LESSON –1

TOURISM – CONCEPT & PERSPECTIVES

SYLLABUS
Course Objective: To inculcate a sense of importance and establish a link between the tourism industry and the
hotel industry and to highlight tourism industry as an alternative career path

Course Content:

Module-1 The Tourism Phenomenon

 Definition: Tourism, Tour, Tourist, Visitors, Excursionist, Domestic, International, Inbound,

Outbound
 Growth of Tourism
Module-2 Constituents of Tourism Industry

 Primary Constituents
 Secondary Constituents
 4 A’s of Tourism – Attraction, Accessibility, Accommodation, Amenities
 Career Opportunities for tourism professional
Module- 3 Infrastructure of Tourism

 Role of Transport in Tourism

 Modes of Transport : Road, Rail, Air, Sea
 Types of Accommodation- main & supplementary
Module-4 Types of Tourism

 Social
 Cultural
 MICE
 Sustainable Tourism
 Adventure Tourism
 Religious
 Alternative Tourism- Eco Tourism, Agro Rural Tourism
Module-5 Impact of Tourism

 Economic Impact
 Social, Cultural & Political Impact
 Environmental Impact
Module- 6 Tourism Organizations

 Government Organizations- DOT, ITDC, MTDC, ASI, TFCL

 Domestic Organizations- TAAI,FHRAI, IATO
 International Organizations- WTO,IATA, PATA
Module-7 The Travel Agency

 Meaning & Definition of Travel Agent

 Types of Travel Agent-Retail & Wholesale
 Functions of Travel Agent

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Module-8 The Tour Operator

 Meaning & Definition

 Types
 Tour Packaging
 Types of Package Tour- Independent, Inclusive, Escorted, Business
 Guides & Escorts- role, functions, qualities
Module-9 Travel Formalities

 Passport- definition, issuing authority, types, requirements for passport

 VISA- definition, issuing authority, types, requirements for VISA
 Health Regulations
Module-10 Itinerary Planning

 Definition
 Steps to plan a Tour
 Route map
 Transport booking- reservation
 Accommodation- reservation
 Food facilities
 Local guide/ escort
 Climate/ seasonality
 Shopping & Cultural show
 Costing
Reference Books:

1. Michael M. CottmanVan Nostrand Reinhold, Introduction to Travel & Tourism, New York, 1989
2. Jagmohan Negi, Travel Agency & Tour Operation Concepts & Principles, Kanishka Publishes, Distributors, New
Delhi, 1997
3. A. K. Bhatia, International Tourism – Fundamentals & Practices, Sterling Publishers Private Limited, 1996
4. B. K. Goswami & G. Raveendran Har , A Textbook of Indian Tourism, Anand Publications Pvt. Ltd., 2003
5. Ratandeep Singh, Dynamics of Modern Tourism, Kanishka Publishes, Distributors, New Delhi, 1998
Fletcher & Cooper, Tourism Development, Principles and Practices, ELBS

