Role of Indian Tourism Industries in World Trade

INTRODUCTION

Tourism is an important catalyst in the socio-economic development in the modern times,

contributing in multiple ways and strengthen the inter-connected processes. While often

shows as panacea for many evils such as underdevelopment, unemployment, poverty

eradication, social discrimination and so on; its contribution in creating a global and regional

socio-political environment for peaceful co-existence of the cultures and societies has been

equally established at various levels.

Perhaps, this realization took many advocators to position tourism as one of the biggest

‘peace industries’, a means to strike equilibrium of global peace process though

development. Because, tourism practiced in responsible and sustainable manner bring about the

peace and prosperity of the people and that its stakeholders share benefits in fair manner,

which is a necessary condition for the equilibrium of sharing to sustain.

Due appreciation of such key role of tourism in development and global solidarity is

forthcoming in recent years. The U.N systems have been well on record about the growing

significance of tourism, which can be traced back to the 1980s. The latest being the candid

endorsement of U.N Secretary General who went on to state as precursor to his World

Tourism Day 2011 message: “tourism’s ability to generate socio-economic opportunities and

help reducing the gap between rich and poor is more important than ever”. This statement

acquires significance in the face of the economic crisis in recent times. Hence, any formulation

on tourism and its role in the society and economy must be rooted in due cognizance to the

contribution of tourism in the development process and according its rightful place and

position in the economic planning and programming.

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Meaning of Tourism

When we think of tourism, we think mainly of people who are visiting a particular place

for sightseeing, visiting friends and relatives, taking a vacation and having a good time.

‘They may spend their leisure time engaging in various sports, sunbathing, talking, singing,

taking rides, touring, reading, or simply enjoying the environment. Furthermore, we may

include in our definition of tourism people who are participating in a convention, a

business conference, or some other kind of business or professional activity, as well as

those who are taking a study tour under an expert guide or doing some kind of scientific

research or study.

These visitors use all forms of transportation, from hiking in a wilderness park to flying

in a jet, to travelling by rail or going on a cruise. Any attempt to define tourism and to

describe fully its scope, we must consider the various groups that participate in and are

affected by this industry. Their perspectives are vital to the development of a

comprehensive definition.

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Advantages of Tourism

The tourist: The tourist seeks various psychic and physical experiences and

satisfactions. The nature of these will largely determine the destinations chosen and the

activities enjoyed.

The business providing tourist goods and service: Business people view tourism as

an opportunity to make a profit by supplying the goods and services that the tourist

market demands.

The government of the host community or area: Politicians view tourism as a wealth

factor in the economy of their jurisdictions. Their perspective is related to the incomes

their citizens can earn from this business.

Politicians also consider the foreign exchange receipts from international tourism as well

as the tax receipts collected from tourist expenditures, either directly or indirectly.

The host community: Local people usually see tourism as a cultural and employment

factor. Of importance to this group, for example, it is the effect of the interaction between

large numbers of international visitors and residents.

Thus tourism may be defined as the sum of the phenomena and relationships arising from

the interaction of tourists, business suppliers, host governments and host communities in

the process of attracting and hosting these tourists and other visitors. Tourism is a

composite of a activities, services, and industries that delivers a travel experience,

namely transportation, accommodations, eating and drinking establishments, shops,

entertainment, activity facilities, and other hospitality services available for individuals or

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groups that are travelling away from home.

It encompasses all providers of visitor and visitor-related services. Tourism is the entire

world industry of travel, hotels, transportation, and all other components, including

promotion that serves the needs and wants of travelers.

Finally tourism is the sum total of tourist expenditures within the borders of a nation or a

political subdivision or a transportation-centered economic area of contiguous states or

nations. 

Impact of tourism

As an industry, the impact of tourism is manifold. Tourism industry nourishes a country’s

economy, stimulates development process, restores cultural heritage, and helps in maintaining

international peace and understanding.

Tourism at present is India’s third largest export industry and the forex earnings is estimated

to be about Rs.9186 cores (approx Us $3928 million) in 1995-96.

Employment Potential In Tourism Industry

The most significant feature of the tourism industry is the capacity to generate large scale

employment opportunities even in backward areas, especially to women, both educated and

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uneducated. Another important feature of tourism is that it contributes to national integration of

the people who live in different regions of the country with diverse cultures and languages.

Employment Effects

a. Tourism is seen as a boon in terms of employment for people in developing nations. But

in fact, tourism-related jobs are uncertain, seasonal and part-time, with a high turnover of

staff.

b. The loss of livelihoods through tourism - e.g., in agriculture and fisheries - has rarely

been subjected to research. But the high out-migration of locals from tourist centers is a

clear indication that tourism destroys more jobs than it creates.

c. Despite the tourism leaders' new affection for 'corporate social responsibility' (CSR),

exploitation of tourism workers remains rampant. Worldwide, the industry is taking

advantage of migrant workers who provide the cheapest labour, endure the harshest

working conditions and are least likely to organize in trade unions.

d. Women in tourism are found to have the most dehumanizing and the worst-paid jobs.

