A PROJECT REPORT ON

TOURISM INDUSTRY

SUBMITTED BY

SHRIKANT S. RANE.

T.Y.B.M.S. [Semester V]

RAMNIRANJAN JHUNJHUNWALA COLLEGE,GHATKOPER (W), MUMBAI - 400 086

SUBMITTED TO

UNIVERSITY OF MUMBAI

ACADEMIC YEAR2006 - 2007

PROJECT GUIDE

MR. J.C.SABOO

DATE OF SUBMISSION

OCTOBER, 2007’

DECLARATION

I, Mr. Shrikant Rane ,student of Ramniranjan Jhunjhunwala

College of TYBMS [Semester V] hereby declare that I have

completed my project, titled ‘Tourism Industry’ in the Academic

Year 2007-2008. The information submitted herein is true and

original to the best of my knowledge.

________________________

Signature of Student

[Shrikant Rane]

CERTIFICATE

I, MR. J.C.SABOO, hereby certify that Mr. Shrikant Rane,

student of Ramniranjan Jhunjhunwala College of TYBMS

[Semester V] has completed her project, titled ‘Low Cost

Airlines’ in the academic year 2007-2008. The information

submitted herein is true and original to the best of my knowledge.

_______________________________ ______________________

Signature Of The Principal Signature Of The Project

Co-ordinator

[Dr.Usha Mukundan] [Mr. J.C.SABOO]

]

ACKNOWLEDGEMENTS

As the students of TY BMS we would like to express our

warm gratitude to our respected Prof. Chitnes and Prof.

Manju, who aided us in the undertaking of the completion of

this work. It seems appropriate to say thank you in the end

rather than at the beginning because it is actually the omega

of the project, which they helped to bring about. And finally

to all our devoted group members for their wholehearted

support and continually bringing statements of urgent issues

with their compassionate viewpoint and deep insights ……As

always.

LETTERS OF VISITS

Executive Summary

INDEXSr. No. Topic Page No.

1. INTRODUCTION 1-2

2. DEFINITION 3-4

3. TOURISM: THE INDUSTRY 5-7

4. CHARACTERISTICS OF TOURISM 8-9

5. CLASSIFICATION OF TOURISM 10

6. SPECIAL FORMS OF TOURISM 11-13

7. TYPES OF TOURISTS 14

8. MARKETING MIX 15-21

9. SEGMENTATION 22-23

10. SWOT ANALYSIS 24-26

11. PEST ANALYSIS 27

12. GOVERNMENT POLICES 28-29

13. TOURISM IN INDIA 30-39

14. MAJOR PLAYERS IN TOURISM 40-45

15. BOOMING TOURISM INDUSTRY 46-49

16. Article: Tourism-The First Commercial

Venture

50

17. Conclusion 51

18. Annexure 1-3

INTRODUCTION

Tourism is the act of travel for the purpose of recreation

and business, and the provision of services for this act.

Tourists are people who are "traveling to and staying in places

outside their usual environment for not more than one

consecutive year for leisure, business and other purposes not

related to the exercise of an activity remunerated from within

the place visited" (official UNWTO definition). The distance

between these two places is of no significance.

A more comprehensive definition would be that tourism is

a service industry, comprising a number of tangible and

intangible components. The tangible elements include

transport systems - air, rail, road, water and now, space;

hospitality services - accommodation, foods and beverages,

tours, souvenirs; and related services such as banking,

insurance and safety and security. The intangible elements

include: rest and relaxation, culture, escape, adventure, new

and different experiences.

Many countries depend heavily upon travel expenditures

by foreigners as a source of taxation and as a source of income

for the enterprises that sell (export) services to these

travellers. Consequently the development of tourism is often a

strategy employed either by a Non-governmental organization

(NGO) or a governmental agency to promote a particular

region for the purpose of increasing commerce through

exporting goods and services to non-locals.

Sometimes Tourism and Travel are used interchangeably.

In this context travel has a similar definition to tourism, but

implies a more purposeful journey.

The term tourism is sometimes used pejoratively,

implying a shallow interest in the societies and places that the

tourist visits. Wealthy people have always traveled to distant

parts of the world to see great buildings or other works of art,

to learn new languages, to experience new cultures, or to taste

new cuisine. As long ago as the time of the Roman Republic

places such as Baiae were popular coastal resorts for the rich.

DEFINITION

DEFINITION OF TOURISM

One of the earliest definitions of Tourism was given by

the Austrian Economist Hermann Von Schullard in 1910. He defined

it as,

"Sum total of operators, mainly of an economic nature, which directly relate to the entry, stay and movement of foreigners inside and outside a certain country, city or a region."

Hunziker and Krapf, in 1942, defined Tourism as,

"Tourism is the totality of the relationship and

phenomenon arising from the travel and stay of strangers,

provided that the stay does not imply the establishment of a

permanent residence and is not connected with remunerative

activities."

In 1976, Tourism Society of England defined it as

"Tourism is the temporary, short-term movement of people to destination outside the places where they normally live and work and their activities during the stay at each destination. It includes movements for all purposes."

In 1981,International Association of Scientific Experts in Tourism

defined Tourism

“In terms of particular activities selected by choice and

undertaken outside the home environment.”

DEFINITION OF TOURISTS

The terms tourist and tourism were first used as official terms in 1937 by the League of Nations. Tourism was defined as people traveling abroad for periods of over 24 hours.

The origin of the word “tourist” date back to 1292 AD. It

has come from the word “tour”. A number of experts have

defined the term:

“Tourist is a person who makes a journey for the sake of

curiosity for the fun of traveling”.

“Tourists are the voluntary temporary travelers, traveling

in the expectations of pleasure from the novelty and change

experienced on a relatively and non-current round-trip”.

Tourists are:

Persons traveling for pleasure, health and domestic

reason.

Persons arriving in the sea of sea cruise.

Persons traveling for convention

TOURISM: THE INDUSTRY

Tourism emerged as the largest global industry of the

20th century. In the new millennium global economy will be

governed by Technology, Telecommunication and Tourism.

Tourism has a potential to create the maximum number of

jobs. According to an assessment, in India alone, 100 million

additional jobs will be created by the Tourism industry in the

next 25 years. It helps to earn valuable foreign exchange.

The tourism industry comprises of the following main and

distinctive sectors:

Transportation

Tourism industry is heavily dependent on the

transportation industry which comprises of airlines, cruise and

ferry lines, passenger railways, coach and bus travel, car hire.

Thanks to the increase in tourist traffic, over the years, the

range of airline services has considerably, not only in terms of

frequency of flights and number of destinations, but also in

terms of different services, and differing levels of service to

meet different passenger needs. This shows the important role

marketing plays as competition and demand intensifies.

