Chapter-II TOURISM INDUSTRY AT THE GLOBAL LEVEL

Transcription

1 Chapter-II TOURISM INDUSTRY AT THE GLOBAL LEVEL 2.1. Tourism in the World 2.2. Tourism in India 2.3. Tourism in Karnataka 2.4. Tourism in Uttara Kannada District 2.1. Tourism Industry in the World Tourism is flourishing all over the world. According to experts, tourism would capture the global market and become the largest industry in the world. The economic potential of tourism development is almost unlimited and tourism is becoming an increasingly important industry on a world wide scale. The statistics and projection point to an era of unprecedented growth of tourism around the world International Tourist Arrivals in World The World Tourism Organization statistics indicate that, the tourism industry will continue to grow from strength to strength. From 70 million in the year 1960, the international tourist arrival worldwide has increased to 883 million by World Tourism industry will look back at 2009 as one of the toughest years in history. On top of a series of political tensions and natural disasters, the industry had to face the fallout from the economic crisis and the A (H1N1) influenza pandemic. International tourist arrivals fell by 3.7% in 2009, but the 2% upswing in the last quarter of the year indicates a change of trend after a drop of 10%, 7% and 2% in the first three quarters respectively. Asia Pacific and the Middle East regions led recovery with positive growth in the second half of Boosted by improved economic conditions in 2010, the worldwide international tourism recovered faster than expected from the impacts of global 42

2 financial crisis and economic recession of late 2008 and In 2010 the international tourist arrivals reached 948 million, up 65 million from 2009 (883 million) and 34 million more than the pre-crisis peak level of 2008 (917 million). International tourist arrivals were up by almost 7% in However the recovery came at different speeds and was primarily driven by emerging economies. The vast majority of destinations worldwide posted positive figures, sufficient to offset recent losses or bring them close to this target. While all regions posted positive growth in international tourist arrivals, emerging economies remain the main drivers of this recovery. This multispeed recovery, lower in advanced economies of the broader global situation is set to dominate 2011 and the foreseeable future. Following a year of global recovery in 2010, growth is expected to continue for the tourism sector in 2011 but at a slower pace. UNWTO forecast international tourist arrivals to grow at between 4% to 5% in 2011, a rate slightly above the long term average. So far, the growth of international tourist arrivals is very much in line with the initial forecast issued by UNWTO at the beginning of International tourism grew by almost 5% in the first half of 2011 totaling a new record of 440 million arrivals. All world regions showed positive trends with the exception of Middle East and North Africa. Destination such as Egypt, Tunisia and Japan are also seeing a decline in tourism. This set back could be on account of the impact of development in the Middle East, and North Africa, as well the tragic events in Japan which are temporarily affecting tourist flows to these nations. Nonetheless some destinations in the Middle East have shown particularly positive results, such as Saudi Arabia and Dubai demonstrating dynamism of the sector in the region. 43

3 International Tourist Arrivals in World (in Million) International tourist arrivals worldwide registered a growth of 5.0 % during the year 2013 as compared to 4.0 % growth during 2012 over The international tourist arrivals during 2013, 2012 and 2011 were 1087 million, 1035 million and 995 million respectively. Table 2.1 gives the summary of international tourist arrivals worldwide from 2004 to Table 2.1: International Tourist Arrivals Worldwide from 2004 to 2013 Year International Tourist Arrivals in World (in Million) Percentage (%) change over the previous year Source: (i) UNWTO Tourism Market Trends 2007 Edition, for the years upto (ii) UNWTO Barometer June 2010 for 2006 and January 2011 for 2007 (iii) UNWTO Tourism Highlights 2011 Edition for 2008 and 2012 Edition for (iv) UNWTO Barometer April 2014 for 2010, 2011, 2012 & 2013 Graph 2.1: International Tourist Arrivals Worldwide from 2004 to 2013 International Tourist Arrivals in World Year Year 44

4 According to World Trade Organization projections, international tourist arrivals are forecasted to reach 1.8 billion by International tourism will continue to grow during the year , but at a more moderate pace than the past decades, with the number of international tourist arrivals worldwide increasing by an average 3.3% a year. Emerging economies of Asia, Latin America, Central and Eastern Europe, Eastern Mediterranean Europe, the Middle East and Africa will continue to gain market share. By 2015, emerging economies will receive more international tourist than advanced economies and by 2030 their share is expected to reach 58 %. By 2030, North East Asia will be the most visited sub region in the world representing 16% of total arrival and taking over from Southern and Mediterranean Europe, with a 15% share in Global market trends indicate the long overhaul travel, neighboring country tourism, rural and ethnic tourism, wellness and health holidays, cultural tourism, spiritual, ecotourism, sports and adventure tourism, coastal tourism and cruise tourism are a few emerging area of tourism interest. World tourist arrivals in Asia are likely to grow faster than arrival in Europe and the Asian market share of world tourism would steadily increase until 2020 (See Table 2.2). The shift in key trends thus represents greater opportunities for developing economies. It also creates avenues to develop niche areas such as coastal tourism, medical tourism, rural tourism and adventure tourism to enhance the tourist value of destination. Given the above factors, robust growth in tourism is likely to continue in the coming years. Worldwide long distance travel is likely to grow faster (5.4% each year) than travel within regions (3.8%). Continuing world prosperity, growing recognition of tourism s contribution to employment and economic growth, availability of better infrastructure, focused marketing and promotion efforts, 45

