Professional Documents
Culture Documents
TOURISM
(2008-2010)
1
Declaration
I also further declare that this project work has neither been reproduced
nor submitted else where to any other university for any other purpose,
to the best of my knowledge and belief.
Place:
Date:
2
INDEX
Particulars Page No
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Chapter-1
DEMAND DETAILS
4
Product Details:
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that their name is widely recognized & synonymous with quality, value etc.
Product positioning helps in identifying the images & perceptions of the
tourist products as well as tourists organizations, which match the needs of
the tourist customers.
Technology Details
The tourism industry is broadly people centric. The work starting from
destination enquiry, selection, booking, ticketing, etc. everything has a
human touch to it. Even now people providing such service sit with their
customer to make them decide on their spots. Now, with the advent of
modern technologies some jobs such as ticketing & hotel reservations are
done through internet and the industry is progressing towards medium
contact.
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many remote and inaccessible areas of the country get connected to the rest
of the world. This connectivity has made these places visible to the world.
Investments
Investments by the state:
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amount or Rs 7.5 lakh for the projects coming up in the STZs. For setting up
projects in other regions, the mini-tourism units are entitled toan investment
subsidy of 15 per cent of the invested amount or Rs. five lakh. Similarly, the small
tourism units pumping in Rs 50 lakh-Rs one crorecan enjoy an investment
subsidy up to 10 per cent of the invested amount or Rs 7.5 lakh. In case of
projects being developed in STZs, they can avail an investment subsidy of 15 per
cent or Rs 10 lakh.The medium as well as large tourism units are also eligible
for interest subsidy on term loans. The medium tourism units who invest in the
range of Rs 1-10 crore are eligible for an interest subsidy of five per cent on term
loans while the large tourism units with investments from Rs 10-50 crore can get
an interest subsidy on term loans. In case of mega tourism projects with capital
investment exceeding Rs 50 crore, the state government may consider a special
package, excluding the tax based incentives, on a case to case basis. The interest
subsidy would be paid only for the first five years from the commencement of
commercial operations of the project.
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for the next fiveyears. When you think about the long term capital requirement of
all states, it is estimated around 56billion US $ for the next 20 years.
A rapidly growing middle class, the advent of corporate incentive travel and the
multinational companiesinto India has boosted prospects for tourism. India's easy
visa rules, public freedoms and its manyattractions as an ancient civilization
makes tourism development easier than in many other countries. Inorder to attract
more visitors, India needs to increase room supply, open further its skies to
increase aircapacity, and upgrade its airports, roads and other infrastructure to
global standards. Also tourismdevelopment needs to be pursued with a focus on
sustainability.
• The Indian hospitality industry is growing at a rate of 15% annually. The current
gap betweensupply and demand expected to widen further as the economy opens
and grows.
• The travel and hospitality industry continues to be the sector, which has largely
profited from the fastgrowing economy of India. This has largely been due to the
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3.9 m tourist arrivals in FY06 (15%growth) over the previous period. The
compounded growth in tourist inflow over the last ten years(FY89-FY09) has
been 8.2%, while in the last five years, growth stands at 9.1% per annum.
• This increase in the number of tourist arrivals in the country lifted the country’s
standing in the worldof tourist destinations. The country is ranked fourth among
the world’s must see countries. Thesector continues to face certain problems.
• As per the 2004 findings, the total number of approved rooms by the
Government of India stands ataround 99,000 (estimated). These rooms are further
classified into various segments out of which,five star and five star deluxe hotels
account for around 27% of the total capacity, three star hotels(22%), four star
(8%), two star (9%), one star and Heritage hotels (2% each) and the rest is
dividedbetween unclassified and unapproved hotels.
• A rapidly growing middle class, the advent of corporate incentive travel and the
multinationalcompanies into India has boosted prospects for tourism. India's easy
visa rules, public freedoms andits many attractions as an ancient civilization
makes tourism development easier than in many othercountries.
• The five star hotel segments have grown the fastest during the last five years at a
CAGR of 12%.Further, this segment can be divided into 3 sub-segments Luxury,
Business and Leisure. The growthin this segment indicates the genre of travelers
coming into the country. Over the last few years thecountry has witnessed a large
influx of business travelers in the country owing to relaxation of thegovernment’s
stand on Foreign Direct Investments (FDI) for most of the sectors in the country.