Tourism has an infamous reputation of boosting the sex industry wherever it takes root.

Efforts to make industry comply with the Code of Ethics promoted by the UNWTO have

not helped to curb trafficking in women and girls for sex work in tourist destinations,

which in many cases deprives the victims of their fundamental human rights and exposes

them to health risks such as HIV/AIDS.

e. Industry self-regulation has proven an utterly inadequate tool in tourist centres, such as

Pattaya in Thailand, Cancun in Mexico or Johannesburg in South Africa, where the sex,

drugs and crime, gang violence, mafia-style politics and corruption are out of control.

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f. The erosion of culture and traditional values is visible in all tourist destinations driven by

over-commercialization. Even many of the UN Educational, Scientific and Cultural

Organization (UNESCO)'s World Heritage sites are not properly protected from

privatization and 'Densification'.

Many indigenous peoples' rights groups are therefore condemning tourism as a form of

development aggression. Highlighting incidents of land rights violations and biopiracy, they

have raised serious concerns about the rigorous approach of the 'ecotourism' industry that

threatens indigenous peoples' sovereignty and aggravates conflicts and tensions in their

communities in tourism-related processes at the UN (e.g., at the Commission on Sustainable

Development, meetings of the Convention on Biological Diversity and the International Year of

Ecotourism 2002).

Environmental Impacts

Tourism as 'sustainable development' is a myth as it continues to wreak havoc on land

and marine ecosystems and biodiversity. Despite the industry's 'green wash' attempts,

fertile agricultural lands are still being cleared, forests cut down, mountains flattened,

beaches dug up, and coral reefs destroyed to provide resources for more and more

monstrous tourism complexes.

Moreover, tourism accelerates unhealthy urbanization processes and contributes to traffic

congestion, noise and air pollution and the dumping of waste and untreated sewage.

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The depletion and degradation of scarce water resources, particularly due to

mushrooming golf courses and spa businesses, aggravates the water supply crisis in many

communities.

According to a UN study, the average tourist consumes as much water in 24 hours as a

Third World villager requires to produce rice for 100 days.

High energy consumption in tourism facilities and greenhouse gas emissions linked to

transportation, especially the explosive growth in air travel, contribute significantly to

climate change.

Given all these serious impacts, tourism must no longer be treated like a holy cow that is

protected and nurtured at all costs. Particularly in these times of looming social and

environmental crises, governments and inter-governmental agencies like the UN should

prioritise people's basic needs, particularly food security.

Decision-makers should take a more responsible approach to tourism, by establishing

strong legal and regulatory frameworks and ensuring the enforcement of these rules and

regulations on the industry.

Corporate-driven voluntary initiatives, such as guidelines, codes of conduct and

accreditation schemes, are not the key to effectively tackling tourism-related problems.

What is needed instead is a people-centered approach to development that is aimed at

reversing the negative impacts of globalisation and restoring the values of justice,

democracy and self-determination in development - an approach that allows local

communities to reclaim land and resources that have been unfairly taken away, to

rehabilitate the environment that greedy capitalists have ravaged and to revive traditions

and cultures that have been distorted and exploited for profit-making purposes.

.

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India’s Tourist Place

India is a paradise for tourists and sightseers. It can provide attraction to people of all tastes and

temperament because of the unique and happy blending of modernism with orientalism. Tourism

industry is the biggest service providing industry of India. Indian tourism industry is expected to

cross 400 billion by 2019.

Beautiful beaches, extraordinary natural beauty, soaring temples with delicate art works,

Historical monuments in stones and marble, enchanting mausoleums like the Taj Mahal,

jungles teeming like wildlife, ancient cities with age old splendor, colorful festivals-religious

and national, deserts in Rajasthan, spectacular buildings of architectural interest are all over

India.

Variety In India

India presents a panorama of travel destinations for all types tourist. The land abounds with

many masterpieces of nature. On the north of India is the valley of Kashmir with its picturesque

gardens and beautiful lakes, luscious peaches and delicious apples, salubrious climate, golf clubs

and boat houses.

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At the south of India lies the Cape Camorin, the meeting place of two sea and one ocean, an

ideal place to watch the serene beauty. It may be mentioned that all the tourist centers have well

equipped transport and accommodation facilities.

For e.g.: Goa is connected with all major cities with connection flights.

We are dividing the India Tourism to nine categories based on region for the welfare

of foreign tourists travelling to India.

Delhi-Agra-Rajasthan The Golden Triangle

Golden triangle Tourism has become one of the top branded tourist circuits in Indian tourism.

