Project Report Tourism

8/13/2019 Project Report Tourism

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AN

IN DEPTH STUDY

OF

TOURISM INDUSTRY

PRESENTED TO:

MR PRANAV YADAY IV SEMESTER - 520429452

DISTANCE EDUCATION

SIKKIM MAINPAL UNIVERSITY.

5TH MILE, TADONG, GANGTOK - 7371!

IN PARTIAL FULFILLMENT OF THE RE"UIREMENTS

FOR THE #MANAGEMENT RESEARCH PRO$ECT% COURSE IN THE

MASTER OF &USINESS ADMINISTRATION PROGRAMME


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PREFACE

Today a stiff competition is seen in the economy, Now, the Present

scenario of the business world is quite different from the past. Ethics, Conflicts,

new ideologies, new ideologies, energy scarcities and crazy dogmas are just.

The few of the characteristics that mae the present quite different from the

past.

!n order to cope up in the e"er#changing en"ironment, the nowledge of

all business worlds is a need today. $.%.&. programs and management

institution pro"ide a global manager to this modern business world. %ut only

nowledge is not enough for the business %ut successful implementation of the

now s the ey to success.

'ence in order to get acquainted with the practical nowledge eachstudent is required to implement the theoretical aspects of the subject in to the

practical life wor.

&fter a lot of brain storming we decided tourism industry as a title of

project. (e decided to wor on this title.

(e referred so many magazines, wed sites, boos and newspapers for.

The study purpose. This project will be fruitful for us in the future also. (e are

presenting this report, which comprise of secondary data and to out best

nowledge it is true and fair.


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ACKNO'LEDGEMENT

!t would really difficult for me to complete the project without find co#

)peration of certain people. !n other words are so many e*ternal who directly

help me in our project.

+irst of all we are grateful to $r. aianthan -ir who guided us regarding

the project contents and issues related to it. +urther we are "ery grateful to $r.

ajesh /anatra who pro"ided their "aluable guidance to us regarding the

project.

(e are also "ery grateful to out friends, who helped us and guided us

egarding the sources of information related to particular industry (e are also

"ery grateful to my concern 01i"ine %irds 2 $aninagar3 staff especially

librarian, (ho helped us and consider our con"enience and gi"e priority to us.

(e are also "ery grateful to the librarian of &$& who guided us

regarding the sources of information.


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E(ECUTIVE SUMMARY

Tourism !ndustry is one of the fastest growing industry in the world with

an a"erage /1P of 44.56. Changing lifestyle of the people because of a sudden

increase in their income le"els accredited to the opening up of the economy and

$ultinational Corporation has led to the steep growth of tourism industry in

!ndia. Tourist7s attention is shifting from established destinations such as

European countries to emerging destination such as &sia#pacific countries.

Tra"el barriers ha"e been broen and there is a flow of free trade. Tourism has

become multiple acti"ates focused with the integration of shopping and

recreation, entertainment and education and culture and meeting8business center

de"elopment.

!ndia 2 a subcontinent sprawling se"eral hundred ilometers, with

population o"er nine hundred million, is undoubtedly the largest democracy in

the world with a thousand year old ci"ilization. T)* +*/0 +2*4 6089 0 0)* 24 *464 I62 &*26; 4/) 4;)0 0* 0240

*4026026.

The !ndian Tourism industry comprise go"ernment of !ndia, tour

operators, tour agents, hotels !ndian Tourism de"elopment corporation etc.

further, the project categorizes tourism industry as follows9 H82< 024=,A*60* 024=, P28;2=;* 024= 6 E/ > 024=, *0/.

!n !ndia there are many tourist destinations, which are not mareted

properly. -o in this project we ha"e con"ersed about the important of

M9*026; M2?in the !ndian Tourism !ndustry, which consist of Product $i*,

Promotion $i*, Price $i*, Place and people.


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Tourism !ndustry is deeply affected by the 4/28, 0*/)68;2/8,

*/6=2/ /04.&ll these factors ha"e been gi"en their due credit in the

project. Economy being the bloodline of any country has been de"oted a major

chun in the study of these factors followed by social and technological factors.

/o"ernment policies pro"ide a basic framewor, which minds and controls

e"ery industry. Therefore, it has to be studied so that not a single factor remains

untouched.

+or the de"elopment of any industry the basic infrastructure facilities are

"ery important. !ndian railway is the world7s largest networ under a single

management. The railway is one of the facilities required for tourism besides

a"iation, telecommunications and accommodation.

Tour operators and tra"el agents perform the role of a liaison and a

catalyst too in this industry without whom it is "ery difficult to operate.

P=0268 /02202*4play an important role in the de"elopment of any

acti"ity. !nternational road shows, conferences, tourism awareness programs,

sporting e"ents, media it, etc. ha"e contributed a lot in promoting !ndian

tourism. The project also gi"es a brief about the promotional measures.

&s we now that tourism industry of !ndia is growing at a "ery fast paceso in this we ha"e +*/0 84 *84 @20) 0)* /*60 4/*62 6 0)*

/)88*6;*4 /* < 0)* 024= 2640< I62.

The tourism industry is also */0* < 0)* 6;26; @ *0@**6 USA

6 IB.!f this war continues for the longer time the tourist would not tra"el

in the European countries.


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& few suggestions about de"elopment of tourism in !ndia ha"e been

maret in the project such as planning, organizational structure, business

process reengineering, information systems, operations management, mareting

strategy formulation, en"ironmental impact assessment and project

management.

%esides tourism industry as a whole a study has been made about

Tourism Corporation of /ujarat :imited. &n o"er"iew of the organization and

its policies and abo"e all an attempt has been made to perform a -()T analysis

for both the industry at the macro le"el as well as for the origination at the end

of the project study.


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RESEARCH O&$ECTIVES

T)* */02* *)26 6*0926; 0)24 +*/0 24:

; To ha"e nowledge about the $areting of the Tourism industry in !ndia.

; To pro"ide an outloo both the people already in the industry as well as

for any entrepreneur who wants to enter the industry.

; To ha"e an in# depth nowledge about the woring of the tourism

industry in !ndia

; To identify the specific problems a tourism industry is facing.

; To study the impact of the tourism industry on the local economy and to

establish benchmars for the industry to realize its full economic

potentials.

SOURCES OF DATA COLLECTION

S*/6< D0 C88*/026

S*/6< 0 @288 * 026* = 4/*4 829*:

4. /CC!

. $agazines?. @ournals

5. Newspapers


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CONTENT

Certificate

Preface

&cnowledgement

E*ecuti"e -ummary

esearch $ethodology

SR. NO. PARTICULAR PAGE NO.1. D*262026 0 T24= I640< 1

4.4 Tourism 4

4.< (ho is a Tourist 4

4.= 1efinitions followed in !ndian and across the world =

4.> !nternational definitions ?

!. H240< T24= I640< 7

3. A6 I640< *2*@ 1!

=.4 Challenges faced by the /lobal Tourism !ndustry 4=

. F*0*4 T24= I640< 155. T24= 26 A42 1

?.4 Tourism /rowth factors 4A

?.< Economic /rowth 4A

?.= !ncrease in !ncome and :eisure time :iberalizations of &ir transport


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A.> 1estination ?

A.? $anagement of &irport ?

A.5 &irlines ?A

A.B ail and oad and Transportation ?A

A. 'otels ?AA.A esort epresentati"es 54

A.4 'otels 54

1. S'OT A68

4.= )pportunities 5?

4.> Threats 55

11. PEST A68 Technological A=

1!. P0*%4 F2* F/* A68.4 !ncorporation and Commencement of %usiness 444>.< -hare Capital 44

4>.= %usiness of the Company 44

4>.> Types of +inancial &ssistance for Tourism Projects 44A

4>.? Norms of &ssistance 4.5 Technological En"ironment 4.B Norms for &utomatic &ppro"al of foreign 1irect

!n"estment

4


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15. &;*0 I=+/0 6 T24= 1!

4?.4 !mpact on 'otels 4=

4?.< !mpact on &irlines 4=4

4?.= !mpact on ailway %udget on Tourism 4==

45. Challenges faced by Tourism !ndustry 4=545.4 'urdles to /rowth 4=5

45.< !nfrastructure 4=B

45.= Tourist +acilitation and security 4>4

17. I=+/0 '4 1!

1. R*/==*60264 1

1. G0 T24= 15!

4A.4 !ntroduction 4?4A.> $areting 4?>

4A.? $ajor de"elopments 4??

4A.5 )bjecti"es 4?B

4A.B Proposed approach and strategy 4?

4A. Planning for tourism de"elopment 4?A

4A.A 'uman resource de"elopment 45=

4A.4 -()T &nalysis 2 /ujarat Tourism 45>

4A.44 Gey -uccess +actors 45?

%ibliography&nne*ure


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1. DEFINITIONS OF TOURISM INDUSTRY

1.1 T24=

Tourism is the totality of the relationship and phenomenon arising from

the tra"el and stay of strangers, pro"ided the stay does not imply the

establishment of permanent residence and is not concerned with the

remunerated acti"ities.

