Introduction:

India is one of the seven primitive civilizations of the world. Archaeological surveys and studies suggest the existence of planned cities of Harappa and Mohenjo-Daro in 2600 B.C (History of India. Retrieved 22 October, 2009). This depicts the ancient civilization and its roots which later on came to be known as the Vedas. Athiti Devo Bhava which means that guest is god and should be treated like a deity is an old phrase which carries importance in day to day life of Indian people. Situated in the southern Asia and home to a rich and diverse nature and culture, India covers an area of 1,269,219 sq miles (Tourism in India. Retrieved 22 October, 2009). Tourism of India is projected to receive 20 million tourists by 2020 by the world tourism organisation statistics (Tourism 2020 Vision., 2008). But, even though with the abilities to be one of the leading destinations of the world India is not in the competition of the rest of the famous and preferred destinations. The purpose of this report is to view the transition of the tourism sector of India from the ancient periods till today and the future prospects of the Indian tourism industry. The report also analyses the information reported by the government organisations, world tourism organisation to build up the trends and reasons for the tourism statistics. The report also analyses the SWOT analysis mentioned in the theories and information books. In order to meet the purpose of the report, literature from different sources were analysed and reported. Certain information from the books based upon the theories and practices of the tourism aspects as well as academic literature has been reviewed for the purpose of this report. To assess the tourism scenario of India, the report will put forth the transition of Indian tourism from past to the future prospects and also analyse the SWOT of the Indian tourism industry. The report in its initial stages gives basic information about India and the tourism of India. The history of tourism since ancient times has been then reported followed by the tourism scenario after 1996. The SWOT analysis has been then done, taking the previous studies as a basis for the same. The report ends with certain recommendations which may be helpful in the development of the tourism sector of India.

Background of India:
India, officially the Republic of India is the seventh largest country and the second most populous country in the world. According to the recent figures Indian economy stands twelfth largest in the world on the basis of exchange rates and fourth largest on the basis of purchasing price parity. India gained independence from the British

Raj on 15th August 1947 and since then had a policy of protectionism. It was only after the economic and political reforms in 1991 that helped it to be one of the fastest growing economies of the world (Tourism in India. Retrieved 22 October, 2009). The geographical Diaspora of India provides tourists a blend of all the interests that would be fascinating to the tourist. It has the Himalayas in the north, large coastline in the south, plains in the north east and plateaus in the western part of India. Along with this it provides the tourist a glimpse of the Indian culture through its monuments, architecture, music, dance, festivals and many more. World heritage sites such as Taj Mahal, Ajanta and Ellora caves, and Dravidian temples in the South are some of the famous architectures of the world. India also offers the tourist a wide range of other fascinating places such as the jungles, beaches, big cities with lots of crowd and also the rural India where 60% of the India resided. Pandit Jawaharlal Nehru, the first Prime Minister of Independent India in his book The Discovery of India quotes that There was something living and dynamic about its heritage which showed itself in ways of living and a philosophical attitude to life and its problems. Ancient India like Ancient China, was a world in itself, a culture, and a civilization which gave shape to all the things (Nehru,J. , 1946, p.47). The tourism sector of India provides a rich cultural heritage which has been nurtured and followed through generations along with beautiful scenery and wildlife. In spite of so many attractions the tourism industry in India lacks behind the tourism industry of much smaller south East Asian countries. This is because of the problems and situations which India faced in terms of the development of the tourism sector. Tourism which is the largest service industry in India contributes 6.23% to the national GDP and 8.78% of the total employment (Roy, K. C., & Tisdell, C. A., 1998). The Indian tourism sector gained a business of around US$ 100 billion in 2008 and also a rise in the number of tourist arrivals in country. Even though rising, Indian tourism contributes only 1.47% towards global tourism statistics.

