The world tourism organization (UNWTO) forecasts international tourism will continue growing at the average annual rate of 4% by 2020. Europe will remain the most popular destationation but its share will drop from 60% in 1995 to 46%. According to the industry experts, the global tourism industry is rapidly growing due to fast opening of new tourist destinations and slowing down of the old ones. This is providing more opportunities to the global tourism industry to expand its realms. Developing countries, particularly India, Latin America, Ex Soviet Union and China, are aggressively promoting their tourism industry on the back of strong economic growth and improving status of the people. People in these countries prefer to spend their leisure time in traveling which is boosting growth in the global tourism industry. World Travel & Tourism Council, in its projection covering 174 countries, has predicted an annual growth rate of 8.8% over the next decade for India, the highest in the world. The target is to reach a figure of 10 million tourist arrivals by the year 2010.
Space tourism is expected to "take off" in the first quarter of the 21st century, although compared with traditional destinations the number of tourists in orbit will remain low until technologies such as a space elevator make space travel cheap.
The Indian Travel tourism Amusement & Entertainment industry has emerged as one of the key sectors driving the country's growth and is thriving to a huge surge in both business and leisure travel by foreign and domestic tourists. The Indian tourism industry is one of the fastest growing industries in the country. It provides vast opportunities to entrepreneurs in different segments. Also, the rising number of foreign visitors proves profitable for the country’s government as it brings huge amount of foreign currency.
India represents one of the most potential tourism markets in the world. It has expanded rapidly over the past few years and underpinned by the government support, rising income level and various international sports events, the Indian tourism industry will continue to grow at the fastest pace in the coming years. However, the industry may have to cope up with several challenges which will limit its growth.
India is expected to see an influx of 10 Million international tourists by 2010, up from just 5 Million in 2007.
The Ministry of Tourism (MoT), India, said that the country witnessed a rise of about 12% in tourist arrivals during H1 2008 over H1 2007
According to the MoT, about 22% rise was recorded in foreign exchange earnings from tourism industry, reaching nearly $6.21 Billion in H1 2008 as compared to around $5.08 Billion in H1 2007. Presently, the Indian tourism industry stands at about $16 Billion and is likely to reach nearly $26 Billion through 2010. The country is anticipated to see the arrival of 10 Million tourists during 2010 from only 5 Million in 2007. As far as outbound tourism is concerned, according to it is projected to rise at a CAGR of 13.30% from 2008 to 2012 due to rising personal disposable income of the Indians. Consequently, the Indian tourism industry is expected to contribute nearly 1.5% in the global tourism sector by 2010.
India received 5 Million foreign tourists in 2007 registering an increase of 12.4% over the previous year. The foreign exchange earnings increased to estimated 11620 US $ million in 2007 registering an increase of 30.1% over the previous year. According to the latest report by Deloitte Touche, the long term outlook for Indian tourism industry will remain positive. By taking into the consideration the observations of other noted agencies like the world travel and tourism council (WTTC), it states that Indian tourism Industry will generate $ 42.8 billion by 2017, an estimated 42% increase from 2007. The report has also agreed with a WTTC projection that India is expected to grow faster in travel and tourism than any other destination in the world between 2009 – 2018. In 2008, international tourist arrivals reached 924 million, up 16 million over 2007, representing a growth of 2%. The Tourism sector has also witnessed huge buoyancy in recent times. India, today, is a transformed tourist destination – competing to give the best to the visitors. Improvements in accessibility and infrastructure, well trained human resources, diversification of the tourism product and an integrated marketing campaign under the banner ‘Incredible India’ have helped India achieve an unprecedented growth, in terms of, both, volume and value.
The primary reason for the growth of the Indian tourism industry is the planned promotion of tourism sector by the Indian government. The Cruise Shipping Policy of India is approved by the Cabinet Committee on Economic Affairs. Also, with the availability of various private healthcare facilities for tourists, India is able to promote its medical tourism. Moreover, individual state tourism of the country is promoting itself for further growth and to gain profits. The “Incredible India” campaign has infused growth in the Indian tourism industry in past few years. The rising number of tourists from the US and the UK has made the two countries biggest source markets for the tourism industry of the country. Over 31% of foreign tourists visiting India are from these two countries, followed by France and Canada, says the sources. Also, due to increasing wealthy Indian population, domestic tourism is growing in the country.