Delhi Tourism:

Qutab Minar, Quwwat-ul-Islam Mosque, Iron Pillar, Tomb Iltumash, Suraj Kund, Hauz Khas,

Kolta Feroz Shah, Lodi Tombs, Purana Quila, Shrine of Nizamuddin, Humayun Tomb, Red Fort,

Jama Masjid, Jantar Mantar,etc

Agra Tourism:

Taj Mahal, Fatehpur Sikri, the Fort, the Jama Masjid, Tomp of Itemad-ud-Daula, Chini-Ka-

Rausa, Rambagh and Akbar's tomb at Sikandra

Rajasthan Tourism:

Jaipur, Udaipur and Jodhpur,Mt.Abu and Ajmer, Astronomical Laboratory, Sisodia Palace,

Hawa Mahal and Amber Fort at Jaipur; Khwaja Chisti's Tomb, Annasagar Lake, Adhai-din-ka-

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Jhopra and Lake Pushkar at Ajmer; Lake Palace, Jagdish Temple and Museum at Udaipur;

Nakki Lake, Toad Rock and Dalwara Jain Temples at Mt.Abu ;Kailana and Balamand Lakes and

Fort of Jodhpur. Ranthombhore National Park

Himalayan Tourism-except East India and Kashmir .

The Himalayas, Jim Corbett National Park, Nainital, Shimla

Tourism in Kashmir

Valley of Kashmir,Srinagar, Gulmarg, Ladakh, Leh

Punjab Tourism

Amristsar ,Golden Temple, The Jallianwala Bagh, Baba Atal's Tower, Rambagh Garden and

Gobindgarh Fort,Chandigarh , The garden of Pinjore

South India Tourism with Lakshadweep

Kerala, Kaudiyar Palace , Kovalam, Kumarakom, Kollam, Munnar, Thekady , Alleppey

Kottayam, Cochin, Kozhikode , Trissur, the Legislative assembly, and Cape Comorin Kovalam

beach, Backwaters of Kerala

Lakshadweep

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Channai., Mahabalipuram , Rock temples of Mahabalipuram, Nilgiris,Kodaikanal ,Mysore,

Botanical gardens , Coonoor,Bangalore -the Garden City, Temples of Belur ,Srirangapatna,

Hampi, Vijayanagar Empire, Nagarhole national park and Periyar National Park ,Pattadakal ,

Chola Temples , Fort Cochin

The Glorious Central India-Central India Tourism

Khajuraho, Gwalior , Indore, Ujjain, Mandu, Bhilsa, Shivpuri and Sanchi, Pachmarhi.

Orissa:

Jagannath temple at Puri, Rana temple at Bhuvaneshwar and Sun temple at Konark,

Bandhavgarh National park

The Andamans

Andaman and Nicobar Islands

Tourism in East India

Darjeeling, Darjeeling Himalayan Railways , Kaziranga National Park and Sunderbans, National

Parks, Sikkim, Nagaland and Dooars , Gantok, Kohima

West India tourism

Mumbai, Ajanta and Ellora ,The Ellora Caves, Goa, Karla Caves, Matheran

Festivals in India

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India is land full of colorful festivals .Each region or state has its own local celebrities ,but the

Dussehra and the Diwali are celebrated all over the country .In places like Mysore Dussehra is

celebrated in great style. Entire city of Mysore is decorated and atmosphere filled with dance and

celebrations.

Shopping and Handicrafts in India

India is also a paradise for the souvenir hunter. Inexpensive objects of utility and art present a

bewildering variety of skills, color and expression. And what a wealth of object India has to offer

in her continuing tradition of fine workmanship Kashmiri shawls, Varanasi brocades, intricate

jewelry etc .Much of the skills and sense of color displayed in the production of India's myriad

handicrafts stem from inherited traditions that are nearly as old as Indian history.

Beaches of India -Beach Tourism in India

Indian coastlines add up to 7,500 -odd kilometers in length. Indian beaches make on the top

tourist attractions in India for the foreign tourists. Indian beaches provide more than a strip of

land beside a sea where surfing and merry making is done. History and culture blend along with

fun and adventure ,that make beaches of India unique. You can watch forts and ports along with

the sea side. Beaches of Goa , Andaman, Kerala and Lakshyadweep tops the list.

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C o nt r i b ut i o n o f Tr ave l a n d To u ri sm Se c to r i n In d i a ( W T T C)

As regards to employment generation in 2011, the sectors’ direct contribution worked

out to be 5% and the total effects- direct and indirect together- to stand at 7.5% in the

country’s total employment pie. Respective figures might rise to 5.2% and 8.1% by

2021 and such prospects need to be taken as an important indicator for concerted

policy interventions and programming for tourism sector.

Because, as already established, the sector has a key role to play in the eradication

of poverty and underdevelopment by way of creating employment and income

opportunities for millions of the marginal and less empowered sections across the

country.

