SR NO. TOPICS PAGE NO

1 DEMAND DETAILS 1

2 INDUSTRY STRUCTURE

3 INDUSTRY ENVIRONMENT

4 INDUSTRY PARTIES

5 INDUSTRY ATTRACTIVENESS

6 INDUSTRY ATTRACTIVENESS

7 Conclusions & Suggestions

INDEX

Chapter-1

DEMAND DETAILS

1.1 Product Details:

The tourism product which is mainly destination (tangible) can only be

experienced (intangible). The panoramic view of the location

(destination), travel to the destination, the accommodation & facility as

well as entertainment at the destination all forms the tourism product.

Thus tourism is a composite product combination of attraction, facilities

and transportation. Each of these components has it is own significance in

the product mix and in absence of even one single component, the

product mix is incomplete.

Attraction of the destination, include:

• Natural site: Beach resorts, hill stations.

• Places of historical interest: Monuments, archeological sites and

museums.

• Events: Trade fair, musical festival, games, etc.

• Cultural attractions: History & folklore, theatre, religion, arts, etc.

Facilities compliment attraction. These make it possible for the tourist to

stay & enjoy the attraction.

• Accommodation: Hotel, hostel, campsites.

• Food: Restaurants, cafes, bars.

• Local transport: Taxis, coaches.

• Recreational facilities: Entertainment, sport activity, shopping

facilities.

Accessibility is the means by which the tourists arrive at the location as

without the transportation facility the attraction is of no use.

• Infrastructure: Roads, rail, airport, etc.

• Equipment: Speed & size of the vehicle.

With increasing number of destinations, travel methods & choice of

accommodations, the firm offers these products in the form of package

tours to facilitate consumers to choose from the combinations. These

package tours cater to varying tastes, economy, attitudes & the need for

exclusive service. The idea that service products are intangible is an

important one, but increasingly firms are trying to make their offering

more tangible, and thereby increasing their recognition amongst the

target-buying group. Tangible gifts such as toiletries, flight bags, even

bath robes bearing the company’s logo or brand name.

Branding plays a very important role in tourism marketing. Hotel chains,

airlines, & travel operators in particular employ tremendous efforts to

ensure that their name is widely recognized & synonymous with quality,

value etc. Product positioning helps in identifying the images &

perceptions of the tourist products as well as tourists organizations, which

match the needs of the tourist customers.

1.2 Technology Details

The tourism industry is broadly people centric. The work starting from

destination enquiry, selection, booking, ticketing, etc. everything has a

human touch to it. Even now people providing such service sit with their

customer to make them decide on their spots. Now, with the advent of

modern technologies some jobs such as ticketing & hotel reservations are

done through internet and the industry is progressing towards medium

contact.

Technology plays a major part in the promotion of a place. Better

communication facilities are one of the first prerequisites for growth in

the inflow of tourists. This has been made possible with technology.

Better technologies in the field of communication with cheaper costs have

seen many remote and inaccessible areas of the country get connected to

the rest of the world. This connectivity has made these places visible to

the world.

Similarly better transportation facilities have led to a dramatic increase in

the number of tourists visiting any particular place. The presence of an

airport and the availability of frequent flights are a great convenience to

any traveller.

1.3 Investments

Investments by the state:

With a view to encourage flow of investments into development of tourism

infrastructure, the state tourism has formulated the investment subsidy

scheme.This would hinge on the scale of investments and also on the regions

where the tourism projects come up.

The micro tourism units with an investment up to Rs 25 lakh can avail an

investment subsidy of 25 per cent in special tourism zones (STZs) and 20 per

cent in other regions. For the mini tourism units with investments in the range

of Rs 25-50 lakh, the investment subsidy would be 20 per cent of the

investment amount or Rs 7.5 lakh for the projects coming up in the STZs. For

setting up projects in other regions, the mini-tourism units are entitled toan

investment subsidy of 15 per cent of the invested amount or Rs. five

lakh. Similarly, the small tourism units pumping in Rs 50 lakh-Rs one crorecan

enjoy an investment subsidy up to 10 per cent of the invested amount or Rs 7.5

lakh. In case of projects being developed in STZs, they can avail an investment

subsidy of 15 per cent or Rs 10 lakh.The medium as well as large tourism units

are also eligible for interest subsidy on term loans. The medium tourism units

who invest in the range of Rs 1-10 crore are eligible for an interest subsidy of

five per cent on term loans while the large tourism units with investments from

Rs 10-50 crore can get an interest subsidy on term loans. In case of mega

tourism projects with capital investment exceeding Rs 50 crore, the state

government may consider a special package, excluding the tax based

incentives, on a case to case basis. The interest subsidy would be paid only for

the first five years from the commencement of commercial operations of the

project.

Foreign Direct Investment:

Government of India is allowing 100% FDI in Hotels and Tourism, through the

automatic route and alsoidentified the investment opportunity of about $8-10

billion in the next 5 years in tourism sector. India hassignificant potential for

becoming a major global tourist destination. It is estimated that tourism in

India could contribute Rs.8,50,000 crores to the GDP by 2020 ( approx. 1800

million USD) if you properly planto develop and invest on Connectivity

Infrastructure, Tourism Infrastructure, Tourism Products, CapacityBuilding

and Promotion & Marketing (WTTC report). It is estimated there is a need of

around 10 BillionUS $ required for development of tourism as per the different

state tourism estimates for the next fiveyears. When you think about the long

term capital requirement of all states, it is estimated around 56billion US $ for

the next 20 years.

A rapidly growing middle class, the advent of corporate incentive travel and

the multinational companiesinto India has boosted prospects for tourism.

India's easy visa rules, public freedoms and its manyattractions as an ancient

civilization makes tourism development easier than in many other countries.

Inorder to attract more visitors, India needs to increase room supply, open

further its skies to increase aircapacity, and upgrade its airports, roads and

other infrastructure to global standards. Also tourismdevelopment needs to be

pursued with a focus on sustainability.

Though the Government of India is allowing 100%FDI in automatic route to

India in tourism sector andthere is a wide gap between the demand and supply

of hotel rooms and other tourism infrastructureprojects, we have attracted the

FDI for a volume of 660.87 million US $ which is 1.46% of the totalFDI

inflow into our country from April 2000 to December 2007.

Reasons for FDI investment in Tourism:

• Economic liberalization has given a new impetus to the hospitality industry.

• The Indian hospitality industry is growing at a rate of 15% annually. The current gap betweensupply and demand expected to widen further as the economy opens and grows.

• The government forecasts an additional requirement of 200,000 rooms by the turn of the century.

• The travel and hospitality industry continues to be the sector, which has largely profited from the fastgrowing economy of India. This has largely been due to the 3.9 m tourist arrivals in FY06 (15%growth) over the previous period. The compounded growth in tourist inflow over the last ten years(FY89-FY09) has been 8.2%, while in the last five years, growth stands at 9.1% per annum.

• This increase in the number of tourist arrivals in the country lifted the country’s standing in the worldof tourist destinations. The country is ranked fourth among the world’s must see countries. Thesector continues to face certain problems.

• The country continues to be marred by poor infrastructure facilities like poor road management, rail and air and sea connectivity. However, the present government in its endeavor has taken a few initiativeslike opening of the partial sky policy. This allows private domestic airline operators to fly on theIndian skies. Some states continue to be in political uncertainties.

• As per the 2004 findings, the total number of approved rooms by the Government of India stands ataround 99,000 (estimated). These rooms are further classified into various segments out of which,five star and five star deluxe hotels account for around 27% of the total capacity, three star hotels(22%), four star (8%), two star (9%), one star and Heritage hotels (2% each) and the rest is dividedbetween unclassified and unapproved hotels.

• A rapidly growing middle class, the advent of corporate incentive travel and the multinationalcompanies into India has boosted prospects for tourism. India's easy visa rules, public freedoms andits many attractions as an ancient civilization makes tourism development easier than in many othercountries.

• The five star hotel segments have grown the fastest during the last five years at a CAGR of 12%.Further, this segment can be divided into 3 sub-segments Luxury, Business and Leisure. The growthin this segment indicates the genre of travelers coming into the country. Over the last few years thecountry has witnessed a large influx of business travelers in the country owing to relaxation of thegovernment’s stand on Foreign Direct Investments (FDI) for most of the sectors in the country.

• Many foreign companies have already tied up with prominent Indian companies for setting up newhotels, motels and holiday resorts. The entry of McDonald’s, PepsiCo’s Kentucky Fried Chicken,Domino’s and Pizza Hut has given an international glitz to the hospitality sector.

• It costs an average of US$50-80 million to set up five-star hotels with 300 rentable rooms in India.The gestation period is usually between three and four years.

Reasons for Low FDI in Indian Tourism

The following are the some of the reasons for low foreign direct investment in

this sector. They are:

• Multitude of taxes: Ours is the highest tax structure on tourism projects

in the Asia Pacific region. Multitude of central and state taxes- luxury tax,

expenditure tax - is the fundamental problem plaguing the tourism sector.

There is no national wide tax policy there by some international hotel chains

are hesitating to establish their subsidiaries in the India.

High Taxes: One of the fundamental problems plaguing the Indian tourism

sector is a multitude of Central and State level taxes, which lead to an

increased cost to the tourists. A comparison of the Corporate Tax level in

India, which affects the hospitality sector, in comparison with our neighbours,

shows India’s poor competitive positioning.

