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CHAPTER – III

HISTORY OF TOURISM AND HOSPITALITY INDUSTRY AND

AGRO TOURISM

History of Tourism and Hospitality Industry:

Tourism is one of the world’s major economic success stories, like time, that

has no beginning or end. It is a phenomenon that has been created and is difficult to

define because of its complexity. When time began so did tourism.

With the Babylonian invention of money and the development of trade in 4000

BC, travel and tourism were invented. Not only were the Babylonians the first to

grasp the idea of money and use it in business transactions, but according to Goeldner

and Brent Ritchie (2006), had they founded the travel business. People could now pay

for transportation and accommodation with money or barter. Beginning in 2700 BC,

the Egyptians started building pyramids as elaborate burial tombs, including the step

Pyramid of Djoser, the Sphinx and pyramid at complexes Ciza and Abusir. So

wonderful were these tombs that they attracted large number of visitors. In the words

of Casson (1974, P. 32)

“As each monument was a hollowed spot, so the visitors always spent some

moments in prayer, yet their prime motivation was curiosity or destination enjoyment,

not religion.”

Around 1500 BC, Queen Hatshepsut took a cruise from Egypt to Punt (on the

East Coast of Africa), the journey is recorded in the temples of Deir -el- Bahari at

Luxor. Another Egyptian, Hartheuf, was an envoy of the pharaoh to Sudan. They

brought home a pygmy trained in native dances as a present for his ruler – the first

recorded souvenir. Easily Egyptians also purchased bargains or specialties abroad for

their friends and relatives. In 1800 BC, a young Uzalum received this request.

“I have never before written to you for something precious I wanted. But if

you want to be like a father to me, get me a fine string of beads, to be worn around the

head.”

Casson (1974, p. 34).

Further evidence of Egyptian travelers is reported by Herodotus.

“The Egyptians meet to celebrate festivals not once a year but a number of

times. The biggest and most popular is Bubastis…, the next at Busiris… the third at

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Sais and so on. They go there on river, men and women, together, a big crowd one

each in the boat… And when they arrive at Bubastis, they celebrate the occasion with

great sacrifices, and more wine is consumed at this one festival than during the whole

rest of the year.”

The same stories, as mentioned above are repeated in Ancient Greece, the

Roman Empire, and the Silk Road. In Ancient Greece, according to tradition, in 700

BC the citizens of city- stated honoured that led to the Olympic Games. The

Phoenicians carried paying passengers around the Mediterranean. People of the Qing

dynasty paid homage to gods and goddess in sacred sites throughout China. As

countries civilizations and economics developed, travel and tourism grew for business

and pleasure.

Indian civilization, also one of the oldest civilizations in the history of

mankind has been explored by various travelers and traders. Though ancient written

records B.C could not be traced, few books and records lead us through the ancient

discovery of India through travelers’ perspective.

• 40 – 70 AD :- Anonymous author of the periplus of the Erythaen

(Red) sea : A merchant hand book, written apparently by an Egyptian Greek,

about trade routes through Red Sea and involving both East Africa and India.

It includes extensive information on ports and products in India.

• 629 – 645 AD: - Xuan Zang (Hsuan – Tsang): Chinese Buddhist monk and

translator travelling over the HinduKush to India. He returned to China via

southern route. His travel and story became fantastic legends.

• 518 – 521 AD: - Song Yun (Sung Yun) / Huisheng: he was sent on a mission

by the Empress Dowager to obtain the Buddhist scriptures in India in 518. He

travelled through Taklamakan Dessert, then further West into HinduKush,

Kabul, and Peshawar.

• 713 – 741 AD: - Hui Chao: Korean monk but grew up in China. He travelled

to India via sea route. He visited various Buddhist kingdoms in India. His

book ‘ The Record to Five Indian Kingdoms’ provided valuable information

on the Islamic and Buddhist distribution among the central Asian Kingdoms

during 8th century.

• 1316 – 1330:- Odoric of Pordenone: - Franciscan monk who travelled via

Constantinople and the Black Sea to Persia, and then via Indian Ocean to India

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in the Early 1320s. His lengthy travel account which he dictated in 1930

became a “best seller” because of its authentic information.

• 1466 – 1472:- Afanasli Nikitin: - A merchant from Russian city of Tver who

travelled through Persia to India. His travelogue describes India.

• 1490 – 1530 :- Babur : the great, great, great – grandson of Timur, Zahiruddin

Muhammad Babur, wrote a stunning memoir of his early life and struggles in

Central Asia before finally settling down in Northern India and founding

Mughal Empire. He wrote extensive descriptive sections on the physical and

human geography, the flora and fauna, nomands in their pastures and urban

environments enriched by the architecture.

• 1579 – 1584:- John Newbery: a London merchant, he undertook three trips.

On the third trip he reached Mughal Court in India. He never wrote much

about his travel trips.

• 1583 – 1591:- Ralph Fitch: English merchant who travelled with John

Newbery to India. The Indian section of Fitch’s writing is not organized and

haphazard. Clearly he must have known a lot more than what made its way

into the writing.

• 1602 – 1607:- Benedict Go, from Portuguese. In 1554, he joined a mission to

meet the Mughal Emperor Akbar. He wrote the travel notes and letters

describing his journey. His account is an unique record by an European to

travel on the overland trade routes in inner Asia at the beginning of 17th

century. The account details human and natural treats to travel and other

aspects of the inner Asian trade.

• 1615-1616:- Richard Steele and John Crowther, agents for the British East

India Company, travelled from Agra, the Mughal Capital to Kandahar. Their

account highlights important overland trade routes, avoiding Portuguese

controlled areas in India.

These examples are just representatives of various travel accounts by travelers

to India and not a comprehensive study.

The domestic travel scenario in India was not very encouraging one. The first

reason was a social taboo. It was forbidden for a Hindu to cross a sea. A person would

be outcasted or would have to face a severe punishment. This discouraged any

adventurous journey overseas. The local travel would be limited to pilgrimage,

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visiting friends and relatives (occasionally) and trade to known places. The distances

were long, routes not known or not secure enough to travel with families, and need to

explore was never encouraged or promoted. Only rich and wealthy who could afford

to travel by their own bullock – carts, horses or other means, could think of setting off

on a journey on their own. Others, as there was no public or affordable transport

easily available would have to walk to whatever destination they would like to go.