I n ve s t me n t S c e n a ri o o f Tr ave l a n d T ou ri sm Se c to r i n A s ia ( W TT C )

Table No.1

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As it evolves, what is encouraging is an atmosphere of growing confidence for investments in

the travel and tourism sector in India. Instantaneous being, as revealed by WTTC estimates,

India ranks 4th in terms of travel and tourism investment in 2011 with a total of USD 26.7

billion. The Table would further suggest that in terms of investment, India is much ahead of

most countries in the Asian region. Many factors can be attributed to this like a consistently

growing economy, fast expanding travel and tourism demand and supply, dynamic business

environment, global integration and so on.

Growth of tourism in Asia

Furthermore, despite economically and politically induced setbacks threats of terrorism from a

variety of global hot spots, recession in Europe, and economic upheaval in Japan, and the once

Communist Eastern Block, the future of tourism is brighter than ever.

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Expectations for growth tourism are 6.1 percent, 23 percent faster than the world economy.

Travel and Tourism will create 144 million jobs worldwide between now and the year 2005 (112

million in the fast growing Asia pacific.)

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World Trade Organization

The World Trade Organization (WTO) is an organization that intends to supervise and

liberalize international trade. The organization officially commenced on January 1, 1995

under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade

(GATT), which commenced in 1948. The organization deals with regulation of trade

between participating countries; it provides a framework for negotiating and formalizing

trade agreements, and a dispute resolution process aimed at enforcing participants'

adherence to WTO agreements which are signed by representatives of member

government.

And ratified by their parliaments. Most of the issues that the WTO focuses on derive from

previous trade negotiations, especially from the Uruguay Round (1986–1994).

The organization is attempting to complete negotiations on the Doha Development Round,

which was launched in 2001 with an explicit focus on addressing the needs of developing

countries. As of June 2012, the future of the Doha Round remains uncertain: The work

programme lists 21 subjects in which the original deadline of 1 January 2005 was missed

(So was the next unofficial target of the end of 2006.)

The further imposition of free trade on industrial goods and services and the protectionism

on farm subsidies to domestic agricultural sector requested from the developed countries,

and the substantiation of the international liberalization of fair trade on agricultural

products from developing countries remain the major obstacles.

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These points of contention have hindered any progress to launch new WTO negotiation(s)

beyond the Doha Development Round. As a result of this impasse, there has been an

increasing amount of bilateral free trade agreements.

WTO's current Director-General is Pascal Lamy, who leads a staff of over 600 people in

Geneva, Switzerland.

Principles of the trading system

The WTO establishes a framework for trade policies; it does not define or specify

outcomes. That is, it is concerned with setting the rules of the trade policy games. Five

principles are of particular importance in understanding both the pre-1994 GATT and the

WTO:

1. Non-discrimination. It has two major components: the most favoured nation

(MFN) rule, and the national treatment policy. Both are embedded in the main

WTO rules on goods, services, and intellectual property, but their precise scope and

nature differ across these areas. The MFN rule requires that a WTO member must

apply the same conditions on all trade with other WTO members, i.e. a WTO

member has to grant the most favorable conditions under which it allows trade in a

certain product type to all other WTO members. "Grant someone a special favor

and you have to do the same for all other WTO members."

National treatment means that imported goods should be treated no less favorably

than domestically produced goods (at least after the foreign goods have entered the

market) and was introduced to tackle non-tariff barriers to trade (e.g. technical

standards, security standards et al. discriminating against imported goods).

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2. Reciprocity. It reflects both a desire to limit the scope of free-riding that may arise

because of the MFN rule, and a desire to obtain better access to foreign markets.

A related point is that for a nation to negotiate, it is necessary that the gain from

doing so be greater than the gain available from unilateral liberalization; reciprocal

concessions intend to ensure that such gains will materialise.

3. Binding and enforceable commitments. The tariff commitments made by WTO

members in a multilateral trade negotiation and on accession are enumerated in a

schedule (list) of concessions.

These schedules establish "ceiling bindings": a country can change its bindings, but

only after negotiating with its trading partners, which could mean compensating

them for loss of trade. If satisfaction is not obtained, the complaining country may

invoke the WTO dispute settlement procedures.

4. Transparency. The WTO members are required to publish their trade regulations,

to maintain institutions allowing for the review of administrative decisions

affecting trade, to respond to requests for information by other members, and to

notify changes in trade policies to the WTO.

These internal transparency requirements are supplemented and facilitated by

periodic country-specific reports (trade policy reviews) through the Trade Policy

Review Mechanism (TPRM).The WTO system tries also to improve predictability

and stability, discouraging the use of quotas and other measures used to set limits

on quantities of imports.

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5. Safety valves. In specific circumstances, governments are able to restrict trade.

The WTO’s agreements permit members to take measures to protect not only the

environment but also public health, animal health and plant health.

There are three types of provision in this direction:

articles allowing for the use of trade measures to attain non-economic

objectives;

articles aimed at ensuring "fair competition"; members must not use

environmental protection measures as a means of disguising protectionist

policies.

provisions permitting intervention in trade for economic reasons.