The new promotional initiatives by the government are boosting growth into the Indian tourism sector. The booming industry is bringing huge foreign currency and thus, leading to improvement in the country’s economic conditions. Also, growth in tourism sector will provide more employment opportunities in hotel and tourism industry.
This growth and a successful campaign have won India wide spread international recognition in the field of tourism.
Conde Nast Traveller UK, the world’s leading travel and tourism journal has ranked India as the Number 1 preferred holiday destination of the world.
TTG Asia Travel Group has chosen India as the Destination of the Year in the 18th TTG Travel Awards 2007.
Lonely Planet has selected India amongst the top 5 destinations, in a survey of 167 countries.
ABTA (Association of British Travel Agents) had ranked India as No. 1 amongst top 50 places for 2006.
The Ministry of Tourism has won the PATA Grand Award for Marketing, for the year 2007.
The Incredible India Campaign has been the winner of PATA Gold Award for Best Print Ad Campaign and PATA Gold Award for Best Destination Marketing Campaign.
The Incredible India Campaign has been ranked as the Highest Recall Advertisement
Worldwide by Travel and Leisure.
World Travel Awards received in 2006 for (a) Asia’s Leading Destination (b) World’s Leading Travel Destination Television Commercial and (c) World’s Leading Responsible Tourism Project.
Tourism, in India, is being positioned as a major engine of economic growth and efforts are being made for optimally harnessing its direct and multiplier effects for employment generation and economic development in the country.
The growing tourism sector of the country is providing huge growth opportunities to both large and small scale tourism-related industries. This growth is also beneficial for hotel industry and travel agencies. The Indian hotel industry is generating more than 50% of its revenue through rents. Tourist influx to India is expected to increase at a CAGR of 22.65% between 2007 and 2011. India’s share in global tourism is expected to reach 1.5% by 2010; already its inbound tourist expenditure per head is the third highest in the world. The entire tourism sector and its allied industry are promoting healthcare facilities in order to attract more tourists; this is expected to reach one million by 2012. However, a rapid transformation can be witnessed in the domestic hospitality industry of India as many hotel groups are investing in new properties across the country India presently has around 100,000 star-category hotel rooms. With the business travel growing at a rapid pace and with the major growth in tourist arrivals, there is a growing demand for star category hotels, which presents tremendous opportunity for investment in hotel sector in India. India has taken the initiative to make available Bed & Breakfast establishments, which are common in Europe. The new scheme to register these home stay facilities have already been put in place.
India is being promoted as a 365 day, round-the-year destination, with varied attractions and activities to attract all interests and age groups. The tourism products of the country are being diversified with new and niche products being developed and promoted.
Initiatives of Government in Promoting Tourism sector in India:
Foreign Investment:
Foreign investment in the Tourism Sector is encouraged and overseas investors are allowed to invest up to 100% equity on repatriation basis. Foreign companies like Kuoni and Thomas Cook have been extremely successful. Investments in Hotel projects in India have earned high rate of return. Leading international chains of hotels have already established their presence in India, while at the same time; Indian chains like Taj and Oberoi have made their presence abroad.
Connectivity:
With a view to providing better air connectivity the Aviation Policy has been radically liberalized. The imbalance in demand and supply has been corrected. An Open Sky Policy during Peak season is one of the features of the liberalized policy. Modernization of airports is also being given priority. Other initiatives taken to facilitate tourists visiting the country include an Advance Passenger Information System that has been introduced for Air India flights landing at Delhi and Mumbai airports and issue of Long Term Visas of five year duration, with multi entry facilities for nationals of 18 countries.
Rural Tourism:
In the Tourism initiative, a number of rural sites have been identified to showcase rural life, art, culture and heritage, nature and landscape in and around such villages. This programme encourages greater interaction between the tourists and the rural population and provides an enriching experience to the tourists.
With the growing interest amongst tourists from the world over to experience the rich culture and heritage of our country, India is today, becoming a preferred venue for Meetings, Incentives, Conferences and Exhibitions and boasts of some world class convention centres. MICE Tourism is a growing segment and a major initiative taken to boost this sector.
Other niche products being promoted include the Heritage Hotels, Luxury Tourist Trains, Cruise Tourism, destination for Golf Holidays and India as a Shoppers’ paradise.
