Ministry of Tourism. Market Research Division. Government of India. Evaluation Study for the Scheme of Market Research - Professional Services

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1 Ministry of Tourism Market Research Division Government of India Evaluation Study for the Scheme of Market Research - Professional Services Intercontinental Consultants and Technocrats Pvt. Ltd. A-8, Green Park, New Delhi , India February, 2009

2 Evaluation Study for the Scheme of Market Research Professional Services

3 ACKNOWLEDGEMENTS Intercontinental Consultants and Technocrats Pvt. Ltd, New Delhi. would like to thank the Ministry of Tourism for giving us an opportunity to undertake this prestigious project of evaluating the scheme Market Research Professional Services. We would also like to acknowledge the support, guidance and inputs provided by the Market Research Division of the Ministry of Tourism for the successful completion of the study. In particular, we would like to thank Shri S. Banerjee, Secretary; Dr. R.N. Pandey, Additional Director General; Mr. A.K. Gupta, Joint Director General; Mr. Davesh Chaturvedi, Director; Mr. K.K.Nath, Deputy Director; and other officers and staff of the Ministry of Tourism for their valuable inputs. The State/Union Territory Governments were very helpful in providing the requisite inputs and assistance to the consultants for the completion of the study. The Secretary/Commissioner, Director and other officers of tourism in the State Governments also extended considerable support and assistance to the project team. In particular, the contributions made by the State Governments of Assam, Jharkhand, Karnataka, Kerala, Orissa, Meghalaya, Mizoram, Punjab, Rajasthan, and Uttarakhand by way of material inputs and/or constructive discussions with the consultants need a special mention. Above all, we would like to place on record the support and assistance extended by the World Tourism Organisation by way of making us available various reports on market research activities and in particular the Handbook on Tourism Segmentation - Maximizing Market Effectiveness and the report on Evaluating NTO Marketing Activities prepared by the University of Luton. We are also grateful to Tourism Research Australia, Canadian Tourism Commission, Tourism New Zealand, South African Tourism and Visit Britain for giving us access to their market research practices.

4 CONTENTS SL. PAGE DESCRIPTION NO. NOS. 1. INTRODUCTION 1-1 to Prelude The Scheme Coverage of the Scheme The Study Objectives Parameters of Evaluation Spread and Depth of the Projects Use of Study Reports Technical Audit of Selected Projects Adoption of International Practices Approach & Methodology Design of Questionnaire Selection of Projects in Specific States Selection of States for Field Visits Field Visits Technical Evaluation of Selected Projects Review of International Practices Tabulation and Analysis Integration and Report Writing Limitations of the Study Lay out of the Report THE SCHEME DURING TENTH PLAN 2-1 to Plan Allocations Year Wise Plan Budget and Utilisation Projects Taken up During Tenth Plan Types of Projects Perspective Plans Impact Assessment Studies/Satellite Account Evaluation Studies Action Plans/Best Practices Tourist Surveys Policy Related Studies Industry Specific Studies Human Resource Requirement Study Area Specific Potential Surveys/Master Plans Project Specific Feasibility Studies/Concept Plans Detailed Project Reports Year Wise Performance State Wise Distribution of Projects Cost of Projects by States 2-7 (i)

5 SL. NO. DESCRIPTION PAGE NOS. 8 Usefulness of the Scheme Studies/Surveys sought by the State Governments Quality and Utility of Study Reports Sufficiency and Usefulness of Data contained in Reports Acceptability and Implementability of the Recommendations Utilisation of Reports Suggestions of State Governments for Improving the Scheme TECHNICAL REVIEW OF SELECTED STUDY REPORTS 3-1 to Evaluation Study in Selected Overseas Markets The Study Objectives Primary Objectives Secondary Objectives The Methodology The Report Our Comments Domestic Tourism Survey Objectives of the Survey The Methodology The Report Our Comments 3-7 Impact of Tourism on the Socio Economic Development of Artisans and Artists in Rajasthan and Kerala 3.1 Objectives of the Study The Methodology The Report Our Comments Detailed Project Report Tourist Destination 3-10 Development, Mysore 4.1 Objectives of the Study The Methodology The Report Our Comments Collection of Domestic Tourism Statistics for the 3-11 State of Uttarakhand 5.1 Objectives of the Study The Methodology The Report Our Comments Years Perspective Plan for Assam 3-13 (ii)

