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Analysing The Tourism Industry Of India

Purpose - The paper aims to give a holistic perspective on various dimensions of the tourism industry in India.

Design/methodology/approach - The paper combines analysis of various documents as well as insights from researchers. The paper discusses problems of the tourism Industry, strengths of the industry, challenges faced by the industry in India and policy implications of the government.

Findings - The paper explains the economical need for tourism Industry in India by outlining the strengths and challenges of the Indian tourism industry. The paper has implications for the federal government and Industry players in conditions of investment in hospitality education and training, infrastructure and better employment practices.

Practical implications - The paper provides tips for a few of the initiatives that government and industry players could adopt.


Tourism industry of India is enjoying the growth period, driven by the Indian middle class, upsurge in tourists who will be ready to spend more and the government campaigns to promote India's "Incredible India". The tourism industry in India is substantial and vibrant, and the united states is fast learning to be a major global destination. It is one of the very most profitable industries of India which also contributes large amount of forex. In 2006 the total amount spent by the tourists in the country was US$ 8. 9 billion. Disposable income in India is continuing to grow by 10. 11% annually from 2001-2006, and the majority of it has been spent on travels as stated in "Economy Watch". Foreign tourists spend more in India than nearly every other country worldwide. The tourism industry has supported growth in other sectors like horticulture, handicrafts, agriculture, construction and poultry. There is a gap between the potential of the tourism industry and the success achieved till now. Through this study we would try to find out the steps that can be taken to curb the shortages faced by this industry.

Industry Contribution

Due to booming industries like IT and outsourcing industry, a growing number of business trips are made by foreigners to India, tourists spend more in India than almost any other country across the globe. The Tourism Ministry has also played an important role in the development of the industry; advertising campaigns including the 'Incredible India' campaigns have promoted India's culture and have attracted tourists in a tremendous way. Increased tourism in India has generated numerous jobs in a variety of related sectors both directly and indirectly. Almost 20 million people are actually employed in the India's tourism industry. India's governmental bodies also have made a considerable impact in tourism by so that it is mandatory that every state of India have to administer support issues related to tourism. A fresh growth sector is medical tourism. It is currently growing at around 30% per annum. Medical tourist arrivals are expected to attain one million soon. The tourism industry of India is based on certain core nationalistic ideals and standards that happen to be: Swaagat or welcome, Sahyog or cooperation, Soochanaa or information, Sanrachanaa or infrastructure, Suvidha or facilitation, Safaai or cleanliness and Surakshaa or security as mentioned by "World travel $ Tourism Council, India Initiative".

The landscape of India is a natural attraction for tourists and a rich tapestry of cultural heritage is woven into a wide range of tourism products. Indian tourism demand is estimated to grow at 8. 8 percent from 2004 to 2013, which would place India as the third-most rapidly growing tourism market in the world after Montenegro and China (HVS Hospitality Services, 2007). There's a phenomenal explosion of domestic tourism which is fueling the industry's revival. India has a broad population of educated, hospitable individuals who have the moral strength and desire to welcome tourists. The hospitality industry is also booming with an increasing amount of hotels being opened in various regions across India. This will likely in turn help in job creation and in driving the economic growth. Major brands such Emaar Group, Kingdom Hotel Investments; and international fund companies such as Blackstone, Morgan Stanley and Merrill Lynch among others have solidified their involvement in the Indian hotel sector.

Specific, targeted efforts are being designed to develop tourism in India in conditions of media campaigns. For example, the "Incredible India" campaign has already established a very strong impact on tourist arrivals. The "Brand India" message is being communicated globally and penetration is strengthened by reaching potential visitors through electronic, print and internet media (Himani Kaul, 2009).

Sporting events such as the Indian Premier League cricket tournament held in 2008 and the Commonwealth Games to be held this year 2010 are also significant drivers for promoting destination "India" and fuelling tourist demand.

Problems faced by the Industry

India's tourism industry has a labor shortage. There is not enough accommodation, rooms and dirty problem, food problem is to avoid tourists who come to India. Many parts of the country have not been very good, in terms of appropriate road, rail and air connections. Excessive bureaucracy had delayed new hotel and transport projects. Tourists tend to be the economic exploitation, and criminal elements in India, Indian women and the elderly can secure access to visitors. India's tourist attractions were also damaged pollution. Refinery smoke is harmful to the Taj Mahal, and coastal ecosystems, Rann Kutch and the Himalayas are contaminated blow. Delhi, Jaipur, Agra in northern India, transport and communications and Bhuwaneshwar - Konark - Puri Orissa industry better than other equally attractive destinations in India as per "Norah Faith". These problems also shorten the tourist season in India, which then brings about unemployment in off-seasons. According to the Tenth Planning Commission Report on Tourism; the major impediment to the growth of tourism has been having less awareness about the huge benefits it can bestow upon the host population. The Planning Commission Report has summarized the key factors that affect India's tourism competitiveness:

Lack of concern for competitiveness.

