ME ppt tourism final

FACULTY OF

(MANAGERIAL ECONOMICS)

STUDENTS OF

MBA (CORE) I SEM SEC B

UNDER GUIDANCE OF:-

◦ DR. ROOPAL CHOUDHARY

PRESENTED BY:-

◦ ANKIT MANGAL◦ MANISHA JHARIA◦ PREETI VERMA◦ RAHUL JAIN◦ SAMEER

Tourism is the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business or other purposes.

Tourism is a dynamic and competitive industry that requires the ability to constantly adapt to customers' changing needs and desires, as the customer’s satisfaction, safety and enjoyment are particularly the focus of tourism businesses.

TypesTourism encompasses:

Outbound TourismOutbound tourism involves the business of people going from India to other provinces, territories or countries. For example, going to Hawaii in February is considered outbound tourism.

Inbound TourismIndia competes in a global market to attract tourists from the United States, Japan, Germany and many other countries. The tourists coming to India from other places are called inbound tourists.

SectorsThe tourism industry is divided into five different sectors:

Accommodation Food and Beverage Services Recreation and Entertainment   Transportation Travel Services

It catalyses private investment, strengthens promotional and marketing efforts & helps in providing trained manpower resources.

The Ministry has a public sector undertaking, namely the 'India Tourism Development Corporation (ITDC)' for carrying out its various functions, along with the following autonomous institutions:-

Indian Institute of Tourism and Travel Management (IITTM) National Institute of Water Sports (NIWS) has merged with IITTM; National Council for Hotel Management and Catering Technology (NCH

MCT) 

Institutes of Hotel Management (IHM).

National Tourism Policy (formulated in the year 2002), which aims to develop tourism in India in a systematic mannerThe broad objectives of the policy are to:-

The Ministry of Tourism has been broadly implementing/ implemented the following schemes/programmes:-

Scheme for Product/ Infrastructure Development and Destination and Circuits

Scheme for Integrated Development of Tourist Circuit Scheme of Assistance for Large Revenue Generating (LRG) Projects Scheme of Capacity Building for Service Providers (CBSP) Scheme of Rural Tourism Scheme of Financial Assistance to States for Organization Tourism Relate

d Events Scheme of Central Financial Assistance for Information Technology (IT) P

rojects Scheme for Support to Public Private Partnership in Infrastructure Develop

ment (Viability Gap Funding) Scheme of Market Development Assistance (MDA) Capital Subsidy Time Share Resorts (TSR) Market Research- Professional Services

World Travel Awards received for◦ Asia’s Leading Destination◦ World’s leading Travel Destination Television Commercial◦ Worlds’ Leading Responsible Tourism Project, for Endogenous Tourism

Project◦ Asia’s leading tourism and convention bureau

These awards are presented to State Governments, classified hotels, heritage hotels, approved travel agents, tour operators and tourist transport operators, individuals and other private organizations in recognition of their performances in their respective fields.

For instance, awards for ◦ best adventure tour operator, ◦ best domestic tour operator,◦ most innovative tour operator, ◦ best tourist transport operator, ◦ best hotels in the different categories, etc.

Awards are also given to the meritorious students of the Institutes of Hotel Management as well as Indian Institute of Tourism and Travel Management.

The government is lending a hand to the growth of the industry. In the Union Budget for 2003-04, government has extended infrastructure

status to tourism, thus opening the doors to cheap, long-term funds to help finance tourism infrastructure.

Outlay for tourism for the Tenth Five Year Plan is Rs. 2900 Crore. The Government of India has extended the benefits of Section 10(23G) of

the Income Tax Act, 1961 to institutions financing hotels of three-star category and above.

The divestment of government’s stake in government run hotels is another step in the right direction. Professionals are increasingly stepping in to take over this service-oriented industry.

Incredible India is a multi-pronged promotional campaign launched by the Ministry in order to position the country as a preferred tourist destination for the travellers the world over.

As a result of all such efforts, India's share in international tourist arrivals, which was 0.46 per cent in 2004 has increased to 0.49 per cent during 2005; and further to an estimated 0.52 per cent in 2006 and 0.55 per cent in 2007.