6 SL. NO. 4 DESCRIPTION PAGE NOS. 6.1 Objectives of the Study The Methodology The Report Our Comments 3-14 DPR for Development of Tourist Destinations Sakshi Gopal, Similipal, Gopalpur-on-Sea, and Chilika Lake in Orissa, (4 Separate DPRs) 7.1 Objectives of the Study The Methodology The Report Our Comments Recommendations 3-16 MARKET RESEARCH PERSPECTIVES AND 4-1 to 4-15 PRACTICES 1 Introduction Converting Market Research into Marketing Strategy Marketing Audit Market Segmentation SWOT Analysis Review and Evaluation Australia Canada New Zealand South Africa Visit Britain (United Kingdom) India Analysis and Recommendations EXECUTIVE SUMMARY 5-1 to The Study Major Findings Recommendations 5-2 APPENDIXES Appendix I Market Research Scheme Guidelines 1-2 Appendix II Questionnaire 1-3 Appendix III List of Tenth Plan Projects 1-12 Appendix IV Guidelines for Preparing Perspective Plans 1-4 (iii)

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8 Evaluation Study for the Scheme of CHAPTER I INTRODUCTION 1. The Prelude Intercontinental Consultants and Technocrats (ICT) Pvt. Ltd, New Delhi, has been commissioned by the Ministry of Tourism, Government of India for evaluating the scheme of Market Research Professional Services based on the projects undertaken during the 10 th Five Year Plan. The evaluation is intended to provide objective recommendations for improving the effectiveness and usefulness of the scheme. 2. The Scheme The Ministry of Tourism has been implementing the scheme of Market Research-Professional Services to provide the necessary statistical inputs for objective decision making in the context of policy formulation and planning for tourism development in the country. 2.1 Coverage of the Scheme The scheme mainly covers the following: Surveys/master plans/studies to be undertaken by the Ministry of Tourism directly as per their own requirements or for State Governments/Stakeholders/Tourism Industry; Project specific Detailed Project Reports(DPRs)/Feasibility Studies, etc. for Circuit/Destination Development of State Governments/UT Administrations, through professional consultants to be considered under the scheme of Product/Infrastructure Development for Destination and Circuits, pertaining to the States of North East, Sikkim and Jammu & Kashmir. Similar requests from other states would be considered on need basis; Collection, compilation, analysis and publication of statistical data; Meetings/conferences etc. organized for the purpose of getting inputs from experts, State Governments, industry, intellectuals, etc. for development of tourism; Surveys for determining the requirement of hotel accommodation etc. in the country, though preparation of DPR/Feasibility Report for hotels, tourist resorts, etc are not covered. The guidelines of the scheme provided by the Ministry are at Appendix- I. 3. The Study Objectives The specific objectives of the assignment as given in the RFP are: to examine the effectiveness of the activities taken up under the scheme by the Ministry of Tourism as well as by various State/UT Governments; to assess the extent to which the Ministry of Tourism and various State/UT Governments have made use of the scheme to promote market research activities in the field of tourism; and 1-1

9 Evaluation Study for the Scheme of to suggest possible modifications/improvements required in the scheme to make it more effective during the 11 th Five Year Plan, particularly the type of new studies and surveys to be undertaken on the pattern of other similar and developed countries. 4. Parameters of Evaluation The objectives of the assignment in relation to the scheme can be translated into the evaluation of the following parameters: 4.1 Spread and Type of Projects Since the scheme covers a large number of activities and has been used for the benefit of the Ministry as well as various State/UT Governments, an analysis of the spread and type of projects undertaken during the Plan period is expected to result in a grading of activities in terms of frequency and geographical coverage. It is also necessary for comparisons with the practices in other countries. 4.2 Use of Study Reports Research studies in the field of tourism are generally intended to be used for the following purposes: i. Creating awareness about the size and distribution of tourism activity in the region/state and its economic contribution in terms of employment generation, value addition, backward area development, tax revenue, etc.; ii. Identifying supply and demand gaps in tourism infrastructure and facilities, projecting tourism demand and infrastructure requirements and planning for bridging the gaps; iii. Assessing the profiles and demand characteristics of various segments of tourists, undertaking market segmentation analysis and formulating effective marketing strategies; iv. Facilitating investment decisions by providing details of performance of existing tourism establishments and various industry ratios in specific destinations; and v. Providing the requisite details for micro-level planning for the development of specific areas and projects. The extent of use of research studies sanctioned and completed during Tenth Plan needs to be thus evaluated in terms of the above uses by interacting with the respective agencies at whose instance, the studies have been undertaken. 4.3 Technical Audit of Selected Projects The assessment of technical soundness of a few selected projects in terms of study methodology, sampling techniques used, adequacy and reliability of research findings, projection of tourist traffic etc., is considered useful in making recommendations for improving the effectiveness and usefulness of studies. 1-2

