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CHAPTER III

TOURISM IN INDIA: AN OVERVIEW

Tourism is an increasingly important component of the economies of many

countries. For some countries like India it is a significant source of income,

employment and investment. It is a good source of revenue for India and important

to its economy. India is one of the important tourism destination countries in the

world with bounteous heritage, breathtaking beautiful architecture, rich traditions

and diverse cultures as well as with mesmerising and scenic landscapes. From the

challenging snow-clad peaks of the Himalayas and the cool hill stations of the

north, to the alluring beaches on the western and eastern coasts and the ornate

temples of the south, India has the variety to satiate the interests of all those

travelling through the country.

In India, Tourism plays a pivotal role in socio-economic development and

fosters international understanding as a part of “Global Village Concept”. Tourists

want a holistic experience. Visits to historical monuments, museums and exposure

to culture makes this possible. Activities like entertainment, sports, dance, music,

festivals, adventure, cuisine, education, health and business enhance their

experience. With the advancement of transport, communication and improvement

in general economic well-being, the demand for tourism has increased

concomitantly.

Further, tourism is a rapidly evolving industry that has become increasingly

competitive in the global marketplace. With advancement in communication,

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efficient transportation linkages, en-route facilities and other basic on-site

infrastructure on tourist destinations may compete directly with destinations in

other states. The tourism industry comprises many different sectors, including

transportation, lodging and entertainment; it is often difficult to assess the types

and rate of innovations in the industry. In addition, because the tourism industry is

a loosely knit community of diverse departments like tourism department,

Archeological Survey of India, local bodies, NGOs, police, etc. dissemination of

information about innovative practices is a challenge. In the context of an

expanding information society and competitive world order, it is important that

adequate efforts are made for documenting and sharing the best practices among

all players involved in the development of economic activities through tourism.

Tourism Scenario in India The tourist attractions of India include historical monuments, places of

religious importance, mountain and beach resorts, wild life and interesting

ecosystems, places with facilities for adventure, water and winter sports, etc. India

has immense potential to be a leading tourist destination. The Department of

Tourism has (i) taken a focused approach to develop infrastructure; (ii) given

importance to marketing India as a clear destination by branding ‘Incredible India’;

and (iii) given utmost importance to Human Resource Development activities. The

increase in tourist arrivals can be attributed to the massive government-sponsored

‘Incredible India’ promotion campaign undertaken in key overseas markets. Steps

taken by the government to develop new markets can also be a factor.

The World Travel and Tourism Council (WTTC) has recently notified

India as one of the fastest-growing tourist economies in the World. According to

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the WTTC, Indian tourism is estimated to grow at 8.8 percent, ahead of China,

over the next 10 years. Since the neighbouring countries as well as all States in the

country are now competing with one another for increasing share of tourist

arrivals, this sector is becoming extremely vital and competitive.

Policies and Initiatives Tourism being a concurrent subject under the Indian constitution, both the

Central and State governments regulate the hotel industry. The regulations include

statutory and regulatory sanctions (or approvals and licenses) from the Central and

State departments or agencies. This includes license to operate a restaurant, a hotel

license (issued by the municipal authorities), license from police (issued by the

local police) and a bar license (issued by the excise department).

Tourism Policy

In order to develop tourism in India in a systematic manner, position it as a

major engine of economic growth and to harness its direct and multiplier effects

for employment and poverty eradication in an environmentally sustainable manner,

the National Tourism Policy was formulated in the year 2002. Broadly, the

“Policy” attempts to:

• Position tourism as a major engine of economic growth

• Harness the direct and multiplier effects of tourism for employment

generation, economic development and providing impetus to rural tourism

• Focus on domestic tourism as a major driver of tourism growth

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• Position India as a global brand to take advantage of the burgeoning global

travel trade and the vast untapped potential of India as a destination

• Acknowledge the critical role of private sector with government working as

a pro-active facilitator and catalyst

• Create and develop integrated tourism circuits based on India’s unique

civilization, heritage, and culture in partnership with States, private sector

and other agencies

• Ensure that the tourist to India gets physically invigorated, mentally

rejuvenated, culturally enriched, spiritually elevated and “feel India from

within”.

The Government’s major policy initiatives include:

• Liberalization in aviation sector

• Pricing policy for aviation turbine fuel which influences internal air fares

• Rationalization in tax rates in the hospitality sector

• Tourist-friendly visa regime

• Immigration services

• Procedural changes in making available land for construction of hotels

• Allowing setting up of Guest Houses

The Indian Ministry of Tourism has identified 31 villages across the

country to be developed as tourism hubs. The states in which these villages have

been identified include Himachal Pradesh, Gujarat, Maharashtra, Bihar, Karnataka,

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Madhya Pradesh, Andhra Pradesh, Kerala, Tamil Nadu, Orissa, Assam, Sikkim,

Rajasthan and West Bengal.

Government’s Open Sky Policy

The Government’s Open Sky Policy, permission for domestic airlines to

commence international flights, start-up of various low-cost carriers, and fleet

expansion by domestic players has created a huge incentive for domestic travelers

to explore far-off destinations within and outside India. The booming aviation

business is bringing an ever-increasing number of passengers to India, and pulling

Indians out of their homes and into hotels.

Foreign Trade Policy

The Foreign Trade Policy announced in April, 2006, offers the following

incentives to the hospitality industry:

Hotels and Restaurants are allowed to import duty free equipment and other

items including liquor, against their foreign exchange earnings under the Served

from India Scheme. As in the previous years, this entitlement is 5 per cent of

previous year’s foreign exchange earnings for hotels of one-star and above

(including managed hotels and heritage hotels) approved by the Department of

Tourism and other service providers in the tourism sector registered with it. The

stand-alone restaurants will be entitled to duty credit equivalent to 10 per cent of

the foreign exchange earned by them in the preceding financial year (instead of the

earlier 20 per cent).

Service exports in Indian Rupees, which are otherwise considered as having

been paid for in free foreign exchange by RBI, will now qualify for benefits under

54

the Served from India Scheme. Also, foreign exchange earned through

International Credit Cards and other instruments as permitted by RBI for rendering

of service by the service providers shall be considered for the purposes of

computation of entitlement under the Scheme.

