Comparing Domestic and Foreign Tourists Economic Impact in Desert Triangle of Rajasthan

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1 Dynamic Research Journals (DRJ) Journal of Economics and Finance (DRJ-JEF) Volume ~ Issue (January, 7) pp: 7- Comparing Domestic and Foreign Tourists Economic Impact in Desert Triangle of Rajasthan Mala Sharma Research Scholar, J.N.V.U. Jodhpur. Received November, 6; Accepted December, 6; Published January 7 The author(s) 7. Published with open access at Abstract:- The study compared the economic impact of domestic and foreign tourism through tourists expenditure pattern in Desert Triangle of Rajasthan. One way Anova test has been used to compare the tourists expenditure on five primary sectors accommodation, food & drink, transportation (within the city), entertainment, shopping. Results revealed the rejection of hypothesis for overall level and separately on accommodation, food & drink, entertainment and acceptance of hypothesis for transportation (within the city), shopping sector. Key words: Desert Triangle, One way Anova test, Tourists expenditure, Accommodation, Food & drink, Transportation (within the city), Entertainment, Shopping. I. Introduction Tourism is an activity involving a complex mixture of material and psychological element. The material ones are accommodation, transportation and the attraction and entertainment available. The psychological factors include a wide spectrum of attitude and expectations. (V smith, 977). Tourism is an important social and economic phenomenon being a key driver of socio-economic progress through the creation of jobs and enterprises, infrastructure development and the export revenue earned. The First Prime Minister of India, Pandit Jawaharlal Nehru was the first person that noticed the importance of tourism in the country. According to him tourism is not only an instrument of earning foreign exchange but also a mean of seeking international cooperation, understanding and peace between the nations The World Travel and Tourism Council calculated that tourism generated 8. lakh crore (US $ million) or 6% of the nation's GDP in 5 and supported 7.5 million jobs, 8.7% of its total employment. The sector is predicted to grow at an average annual rate of 7.5%. Tourism has a variety of economic impacts. The most direct effect occurs within the primary tourism sectors lodging, restaurants, transportation, amusements and retail trade. Through secondary effects tourism affects most sectors of the economy. This study aims to compare the economic impact of domestic and foreign tourism through tourists expenditure patterns in the Desert Triangle of Rajasthan. Main Objectives of the Study:- To compare the economic impact of domestic and foreign tourism in the desert Triangle of Rajasthan. To analyse the direct effects of domestic and foreign tourism on the economy of the Desert Triangle of Rajasthan. To study the contribution of domestic and foreign tourism on the primary tourism sector like accommodation, food and drink, transportation, entertainment and shopping. Hypothesis:- There is no statistically significant difference between the economic impact of domestic and foreign tourism in the Desert Triangle of Rajasthan. The hypothesis has five dimensions as par the five sectors of tourist industry: Accommodation Food & Drink Transportation (within the city) Entertainment Shopping 7 P a g e

2 II. Research Methodology In this research study, a comparative study of domestic and foreign tourism has been done to compare the contribution of both of the tourism in the region of "Desert Triangle". It is an extremely simple approach and captures the essential elements of an economic impact analysis by using the expenditure patterns of domestic and foreign tourists on core industries of tourism. The study covers estimates of the direct impact of domestic and foreign tourists' expenditures primary tourism sectors accommodation, food and drink, transportation, entertainment and shopping. To compare the economic impact of domestic and foreign tourism, "Travel Expenditure Pattern" is used by the researcher. The prosperity that the tourists bring to a destination largely depends upon the amount of expenditure done by the tourists at the destination. To collect the expenditure pattern of both the tourists in the study area, a sample survey was conducted at the visitor places of three districts Jodhpur, Jaisalmer and Bikaner. To collect the primary data a survey questionnaire was used. On the basis of this structured questionnaire, qualitative and quantitative aspects of the survey have been presented in the study, based on the data collected. Random sampling method was used for the primary data collection. Domestic and foreign tourists were chosen as respondent to give their expenditure pattern. The total number of sample was, including both domestic and foreign tourists. Both domestic and foreign tourists were equal in numbers (5: 5). Processed data were analyzed with the help of average of every sector s expenditure. One way Anova test has been used to test the hypothesis. Study Area:- Owing to its unique topography, history and culture, customs and relatively peaceful environment, Rajasthan has been able to attract a large number of tourists. Desert triangle of Rajasthan has been chosen as the study area. The "Desert Triangle" is the set of three districts Jodhpur, Jaisalmer and Bikaner, located in the desert belt of Rajasthan. III. Research Analysis Table : Average expenditure per tourist per day (domestic and foreign tourists) Average Expenditure of different sectors Sectors domestic Tourists Foreign Tourists Accommodation Food & Drink Transportation Entertainment Shopping Total The above table shows that: On an average a domestic tourist spent Rs per day on accommodation services where as a foreign tourist spent Rs. 8.6 per day. About Rs spent a domestic tourist on food and drink sector per day, while a foreign tourist spent Rs On transportation (within the city) a domestic tourist spent Rs. 9.5 where as a foreign tourist spent Rs..7 per day. On an average a domestic tourist spent Rs.8.66 per day on entertainment sector while a foreign tourist spent Rs..66 per day. Around Rs. 5. was spent by a domestic tourist per day, whereas, Rs was spent by a foreign tourist. As a total of all expenses, average expenditure of a domestic tourist was Rs. 6. per day, while Rs was the average expenditure of a foreign tourist. 8 P a g e