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• Many foreign companies have already tied up with prominent Indian companies
for setting up newhotels, motels and holiday resorts. The entry of McDonald’s,
PepsiCo’s Kentucky Fried Chicken,Domino’s and Pizza Hut has given an
international glitz to the hospitality sector.
High Taxes: One of the fundamental problems plaguing the Indian tourism sector
is a multitude of Central and State level taxes, which lead to an increased cost to
the tourists. A comparison of the Corporate Tax level in India, which affects the
hospitality sector, in comparison with our neighbours, shows India’s poor
competitive positioning.
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On the indirect taxes front also, India fairs poorly as compared to competing
destinations. The followingtable and figure showcases tourism related major
indirect taxes benchmarked across comparable locations.
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• Delay in FDI Approvals & Govt. Policies: Huge delay in Foreign Direct
Investment approvals in Hotel & Tourism sector. Due to delay in approvals and
lack of guidelines in the tourism policy, the Alfred Ford’s proposed Himalayan
Sky Village is pending since last three years. If it is approved it is one of the
highest FDI in the country in tourism sector with US$ 300 million which also
provides employment to around 3000 people.
• Highest import duty on imported liquor used in hotels: Under the WTO
Negotiations for Market Access under the Agreement of Agriculture (AoA), India
had bound its tariffs at 100% for primary products, 150% for processed products
(this is the relevant category for liquor) and 300% for edible oils, except for
certain items (comprising about 119 tariff lines), which were historically bound at
a lower level in the earlier negotiations.
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With the additional duties and sales tax levied by the State Governments the cost
of alcoholic spirits sold in hotels to bonafide guests is exorbitant. The
international precedence for liquor related levies also do not substantiate the
current level of taxes. Rationalization of the tax on liquor is therefore important to
make.
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OTHER POINTS (if any)
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Chapter-2
INDUSTRY STRUCTURE
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18
2.0 Indian Tourism Corporate Chart:
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2.1 Travel agents and tour operators
These men act as a fuel making the industry an run for money by providing the
customers a complete satisfaction and also play a major role in bridging the gap
Tourism Product
Tour Operator
Travel Agent
Customer
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Composition and Channel of Distribution (Structure)
Major industries that support tourism industry are depicted in the diagram below.
These facilities decide the status of a place in a tourist's portfolio. They on one
hand attract tourists to a particular destination and on the other act as a major
demotivating factor if they are unable to fulfill the expectations of the visitors.
The middleman may be a tour operator, who is the wholesalers, who buy tourism
products in bulk and make them available to travel agents who are retailers. The
range of tourist products which are bought by the tour operators are airline seats,
hotel accommodation, bus for local sight-seeing, etc. They may also sell directly
to customers.
AIRLINE
AIRLINE
DESTINATION
DESTINATION
HOTELS
HOTELS COMPOSIT S
S
ION
TRAVEL
TRAVEL AGENTS
AGENTS &
&
TOUR
TOUR OPERATORS
OPERATORS
Airline Industry
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Airports are the primary infrastructure facility that a country has to offer to the
international tourists. It would be surprising to note that renowned tourist
destinations like Jaipur and Goa do not have an international airport.
Foreign guests, who constitute more than 60% of the tourists destined for these
cities, currently have to travel via Mumbai, unless they are ready to charter a
flight. This makes things cumbersome and time consuming, thus discouraging
many time conscious tourists from visiting these places. Similar is the case of
cities like Agra, Udaipur and Varanasi where foreign tourists account for
approximately 50% of the total tourists arrival.
STRENGTHS WEAKNESSES
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OPPORTUNITIES THREATS
Hotel Industry
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Hotels may be categorized depending upon factors such as:
• Locations
• Categorization according to plan
• Categorization according to number of rooms.
• Categorization by type of clientele.
• Categorization by the length of stay of guests.
• Categorization by the facilities that the hotel offers.
The Indian hotel business focuses largely on foreign tourists with only 30% of the
business coming from the domestic business and the leisure travels. The tourist
arrivals in India are seasonal in nature, with the best season being from September
to December followed by a steep fall till May. The period June to September
gains momentum once the monsoons are over. The slack season is generally used
for renovation work and the period is characterized by discounts to attract clients.