The foreign tourist arrivals has increased from a level of 3.46 million in 2004 to an estimated 5 million in 2007.

Similarly, the foreign exchange earnings from tourism have also shown a phenomenal growth from US$ 6.17 billion (Rs.27944 crore) in 2004 to an estimated US$ 11.96 billion (Rs.49413 crore) in 2007.

The share of India in world earnings from tourism registered an increase from 0.98 per cent in 2004 to 1.21 per cent in 2006.

The number of domestic tourists in India have also grown phenomenally over this period, that is, from 366.23 million in 2004 to an estimated 462 million in 2006.

Swaagat or welcome, Sahyog or cooperation, Soochanaa or information, Sanrachanaa or infrastructure, Suvidha or facilitation, Safaai or cleanliness and Surakshaa or security.

'World Travel and Tourism Council (WTTC)' is the forum for business leaders in the travel and tourism industry.

It works to raise awareness of travel and tourism as one of the world's largest industries, employing approximately 231 million people and generating over 10.4 per cent of world GDP.

According to the WTTC, Indian tourism accounted for 9.9 per cent of global GDP, 11.0 per cent of the total world exports and 8.4 per cent of global employment in the year 2008.

By 2020, Tourism in India could contribute Rs 8,50,000 crores to the GDP. In other words, every man, woman and child could become richer by Rs

7,000. The Travel and Tourism industry holds tremendous potential for India's

economy. It can provide impetus to other industries, create millions of new jobs and generate enough wealth to help pay off the international debt. That is why they have included Tourism amongst the Core Sectors of the Indian Economy.

Cultural tourism & Round Trips – covering the popular circuits comprising of the Golden Triangle, Rajasthan, N. India & in South the well known temples, backwaters & beaches.

Commonwealth Games 2010 – the government is investing in infrastructure, to further develop tourism in and around Delhi.

Monsoon magic - focus on months from April to October

Rural & village tourism - the tourism ministry is laying special emphasis on infrastructure development in various rural destinations in India.

Medical tourism - the Indian Healthcare Delivery market is estimated at US$ 18.7 billion. The industry is growing at about 13 per cent annually.

Luxury tourism – e.g. Palace on Wheels, Palaces

Adventure tourism – with emphasis on eco-tourism and WILDLIFE tourism

Travel agencies, Tour operating agencies, Units providing facilities for cultural, adventure and wild life experience to

tourists, Surface, air and water transport facilities to tourists, Leisure, entertainment amusement, sport and health units for tourists Convention/seminar units and organizations. Thomas Cook, Cox & Kings India Limited, Star Luxury Cruises,

Queen Mary II Cruise Liners etc have launched full fledged operation in India

It provide impetus to other industries in the country and generate enough wealth to help pay off the international debt.

It is the third largest net earner of foreign exchange for the country.

The travel and tourism sector contributes to the national integration; preserves

natural and cultural environments; as well as enriches social and cultural lives of the people.

It has the capacity to create substantial job opportunities, particularly for unskilled and semi-skilled workers as well as to alleviate the poverty in the country. That's why, it has been regarded as the core sectors of the Indian economy.

India's booming tourism sector and its rapidly growing Western-style fast food joints offer unlimited opportunities for foreign food and beverage exporters, as Indian food imports are likely to grow 6-7 percent over the next few years, says a study.

To give recognition to tourism as a source of income and employment generator in the economy, a 'Tourism Satellite Accounting (TSA)' has been developed.

TSA enables the Ministry to quantify the benefits of tourism in terms of contribution to gross domestic product (GDP) and employment (both direct and indirect impacts).

India is among the few countries in the world to develop TSA. As per the TSA study, the contribution of tourism in GDP of the country has been 5.90 per cent in 2003-04, while employment in tourism sector (both direct and indirect) has been 41.8 million in the same year, thus accounting for 8.78 per cent of total employment in the country. 

According to the global authority for hotel real estate, Lodging Econometrics, there were 73,793 hotel rooms in the pipeline of which 11,207 were due to open in 2009 and 22,522 in 2010

International tourists account for a little over 5 million visitors, while domestic market is seen at more than 500 million.