On the indirect taxes front also, India fairs poorly as compared to competing

destinations. The followingtable and figure showcases tourism related major

indirect taxes benchmarked across comparable locations.

• Delay in FDI Approvals & Govt. Policies: Huge delay in Foreign Direct

Investment approvals in Hotel & Tourism sector. Due to delay in approvals

and lack of guidelines in the tourism policy, the Alfred Ford’s proposed

Himalayan Sky Village is pending since last three years. If it is approved it is

one of the highest FDI in the country in tourism sector with US$ 300 million

which also provides employment to around 3000 people.

• Highest import duty on imported liquor used in hotels: Under the WTO

Negotiations for Market Access under the Agreement of Agriculture (AoA),

India had bound its tariffs at 100% for primary products, 150% for processed

products (this is the relevant category for liquor) and 300% for edible oils,

except for certain items (comprising about 119 tariff lines), which were

historically bound at a lower level in the earlier negotiations.

With the additional duties and sales tax levied by the State Governments the

cost of alcoholic spirits sold in hotels to bonafide guests is exorbitant. The

international precedence for liquor related levies also do not substantiate the

current level of taxes. Rationalization of the tax on liquor is therefore

important to make.

• Service Tax on Tour Operators: The services provided by a tour operator

typically includes a wide range of services covering transportation, boarding

and lodging arrangements, local sight-seeing and guide services, etc. which are

procured through sub-agencies. Even though 60% abatement is provided,

taxation of the gross service amount leads to double taxation and increases the

burden for the tourists.

• Inland Air Travel Tax:Air connectivity and Pricing are proven to be

critical barriers in India’s ability to become competitive in the global tourism

market. In the current context, domestic air travel is much more expensive than

international destinations located at a similar distance. The disparity between

Foreign Travel Tax (FTT) and Inland Air Travel Tax (IATT) is one of the

major factors. FTT constitutes between 2%- 3% of the ticket price while IATT

effectively constitutes 12%-13% of the total ticket price, except for north-

eastern states where the latter has been exempted. The cost of domestic air

travel is too high in India as compared to international standards. The primary

reason for this is costly Aviation Turbine Fuel, which constitutes close to 40%

of an airlines operating cost. This in turn is due to the structure of duties and

levies prevalent in India. The basic customs duty of 20% with a CVD of 16%

results in a total tax of 39.2%. The differential rates of sales tax being charged

by state governments further complicate the duty structure. This has led to

increased costs to the airlines, which in turn gets passed on to the consumer.

1.4 OTHER POINTS (if any)

Chapter-2

INDUSTRY STRUCTURE

2.0 Indian Tourism Corporate Chart:

2.1 Travel agents and tour operators

These men act as a fuel making the industry an run for money by providing the

customers a complete satisfaction and also play a major role in bridging the

gap between the customers and other players(countries).

Following diagram shows the channel of distribution in tourism industry:

Tourism Product

TransportAccommodationAttraction

Travel Agent

Tour Operator

Customer

Composition and Channel of Distribution (Structure)

Major industries that support tourism industry are depicted in the diagram below. These facilities decide the status of a place in a tourist's portfolio. They on one hand attract tourists to a particular destination and on the other act as a major demotivating factor if they are unable to fulfill the expectations of the visitors.

The middleman may be a tour operator, who is the wholesalers, who buy tourism products in bulk and make them available to travel agents who are retailers. The range of tourist products which are bought by the tour operators are airline seats, hotel accommodation, bus for local sight-seeing, etc. They may also sell directly to customers.

HOTELS

TRAVEL AGENTS & TOUR OPERATORS

AIRLINE

DESTINATIONSCOMPOSITION

Airline Industry

Airports are the primary infrastructure facility that a country has to offer to the

international tourists. It would be surprising to note that renowned tourist

destinations like Jaipur and Goa do not have an international airport.

Foreign guests, who constitute more than 60% of the tourists destined for these

cities, currently have to travel via Mumbai, unless they are ready to charter a

flight. This makes things cumbersome and time consuming, thus discouraging

many time conscious tourists from visiting these places. Similar is the case of

cities like Agra, Udaipur and Varanasi where foreign tourists account for

approximately 50% of the total tourists arrival.

SWOT ANALYSIS – Airline Industry

STRENGTHS

Airline is the most preferred mode of transportation by the foreign tourists as the convenience provided by the airlines is higher.

The savings in time that this mode of transport offers is immense.

WEAKNESSES

Inefficiency of the domestic airlines- there are number of instances of flight being cancelled or delayed.

Lack of basic facilities at the airport.

Government does not allow the capacity of existing airports to increase private and foreign operators are not given clearances to operate in the country.

OPPORTUNITIES

As the tourism industry expands the airline industry is also in for a boom.

Development and up gradation of the present airports

India's geographic location makes it an ideal location to serve as a link between the East and the West.

THREATS

Domestic airlines (Air India and Indian Airlines) face major competition from other transnational airlines.

Other countries like Singapore and china also try to grab potential tourists.

Hotel Industry

Hotel industry is an essential part of tourism. The expansion of tourism is well

inevitable bringing out development of the hotel industry. Hotel industry is so

closely linked with the tourism industry that it is responsible for about 50% of

the foreign exchange earning form tourism trade and enterprises. The rising

volume of tourism influx brought into light, the shortage of hotels in important

tourists centres’. Keeping in view the changing standards in the international

hotel keeping,the Indian industry has to make a number of improvements. It’s

not enough to have adequate hotel accommodations, it is equally necessary to

have at various levels, low priced, moderately priced, high priced, and a few

luxury hotels.

Hotels may be categorized depending upon factors such as:

Locations

Categorization according to plan

Categorization according to number of rooms.

Categorization by type of clientele.

Categorization by the length of stay of guests.

Categorization by the facilities that the hotel offers.

The Indian hotel business focuses largely on foreign tourists with only 30% of

the business coming from the domestic business and the leisure travels. The

tourist arrivals in India are seasonal in nature, with the best season being from

September to December followed by a steep fall till May. The period June to

September gains momentum once the monsoons are over. The slack season is

generally used for renovation work and the period is characterized by discounts

to attract clients.

Hotels form one of the most important support service that affect the arrival of

tourist to a country. The major players in the industry are Indian Hotels

Company Ltd (IHCL) operating under the Taj brand, the Oberoi, Oriental

Hotels, Hotel Leela Venture and the Ashoka chain of hotels, owned and

operated by the Indian Tourism Development Corporation (ITDC).

SWOT ANALYSIS – HOTEL INDUSTRY

STRENGTHS A very wide variety of hotels is

present in the country that can fulfill the demand of the tourists.

There are international players in the market such as Taj and Oberoi. Thus, the needs of the international tourists travellers are seen to while they are on a visit to India.

Manpower costs in the Indian hotel industry are one of the lowest in the world. This provides better margins for Indian hotel industry.

India offers a readymade tourist destination with the resources it has. Thus the magnet to pull customers already exists.

WEAKNESSES The cost of land in India is high at

50% of total project cost as against 15% abroad. This acts as a major deterrent to the Indian hotel industry.

The hotel industry in India is heavily staffed. Indian hotel companies have a staff to room ratio of 3:1, this ratio is 1:1 for international hotel companies.

In India the expenditure tax, luxury tax and sales tax inflate the hotel bill by over 30%. Effective tax in the South East Asian countries works out to only 4-5%.

Only 58,000 hotel rooms are available in India today, which is less than the Bangkok hotel capacity.

The services currently offered by the hotels in India are only limited value added services.

OPPORTUNITIES

Demand between the national and the inbound tourists can be easily managed due to difference in the period of holidays. For international tourists the peak season for arrival is September to March when the climatic conditions are suitable whereas the national tourist waits for school holidays, generally the summer months.

THREATS

Guesthouses replace the hotels. This is a growing trend in the west and is now catching up in India also, thus diverting the hotel traffic.Political turbulence in the area reduces tourist traffic and thus the business of the hotels. In India examples of the same are Insurgency in Jammu Kashmir and the Kargil war.

In the long-term the hotel industry in India has latent potential for growth. This is because India is an ideal destination for tourists as it is the only country with the most diverse topography. For India, the inbound tourists are a mere 0.4% of the global figures. This number is expected to increase at a phenomenal rate thus pushing up the demand for the hotel industry

The economic conditions of a country have a direct impact on the earnings in hotel industry. It can see that the present economic slowdown in India has led to a 51.6% fall in the industry average net profits for the second quarter of the current financial year, 2000.

Destinations

These include the several religious, historical and trade places in India like

Delhi, Agra (TajMahal), Rajasthan, Tirupathi, Mumbai, Hyderabad, Manali,

Goa etc. which are not just tourist hot spots but also business Centre’s for

tourism industry.

Some of the most Popular tourist destinations in India:

Dal lake-Kashmir Taj Mahal-Agra

Kerala Charminar-Hyderabad

2.2 Barriers in Industry

Government:The government is the most important player in this industry and all the other

players have to follow the lead taken by it. However, the actions of the

government have not been proactive. Rather it has been late in rising to the

opportunity that the tourism industry offers. There are not enough incentives

being offered to the other players like Hotels and the travel agencies. The

government should be taking the lead and attracting the industry to places that

have vast tourist potential but have still not fully developed. There are various

restrictions in areas like Sikkim and the Northeast that should be relaxed so

that more people can visit those places.

