Growth Strategy Travel and Tourism Case Study

8/8/2019 Growth Strategy Travel and Tourism Case Study

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AVALONConsulting

CONFIDENTIAL

2010 Avalon Consulting. All Rights Reserved

Case Study


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Avalon Consulting was invited by to be a part of the working group on tourismcreated by Ministry of Tourism to develop a growth strategy for the sector

Ministry of Tourism

Situation Approach Solution

Client

Situation

Growth Strategy for Travel and Tourism Sector in India

Tourism industry has a very high job creation potential as it generates more jobs for everyrupee of investment as compared to any other industry

Given its job creation potential , a healthy and large tourism industry could be strategicallyvery important for India given that India is expected to add ~120 Mn people to its work forceby 2010 which will make Indias working population around 30% of the global force

However, currently the tourism industry in India is not as developed as many leading countriessuch as China and USA and there is significant room for growth

Honorable Minister of Tourism has constituted a working group comprising of stakeholders i.etop officials from Tourism Ministry, industry associations and industry leaders to understandthe challenges and come up with suggestions for robust growth of the industry

These recommendations are planned to presented to the Honorable Prime Minister

Avalon consulting was invited to be a part of the working group


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Importance of Travel and Tourism in the Indian economy was highlightedand comparisons vis a vis leading global destinations were made


Importance of Travel and Tourism on key macroeconomicfactors such as employment generation and contribution to

GDP were highlighted

Example :Impact on Employment Generation

Macro-economic Impact of Travel and Tourism

Comparison between popular Indian tourist destinations wasmade vis--vis similar popular global locations to understand

and highlight the untapped potential of Travel and Tourism inIndia

Example :

Global Comparison(Great Wall of China Vs Taj Mahal)

Comparison of Indian Tourist Destinations

with Other Popular Tourist Destinations



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Key issues and challenges faced by the industry were identified and gapswere assessed in detail


Examples of GapsKey Concerns

Lack of Infrastructure

Lack of convergence



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Awareness andPromotion


Convergence

It was recommended that a Steering Committee on Tourism (similar to MSME)headed by the Principal Secretary to PM be constituted to drive convergence

Various suggestions on Awareness and Promotion were made. E.g. how to promoteIncredible India aggressively, making tourism sites more tourist friendly, etc.

Skill Development

It was recommended that Ministry of Tourism be made a part of PMs Council on Skill

Development and National Skill Development Coordination Board

Taxation

It was suggested that taxes Taxes levied on Tourism Industry should beunified, rationalised and made globally competitive

Recommendation to address key issues preventing growth of the industrywere made


Infrastructure

Recommendations included development of Integrated Tourism Destinations (ITDs)similar to manufacturing SEZs with details on implementation plan and support

needed for the same


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AVALONConsulting

Raj Nair or K.A. Ramakrishnan or Naimish Dave or Jaldeep SodhiCasa Avalon

61, Dr. S. S. Rao Road, Parel

Mumbai 400 012 - IndiaPhone : 91-22- 66191100

Fax : 91-22- 66191122

E-mail : [email protected] : www.consultavalon.com

mumbai

Premchand C.

No: 10, 3rdFloor, Spur Tank Road, ChetpetChennai 600 031 - India

Phone : 91-44- 43455345

Fax : 91-44- 43455338E-mail : [email protected]

chennai

Sridhar V.E-141, Okhla Industrial Estate, Phase III

New Delhi 110 020 - IndiaPhone : 91-11- 40516600

Fax : 91-11- 40516650

E-mail : [email protected]

new delhi

Documents

Growth Strategy Travel and Tourism Case Study