5 liberalization of air transport, growing intra regional cooperation, and growing number of Public-Private-Partnership are seen as the key drivers for tourism in the next decade. Table 2.2: International Tourist Arrival Forecasts by Region Region Base Year Forecasts Average Annual Market Share (Million) (Million) Growth Rate (%) (%) World , , % 100.0% 100.0% Europe % 59.8% 45.9% East % 14.4% 25.4% Asia/Pacific South Asia % 0.7% 1.2% Source: World Tourism Organization Graph 2.2: World Tourism Organisation Forecast for Tourist Arrivals Source: World Tourism Organization As observed, tourism trends around the world are likely to remain robust and the growth of the Travel & Tourism industry worldwide will significantly impact tourism flows towards the subcontinent. 46

6 International Tourism Receipts Worldwide As per UNWTO estimates, worldwide receipts from international tourism were US$ 853 billion in 2009 down from US$ 939 billion in All regions suffered a drop in receipts in real terms (and also in arrivals, with the exception of Africa), albeit with varying rates of decline. The brunt of the losses were born by the Americas (-10%), with US $22 billion less than the previous year, and Europe (-7%), where receipts declined by around US $ 60 billion (26 billion euro). Asia and the pacific (-1%), the Middle East and Africa (both -4%) did comparatively better than the world average (-9.5%). In the case of Asia and the Pacific, the decline followed a series of five very strong years. Europe accounts for about 48.5 % of the world s total receipts from international tourism followed by Asia Pacific region (23.8%), Americas (19.4%), Middle East (4.9%) and Africa (3.4%). It is clear from the Table 2.3 that, international tourism receipts worldwide, which were hardly US$ billion in 2004, have reached US$ 1159 billion in 2013, about double in 10 years time. Whereas in terms of international tourist arrivals worldwide, the number has grown from 762 million in 2004 to 1087 million tourist arrivals in 2013 only. Table 2.3 gives the year-wise receipts from international tourism worldwide over the years

7 (in US$ Billion) Table 2.3: International Tourism Receipts Worldwide from 2004 to 2013 Year International Tourism Receipts in World (in US$ Billion) Percentage (%) change over the previous year Source: (i) UNWTO Tourism Market Trends 2007 Edition, for the years upto (ii) UNWTO Barometer June 2010 for 2006 and January 2011 for 2007 (iii) UNWTO Tourism Highlights 2011 Edition for 2008 and 2012 Edition for (iv) UNWTO Barometer April 2014 for 2010, 2011, 2012 & 2013 Graph 2.3: International Tourism Receipts Worldwide from 2004 to 2013 International Tourism Receipts Worldwide from 2004 to (in US$ Billion) Year Tourism Industry Contribution to World GDP, Employment and Capital Investment The data revealed by the World Travel & Tourism Council suggests that, in 2010 the contribution of travel and tourism to the world GDP was to the tune of 9%, whereas, its total employment effect was more than 235 million jobs, representing 8% of global employment. 48

8 2011 was one of the most challenging years ever experienced by the global Travel & Tourism industry. However, despite political upheaval, economic uncertainty and natural disasters, the industry s direct contribution to world GDP grew by nearly 3% to US$2 trillion and directly generated 1.2 million new jobs. This was supported by a 3% increase in visitor exports to US$1.2 trillion, with almost 3% growth in capital investment, which rose to over US$0.7 trillion. Travel & Tourism s importance to the wider economy continued to grow in Its total contribution comprised 9% of global GDP (US $6.6 trillion) and generated over 260 million jobs 1 in 11 of the world s total jobs. The industry outperformed the entire wider economy in 2012, growing faster than other notable industries such as manufacturing, financial services and retail. The direct contribution from tourism sector to World GDP was US$2,155.4 billion (2.9% of total GDP) in 2013, and is expected to rise by 4.3% in 2014, and to rise by 4.2% p.a., from , to US$3,379.3 billion (3.1% of total GDP) in The total contribution of Travel & Tourism to GDP was US$ 6,990.3 billion (9.5% of GDP) in 2013, and is expected to rise by 4.3% in 2014, and to rise by 4.2% p.a. to US$10,965.1 billion (10.3% of GDP) in In 2013 Travel & Tourism directly supported 100,894,000 jobs (3.4% of total employment). This is expected to rise by 2.2% in 2014 and rise by 2.0% p.a. to 126,257,000 jobs (3.7% of total employment) in In 2013, the total contribution of Travel & Tourism to employment, including jobs indirectly supported by the industry, was 8.9% of total employment (265,855,000 jobs). This is expected to rise by 2.5% in 2014 to 272,417,000 jobs and rise by 2.4% p.a. to 346,901,000 jobs in 2024 (10.2% of total). 49

9 Year Visitor exports generated US$1,295.9 billion (5.4% of total exports) in This is forecast to grow by 4.8% in 2014, and grow by 4.2% p.a., from , to US$2,052.4 billion in 2024 (5.2% of total). Travel & Tourism investment in 2013 was US$813.0 billion, or 4.7% of total investment. It should rise by 5.8% in 2014, and rise by 5.1% p.a. over the next ten years to US$1,310.9 billion in 2024 (4.9% of total). Table 2.4: Tourism Industry Contribution to World GDP, Employment and Capital Investment. Travel & Tourism Industry Contribution to GDP (In US $ Billion) Direct % Share Total % Share Travel & Tourism Industry Contribution to Employment (In Thousands) Direct % Shar e Total % Share Travel & Tourism Capital Investment (In US $ Billion) % Share Source: World Travel & Tourism Council Data