Poor Infrastructure:Delayed or absence of connectivity to different locations, lack of proper

accommodation facilities, bad roads and no communication facilities are some

of the factors that are stopping people from visiting many places. Unless the

infrastructure is properly developed, a large majority of tourists will give the

country a skip.

Apprehensions about the law and order situations:The lack of security that is faced by a lot of tourist is also a major cause for

concern. There have been many instances where tourist have been physically

assaulted, robbed and sexually harassed. Any such incident reflects badly on

the country and creates a negative image.

Misconception about the Country:

The image of the country has taken a long time for the change from the old

image of the land of snake charmers. There are many places where the image

of India is one of poverty, superstition, and diseases. One of the main reasons

why tourist do not visit the country has been the fear of been infected by some

exotic disease. The case of Plague in Surat in 1994 led to a decrease of 36% in

arrival of foreign tourists in India All these misconceptions unless addresses

immediately will create a problem for the growth of the industry.

Core product

Formal

Augmented

Future

Chapter-3

INDUSTRY ENVIRONMENT

3.1 FRAGMENTATION

Total Product Concept:

The Destination Product :

Core product

The basic

benefit

An experience providing an insight into a different

culture, tradition and lifestyle.

Formal The

expected

• Comfort during the tour

• Instruction manual provided for better understanding of

the places of visit; brand name – e.g. Kerala known as

“God’s own country”

• Quality assurance and TQM – e.g. Kerala has quality

assurance and TQM implemented for all its products

(backwater life and habitats and traditional houseboats),

services and facilities. This implies it has complete

cleanliness in its surroundings and eco-tourism is also

assured.

Augmented

In addition

to the

expected

benefit

Providing the tourist with guide cassettes and also an

interpreter to increase interactivity and understanding.

Eg – tours to historical and archeological sites requires

elucidation, which can be ensured through the

mentioned means; serving multi-purpose tourism, i.e.

forming a chain of destination, circuit theme by

cuddling different states. Eg 1 – educational circuit,

business circuit, pilgrimage circuit, beach circuit –

Kerala backwaters, Goa ,TamilNadu. Eg 2 -

Rendezvous with Maharashtra and the Mughals.

Future

Beyond the

usual,

serendipity

(pleasant

surprise)

An experience through which a tourist gets physically

invigorated, mentally rejuvenated, culturally

enriched and spiritually elevated. E.g. – The New

Rajasthan Gift: ‘Palace On Air’. British Airways will

convert its 70-seater Boeing into a ‘flying palace’ with

all possible luxuries flavored with the Rajasthani

ambience. Tourists (who will be treated as Kings) will

tour Rajasthan in Limousines (one for each) and will

have personal assistants – ‘Darbaris’ to take care of

every need.

The Airline Product:

Core product The basic benefit

Transportation, serving food drinks, staff

Formal The expected

Cleanliness, timely flights, polite and courteous behavior, safety

Augmented In addition to the expected benefit

Comfortable seats, smiling employees, on par with international standards

Future Beyond the usual, serendipity (pleasant surprise)

Welcome flowers, managers word of thanks, entertainment shows to delight and surprise the travelers on the flight

The Hotel Product:

Core The basic benefit Serving rooms, food, kitchen

and staff.

FormalThe expected

Cleanliness, timely service,

polite and courteous behavior,

menu availability, music.

AugmentedIn addition to the expected

benefit

Sparkling floors, ambience,

smiling employees, music of

choice, Welcome flowers,

welcome drink.

Future Beyond the usual,

serendipity (pleasant

surprise)

Cookies in the room,

manager’s word of thanks,

giving surprise parties to the

guest and delight the guest.

The emphasis is on

relationship marketing.

TOUR-OPERATOR PRODUCT:

Core product

The basic benefit

Packaged tour which includes travel guidance, planning, pricing, accommodation, local travel and sight seeing

Formal The expected Insurance, airport pick-ups, foreign exchange assistance (Raj Travels), airline ticketing, safe travel guide, branding the product for easy identity. Eg – SOTC, Cox & Kings, etc

Augmented

In addition to the expected benefit

Payment option – ‘travel now, pay later’ (on the basis of bank affiliations), tourism on credit card (Raj Travels); premium offers – special package deals; guarantees – in case of cancellation of flights, tour failures, bad weather, etc. ; loyalty schemes; weather reports – of different countries, with month wise – maximum, minimum temperature, humidity and rain; recommended tours – for every age group and interests; take away gifts (souvenirs) - at the end of every tour

Future Beyond the usual, serendipity (pleasant surprise)

Make your own package (customized packages); free photo sessions; video shooting – of the entire trip by the tour operators; incentives – with every tour package, one more, at half the price.

3.2 Industry Trend (Emerging or Declining)

The tourism industry not unlike the other industries grows with the increase in the spending of the people. The more the people spend the more the industry grows. The spending power of the people has been increasing in the country and all over the world.

Since India is concentrating on the international tourists, the large increase in the spending power in most developed countries has left a large amount of idle cash in their hands. This has led to the tourism boom the world over and India has been no exception.

The tourism industry has been growing steadily. Below are the charts depicting the growth in of the tourism industry various dimensions - Foreign tourist arrivals, Foreign exchange earnings, etc.

Chapter-4

INDUSTRY POLICIES

4.1 Policies

High capital expenditure acts as an entry barrier in the industry with the availability of prime land at economically viable rates being a major constraint. The gestation period is long and break even normally takes five to eight years to happen. Due to this the established players like Indian Hotels, E.I.H, etc. have an advantage over foreign majors as they already have well establishments at prime locations.

India was late to wake up to the potential of tourism as an industry that is not just an earner of previous foreign exchange but also one that could generate a lot of employment through horizontal and vertical linkages. The importance and significance of tourism could be understood from the observation of UNESCO, which says, "Tourism is a traditional instrument, which enables culture to the rehabilitated and made know to the rest of the world". It is said it's a smokeless industry and has become second to the petroleum industry in world trade.

This great importance was formally acknowledged when the XXIU.N General assembly designated 1967 as international tourist year with a unanimous resolution recognizing that "tourism is a basic and most desirable activity deserving the praise and encouragement of all peoples of government".

When traveling away from home, tourist comes in contact with the places they visit with their inhabitants and social exchange takes place. Their presence and social background affect the social structure and mode of life at the destination. Tourists are in turn affected by the experience and and often carry back home with them, new habits and new outlook on life.

Tourist has great educational significance. Contact between people of different races and nationalities widen ones outlook. Tourism, whether domestic or international has common economies significance in the sense that money earned in places visited large sums of transferred to the host economies where this money provided a source of income, a means of livelihood and amenities for the resident population. Purchasing power is generated in the receiving areas through the expenditure of visitors. Money received is spent and resent and this multiplier process the host country is a beneficiary.

International tourism is of great importance in international trade in the sense that it enters into the balance of payments of accounts of individual countries generating tourist traffic and export for countries receiving tourist traffic. For many countries is a major item in world trade. These countries exhibit faster growth in tourism than in trade of goods.

Domestic and International Tourism

Usually, a distention is drawn between domestic or internal and foreign of international tourism. In domestic tourism people travel outside their normal domicile to other areas within the country. Barriers like language, currency and documentation are not in the domestic tourism. But in India, since difference estates have different languages;one’s own language may not serve a medium of communication. Domestic tourism has no balance of payment implications.

When people travel to a country other than which they normally live in is known as international tourism, the distinction between domestic and international tourism is now diminishing. The reasons being:

Language barriers are reduced by improving language skills Currency and customs unions are developing in many European countries.

With globalization the free movement of people is growing.

Considering the greater multiplier effect in domestic tourism, domestic tourism would have received greater emphasis in India.

Reliable data on the growth of domestic tourists traffic are not available as not extensive survey has been conducted on a national level by any agency, government or otherwise not given the numerous festivals celebrated throughout out the year, the innumerable tourist's centers in the country, the geographical expands and the resource constraints, estimates of documents tourists' traffic through an executive survey is considered impossible.

Domestic tourism if considered separate from the travel for religious and commercial purpose. It is a post-independence phenomenon. Industrial growth, improvement in the standard of living, rise in disposable income and most importantly the improvement of tourist infrastructure search as hotels, air, train and road transport has contributed to the impressive growth in tourist traffic.

The definition of a domestic tourist is a person who travels within the country to a place of residence and stays at hotels or other accommodations establishments run on commercial basis or in dharmashalas, sarais, chaultries etc. for duration of not less than 24 hours.

The factors that govern the magnitude of domestic tourist traffic are the religious and cultural importance of a place. The extent of manufacturing, business and trading activity, the climatic conditions, the infrastructure facilities available and the geographical location etc. the current rough estimate of domestic tourism in India is ten million a year.

4.2 Research & Development:

Effective Market Research to ‘Understand Tourists’

Conducting extensive market research to know about the desired destination

attributes and tourists’ satisfaction might be one part of the overall

‘competitiveness enhancement strategy’ for Indian Tourism Industry. In this

context a research undertaken by Mauritius Tourism can serve as a model. It

conducted a year long survey at their main airport and covered all tourists of

their target market, at the time when they were leaving the country. This

research provided them critical insights about the experience and aspirations of

their target

market which helped in further boosting up their bread and butter industry by

making it more attractive and pleasurable for those who matter. India can

replicate the model after making obvious adaptations.