Inadequate facilitation services - infrastructure improvements at country entry

Points and appropriate facilitation services are needed.

Lack of quality infrastructure.

Lack of emphasis on product quality.

Lack of training at the "leading edge".

Lack of hygiene.

Low usage of modern marketing and publicity tools.

Insufficient involvement by the private sector in tourism development

The author Mr. Jauhari talks about Hospitality industry and tourism in India:

Hospitality industry is a significant employer. The industry includes services such as tourism and food service sector. It had been more than from peers, the industry's monetary fluctuations. On earth economy the hospitality industry is a significant sector. The industry consists of something industry, including catering, tourism and hotel industry an array of varieties. Also contains support for the hotel industry such as airline cabin staff travel and travel agencies, application of information technology (IT) and hospitality and tourism workers in technology business. Hospitality industry is seen as a a large volume of employees. Entry-level positions usually need no formal education (S. K. kuthiala)

These articles majorly focus on:

Infrastructure management: cooperation between different players such as hospitality businesses, infrastructure, state government, the ministry of tourism and environmental agencies. The budgetary allocation for tourism must be enhanced and real estate investments are required to upgrade facilities to ensure that tourists might experience a more consistent service product. Funding opportunities and escalating costs are other limitations.

Workforce issues; subsequently, this is impeding the professional development of hospitality and tourism as the industry is seen as a long working days and comparatively low degrees of compensation. Because of the intense competition for skilled labor and the higher rate of attrition whatsoever levels the other key manpower issue relates to the relatively limited experience of and competency in project and construction management. "The purpose of sustainable tourism requires well coordinated human resource development (HRD) strategies targeted at tourism industry personnel and the host community generally" (Srivastava, 2008).

Education and training for the hospitality and tourism; an area for concern and discussion pertains to the prevailing provision of hospitality education in India, and especially the curriculum and pedagogy where management preparation and training tend to be omitted.

The marketing of hospitality firms; Online marketing has become an important medium for hospitality firms. India is currently behind the pace in this respect and web sites need to add this capability in order to capitalize on the marketplace opportunities that exist around the world. India lacks in Consumer advisory web sites

Strategies adopted for growth and franchising;

Destination management; The Indian Government's "Incredible India" promotional campaign has made a significant contribution to the overseas image of India before year and helped to create a positive perception of what India provides. However, much more must be accomplished to be able to deliver on the potential that a tourism experience in India has to offer.

Crisis management. This is vitally important dimension that all tourism and hospitality organizations need to handle. The range of threats to tourism keeps growing and the outcomes can, potentially have a devastating effect on India's economy (Dirk Galesser).


Prioritize the investment in tourism and shorten the project start-up cycles.

Establish an individual point of access clearance system for new hotel/restaurant/tourism projects.

Upgrade airports, water and sanitation facilities and the public transport system at the earliest opportunity.

Manage the work force issues by buying hospitality education and benchmark the curriculum with the best in the globe. Establish institutes which train the faculty on the year-round basis.

Nurture the right competencies so that potential employees can perform when hired. India really needs people who have outstanding project management experience - especially in the management of large chains.

Create positive perceptions about the industry, offer competitive wages and spend money on employee growth. Any short cuts could have a disastrous impact on hiring and retaining employees in the long run.

Invest in the management of online tools for communication. As the internet becomes the main medium for accessing and retrieving information, an internet presence must be managed in order to create desired business outcomes. This effort must be allied with appropriate search terms and links to the key search engines (Vinnie Jauhari)

Develop international collaborations in order to learn as fast as possible from international best practices.

Invest in training so the potential of India's workforce can be realized.

Check the indiscriminate growth of tourism; the neighborhood population must be convinced of the need to support regulations in the interest of long-term sustainability. A lot of India's hill resorts have suffered due to lack of concern for capacity management.

Ease bureaucratic hurdles. ( Shivangi Gupta)


Characteristics of tourism are:

It is a constantly operating industry.

It is afflicted by seasonal fluctuations.

It is highly a Labor-intensive industry especially when it involves India.

Barriers to entry aren't strong because of this Industry.

In India for this Industry Small businesses predominates.

