International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 1

ISSN 2229-5518

Economic Contribution of Tourism Industry

Towards Society

IJSER © 2012 http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 2

ISSN 2229-5518

Economic Contribution of Tourism Industry

Towards Society

Abstract

Tourism is an activity that is mainly carried out for recreational and leisure purposes.Now India is one of the fastest growing outbound travel markets in the world and has geared up to emerge as the second fastest growing tourism economy in the world by 2015 with projected 8.8% growth. The growth in

tourism sector is expected to rise further in the coming decades as the sector is expanding fast. Present paper highlights the role of tourism industry in

social and economical development of country,the role of Hotel and Aviation Industry in increasing the foreign exchange in India ,to know the areas which offers tourism related employment ,to measure the effectiveness of different schemes and programmes initiated by Government to increase the tourist inflow and economic benefits of tourism industry. To measure all above objectives, data and information has been collected through secondary sources including Books, Magazines, Journals, E-Journals, Internet, Reports of WTO, Ministry of Tourism, and World Travel and Tourism Council etc. To analyse all these fact three research questions have been prepared:- a) is tourism industry a boon or a curse to the society? b) are initiatives taken by government to increase the tourist inflow and to remove the challenges before tourism industry in india, sufficient or need some amendments? c)do increased economic benefits of tourism industry has created a place for India on world tourism map or not ?.After analyzing all the facts it can be concluded that tourism industry is expanding day by day and contributing a lot towards the economic development of society by providing employment opportunities and huge increase in foreign exchange earning. Though it has some negative sides too but this problem can be eliminated by the joint efforts of government, tourism organizations, media, and of course local communities.

Key Words:- Economic- Development, Foreign- Investment, Visitor- Investment, Ministry of Tourism, Foreign - Exchange, Infrastructure Development. Tourist- Traffic

Introduction

Tourism activity is not a new phenomenon for Indians. In recorded history there have been instances whereby one is able to know that man has been travelling throughout the ages.In
19th century people have seen travelling for the purpose of trade and commerce. Throughout history, traders and merchants have travelled to far off lands in order to trade with other nations and tribes. Than after people have started journeys to seek knowledge and to explore the unexplored land.
During the middle ages the practice for travelling for religious purposes became a well established custom in many parts of the world. It served as a powerful means of forging unity and understanding between peoples from widely different regions. Besides this the introduction of Railways and Ships in 19th century and introduction of air transport and motor car in 20th century gave a boom to the development of tourism industry .
 Dr. Anupama Sharma,and Ms. Sumita Kukreja, Assistant Professors in Maharaja Surajmal Institute,C-

4Janakpuri,New Delhi,Ph:9971328959, 9810224769.

 Dr. Anjana Sharma, Assistant Professor in

Govt.P.G.College,Gurgaon,Haryana.

India is a country which is known for its lavish treatment to all visitors, no matter where they come from . It is entertaining its visitors with its varied attractions which include beautiful beaches, forests, wild life, landscapes, snow, river, mountain peaks, technological parks, science museums, centres of pilgrimage, heritage trains, hotels, yoga, ayurveda and natural health resorts.The Indian handicrafts particularly, jewellery, carpets, leather goods, ivory and brass work are the main shopping items of foreign tourists. The facts vindicates that nearly forty per cent of the tourist expenditure is done on the shopping of such items.1

Objectives:-

- to explore the role of tourism industry in social and economical development of country.
- to know the different positive and negative impacts of tourism industry.

IJSER © 2012 http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 3

ISSN 2229-5518

- to explore the role of Hotel and Aviation Industry in increasing the foreign exchange and tourist inflow in India.
- to know the areas which offers tourism related employment.
-to measure the effectiveness of different schemes and programmes initiated by Government
- to increase the tourist inflow and economic benefits of tourism industry.

Research Questions:-

a) Is tourism industry a boon or a curse to the society?
b) Are initiatives taken by government to increase the tourist inflow and to remove the challenges before tourism industry in india, are sufficient or need some amendments?

c) Do increased economic benefits of tourism industry has created a place for India on world tourism map or not ?

