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Tourism Entrepreneurial Opportunities in Sikkim
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Potentiality of Tourism Entrepreneurship in Sikkim
Abstract: Alpine State Sikkim has immense potentiality to develop and nurture tourism
as a mean of income and employment opportunity. Sikkim is one of the very few Indian
states with a distinctive characteristic of having a significant influence of tourism
through its economic and socio-cultural contribution. Tourism as a mean of economic,
socio-cultural and environmental development has brought about several questions. So
present tourism development needs an assessment to ensure a proactive and sustainable
orientation. This sustainable development orientation and its practical implication will
be a bumptious statement without equitable development with dignity and justice. The
present article addresses issues involved in equal income and job opportunities through
an analysis of destination environment and entrepreneurial potentialities. A destination
TOWS analysis has been conducted and regional disparities have been addressed to
formulate an entrepreneurial policy justifying equal development and scope for all in
Sikkim.
JEL Classification : E21, M13, M54, O17, P41, P52, Q56
Key Words: TOWS Analysis, Destination Entrepreneurship Development, Community
Development, Destination Investment Cell, Tourism Entrepreneurship Development Cell,
Sustainable Entrepreneurial Opportunities
Introduction and Development of Sikkim as a Tourist Destination
Sikkim is a small hilly state, bounded by vast stretches of Tibetan plateau in the North,
the Chumbi Valley and the kingdom Bhutan in the East, the kingdom of Nepal in the
west and Darjeeling (West Bengal) in the South. Its latitude is 27030l north and the
longitude is 88030l east. Sikkim is famous for scenic valleys forest, snow clad mountains,
magnificent Buddhist culture and heritage and peace-loving people. Though small, the
environmental, social and cultural diversities are not so. Some scholars believe that the
word Sikkim involves Nepalese dialect and it refers to a ‘now place’ or the term has been
derived from a Sanskrit word which means a ‘mountain crest’. The people of Sikkim
have ethnic diversity. The Bhutias came from Tibet, the Lepchas were the aboriginal
community and the Nepalese came from Nepal. When Sikkim was an independent state it
faced many invasion by its neighboring countries and the king took the help of the British
India and, later, gifted some of its region including Darjeeling to the British India. Now
this 22nd Indian State (joined Indian Union in 1975) has Over 81% of the total
geographical area under the administrative managerial control of the Ministry of
Environment and Forest, Government of India. Over 45% of the total geographical area
of the state is under tree cover and nearly 34% of the geographical area is set aside as
protected area network in the form of national park and wildlife sanctuary. The basic
statistics of flora and fauna are given here under.
Flora and fauna of Sikkim
Mammals 144 species
Birds 550 species
Butterflies and Moths 650 species
Reptiles 33 species
Frogs 16 species
Orchids 550 species,95 Genera
Rhododendrons 36 species, 45 varieties
Flowering Plants Over 4000 species
Ferns and Allies 300 species
Conifers 9 species
Medicinal plants Not enumerated
Source: Economic Survey 2006-07, Govt. of Sikkim
The maximum summer temperature 280C and minimum winter temperature is 00C.
Sikkim has a variety of mineral resources including coal, limestone, iron ore, graphite,
pyrite etc. The temperature in the bottom of the valleys (up to 600 meters) situated at
lower elevations, particularly during summers, are similar to the monsoon type of
climate. The temperature starts falling between 600 meters to 2000metres above sea level
enjoys cool temperature climatic conditions and further up (2000 meters to 3000metres) it
is cold temperate climate. Arctic type of climate is found above 5000 meters.
Sikkim at a glance
Area 7096 sq.km.
Population(2001 census) 540493
Growth rate(1991-2001) 32.98%
Density per square km. 76
Sex ratio( female per 1000 male) 875
Literacy rate
Male
Female
69.68%
76.73%
61.46%
Capital Gangtok
No. of districts 4
Legislature Unicameral
Principal languages Nepali, Lepcha, Limbu
Assembly seats 32
Lok Sabha seat 1
Rajya Sabha seat 1
Judiciary(name and location) High court of Sikkim at Gangtok
State day May 16
Source: Economic Survey 2006-07, Govt. of Sikkim
Sikkim is ecologically a fragile region. The state has the responsibility to conserve its
rich biological diversity that includes coexistence and protection of over 5000 species of
angiosperm (one third of the total national angiosperms). Again this place has multi-
ethnic communities. So the need for ecological, cultural and social diversities is not only
essential but imperative as well.
After becoming 25th state of the Union Government of India in the year 1975 the rapid
development activities ushered in a new era of tourism in Sikkim. Increased accessibility
by roadways and air transport, rapid socio-economic development, competitive advantage
both from the side of the destination and geographical proximity to tourist generating
states contributed to the development of tourism in Sikkim. Recognizing the increased
tourist arrivals, accommodation units were set up in Gangtok and a few towns mostly by
outsiders without proper land use planning and architectural design.
Source: Sikkim Tourism Development Corporation,2009
Ever increasing tourist arrival and increasing dependence on tourism as a powerful
industry and employment generating source, restoration of peace and harmony,
hospitable people, plenty of diversified natural and cultural resources, a typical interest of
the people of Indian to discover the unknown hidden Sikkim brought about a new
dimension for the development and marketing of tourism in Sikkim.