10 (In Thousands) (In US $ Billion) Graph 2.4: Tourism Industry Contribution to World GDP, Employment and Capital Investment. Travel & Tourism Industry Contribution to World GDP Travel & Tourism Industry Contribution to World Employment Tourism Industry in India In fact, our Country is a land of spectacular landscape, enchanting coast line, colourful season, wildlife paradise, aesthetic and exquisite traditions of architecture and land of rich music and dances. Besides, India is a land of great cultural heritage, ancient wonders, fabulous treasures, exotic and utility handicrafts, secluded serene, beautiful virgin natural beauty and above all a land of myth, magic and miracles. India s glorious traditions and rich cultural heritage are linked with the development 51

11 of tourism. Its magnificent monuments has been attracting large number of visitors from all over the world. Apart from, its cultural heritage, India has an exceptionally varied climate ranging from extreme cold in high altitudes to the hot summers in the plains. The wealth of cultural traditions extending over thousands of years, the natural surroundings, the architectural masterpieces, the music, dance, paintings, customs and languages all go to make India a tourist paradise. Few countries in the world provide such varied interest to visitors. Multifaceted and multilingual in nature, India offers a huge array of tourist places to be explored. The shades of the nation compose a number of communities, religions, and races. As a result, the tourist attractions in India are varied and numerous in nature. Each corner of the city exhibits a unique flavor reflecting its past and its ideology in the process. India is a large country and has 29 states and 7 Union Territories. Each of these forms the various tourist attractions of India. North Zone The vast expanses of the North Indian Territory present one of the world s most widespread and fertile lands, comprising the alluvial soil deposited in the form of fine silt by the rivers. Lying towards the south of the Himalayas, the northern plains comprise the Indus basin, the Ganga-Brahmaputra basin. Uttar Pradesh, Jammu & Kashmir, Uttaranchal, Himachal Pradesh, Punjab, Haryana, Rajasthan, Madhya Pradesh and Chhattisgarh are the states that form the North zone. Some of the striking tourist destinations of India in the North zone are the Taj Mahal, Hawa Mahal, Jama Masjid, Dal Lake, Jaisalmer Fort, Agra Fort, Qutub Minar and Corbett National Park. 52

12 East Zone The east zone of India is comprised of states like Orissa, West Bengal, Bihar, Jharkhand, Assam, Sikkim, Arunachal Pradesh, Nagaland, Tripura, Manipur, Mizoram and Meghalaya. The natural beauty ranges from the snow capped mountains of Arunachal Pradesh to Assam s Brahmaputra and the Barak river valleys; from the hilly terrain of Meghalaya, full of dense forests to the mountainous state of Nagaland; from the fertile plateaus of Orissa to the loamy plains of West Bengal. The various tourist attractions in this region broadly include Konark temples, Sundarbans, Bodh Gaya, Rajgir, etc. West Zone It comprising the states of Gujarat, Maharashtra and Goa and the UTs Daman & Diu, the western region is one of the most traveled tourist zones of India. Located along the blue waters of the Arabian Sea, all of these states offer primarily coastal beauties of beaches and sea shores. Gujarat, one of the most important states, houses some of the most impressive architectural works of art, like the Somnath Temple and the Dwarkadhish Temple. Gir Wildlife Sanctuary is another favorite site for the tourists. Ajanta and Ellora Caves and Mahabaleshwar in Maharashtra are some of the striking tourist destinations in India. Goa, another chosen tourist spot in the western area, offers magnificent beaches of Dona Paula and Calangute. South Zone It is one of the major tourist zones of India, and it includes the states of Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, Lakshadweep and Andaman and Nicobar islands. A region consisting of the Great Plateau of Peninsular India, which in turn, is divided into two parts, - the Malwa Plateau and the Deccan Plateau. The backwaters of Kerala, the wildlife sanctuaries of the Nilgiris, and exotic beaches of Kerala, Tamil Nadu, Pondicherry, Andaman & Nicobar, and Lakshadweep are some of the prime 53

13 tourist attractions here. Among the architectural specimens, the Meenakshi Temple, Khajuraho Temples, the Tirupati Temple hold great tourism significance. Tourism in India has received a major boost in the past decade since the Indian Government realized the great potential of tourism of India. Tourism of India has grown by leaps and bounds with a great influx of tourists from throughout the world who have been irresistibly attractive to the travelers. India has the right tourism potential and attractions to captivate all types of tourists whether it is adventurous tour, cultural exploration, pilgrimages, visit to the beautiful beaches or to the scenic mountain resorts, Tourism of India has it all for you. India has become one of the fastest growing economies in the world over the last two decades, undoubtedly aided in this performance by economic reforms. The striking aspect of India s recent growth has been the dynamism of the service sector Present Scenario of Tourism in India Tourism in India is the largest service industry with a contribution of 6.6% to the national GDP and 7.7% of the total employment in 2013 in India. In 2012, total Foreign Tourist Arrivals (FTA) in India were 5.78 million and India generated about 200 billion US dollars in 2008 and that is expected to increase to US$375.5 billion by 2018 at a 9.4% annual growth rate. The majority of foreign tourists come from USA and UK. Kerala, Tamil Nadu, Delhi, Uttara Pradesh and Rajasthan are the top five states to receive inbound tourists. Ministry of Tourism is the nodal agency to formulate national policies and programmes for the development and promotion of tourism. In the process, the Ministry consults and collaborates with other stakeholders in the sector including various Central Ministries/agencies, the state governments and union territories and the representatives of the private sector. Concerted efforts are being made to promote new forms of tourism such as rural, cruise, medical and ecotourism. 54