10 Evaluation Study for the Scheme of 4.4 Adoption of International Practices It was also considered essential to assess how far India has been able to adopt international practices in Market Research consistent with national priorities in tourism research. 5. Approach & Methodology An integrated approach consisting of documentation of data on various projects undertaken during Tenth Plan, questionnaire survey covering all the States/Union Territories, personal interaction with the officials of selected State Governments and review of existing international practices has been adopted for the completion of the study. The details of the methodology, process of selection of projects and states for the study, etc were finalized in consultation with the Ministry of Tourism at the stage of Inception Report. 5.1 Design of Questionnaire A comprehensive questionnaire (Appendix II) consisting of two parts has been developed. Part A seeks perceptions of the State/Union Territory Governments about the scheme, its utility in general, the future requirements of studies/surveys and specific activities for which the selected study/survey reports have been used and part B seeks information about specific projects/schemes undertaken for the State. The questionnaire aims at collecting information on reliability of data, utilization of the study report, acceptability and implementability of the recommendations, etc. The questionnaire also aims at assessing the usefulness of various surveys undertaken during Tenth Plan and for identifying specific requirements of State /Union Territory Governments for the Eleventh Plan. The questionnaire was sent to each of the State/Union Territory Governments for obtaining responses from them. They were followed up by written and telephonic reminders. The questionnaires duly completed were returned by nine State Governments and four others provided details orally at the time of field visits. 5.2 Selection of Projects in Specific States The selection of specific projects in each State/Union Territory for the questionnaire survey has been done by using the following procedure: i. In the case of states which have undertaken only one survey/study under the scheme during the Tenth Plan, there has been no choice but to select the same survey/study for assessing its use. ii. In the case of those states which had undertaken more than one survey/study, the one with the highest cost has been selected for the assessment except in the case of Assam, Karnataka, Orissa, Rajasthan and Uttarakhand. iii. In the case of the above five States, all the projects taken up during Tenth Plan have been selected for assessment. 1-3

11 1-4 Evaluation Study for the Scheme of 5.3 Selection of States for Field Visits The States for field visits were selected by using the following criteria: Maximum number of research projects during Tenth Plan Maximum spread in the types of projects undertaken Maximum amount spent on studies/surveys Represent different geographical regions On the basis of the above criteria, the following states have been selected for field visits: Assam Karnataka Orissa Rajasthan Uttarankhand 5.4 Field Visits Field visits were undertaken by the study team to have interactions with State Government agencies, to gather first hand information about the acceptance/effectiveness of the scheme and to collect/verify the questionnaires filled-up by the respective agencies. The dates of field visits are as given below: Date of visits of the Consultant s Team Sl. No. State/Union Territory Dates of Visit 1 Assam 25 28, May Andhra Pradesh 16 17, April Chandigarh (UT) 22 24, April Haryana 22 24, April Punjab 22 24, April Karnataka 16-20, June Kerala 18 24, April Orissa 4 8, May Rajasthan 5 7, May Uttarakhand 22 27, May Technical Audit of Selected Projects The technical soundness of some of the major projects undertaken by the Ministry of Tourism during Tenth Plan was assessed by the tourism and market research experts of ICT Pvt. Ltd. in relation to scientific norms and international practices. The projects for the review have been selected on the basis of cost of the study, geographical spread and type of study. In the case of all India studies/surveys, the Evaluation Study in Overseas Markets and Domestic Tourism Survey were selected for technical evaluation. In the case of State specific studies the following study reports have been selected for assessment.

12 Evaluation Study for the Scheme of Assam Karnataka Orissa Rajasthan Uttarakhand 20 Years Perspective Plan for Assam Detailed Project Report for Tourist Destination Development of Mysore DPR for Development of Tourist Destination Sakshi Gopal, Similipal, Gopalpur-on-sea and Chilka lake Impact of Tourism on the Socio Economic Development of Artisans and Artistes in Rajasthan and Kerala Collection of Domestic Tourism Statistics for the State of Uttarakhand 5.6 Review of International Practices The latest literature on different aspects of Market Research activities brought out by the World Tourism Organisation (WTO) has been reviewed in relation to the activities undertaken in India. In addition, the current practices in some of the major countries like Australia, Canada, New Zealand, South Africa and United Kingdom were also studied and included in the report. 5.7 Tabulation and Analysis The data collected through various methods were integrated, compared, validated and tabulated as per pre-designed tabulation plans so as to bring out the current status in respect of specific parameters being studied. The tabulated results were then analyzed to identify the factors, which affected the implementation of the projects both positively and negatively. 5.8 Integration and Report Writing The project team consisting of those experienced in the Indian tourism industry integrated the results obtained from the analysis of data with their findings during personal interviews and interactions and prepared a comprehensive report bringing out the strengths and weaknesses of the scheme in its present format, and improvements/modifications required for making the scheme more popular and useful for the development of tourism in the country. 6. Limitations of the Study The study had a few limitations as listed below: i. The project reports selected for study were not available with the State Tourism officials at the time of the visit and they were not even having knowledge of such projects in a good number of cases. ii. There was hesitation on the part of officials of some of the State Governments to complete the questionnaire in writing even though they expressed their views orally. iii. The technical evaluation of some of the project reports was done on the basis of their internet versions. 1-5