It is one industry which is a crucial medium for educational and cultural exchange throughout the world.

Consumer expenditure of domestic and international tourist keeps growing at a high rate.

Few producers or companies dominate in the Tourism Industry.

Opening of New places of interest happens regularly.

Mass tourists products have very little differentiation as the industry hasn't invested in this field up till now.

The impacts of tourism are far reaching reaching economic, social, environmental aspects.

Two types of tourism:

International Tourism : Travel to countries outside home country

Domestic Tourism: Travel within the united states.

Factors affecting tourism

The tourism industry is complex. Many components of the tourism Industry are from the other monetary sectors of the united states. The resulting interaction of the movement of tourists from the origin to the destination and the drivers involved are for sale to our analysis:

1. Physical Environment

Indian Tourism industry has also developed in a sizable variety of physical environments, with a lot of the different environments within India becoming favorable holiday destinations. These environments can include:

Hill stations




Holy places

Historical monuments

2. Technological change.

One of the most important variables affecting tourism is the technological changes. Twentieth century, transport technology destination on a sizable scale are preceded by mass tourism to feel free to spread, the manufacturers of rail or ship - built continuous vehicle capabilities.

Such developments influence reaches the places are with regards to social and financial reasons

The development of large aircraft long-range aircraft Boeing 747, was that an important stimulus for the growth of tourism industry.

3. The biophysical and built environment

A country's bio-physical environment, heritage and artistic life, is an integral part of the tourism industry. Various kinds of tourism development have different requirements; some countries will support development more than other countries.

The industry is eventually located in line with the physical distribution of attractions and usage of them, which is mainly dependant on natural factors. Destination must provide the purpose and needs of tourists for which it is seeking.

Tourist practices are influenced by environmental conditions, and restrictions on types of development can take place. Natural features are extremely desirable and really should go alongside the infrastructure and places of interest.

Climate is an important consideration, and favorable weather conditions are crucial. For any tourist activities is a fantastic weather, and climate often in a resort holidays determines the length and profitability.

4. Economic factors

Tourism is one of the very most prominent global financial performance department. Tourism is the employment of the accommodation, catering, transport, entertainment and other services industries major way to obtain important provisions. Furthermore, there's a huge production of indirect tourism activities. This is a promotion, because of its multiplier aftereffect of a variety of important means of economic growth.

Tourism is India's contribution to export earnings in large part on the Indian economy

Changing economic conditions largely determine the scale of the tourism industry. Together with the development of changes in employment structure and a more affluent society, creating an increased level of tourism products.

5. Socio-culturalInfluences

Participation in tourism is affected by demographic and social factors such as age, family life cycle, education, occupational structure, population concentration and quantity. Profound impact on demographic and social changes of the populace indulge, in the future tourism will be observed.

Increased life expectancy and changing composition of the workforce is also important.

More and much more women participation rate provides a boost tourism, because both higher income household disposable income. Gleam dink for individuals who travel more frequently.

6. Political influences

Governments in any way levels and everything parties acknowledge that although tourism is basically a private sector, the impact of the necessity for government involvement.

Government has a profound effect on the monetary environment in which the tour operators. The Government's main role is to promote the prosperity of the industry and the most intensive economic, social and environmental objectives constant with the development.

7. Cultural influences

Historical or cultural value is characterized by strong places of interest. Three Seductive cultural forms: - cultural forms, because it is inanimate monuments - cultural forms is reflected in the lifestyle of any destination

Especially in the cultural forms, could it be animated, such as festivals.

Tourism is often associated with cultural exchange and cultural richness. These contacts can have harmful effects be in the neighborhood culture and traditional way of life if they're weakened or destroyed.

The relationship between production and consumption

Tourism as a production contains three main components: Tourist country of origin; destinations and travel routes between locations.

1. Tourism generating areas

Visitors second homes in other words. Which represent the world's major markets and tourism market is the main feature found here.

2. Tourism destination areas

Attract tourists and what is not available at home.

Transport lines connecting both regions of production, is the main element factor. Production activities they may be the main part of traffic.

Them as visitors acquire the experience from a number of places. These activities are very interdependent.

The changing nature of the production process

The tourism industry throughout the twentieth century is closely related to rising living standards in developed countries. Half of the twentieth century, largely in the opportunity to travel to the privilege of the rich society, but the following World War II amount of rapid growth has enabled more folks to travel. Inside the automotive and aircraft become the key method of transport.