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Role of tourism in World Trade

Quest for New Tourism Product

India’s Tourism Policy (2002) has accorded great importance for tourism product

development and diversification to increase the numbers of domestic and international tourists.

It goes without saying that India’s ancient civilization, cultural diversity, unmatched heritage

sites and other cultural manifestations have allured the tourists through ages and would

continue to be its prime USP. But, the tourist motivation and purpose of holidaying are

undergoing fast changes and that makes it imperative to create new tourism product offerings to

satisfy the new tourist class. The environmental consciousness among a large section of

travellers, many are even transforming it as their lifestyle preferences, pose both

opportunities and challenges to create environment-friendly products and practices. They are

also strongly inclined for such tourism practices optimally contributing to local economy and

therefore travel trends can no longer be taken as fads.

To address fast changing tourist consumer preferences, India is also in the race for creating and

re-creating diverse tourist attraction portfolios but that understandably should position around

its core competence of cultural endowments. The continental characteristics as being

manifested in the diverse geography, culture, people and way of living would enable India‘s

endeavours much easier to position it as one of the most vibrant tourism destinations globally.

Some of the latest tourism product development initiatives being pursued in this direction

have been listed below to have a perspective of the country’s diversity and potential.

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Rural Tourism: India is a country of villages and showcasing the rich rural life, art, culture

and heritage in villages in responsible manner would be mutually beneficial since tourism and

conservation complement each other. Rural tourism schemes in India envisage encouraging and

promoting the villages that have inherent strengths in art & craft, handloom, and textiles. The

main purpose is to benefit the local community economically and socially, diversifying the

local development opportunities as well as enable interaction between tourists and local

population for a mutually enriching experience. The promotion of rural tourism is also aimed

to arrest the migration from rural to urban areas.

Golf Tourism: Golf is considered to be a game of rich and is quite popular in advanced

countries. A potentially viable market segment is also emerging in the country. Recognizing

the potential to develop golf as a niche tourism product for attracting both international and

domestic tourism, Ministry of Tourism took many bold initiatives to identify and strengthen

the development. Recently, it organized a workshop (January 2011) in New Delhi on

“Promotion of Golf Tourism” to evolve a road map for formulating strategies for development

and promotion of golf tourism in India. (Annual report 2010, MOT)

Adventure Tourism: The urge for adventure is there in every human-being. Perhaps due to

this innate nature of man that adventure tourism is one of the most popular niche segments of

tourism industry. It is both a leisure pastime and serious hobby and entails in general travelling

to remote areas and exotic places to indulge in learning and experiencing through activities

with offering of higher risk and thrills. Owing to India’s enormous geo-physical diversity,

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it has taken a big shape over the years. Adventure tourism is very much a part of India’s

tourism policy and almost ever State has definite programme to identify and promote its

adventure tourism potential.

Camping Sites: Promotion of Camping sites has been encouraged with adequate

acknowledgement of its adverse effects on environment. Besides providing unique rewarding

experiences, responsible conduct of camping can be a major source for both additional

economic opportunities in remote areas as well as an instrument of conservation.

Medical Tourism: Medical tourism or health tourism is often described as rapidly growing

segment in the country. India is adequately equipped with state-of-the-art hospital

infrastructure and facilities to treat many critical illnesses. By now, India has been able to

establish as a favourite destination for many complex surgeries like cosmetic surgery, joint

replacement surgery, cardiac surgery and like at very low cost in comparison to the

developed countries. This indeed gives great momentum for the hospitals in particular and

tourism in general. Many specialized hospitals and tour operators have already come up to

promote the medical tourism.

Wellness Tourism: The core of wellness tourism in India is the ancient medical system of

Ayurveda combined with the system of Yoga. Indeed, many states in the country have

already taken great strides to promote wellness as a tourist product. Wellness tourism may be

described as travelling for the purpose of revitalizing one’s health and spiritual well-being.

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Ecotourism: India is often termed as hotspot of bio-diversity and this rich natural heritage is

unparallel in many ways. Such valuable resource base gives impetus for the practice of

variety of alternate tourism forms and many of which are already in existence. The national

parks, wildlife sanctuaries, biosphere reserves and a multitude of other natural settings are

indeed avenues for not only learning and experiencing the natures’ splendity and life systems

but also a major source for great variety of adventure offerings. If planned and practiced in

mutually complementing manner, ecotourism would be an important instrument for ecologic

conservation and source of livelihood for people living in those areas. India has some

successful examples of such complementarity of nature and tourism to further experiment

with and Thenmala Ecotourism Project in Kerala is an interesting case in point.

Highway tourism: Highways are like veins in the symbolic body of a country. Even in

the most ancient times, the kings have well envisaged the importance of highways

and constructed numerous inns and wells to facilitate the travellers. In modern times

too, initiatives has been taken to develop tourism infrastructure along the highways so

that it caters the travellers and provides income and employment opportunities

along the hinterland. Haryana has been pioneering this concept in successful fashion.

