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1.Amit Joshi

2.Priya Patil3.Jaai Jamdar

4.Mahesh Patkar

presents

IMPACT OF TOURISMON INDIAN

ECONOMY

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INTRODUCTION

By Amit

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INTRODUCTIONPart Of Earrings & Experience

Travel & Tourism Interrelated

Dream Machine

People OrientedWorlds Largest Growing Industry

Major Sector Of Indian Economy

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Definitions Of Tourism

A broad and generally

accepted definition of tourism

suggested by the national

tourism policy study (1978) is

that tourism insoles people

taking trips to place or places

outside their home

communities for any purposeexcept daily commuting to

and from work.

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The phenomenon arising from temporary

visit outside for normal place of residence

for any reason other than professional

reasons.

Prof. Medlik

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To government tourism may mean sources of

employment economic activity, per capita

expenditure, multiplier effects.To the industry sectors it may suggest

promotion, arrivals, length of stay, receipts.

Toreligious groupsit bring to mind pilgrimage,

spiritual search, universal brotherhood,

unacceptable from of tourist practices.Jafari (1990)

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Objective Of Tourism

Make positive contribution

Promote local development

Stimulate private conservation effort

Provide visitors with a personal

experience

Empower local communities to

manage ecotourism

Increase environmental awareness of

hosts and visitors

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World Tourism Scenario

The world tourist arrivals increase up to10.7% in 2006

Europe, Asia & the pacific most important

receiving regions ie.74.5%

Receipts of world tourism

USAus$ 74481million

Spain- US$ 54248 million

FranceUS$ 40842 million

Tourism contribution to world GDP 11%

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Share of world: % of Total(2005)

GDP 11.0

Employment 8.0

Exports 7.9

Capital Investment 9.4

Travel And Tourism (T&T) The Worlds Largest

Industry

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Atithi devo bhava

(Guest is God)

India is a journey of mind and soul.It is journey of five senses.

It is a journey of self discovery.It is a journey of self fulfillment.

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INDIA

950 million people with different customs

and convention of life dwell on about

32787 sq km.

More than 800 languages

Oldest culture and heritage

2ndmost populous & 7thlargest country

in the world

366 million domestic tourist.

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F MOUS ST TEWISE TOURIST SPOTS

Jammu & Kashmir Temple of vaishnavi, Devilacks , Ice mountains

,Apple farms

Delhi Taj Mahal, Red fort, Parliament house, India gate,

Kutub-minar

Maharashtra Ajanta & Alora caves, Poona, Mumbai,Mahabaleswar, Matheran, Forts, Konkan.

Goa Panji, Mangeshi temple, Church ,Beaches,

Mhapasa

Karnataka Maisur, Bangalore , Vrindavan Garden, Jungles.Andrapradesh Haidrabad, Ramoji film city

Kerala Lakes, palm forest, Sea-shore

Tamilnadu Chennai, Kanyakumari ,Vivekananda Rock

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TYPES OF TOURISM

TYPES OF TOURISM

NATURE TOURIST

ECO

TOURISM

AYURVEDIC

TOURISM

HEALTH

TOURISM

RELIGIOUSTOURISM

CULTURAL

TOURISM LEISURE

TOURISM

INBOUND

TOURISM

OUTBOUND

TOURISM

DOMESTIC

TOURISM

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ultural TourismFairs and festivals

Traditional lifestyles and

customs.

Arts and crafts

Various organization role.

The Indian council for

cultural relations.

World heritage monuments of

Ajanta, Ellora &

Elephanta.

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Eco-tourism

Proposed in eighties

Offer as potential tools

Diversification of economySeven-mega biodiversity

countries

Policy initiatives eco andadventures tourism policy

Thenmala ecotourism

promotion society

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HEALTH TOURISM

Asia- one of the favorite continent

World class health care facilities along

with worm hospitality and richculture heritage

Major driver of economic growth

It include massage, herbal wraps,exfoliating scrubs and diagnostic

testing

Major center for providing healthy living

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BENEFITS OF HEALTH TOURISM

WEALTH GENERATION

EMPLOYNMENT

GENERATION

RESOURSE UTILISATION

FOREIGN EXCHANGE

BETTER HEALTH CARE

FACILITIES

NATIONAL INCOME

SOCIAL DEVELOPMENT

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Tourism Industry

By Priya

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AN ECONOMIC VIABLE

INVISIBLE EXPORTS

A MARKET

Economic Features Of Tourism

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TOURISM AS AN ECONOMIC VIABLE