Restructuring ‘Organization Structure’ and ‘Planning Framework’

Tourism and Melbourne Tourism –

Beginning from the top level, in order to be competitive, a competitive

organizational structure’ and ‘planning framework’ are a prerequisite.

Structural setup at the top of Indian Tourism Industry is not sufficiently

business / industry oriented and is adversely affecting the all important work of

framing the plans, policies and guidelines, which then affect the

implementation of the same at the lower levels. The adverse affects are visible

in the structure and working of the government owned establishments in this

industry (tourist bungalows, hotels, railways and other transport, HR in TDC,

destination management etc) who do not seem to belong to this industry. Till

the seventh 5 year plan (1985 – 90) tourism was never given the importance it

deserves and poor planning and lack of coordination, characterized by

ambiguity and vagueness and contradictory policies, led to an unregulated

growth of tourism in India.

In other words the whole structure at the top and the foremost function of

planning are not competitive enough to provide Indian Tourism Industry with a

strong foundation and right direction. In this context, the structural model of

Canada Tourism which is business oriented and suitable for a highly

competitive environment, can be considered after obvious adaptations for

Indian requirements. Canada tourism has specifically chosen 10 destinations

and divided them in 3 regions (Asia- Pacific, North America, European / Latin

America) as their target market with separate marketing departments for each

and in this way it has achieved accountability and focus. They research,

identify and monitor the ‘key trends’ in tourism for each of their target market

and on that basis conduct a thorough SWOT analysis of each region and

finally, set specific priorities for each region as to what to achieve. This

structure creates “target market specialists” who understand the tourists from

their target markets and thus are better equipped to satisfy them. The

Marketing Department is engaged in top-level guidance, planning and research

and it is

supported by a sales department that implements marketing development

activities and leads the media and promotion activities.

Effective Destination Management through Encouraging Business

Operators for Adopting Higher Standards - Case of Great Barrier Reef

Marine Park (Australia) –

Destination Management is another area where Indian Tourism Industry has

performed miserably and negatively affects the impression of tourists. The

Great Barrier Reef (Australia) presents a remarkable case of destination

management and it falsifies the great Indian myths about destination

management that ‘large number of tourists and large areas are tough to

manage’. This marine park has a boundary of 2300 kms. and it welcomes 2

million tourists and 4.9 million recreational visitors every year. The Great

Barrier Reef Marine

Park Authority (GBRMPA) has been created by Australian Tourism to manage

this destination and the marine park has recently won the ‘best destination’

prize

GBRMPA encourages tourism business operators to take up – “The

EcoCertification Program” (developed and operated by Ecotourism Australia,

for ensuring, identifying and monitoring high standards in ecologically

sustainable tourism operations and thereby helping in protecting and managing

the destination) and it rewards business operators, if they adopt high standards

or

improve their performance in ecotourism through lucrative incentives, like –

extending duration of their work permits, listing them on official website and

publications (Australian Ecotourism Directory etc), showcasing them at

various important tourism related events (exhibitions etc).

4.3 Role of Advertising

Creation of awareness is an important factor in the formulation of marketing mix for the tourism industry. The aim of promotion falls into three main categories:

• To inform• To remind• To persuade

It will always be necessary to inform prospective customers about new products and services, new uses, price changes, information to build consumer confidence and to reduce fears, full descriptions of service offerings, image building (of destinations) etc.

Some of the important aspects of advertising are-

• Advertising and sales promotion- these activities are very effective when supplemented by publicity and personal selling. Advertising messages range from subtly attractive visual messages and symbols designed to appeal and stimulate travel desires and needs, to simple sales announcements drawing attention to specific product offers.

• Most travel and tourism advertising is aimed at consumer or the travel trade aiming specifically on a tourist product but large organizations like airlines and hotel groups also buy media space to communicate the name and image of the organization as a whole.

• Public relations and publicity- This include regular articles and photographs of the tour attraction, use of TV, radio holiday program and travel journalists to promote editorial comments.

• Word of mouth- research shows that about 80% of the tourists visited different places on the persuasion of their friends and relatives and also their own judgement. This indicates word-of-mouth promotion is an important tool in tourism marketing.

• Brochures- these are provided by the tour operators to stimulate customers and motivate them to buy. They are used to demonstrate in pictures and words the image and positioning of the product and organizations.

New concept in promotion - “PIPELINE PROMOTION”

Hotel owners and airlines need to promote their services to tour operators who

are in effect wholesalers of travel services and products as well as promoting

their service to end users and independent travellers. Similarly tour operators

will want to ensure that travel agents sell their services in a positive manner

and will therefore want to advertise to the agents the benefits of selling their

tours whilst advertising a totally different set of benefits to the end user.

The Incredible India Campaign

This campaign which was started in December 2002 is the first intensive

initiative from the tourism department towards increasing tourist inflows to

India. The campaign touts the country’s Mystical, Spiritual and Healing

traditions. It focuses on small, unexplored tourist spots.

The Department of Tourism won the PATA GOLD AWARD (2003) for BEST

MARKETING in print media category.

Achievements of the campaign:

• Foreign exchange earnings went up by 23 % (2003).

• International tourist arrivals increased by 16 % .

• Total earnings increased from Rs.14000 cr. to Rs.17200 cr.

• INDIA selected among the top 10 preferred destinations: “The Conde Nast

Traveller”.

• Among the top 5 destinations: “The Lonely Planet Travel Guide”.

•

Chapter-5

INDUSTRY ATTRACTIVENESS

5.1 Potential

India is a multi-destination country with a variety of tourist attractions

and facilities. It is the second largest net foreign exchange earner by way

of invisible exports. Tourism creates more jobs than any other sector for

every rupee invested. It has a major role in promoting large-scale

employment opportunities. Keeping this in view, it has been granted the

status of an industry. Several incentives have been made available by the

Central and State governments to this sector. These efforts have largely

promoted tourist arrivals in the country during the first quarter of this

year. Foreign exchange earnings during this year have registered a

significance increase of 9.3 per cent so far.

In view of the fierce competition in tourist generating markets from

several countries, it becomes necessary for India to strengthen its

promotional and marketing efforts continuously even to maintain its

existing marketing share. Steps are, therefore, being taken to develop and

implement strategic marketing programs based on market segmentation

analysis. Efforts are continuing to focus on cultural heritage as well as

pilgrim tourism, extensive use of technology measures to improve tourist

information, laying stress on NRI and ethnic segments, special campaigns

promoting India in summer and monsoon months and promotion

of yoga and Ayurveda for mental, physical and spiritual health.

5.2 Industry Growth

India's tourist industry is booming due to a rush of foreign tourists and increased travel by Indians to domestic and overseas destinations.

Nearly four million foreign tourists visited India in 2008, a 15% increase over the previous year. Prospects look even better this year, with tourist arrivals already up nearly 20%.

The visitors are pouring in from all over the world: Europe, Africa, Southeast Asia and Australia. At the same time, the number of Indians traveling abroad last year increased by 30%, to 4.5 million.

The boom has come even as global tourism has dropped, due to the September 11 terrorist attacks in the United States, the outbreak of Severe Acute Respiratory Syndrome in East Asia, and the Iraq war.

Tourism professionals cite several reasons for the buoyancy in the Indian industry. The recent surge in the Indian economy has raised middle class incomes, prompting more people to spend money on vacations abroad or at home.

At the same time, India's emergence as a global information technology hub and an aggressive advertising campaign by the government are credited with changing India's image from that of a land of snake-charmers, and sparking new interest among overseas travellers.

5.3 History

ITDC came into existence in October 1966 and has been the prime mover in

the progressive development, promotion and expansion of tourism in the

country. Broadly, the main objectives of the Corporation are:

To construct, take over and manage existing hotels and market hotels, Beach

Resorts, Travellers’ Lodges/Restaurants; To provide transport, entertainment,

shopping and conventional services; To produce, distribute, tourist publicity

material; To render consultancy-cum-managerial services in India and abroad;

To carry on the business as Full-Fledged Money

Changers (FFMC), restricted money changers

etc; and To provide innovating, dependable and

value for money solutions to the needs of

tourism development and engineering industry

including providing consultancy and project

implementation.The authorised capital of the

Corporation is Rs 75 crores and the paid up capital as on 31.3.2005 was Rs

67.52 crores. 89.9748% of the paid up equity capital of the Corporation is held

in the name of President of India.

The Corporation is running hotels, restaurants at various places for tourists,

besides providing transport facilities. In addition, the Corporation is engaged

in production, distribution and sale of tourist publicity literature and providing

entertainment and duty free shopping facilities to the tourists. The Corporation

has diversified into new avenues/innovative services like Full-Fledged Money

Changer (FFMC) services, engineering related consultancy services etc. The

Ashok Institute of Hospitality & Tourism Management of the Corporation

imparts training and education in the field of tourism and hospitality.

Presently, ITDC has a network of eight Ashok Group of Hotels, six Joint

Venture Hotels, 2 Restaurants (including one Airport Restaurant), 12 Transport

Units, one Tourist Service Station, 37 Duty Free Shops at International as well

as Domestic Customs Airports, one Tax Free outlet and two Sound & Light

Shows. Besides, ITDC is also managing a hotel at Bharatpur and a restaurant at

Kosi on behalf of the Department of Tourism. In addition, it is also managing

catering services at Western Court, Vigyan Bhawan, Hyderabad House and

National Media Press Centre at Shastri Bhawan, New Delhi.

