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Inbound Tourism : Performance Indicators 12 and Policy Initiatives by Goi

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Inbound Tourism : Performance Indicators 12 and Policy Initiatives by Goi Reigniting Destination Appeal Acknowledgments: The report has been prepared by Dr. Suparna Karmakar under the overall supervision of Rahul Chakravarty, Additional Director, FICCI. FICCI acknowledges the effort put in by Dr. Karmakar and the care and caution taken in compiling this report. The information contained herein has been obtained from sources believed to be reliable. Both FICCI and the consultant disclaim all warranties as to the accuracy, completeness or adequacy of such information, and shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. Neither FICCI nor the consultant accepts any liability for any direct, consequential or perceived loss arising from the use of this report or its contents. Acknowledgments: The report has been prepared by Dr. Suparna Karmakar under the overall supervision of Rahul Chakravarty, Additional Director, FICCI. FICCI acknowledges the effort put in by Dr. Karmakar and the care and caution taken in compiling this report. The information contained herein has been obtained from sources believed to be reliable. Both FICCI and the consultant disclaim all warranties as to the accuracy, completeness or adequacy of such information, and shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. Neither FICCI nor the consultant accepts any liability for any direct, consequential or perceived loss arising from the use of this report or its contents. Table of Contents Executive Summary 2 I. Introduction 10 II. Inbound Tourism : Performance Indicators 12 and Policy Initiatives by GoI III. Beyond Incredible India: Marketing and 20 Tourism Initiatives in Selected States IV. Promoting India as a Tourism Hotspot: 34 Policy Way Forward Table of Contents Executive Summary 2 I. Introduction 10 II. Inbound Tourism : Performance Indicators 12 and Policy Initiatives by GoI III. Beyond Incredible India: Marketing and 20 Tourism Initiatives in Selected States IV. Promoting India as a Tourism Hotspot: 34 Policy Way Forward Executive Summary Executive Summary Foreign exchange earnings (FEE) from tourism grew by 19.8 percent in rupee terms in February 2013 as compared to February 2012, although the FTA growth was much lower; this also indicates an impressive growth in the Executive Summary exchange earnings per tourist that was realised despite the ongoing slowdown in developed country markets, an increase in the cost of travelling The launch of Incredible India campaign in the last decade resulted in a and a fluctuating exchange rate. Foreign tourists tend to spend more in India visible spurt in the flow of foreign tourists into India and earnings therefrom than almost any other country worldwide. These are positive signs for the (see Charts for FTAs and FEE below), which grew at double digit rates until industry, and indicate significant potential going forward. the onset of the financial crisis in 2008. The growth trend resumed after a Chart: Foreign Exchange Earnings (FEE) from Tourism in India, 2002-2012 couple of years of slowdown after 2008, and notwithstanding the FTA growth rate see-saw in recent times, foreign tourist inflows in India is 50 predicted to grow at an average annual rate of 8.8 percent in the coming decade. A 2011 forecast of the World Travel and Tourism Council (WTTC) 40 predicted that FTAs will cross 11 million by 2021 (approximately one percent of the global tourist population). This is being boosted by the steady rise in T- 30 VoAs in the country. During the month of February 2013 the number of Visa FEE from Tourism in on Arrival (T-VoA) tourists registered a growth of 54.6 percent as compared 20 India (inUS$ billion) to the T-VoAs issued in the month of February 2012. Percentage change 10 over previous year Chart: Foreign Tourist Arrivals (FTAs) in India, 2002-2012 -5 2 3 4 5 6 7 8 9 * * )* 0 0 0 0 0 0 0 0 0 1 n 30 0 0 0 0 0 0 0 0 1 1 u 2 2 2 2 2 2 2 2 0 0 -J 2 2 n -10 Ja ( 2 25 01 2 20 Source: RBI and Ministry of Tourism, GOI; Note: * advance estimates 15 FTAs in India (in million) Source country breakup and Foreign Tourist Preferences 10 Percentage change over previous year 5 In 2011, India's share in international tourist flows was 0.64 percent of world travelers (India's share in the international tourism receipts was relatively 0 higher at 1.61 percent in 2011), and 2.9 percent of travelers from Asia-Pacific 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -5 (share in tourism receipts being 5.72 percent). All these shares have been steadily rising since 2002, and were not significantly affected by the 2008 -10 financial crisis. The Travel and Tourism Competitiveness Report of 2012 by the World Economic Forum ranks India 12th in the Asia-Pacific Region and 68th Source: Bureau of Immigration and Ministry of Tourism, GOI globally; the report is very bullish on India's tourism growth outlook. 