Benefits of the Scheme earned by one service provider of a Group company

can now be utilized by other service providers of the same Group Company

including managed hotels. The measure aims at supporting the Group service

companies not earning foreign exchange in getting access to the international

quality products at competitive price and providing services of international

standards. This new initiative allows transfer of both the script and the imported

input to the Group Service Company. The earlier provision allowed transfer of

imported material only.

FDI in Hotel and Tourism Sector

Hundred per cent FDI is permissible in the sector on the automatic route.

The term hotels include restaurants, beach resorts, and other tourist complexes

providing accommodation and/or catering and food facilities to tourists. Tourism-

related industry includes travel agencies, tour operating agencies and tourist

transport operating agencies, units providing facilities for cultural, adventure and

wild life experience to tourists, surface, air and water transport facilities to tourists,

leisure, entertainment, amusement, sports, and health units for tourists and

Convention/Seminar units and organizations.

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Opportunities and Challenges

Opportunities in the Sector

Considering India’s size and unparalleled diversity - natural, geographic,

cultural and artistic, there is vast room for growth in tourism industry. As travelers

surge into India, the demand for rooms, across segments, has skyrocketed. The

expected growth of the industry in future has provided its players with an

opportunity to invest in new technologies such as CRM tools and latest security

systems, and to venture into niche tourism segments like Medical, Religious,

Cruise, Casinos, MICE etc. India can also develop infrastructure to host

international conferences and trade shows, thus increasing its share of tourist traffic

from such activities.

Critical Success Factors

The key success factors for the Hotel Industry are mentioned as follows:

Site and Location: This can be considered the most critical factor in

determining the success of a hotel property. In addition to identifying a city, the

site location within the city also assumes significance and issues like distance from

the Central Business District (for metro hotels) and connectivity (access to roads,

proximity to airports) assume importance.

Positioning: The positioning of the hotel according to the target guest

segment is equally important. For example, business hotels set up to cater to the

high yielding corporate clientele in metro cities would have a distinct competitive

advantage over facilities targeted towards leisure travellers in the same city for

attracting business travellers.

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Financial Flexibility: Development of hotels is a highly capital intensive

activity and new hotel properties, typically, have a high break-even point.

Therefore, financial flexibility is essential, especially during early years of

operations.

Brand Equity: Branded hotels can be further classified into chain hotels and

independent hotels. Chain hotels would typically be affiliated to one of the large

national or international hotel chain. Association with a hotel chains allows the

property to be branded with one of the chain brands. In such cases the property

benefits from the equity of the chain brand and promotion and advertising efforts

made by the chain not only in India but also overseas. This way the property is able

to attract tourists from areas where an independent hotel may not be able to reach

effectively.

Challenges

India’s poor domestic tourism infrastructure is leading to a threat of losing

foreign tourists to other competing countries. India is highly prone to prevailing

socio-economic and political conditions. Like terrorist strikes, riots, epidemics,

political uncertainty, slowdown in reforms etc. The growth in the Indian tourism

sector is accompanied by the imminent destruction of local ecology and an increase

in pollution, which, in the long run, is going to negatively impact the tourism

industry of India. The biggest challenge in the Indian tourism sector is that of entry

of new players, the country’s growing economy has attracted a host of new players,

the number of which is expected to increase further. Aman Resorts, Shangri-la

Hotels, Four Seasons Hotels and The Hilton group are some of the international

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players that are at various stages of establishing presence in India. As the number of

players increases, the competitive intensity in the sector is likely to increase.

Remarkably, unlike earlier, many new entrants are reportedly considering entry into

the mid-market segment, which is currently dominated by non-chain properties.

Tourism Marketing and Promotion Initiatives in India

Incredible India Campaign

To promote India as an ultimate tourist destination on the global tourism

map, in 2002, Government of India promoted the “Incredible India” campaign in

the overseas markets. The campaign was an integrated marketing communication

effort to attract tourists to the country. It projected India as an attractive tourist

destination by showcasing different aspects of Indian culture, history, spirituality,

and yoga. This campaign included visible branding in the outdoor media such as

advertising at airports, on trams, taxis and buses and through the print, online and

electronic media as well as via participation in travel marts and road shows. The

campaign was conducted globally and received appreciation from industry persons

and travellers.

Atithi Devo Bhavah

This is another initiative of the Ministry of Tourism to harness the potential

of the tourism industry in India. It aims to create awareness about the effects of

tourism and sensitise people about our country’s rich heritage and culture,

cleanliness and warm hospitality. It intends to instill a sense of responsibility

towards tourists among the stakeholders of the tourism industry. The main

components of the campaign are training and orientation of taxi drivers, guides,

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immigration officers, tourist police and other personnel directly interacting with the

tourists, while simultaneously creating brand equity for the trained persons. This

concept was designed to complement the “Incredible India” campaign. The Atithi

Devo Bhavah is a seven- point programme of hospitality and training. The

components are captured in the table below.

Table 3.1

Components of Atithi Devo Bhavah

Component Aim

Samvedan Sheelta or Sensitisation

Educate various sections of the tourism industry on how each one of them contributes to the growth of the industry

Prashikshan or Training and Induction

Teach people on how to approach and interact with a tourist, as this forms the ‘moment of truth’ in any service industry

Prerna or Motivation

Motivate people to participate in this programme through various measures; e.g. awards, recognition for the best worker in the segment

Pramani Karan or Certification

Offer certificates to ensure that standards are maintained at all times in the training programme

Pratipushti or Feedback

Obtain feedback from the tourists about the services offered and their experience

Samanya Bodh or General Awareness

Undertake a mass media communication campaign to create general awareness among people about the necessity and the benefits of the Atithi Devo Bhavah programme

Swamitwa or Ownership

Adopt the Atithi Devo Bhavah movement as your own, as many livelihoods are dependent on tourism

Source: Ministry of Tourism, Government of India, New Delhi

Other Promotional Activities

In addition to the aforementioned marketing and promotional activities, the

Ministry of Tourism also organises roadshows in important tourist markets

overseas; arranges overseas marketing meets; undertakes familiarisation tours under

the hospitality programme; and participates in major international travel fairs and

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exhibitions. It also undertakes online promotional activities on Websites in the US,

UK, Germany, Italy, France, Japan, and China as well as on search portals (Yahoo!

and Google). The Ministry of Tourism has 14 offices overseas, through which it

undertakes these activities. It also generates tourist publications in different foreign

languages to promote India as a tourist destination in other countries.

