Tourism Employment Oppportunities - Synopsis

8/13/2019 Tourism Employment Oppportunities - Synopsis

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T.Rajesh (Principal Investigator), Assistant Professor, Government College,

Ambalapuzha.

Dr.Dileep..A.S (Co-Investigator) , Assistant Professor, Department of Commerce,

NSS College, Nilamel

Tourism being a multi-dimensional and integrated industry features low resource

consumption, high leverage effect and abundant job opportunities. It is now imperative to an

economy; economically, socially, culturally and environmentally.Economically, it creates jobs

and contributes to gross domestic product, as well as bringing in capital investment and exports.Socially and culturally, travel and tourism offers the opportunity of providing jobs for the

minority and the disadvantaged groups, creating adequate training in management skills,

providing education and technology to local people and increasing incomes in rural and local

economies, thereby contribute to the alleviation of poverty in developing countries.

Environmentally, it is essential for travel and tourism to maintain an optimal balance of its

natural resources by ensuring the ongoing arrival of tourists to destinations. Thus, almost all the

countries in the world have placed tourism on a pride of place as it employs over 235 million

people, generates 9.2 per cent of global GDP, witnesses 940.0 million FTAs and generates 919.0

US $ billion FEE (WTO, 2010).

India is one of the popular tourist destinations in Asia. Tourism plays a critical role in the

economic development of the country with a contribution of 6.23 per cent to the national GDP

and 8.78 per cent of the total employment in India. As the second largest foreign exchange

earner, it employs a large number of people, both skilled and unskilled. Owing to her secularism

and rich culture, India has fascinated many people from all over the world. The majority of

foreign tourists come from USA and UK. Kerala, Tamil Nadu, Delhi, Uttar Pradesh and

Rajasthan are the top five States to receive inbound tourists.

Kerala, the southern State of India, has been referred as a paradise for tourists by the

media worldwide.Today, Kerala Tourism is a global super brand and is regarded as one of the

destinations with the highest brand recall. In 2010, Kerala attracted 6.59 lakhs of foreign tourists


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(an increase of 18.31%) and 85.95 lakhs of domestic tourists (an increase of 8.6%) as compared

to the previous year thus making it one of the fastest growing tourism destinations in the world.

The tourism industry significantly contributes to the State's economy and has considerable

potential in Kerala. The State was able to generate from tourism Rs. 3797.37 crore in 2010 as

against Rs. 535 crore in 2001, representing a compounded annual growth rate of 21.65 per cent.

The State's tourism agenda promotes ecologically sustained tourism, which focuses on local

culture, wilderness adventure, volunteering and personal growth of the local population.

Acclaimed as Indias only tourism super brand, Keralahas been able to develop strengths in

certain core areas of product development and infrastructure creation.

Growth and Development of Global Tourism

Tourism being a smokeless industry is now a multi-billion, multi-sectoral and multi-

dimensional activity in the world. Tourism is being considered as an agent of social change

bridging gaps among nations, regions and people and helping them to open up. It is a promoter

of development-material and spiritual both at macro and micro level.

Travel and tourism industry occupy an important role in the economy of several

countries. Tourism has today achieved the status of a complete industry. Governments all over

the world are competing with each other to sell tourism and travel concept, its history, culture,

snow caped mountain, beaches, sand, sunrise, sunset etc. It enhances the quality of life, preserves

the national heritage and encourages the appreciation of diverse culture, both by domestic and

foreign visitors.

Over the past few years, the travel and tourism industry has had to contend with a series

of unprecedented challenges, international events, such as terrorism and SARS, and economic

turbulence which have led to significant changes in travel and tourism demand. At the same

time, international events such as an increase in information and booking facilities made

available over the internet; an outgoing desire by consumers to travel more frequently; a strong

branding and globalization by companies; and the expansion of low-cost carriers have acted as

catalyst, accelerating fundamental changes in market behaviour and travel patterns that have

been slowly emerging over the past decade. While business plans have become increasingly

short-term, more and more governments are starting to realize that they cannot leave the growth

of travel and tourism to chance. This emerging global consciousness represents a great

opportunity for this industry.