Delhi Declaration:

To promote tourism interests, the World Tourism Organization (WTO)

organised, a South Asian Ministerial Summit on Joint Promotion and

Marketing of Tourism’ with support from the South Asia Travel and Tourism

Exchange (SATTE), on April 23,2001 in New Delhi. The Ministerial Summit

was presided over by the Minister for Culture and Tourism, ShriAnanth

Kumar. It was held within the framework of SATTE 2001. The major conclave

is yet another manifestation of the solidarity among the South Asian nations to

further promote the region on a collective basis in the primary source markets.

The Summit has also marked the beginning of a new and lasting relationship

between WTO’s Member States in South Asia and SATTE which has emerged

as the premier forum for marketing South Asian Tourism.

The South Asian Tourism Ministers’ Meet has suggested a joint marketing

plan to promote the region as one tourist destination and to celebrate 2003 as

the visit South Asia year. The three-day meeting was attended by Pakistan,

Bangladesh, Sri Lanka, Nepal, Bhutan and Iran, besides India. The Ministers

participating in the meeting were of the opinion that despite an overall growth

of 9 per cent last year in the region, the total tourist arrival was less than 1 per

cent of the global marketing share. Inadequate projection and negative

perception of South Asia held by some of the travel trade and prospective

tourists in the main tourist generating markets was one of the factors to be

addressed urgently.

The Minister of Tourism, ShriAnanth Kumar, said that a time-bound action

plan would be taken up very soon for marketing the South Asia region as an

emerging destination. WTO’s Expertise would be sought to chalk out the

financing, review and monitoring mechanisms. A coordinating meeting would

also be set up as the organizational link between the Governments and the

industry in the region and to draw a strong public-private partnership program

for promotion of tourism, he said.

After the meeting, the participating countries signed The Delhi

Declaration which suggests their joint commitment to promote the region as

one destination. The Declaration suggested a common logo and slogan, joint

participation of South Asia Tourist village at prominent travel trade

fairs the world over, organizations of South Asia Travel Mart in rotation in

member countries, joint advertising and hosting of multi-country

familiarization trips for travel agents, tour operators and media persons. It also

suggested creation of a dedicated regional tourism web site and development

of South Asia Travel Agents’ Accreditation Scheme – based on an agreed

curriculum and testing procedure.

The meeting was attended by the Ministers of Sri Lanka, Nepal, Maldives, Iran

and representatives of Pakistan and Bangladesh. The Secretary General of

World Tourism Organization, President, European Commission, Chairman of

Ceylon Tourist Board and industry leaders, representatives of airlines, hotels

and travel trade also participated in the meeting.

During the deliberations India and Nepal agreed to set up a working group to

identify areas of cooperation in tourism which may include combined tourism

circuits, cooperation in infrastructure development and joint marketing of

tourism products. Both the countries will also sign a tourism agreement to

provide for a task force for implementation and review progress once in six

months. During the meeting, both the sides decided to form Buddha Circuit

including the birth place of Gautam Buddha in Nepal and the places in

Indiawhere he preached. A Religious Circuit including PashupatiNath and

Muktinath in Nepal and Kashi in India also to be formed. An Adventure

Circuit was also proposed in view of the keen interest in mountains and rivers

of both the countries the world over to be jointly marketed by India and Nepal.

To spread greater awareness about the country’s rich heritage and to encourage

conservation and restoration efforts, South Asia Travel and Tourism Exchange

(SATTE) and Indian National Trust for Art and Cultural heritage (INTACH)

have joined hands to institute awards for excellence in the field. Both SATTE

and INTACH are committed to conservation of India’s natural and cultural

heritage, long-term sustainable tourism and preservation of the living culture of

local communities at heritage sites.

To offer support and promote responsible tourism that is sensitive to the

heritage of the country, SATTE and INTACH have instituted an award in each

of the three categories - a conservation project at a heritage site of excellence

in concept and execution; an innovative heritage tourism project that provides

a sound interpretation of culture and offers the visitors a unique opportunity to

understand the many layers of India’s heritage and a tourism project that

contributes to protection and enhancement of its natural and cultural

environment.

5.4 Life Cycle Stages:

The life cycle of the tourism product 

As in other economic sectors, tourism follows a "product life cycle", with a curve similar to that of the above graph. In this process several stages can be identified:

STAGE 1:  DISCOVERY

During the early "discovery stage" of the cycle a small number of unobtrusive visitors arrive seeking "unspoiled" destinations. These early "explorer" tourists generally speak the language and identify with the local culture. The social impact in this stage is generally small and resident attitudes are fairly positive towards tourism.

STAGE 2: LAUNCH

During this stage the number of incoming tourists increases. The host community responds to the increasing numbers of tourist by providing facilities. Businesses remain family based and the visitor-resident relationship is still harmonious. Later in this stage, visitor numbers increase and the community becomes a tourist resort. Outside interests become involved developing businesses and tourist facilities. This is typically the stage during

which TNC (Trans-National Corporations) foreign investment enters the cycle. Migrant workers, attracted by the prospect of tourist-related jobs, may enter the community and reduce resident contact with visitors. The tourist-relationship is converted into one of business as the novelty of new visitor arrivals declines. The more culturally sensitive "explorers" move on to new "unspoiled" areas and are replaced by the mass market.

STAGE 3: STAGNATION

The stage in which saturation is reached. The quality of tourist services falls, demand levels off, and the environmental degradation of the tourist destination begins to be obvious and worrying. The tourist destination at this stage is said to have reached 'maturity'.

STAGE 4: DECLINE

which represents the current state of mature tourist destinations on the Costa Brava in Spain. Falling profits lead to foreign-owned businesses withdrawing and the community is left to "pick up the pieces".

Chapter - 6

INDUSTRY PERFORMANCE

6.1 Profitability:

6.2 Technological Advancement:

E–Commerce

 All those web sites and portals launched by government as well as private

organizations would offer a wide range of tourism products and services like

airlines, hotels, restaurants, camp-sites, tours, activity centers, concerts,

festivities, shopping and many more with choicest of assortments of services. 

Plan the tour online through agents’ web sites. Reservation or shopping of

facilities for train, airlines, cruise, hotels, resorts, motels, rental cars and

adventures can be done on line. Still leaving a part of simple web based portal,

which just provides static information & beautiful pictures with less updated

knowledge and data transfer, tourism industry is expecting more practical and

satisfied chain solutions from Information Technology. 

Advance technologies in Tourism Industry

 Rather than .Com & e-commerce, travel and tourism industry is looking for

solution like E-Business or U-Business (Universal Business) solutions. 

Customer relationship management

 CRM based system enables service provider to provide knowledge, value and

efficient service to its clients. CRM enables service provider to build up a life

time relationship by providing on time solutions. Especially tourism industry

needs excellent CRM solutions to assist visitors or clients before flying on

tour, during tour and always after tour services. CRM solutions can be

provided to a visitor through web, email, call centre, kiosks and travelling

information offices anytime & anywhere. 

What an experience! We are standing at "TajMahal" and we are able to read

history details with all graphics and animated roles on multimedia kiosks. Even

we can check our further travel registration request process through kiosks. So

much beyond our imagination. 

Value chain integration 

Tourism industry is a chain of many service providers. In long term solutions,

cost cutting & effectiveness in data & information transfer, speed in

transactions and looking towards heavy multimedia based services – back end

systems need excellent value chain integration through solutions like SCM,

ERP and CRM. However till today applications of SCM and ERP are not up to

the industrial remarks as tourism industry is kind of service industry. 

Knowledge Management Systems  

KM and business intelligence systems have wide scope of implementation in

Tourism industry.  Well, well, well we can imagine it. Comparing history

timelines and providing instance knowledge about place on the spot makes

eager to know more about place to a tourist. Even information enables analyst

to find tourist’s behaviour and trends with data and information. To find out

customer’s demand is no more difficult task.

Use of advance technologies

 Interactive Digital Television (IDTV), Mobile technologies and Internet are

carving new faces in customer services for tourism industry. That’s great for

adventure tourist. Where am I? You are in dangerous forest. Beware!! 

Through a mobile, tourist can be guided through cultural heritage through

multi – language voice, text or images. Even it is possible for a tourist to find

details on fees, opening days and timings for nearby places. Find bookshop,

cafe, restaurant or ATM from where ever we are. 

Wishing you a Happy journey :

In advanced countries, e – tourism concept was applied and put in practice in

last decade. However e – tourism is still in growing phase with advance

technology’s application. But for developing countries and underdeveloped

countries it is under utilization phase. 

With application of e-tourism, the travellers would be able to make online

reservation, bookings and receive immediate confirmation; this would remove

a lot of obstacles that are faced by a tourist.

CITY TRAVEL

Indian cities are bubbling with captivating and confusing major tourist

attractions. One can see living breathing splendors of a bygone era as

Lake Palace at Udaipur. If you have never seen a love story in marble then

you cant really wait to experience T aj Mahal in the Full moon night. Warm

and sunny Southern Indian cities are distinctly dif ferent from their North

Indian counter parts. Indias glorious past residing amicably with the

present in Indias very own City of joy Kolkata. Visit India- as the name

alone is worth the journey.

Delhi:

Delhi is a good introduction to the rest of the country. Delhi is the

living record of the history of India. Discover this city's dignified history with

its great monuments and historical places, chill out at Lodhi Garden and

enlarge your waistline with a relaxed feast at Chandni Chowks Parathan

wala Gali

Red Fort, Jama Masjid, Chandni Chowk, Raj Ghat, India

Gate, Jama Masjid, Lotus Temple, Bahai T emple, Rastrapati Bhabhan etc.

