Inbound Tourism Expenditure 51 Inbound Tourism Expenditure by international tourists 51 Inbound Tourism Expenditure by Domestic Tourists Belonging to Other States 52 Inbound tourism expenditure 53 Domestic Tourism Expenditure 59 Outbound Tourism Expenditure 64 Total Internal Tourism Consumption 68 Production Account of Tourism Industries 70 Tourism Industry Ratios and TDGVA 71 Employment in Tourism Industries 78 Non-monetary Indicators 79 5. TSA Tables and
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