Chapter-II TOURISM INDUSTRY AT THE GLOBAL LEVEL

Similar documents
Magnitude of Tourism

DESPITE GLOBAL ISSUES, TOURISM IS ON A GROWTH PATH

National Biodiversity Strategy and Action Plan, India

The winning states in each of the three award categories were as follows:

Sources of Information

Table-1.1 SEASONS, SOWING & HARVESTING PERIOD AND PRODUCTION. Five year Average Production ( to Harvesting Period.

Sustainability Criteria for Tourism in India An Overview. UNWTO Conference on Sustainable Tourism Development Hyderabad, 12 April 2013

OUR COUNTRY INDIA L OCATIONAL SETTING

SOUTHWEST MONSOON-2008: DAILY FLOOD SITUATION REPORT

SOUTHWEST MONSOON-2008: DAILY FLOOD SITUATION REPORT

SITREP NO-110/ hours 32-20/2007-NDM-I Ministry of Home Affairs (Disaster Management Division) Dated, 18 TH September, 2007

International Journal of Academic Research ISSN: : Vol.2, Issue-4(6), October-December, 2015 Impact Factor : 1.855

Drawing more tourist to India

The Next International Cruise Tourism Hub

India - State-wise Wastelands Distribution (Percentage to total geographical area)

OIC/COMCEC-FC/33-17/D(16) TOURISM CCO BRIEF ON

Q1 FY18 Earnings Presentation 17 July 2017

INDIA INBOUND-THE KALEIDOSCOPIC CANVAS. No part of this publication may be reproduced in any form by photo, photo-print, microfilm or

Sub. Rev Eng. Ad. Rev Hin. Ad. Rev Ver. Ad. Rev.

SITREP NO-69/ hours 32-20/2008-NDM-I Ministry of Home Affairs (Disaster Management Division) Dated, 8 th August, 2008

Tourism Trends, Outlook and Issues. John G.C. Kester. 6th UNWTO/PATA Forum on Tourism Trends and Outlook. Guilin, China October 2012 day 1

SOUTHWEST MONSOON-2010: DAILY FLOOD SITUATION REPORT SUMMARY OF IMPORTANT EVENTS AS ON

Domestic Tourism Statistics in India

Economic aspects of Accessible Tourism. Svayam- Global Centre for Accessible Tourism

32-20/2008-NDM-I Ministry of Home Affairs (Disaster Management Division) SOUTHWEST MONSOON-2008: DAILY FLOOD SITUATION REPORT

Prospects for international tourism

32-20/2008-NDM-I Ministry of Home Affairs (Disaster Management Division) SOUTHWEST MONSOON-2008: DAILY FLOOD SITUATION REPORT

Tourism as an Economic Pillar. Mary Vrolijk 25 September 2015

International Journal of Multidisciplinary Approach and Studies. Human Resource Management in Indian Tourism Industry

TOURISM IN INDIA- AN ANALYSIS

MUMBAI 4 6 Sept member of. Show Report

CONTENTS. Chapter 1: Geographic Overview 21. Chapter 2: Human Interactions with India s Environment 44

CHAPTER I INTRODUCTION

ROAD ACCIDENTS IN INDIA 2012

Types of Tourism in India

2. Wages and Earnings

Best State/UT Comprehensive Development of Tourism (North East, Jammu and Kashmir ) Jammu & Kashmir

DCB Bank Regional Nodal Officers

A Presentation on MICE Tourism

View Report Details. Global Cruise Market

Tourism Potentials in Poverty Reduction in South Asia

An Empirical Analysis of the Tourism Sector of India

Index of business confidence. Monthly FTK (Billions) Aug 2013 vs. Aug 2012 YTD 2013 vs. YTD 2012 Aug 2013 vs. Jul 2013

REVIEW OF THE PERFORMANCE OF STATE ROAD TRANSPORT UNDERTAKINGS (PASSENGER SERVICES) FOR APRIL, 2014 MARCH, 2015

III. TRADE IN COMMERCIAL SERVICES BY CATEGORY

TRADE IN SERVICES: NEW GROWTH OPPORTUNITIES TOURISM AS AN INTERNATIONALLY TRADED SERVICE

Presentation on Indian Tourism Industry

MT - GEOGRAPHY - (73) - SEMI PRELIM - I : PAPER - 6

Infrastructure and Tourism Development

Song Rui Tourism Research Center, Chinese Academy of Social Sciences March 7, 2018, Berlin

ABSTRACT. Tourism is important in many ways- it can be for leisure, business, education,