Accommodation

Accommodation includes hotels, ranging from the biggest

international chains recognizable worldwide such as Hilton and

Holiday Inn to small independent establishments. In order to

gain recognition in an increasingly competitive marketplace,

many smaller independent hotels have grouped together,

adopting a consortium approach. Under a central brand name,

they can offer central reservations services, for e.g. and

present a recognizable identity to consumers which enables

them to compete against the larger, more established chains.

Other types of accommodations are also well established in

tourist markets, notably self-catering apartments and club

type complexes.

Tour operators

Tour operators are the firms which specialize in providing

the whole holiday package, incorporating travel and

accommodation needs for the consumer. They range from

highly specialized operations such as Indianvisit.com, who

customize every kind of trip that you can dream of, to large

operators offering services at all different levels to cater for

budget, family, or singles holidays to ‘near’ or ‘faraway’

destinations.

Thomas Cook is one of the best known of such operators;

they also offer travel agency and financial services to their

consumers. An independent local coach firm may also be a tour

operator, and many transportation companies also offer

holiday packages.

Tourism Destination Operators/ Destination Management

This is new category in many senses, as it is an area of

the tourism industry which has seen a massive growth in the

development of theme parks and other types of artificial

tourist destinations in the recent years. However Disneyland

and Disneyworld in America were the forerunners of this

development in tourism marketing, and they have been well

established for decades.

It is due to the recent growth, and the continuing trends,

which make it area which should be considered separately as a

tourism industry. The new Euro Disney theme park in France is

an example of a tourism destination operation. On a smaller

scale, heritage parks which being developed from Britain’s

industrial wasteland such as Wigan Pier, which attracted over

half a million tourists in 1991, and similar attractions now

represent a significant amount of tourism activity.

History

CHARACTERISTICS OF TOURISM INDUSTRY

INFLEXIBILITY

The tourism industry is highly inflexible in terms of

capacity. The number of beds in a hotel or seats on a flight is

fixed so it is not possible to meet sudden upsurges in demand

similarly restaurants tables, hotels beds and flights seats

remain empty and unused in periods of low demand.

PERISHABILITY

An unused hotel bed or empty flight seat represents an

immediate loss of that service as a means of earning profit.

Tourism product is used as a time of availability. It cannot be

preserved. Incase, the tourist cannot visit the place the

opportunity is lost. Hence, this becomes one of its important

characteristics.

FIXED LOCATION

Tourism destinations are fixed locations so effort must be

taken in communicating the facility to the potential consumer.

Relatively large financial investment; every modern tourist

establishment and facility requires large investment frequently

over a long time scale.

RELATIVELY LARGE FINANCIAL INVESTMENT

Every modern tourist establishment and facility requires

large investment, frequently over a long time scale. This

means that the level of risk and the rate of return are critically

important to tourism management.

PEOPLE ORIENTED

Tourism Services are high contact services, as people

interact with people at virtually EVERY stage of the way.

Tourism services are very people-oriented services, and the

service people are plenty and have high contact with the

consumers. The consumer interacts with a myriad of service

people starting from when he books his ticket and throughout

the course of his holiday.

BENEFITS TO CUSTOMERS

Since the economy opened up in 1991, several foreign

chains have entered the Indian market, including Hyatt, Four

Seasons, Hilton, Regent, Radisson and Holiday Inn.  The result

is that the quality of service has improved. The overseas

players have brought in efficient systems and service

standards from Europe and the US. Competition has forced

Indian hotel groups to improve their standards. The customer

has benefited in many ways. The influx of foreign players has

led to major price wars in the industry. In an attempt to woo

customers, Indian hotels have reduced their tariffs

significantly. According to one hotelier, "India has become a

normal market -– like others in the West or in Southeast Asia –

with demand and supply determining the price".

CLASSIFICATION

Tourism may be classified into the following types:

1. INBOUND INTERNATIONAL TOURISM: It means visiting to a

country by non-resident of that country.

2. OUTBOUND INTERNATIONAL TOURISM: It means visiting by the

residents of a country to another country.

3. INTERNAL TOURISM: It means visiting by residents of a

country to their own country.

4. DOMESTIC TOURISM: It consists of inbound international

tourism plus internal tourism.

5. NATIONAL TOURISM: It consists of internal tourists plus

outbound international tourism.

SPECIAL FORMS OF TOURISM

For the past few decades many forms of tourism are becoming

more popular, particularly:

1. ADVENTURE TOURISM

This type of tourism involves travel in rugged regions, or

adventurous sports such as mountaineering and hiking (tramping).

2. CULTURAL TOURISM

It includes urban tourism, visiting historical or interesting cities,

such as Delhi, Amritsar, Mumbai, Banglore, Chennai, Ahmedabad, etc.

and experiencing their cultural heritages. This type of tourism may also

include specialized cultural experiences, such as art museum tourism

where the tourist visits many art museums during the tour, or opera

tourism where the tourist sees many operas or concerts during the

tour.

3. EDUCATIONAL TOURISM

It may involve travelling to an education institution, a wooded

retreat or some other destination in order to take personal-interest

classes, such as cooking classes with a famous chef or crafts classes.

4. GARDEN TOURISM

It means visiting botanical gardens, famous places in the history

of gardening, such as Versailles and the Taj Mahal.

5. HERITAGE TOURISM

It is visiting historical (Rome, Athens, Cracow) or industrial sites,

such as old canals, railways, battlegrounds, etc.

6. HEALTH TOURISM

It means usually to escape from cities or relieve stress, perhaps

for some 'fun in the sun', etc. often to "health spas".

7. MEDICAL TOURISM

It is used for advanced care that is not available in one's own

country, in the case that there are long waiting lists in one's own

country for use of free or cheap health care organisations for what is

illegal in one's own country, e.g. abortion, euthanasia; for instance,

euthanasia for non-citizens is provided by Dignitas in Switzerland.

8. HOBBY TOURISM

Tourism alone or with groups to participate in hobby interests, to

meet others with similar interests, or to experience something

pertinent to the hobby. Examples might be garden tours, square dance

cruises, etc.

9. POP-CULTURE TOURISM

This tourism refers to tourism by those that visit a particular

location after reading about it or seeing it in a film.

10. PERPETUAL TOURISM

It is mainly for wealthy individuals who are always on vacations;

some of them, for tax purposes or to avoid being resident in any

country.

11. PILGRIMAGE TOURISM

Pilgrimage tourism refers to ancient holy places (Rome and

Santiago de Compostela for Catholics, Temples and stupas of Nepal for

the Hindus and Buddhist, Mount Athos or Painted churches of northern

Moldavia for the Orthodox), religious sites such as mosques, shrines,

etc.

