Promotion of Tourism in India

Transcription

1 Background Paper Pakistan Institute of Legislative Development A n d Tr a n s p a r e n c y

2 Background Paper Pakistan Institute of Legislative Development A n d Tr a n s p a r e n c y

3 PILDAT is an independent, non-partisan and not-for-profit indigenous research and training institution with the mission to strengthen democracy and democratic institutions in Pakistan. PILDAT is a registered non-profit entity under the Societies Registration Act XXI of 1860, Pakistan. Copyright Pakistan Institute of Legislative Development And Transparency - PILDAT All Rights Reserved Printed in Pakistan Published: October 2015 ISBN: Any part of this publication can be used or cited with a clear reference to PILDAT. Islamabad Office: P. O. Box 278, F-8, Postal Code: 44220, Islamabad, Pakistan Lahore Office: P. O. Box 11098, L.C.C.H.S, Postal Code: 54792, Lahore, Pakistan info@pildat.org Website:

4 CONTENTS Preface About the Author Introduction Tourism Scenario in India An Overview 1) Contribution to the Economy 2) Employment Generation 3) Capital Investment in India on Travel & Tourism 4) Share of India in World Tourism Traffic 5) Trends in Foreign Exchange Earnings 6) Trends in Domestic Tourism 7) National Tourism Policy 8) Plan Outlays for Tourism 9) Major Tourist Circuits and Destinations Role Of States/Union Territories in Tourism Development Challenges of Tourism Development in India Suggestions for Tourism Development in India Tourism in Rajasthan 1) An Overview 2) Major Tourist Destinations in Rajasthan 3) Tourist Traffic Trends 4) Institutional Framework for Tourism Development a. Department of Tourism (Dot) b. State Government Incentives to Tourism Units c. Recent Efforts at Privatisation of RTDC Properties and Issues of Concern d. Swot Analyis of Rajasthan Tourism Indusrty Conclusion List of Figures Figure 1: Total Contricution of Travel & Tourism to GDP Figure 2: Breakdown of Travel & Tourism's Total Contribution to GDP and Employment 2014 GDP ( 2014 INRbn) Figure 3: Foreign Tourist Arrival in India (in million) Figure 4: Top 10 Source Countries for Foreign Tourist Arrivals (FTAs) in India in 2014 Figure 5: Number of Foreign Tourist Visits to all States/UTs in India (in million): Figure 6: FEE from Tourism in India (in US$ million) Figure 7: Number of Domestic Tourist Visits to all States/UTs in India (in million), Figure 8: Major Tourist Circuits in India Figure 9: Share of Top 10 States/UTs of India in Number of Foreign Tourist Visits in 2014 Figure 10: Share of Top 10 States/UTs of India in Number of Domestic Tourist Visits Figure 11: Tourism Map of Rajasthan Major Tourist Circuits Figure 12: Institutional Framework for Tourism in Rajasthan

5 List of Tables Table 1: Share and Rank of India in World and in Asia and the Pacific in FTAs Table 2: Proposed Outlay of Ministry of Tourism for 12th Plan Table 3: SWOT analysis Table 4: Number of Domestic and Foreign Tourist Visits in Each State/UT in 2013 & 2014 Table 5: Rank and Percentage Share of Each State/UT in Domestic and Foreign Tourist Visits

6 PREFACE romotion of Tourism in India is commissioned by PILDAT for the benefit of participants of the Pakistan-India PLegislators and Public Officials Dialogue on Sharing of Experiences on Governance and Democracy. The paper is authored by Prof. Sanjay Lodha, Professor, Department of Political Science, University College of Social Sciences & Humanities, Mohanlal Sukhadia University, Udaipur, Rajasthan, India, and Dr. Neha Paliwal, Assistant Professor, Department of Economics, University College of Social Sciences & Humanities, Mohanlal Sukhadia University, Udaipur, Rajasthan, India. The paper outlines various developments that have taken place in the Tourism Sector in India and the challenges it has faced and highlights the trends and majors tourisms circuits in India. Prof. Lodha and Dr. Paliwal outline the strengths and weakness of the sector with particular focus upon Rajasthan and suggests areas and possibilities of improvement in the sphere in India. Disclaimer The views expressed in this paper belong to the authors and do not necessarily represent the views of PILDAT. Islamabad October