14 The Ministry of Tourism also maintains the Incredible India campaign. In 2013, total Foreign Tourist Arrivals (FTA) in India were 6.97 million and Foreign Exchange Earnings stood at US$ billion (Global rank-16) up 4.0% from previous year figure of US$ billion (6.58 million FTAs in 2012). The top ten States in terms of number of FTAs (in millions) during 2013 were Maharashtra (4.2), Tamil Nadu (4.0), Delhi (2.3), Uttar Pradesh (2.0), Rajasthan (1.4), West Bengal (1.2), Kerala (0.86), Bihar (0.77), Karnataka (0.64) and Goa (0.49). India's Foreign Exchange earnings grew by an astonishing 14.1% (CAGR) during out-pacing global average 7.7%. Owing to steady decade-long growth, India's share in world Foreign exchange earnings has gone up from 0.97% in 2004 to about 1.59% in The top ten States in terms of number of domestic tourist visits (in millions), during 2013, were Tamil Nadu (244.2), Uttar Pradesh (226.5), Andhra Pradesh (152.1), Karnataka (98.0), Maharashtra (82.7), Madhya Pradesh (63.1), Rajasthan (30.3), Gujarat (27.4), West Bengal (25.5) and Chhattisgarh (22.8). The contribution of top 10 States was about 84.9% to the total number of domestic tourist visits during The percentage shares of top 5 States were Tamil Nadu (21.3%), Uttar Pradesh (19.8%), Andhra Pradesh (13.3%), Karnataka (8.6%) and Maharashtra (7.2%). According to World Travel and Tourism Council 2008, India will be a tourism hot-spot from 2009 to 2018, having the highest 10-year growth potential. India's rich history and its cultural and geographical diversity make its international tourism appeal large and diverse. It presents heritage and cultural tourism along with medical, business and sports tourism. India has one of the largest and fastest growing medical tourism sectors. In anticipation of huge demand driven by inbound and domestic travel, and current scarcity of rooms, hotels continued to add capacity at a fast rate. In 55

15 2013, travel accommodation witnessed the entry of many foreign players who foresaw huge demand for budget hotels, and subsequently planned to launch their brands in India. A few leading foreign chains and domestic players including Starwood Capital and Carlson Hotels are adding capacity to increase supply in the budget segment. Addition of huge capacity is likely to create a supply demand mismatch resulting in intensive competition in the near future. Drivers behind Increase in Tourist Traffic The main drivers for increase in tourist traffic to India have been the following factors: Domestic Tourist Traffic Rapidly increasing purchasing power of the middle class Better road connectivity Evolving Lifestyle International Tourist Traffic Value for money/economical holiday destination Business cum pleasure destination. Development of Kerala and Rajasthan as the most popular tourist destinations in India with their distinctive brand image. Opening of the sectors of the economy to private sector/foreign investment. Reform in the aviation sector such as Open Skies Policy has led to better connectivity with many countries with India. Success of Incredible India campaign and other tourism promotion measures. 56

16 Role of the Government The role of the Government in tourism development has been redefined from that of a regulator to that of a catalyst. Apart from marketing and promotion, the focus of tourism development plans is now on integrated development enabling infrastructure through effective partnership with various stakeholders. Tourism development in India has passed through many phases. The development of tourist facilities was taken up in a planned manner in 1956 coinciding with the Second Five Year Plan. The approach has evolved from isolated planning of single unit facilities in the Second and Third Five Year Plans. The Sixth Plan marked the beginning of a new era when tourism began to be considered a major instrument for social integration and economic development. However, it was only after the 80 s that tourism activity gained momentum. A National Policy on Tourism was announced in In 1992, a National Action Plan was prepared and in 1996 the National Strategy for Promotion of Tourism was drafted. In 1997, a draft New Tourism Policy in tune with the economic policies of the Government and the trends in tourism development was published for public debate. The draft policy is now under revision. The proposed policy recognizes the roles of Central and State Governments, Public Sector Undertakings and the Private Sector in the development of tourism. The need for involvement of Panchayati Raj institutions, local bodies, non-governmental organizations and the local youth in the creation of tourism facilities has also been recognized. As per the working strategy for the 12th Five Year Plan, the Ministry of Tourism has adopted a pro-poor tourism approach which could contribute significantly to poverty reduction. More than half of Tourism Ministry s Plan budget is channelized for funding the development of destinations, circuits, mega projects as 57

17 also for rural tourism infrastructure projects (see Annexure-I). The Ministry also ensured that 10% and 2.5% of its total Annual Plan ( ) outlay went to the tourism projects in the North-Eastern region and the tribal areas respectively. The other major development that took place was the setting up of the India Tourism Development Corporation in 1966 to promote India as a tourist destination and the Tourism Finance Corporation in 1989 to finance tourism projects. Altogether, 21 Government-run Hotel Management and Catering Technology Institutes and 14 Food Craft Institutes were also established for imparting specialized training in hoteliering and catering. Government Initiatives Government of India, has allowed 100 per cent foreign investment under the automatic route in the Hotel and Tourism related industry. The terms hotel includes restaurants, beach resorts and other tourism complexes providing accommodation and /or catering and food facilities to tourists. The term tourism related industry includes: Travel agencies, tour operating agencies and tourist transport operating agencies. Units providing facilities for cultural, adventure and wildlife experience to tourists. Surface, air and water transport facilities for tourists Convention/seminar units and organizations As a facilitative measure to make Tourism sector in India more attractive the following initiatives are taken by Government: The Government of India has launched the Incredible India mobile application. The app will help tourists to seek information, besides enabling quality and reliable services from service providers recognised by the Government of India. 58