Hotels form one of the most important support service that affect the arrival of
tourist to a country. The major players in the industry are Indian Hotels Company
Ltd (IHCL) operating under the Taj brand, the Oberoi, Oriental Hotels, Hotel
Leela Venture and the Ashoka chain of hotels, owned and operated by the Indian
Tourism Development Corporation (ITDC).
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SWOT ANALYSIS – HOTEL INDUSTRY
STRENGTHS WEAKNESSES
•
The services currently offered by the
hotels in India are only limited value
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added services.
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OPPORTUNITIES THREATS
Destinations
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These include the several religious, historical and trade places in India like Delhi,
which are not just tourist hot spots but also business Centre’s for tourism industry.
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Kerala Charminar-Hyderabad
• Government:
The government is the most important player in this industry and all the other
players have to follow the lead taken by it. However, the actions of the
government have not been proactive. Rather it has been late in rising to the
opportunity that the tourism industry offers. There are not enough incentives
being offered to the other players like Hotels and the travel agencies. The
government should be taking the lead and attracting the industry to places that
have vast tourist potential but have still not fully developed. There are various
restrictions in areas like Sikkim and the Northeast that should be relaxed so that
more people can visit those places.
• Poor
Infrastructure:
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infrastructure is properly developed, a large majority of tourists will give the
country a skip.
• Apprehensions
about the law and order situations:
The lack of security that is faced by a lot of tourist is also a major cause for
concern. There have been many instances where tourist have been physically
assaulted, robbed and sexually harassed. Any such incident reflects badly on the
country and creates a negative image.
• Misconception
about the Country:
The image of the country has taken a long time for the change from the old image
of the land of snake charmers. There are many places where the image of India is
one of poverty, superstition, and diseases. One of the main reasons why tourist do
not visit the country has been the fear of been infected by some exotic disease.
The case of Plague in Surat in 1994 led to a decrease of 36% in arrival of foreign
tourists in India All these misconceptions unless addresses immediately will
create a problem for the growth of the industry.
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Chapter-3
31
Future
INDUSTRY Augmented
ENVIRONMENT Formal
Core product
3.1 FRAGMENTATION
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The Destination Product :
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Kerala known as “God’s own country”
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every need.
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Serving rooms, food, kitchen
Core The basic benefit
and staff.
TOUR-OPERATOR PRODUCT:
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Core The basic Packaged tour which includes travel guidance,
product benefit planning, pricing, accommodation, local travel and
sight seeing
Augmented In addition to Payment option – ‘travel now, pay later’ (on the
the expected basis of bank affiliations), tourism on credit card
benefit (Raj Travels); premium offers – special package
deals; guarantees – in case of cancellation of flights,
tour failures, bad weather, etc. ; loyalty schemes;
weather reports – of different countries, with month
wise – maximum, minimum temperature, humidity
and rain; recommended tours – for every age group
and interests; take away gifts (souvenirs) - at the end
of every tour
Future Beyond the Make your own package (customized packages); free
usual, photo sessions; video shooting – of the entire trip by
serendipity the tour operators; incentives – with every tour
(pleasant package, one more, at half the price.
surprise)
Since India is concentrating on the international tourists, the large increase in the
spending power in most developed countries has left a large amount of idle cash
in their hands. This has led to the tourism boom the world over and India has been
no exception.
The tourism industry has been growing steadily. Below are the charts depicting
the growth in of the tourism industry various dimensions - Foreign tourist arrivals,
Foreign exchange earnings, etc.
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39
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Chapter-4
INDUSTRY POLICIES
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4.1 Policies
High capital expenditure acts as an entry barrier in the industry with the
availability of prime land at economically viable rates being a major constraint.
The gestation period is long and break even normally takes five to eight years to
happen. Due to this the established players like Indian Hotels, E.I.H, etc. have an
advantage over foreign majors as they already have well establishments at prime
locations.
India was late to wake up to the potential of tourism as an industry that is not just
an earner of previous foreign exchange but also one that could generate a lot of
employment through horizontal and vertical linkages. The importance and
significance of tourism could be understood from the observation of UNESCO,
which says, "Tourism is a traditional instrument, which enables culture to the
rehabilitated and made know to the rest of the world". It is said it's a smokeless
industry and has become second to the petroleum industry in world trade.