Global Luggage Market

Outline. (1) JICA and India. (2) Infrastructure Development. (3) Cross-Border Connectivity

IMPACT OF ECO TOURISM IN SUSTAINABLE ECONOMIC DEVELOPMENT

AIR TRANSPORT MARKET ANALYSIS MAY 2011

TOURISM & HOSPITALITY

VOLLEYBALL FEDERATION OF INDIA

PREMIUM TRAFFIC MONITOR DECEMBER 2014 KEY POINTS

Issue 10. micrometer. data as of 30 th June 2014

TOURISM CCO BRIEF ON

Tourism Towards 2030

Issue 10. micrometer. data as of 30 th June 2014

32-20/2008-NDM-I Ministry of Home Affairs (Disaster Management Division) SOUTHWEST MONSOON-2008: DAILY FLOOD SITUATION REPORT

AIR TRANSPORT MARKET ANALYSIS JULY 2011

From: OECD Tourism Trends and Policies Access the complete publication at: Mexico

Iceland. Tourism in the economy. Tourism governance and funding

Making Cooperation Work COMCEC STRATEGY. For Building an Interdependent Islamic World COMCEC TOURISM OUTLOOK 2015

Next Destinations: The Global Landscape

~.~. ~~ A. K. UPADHYAY

NBAA 2015 MARKET UPDATE

2 AGATTI Airports Authority of India, Agatti Airport Controller

HOSPITALITY INDUSTRY WITH SPECIAL REFERENCE TO RAJASTHAN

TOURISM DEVELOPMENT AND ITS IMPACT ON THE INDIAN ECONOMY

III. TRADE IN COMMERCIAL SERVICES BY CATEGORY

ECONOMIC REFORMS AND THEIR IMPACT ON CIVIL AVIATION. CIVIL AVIATION - AN ECONOMIC CATALYST. WIDER SPIN-OFF BENEFITS.

February 18. National Parks in India

AIRPORT MODERNISATION IN INDIA By K Roy Paul Secretary, Ministry of Civil Aviation, India and Chairman, Air-India Limited

Year on year average room rate and room supply

2017 INDIA STATE RANKING SURVEY

An Overview of Airport Infrastructure in India. By V.P.Agrawal, Chairman, Airports Authority of India

Tourism in India: Potentials, Challenges and Opportunities

Economic Impact of Tourism in Hillsborough County September 2016

Sustainable Tourism for Development

PHYSIOGRAPHIC DIVISION OF INDIA

ATE 2015 Special series:

1 ST HALF 2013 HOSPITALITY HIGHLIGHTS KLANG VALLEY / KUALA LUMPUR. Tourist Arrivals Boom!!!

Lesson Plan. Pilgrimage Tourism. Tourism Documentation

Economic Impact of Tourism in South Dakota, December 2018

Former Yugoslav Republic of Macedonia (FYROM)

The Economic Impact of Tourism in North Carolina. Tourism Satellite Account Calendar Year 2015

Land area 1.73 million km 2 Queensland population (as at December 2016) Brisbane population* (preliminary estimate as at 30 June 2016)

TOURISM & HOSPITALITY

Annual revenue crosses US$ 2.5 billion

LEBANON: A DIVERSE ECOTOURISM DESTINATION IN THE EAST-MEDITERRANEAN. Prepared by: Dr. Jacques Samoury NGER National Expert

Maximizing Economic Benefits of Aviation in the Region

DR.M.K.K.ARYA MODEL SCHOOL SOCIAL SCIENCE CLASS IV ASSIGNMENT CH-8 THE SOUTHERN PLATEAU

Travel is the only thing you buy that makes you richer.

Tourism and the G20. Ian Goldin Director, James Martin 21 st Century School Professorial Fellow, Balliol College University of Oxford

Tourism in numbers

Third scorpene submarine 'Karanj' was launched from Mazgaon Badargaon

Transcription:

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. 2.1.1. 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 2009. 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 2009. Boosted by improved economic conditions in 2010, the worldwide international tourism recovered faster than expected from the impacts of global 42

financial crisis and economic recession of late 2008 and 2009. 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 2010. 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 2011. 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

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 2011. 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 2013. 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 2004 762.0 10.3 2005 803.4 5.4 2006 846.0 5.3 2007 894.0 5.7 2008 917.0 2.6 2009 883.0-3.7 2010 948.0 7.4 2011 995.0 4.9 2012 1035.0 4.0 2013 1087.0 5.0 Source: (i) UNWTO Tourism Market Trends 2007 Edition, for the years upto 2005. (ii) UNWTO Barometer June 2010 for 2006 and January 2011 for 2007 (iii) UNWTO Tourism Highlights 2011 Edition for 2008 and 2012 Edition for 2009. (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 1200 1000 800 600 400 200 0 Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year 44