18 This app demonstrates the Ministry of Tourism s commitment to the use of technology for service delivery. The Ministry of Tourism, Government of India has launched the new tourism brand for the Union Territories of Daman and Diu and Dadra and Nagar Haveli, as well as released the Vision 2020 publication for Dadra and Nagar Haveli. This step by the government has been taken with a view to help in overall economic development of these union territories. The West Bengal government has decided to set up an eco-tourism board to project the state as a major tourist destination. Work for developing a mega tourism project has already started in Jalpaiguri district and plans to develop similar projects in Sylee and Kunjanagar is under discussion. The Ministry of Tourism Department, Government of India, in association with the Maharastra state Govt. has proposed to create a cultural hub on the lines of Times Square, New York. The vision behind such a cultural hub is to provide popular entertainment as well as access to heritage and culture for the benefit of international tourists, domestic tourists and the people of Mumbai. Road Ahead The medical tourism market in India is projected to hit US$ 3.9 billion mark this year having grown at a compounded annual growth rate (CAGR) of 27 per cent over the last three years, according to a joint report by FICCI and KPMG. Also, inflow of medical tourists is expected to cross 320 million by 2015 compared with 85 million in The tourism industry is also looking forward to the E-visa scheme which is expected to double the tourist inflow to India. Enforcing the electronic travel authorization (ETA) before the next tourism season, which starts in November, will result in a clear jump of at least 15 per cent. 59

19 Mega Destinations/Circuits Identified in different States S. No States Name of the Mega Projects 1 Andhra Pradesh Charminar area of Hyderabad, Tirupati Heritage Circuit, Kadapa Heritage Tourist Circuit 2 Assam National Park Mega circuit covering Manas, Orang, Nameri, Kaziranga, Jorhat, Sibsagar and Majouli 3 Bihar Bodhgaya-Rajgir-Nalanda Circuit 4 Chhattisgarh Jagdalpur-Tirathgarh-Chitrakoot-Barsur Dantewada- Tirathgarh Circuit 5 Delhi Illumination of Monuments Circuit 6 Goa Churches of Goa 7 Gujarat Dwarka-Nageshwar-Bet Dwarka Circuit Shuklatirth-Kabirvad 8 Haryana Mangleshwar Angareshwar Panipat-Kurukshetra-Pinjore 9 Himachal Pradesh Eco and Adventure Circuit (Kullu-Katrain-Manali) 10 Haryana & Himachal Pradesh Panchkula-Yamunanagar (Haryana)-Paonta Sahib (Himachal Pradesh) Circuit 11 Jammu & Kashmir Mubarak Mandi Heritage Complex Naagar Nagar Circuit (Watlab via Hazratbal, Tulmullah, Mansbal and Wullar Lake), Srinagar Spiritual and Wellness Destination Leh Ladakh 12 Karnataka Hampi 13 Kerala Muziris Heritage Circuit connecting historic and archaeologically important places of Kodungalloor 14 Madhya Pradesh Spiritual and Wellness Destination of Chitrakoot 15 Maharashtra Vidarbha Heritage Circuit Aurangabad 16 Manipur INA Memorial 17 Orissa Bhubaneswar- Puri-Chilka 18 Punjab Amritsar 19 Rajasthan Ajmer- Pushkar, Jodhpur- Bikaner-Jaisalmer 20 Sikkim Gangtok 21 Tamilnadu Mahabalipuram, Pilgrimage Heritage, Madurai- Rameshwaram-Kanyakumari), Thanjavaur 22 Uttarakhand Haridwar-Rishikesh-Muni-Ki-Reti Circuit 23 Uttar Pradesh Agra Circuit, Varanasi-Sarnath-Ramnagar 24 West Bengal Ganga Heritage River Cruise Circuit 25 Tripura Mega Lake Circuit including Mata Bari Foreign Tourist Arrivals (FTAs) in India According to Indian Tourism Statistics report, the FTAs in India continued to grow from 1.28 million in 1981, to 1.68 million in 1991, 2.54 million in 2001, and reaching 5.11 million in During the year 2009, India witnessed a negative 60

20 growth of 2.2 % over However, growth rate for India was better than that the negative growth of 4.2% registered for the world during The compounded annual growth rate (CAGR) in FTAs in India during 2001 to 2009 was 9.14 %. Further, the number of Foreign Tourist Arrivals (FTAs) in India during 2011 increased to 6.31 million as compared to 5.78 million in The growth rate in FTAs during 2011 over 2010 was 9.2% as compared to 11.8% during 2010 over The growth rate of 9.2% in 2011 for India was better than growth rate of 5% for the International Tourist Arrivals in The number of Foreign Tourist Arrivals (FTAs) in India during 2013 increased to 6.97 million from 6.58 million in The growth rate in FTAs during 2013 over 2012 was 5.9% as compared to 4.3% during 2012 over The growth rate of 5.9% in 2013 for India was better than the growth rate of 5% for the International Tourist Arrivals in Table 2.5 gives the number of FTAs in India in the years 2004 to 2013 and the growth rate over previous year. Table 2.5: Foreign Tourist Arrivals (FTAs) in India from 2004 to 2013 Year FTAs from Tourism in India (In Million) Percentage (%) Change over the Previous Year Source: Bureau of Immigration, Govt. of India. 61