Another important market trend for Sikkim was to interpret a positive and highly
significant correlation between the personal consumption of Indian population and
domestic tourist arrivals of Sikkim. The graph given below interprets a positive and
highly significant correlation( t0.05,9 = 1.833, i.e. tcal > ttab, i.e. H0 rejected ) between the
personal consumption of Indian population and domestic tourist arrivals of Sikkim. Here
we recognize the significant ever increasing trend of both the variables involved and it
has been assumed that a segregated part of the total personal consumption is travel and
tourism. The data of personal consumption of the population and the domestic tourist
arrivals for the last eleven years i.e. from 1998 to 2008 have been considered.
Source: www.wttc.org and Sikkim Tourism Development Corporation
This increasing trends of tourism industry draw the attention of many entrepreneurs and
investors in and outside Sikkim. But the development features and consequent
entrepreneurial efforts largely vary. An overall analysis of tourism environment and its
development is expressed through TOWS ( Threats, Opportunities, Weaknesses and
Strengths).
This analysis is based on the development initiatives of the State Government, NGOs,
and other concerned authorities, and recent field visit. Following points were considered
for TOWS (Threat, Opportunities, Weaknesses, and Strength) analysis.
Internal factors
Internal strengths (S) Internal weakness (W)
* Improved public image
* Improved land use planning
* Renovation of product portfolio
* Higher staff commitment & better labour relations
* Creativity & openness to face new challenges
* Better relations with public authorities, Central Government,
local community & green activities groups
* Assured access to foreign markets
* Easier compliance with environmental standards
* Ever increasing growth of tourism
* Peaceful, calm & tourist friendly state, compared to all North
Eastern states in India
* Diversified & multi ethnic communities
* Rich culture & heritage of the community
* Available labor market
* Possibility of getting domestic & international tourists
* Available land area practicing marginal agriculture
* Plenty of natural resources
* Proactive environmental legislations
* Lack of consciousness of hygiene &
health related issues
* Population is increasing
* Centralized development of
infrastructure &superstructure
* No international airports in or around
states
* Lack of local entrepreneurship
* Unorganized & uneducated local
people
* Lack of basic facilities & infrastructure
for tourism development
* Lack of effective administration with
sufficient authority
* Tending to seasonal economy
* Lack of comparability with
complementary development of tourism
in other states
* Lack of long vision to articulate &
integrate & to enhance benefits for all
* Lack of money to assist the
organization of events
* Lack of acceptance of the necessity for
environmental controls by the destination
developers, community etc.
* Lack of mechanism for linking
interested parties. Community
participation is not as high as it should or
would be
* Lack of mechanism for linking
interested parties. Community
participation is not as high as it should or
would be
* Lack of accommodation and adequate
facilities
* Lack of collection of important
statistical data
* Almost the same attraction features
throughout the states
* Evidence of environmental degradation
in many tourist centers
* Cost of advertising, maintenance
( Research and Development)
External factors
External opportunities
(O)
SO Strategy: (Maxi –
Maxi)
WO Strategy:(Mini – Maxi)
Contd.
- Cost savings due to
* Reduced consumption of
energy and other resources
* Recycling, selling of by-
products and wastes, resulting
in decreased waste disposal
costs.
* Reduced environmental
* Employment generation
increases
* Small scale industries
develop specifically wine
industry, traditional
medicines, spices etc.
* Standard of living of the
* Condition of health and hygiene and
the quality of life of the local people can
be improved by increased income and
employment from tourism
* Possibility of employment generation
with local entrepreneurship
* State population can be more educated
charges, pollution penalties,
and consumption following
legal damage suits
- Revenue increases due to
* Increased marginal
contribution of Green
Products which sell at higher
prices
* Wine industry, spices,
traditional medicines etc.
* Increased market share due
to product innovation and
decreased number of
competitors.
* Completely new products
that open up markets
* Increased demand for a
traditional product, which
contributes to pollution
abatement
* Availability of funds from
central government and other
international organizations
* Scope for tourism round the
year with distinct attraction
features
* Increased number of tourists
* Alternative employment
opportunity
* Care for the environment,
socio-cultural needs and
governance build strength
* Educational opportunities:
children and youth activities
* Recreational opportunities:
local people will increase
* Balanced regional
development and
minimization of regional
imbalances
* Conservation and protection
of the environment
* Per capita income will
increase
* Development of local
cuisine, hospitality,
handicrafts, handlooms etc.