13 7 Lay out of the Report Evaluation Study for the Scheme of The report contains five Chapters including this one which explains the methodological aspects of the study. An analysis of the performance of the scheme in terms of utilization of plan funds, as well as, year wise and geographical spread of the projects, is given in second Chapter. The third Chapter contains an evaluation of the selected projects. The fourth chapter gives an overview of market research activities and enlists the practices in selected countries. An Executive Summary containing major findings and recommendations is given in the fifth Chapter. * * * * * * 1-6

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15 Evaluation Study for the Scheme of CHAPTER II THE SCHEME DURING TENTH PLAN 1. Plan Allocations The Ministry of Tourism has been operating a number of schemes for the development of tourism in the country during Tenth Plan period. These included (i) assistance to tourism training institutions like Institute of Hotel Management, Food Craft Institutes, Indian Institute of Tourism and Travel Management, National Institute of Water Sports, etc, (ii) capacity building for service providers, (iii) overseas promotion and publicity including market development assistance, (iv) domestic promotion and publicity including hospitality, (v) incentives to accommodation infrastructure (vi) construction of building for IISM at Gulmarg, (vii) revival of tourism in Jammu & Kashmir, (viii) market research including 20 years perspective plans, (ix) assistance for large revenue generating projects, (x) computerization and information technology and (xi) product/infrastructure development for destinations and circuits. The total allocation for all the schemes during Tenth Plan was Rs crores with a share of Rs. 20 crores for market research activities. The percentage share of market research activities to total Plan allocation during Tenth Plan was about 0.7 percent. The maximum allocation of Rs crores (47.8%) was for product/infrastructure development in destinations and circuits followed by overseas promotion and publicity with an allocation of Rs. 500 crores (17.2%) 2. Year Wise Plan Budget and Utilisation The Plan budget of the Ministry has been increasing over the years. It increased from Rs crores in to Rs crores in The budget for the Market Research has remained at Rs. 3 crores during each of the years except in The year wise budget provisions and expenditures under the scheme during Tenth Plan as compared to total budget provisions and expenditures are given in Table 2.1 Table 2.1 Year wise Budget Provision and Utilisation (Rs. crores) Year All Plan Schemes Market Research Budget Provision Expenditure Percentage Utilisation Budget Provisio n Expenditure Percen tage Utilisat ion Total

16 Evaluation Study for the Scheme of Budget Provision and Expenditure of All Plan Schemes Budget Provision Expenditure Budget Provision and Expenditure of Market Research Scheme Budge Provisio Expenditu Years Years The percentage utilization of funds for Market Research was over 107 during Tenth Plan Period, though there were shortages in some of the years. 3. Projects Taken up During Tenth Plan A large number of research and survey projects were taken-up by the Ministry of Tourism during Tenth Plan. The list of projects made available by the Ministry had 190 entries. Among them, 24 entries were repeat entries, probably due to continuation of the same project in different financial years. Thus, the total number of distinct projects taken-up during Tenth Plan was 166. However, three of the projects were spread over 8 states giving rise to 171 State Projects. Among 166 projects, 56 were national level projects while 35 were miscellaneous items of expenditure. The total number of effective projects was thus 131. The amount sanctioned during the Plan period was Rs lakhs including miscellaneous expenditures. The list of projects is at Appendix III. 4. Types of Projects The Projects taken up during Tenth Plan covered a wide spectrum of subjects intended to meet different requirements. On the basis of the nature and use of each study/survey they can be classified into twelve distinct categories. These specific categories and the number of studies/surveys taken-up are given in Table 2.2 Table 2.2 Number of projects by type Sl. No. Project Type No. of Projects Total Cost (Rs. Lakhs) 1 20 year Perspective Plans Impact Assessment Studies/Satellite Account 9 3 Evaluation Studies Action Plans/Best Practices Tourist Surveys Policy Related Studies Industry Specific Studies Human Resource Requirement Studies Area Specific Potential Surveys/Master Plans 13 Project Specific Feasibility Studies/ Concept Plans Detailed Project Reports Meeting/Conferences/Miscellaneous Total