The percentage of foreign tourists in India has increased by 12.4 percent in one year, that is, from 2006 to 2007. In 2006, Indian tourist industry witnessed a growth of 14.3 percent, which reached around 3.89 million in 2007

The foreign tourists arrival led to a robust growth in the foreign exchange earnings that increased from USD 5.03 billion during January-October 2006 to USD 6.32 billion during January-October 2007, which is apparently a 25.6 percent rise.

Deeming the growing rate of the tourists arrival in the country, the Indian tourism industry designed a wide spectrum of holiday packages and cheaper airfares to attract more tourists.

People travelling from India to abroad or states within India have increased by 25 percent.

The United Nations World Tourism Organization (UNWTO) has estimated the outgoing tourists to reach around 50 million by the year 2020.

According to the European Travel Commission, the average expenditure per trip of Indian tourists travelling abroad has increased from USD 611 in 2000 to USD 822 in 2006

The booming success of Indian tourism industry has led to a drastic change in the hospitality department as well. The increase in the ratio of tourists resulted in the increase of room rates and also setting up of a wide range of hotels and other residing areas.

A number of international hotels such as the Hilton, Accor, Marriott International, Berggruen Hotels, Cabana Hotels, Premier Travel Inn (PTI) and Inter Continental Hotels groups have professed about making some large-scale investments to append 65,000 additional rooms to suffice the needs

India is most likely to set up forty hotels of global brands by 2011. The hospitality segment in India is assumed to reach USD 11.41 billion in the coming two years

The online tourism industry has accounted for a turn over of USD 800 million which is apparently 14 percent of the entire travel and tourism industry

The Role of Tourism Industry in India GDP also features medical tourism that includes traditional therapies like yoga, meditation, ayurveda, allopathy and other conventional systems of medicines is currently estimated at USD 333 million and is most likely to reach USD 2.2 billion by the year 2012.

Industrialization, Education, Higher number of qualified professionals, Opening up of foreign markets, Liberal trade policies and better advertising Strategic marketing. Strategic planning of excursion packages, Eco-tourism, Sports events that bring the spot-light on India Greater patronage by greater number of mnc's heading to our shores Diversifications of the Indian open industries norm

The Indian tourism industry has not had it so good since the early 1990s. In 2009, the country is seen rising 6.5 percent, compared to the world output, which is seen falling 0.4 percent.

With Indian economy growing at around 7% per annum and rise in disposable incomes of Indians, an increasing number of people are going on holiday trips within the country and abroad resulting in the tourism industry growing wings.

The tourism sector is expected to perform very well in future and the industry offers an interesting investment opportunity for long-term investors.

The Indian tourism sector is seen generating $42.8 billion by 2017, a 42 percent surge from 2007, according to an industry research note by auditing and consulting firm Deloitte

Despite the numerous problems, tourism industry was the second-largest foreign exchange earner for India. Realising the potential in India, international and domestic hotel chains were rushing to cash in on it.

Tourist arrivals in the country slowed throughout 2008, after rising 13 percent year-on-year from 2005-2007, due to a slowdown in the main source markets for India, the U.S. and U.K., which account for more than 15 percent of all inbound tourists.

The challenges in the sector lie in successfully preserving these in their original form, and making them accessible to domestic and international travellers.

India offers various categories of tourism products, such as adventure tourism; medical tourism (ayurveda and other forms of Indian medications), eco-tourism; rural tourism; cruise tourism; meetings, incentives, conferences, and exhibitions (MICE) tourism; etc. 

Some major international events like 9/11, US-led war against terror and SARS hit the tourism industry over the past few years.

Cutting down of routes by domestic airlines and increase in airfares last year also led to a fall in the movement of people in the country.

The Mumbai terror attacks, targeting two premium hotels, also tarnished the country's reputation, drastically reducing hotel occupancy levels, and affecting year-end travel.

Expenses per night of stay for a tourist in India during the SE Asian currency crisis was $100 whereas it was around $35-40 in the SE Asian countries. This hurt Indian tourism.

High luxury and entertainment taxes and high landing charges applicable in Indian airports.

Costs are also high because tourism is a state subject. Each state separately spends on tourism and tourism related activities, whereas if these funds were spent in a cohesive manner by a nodal agency to showcase the entire country as one destination, the results would probably have been far more spectacular.