1.! ') 24 T240

%efore we precede any further we need to define a tourist for our study.

The most suitable definition we came across is gi"en by the Dnited Nations.

This definition is generally followed by all the countries in compiling their

tourist statistics and is not based on moti"ation but on an economic concept.

H& Tourist is a temporary "isitor to a country other than the one in which

he usually resides for any reason other than following an occupationremunerated within the country "isited.H !t is further elaborated that the

temporary period should not be less hours. There is considerable cross

border day traffic amongst many groups of neighboring countries. -uch "isitors

are defined as E*cursionists. )n the abo"e lines it has been argued that if

pleasure and recreation ha"e become the main moti"ation of present day

tourism then why should "isitors who whose main purpose is to conductbusiness, attend a conference or see relati"es and friends be considered as

tourists I The answer is that a "isitor to a conference or one who has come for a

business purpose in his spare time also beha"es lie a Jpleasure4 tourist. 'e goes

on sightseeing and shopping trips, "isits clubs and bars, and so on. The

determining factor is whether the "isit is being paid for in foreign currency or

from within the country.


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The abo"e definition can be "astly different from what we generally

percei"e. 'owe"er, when the facts and the figure are calculated as to the

number of people "isiting a country, the abo"e definition is taen into

consideration.

')2/) 0


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I6 ;*6*8 0240 *:

; Persons tra"eling for pleasure, health and domestic reason.

; Persons arri"ing in the course of sea cruise.

; Persons tra"eling for business purpose.

; Persons tra"eling for con"ention.

1.3 D*2620264 88@* 26 I62 6 /44 0)* @8

I60*60268 V2420

&n international "isitor is any person "isiting the country on a foreign passport

and the main purpose of "isit is other than e*ercise of an acti"ity remunerated

from within the country or establishment of residence in the country. This

definition co"ers two segments of "isitors Jtourist and same day "isitorsJ.

F*2;6 T240

& foreign tourist is a person "isiting !ndia on a foreign passport, staying atleast hours in the country, the purpose of whose journey can be classified under

on of the following headings.

; :eisure

; %usiness, family, meeting.

1. I60*60268 *2620264

F=4 T24=

D=*402/ T24=9 !n"ol"es resident of a gi"en country tra"eling only

within this country.

I66 T24=: !n"ol"ing non# resident tra"eling in the gi"en

country.

O06 024=: !n"ol"ing resident tra"eling in another country.


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!nternal tourism, which comprises domestic tourism and inbound tourism.

National tourism which comprises demonstration outbound tourism.

!nternational tourism, which consist of inbound tourism and outbound

tourism.

&42/ T24= 6204

&ll types of tra"elers engaged in tourism are described as "isitors.

Therefore the term "isitor represents the basic concept for the whole system of

tourism statistics.

T*8*4

; isitors

; )ther tra"elers

&lso tourist are o"ernight "isitors while the rest are same day "isitors.

I60*60268 24204

+or statistical purpose the term international "isitor describes any person

who tra"els to a country other than that in which he or she has usual residence

but outside his 8 her usual en"ironment for a period not e*ceeding 4< months

and whose main purpose of "isit is other than e*ercise of any acti"ity

remunerated from within the country "isited.

!. H240< T24= I640#B? to s. 44 crores in 4AAB at current

prices. Tra"el M Tourism is the third largest foreign e*change earner in the

country ne*t to /erms M @ewellery and Te*tile and /arments. !f one were to

ignore its negligible import content, tourism would ran e"en higher than the

other two in terms of net foreign e*change earnings.

. E=+8


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5.1 T24= G@0) F/04

& Number of factors are responsible for the rapid growth a de"elopment

of the tourism industry in the &sian region. These include the strong economic

growth, increase in income breadown of political, barriers, easing of tra"el

restrictions, liberalization of air transport, and focused mareting campaigns.

These factors are e*pected to accelerate the growth of tourism o"er the ne*t

decade.

?.< E/6=2/ G@0)

The rapid growth for the tourism industry is a reflection of the regionJs

booming and di"ersified economies. Economic growth has ranged between an

a"erage of 56 to A6 in the last decade, in contract to =6 to >6 growth

achie"ed by the rest of the world. )nly the industrialized countries of &ustralia,

@apan, and New Oealand show a lower rate of growth than the rest of the region.

China, which has achie"ed double#digit growth o"er the last ? years, is poised

to become one of the worldJs largest economies and surpass @apan in the ne*tdecade. The region is e*pected to maintain its growth at a rate between 56 to

6 o"er the ne*t decade 0!$+


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pro"ide ample mareting opportunities for tra"el#related business.

?.= I6/*4* 26 I6/=* 6 L*24* T2=*

&s a result of strong economic growth, disposable incomes ha"e soared in

&sian countries and along with it, the propensity to tra"el. :eisure

consciousness has been enhanced with tra"el no longer seen as a lu*ury. !n fact,

it is now seen as an affordable commodity to be enjoyed by all who choose to

engage in a "ariety of leisurely pursuits. -ome &sians may see tra"el as a status

symbol, while others see it as relief from the pressures of wor. The

introduction of a ?#day worwee in China will pro"ide Chinese residents with

more leisure time that will liely be de"oted to tra"el. & number of &sian

countries ha"e recorded significant growth in real per capita income o"er the

last year with -ingapore 0B.=63 Thailand 05.63, China 04.=63, ?. Gorea

05.B63, and !ndonesia 0B.463, -howing the highest growth 0!$+ L2*82026 A2 T64+0

Traditionally, &sian countries ha"e safeguarded their national flag

carriers to protect them from foreign competition. 'owe"er, the situation is


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changing as go"ernments realize that such restricti"e policies are

counterproducti"e to tourism. -ingapore and Taiwan ha"e already signed open

sies agreements with the Dnited states and similar agreements are e*pected

between the D.-. and $alaysia, -. Gorea and New Oealand. :iberalization of

air transport will only ser"e to enhance trade and tourism growth in the region.

!t will to lead to more multilateral open sies agreement between countries.

!n other parts of the region, Thailand and $iddle#East are showing more

tourism growth as a result of liberalized internal a"iation policies. !ndonesia, the

Philippines and south Gorea ha"e followed suit with similar a"iation policies.

!ndonesiaJs limited open sies policy in"ites foreign airlines to fly to new

international destinations and participate in code sharing agreements with

!ndonesian airlines.

?.? F0* O089

The &sian region will still maintain its status as the fastest growing

region in the world and most forecasts point to the regionJs healthy long#termsprospects. The (T)J- 04AA53 forecast re"eals the region emerging as the

worldJs number two region behind Europe in


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-trong Economic growth will continue to increase disposable incomes

and stimulate the desire to tra"el. This will increase the demand for air tra"el,

which is e*pected to grow at an annual rate of .56 till


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that we want to catch up on the opportunities that ha"e been denied to us. The

emphasis on setting up manufacturing industries in the post independence area

was natural. Nehru called such factories and dams the new temples of !ndia. &s

any economy matures, in the process of de"elopment, it maes a transition from

agriculture to manufacturing and from manufacturing to ser"ices. !n different

stages of economic growth, the relati"e importance of these sectors changes in

terms of employing people and their relati"e contribution to /1P. (ithin the

&sia#Pacific region the !ndian sub#continent is well poised to tae ad"antage of

the boom in the tourism sector.

The tourism industry is undergoing a sea change with the re"olutions in

communication and information technology. E"erybody inn the tourism

industry will ha"e to change and redisco"er its place in newly defined "alue

chain. The role and the ser"ice offerings will undergo a big change in the

present cyber world. The


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billion. &ccording to P&T& 0Pacific &sia#Tra"el3 Tourism directly or indirectly

dri"es more than 46 of the worldsJ employment today.

-ignificant policy initiati"es, such as welcoming of pri"ate sector, foreign

and N! in"estments, setting up to The Tourism +inance Corporation of !ndia

0T+C! renders financial assistance M caters to a "ariety of in"estors needs3 and

!n"estment facilitation cell 0&cts as a nodal &gency that interacts between the

in"estor, the state go"ernments, the premier financial bodies M the rele"ant

ministries3 ha"e been tae by the go"ernment.