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International tourist arrivals worldwide registered a negative growth rate of 4.2 per cent

during the year 2009 as compared to 2.0 per cent growth during 2008. The FTAs were 683.4

million during 2001, which increased to 940.0 million during 2010. The percentage increase of

FTAs during 2010 is 6.8 per cent. The compound annual growth rate during the 10 year period is

3.24 per cent.

Review of Literature

Jenny Phillimore (1998) discusses the results of a quantitative survey of a rural countys

tourist attractions and the types of employment, levels of training, and expertise within them.

The county of Herefordshire, England, has been awarded European Community Objective 5b

funding to aid in the restructuring of its economy. One of the main areas targeted is tourism and

the development of tourist attractions. Rural women experience opportunity deprivation, so it is

hoped that developing tourism employment will provide them with additional employment

opportunities. Employment figures show women tend to work in unskilled, seasonal, and part

time jobs, while men were more likely to be annual, fulltime, and managerial employees.

Bonnie Martin, Francis McGuire, and Lawrence Allen (1998), conducted a survey to

identify retirees attitudes toward tourism development in a resort community. Data analysis,

including factor analysis, found that four dimensions described retirees attitudes: increased

development, negative impacts, positive impacts, and tourism support. It was found that retirees

do not support continued growth and strongly agreed that tourism had negative impacts,

supporting growth machine theory.

Mara Manente and Maria Carla Furlan (1998) analyse the quality of tourism as a system

that includes final consumption, product based market services, the natural environment and

cultural resources at no cost, and the impact on the local society, all from the macroeconomic

point of view. They maintain that if optimal use is to be made of resources in the sense of

achieving sustainable system quality, this use must be compatible with the carry capacity.

Thomas C. Jensen (1998) estimates the income and price elasticity for six nationals most

often visiting Denmark as tourists. The estimates are based on two different measures of

revenue: the number of nights spent and the currency exchange statistics.

The report prepared by World Travel and Tourism Council (1998) on the Economic

Impact of Travel and Tourism Development in the APEC Region provides a foundation for


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increased awareness and understanding of the significance of travel and tourisms contribution to

the economy of the APEC region. It will assist member economies in implementing appropriate

policy measures to prepare for the expected growth of travel and tourism and to capture the

potential for new capital investment.

David W. Marcouiller (1998) presents an analytical framework that captures

environmental goods as latent primary factor inputs to the production process of tourism. Using

forest resources as an example, he incorporates no- priced tourism production inputs to specify

the tourist production function, to provide a critical linkage to land and recreation resource

management, and allow for more integrative tourism-planning approaches.

Mananyi, A (1998), in his article, Optimal Management of Ecotourism, considers the

static and dynamic optimal tax policies that are designed to decentralize the social optimum,

thereby internalizing the externalities and guaranteeing the sustainability of both the wildlife

species and tourism. The sustainability debate strongly suggests that the viability of eco-tourism

is in danger unless policies that promote the natural resource base are pursued.

Megan Epler Wood (1998) investigates the role of community participation in the

development of eco-tourism in Ecuador from social, political, and conservation perspectives.

Ecuador is a living laboratory of eco-tourism and community development issues that provides

an excellent base to study and learn about how communities in tropical zones adapt eco-tourism

to their needs. One inventory found 30 indigenous and controlled eco-tourism projects in the

Amazonian region of Ecuador alone.

Zoran Klaric (1999), in his study on the Impact of Distance and Availability of

Information on Travel to Conflict RegionsExample of Croatia, deals with the causes of

changes in tourist demands in Croatia in relation to the situation before the war. Based on this

analysis, it is suggested that distance and available information influence more significantly the

travel into conflict areas, second only to the price and promotive policy, but not real safety.

Heerschap, N.M (1999) describes the importance of employment and human resource

issue for the tourism industry. The study proposes the use of both approaches (demand side

and supply side) simultaneously by connecting basic life account through an employment

module as the integration framework.