7

8 ABOUT THE AUTHOR Professor Sanjay Lodha i s an Prof essor at the Department of Political Science, Mohan Lal Sukhadia University, Udaipu r. He was educated at the Mohan L al Sukhadia Universit y Udaipu r an d Jawaharlal University, New Del hi. Dr. Lodha's research interests include Foreig n Policy and International Relations, Politi cal processes and Development issues in India, and the dynamics on the State politics in Rajasthan. He has authored numerou s articles tha t have been featured in leading j ournals, includi ng, Fighting Corruption: A Comparative Study of Civi l Societ y Initi atives fo r Securing Freedom of Information in Nig eria and India, V ol. 12, July-Dec 2007 N o.2 Madh ya Pradesh Journal of Social Scie nces ; Rajasthan: India Shin es as BJP Trounc es Congress, Economic and Political Weekly, Vol XXXIX, No. 51, Dec18, 2004 and Bhrashtachar : Saiadhanti k aur Vyavharik Ayam, Mo ol Prashna, March 2001 among many other s. Prof. Lodha has also contribut ed to projects carried out b y the CSDS including the National and State Election Study i n collaboration with Lok Sab ha and India Today and The Nationa l Election Aud it, Lok Sabha, Prof. Lodha i s a life memb er of the Ind ian Political Science Associatio n and the Rajasth an Political Science Association. Dr. Neha Paliwal is an Assista nt Professor, Department of Econom ics,university College of Social Science s & Humanities, Mohanlal S ukhadia University, Udaipur, Rajasthan, India. Her specialised area s are- Micro Economics, Mathematica l Economics, Econometr ics, Research Methodology and International Economics. She has to her credit mor e than a dozen res earch papers published in Books and Jour nals. She al so wr ites ar ticles for a renowned Journal KURUKSHETRA published by Planning Commission of Ind ia. Her current research focus es on Agriculture iss ues, Developmental issue s, International Economi c Affairs and Tribal iss ues. He r recent publication i s a book entitled Economi c Refor ms and Dynamics of Agricultural Developme nt in Rajasthan. She has attende d many nationa l and international seminar s, workshops a nd training progr ammes. She recently attended a Three W eeks Training Programme on Quantitativ e Research Meth ods in Educat ion organized by National University of Education Planning and Admininstration (NUE PA). S he is also apart of an ongoing Nationa l Projec t on Quality of Higher Educat ion in Indi a held by NUEPA. 07

9

10 Introduction Tourism is a social, cultural and economic phenomenon related to the movement of people to places outside their usual place of residence, pleasure being the usual motivation. From this definition and the fact that tourism is a temporary activity, it can be interpreted that tourism is a demand based concept. Tourism is perhaps best viewed as a multicompartmentalised 'modern industry' that takes 1 numerous shapes and forms. Tourism is the temporary movement of people to destinations outside their normal places of work and residence, the activities undertaken during their stay in those destinations, and the facilities created to cater to their needs A tourist is defined by the UN World Tourism Organisation (UNWTO) as "any person who travels to a country other than that in which s/he has his/her usual residence, but outside his/her usual environment, for a period of at least one night but not more than one year and whose main purpose of visit is other than the exercise of an activity remunerated from within the country visited. This term includes people travelling for: leisure, recreation and holidays; visiting friends and relatives; business and professional; health 2 treatment; religion/pilgrimages and other purposes". Recent years have seen Travel & Tourism growing at a faster rate than both the wider economy and other significant sectors such as automotive, financial services and health care. Travel & Tourism is an important economic activity in most countries around the world. As well as its direct economic impact, the sector has significant indirect and induced impacts. According to UNWTO-Tourism Highlights, tourism's total contribution (direct, indirect and induced) to worldwide gross domestic product (GDP) is estimated at 9 per cent for According to the organisation, despite occasional shocks, worldwide international tourist arrivals have shown virtually uninterrupted growth from 25 million in 1950 to 278 million in 1980 to 528 million in 1995 and breached the 1 billion mark, at 1,035 million, in This is supplemented with an estimate of 5 to 6 billion domestic tourism, making tourism a phenomenal economic activity. Going forward, the international tourist arrivals are expected to reach 1.8 billion by 2030, with the expected growth of 3.3 per cent a year. Tourism Scenario in India An Overview In India, the tourism sector is based on its unique endowments of biodiversity, forests, rivers, and its rich culture and heritage. Tourism in India has grown in leaps and bounds over the years, with each region of India contributing something to its splendour and exuberance. Along with its economic growth, India's relevance as business travel destination is increasing and it remains a highly price-competitive destination. Contribution to the Economy Tourism has the potential to stimulate other economic factors through its forward and backward linkages with a host of sectors like agriculture, manufacturing, transport, hospitality, education, health, banking, etc. Expenditure on tourism induces a chain of transactions requiring supply of goods and services from these related sectors. The consumption demand, emanating from tourist expenditure also creates more employment and generates a multiplier effect on the economy. As a result, additional incomes and employment opportunities are generated through such linkages. Thus, the expansion of the tourism sector can lead to large scale employment generation and poverty alleviation. The economic benefits that flow into the economy through growth of tourism in the form of increased National and State revenues, business receipts, employment, wages and salary income, buoyancy in Central, State and local tax receipts can contribute towards overall socio-economic improvement and accelerated growth of the economy. India needs to tap the full potential of a vibrant tourism sector. The tourism sector's capability as a sustainable and inclusive development driver, especially for livelihoods, was renewed with the 10th Five Year Plan, the National Tourism Policy, the global Incredible India campaign and the Millennium Development Goals. The direct contribution of Travel & Tourism to GDP was INR 2,478.2 bn (2.2 per cent of total GDP) in 2014, and is forecast to rise by 7.6 per cent in 2015, and by 7.2 per cent pa, from , to INR 5,339.2bn (2.5 per cent of total GDP) in The total contribution of Travel & Tourism to GDP was INR7,642.5bn (6.7 per cent of GDP) in 2014, and is forecasted to rise by 7.5 per cent in 2015, and to rise by 7.3 per cent pa to INR16,587.2bn (7.6 per cent of GDP) in Employment Generation According to World travel and Tourism Council, in 2014 Travel & Tourism directly supported 23,024,000 jobs (5.5 per cent of total employment). This is 1. For details, please see Anthropology and tourism: Past contributions and future theoretical challenges, 2004; This can be accessed at 2. FUTTER, M. & WOOD, L Tourism and development: no short cuts. Indicator South Africa, 14(2):