17 4.1 Perspective Plans Evaluation Study for the Scheme of Perspective plans for a period of 20 years were got prepared by the Ministry of Tourism for all the States except Andhra Pradesh and Goa to facilitate identification of potential tourism products and sites, formulation of product and infrastructure development projects and prepare implementation/action plans. The Ministry even prepared guidelines for the preparation of perspective plans and the same is at Appendix IV. The Perspective Plans are thus a part of the planning exercise for product and infrastructure development in existing and potential tourism centres. These Plans have facilitated identification of priority projects for destination/circuit development in different States/Union Territories. 4.2 Impact Assessment Studies/Satellite Account Impact assessment studies/satellite account estimates are intended to assess the impact of tourism development programmes and policies on the economic development of particular regions or the country. Such studies serve the purpose of creating awareness about the magnitude and significance of tourism in the economy of the state/region amongst policy makers and planners so as to provide adequate resources for its development. There were two such studies covering six states and three national level studies undertaken during the Plan period. The national level studies included (i) Preparation of a Tourism Satellite Account for India (ii) Study on Impact of Tourism in Employment Generation and Future Employment Potential at Selected Destinations and (iii) Study on the Impact of Interest Subsidy Scheme for Hotel Industry. The State level studies were (i) study on the impact of tourism on the socio-economic development of artisans and artistes in Kerala and Rajasthan and (ii) study to assess economic benefits of tourism in the States of Maharashtra, Orissa, Rajasthan and Tamil Nadu. The State/UT Governments seem to be not giving much importance to such studies. The total cost of these studies during the Plan period was Rs lakhs. 4.3 Evaluation Studies Evaluation studies are intended to evaluate the impact/performance of specific policies/programmes/schemes with a view to assess the factors contributing to the success or failure of the policy/ programme being evaluated and to identify measures to improve performance. The Ministry of Tourism undertook five evaluation studies during the Plan period. Among them four studies were for the evaluation of the performance of specific schemes like (i) Financial Assistance to States for Development of Circuits/Destinations, (ii) Capacity Building for Service Providers, (iii) Domestic Promotion and Publicity including Hospitality and (iv) Development of Rural Tourism. The fifth study was an evaluation of overseas promotion and publicity. No state Government has taken up any evaluation study. The total cost of all the five evaluation studies taken together was Rs lakhs. Out of the total cost, Rs lakhs was for the evaluation study of overseas promotion and publicity. 2-3

18 4.4 Action Plans/Best Practices Evaluation Study for the Scheme of The Ministry of Tourism prepared an action plan to raise the number of foreign tourists visiting India from 3 million to 15 million in 5 years time, 20 million in 8 years time and 25 million in 10 years time. The cost of the study was Rs lakhs. The study on best practices was to document the best practices adopted by different State Governments for the development of tourism so that other State Governments could emulate the same subject to prevailing local conditions. The cost of the study was Rs lakhs. 4.5 Tourist Surveys During the Plan period, the Ministry of Tourism undertook both the international passenger survey and domestic tourism survey with a view to prepare a Tourism Satellite Account (TSA) for India. In addition, the Ministry subscribed to Euro monitor, Travel & Tourism Market report and undertook a study on foreign tourist expenses on handicrafts. Collection of domestic tourism statistics in eleven states has also been commissioned by the Ministry of Tourism as a pilot project for outsourcing the activity. The total cost of these studies was Rs lakhs. 4.6 Policy Related Studies The policy related studies taken up by the Ministry during the Plan period included a study to examine the taxes levied by State Governments/Central Government from tourism sector in India, Civil Aviation Policy and its Impact on the Indian Tourism Industry, and consultancy for implementation of ISO certification. These studies were also initiated by the Central Government. 4.7 Industry Specific Studies The Ministry gave due attention to some of the specific forms of tourism and undertook three industry specific studies. These included (i) study to assess the potential of cruise tourism in India; (ii) size, scope and economic impact of India s convention industry and (iii) study to assess the requirement of hotel rooms/accommodation in metro cities and 50 major tourist centres in India. These studies were of immediate use in formulating suitable policies and programmes for the development of the above components of tourism. 4.8 Human Resource Requirement Study A study was undertaken in , to assess the man power requirements in hotel industry and travel sector. The study was intended to assess the manpower requirements of the industry so as to initiate measures for ensuring availability of trained man power. The cost of the study was Rs lakhs. 4.9 Area Specific Potential Surveys/Master Plans These studies were intended to assess the tourism potential of specific locations, identify product/infrastructure development requirements and estimate investment requirements for the development of such areas. 2-4

19 Evaluation Study for the Scheme of During the Plan period, 13 such studies covering seven states were undertaken. The States which under took the studies were Bihar, Jammu and Kashmir, Karnataka, Orissa, Tamil Nadu, Uttar Pradesh and Uttarakhand. The total cost of the projects was Rs lakhs Project Specific Feasibility Studies/Concept Plans These studies were intended to assess technical and financial feasibility of specific projects proposed to be taken-up for implementation by different State Governments. As many as 15 projects covering 10 States were undertaken. The maximum number of such projects, was in Karnataka and Uttarakhand. The other States which conducted such studies were Assam, Bihar, Delhi, Goa, Haryana, Himachal Pradesh, Jammu Kashmir and Punjab. The total cost of all the projects was Rs lakhs Detailed Project Reports Preparation of Detailed Project Reports in respect of specific projects proposed to be taken up for implementation was the most frequent study during the plan period. As many as 36 studies for the preparation of DPRs were undertaken by various State Governments. Mizoram got prepared as many as 8 Detailed Project Reports while Manipur and Jammu and Kashmir got prepared the same for 3 projects each. The other states which got prepared the DPRs were Andhra Pradesh, Arunachal Pradesh, Assam, Chattisgarh, Dadra & Nagar Haveli, Daman & Diu, Jharkhand, Karnataka, Madhya Pradesh, Meghalaya, Nagaland, Orissa, Sikkim, Uttar Pradesh and West Bengal. The total cost of these projects was Rs lakhs. The DPRs have been used for seeking financial assistance under the Destination/ Circuit Development Scheme of the Ministry of Tourism and 32 of them have been sanctioned during the plan period. 5. Year Wise Performance The 171 State-Projects were not uniformly distributed during the Plan period. As many as 59 State Projects at a total cost of Rs lakhs were taken up during the first year of Plan However, the number of projects got reduced to 22 in and again it increased to 43 in During , though the number of projects sanctioned was only 21, the total cost was lakhs due to evaluation study of overseas markets. The distribution of projects by year of sanctioning along with the costs is given in Table 2.3. Table 2.3: Year Wise Distribution of Projects Year No. of Projects Cost (Rs. Lakhs) Total