Domestic Tourism in India

Domestic tourism is one of the most vibrant expressions of Indian heritage.

It is the single unifying force, which helps to achieve understanding between

various linguistic, religious and social groups living in different parts of the country.

In the contemporary India, the phenomenon of domestic tourism with its living

vibrant changing dimensions can be expected to make an even greater contribution

towards strengthening the fabric of the unity of India. It is the major way by which

myths are exploded and Indians come to know about Indians. For example, the

North Eastern part of India would have remained an unexplored, mysterious part of

the country had it not opened up and made accessible. Unifying forces can also be

seen in the way food is available throughout India. Domestic tourism has

contributed in not only familiarising different parts of the country to travellers but

in many aspects has influenced the food habits and dress styles, etc. Domestic

tourism also provides the much-needed employment to thousands of small-scale

entrepreneurs and low-scale workers. Small hotel and motel establishments,

roadside eateries-dhabas and inexpensive shopping for local handicrafts are

surviving rather flourishing because of local domestic tourists. Even though

international backpackers also patronise such establishments, a major chunk of

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business for them comes from domestic tourists. Small and middle hoteliers, tourist

transports, shop keepers, etc. largely depend on the domestic tourist market.

A few centuries ago, the Mughal Rulers introduced pleasure tourism by

building luxurious palaces and enchanting gardens in places of scenic attractions.

However, during the British rule in India that domestic tourism received a new

direction and meaning. The establishment of railways and export/import houses at

Port Towns introduced qualitative and quantitative changes in the Indian business

tourism. In addition, the construction of Granite Houses, dark bungalows, forest

lodges etc., provided the infrastructure for leisure and wildlife tourism. Several hill

stations were also developed during the period which became the core of Indian

leisure tourism. The emergence of a large urban ‘middle class’ coupled with better

transport and communication facilities has created a new class of holiday and

leisure tourists in the contemporary India. Thus, domestic tourism has become the

main stay of India tourism and it is likely to grow substantially during the coming

years. The economic, social and cultural advantages of domestic tourism are great

for a country like India.

Some Features of Domestic Tourism

A desirable feature of domestic tourism is to sustain the industry during lean

periods of International tourism by providing an alternative for demand substitution.

It is also less sensitive to various international developments and internal problems,

which generally affect foreign tourist traffic. The demands and expectations of

domestic tourists are also usually reasonable and do not impose heavy investment

burdens on the industry. The infrastructure base for domestic tourism can also

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become a second line of supply at least for some classes of foreign tourists during

peak foreign tourist seasons. These features of domestic tourism make it a desirable

development option for a country with limited capital resources. For a country like

ours it is very important that domestic tourism be fully developed to its potential to

bridge this gap. It is also important that India puts a stop on the rapid movement of

outbound tourists so as to control our trade deficit as explained in the earlier Unit. It

would be in the interest of our country to promote our domestic destinations as we

have no dearth of either sun, sand, sea, mountains or any other natural phenomenon.

Neither do we have any deficiency of history, culture or other man-made

attractions.

The economic and social conditions prevailing in India today are precipitous

for a revolutionary growth in domestic tourism. The economic growth achieved by

the country over the years has created a powerful middle class with reasonable

affluence and disposable income. By and large, these persons also do have access to

paid holidays in the form of Leave Travel Concession (LTC) and incentives.

Socially, they are exposed to greater awareness and sightseeing is thus putting

greater pressure on all forms of tourism infrastructure. It will be further aggravated

by the increased number of business travellers. It is, thus, obvious that any future

development plan should have a strong bias for domestic tourism and it would be

totally inconsistent to make any investment exclusively for international tourism.

(Source: IIPM Report 1998)

Domestic tourism has already become a phenomenon of great significance

in India with the emergence of sizeable middle class with reasonable affluence and

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disposable income and strong desire to travel within the country coupled with

improved transport and other infrastructure facilities. It is now further accelerated

with the introduction of leave travel concessions granted to Government employees

as an incentive and boosted domestic tourism. The economy of hills station

particularly Kashmir, Himachal Pradesh, Garhwal and Kumaon is overwhelmingly

dependent on tourism and particularly on domestic tourism. Similarly the beach

resorts of Goa, Maharastra, Kerala, Tamil Nadu, Odissa are frequented by domestic

tourists round the year and contributes to the local economy. With each country,

domestic tourism contributes to an improved balance of the national economy

through a redistribution of the national income. Domestic tourism also heightens the

awareness of common interest and contributes to the development of activities

favourable to the general economy of the country.

Key Issues in Domestic Tourism

A major issue which emerges in the given scenario is the problem of

degradation and carrying capacity. The tourist attractions of the country are mainly

a multitude of archaeological remains and monuments which are generally in a state

of dereliction and despair; meadows, mountains and beaches which are ecologically

fragile and the entire biotic component of nature including wild life and forests

which are constantly being endangered by human intervention. These resources, if

not adequately protected would get degraded and lead to disastrous results. It is thus

obvious, that a new set of enterprises must be developed for the preservation and

protection of such attractions if they have to be used as tourism products. As in a

manufacturing industry, the products are produced by an enterprise or factory, in a

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service industry like tourism, the products are preserved or protected by the

enterprises.

The Departments of Environment and Archaeology of both the Central and

State Government are armoured with a number of Acts and Rules for the protection

of ecology and environment and preservation of monuments. These acts and rules,

however, do not recognize the existence of tourism phenomenon or for that matter

any developmental activity. The vision of these agencies is also, therefore, often

oriented towards protecting the rules and regulations and not necessarily that of

protecting the monuments or the environment. The funds available with them are

also limited to take up any developmental activity for themselves. The tourist

industries coming up in the development zones should also collectively own the

responsibility of maintaining the protected monuments and areas either by paying a

development cess by undertaking the activity for themselves. The introduction of

such a scheme for each monument and other places of tourist attraction is

imperative to take into account the phenomenon of mass movement of tourists.