12. SPORT TOURISM

Skiing, golf and scuba diving are popular ways to spend a

vacation. Also in this category is vacationing at the winter home of the

tourist's favorite baseball team, and seeing them play everyday.

13. ECO TOURISM

It means sustainable tourism which has minimal impact on the

environment, such as Safaris (Kenya), Rainforests (Belize) and Hiking

(Lapland), or national parks.

14. GAMBLING TOURISM

This tourism refers to tourism to Atlantic City, Las Vegas, Macau

or Monte Carlo for the purpose of gambling at the casinos there.

TYPES OF TOURISTS

One such way of classifying the users is by dividing them into categories

such as General, Sex, Region, Education, etc.

General: Domestic, Foreign Kids, Teens, Youths, Seniors

Students, Executives, Artists Politicians, Movie stars

Sex: Men, Women

Region: Rural, Urban

Education: Literate, Illiterate

Status: Rich, Poor

Profession: Executives, Academics, Sportsmen, Artists

Occupation: White collar, Blue collar.

Another method of classifying users of tourism services is on the basis of

the frequency of usage of services:

Non-users: They lack the willingness, desire and ability

(income & leisure time).

Potential Users: They have the willingness but the marketing

resources have not been used optimally to influence their

impulse.

Actual Users: They are already using the services generated

by the tourist organizations

Occasional Users: They have not formed the habit of traveling

Habitual Travelers: They have formed a habit and avail of the

services regularly.

Marketing Mix

PRODUCT

Product is the combination of tangible and intangible elements. The

tourism product, which is mainly the destination, can only be experienced.

The views of the location travel to the destination, the accommodation and

facility as well as the entertainment at the destination all form the tourism

product.

Thus it is a composite product combination of attraction, facilities

and transportation. Each of these components has its own significance in

the product mix and in the absence of even single components, the

product mix is incomplete.

Components Of Tourist Product.

BENEFIT MEANING WITH RESPECT TO THE TRAVEL AND TOURISM

INDUSTRY

1. CORE BENEFIT

The fundamental benefit or service that the customer is buying

Traveling

2 BASIC PRODUCT

Basic, functional attributes Ticketing, hotel reservation

3 EXPECTED PRODUCT

Set of attributes/conditions the buyer normally expects

Customer friendliness, good food

4 AUGMENTED PRODUCT

That meets the customers desires beyond expectations

Prompt services, comfortable and convenient trip, spectacular sights, music

5 POTENTIAL PRODUCT

The possible evolution to distinguish the offer

Totally customized tour packages, A grade service at every stage

PRICE

Pricing in tourism is a complex process. Pricing includes

the prices of other services like Air travel, Bus, Railways,

Hotels, etc. All are included in tourism package. Pricing also

depends on the Geographic location of the destination.

Pricing also depends on Seasonality. Seasonality is the

most important factor in pricing. To match demand and supply

tourist managers try to get either discount. E.g. Taj is the

tourist attraction in India. Pricing is also based on competitors

pricing. Pricing is also subject to government regulations. E.g.

Air price changes tourism package also changes, if Hotel

charges change then also tourism package changes.

Pricing of the tourist product is a complex matter

because of its composite nature. Geographical location of the

destination affects the pricing decision. At the same time,

seasonality factor and varying demand cannot be overruled.

The objective of pricing in any other firms is to fetch a target

market share, to prevent competition, and to take care of the

price elasticity of demand.

A very important way, in which the travel and tourism

business responded to their highly complex pricing

circumstances, is to operate at two levels. The first level is

corresponds with the marketing strategy, which concerns with

the product positioning, value for the money, long run return

on investments etc. The second level corresponds to the

marketing operations or tactics where the prices are

manipulated to match the current demand and competition.

PLACE

Different distribution strategies can be selected for

Tourism marketing. Tourism as a product is distributed as a

travel. Internet is also used widely. There is also small agents

spread all over the town who plays a role of place. Large travel

companies like Thomas Cook, Cox & Kings, SOTC, etc they act

as a wholesalers and these wholesalers also act as a retailer.

The tourism marketer may not have adequate choice of

the tourist center, because in most of the case the tourist

destinations many be natural, historical attraction. But,

infrastructure facilities, transportation, communication are

important for the development of the tourist center. The major

decision that the tourism marketer takes regarding

distribution is relating to the channel of choice and channel

members. The uniqueness of tourism industry is predominant

position of intermediaries. The two major functions performed

by the distribution system in tourism marketing are:

To extend the number of points of sales or access, away

form the location at which services are performed or

delivered

To facilitate the purchase of service in advance

Different distribution strategies may be selected to

reflect the company’s overall objectives. The middleman may

be tour operators, 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. The latest mode

of reaching the tourist is through Internet. Ticket booking can

also be done through the Internet and payment is made with

credit card.

PROMOTION

Advertising and sales promotion in Tourism can be very

effective when supplemented by publicity and personal selling.

They use electronic, print all sorts of media they use; and it is

highly promoted industry. Public or PR (Public Relation) plays

an important role in tourism. It is also through

recommendation of friends and relatives this is a biggest

promotion.

Creation of awareness is an important factor in the

formulation of marketing mix for the tourism industry. The

promotion task simplifies the activities of informing,

persuading and influencing the decisions of potential tourists.

The promotion mix plays a vital role as the users of service feel

high degree of involvement and uncertainty about the product

and their role in buying process. Some of the important

aspects of promotion are advertising, publicity, sales support

and public relation.

Advertising and sales promotion activities in tourism can

be very effective when supplemented by publicity and personal

selling. Advertising messages may range from subtly attractive

visual messages and symbols designed to appeal and stimulate

travel desire and needs to simple sales announcements

drawing attention to specific product offers.

Word-of-mouth is a very important tool of promotion in

tourism. Research shows that about 80% of the tourist visited

different places on the persuasion of their friends and relatives

and also their own judgments. Brochures are another form of

communication provided by tour operators to stimulate

customers and motivate them to buy. They are used to

demonstrate in pictures and words the images and positioning

of the product and the organizations.

PEOPLE

It plays a most important part in tourism. In people local

people are very important, that how they treat tourist. The

travel agents, guides, staff of travel companies, sales staff, etc

they are the people. Travel Company also like Railways, Air,

etc. is included in people. Normally a tourist assures a tourism

quality like hotels, Travel Company.

The personnel who attend to the needs of the tourists

form an essential ingredient in tourism marketing. The sales

personnel are responsible for dealing with the customer

behind the counter. The airline and transportation crew

interact with customers while traveling. The resort or hotel

representatives enter to the needs of the tourist when they

reach the destination.