Jaipur:

This 300-year-old city is much dear to the tourists for its regal forts,

lavish havelis, gorgeous lakes, sand dunes and colorful bazaars. The

charm of Jaipur has attracted Rajputs emperors, Mughals and common

men equally. Its proximity to the cities like Delhi and Agra has further added

to its appeal.

Places to See:

City palace, Hawa Mahal, Jantar Mantar, Sawai Mansingh

Museum, Amber Fort etc.

Udaipur:

This jewel of Mewar is considered to be one of the most romantic

destinations in India. Three lakes form such an attraction of the city whose

focal points are the towering elegant palaces, temples and havelis, which

have flanked the shores of these lakes. In the heart of the Lake Pichola,

Places to See:

Fateh Sagar Lake, Lake Pichola, Shilpgram (Craft

Bazaar), Bhartiya Lok Kala Museum, Lake Palace, City Place etc.

Jaisalmer:

In Jaisalmer, one can notice echoes of the past in its sandstone

palaces, temples, forts and cenotaphs.

You can see how your fantasy meets reality while you will be

enjoying camel safari in the wild beauty of the Thar Desert.

Places to see:

Jaisalmer Fort, Nathmaliji-Ki-Haveli, Gadsisar Lake,

Parswanath Temple etc.

Agra:

For ages, Agra has been synonymous with the Taj Mahal. Home to

the three generations of one of the most vibrant empires in the medieval

time, Agra reflects the finest examples of Mughal architectures in India.

Visiting Agra is like taking a stroll through the glorious history of the

Mughal era. Explore true Agra with us, It is more than just the Taj Mahal.

Places to see:

Taj Mahal, Fatehpur Sikri, Agra Fort, Sikandra, Dayalbagh

Temple, Jama Masjid etc.

Srinagar:

Kashmirs capital city Srinagar offers delightful holidays on the

lakes with their shikaras or houseboats. It is the base for any holiday in the

Kashmir Valley. This paradise on earths awe-inspiring beauty will surely

sweep you off your feet. Beat the heat in the Srinagar under the shadow of

the Chinar trees.

Places to see:

Dal Lake, Shikaras, Hazratbal Shrine, House Boats, Hari

Parbat Fort, Shankaracharya Temple, Jama Masjid, Chatti Padshahi,

Mughal Gardens, Nagin Lake, Chashmashahi Garden, Nishat Garden,

Shalimar Garden etc.

Kozhikode:

Kozhikode is a kaleidoscope of swaying palm trees, alluring

backwaters, emerald paddy fields, tranquil beaches, historical

monuments, wildlife sanctuaries, lakes, waterways, mountains and a

number of other popular tourist attractions. This cultural capital of Kerala,

in the past was an important trade and commerce centre.

Places to see:

Pazhassiraja Museum and Art Gallery, Kalipoika,

Kozhikode Beach, Velliyamkallu, Kadalundi Bird Sanctuary,

Pishakarikavu, kurishupalli, Mishkal Masjid, Lokanarkavu Temple, Tali

temple, Mannur Temple, Ponmeri, Varakkal Devi Temple, St Mary's

Church etc.

Hyderabad:

In Hyderabad, the Muslim culture of the Nawabs and Sultans

has blended with the dominant Hindu culture, clearly visible in their

raditions, cuisines and handicrafts. This city is also famous for its pearls,

bidri work and bangles embellished with sparkling, semi precious stones

set in lacquer .

Places to see:

Charminar, Salar Jung Museum, Mecca Masjid, Golconda

Fort, Shilparamam, Brahmanda Reddy National Park, Hyderabad

Botanical Gardens, Durgam Cheruvu, Dhola-ri-dhan, Ramoji film city, etc.

Mumbai:

This commercial capital of India pulsates with energy. This

incredible city is different with its varied cultures and amazing

contradictions. Mumbais Bollywood is the place where dreams are

chased, broken and made. Indias Little Paris, Mumbai throngs with

versatile designers, hip boutiques and stars of yesteryears.

Places to see:

Gateway of India, Chowpatty Beach, Mahalaxmi Temple,

Hanging Gardens, Haji Ali Shrine, Jehangir Art Gallery, Sanjay Gandhi

National Park etc.

Kolkata:

Kolkata is home to the intelligent, sensitive and cultured Bengalis,

who are equally passionate about music, literature, politics, Durga Puja,

football and cricket. Also referred to as the City of Joy, this 300 years old

historical city is recognized for its gorgeous colonial constructions and an

exclusive and discrete cultural heritage.

Places to see:

Eden Gardens, Vidyasagar Setu, Salt Lake Stadium, Raj

Bhawan, Nalban Boating Complex, Dhakuria Lake, Kali ghat, Victoria

Memorial, Birla Mandir, Belur Math, Science City, Academy of Fine Arts,

Fort William, Dalhousie Square and Kumartuli etc.

HILL STATION TRAVEL

To beat Indian summer what can be more soothing than a cool vacation in

the Indian hill stations. The beauty and its very own local flavor of these

hills stations attract tourists from far and near. Each of these hills stations

of India has preserved their own cultural heritage, which has not yet being

discolored even with the passage of time. More over one can appreciate

nature at her best in a hills station only. With many glaciers and valleys, a

huge range of wildlife, lush forests and cascades Indian hills stations are a

breathtaking experience.

Mussoorie:

This fairyland hill station is much adored by the tourist for its

lush hills and diverse flora and fauna. Mussoorie is aptly known as the

Queen of hill stations. This popular hill resort is also ideal retreat for the

trekkers and adventure enthusiasts.

Places to see:

Camel's Back Road, Gun Hill, Kempty Fall, Municipal

Garden, Childer's Lodge, Cloud End, Nag Devta Temple etc

Auli:

The amazingly beautiful mountain resort, Auli provides the adventure

freak tourists a wide range of entertainment. Auli attracts flock of tourists

from both India and abroad due to its unmatched scenic beauty, lively

social life and sources of recreations.

Places to see:

Bhavishya Badri, Vanishinarayan Kalpeshwar, Joshimath,

Chenab Lake, Kwani Bugyal, Chattrakund, Gurso Bugyal etc.

Dharamsala:

A much sought after tourist resort, Dharamsala presents a

pretty picture during summer. Worldwide tourists come here to enjoy

attractive glimpses of the Himalayan ranges and to breathe in the fresh

pure mountain air .

Places to see:

Kangra Art Museum, St. John's Church, McLeodganj etc.

Manali:

This prime holiday destination, surrounded by high mountains,

wild flowers, small picturesque hamlets and fruit laden orchards, is an ideal

base for skiing, paragliding, rafting and trekking in India.

Places to see:

Kothi, Solang Valley, Rahla Falls, Manali Sanctuary ,

Rohtang Pass etc.

Shimla:

Pine, deodar, oak and rhododendron forests, quaint cottages have

created a fantastic ambience in Shimla. Besides its unrivaled beauty

Shimla also attracts tourist for shopping, sports and entertainments.

Places to see:

The Ridge, Summer Hills, Daranghati Sanctuary, Jakhoo

Hills, Mashobra etc.

Ponmudi:

The name Ponmudi means golden crown. It is so named

because of the golden glow cast over these hills by the evening sun. This

place is renowned for wild orchids, natural springs and beautiful picnic

spots.

Ponmudi Hills, Spice/Tea Plantations etc.

Ooty:

Ooty is one of the most popular and superbly gorgeous hill stations in

South India. Leafy hills, spilling waterfalls and radiant brooks, thick

forests, sprawling grasslands and extensive tea gardens have made its

flawless beauty.

Places to see: Doddabetta Peak, Botanical Garden, Lake, Doddabetta

Mount Abu:

Peak, Pykara Falls, Hindustan Photo Film, Cosmic Ray Laboratory, Radio

Telescope, Tribal Research Center etc.

This picturesque hill resort serves as an emerald retreat in the

sterile wasteland of Rajasthan. Here one can find interesting residues of

the bygone Rajputana and the Raj period.

Places to see: Dilwara Jain T emples, Gaumukh T emple, Nakki Lake,

Mansarovar Lake, Guru Shikhar, Mount Abu Wildlife Sanctuary, Sun Set

Point etc.

Darjeeling:

Popularly known as the crowned princess of the Indian

tourism, Darjeeling is well known for its distinct good looks, fresh air ,

pleasant conditions and awesome landscapes. This place is also

celebrated for producing world’s one of the finest tea verities.

RELIGIOUS TRAVEL

Mystical India opens doorways to a spiritual sphere. India is glorified by the

myth and legend and sanctified by the religion. It has been attracted a large

number of pilgrims and worshippers from time immemorial. Here one can

find every religion that is practiced on the earth. A journey to the

pilgrimages in India will take you to the journey to Nirvana. You will find

such celestial zones where the Gods bestow their blessings. An

overwhelming experience is waiting for all you people, who are searching

for the eternal bliss

Varanasi:

Lord Shiva’s earthly habitat is a revered pilgrimage site for the

spiritual Hindus. This oldest living city is also known as the microcosm of

Hinduism to the world.

Places to see:

Dashashwamedha Ghat, Asi Ghat, Barnasangam Ghat,

Panchganga Ghat, Manikarnika Ghat, Saranath, Kashi Vishwanatha

Temple etc.