This great importance was formally acknowledged when the XXIU.N General
assembly designated 1967 as international tourist year with a unanimous
resolution recognizing that "tourism is a basic and most desirable activity
deserving the praise and encouragement of all peoples of government".
When traveling away from home, tourist comes in contact with the places they
visit with their inhabitants and social exchange takes place. Their presence and
social background affect the social structure and mode of life at the destination.
Tourists are in turn affected by the experience and and often carry back home
with them, new habits and new outlook on life.
When people travel to a country other than which they normally live in is known
as international tourism, the distinction between domestic and international
tourism is now diminishing. The reasons being:
Reliable data on the growth of domestic tourists traffic are not available as not
extensive survey has been conducted on a national level by any agency,
government or otherwise not given the numerous festivals celebrated throughout
out the year, the innumerable tourist's centers in the country, the geographical
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expands and the resource constraints, estimates of documents tourists' traffic
through an executive survey is considered impossible.
Domestic tourism if considered separate from the travel for religious and
commercial purpose. It is a post-independence phenomenon. Industrial growth,
improvement in the standard of living, rise in disposable income and most
importantly the improvement of tourist infrastructure search as hotels, air, train
and road transport has contributed to the impressive growth in tourist traffic.
The definition of a domestic tourist is a person who travels within the country to a
place of residence and stays at hotels or other accommodations establishments run
on commercial basis or in dharmashalas, sarais, chaultries etc. for duration of not
less than 24 hours.
The factors that govern the magnitude of domestic tourist traffic are the religious
and cultural importance of a place. The extent of manufacturing, business and
trading activity, the climatic conditions, the infrastructure facilities available and
the geographical location etc. the current rough estimate of domestic tourism in
India is ten million a year.
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market which helped in further boosting up their bread and butter industry by
making it more attractive and pleasurable for those who matter. India can
replicate the model after making obvious adaptations.
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trends’ in tourism for each of their target market and on that basis conduct a
thorough SWOT analysis of each region and finally, set specific priorities for
each region as to what to achieve. This structure creates “target market
specialists” who understand the tourists from their target markets and thus are
better equipped to satisfy them. The Marketing Department is engaged in top-
level guidance, planning and research and it is
supported by a sales department that implements marketing development
activities and leads the media and promotion activities.
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improve their performance in ecotourism through lucrative incentives, like –
extending duration of their work permits, listing them on official website and
publications (Australian Ecotourism Directory etc), showcasing them at various
important tourism related events (exhibitions etc).
• To inform
• To remind
• To persuade
• Advertising and sales promotion- these activities are very effective when
supplemented by publicity and personal selling. Advertising messages
range from subtly attractive visual messages and symbols designed to
appeal and stimulate travel desires and needs, to simple sales
announcements drawing attention to specific product offers.
• Most travel and tourism advertising is aimed at consumer or the travel trade
aiming specifically on a tourist product but large organizations like airlines
and hotel groups also buy media space to communicate the name and image
of the organization as a whole.
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• Public relations and publicity- This include regular articles and photographs
of the tour attraction, use of TV, radio holiday program and travel
journalists to promote editorial comments.
• Word of mouth- research shows that about 80% of the tourists visited
different places on the persuasion of their friends and relatives and also
their own judgement. This indicates word-of-mouth promotion is an
important tool in tourism marketing.
• Incentives - Incentives to agents, customers and sales force are also given
to induce immediate response like-price cuts, discount vouchers to use
certain facilities in the location, free gifts, price draws etc.
• Brochures- these are provided by the tour operators to stimulate customers
and motivate them to buy. They are used to demonstrate in pictures and
words the image and positioning of the product and organizations.
Hotel owners and airlines need to promote their services to tour operators who are
in effect wholesalers of travel services and products as well as promoting their
service to end users and independent travellers. Similarly tour operators will want
to ensure that travel agents sell their services in a positive manner and will
therefore want to advertise to the agents the benefits of selling their tours whilst
advertising a totally different set of benefits to the end user.
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The Department of Tourism won the PATA GOLD AWARD (2003) for BEST
MARKETING in print media category.