Tourism has various social, economical, cultural,
psychological and environmental impacts on larger social fabric of society. The facet of these impacts may be positive or negative. On the one hand tourism industry is helping in socio-economic development of India; on the other hand it is degrading the culture, environment and belief system of the society.

Impacts of Tourism

Several negative as well as positive impacts of tourism are witnessed. These impacts are seen in society, economy, culture
and environment. Some of these positive impacts are as follows:-
Tourism industry is playing a significant role in the social,
economical, cultural and environmental development of society. Tourism industry is one of the world’s fastest growing economic sector and largest employer of manpower helps in earning multi-billion dollar annually by attracting a billion of people from one destination to another. This is evident from the fact that international tourist arrivals has doubled from the year
1995 (565.4 million) to the year 2010(1006.4 million). It is expected to reach to 1.56 billion by 2020, with the largest rate of increase in developing countries including India. It is expected to provide more than 251.6 million jobs by 2020. According to UN World Tourism 6-7% of the world’s total jobs directly and
millions more indirectly comes through the multiplier effect of
this sector.2
In India, tourism has made significant contribution to the Indian economy by providing an increase in foreign exchange earning, creating more employment opportunities and infrastructure development. It is clear from the tourism statistics that international tourist arrival has increased from 5.11 million in
2009 to 5.58 million with a growth rate of 8.1% in 2010 and foreign exchange earning has increased from US $11394 million in 2009 to 648.89 billion in 2010. Approximately 705 million domestic tourists have visited different states /UTs of India in
2010. Share of India in world tourist arrival and world tourism

IJSER © 2012 http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 4

ISSN 2229-5518

receipts is 0.58% and 1.24% respectively.3 It is also expected that
tourism demand will grow at an annual growth rate of 8.8%
over the next ten years.
Tourism protects and maintains the natural and cultural
resources of the country, helps in avoidance of migration of the local population, and brings about improvement in the economic and socio cultural level of the local community. It
serve as a tool to financial protection of natural areas and increase their economic importance and raise awareness regarding environmental values.
Social interaction between tourist and host community enhances the mutual appreciation, tolerance, understanding, awareness, family bonding, learning, respect and likings. Where as on the one hand residents of the host country get an education about the outside world while sitting at home on the other hand they availed the facilities of schools,libraries, healthcare institutions, and internet cafe, contributed by tourism industry.
On the one hand tourism industry is helping in socio-economic development of India; on the other hand it is degrading the culture, environment and belief system of the society by giving birth to several social problems like increased use of narcotics and drugs,sex tourism,child labour, seasonal employment, commercialization of cultural products,environmental degradation, increased pollution, extinction of rare species and increase in the price of commodities.4

Role of Tourism Industry In Economic Development of India

Travel and Tourism contributes to be one of the world’s largest industries.2011 was one of the most challenging years ever experienced by the global travel & tourism industry.Despite political upheaval,economic uncertainity and natural disasters,the industry’s direct contribution to world GDP grew by nearly 3% to US$ 2 trillion and directly generated 1.2 million new jobs. This was supported by a 3% increase in visitor exports to US$ 1.2 trillion,with almost 3% growth in capital investment, which rose to over US$0.7 trillion.5

Economic Contribution of Travel & Tourism Industry

The direct contribution of Travel & Tourism to GDP reflects the internal spending on Travel & Tourism( total spending within a particular country on T&T by residents and non- residents for business and leisure purposes) as well as government

‘individual’ spending( spending by government on Travel & Tourism directly linked to visitors, such as cultural or recreational).