Rishikesh:

This is one of the best-located pilgrimage hubs. A gateway to

the four pilgrimage sites i.e. Badrinath, Kedarnath and Haridwar, is

formally known as Mayapuri.

Places to see:

Lakshman Jhula, Ram Jhula, Bharat T emple, Rishi Kund &

Raghunath Temple, shkar Temple, Shatrughan Temple, Muni-Ki-Reti,

Swarg Ashram, Lakshman Temple, Sadanand Jhoola, Triveni Ghat,

Shivanand Ashram, Kailash Ashram etc.

Char Dham:

Badrinath, Kedarnath, Gangotri and Yamunotri, are known as

the char Dham. These sacred places, located at a height of 3,000 m above

sea level, are considered to be the places of nirvana according to Hinduism.

Vaishno Devi:

To see the holy shrine of Mata Vaishno Devi millions of

devotees throng the place. You will get spiritually uplifted after

experiencing the faith of these devotees.

Mathura-Vrindavan:

Being the birth place of Lord Krishna, Mathura is

celebrated as one of the most sacred places in Hinduism. Only 15 miles

from Mathura, Vrindavan is famous for bhaktas and sagas related to Lord

Krishna.

Places to see:

Shri Krishna Janmbhoomi, Ranghabhumi, Iskon Temple,

Radha Vallabha Temple, Mathura Krishna Balrama Mandir, Radha

Damodara Temple, Shahji T emple, Jami Masjid etc.

Tirupati:

On Tirumala, the exquisitely carved gold gopurams of the Lord

Venkateshwara Temple is placed. This temple is shining in the sun, is a

unique piece of Dravidian art. Places to see: Kailasanatha Kona,

Chandragiri Fort etc.

Amarnath:

Located in the ‘Paradise’, Kashmir, an ice Shivalinga is the

presiding deity of this place. It changes size with changing seasons.

Ayodhya:

Lying on the banks of the river Ghagra, this archaic city is

believed to be the birth place of Lord Rama, the 7th incarnation of Lord

Vishnu.

Places to see:

Ram Janmabhumi, Treta Ka Mandir , Hanuman-Garhi

Temple, Ramkot etc.

Haridwar:

Haridwar is one of the principal holy cities of India. During the

Kumbha Mela, thousands of pilgrims troop into this place for ritual bath.

Each evening, the sunset is celebrated with the traditional aarti at Har ki

Pauri.

Places to see:

Chandi Devi, Bharat Mata Temple, Mansa Devi Temple

Vaishno Devi Temple, Daksh Mahadev Temple etc.

Yamunotri: Yamunotri is the first halt on the way to chardham yatra. From

this holy place, the sacred river Yamuna originates. It is also a much

popular Hindu Pilgrimage

WILDLIFE

Bharatpur Bird Sanctuary:

If you are an avid bird watcher then you should

not miss the Bharatpur Bird Sanctuary. 176 Km from the Delhi, this

sanctuary is today a heaven for winged creatures, which have chosen the

sheltered protection of the park to breed in.

Attractions:

Cranes, Pelicans, Geese, Ducks, Eagles, Hawks, Shanks,

Stints, Wagtails, Warblers, Wheatears, Flycatchers, Buntings, Larks and

Pipits, etc.

Corbett National Park:

Seven hour drive from the Delhi, Corbett National

park is placed in the foothills of the Himalayas in UP. This Jim Corbett’s land

of man-eaters provides an unforgettable experience to the nature lovers.

Attractions:

Tigers, Gharial Crocodile and the ‘Mugger’ Crocodile,

Himalayan Palm Civet, Indian Gray Mongoose, Common Otter ,

Blacknaped Hare and Porcupine, Elephants etc.

Ranthambore National Park:

This one-time hunting preserve of the

Mahrajas of Jaipur was also the venue for royal hunting parties. Today, it is

the best place in the world to see a tiger.

Attractions:

Tiger, Leopard, jungle Cat, Striped Hyena, Sloth Bear, Patel,

Sambar, Spotted Deer , Nilgai, Chowsingha, Wild Boar, Indian Pangolin,

Sunderbans National Park:

Stretched over an area of 1330 sq. km.

Sunderbans is the largest habitat of the Royal Bengal Tiger in the world

You can found around 300 of them roaming and swimming in that area.

Attractions:

stork, kingfishers, eagles, white ibis, swamp francolin, Asian

dowitcher, white-bellied sea eagle, purple heron, egrets, brown fish owl,

osprey, peregrine falcon, northern pintail, little porpoise, Indian fox, fishing

cat, common grey mongoose, Indian flying fox, pangolin, small Indian

civet, rhinoceroses, Indian python etc.

Kaziranga National Park:

Kaziranga National Park is home to the 1000

one-horned Rhinos who are considered among the endangered species.

This population of this species which is found here is known to be the

highest in number .

Attractions:

Indian bison, hog deer, sloth bears, tigers, leopard cats, jungle, etc.

Manas National Park:

In the Manas National Park, one can enjoy a wild

experience while relishing some of the best of natural beauty. This place is

a dear home to 20 highly endangered species like Panda, Hispid Hare,

Pigmy Hog and Golden Langur,

Attractions:

Tigers, Elephants, Rhinoceros, Wild Buffalo, Wild Boar ,

Sambhar, Swamp Deer, Hog Deer, Riverchats, Forktails, etc.

Bandhavgarh National Park:

white tigers of Rewa are the main attractions

here. As this park is set amidst the Vindhyan ranges, you will love to

traverse the park on elephant back.

Attractions:

Nilgai, Chausingha, Chital, Chinkara, Wild boar , jackal,

Peacock, Paradise fly catchers, Jungle Fowl, Golden and Black headed

rioles, Yellow Ioras, Red-vented Bulbuls, Blue Jays, Purple Sunbirds,

Green Barbets etc.

Gir National Park:

Gir National Park is placed in the West Indian state of

Gujarat. It is renowned as the sole habitat of the Asiatic Lion in India. One

can even find Leopards along with the lions there.

Attractions:

Sambar Deer, Chital Spotted Deer, Nilgai Antelope,

Chowsingha Four-Horned Antelope, Chinkara Gazelle, Wild Boar, Langur

Monkey, Jackal, Hyena, Paradise Flycatcher, Bonneli's Eagle, etc.

Sariska Tiger Reserve:

Barely one hours drive from Bharatpur is the

Sariska Tiger Reserve sited. Saiska Tiger Reserve was once the royal

Attractions:

reserve of the Alwar rulers. Sarishka is a picturesque park, with plenty of

nilgai and other deer species.

pea fowl, gray partridge, quail, sand grouse, tree pie, white

breasted kingfisher, golden - backed woodpecker, crested serpent eagle,

great Indian horned owl, sambhar, chital, wild boar , hare, nilgai, civet, etc.

Bandipur National Park:

The 874 sq kms Bandipur Park is also a tiger

reserve. Bandipur is one of the finest habitats of the Asian elephants.

Attractions:

Bonner Macaque, Nilgiri Langur, Tiger, Wild Boar , Chital Gaur ,

King Cobra, Common Cobra, Python, Adder, Viper, Rat Snake, Water

Snake, Marsh Crocodile, Lizard, Chameleon, Monitor Lizard, Frog, etc.

BEACH TRAVEL

Surrounded by glorious mountains and blessed with crystal clear waters,

and a wonderful marine life and Spread across more than 7500 km along

coastline, Indian beaches of fer wide choices for all kinds of travelers.

Indian beaches attract tourists in galore, with soul-warming sun, crystal-

clear waters, and fragrant sea air. Be it beach resorts, beach shacks and

small restaurants serving yummy but inexpensive seafoods, or beach

bazaars providing shopping delights, beach activities or isolated retreats

perfect for unwinding- Indian beaches have it all for you.

Marina Beach:

The second largest beach in the world, Marina Beach is a

pictorial coast sited along 12 km long seashore in Chennai. Blonde sand, a

shining blue sea and open avenue create that sight which is not to be

missed.

Attractions:

Aquarium, Anna and MGR Samadhis, University of Madras,

Senate-House, Chepauk Palace, Presidency College, P.W.D office, Ice

House, Beach Market etc

Baga Beach:

With wondrous white sands, black rocks, winning palms,

ravishing beach parties, flea market, and entertaining beach activities,

Baga beach is one of the most popular beaches of India.

Attractions:

Casa de Retiros, the Baga River, Medicinal springs at Mottant

Club Tito's, nightlife, the hippie market etc.

Digha Beach:

This beach of West Bengal is breathtakingly beautiful and a

true delight for all the nature lovers. Sun, sea, surf and the sand, in

nutshell, is Digha beach.

Attractions:

Shankarpur, Chandaneswar etc.

Kovalam Beach:

Owing to its natural beauty of amazing Arabian Sea,

Kovalam offers a picture perfect holiday. Swim, bathe or rejuvenate your

self – your leisure options are plenty and diverse.

Attractions: Sunbathing, swimming, herbal/ Ayurvedic body toning

massages, cultural programs, Catamaran cruising etc.

ADVENTURE TRAVEL

If you are one of those, whom the spirit of adventure has always lured and

want to do something offbeat, then India is the place you need to head to. A

terrain stuffed with golden sands, twisting rivers, thriving hills, spilling

water falls and slopping deserts India has enormous prospects of

adventurous activities including safaris, water sports, aero sports and

many more. Not only India has something for every level of competence-

the beginner and the expert, but also prices here are extremely low by

global standards.