Medical Tourism:
Asia represents the most potential medical tourism market in the world. In 2007, the region generated revenues worth US$ 3.4 Billion, accounting for nearly 12.7% of the global market. The report draw the fact that the ageing population, particularly in the developed world, is increasing rapidly, putting an extra demand on an already overburdened health infrastructure, thus creating huge opportunities in the Asian medical tourism market. India has a rich heritage in the areas of traditional and natural medicine, Yoga and spiritual practice. It has also made tremendous advancements in providing modern medicine and healthcare facilities at very competitive rates. The introduction of the Medical Visa for one year, extendable up to three years is also a step in the right direction towards encouraging Medical Tourism. India is a big player in the medical tourism industry. In fact, it has been ranked the most popular medical tourism destination by many. Apart from the contribution of government and hospitals in improving the health care service in India, what truly gives that edge to India over other medical tourism destinations is the innumerable rejuvenation options it offers and the easiness of stay in India. India is the birth place of Yoga, which is one of the most popular forms of exercise and rejuvenation today. There are almost an infinite number of Spa and rejuvenation centers in India that could uplift the mood and enhance health of medical tourists. India is a tourist’s paradise and when in India for medical treatment, tourism comes as a co-benefit of medical tourism. Unlike other exotic destinations in the world, it is surprisingly easy to commute, stay and converse in India. People in India are extremely warm and have a sound command over English. All these factors make India the sought after destinations for medical tourism and India is now equipped to cater to the fast growing demand for health care in India. In order to cope with the growing demand for medical care, hospitals, medical practitioners and even governments have taken measures to promote health care in India and millions of dollars are being pumped in rigorously. When it comes to health care, safety is the foremost concern. The hospitals in India are well equipped with the latest technology and houses highly qualified and experienced staff who can provide timely and quality medical treatment to patients. As a move in promoting medical tourism, many hospitals are deemed as “corporate hospitals” that specially cater to the needs of medical tourists in India. Apart from offering world class treatments, they offer various services that make medical tourists’ stay in India hassle free. Many hospitals in India have international accreditations that certify the quality of health care service. Indian Government has acknowledged the growth of medical tourism in India and is now offering Medical Visas. The initial period for a medical visa may be up to a period of one year or the period of treatment whichever less, which can be extended for a further period up to one year be the State Government/ FRROs on the production of medical certificate/ advice from the reputed/ recognized/ specialized hospitals in the country. Any further extension will be granted by the Ministry of Home Affairs only on the recommendations of the State Government/ FRROs supported by appropriate Medical documents. Such visa will be valid for maximum three entries during one year. Today, the Indian tourist is all the more eager to spend more for his holidays and adventures both on domestic as well as foreign travel due to the rise in disposable income. On the other hand the foreign tourists are eager to explore India as well as for their health treatment. Currently Medical tourism is now a US$ 299 million industry with 100,000 patients coming each year which can easily go up to US$ 1.7 billion. Liberalization efforts on the part of Indian government such as limited open sky policy, entry of low cost carriers leading to reduced fares, allowing domestic airlines to fly on few international destinations.
Key Facts:
More than 2.9 Million patients visited Thailand, India, Singapore, Malaysia and the Philippines for medical tourism in 2007.
India, with its low cost advantage and emergence of several private players, represents the fastest growing market. The country’s questionable sanitary perceptions in the west are, however, a major roadblock for growth.
The Asian medical tourism market is expected to grow at a CAGR of 17.6% between 2007 and 2012.
Leisure Industry:
Recreation Industry is currently one of the most exciting sectors in India. The current market for leisure is estimated to cross USD 1 bn in next few years. The leisure industry mainly consist of amusement park, malls family entertainment centers (FECs) and multiplexes. The present consumer base is estimated around 30 million people. At present there are around 200 FECs in the Country and the number is expected to grow to 400 in the next couple of years. Amusement parks contribute nearly 40% of the total leisure industry turnover. In 1993 there were only 2 parks with an investment of approximately USD 3 million, while at present there are around 55 parks in the Country.
Andhra Pradesh Tourism
Andhra Pradesh, The heart of the south India. Here, the Muslim, Buddhist and Hindu faiths formed a brilliant mosaic of cultures. With its eyes on the Pacific Rim of countries, the growing port could become the most powerful in Asia by the 21st century.