The direct contribution of Travel & Tourism to GDP is calculated from total internal spending by netting out the purchases made by the different tourism sectors.The direct contribution of Travel & Tourism to GDP in 2011 was INR

1,689.8bn (1.9% of GDP).It is expected that it will rise up to 7.6%

to INR 1,818.5bn in 2012.This primarily reflects the economic

activity generated by industries such as hotels, travel agents, airlines and other passenger transportation services.But it also includes the activities of the restaurant and leisure industries directly supported by tourists.The direct contribution of T&T to GDP is expected to grow by 7.7%pa to INR 3,805.2bn (1.9% of GDP) by 2022.6

The total contribution of Travel & Tourism includes its wider impacts on the economy.The indirect contribution includes the GDP and jobs supported by Travel & Tourism investment spending( such as purchase of new aircraft and construction of new hotels),Government collective spending(such as tourism marketing & promotion, aviation, administration,security services ect.) and Domestic purchases of goods and services by the sectors dealing directly with tourists( including purchases of food and cleaning services by hotels, of fuel and catering services by airlines and IT services by travel agents).

The total contribution of Travel and Tourism to GDP was

INR5,651.0bn in 2011(6.4% of GDP) and is expected to grow by

7.3% to INR 6,062..3bn(6.5% of GDP) IN 2012. It is forecast that it will rise by 7.8%pa to INR12,891.2bn by 2022 ( 6.5% of GDP).7

The induced contribution measures the GDP and jobs supported by the spending of those who are directly or indirectly employed by the Travel & Tourism industry.

Visitor Exports and Investment

Visitor exports are a key component of the direct contribution of Travel & Tourism. In 2011 India generated INR801.4bn in visitor exports. In 2012, this is expected to grow by 3.5%, and the country is expected to attract 6,504.000 international tourist arrivals.It is expected that by 2022, international tourist arrival will increase to total 11,276,000, generating expenditure of INR1,382.6bn, with an increase of 5.2% pa. In the year

2011,Travel & Tourism has attracted a capital investment of INR

1,253.9bn.This is expected to rise by 12.3% in 2012,and rise by

7.5% pa over the next 10 years to INR 2,903.9bn in2022.8

In the year 2011 the Travel & Tourism Industry has generated

24,975,000 directly (5.0% of total employment) and this is forecast that it will grow by 3.0% in 2012 by providing jobs to

25,733,500 people(5.0% of total employment).By 2022, Travel & Tourism will account for 30,198,000 jobs directy, an increase of

1.6%pa over the next 10 years.The total contribution of T&T to employment was 39,352,000 jobs in 2011(7.8% of total employment).This is forecast to rise by 2.8% in 2012 to

IJSER © 2012 http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 5

ISSN 2229-5518

40,450,500 jobs(7.9% of total employment).By 2022, Travel &

Tourism is forecast to support 47,911,000 jobs(8.% of total

employment), an increase of 1.7%pa over the period.9

Negative Impacts of Tourism

IJSER © 2012 http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 6

ISSN 2229-5518

Table- 1 Estimates and Forecasts

Source-Report of World Travel and Tourism Council on Economic Impact of Tourism In India , 2011-12

Table- 2 The Economic Contribution of Travel & Tourism

IJSER © 2012 http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 7

ISSN 2229-5518

Source-Report of World Travel and Tourism Council on Economic Impact of Tourism In India , 2011-12

Table-3

IJSER © 2012 http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 8

ISSN 2229-5518

Table-4

Share of Top 10 Countries of the World and India in International Tourist

Receipts in 2010

IJSER © 2012 http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 9

ISSN 2229-5518

45.8 4.98
(P) Provisional
Source: UNWTO Tourism Highlights 2011 Edition

Figure-1

Others

52.11 %

USA

11.26 % Spain

5.71 %

France

5.04

China

4.98 %

Italy

4.22 %

Germany

3.78 %

UK

3.31 %

India

1.54 %

Turkey

2.26 %

Australia

3.28 % Hong Kong

(China)

2.50 %

From the above tables and charts it is clear that foreign tourist

arrival and foreign exchange earning is increasing day by day in India. In the year 2009 the total foreign tourist arrival was 516 million which has reached up to 629 million in the year

2011.Whereas the foreign exchange earning in the year 2009 was

54960 crore which has reached up to 77591 crore in the year

2011. The reasons which are responsible for increasing foreign tourist traffic and foreign exchange earnings in India may be

IJSER © 2012 http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 10

ISSN 2229-5518

described as, India is considered as a economical as well as

business cum pleasure destination, opening of the sectors of economy to private sectors, attracting foreign investment, open skies policies of aviation sector which has led to better connectivity with many countries with India, liberal government policies and tourism promotion measures initiated by tourism organizations.

