Action Plan to Increase Flow of Foreign Tourists Visiting India from 3 Mn to 15 Mn in 5 Years Time, 20 Mn in 8 Years Time and 25 Mn in 10 Years Time
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`Confidential Action Plan to increase Flow of Foreign Tourists visiting India from 3 mn to 15 mn in 5 years time, 20 mn in 8 years time and 25 mn in 10 years time Final Report Ministry of Tourism Government of India By ACNielsen ORG-MARG Pvt. Ltd New Delhi December, 2007 Ministry of Tourism ACNielsen ORG-MARG LIST OF CONTENTS Title Page No Executive Summary Chapter One - Introduction 1 1.0 Background 1 1.1 Research Aim 3 1.2 Research Objectives 3 1.3 Scope of Work 3 1.4 Research Design / Methodology 5 Chapter Two - Current Status of Tourism Industry worldwide 11 2.1. Overview 11 2.2. Global Tourism Trends upto the year 2005 11 2.2.1. Global Tourist Arrivals 11 A. Europe 12 B. Asia - Pacific 13 C. Americas 14 D. Africa 15 E. Middle East 16 2.2.2. Seasonality of Tourist Traffic Flow 16 2.3. Top destinations across the world 17 2.4. Case Study of few countries which have set examples in recent times 18 2.4.1. U.S.A. 18 2.4.2. Canada 20 2.4.3. France 22 2.4.4. Spain 25 2.4.5. China 26 2.4.6. Macau 29 2.4.7. Australia 31 2.4.8. Malaysia 34 2.4.9. Singapore 36 2.4.10. Thailand 38 2.4.11. United Arab Emirates 41 2.4.12. Mauritius 43 Chapter Three - Current Status of Indian Tourism Industry 46 3.1 Overview 46 3.2. India as a foreign tourist destination 47 3.3. Trends in foreign tourist arrivals 47 3.4. Prime states and destinations visited 49 Chapter Four - Tourism products, Policy and Promotion issues – An Evaluation 52 4.1 Overview 52 4.2 Tourism products 52 Action Plan to raise no. of Foreign tourists visiting India Draft Report I Ministry of Tourism ACNielsen ORG-MARG LIST OF CONTENTS Title Page No 4.3 Strategies adopted to promote specific tourism products 66 Heritage Tourism:- 66 Wildlife Tourism 66 Eco-Tourism 66 Medical Tourism 66 Adventure Tourism 67 Rural Tourism 67 MICE Tourism 68 Buddhist Circuit 70 4.4 Communication mode adopted 70 4.5 Policy evaluation 73 4.5.1 Policy on integrated development of tourist circuits and destinations 73 4.5.2 On private public participation 76 4.6 Promotional Issues 78 4.6.1 Steps taken to promote India as an unique destination 78 4.6.2 To attract foreign tourists to different states 80 4.7 Policy to make a domestic tourism product popular across the country 85 4.8 Setup in the State / Central Government to promote tourism 85 4.9 Bottlenecks faced 88 4.9.1 In relation to the Tourism products 88 4.9.2 Policy Matters 88 4.9.3 Promotional Issues 88 Chapter Five – Infrastructural Amenities – An evaluation 89 5.1 Overview 89 5.2. Prelude 89 5.3. Rail Network 89 5.3.1. Facilities for foreign tourists 91 5.3.1.1. Tourist Bureau 91 5.3.1.2. Reservation Quota 91 5.3.1.3. Indrail Passes 91 5.3.1.4. IRCTC Specials 92 5.3.1.5. Online Bookings 97 5.3.1.6. The way forward 97 Action Plan to raise no. of Foreign tourists visiting India Draft Report II Ministry of Tourism ACNielsen ORG-MARG LIST OF CONTENTS Title Page No 5.4. Road Infrastructure 98 5.4.1. Foreign Tourist arrival by Land 100 5.4.2. Available modes of transport 101 5.4.3. The way forward 102 5.4.4. Perceived bottlenecks 103 5.5. Air Infrastructure – an evaluation 104 5.5.1. Available Airport Infrastructure 105 5.5.2. Landing capacity 105 5.5.3. Foreign Tourist arrival by Air 107 5.5.4. International Traffic flow in major airports of India 107 5.5.5. Bilateral Air Service Agreements 108 5.5.6. The Way forward 117 5.6. Sea and Water Ways Infrastructure 119 5.6.1. Foreign tourist arrivals by sea 119 5.6.2. Cruise Tourism – Potential and current status 120 5.7. An Overview of Connectivity – at a glance 120 a. Heritage Tourism 121 b. Wildlife Tourism 126 c. Eco-Tourism 128 d. Medical Tourism 129 e. Adventure Tourism 131 f. Rural Tourism 137 g. MICE Tourism 141 h. Buddhist Circuit 143 5.8. Accommodation Facility 148 5.8.1. Status of available accommodation facility 148 5.8.2. Overview of accommodation facilities available 150 5.8.3. The way ahead 158 5.9. Facilitation Norms 159 5.9.1. Procedural requirements 159 5.9.2. Tourist Visa 160 5.9.3. Conference Visa 160 5.9.4. Transit Visa 160 5.9.5. Visa fees 161 5.10. Tourism Service providers 162 5.11. Services provided 163 5.12. Taxation structure 164 5.13. Tourism related Training 165 5.13.1. No. of Institutes/ Courses being offered 165 5.14. Bottlenecks faced 166 Action Plan to raise no. of