T)* P/9;*

To an international tourist what does !ndia offerI !n this segment we see

the attracti"eness of !ndia as a tourist destination. !ndia is one of the oldest

young countries. !t is a ? years young democracy but it has seen the rise and

fall of ci"ilizations since time immemorial. !ndia has the ruins of the !ndus

alley Ci"ilization at $ohenjodaro and 'arapa, which spea of the early

settlement of man. Through time, "arious cultures ha"e thri"ed on this land andha"e left some mar behind to say they were here. -ome of the e*amples are the

Taj#$ahal a dream in marble, the sun temple at Gonar, the 'a"a $ahal at

@aipur, the :ae Palace at Ddaipur, the &janta M Ellora ca"es, the list is

unending. !ndia is not all about past, there are brilliant e*amples of modern

architecture lie the :outs Temple at 1elhi. Nature has also endowed this land

abundantly. !t is one of the few countries, which has such a "aried topography.+rom the beaches in Gerala in the south toJ the snow capped mountains of

'imalayas ! the north, the golden desert in the west to the mangro"es in the east

there area a few natural sites, which a "isitor will not find here. !ndia also forms

a lin between the East and the (est. This has "isitor will find here. !ndia also

forms a lin between the East and the (est. This has pro"ided it with a foreign

fla"our. & perfect e*ample of this is /oa where the

Portuguese fragrance is still there in the air. Therefore, what we ha"e here


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is what a tourist wants, but the statistics show differently. !ndia has only .?46

of the international tourist traffic coming in. The non tourist countries lie

$alaysia and !ndonesia get much more tourists than !ndia +urther, we see what

is the status of tourism in !ndia.

!ndiaJs amazing di"ersity offers you e"erything you could e"er want in a

holiday. +rom the moment that you set foot in !ndia to be greeted by graceful

name namaste, a gesture that denotes both welcome and respect, you are on the

way to one of the most rewarding e*periences of your life. %ounded by the

majestic 'imalayan ranges in the north and edged by a spectacular coast line

surrounded by three seas, !ndia is a "i"id aleidoscope of landscapes,

magnificent historical sites and royal cities, golden beaches, misty mountain

retreats, colorful people, rich cultures and festi"ities.

&t any part of the year !ndia can offer a dazzling array of destinations and

e*periences. !n summer, when the subcontinent is sizzling there are spectacular

retreats amidst the heady beauty of the 'imalayas or the lush heights of the

(estern /hats with cool treing trails, tall peas to conquer or stretches ofwhite water for the ad"enture seeers.

!n the cool of an !ndian winter, cities come ali"e with cultural feasts of

music and dance. Then balmy weather is an ideal time for one to go century

hopping in romantic cities studded with medie"al forts and places.

)ne can taste the delights of the !ndian monsoon anywhere in the

country#on a camel safari in the ajasthan desert when nature comes ali"e andthe peacocs dance along the west coast where the relentless slanting rain

paints the countryside in brilliant greens or e"en treing amidst the start

grandeur of mountain "alleys lying in the rain shadow of the 'imalayas.

E*perience e*otic !ndia # li"e lie a maharaja in the rich ambiance of royal forts

and places that are now heritage hotels lu*uriate in the serene beauty of a coral

island with its turquoise lagoon participate in the e*uberance of a "illage fair or

a colorful festi"al day dream on a house boat drifting down the palm #fringed


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bacwaters delight in the grace of a dancer or shop till you drop # buying

e*quisite sils, car"ed figurines, brass and sil"er ware, marble inlaid with

semi#precious stones, finely crafted jewelry, miniature paintings, carpets ....at

unbelie"able prices. !ndia, always warm and in"iting, is a place of infinite

"ariety # one that fa"ors tourists with different facet of its fascination e"ery time

they come on a "isit.

The subcontinent of !ndia lies in south &sian, between Paistan, China

and Nepal. To the north it is bordered by the worldJs highest mountain chain,

where foothill "alleys co"er the northernmost of the countryJs


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=,


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)f course, it was in the early 4A?s that the /o"ernment of !ndia decided

to promote tourism industry but in had no clear objecti"es in was necessary to

reorient the mareting projects and rationalize the locations of the tourist offices

abroad eeping in "iew the maret conditions and potentials. !n order to cater to

the needs of professionally sound manpower for tourism mareting, the !ndian

!nstitute of tourism and Tra"el $anagement was de"eloped as model instate.

!n "iew of the abo"e, it is right to mention that di"ersification of tourism

from the traditional sight seeing to the more rapidly growing holiday tourism

maret within the framewor of the countryJs milieu is need of the hour. The

policy planners, the tourist organizations, the domestic and global agencies are

required to realize gra"ity of the situation to capitalize on the opportunities

optimally. This requires a basic change in the product de"elopment strategy

"isa#"ersa the inno"ati"e promotional efforts to project a positi"e image.

The beginning of the decade 4AAs opened new areas for thede"elopment of tourism in the !ndian perspecti"e. This necessitated

de"elopment of infrastructure facilities lie transportation, communication,

accommodation or so. !n addition, this also required use of sophisticated

information technologies by the tourist generating organizations so as to

impro"e the quality of ser"ice at deferent points. !n addition to the planning and

de"elopment of tourism products, the promotional strategies thus require dueattention of professionals.

The creati"ity in messages, campaigns and appeals, which probably could

not get due weighted to the beha"ioral profile of users. (e canJt deny the fact

that till now the tourist organizations ha"e de"alued the instrumentality of

beha"ioral studies and therefore were supposed to do it on a priority basis. The

emerging trends in the business en"ironment mae it essential that world class


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increasing the "alue of land. The flow of dollars can flow bac into

conser"ation and mae it pay for itself. Today conser"ationists, economists and

tourists alie ha"e awaened to the realization that you canJt sa"e nature at the

e*pense of local people. They are the traditional and time honored custodians of

the land and are most liely to lose from conser"ation and should be con"inced

that they are the beneficiaries and partners in conser"ation rather than enemies

of it.

/o"ernment and non#go"ernment agencies are waing up to the need to

wor closely issued guidelines under which all tourism project in hills and

forests ha"e to get en"ironmental clearance. & recent e*ample of such close

monitoring is the ban on construction acti"ity within ? meters of high tide

line on the coasts.

The (T) in its projections for the year


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B.< H*20;* 024=

This is a new ind of tourism that has come up in recent times. The

concepts of 'eritage tourism came up to aid M facilitate the curious guests

attempts to get to now !ndiaJs great traditions. !t was realized that the historic

homes could be maintained only with their appropriate reuse. The large Palaces

of $aharajas set the trend by becoming fi"e star hotels. The main charm is the

indi"idual attention M personalized ser"ices. The ambience is perfectly reflected

through sepia photographs M family memorabilia. +amilies in residence for

countries now welcome you to their homes as guests. The homes are

modernized to meet the needs of todayJs international tra"eler, with adjoining

bathrooms, running hot M cold water, modern plumbing, e"en perhaps a

swimming pool. This ind of tourism was de"eloped mostly for the

international tourist who wanted to get the feel of traditional !ndia.

B.= A*60* 024= 6 H82< 024=

!ndiaJs "ast geographical di"ersity pro"ides a "ast potential for ad"enturetourism. &ll tastes are catered to and there is something for e"eryone. +rom the

gentlest to the fast placed, for the beginners to the e*perts. %esides this the

prices here are lower as compared to international standards.

Tra"el agents and tour operators "ery often specialize in certain fields,

offering pacage deals for groups as well as indi"iduals. $ountaineering,

treing and roc climbing, ballooning and hang gliding, camel tres and desertsafaris, white water rafting and ri"er e*ploration are some of the e*citing

possibilities. &part from this there are sports lie siing, scuba di"ing and

underwater coral "iewing, angling, wild life and bird watching, golf, tennis,

badminton, plol, swimming and motor rallies amongst other sports.

+or the tourist in search of sun, sea and surf, there are beach resorts on

the western and eastern coasts.


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M6026**26;

-caling the 'imalayan Peas # the greatest ad"enture of all. The mighty

mountains stretching across the northern borders of !ndia ha"e hundreds of

peas, many yet unsealed and in"iting the intrepid mountaineer. The states of

@ammu and Gashmir, 'imachal Pradesh, Dttar Pradesh and -iim offer bases

for mountaineering e*peditions.

There are agents who can mae all the arrangements for groups or

indi"iduals including food, porters, camping equipment, etc. The best season for

mountaineering is from $ay to )ctober and si* months notices are required to

boo a pea.

T*9926;

The spectacular 'imalayas are the abode of snow and e"oe unmatched

feelings of re"erence and e*citement and offer wonderful be"y of treing

routes. Peninsular !ndia offers natural beauty of another ind for treing. The

(estern /hats, the &ra"alli 'ills, the -aputara range and the Nilgiri mountainsha"e a rich heritage of flora and fauna, each with a special lure of its own. Tres

can be taen along the remote areas or the route pilgrims ha"e treed year to

remote shrines in the mountains.

The season for treing is &pril to @une and -eptember to No"ember with

regional "ariations. No system of permits e*ists in !ndia but treers should not

enter any restricted areas.

R/9 C82=26;

Especially Popular in the foothills of the 'imalayas where"er there are

rocs and hills, stiff climbs and sheer mountainsides # roc climbing is a

popular sport.


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&88626;

!n its infancy this sport is a"ailable only !n 1elhi. The %allon Club of

!ndia at 1elhiJs -afdarjung &irports is the &irport is the taeoff point and has its

headquarters within the comple*.