Below given charts clearly depicts that not only foreigners but also millions of domestic tourist are attracted towards different tourist destinations of India and are travelling to different states and union territories to explore culture, to seek knowledge and for medical treatment. In the year 2009 about 668.8 million domestic tourist have visited different states of India. This figure has rose up to 740.21 million in the year 2010. Figure -3 rightly depicts that in the year 2010 the state Maharashtra is visited by maximum number ( 28.5% ) of total foreign tourist. Then Tamil Nadu and Delhi have received 15.7% and 10.6% of total foreign tourist respectively. In the case of domestic tourist arrival the state Andhra Pradesh has received 21.0% of total domestic tourist arrival. Then comes the Uttar Pradesh and Tamil Nadu which has received 19.6% and 15.1% of total Domestic tourist arrival in the year 2010 respectively. This increase has been seen as a direct outcome of rapidly increasing purchasing power of the middle class , better road connectivity, evolving life style, hike in salaries and liberal government policies.

Aviation Industry

Aviation as an important sector of Travel Industry is playing a significant role in economic development of world. Oxford Economics has estimated that over 5.5 million workers are employed directly in the industry worldwide and generating around US$425bn.It further enhances efficiencies through economies of scale,increased competition and innovation,and access to wider pools of human resources.In particular, the benefits to society of expenditure on research and development by the aerospace industry are very significant,adding 70% to GDP year after year for every dollar initially invested.
The aviation sector has undergone a significant structural transformation over the past decade,with the birth of a new airline model,the low-cost carrier(LCC).With their focus on no- frills, point-to-point services,LCCs have had a significant impact on the demand for airline travel, making it affordable for a much wider segment of the population in all key world regions. To make Tourism sector in India more attractive the Government has launched a scheme of ‘Visa on Arrival’ from January 2010 for citizens of five countries, namely Combodia, Indonesia, Vietnam Philippines, Laos and Myanmar from January 2011.

Percentage Share of Top 10 States/Uts of India in FTA

IJSER © 2012 http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 11

ISSN 2229-5518

Figure-2

Hotel Industry

Table-6

No. Of Domestic Tourist Visits to all States/Uts

In India-2005-2010

Source-State/Uts Tourism Departments

Hotel Industry is witnessing continued momentum due to the

increased number of foreign tourist arrivals together with the growth of domestic tourism in the country.The Indian Hospitality industry contributes around 2.2 percent of India’s GDP.The Indutsry is expected to reach INR 230 billion growing at a compound growth rate of 12.2 percent.The Industry also witnessed an increase in the number of hotel rooms with a growth 5% during the last three to four years.In the next two years, a total investment of US$12.2 billion (INR545.2 billion) is expected that will add over 20 new international brands in the hospitality sector.To attract budget tourist in india government is planning to develop budget hotels in the country. In this series various budget category hotels like Ginger Hotels, Lemon Tree Hotels, Sarovatels, and Fortune hotels have been established.10

Hotels in India are broadly classified into 7 categories (five star deluxe, five-star, four star, and three star, two star, and one-star and heritage hotels) by the Ministry of Tourism, Government of India, based on the general features and facilities offered. The ratings are reviewed every five years. 2010 As of December (latest available figure) there are following number and category of hotels.

Entry of international brands through joint ventures and tie-ups is likely to enhance the service levels and will narrow demand- supply gap of rooms. Currently, according to industry estimates, there are only1,05,000 hotel rooms in India. The growth for hotels is also likely to come from proliferation of Special Economic Zones.