People for whom travelling was absolutely necessary would wait for some rich people

to set off for travel or would join group of merchants travelling from one place to

another. Travelling was expensive affair and a traveler set for a long journey would

return may be after months or years.

Hindus while setting off to Kashi Yatra would assure that their house and

family members were taken care of and would bid them final farewell as returning

back safe from the journey was next to impossible. Thus, travel was a risky and costly

preposition; very few would volunteer to travel for exploring.

Sher Khan, a Pathan ruler, in 15th century before Mughal Empire, built a series

of “Sarai” from Punjab to West Bengal on all major travel routes in his kingdom. A

Sarai was a shelter or overnight accommodation provided for travelers on the route. It

would also provide a traveler food, with water and animal fodder for horses and other

animals. This would be free of cost and separate people would be appointed for Hindu

and Muslim travelers to cook food and serve the travelers. One would find such Sarais

after every 12-15 miles on the major trade and travel routes in his kingdom. Later

many of these Sarais became market places for trading and even few became towns

with human settlements around them.

Even in the period of Mughal Empire, Emperor Akbar built Sarais from

Northern to Central India where Mughal Kingdom was spread. This system continued

and functioned well till Aurangzeb ruled the Mughal Kingdom. Later, with the decline

of Mughal Empire due to lack of maintenance and shortage of funds many Sarais

were either abandoned or closed down.

With the end of Mughal Empire in India, the British East India Company

spread her wings all over the India and slowly British started replacing old federal

system of small kingdoms then existed in India. India being a vast country, distances

to travel from East to West and North to South were enormous. The one who wishes

to rule such a huge country needs to have faster and easier communication from one

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end to the other. So to facilitate their rule in India, British developed roads and faster

means to travel.

India was a major market place for British goods and was raw material

provider for Britain. So, faster and cheaper means to transport goods were essential to

keep the trade going to prosper the British Empire. Local people were encouraged to

educate and join British trading companies, as manpower was required at all levels.

Though British rule in India has destroyed the old established Swadeshi artisan,

craftsmen and trade practices in India, it introduced certain new developments like

railway, post-office, printing press and use of machinery in production. This

development was at a heavy price of 150 years of suppressing British rule in India.

In these 150 years of British rule, many Britishers settled down in India or

they would serve for 10-15 years in India at that time. The concept of summer

vacation was introduced, as they would find Indian summers in the plains too hot to

bear. Hill stations were developed and good accommodation facilities were specially

built at these places. By 19th century even the rich native Parsi and Marwari

community people built their own properties at such destinations. Mahabaleshwar and

Ooty are good examples of such hill stations developed by Britishers.

In 1898, during the British era in India, great freedom fighter Lokmanya

Balgangadhar Tilak travelled to the far south of India and abroad till Sri Lanka. His

travelogue about that journey gives an insight about customs, traditions and political

and social scenario of Madras, Colombo, Pondicherry and Rangoon.

For him travelling means gaining knowledge about people, their customs,

traditions and culture. One can gain more knowledge by observing these things and

being part of it than rather just trying to learn it from the books. It is a way to educate

oneself about social and business environment and give a different perspective to

one’s thought process.

In his travelogue he mentions about ‘Annachatra’ run by the Chetti

community in the desert of Sethu Bandha near Rameshwaram in south India. “It

provides food and water to pilgrims travelling from far off places and cost to run is

borne by rich Chetti Community. The cost of running such charity must be enormous

as miles in each direction; there is nothing but the desert.” So Hindu religion is always

gracious towards pilgrims and pilgrim places. Even the Varkaris who do “Pandharpur

Vari” every year are offered food, shelter and other daily necessities in charity

throughout the journey.

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Great Indian Philosopher “Swami Vivekananda set out his journey in 1886 to

discover India. Till 1897 he travelled from Himalayas to South India. As mentioned

by “Shri Lokmanya Tilak”, travel broadens the minds of travelers and teaches things

that no book can teach you. Swami Vivekananda was deeply moved by the condition

of the people. His journey gave him insight and inspired him in his speeches and

literature for years to come. He could represent India in Chicago depicting true picture

of Indian society and the injustice done by England to India.

One could see “Dharmashalas” and “Annachatras” or “Prasadalaya”

distributing food to pilgrims in charity at many of Hindu pilgrim places like Shirdi,

Kashi, and Varanasi and even in Himalayas at high altitudes where carrying

ingredients itself is a task. “Langars” in Gurudwaras is another example of

community generosity towards pilgrims of all religions.

In ancient India, where travel was mostly limited, pilgrim was a major motive

behind travelling and Dharmashalas and Annachatras would fulfill bare basic needs of

a tourist visiting these places. As discussed earlier, when means of transport were

affordable the other motives behind travelling could emerge.

The roots of today’s tourism industry are found in many religious traditions,

such as making visit to Mecca for Muslims. The French Guidebook “The Travels of

Sir John Mandeville (1975) provided travelers with information about Holy Land,

including itineries. This early guide book was translated into many languages for

international tourists. In 15th century the Venetian government assigned two galleys to

carry pilgrims across the Mediterranean to Palestine.

Saint Ramdas a famous saint from Maharashtra has travelled all over India in

the 15th century and established Maruti temples from Kashmir to Kanyakumari. It was

an adventurous journey considering that there were no transport facilities. But he

travelled on his feet, a maiden journey to understand the social and cultural condition

of people all over the country. He understood that religion can bring people together

and he choose “Maruti” god of strength and power to relate people of different

religions. Even today, these temples stand as a tall mark of our unity in diversity.