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 STUDY MATERIAL
CHANGING FACETS OF TOURISM
From the very inception of life, travel has fascinated man. Travel and tourism have been important
social activities of human beings from time immemorial. The urge to explore new places within
one’s own country or outside and seek a change of environment & experience has been experienced
from ancient times.
Tourism is one of the world’s most rapidly growing industries.
Much of its growth is due to higher disposable incomes, increased leisure time and falling costs of
travel. As airports become more enjoyable places to pass through, as travel agency services become
increasingly automated, and as tourists find it easier to get information on places they want to visit,
tourism grows.
The Internet has fuelled the growth of the travel industry by providing on line booking facilities. It
has also provided people with the power to explore destinations and cultures from their home personal
computers and make informed choices before finalizing travel plans. With its immense information
resources, the Internet allows tourists to scrutinize hotels, check weather forecasts, read up on local food
and even talk to other tourists around the world about their travel experiences for a chosen destination.
This new trend has made the tourism job very challenging. The holiday makers want a good rate of
return on their investment. They are to be lured with value additions and improved customer service.
This also put emphasis on the regular flow of manpower with specific skills at the appropriate levels to
match and cater to global standards. The success of the hospitality industry comes from provision of
quality rooms, food, service and ambiance. There is no doubt that fitness has increasingly become a
larger part of everyone’s life.
And business and leisure travelers alike look to maintain their fitness goals while away from home.
Awareness should be created about the environment and education. A collective effort and co-
operation with powerful networking are the need of the hour. People should be acting as the watchdogs
of the society as far as environmental issues are concerned. Eco-tourists are a growing community and
tourism promotions have to adopt such eco-practices which could fit this growing community.Another
growing trend in the tourism scene is the Incentive Market and the scope of the destination to attract
conferences and convention traffic. Here the prospects are better for those destinations where state of the
art infrastructure has been developed along with a safe and clean image.
Tourism today is much more than just developing products. It is more about quality, insightful thinking
and ability to have global information about technology, partners, contacts and responding quickly to
global and regional trends. The fundamental task before tourism promotion is to facilitate integration of
the various components in the tourism trade as active participants in the nation’s social and cultural life.
There is a long road ahead.
All must work towards a society where people can work and participate as equal partners. Tourism
should be a vehicle for international cooperation and understanding of the various civilizations and a
harbinger of peace.
From the foregoing we can see how fast the face of tourism is changing and how challenging the job of
travel agencies is now. There is therefore a need for proper training of the personnel working in the
industry through thorough and a detailed study of the subject A unified approach to the subject is also
needed since at present people from different fields have been studying tourism from different
perspectives.
1.3 DIFFERENT PERSPECTIVES ON THE STUDY OF TOURISM
1. Geographical Perspective - from a geographer’s perspective the main concern of tourism is to look
into aspects like the geographical location of a place, the climate, the landscape, the environment, the
physical planning and the changes in these emerging from provisioning of tourism facilities and
amenities. A geographer feels that it is the climate, landscape or physical attributes which draw the
tourist to a destination, for example; if a person from Delhi goes to Shimla in the summer he does so
because of the cooler climate which he cannot get in Delhi

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2. Sociological Perspective - From a sociologist’s perspective Tourism is a social activity; it is about
interaction between different communities—hosts and guests—and encounter between different
cultures. This approach studies social classes, habits and customs of both hosts and guests in terms of
tourism behaviour of individuals or groups of people and the impact of tourism on society.
3. Historical Perspective - from an historian’s perspective tourism is a study of the factors instrumental
in the initiation of tourism to a particular destination, the order of happenings leading to tourism
development, the reasons for happening of the occurrences in that order, beneficiaries of the tourist
activity and an untimely and premature identification of negative effects. For example we all know that a
lot of tourists visit Taj Mahal in Agra but a historian would be interested in studying the factors that
bring the tourist there, e.g. the architecture, the story behind the monument, or something else that draws
them there.
4. Managerial Perspective - from the management perspective tourism is an industry, and therefore
needs managerial skills in order to be properly managed. As the industry grows we see
continuous changes in various organizations and services linked with the industry, the tourism products
and so on so this approach concentrates on management activities such as planning, research,pricing,
marketing, control etc. as vital to the operation of a tourist establishment.
5. Economic Perspective – From an economist’s perspective tourism is a major source of foreign
exchange earnings, a generator of personal and corporate incomes, a creator of employment and a
contributor to government earnings. It is a dominant global activity surpassing even trade in oil and
manufactured goods. Economists study the effects of tourism industry on the economy. This is a two
way process.

THE IMPORTANCE OF MANAGERIAL AND ECONOMIC PERSPECTIVES TO THE STUDY

OF TOURISM
Now due to higher disposable incomes, increased leisure time and falling cost of travel, the Tourism
industry has shown a very high growth and since tourism is a service industry it comprises of a number
of tangible and intangible components. The tangible elements include transport systems - air, rail,
road, water and now, space; hospitality services - accommodation, food and beverage, tours,
souvenirs; and related services such as banking, insurance and safety and security. The intangible
elements include: rest and relaxation, culture, escape, adventure, new and different experiences.
As there are number of bodies involved the need arises for a management of services related to this
industry and so the study of Tourism acquires a great practical necessity and usefulness.
Tourism industry is very fast growing and this industry involves activities and interests of Transport
Undertakings, Owners of Tourist Sites and Attractions, Various tourist Service Providers at the tourist
destinations and Central and Local Government, etc. Each of these serves both the resident population
and the tourists and their management must reconcile the needs of tourists with the needs of the resident
population. So it becomes important to study tourism from the perspective of Management, since the
management of various bodies in this industry is invaded.