11 Figure 1: Total Contribution of Travel & Tourism to GDP 2014 INRbn 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, Direct Indirect Induced Source: WTTC Travel & Tourism Economic Impact 2015 Figure 2: Breakdown of Travel & Tourism's Total Contribution to GDP and Employment 2014 GDP ( 2014 INRbn) GDP (2014 INRbn) 1,308 3,856 2,478 23,024 Direct +Indirect 8,826 4,845 Employment (000) +Induced =Total contribution of Travel & Tourism Source: WTTC Travel & Tourism Economic Impact

12 expected to rise by 1.9 per cent in 2015 and rise by 2.2 per cent per annum to 29,020,000 jobs (5.7 per cent of total employment) in In 2014, the total contribution of Travel & Tourism to employment, including jobs indirectly supported by the industry, was 8.7% of total employment (36,695,500 jobs). This is expected to rise by 1.8% in 2015 to 37,365,000 jobs and rise by 2.0% pa to 45,566,000 jobs in 2025 (9.0% of total). Visitor exports generated INR 1,224.4bn (4.1 per cent of total exports) in This is forecast to grow by 5.2 per cent in 2015, and by 6.3 per cent pa, from , to INR 2,377.2bn in 2025 (4.2 per cent of total). Capital Investment in India on Travel & Tourism Travel & Tourism investment in 2014 was INR 2,107.2 bn, or 6.2 per cent of total investment. It should rise by 9.3 per cent in 2015, and by 6.5 per cent pa over the next ten years to INR 4,337.8 bn in 2025 (6.9 per cent of total). Share of India in World Tourism Traffic Share of India in International Tourist Arrivals (ITAs) in World and Asia and the-pacific Region in 2014 was 0.68 and 2.92 respectively and India ranked there on st th 41 and 12 position. Share of India in International Tourism Receipts in World and Asia & the-pacific th Region in 2014 is 1.58 and 5.22 and ranked there as 15 th and 7 (India Tourist Statistics at a Glance, 2014). International tourist arrivals in India and its percentage share and rank in World and Asia and Pacific region during , are given in Table 1. India's rank in th international tourist arrivals was 47 in 1998 and th st declined to 54 in 2002 but improved gradually to 41 in 2014 and its share in international tourist arrivals in world increased from 0.39 per cent to 0.68 per cent. But its share in international tourist arrivals in the Asia and Pacific region has increased very slightly from 2.67 to th 2.92 during this period and its rank declined to 12 in th 2014 after remaining 11 for many years. Trends in International Tourist Arrivals Figure 3 shows that Foreign Tourist Arrival has Table 1: Share and Rank of India in World and in Asia and the Pacific in FTAs Year FTAs in India (in Million) per cent Share Rank per cent Share Rank th th th th st th th th st th th th rd th th th st th st th st th nd th th th st th nd 2.81 Source: Tourism Statistics at a Glance 2014, MOT, GOI Percentage share and rank of India in World Percentage share and rank of India in Asia and the Pacific th 11 11

13 increased tremendously in India since 1998 to It was only 2.36 millions in 1998 and galloped to 7.68 millions in 2014.USA is the main source country from which a majority of foreign tourist are coming, the second source country is Bangladesh and third is UK. Together these countries contribute to percent of total foreign tourist arrivals in India (Figure 4). The number of foreign tourist visits in States and Union Territories has increased more than FTA in India. In 2014, the foreign tourist visit was million which is approximately three fold of FTAs in India in that year Figure 3: Foreign Tourist Arrival in India (in million) 9,00 8,00 7,00 6,00 5,00 4,00 3,00 2,00 1,00 0,00 Source: India Tourism Statistics at a Glance 2014, MOT, GOI Figure 4: Top 10 Source Countries for Foreign Tourist Arrivals (FTAs) in India in 2014 Source: India Tourism Statistics at a Glance 2014, MOT, GOI 12

14 and four fold of number of foreign tourist visits in 1998 (Figure 5). Trends in Foreign Exchange Earnings The foreign exchange earnings from foreign tourism have increased by 13.9 percent during 1998 to 2014 whereas FTAs has increased during this period by 8.1 per cent only. Trends in Domestic Tourism Domestic tourism plays an important role in overall tourism development in the country. The number of Figure 5: Number of Foreign Tourist Visits to all States/UTs in India (in million): Source: India Tourism Statistics at a Glance 2014, MOT, GOI Figure 6: FEE from Tourism in India (in US$ million) Source: India Tourism Statistics at a Glance 2014, MOT, GOI 13

