1. Dissertation project
Ameya Waghmare 10020241006
SIIB MBA Marketing 2010 – 2012
TOURISM INDUSTRY IN INDIA

2. GDP: Direct Contribution
The direct contribution of Travel &Tourism to GDP is expected to be
INR1,570.5bn (1.9% of total GDP) in 2011, rising by 8.1% pa to
INR3,414.8bn (2.0%) in 2021 (in constant 2011 prices)
GDP: Total Contribution
The total contribution of Travel &Tourism to GDP, including its wider
economic impacts, is forecast to rise by 8.8% pa from INR3,680.4bn (4.5% of
GDP) in 2011 to INR8,523.1bn (4.9%) by 2021.

3. Employment: Direct Contribution
Travel & Tourism is expected to support directly 24,931,000 jobs (5.0% of
total employment) in 2011, rising by 2.0% pa to 30,439,000 jobs (5.2%) by
2021.
Employment: Total Contribution
The total contribution of Travel & Tourism to employment, including jobs
indirectly supported by the industry, is forecast to rise by 2.3% pa from
37,655,000 jobs (7.5% of total employment) in 2011 to 47,480,000 jobs (8.1%)
by 2021.

4. Visitor Exports
Travel & Tourism visitor exports are expected to generate INR678.6bn (3.8%
of total exports) in 2011, growing by 11.4%pa (in nominal terms) to
INR1,344.7bn (2.1%) in 2021.
Investment
Travel & Tourism investment is estimated at INR1,233.0bn or 4.7% of total
investment in 2011. It should rise by 8.7% pa to reach INR2,827.5bn (or
4.8%) of total investment in 2021.

5. INDIA’S TOURISM REVENUE AND
EXPENDITURE 1990 - 2010

6. WHERE INDIA STANDS GLOBALLY
(1996)

7. KEY TOURISM STATISTICS

8. PESTLE ANALYSIS

9. • Government is the backbone of the entire tourism industry and should
support the private players
• Government charges high rates of taxes on the luxury and the star
category hotels
• A luxury tax of 10% followed by VAT and other service taxes of approx. 10% (on
food, beverages, etc.) makes hotel business in India very costly.
• Because the political environment is not conducive, Kashmir and North-
East have suffered from tourism revenue despite the high potential they
possess
• Following Godhra riots, Gujarat experienced reduced tourists to the state
• After years, government decided to privatize airports and now India can
boast of good airports like IGI, Delhi and Rajiv Gandhi International at
Hyderabad
POLITICAL

10. • Growth in income levels in most developing nations and more idle cash with
citizens of developed nations has increased tourism all over the world
• There have been more people coming into the country with more cash than
ever before.
• International tourists as well as domestic tourists have grown with time
• India has witnessed an amazing rise in the number of people travelling by air
in the last decade
• Luxury hotels have witnessed a spurt of tourists preferring to stay
ECONOMIC

11. INTERNATIONAL TOURIST
ARRIVALS

12. INDIAN DOMESTIC AIR TRAFFIC
Source: Airports Authority of India

13. • From the late 60's to the early 80's when the Hippy culture was at its
height, Goa was a haven for such hippies.
• This had a ripple effect on the country.
• People became cautious, especially of the international tourists.
SOCIAL

14. • However some places such as Kerala and Rajasthan have been able to
strike a balance between their own culture and the demands of the
international tourists and have profited handsomely in the bargain.
• People themselves have started traveling and are willing to travel to a place
that is out of the way and exotic.
• Now places like Leh and Lakshwadeep are mentioned in the same breath
as Goa or Kashmir.
SOCIAL

15. With respect to taxation, the World Travel and Tourism Council has observed
that
“Tax paid by tourists in India is the highest in the world. Indian hotels charge about 40%
tax compared to other Asian countries where it varies between 3% and 6%".
• Further, there is considerable disparity between state level taxes, especially
on food and beverages
• Sales tax on imported beverages stands at 63% in Karnataka and 28% in
West Bengal
LEGAL