TOURISM – DEFINITION AND MEANING

In India we see the origin of the concept of Tourism in Sanskrit Literature. It has given us three terms
derived from the root word “Atana” which means going out and accordingly we have the terms:
Tirthatana – It means going out and visiting places of religious merit.
Paryatana - It means going out for pleasure and knowledge.
Deshatana - It means going out of the country primarily for economic gains.
In simple terms Tourism is the act of travel for the purposes of leisure,pleasure or business, and the
provision of services for this act.
There are two important components that make up tourism:
1. The practice of travelling for pleasure.
2. The business of providing tours and services for persons travelling.

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Here we are discussing the features of the above two components
The following are required, to make travel possible: (Component 1)
1. Discretionary income, i.e. money to spend on non-essentials
2. Time in which to do so.
3. Infrastructure in the form of accommodation facilities and means of transport.
Individually, sufficient health is also a condition, and of course the inclination to travel. Furthermore, in
some countries there are legal restrictions on travelling, especially abroad. Communist states restrict
foreign travel only to "trustworthy" citizens. The United States prohibits its citizens from travelling to
some countries, for example, Cuba.
There are four basic services to be provided for Tourists: (Component 2)
1. Travel Arrangements
2. Board and Lodging
3. Food
4. Entertainment
In the above paragraphs we have discussed the basic meaning of tourism and the features of the
components of Tourism.
Now we will talk about the definitions of the term tourism.
There have been a number of attempts to define tourism since the beginning of the twentieth century. It
is defined in a different manner by different people and the most widely accepted definition is the one
given by the World Travel Organization (W.T.O). This was approved by United Nations Statistical
Commission in its twenty-seventh session held from 22 February to 3 March 1993
As Per WTO
Tourism comprises the activities of persons travelling to and staying in places outside their usual
environment for not more than one consecutive year for leisure, business and other purposes.
The term “usual environment” is intended to exclude trips within the place of residence, trip to the usual
place of work or education and daily shopping and other local day-to-day activities.

The threshold of twelve months is intended to exclude long-term migration.

For the distance travelled there is no consensus. It varies from at least 40 kms to at least 160kms away
from home one way for any purpose other than commuting to work.
Five main characteristics of tourism may be identified from the definition
1. Tourism arises from a movement of people to, and their stay in,various destinations.
2. There are two elements in all tourism: the journey to the destination and the stay including activities at
the destination.
3. The journey and the stay take place outside the usual place of residence and work, so that tourism
gives rise to activities, which are distinct from those of the resident and the working population of the
places, through which the tourist travels and in which they stay.
4. The movement to destinations is of temporary, short-term character, with the intention of returning to
the usual environment within a few days, weeks or months.
5. Destinations are visited for purposes other than taking up permanent residence or employment
remunerated from within the places visited.
As per WTO definition, Tourism can be classified into the following forms
Inbound tourism: Visits to a country by non-resident of that country - for example, when A American
citizen, Mr. Sam comes to India to see the Taj Mahal, he is an inbound tourist for India.
Outbound tourism: Visits by the residents of a country to another country - ,for example when an
Indian citizen, Mr. Ram goes to America to see Hollywood , he is an outbound tourist for India
Domestic tourism: It involves travelling by the residents of the given country within their own country -,
for example, when Mr.Anil a resident of Delhi goes to see the Taj Mahal in Agra he is a
domestic Indian Tourist.
Internal tourism: It comprises of domestic tourism and inbound tourism.

