Indian Tourism Industry Overview

FOSTIIMA Business School, New Delhi Page 1

WAC – ASSIGNMENT

ON

KERALA TOURISM

INDUSTRY

Presented To:

Ms. Nadira Ma‟am

Presented By:

Atul Jain

Roll No. 69

MBA - Finance


TABLE OF CONTENTS

S.NO. TOPICS PAGE NO.

EXECUTIVE SUMMARY

3

CHAPTER. 1.

INTRODUCTION

INDIAN TOURISM INDUSTRY OVERVIEW

4

CHAPTER. 2.

SYNOPSIS: KERALA

2. KERALA TOURISM INDUSTRY OVERVIEW

2.1 STRATEGIES TO PROMOTE TOURISM

2.2 SCHEMES

2.3 GROWTH OF TOURISM INDUSTRY

2.4 TRAVELLING TOWARDS THE FUTURE

2.5 AWARDS

5

5

7

7

8

8

CHAPTER. 3.

SYNOPSIS: OTHER STATE

3 OTHER STATES STRATEGY TO PROMOTE

4 TRAVELLING TOWARDS THE FUTURE

9

10

CONCLUSION

RESULT OF STUDY

12

BIBLIOGRAPHY

13


EXECUTIVE SUMMARY

The Indian Tourism Industry played an important role in the development of the

industry, initiating advertising campaigns such as the “Incredible India” campaign, which

promoted India‟s culture and tourist attractions in a fresh and memorable way.

The tourism sector in Kerala, India is quite developed and there is a lot of scope for

further development. Come and enjoy the breathtaking and panoramic sights of swaying

palms, the land of Ayurveda, sandy beaches and exotic gourmet.

To promote the Kerala Tourism Industry, Kerala has applied certain strategies to

promote the Tourism Industry and by the experience of Kerala, other states are also applying

certain strategies to promote their Tourism Industry.

Travelling towards the future defines the potential of tourism in India with some

facts and figures and future trend.


1. INDIAN TOURISM INDUSTRY OVERVIEW

India‟s tourism industry is experiencing a strong period of growth, growth in high

spending foreign tourists, and coordinated government campaigns to promote,

‘INCREDIBLE INDIA’

The Tourism Ministry has also played an important role in the development of the

industry, initiating advertising campaigns such as the “Incredible India” campaign, which

promoted India‟s culture and tourist attractions in a fresh and memorable way. The campaign

helped create a colourful image of India in the minds of consumers all over the world, and

has directly led to an increase in the interest among tourists.

The tourism industry has helped growth in other sectors as diverse as horticulture,

handicrafts, agriculture, construction and even poultry.


2. KERALA TOURISM INDUSTRY OVERVIEW

The decline in the manufacturing and agricultural industries in the state, the Kerala

Government realized the potential of tourism as a major revenue source. There is a lot of

scope for the development of the tourism industry in Kerala, India as this is one state that

offers you hill stations covered with luxuriant greens, the lovely backwaters that form a

perfect backdrop for tall palms that sway in rhythm to the gentle sea breeze and of course the

popular resorts that offer traditional ayurvedic therapeutics for serious ailments.

The tourism industry in Kerala, India generates a lot of revenue for the state as

tourists come from far and wide to be a part of the culture, fairs, festivals and art forms of this

culturally rich land. Besides all this there is great scope for tourism in Kerala, India as this

south Indian state is a storehouse of ancient temples and other monuments that reflect unique

period architectural style and tell you a great deal about the people and their ways of a

bygone era.

2.1 STRATEGIES TO PROMOTE TOURISM

Marketing Attractions

Traditional Activities

Promotional campaign

Joined Societies & Participation in Trade fairs

Schemes


2.1.1 MARKETING ATTRACTIONS

The early and mid 1990s, Kerala‟s Government concentrated on marketing

attractions such as lagoons, lakes, canals, backwaters, waterfalls, hill stations, the western

ghats, wild life sanctuaries, boathouses and its 600 km coastline.