Travel Industry Association of America (1999) on their report titled 1997 Impact of

Travel on State Economies, deals with spending on travel, jobs generated through travel and


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total wage and salary generated through travel. This report includes six separate summaries:

1997 Travel Expenditures in the U.S., 1997 Travel-Generated Payroll in the U.S., 1997 Travel-

Generated Employment in the U.S., 1997 Travel-Generated Tax Revenue in the U.S., State

Profiles, and 1997 Multiplier Impact of Travel Spending in the U.S.

Cevat Tosun (1999) presents an analysis of the contribution of international inbound

tourism to economies of developing nations with special reference to Turkey. It shows that the

contribution of international inbound tourism to the Turkish economy appears to be significant in

absolute terms.

Pizam, A (1999), in an essay titled Life and Tourism in the Year 2050,represents the

authors personal vision of life and the state of the tourism industry in the year 2050. It describes

the major expected developments in the areas of environment, demographics, economy and

business, lifestyle and values, politics, housing, education, entertainment, shopping, and

emerging technologies.

Raphael Raymond (1999) in his study gives the national totals and the figures for Eilat

and for five other destinations.The economic benefits of tourism are reduced by the building of

accommodation and facilities that are used only part of the year or have low annual usage, and

by seasonal unemployment. Monthly occupation peaks and troughs in 1998 are presented for 16

countries, as well as the seasonal patterns of tourism by air to Israel, by principal origin and of

inbound and domestic hotel demand.

Employment Impact of Travel and Tourism

As per the report published by the World Travel and Tourism Council, 2011 the total

contribution of Travel and Tourism to employment, including jobs indirectly supported by the

industry, is forecast to rise by 2.3 per cent pa from 258,592,000 jobs (8.8% of total employment)

in 2011to 323,826,000 jobs (9.7%) by 2021.

The tourism industry has mushroomed phenomenally in the last few decades and has

become an important factor in the economy of many nations. It has emerged as the worlds

largest export industry and has become a unique instrument for economic development as well as

for promoting social integration and international understanding. Over the years, its importance

as a major source of contribution to the improving of balance of payment and for creation of new

business opportunities, employment generation, ecological conservation and regeneration as well

as for percolation of economic benefits to the weaker sections of the society has been increasing


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tremendously. Of these benefits, employment generation is the most beneficial to the developing

nations concerned.

Tourism has a variety of economic impacts. Tourism contributes to sales, profits, jobs,

tax revenues, and income in an area. The most direct effects occur within the primary tourism

sectors - lodging, restaurants transportation, amusements, and retail trade. Through secondary

effects, tourism affects most sectors of the economy. An economic impact analysis of tourism

activity normally focuses on changes in sales, income, and employment in a region resulting

from tourism activity. An economic impact assessment (EIA) traces changes in economic

activity resulting from some action. An EIA will identify which economic sectors benefit from

tourism and estimate resulting changes in income and employment in the region. Economic

impact assessment procedures do not assess economic efficiency and also do not generally

produce estimates of the fiscal costs of an action.

Employment in Tourism in India

India is a Tourists Paradise as far as our 10,000 year old Heritage, History and Cultures

are concerned. India only get around 3.0 million tourists per year, the same as the city countries

of Dubai, Singapore and some small cities of Europe and North & South America. Even small

countries, like Malaysia and Thailand get nearly 10 million tourists per year. China gets nearly

47 million tourists per year. One tourist results in the employment generation of nearly 2 to 4

jobs. As per the report published by Associated Chambers of Commerce and Industry

(Assocham) travel and tourism sector is expected to be the second largest employer globally by

2019. The study said travel and tourisms share in employment generation in India is likely to be

significant in the next couple of years. Tourism sector is the largest service sector in India, which

contribute 8.78 per cent of the total employment.