According to World Trade Organization projections, international tourist arrivals are forecasted to reach 1.8 billion by 2030. International tourism will continue to grow during the year 2014-2030, 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 2030. 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

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 (%) (%) 1995 2010 2020 1995-2020 1995 2020 World 565.4 1,006.4 1,561.1 4.1% 100.0% 100.0% Europe 338.4 527.3 717.0 3.0% 59.8% 45.9% East 81.4 195.2 397.2 6.5% 14.4% 25.4% Asia/Pacific South Asia 4.2 10.6 18.8 6.2% 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

2.1.2. 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 2008. 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$ 633.2 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 2004-2013. 47

(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 2004 633.2 19.6 2005 679.6 7.3 2006 744.0 9.5 2007 857.0 15.2 2008 939.0 9.6 2009 853.0-9.2 2010 931.0 9.1 2011 1042.0 11.9 2012 1078.0 3.5 2013 1159.0 7.5 Source: (i) UNWTO Tourism Market Trends 2007 Edition, for the years upto 2005.1 (ii) UNWTO Barometer June 2010 for 2006 and January 2011 for 2007 (iii) UNWTO Tourism Highlights 2011 Edition for 2008 and 2012 Edition for 2009. (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 2013 1400 1200 1000 800 600 400 (in US$ Billion) 200 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year 2.1.3. 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

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 2012. 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 2014-2024, to US$3,379.3 billion (3.1% of total GDP) in 2024. The total contribution of Travel & Tourism to GDP was US$ 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 2024. 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 2024. 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

Year Visitor exports generated US$1,295.9 billion (5.4% of total exports) in 2013. This is forecast to grow by 4.8% in 2014, and grow by 4.2% p.a., from 2014-2024, 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 2004 1338.28 3.10 4149.09 9.80 95794.20 3.50 256473 9.50 410.85 4.50 2005 1430.76 3.10 4477.24 9.70 97001.20 3.50 258476 9.50 482.01 4.80 2006 1547.20 3.10 4858.35 9.80 100886.0 3.60 266950 9.60 545.22 4.90 2007 1725.91 3.00 5464.77 9.70 100174.00 3.50 274312 9.70 640.97 5.00 2008 1818.71 2.90 5919.15 9.60 100250.00 3.50 264190 9.20 737.58 5.20 2009 1686.88 2.90 5472.57 9.40 97292.400 3.30 256076 8.90 640.99 5.00 2010 1813.33 2.80 5858.70 9.20 97779.40 3.30 253000 8.60 674.48 4.80 2011 2011.45 2.80 6492.00 9.20 99498.10 3.30 257348 8.70 750.66 4.70 2012 2056.70 2.80 6631.01 9.20 101118.0 3.30 261394 8.70 764.85 4.70 2013 2155.40 2.90 6990.30 9.50 100894.00 3.40 272417 8.90 813.05 4.70 Source: World Travel & Tourism Council Data 2013. 50

(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 8000 7000 6000 5000 4000 3000 2000 1000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 104000 102000 100000 98000 96000 94000 Travel & Tourism Industry Contribution to World Employment 92000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2.2. 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

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

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

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. 2.2.1. 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

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$ 18.445 billion (Global rank-16) up 4.0% from previous year figure of US$ 17.737 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 2001-10 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 2013. 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 2013. 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

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

2.2.2. 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 1982. 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

also for rural tourism infrastructure projects (see Annexure-I). The Ministry also ensured that 10% and 2.5% of its total Annual Plan (2012-13) 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

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 2012. 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

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 2.2.3. 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 2009. During the year 2009, India witnessed a negative 60

growth of 2.2 % over 2008. However, growth rate for India was better than that the negative growth of 4.2% registered for the world during 2009. 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 2010. The growth rate in FTAs during 2011 over 2010 was 9.2% as compared to 11.8% during 2010 over 2009. The growth rate of 9.2% in 2011 for India was better than growth rate of 5% for the International Tourist Arrivals in 2011. The number of Foreign Tourist Arrivals (FTAs) in India during 2013 increased to 6.97 million from 6.58 million in 2012. The growth rate in FTAs during 2013 over 2012 was 5.9% as compared to 4.3% during 2012 over 2011. The growth rate of 5.9% in 2013 for India was better than the growth rate of 5% for the International Tourist Arrivals in 2013. 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 2004 3.46 26.8 2005 3.92 13.3 2006 4.45 13.5 2007 5.08 14.3 2008 5.28 4.0 2009 5.17-2.2 2010 5.78 11.8 2011 6.31 9.2 2012 6.58 4.3 2013 6.97 5.9 Source: Bureau of Immigration, Govt. of India. 61