Shrines such as Compostela in Spain and healing wells throughout Europe

attracted growing numbers of tourists and spa treatment – with classical origins

traceable back to the Romans (present – day Budapest’s baths are heir to the hot

springs of the spa settlement – that they called Aquinium) – bridged the gap into the

post – Reformation world. Although in these places the older Catholic tradition of

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healing continued, notably at Lourdes, by the 1860’s cures were scientific rather than

miraculous and under the direction of physicians rather than priests. Treatments took

time, which meant that spa resorts had to provide accommodation and entertainment

for invalids and their companions. For example at Bath, promenades, reading rooms

and theatres were added to the pools. The business of health was to remain an

important component in western countries tourism. Resorts such as Vichy in France,

Baden-Baden in Germany and Buxton in Britain catered for invalids and

convalescents, and often specialized in the treatment of particular conditions.

In India people used to travel to the places where well known “Vaidyas” could

cure certain fatal diseases. In 16th century “Ganga vaidya” from Mahad (Raigad

District) could cure T.B and Nava jwar by his medicines and people from far off

places would come to him. But an elaborate accommodation and entertainment

system like Europe was not established. Spas and health resorts concepts were never

on the scene. Till 17th century the scenario did not change much. In 18th century with

the spread of British rule and development in roads, transport and communication

system people could think of travelling to far off places and the time and the risk in

travelling were reduced considerably.

Political scenario in India also encouraged people to travel. Foundation of

congress party and its conferences held at different venues in India every year made

people travel to those destinations. In his speech describing his travel through

Southern India 1898, Shri Lokmanya Tilak mentioned that such travel broadens the

minds of the travelers and people should try and make an effort to mingle with other

people.

By late 18th century, the social taboo attached to overseas travel had been

reduced considerably. People had travelled to England and Europe and saw the

development and progress achieved by western countries. Though their travel was

mostly for education or political reasons, it certainly brought awareness of the world

outside. Still for the foreigners travelling to India, it was a mysterious land of tigers,

elephants and magic which would fascinate them. Even upto the Indian Independence

travel for leisure was considered as a luxury by domestic tourists in India. Basic

infrastructure like roads, accommodation, transport and eateries were not developed.

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Emergence of Tourism as an Industry in India:

Leisure travel was associated with the Industrial Revolution in the United

Kingdom. It gave an opportunity to new middle class emerging due to industrial

revolution to travel for leisure. The first official travel company ‘Cox and Kings’ was

established in the year 1758. Tourism was identified as a revenue generating sector in

western countries.

In India the scenario was totally different. Since her independence in 1947,

Indian policy makers had traditionally neglected tourism industry as it was considered

to be a luxury segment benefiting only few. As then, the Indian economy depended a

lot on agriculture, the government policies had always aimed to develop agriculture

and other allied areas. Tourism was always viewed as an industry serving the elite

instead of being accepted as a means to provide employment with good “multiplier

effect”. In 1955, the first Planning Commission of India had placed tourism

industry 269th in its priority list. As a result in 1950’s the number of International

tourists visiting India was just around 15000. Tourism was considered as an easy way

to correct foreign exchange shortage. Consequently hotel rooms, food and beverage,

handicrafts and many other services in most of the tourist destinations in India had

traditionally been overpriced.

Although in 2000, Global tourism industry represented one of the largest

industries in the world with revenue of $595 billion and the number of tourist arrivals

globally as high as 698 million; India’s share in global tourism remained low.

Global V/s Indian Tourism for the Year 2000

Table No 3.1

World India

Percentage

(Share of India)

International Arrivals 698 Millions 2.64 Millions 0.38%

Tourism Receipts $ 595 Millions $ 3.2 Millions 0.69%

Domestic Tourism

Worldwide

6980 Millions 210 Millions 4.6%

Reference : “Tenth Five Year Plan (2002 -07) Government of India”,

http;// planningcommission.nic.in

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The Indian Tourism and Travel economy contributed 5.3% to its GDP and

India’s global ranking in this aspect was 140. In comparison, tourism sector’s

contribution to the GDP of New Zealand, Malaysia and Singapore was 8.9%, 7% and

10% respectively. It was estimated that if India could raise the contribution of her

tourism and travel economy to 10% of its GDP, it could create 12 million more jobs.

Contribution of Tourism and Travel to Economy and Industry in the Year 2000

Table 3.2

World

Average

(%)

India

(%)

World

Rank

Contribution of Travel and Tourism

economy to GDP

10.7 5.3 140

Contribution of Travel and Tourism

industry to GDP

4.2 2.5 124

Contribution of Travel and Tourism

economy to employment

8 5.6 140

Contribution of Travel and Tourism

industry to employment

3.1 2.9 111

*Contribution to travel and tourism industry refers to only direct impact of the

tourism industry.

Reference : “Tenth Five-Year Plan (2002-07), Government of India,”

http;// planningcommission.nic.in.

It was also estimated that an average investment of Rs. 10 lakh in tourism

would create 89 jobs in the tourism industry alone. This investment in tourism would

also indirectly create 12.6 jobs in the manufacturing sector and 44.7 jobs in

agricultural sector. The same amount of investment in agriculture and manufacturing

sector could create only 45 and 13 jobs respectively.

With the poor backdrop of Indian Tourism development infrastructure, other

South-East -Asian countries were busy developing their infrastructure for world Class

and high-end tourism experiences. Singapore, for example, concentrated on building a

state-of-art airport. Many international tourists were prepared to pay higher for trip to

Singapore because of her top class infrastructure.

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India was still struggling with deplorable road and airport facilities, poor rail

infrastructure, inadequate aviation seating capacity and insufficient hotel

accommodation. India also lagged behind in her brand establishment and marketing

strategies. In 2000, while the “Amazing Thailand” campaign fetched Thailand 10

million tourists, through the “Malaysia Truly Asia” Malaysia attracted 8.5 million,

and the “Live it up Singapore” earned 7 million tourists. Meanwhile India’s arrivals

were stagnant at 2.6 million. Despite being a country filled with varieties of

experiences, India failed to showcase her diversity. After being left behind in the

destination branding for long, the Government of India in 2002 launched her global

“Incredible India” campaign.