IJSER © 2012 http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 12

ISSN 2229-5518

Table- 7: Demand for Hotels and Rooms with their Classification (2010)

35000

30000

25000

20000

15000

10000

5000

0

No. of

Rooms

IJSER © 2012 http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 13

ISSN 2229-5518

800

Total no. of Hotels In India

(2010)

700

600

500

400

300

No. of Hotels

200

100

0

Figure-4

The above figure clearly depicts that the total number of rooms and the total number of hotels are maximum at the three star
classifications i.e. 704 and 31039. The same is minimum in the one star hotel i.e.212 and 695 and heritage hotel classificati on i.e. 83 and 2
216.

Table -8 : GROWTH OF VISITORS IN HOTELS

Source: www.ministryoftourism.com

IJSER © 2012 http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 14

ISSN 2229-5518

Figure- 5

BAR GRAPH SHOWING CHANGE IN DEMAND OF HOTELS

10 9.1 9.2 9.1

8.3

8

6.1

6 5

7.2

5.7

7.1

4

2 0.8

1.9

0

2007 2008 2009 2010 2011E 2021F2

-2 -1.3

INTERNATIONAL VISITORS DOMESTIC VISITORS

The above figure shows the growth and demand for hotels in India. These visitors are inclusive of international as well as do mestic
tourists. The figure shows the contribution of the hotel industry to the GDP of India. The Indian Hospitality sector is expected to show a healthy growth in the medium term. Strong economic growth, increased FDI, greater emphasis on tourism development, favourable Government policies, impending 2010 Commonwealth games, 2011 Cricket World Cup and other international events, will be the major drivers for the growth. There exists a lot of scope for growth in tourism sector. According to the Ministry of Tourism, the c ontribution of tourism to India’s GDP is only 5.9 per cent as compared to the worldwide average of 11 per cent.11

Table - 9: Statistical Data – Indian Hotel Industry

Source: www.ministryoftourism.com

IJSER © 2012 http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 15

ISSN 2229-5518

Figure -6

250

BAR GRAPH SHOWING CHANGE IN THE DEMAND OF THE HOTEL ROOM OVER THE YRS.

200

150

100

50

0

Overall Average Five Star - Deluxe Five – Star Four – Star Three - Star

2005 - 06 2006-07 2007-08 2008-09 2009-10

The growth of the Hotel Industry is largely due to the rising
business opportunities, strong economic performance and cross border investments. India has currently base of 110,000 hotels rooms and still face the shortage of 150,000 rooms. There is a mismatch between demand and supply, leading to higher occupancies and average room rates. Occupancy rates across India have improved from 52 percent in 2005 to 67 percent in
2009. The demand for the five stars- deluxe hotels have been increasing.

Employment Opportunities inTravel & Tourism

Working in the Travel and Tourism industry is all about making traveling an enriching and enjoyable experience for every individual by providing quality services . This industry is the largest foreign exchange earner and it provides employment to millions of people. Employment opportunities exist in both the

public and the private sector in this industry. In the public

sector, you can work in the Directorates and Departments of tourism of the center and the state, guides etc. In the private sector, on the other hand you can secure a job in a travel agency, hotel, airline, transport agency or a cargo company. Since this industry is a relatively new one, there are not a huge number of experienced individuals. Hence, you can move up the ladder fast and establish your own agency after a few years.

The Career Options

o Travel Agencies: These institutions facilitate travel and other services for all individuals traveling for vacations or business purposes. Providing information about the destination, hotel ratings, the cheapest and the fastest mode of transport, visas, foreign exchange etc. is the job of a travel agent. Travel agencies are divided into roughly four departments- the Accounts, Tours,

IJSER © 2012 http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 16

ISSN 2229-5518

Travel and Cargo. A course in travel and tourism will help you

to get a suitable job.You can be a:-

 Travel Agent

 Tour Operators

 Travel – Information Centre Supervisor

 Reservation Clerk

 Travel Guide

 Travel Information Assistant etc.

Tourism Department: This department consists of:-

 Reservation and counter staff

 Sales and marketing staff,

 Tour planners,

 Tour guides,

 Information assistants and

 Officers in the Directorate and Department of tourism.