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International tourism: It comprises of inbound tourism and outbound tourism
CHECK YOUR PROGRESS-I
1. What are the two elements in all forms of Tourism?
2. Which of the following activities can be put under the term Tourism?
a) Ms. Tina goes to the nearby market to shop for groceries.
b) Mr. Ajit who stays in Faridabad, goes to Nehru Place to pay his phone bills.
c) Mr. Raj, a resident of Delhi, goes to Mumbai and takes up a job there.
d) Ms Sita a resident of Mumbai, goes for a weekend to Goa.
After defining the term tourism we would here like to bring out the differences between the words.
Travel and Tourism.
1.6 DIFFERENCES BETWEEN TRAVEL AND TOURISM
Though the words Travel and Tourism are synonymised and used interchangeably but Tourism is a wider
concept and encompasses a lot more than travel alone.
Travel implies journeys undertaken from one place to another for any purpose including journeys to
work and as a part of employment, as a part of leisure and to take up residence; whereas Tourism
includes the journey to a destination and also the stay at a destination outside one’s usual place of
residence and the activities undertaken for leisure and recreation. All tourism includes some travel, but
not all travel is tourism .A person may often travel for a wide variety of purposes of which tourism is
only one. However if properly handled, a part of the travel for non tourism purposes can be motivated
into travel for tourism as an additional purpose .For example a person on a journey as a part of
employment to a place with one or more tourist attractions –like a spot of scenic beauty or historical
significance, a pilgrimage, a lake, etc. can be induced to spare some time and money for a short visit and
or stay for tourism purposes alone .In this sense every traveler is a ‘potential’ tourist and is upto the
managers of the industry to tap this ‘potential’ and convert the traveller into an ‘actual’ tourist.
Some of the characteristics that distinguish tourism from travel are:
Tourism is:
1. Temporary, to distinguish it from the permanent travel of the tramp and nomad
2. Voluntary, to distinguish it from the forced travel of the exile and refugee
3. Round up, to distinguish it from the one-way journey of the migrant
4. Relatively long, to distinguish it from the recurrent trips of the holiday house owner
CHECK YOUR PROGRESS -II
1. When gypsies go from one destination to another, is that covered under travel or tourism?
2. If Mr. Ravi, working in a software company in Delhi, is transferred to Bangalore would it be covered
under travel or tourism?
3. If Mr. Ravi, who is transferred to Bangalore from Delhi, decides to go for a weekend to see the
temples in Mysore would it be travel or tourism?
1.7 DEFINITIONS
The principal character in the phenomenon called Tourism is the ‘Tourist’ and without his being
around the tourism phenomenon is meaningless.
The term Tourist is believed to have been derived from the Latin word ‘TORNUS’ which means a tool,
a circle or a turner’s wheel. In the sense of the word of the origin, tourist is a person who undertakes a
circular trip, i.e., ultimately comes back to the place from where he sets about his journey.
Based on the various definitions of a Tourist here are some of the characteristics of a Tourist
1. He takes up his journey of his own free will.
2. He takes up the journey primarily in search of enjoyment.
3. The money spent on the visit is the money derived from home, not money earned in the places of
visit.
4. He finally returns to his original starting point.
We now proceed to discuss the definition of Tourist as given by WTO. But since WTO considers a
tourist a type of a Visitor. We will first discuss the definition of a Visitor.

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The WTO in a conference held in 1963 introduced the term ‘Visitor’.
A Visitor is defined as ‘Any person visiting a country other than that in which he has his usual place of
residence for any reason other than being interested in an occupation remunerated from within the
country visited.
The term includes two types of visitors:
1. Tourist – Is a temporary visitor staying for a period of at least 24 hours in the country visited and the
purpose of whose journey can be classified under one of the following heads :
a) Leisure (recreation, holiday, health, study, religion and sport)
b) Business, family, mission, meeting.

As per the WTO’s definition following persons are to be regarded as tourists:

i) Persons travelling for pleasure, for domestic reasons, for health etc.
ii) Persons travelling for meetings or in representative capacity of any kind (scientific, administrative,
religious etc.)
iii) Persons travelling for business purposes.
iv) Persons arriving in the course of sea cruises, even when they stay for less than 24 hours (in respect of
this category of persons the condition of usual place of residence is waived off.