The tourist guides, who interact with the customers at

the tourist location, all form the people element in tourism

marketing. These contract persons must be trained on

interpersonal skills as well as knowledge of the product. In the

tourism industry the travel agents and the travel guides are

the two most important people who speak a lot about the

industry. Hence it is imperative that they have to be at their

best at all times. Travel guides especially, are expected to

have a lot of patience, good sense of humor, tact to transform

the occasional tourists into habitual ones, thorough knowledge

of the places, linguistic skills etc.

PROCESS

The operation process of the tourism firm will depend on

the size of the tourism firm. The sequential steps involved in

the delivery of the tourist products are:

Provision of travel information --- The information regarding the

travel is provided at a convenient location where the

potential tourist seeks clarification about his proposed tour.

Preparation of itinerates------ It is a composition of series of

operations that are required to plan a tour.

Liaison with providers of services--- Before any form of travel is

sold over the counter to a customer; contracts have to be

entered with the providers of various services including

transportation companies, hotel accommodation, coaches

for local sightseeing etc.

Planning and costing tours------ Once the contracts and

arrangements are entered into, then the task of planning

and costing the tour, this will depend on the tour selected

as well as individual requirements.

`Ticketing----- The computerized reservation system has in

recent years revolutionized the reservation system for both

rail and air travel.

Provision of foreign currency and insurance--- In case of foreign

travel the final task provide foreign currency as well as

insurance

PHYSICAL EVIDENCE

The tourist attraction, which is an expensive for the

customer must be tangibilised with the help of tangible items

like, comfortable seats while traveling, layout, and design of

the resort, natural service scope, etc. the sign posts that

indicate directions, route maps, information regarding rules

and regulations of the tourist spot and the sign regarding the

public utilities like toilets, telephone booth also form a part of

the physical evidence.

Printed matters such as brochures also play an important

role in the development of tourism. As the product, in tourism

is intangible. There is a need to describe fully the product,

which is done by providing an elaborate brochure, which shows

how different elements of the programmes are carefully

planned to include all necessary information to make holiday

establishes expectation of quality value for money, product

image and status, which must be matched when the product is

delivered.

SEGMENTATION

Though there are a number of bases for segmentation of tourists, one of the most important is Lifestyle. Traveling decisions are fantastically influenced by changing lifestyles. They are also affected by other factors such as level of income, availability of leisure time, etc.

BASE OF SEGMENTATION

CATEGORIES

Holiday Mass marketPopular marketIndividual market

Demand PrimarySecondaryOpportunity

Geography InternationalOn the basis of regions, cities, etc.

Psychography LifestylePersonality motiveKnowledge

Demography AgeSexReligion

Socio-economic Rich, PoorRural, UrbanLiterate, Illiterate

Purpose Business TravelCultural TourismCommon Interest Convention

Age TeensYouthSeniors

Such segmentation is useful when deciding the offerings to target a particular segment. For example,

The mass market consists of vacationists that travel in large groups and

prefer all-inclusive tours. They are generally conservative.

The popular market consists of smaller groups going on inclusive or

semi-inclusive tours. This group includes pensioners and retired

people.

The individual market consists of chairmen, senior executives, etc.

As the lifestyle changes, consumption of services might change. For

example, a newly married couple might prefer romantic holidays, but

once they have children they would prefer family vacations where there

are plenty of activities to entertain kids. Teens and youth might prefer

adventure holidays whereas senior citizens would probably prefer more

relaxing vacations.

SWOT ANALYSIS

STRENGTHS

India’s geographical location,a culmination of deserts, forests, mountains and beaches:

India is not only a vast country but also a beautiful country with world famous natural locations, which attracts lots of foreign tourist everyday. India has all types of seasons at the same time because of its tropical nature, as you will find the climate hot, humid, cold and warm all at the same time in different locations. Also its location is not very out of reach but easy to travel, as there are many modes of transport to reach here.

Diversity of culture, a blend of various civilizations and their traditions:

India’s diversity is its greatest strength. There is so much to explore in India. One cannot be tired of exploring its diverse culture, heritage and locations. The different languages, dialects and other religious and cultural customs and traditions are all the sources of attraction in India.

WEAKNESSES

Lack of adequate infrastructure:

It is a major drawback. It is not the case of less money but the money is not being utilized in the right places and in the right manner. The airlines in India, for example, are inefficient and do not provide basic facilities at airports. The road condition in India is very bad.

An intolerant attitude among certain sections of people:

This is among the people who do not like the foreigners and their entry into the Indian Cultures as they feel that they will change the Indian Culture and attitude and replace it with foreign culture.

No proper marketing of India’s tourism abroad:

Foreigners still think of India as a land of snake, villages, beggars and elephants. The Indians have not made any efforts to change this image and this has proved very costly as foreigners still think of Indians as illiterates and narrow-minded

OPPORTUNITIES

More proactive role from the government of India in terms of framing policies:

The government is supporting India tourism industry with the recent appointment of Mrs. Renuka Chaudhary a very intelligent and practical woman who would like to develop India tourism. The Indian tourism industry should take this as an opportunity and push forward its plans.

Allowing entry of more multinational companies into the country giving us a global perspective:

This is going to develop and build the confidence in the minds of the foreigners who would like to explore India.

Growth of domestic tourism:

Indian tourism will only develop if the roots are strong. So if the Indians themselves travel around India the foreigners will feel confident to come to India.For eg: Thomas Cook says “Travel Now Pay Latter.” Affordable traveling at leisure, plenty of job opportunities.

Threats

Economic conditions and political turmoil in the other countries affects tourism:

As a result of this people are afraid to venture outside their own homes for fear of terrorist attacks and threats to their lives.

Aggressive strategies adopted by other counties like Australia, Singapore in promoting tourism:

There are hardly any tourists who confidently come to India and if the other countries offer better packages and places then there is no reason why the tourists should visit India

The important task is to get tourism accepted as an instrument of development and national integration. For this it is necessary to create awareness of India’s charms as a tourist paradise and simultaneously addressing the important issue of toning up infrastructure and then getting down to marketing the product in a pragmatic and result oriented manner. All

segments of the tourism trade should get together ands hammer out a strategy taking into account the ground realities and demands of the future.

PEST ANALYSIS

Environmental influences can be analyzed by using the PEST analysis.

Political/Legal

Political factors are the main driving force of the industry. Govt. support & co-operation to Indian Tourism Industry, railways and roads, hotel industry, airline industry, tourist operators. Downfall of tourism industry because of unconducive political environment e.g. Kashmir, Law is different for different country & is the major determinant for the industry. “Tax paid by tourists in India is the highest in the world. Indian hotels charge about 40% tax compared to other Asian countries where it varies between 3% and 6%".

Economic:

The criteria here is the more the people spend the more the industry grows. As we are concentrating on the International tourists, this has led to the tourism boom. Increase in spend has led to increase in the number of luxury hotels, & increase in air industry.