15 Domestic Tourist Visits (DTVs) increased from 462 million in 2006 to 740 million in In 2009 when the country witnessed a negative growth of 2.2 per cent in FTAs, domestic tourist visits registered a growth of 18.8 per cent. This growth of DTVs sustained various tourism infrastructure during bad period for the tourism sector. Domestic tourism has also increased a lot during 1998 to In 1998, the Domestic Tourist Visits in States and UTs was million which increased to million in 2014 (Figure 7). National Tourism Policy Tourism policy was announced for the first time in November The measures suggested in the policy included : i. Granting export industry status to tourism, adopting a selective approach for developing tourist circuits ii. iii. Inviting private sector participation and Utilization of national heritage for attracting tourists. The policy recognized the importance of international tourism in earning foreign exchange and accorded high priority to its development. The policy recognized that facilities provided are minimal for the large number of domestic tourists who travel on pilgrimage or as tourists for other motivations and the need to substantially improve and expand facilities for domestic tourists. A National Action Plan for tourism was drawn up in May The objectives of the action plan included: i. Socio economic development of areas ii. Increasing employment opportunities iii. Developing domestic tourism especially for the budget category iv. Preservation of national heritage and environment v. Development of international tourism and optimization of foreign exchange earnings vi. Diversification of tourism product and vii. Increase in India's share in world tourism. viii. The strategies for achieving the objectives outlined ix. Improvement of tourism infrastructure x. Developing areas on a selective basis for integrated growth along with marketing of destinations to ensure optimal use of existing infrastructure xi. Restructuring and strengthening the institutions for development of human resources and xii. Evolving a suitable policy for increasing foreign tourist arrivals and foreign exchange earnings. Tourism was declared as a priority sector for foreign investment in July Figure 7: Number of Domestic Tourist Visits to all States/UTs in India (in million), Source: India Tourism Statistics at a Glance 2014, MOT, GOI 14

16 A new National Tourism Policy has been drafted to keep pace with the developments taking place around the world and under consideration of the Government of India. The National Tourism Policy 2002 includes provisions like facilitating the development of a dynamic private sector in tourism, promoting ecotourism and rural tourism, facilitating domestic tourism by promoting amenities and facilities for budget tourist, giving greater stress to development of pilgrimage centres and integrated development of identified tourist destinations with the involvement of all the infrastructural departments, states and the private sector. The salient features of the new Tourism Policy are as follows: i. Position tourism as a major engine of economic growth ii. Harness the direct and multiplier effects of tourism for employment generation, economic development and providing impetus to rural tourism. iii. Focus on domestic tourism as a major driver of tourism growth iv. Position India as a global brand to take advantage of the burgeoning global travel and trade and the vast untapped potential of Indian destinations. v. Private sector is acknowledged as a critical player in tourism growth with government acting as a proactive facilitator and catalyst vi. Integrated development of identified tourist destinations with the involvement of all the infrastructural departments/state governments and the private sector. In relation to the development of products that are related to special interests of the target market, the product development strategy in the Tourism Policy 2002 suggests the following: i. Expansion of cultural tourism leveraging on India's 22 World Heritage sites. ii. Development of beach and coastal tourism in the states of Goa, North Karnataka and Kerala. iii. Development of Cochin and Andaman-Nicobar islands as international cruise destinations. iv. Promote India's unmatched variety of traditional cuisines internationally and encourage Indian entrepreneurs to establish Indian ethnic cuisine restaurants across the world. v. Active promotion of village tourism to reap socioeconomic benefits in the regions of North East, Uttaranchal, Rajasthan, Ladakh, Kutch, Chhattisgarh and the plantation regions. vi. Integrate National parks and major wild life sanctuaries into the main tourism product through Interpretation centres, visitor management systems and promoting elephant and tiger as 'brands' of Indian Wildlife Tourism. vii. Promote adventure tourism in the 'Himalayas' through products such as white water and great river rafting. Regulations and certification of tour operators in this field should be introduced. viii. A world-class international convention centre should be constructed in Mumbai to promote business tourism. ix. Promote dedicated shopping centres such as Dilli Haat and Shilpagram along with dissemination of information about shopping in India to tourists. x. Reintroduce Festivals of India program in top 12 future markets for India starting with annual programs in UK and USA. xi. Promote eco and health tourism. Six new circuits to be developed for tourism were announced in the budget by the Finance Minister. The selection is specially aimed at attracting tourists from Japan, Korea, Thailand, Indonesia and other far eastern countries. i. The first is the Bihar circuit which includes the traditional Buddhist circuit covering Bodhgaya, Rajgir, Nalanda and Varanasi ii. The second is the Buddhist monastic circuit between Himachal and Kashmir and includes Kulu, Manali, Lahaul, Spiti and Leh. iii. The third is a heritage circuit covering Gujarat which includes Ahmadabad, Dhola Vira, Rajkot, Dwaraka, Porbunder, Somnath, Girnar and Palitana iv. The fourth is the South Indian circuit that covers Chennai, Mahabalipuram, Kanchipuram, Thiruvannamalai, Ginjee and Pondicherry v. The fifth is the Kerala circuit which covers Palghat, Kochi, Kottayam, the backwaters in Kumarakom and Trivandrum vi. The sixth circuit is the north-eastern circuit which includes Guwahati, Kaziranga, Shillong and Tawag vii. Special tourism areas: The State Governments of Kerala, Tamil Nadu, Orissa and Maharashtra and Union Territory Administration of Daman and Diu have declared Bekal Beach (Kerala), Muttukadu Mamallapuram (Tamil Nadu), Puri (Orissa), Sindhudurg (Maharashtra) and Diu as special tourism areas for integrated development. Plan Outlays for Tourism The IV and V five (5)-year Plans witnessed expansion 15