These officers for the Directorate and Department of tourism are chosen from the civil services and their job is to promote and plan tourism. Information assistants provide knowledge concerning destinations and plan itenaries. They are selected through a competitive exam which is held by the Staff Selection Commission. Guides too are divided into three categories namely regional, state and local. In order to be a guide, you must have knowledge about history, art, architecture and language.

Hotels: Hotels provide travelers with food and accomadation services. This service industry requires skilled and professional individuals and it’s manpower requirements are vast. Jobs related to front office, operations, house keeping, food and beverages, accounting, management and public relations are available. A course in hotel management would help you to get a suitable job. You can be a:-

 Manager Hotel

 Reservation Clerk/ Receptionist

 Night Auditor

 Cashier

 Travel Clerk

 Sales Representatives

 Lodging Facilities Manager etc.



Transport: Transport refers to means of traveling from one place to another. Air, railways, road and sea are the basic categories that transport is divided into:-

a) Road transport: Coaches and tourist cars provide scope for self employment. Drivers with good conversation skills and

knowledge of different languages are ideal for this job.You can

be a:-

 Sales Rental Agent

 Reservation Agent

 Automobile Rental Clerk

 Bus Attendant

 Interstate Bus Dispatcher

 Dispatcher Clerk

b) Airlines: This sector of the travel and tourism industry is in

great demand. The ground staff and the airlines need smart and presentable professionals with a degree in hotel management or travel and tourism.

 Traffic assistants

 Reservation and counter staff,

 Air hostess & flight pursuers,

 Sales and marketing staff

 Flight Attendant

 Airline Food Service

 Airline Lounge Receptionist

 Flight Dispatcher

 Crew Scheduler

 Airport Attendant

 Airport Manager

 Flight Information Expediter

 Station Manager

 Cargo Clerk etc.

c) Cruise Lines: Jobs most readily available to people with a background in tourism and hospitality include those that are directly related to passenger service and well-being. Training in the hospitality management and a back-ground in food and beverage preparation are essential for personnel incharge of all dining room facilities aboard ship.You can be a:-

 Documentation Supervisor

 Cargo Checker

 Booking Supervisor

 Chief Steward/ Stewardess

 Social Director/Public Relation Officer

d) Rail Transport:-This Department Consist of:-

 Documentation Billing Clerk

 Interline Clerk

 Passenger Rate Clerk

 Baggage and Mail Agent

 Dispatcher clerk

 Reservation Clerk

 Train Clerk

 Rail Road Dining Car Steward/ Stewardess etc.

IJSER © 2012 http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 17

ISSN 2229-5518

Time share companies: These companies own/manage holiday

resorts with time shares owned by different members of these companies. It leads to another set of companies which provide services relating to sale/transfer/exchange of these time shares with an international network of resorts. You have the option of working with resort owning companies or time share exchange companies.

Holiday consultants: This is a relatively new career option in the travel and tourism industry. These professionals provide all the information to their clients. They sell the holiday, plan the itenary, make the travel plan, book the tickets and provide all the other details which are required.

Banks: Banks require people to assist tourists and travelers on foreign exchange. Usually MBA professionals are preferred for this job. Banks help in hotel and ticket bookings also.

Challenges before Tourism Industry

From the all above description it is clear that tourism industry is growing day by day in the world and India is sharing a major part of world tourism receipts and world tourism traffic and has proved successful in maintaining its place on world tourism map. Though India shares only 1.24 % of international tourist receipts and 0.59% of international tourist traffic but this contribution can not be neglected The major constraint in the expansion of international tourist traffic to India is non- availability of adequate infrastructure including adequate air seat capacity, accessibility to tourist destinations, accommodation and trained manpower in sufficient number.Poor visitor experience, particularly, due to inadequate infrastructural facilities, poor hygienic conditions and incidents of touting and harassment of tourists in some places are factors that contribute to poor visitor experience.13

Different Schemes and Programmes initiated by Government to Promote Tourist Infrastructure and to Increase Tourist Inflow:

Different components of infrastructure like airport, railways, waterways, roads and other amenities like electricity, supply of water, sewage drainage, and other facilities like accommodation, recreational facilities, restaurants and shopping facilities etc. plays an important role in tourism infrastructure. As all these components creates the foundation of tourism industry the Government of India and Ministry of Tourism with the help of state and U.T. Goverenments are
launching and developing various development schemes to
improve the present situation of infrastructure in India.