Social:

The general perception for tourism destruction of the social fabric of a place. The more the tourists coming at the place the more the risk of that place loosing its identity.

Technology:

Better technology in cheaper cost to remote and inaccessible area. It can help the country to get connected to the world. It is very much necessary to have better technology to have that place on world tourist map.

GOVERNMENT POLICES

The New Tourism Policy released in May 2002 has outlined the

following policy initiatives for the tourism sector:

1. The new policy is built around the 7-S Mantra of Swaagat

(welcome), Soochanaa (information), Suvidhaa (facilitation),

Surakshaa (security), Sahyog (cooperation), Sanrachnaa

(infrastructure) and Safaai (cleanliness).

2. The new policy envisages making tourism a catalyst in employment

generation, wealth creation, development of remote and rural

areas, environment preservation and social integration. The policy

also aims to spruce up economic growth and promote India’s

strengths as a tourism destination that is both safe and at the same

time exciting.

3. The policy proposes the inclusion of tourism in the concurrent list of

the Constitution so as to enable both the central and state

governments to participate in the development of the sector.

4. No approval is required for foreign equity of up to 51 per cent in

tourism projects. Enhanced equity is considered on a case-to-case

basis. NRI investment is allowed up to 100%.

5. Approvals for Technology agreements in the hotel industry are

available on an automatic basis, subject to the fulfilment of certain

specified parameters.

6. Concession rates on customs duty of 25% for goods that are

required for initial setting up, or for substantial expansion of hotels.

7. 50% of profits derived by hotels, travel agents and tour operators in

foreign exchange are exempt from income tax. The remaining

profits are also exempt if reinvested in a tourism related project.

8. Approved hotels are entitled to import essential goods relating to

the hotel and tourism industry up to the value of 25% of the foreign

exchange earned by them in the preceding licensing year. This limit

for approved travel agents/tour operators is 10%.

9. Hotels located in locations other than the four major metro cities

are entitled to 30% deduction from profit, for a ten-year period.

10. The expenditure tax has been waived in respect of hotels located

in the hills, rural areas, places of pilgrimage or specified place of

tourist importance.

TOURISM IN INDIA

India is one of the popular tourist destinations in Asia. Bounded

by the Himalayan ranges in the north, and surrounded on three sides

by water (the Arabian Sea, Bay of Bengal, and the Indian Ocean), with

a long history and diverse culture, India offers a wide array of places to

see and things to do. In 2004, foreign tourists visiting India spent 15.4

billion USD - the ninth highest in the world. India is also ranked among

the top 3 adventure tourism destinations. One can expect to spend

about $1,750 in 2005 dollars for a two week visit, staying in

accommodations equivalent to Western ones.

Perhaps India's best-known site is the Taj Mahal, one of the

world's greatest architectural achievements. It was built between 1631

and 1653 by Emperor Shah Jahan in honor of his wife, Arjumand Banu,

more popularly known as Mumtaz Mahal. The Taj Mahal serves as her

tomb.

One of the popular tourist circuits is called the Golden Triangle:

the cities Delhi; Agra (site of the Taj Mahal); and Jaipur. Delhi is

approximately 200 kilometers away from Agra, and 250 kilometers

from Jaipur.

India also has a large variety of protected wildlife. The country's

protected wilderness consists of 75 National Parks of India and 421

Sanctuaries, of which 19 fall under the purview of Project Tiger. Its

climatic and geographic diversity makes it the home of over 350

mammals and 1200 bird species, many of which are unique to the

subcontinent. Some well known national wildlife sanctuaries include

Corbett, Kanha, Sariska, Periyar, Ranthambore, and Bharatpur.

Some of the popular tourists places are as follows:

JAMMU AND KASHMIR-THE LAND OF HEAVENS

The Manasbal Lake near Srinagar, Jammu and Kashmir is 2000

meters above sea level.Tourist destinations in Jammu and Kashmir

include:

1. Srinagar

2. Jammu

3. Leh

4. Amarnath

5. Vaishno Devi

Other cities of interest in Northern India include Gwalior,

Khajuraho, Varanasi, Mathura, and Haridwar.

DELHI

Delhi,known in India as the "Lotus Temple", the Bahá'í House of

Worship is one of the most famous landmarks in the Delhi.

Delhi, the capital of the vast, mystic subcontinent that is India. A

fine blend of old and new, ancient and modern in every stream of life is

the soul of Delhi. A melting pot of cultures and traditions, religions and

castes Delhi is true to its democratic nature. Delhi has ruled always

from the mythological days to the present, the Aravali ridges and the

Yamuna river stand a mute witness to it. The rulers left behind their

trade marks in the architecture. Tughlakabad fort and the Qutab Minar,

the Jama Masjid and the Lotus temple, The Humayun's tomb and the

Red Fort, and India Gate and the Magnificent President's house. Delhi

is famous for its wide roads and crisp winters. One of the few places in

India where colours of nature changes with the seasons. Kerala to

Kashmir and from Gujarat to Assam all the mouth watering delicacies

and shopping goods are found in Delhi. The cosmopolitan nature of the

city has only added to the beauty and glory of it. Big gardens, wide

roads, ancient structures, and power of politics is what Delhi is all

about.

GOA

The sunny beaches of Goa attracts millions of tourists every

year.Goa is another popular destination, famous for its excellent

beaches, churches, and temples.

Goa, a tiny emerald land on the west coast of India situated

between the borders of Maharastra and Karnataka, is better known to

the world at large as the former Portuguese enclave on the Indian soil.

With the rule of the Portuguese for over 450 years and the

consequential influence of the Latin culture, Goa presents a somewhat

different picture to the foreign visitor than any other part of the

country. Not only the proportion of Christians (almost all of whom are

Catholics) in the total population of Goa much higher than that

obtaining in most of the other States; the general way of living is also

markedly different. Western influence is evident in the dress and food

habits, and the general life of the people is quiet and peaceful. A

striking feature of Goa is the harmonious relationship between the two

principal religious communities, the Hindus and the Catholics, who

have lived together peacefully for generations.

RAJASTHAN-THE LAND OF KINGS

Rajasthan has a rich history and culture making it one of the

most popular tourist destinations in India. Shown here is the Hawa

Mahal in Jaipur, Rajathan.Rajasthan, the "Land of the Kings", is one of

the most attractive tourist destinations in Northern India. The vast

sand dunes of the Thar Desert attract millions of tourists from around

the globe every year. Major visitor attractions in Rajathan include:

1. Jaipur - The capital of Rajasthan, famous for its rich history and

royal architecture.

2. Jodhpur, fortress-city at the edge of the Thar Desert, famous for its

blue homes and architecture.