Mountaineering in India:

India, with its tough topography tests the physical

strength of a person to its limits. Replete with several towering peaks it

challenges even the best of mountaineers. The best time for

mountaineering in India is roughly from July to mid October.

.Major Destinations:

Himachal Pradesh, Garhwal and Kumaon regions of

Uttar Pradesh, Ladakh region of Jammu and Kashmir, Northeast India, etc.

Trekking In India:

For you India has untold trekking trails where you can

always challenge your own self. During your trekking tour you can explore

historical structures, ancient places, monasteries and many other

unexplored attractions.

Major Destinations:

Ladakh-Zanskar Via Lahaul, Manali to Beas Kund,

Garhwal Trekking, Himachal-Manikaran T o Spiti, Dodi Tal, Khatling

Saharatal Trek, Gangotri Nandvan Trek, Kinner-Kailash Parikrama,

Manimahesh Chui Yatra, Jagatsukh To Base of Deo Tibba, Adi Kailash

Trek, Hemkund Trek etc.

Water Sports in India:

When it comes to water sports, Indian Beaches are

completely exclusive in their own ways. For all the water babies they have

plenty of activities like sailing, boating, fishing, angling, yachting, wind

surfing, snorkeling, diving etc.

Major Destinations:

Ladakh and the Zanskar and Chenab in Kashmir

Sutlej, Beas (in Himachal Pradesh), T eesta (in Sikkim), Ganga, Yamuna

Brahmaputra, Kaveri, Narmada, Yamuna, Nagoa beach, beaches of Goa

Andaman and Nicobar Islands and Lakshadweep Etc

HEALTH TRAVEL

Are you looking for an opportunity for your prolonged ailment that goes

beyond the expensive harmful chemical treatments? Then you can find

your solution in Indian Ayurveda, yoga and meditations, which stress on

the prevention of a disease rather than curing it. These 5000 year old

traditional sciences, offer unending list of wholesome treatments for all

your problems whether you are suffering from chronic disease or you need

just a simple rejuvenation after an exhausting week, without burning a hole

in your pocket.

Ayurveda:

Ayurvedic treatments like Ayurvedic Facial, Ayurvedic Scalp

Treatment, Mother Earth Science, Yemana Ocean Therapy and

Neurotherapy will give you ultimate solutions for all your maladies. The

rejuvenation therapy of Ayurveda helps to revitalize both the body and the

soul. It provides a wholesome healthy living exclusive of any side ef fects.

Major Destinations:

Uttaranchal, Kerala, Goa, Rajsthan etc.

Yoga and Meditation:

Yoga and meditation synchronize mind, body, heart

and soul. It helps to attain elevated spiritual insight and tranquility. It

ensures a life blessed with an elevated physical, mental, emotional spirit.

The quick effect of Yoga will make you feel completely at peace with your

inner self.

Major Destinations:

Kerala, Uttaranchal, Bihar , Parmarth Niketan,

Sivanand Ashram, Yoga Niketan, Omkaranand Ashram, Vanprastha

Ashram, Ved Niketan Dayanand, Vedanta Ashram and Vanmali Gita,etc.

GOURMET TRAVEL

The unforgettable aroma of India is not just the heavy scent of jasmine and

roses on the warm air; it is also fragrance of the spices which are an

indispensable part of Indian cooking. The variety of Indian cooking is

immense, it is colorful and aromatic. Being so diverse in nature, each

region has its own cuisine with its very own preparing style. The culinary

delights of India are inexpensive even in the top class hotels. No wonder it

is the third most popular cuisine in the world.

Northern cuisine:

Dairy products like ghee, yogurt are used fairly extra in

the North Indian cuisines. Mughlai, tandoori foods are two dishes which

are appreciated by the world foodies. Shammi kebabs, Reshmi kabab,

Biriyani are rich, deliciously spiced and liberally sprinkled with nuts and

saffron.

Southern cuisine:

In the south, curries are mainly vegetable and inclined to

be hotter. Specialties to look out for are Bhujiya, Dosa, Idli and Sambar,

dumpling with pickles. Bengali cuisine: Fish is the main feature of Bengali

cuisine. Traditional Bengali curries and sweet dishes are difficult to find

outside Bengal. Western cuisine: The Western India cuisines offer you a

wide range of fish dishes. The influences of Parsi and saraswat cuisine

also can be seen in the important food items.

Sweet dishes:

Be it marriage, any religious festival, family functions,

simply anything one cannot visualize Indian life without sweets. Kaju barfi,

Halva, kheer, rasgulla, laddu, sandesh, rashmalai, firni, malpoa- every

region has their own sweets.

LUXURY TRAIN TRAVEL

A luxury train tour lets visitors explore Indian people, culture, traditions in a

very royal way. Luxury trains like Royal Orient, Fairy Queen, Palace On

Wheels, Deccan Odyssey etc have now become most admired attractions

of Indian tourism. These luxury trains fairytale journey will take you to that

sojourn, where you yourself will feel like a royal of the yesteryear.

Heritage on Wheels:

It ventures to the lesser-explored regions of Bikaner

and Shekhawati in Rajasthan. To match the ambiance inside the train

which is of royals this fully air-conditioned has 14 saloons that include the

spaces for a bistro and a lounge bar.

The Royal Orient:

This one of the most rare and luxurious train journey

takes the tourists on a passage of bygone princely era. Voyage back in time

and revive the opulence of the raja Maharajas. This special train operates

between September to April.

Palace on wheels:

An extraordinary train for the extraordinary people. This

splendid train takes you to the regal places of Rajasthan in style. The Train

is adorned with luxurious cabins whose interiors are decked with paintings

and carpets.

Chapter - 7

CONCLUSIONS

Conclusion:

Tourism Industry is a very dynamic industry and so are its challenges and

strategies, therefore a learning approach towards ‘best-practices’ would yield

better results in enhancing competitiveness of this industry. Also, the need for

sound perspective in planning and “private-public-community” participation is

imperative for this purpose. This paper was an attempt to illuminate the area

through simple yet effective examples and cases collected from around the

world, based on their contribution in making their respective Tourism Industry

more competitive. It leaves a background for further research, as assessing the

implications of using the above mentioned ‘best-practices’ in Indian Tourism

Industry can be another rewarding study.• Foreign exchange earnings went up by 23 % (2003).

• International tourist arrivals increased by 16 %.

• INDIA selected among the top 10 preferred destinations:

“The Conde Nast Traveller”.

• Among the top 5 destinations: “The Lonely Planet Travel Guide”.

The planning framework of Indian Tourism Industry can be redesigned,

taking World Tourism corporation’s recommendations of 2002-07 as a

base.

Tourism has adopted an ‘industry oriented outlook’ for making professionally

designed specific plans for responding to changing consumer

demands and other critical and contemporary issues, like:

• Destination marketing;

• Product, branding and competitive positioning,

• Pricing,

• Market segmentation,

• Promotion and distribution

• Cross agency cooperation

• Site Management

Contemporary and detailed planning, which professionally addresses specific

issues, has added to the competitiveness of their tourism industry and can very

well do the same for Indian Tourism Industry.

Make the business operators realize that - ‘Tourism Survives Till The

Destination Does’:

Tourism business operators realize that for their business, they will ALWAYS

need a healthy Great Barrier Reef. Increasing realization of this

interdependence has led to the development of a strong active partnership

Significantly improving the destination management as well as

competitiveness of

Tourism business outcomes at the Marine Park.

Public Private Partnership is critical for enhancing competitiveness:

Enhancing coordination and cooperation between public sector and private

sector undertakings of the industry will help in creating a wholesome

experience for the tourists. In this industry where both play equally important

role, it is not possible for both to perform in isolation. Moreover, it will be a

‘win-win’ situation for both the sectors as both can benefit by each other’s

expertise and resources.

Handover the Funds in Right Hands: Case of Vermont Tourism (USA)

has created “Fund for Tourism Marketing Initiatives (FTMI)” program. Under

this, it awards financial grants (on merit basis) to local organizations for

building / expanding events, marketing programs, advertising campaigns and

public relations programs that hold significant potential for measurable

increase in travellers to Vermont.

Sensitize the Community for sustainable competitiveness:

Community is an important stakeholder in tourism industry and can play a vital

role in enhancing its competitiveness through sharing the responsibility and

thus easing out the job of sustainability and destination management to some

extent, but unfortunately, in Indian Tourism Ministry this important stake

holder of tourism industry has been rarely involved and sensitized for such

efforts.

Effective deployment of ‘Human Resources’:

Although, some private players have opened their own academies to develop

talent, but it is not possible either for the private sector or for the public sector,

to cater to the growing demand single-handedly.

‘Private-Public Partnership’ for development of world class academic,

training and development infrastructure can be a remedy and can enable

the industry to take advantage of this most valuable and most widely available

resource in the country. Government should encourage infrastructure

development in this area as well with a long term vision. It is very simple that

adding more airlines and hotels would not lead to anywhere if there are not

enough people to work for them and high training costs and recruiting from

abroad will push the already high operating costs further.

BIBLIOGRAPHY

WEBSITE:www.askme.com

www.mgtohilosophy.com

www.abtinsurance.com

www.waterstones.com

SEARCH ENGINE:www.google.com

www.yahoo.com

www.wikipedia.com