H6; G8226;

ecently introduced in !ndian 'ang /liding is a"ailable at Pune, 1e"lali,

$umbai, New 1elhi, Chandigarh, -himla and %angalore. Gangra and Gasauli

are de"eloped as major hang#gliding centre.

C=*8 T*94 6 D*4*0 S24

The great !ndian That 1esert pro"ides the scene for e*ploring the old

desert routes on camel bac or for the less intrepid in camel carts. @eep tours can

be taen o"er remote desert tracs that are rarely taen by tourists. @odhpur,

@aisalmer and %ianer are the starting points for such tours with stops at

"illages7 en rote.

'260* '0* R026; 6 R2* R6626;

The mighty !ndian ri"ers tumble and crash through the mountains to form

white water rapids and terraced cascades. This is a paradise for the white water

sportsmen. :adah and Oansar "alley in Gashmir, :ahul "alley, the /arhwal

'ills and -iim are some popular areas. The !ndus, Oansar, /anges, a"i,%eas, Chenab and Teesta are ri"ers with both rough and clam waters for both

beginners and e*perts. These ri"ers and e*cellent for canoeing and ayaing.

'260* S+04

/ulmarg in Gashmir is !ndiaJs most popular and de"eloped si resort with

most modern equipment. There is an institute of siing and mountaineering,

which offers training courses. The /ulmarg #Ghilanmarg route is a great


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e*perience for si mountaineering enthusiasts. Gufri also offers siing. &long

the ohtang pass, siing is possible in summer also. -himla offers ice#sating,

figure sating and speed sating.

M0 R882*4

Through out the year many rallies are held whose dates can be obtained

from the nearest tourist office. The 'imalayan car rally attracts international

participation and goes through the mountains of 'imachal Pradesh and Dttar

Pradesh.

&*/) R*404

The e*tensi"e coastline of !ndia has e*cellent "irgin beaches unspoilt as

yet by man. The best#de"eloped beach resorts are at /la, Go"alam and

$ahabalipuram. E*cellent water sport facilities are a"ailable at these three

centers. There are other resorts in smaller cities along the coast of !ndia.

'2882* T24=

The !ndian subcontinent pro"ides "ast "ariations in geography and

climate, which results in di"ersity in habitats and wildlife. The 'imalayas offer

a wide spectrum of landscapes and wildlife. Tropical forests in its eastern

e*tremity contrast with pine and coniferous woodlands of western 'imalayas.

Natural co"er "aries with altitudes and these e"ergreen forests are bounded withhigh alpine meadows nearer the snowline and temperate forests of short stout

trees in the lower ele"ations. !n the foothills are the deciduous trees, with

shrubs, bamboos, fern and grass. The northern plains, the course of holy ri"ers,

the great Thar 1esert and the -undarbans, the marshy swamplands, the

"olcanic roc of the deccan plateau all pro"ide fascinating habitats that sustain

o"er =? species of mammals,


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national pars and >>4 sanctuaries dotted around the country. (hile some are

inaccessible others ha"e e*cellent facilities for the "isitors. The thrill of spotting

herds of wild elephants, deer, a rhino or e"en a tiger in its natural en"ironment

is "ery difficult to match.

&)240 /2/20 6 P28;2=;* 024=

Pilgrimage tourism is a major segment that contributes to the growth of

employment and local economic de"elopment. The National &ction Plan

announced in the parliament in 4AA4 recognized pilgrimage tourism for the

first time in the country. Temples and tourism go hand in hand and with the

increase in the number of temples the tourism industry also grew. Today more

than ?6 of the A.< million domestic tourists tra"el to "isit "arious places of

worship starting from the /anges to ameshwaram and aishnode"i to

alaninil !n 4AA more than A? :ah people assembled at the Gumbh $ela,

the largest and the last of its ind in the


40/132

parliamentary standing committee on transport and tourism had recently pointed

our that although during &pril#1ecember 4AAA, the estimated foreign e*change

earning was s. ,4B.A4 crores, for the last three financial years, the Plan

outlay for tourism has been more or less equal to the cost of one fighter plane.

!mpossible, to judge a company by its web site. Therefore, other 0no legal3

measures must also be taen to boost customer confidence in online shopping.

The D. G. /o"ernment is trying to promote the ideas of Je#hallmarsJH which

will guarantee that its users are legitimate traders offering assurances on

security of payments and communication and gi"ing information on goods,

prices and a return policy. & new body 2trust DG# will be set up to accredit c#

commerce codes and there are plans to maret the e#ballmar internationally

howe"er many business organization opposes the idea, wanting instead to rely

on self#regulation without go"ernment inter"ention.

Poor e*ample, &%T& aims to clamp down on internet sales by creating

regulations for online tra"el transactions. !t plans to publish a single re"ised

code of conduct for agents and operators in $ay


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The Tourism industryJs foreign e*change earning in !ndia are around L=.6

of global tourist traffic3, there are se"eral distinguishing features that wouldhelp in achie"ing its goal. -ome of these are gi"en below.

; The rate of growth in tourist traffic to !ndia has been greater than the

global a"erage.

; The a"erage duration of stay of foreign tourist in !ndia is one of the

highest in the world .)n an a"erage, it e*ceeds days


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; !n the case of pacage tourist.

; The major share of the international "isitors emanates from (est ,

Europe and North &merica,

; The tourist on pacage tours spend nearly 5? percent of their e*penditure

on shopping.

; There is high degree of seasonality in the foreign tourist traffic.

; The hotels and tourist related industry has been declared as a H'igh

PriorityH for 1e"elopment.

The confederation of !ndian !ndustry 0C!!3 e*pressed concern o"er the

high ta*es le"ied on the !ndian tourism industry and poor access to tourism

destination. This, according to the press release, is stifling growth in the sector.

C!! points out that the (orld Tra"el and Tourism Council has obser"ed that

Hta* paid by Tourist in !ndia is the highest in the world. !ndian hotels charge

about >6 ta*es compared to other &sian countries where it "aries between =6

and 56. -uch high ta*ation renders the tourism sector as a wholeuncompetiti"e. +urther, there is considerable disparity between state le"el ta*es,

especially on food and be"erages. !n fact, the sales ta* on imported be"erages

"aries widely, e.g.5=6 in Garnataa to


43/132


44/132

.! P+4* V2420.

Tourist arri"als to !ndia according to the purpose of "isit in < A=.< =. .< .=

-ri :ana AA A>. . .4 .4

/ermany ?=?< ?.B 4=.< .= .4

+rance B= .? .=4 .4

@apan 5==A A?. =.? . .4Canada ?5>>4 A5.> 4.? .4 .=

C:- ?5=B 4.= 4B.= .4 4.4

-ingapore >>4?B 5


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satisfaction of users the focal point around which all the functional areas of

mareting cluster. (hile clarifying the perception of tourism mareting, it is

essential that we assign due weightage to the three important considerations, the

first generations of fits by the tourist organization second world class ser"ices to

the tourists rich help !n satisfying them and the third positi"e contributions of

tourist organizations to the process of social transformation and ecological

balance.

(e consider mareting a human acti"ity that direct the flow goods and

ser"ices from producer to consumer or users. Golter finds mareting a social

and managerial process by which indi"iduals and groups obtain what my need

and want through creating and e*changing products and "alue with others !n

"iew of the abo"e, the following points emerge regarding tourism mareting9

Tourism mareting is process of creating a product or pro"iding a ser"ice.

Tourism mareting comprises fact finding, data gathering, analyzing 0mareting

research3, communication to inform and promote 0Promotion3, ensuring andfacilitating sales, selection of mareting planning 0distribution3, Coordination,

Control and e"aluation 0mareting planning and auditing3, de"eloping

Professionally sound personnel0people3.

; Tourism mareting is an integral effort to satisfy tourists and more so, it

is a 1e"ice to transform the potential tourists into the actual tourist.

; Tourism mareting is the safest way to generate demand, e*pand maretand !ncrease the $aret share.

; Tourism mareting is a managerial process to promote business acti"ity

directed at satisfying the needs id wants through e*change processes. The

&merican $areting &ssociation defines mareting as the performance

of business

.1 U4*4 T24= S*2/*4


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(e find difficult categories of users a"ailing the ser"ices of tourist

organization. (e find classification of different categories which would help

the tourism Professionals in studying and identifying the le"el of their

e*pectations "is#F#"is their beha"ioral profile.

G*6*8 : -tudents, E*ecuti"es, &rtists, Politicians, Cine &rtists

S*? : $en 8 (omen

R*;26 : ural, Drban

E/026 : :iterate, !lliterate

S004 : ich 8 Poor

P*4426 : E*ecuti"es, &cademics, &rtists and -portsmen

O//+026 : (hile Collar 0Clerical3, %lue Collar0$anual3

N6 U4*4 9 Personas not interested in using the ser"ices are

nown as non#users. They lac willingness, desire and ability and therefore, the

le"el of income ore e"en the a"ailability of leisure hour is not to influence them.