The State government formed the Bekal Resort Development Corporation (BRDC) in

1995 to take up the task of developing the backwaters, beaches and the scenic landscape at

Bekal in an integrated manner.

2.1.2 TRADITIONAL ACTIVITIES

The focus shifted to the state‟s cultural traditions like Kathakali, Koodiyattam

(traditional dance forms), temple festivals, Kalari Payattu (martial arts), boat races and

Ayurvedic.

2.1.3 PROMOTIONAL CAMPAIGN

High promotional campaign at International Convention Centre, Kochi. This

campaign made the tagline “God‟s Own Country” popular worldwide.

2.1.4 JOINED SOCIETIES AND PARTICIPATION IN TRADE

FAIRS

The state tourism department also entered into a Memorandum of Understanding

(MOU) with, Indian Airlines and Indian Railways to attract high spending tourists.

In 2000, the Kerala Travel Mart Society (KTMS) organized the Kerala Travel Mart-

2000 (KTM-2000). Next 2002, KTM organized (KTM - 2002), it also received an

overwhelming response.

The Kerala state itself actively participated in trade fairs like ITB-Berlin and WTM-

London.


2.2 SCHEMES

1. Concessional power tariff for approved star hotels, amusement parks, motels,

restaurants, ropeway tourist centers and others.

2. A special arrangement was made to introduce Ayurveda coaches by the railways to

give the tourists a rich experience.

3. KTDC even came up with an innovation, comprehensive insurance package for

tourists visiting the state.

4. KTDC‟s six premium property, various schemes under this premium property.

2.3 GROWTH OF TOURISM INDUSTRY

The focused, well planned and well executed marketing strategy, the tourism

industry in Kerala grew by leaps and bounds. Over the years, the number of foreign as well as

domestic tourist arrivals to the state increased significantly. Kerala attracted a lot of domestic

tourists as the number of domestic tourists had increased four times than compared to the

increase in foreign tourists.

International Tourist arrivals in the state increased from 69,000 in 1991 to 0.21

million in 2000, while domestic tourists numbered 5 million during the same year. And

Foreign Tourist arrivals in the Kerala touched to 0.60 million in 2007, while domestic tourists

touched 7.6 million during the same year (2007).

Domestic Tourist Source: Ministry of Tourism Govt. Of India

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

1998 2000 2002 2004 2006 2008 2010

Do

me

stic

To

uri

st

Years

DOMESTIC TOURIST ARRIVAL GROWTH


Foreign Tourist Source: Ministry of Tourism Govt. Of India

2.4 TRAVELLING TOWARDS THE FUTURE

In 2002, it entered into a cross-promotional deal with Maharashtra to jointly attract

domestic and foreign tourists. In addition both states agreed to jointly participate in

International Tourism Fairs.

Kerala entered into an agreement with IBP, India‟s largest petroleum marketing

company. The company proposed to invest upto Rs 300 million. The Mumbai based, the

Leela Group, signed a memorandum of understanding to set up an international airport. The

SFC Group, Abu Dhabi, agreed to invest Rs. 1.05 billion to develop an amusement park,

resort, etc. The Gulfar Group agreed to invest Rs. 300 million to set up oceanarium and few

resorts.

2.5 AWARDS

The state won the first Outlook Traveller – TAAI Award for excellence in 2000-01.

The financial Times, London, identified the state as the „Smart Traveller‟s Choice‟ in

January 2002.

Kerala was even chosen as a „Partner State‟ by the World Travel & Tourism Council

(WTTC) and etc.

0

100000

200000

300000

400000

500000

600000

700000

1998 2000 2002 2004 2006 2008 2010

Fore

ign

To

uri

st

Years

FOREIGN TOURIST ARRIVAL GROWTH


3. OTHER STATES STRATIGIES TO PROMOTE

In the late 1990s, inspired by the „Kerala Experience‟ other Indian States such as

Goa, Rajasthan, Maharashtra, Andhra Pradesh, Karnataka etc. began taking steps forward for

Branding and Marketing themselves as tourist destination.