An associated problem requiring attention is the carrying capacity of each

tourist centre. The physical, biological and infra-structural features impose

restrictions on the number of visitors that can be received by any practical area

during a given period of time. A clear assessment of this carrying capacity and

regulation of tourist flow are particularly important for areas with fragile ecology

and social systems. This must, therefore, form a part of the tourism development

programme of any area. Domestic tourism offers direct markets to many suppliers

of tourism services unlike international tourism. For example, tourist transport

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operators can directly market their products to tourists in the domestic market,

whereas for international tourists they have to depend on tour operators or hotels,

etc. The same can be said for the accommodation sector.

Trend and Growth in Tourist Arrivals in India

The tourist arrivals in India (other than visits to States along), both domestic

and foreign tourist arrivals, have grown substantially over the years from 2001 to

2010.

Table 3.2

Trend in Foreign Tourist Arrivals Across India, 2001-2010

Year Foreign Tourists Arrivals

(FTAs) in India (in Million)

% change over the Previous Year

2001 2.54 -4.15

2002 2.38 -6.30

2003 2.73 14.71

2004 3.46 26.74

2005 3.92 13.29

2006 4.45 13.52

2007 5.08 14.16

2008 5.28 3.94

2009 5.17 -2.08

2010 5.58 7.93 Source: Bureau of Immigration, Government of India, for 1997-2009 Ministry of Tourism, Government of India, for 2010-2011

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The inflow of foreign tourists, which was 2.54 million in 2001, has

increased to 5.58 million in 2010 (Table 3.2). Except in three years, the inflow of

foreign tourists has increased up relative to previous years.

The foreign exchange earnings from tourism in India was US$ 3198 million

in 2001 with decline of 7.57 per cent compared to the previous year. However, in all

years except 2001, 2002 and 2009, the foreign exchange earnings from tourism had

experienced a positive growth (Table 3.3).

Table 3.3 Trend in Foreign Exchange Earnings from Tourism in India, 2001-2010

Year

Foreign exchange in USD Foreign Exchange in INR

(in US$ Million)

% of Change over Previous

Year (in Rs.Crore)

% of Change over Previous

Year 2001 3198 -7.57 15083 -3.47

2002 3103 -2.97 15064 -0.13

2003 4463 43.83 20729 37.61

2004 6170 38.25 27944 34.81

2005 7493 21.44 33123 18.53

2006 8634 15.23 39025 17.82

2007 10729 24.26 44360 13.67

2008 11832 10.28 51294 15.63

2009 11394 -3.70 54960 7.15

2010 14193 24.57 64889 18.07 Source: Bureau of Immigration, Government of India, for 1997-2009 Ministry of Tourism, Government of India, for 2010-2011

Only in two out of 10 years, the percentage of change over previous years

was negative when measured in terms of rupee. Tourists from Unites States of

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America (USA) were the most occupying 16.40 per cent of the total foreign tourists

who visited India in 2010 (Table 3.4). Next to USA, tourists from United Kingdom

(UK – 13.52%) Bangladesh (6.82%), Canada (4.30%) and Germany (4.01%)

occupied second, third, fourth and fifth places in the list.

Table 3.4

Top 10 Source Countries for Foreign Tourist Arrivals in India in 2010

Sl.No Countries

Foreign Tourists Arrivals (FTAs)

in India (in Million)

% Share to Total

1 USA 0.916 16.40

2 UK 0.755 13.52

3 Bangladesh 0.381 6.82

4 Canada 0.240 4.30

5 Germany 0.224 4.01

6 Sri Lanka 0.219 3.92

7 France 0.218 3.90

8 Japan 0.165 2.95

9 Australia 0.164 2.94

10 Malaysia 0.160 2.87

Total Top 10 Countries 3.442 61.64

Others 2.142 38.36

All Countries 5.584 100.00 Source: Bureau of Immigration, Government of India

The number of foreign tourists who visited a particular State or Union

Territory in India was 5.44 million in 2001 but that declined to 5.16 millions in

2002 (Table 3.5).

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In all years between 2003 and 2010, except in 2009, there was an increase

in inflow of foreign tourists to any one State or Union Territory in India (Table

3.5). In 2010, the number of foreign tourists who visited State / UT stood at 17.85

millions with a growth of 24.22 per cent compared to the previous year.

Table 3.5

Number of Foreign Tourists Visited to a Particular State / UT in India, 2001-2010

Year Foreign Tourists Visits

(FTVs) to States (in Million)

% change over the Previous Year

2001 5.44 -7.64

2002 5.16 -5.15

2003 6.71 30.04

2004 8.36 24.59

2005 9.95 19.02

2006 11.75 18.09

2007 13.26 12.85

2008 14.38 8.45

2009 14.37 -0.07

2010 17.85 24.22 Source: States / UTs Tourism Departments

In Foreign tourists’ arrivals to States, Maharashtra stood first with an

inflow of 50,83,126 foreign tourists in 2010 with a percentage share of 28.47 per

cent to total. Following Maharashtra, Tamil Nadu is the State which occupies the

second Place with foreign tourists inflow of 28, 04,687 which was 15.71 per cent

to the total foreign tourists visits to the States. Delhi occupies the third place with

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an inflow of 18,93,650 foreign tourists (10.61%)and Uttar Pradesh comes in

fourth place with an inflow of 16,75,123 tourists (9.38%). (Table 3.6)

Table 3.6

Top 10 States / UTs of India in Number of Foreign Tourist Visits in 2010

Sl.No States Foreign Tourists Arrivals

(FTAs) to only States (in Lacs)