P0*6028 4*49 (e also call them prospects or the prospecti"e users. They

ha"e willingness but the mareting resources ha"e not been used optimally for

influencing their impulse. They bear the efficacy and the mareting

professionals are supposed to capitalize on their potentials by using creati"e

promotional measures.

A/08 4*4 9 Persons already using the ser"ices generated by the tourist

organizations are nown as actual users.

O//4268 4*4 9 Dsers a"ailing the ser"ices occasionally but nor forming the

habit to tra"el are nown as occasional users.

H208 4*4 9 Dsers forming a habit and a"ailing the ser"ices regularly are


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nown as habitual users.

.! M9*0 S*;=*60026 T24=

The beha"ioral scientist feels that appeal, strategy and tact "ary from

segment to segment in a natural way necessities a change in strategic decisions.

The modern mareting theory prefers the formulation of mareting policies and

strategies for the each maret segment which an organization plan to solicit. !t is

natural that different segments react in a different way. -egmentation maes

possible tailoring of products and mareting programmes uniquely suitable for

each sub#segment. & maret is not only an aggregate demand for a product but

the sum of demands of different maret segments. +or getting a positi"e

response in the maret, it is pertinent that the mareterJs of the tourist

professionals are well aware of the different maret segments. !t is against this

bacground that we need to study maret segmentation for tourist ser"ices.

&t the outset, it is essential that the tourist organizations select a suitable

base for segmenting the maret. The selection of base has a for reaching impacton studying the target maret. Though there are a number of bases for

segmentation, we find lifestyle an important base since the tra"eling decisions

are fantastically influenced by the changing lifestyles. The emerging trends in

the le"el of income, the a"ailability of leisure hour of course influence the

process but the main thing is the lifestyle. This is supported by the logic that if

we earn more, we spend more.(e prefer to utilize our leisure time for gaining pleasure or for enriching

the nowledge ban. This necessitates an in#depth study of lie style for maing

segmentation proacti"e. The li"ing styles of &mericans and !ndian canJt be

identical, the decision maing of both of them are to be different. The &merican

prefer to tra"el and therefore they assign due weightage to the tra"eling

decisions while scheduling or ordering their engagements. The !ndians a"oid

tra"eling albeit we find them earning more or sufficient leisure time or holidays


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in their hands. This maes it clear that for segmenting maret, we find this

"ariable constituting a place of outstanding significance.

The aforesaid facts mae it clear that for getting a positi"e response, the

segmentation of tourism maret needs an intensi"e care. The tailoring of

products with the e*pectations of tourist or a fair synchronization of

touristJs e*pectations and potentials of the tourist organization would hardly be

possible unless we segment the maret in a right fashion. The opinion leaders

prompt the whole drama of mareting where the word#of#mouth promoters play

an incremental role. The process of segmentation simplifies the tas of

mareters. Tour operations, the transport operators the tra"el agents, the tourist

guides, e hotels find it easier to mae the mareting decisions. They e"en with

the minor intelligence and diligence are found successful in identifying the

maret the potential tourists. !t is right to mention that the needs and

requirements well as the le"els of e*pectations canJt be uniform.

The segmentation benefits tourist organization in different ways. &n

optimal mareting plan, a balanced de"elopment of mareting resources,true gauging of the le"el of e*pectations, formulation of creati"e strategies

for getting a positi"e response mae it clear the tourist organizations

assign due weightage to segmentation. They are supposed to select a

suitable base for segmentation out of numerous bases lie day base, purpose

base, demand base, geographical base, Psychological base, demography base,

socioeconomic base, se* base, age base or so.These bases help professionals in studying and understanding the

changing beha"ioral profile of users. The maret segmentation bases mae it

clear that geographic, demographic, psychographic and socio#economic aspects

canJt be underestimated to ha"e clear picture of the tourism users.

1. H82< 4 &4* # $ass $aret, Popular $aret

!. D*=6 4 4* # Primary, -econdary opportunity


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3. G*;+)< 4 4* # Cities, Pro"inces, egions, Countries

. P4


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inno"ate their strategic decisions accordingly. The de"elopment of mareting

resources in tune with the changing le"els of e*pectations mae the ways for the

stimulation of demand and simplify the tas or mareters. !t is in this conte*t

that we need to segment the maret for the different allied industries helping the

tourism industry in many ways.

.3 D*42;626; P/9;* T

!n the process of formulating a sound product strategy, there are a number

of factors to be gi"en due attention. The designing of a pacage tour occupies a

place of outstanding significance. +or the profitable mareting of tourism

ser"ices, it is pertinent that the different components of product are managed in

a right fashion. This gra"itates our attention on the offering of a pacage

holiday product which necessitates management of the following factors.

. D*4026026

The de"elopment of destination or tourist sites has a far#reaching impacton attracting the tourists. !t is essential that destination or the tourist sites are

easily accessible. This necessitates safe, fast and reliable transportation facilities

hither and thither the tourist sites. To be more specific for promoting world

tourism or attracting the foreign tourists, it is essential that the flying time is

made proportionate. The site should be clean, the beaches should be sandy, sun#

shine should be certain, the entertainment facilities at the site should be ofquality the site should be safe to wal about, the local people should be friendly,

the tour operator, the tra"el guides and others should ha"e competence of

speaing English and other regional languages. These facilities at the

destination would add attractions.

.5 M6;*=*60 A2+0

(hile managing the tourism product, the airports are required to be


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managed carefully. The airport should be local and con"enient. The

arrangement for car paring should be safe and adequate. !t should not be

congested but it should be spacious. !n addition, the shopping facilities should

be duty free. The airport should be clean and the "ehicles should be a"ailable so

that tourist doesnJt face any trouble. %esides, the security arrangement should be

tight to protect the passengers and their "aluables. The aesthetic management

occupies a place of significance in the "ery conte*t.

. A2826*4

The flights should maintain the time schedule otherwise a dislocation

may in"ite multifaceted problems, not only to the tourists but e"en to the airport

authorities. The ser"ices should be reliable, good and polite. The sophisticated

modern aircrafts of new generation should be included in the fleet to attract the

tourists. The safety record should also be up to mar to remo"e the fear

psychosis or psycho#fobia.

.7 R 6 R28 T64+0026

+or the tourists preferring to tra"el by buses of railways, it is significant

that the stations are well managed. The booing and reser"ation counters should

be managed scientifically. The enquiry should be controlled by efficient and

well beha"ed staff. The safety arrangement should be adequate to counter the

law and order signposts should be positioned at right places to help thetra"elling passengers.

. H0*84

+or managing the hotel ser"ices, it is essential that we are also careful to

the hotel accommodation facilities. !t is pertinent that hotels are easily

accessible to the tourist sites or beaches or shops. The hotel personnel


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trustworthy and competent enough to spea English and other regional

languages. They are supposed to be friendly. The management of facilities at

hotels need due care. Though the standard of ser"ices, amenities and facilities

depend upon the grade of hotels still it is essential that hotels offer the promised

ser"ices to the users. The gap between the ser"ices#promised and ser"ice#

offered should be # bridge o"er. The hotels should be well maintained, the decor

should be attracti"e possibly a fair mi* of eastern and western culture, the

atmosphere should be calm and quiet specially at the night time, public rooms

should be adequate in number, the swimming pool should be neat and clean

where inflow and outflow of water should be scientific to protect the danger of

water contamination or pollution. There should be bar with good range of

drins.

The bedrooms should be spacious in which balcony facilities should be

made a"ailable. The childcare ser"ices should also be made a"ailable.

Particularly at the beach resorts, the sea "iew should be possible with all rooms,

in#room telephonic ser"ices should be a"ailable, in, and room#T should bepro"ided. There should be adequate cupboard space. The hangers should be

attracti"e and artistic, toilets should be neat and clean and well equipped with

east and west pro"isions. The lighting and "entilation arrangements should

be adequate. The intensity of light at different points should be gi"en due

weightage. (hile managing hotels, the restaurants and cafeterias also

need due care. The restaurants and cafeterias should be well managed. Thefood and drins should ha"e taste#orientation. The "arieties of meals and drins

should be a"ailable. The seating arrangements should be comfortable, the meal

should be fle*ible and the hotel personnel should be polite and friendly.

. R*40 R*+*4*6002*4

egarding representati"es of resort, they should be#nowledgeable

friendly, accessible and competent.


53/132

.1 M24/*886*4

!n addition, the fellow tra"elers should be lie#minded. The main thing is

to mae the tour pleasant and memorable. !f the tourist ha"e companionable

fellow tra"elers, the journey would of course remain memorable.

The aforesaid facts mae it clear that being an amalgam of a number of

industries and ser"ices, the tourism industry is nown as a multi#segment

industry in which the designing of a pacage which pro"es its instrumentality as

a moti"ational force is found a bit difficult and challenging. !t requires

professional e*cellence so that we are in a position to assess the changing le"els

of e*pectations of the guests8tourists and all the required amenities and facilities

are made a"ailable to help tourists to go to the destination, to enjoy and to come

bac safely. The tour operators and transport operators bear the responsibility of

formulating a pacage tour and therefore they should ha"e world class

professional e*cellence to now and understand their changing needs and

requirements.