Rail tourism: Indian Railway Catering and Tourism Corporation (IRCTC), a public sector

enterprise under Indian Railway, promotes rail tourism in India. From luxury trains to steam

locomotive trains, hill charters and Char Dham trains; it offers the tourists with attractive

options and at the reasonable costs. Maharaja Express, Mahaparinirvan Express (Buddhist

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circuits), Bharat Darshan and Bharat Tirth are some of its famous train journeys. It also has

provisions for charters and exclusive tour packages. Besides IRCTC initiatives, state-level

corporations and private operators also operate tourist trains. Indeed, the world famous

Palace on Wheels and Deccan Odyssey are part of successful rail tourism initiatives in the

world.

Heliport tourism: In India, there are plenty of exotic places but reaching them out those

is an uphill task. Viewing this, the States and union territories with the help of central

financial assistance, identifies such places where helipads could be constructed to harness

the tourism potential. The cardinal principles adopted by the Central Government

for the tourism development strategy are many pronged and rooted in the seven key

areas envisioned in 2002 Tourism Policy: Welcome (swagath), Information (suchana),

Facilitation (suvidha), Safety (suraksha), Cooperation (sahyog), Infrastructure (samrachana)

and Cleanliness (safai).

The principles and approach for tourism development can be seen reflected in the 11th Plan

allocation and provisioning for various schemes. For instance, over 40% of allocation has been

apportioned to Product/ infrastructure development for identified destinations and circuits and

another 20% for overseas promotion, publicity and marketing development assistance.

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To Understand the Present Status Of Global Tourism

The phenomenon of tourism since 1950 has been remarkable in terms of growth, spread

and diversification. The international tourist arrivals since then have grown from mere

25 million to reach 940 million in 2010. The fast growth and spread not only resulted the

globalisation of people’s movements as never before but also contributed in creating a vibrant

industry and opportunities for millions of people.

I nt e rn a t ion a l T o u ri st A rri va l s a n d Re c e i pt s - 1 99 0 -20 1 0

Diagram: 2

(Source: UNWTO)

It is equally remarkable that irrespective of many challenges- at times far reaching in nature

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like economic threats, war and political instabilities, natural calamities and the like- tourism

as an economic activity could withstand the test of the time and demonstrated its resilience as

well as positioning in the modern way of living.

Table. 2 is revealing of the contemporary nature of tourism. During 1990-2010, international

tourist arrivals grew from 435 million to 940 million, recording an average annual

growth of 5.8%, hiccups in some years notwithstanding. During this period, the international

receipts also recorded considerable growth from USD 262 bn. to USD 919 bn., and its

average growth has been more than double to that of the arrivals at about 12.54%.

Regionally, international arrivals can be seen growing faster in emerging economies at a

rate of about 7% compared to the world average of 4.45% during 2005-2010

Tourism Industry, World GDP & Employment

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With passage of time, the travel and tourism industry has evolved to become one of the

largest and most dynamic industries of the global economy. A WTTC study has

estimated in 2010 that the contribution of travel and tourism to the world GDP was to the

tune of 9%, whereas, its total employment effect was more than 235 million jobs,

representing 8% of global employment.

Diagram 3: Economic Effects of Global Tourism and Travel Sector

(WTTC)

World 2005 2006 2007 2008 2009 2010

Travel & Tourism Direct Contribution to GDP

In US$ bn 1377.85 1471.67 1647 1755.23 1641.27 1757.54

2011 Price (US$ bn) 1692.25 1732.33 1787.9 1763.93 1711.85 1768.77

Real growth (%) 0.4 2.4 2.8 -1.5 -3.4 3.2

% share 3 2.9 2.9 2.8 2.8 2.8

Travel & Tourism Total Contribution to GDP

In US$ bn 4415.35 4768.24 5366.87 5807.13 5408.68 5701.95

2011 Price (US$ bn) 5424.19 5618.8 5853.46 5852.7 5652.89 5754.96

Real growth (%) 3.3 3.6 3.6 0 -3.9 1.7

% share 9.6 9.6 9.6 9.4 9.3 9

Travel & Tourism Direct Contribution to Employment

Real growth (%) 1.1 3.3 -0.6 -0.2 -2.3 0.9

% share 3.5 3.5 3.4 3.4 3.3 3.3

In thousands 95307.4 98473.9 97794 97527.6 95260.1 96130.5

Travel & Tourism Total Contribution to Employment

Real growth (%) 0.6 2.7 3.1 -4 -3.1 -0.8

% share 9.4 9.5 9.6 9.1 8.8 8.6

In thousands 256508 263553 271805 260838 252720 250565

Further, the employment effect of international tourism appears to be optimistic in the

medium to long-term. According to the UNWTO forecasts, the sector is expected to

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provide nearly 296 million jobs by 2019 given that there would be sustained growth of global

tourist arrivals and the major economies maintain its momentum.