Though Indian Tourism ministry was responsible for tourism in India, it had

administrative limitations. Its role was mainly related to marketing its destinations and

guiding the tourism industry while other ministries decided upon core issues which

affected the tourism industry. The Ministry of Civil Aviation handled aviation policy

and airport management, Ministry of Finance allocated the budgetary allocation to the

Tourism Industry and the taxation on the tourism sector, Indian Visa was directly

under control of Ministry of Home Affairs. The lack of coherence between these

ministries reduced the focus of policies and also complicated the web of bureaucracy,

which adversely affected the progress of the tourism industry.

After decades of political indifference, the Indian government started focusing

on the tourism industry towards the end of 2002. The Tenth Five Year Plan

acknowledged the potential of the Indian Tourism industry as a huge employment

generator and foreign exchange earner for the nation and proposed definite initiatives

to give a boost to the tourism industry.

Focus on Tourism in the “Tenth Five Year Plan” (2002-2007)

Table No 3.3

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 boost to rural tourism.

���� Focus on domestic tourism as a major driver of tourism growth.

���� Position India as a global brand to take advantage of increasing global travel

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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 the partnership with states, private sector

and other agencies.

���� Ensure that “the tourist to India gets physically invigorated, mentally

rejuvenated, culturally enriched, spiritually elevated and feels India from

within”.

Focus on Tourism in the “Tenth Five Year Plan”

Table No 3.4

Focus on Tourism in the “Tenth Five Year Plan” was

���� To develop a national consensus on the role of tourism in the development

agenda of the nation through National Development Council.

���� To enhance the effectiveness of public sector investment through the cross-

sectoral convergence and prioritization of tourism related infrastructure

programmes in other sector like special tourism trains, rural roads etc.

���� To mobilize the support of primary players viz: the State Governments in

tourism development.

���� To involve the rural sector in tourism and start mobile training units for

service providers in rural areas identified for development of tourism.

���� To augment training facilities in hotel management and food craft and build

the capacity of service providers with cutting edge.

���� To create world class circuits and destinations.

Reference : “Tenth Five-Year Plan (2002-07), Government of India,”

http;// planningcommission.nic.in.

The Union Budget granted the tourism industry much needed “Infrastructure –

Status.”

As a result of boosting rural development from tourism point of view and

encouragement of tourism infrastructure development in rural areas by state

governments, Agri- Tourism Development Corporation was established on 16th May

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2004 in Maharashtra. “Its aim is to promote Agro Tourism to help rural youth to earn

good respectable living in the village and on the farm itself.

First ever International Agri-Tourism day was celebrated on 16th May, 2008 in

Pune.

The ‘Tenth Five Year Plan’ opened up following opportunities for agro-

tourism in India.

Agro Tourism Opportunities in India:

1. Indian tourism industry is growing @10.1%. The World Tourism organization

has estimated that the tourism industry is growing at the rate of 4% a year and

that by the year 2010 there will be more than one billion tourists visit various

parts of the world. But Indian tourism industry is growing at the rate of 10%

which is 2½ times more than the growth rate at global level. By introducing

Agro-tourism concept, not only present growth rate is sustained but also this

value addition contributes to further growth.

2. India has entered amongst the top 10 tourist destinations list (Conde Nast

Travellor “A leading European Travel Magazine). India is already established

as one of the top tourist destination in the world. Value addition by

introducing novel products like Agro-tourism would only strengthen the

competitiveness of Indian tourism industry in global market.

3. India has diverse culture and geography which provide ample and unlimited

scope for the growth of this business. India has diverse agro-climatic

conditions, diverse crops, people, culture, deserts, mountains, coastal systems

and islands which provide scope for promotion of all seasons, multi-location

tourism products.

4. Increasing number of tourists preferring non-urban tourist spots. Hence, there

is scope for promotion of non-urban tourist spots in interior villages by

establishing Agro-tourism centers. But, adequate facilities and publicity are

must to promote such centers.

5. Government initiatives and policies in X five year plan allocation has been

increased from 525 crores to 2900 crores. Increased financial allocation

reaffirms the government commitment. The increased financial allocation by

six times could be used for capacity building of service providers, creation of

infrastructure and publicity.

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The ‘Tenth Five Year Plan’ also laid emphasis on promoting much neglected

“Domestic Tourists” segment in India. Today the states also want to tap the potential

of domestic tourism. According to estimates, domestic tourism is expected to generate

revenue worth Rs. 600 billion. But this segment is not yet being fully channelized and

explored. According to International standards the ratio between domestic and

international tourism is approximately 10:1, where as in India it is only approximately

equal to 3:1. So in domestic market, there are yet various guest segments need to be

tapped.

Government of India’s “Incredible India” campaign has definitely given a

positive image to the global traveler. Today India has become one of the hot

destinations for foreign tourists. The campaign laid stress of the diversity of India and

its potential to offer various kinds of tourism: adventure, medical, spiritual, beach and

religious to name a few. But the question is, can India sell herself to Indians?

Though India is yet to sell India to Indians, there is a changing trend which has

been observed. With the changing socio-economic profiles of Indian consumers and

emergence of nuclear families, domestic leisure tourism is increasing. Indians are

looking forward to explore the diverse landscape and beauty across various parts of

India. Fortunately every Indian state has unique characteristics in terms of

architecture, art and craft, food, festivals, monuments, landscape and weather. This

rich history and heritage provides an opportunity for the domestic travelers to explore

in their own country. Growing tourism infrastructure like emergence of world-class

hospitality facilities is also expected to facilitate the growing domestic tourism.

Awareness is critical in tapping this enormous domestic potential.

Various states have come up with attractive positioning statements:

States and their Positioning Statements

Table No 3.5

Sr. No. State Positioning

1. Kerala God’s Own Country

2. Karnataka Theatre Of Inspiration

3. Andhra Pradesh Kohinoor Of India

4. Tamil Nadu Enchanting Tamil Nadu

5. Pondicherry Peaceful Pondicherry – Give Time A Break

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Sr. No. State Positioning

6. Goa Go Goa 365 Days On A Holiday

7. Gujrat Vibrant Gujrat

8. Uttar Pradesh Many Faiths, Many Journeys

9. Uttaranchal Experience The Devine

10. Jammu & Kashmir Welcome To Paradise

11. Punjab Passionate Punjab

12. Rajasthan Hospitality Amidst Royal Ambience

13. Maharashtra Maharashtra Unlimited

14. Madhya Pradesh Magical, Mystical Madhya Pradesh –

The Very Heart Of India

15. Orissa The Soul Of India

16. West Bengal The Land Of Exotic Charms

17. North – East Unexplored Paradise

As a result of tourism promotion at domestic levels by different states, the rise

in domestic tourist arrivals was seen as in case of Maharashtra.