In Million Graph 2.5: Foreign Tourist Arrivals (FTAs) in India from 2004 to 2013 FTAs from Tourism in India (In Million) 8 7 6 5 4 3 2 1 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2.2.4. 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.54960 crore as compared to Rs.50730 in 2008 registering a growth of 8.3 % in 2009 over 2008. In 2011, FEE were increased to Rs.77591 crore as compared to Rs.64889 crore in 2010 registering a growth of 19.6 % in 2011 over 2010. In 2013, Foreign Exchange Earnings stood at Rs.107671crore (Global rank- 16) up 21.8% from previous year (2012) figure of Rs.94487crore. The FEE from tourism in India, in INR terms, during 2004-2013 are given in Table 2.6. 62

in crores Table 2.6: Foreign Exchange Earnings (FEE) from Tourism in India, 2004-2013 Year FEE from Tourism in India (In Crore) Percentage (%)Change over the Previous Year 2004 27944 34.8 2005 33123 18.5 2006 39025 17.8 2007 44360 13.7 2008 51294 15.6 2009 53700 4.7 2010 64889 20.8 2011 77591 19.6 2012 94487 21.8 2013 107671 14.0 Source: (i) Reserve Bank of India, for 2004 to 2010. (ii) Ministry of Tourism, Govt. of India, for 2011, 2012 & 2013. Graph 2.6: Foreign Exchange Earnings (FEE) from Tourism in India, 2004-2013 120000 FEE from Tourism in India (In Crore) 100000 80000 60000 40000 20000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 63

2.2.5. 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 2013. 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 2012. 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 1085309 15.58 2. United Kingdom 809444 11.62 3. Bangladesh 524923 7.53 4. Sri Lanka 262345 3.77 5. Russian Fed. 259120 3.72 6. Canada 255222 3.66 7. Germany 252003 3.62 8. France 248379 3.56 9. Malaysia 242649 3.48 10. Japan 220283 3.16 Total of Top 10 Countries 4159677 59.70 Others 2807924 40.30 Grand Total 6967601 100.0 Source: Bureau of Immigration, Govt. of India. 64

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% 2.2.6. 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 16.63 million in 2013. 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 2011. 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 2.8. 65

In Millions Table 2.8: Number of Indian Nationals Departures (INDs) from India, 2004-2013 Year No. of Indian National Departures (In Million) Percentage (%) Change over the Previous Year 2004 6.21 16.1 2005 7.18 15.6 2006 8.34 16.1 2007 9.78 17.3 2008 10.87 11.1 2009 11.07 1.8 2010 12.99 17.4 2011 13.99 7.7 2012 14.92 6.7 2013 16.63 11.4 Source: India Tourism Statistics at a Glance, 2013 Graph 2.8: Number of Indian Nationals Departures (INDs) from India, 2004-2013 18 No. of Indian National Departures (In Million) 16 14 12 10 8 6 4 2 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 66

2.2.7. 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 2013. There has been a continuous increase in domestic tourist visits to all States/UTs from 366.27 million in 2004 to 1145.28 million in 2013. 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 2011. Table 2.9: Number of Domestic Tourist Visits (DTVs) to all States/UTs in India, 2004-2013 Year No. of Domestic Tourist Visits to States/UTs (In Million) Percentage (%) Change over the Previous Year 2004 366.27 18.5 2005 392.01 7.0 2006 462.32 17.9 2007 526.56 13.9 2008 563.03 6.9 2009 668.80 18.8 2010 747.70 11.8 2011 864.53 15.6 2012 1045.05 20.9 2013 1145.28 9.6 Source: State/ Union Territory Tourism Departments. India Tourism Statistics at a Glance, 2013. 67

In million Graph 2.9: Number of Domestic Tourist Visits (DTVs) to all States/UTs in India, 2004-2013 1400 1200 1000 800 600 400 200 0 No. of Domestic Tourist Visits to States/UTs 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2.2.8. 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 2013. The foreign tourist visits have been increasing over the years, though there was a decline in the years 1992, 1998, 2001, 2002, 2009 and 2012. The foreign tourist visits to all States/UTs witnessed a growth from 8.36 million in 2004 to 19.95 million in 2013. 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 2011. 68