Recent trends in Indian Tourism

The tourist numbers and activities in India seem to suggest more of an optimistic

scenario. The gloomy phase of 2008-09 has been mediated successfully with focused policy

interventions and industry initiatives that in turn added momentum to the growth process. From

a negative growth of -2.2% in 2009/08, foreign tourist arrivals increased considerably to

register a growth of 8.1% in 2010/09. This turn-around is indeed encouraging given the fact

that global economy was still recovering and has not reached its usual growth trajectory.

Notwithstanding this, it is not heartening to mark that India’s share in the world tourism pie

has never crossed the threshold of 0.7% at any point in time.

The reversal of foreign tourist arrivals was equally evident in the strong momentum

being observed in the foreign exchange earnings post 2008. For, the earnings in rupee terms

recorded an increase of around 28%, i.e. from Rs. 50730 crores in 2008 to Rs. 64889 crores in

2010. In the contrary, the increase in dollar terms was comparatively less at about 20.8%

during the same period. This could perhaps be attributed to the factors like variations in the

exchange rate as well as reduced tourist expenditure.

Another pertinent dimension worth noticing is the relationship between the growth in tourist

arrivals and the earnings during this period. For instance, in rupee terms, the annual increase in

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earnings has been much faster to that of arrivals with the figures for 2009/08 and 2010/09

recording 8.3% and 18.1% respectively. Further, while examining the monthly change, it was

also observed that the earnings were fairing much better with only first three months of 2009

accounting a negative change over corresponding months previous year. But, when it came to the

arrivals, barring December, as Diagram. 4 would suggest, the scenario in 2009 was that of either

negative or negligible growth compared to 2008.

Percentage Change In Monthly International Tourist Arrival

And Revenue- India

Diagram. 4

Post-recession trend in domestic tourism is rather poised for a leap if the growth of

18.8% (2009/08) and 10.6% (2010/09) in the subsequent years are any indication (Diagram 4).

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However, we often tend to underestimate the massive nature and significance of domestic

tourism in the country despite the fact that it generates nearly three-fourth of total tourism

revenue and that it acts as the backbone of Indian tourism industry. Needlessly, negating the

contribution of the segment could jeopardize overall momentum of growth of tourism sector,

both in short and long terms.

Tr e n d i n D o me s ti c To u ri s t A r r i va l s i n In d ia

Diagram. 5

Year Domestic Tourist %

2005 391.95 7.0

2006 462.31 18.0

2007 526.56 13.9

2008 562.98 6.9

2009 669.02 18.8

2010 740.0 10.61

Source: Tourist Statistics, GoI); * Provisional

The domestic tourist data further reveals a pattern of a few states garnering a larger

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chunk of the growing traffic. For instance, top five states namely Andhra Pradesh (155.8 mil),

Uttar Pradesh (144.4 mil), Tamil Nadu (111.6 mil), Maharashtra (48.5 mil) and Karnataka (38.2

mil) constitute around 67% of the total traffic in 2010. This is indicative of a trend in spatial

concentration of tourist activities, which indeed has been consistently observed over many

decades owing perhaps much to the religious/pilgrim tourism and location of important

cultural attractions in those states.

Not that Indians are touring only within its national limits. It is rather interesting to observe two

main features of their overseas travel patterns. First and foremost is a consistent increase in the

numbers of Indians taking international vacation travel over the years, which Diagram. 5 would

suggest growing from 7.2% in 2005 to 12.3% in 2010. Even when the global tourist movements

fallen substantially as a result of global recession, Indian outbound traffic has been growing with

consistency and stability. Second, rather more pertinent from the perspective of travel account

balance, is the difference in terms of inbound and outbound tourist numbers where the later can be

seen double to inbound numbers. The phenomenal growth in outbound travel could be a by-product

of many economic and social factors, most important being material prosperity and urge for travel

and life styles. Other contributing factors being ease of travel documents like passport, visa,

relaxation in foreign exchange regulations, better awareness of destinations and benefits of travel

etc. As regards travel segments, the MICE and business travel are arguably growing faster

compared to the leisure segments. The quantum of Indian nationals on overseas vacations

increased from 6.2 million in 2004 to 11 million in 2009.

World tourism scenario

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People in general now view tourism as a way of life rather than a luxury item reserved for the

affluent and the elite. Tourism has emerged as the largest service industry globally in terms of gross

revenue as well as foreign exchange earnings. The present annual global income from tourism

(international and domestic) is nearly US$13 trillion, an amount more than the GNP of all countries

except the United States.

According to the World Tourism Organisation  (WTO), the number of international travellers has

risen to more than 500 million per annum, which means that one out of every ten inhabitants of this

planet is a tourist. With rapid developments in the field of transport and communications, the global

tourism industry is likely to double in the next decade. 

WTO forecasts that there will be 702 million international arrivals in the year 2000, that arrivals

will top one billion in the year 2010 and that by 2020, international arrivals will reach 1.6 billion

nearly three times the number of international trips made in 1996 which was 592 million. 