Domestic Tourist Arrivals in Maharashtra (2004 to 2006)

Table No. 3.6

Year Domestic Tourist Arrivals

2006 16880348

2005 14329667

2004 13392212

(Reference: state/U.T. Tourism Dept.)

Tourism Statistics State wise:

Share of Top 10 States/ UTs of India of Domestic Tourist Visits in 2007.

Table No. 3.7

Rank State/UT Number Percentage Share (%)

1. Andhra Pradesh 127933333 24.3

2. Uttar Pradesh 116244008 22.1

3. Tamil Nadu 71034651 13.5

4. Karnataka 37825953 7.2

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Rank State/UT Number Percentage Share (%)

5. Rajasthan 25920529 4.9

6. Uttarakhand 19803280 3.8

7. Maharashtra 19243597 3.7

8. West Bengal 18580669 3.5

9. Madhya Pradesh 13894500 2.6

10. Gujarati 13477316 2.6

Total of top 10 463957836 88.2

Others 62610962 11.8

(Reference: http://scstsenvis.nic.in/tourinflow.html)

Though Maharashtra can be seen in the top 10 in the lists for Domestic

Tourism, the share is negligible and further growth in Domestic tourism is possible

with new tourism avenues opening.

Tourism policy of Maharashtra: 2006 reflects the necessary measures to

develop tourism at domestic level.

Reference: - TOURISM POLICY OF MAHARASHTRA- 2006.

GOVERNMENT OF MAHARASHTRA

Department of Tourism and Cultural Affairs

Resolution No. MTC-2005/2/CR-172/Tourism

Mantralaya, Mumbai 400 032, Dt. December, 2006.

Tourism is now well recognized as a major growth engine. Several countries

have transformed their economies by developing their tourism potential. Tourism has

great capacity to create large-scale employment – from the most specialized to the

unskilled.

The Indian economy is undergoing a major transformation. With an annual

growth of eight percent, India has become the second most favoured destination for

foreign direct investment. As an economic activity in the service sector, tourism also

has enormous potential for contributing to economic growth.

Tourism has the potential to change the economic face of a region. The

benefits of planned tourism development are of manifold. Promotion of tourism

would bring many direct and indirect benefits to the people. Some of the direct

34

benefits accruing to the local community of a region as a result of tourism

development are:

• Employment opportunities in tourism and hospitality sector

• Development of private enterprise

• Improved standard of living

• Social upliftment and improved quality of life

• Better education and training

• Sustainable environmental practices

• . Foreign exchange earning

Some of the indirect benefits accruing to the local community of a region as a

result of tourism development are:

• Infrastructure development – power, water, sanitation, hospitals, roads, etc.

• Market for local produce

• Employment in infrastructure sector

• Economic upliftment due to income multiplier effect

Tourism Potential in Maharashtra:

Maharashtra is the third largest State of India, both in area and population. It is

located on the West Coast of India with a 720 km long coastline along the lush green

Konkan region. Nestled in the Western Ghats and the Sahayadri mountain ranges are

several hill stations and water reservoirs with semi-evergreen and deciduous forests.

The Vidharbha region of Maharashtra, with its dense forests, is home to several wild

life sanctuaries and nature parks. Thus all the three regions of Maharashtra offer

considerable tourism potential.

Maharashtra abounds in numerous tourist attractions ranging from ancient

cave temples, unspoiled beaches, ancient forts and monuments, forests and wildlife,

unique hill stations, pilgrimage centers, and a rich tradition of festivals, art and

culture. Hence our campaign slogan for Maharashtra Tourism – “MAHARASHTRA

UNLIMITED!”

Tourism Trends:

India: The growth of tourism in India has been rapid in the last five years despite a

late start. Tourist arrivals have gone up by more than 25% and foreign exchange

35

earnings has jumped by 40%. The World Travel & Tourism Council has rated India as

one of the five fastest growing tourism economies in the world. The survey conducted

by “Lonely Planet” has also supported this view. The rich heritage, trade, culture,

history and growing economy have become major attractions for the tourists. The

survey conducted by “Conde Nast Traveler” came out with the finding that India is

preferred to many other tourist destinations like France, Singapore and Switzerland.

Maharashtra: The domestic tourists visiting Maharashtra doubled during the last

decade, from 41.29 lakhs in 1991 to 84.8 lakhs in 2001, whereas the number of

foreign tourists visiting Mumbai increased from 7 million in 1991 to 8 million in

2001.

The rapid growth in domestic tourism can be attributed to the ever increasing

middle class, increase in disposable income, improved facilities, stress on urban

families, improved connectivity to tourist destinations, etc. Not all foreign tourists

visiting Mumbai visit Maharashtra. Some of these foreign tourists come to Mumbai as

an entry point to India and proceed to various other states. There is need and scope to

attract these visitors into Maharashtra to the various tourist destinations in our State.

Action Plan for the Next Five Years in Maharashtra

The following action plan will be implemented in the next five years to

achieve the above objectives and the long-term vision for 2025.

1. Development of infrastructure at tourist destinations: Various tourism

facilities such as accommodation facilities, eateries, toilets, information centers,

etc. would be developed at all destinations. For this, the incentive policy proposed

will encourage private partnership in tourism related activities and infrastructure

development. Access to weekend destinations (hill-stations, beaches, etc.) near

major cities in Maharashtra would be given preference.

2. Accessibility to tourism destinations and wayside amenities: Approach roads

would be identified to various tourist destinations in Maharashtra. The roads

would be assessed for suitability (carrying capacity, quality, etc.) and would be

considered for further development. Wayside amenities would also be planned

while developing roads.

In addition, rail linkages and air connectivity to important tourism destination

must be strengthened by co-ordination with the concerned departments and

Ministries.