Almost all the States in India have placed tourism on a priority platform, making efforts

to exploit the tourism resources and potential offered by the States. Kerala has been significantly

successful in its tourism efforts, in creating a key tourism platform for the State and positioning

itself competitively in the international tourist market. For the major part of the 20 th century,

Kerala largely ignored its tourism potential, taking for granted the breathtaking beauty of its

natural resources, while States like Goa and Rajasthan marched ahead dominating the tourism

pie. However, in the last decade of the Century, the State awoke to the possibility of using

tourism as an economic lever. From 1990 onwards, there were tentative efforts to bring Keralas


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traditional dance forms and traditional medicine to the forefront, but no formal efforts to launch

the tourism sector.

In 1995 the State announced, for the first time, its stand towards tourism taking, as the

WTTC put it, the first major step for tourism development. The same year saw the inflow of

domestic tourists to Kerala increased by a phenomenal 204 per cent from 1.28 million to 3.9

million, and the inflow of foreign tourists by 36.7 per cent from 0.1 million to 0.14 million. Then

in 2000, in the first Travel Mart held in the State, Kerala cast its global spell through three short

wordsGods Own Country-the slogan that captured the International market. From the turn

of the millennium, Kerala has marched on its way forward, with various tourism indicators

demonstrating a steady rise over the years. In the following sections, an analysis of the tourism

growth in Kerala has been made.

Statement of the Problem

It is a boom time for Kerala tourism. Along with the growth of the Kerala economy in

general, the tourism sector has also witnessed huge buoyancy in recent times. Today, Kerala is

among the top ten tourist destinations in the world. Innovative and market-focused advertisement

campaigns help Kerala to boost its tourism inflows in both volume and value. All these

campaigns helps the growth of tourism in Kerala. But the benefits from the boost has not yet

reached the important stakeholders viz; employees.

The employees are not treated properly, unscented recruitment and selection practices prevail in

this sector, wage and salary structure are not adequate and market based. All these factors hinder

the labour market development of tourism in Kerala.

Scope of the Study

The present study aims to explore the employment practices in tourism sector in Kerala.

More specifically, it aims to assess the recruitment, selection, compensation and job satisfaction

of tourism employees in Kerala. The study aims to collect data from employees in hotel industry,

travel agencies, promotional agencies, houseboat employees, and employees who are engaged in

tourist transportation.


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Objectives

The primary objective of the study is to explore the employment opportunities of tourism

development in Kerala. in pursuance of the objective the following sub objectives have been

formulated.

1) Analyse the growth of tourism and tourism employment in Kerala.

2) To evaluate the employment problems in hotels, travel agencies and promotional agencies.

3) To evaluate the employment problems in houseboats, tourist guides and transport

undertakings.

4) To make suggestion s for alleviating the problems and for the orderly development of tourism

sector.

Data Base and Methodology

In pursuance of the above mentioned objective, the following methodology was

adopted for conducting the study. The present research work is an analytical study based on both

primary and secondary data. The first objective of the study is achieved through the collection

and analysis of secondary data, whereas all the other objectives have been achieved through

collection and analysis of primary data.

Secondary Data

The secondary data for the present study have been collected from the personal

discussion with officials of tourism sector and from various publications of numerous

institutions.

Primary Data

Primary data required for the study have been collected from selected employees in the

tourism sector the state of Kerala. For the purpose of the study employees in tourism sector are

divided into two: Primary employees and Support employees. Primary employees include

employees in hotels, travel agencies and promotional agencies. Support employees include

tourist guides and employees in houseboats and tourist transport.

Sample Design Adopted for the Study

A multi stage random sampling method will be employed for the selection of sample

respondents.


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Estimated Expenditure

Purpose Amount

Photo copying relevant related materials 15000

Printing of questionnaire 3000

DTP -draft and final project 25000

Executive binding of the project 10000

Traveling and stay expenses 75000

Fee for statistical analysis 50000

Subscription of related magazines journal and

periodicals

10000

Purchase of stationary 15000

Purchase of books 50000

Purchase of computer 40000

Purchase of printer 7000

Total 300000

Tourism Employment Oppportunities - Synopsis

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