% Share to Total

1 Maharashtra 5083126 28.47 2 Tamil Nadu 2804687 15.71 3 Delhi 1893650 10.61 4 Uttar Pradesh 1675123 9.38 5 Rajasthan 1278523 7.16 6 West Bengal 1192187 6.68 7 Kerala 659265 3.69 8 Bihar 635722 3.56 9 Himachal Pradesh 453616 2.54

10 Goa 441053 2.47 Total Top 10 States 16116952 90.28 Others 1735825 9.72 All States / UTs 17852777 100.00 Source: State / UT Tourism Departments

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Table 3.7

Number of Indian Nationals Departures from India, 2001-2010

Year Number of Outbound Tourists from India

(in Million)

% change over the Previous Year

2001 4.56 3.17 2002 4.94 8.33 2003 5.35 8.30 2004 6.21 16.07 2005 7.18 15.62 2006 8.34 16.16 2007 9.78 17.27 2008 10.87 11.15 2009 11.07 1.84 2010 12.07 9.03

Source: Bureau of Immigration, Government of India, for 1997-2009 MOT – 2010-11

The outbound tourists, the Indian nationals visiting other countries as

tourists also increased over the years. The number of outbound tourists, 4.56

millions in 2001, kept increasing continuously till the end until reach at 12.07

million in 2010 (Table 3.7).

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Figu

re

: 3.1

71

Table 3.8

Number of Domestic Tourists Visits to All States / UTs in India, 2001-2010

Year Number of Domestic

Tourists (in Million)

% change over the Previous Year

2001 236.47 7.43

2002 269.60 14.01

2003 309.04 14.63

2004 366.27 18.52

2005 391.95 7.01

2006 462.31 17.95

2007 526.43 13.87

2008 563.03 6.95

2009 668.80 18.79

2010 740.21 10.68 Source: State / UT Tourism Departments

The domestic tourists visits to various States across India was 236.47

millions in 2001, increased by 14.01 per cent, 14.63 per cent and 18.52 per cent to

previous year levels in 2002, 2003 and 2004 respectively. After showing a

continuous increase, the inflow of domestic tourists touched 740.21 millions in

2010 (Table 3.8).

Andhra Pradesh topped the list of domestic tourist visits of 155789587 (155

millions) with a share of 21.05 per cent to the total domestic tourists across India

(Table 3.9).

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Table 3.9

Top 10 States / UTs of India in Number of Domestic Tourist Visits in 2010

Sl.No States Domestic Tourists

Visits to States (in Million)

% Share to Total

1 Andhra Pradesh 155789584 21.05

2 Uttar Pradesh 144754977 19.56

3 Tamil Nadu 111637104 15.08

4 Maharashtra 48465492 6.55

5 Karnataka 38202077 5.16

6 Madhya Pradesh 38079595 5.14

7 Uttarkhand 30206030 4.08

8 Rajasthan 25543877 3.45

9 West Bengal 21072324 2.85

10 Gujarat 18861296 2.55

Total Top 10 States 632612356 85.46

Others 107601941 14.54

All States / UTs 740214297 100.00 Source: State / UT Tourism Departments

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Figu

re

: 3.2

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Uttar Pradesh is the second state with a domestic tourist inflow of

144,754,977 (144.75 millions) (19.56% to total), and Tamil Nadu comes third with

111.64 million domestic tourists (15.08% to total).

Tourism Scenario in Tamil Nadu

Tamil Nadu, the southern-most State of India, nestles in the Indian

peninsula between the Bay of Bengal in the east, the Indian Ocean in the south and

the Western Ghats and the Arabian Sea on the west. In the north and west, the

State adjoins Karnataka, Andhra Pradesh and Kerala. Tamil Nadu, with an

estimated area of 1,30,058 sq.km. ranks eleventh among the states of India in size.

The population of Tamil Nadu as per the 2001 Census is 62.40 million,

constituting 6.05 per cent of the total population of India. Chennai (Madras) is the

capital city. Other important cities/ places are Coimbatore, Salem, Madurai, etc.,

Tamil Nadu has a rich variety and diversity in its geography and climate with

coastal plains co-existing with tropical rain forests, river valleys and hill stations.

The State can be broadly divided into two natural regions - the coastal plains and

hilly western area. Apart from the Western Ghats that separates Tamil Nadu from

Kerala, the State also has another mountainous chain, the Eastern Ghats that

comprises mainly low rocky hills. The main river Cauvery, which is 760 km long,

flows along the entire breadth of Tamil Nadu. Other major rivers are the Palar,

Pennar, Vaigai and Tamiraparani and the west flowing river Periyar. Tamil Nadu

has an equatorial, tropical climate in the inlands and an equatorial, maritime

climate in its coastal regions

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Tamil Nadu is a State with several distinguished tourism genre, such as

cerulean mountains, verdant vegetations, sandy beaches, mammoth monuments,

timeless temples, fabulous wildlife, scintillating sculptures and reverberating rural

life. It has picturesque spots, continuing heritage, cultural confluence and aesthetic

magnificence. Tamil Nadu has excellent hill stations like Ooty, Kodaikanal,

Yercaud, Elagiri, Javvadhu Hills, Kolli Hills, Sirumalai Hills, Valparai, Topslip,

Parvathamalai Hills and Pachamalai Hills. It has silvery cascades in Courtallam,

Hogenakkal, Thiruparappu, Monkey falls, Thirumurthi Malai, Akasa Gangai and

Papanasam. It has excellent National Parks like Guindy National Park and

Anamalai National Park. It has wildlife sanctuaries in Mudumalai, Kodiakarai,

Kalakkad, Mundanthurai and Berijam. It has Botanic Gardens in Ooty, Kodaikanal

and Coimbatore. It has UNESCO declared monuments like living Chola temples at

Thanjavur, Darasuram and Gangaikondacholapuram, monuments at

Mamallapuram and Nilgiris Heritage Train. The vast coastline of Tamil Nadu has

many silvery beaches like the Marina, Elliots, Thiruvanmiyur, Tiruchendur,

Rameswaram and Kanniyakumari. The temples of Tamil Nadu reverberate with

spirituality and music. Madurai, Rameswaram, Kumbakonam, Chidambaram,

Thanjavur and Tiruchirappalli have innumerable temples with different deities.