36

3. Development Control Regulation at destinations: ‘Development Control

Regulations’ would be prepared to work as guidelines for development at and

around important tourism destinations/ areas.

4. Strengthening of Bed and Breakfast scheme: The Bed and Breakfast scheme

creates facilities for travelers at remote destinations (where hotel accommodation

is not available) and provides income to the local people. With the increasing

interest in the rural way of life and the advent of rural tourism, the Bed and

Breakfast Scheme offers excellent potential for the mutual benefit of tourists and

the local population. This Scheme will be strengthened to form a part of rural

micro-financing projects.

5. Recreational facilities at destinations: Entertainment facilities such as children's

sports, horse rides, light and sound shows (based on feasibility) will be arranged at

selected destinations. Providing recreation and entertainment at tourism

destinations can convert day tourists into staying tourists.

6. Public-Private-Partnership: Specific destinations and monuments would be

identified where public-private partnership is possible. Conservation plans would

be prepared for the identified monuments. The concept of Public Private

Partnership would also be applied to the development of resorts at select

destinations and for the organization of festivals.

7. World Heritage Sites: Conservation and tourism development of three heritage

sites (Ajanta, Ellora and Elephanta) are covered under external funding. Special

attention will be given to the newly declared site - Chatrapati Shivaji Terminus. A

detailed conservation and tourism plan will be prepared to showcase it as one of

Mumbai’s tourist attractions.

Other monuments that are suitable to be promoted as world heritage sites would

be identified in coordination with the concerned agencies such as ASI, State

Directorate of Archaeology, etc.

8. Cultural Tourism: Distinctive aspects of Maharashtra’s rich culture and tradition

would be identified and promoted as an integral part of Maharashtra's tourism.

Identify and promote the State’s folk arts and organize folk dance and music

programmes at tourist destinations

- State government would identify the artistes in the state and the details (name,

art/dance type, contact details, etc.) of these artistes would be recorded in the

tourism portal.

37

- Register the artist or his/her group.

- Arrange cultural programmes at MTDC resorts/ destinations involving local

art forms.

- Prepare and organise a calendar of festivals specially focused to attract

tourists.

- Local cuisine would be identified and promoted at MTDC resorts. Food

festivals showcasing various types of Maharashtrian cuisine would be

organised.

- Identify local melas/festivals that have been traditionally held for many years

to showcase these traditions.

9. Crafts: Since Maharashtra has a number of exclusive handicrafts; the government

would undertake the following activities to promote the handicrafts industry in the

state:

- Appoint a design agency to develop products based on local crafts.

- Based on their recommendation, training will be arranged for artisans to

develop various products.

- Develop and promote the State’s handicrafts industry through e-commerce.

- Handicraft artisans of various crafts would be identified. Quality of the

products would be standardized and products would be marketed through e-

commerce.

- On-line /e-commerce application would be developed and backward linkages

would be established with the artisans.

- Simultaneously, marketing support in terms of providing common sale outlets

like bazaars and haats would be provided for handicraft products.

10. Pilgrimage Circuits: Maharashtra is known for its pilgrimage centers like the

Jyotirlingas, the Ashta Vinayaks and other famous temples at Shirdi, Pandharpur,

Kolhapur, etc. Pilgrim circuits can be developed, connecting these pilgrimages.

Maintaining sanctity and cleanliness at the place of pilgrimage is of utmost

importance to provide an enhanced experience and attract more tourists. The

responsibility for development of pilgrimage centers has been entrusted to the

Urban Development Department or Rural Development Department vide G.R. No.

MIS 7896/1830/CR-78/96/UD-18 dated 17th May, 1996. Maharashtra tourism

would assist the Urban Development Department and Rural Development

Department for preparing a development model which can be applied to all

38

pilgrimage sites. However, the nodal department will be the Urban Development

Department / Rural Development Department.

11. Rural Tourism: Rural Tourism, Agricultural Tourism & Wine Tourism will

be promoted considering state potential & varieties existing in our state.

12. Fort /Fort Circuits: Maharashtra has a large number of forts which are valued

not only for their historical significance but also for their architectural excellence.

The Government of Maharashtra in coordination with ASI and State Archeology,

develop and conserve these forts for realizing their tourism potential.

13. Application of Information Technology for tourism: Effective utilisation of the

website/portal for tourism promotion of Maharashtra in India and abroad would be

ensured. Online advertising material would be prepared by MTDC and posted on

the portal. Online bookings for the Deccan Odyssey as well as for all MTDC

resorts will be in operation.

While promoting and developing various forms of tourism, the government has

also recognized the need of sustainable tourism development. In accordance with

such need “Eco-Tourism Policy” was developed in 2008.

The following GR stresses the need of developing sustainable forms of tourism:

GR No. DWPLP 1002/ caseno.53/F.1/

Dated: 28th Feb, 2008

“Stating that participation of rural community is important in development of

cultural and rural tourism, it is essential to develop sustainable tourism in Rural

areas.”

It is also important to note the change in the tourist attitude towards tourism

which has influence on development of tourism.

Old and New Tourists Compared

Table No. 3.8

Old Tourism New Tourism

Search for the Sun Experience something different

Follow masses Want to be in charge

Here today, gone tomorrow See and enjoy but not destroy

Just to show that you had been having Just for the fun of it

Superiority Understanding

39

Old Tourism New Tourism

Like attractions Like sports

Precautions Adventurous

Prefer to eat in Hotels Try local fare

Homogenous Hybrid

Reference: ANNEXURE ‘C’ Tourism Policy of Maharashtra 2005.

Areas Identified as Special Tourism Areas by the State Government

Table No. 3.9

1. Ratnagiri District Coastal Talukas of Rajapur, Ratnagiri, Guhagar,

Dapoli, Mandangarh.