20 Evaluation Study for the Scheme of Y ear Year - Wise distribution of projects No. of Projects (Rs. in Lakhs) Years Year-Wise Cost of Projects Expend iture per Year 6. State Wise Distribution of Projects A review of the projects sanctioned during Tenth Plan indicates that the projects were not uniformly spread across all the States / Union Territories. While Perspective Plans have been prepared for almost all the states except Andhra Pradesh and Goa, the tourist surveys were confined to eleven states. Tourist surveys in five more states of Andhra Pradesh, Delhi. Jharkhand, Maharashtra and Punjab have been, however, commissioned during While Mizoram has prepared as many as eight Detailed Project Reports, many states have not prepared even a single such project report. Maximum number of DPRs was prepared for Mizoram and followed by Jammu & Kashmir. The distribution of projects according by type of projects and the State is given in Table 2.4 Table 2.4: State-wise Distribution of Projects by Type Sl. Project Type Total State / UT Name No Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Delhi Goa Gujarat Haryana Himachal Pradesh Jharkhand Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura

21 Evaluation Study for the Scheme of Sl. Project Type Total State / UT Name No Uttar Pradesh Uttarakhand West Bengal Andaman & Nicobar Islands Chandigarh Daman & Diu Dadra & Nagar Haveli Lakshadweep Pondichery No Specific State Total Cost of Projects by States The distribution of total Market Research projects by State along with the respective costs are given in Table 2.5 Table 2.5 Expenditure on Consultancy by State S.No State/UT Name Total Cost (Rs. Lakhs) 1 Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Delhi Goa Gujarat Haryana Himachal Pradesh Jharkhand Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttar Pradesh Uttarakhand West Bengal Andaman & Nicobar Islands

22 Evaluation Study for the Scheme of 31 Chandigarh Daman & Diu Dadra & Nagar Haveli Lakshadweep Pondichery No State Specific Total As many as 9 states including some of the major States like Andhra Pradesh, Gujarat and Tripura had only one project each sanctioned during the Plan period. Tripura also had the lowest project cost. Orissa took the maximum advantage of the scheme with ten projects costing Rs lakhs. It was followed by Uttarakhand with 8 projects costing Rs lakhs and Karnataka with 7 projects costing Rs lakhs. 8. Usefulness of the Scheme There was absolute unanimity among all the States/Union Territories which responded to the consultants or participated in the questionnaire survey that the scheme was useful for the development of tourism in the respective States. All of them agreed that lack of awareness about the magnitude and significance of tourism in the economy of the State/UT among policy makers and planners had been an issue for not providing adequate plan allocation for the development of tourism. Tourism statistics presently being collected/ maintained in several states are largely inadequate and less reliable. The State/UT Governments also confirmed in the affirmative the usefulness to assess the demand for various tourism facilities as well as the level of existing supply of such facilities and infrastructure. It is also considered useful to undertake studies for tourism forecasting and planning. Surveys and studies to assess the profiles of tourists visiting the State/UT to identify the potential markets and market segments for the State were also stated to be useful by all the respondents. Nevertheless, the State/UT Governments have not been able to take full advantage of the scheme for such market research activities. In general, market research and statistics have not been a priority activity in the tourism development process of most of the States. Identification of product/infrastructure development projects, preparation of project proposals for seeking central financial assistance and making arrangements for the implementation of such projects get the top priority. The budget allocations for tourism development in several states are also very little. The relevance of reliable statistics and market research thus do not get adequate attention. The State Governments also do not have the advise of experts or technical know how to initiate such surveys/statistics. The other reasons for not undertaking research activities include non availability of time and resources, difficulty in conceptualizing such activities and getting proper consultants, etc. There is thus a situation in which State Governments understand the importance of market research but do not have the requisite resources and technical expertise to undertake such activities. In view of the above, it is necessary that the Central Government takes responsibility for strengthening tourism statistics and research systems in the States/UTs. In this context, the following recommendations are made: 2-8