History of Tourism in India:

History of tourism in India dates back to the period when India was ruled by different kingdoms and empires. Many travellers from China have praised the facilities and warm hospitality provided by the kings and emperors of that time. Historic trade routes such as the silk route, spice route and the Indo-Roman trade route which bought the western countries and Arab traders for trade in India proved crucial for the then kingdoms and emperors of India (Hall, C. M., & Page, S., 2000). The factors responsible for the fascination of India as tourist destination were the same that pulled western and Arab travellers to India for trade and tourism. Indian soil has been a matter of interest for many people during that time and resulted in mass migration of different races of people to India. Aryans, Greeks, Arabs, Dutch, Portuguese, French and British are some of the races of people who build up the culture and traditions of India. Tourism during British Raj was only for the official

purposes and not as leisure. But, the sudden mass tourism which started as an aftermath of the Second World War was unforeseen and thus has had adverse effects on the country (Hall, C. M., & Page, S., 2000). After India gained independence, tourism was not given a crucial and important place as it should have. But, the conditions during that period did not allow tourism to be of primary importance. Tourism ministry was just a small part of the Ministry of Transport. It was not until the seventh five year plan in 1991 that tourism was given its due importance. The Indian government during that period realized the importance and advantages of tourism industry. The main and essential goals of the seventh five year plan for tourism were as follows (Tourism in India. Retrieved 22 October, 2009):

To generate employment opportunities for the people in rural areas. Develop domestic tourism keeping in mind the budget tourist factor. Encourage conservation of the national heritage. Develop international tourism and increase the share of Indian tourism in the global scenario.

1996-2007: The government of India in 1997 launched the Incredible India campaign in order to promote the Tourism of India with a new and broadened outlook. Also, in 2002 government of India launched a new tourism policy which consisted of seven main mantras (Raghuraman, K., 1998): 1. Swagat- Welcome 2. Suchana- Information 3. Suvidha- Facilities 4. Suraksha- Security 5. Sahyog- Cooperation 6. Sanrachana- Infrastructure 7. Safai- Cleanliness. The ministry of tourism and finance of India also announced certain tax reforms and exemptions for investment in the tourism sector. Certain salient features of these reforms can be accounted as follows (Tourism in India. Retrieved 22 October, 2009): 1. The policy includes tourism in the concurrent list of the Constitution and thus enables participation of the state and central government in the development of the tourism sector. 2. The government also declared certain concession rates on customs duty of 25% on the goods that might be required for initial opening of the hotel.

3. 50% of the profits gained by the hotels, travel agents and tour operators in foreign exchange have been exempted from the income tax. 4. A technological and serious approach has been adopted so as to facilitate speedy and modern implementation of tourism projects, development of rural destinations and tourism circuits. 5. National Tourism Advisory Council has been set up in order to give In order to give a momentum to the development of tourism. These measures have increased the investment in the tourism sector, and also aided the development of that sector. The period from 1996-2007 was the period when the tourism of India reached at a new level in the international market. The government statistics show the following figures with respect to the foreign tourist arrivals and foreign exchange earnings of India from 1996-2007.

Adapted from Tourism Report, Ministry of Tourism, India, 2007 The above figures demonstrate the number of foreign tourist arrivals which were steady from 1996 to 2003(2million-2.3million). Tourism took a big leap from 2003 and has been on a growth since. 2007 shows the highest number of tourist arrivals in India that is 5 million. This was due to the successful marketing and policies of the government in tourism.

Adapted from Tourism Report, Ministry of Tourism, India, 2007 The above figures illustrates the foreign exchange earnings in tourism from 19962007. As illustrated these were steady earnings from 1996-2002 and a steep growth since 2003. 2007 marked the highest gross income from tourism that is US$ 11.5 billion. 2008-2009: The years 2008 and 2009 showed a certain decline in the tourism of India. This is due to the terrorist activities that took place in the nation and also due to global economic recession that hit the globe.

Adapted from Tourism Report 2008 Ministry of Tourism, India 2008

The above table depict the number of foreign tourist arrivals in the country from 1996-2009. It is significant from the above numbers that there has been a steady increase in the number of foreign tourists that visited India from 2003-2008. But from 2008 there has been a reduction in the foreign tourist arrivals in India by -9.3 %. This was due to the terrorist attack on the financial capital of India that is Mumbai which claimed lives of 170 people. Due to the attack and the ongoing threat of terrorist activities in the country, the number of foreign tourist arrivals reduced drastically. Another reason for the reduction in numbers of foreign tourist arrivals was due to the global economic recession that affected the tourism industry of many countries. But, the Indian tourism industry employs 8.78% of the total employment due to which there were a significant number of job losses as well as loss of revenue.