1. Marketing Attractions

2. Tax Exemption

3. Promotional Activities

4. Building Infrastructure

3.1 MARKETING ATTRACTIONS

Goa, famous for its beaches and Portuguese architecture attracted tourists in large

numbers during the winter season (November to March), as this is the best time of the year

for enjoying the place.

Maharashtra Tourism Development Corporation (MTDC) planned to „Brand‟ the state

using the tagline “Maharashtra Unlimited”. The planned campaign was intended to highlight

the unique features of the state, such as one of the longest coastline in the world, the largest

number of caves and its large variety of architectural styles. The state made plans to organize

road shows not only in the country but also western countries.

3.2 TAX EXEMPTION

Goa, from June to September, tourist arrivals declined significantly, due to the

arrival of monsoon. So, the state government offered tax exemption on sales, expenditure and

food tax. Luxury taxes were reduced from 15% to 20% during normal season.


3.3 PROMOTIONAL ACTIVITIES

Maharashtra‟s promotional activities focused on the attractions offered by Mumbai,

the state capital. Mumbai, one of the most industrialized cities in India, offered tourists many

option like shopping, business, heritage and entertainment, art and film Industry.

MTDC also decided to promote grape growing regions in the state such as Sangli,

Solapur and Nasik as tourist destinations.

3.4 BUILDING INFRASTRUCTURE

The government also spruced up tourist attractions such as the Ajanta and Ellora

caves by building good roads, proper signage, proper lighting and shopping centres.

4. TRAVELLING TOWARDS THE FUTURE

Tourism in India has seen exponential growth in the recent years. India is one of the

most preferred destinations for both overseas and domestic travelers. Tourism enables the

international traveler to understand and experience India's cultural diversity first hand.

According to official estimates the Indian tourism industry has outperformed the global

tourism industry in terms of growth in the volume of foreign tourists as well as in terms of

revenue.

FUTURE TREND

The real GDP growth for travel and tourism economy is expected to be 0.2 per cent in

2009 and is expected to grow at an average of 7.7 per cent per annum in the coming

decade.


Earning through exports from international visitors and tourism goods are expected to

generate 6.0 per cent of total exports (nearly $16.9 billion) in 2009 and expected to

increase to US$ 51.4 billion in 2019.

According to the Ministry of Tourism, Foreign Tourist Arrivals (FTAs) for the period

from January to March in 2009 was 1.461 million. For the month of March 2009 the

FTAs was 472000.The reason for the decline is attributed to the ongoing economic

crisis.

In spite of the short term and medium term impediment due to the global meltdown

the revenues from tourism is expected to increase by 42 per cent from 2007 to 2017.

Growth Graph of Tourist in India Source: Ministry of Tourism Govt. Of India

2007, 13.17

0

2

4

6

8

10

12

14

1994 1996 1998 2000 2002 2004 2006 2008

Tou

rist

s (i

n M

illio

ns)

Years

NUMBER OF TOURIST VISIT IN INDIA


RESULT OF STUDY

"God's earth in all its feelings and beauty is for the people."

.................... Thomas Cook.

The opportunities for all in the Indian tourism industry and connected to the industry

are huge. Both government and private enterprise can gain some quick wins as well start

work on some areas for longer term development. Building on the success to date, there is I

believe a powerful case for the Indian government to challenge its approach to tourism,

reallocating some of its expenditure and in so doing re-energise the industry. There is a

powerful case for the private sector to invest for growth particularly in domestic tourism. If

the government, industry, businesses and individuals employ the sort of joined-up thinking

that this implies then the opportunities for the country are indeed enormous.


BIBLOGRAPHY

1. Case Study

(Kerala Tourism- Branding a Tourist Destination).

2. Ministry of Tourism Government of India.

3. State/UT Tourism Departments.

4. www.google.co.in

5. www.indiatraveldestinations.com

6. www.keralatourism.org

7. www.indiatourism.org

http://www.google.co.in/

http://www.indiatraveldestinations.com/

http://www.keralatourism.org/

http://www.indiatourism.org/

Documents

Indian Tourism Industry Overview