17 and improvement of tourist facilities. The VI Plan had been a major landmark in the history of Indian tourism. The first ever Tourism Policy of the country was announced during 1982 which specified the development objectives and provided an Action Plan based on 'travel circuit' concept for maximizing the benefits of tourism. During the VII Plan ( ), tourism sector was accorded the status of an industry. The development plan for tourism during the VIII five (5)-year Plan was based on the National Action Plan for tourism. A major component of the Action Plan was the development of special tourism areas and intensive development of selected circuits. The Tourism Synergy Programme enlisting the activities of various agencies and private sector and State Governments was prepared in 1993, and it was further modified and converted into National Strategy for the development of tourism during the year The VIII and IX Plans gave a new direction, meaning and co-ordination to the endeavours of the centre and states for accelerated tourism promotion. India witnessed a steady increase of international tourist traffic during the period of over four decades. The tourist traffic increased from just 16,289 in 1951 to 26,41,157 in 2000, registering a compound annual growth rate of about 6.4 per cent over the previous year. The state lays much stress on attracting more number of tourists and provision of good infrastructure facilities at all tourist destinations. The role of private sector in tourism promotion has to be recognised, encouraged and steps should be taken for their involvement not only in hospitality sector but also transport and innovative themes. The thrust areas of the IX Plan were infrastructure development, entrepreneurship development and generation of employment opportunities, enhanced tourist facilitation, human resources development, research and computerisation, environment and cultural preservation, provision of incentives, monitoring and evaluation, and, strengthening of organisation. There was an expenditure of Rs crore as against an outlay of Rs crore during the IX Plan. The X Plan envisaged a tourist growth rate of 10 per cent to 12 per cent from the present 7 per cent to 9 per cent. It proposed to give a new fillip to tourism growth in the state and develop tourism as a major economic activity, as well as a field of employment generation. To enable the MOT to undertake proposed activities during 12th Plan period, its plan outlay has to be increased manifold. The proposed allocations for various schemes are given in Table 2. Major Tourist Circuits and Destinations India is accessible from all four directions north, east, south and west. Each of the four gateways has its own history. Northern Circuit Delhi, the capital city, is steeped in history. It combines the grandeur of Mughal architecture of Old Delhi with the formal splendour of New Delhi, built in the early Table 2: Proposed Outlay of Ministry of Tourism for 12th Plan Existing Strategy - Dest./Circuits Strategy I - 35 destination/circuits Strategy II - 20 tourism parks Strategy III-70 RTCs Overseas Promotion and publicity Domestic Promotion and publicity Manpower Development Incentive to Accommodation Infrastructure Other Schemes MR ITDC IT Land Bank Total XII Plan XI Plan Source: Report of The Working Group on Tourism, 12th Five Year Plan ( ), MOI, GOI 16

18 20th century. Along with Jaipur and Agra, Delhi forms the 'Golden Triangle'. Agra is home to the Taj Mahal, a world famous monument while Jaipur offers the visitor a chance to experience royalty at its luxury hotels which were palaces of the local rulers. Western Circuit Mumbai is the commercial capital of the country. It is also a major international airport and harbour. The British influence is evident from the architecture of the Gateway of India, Bombay High Court, Old Secretariat, University buildings and Victoria Terminus. Pune, the capital of the Marathas during the reign of the warrior king Shivaji, is 163 kms from Mumbai. Aurangabad, the main stopover before visiting the world heritage sites, Ajantha and Ellora is Figure 8: Major Tourist Circuits in India Source: Report on 20 year perspective plan for development of sustainable tourism in Maharashtra, Ministry of Tourism and Culture, GoI 17

19 400 kms from Mumbai. The sculptures of Hindu, Buddhist and Jain faiths found in the 34 caves at Ellora date back to over a 1000 years while the ones at Ajantha date back to the fifth century. Southern Circuit The southern gateway to the country, Chennai, is the symbol of Dravidian culture. It is the starting point to the temple towns of Mahabalipuram, Kanchipuram, Chidambaram, Tanjore, Tiruchirapalli, and Madurai. The French style of coastal town of Pondicherry lies to the south of Chennai. Kerala, with its beautiful coconut beaches lies on the western coast. Kanyakumari, a popular pilgrimage town is the southern tip of country, where one can watch the sun set and moon rise at the same time. Eastern Circuit Kolkata, listed among the world's largest cities, came into being as a British trading post and later capital of British empire in India during the 17th century. The Indian museum, the Victoria memorial, the botanical gardens and Dakshineshwar's kali temple are famous landmarks in the city. Northwards of Kolkata, is the hill station of Darjeeling, which offers spectacular views of Kanchenjunga peak (8586 metres). The state of Orissa, on the eastern coast has a rich heritage of classical dance, music, silverware, handicrafts and sculpture and its own 'Golden Triangle' comprising the three temple towns of Bhubaneswar, Puri and Konark. Puri is counted among the four holiest cities in India and famous for the 12th century Jagannath temple. Konark features in the circuit for its Sun temple, an architectural masterpiece. Preferred Destinations in India The most popular destinations in India for foreign tourists have been the golden triangle of Delhi-Jaipur- Agra, Goa, Rajasthan, and very recently, Kerala. The National Geographic has rated Kerala among the 50 must see destinations of a lifetime. Role of States/Union Territories in Tourism Development Active involvement of States/UTs is a pre-requisite for integrated tourism development in the country. In India, though some of the States / UTs are very proactive in promoting tourism, some others have not yet realised the full potential of tourism in their economic development. State / UTs have to also create conducive and investment-friendly environment for significant investments in tourism sector. Table 4 gives the number of domestic and foreign tourist visits to different states/uts during the year 2013 and It may be seen from this table that most of the States/UTs have generally undergone increase in the number of domestic and foreign tourist visits during 2014.The States/UTs which recorded decline in domestic tourist visits in 2014 over 2013 were Andhra Pradesh, Daman & Diu, Jammu andkashmir, Manipur and Sikkim. The highest decline was faced by Jammu & Kashmir ( per cent ) whereas the highest growth was recorded for Lakshadweep ( per Table 3: SWOT Analysis of India as a Tourist Destination Strengths - Rich culture and heritage - Variety of landscapes, lifestyles and cuisines - Rich tradition in handicrafts - Colourful fairs and festivals Opportunities - Global trend towards exotic destinations like India - Tourism potential unexploited Weaknesses - Poor accessibility to many tourist destinations due to basic Infrastructure bottlenecks - Lack of tourist infrastructure & basic amenities at many tourist destinations - Lack of information about tourist destinations - Unfavourable brand image as a tourist friendly destination. Threats - Aggressive marketing and promotion by competing destinations in Asia like Malaysia Source: Report on 20 year Perspective Plan for Development of Sustainable Tourism in Maharashtra, Ministry of Tourism and Culture, GoI 18