Adapted from Tourism Report 2008, Ministry of Tourism, India 2008 As stated earlier the reduction in the number of international tourists resulted into the reduction in the foreign exchange earnings from tourism. The year 2008 had the largest amount of foreign exchange receipts from tourism US$ 11747 million. While, the first half of 2009 witnessed 21.6% reduction in the foreign exchange earnings due to the effect of terrorist attack in Mumbai and the global economic meltdown.

Although affected by various limitations and drawbacks the Incredible India campaign of the government of India has won numerous awards, few of which are as follows (Awards won by Incredible India Campaign., 2008):

Conde Nast Traveller ranked India as the top 2 most favoured countries in the world in 2008. Asia World Travel Awards 2008 conferred the award for the leading destination in 2008 The Incredible India campaign received the Global Shop America Salutes Innovation Award for shopping innovations by the Ministry of Tourism India.

SWOT analysis of tourism sector in India: SWOT analysis of the tourism sector by (Babu, D. S., 2008; Chaudhary, M., 1996; India, P. C. G. o., 2007) yielded some valuable information regarding the strengths, opportunities, weaknesses and threats of the Indian tourism industry. These can be consolidated as follows: Strengths: Extensive Natural Features: India due to its huge size offers the tourists a number of options with respect to the places to visit. India has the Himalayas in the north, the jungles in the north east, desert in the north-west, tropical climate in the centre and the coastline which covers almost 2/3rd part of the country (Dhariwal, R., 2005). Along with that the country is home to a number of different flora and fauna which are spread along the borders of the country which provides wild life tourism. Varied culture: The ancient and varied culture of India gives the foreign tourist an opportunity to acquaint themselves with one of the oldest civilisations in the world. The various parts of the country along with the different cultures and places of interest can provide the tourists with a glimpse of the unity in diversity that India has. India which is the birthplace of many namely religions Hinduism, Buddhism, Sikhism and Jainism offer pilgrimage tourism for the respective religious tourists (History of India. Retrieved 22 October, 2009). Famous places of interest such the Taj Mahal, which is one of the wonders of the world and other historical monuments and palaces are an added advantage for the tourism of India. Knowledge of English by local people: Due to the effective globalisation in the various parts of the country many people are now able to communicate effectively in English which makes it easier for the tourists to put forth their needs and requirements.

Weaknesses Infrastructure: India lacks specific infrastructure which is conducive to the development and increase in the number of tourist arrivals like proper roadways, communication systems, bigger airports and railway stations. Basic facilities such as safe drinking water, safe and clean cloak rooms at the railway stations and airports, safe and hygienic food and beverages for the tourists to consume are not available throughout the country (U, A. Z., 1991). The number of standard hotel rooms available for the international tourists are insufficient for the influx that the country experiences. Specific tourist locations: Promotions of the tourist locations are specific and do not sometimes cover the complete Indian diasporas (Bhatia, A. K., 2002). This does not cover most of the part of India and tourists cannot see the complete package of Indian tourism. Also, the geography of India causes a drawback because of the distance between the locations and the feasibility of the travelling between the different locations. There is an absence of alternate sites near certain places of interest which creates jams in managing of crowd. This generally takes place during certain festivals towards which tourists are attracted to. Complicated rules and regulations: The complicated and excessive formalities, for entry of a foreign tourist pose problems for the tourist thus affecting the satisfaction of the tourists visiting India. Certain places such as the Sunderbans or Andaman & Nicobar Islands require special permit for which the formalities are lengthy and time consuming. Safety and Security: The safety and security is the biggest weakness to the tourism industry in India. International tourists face frauds by the local people who con them for money and charge exorbitantly for the services provided. Also, there are a number of complicated protocols for reporting a complaint from international tourists which results in complications of the situations and increases the dissatisfaction levels of tourists. Certain places of interest are heavily guarded and there are a number of security checks the tourists need to go through for security purposes. Improper Itineraries: Improper and irregular tourism itineraries do not provide value for money to the tourists. These itineraries do not cover much of the anticipated places for the foreign tourists.