The ser"ices are related to a number of industries managed by others andtherefore, the tour operators and transport operators managing the affairs should

mae it sure that whate"er the promises they ha"e made on behalf of hotels,

airways,J railways, roadways are not to be distorted. This is liely to project the

image of tour operators and therefore a gap between the ser"ices#promised and

ser"ices#offered would mae the tas difficult. !t is against this bacground that

designing of a pacage tour occupies a place of outstanding significance and allthe allied industries maing the pacage are required to be careful that they are

not in"iting degeneration.

1. S'OT A68


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spending of tourists.

; )nly ?, hotel rooms are a"ailable in !ndia today, which is less than

the %ango total hotel capacity. -o accommodation facilities are quiet

less.

; The ser"ices currently offered by the hotels in !ndia are only limited

"alue added ser"ices. !t is not comparable to the e*isting world standards.

This is the reason why international tourists prefers other &sian countries

than !ndia.

; !nefficiency of the domestic airlines# there are number of instances of

flight being cancelled or delayed. -econdly frequent stries by the pilots

and maintenance problems are a major cause of concern. This is one of

the reasons that mae a tourist disheartened.

; Tra"el agents are most affected by the ta*es that are part of the industry

so at last tourists are the sufferers.

O++06202*4

; &llowing entry of more multinational companies into the country gi"ing

us a global perspecti"e.

; /rowth of domestic tourism.

; 1emand between the national and the inbound tourists can be easily

managed due to difference in the period of holidays. +or international

tourists the pea season for arri"al is between -eptember to $arch whenthe climatic conditions are suitable where as the national tourist waits for

school holidays, generally the summer months.

; 1e"elop a well# studied master plan for tourism in the country, which

should mae it easier for in"estors as well as the authorities.

; -upport and encourage pri"ate sector to in"est in facilities.


56/132

; +ight pollution and littering by law.

; &dopt strict measure for ci"il hygiene and cleanliness.

; Pro"ides essential basic facilities lie toilets and resting facilities

throughout tourism routes.

; 'a"e an effecti"e international mareting agency to promote

!ndia as a destination.

; !n"est on P measure abroad mobilizing the media to a greater e*tent.

; Project people, culture, lifestyle, food festi"als etc to offer the human

element appeal than the natural beauty of the land for long lasting result.

There are other naturally beautiful places in the world, but it is the people

that mae a place unique.

; The de"elopment of tourist resorts, such as hotels on mountains or hill

tops, should be low density and low rise to retain the cool temperature as

main attraction of these locations.

; The rele"ant authorities must ensure that security measures are enforced

at all time.

T)*04

; Economic conditions and political turmoil in the country is affecting

tourism.

; &ggressi"e strategies adopted by other countries lie &ustralia, -ingapore

and $alaysia in promoting tourism are also posing as a serious threat toour country.

; Changing trends in the west demand similar changes in !ndia, which here

are difficult to implement due to high project costs.

; Pollution is a major menace to the industry, which has to be tacled by

the go"ernment through legislation. /arbage, Plastic, sound pollution

near tourist centres and all such discrepancies need immediate action

from the go"ernment otherwise it will pose a major threat for tourism


57/132


58/132

way the industry players perform. +or e*ample, the /o"ernment charges high

rates of ta*es on the lu*ury and the star category hotels and this has always been

a cause of disagreement between. The hotel association and has been getting

many incenti"es and many has been getting the go"ernment .There are many

areas where the growth of tourism has not been rapid or has been dramatic fall

because the political en"ironment has been conducti"e. E*amples are the North

East for the former and Gashmir for the later. The neglect of the /o"ernment in

1e"eloping the North East leads to a situation where there is practically no

tourism in the se"en.

-imilarly, the political turmoil in the state of Gashmir has seen the "irtual

decimation of the flourishing tourism industry. The H'ea"en on EarthH is &

"irtual hell for the industry. There has been a major change in the policies of the

/o"ernment as regard to the industry. The hotel industry has been getting

many incenti"es and many -tate /o"ernment are encouraging the growth of

major hotels in their states. &fter years of tight control o"er airportinfrastructure, /o"ernment has finally taen the decision to pri"atize the

airport. Cobwebs and e"en rats were the frequenters in the arri"al lounge at a

major international airport of !ndia . !t is the only way to impro"e their

condition.

Tourism has been a Neglected sector in !ndia .Though it was recognized

&s a priority sector in the -e"enth +i"e Kear Plan but hardly anything was doneto promote this industry. ecently, the %@P /o"ernment has e"en dropped it

from the National agenda. !t is true that !ndia has yet to reach the prosperity

le"el where leisure acti"ity can be included in the Priority -ector but, if sol"ing

the countryJs unemployment and foreign E*change problem are on the top of the

National agenda. The potential of this industry cannot be neglected.

The $inistry of Tourism, /o"ernment of !ndia is the nodal agency for


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The formation of national policies and programmes and for the coordination of

acti"ities of "arious central and state go"ernment agencies and the pri"ate sector

for the de"elopment of Tourism .'owe"er, all the en"ironmental regulation are

enforced by the $inistry of En"ironment and +orests. The national Tourism

policy en"isages a "ery big role for all the staeholders in the decision maing

process. They are in"ol"ed in the de"elopment of tourism and ha"e contributed

substantially is sustainable Tourism in the country.

The National Policy on Tourism lays emphasis on sustainable

de"elopment of tourism. !n addition, the /o"ernment has brought out a

comprehensi"e Eco Tourism Policy and /uidelines .&ll issues rele"ant to

sustainable tourism are co"ered in the policy and guidelines.

The Eco tourism policy and guidelines will ensure regulated growth of

eco tourism and nature#based tourism with its positi"e impact of en"ironment

protection and community de"elopment.

There are established procedure stipulated by the $inistry ofEn"ironment and +orest for project clearance and monitoring. There are

deterrent in these strategies to chec, control or penalize damaging

en"ironmental practices on the part of business and "isitors.

There are se"eral &cts and laws, which ensure sustainable tourism. These

are the (ild life Protection &ct 4AB


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en"ironment.

!ndia, with the /1P approaching L4 trillion has been put by the

!nternational $onetary fund as one of the fi"e biggest marets of the world. The

sense of urgency that the !ndian in"estment climate has de"eloped has

translated into the ind of economic indicators M figures that ha"e indled

interest and brought in results from e"en the most conser"ati"e in"estors, here

are tremendous opportunities for Companies participating in the tourism sector

of the economy.

The hotel and tourism related industry has been declared as high priority

industry for foreign in"estment .it is now eligible for appro"al of direct

in"estment up to ?4 6 of foreign equity. Non#esident !ndian !n"estment !s

allowed up to 46.

!n recognition of the relationship between suppliers8users of technology

&nd with a "iew to impro"e technology, the go"ernment has allowed automatic

appro"al of foreign technology agreements in the tourism ; industry subject to

certain conditions. !n the past liberalization period the 1epartment of Tourismhas cleared as many as foreign in"estment Proposals, from &ugustJA4to

+ebruaryJA?.

N=4 A0=02/ A++8 F*2;6 D2*/0 I6*40=*60

&pplication for automatic appro"al of +oreign Equity !n"estment up to

?46 in the hotel M tourism related industry ha"e to be made in the prescribedform +C 0.%.!.3 H'otelsH would include restaurant, beach resort and other

tourist comple*es pro"iding accommodation and8or catering and food facilities

to tourists. The termH Tourist#related industryH would include among others the

following9

4. Tra"el agencies, tour operating agencies and tourist transport

operating agencies.


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e*perience to tourist.

=. -urface, air and water transport facility for tourists

I6/*602*4 I6*40=*60

4. =6interest subsidy to hotel project in 4 to = star categories onloans

sanctioned by appro"ed financial institutions pro"ided the projects are

outside the metre cities of 1elhi, $umbai, Golata and $adras.

. 'otels, tra"el agents, tour operators, and other organization connected

with tourist trade are now co"ered under :iberalized E*change ate

$anagement -ystem. &uthorized dealers are now allowed to releaseforeign e*change without the prior appro"al of 1epartment of Tourism.

?. +acility to open and operate E*change Earners +oreign Currency &ccount

e*tended to hotel M tourism related industry.


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connections.

P+4* I6/*602*4 26 0)* 26;

4. & capital subsidy of s.


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The state go"ernment has declared its policy of promoting tourism, and

more particularly of encouraging pri"ate in"estment in this sector. The main

points of this policy are9

a. (elcoming of pri"ate in"estment in creating tourist facilities as well as

related infrastructure.

b. Encouraging the transfer of technology in tourism related industry.

c. +le*ibility in policy on joint "entures, participation, and terms for %uild,

)perate and )wn or Transfer models.