2. Sindhudurga District Coastal Talukas of Vengurla, Malwan, Deogad.

3. Raigad District Coastal Taluka of Alibag, Murud, Shrivardhan, Uran.

4. Thane District Coastal Taluka of Dahanu, Palghar, Bassein, Thane.

5. Aurangabad District 1. Aurangabad Taluka.

2. Khultabad Taluka.

3. Soyegaon Taluka

6. Amravati District Chikhaldara Taluka

7. Nagpur District Ramtek Taluka

8. Kolhapur District Panhala Taluka

9. Pune District Tourism Development Zones identified around the

lakes selected for lake District Project in the Talukas

of Mawal, Mulshi, Bhor, Velhe, Khed and Haveli.

Reference: Tourism Policy of Maharashtra 2006

Action Plan Related to Product Development and Promotion India’s “National

Tourism Policy.”

• Diversifying the tourism product to make India unique multi-attraction

tourism destination which can meet the need of all forms of tourism;

particularly rural tourism, eco tourism, adventure tourism etc.

• Encouraging Panchayat Raj Institutions, local bodies, religious trusts, co-

operatives and other community level institutions to take up tourism

40

promotion activities through the general rural development and employment

generation programmes.

Integrated Development of Tourist Destinations:

International tourist traffic to the country is largely confined to certain selected

centres and destinations at present. There is also a fair level of seasonality in the

international tourist arrivals. As a result there is a good deal of congestion and

scarcity of facilities in some of these centers during peak seasons. The tourist traffic

to some of the centers has even exceeded the carrying capacity with the attendant

problems of environmental degradation. It has, therefore, become necessary to

go beyond the beaten tracks and to facilitate direct visit of tourists to new

destinations. However, the choice of such new destinations for development will

have to be based on their intrinsic attractions, potential for development and the

carrying capacity as well as availability of resources. Such development will be

guided by well conceived master plans, and executed by specific Tourism

Development Authorities. Adequate backward and forward linkages will also be

established to ensure adequate flow of benefits to the local community.

• Creation of Tourist Economic Zones

• Constitution of Tourism Development Authorities

Diversification of Tourism Products:

The main strength of Indian Tourism at present is its cultural attractions,

particularly, the large number of monuments and archaeological remains scattered

throughout the country, its art and artifacts and colourful fairs and festivals. The

country is also endowed with a number of other tourist attractions and options

including beach tourism; centers of pilgrimage for spiritual tourism, heritage trains

and hotels for heritage tourism etc. The tradition of Indian system of medicine and its

curative and preventive effect are well known the world over. Yoga, Ayurveda and

other forms of natural health resorts have thus become unique tourist attractions of the

country. There are also facilities for conference and convention tourism, cruise

tourism and shopping tours. The development of natural health resorts of Yoga,

Ayurveda etc. along with rural tourism, spiritual tourism and eco tourism will be

given adequate attention.

41

As mentioned in India’s National Tourism Policy “tourist traffic to few chosen

destinations” has degraded those destinations. So alternative forms of tourism which

could diversify tourist traffic to other unexplored destinations. The concept of SIT

(Special Interest Tourism) has emerged out of this need.

Awareness of the negative impacts of mass tourism emerged in the 1970’s

when mass tourism and tourism in general started being criticized, although one must

not forget that it enabled millions of tourists to discover new horizons and that it

strongly contributed to the economic development of many destinations. The initial

socio – cultural impacts of mass tourism were not easy to evaluate because tourist

flows were not initially directed to developing countries.

The availability of less expensive package holidays to more exotic

destinations contributed to the development of international mass tourism to

developing countries (especially in the pleasure periphery), where some

uncontrolled forms of tourism proved detrimental to both the environment and the

local culture. As a reaction against mass tourism, new approaches to tourism emerged:

• Emergence of integrated and controlled tourism planning and tourism

management by tourism authorities (at local, regional or national level).

• Emergence of new products offering an alternative tourism that is more

respectful of the destinations and local residents.

• Emergence of a new understanding of what tourism should do: contribute to

sustainable development on a global scale.

Overview of Development of Tourism in India:

Tourism is a multi –sectoral activity characterized by multiple services

provided by a range of suppliers. It is the largest service industry in the country. Its

importance lies in being an instrument for economic development and employment

generation particularly in remote and backward areas. It is contributing towards

overall socio-economic improvement and accelerated growth in the economy. The

economic benefits flow into the economy through growth of tourism in the shape of

increased state and national revenues, business income, employment, wages and

salary income.

Tourism is an economic sector in India that has a potential to grow at a high

rate and can ensure consequential development of the infrastructure of the

42

destinations. It has the potential to stimulate other economic sectors through its

backward and forward linkages and cross sectoral synergies with sectors like

agriculture, handicrafts, transport etc. The particular significance of tourism industry

in India is its contribution to national integration and preservation of natural as well as

cultural lives of people.

Over the past few years, the tourism industry had to face with a series of

unprecedented challenges. International events, such as terrorism and SARS, Swine

Flu and economic turbulence have led to significant changes in tourism demand. At

the same time, international events such as increase in information and booking

facilities made available over the internet, consumers desire to travel more frequently,

stronger branding of tourism destinations have acted as a catalyst, accelerating

fundamental changes in market behavior and travel patterns that have been slowly

emerging over the past decade. More and more governments have started to realize

that they cannot leave the growth of tourism industry to chance. This emerging global

consciousness represents a great opportunity for this industry.

Contribution of Travel and Tourism Industry in GDP and Employment in 2007.

Table No. 3.10

India

(%)

World

Average (%)

World Average %

estimated in 2017

Contribution of Travel and

Tourism economy to GDP 5.4 10.4 10.7

Contribution of Travel and

Tourism industry to GDP 2.0 3.6 3.4

Contribution of Travel and

Tourism economy to employment 5.5 8.3 8.3

Contribution of Travel and

Tourism industry to employment 2.3 2.7 2.8

Reference : WTTC (World Travel and Tourism Council)

43

Tourist growth in India has undergone a remarkable change during the Tenth Plan:

Tourists Arrivals in India (in millions) 2002 to 2006

Table No. 3.11

Year World Wise

Tourist Arrivals

Foreign Tourist

Arrivals In India

Domestic

Tourist Visits

Share Of India

In World

Arrivals (%)

2006 842.0 4.45 461.2 0.52

2005 802.0 3.92 390.5 0.49

2004 761.0 3.46 366.2 0.46

2003 693.2 2.73 309.0 0.39

2002 706.4 2.38 269.6 0.34

Reference: Ministry of Tourism (MOT)

Tourism Receipts (in Billions US $) 2002 to 2006

Table No. 3.12

Year World Earnings Earnings To India Share Of India In World

Earnings

2006 735.0 6.6 0.89

2005 678.0 5.7 0.85

2004 633.0 4.8 0.75

2003 553.1 3.5 0.66

2002 487.0 2.9 0.60

Reference: Ministry of Tourism (MOT)

The above two tables show the growth in tourist arrivals and earnings

generated from Tourism Industry during the Tenth Five Year Plan.