3 7 6 5 Chart : Average Expenditure per tourist per day (domestic and foreign tourists) Average Expenditure in different sectors Foreign Tourists Average Expenditure in different sectors domestic Tourists Hypothesis testing: F value Sectors Table : calculated F value of different sectors: Accommodation Food & Drink Transportation Entertainment Shopping Source: computed from the primary survey conducted at study area. The table reveals the calculated F value of comparison of mean scores of tourists expenditure on different sectors of tourism industry. Chart : Anova test for accommodation sector 5 Original table value Anova test for accommodation sector The hypothesis is rejected for the accommodation sector, because the calculated F value for accommodation sector (6.58) is greater than the table value. Chart : Anova test for food & Drink sector 8 6 Original table value Anova test for food & drink sector The hypothesis is rejected for the second sector, food & drink, because the calculated F value for the sector (7.9) is greater than the table value which is P a g e

4 Chart : Anova test for Transportation (within the city) sector Anova test for transportation sector The hypothesis is accepted for the transportation (within the city) sector, where the calculated F value is.8 which is less than.87. Chart 5: Anova test for entertainment sector 6 5 Anova test for entertainment sector The hypothesis is rejected for the fourth sector, entertainment, because the calculated F value for the sector is 5.9 which are greater than the table value which is.87. Chart 6: Anova test for shopping sector Anova test for shopping sector The hypothesis is accepted for the shopping sector, where the calculated F value (.57) is less than.87. P a g e

5 Chart 7: Anova test for main hypothesis 5 5 Anova test for main hypothesis Over the entire hypothesis is rejected at the total level where the calculated F value is.8 which is greater than the original table value of F (.87). IV. Results The economic impact of domestic and foreign tourism has a statistically significant difference on overall level and separately on accommodation, food and drink and entertainment sectors, but for the transportation (within the city) and shopping sector, the hypothesis is accepted which states that There is no statistically significant difference between the economic impact of domestic and foreign tourism in the Desert Triangle of Rajasthan. It means for over all, accommodation, food and drink and entertainment sector, the foreign tourism has a greater economic impact but for the transportation (within the city) and shopping sector, the statistical significant difference has not been found between the economic impacts of both tourisms. V. Discussion The reason behind the rejection of hypothesis for accommodation, food and drink was that foreign tourists likely to spend more on high rate accommodation and food and drink as compared to domestics. Most of the foreign tourists spent more on highly rated starred hotels rather than home stay and budget hotels. Additionally, most of them preferred to spend in luxury restaurants that offer great local cuisine. Another reason for that is, most of the foreign tourists travel as a couple and domestic tourists travel in large group of family and friends, and because of their sociality, they shared their accommodations with each other and result was a cheaper and affordable rent. Factor affecting the acceptance of hypothesis for the transportation sector is that foreign tourists prefer to walk around the city, because of their curiosity for local culture and heritage. It is easy to carry the shopped materials for domestic tourists and for foreign tourists it is difficult to send the shopped items to their home country because of the taxes and duties. Another reason is duration of their stay. Foreign tourists stayed for a longer period in comparison to domestics, so they could not carry the shopped items to everywhere. Recommendations and suggestions: The study suggests the associated authorities, policy makers, entrepreneurs involved and local populace to better understand the tourists choice patterns for effective marketing strategies. These findings suggest some essential steps to be taken to find out the preference of domestic and foreign tourists especially in terms of transportation and entertainment, due to the per capita low average expenditure. A variety of entertainment options and activities need to be reviewed and explored by promoting rarely explored local activities to the tourists in the Desert Triangle. References []. Amir, s., Osman, M.M., Bachok, S., Ibrahim, M. (5), Understanding domestic and international tourists expenditure pattern in Melaka: result of CHAID analysis, Procedia: social and behavioural scinces, p []. Ardahaey F.T. (), Economic Impacts of Tourism Industry, International Journal of Business and Management p-. []. Batra, G.S. and Daangwal R.C. (), Tourism Promotion and Development: New Advances, Deep and Deep Publication, New Delhi. P. []. Ferguson A.F. (), years perspective plan for sustainable tourism in Rajasthan, Dept. of Tourism, India p-. [5]. Raabova, T. (), Economic Impact Calculator: Do It Yourself, Arts and Theatre Institute, Prague, Czech Republic, p-5. P a g e