23 Evaluation Study for the Scheme of i. Two day workshops may be organized in five or six places to create awareness about the relevance of tourism statistics and market research as well as the need for maintaining statistics of tourism demand and supply. The State Governments generally do have a system of collecting statistics of tourist visits from accommodation establishments, tourist spots, pilgrim centers etc. These statistics are often added together though they are strictly not additive. The exact system in each State has to be, however, understood. On the first day, the participating State Government agencies may be asked to present the systems prevailing in their respective States along with the limitations. In the second day, the participating experts may review the cases of each State, clarify the concepts and definitions, inform the relevance of tourism statistics and provide suggestions for the improvement of Tourism Statistics. ii. In the next step, the states may be grouped on the basis of level of development of tourism statistics and in-depth studies of the systems prevailing in each group of states may be undertaken. This may be undertaken on a phased manner starting with the best performing states. The study will clearly document the present system including concepts and definitions, sources of data, procedures followed, agencies involved, existing administrative systems, legal provisions, coverage and reliability, etc. Based on the study, a project may be formulated for strengthening of tourism statistics system in each state with funding from the Central Government. The project may be again discussed with the concerned State Governments and implementation schedules may be drawn-up as agreed documents. iii. The project may be then implemented under the direct supervision and direction of the Central Government through the experts who have drawn-up the project. 9. Studies/Surveys sought by the State Governments All the State Governments who responded to the study expressed the need for undertaking market research activities to guide tourism development planning and marketing. Some of the State / UP Governments also indicated a few specific studies/surveys required to be taken up during the Eleventh Plan period as listed in Table: 2.6 Table: 2.6 Studies/Surveys Sought by the State Governments Sl. Name of Studies/Surveys No. the State 1. Assam i. Survey/Study to assess the profiles of tourists both domestic and foreign visiting the State. ii. Survey/Study to assess the performances of tourism industries in the State. 2. Karnataka i. Survey/Study to assess infrastructure requirements in major tourist destinations. 3. Meghalaya i. Market Research and branding studies to market tourism resources of the State. 4. Orissa i. Study to estimate economic impact of tourism 2-9

24 Evaluation Study for the Scheme of in Orissa. ii. Study to determine the requirement of hotel rooms in the State. iii. Market research to formulate marketing strategies for marketing tourism attractions of the State in the overseas markets. iv. Study to project investment opportunities in tourism infrastructure in Orissa. 5. Punjab i. Study to assess infrastructure requirements of tourism in the state. The Government of Jharkhand has indicated that it would need to undertake a number of studies/surveys covering all aspects including assessment of magnitude and significance of tourism in the State, demand and supply gaps in tourism facilities, identification of potential markets and market segments, performance of existing tourism industries in the State, etc. Rajasthan and Uttarakhand indicated the need for undertaking market research studies during Eleventh Plan though they did not specify any particular study. The requirements of the State Governments have to be converted into specific survey objectives and given both technical and financial assistance to meet their requirements. It is, therefore, recommended that the State Governments may be given technical assistance to formulate detailed study/survey projects apart from providing financial assistance to undertake those studies. 10. Quality and Utility of Study Reports The State/UT Governments were requested to indicate their views regarding quality and utility of selected study reports completed during Tenth Plan. In the case of Assam, Karnataka, Orissa, Rajasthan and Uttarakhand views were sought on all the study/survey reports undertaken during Tenth Plan. The other States/UTs were requested to review one selected study report. The responses received either in the form of written communication or in the form of oral responses are summarized in Table 2.7 Table: 2.7 Details of Projects Selected for Review and Responses Sl. No. State/UT Number of Projects Selected Reviewed Report not available / traceable 1 Assam Karnataka Orissa Rajasthan Uttarakhand Total In the case of other States, only three of them responded even after repeated reminders. In respect of 16 projects (44%), the State Governments were not even able to locate the reports and stated to have not been received. The State Governments were also not aware that most of the reports were available on the 2-10