Hospitality

Standard of living

Traveling

Providing highest

possible standards

Providing value of

money

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TOURISM AS INVISIBLE EXPORT

Earn more foreign

exchange than other export

Contribution of tourismimports

Do not send any tangible

productTourism asset of country

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TOURISM AS A MARKET

Demand for

international tourism

Growth in international

travel

EmploymentForeign exchange

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Natural And Cultural Environment In The Context

Of The Growth Of Tourism

Tourism is smokeless industry

Keep tradition alive

It is a benevolent circle

Symbolism of fire

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5th largest Economy, growing highly

Huge Outbound Market

Huge Infrastructure Investment Opportunities

100% FDI Permitted

Tax Incentives Available

Investment Facilitation System

India - Business Opportunity

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TOURISM S N INDUSTRYWorlds largest growing industry after oil industry

Travel and transport

Catering and accommodation

Leisure, recreation and business facilities

Labour oriented & labour intensive industryProvides employment

Business firm

Secondary business

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Significance Of Tourism IndustryCollection of industry

Employment to unskilled

peopleEconomic activity

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THE BOOMING TOURISM INDUSTRY

ONE OF THE MAJOR

SECTOR

DOMESTIC TOURIST

KERALA, TAJ MAHAL,

KHUJRAHO, GOA

DISASTER EFFECT ON

INDUSTRY

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REASONS FOR THIS BOOM

Eco tourism

Mountaineering

Winter sports

Beach restaurant

Wildlife tourism

Growth in middle class income

Information technology

Advertising

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Need To Promote Tourism Industry In India

380 lakh. Unemployed

Lack five star activity

(WTO)Leading job creator

Need of high investment

Secondary and tertiary

effect on business

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Limitations Of Tourism Industry

Lack of planning

Unsuitable government policy

Transport facilities

Infrastructure facilities

No government boost

Seasonal effect

Lack of safety measure

Uneven growth

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one star

two star

three star

four star

five star

five star

delux

heritage

hotels

Approved Hotels

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2000-2001,

55.6, 19%

2001-2002,

53.2, 19%

2002-2003,

54.8, 19%

2003-2004,

59.7, 21%

2004-2005,

63.6, 22%

Occupancy of Hotels

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The New Tourism ProductTurning Away From old

products

Turning Towards new

products

-Sensitive

Environment

-Artificial Environment

-Separate Activities -Integrated Experience

-Single Activity Focus -Multiple ActivityFocus

-Seasonal Visitation -All Weather Tourism

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Economic DevelopmentMeans Turning Away From

Fragmented Tourism Industry

And Turning Towards Economic

Development Tool

-Number of Visitors -Economic & Social

Benefit Per Visitor

- Regional Competition - Intelligent

Cooperation

- Price Competition - Time Competition

- Product Dominance - Customer Orientation

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Tourism And Indian Economy

By Jaai

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A large supply of labour and land as well

as plentiful natural resources of wildlife,mountains and beaches, would appear tohave a comparative advantage in tourism.

Sinclair and Stabler

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Contribution To Indian Economy

Important segment of Indianeconomy

Linkage with other sector

Foreign exchange

EmploymentGDP

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GDP & Employment

Actual contribution to GDP:- 2.78%

Direct & Indirect contribution:- 5.83%

Direct employments:- 4.59%

Direct & indirect employments:- 8.27%

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0.62

0.79 0.84

0

0.2

0.4

0.6

0.8

1

% change

2003 2004 2005

Share of India in world Tourism

Receipts

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2.93.5

4.8

5.7

0

1

2

3

4

5

6

Billion

US$

2002 2003 2004 2005

International Tourism Receipts

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2726214

3457477 3918610

0

2000000

4000000

2003 2004 2005

number of tourist

Foreign Tourist Arrivals In

India

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164290

216030251720

0

50000

100000

150000

200000

250000

300000

Rs. in

million

2003 2004 2005

Foreign Exchange Earnings From

Tourism

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0

500000

1000000

1500000

2000000

2003 2004 2005

maharashtra delhi

Foreign Tourist Arrival

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Balance Of Trade

David Ricardo classic economic theory explain

balance of trade with respect to tourism.