The finely hewn grandeur sculptures reflect artistic excellence and cultural

splendour.

As Tamil Nadu has its unique culture and abundant tourism potential,

tourists from upcountry and abroad flock the tourist spots throughout the year. The

spots get over-crowded during the seasons. To facilitate the tourists, Tamil Nadu

Tourism has been taking enduring efforts to promote tourist places by providing

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basic infrastructure like public convenience, rest shed, drinking water, road

improvement, car parking, etc.

Tourist expenditure generates multiple effects with extensive outreach

along its value chain. Adding to the demand for a variety of goods and services,

tourism offers potential to exploit synergies across a large number of sectors such

as agriculture, horticulture, poultry, handicrafts, transport, construction sectors,

where growth of income has favourable impact on poverty alleviation.

Tourism enhances the performance of the tourism sector in an

environmentally and culturally sustainable and socially inclusive manner. This

would be reflected in:

1) Increase in the duration of stay,

2) Distribution of income and benefits from tourism and

3) Enhancement of management of natural and cultural heritage sites.

It results in:

• integrated development of high-priority tourism infrastructure in high

potential tourism circuits,

• enhanced connectivity and improved environment, utilities, and tourist

services,

• improvement of institutional and regulatory frameworks that will ensure

coordinated efforts of multiple agencies,

• promotion of environmentally and culturally sustainable and socially

inclusive tourism development,

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• encouragement of private sector and community participation in tourism,

and

• capacity building and human resources development for sustainable

tourism and destination management through employment generation,

poverty alleviation, environmental regeneration, advancement of women

and disadvantaged groups.

Tourism Policies of Tamil Nadu

The Government of Tamil Nadu has formulated its vision recently to ring

Tamil Nadu on the map of International Tourism by marketing it as an important

destination with heritage sites. The Tenth Plan has set a target to increase the

tourist inflow by 10-12% per annum instead of the present level of 7-9% and to

increase the duration of stay of foreign tourists from 4-7 days to 6-8 days. In the

case of domestic tourists the duration of stay in the State is set to be increased to

10-12 days from the present level of 7-9 days. The policy envisages promoting

eco-tourism, tapping the potential of coastal belt and making the tourism a core

competent sector. The seven-Point Action Plan presented in the 64th SKAL World

Congress at Chennai in 2003 lays emphasis on the development of lesser-known

destinations, positioning Chennai and Coimbatore as Destinations for International

conventions and exhibitions, developing common circuits with other States of

India and immediate neighbour in particular. Filling up micro-level infrastructure

gaps in major tourist destination, facilitating charter flights and cruise tourism etc.

are other aspects, which have been stressed in the policy documents.

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Segments of Tourism in Tamil Nadu

The Tourism Department in the last three decades gained rich experience in

interacting with all categories of tourists. On an analysis, it is seen that each tourist

has certain individual priorities. Tamil Nadu possesses the tourist potential to

satisfy their aspirations. The different tastes the tourists have in mind are

epitomized below:

Leisure Tourism

Some tourists visit Tamil Nadu only for fun or enjoying their leisure. The

possibilities for leisure activities are enormous in Tamil Nadu. Marina Beach in

Chennai, and Mamallapuram Beach close to Chennai, are the major beaches in

Tamil Nadu. Although not a beach resort, Kanyakumari, which forms the southern

tip of the country, looks out over the Indian Ocean, the Arabian Sea and the Bay of

Bengal. It affords the rare spectacle of watching the sun set on the horizon at the

same time as the moon rises on the other side. But, some of these beaches are not

recommended for swimming. People usually visit hill stations, beaches, waterfalls,

zoological parks for leisure activities.

Pilgrimage Tourism

Tourists especially senior citizens are interested only in visiting temples

and offering worship to their favourable deity. They move to tourist centres only if

time permits and provided the trip is easy on the purse. It requires planning and

meticulous follow up.

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Heritage Tourism

Tourists irrespective of their varied interests have one thing in common i.e.

they would like to go around heritage monuments which are plenty in Tamil Nadu,

viz. five world heritage monuments identified by the UNESCO, 48 centres

declared as heritage towns by the Government of Tamil Nadu and Innumerable

heritage monuments declared by the Archaeological Survey of India and the

Archaeology Department, Government of Tamil Nadu.

Adventure Tourism

Adventure travel appears to have developed out of the broader, wider

growth of traditional outdoor and wilderness recreation during the 20th century.

Unlike other forms of recreation, adventure travel offers a unique opportunity in

which participants become more experienced and pursue extended scales of

"adventurous endeavours." Traditional forms of recreation usually involve

elements of skill in a specific outdoor setting. It is this "setting" that provides the

primary attraction in special interest travel. However, in adventure travel, it is the

"activity" that attracts travellers as participants. This study argues that adventure

travel is primarily associated with activities where the purpose of trip is to be

engaged in experiences through participation rather than in sightseeing at

traditional tourist attractions.

To define adventure travel, various components including activity,

motivation, risk, performance, experience, and environment must be considered.

Tamil Nadu Tourism is promoting adventure tourism activities in all tourist spots.

Adventure boats are available at Muttukadu and Mudaliarkuppam. Trekking

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equipments are given on hire to the tourists by Tamil Nadu Tourism. Apart from

providing adventure sports activities, Tamil Nadu Tourism is also coordinating

with Youth Hostels Association of India in conducting Trekking programme in the

hilly region. Water scooters, Speed boats, Kayaks and Banana Boats in

Mudaliarkuppam provide thrill to the youngsters. Variety of adventure sports have

been introduced in island grounds with private participation. Paragliding in

Yelagiris attract tourists in large numbers. Parasailing is going to be introduced

shortly in Mudaliarkuppam.

Cruise Tourism

Rail and road transport are very common among the people. Some tourists

go in for Air / Cruise mode of transport even if it is costlier. At any cost, the

tourists desire to enjoy the holiday even before they reach the actual tourist spot.

Tourists who are reaching Chennai and Thoothukudi Ports by cruise are taken to

the nearby tourist destinations i.e. Mamallapuram and Madurai.