Foreign tourists visiting India Draft Report III Ministry of Tourism ACNielsen ORG-MARG Title Page No Chapter Six - Feedback - Tourists, Travel Agents and Experts 168 6.1 Overview 168 6.2. Feedback from the foreign tourists 168 6.2.1. Profile of the Tourists 168 6.2.2. Source of Information about India 169 6.2.3. India’s image as a destination 170 6.2.4. Motivation behind visiting India 171 6.2.5. Satisfaction level w.r.t various facets of services 172 6.2.5.1. At Gateway of Entry 172 6.2.5.2. At Hotel Lobby 173 6.2.5.3. At exit Points 173 6.3. Discussions with Tour Operators/Agents at Prime Destinations 174 6.3.1. Major Problems faced by foreign tourists – from tour operators 175 6.3.2. Suggested steps to increase flow of tourists 175 6.3.3. Key Tourism products as suggested by the Tour operators 175 6.4. Discussion with various Tourism Boards 176 6.4.1. Hong Kong Tourism Board 176 6.4.2. Singapore Tourism Board 178 6.4.3. Macau Government Tourist Office (India Representative) 179 Chapter Seven – Estimates of Foreign tourist flow in India 181 7.1 Overview 181 7.2. History of foreign tourist arrivals in India 181 7.3. What can be the future trend w.r.t Foreign tourist arrivals 181 7.3.1. What can be the likely implications 182 7.3.2. Can a growth rate above 20% be achieved in foreign tourist arrivals? 183 7.3.3. How these countries achieved a robust growth rate? 184 7.3.4. How are we placed against those countries? 187 7.3.5. Conclusion 187 Chapter Eight -- Action Plan to augment flow of Foreign Tourists 188 8.1 Overview 188 Strengths 188 Weaknesses 188 Opportunities 189 Threats 189 8.2. Whom can we target? 189 8.2.1. Composition of Foreign Tourists visiting India 189 8.2.2. Which countries to target and why 190 8.2.3. What can be the target no. of visitors from target countries if we are to achieve 25 Mn 191 8.2.4. What tourism products can be the targeted 192 Action Plan to raise no. of Foreign tourists visiting India Draft Report IV Ministry of Tourism ACNielsen ORG-MARG 8.2.5. Estimated Targets – Assuming 16.9 Million Foreign Tourist arrivals 193 8.2.6. Estimated Targets – Assuming 16.9 Million Foreign Tourist arrivals 194 Chapter Nine : Roadmap to augment flow of Foreign Tourists 195 Chapter Ten : An Overview of the Tourism Circuits/ Destinations 202 Agra – Fatehpur Sikri – Mathura – Vrindavan Circuit 202 Ajmer 208 The Badami-Halebid-Aihole Circuit 212 The Bodhgaya-Nalanda-Rajgir circuit 216 Delhi 221 Dwarka 227 Goa 230 Hampi 237 Hyderabad 241 Jagannath Puri – Bhuvansehwar – Konark – Chilika Circuit 246 Jagdalpur-Tirathgarh-Chitrakote-Barsoo Circuit 251 Mahabalipuram 259 Rishikesh-Haridwar circuit 261 Varanasi - Sarnath 265 Elephanta Caves 270 Chapter Eleven : Destination/ Circuits – benchmarking, new concepts and marketing 273 Overview 273 Benchmarking with overseas destination 273 Theme that can be woven round the destination/ circuit 285 Product to be developed and infrastructure requirement 285 Target markets 290 Marketing strategy 291 Chapter Twelve : Estimates 292 Overview 292 Traffic Estimates 292 Revenue potential estimates 292 Broad level costing Estimates 293 Investment Recommendations 294 Action Plan to raise no. of Foreign tourists visiting India Draft Report V Ministry of Tourism ACNielsen ORG-MARG Executive Summary 1. Foreign Tourist Arrival Trends India vs World - An Overview The top ten countries which have been The tourism industry in India has shown contributing to inbound tourism in the healthy signs of growth in the recent years. In past few years are U.K., U.S.A., Canada, France, Sri Lanka, Germany, Japan, 2004, India ranked 47th in world tourist Malaysia, Australia and Italy. During arrivals with around 3.46 million tourists 2004, all the ten tourist generating visiting the country. Moreover, foreign countries, registered positive growth. exchange earnings from tourism have been Maximum increase was registered in the increasing at a gradual rate. In 2005, the case of Germany (51.8%) followed by estimated foreign exchange earnings were to Italy (39.8%). Also, Spain, which is the tune of 5731 million dollars (US$), which among the top fifteen markets for India, is an increase of 20.2% from previous year. registered a higher growth than Italy Also, one of the interesting features of foreign with around 40.4% increase in tourist exchange earnings from tourism in 2005 has arrivals in 2004. The chart below shows been the per tourist exchange earnings in the country wise trends in tourist India.