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Chapter-5
INDUSTRY
ATTRACTIVENESS
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5.1 Potential
India is a multi-destination country with a variety of tourist attractions and
facilities. It is the second largest net foreign exchange earner by way of
invisible exports. Tourism creates more jobs than any other sector for every
rupee invested. It has a major role in promoting large-scale employment
opportunities. Keeping this in view, it has been granted the status of an
industry. Several incentives have been made available by the Central and
State governments to this sector. These efforts have largely promoted tourist
arrivals in the country during the first quarter of this year. Foreign exchange
earnings during this year have registered a significance increase of 9.3 per
cent so far. The total earnings up to March 2001 were Rs. 4,430.79 cr. In
dollar terms it was US$ 977.18 million.
Nearly four million foreign tourists visited India in 2008, a 15% increase
over the previous year. Prospects look even better this year, with tourist
arrivals already up nearly 20%.
The visitors are pouring in from all over the world: Europe, Africa,
Southeast Asia and Australia. At the same time, the number of Indians
traveling abroad last year increased by 30%, to 4.5 million.
The boom has come even as global tourism has dropped, due to the
September 11 terrorist attacks in the United States, the outbreak of Severe
Acute Respiratory Syndrome in East Asia, and the Iraq war.
Tourism professionals cite several reasons for the buoyancy in the Indian
industry. The recent surge in the Indian economy has raised middle class
incomes, prompting more people to spend money on vacations abroad or at
home.
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5.3 History
ITDC came into existence in October 1966 and has been the prime mover in the
progressive development, promotion and expansion of tourism in the country.
Broadly, the main objectives of the Corporation are:
To construct, take over and manage existing hotels and market hotels, Beach
Resorts, Travellers’ Lodges/Restaurants; To provide transport, entertainment,
shopping and conventional services; To produce, distribute, tourist publicity
material; To render consultancy-cum-managerial services in India and abroad; To
carry on the business as Full-Fledged Money
Changers (FFMC), restricted money changers
etc; and To provide innovating, dependable and
value for money solutions to the needs of
tourism development and engineering industry
including providing consultancy and project
implementation.The authorised capital of the
Corporation is Rs 75 crores and the paid up capital as on 31.3.2005 was Rs 67.52
crores. 89.9748% of the paid up equity capital of the Corporation is held in the
name of President of India.
The Corporation is running hotels, restaurants at various places for tourists,
besides providing transport facilities. In addition, the Corporation is engaged in
production, distribution and sale of tourist publicity literature and providing
entertainment and duty free shopping facilities to the tourists. The Corporation
has diversified into new avenues/innovative services like Full-Fledged Money
Changer (FFMC) services, engineering related consultancy services etc. The
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Ashok Institute of Hospitality & Tourism Management of the Corporation imparts
training and education in the field of tourism and hospitality.
Presently, ITDC has a network of eight Ashok Group of Hotels, six Joint Venture
Hotels, 2 Restaurants (including one Airport Restaurant), 12 Transport Units, one
Tourist Service Station, 37 Duty Free Shops at International as well as Domestic
Customs Airports, one Tax Free outlet and two Sound & Light Shows. Besides,
ITDC is also managing a hotel at Bharatpur and a restaurant at Kosi on behalf of
the Department of Tourism. In addition, it is also managing catering services at
Western Court, Vigyan Bhawan, Hyderabad House and National Media Press
Centre at Shastri Bhawan, New Delhi.
Delhi Declaration:
To promote tourism interests, the World Tourism Organization (WTO) organised,
a South Asian Ministerial Summit on Joint Promotion and Marketing of Tourism’
with support from the South Asia Travel and Tourism Exchange (SATTE), on
April 23,2001 in New Delhi. The Ministerial Summit was presided over by the
Minister for Culture and Tourism, ShriAnanth Kumar. It was held within the
framework of SATTE 2001. The major conclave is yet another manifestation of
the solidarity among the South Asian nations to further promote the region on a
collective basis in the primary source markets. The Summit has also marked the
beginning of a new and lasting relationship between WTO’s Member States in
South Asia and SATTE which has emerged as the premier forum for marketing
South Asian Tourism.