25 Evaluation Study for the Scheme of website of the Ministry. It implied that the State Governments had not been able to take advantage of the studies/surveys though intended to be used for tourism planning and development in the respective States. It is, therefore recommended that the reports on state specific studies/surveys may be presented by arranging formal meetings and follow-up actions may be monitored periodically. The presentations and de-briefing of study reports are also necessary to ensure that the State Government agencies have no difficulty in understanding the recommendations and are satisfied with the data contents Sufficiency and Usefulness of Data contained in the Reports. The data presented in 78% of the reports were considered to be sufficient while that in the remaining 22% were considered as partly sufficient as per the responses received from the State Governments. The reports in which the data sets were considered to be partly sufficient included mostly collection of domestic tourism statistics and 20 year perspective plans. In the case of 20 year perspective plans, the response of partly sufficient was reported in some cases as detailed project reports to facilitate easy implementation were expected by the State/UT Governments, although it was not a part of the terms of reference. The Rajasthan Government reported that their suggestions for the revision of terms of reference were not accepted. The data sets presented in the reports are considered to be highly useful in 48% of the cases while in respect of the remaining 52% of the cases, the data sets were stated to be moderately useful. The data relating to tourist visits in some of the locations were considered to be not very accurate by the State Governments in view of the overlap and aggregation of day visitors and tourists staying in accommodation establishments Acceptability and Implementability of the Recommendations The State Governments have indicated that 68 percent of the recommendations contained the reports were acceptable and implementable while in the case of the remaining 32 percent, the recommendations were partly acceptable and implementable. Again the reasons for non-implementability were related to non-availability of resources and the need for various clearances Utilisation of Reports As per the responses from the State Governments, the contents of all the reports available have been utilized for various purposes. The reports were also stated to be used in future for such purposes. The specific purposes for which the reports have been used by the State/UT Governments include formulation of tourism policies and development strategies (43.5%), identification of circuits and destinations for development (56.5%) and identification of projects for seeking Central Financial Assistance (52.2%). The States have also used the surveys for estimating the volume of tourist traffic and their profiles (34.8%), average spending to determine economic impact of tourism (43.5%) and to formulate marketing and development strategies (52.2%). The Detailed Project Reports are invariably used for 2-11

26 Evaluation Study for the Scheme of seeking funding from the Central Government and 32 of them have been sanctioned during the Plan period. The foregoing analysis reveals that the State Governments have been making use of the reports extensively for various purposes. Some of the studies were used for assessing technical and financial viability of specific projects and for preparing conceptual plans and detailed cost estimates and the DPRs were used for seeking financial assistance from the Central Government. There were, however, some concerns about the usefulness of data sets contained in the reports and acceptability of recommendations to some extent. It is, therefore, recommended that detailed guidelines including details of specific aspects to be studied, quality standards to be followed and contents of the report may be drawn up for each type of study and provided as a part of RFP to the enlisted consultants. The Ministry has already drawn up such a guideline for the preparation of 20-year perspective plans Suggestions of State Governments for Improving the Scheme The suggestions given by the State Governments for the improvement of the scheme are the following: - 1. The consultants approved by the Ministry of Tourism should be engaged for the preparation of DPR for major circuits and destinations. In other cases, i.e. for minor circuits and destinations, the State/UT Governments may be allowed to engage local consultants from their end and the cost should be reimbursed, provided local qualified experts/consultants were formally selected and engaged. It has been, however, clarified by the Ministry that the existing guidelines of the scheme permit such a procedure as per identified needs and as such no further action is required on the suggestion. 2. Studies on measurement of economic impact of tourism, collection of domestic tourism statistics etc may be repeated after a gap of 4-5 years. 3. All the components of projects identified in the master plans should be clearly defined and given adequate details, and 4. Services of experts in tourism planning, marketing and infrastructure needs to be provided to the State/UT Governments to understand and design follow-up actions on perspective plans. The second and third suggestions could be easily accepted. The fourth suggestion could be taken care of by arranging formal presentation of reports and holding de-briefing sessions on each report. 2-12

27

28 Evaluation Study for the Scheme of CHAPTER III TECHNICAL REVIEW OF SELECTED STUDY REPORTS The technical soundness of a few selected projects in terms of study methodology, sampling techniques used and adequacy and reliability of findings is reviewed in this section. The selection of projects for the review has been made on the basis of cost of study, geographical spread and type of study. The review findings are summarized in the following paragraphs: 1. Evaluation Study in Selected Overseas Markets The Ministry of Tourism commissioned the Gallop Organisation to undertake the Evaluation Study in Overseas Markets during at a cost of Rs lakhs with a view to assess the impact of publicity campaign being undertaken overseas. It was the biggest market research exercise ever undertaken by the Ministry in terms of cost. 1.1 The Study Objectives The study objective as stated in the report is: Objectively assess the impact of the overseas campaign and study end-result in terms of knowledge levels, expectations, aspirations of India in key source markets. This understanding was expected to be used to fine-tune the current campaign and designing of future campaigns in the relevant source markets. The above overall objective was further translated into the following primary and secondary objectives: Primary Objectives Objectively assess the salience and effectiveness of the integrated communication effort undertaken by the Ministry of Tourism, Government of India, by source of awareness; viz Levels of various overseas marketing activities carried out by the Ministry of Tourism through different medias T.V, radio, posters, print; press and media relations; customer information services; consumer fairs and exhibitions, trade events, festivals, hallmark events, and website and various other channels of communication as applicable, amongst various target segments Secondary Objectives to obtain an assessment of the support provided by NTO (to business partners) in furthering their business; to obtain a broad overview of the outbound travel patterns (past and future) amongst the general population in the key target markets; to determine the preference for India, as a destination amongst potential target; 3-1

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