In Millions Table 2.10: Number of Foreign Tourist Visits (FTVs) to all States/UTs in India, 2004-2013 Year No. of Foreign Tourist Visits to States/UTs (In Million) Percentage (%) Change over the Previous Year 2004 8.36 24.6 2005 9.95 19.0 2006 11.74 18.0 2007 13.26 12.9 2008 14.38 8.5 2009 14.37-0.1 2010 17.91 24.6 2011 19.50 8.9 2012 18.26-6.3 2013 19.95 9.2 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, 2004-2013 25 No. of Foreign Tourist Visits to States/UTs (In Million) 20 15 10 5 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 69

2.2.9. 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 2013. 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 2013. 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

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 24423248 21.3 2 Uttar Pradesh 22653109 19.8 3 Andhra Pradesh 15210215 13.3 4 Karnataka 9801014 8.6 5 Maharashtra 8270055 7.2 6 Madhya Pradesh 6311070 5.5 7 Rajasthan 3029815 2.6 8 Gujarat 2741251 2.4 9 West Bengal 2554730 2.2 10 Chhattisgarh 2280103 2.0 Total of Top 10 States 97274613 84.9 Others 17253431 15.1 Total 114528044 100.0 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

2.2.10. 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 2013. 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 4156343 20.8 2 Tamil Nadu 3990490 20.0 3 Delhi 2301395 11.5 4 Uttar Pradesh 2054420 10.3 5 Rajasthan 1437162 7.2 6 West Bengal 1245230 6.2 7 Kerala 858143 4.3 8 Bihar 765835 3.8 9 Karnataka 636378 3.2 10 Goa 492322 2.5 Total of Top 10 States 17937718 89.9 Others 2013308 10.1 Total 19951026 100.0 Source: State/UT Tourism Departments. 72

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% 2.2.11. 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 2014-2024, to INR4,346.4 billion (2.1% of total GDP) in 2024. 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 2024. 73

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 2024. 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 2013. 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) 2004 17.201 2.4 60.486 8.7 22185.3 5.2 46323.3 11.0 5.642 2.9 2005 16.506 2.0 56.735 7.0 21180.3 4.9 40395.8 9.3 8.840 3.6 2006 18.987 2.0 65.226 7.1 23104.0 5.3 40698.7 9.3 15.990 5.6 2007 24.066 2.0 84.118 72 21981.1 5.0 44432.3 10.1 12.667 3.3 2008 26.681 2.0 92.331 7.2 23676.5 5.3 36712.9 8.3 35.768 8.4 2009 25.412 2.0 82.898 6.5 22495.9 5.0 34666.9 7.8 23.328 5.8 2010 31.626 1.9 102.039 6.2 21717.9 4.8 33930.5 7.6 28.845 5.5 2011 36.438 1.9 116.816 6.2 22045.7 4.9 34853.5 7.8 33.091 5.7 2012 36.650 2.0 112.373 6.1 22202.6 4.9 35254.8 7.8 31.833 5.8 2013 37.185 2.0 113.214 6.1 22320.2 4.9 35438.5 7.7 33.098 6.2 Source: World Travel & Tourism Council Data 2013. 74

In Thousands In US$ Billion Graph 2.13: Tourism Industry Contribution to India GDP, Employment and Capital Investment 140 120 100 Travel & Tourism Industry Contribution to GDP 80 60 40 Direct Total 20 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 Travel & Tourism Industry Contribution to Employment 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Direct Total 2.2.12. 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 3.4.2013 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

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 31.12.2013 are presented in below Table 2.14. Table 2.14: Number of Approved Hotels and Availability of Hotel Rooms in the Country, as on 31 st December, 2013. Sl. No. Category of Hotels No. of Hotels No. of Rooms 1 One Star 86 2253 2 Two Star 122 3160 3 Three Star 634 26463 4 Four Star 114 8250 5 Five Star 86 10033 6 Five Star Deluxe 108 22173 7 Apartment Hotels 3 249 8 Time Share Resorts 1 31 9 Heritage Hotels 49 1394 10 Silver Bed & Breakfast 6 23 Establishment 11 Unclassified 33 2829 Total 1242 76858 Source: India Tourism Statistics at a Glance, 2013 2.2.13. 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, 288 76

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 2.15. Table 2.15: Number of Operators Approved by the Ministry of Tourism in the Country, as on 31 st December, 2013. Sl. No. Operator Nos. 1 Travel Agent 288 2 Inbound Tour Operator 444 3 Tourist Transport Operator 131 4 Adventure Tour Operator 32 5 Domestic Tour Operator 76 Total 971 Source: India Tourism Statistics at a Glance, 2013 2.3. Tourism Industry in Karnataka 2.3.1. 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 1973. 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

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