The legal en"ironment is also a major determinant for the industry .The

laws that go"ern industry are not the same in all the parts of the country. :aws

lie the urban :and Ceiling &ct limit the amount of land any organization can

hold and this se"erally limits the growth of hotel rooms in many areas of the

country. $any of the :aws that are in effect are old and archaic ,and not geared

to meet The challenges of the


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from its present le"el of .5B6 to a target of 46 by


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thousand and changed the whole culture of the state. This had a ripple effect on

the country. People became cautious Especially of the international tourists.

(hene"er a certain place became +amous, the e*ample of /oa was cited to

discourage the inflow of !nternational tourists.

&lthough the abo"e my sound may discouraging , the scene is fast

Changing. Those places that ha"e .been able to strie a balance between their

own culture and the demands of the international tourist ha"e profited

handsomely. The e*ample that come to mind are Gerala and ajasthan, as

discussed ahead in the report. People are now adopting themsel"es to the fact

that tourism pays and it can be a major source of !ncome for them. E"en people

themsel"es ha"e started tra"eling. !n addition, tourism as a form of recreation

has really caught on. People are willing to tra"el to a place that is out of way

and e*otic. (hen pre"iously tra"eling on a holiday meant going to a hill

stations and beach, now people are willing to go in for ad"enture tourism as

well as "isit places that cannot be really be called hospitable. Now places lie

:eh and :aswadeep are mentioned in the same breath as /oa or Gashmir.

D*=;+)2/ /04:

H&n indi"idual is a core unit society H a group with similar needs create a

maret for particular product. !t means people or population is the most

important factor. The mareter must ha"e to eep watech on the population size

M growth rate education le"el regional characteristics and house hold patterns.

1. P+8026

&s !ndian population growth is around < 6


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. E/026 G+

The population in any society falls into fi"e # education group.

4. !lliteracy.

. College degree.

?. Professional degree.

!n !ndia adult literacy rate is ?.46.5>6 of total male population and >


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!ndia has much di"ersity in groups. Each group has distinct taste

preference, benefits and "alues. This distincti"eness affects their choice of

product and %eha"iour as well as consumption beha"ior.

-o mareter has to understand their culture and social di"ersity and

respond by way of designing their product. -o social and culture e"aluation

helps the mareter to target and positioned its products, and ad"ertising in

"arious members for "arious masses.

; eligion

; :anguage

; +ood

; Culture M Crafts

; Education

The fabric of !ndian society is wo"en with myriad threads. The result is

multi#te*tured, many layered and though this di"ersity has fuelled some

dissension, it continues to be !ndiaJs strength. !ndia is predominantly 'indu and

it also has the worldJs largest population of $uslims. -ihs, %uddhists, @ains,Christians 0oman Catholic, Protestant and -yrian Christian3, @ews and

Ooroastrians people this great land. There is phenomenal ethnic di"ersity too.

(hile the people of the north are mainly !ndo#&ryan, in the south they are

mostly 1ra"idian. The tribal population in the northeast is of Tibeto#%urmese

e*tract, while the Jadi"asisJ of $adhya Pradesh and /ujarat are probably proto

&ustraloid. :anguage "aries almost e"ery ten miles and !ndiaJs billion#strongpopulation has a total of 4?=? recognized dialects.

)ne of the most mared things about !ndian society is the great di"ersity.

This applies to religion, ethnicity and language as much as to the economic

situation. The yawning gap between the rich and the poor is bridged by a large

middle class of small businessmen, professionals, bureaucrats etc.


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$ost !ndians acti"ely practice their religion, and despite the creeping

westernization, most of !ndia is socially orthodo*. That means that caste

distinctions ha"e not been forgotten, man#woman interaction may be frowned

upon, and the public display of affection is strictly no#no. The cow is sacred and

Jall ye who forget that#be doomedJ. The left hand, which is an indispensable tool

for !ndian ablutions, is considered impure and isnJt used in passing things

around.

)n the whole the !ndians are a warm welcoming people. The guest is ne*t

only to /od and croos and touts notwithstanding, and curious loos and

probing questions notwithstanding, youJll find that they are great hosts. Their

idiosyncrasies just mae it all the more interesting be patient and you will learn

to lo"e the complete pacage.

R*82;26

!ndia probably has the most religious di"ersity in any country. !tJs thebirthplace of 'induism, %uddhism, -ihism and @ainism. !tJs among the few

places to ha"e a resident Ooroastrian population. The -yrian Christian Church is

well established in Gerala the %asilica of %om @esus in /oa, old churches in

Calcutta and 1elhi, synagogues in Gerala, temples from the tiny to the

tremendous, JstupasJ, JgompasJ and the %odhi tree, the &jmer -harif and Galiya

-harif in %ombay, all reflect the amazing multiplicity of religious practice in!ndia. Tribal people in the northeast, $adhya Pradesh and /ujarat practice

forms of nature worship. -ecularism is enshrined in the Constitution.

L6;;*

The national language of !ndia is 'indi, which in one form or another is

spoen all o"er the north. !n the 1eccan 0south !ndia3, the languages are

completely different. The states were formed on the basis of language so each


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has its own. )n the whole though, dialects, accents, idioms and linguistic

flourishes change e"ery few miles. There are 4 official languages but o"er a

thousand recognized dialects. English is widely spoen.

F

+rom 1C to 1aota, (arwic to what#ha"e#you, !ndian spices are letting

off steam e"erywhere in the whole wide world. &nd you come to !ndia and

realize......hey, thereJs nothing authentic about itU E"ery itchen, e"ery man,

woman, coo, chef does it different.

& meal in the north would typically constitute chapattis or rice with dal

0lentil curry3 and a dish of "egetables or meat. Pappads 0wafers fried or toasted

to a crisp3, yoghurt and picle are usual accompaniments. The chapatti

is a round flat unlea"ened bread of which you tear bits to scoop the curry.

ariations of the chapatti are paratha, poorie, bhatoora, and Tandoori naans.

!dli, dosa, "ada, sambar, uppamaU !n the south, too, a meal centers on a base ofrice, or as in the -outh #!ndian case, semolina preparation. The idli is a steamed

rice cae and the crisp salty pancae often stuffed with potatoes is the dosa.

Eaten alongside is the -outh#!ndian dal #HsambharH, sour, hot, souped #up with

"egetables. The %rahmins are "egetarian, but the rest consume sour#hot fish,

mutton, and chicen with gusto. !n Gerala seafood is simmered in coconut mil

and delicately +la"oured with curry lea"es. $ost !ndians eat three meals, eachone full#fledged.

-a"oury snacs lie paoras pep the e"ening cuppa. &nything coated in

batter 0of chicpea, flour et al3 and deep#fried will pass for paora. &lso, readily

a"ailable on the roadside are snacs lie bhel puri 0spiced up puffed rice3 and

paapri chaat 0wafers and boiled potato doused in curd and sauces3. egetarians

will feel lie theyJ"e come home, especially in the south. %ut no matter where


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you are, in a plush restaurant or a roadside JdhabaJ, in Gunnur or Gullu, you can

be sure of sumptuous "egetarian meals.

&ll along the coast and e*tensi"ely in the northeast fish is consumed

almost as a staple. %oth fresh water and sea fish are popular. !ndians lo"e their

sweets. There is great regional "ariety and among the most popular types is the

%engali HmishtiH. ThereJs also a huge "ariety in drins. %esides JchaiJ 0tea3 and

coffee, sweetened8salty churned yoghurt called lassi, the ubiquitous Jneemboo#

paniJ or lemon#water, fruit juice in tetra pacs and aerated drins are readily

a"ailable in !ndia. !$+: e*pands into !ndian made +oreign :iquor and spans

the entire range from beer to whisey. -ome e*amples of local brews are

JchaangJ in &runachal, toddy in the -outh and /oaJs famous JfeniJ.

C80* C04

M42/.

$uch of !ndiaJs classical music is de"otional and a lot of that, de"oted to

the flute playing god, Grishna. The North !ndian 'industani and -outh !ndianCarnatic streams are distinct and both ha"e a comple* JragaJ framewor.

/hazals in Drdu reflect on life and are light on the ear. E"ery region has a

distincti"e fol tradition too. !nstruments that would typically accompany

!ndian music are the stringed "eena, sitar, and the !ndian drum9 tabla or

mridangam in the south.

D6/*:


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The legacy of dance in !ndia is tremendous. )n temple walls, on an urban

stage, in impromptu bursts by a mellow e"ening fire, men and women twinle

their toes in e*pression of joy. The classical dances of !ndia are numerous.

Characterized by stylized mo"ements and elaborate costumes, these dances

communicate age#old tales of lo"e, longing and rage. Gathaali of Gerala,

%haratnatyam of Tamil Nadu, Guchipudi of &ndhra Pradesh, $anipuri and

)dissi from )rissa are the prominent dance forms in this country that sways to

an altogether no"el beat. The robust bhangra of Punjabi men, the graceful

whirling of ajasthani women, the gentle sway of northeastern dancers,

"igorous tribal dances, e"ery comer has de"eloped its own unique form.