21 In Million Graph 2.5: Foreign Tourist Arrivals (FTAs) in India from 2004 to 2013 FTAs from Tourism in India (In Million) Foreign Exchange Earnings (FEE) from Tourism in India Tourism is one of the important sectors in India for foreign exchange earnings (FEE). As per the monthly estimates prepared by Ministry of Tourism, FEE from tourism in India in 2009 were Rs crore as compared to Rs in 2008 registering a growth of 8.3 % in 2009 over In 2011, FEE were increased to Rs crore as compared to Rs crore in 2010 registering a growth of 19.6 % in 2011 over In 2013, Foreign Exchange Earnings stood at Rs crore (Global rank- 16) up 21.8% from previous year (2012) figure of Rs.94487crore. The FEE from tourism in India, in INR terms, during are given in Table

22 in crores Table 2.6: Foreign Exchange Earnings (FEE) from Tourism in India, Year FEE from Tourism in India (In Crore) Percentage (%)Change over the Previous Year Source: (i) Reserve Bank of India, for 2004 to (ii) Ministry of Tourism, Govt. of India, for 2011, 2012 & Graph 2.6: Foreign Exchange Earnings (FEE) from Tourism in India, FEE from Tourism in India (In Crore)

23 Top 10 Source Countries for Foreign Tourist Arrivals (FTAs) in India in 2013 Table 2.7 gives the percentage shares and ranks of top 10 source countries for India during The FTAs in India from United States of America (USA) were the highest (15.58%) during 2013, followed by United Kingdom (11.62%), Bangladesh (7.53%), Sri Lanka (3.77 %), Russian Fed. (3.72%), Canada (3.66%), Germany (3.62%), France (3.56%), Malaysia (3.48%) and Japan (3.16 %). The share of FTAs from top 10 countries during the year 2013 was 59.70% as compared to 60.53% in Table 2.7: Top 10 Source Countries for Foreign Tourist Arrivals (FTAs) in India in 2013 Rank Source Country FTAs Percentage ( in millions) (%) Share 1. USA United Kingdom Bangladesh Sri Lanka Russian Fed Canada Germany France Malaysia Japan Total of Top 10 Countries Others Grand Total Source: Bureau of Immigration, Govt. of India. 64

24 Graph 2.7: Top 10 Source Countries for Foreign Tourist Arrivals (FTAs) in India in 2013 Germany 6% Canada 6% Top 10 Source Countries for Foreign Tourist Arrivals (FTAs) in India in 2013 France 6% Malaysia 6% Japan 5% USA 26% United Kingdom 20% Russian Fed. 6% Sri Lanka 6% Bangladesh 13% Number of Indian Nationals Departures (INDs) from India The total count of Indian Nationals departures to other countries is compiled by the Bureau of Immigration (BOI) from Embarkation cards. The number of Indian nationals departures from India during 1991 was 1.94 million, which rose to million in The number of Indian nationals departures from India during 2013 registered a growth of 11.4% over 2012 as compared to 6.7 % growth in 2012 over The figures of Indian national s departures for the years 2004 to 2013, along with percentage change over the previous year, are given in Table

25 In Millions Table 2.8: Number of Indian Nationals Departures (INDs) from India, Year No. of Indian National Departures (In Million) Percentage (%) Change over the Previous Year Source: India Tourism Statistics at a Glance, 2013 Graph 2.8: Number of Indian Nationals Departures (INDs) from India, No. of Indian National Departures (In Million)

26 Number of Domestic Tourist Visits (DTVs) to all States/UTs in India Table 2.9 presents the statistics on domestic tourist visits to various States and UTs during the years 2004 to There has been a continuous increase in domestic tourist visits to all States/UTs from million in 2004 to million in The year 2013 witnessed a growth of 9.6 % in domestic tourist visits over the year 2012, which is higher than the growth of 20.9% in the year 2012 over Table 2.9: Number of Domestic Tourist Visits (DTVs) to all States/UTs in India, Year No. of Domestic Tourist Visits to States/UTs (In Million) Percentage (%) Change over the Previous Year Source: State/ Union Territory Tourism Departments. India Tourism Statistics at a Glance,

27 In million Graph 2.9: Number of Domestic Tourist Visits (DTVs) to all States/UTs in India, No. of Domestic Tourist Visits to States/UTs Number of Foreign Tourist Visits (FTVs) to all States/UTs in India Table 2.10 presents the statistics on foreign tourist visits to various States and UTs during the years 2004 to The foreign tourist visits have been increasing over the years, though there was a decline in the years 1992, 1998, 2001, 2002, 2009 and The foreign tourist visits to all States/UTs witnessed a growth from 8.36 million in 2004 to million in During 2013, the number of FTVs to States/UTs registered a growth of 9.24% over 2012 as compared to a negative growth of 6.3% in 2012 over

28 In Millions Table 2.10: Number of Foreign Tourist Visits (FTVs) to all States/UTs in India, Year No. of Foreign Tourist Visits to States/UTs (In Million) Percentage (%) Change over the Previous Year Source: State/ Union Territory Tourism Departments. India Tourism Statistics at a Glance, 2013 Graph 2.10: Number of Foreign Tourist Visits (FTVs) to all States/UTs in India, No. of Foreign Tourist Visits to States/UTs (In Million)