Andhra Pradesh is the leading Indian state that attracts a large number of both domestic and international tourists and ranks first among all the states in terms of tourist arrivals. Source: “Indian Tourism Industry Analysis”, a new research report from RNCOS.
According to RNCOS report, the reason for attracting the highest number of tourists by Andhra Pradesh is its scenic beauty and unique amalgamation of diverse cultures. People come here to see architectural sites, heritage monuments, prosperous temples, rich flora and fauna, exotic hill stations, cascading waterfalls, sparkling lakes, lofty hills and Buddhist pagodas. Moreover, the world’s richest temple at Tirupati is one of the main attractions of Andhra Pradesh, drawing tourists from all around the globe.
Tourists with interest in primitive architectures come to Andhra Pradesh as it has remains of many famous dynasties as old as 300 BC and Buddhist centers. Furthermore, the state is distinct for its local food, cuisines, delicacies, exquisite handicrafts, vibrant festivities and hospitable nature of people that make visit to the state an unforgettable experience.
With over 500 tourist sites across the state, Andhra Pradesh is a booming tourist destination in India. The government has launched 68 projects in the last four years with the total investment of US$ 368.293 Million to promote its tourism industry. And 88 projects with total cost of US$ 197.561 Million have been kicked off by the private sector due to the state’s proactive role.
Key Facts:
Andhra Pradesh, Uttar Pradesh, Tamil Nadu, Karnataka and Rajasthan are the leading tourism destinations in India in terms of total tourist arrivals.
India has been promoting its healthcare tourism by providing the visitors with private healthcare facilities. It is expected that the total market for medical tourism will reach US$ 2 Billion by 2012, representing a CAGR of 60.69%.
Indian outbound tourist flow is expected to increase at a CAGR of 13.30% over the five-year period spanning from 2008 to 2012.
India’s share in the global tourism is expected to reach 1.5% by 2010.
Acknowledging the vast potential and spin-off tourism has on other industries, the Government of Andhra Pradesh is focusing on tourism for generating greater employment and achieving higher economic growth. The Chief Minister of Andhra Pradesh had already approved the ambitious plan of the Tourism Department to develop an exclusive tourist corridor along the coastline of the State. Andhra Pradesh has the vision to become the destination state of India, given its attractive diversity, natural endowments and friendly population. Andhra Pradesh has a rich tourist potential, which is yet to be explored. Andhra Pradesh has great potential for tourism with its temple towns, beach resorts, monuments and other tourist attractions. With the commissioning of New International Airport in Hyderabad direct flights to International destinations has further improved. Hyderabad is being developed as a major transit hub between Europe and the Far East.
"Andhra Pradesh Unlimited", the strategy developed by the Govt. of Andhra Pradesh recognizes the advantage of offering the collective attractiveness of other places in this region. It has plans to decentralize tourism development to districts and local bodies. This policy will also encourage private sector in the tourism industry and provide a frame work for private-public partnership.
To encourage private investment in tourism and related industry, various incentives and concessions are being offered by the Government of Andhra Pradesh. In keeping this objective and spirit, taxation has been attempted to be rationalized on the logic of intelligent taxation to enable private sector to expand tourism.
Rural Tourism in Andhra Pradesh:
Rural Tourism in Andhrapradesh is growing at a rapid pace , and the department of tourism has created a win-win situation for the villagers and tourism in the state by involving Local NGOs in rural tourism initiatives.
A dedicated drive to promote rural tourism in Andhrapradesh is providing several opportunities to inbound tourists to do activities which they may not get to do in their own backyard , Exposure to basket Weaving , pottery making , village handicrafts and handlooms weaving , bird watching , fishing campfires , bullock-carts rides , trekking and boating are some of the activities which are available for tourists currently there are eight rural tourism projects in the state two of which are supported by the united nations development program ( UNDP) The remaining Six are managed directly by the state Government , UNDP Is supporting Pochampalli and Sri Kalahasti, the state government on its own is developing areas such as Konaseema, Gadwall, Nirmal, Dharmawaram, Etikoppaka and Narsapur. Developmental activities in all these areas have already begun and the projects will be officially lunched by 2010. The world tourism organization and other internationally reputed tourism consultants have studied the precepts and identified potential tourism projects to be taken up by the private sector. Investments in tourism projects for the next 10years are expected to be around $60 billions (Rs. 252,000 Crores)