Product Infrastructure Development for Destination and

Circuits Scheme:

To develop high standard infrastructure facilities, a large number of mega projects have been sanctioned by government in different states of India.In the financial year of 2010-11 a total no. of 136 projects have been sanctioned by government in different parts of India and a huge amount of Rs. 72,879.90 lakhs have been sanctioned for the same.In the financial year of 2011-

12, under the scheme of Product Infrastructure Development for Destination & Circuits,a total no. of 58 projects have been sanctioned in 19 states of India.14

Central Financial Assistance for IT Scheme:

Keeping in view the advantage of computer technology or IT sector Ministry of Tourism, Government of India has launched a scheme named “ Central Financial Assistance for IT” , for developing various tourism information facilities with interactive touch screen kiosks and audit guides, setting up of mobile multimedia tours,setting up of information kiosks at 10 selected major cities of India, and for providing facilities for internet online reservation and information to tourists. In the year 2010-11 a total no.of 8 mega projects have been sanctioned under the CFA scheme, and an amount of Rs.189.710 lakhs has been sanctioned for the same.Further in the year 2011-12 four projects have been sanctioned to provide instant information services to the tourists and an amount of Rs. 77.050 lakhs has been sanctioned by the Ministry of Tourism,Govt. of India.Out of which Rs. 69.350 lakhs has been released for the effective implementation of the programme.

Capacity Building for Service Providers Scheme:

In order to facilitate high standard infrastructure and superstructure in India , Ministry of Tourism has launched an another Scheme “Capacity Building For Service Providers” to develop various software work plan and Rural Tourism Project in different states of India.
In the year 2010-11 a total no.of 7 mega projects have been sanctioned under the CBSP scheme, and an amount of Rs.174.910 lakhs has been sanctioned for the same.Further in the year 2011-12, six projects have been sanctioned to develop software work plan and rural tourism projects in different states of India and an amount of Rs. 179.850 lakhs has been sanctioned by the Ministry of Tourism,Govt. of India.Out of which Rs.
143.890 lakhs has been released for the effective implementation
of the programme.

IJSER © 2012 http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 18

ISSN 2229-5518

Scheme for Assistance for Large Revenue Generating Projects

In order to remove all shortcomings and to bring in private sector, corporate and institutional resources as well as techno- managerial efficiencies, it is proposed to promote large revenue generating projects for development of Tourism infrastructure.

In the financial year 2008-09 two large revenue generating projects, one in Rajasthan and one in Tamil Nadu has been sanctioned and an amount of Rs.750.000 lakhs and Rs.802.700 lakhs respectively has been released for the same. In order to bring out the private, corporate and institutional support for infrastructure development, one large revenue generating project In Delhi has been sanctioned in the year 2009-10 and for which an amount of Rs.1,237.000 lakhs has been sanctioned and released by the government of India.15

Foreign Investment:

Government of India has allowed 100% Foreign Investment under the automatic route in the Hotel and Tourism Related Industry.The terms hotel includes restaurants, beach resort and other tourism complexes and the term tourism related industry includes travel agencies,tour operating agencies, transport organizations and other event organizing agencies.

Visa on Arrival Scheme:

To promote Golf- Tourism in India the Ministry of Tourism.has

organized a workshop “ Promotion of Golf-Tourism” in New

Delhi in January 2011.

Cruise Tourism is emerging as one of the most dynamic segment of the tourism industry.With an objective of making India attractive as cruise tourism destination, to develop infrastructure facilities and to attract right segment of the foreign tourists to cruise shipping in India a policy “Cruise Shipping Policy of the Ministry Of Shipping” was approved by the Government of India on June 28,2008.