29 Share of Top 10 States/UTs of India in Number of Domestic Tourist Visits in 2013 Table 2.11 provides the percentage shares and ranks of various States/UTs in domestic tourist visits during The top ten States in terms of number of domestic tourist visits (in millions), during 2013, were Tamil Nadu (244.2), Uttara Pradesh (226.5), Andhra Pradesh (152.1), Karnataka (98.0), Maharashtra (82.7), Madhya Pradesh (63.1), Rajasthan (30.3), Gujarat (27.4), West Bengal (25.5) and Chhattisgarh (22.8). The contribution of top 10 States was about 84.9% to the total number of domestic tourist visits during The percentage shares of top 5 States were Tamil Nadu (21.3%), Uttar Pradesh (19.8%), Andhra Pradesh (13.3%), Karnataka (8.6%) and Maharashtra (7.2%). Tamil Nadu has occupied the first rank in terms of DTVs in 2013 rising from 2nd rank during 2012 whereas Andhra Pradesh which was at 1st rank in 2012 has dropped down to the 3rd rank. Uttar Pradesh which was at 3rd rank in 2012 has moved up to 2nd place. Though the top ten States in terms of DTVs in 2013, remained almost the same as those in 2012 except the State of Chhattisgarh which was in 16th position has risen to the 10th position and Uttarakhand which was in 8th position by its negatively affected growth could not clinch a position among the top 10 States. 70

30 Table 2.11: Share of Top 10 States/UTs of India in Number of Domestic Tourist Visits in 2013 Rank State/UT Domestic Tourist Visits Number Percentage 1 Tamil Nadu Uttar Pradesh Andhra Pradesh Karnataka Maharashtra Madhya Pradesh Rajasthan Gujarat West Bengal Chhattisgarh Total of Top 10 States Others Total Source: State/UT Tourism Departments. Graph 2.11: Share of Top 10 States/UTs of India in Number of Domestic Tourist Visits in 2013 Share of Top 10 States/UTs of Indai in Number of Domestic Tourist Visits in 2013 Tamil Nadu Uttar Pradesh Andhra Pradesh Karnataka Maharashtra Madhya Pradesh Rajasthan Gujarat West Bengal Chhattisgarh 3% 3% 3% 2% 6% 25% 9% 10% 16% 23% 71

31 Share of Top 10 States/UTs of India in Number of Foreign Tourist Visits in 2013 Table 2.12 provides the percentage shares and ranks of various States/UTs in foreign tourist visits during 2013.The top ten States in terms of number of foreign tourist visits (in millions), during 2013, were Maharashtra (41.5), Tamil Nadu (39.9), Delhi (23.0), Uttara Pradesh (20.5), Rajasthan (14.3), West Bengal (12.4), Kerala (8.5), Bihar (7.6), Karnataka (6.3) and Goa (4.9). The contribution of top 10 States was about 89.9% to the total number of foreign tourist visits during The percentage shares of top 5 States were Maharashtra (20.8%), Tamil Nadu (20.0%), Delhi (11.5%), Uttara Pradesh (10.3%) and Rajasthan (7.2%). The top ten States in terms of FTVs in 2013, almost remained the same as those in 2012 except that of Himachal Pradesh which was at 10th position in 2012 got replaced by Goa, after sliding down by the position. Table 2.12: Share of Top 10 States/UTs of India in Number of Foreign Tourist Visits in 2013 Rank State/UT Foreign Tourist Visits Number Percentage 1 Maharashtra Tamil Nadu Delhi Uttar Pradesh Rajasthan West Bengal Kerala Bihar Karnataka Goa Total of Top 10 States Others Total Source: State/UT Tourism Departments. 72

32 Graph 2.12: Share of Top 10 States/UTs of India in Number of Foreign Tourist Visits in 2013 Share of Top 10 States/UTs of India in Number of Foreign Tourist Visits in 2013 Kerala 5% Bihar 4% Karnataka 4% Goa 3% West Bengal 7% Maharashtra 23% Rajasthan 8% Uttar Pradesh 11% Delhi 13% Tamil Nadu 22% Tourism Industry Contribution to India GDP, Employment and Capital Investment As stated earlier, the tourism industry of India is economically important and growing rapidly. The data revealed by the World Travel & Tourism Council suggests that the direct contribution from this sector to country s GDP was INR2,178.1 billion (2.0% of total GDP) in 2013, and is expected to rise by 7.5% in 2014, and further, it is estimated to rise by 6.4% p.a., from , to INR4,346.4 billion (2.1% of total GDP) in The total contribution of Travel & Tourism to GDP was INR6,631.6 billion (6.6% of nations GDP) in 2013, and is expected to rise by 7.3% in 2014, and to rise by 7.0% p.a. to INR13,983.0 billion (6.8% of GDP) in

33 In 2013, Travel & Tourism directly supported 22,320,000 jobs (4.9% of total employment). This is expected to rise by 2.5% in 2014 and rise by 2.1% p.a. to 28,081,000 jobs (5.1% of total employment) in In 2013, the total contribution of Travel & Tourism to employment, including jobs indirectly supported by the industry, was 7.7% of total employment (35,438,500 jobs). This is expected to rise by 2.7% in 2014 to 36,409,000 jobs and rise by 1.9% p.a. to 43,837,000 jobs in 2024 (7.9% of total). Travel & Tourism investment in 2013 was INR1,938.7 billion, or 6.2% of total investment. This is expected to rise by 9.8% in 2014, and rise by 6.5% p.a. over the next ten years to INR3,981.3 billion in 2024 (6.4% of total). Table 2.13 presents the statistics about tourism industry contribution to India GDP, employment and capital investment from 2004 to Table 2.13: Tourism Industry Contribution to India GDP, Employment and Capital Investment Travel & Tourism Industry Travel & Tourism Industry Travel & Year Contribution to GDP Contribution to Employment Tourism % Capital (In US$ Billion) (In Thousands) Share Investment Direct % Share Total % Share Direct % Share Total % Share (In US$ Billion) Source: World Travel & Tourism Council Data