The foreign tourist arrivals have increased by about 87% from a level of 2.38

million in 2002 to 4.45 million in 2006. India’s share in world tourist arrivals has

been increased from 0.34% to 0.52% during the same period.

The foreign exchange earnings for India have gone up by about 147% during

the same period (US $ 2923 million to US $ 6569 million), 0.9% of the international

tourist receipts for the same period. The average per tourist earnings in India was

about US $ 1476 against the world average of US $ 872 during 2006.

44

Domestic tourist visits have also gone up rapidly during the Tenth Five Year

Plan from 269.6 million in 2002 to 461.2 in 2006. According to the Tourism Satellite

Account for India prepared by the MOT, the contribution of tourism sector, including

both Direct and Indirect GDP and Employment was 5.83% and 8.27% respectively

during 2002-03.

It can be said that the tourism resources in the country have the potential to

generate significantly higher levels of demand from the domestic and international

markets, which if exploited intelligently in a sustainable manner can be a powerful

source for the growth of the economy.

In the Tenth Five Year Plan period, an emphasis was laid on positioning and

maintaining tourism development as a national priority activity by development as a

national priority activity by enhancing and maintaining the competitiveness of India

as a tourist destination and improving existing tourism products and expanding these

to meet new market requirements by creating world class infrastructure, developing

sustainable tourism and giving special thrust to rural and small segment

tourism. 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, Gujrat, Maharashtra, Bihar, Karnataka, Madhya

Pradesh, Andhra Pradesh, Kerala, Tamil Nadu, Orissa, Assam, Sikkim, Rajasthan and

West Bengal.

Objectives and Strategies for the Tourism Industry in Eleventh Five Year Plan:

The Eleventh Five Year Plan has recommended a target of 10 million

international tourist arrivals by 2010, according to MOT this target is achieved by

2010. The new target for 2011 will be 10.25 million. This target is proposed to be

achieved through diversification of principal source markets improving infrastructural

facilities like roads, airports and civil amenities at the tourist destinations, increasing

the air seat capacity and vigorous publicity. For domestic tourism, the target to be

achieved in 2010 and 2011 will be 725 million and 812 million respectively assuming

an annual growth rate of about 12% over the level of 461 million domestic tourist

visits in 2006.

Domestic tourism would be complementing the international travel. This

would help in optimizing the utilization of infrastructural facilities and also make the

future investment viable.

45

To achieve the above goals, suitable measures would be taken for:

•••• Positioning and maintaining tourism development as a national priority

activity.

•••• Enhancing and maintaining the competitiveness of India as a tourist

destination.

•••• Improving India’s existing tourism product further and expanding these to

meet new market requirements.

•••• Creation of world class infrastructure.

•••• Developing strategies for sustainable and effective marketing plans and

programs.

State-wise and Year-wise Investment Intentions

(Rs in Crores)

Table No. 3.13

S.

No. Name of the State 2003-04 2004-05 2005-06 2006-07

2007-08

(April-May)

1. Andhra Pradesh 16527 16596 19001 48660 2577

2. Assam 163 430 809 2044 169

3. Bihar 27 314 3913 4850 308

4. Chhattisgarh 16155 47602 39914 118737 17559

5. Dadra & Nagar

Haveli

4137 834 2374 2794 431

6. Gujarat 32341 29695 82901 72283 7946

7. Haryana 8372 2737 5578 16095 769

8. Himachal Pradesh 1126 3384 1774 1906 254

9. Jammu & Kashmir 774 2719 2058 2306 400

10. Jharkhand 1861 10539 54089 35257 17969

11. Karnataka 14074 10969 15353 72250 7059

12. Madhya Pradesh 1616 8538 18782 12537 1963

13. Maharashtra 8878 13256 24694 62191 6907

14. Orissa 17718 45565 38255 96869 5997

15. Punjab 1844 4190 7127 10128 544

16. Rajasthan 1096 2162 5077 10040 1768

46

S.

No. Name of the State 2003-04 2004-05 2005-06 2006-07

2007-08

(April-May)

17. Tamil Nadu 2898 54481 11841 20377 5373

18. Uttar Pradesh 2179 21633 31710 33745 1823

19. Uttarakhand 1334 2441 5706 14887 968

20. West Bengal 7637 14078 12047 51836 9410

21. Others 17628 1931 3378 6574 1857

Total 158385 294094 386381 696366 92051

Note: Investment in terms of IEMs filed, Letters of Intent (LOIs) issued, and DILs.

Reference: SIA Statistics, June 2007.

Agro Tourism Development:

Thus it can be said that the development of agro tourism is a consequence of

following factors:-

•••• Overall increase in travel and tourism industry is as a result of globalization,

economic development, more disposable time and income available with

customers.

•••• Realization by government the importance of tourism as an industry.

•••• Incorporating the tourism industry in national developments plans and

policies.

•••• Deciding objectives and strategies for sustainable developments of tourism.

•••• Allocating funds to develop rural areas from tourism point of view.

•••• Promotion and development of new forms of tourism like adventure tourism,

eco-tourism and agro-tourism identifying the market demands.

At local levels the farmers are more conscious about their choice to enter into

tourism activity. They have realized the potential of agro tourism and would like to

extend the farm product in a controlled environment. The ill-effects of mass tourism

at many popular destinations have been evident and some has been the factor behind

tourists notice to choose alternative forms of tourism. The emergence of

SIT (Special Interest Tourism) targeting niche market is a recent trend and

agro tourism is one of the SIT products.

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