Suggestion:

If a country is efficient in exporting a

particular goods or service then it should

carry out specialization in that field of

export.

Foreign currency exchange rates.

Macroeconomic & political condition

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Balance Of Trade

BOT =( Receipts from foreign tourist )

- (payments made by country

outbound tourist)

Total income from tourism industry =

visible receipts + invisible receipts

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Multiplier Effect

Forward and backward

multiplier

Multiplier Rate is 1.2

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0

500000

1000000

1500000

2000000

tajm

ahal

ajantac

aves

elepha

ntac

aves

humay

um,sto

mb

qutabm

inar

2004 indian

2004 foreign

2005 indian

2005 foreign

Visitors to Monuments in India

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Time Of Visit During 2005 To India

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Distribution of Tourist By Gender

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Age Wise Distribution of Tourist

i i f i

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Economic impact of tourism

Fastest growing industry

Worlds largest export industry

$372.6 billion during 1995

Direct and indirect employment

Inflow of foreign exchange

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Employment

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Ecological Impact Of Tourism

Impact on wild life

Water pollutionSoil pollution

Air pollution

Environmental impact

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Tourism and Film Industry

Film industry is a

vehicle of tourism

Industry

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Social and cultural impact of tourism

Affect positively and negatively

Damage landscape, indigenous way of life,

culture and sets of value

Deforestation, pasture destruction

Damage the culture and peace of the people

It generates crime

Govt Contribution to Tourism

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Govt. Contribution to Tourism

By Mahesh

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Tourism Development In Five Year Plan

PLANS OBJECTIVES ACHIEVEMENTS

I. Plan

(1951-56)

Efforts to launch tourism

promotion offices both in India

and abroad and organize tourist

promotional campaigns.

Establishment of Tourism

promotion offices at nine places in

India and five abroad.

II .Plan

(1956-61)

Promotion, basic infrastructure

facilities, accommodation,

ransporta d recreation facilities.

A number of tourist bungalows

constructed which are now named

as "Traveling Lodges".

III. Plan

(1961-66)

To provide facilities such as

transport, accommodation and

winter sports at important

tourist centers.

Provisions and efforts were madeto provide tourism facilities in

places like Gulmarg, Khajuraho,

Bhubaneshwar,Konark,

Madurai, Trichy.

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IV. Plan

(1969-74)

To take up programs to

construct hotels, motels,

cottages, renovations and

expansions of tourist

bungalows, to set up transport

units and duty free shops.

ITDC constructed budget hotels,

rest houses at some importantplaces and could achieve 15%

compound growth rate in foreign

tourist arrivals.

V. Plan

(1974-79)

To develop hotel industry in

the private sector, integrateddevelopment of tourist resorts

and to develop transport

facilities.

Tourist resorts, youth hostels,

forest lodges were constructed at

Kovalam, Gulmarg, Goa and

Kulu Manali.

VI.Plan

(1980-85)

Envisaged to achieve hightargets of tourists - 1.80 million

by 1985 and 3.50 million by

1990.

About 50% of the targets could

be achieved, substantiallyexpanded the existing capacity of

accommodation in the public

and private sectors.

i To foster development of tourism

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VII. Plan

(1985-90)

i. To foster development of tourism.

ii. To accord the status of an

industry to tourism

iii. To redefine the role of public

and private sector investment to

encourage development of tourism.iv. To financially support

handicrafts and other creative arts.

v. To promote national integration

among the people.

Established TFCI and provided finance to

145 projects in backward areas. Also

granted financial assistance to 35 newentrepreneurs to the extent of 51.32 cores.

AnnualPlans

Rs.22.45 cores were allotted for the

development of manpower andinstitutional development in tourism

sector.

VIII. Plan

(1992-97)

The plan aims to develop selected

tourism places and areas,

diversification from culture

oriented tourism to holiday andleisure tourism, development of

trekking, water sports, wildlife and

beach resort tourism, restoration of

National Heritage Projects and

streamlining of facilitation

procedures at airports.