However persons belonging to the following categories are not considered as tourists:
i) Persons arriving with or without a contract to take up an occupation or engage in any business activity
in that country.
ii) Residents in a frontier zone and persons domiciled in one country and working in an adjoining
country.
iii) Students and young persons in boarding establishments of schools/colleges.
iv) Travellers passing through a country without stopping, even if the journey takes more than 24 hours.

2. Excursionist—is a temporary visitor staying for a period of less than 24hours in the country visited.
(Including travellers on the cruises).
The drawback of the definition of a Visitor as per WTO is that it does not talk about the Visits made
within the country. For these purposes a distinction is drawn between a Domestic and an International
Visitor.
Domestic Visitor-A person who travels within the country he is residing in,outside the place of his usual
environment for a period not exceeding 12 months.
International Visitor –A person who travels to a country other than the one in which he has his usual
residence for a period not exceeding 12 months.
After we have discussed the definition of a visitor, tourist, and excursionist as per WTO and made a
distinction between a Domestic and an International Visitor, we now come to definitions used in India
for the purpose of collecting tourism statistics.
CHECK YOUR PROGRESS-III
1. From amongst the persons listed below who all are included in the definition of a Tourist?
a) Mr.Chand, a resident of Delhi goes for a two-day conference to Hyderabad
b) Ms. Rina, a resident of Mumbai goes for a heart transplant to America
c) Ms. Mina, a resident of Delhi takes a flight for America and the flight has a stopover of 36 hours in
Singapore .Is she a tourist in Singapore?
Definitions followed in India
In relation to the definitions provided by the WTO, those followed in India are different in some ways.
International Visitor- has been defined as a person holding a foreign passport, visiting the country and
the main purpose of whose visit is other than the exercise of an activity remunerated from within the
country visited.

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International Tourist-An international tourist has been defined as a person visiting India on a foreign
passport, staying at least 24 hours in India and the purpose of whose journey can be classified under one
of the following headings:
Leisure (recreation, holiday, health, study, religion and sport.
Business, Family, Mission and Meeting.
The following are not regarded as foreign tourists
i) Persons arriving with or without contract to take up an occupation or engage in activities remunerated
from within the country.
ii) Persons coming to establish residences in the country.
iii) Nationals of Nepal entering India through land-routes along India-Nepal border.
iv) All foreigners entering India from Bhutan by land and children aged less than three years.

Excursionist- he is a visitor staying less than 24 hours in the country including cruise passengers.
Cruise Passenger- he is a visitor who arrives in the country aboard cruise ships and who does not spend
a night in an accommodation establishment in the country.Domestic Tourist- A person who travels
within the country to a place other than his usual place of residence and stays at hotels or other
accommodation establishments run on commercial bases or in dharamshalas or stays with friends and
relatives and uses sightseeing facilities, or goes on a pilgrimage for a duration of not less than 24 hours
or one night and not more than 6months at a time for any of the following purposes:
Pleasure(holiday, leisure, sports and so on)
Pilgrimage, Religious and Social functions
Study and Health
The following are not regarded as domestic tourists:
Garry Persons arriving with or without a contract to take up an occupation or engage in activities
remunerated from within the state centre.
Persons visiting their home town or native place on leave or a short visit for meeting relations and
friends, attending social and religious functions and staying in their own houses or with relatives and
friends and not using any sightseeing facilities.
Foreigners resident in India .
Here we observe that as per the Indian definition, a traveler must hold a foreign passport to be included
in the category of an International Visitor; this implies that Indians settled abroad and holding Indian
Passports will not be counted as International Visitors when they come to India for recreation, business
or other such purposes. However, nonetheless they are counted as Domestic Visitors and so here we see
that categorization is based on nationality rather than place of residence. But as per WTO definition they
should have been included in the list of International Visitors. From this we can clearly see the
difference in the Indian definition and the one given by

WTO.CHECK YOUR PROGRESS IV

1. Mr. Rohit, an Indian goes to work in America and after five months he comes to India and visits
the Jagannath Temple in Orissa. As per the Indian definition is he an International Tourist?
1.10 SELF ASSESSMENT QUESTIONS
1. What is the definition and various forms of Tourism?
2. Who all are included in the definition of a tourist as per WTO?
3. What is the difference between:
4.Travel and Tourism
5.Domestic and International Tourist
6.A Tourist and an Excursionist