16. • Eco-tourism policies and Guidelines have been formulated by the
Government in consultation with the industry and are being implemented
on a voluntary basis.
• The National Policy on Tourism lays emphasis on sustainable
development of tourism.
• The Wild life Protection Act 1972, the Environment (Protection) Act
1986, and Prevention of Cruelty to Animals Act 1986 are being
implemented.
LEGAL

17. • Although technology does not seem to be a major influence at first glance,
it plays a major part in the promotion of a place.
• Travel companies have to now focus on Search Engine Optimization
(SEO) like never before to improve their visibility.
• Reading, researching about a place, flight and hotel bookings, maps,
reviews, designing itinerary is done completely online by visitors before
travelling
TECHNOLOGICAL

18. SWOT ANALYSIS

19. • India's geographical location, a culmination of deserts, forests, mountains,
and beaches.
• Diversity of culture i.e. a blend of various civilizations and their traditions.
• Such diversity helps in selling niche areas of tourism like culture tourism,
food tourism, herbal tourism, eco tourism, wildlife tourism and adventure
tourism
• A wealth of archaeological sites and historical monuments.
STRENGTHS

20. List of countries with 20 or more World Heritage Sites
Country Number of sites
Italy 47
Spain 43
China 41
France 37
Germany 36
Mexico 31
India 28
United Kingdom 28
Russia 24
United States 21
UN’S WORLD HERITAGE SITES

21. • Lack of adequate infrastructure. The airlines in India, for example, are
inefficient and do not provide basic facilities at airports. The road
condition in India is very bad. India has one of the highest fatal road
accidents in the world.
• A xenophobic attitude among certain sections of people.
• No proper marketing of India's tourism abroad.
• There are many places where the image of India is one of poverty,
superstition, and diseases.
WEAKNESSES

22. OPPORTUNITIES
• Allowing entry of more multinational companies into the country giving us
a global perspective.
• Growth of domestic tourism. The advantage here is that domestic tourism
and international tourism can be segregated easily owing to the difference
in the period of holidays.
• Selling niche areas of tourism owing to diversity of all sorts.
• Improved conditions of roadways could attract more people

23. • Political turbulence or civil commotion taking place in neighboring
countries that affect the image of entire South Asia
• Aggressive strategies adopted by other countries like Australia, Singapore
and Canada in promoting tourism. The Government of Nova Scotia even
went ahead with a website for a hoax phone named
www.pomegranatephone.com to promote tourism in Nova Scotia, Canada.
THREATS

24. CONCLUSIONS

25. • Goods
• Services
• Events
• Experiences
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas
WHAT ENTITY IS BEING SOLD OUT OF
THE FOLLOWING IN TOURISM?

26. • It is not ‘Places’, ‘Properties’ or ‘Ideas’ that are being sold.
• Selling tourism involves selling ‘Experience’!
• The success stories from around the world confirm the same
• The recommendations (on next slides) could help boost revenue from
tourism in India

27. ALLOW CORPORATES TO SPONSOR
HERITAGE BUILDINGS
Baradari palace, Patiala maintained by Neemrana Hotels.
Image Credit: Panoramio

28. CREATE EXPERIENCES, NOT SIGHT-
SEEING SPOTS
Grand Canyon Skywalk: Creates an experience and not just a sight seeing spot
Image Credit: Panoramio

29. BUILD GREAT ACCESS POINTS
Horseshoe bend near Grand Canyon: A special access point was created to encourage more visitors
Image Credit: Panoramio

30. AGGRESSIVE TOURISM MARKETING
The phone that was magical! But never existed… For promotion of Nova Scotia
Image Credit: SMDBits

31. SELL NICHE TOURISM
Various forms of tourism like adventure, wildlife, eco can be promoted in India owing to huge diversity.
Image Credit: Pruned Blog

32. • Lonely Planet
• United Nations
• World Bank
• Airport Authority of India
• Ministry of Tourism, India
• World Tourism Organization
• Travel Industry Association of America
• National Geographic Channel
• Conde Nast Traveller
REFERENCES