Rural Tourism

To showcase rural life, art, culture and heritage of rural locations in villages

and to benefit the local community economically and socially as well as to enable

interaction between tourists and local population for a mutually enriching

experience, the Tamil Nadu Tourism has decided to develop and promote rural

tourism. The rapid industrialization has forced the people to move out of villages.

As a result, people especially children do not know what constitutes a village. The

parents are keen to show their children the idyllic surroundings of our native

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villages. The way of life of the inhabitants is an important tourist product which

attracts a large number of tourists.

The Ministry of Tourism, Government of India has partnered with the

UNDP for Endogenous Rural Tourism as pilot projects for capacity building.

Within prescribed limits, the hardware projects are funded by the Ministry of

Tourism, Government of India and the funds for capacity building are provided by

the UNDP through Ministry of Tourism, Government of India. The software

component was implemented with the involvement of an NGO identified by the

UNDP in co-ordination with the District Collector and the local community. The

GOI also extends the scheme of Capacity Building for Service Providers (CBSP)

to other rural sites beyond those covered under partnership with the UNDP.

Responsible Tourism

Tamil Nadu Tourism has been taking ceaseless efforts for the promotion of

rural areas as it has the responsibility to showcase its villages, its way of life to

tourists especially to the younger generations. This strategy turns rural areas

tourist- friendly and it develops the socio-economic status of the local inhabitants.

The aim of Responsible Tourism is to inculcate the responsibility of the local

populace (hosts) towards fragile eco-system, best practices and caring the guests

and also making the visiting tourists more responsive towards culture, conventions

and customs to avoid exploitation.

Business Tourism

Top business executives toil throughout the year to make more and more

profits. They rarely find time to go anywhere except where the business demands

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their presence. Whenever they find even a small gap, they will not hesitate to make

a short visit to the nearest tourist spot.

Medical Tourism

Tamil Nadu provides a very good health care to people from all over the

world. Ultra-modern corporate hospitals, talented medical professionals, state-of-

the-art medical facilities and a large number of Government hospitals have helped

patients from various parts of the country and the world to come, convalesce and

return with good health. The Department of Tourism has realised that it is essential

to provide facilities for them to visit places of tourists’ importance, so that they can

recuperate and get rejuvenated to normalcy in a short period of time.

Further, the Department of Tourism in association with the hospitals has

embarked on the mission of spreading the concept of Medical Tourism. This

initiative will grow at an exponential rate and bring success to all players

concerned by providing utmost satisfaction to the patients from diverse

backgrounds. Considering the importance of Medical Tourism, a Medical Tourism

Information Centre has been established in the Tamil Nadu Tourism Complex.

Travel Desks in various hospitals were set up in Chennai and Madurai.

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To oversee the entire process of treatment received by the medical tourists,

both from upcountry and abroad, a Core committee has been formed, drawn from

various leading medical organisations and the Directorate of Medical Education.

The Committee is expected to advise the Tamil Nadu Tourism on day-to-day

matters related to healthcare to tourists. With the help of the non-governmental

enterprise, MEDITOUR INDIA and the medical organisations, a comprehensive

database of all the leading hospitals in our State has been prepared up linking their

information through Tamil Nadu Tourism website, for the benefit of patients who

wish to come to Tamil Nadu for treatment.

Capacity Building Workshops were conducted to CEOs and Front Office

Managers of various Hospitals in Chennai, to sensitise them towards the rapidly

growing phenomenon of Medical Tourism. To make their services tourist-friendly,

many hospitals have opened “travel desks” at their Reception Counters. Keeping

the aspirations and apprehensions of the foreign tourists in mind, Tamil Nadu

Tourism issued guidelines to various hospitals to streamline the procedures and to

make the process of diagnosis and treatment more expedient, cost-effective and

transparent.

Tamil Nadu Tourism aims to gear up the leading hospitals in our State to

attract medical tourists, which has financial, social, cultural and emotional

potential and create an environment of optimal utilisation of the state-of-the-art

facilities available in many of the hospitals of our State, thereby bringing Tamil

Nadu to the forefront of Medical Tourism in our country. The Core Committee

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held a series of meetings. The important decisions taken by the Core Committee

are:

• Identify hospitals for listing

• Co-ordinate with listed hospitals

• Publish a Folder on Medical Tourism

• Open Travel Desks at listed hospitals

• Organise capacity building training for staff manning Travel /

Medical Tourism Desks in the Corporate and listed Hospitals

• Organise Seminar / Workshop

Now, Medical Visas up to one year validity is extended to health tourists

and their attendants. This has resulted in the growth of Medical Tourists arrival in

Tamil Nadu.

Eco-Tourism

Some of the tourists evince keen interest in nature. There is abundant

natural wealth in Tamil Nadu viz. hill stations, waterfalls, forests, bird sanctuaries,

beaches, etc. A separate Eco-Tourism Wing is being set up by Tamil Nadu

Tourism by posting an officer from the Forest Department. The vision is to make

Tamil Nadu a world renowned destination specialising in sustainable tourism

through focused efforts on creating synergy among all stakeholders, encouraging

capacity building and public-private partnerships with revenue generating

strategies.

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Culture Tourism

During leisure days, festive days, etc., people intend to visit nearby places

to exchange their views among kith and kin. These visits naturally make them visit

places of name and fame together.

Educational Tourism

Students undertake trips to abroad to secure higher studies and

professionals to polish their talents. Tourism here automatically gets triggered.

Sports Tourism

People now from the rich and the poor, the young and the old spare their

time for sports activities. One segment of them undertakes tours to nearby cities

and abroad for sports activities. Inevitably Tourism participates in their tour.

Tourism Wealth of Tamil Nadu

Tamil Nadu is a unique and fascinating State, where technology co-exists

with tradition, old architecture blends with contemporary vitality and where nature

is at its unsullied best. These make Tamil Nadu a year round destination. It boasts

of abundant tourist wealth, which can be broadly grouped under the following

heads:

Hill Resorts: They are a beautiful mix of mountain ranges and plains with

pastoral landscape, exotic plants and shrubs, and grassy hillocks. Here tourism

remains environmentally benign. The notable hill resorts are Udhagamandalam,

Kodaikanal and Yercaud.