A amount of important changes are related to the development of the industry

International Travel

Tourism is becoming globalized. Global transport infrastructure round the world is rapidly becoming the way of most interrelated. Degree of globalization has also increased more countries to take part in international travel.

Organizational Development

Tourism organizations from two sources: the federal government and the private sector.

Recognizing the contribution of the tourism industry, the country's economical and social benefits derived out of it, to virtually all government organizations, tourism should be promote. Their obligations are of different degrees.

Opportunities in tourism, there is certainly caused by large and small scale mixing of all travel needs of food service from origin to destination. Production activities with other tourism enterprises participate in the emergence of significant growth. Most of the big travel company growth from the market and many tourist destinations and a larger market share and economies of scale drive very competitive nature.

Social impact of tourism

Tourism is an individual decision by the buyer.


Price for the whole package tours, most commonly it is cheaper to import a larger market holiday. Consumers have an option variety.

Small group travel

Small group travel is a favorite choice. They use local resources and services as possible.

Personal travel

Many tourists are actively planning their travel experiences. They like to personalize their trip, and not locked into a tour group. Experienced travelers would like to attain specific wishes. This reflects the visitors experience new and different aspirations. Demands of professional productive activities have been seen as a respond to the tourism industry.

Economic impact of tourism:

Increase the scale of production

The profit motive to encourage the development of large scale procedures and the size of companies mixed up in increase. Increasing size is especially evident in the lodging industry. The action in the hotel industry continued to expand. The large chain hotels can take benefit of economies of scale; small independent can compete on the basis of cost, customized service.

Horizontal and vertical integration

Increase in the production and concentration of ownership and control of the growth in size, usually comes through the horizontal and vertical integration. A small business may seek to expand or develop its own or combined with other enterprises.

Transnational Management

Integration continues to act in the tourism point of an multinational or transnational in nature. Multi-country development model differs. Clearly, the global market to provide greater market potential and opportunities, gain competitive advantage. Company wants to diversify its investment portfolio will expand overseas activities.

The impact of tourism technology

Tourism received a lot of research funds to promote development of new technologies. They changed this productive every field of activity.

Consumer choice

Tourism motivation and decision-making are increasingly shaped by changing technology. The Internet has allowed a lot of information is becoming available to tourists. Hotel facilities, reservations, attractions and similar to these.

Transportation Technology


The aircraft will benefit the near future development of larger capacity aircraft, but nonetheless subsonic. Generating capacity in order to promote aviation aircraft and speed increase. Therefore, the new aircraft cannot travel faster than any existing, nevertheless they will have a larger range and more seats to reduce travel costs.

Land transport

Transport is now faster and better competitive long-distance travel. This is the development of infrastructure to interact.

Maritime transport

Particularly there is a fast growth in the cruise industry. In 20th century Cruise fleet has doubled within the last decade.

Keep an eye on personnel and property

Computerization allows operators to operate more effectively and produce marketing plan activities you can use to the wealth of data. Global satellite network to provide as a new powerful marketing tool. Technology has changed the allocation process.

The political impact of tourism

Most governments are now actively seeking to promote tourism, and in their own countries, to use measures to coordinate public and private tourism activities to promote development of the industry. In a few parts of the developed world, Government support has been less impending. In many developing countries, tourism is considered to accelerate financial development. Some Governments have also encouraged the introduction of international tourism, and promote their own political goals.

The nature of government involvement:

Tourism Promotion

The Government's main contribution is both to promote tourism, and in their own country. Essentially the most direct way is to determine Tourism Organization, the impact of tourism development. Ministry of Tourism Australia, the implementation of the role, its objectives include:

To provide a future development of the industry, the Government's clear statement

To fortify the economic, environmental and cultural knowing of the value of tourism.

Facilitate the entry of visitors

Easy to enter a country is a key factor to attract tourists. In case the entry procedures for tourists are going to be complex, tourism will be affected. Now some countries with visa-free access in a few countries

Transport Policy

Availability, price and simple transport within and between countries dominate the visitors flow. Distribution of the traffic dispersion in conditions of tourists is important. Governments are generally used for transportation infrastructure and equipment available. Many airlines have entered the Union, to enable them to lessen costs and increase capacity. Under pressure Government have to help expand do the liberalization of the international airlines.

General monetary policy

The Government policies affect the industry directly and indirectly. For example, when the Government policies and regulations and high inflation would reduce spending, thus limiting the disposable income of the tourism industries. Government revenue, chares levies additional cost to the tourists.

Environmental and social impacts of tourism

Two major problems threaten the long-term survival of the tourism industry: environmental degradation, and adverse social impact, which is often accompanied by the introduction of tourism.