The Ministry of Tourism has included the promotion of wellness Tourism as new initiatives. The Marketing Development Assistance Scheme (MDA) administered by the Ministry of Tourism provides financial support to Wellness Tourism Service Providers accredited by State Governments till the guidelines of AYUSH-NABH for accreditation are finalized.As per the report ‘Domestic Tourism in India’, 2008-09’ released by the National Sample Survey office on October

20,2010, trips for health and medical purposes formed 7% of overnight trips in the rural population and about 3.5% in the urban population.

Recently, the Ministry of Tourism has sanctioned INR 1.2 million under the Marketing Development Assistance (MDA) Scheme to 10 Medical Tourism Service Providers during 2010.17

Conclusion:

To make Tourism sector in India more attractive the
Government has launched a scheme of ‘Visa on Arrival’ from January 2010 for citizens of five countries, viz. Finland, Japan, Luxembourg,New Zealand and Singapore visiting India for tourism purposes.The Government has now extended this scheme for the citizens of six more countries, namely Combodia, Indonesia, Vietnam, Philippines, Laos and Myanmar from January 2011. In this order 5774 VoAs were issued during the period January to June.16

Scheme for the Development of Emerging Tourism Products:

Now the main concern of Ministry of Tourism and Government of India is to develop infrastructure for Rural Tourism, Golf Tourism, Cruise Tourism, Adventure Tourism, Sustainable Tourism, Well-ness Tourism, and Medical Tourism etc.

By developing rural tourism the Ministry of Tourism intends to help the local community economically and socially.On 28

February 2011, 169 rural tourism sites in 28 states/ UT have been

sanctioned by the Ministry of Tourism.

Tourism in India has vast potential for increasing foreign investments, foreign exchange earning, for generating employment , besides contributing towards the economic and social development of the society.Central and State government with the help of private sector and voluntary organistions are working towards improving the status of infrastructure including increasing air seat capacity,increasing trains and railway connectivity to important tourist destinations, four- laning of roads,and availability of accommodation by adding heritage hotels and 7 star hotels. Though India shares only 1.24

% of international tourist receipts and 0.59% of international

tourist traffic but this contribution can not be neglected. After analyzing all the facts it can be concluded that tourism industry is expanding day by day and contributing a lot towards the economic development of society by providing employment opportunities and huge increase in foreign exchange earning.Though it has some negative sides too but this problem can be eliminated by the joint efforts of government, tourism organizations, media, and of course local communities.

References:-

IJSER © 2012 http://www.ijser.org

International Journal of Scientific & Engineering Research, Volume 3, Issue 10, October-2012 19

ISSN 2229-5518

1-Mathur,Arpita, Fundamentals of Travel and Tourism, Page

No. 113-115, Edition-2011, Published by Ane Books Pvt. Ltd.

2-UNWTO Report 2009-10

3- UNWTO Report 2010-11

4-Bhatia, A .K., Internatioal Tourism- Fundamentals and Practices, Page No.2-5, Edition-2006, Published by Sterling Publishers Pvt. Ltd.

5- Report of World Travel and Tourism Council on Economic
Impact of Tourism in India 2011-12
6-- Report of World Travel and Tourism Council on Economic
Impact of Tourism in India 2011-12
7-- Report of World Travel and Tourism Council on Economic
Impact of Tourism in India 2011-12
8-- Report of World Travel and Tourism Council on Economic
Impact of Tourism in India 2011-12
9- UNWTO Report Tourism Highlights 2011 Edition
10- - Report of World Travel and Tourism Council on Economic
Impact of Tourism in India 2011-12
11-Report of Ministry of Tourism 2011-12
12- Report of World Travel and Tourism Council-Travel and
Tourism 2011.
13- Mathur,Arpita, Fundamentals of Travel and Tourism, Page

No. 113-115, Edition-2011, Published by Ane Books Pvt. Ltd.

14- -Report of Ministry of Tourism 2011-12
15-Report of Ministry of Tourism 2011-12
16- Report of World Travel and Tourism Council on Economic
Impact of Tourism in India 2011-12
17- Report of Ministry of Tourism 2011-12

IJSER © 2012 http://www.ijser.org