* Development of non
conventional energy resources
and organized with increasing
educational measures
* Fund generation is possible with the
help of different schemes and projects of
various national and international
organizations
* Seasonality in tourism can be reduced
with the development & promotion of
alternative attractions during the lean
season
retirees
* Residential care services:
the aged
* Local town services: rural
residents
* Health services: community
* Heritage and natural
environment: tourism
operators
* Importance of local fairs and
festivals will increase
* Development of inaccessible
and backward areas
External threats (T) ST Strategy: (Maxi – Mini) WT Strategy: (Mini –
Mini)
* Tourism development may
cause environmental
degradation
* Encroachment over
agricultural/industrial land
areas
* No sufficient
accommodation units in many
areas of tourism importance,
* Commercialization of
culture and deterioration of
social values
* Restriction of freedom of the
residents to enjoy their
resources and other basic
* Application of environmental
legislation & eco tourism policy to
reduce the environmental damage
* Land use planning prevents the
encroachment over agricultural &
other land areas
* enforcement of strong law & order
in coordination with other authorities
to check crime rates that may arise due
to the development of tourism
* Awareness of rich culture & heritage
of the community along with the
values of the society can prevent the
commercialization of culture & its
* Minimization of weakness &
threats are possible with the
suitable joint venture, local
people participation in
developing supplementary
accommodation
* Adding values to the existing
products by alternative cultural
& heritage related attractions,
optional tours, new trek routes,
infrastructure for adventure
tourism
* Conducting environmental
awareness camps, encouraging
participation & consultation in
amenities
* Changes in occupational
distribution and lack of
occupational mobility
* Increase in crime rates
* Existence of substitute
tourism products in
neighboring states may reduce
tourist arrivals
deterioration
* Scarcity of accommodation units
particularly during the peak season can
be reduced by development of
supplementary accommodation units,
e.g. the local village / people/eco clubs
offering rental accommodation.
major decisions related to the
environmental protection &
maintenance of quality
Though the TOWS matrix explains the development and promotional issues of tourism
businesses in Sikkim yet the conditions at regional level is not so. There are so many
regional differences and disparities though the destination is primarily known as a leisure
tourism destination. The conditions of tourism development opportunity were measured
with the help of industry impact variables at three different places viz. the capital city
Gangtok, heritage tourism domination Namchi and a comparatively new destination
Lachung in North Sikkim. Six questions were asked to one hundred respondents to assert
their opinion in three different places.
The questions were related to the
(i) degree of importance between hosts and guests,
(ii) importance of outside investment for site development,
(iii) need for tourism legislation,
(iv) appropriate types and forms of tourists,
(v) the initiatives taken by the government to use tourism as a community
development tool and
(vi) sustainability of attraction features.
All these questions have direct implications and are oriented to destination entrepreneurship
development and other related issues.
These questions were replied with the help of the five point scale varying from strong
disagreement to strong agreement. Surprisingly, an interesting result came into light
when their degree of importance were ranked with Kruskal Wallis rand test.
The results of three places are given here under.Namchi Mangan Gangtok
Test Statistics Test Statistics Test Statistics
VAR00001 VAR00001 VAR00001
Chi Square 26.308 18.253 47.364
Df 33 22 41
Asymp.Sig .789 .691 .229
a.Kruskal Wallis Test
b. Grouping Variable: VAR00002
a.Kruskal Wallis Test
b. Grouping Variable: VAR00002
a.Kruskal Wallis Test
b. Grouping Variable: VAR00002
The implications of all six industry/ impact variables were different as the degree of
importance put by respondents in all three destinations largely varied considering the
significance levels of 0.789, 0.691 and 0.229 for Namchi, Mangan and Gangtok
respectively. The variation among these three places are due to variation of putting rank
for each question.
All six questions were ranked with different importance and the difference were largely
destination specific as all the destinations had distinctive economic, socio-cultural and
ecological problems and prospects.
ConclusionThe potentiality of entrepreneurship development can be better exploited by promoting
tourism as a mean of rural entrepreneurship development. This is how rural
entrepreneurial mobility can be ensured to tap opportunities in village areas and thereby
to set up economic and social justice to poor and vulnerable sections of the State.
An initiative to be taken to categorize direct and indirect job opportunities provided by
the tourism sector in the State and thereby to arrange loans, grants and such other
investment incentives.
An analysis for Skills required in different types of jobs provided by the tourism industry
needs to be assessed to ensure or suggest training program for different sections in the
society. Proactive and sustainable tourism development initiatives will automatically
ensure economic and social justice for which local authorities, NGOs, eco-clubs must
come forward and work with the proper coordination and control.
Changes in marketing policy with an entrepreneurial perspective, its linkage with
economic, socio-cultural and environmental sustainability will ensure sustainable
entrepreneurship also in the state.
The state tourism corporation should have a special cell to encourage and appreciate
tourism development projects primarily with two types of job opportunities e.g.
institutionalized and non-institutionalized. Two different types of investment incentives
and fiscal control measures to be adopted for both the sectors.
There is an urgent need to identify and assess all important informal and subsidiary
sectors of tourism industry with their respective economic and social values. The concept
of micro credit and economic inclusion needs to be reassessed with an importance to
tourism.
Last but not the least, the development of tourism and entrepreneurial opportunities needs
to be region specific to adopt more effective and result-oriented tourism as there are
disparities in resource allocation, fund allotment, demographic and socio-cultural profile
of local community as a whole. So, tourism entrepreneurship awareness program, access
to all required facilities to set up tourism business by local entrepreneurs, community
development program through alternative tourism and adventure tourism and an
improved destination management with sustainable development philosophy will bring in
more sustainable entrepreneurial opportunities among the local community through
sustainable development.
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