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Beach Resorts: Out of 7100 km long coastline that India enjoys, Tamil

Nadu has a 1000 km long spectacular coastline with sugar-white bays and sun -

drenched beaches. Marina beach is the second longest in the world. The recent

beautification drive launched by Government on the Marina has earned the

appreciation of all and Marina has been restored to its past glory.

Waterfalls: They present an awesome spectacle with the colossal cascade

of water. Hogenakkal, Kutrallam, Thirparappu, Kumbakarai, Papanasam etc. are

worth mentioning here.

Wildlife sanctuaries: Mudumalai, Anamalai, Mundanthurai, Kalakkadu

will attract the attention of youngsters and wildlife enthusiasts.

Zoological Parks: They have abundant wildlife that can be seen and

appreciated in their natural habitat. Eg.Vandaloor Zoo, Vadanthangal Birds

Sanctuaries.

Bird Sanctuaries: These visitors can be seen in close range during their

sojourn to India, when the climate is inhospitable in their homelands.

Eg.Vadanthangal

Botanical / Horticultural Gardens: For those who have a green thumb and

for those who can understand the aesthetics of colour and fragrances, these gardens

that are immaculately maintained will provide a visual feast. Eg.

Udhagamandalam.

Temples / Churches / Mosques: To understand, appreciate and value our

heritage which firmly believes in the by-line that there is Unity in Diversity. The

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wealth of the artistry and sensitivity that goes into the idols, carvings that are

exquisite and extravagant will make the individual feel generous in spirit. The

carvings, statues, pillars and buildings are delicate and distinct but at the same time

are integrally linked with each other. It displays the ingenuity and artistic skill of

sculptors and artisans. The history of some of the pilgrim centres dates back to

more than a 1000 years and we realize that when compared the life of a human

being is very small and very transient.

Heritage Monuments: This is where the architecture is unique and

inspiring, and has made time stand still for those who want to appreciate the past.

They are marvels of engineering of the bygone era.

Mangroves: These forests at Pichavaram in Cuddalore District are one of

the largest mangroves in the world. Mangroves are also found in Muthupettai in

Thiruvarur District.

Lakes: The Pulicat Lake is the second largest saltwater lagoon in India,

after Chilka Lake in Odissa.

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Tourist Arrival Trend in Tamil Nadu

Tamil Nadu is notable for its steady progress in tourism in the recent years.

In the year 2001, 238.1 lacs of domestic tourists and 7.7 lacs foreign tourists

arrived in the state. Though there was a small decline in inflow of foreign tourists

in 2001 (-2.5%), in the remaining years up to 2010, there was a continuous uptrend

in the foreign tourist inflow in Tamil Nadu. The inflow of domestic tourists

exhibited a year on year increase between 2001 and 2010. In 2010, the domestic

tourist inflow was 1030.1 lacs with growth of 32.0 per cent compared to the

previous year. Both domestic and foreign tourist inflow in Tamil Nadu was 1058.2

lacs (105.8 million) with a growth of 31.6 per cent compared to the previous year

2010 (Table 3.10).

Table 3.10

Trend in Domestic and Foreign Tourist Arrivals in Tamil Nadu, 2001-2010

Year

Domestic Tourists Foreign Tourists Both

Number (in Lacs)

% of Change

over Previous

Year

Number (in Lacs)

% of Change

over Previous

Year

Number (in Lacs)

% of Change

over Previous

Year 2001 238.1 3.6 7.7 -2.5 245.8 3.4

2002 246.6 3.6 8.0 3.9 254.6 3.6

2003 270.6 9.7 9.0 12.5 279.6 9.8

2004 298.3 10.2 10.2 12.9 308.5 10.3

2005 323.4 8.4 11.8 16.0 335.2 8.7

2006 392.2 21.3 13.4 13.3 405.5 21.0

2007 506.5 29.2 17.5 31.2 524.0 29.2

2008 626.2 23.6 20.4 16.4 646.6 23.4

2009 780.4 24.6 23.7 16.1 804.1 24.4

2010 1030.1 32.0 28.1 18.4 1058.2 31.6 Source: Ministry of Tourism (MR Division), Government of India, States Profile

and Tourism Development, Final Report, 2010.

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Figu

re

: 3.3

90

Tourism Promotional Activities in Tamil Nadu

Tamil Nadu Tourism comprises Tourism Department in the Secretariat, and

a Commissionerate of Tourism functioning to formulate policies and implement

programmes for the development of tourism sector in the State. Tamil Nadu

Tourism Development Corporation is a State owned public sector undertaking to

initiate novel ventures and innovate new schemes for providing demonstration

effect to the private sector. In performing this role, Tamil Nadu Tourism

coordinates the activities of various other Government Departments / agencies and

the private sector. Tamil Nadu Tourism Development Corporation (TTDC) has

been operating Hotels, Youth Hostels, Restaurants, Tours, Boat houses, Telescope

houses as a forerunner for the private sector to follow as new area of business

proposition.

In this chapter, the tourism scenario, policies and initiatives for tourism

development, foreign direct investment in Tourism in India were discussed. From

the discussion, it is identified that India has enormous potential, such as historical

monuments, places of religious importance, mountain, beach resorts, wildlife

sanctuaries, places for adventure tourism and winter sports attracting foreign

tourists from many countries all over the world apart from domestic tourists. Both

State and National government has been tirelessly taking many steps to improve

both domestic and international tourism in India. It is also understood that there

has been a continuous uptrend in the inflow of both domestic and foreign tourists

over the period in India. The contribution of the Tamil Nadu in the development

of domestic and international tourists is found to be more important. In attracting

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domestic tourists, Tamil Nadu is ranked third, whereas in attracting foreign tourists

it is ranked second at all India level. In Tamil Nadu there has been a continuous

positive growth in both domestic and foreign tourist inflow. On the whole, from

the discussion of tourism in Tamil Nadu, it becomes apparent that it has a lot of

potential for promoting tourism for both domestic and international tourists.