20 Table 4: Number of Domestic and Foreign Tourist Visits in Each State/UT in 2013 & 2014 S. N State/ UT Growth Rate Domestic Foreign Domestic Foreign Domestic Foreign 1 Andaman & Nicobar Islands Andhra Pradesh Arunachal Pradesh Assam Bihar Chandigarh Chhattisgarh Dadra & Nagar Haveli Daman & Diu Delhi * Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Lakshadweep Madhya Pradesh Maharashtra*# Manipur Meghalaya

21 24 Mizoram Nagaland Odisha Puducherry Punjab Rajasthan Sikkim Tamil Nadu Tripura Telengana Uttar Pradesh Uttarakhand West Bengal Total Source: Ministry of Tourism, GOI cent) in domestic tourist visits. The States/UTs which recorded decline in foreign tourist visits in 2014 over 2013 were Andhra Pradesh, Arunachal Pradesh, Chandigarh, Daman & Diu, Himachal Pradesh, Karnataka and Telangana. Out of them Arunachal Pradesh and Telangana faced a decline of more than 50 percent in foreign tourist visits. In states of Haryana and Chhatisgarh foreign tourist visits have increased by more than 100 percent. Figures 7 & 8 present the top ten performing states in domestic and foreign tourism. These states have the share of 88.8 and 83.3 percent share in number of foreign tourist visits and domestic tourist visits in India respectively. Tamil Nadu has the first position in both. Table 5 explains that eastern and north-eastern states of India are performing very poor in tourism development in India. Some states like Jharkhand, Chhattisgarh and Andhra Pradesh are performing well in domestic tourism but poor in foreign tourism. Tamilnadu, Uttar Pradesh, Maharashtra, Karnataka, Rajasthan and West Bengal are performing well in both types of tourism. 3. For details, please see the Official Website for the Minstry of Tourism, Gvernment of India; This can be accessed at, marketresearch / New/DTV%20FTV%20(F)% pdf 20

22 Table 5: Rank and Percentage Share of Each State/UT in Domestic and Foreign Tourist Visits S.No. State/ UT Rank 2013 Rank 2014 Percent share 2013 Percent share Andaman & Nicobar Islands Domestic Foreign Domestic Foreign Domestic Foreign Domestic 2 Andhra Pradesh Arunachal Pradesh Assam Bihar Chandigarh Chhattisgarh Dadra & Nagar Haveli Daman & Diu Delhi * Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Lakshadweep Madhya Pradesh Maharashtra*# Manipur Foreign

23 23 Meghalaya Mizoram Nagaland Odisha Puducherry Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttar Pradesh Uttarakhand Source: Ministry of Tourism, GOI Figure 9: Share of Top 10 States/UTs of India in Number of Foreign Tourist Visits in 2014 Tamil Nadu West Bengal Maharashtra Rajasthan Delhi Uttar Pradesh 4. For details, please see the Official Website for the Minstry of Tourism, Gvernment of India; This can be accessed at, marketresearch / New/DTV%20FTV%20(F)% pdf 22 Source: India Tourism Statistics at a Glance 2014, MOT, GOI

24 Figure 10: Share of Top 10 States/UTs of India in Number of Domestic Tourist Visits Tamil Nadu West Bengal Madhya Pradesh Telengana Uttar Pradesh Andhra Pradesh Maharashtra Karnataka Source: India Tourism Statistics at a Glance 2014, MOT, GOI Challenges of Tourism Development in India A major constraint in the growth of tourism in India is the lack of adequate infrastructure facilities including the basic amenities. Given the resource constraint, it is not possible for government to undertake any massive investment in creation of tourism infrastructure. Largescale private investment has therefore to be mobilised to develop the tourism industry at its full potential in India. Other challenges are: i. Poor connectivity/ remote location ii. Lack of accommodation, its high price and low quality iii. Lack of health facilities/ first aid iv. High incidence and multiplicity of taxes v. Power supply vi. Water supply and sanitation vii. Lack of travel booking viii. Lack of sanitation and garbage disposal ix. Lack of medical facilities x. Insecurity/ instability xi. Life saving facilities Suggestions for Tourism Development in India In spite of low rankings on the competitiveness scale, it is clear that India can leverage its higher rankings in certain categories to exploit its tourism potential over the next decade with proper planning. This potential, exploited in an intelligent and sustainable manner, can prove to be the proverbial engine of growth for India. This can be achieved only with active cooperation from the States/UTs. As tourism is a multi-sectoral activity, Government of India would also have an important role in facilitating the issues involved with other Ministries/Organisations at Central level as well as with the States /UTs. Some suggestions for further development of tourism in India are as follows: 1. Strategic planning typically is to be oriented to rapidly changing future situations and how to cope with changes organizationally. It will be more action oriented and concerned with handling unexpected events 2. Apart from marketing and promotion, the tourism development plan has to focus on an integrated development of enabling infrastructure through effective partnership with various stakeholders. 3. Drawing up of effective marketing plans and programmes and for this opening up new representative offices overseas for wider reach 4. Human resources and capacity building of service providers should be developed 5. Incentives to Accommodation Infrastructure. 6. Tourism development should focus on developing tourism from people's perspective by involving local Panchayats and local communities at various stages. This will help in understanding the social, cultural, and environmental impacts of tourism projects on local communities enabling the 23