3. Jaisalmer is famous for its golden fortress.

4. Barmer and surrounding areas offer perfect picture of typical

Rajasthani villages.

5. Bikaner is famous for its medieval history as a trade route outpost.

6. Mount Abu is also one of the world famous tourist place.

```

ORISSA-SPIRIT OF Buddhism

Orissa has been a preferred destination from ancient days for

people having interest in spirituality, religion, culture, art and beauty of

the nature. Ancient and medieval architecture, pristine sea beaches,

nature at her beautiful best, the classical and ethnic dance forms and a

variety of festivals, all in combine attract tourists from far off places to

explore this state to a have a divine exposure of love and hospitality.

Orissa has kept alive Buddhism and the Buddha in its ancient

womb. The spirit of Buddhism still haunts the very air of Orissa. Rock-

edicts that have challenged time stand huge and over-powering by the

banks of the river Daya. The silent stones sing out songs of peace and

non-violence. The torch of Buddhism is still ablaze in the sublime

triangle at Udayagiri, Lalitgiri & Ratanagiri, on the banks of river

Birupa. The surrounding hills of Langudi and Kayama stand as mute

witness to the quirks and twists of history. Precious fragments of a

glorious past come alive in the shape of stupas, rock-cut caves, rock-

edicts, excavated monastries, viharas, chaityas and sacred relics in

caskets. Rock-edicts of Ashoka are a bonus for your eyes.

TAMIL NADU

Tamil Nadu has a rich culture and offers a wide selection of

temples famed for their architectural beauty. Some of the more

popular temple tour destinations include:

1. Chennai - The capital of Tamil Nadu has the second longest beach in

the world, the Marina Beach.

2. Madurai is known for the beautiful Meenakshi temple.

3. Rameshwaram is famous for the longest corridor in the world.

4. Kanyakumari, located at the tip of India, is at the confluence of the

Bay of Bengal, Arabian Sea and the Indian Ocean. Recently a

massive statue of Thiruvalluvar has been installed here.

5. Kumbakonam, known for the numerous temples in the town. The

Mahamaham festival is held here once in every twelve years and

attracts millions of devotees to the place.

6. Tiruchirapalli known for its Akhilandeshwari temple and Rockfort

temple.

7. Thanjavur has the famous Brihadeeswara temple.

8. The famous hillstations Kodaikanal and Nilgiris offer the visitors a

welcome relief from the usually hot climate in the state.

KARNATAKA

The southern state of Karnataka offers:

1. Bangalore, the IT capital of India, is also significant for its history;

2. Mysore, about 140km from Bangalore, has palaces, KRS Dam,

several temples, a Hindu temple atop Chamundi hills;

3. Srirangapatna, where nearby fortresses can be found (Tipu's);

4. Hampi the city of ruins (1500's when the Muslim kings destroyed

the prosperous Vijayanagar empire);

5. The Belur and Halebid temples are famed for their sculptural

beauty;

6. Sravanabelagola has a Jain temple dedicated to king Bahubali. The

statue is massive and a Maha Masthaka Abhishekham performed

one every year, attracts a huge number of pilgrims;

7. Sringeri, located in the western ghats, has a wonderful temple

dedicated to Sarada devi;

8. The Western Ghats offer many other places of exceptional beauty

like Agumbe, Horanadu etc.;

9. Madikeri, Kodagu, Talakaveri, Kemmanagundi all places of immense natural beauty.

KERALA-GOD'S OWN COUNTRY

Kerala, nicknamed as "God's own country", is one of the most

beautiful states in Southern India. Shown here is Munnar, in

Kerala.Kerala is an evergreen lush state, tucked away in the southern

corner of India. It is one of the most haunted visits of tourists in India.

The state has its own tourism brand name - "God's Own Country",

which has super-brand status. Kerala is famous for its backwaters and

lagoons. Kerala is also known for its Ayurveda. The state was nicked as

one of the "10 paradises of the world" by the National Geographic

traveller. The government of Kerala offers tourism packages related to

Ayurveda also. The major attractions in Kerala include:

1. Backwaters, lagoons, tropical beaches and spice farms.

2. Hill stations at Thekady and Munnar

3. Enchanting waterfalls at Athirapilly and Vazhachal

4. An exquisite flora and fauna at its wildlife santuries.

5. Its historical monuments.

6. The housboats of Alapuzha.

MAHARASHTRA

Maharashtra with its diverse

geographical features provides a range

of tourist centres. The state has a 720-

km coastline dotted by rugs standing

as mute witnesses down the ages to

the march of warrior kings, foreign

trading vessels and invaders from

across the seas.

The beauty of Maharashtra is in its forts, caves and temples, so

much so that it is called 'Dagd-Ancha Desh', meaning the Land of

Rocks. It has a lot to offer to a visitor, its features are such that any

tourist will definitely find something of his interest from among its

beaches, forts, caves, temples, cities, wildlife sanctuaries, bird

sanctuaries etc. The intricately carved caves of Ajanta, Ellora and

Elephanta highlight the Indian heritage and the spellbinding Indian

Culture. Religious places like Pandharpur, Nashik, Shirdi,

Trimbakeshwar, Tuljapur, Ganapatipule, Bhimashankar etc are a

refreshing experience and make a fascinating whole.

Mumbai, the capital, can well claim to be (after Kolkata) the

second cultural centre of India. Also known as the First city of India, it

is one of the world's truly great cosmopolitan metropolises. Being the

economic powerhouse of India Mumbai is the most affluent and

industrialised city in the country today. Its tradition of glamour and

showbiz makes it the city of dreams. Lively and pulsating, Mumbai is

India's answer to Hollywood, producing more films each year than any

other county in the world. It is also the centre of a healthy theatre

culture.

MAJOR PLAYERS IN TOURISM

SOTC - A DIVISION OF KUONI TRAVEL INDIA LTD.

(VISITED)

A pioneer and market leader in outbound group travel, this

division markets and operates foreign holiday packages under the

SOTC World Famous Tours brand in India and in the big NRI markets of

the Middle East, USA and UK. It is also active in the Incentive Tours and

the Trade Fair Tours segments. SOTC operates from 26 branches with

over 400 employees in India.

Highlights of SOTC

1. Pioneered Package Tours in India. Today, India's largest Outbound

Tour Operator with a distribution network of 116 points across the

country.

2. First to introduce package tours to NRI's. Today, 13 General Sales

Agents in 14 countries abroad: USA, Canada, UK, UAE, Saudi Arabia,

Bahrain, Kuwait, Oman, Kenya, Qatar, Tanzania, Hong Kong and

Singapore.

3. Turnover in excess of Rs.200 crores.

4. Has a special tour for Pure Vegetarians and Jains.

5. Launched Happy Holidays in 1997. Customers Holiday Abroad and

Pay Later in easy monthly installments.

6. Has a Customer Club called SOTC Holiday Club patronized by over

20,000 frequent travelers.

7. Introduced Namaste India Holiday Club in year 2002 giving

opportunity to NRI's to discover India.

8. Awarded for Outstanding Performance in South Asia at the World

Travel Mart 1999.

9. Honoured by Switzerland with the renaming of Engel berg town as the '

SOTC Indian Village '.

VISIT REPORT

In the afternoon conversation started with Mr. Hemant

Manchekar, Assistant Manager, Retail Service of SOTC. Speaking about