2 India as a Hotspot for Inbound Tourism India as a Hotspot for Inbound Tourism 3 Foreign exchange earnings (FEE) from tourism grew by 19.8 percent in rupee terms in February 2013 as compared to February 2012, although the FTA growth was much lower; this also indicates an impressive growth in the Executive Summary exchange earnings per tourist that was realised despite the ongoing slowdown in developed country markets, an increase in the cost of travelling The launch of Incredible India campaign in the last decade resulted in a and a fluctuating exchange rate. Foreign tourists tend to spend more in India visible spurt in the flow of foreign tourists into India and earnings therefrom than almost any other country worldwide. These are positive signs for the (see Charts for FTAs and FEE below), which grew at double digit rates until industry, and indicate significant potential going forward. the onset of the financial crisis in 2008. The growth trend resumed after a Chart: Foreign Exchange Earnings (FEE) from Tourism in India, 2002-2012 couple of years of slowdown after 2008, and notwithstanding the FTA growth rate see-saw in recent times, foreign tourist inflows in India is 50 predicted to grow at an average annual rate of 8.8 percent in the coming decade. A 2011 forecast of the World Travel and Tourism Council (WTTC) 40 predicted that FTAs will cross 11 million by 2021 (approximately one percent of the global tourist population). This is being boosted by the steady rise in T- 30 VoAs in the country. During the month of February 2013 the number of Visa FEE from Tourism in on Arrival (T-VoA) tourists registered a growth of 54.6 percent as compared 20 India (inUS$ billion) to the T-VoAs issued in the month of February 2012. Percentage change 10 over previous year Chart: Foreign Tourist Arrivals (FTAs) in India, 2002-2012 -5 2 3 4 5 6 7 8 9 * * )* 0 0 0 0 0 0 0 0 0 1 n 30 0 0 0 0 0 0 0 0 1 1 u 2 2 2 2 2 2 2 2 0 0 -J 2 2 n -10 Ja ( 2 25 01 2 20 Source: RBI and Ministry of Tourism, GOI; Note: * advance estimates 15 FTAs in India (in million) Source country breakup and Foreign Tourist Preferences 10 Percentage change over previous year 5 In 2011, India's share in international tourist flows was 0.64 percent of world travelers (India's share in the international tourism receipts was relatively 0 higher at 1.61 percent in 2011), and 2.9 percent of travelers from Asia-Pacific 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -5 (share in tourism receipts being 5.72 percent). All these shares have been steadily rising since 2002, and were not significantly affected by the 2008 -10 financial crisis. The Travel and Tourism Competitiveness Report of 2012 by the World Economic Forum ranks India 12th in the Asia-Pacific Region and 68th Source: Bureau of Immigration and Ministry of Tourism, GOI globally; the report is very bullish on India's tourism growth outlook. 2 India as a Hotspot for Inbound Tourism India as a Hotspot for Inbound Tourism 3 The rising FTA flows is clearly a function of the stellar growth performance of which promoted India's culture and tourist attractions in a fresh and memorable the Indian economy in the new century. An important outcome of the rising way projecting India as an attractive tourist destination by showcasing different economic growth in India has been that MICE has emerged as one of the major aspects of Indian culture and history like yoga, spirituality, etc. The campaign, tourism products, along with pilgrimage travel and health tourism, and is one of launched in 2002 to encourage visitors from around the world to experience the reasons why India is considered to be one of the most promising markets in India helped create a colorful image of India in the minds of consumers, and has tourism in the near future. These sectors show a lot of potential in the coming directly led to an increase in the interest among foreign tourists. This is reflected years. in the spurt in global tourist inflows since 2002. The breakup of source country for FTA origin for 2011 indicate that US led with a In 2008, the Ministry of Tourism launched a campaign targeted at the local 16 percent share in total FTA arrivals, followed by UK (12.57 percent), population to educate them regarding good behavior and etiquette when Bangladesh (6.34 percent), Sri Lanka (4.85 percent), and Canada (4.05 percent).
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