Major scheme is undertaken for setting up

of 'Culinary Institute of India' with foreigntechnical expertise for the development of

manpower and training in the tourism

industry.

T h Pl (2002 2007) M j C

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Tenth Plan(2002-2007) Major Components

To remove the barriers to growth to leverageprivate sector investment

To provide legislative and regulatory support

Mobilize the support of primary players

To create world class destination

To involve rural sector in tourismNational development council

Hotel management

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Objective of Tenth plan

Integrate tourism with socio-economical objective

Create 3.6 millions jobs per year

Enhance international share of India's arrivals to at

list 0.62% by 2007

TOURISM POLICY

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TOURISM POLICY

National tourism policy2002

Arunachalpradesh tourism policy2003

Chattisgarh tourism policy2003

Gujarat tourism policy 2003-2010

Karnataka tourism policy 2002- 2007

Madhyapradesh tourism policy2001-2002

Maharashtra tourism policy

Nagaland tourism policy

Orissa tourism policy

Tamil nadu tourism policy1992

Uttaranchal tourism policy

West bengal tourism policy1996

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National Tourism Policy(2002)

OBJECTIVES tourism as a national priority activity.

India as a tourism destination

improving tourism product to meet the

market needs.

creation of world class infrastructure.

sustained and effective marketing plans

and programme.

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Karnataka Tourism Policy (2002 -2007)

OBJECTIVES

Encourage private participation

Promotion of eco-tourism

Development of travel circuits

Development of new products with global

standards.

Fully tap the tourism potential of the state.

Promotion of adventure sports and highway

tourism.

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Maharashtra Tourism Policy

OBJECTIVES

Planed tourism growth with the help of

exports and local participation

To disseminate information on touristattractions.

To upgrade existing tourism facilities with

international standards.

To provide facilities to youth and budget tourist

Recreational facilities near major business

industrial and urban centers.

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Promotional Measures

Rural tourism

Sporting event

Special city caps

International conference

Tourism awareness programme

Improvement of service standards

Implementation of eco-tourism policies

Additional Calendar of event for VISIT INDIA YEAR

Discounted packages on the visit Malaysia pattern

St U d t k T D l T i

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Steps Undertaken To Develop Tourism

Airline services

Conversation projects

Recognized as export industry

Give infrastructure status to hotels

Rationalization of existing tax structure

Exemption of service tax for the hotel industry

I f t t F iliti

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Infrastructure Facilities

Railways

Rail Tourism

Super Luxury Tourist Train

Discover India Through

Indrial Pass

Airport development

Road transport development

Telecommunication and tourism

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Tourism finance corporation of India (TFCI)

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Incorporation:-27 January 1989

Certificate of commencement:-

1st

February 1989Capital;- Rs. 100 corers

Functions

provide financial assistance

guideline to financial policies

F Of Fi i

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Forms Of Financing

Rupee loans

Underwriting of public issues of

shares/debentures

Guarantee for deferred payments

Equipment finance

Assistance under surplus credit

Merchant banking and advisory

services

Norms Of Assistance

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Norms Of Assistance

Promoters contribution

Debt equity ratio

Period and repayments

Indian Institute of Travel Management (IITM)

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ESTABLISHMENT:-1983

Work done by IITM

Training manpower of tourism industry

Provide academic opportunities

Professionalism of human resources

Software studies

Suggestions For Development Of Tourism In India

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Suggestions For Development Of Tourism In India

Proper government strategies and policies

Infrastructure support

Modern transport facilities

Safety measures

Boost tourism related industry

Proper care of resources

Advertisement and marketing

Easy available of visa

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UNION BUDGET 2007 2008

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UNION BUDGET 2007-2008

To increase the provision for building tourist

infrastructure from Rs.423 crore in 2006-07 to

Rs. 520 crore in 2007-2008

CONCLUSION

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There is an much potential in tourism industry

but the potential can not be properly utilized.

Govt. should take an proper steps to improve the

tourism industry which can be become big

contributor industry towards Indian economy.

We can say the Indian tourism industry is

an sleeping giant. If this giant wake up then it

will be an no.1 in tourism industry in the globe.

CONCLUSION

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