Tourism, he explained us how important it is to provide best services and

make the tourist satisfied.

According to his views, tourism sector is fast booming resulting

in market competition among tour operators, he spoke about various

services offered like individual tours, group tours to various destinations

like Europe, Australia, New-Zealand, Egypt, China and so on , also about

the special packages that are on discounts for families individuals

packages as per the schemes.

Further about the segmentation of the company, he informed us

that they have to look at the market level, strategy, age-group, seasons,

and so on. They provide the customer services as per the tourists’ desires.

About the additional value to tourists, he said that they apply

various strategies, like wishing them on the occasions like Birthdays,

aniversies and so on. And also providing extra facilities and special

packages to regular customers. He informed about their Strength of the

company that “Sky is their Limit” as they are based on multinational

support from Swiss company, they have huge turnover and has captured

almost a big part of the tourism industry.

In India, their major competitors being Thomas Cook, Coxs And

Kings, Raj Travels and so on. Asking about the competitors strategy, he

replied that they provide various incentives and facilities like Group Tour,

Incentive Tour, Awards, Cricket Matches, corporate Travel. Etc. are

provided to customers.

At last, talking about the Indian economy, he stated that, it is

resulting in higher growth level of economy. Also other important factors

contributing to rising tourism sector are fall in air fares, ease getting of

visas, embassy support and give-take relations.

(OTHER PLAYERS/COMPETITORS OF SOTC)

COX & KINGS

Cox & Kings is the longest established travel company in the

world. Its distinguished history began in 1758 when it was appointed as

general agents to the regiment of Foot Guards in India under the

command of Lord Ligonier.

By 1878, C&K were agents for most British regiments posted

overseas, including the Royal Cavalry, Artillery and Infantry, as well as

the Royal Wagon Train and the Household Brigade. The Royal Navy

was next and in 1912, The Royal Air Force came under its wings.

Between 1750's and 1950's, Cox & Kings was witness to an

exciting era in Indian history, and, in its own way, helped to shape it. In

1947, the British administration departed, but bound by strong ties to

India, Cox & Kings stayed on and flourished. Today, Cox & Kings is a

premium brand in all travel related services in the Indian subcontinent,

employing over 800 trained professionals.

THOMAS COOK

Thomas Cook is one of the world's leading international travel

and financial services groups and serves over 20 million customers a

year. They provide services to customers at 4,500 locations in more

than 100 countries and employee over 20,000 people.

The Thomas Cook Holiday comes with a 150-year-old

guarantee of eternally sunlit memories. They couldn't expect any less

from the people who invented travel for leisure. They offer the world's

most enjoyable holidays, to exotic destinations in India and abroad

where everything is taken care of from beginning to end. Customers

don't have to do a thing except, of course, have a good time.

They strategic mergers and alliances with the world's leading

leisure travel agencies allow the company to offer the Indian travelers

a choice of world-class international holidays. The tempting array of

choices includes budget tours with Cosmos; resort holidays with Club

Med and luxury cruises with Star Cruises, Cunard and others. For those

customers traveling in India, they provide the entire gamut of services

from customizing guided tours to arranging theme evenings.

KESARI TOURS

Established in 1984, Kesari Tours is a premium travel company,

which offers world-class holidays in India and around the world. Kesari

have perfected their tour itineraries to meet the special needs of the

Indian tourist abroad.The motto of organization is 'No compromise

on quality'.

At Kesari Tours, they have made a promise to us; if they make a

promise to their customers, they honor it. They believe in honest,

transparent deals. No hidden costs and no compromise on sightseeing.

They strive for 100% satisfaction of tourists. Immense goodwill. That's

what they earned out of their beliefs.

Whether travelers visit their corporate office or any of their

branches across Maharashtra and India, they will experience the same

level of service and commitment. All their business associates, branch

offices and preferred sales agents are connected online and each one

has complete access to the sophisticated reservation system for up to

date information.Totally dedicated, hard working team strives for total

customer satisfaction. Their team has a way of winning over hearts

effortlessly with their professionalism and warm behavior.

At Kesari tours, from youngsters to senior citizens, from couples

to families, everyone enjoys their tours to the fullest. Their personal

touch ensures maximum repeat passengers. Many lifetime friendships

begin on a Kesari tours holiday.

RAJ TRAVELS

A passion for Travel & a vision for creating innovative travel

packages, two driving forces saw the beginning of a Travel Company in

a very modest way in Mumbai’s Masjid Bunder.

Raj travels started with conducting & managing tours to Srinagar

(the Switzerland of India) & to South India. The aggressive marketing

combined with several add-on features like inclusions of maximum

sightseeing, using top class hotels, catering to good food, innovative

ideas, a pre-departure get-together, games on tour, library, mobile T.V

& intercom, were some of the inclusions, which were unheard of. This

was their Unique Selling Point & it spoke for itself. A quality product

had to be with a high price tag. Customers chose it.

In 3 years time (1979), Raj Travels introduced International tours.

PATTAYA, BANGKOK, HONGKONG, MACAU, MANILA, SINGAPORE,

PENANG, and KUALA LUMPUR-the maiden tour was fully packed with 44

people!!! A big number in those days. The tremendous success &

satisfaction of this tour paved way for Raj to hold its banner high & it

continues to do so till date. They are proud to say that year after year

they have improved on the product, adding new destinations, new

attractions, pro-active marketing, & building customer confidence.

The growth & success can be attributed to its constant

improvisation and introducing new features - be it the choice of Hotels,

choice of Airlines, or choice of Destinations. Awareness of the growing

trends in travel trend, up to the demands of the more educated and

savvy travelers.

Orlando, Madame Tussauds, Kukenhof Gardens, Fantasia land,

Holiday Park, TGV train ride, Hovercraft ride Safari, Helicopter ride,

Balloon ride, Ski flight, Dinners at Planet Hollywood, Hard Rock Café,

Rainforest Café, James Bond Breakfast at Schilthorn, Mt Titlis, Mt Rigi,

Dinner on 107th floor of World Trade Center, Para Sailing, Submarin

ride, Ride on MTR, the Singapore Zoo, Night all these and more were

brought to the discerning traveller, only in a Raj Tour.

BOOMING TOURISM INDUSTRY

The year 2004-05 saw tourism emerging as one of the major

sectors for growth of Indian economy, the foreign exchange earnings

increased from Rs. 16,429 crore to 21,828 crore up to December.

Similarly in the last year, tourism industry registered a growth rate of