Tourism and the environment

Tourism development is often close to the biophysical environment where attractive or unique features. Tourism development often has a heavy pressure on natural resources. The best threat is to those who find themselves most susceptible to natural and man-made pressures.

Tourism can help:

The deterioration of air and water supply

Destruction of natural landscapes

Destruction of vegetation

Threats to wildlife

The challenge is to develop an operation to assess the actual environmental impacts of tourism development. Other mechanisms can be used to solve the impact of tourism regulations, the establishment of national parks, protection of significant heritage management and legislation to help protect our cultural and natural resources.

In tourism development and environmental protection activities linked to the production of future success. Uncontrolled development is likely to undermine the tourist attraction. Adequate planning by the government, the risk of environmental degradation faced by the world tourism industry can be overcome.

The social impact of tourism

Between visitors and residents can be mutually beneficial social ties:

1. Resident population to get more knowledge of cultural tourists, in order to maintain the national heritage of some of the traditional activities and needs.

2. Passengers bring tourism revenue and maintenance, as well as for local use these facilities. Visitors can go to the same host country and its own culture and traditions of understanding of their homes.

The development of tourism can promote each other's misunderstanding, hostility and social tensions, the impact of living by the tourists. This may include prostitution, crime and gambling.

Social policy and social services must become an integral part of tourism planning, tourism operators and by the host government. Failure to take action may appear hostile to tourists, which can decrease the tourist flow and vitality.

Results and Discussions

We conducted the survey among diverse demographics to analyze the current situation of tourism industry of India. After collecting data, we first performed the factor analysis on the info. From factor analysis we got five different factors which we performed multiple linear regression (MLR) to have the refined results.

Given below is the output that people generated from SPSS:

We can obviously find out that individuals give importance to Information about tourist spots, tour packages and security then Infrastructure and Hospitality. To attract large number of tourists we have to implement solutions for these factors and have to adopt appropriate measure for the growth of Indian tourism Industry.

Recommendations as per our study

Tourism is the world's largest production activities. This is accepted as their source of income and employment potential of the results of the federal government. The pace and the future tourism project are to determine the direction of the explosive growth:


We need to develop an information system which is very efficient and accessible throughout the world which also includes remote areas.


In India we need to be sure that we have to keep safety mechanism ready and speedy by connecting every tourist place, hotels to your police stations.

We will keep a chunk of the policemen to cater particular to this need.


Industry people have to start focusing on framing the package tours with more creativeness and innovation as our mass tourist products are more or less same and lack the flexibility which is necessary.


We need to provide enough protection of the surroundings.

Tourism trend is closely related to commercial infrastructure.

Infrastructures in India needs huge investment outlay and can directly have an impact on the growth of the tourism Industry.


Transport technology to make long-term fortunes with an increase of affordable, more folks to participate in international travel. Chosen to reflect the perceived safety of the destination.


Tourists will be drawn to the destination best suits their needs. Tourism is trying to provide travel experience to match all budgets and circumstances.


Technology will continue steadily to develop and strengthen the tourism experience. General market trends will lead to new tourism operators to promote products.

This is may be some barriers to international travel. Visitors will be courting the economical development of developed and developing countries.

Tourism stakeholders will have to bear greater responsibility. Whether it is a tourist and the host population should not be thought to be environmental quality.

The basic strategy of tourism development is to preserve and protect areas such as goal setting techniques apart. Development of guidelines for ethical and environmental regulations should be implemented to keep up sustainable tourism in the next century is feasible.

As the state boarders open, population aging, more affluent, tourism is to promote increasing numbers of people is going.

As production activities, tourisms importance in the global economy will continue steadily to grow.

Some more positives and negatives about the tourism industry which is often improved and can be prevent respectively:

Tourism foreign exchange earnings may be used to purchase imports

Protection of the initial environment is often

Travel to produce employment opportunities, are labor-intensive

Local products can be sold to hotels and resorts

At the airport with foreign investment

Profits may be used to improve housing, schools, etc.

Local customs and traditions are preserved

To improve cultural understanding

10-20% of the income received in time in which to stay the country; Most hotels are foreign owned.

Planning of the facilities are under construction in the lack of results in the wrong place, destroy scenic

Most employment is seasonal low income

Agricultural land on the market to developers, system break; visitors to eat the meals is imported

Use of hotel facilities to encourage residents, few can afford

Borrowed money to increase the national debt

Local customs through prostitution, crime and drugs are destroyed.

Lack of local customs and religious beliefs respected.

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