25 development of tourism in a sustainable manner. 7. A number of new initiatives have to be taken for skill development for personnel in tourism sector 8. Religious Tourism is to be focused more as an important segment of domestic tourism as well as foreign tourism in the country since India has the unique distinction of being the birth-place of four important religions of the world Hinduism, Buddhism, Jainism and Sikhism. 9. Develop and promote new tourism products - Golf, Polo, Wellness & Medical, MICE, Caravan, Cruise, Adventure and Wildlife tourism. 10. Safety and the security of the tourists is a worldwide concern. Any adverse perception about safety and security of the tourists has serious implications for tourist arrivals to the country and its tourist destinations. Keeping the above in view, Safe & Honourable Tourism should be focused. 11. A study conducted by Ministry of Tourism at important tourist destination reveals that lack of hygiene and sanitation is a major irritant for foreign and domestic tourists. Therefore, creation of awareness as well as making available the requisite facilities should be given high importance 12. Tourism, especially international tourism in India is affected by seasonality and is, therefore, prone to the problem of excess demand or supply. Hence, the strategy to overcome this aspect of 'seasonality' of Indian Tourism is to promote India as a 365 days destination, offering year-round experiences, by selecting products which are unique to the destination and thereby create opportunities for the tourist to visit the country all-round the year. 13. One of the bottlenecks in achieving the full potential of tourism sector in India is the high incidence and multiplicity of taxes that has led to tourist packages being out priced in comparison with those available for competing destinations. So, Taxes levied on Tourism industry should be unified, rationalized and made globally competitive 14. The Infrastructural bottlenecks need to be unleashed to enhance the visitor's experience manifold and the tourist attractiveness in a sustainable manner is to be enhanced by developing world class infrastructure in the circuit destinations 15. To develop rural tourism a clusters of 5 to 7 villages having unique craft, ethnic art form, or other USP for development as a Tourism Product should be identified. 16. Incentive schemes for budget hotels should be promoted 17. Through active collaboration with Ministry of Tourism and Ministry of Urban Development, tourism infrastructure should be included in the scope of work undertaken under JNNURM in the cities covered by JNNURM. 18. Tourism infrastructure to be included under the priority sector lending norms of the Reserve Bank of India. 19. Ministry of Civil Aviation should give high priority for improving the air connectivity in North-East region, hilly states and remote regions of the country. Tourism in Rajasthan An Overview Rajasthan has emerged as one of the premier tourist destinations in India for both domestic and foreign tourists. The number of tourist arrivals in the state has increased manifold in the last few decades. In fact, from less than a million ( domestic and 42,500 foreign arrivals) in 1971, the number of tourists in the state has catapulted to a whooping thirty four million by the end of 2014 ( domestic and foreign arrivals). The state has the honour of occupying the fifth position among the most visited places by foreign tourists in India. This is vindicated by the fact that per cent of revenue accruals from foreign tourist arrivals in India last year was generated by Rajasthan. The state is known globally for its diversity in terms of natural resources, cultural heritage, historical as well as archaeological wonders and rare wild life. The forts and palaces, heritage hotels, colourful fairs and festivals, local art and handicrafts, etc. have been a unique selling proposition for tourists coming to the state. The desert environment in the western parts of the state is also a major attraction for visitors, particularly the foreign tourist. In recent times, the state has become a much sought after destination for wedding tourism. Efforts are being made for projecting the state as an attractive place for rural, tribal and adventure tourism as well. Four decades ago tourism in Rajasthan was a small industry that was largely confined to the elite foreign tourists and domestic pilgrim traffic. Tourist arrivals were restricted to a few thousand tourists annually and were primarily recorded in select places such as Jaipur (the state capital), Udaipur and Jodhpur (for foreign tourists) and the pilgrim centres of Ajmer, Pushkar and Nathdwara (for domestic tourists). The employment in the sector and the sector's contribution to the state economy was limited. 24