17.3% in foreign tourist arrivals, which has been the highest in last 10

years. Foreign exchange earnings grew at an even higher rate 30.2%.

India's tourism industry is thriving due to an increase in foreign

tourists arrivals and greater than before travel by Indians to domestic

and abroad destinations. 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 has also increased. Some tourists

come from Middle East countries to witness the drenching monsoon

rains in India, a phenomenon never seen in desert climates.

Domestic tourists are also fueling the industry's revival. Many of

them escape from the summer heat on the plains to resorts in the

Himalayan Mountains. One of the major beneficiaries this year is

Kashmir, where a cease-fire between India and Pakistan has reduced

violence, if not completely, at least enough to help revive the state's

sagging tourism industry.

Among the most favoured tourist destinations in India, Kerala for

its scenic beauty, Agra for Taj Mahal, Khujraho for its sculptures and

temples, Goa for its beaches and some pilgrimages are the most

important.

Interesting feature of this growth is that it 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. Even the disastrous tsunami

didn't affect India's tourism industry, as tourist arrivals in India rose

23.5 percent in Dec 2004 and tourist arrivals crossed 3 million mark for

the first time in 2004. The disaster was expected to have a negative

impact on India's tourism in terms of large-scale cancellations of

tourists to India but nothing of that sort was seen.

REASONS FOR THIS BOOM

There could be several reasons for the buoyancy in the Indian

tourism industry. First, the upward trend observed in the growth rate of

Indian economy has raised middle class incomes, prompting more

people to spend money on vacations abroad or at home. Also, India is

booming in the information technology industry and has become the IT

center. Aggressive advertising campaign "Incredible India" by the

government has also had contribution in changing India's image from

that of a land of snake charmers, and sparking new interest among

overseas travellers.

TOURISM’S CONTRIBUTION TO INDIAN ECONOMY

It is not hidden that tourism is among India's important export

industries. Even with comparatively low levels of international tourist

traffic, tourism has already emerged as an important segment of the

Indian economy. Tourism also contributed to the economy indirectly

through its linkages with other sectors like horticulture, agriculture,

poultry, handicrafts and construction. Foreign exchange earnings from

tourism during 2003-04 were US $ 3,533 million ( Rs 16,429 crore).

Besides being an important foreign exchange earner, tourism

industry also provides employment to millions of people in India both

directly and indirectly ( through its linkage with other sectors of the

economy.) It is estimated that total direct employment in the tourism

sector is around 20 million.

MEASURES TAKEN FOR TOURISM PROMOTION

Recently, Indian government adopted a multi-pronged approach

for promotion of tourism, which includes new mechanism for speedy

implementation of tourism projects, development of integrated tourism

circuits and rural destinations, special capacity building in the

unorganized hospitality sector and new marketing strategy.

A nation wide campaign, for creating awareness about the

effects of tourism and preservation of our rich heritage & culture,

cleanliness and warm hospitality through a process of training and

orientation was launched during 2004-05. The aim was to rebuild that

sense of responsibility towards tourists among Indians and re-enforces

the confidence of foreign tourist towards India as a preferred holiday

destination. More than 6500 taxi drivers, restaurant owners and guides

trained under the programme.

Government also took several other initiatives to promote Indian

tourism industry and increased the plan allocation for tourism i.e. from

Rs 325 crore in 2003-04 to Rs. 500 crore in 2004-05. Road shows in

key source markets of Europe, Incredible India campaign on prominent

TV channels and in magazines across the world were among the few

steps taken to advertise Indian tourism. In addition a task force was set

up to promote India as prominent health tourism destination.

However, in order to attract more visitors, India still needs to

upgrade its airports, roads and other infrastructure to global standards.

Even with the recent surge, tourist arrivals are just a mere percentage

of those in such popular Asian destinations like Bangkok and Thailand.

RECENT DEVELOPMENT IN TOURISM INDUSTRY

India Tourism office at Tokyo won two International Awards in

Tour Expo held at Daegu in Korea for excellent tourism promotion.

Indian Pavilion won the Best Booth Design Award as well as Best

Folklore Performance Award competing with major players in tourism

such as China, Japan, Thailand, Malaysia and Canada.

The theme of pavilion was the Buddhist pilgrimage in India. Multi

promotional activities undertaken by Tokyo office drew a large crowd

to India Pavilion, which added colours to the entire travel show. The

Korea’s leading newspapers published on the front page the Incredible

India booth’s photographs highlighting various aspects. The live Yoga

performance and Indian traditional snacks at the pavilion were enjoyed

very much by the visitors.

ARTICLE

TOURISM – THE FIRST COMMERCIAL VENTURE.

A religious Englishman called Thomas Cook in 1841 arranged, for

a fee, a one –day rail excursion from Leicester to Lough borough for

540 members of a temperance league. Thus the first bona fide travel

agent was Thomas Cook.

While Cook himself did not make a profit on this first venture, he

was a man of vision and was convinced that there was a need for a

skilled “travel arranger”. So by 1845 he had become the first full-time

travel agent, operating train excursions from Leicester.

The next year he chartered a train and steamer for an excursion

to Scotland for 330 people. In 1851 Cook arranged ocean steamship

travel and accommodations for more than 1,50,000 visitors to the

World Exposition in London and in 1856 he operated the first escorted

“grand tour” of Europe. Tours to Europe and Middle East were also

conducted and, in 1872, the first around the world tour was conducted.

CONCLUSION

Wars, tsunami and bird flu etc. are serious problems that have a

significant affect on tourism. But, these are not the elementary

problems. Infrastructure is one primary problem to many industries in

India. Infrastructure in India has improved but still it is far from what is

required to become a world tourist destination. Another one is the

infamous corruption of India, which is a major obstacle to the tourism

industry.Resolving these issues will itself help in overcoming other

smaller problems mentioned above.

Government of India has a target of 10% GDP growth rate, with

the present growth rate at around 8%. To maintain such a high growth

rate and increase the employment opportunities also at the same rate,

it has to exploit the highly potential and growing sectors like Tourism.

And, to fully exploit these sectors, problems related to these sectors

should be addressed along with the fundamental issues like

infrastructure and corruption.

BIBLIOGRAPHY

1.WEB SITES:

www.google.com

www.indiantourism.com

2.Newspapers :

Times of India

DNA

3.Magazines:

Business World

India Today

4. Books:

Indian tours: A Great Pleasures