The 21st century will see a higher percentage of the total population travelling, especially in

developing countries, and people will be going on holidays more often, sometimes two, three or

four times a year. Travellers of the 21st will also be going farther and farther. The “Tourism 2020

vision” forecast predicts that by 2020 one out of every three trips will be long haul journeys to other

regions of the world. Long-haul travel is expected to increase from 24% of all international tourism

in 1995 to 35% of all international traffic arrivals by the year 2020. 

Tourism is the industry of industries and has a great multiplier effect on other industries.

Tourism serves as an effective medium for transfer of wealth because here income earned

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in places of “residence” is spent in place “visit”. It is the highest generator of

employment. A total of 212 million persons are now being employed globally through

direct and indirect opportunities generated by this industry.

This means that out of every nine persons, one person earns a living from tourism. For

every million rupees of investment 13 jobs are created in manufacturing industries, 45

jobs in agriculture and 89 jobs in hotels and restaurants. Tourism is therefore considered

to be an important area for intensive development for all governments. As the fastest

growing foreign exchange earner, especially in developed countries, it is being given

priority attention. 

Tourism a   multi component industry

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There is no obvious answer. One explanation is that tourism is a multi component industry, many

parts of which are inextricably linked to other economic sectors such as airlines to transportation;

souvenir shops, concession stands and restaurants to retail or service; hotels and other

accommodation to commercial development.

“Broadening the Mind.” A survey of the World Travel and Tourism published in the “Economist”

offers the following rationale. The size of the travel and tourism business is difficult to comprehend

for at least three reasons. First there is no accepted definition of what constitutes the industry, any

definition of what runs the risk of either overstating of understating economic activity. Second,

tourism is a business, many of whose activities (like tour guides and souvenir sales people) and

much of whose income (tips) are well suited to practitioners of the underground economy.

In countries with foreign exchange controls (which are always evaded) every official figure on

expenditure will be wrong.  Third, international travel is bedeviled by astounding differences in the

data of different countries. While efforts are underway to bring uniformity to data connection and

analysis worldwide, it will likely to be sometime before a consensus is reached and the scope and

impact of the tourism industry. However at least two organizations are dedicated to the task of

giving travel and tourism its due as the world’s largest industry.

The Brussel based World Travel & Tourism Council (WTTC) us a coalition of 65 Chief executive

officers from all sectors of the industry. Its goal as stated in WTTC reports is “to convince

governments of the enormous contribution of travel and tourism to national and world economic

development, to promote expansion of travel and tourism markets in harmony with environment

and to eliminate barriers to growth of the industry.”

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The World Tourism Organization (WTO), on the other hand, is an agency of the United Nations

Development Programme, WTO’s membership comprises 113 of the world’s government and

boasts over 170 affiliate members from the travel and tourism industry. It is the only inter

governmental organization open to the operating sector. Its mission is the promotion and

development of travel and tourism as a means of stimulating business and economic development,

and forecasting peace and understanding between nations.

Tourism, the world's biggest industry!

A survey of 400 policy and opinion makers in 20 countries placed these and three other industries

ahead of tourism in global economic contribution, but recently gathered statistics tell a different

story.

As a contributor to the global economy, tourism has no equal.

Tourism employs 204 million people worldwide or one in every nine workers, 10.6 percent

of the global workforce.

Tourism is the world’s leading economic contributor, producing an incredible 10.2 percent

of the world’s gross national product.

Tourism is the leading producer of tax revenues at US$655 billion.

Tourism is the world’s largest industry in terms of gross output approaching  US$304

trillion 

CONCLUSION

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Tourism is a truly global business that turns everything on Earth - even the most sacred domains -

into commodities. Most travellers would not want to wake up to the fact that they are just feeding a

multi-billion-dollar industry and contributing to unsustainable patterns of consumption and

production. And there is little awareness that as always, it is the poor who have to pay for the social

and environmental costs of excessive tourism.

India represents one of the most potential tourism markets in the world. Tourism today is the

most vibrant tertiary activity and a multi-billion industry in India. Traditionally known largely for

its historical and cultural dimensions, tourism today is highlighted for its immense business

opportunities. With its lucrative linkages with transport, hotel industry etc., the potential and

performance of India’s tourism industry needs to be gauged in terms of its socio-economic

magnitudes.

Governments emphasize tourism as a driving force for economic development. The latest World

Tourism Barometer released by the United Nations World Tourism Organization (UNWTO)

indicates that international arrivals will amount to 880 to 900 million by the end of 2007, which

points to a continuation of the sustained growth rate experienced over the past years. The Asia-

Pacific region is the acknowledged motor behind the global tourism growth, with China and India

representing the fastest-growing markets. According to the World Travel and Tourism Council

(WTTC), travel and tourism presently employs approximately 231 million people and generates

over 10.4% of the world's GDP.

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