Opportunities Increase in privatization: Increase in the participation of the private sector has resulted in certain important developments under areas such as the hotels, resorts, restaurants. Also, the initiative by the government for public-private partnership has developed certain areas. The increase in privatization accelerated the provision of Infrastructure and speedy implementation of the plans that have been forecasted. It also provides the tourists with value for money and the government with improved management of the public enterprises. Commonwealth games 2010: The commonwealth games which are to be held from 3 rd October 2010 in Delhi can help India increase its total number of tourists apart from the sports persons associated with the games. The commonwealth games can help provide the important foreign exchange to the government of India. If the games are successful the image of India as a troubled destination could be altered and thus, help to advertise the Incredible India campaign. International student exchange program: The government of India has started the International student exchange program which would help the students from different countries to come to India on a cultural exchange. This would help the students from different countries to understand the Indian culture and way of living. Also, these tourists could help in marketing tourism of India as well as provide some foreign exchange. Threats Terrorism: The biggest threat to the Indian tourism industry is the terrorism which is generally associated with the separatist Kashmir groups in the northern part of India and outside India along with the Naxalite affected underdeveloped parts of India. The terrorist activities in the past such as the bomb blasts in January, March July, August 2003 or the planned terror attacks on 26/11/2008 in Mumbai witnessed a substantial reduction in the number of foreign tourist arrivals in India. Many countries after the terror attacks advised their citizens to avoid travelling to India which resulted in the loss of tourism (Sonmez, S. F., & Graefe, A. R., 1998; Tarlow, P. E., 2009)). The naxalite affected areas in the country do not allow a standard and proper development in the parts which are generally the forests and jungles. This causes big threats to the tourists visiting the wild life sanctuaries and forests. Economic slowdown:

The global economic meltdown that hit the world has already decreased the number of foreign tourist arrivals till June 2009 by 9.3%. The economic slowdown can further affect the tourism of India and the Incredible India campaign in a negative manner. Better facilities and prices by other nations: The facilities provided by the Indian tourism infrastructure and the prices quoted for them are much higher and not in competition with the packages provided by other competitors in Asia such as Singapore, Thailand and Malaysia. This can have an adverse effect on the tourism sector of India and may also reduce the number of foreign tourist arrivals.

Future Prospects of Indian Tourism Sector: The world tourism organisation forecasts Indian tourism sector to be the second largest in terms of the inbound traffic of tourists into the country of about 20 million tourists. This would help the government of India with the necessary foreign exchange earnings for its utilisation. The Indian tourism sector can receive a boost if the government of India utilises the strengths and opportunities and keeps in control the threats and weaknesses. Conclusion and Recommendations: The role of tourism in maintaining relations with other countries is important in todays world. Tourism can help the developing nations to stand in competition with the developed countries of the world. India must build up the basic infrastructure required by the foreign tourists like the increase in the number of standard rooms for lodging, cloak rooms, waiting rooms. Also, the security and safety situation of the country must be brought into control so as to reduce and eliminate the risk of terrorist attacks and provide security to the tourist places. India should also utilise the rural areas for increasing the rural tourism sector which would provide the local people with employment and aid in development of the rural parts of the country. Certain historical monuments in India which need to be marketed effectively and conserved should be done immediately so as to protect the national and cultural heritage of India (Obrasli, A., & Woodward, S., 2009). The complicated protocols and rules should be simplified by the government so as to speed up the process of Visas and special permits for certain places. The development of these certain areas along with other important aspects can help the government in increasing the number of tourist arrivals in the country and thus help promote and market the tourism sector of India in the International market. The tourism of India has developed from its primitive era to an upcoming destination. It can be concluded that the Indian tourism sector does have the potential to be one of the best preferred destinations in the world. But, in order to be the leading destinations in the world India needs to develop into the kind of market the foreign tourists need.