The South Asian Tourism Ministers’ Meet has suggested a joint marketing plan to
promote the region as one tourist destination and to celebrate 2003 as the visit
South Asia year. The three-day meeting was attended by Pakistan, Bangladesh,
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Sri Lanka, Nepal, Bhutan and Iran, besides India. The Ministers participating in
the meeting were of the opinion that despite an overall growth of 9 per cent last
year in the region, the total tourist arrival was less than 1 per cent of the global
marketing share. Inadequate projection and negative perception of South Asia
held by some of the travel trade and prospective tourists in the main tourist
generating markets was one of the factors to be addressed urgently.
The Minister of Tourism, ShriAnanth Kumar, said that a time-bound action plan
would be taken up very soon for marketing the South Asia region as an emerging
destination. WTO’s Expertise would be sought to chalk out the financing, review
and monitoring mechanisms. A coordinating meeting would also be set up as the
organizational link between the Governments and the industry in the region and to
draw a strong public-private partnership program for promotion of tourism, he
said.
After the meeting, the participating countries signed The Delhi Declaration which
suggests their joint commitment to promote the region as one destination. The
Declaration suggested a common logo and slogan, joint participation of South
Asia Tourist village at prominent travel trade fairs the world over, organizations
of South Asia Travel Mart in rotation in member countries, joint advertising and
hosting of multi-country familiarization trips for travel agents, tour operators and
media persons. It also suggested creation of a dedicated regional tourism web site
and development of South Asia Travel Agents’ Accreditation Scheme – based on
an agreed curriculum and testing procedure.
The meeting was attended by the Ministers of Sri Lanka, Nepal, Maldives, Iran
and representatives of Pakistan and Bangladesh. The Secretary General of World
Tourism Organization, President, European Commission, Chairman of Ceylon
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Tourist Board and industry leaders, representatives of airlines, hotels and travel
trade also participated in the meeting.
During the deliberations India and Nepal agreed to set up a working group to
identify areas of cooperation in tourism which may include combined tourism
circuits, cooperation in infrastructure development and joint marketing of tourism
products. Both the countries will also sign a tourism agreement to provide for a
task force for implementation and review progress once in six months. During the
meeting, both the sides decided to form Buddha Circuit including the birth place
of Gautam Buddha in Nepal and the places in Indiawhere he preached. A
Religious Circuit including PashupatiNath and Muktinath in Nepal and Kashi in
India also to be formed. An Adventure Circuit was also proposed in view of the
keen interest in mountains and rivers of both the countries the world over to be
jointly marketed by India and Nepal.
To spread greater awareness about the country’s rich heritage and to encourage
conservation and restoration efforts, South Asia Travel and Tourism Exchange
(SATTE) and Indian National Trust for Art and Cultural heritage (INTACH) have
joined hands to institute awards for excellence in the field. Both SATTE and
INTACH are committed to conservation of India’s natural and cultural heritage,
long-term sustainable tourism and preservation of the living culture of local
communities at heritage sites.
To offer support and promote responsible tourism that is sensitive to the heritage
of the country, SATTE and INTACH have instituted an award in each of the three
categories - a conservation project at a heritage site of excellence in concept and
execution; an innovative heritage tourism project that provides a sound
interpretation of culture and offers the visitors a unique opportunity to understand
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the many layers of India’s heritage and a tourism project that contributes to
protection and enhancement of its natural and cultural environment.
As in other economic sectors, tourism follows a "product life cycle", with a curve
similar to that of the above graph. In this process several stages can be identified:
STAGE 1: DISCOVERY
During the early "discovery stage" of the cycle a small number of unobtrusive
visitors arrive seeking "unspoiled" destinations. These early "explorer" tourists
generally speak the language and identify with the local culture. The social impact
in this stage is generally small and resident attitudes are fairly positive towards
tourism.
STAGE 2: LAUNCH
During this stage the number of incoming tourists increases. The host community
responds to the increasing numbers of tourist by providing facilities. Businesses
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remain family based and the visitor-resident relationship is still harmonious. Later
in this stage, visitor numbers increase and the community becomes a tourist
resort. Outside interests become involved developing businesses and tourist
facilities. This is typically the stage during which TNC (Trans-National
Corporations) foreign investment enters the cycle. Migrant workers, attracted by
the prospect of tourist-related jobs, may enter the community and reduce resident
contact with visitors. The tourist-relationship is converted into one of business as
the novelty of new visitor arrivals declines. The more culturally sensitive
"explorers" move on to new "unspoiled" areas and are replaced by the mass
market.