26 However, over the last few decades, due to the focussed efforts of Rajasthan Tourism, various State Government agencies, select entrepreneurs / individuals, tourism has grown from an elite and pilgrim phenomenon to a mass phenomenon putting Rajasthan firmly on the domestic as well as foreign tourist map. Also, as compared to the past, where the tourism in the state meant desert tourism, heritage tourism (forts, palaces, etc.) and pilgrim tourism, today the tourists have an extensive menu card comprising of places, attractions and activities to choose from in the state. Given the increasingly important role that the sector plays in the overall socio-economic development of the state, the State Government of Rajasthan accorded an industry status to tourism from the year Recognising the burgeoning salience of tourism as an industry, the state declared its tourism th policy on 27 September, The industry today employs over 4.5 lakh people directly and over seven lakh people indirectly The Tourism accounting for eight per cent of state's domestic product is one of the most favored destinations in India for both domestic & International traffic, for its historical forts, palaces, ancient art and culture. As the nodal agency to promote tourism in the state, the Department of Tourism (DoT), Rajasthan constituted in 1956, has played a key role in this growth. Along with the DoT, the Rajasthan Tourism Development Corporation (RTDC) was established in November, 1978 primarily to act as catalyst for developing tourism infrastructure facilities (for both foreign and domestic tourists) particularly by way of basic amenities like Figure 11: Tourism Map of Rajasthan Major Tourist Circuits Source: Study on 20 Year Perspective Plan For Sustainable Tourism In Rajasthan -Final Report, Ministry of Tourism, Art And Culture, Government of India 25

27 accommodation, catering and organised tours / sightseeing facilities. Major Tourist Destinations in Rajasthan Tourism in Rajasthan extends almost through the entire state, though tourist activity is concentrated around six main cities, which serve as 'tourist hubs' for places of tourist attraction in and around these 'hubs'. These tourist 'hub' cities are Jaipur, Jodhpur, Jaisalmer, Bikaner, Udaipur and Mount Abu. Almost every tourist (with the possible exception of pilgrim traffic) who visits Rajasthan would visit one or more of these 'tourist hub' locations as part of his / her tourist itinerary. Each of these hubs usually form part of a Tourist Circuit as follows: i. Jaipur is a part of the popular 'Golden Triangle' circuit (Delhi-Agra-Jaipur) that is very popular with the foreign tourists ii. Jodhpur, Bikaner and Jaisalmer form the popular 'Desert Circuit' of Rajasthan iii. Udaipur is the entry point into south Rajasthan and forms the hub for tourist activity in the Mewar region of the state. iv. Mount Abu, the only hill station in Rajasthan, is largely a standalone tourist destination primarily for domestic tourists There are nine tourist circuits as identified by Rajasthan DoT, based on their geography, attractions and coverage by independent / group tourists. These are: i. Desert Circuit: Jodhpur-Jaisalmer-Bikaner- Barmer ii. Mewar Circuit: Udaipur-Rajsamand-Chittaurgarh- Bhilwara iii. Vagad Circuit: Dungarpur-Banswara iv. Dhundhar Circuit: Jaipur-Dausa-Tonk v. Godwar Circuit: Sirohi-Pali-Jalore vi. Merwara-Marwar Circuit: Ajmer-Nagaur vii. Brij-Mewat Circuit: Alwar-Bharatpur-Karauli- Dholpur-Sawai Madhopur viii.shekhawati Circuit: Sikar-Jhunjhunun-Churu ix. Hadoti Circuit: Kota-Bundi-Jhalawar One can say that these circuits together exhaust all the tourism attractions that Rajasthan has to offer. Of these circuits, the Jaipur (Dhundhar) Circuit, Desert Circuit and Mewar Circuit are well developed, whereas in other circuits, tourism is limited to cover of only 1-2 destinations rather than the circuit as a whole. These are the circuits that need attention of both state as well as non-state actors for the promotion of their tourist potential. Tourist Traffic Trends Rajasthan received around 2.58 per cent of the Mn foreign tourists who visited India in Additionally, the state also recorded over 6.76 percent of domestic tourists in the same year. The popular Golden Triangle circuit (Delhi-Agra-Jaipur) has put Jaipur on the world tourism map with the city receiving the highest number of foreign tourists visiting the state.a close look at the nature of tourist industry in Rajasthan makes us aware of a few basic trends which may be briefly discussed below: 1. Slow Growth in tourism in the main tourist locations: The main tourist cities of Rajasthan namely, Jaipur, Udaipur, Jodhpur, Jaisalmer, Bikaner and Mount Abu have seen marginal growth (and occasionally a marginal decline) in total tourist traffic. 2. Select Tourist locations are experiencing high growth: In particular, the Ajmer-Pushkar circuit is experiencing high growth in domestic tourists whilst foreign tourist traffic at these locations is more or less static, domestic tourist traffic has increased significantly particularly at Ajmer. This is because of the growth in religious tourism at the Hindu temple in Pushkar and the dargah at Ajmer. Also, the Alwar-Sariska belt is experiencing strong growth. Growth in domestic tourism is largely due to its increasing popularity as a weekend gateway from Delhi (as well as a 'conference tourism' venue) while growth in foreign tourist traffic is led by the growing popularity of the Sariska Wild Life Sanctuary amongst foreigners who visit Jaipur and / or cover the Golden Triangle circuit. Amongst the smaller tourist destinations, Bundi is particularly (part of the Hadoti circuit in south eastern part of the state) has seen a multi-fold increase in both domestic and foreign traffic. Banswara (also Dungarpur) is slowly emerging on the domestic tourist map as a destination for both rural and tribal tourism. 3. Expansion of the destination and activity options to tourists: Traditionally the Rajasthan tourism experience offered palaces, forts, lakes and the desert. However, based on the 5-year trend in tourist traffic, the experience sought from Rajasthan is changing. The traditional tourism experience is no doubt desired but the focus is gradually shifting to more varied tourism products particularly: i. Eco-tourism / wild life tourism (particularly the 26