34 In Thousands In US$ Billion Graph 2.13: Tourism Industry Contribution to India GDP, Employment and Capital Investment Travel & Tourism Industry Contribution to GDP Direct Total Travel & Tourism Industry Contribution to Employment Direct Total Number of Approved Hotels in the Country The Ministry of Tourism has adopted a system of approving and classifying the hotels on the basis of the facilities and services provided by them. The Ministry of Tourism Launched a web based Public Service Delivery System for approval of hotel projects and classification/re-classification of hotels on with a view to bring in transparency in granting approvals for hotel projects and classification status to functioning hotels. The hotel promoters and owners seek voluntary approval from the 75

35 Ministry of Tourism for their projects and classification from one Star to Five Star Deluxe by submitting applications. These requests are processed for a final decision within 90 days from the receipt of applications. The number of approved hotels and rooms vary from year to year as the classification/reclassification of hotels is a voluntary scheme of the Ministry of Tourism. The provisional category-wise details regarding the number of hotels and hotel rooms (classified/reclassified) as on are presented in below Table Table 2.14: Number of Approved Hotels and Availability of Hotel Rooms in the Country, as on 31 st December, Sl. No. Category of Hotels No. of Hotels No. of Rooms 1 One Star Two Star Three Star Four Star Five Star Five Star Deluxe Apartment Hotels Time Share Resorts Heritage Hotels Silver Bed & Breakfast 6 23 Establishment 11 Unclassified Total Source: India Tourism Statistics at a Glance, Number of Operators Approved in the Country In order to provide quality services to tourists, the Ministry of Tourism grants recognition to inbound tour operators, travel agents, tourist transport operators, adventure tour operators and domestic tour operators in the country, as per the prescribed guidelines. As on 31 st December 2013, 444 inbound tour operators,

36 travel agents, 131 tourist transport operators, 32 adventure tour operators, and 76 domestic tour operators were registered with the Ministry in their corresponding State. The number of operators approved by the Ministry of Tourism in the Country, as on 31 st December, 2013 is given in Table Table 2.15: Number of Operators Approved by the Ministry of Tourism in the Country, as on 31 st December, Sl. No. Operator Nos. 1 Travel Agent Inbound Tour Operator Tourist Transport Operator Adventure Tour Operator 32 5 Domestic Tour Operator 76 Total 971 Source: India Tourism Statistics at a Glance, Tourism Industry in Karnataka Brief Profile of the State The Karnataka state was formed in the year 1956, under the States Reorganization Act. The state was originally called the state of Mysore and later renamed as Karnataka in Karnataka is one of the four major southern states of India and shares boundaries with Andhra Pradesh, Goa, Kerala, Maharashtra and Tamil Nadu. Karnataka is the eighth largest state in the Indian union and hosts 5% of the national population. The state is the largest base for the IT / ITES sector and is also a major investment destination for other sectors such as biotechnology, aerospace, automobile, engineering, sericulture and floriculture, mining and renewable energy. Karnataka is also the primary gold producing centre in India and the third largest producer of steel in India. 77

37 The name of the land Karnataka has come from `Kari-nadu` meaning the land of black soil say the scholars, & some others hold that `Karunadu` also means beautiful country; either way the land is celebrated as beautiful throughout its ancient literature. The State is situated between 74 0 E and 78 0 E longitudes and between 11 0 N and 18 0 N latitudes. The topography of Karnataka is largely a reflection of the geology of the state. The Sahyadris are covered with evergreen forests. They drop abruptly towards the Arabian Sea, thus forming a natural barrier between the plateau and the coastal regions. Four passes provide access to the coast. They are the Subrahmanya Ghat, the Charmadi Ghat, the Shiradi Ghat, and the famous Agumbe Ghat. The Western Ghats slope gently towards the Bay of Bengal. This is the plateau region drained by the two principal rivers Krishna and the Kaveri. The average elevation of the plateau is about 610 meters above sea-level. Karnataka's manifold attractions include everything that interests the visitors. The wild life Sanctuaries at Bandipur, Nagarhole and Dandeli, the Ranganathittu Bird's Sanctuary is 5 Km. from Srirangapatna which is itself a well known tourist center, hill stations like Nandi Hills and Kemmannagundi and Mercara, beach resorts like Karwar, Ullal, Malpe and Maravanthe, the world famous Brindavan Gardens at Krishnarajasagara, the monolithic statue of Gommateshwara at Sharavanabelagola, Gol Gumbaz with its whispering gallery at Bijapur, the Jog falls and other waterfalls at Shivan Samudram, Magod, Unchelli or Lushington near Siddapur, Lalguli at Yallapur and other places indicate the variety and richness of the attractions that Karnataka State holds out to the visitors. There are many places of historic and religious importance. The great Acharyas, Shankara, Ramanuja and Madhwa, preached in this region. Great reformers 78