STAGE 3: STAGNATION
The stage in which saturation is reached. The quality of tourist services falls,
demand levels off, and the environmental degradation of the tourist destination
begins to be obvious and worrying. The tourist destination at this stage is said to
have reached 'maturity'.
STAGE 4: DECLINE
which represents the current state of mature tourist destinations on the Costa
Brava in Spain. Falling profits lead to foreign-owned businesses withdrawing and
the community is left to "pick up the pieces".
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Chapter - 6
INDUSTRY
PERFORMANCE
59
6.1 Profitability:
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6.2 Technological Advancement:
E–Commerce
All those web sites and portals launched by government as well as private
organizations would offer a wide range of tourism products and services like
airlines, hotels, restaurants, camp-sites, tours, activity centers, concerts, festivities,
shopping and many more with choicest of assortments of services.
Plan the tour online through agents’ web sites. Reservation or shopping of
facilities for train, airlines, cruise, hotels, resorts, motels, rental cars and
adventures can be done on line. Still leaving a part of simple web based portal,
which just provides static information & beautiful pictures with less updated
knowledge and data transfer, tourism industry is expecting more practical and
satisfied chain solutions from Information Technology.
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Advance technologies in Tourism Industry
Rather than .Com & e-commerce, travel and tourism industry is looking for
solution like E-Business or U-Business (Universal Business) solutions.
CRM based system enables service provider to provide knowledge, value and
efficient service to its clients. CRM enables service provider to build up a life
time relationship by providing on time solutions. Especially tourism industry
needs excellent CRM solutions to assist visitors or clients before flying on tour,
during tour and always after tour services. CRM solutions can be provided to a
visitor through web, email, call centre, kiosks and travelling information offices
anytime & anywhere.
What an experience! We are standing at "TajMahal" and we are able to read
history details with all graphics and animated roles on multimedia kiosks. Even
we can check our further travel registration request process through kiosks. So
much beyond our imagination.
Value chain integration
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Knowledge Management Systems
In advanced countries, e – tourism concept was applied and put in practice in last
decade. However e – tourism is still in growing phase with advance technology’s
application. But for developing countries and underdeveloped countries it is under
utilization phase.
With application of e-tourism, the travellers would be able to make online
reservation, bookings and receive immediate confirmation; this would remove a
lot of obstacles that are faced by a tourist.
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Chapter - 7
CONCLUSIONS
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Conclusion:
Tourism Industry is a very dynamic industry and so are its challenges and
strategies, therefore a learning approach towards ‘best-practices’ would yield
better results in enhancing competitiveness of this industry. Also, the need for
sound perspective in planning and “private-public-community” participation is
imperative for this purpose. This paper was an attempt to illuminate the area
through simple yet effective examples and cases collected from around the world,
based on their contribution in making their respective Tourism Industry more
competitive. It leaves a background for further research, as assessing the
implications of using the above mentioned ‘best-practices’ in Indian Tourism
Industry can be another rewarding study.
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• Pricing,
• Market segmentation,
• Promotion and distribution
• Cross agency cooperation
• Site Management
Contemporary and detailed planning, which professionally addresses specific
issues, has added to the competitiveness of their tourism industry and can very
well do the same for Indian Tourism Industry.
Make the business operators realize that - ‘Tourism Survives Till The
Destination Does’:
Tourism business operators realize that for their business, they will ALWAYS
need a healthy Great Barrier Reef. Increasing realization of this interdependence
has led to the development of a strong active partnership
Significantly improving the destination management as well as competitiveness of
Tourism business outcomes at the Marine Park.
Handover the Funds in Right Hands: Case of Vermont Tourism (USA) has
created “Fund for Tourism Marketing Initiatives (FTMI)” program. Under this, it
awards financial grants (on merit basis) to local organizations for building /
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expanding events, marketing programs, advertising campaigns and public
relations programs that hold significant potential for measurable increase in
travellers to Vermont.
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