T)*0*:

There is a robust theatrical tradition. The Kashagana, nautani and

puppetry are ancient fol forms that li"e on till date. This tribe of wandering

performers is on the decline but there still are occasional performances on the

rudimentary stages of the rural areas. ustic and coarse the fla"our might be,but the techniques are surprisingly sophisticated. There is a growing body of

contemporary wor both in English and in the "ernacular.

A0:

The earliest specimens of !ndian painting are the ones on the walls of the

&janta Ca"es dating bac to


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arma, the paintings of $.+. 'ussain, @amini oy and /anesh Pyne among

others rule the art scene.

C04:

(ord craft, handicrafts, architecture and sculpture all contribute to this

rich and "aried domain. !ndian literature, both in English and in the "ernacular,

is e"er more popular around the world. 'andicrafts are as "aried as the country

itself. The $ughal and colonial structures and the temple architecture across the

length and breadth of the country are testaments to the lands e*citing past.

-culptures adorn temple walls, stupas, street junctions and ancient ca"es. The

oldest schools are the /andhara and the $athura.

M2*4:

The 'indi mo"ie industry is the most prolific in the world. %ased in

%ombay, hence Hollywood, this spool#spitting machine taes on the onerous

responsibility of fuelling !ndiaJs prime passion. There is sheer joy in the easystereotypes of muscle#fle*ing machismo, leering "illainy and leading ladies of

'indi filmdom, but not all 'indi films are a simmering brew of action,

romance, and song and dance. There is a parallel stream of HartH cinema though

itJs not nearly half as popular as the HcommercialH stream.

/i"ing competition to the 'ollywood masala film is the equally spicy

south !ndian fare. egional cinema is fairly popular in its local conte*t and withserious cinemagoers.

C2/9*0

)h for the lo"e of a si*#erU !ndia grinds to a halt when the countryJs

ele"en don their colours. !n cricet#crazy Calcutta, old fol gather to trash the

Jnew fangledJ limited#o"ers format in front of a million T sets, four million

pray for "ictory 0often nowing theyJre praying for a miracleU3 tirelessly. !tJs a

mad#mad#mad world and in !ndia cricet stars adorn the doors of innumerable


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cupboards. 'ocey, football and now the &TP tour too ha"e a decent following.

E/026

?A.?6 of !ndia is literate9 B..=6 females. Gerala is the

model state as far as education le"els are concerned boasting figures of almost

AA6 literacy. 'igher education in !ndia has a formidable reputation. (hether in

engineering or medicine, business management or social science education,

!ndia uni"ersities are at par with the best in the world.

D. T*/)68;2/8

Technology although does not seem to be a major influence at the first

glance, stillJ it plays a major part in the promotion of a place. %etter

communication facilities are one of the first prerequisites for growth in the

inflow of tourists. This has been made possible with technology. %etter

technologies in the field of communication with cheaper costs ha"e seen many

remote and inaccessible areas of the country get connected to the rest of theworld. This connecti"ity has made these places "isible to the world. %etter

communication means access to media. &nd that is "ery important if any place

wants to be on the world tourist map. -imilarly better transportation facilities

ha"e lead to a dramatic increase in the number of tourists "isiting any particular

place. The presence of an airport and the a"ailability of frequent flights are a

great con"enience to any tra"eler.

FIVE FORCE ANALYSIS

Professor $ichel porter of 'ar"ard %usiness -chool has con"incingly

demonstrated the state of competition in an !ndustry !s a composite of fi"e

competiti"e forces which are as under.

43 The ri"alry among competing sellers.


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=3 Competiti"e pressures from substitute products.

>3 -upplier# seller collaboration and bargaining.

?3 -eller#buyer collaboration and bargaining.

(e ha"e analysis here the fi"e force competition in conte*t with Tourism

industry analysis of the fi"e force of competition, are as under relating to

Tourism !ndustry.

T)* R28< =6; C=+*026; S*88*4.

The strongest of the fi"e competiti"e forces is usually the joceying for

position and buyer fa"our that goes on among ri"al sellers of Tourism !ndustry.

!n the tourism industry cross country ri"alry is centered on price Competition M

promotional scheme. i"alry among competitors is "ery high in case of tourism

industry 1ue to the following reason.

R*464 F H2;) R28


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at present and hold the status of the worldJs on 4 !ndustries There is currently

can estimated > million !nternational tra"elers world wide. The figure is

e*pected to rise to 55 million by the end of the year


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Tourism !ndustry gi"en entertainment to the tourist and also pro"ide

some. Gnowledge of that place as per that we can says, media, 'ollywood, and

all type of entertainment industry are the substitute of the tourism industry. %ut

we canJt say that they are close substitute of industry. %ecause they are different

thing than tourism.

Thus, tourism industries has no problem for the close substitute because

they are not other product or ser"ice which is use as substitute of tourism so the

tourism industry is being fearless from the substitute.

S++82* S*88* C88026 6 &;2626;:

(hether supplier seller relationship represents a strong or wea

competiti"e force depends on whether supplier can e*ercise sufficient

bargaining power to influence the terms and condition of supply and the e*tent

of supplier. -eller collaboration in the tourism industry.

-upplier are liewise relegated to a wea bargaining position whene"er

there are good substitutes for the item they pro"ide and buyers find it neither

costly nor difficult to switch their purchases to the suppliers of alternati"e items.

-uppliers also tend to ha"e less le"erage to bargaining o"er price and other

terms of sale when the company they are supplying is a major customer.

S*88* - &


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R*464:

1. L;* 6=*


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&s many as AB6 of the foreign "isitors tra"el by air maing ci"il a"iation a

prime influence on the course of tourism growth. This maes both these sectors

far too interdependent.

The liberalization of ci"il a"iation policies in !ndia mared by licensing

of pri"ate airlines to operate on routes ser"ed for > years by the state owned

carriers was prompted by the demands of tourism. &ccording to the (orld

Tourism )rganization of which !ndia is the member, tra"el and tourism account

for 4


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tra"eler can journey to any part of the country by !&Js fleet or aircraft. No less

than


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star to fi"e star delu*e depending upon size and amenities. &bout =6 of the

rooms fall under the ?# star or ?# star delu*e categories.

The hotel should pro"ide facilities lie reception, cash and information

counter attended by well qualified, trained and e*perienced personal,

conferences in the form of one or more conference rooms8banquet halls and

pri"ate dinning rooms. There should be a recognized tra"el counter, money

changing and safe deposit facilities, luggage room and medicines on the

premises. The hotel should offer both !nternational and !ndian Cuisine and the

food and be"erage ser"ice should be highest standers. The hotel staff should be

well qualified and should be able to understand and spea English. There should

be pro"ision of laundry and dry cleaning.

(ith a "iew to maintaining standards and enforcing control, the

1epartment of Tourism $inistry of Tourism and Ci"il &"iation,

/o"ernment of !ndia has de"eloped a system of categorizing the a"ailable

accommodation as per certain criteria. &ccordingly, the hotels are either

appro"ed or unappro"ed.

The appro"ed hotels are found of international standard and normally the

foreign tourists prefer to stay in that category of hotels. This is due to the fact

that the appro"ed hotels ha"e the stamp of official recognition. &ppro"al in

itself simplifies the tas of promotion. The hotels professionals bear the

responsibility of identifying the emerging segments.)f late we a new trend e"en in !ndia condition because women ha"e been

found staying in hotels or eating in hotel restaurants. There are women

e*ecuti"es and women going on holidays in all age group albeit without

accommodating men. & number of married women ha"e been found taing an

e*tra holiday on their own. $iddle# aged, di"orce or single women ha"e also

been found staying in hotels. !t is against this bacground that we find women

segment emerging as an important segment for the hotel business.


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13. R

&irports being a wea lins in !ndian tourism, tourists are forced to use

oads. $ore than6 of the tourists has to use road networ but the deplorable

road conditions in !ndia do not mae the tra"eling easier. The major factor that

hampers the de"elopment of road sector is the go"ernment control o"er all the

road properties. !nternationally, all the major cities within the country are

connected with si* lane highways. %ut in !ndia, e"en the four metros are not

well connected. Thus, the basic infrastructure to support the tourism industry is

missing.

& de"eloped country possesses e*cellent roads since this opens for them

new "istas of de"elopment. Contrary to it in a bacward country, the road

Present a "ery gloomy picture. The roads strengthen our infrastructural %ase

and so become instrumental in acti"ating the process of de"elopment. &s

compared to other forms of transport, the road transport is found cheaper of

course in the !ndian perspecti"e, the !ndian ailways ha"e been offering

economic ser"ices to the users which are found cheaper than the road transport.The operational cost of railways, steam#ship or airplanes. ailways or steamship

or airplane can be used by anyone e"en without maing a direct payment. This

clarifies the significance of road transport in todayJs perspecti"e.

-electi"e up gradation of

Documents

Project Report Tourism