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 LESSON 2
TOURISM PRODUCTS:
A tourism product can be defined as the sum of the physical and psychological satisfaction it provides to
tourists during their travelling en route to the destination. The tourist product focuses on facilities and
services designed to meet the needs of the tourist. It can be seen as a composite product, as the sum total
of a country’s tourist attractions, transport, and accommodation and of entertainment which result in
customer satisfaction. Each of the components of a tourist product is supplied by individual providers of
services like hotel companies, airlines, travel agencies, etc. The tourist product can be analysed in terms
of its attraction, accessibility and accommodation.
Attractions
Of the three basic components of a tourist product, attractions are very important. Unless there is an
attraction, the tourist will not be motivated to go to a particular place. Attractions are those elements in a
product which determine the choice made by particular tourist to visit one particular destination rather
than another. The attractions could be cultural, like sites and areas of archaeological interest, historical
buildings and monuments, flora and fauna, beach resorts, mountains, national parks or events like trade
fairs, exhibitions, arts and music festivals, games, etc. Tourist demands are also very much susceptible to
changes in fashion. Fashion is an important factor in the demand for various tourist attractions and
amenities. The tourist who visits a particular place for its natural beauty may decide to visit some other
attractions due to a change in fashion.
Peter has drawn up an inventory of the various attractions which are of significance in tourism. These
are given below in a table:-
Inventory of Tourist Attractions Cultural: Sites and areas of archaeological interest, Historical
building sand Monuments, Places of historical significance, Museums,Modern Culture, Political and
Educational institutions,Religious Institutions
Traditions: National Festivals, Arts and Handicrafts, Music, Folklore,Native life and Customs
Scenic: National Parks, Wildlife, Flora and Fauna, Beach Resorts,Mountain Resorts.
Entertainment: Participation and Viewing sports, Amusement and Recreation Parks Zones and
Oceanariums, Cinemas and Theatres, Night Life and Cuisine.
Others: Climate, Health resorts or Spas, Unique characteristics not available elsewhere, the attractions
of tourism are, to a very large extent,geographical in character. Location and accessibility (whether a
place has a coastal or inland position and the ease with which a given place can be reached) are
important. Physical space may be thought of as a component for those who seek the wilderness and
solitude. Scenery or landscape is a compound of landforms;water and the vegetation and has an aesthetic
and recreative value. Climate conditions, especially in relation to the amount of sunshine, temperature
and precipitation (snow as well as rain), are of special significance.Animal life may be an important
attraction, firstly in relation to, birdwatching or viewing game in their natural habitat and secondly, for
sports purposes, eg. fishing and hunting. Man’s impact on the natural landscape in the form of his
settlements, historical monuments and archaeological remains is also a major attraction. Finally, a
variety of cultural features-ways of life,folklore, artistic expressions, etc. provide valuable attractions to
many.
Accessibility
It is a means by which a tourist can reach the area where attractions are located. Tourist attractions of
whatever type would be of little importance if their locations are inaccessible by the normal means of
transport. A Tourist in order to get to his destination needs some mode of transport. This mode maybe a
motor car, a coach, an aeroplane, a ship or a train which enables him to
reach his predetermined destination. If tourist destinations are located at places where no transport can
reach or where there are inadequate transport facilities,they become of little value. The tourist
attractions, which are located near the tourist-generating markets and are linked by a network of efficient
means of transport, receive the maximum number of tourists.

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The distance factor also plays an important role in determining a tourist's choice of a destination. Longer
distances cost much more in the way of expenses on travel as compared to short distances. An example
can be that of India. About two and a half million tourist arrivals for a country of the size of India may
look rather unimpressive. However if one looks at certain factorslike the country’s distance from the
affluent tourist markets of the world suchas the United States, Europe, Canada, Japan and Australia, one
may concludethat the long distance is one of the factors responsible for low arrivals. It costsa visitor
from these countries, quite a substantial amount, to visit India for a
holiday. It has been stated earlier that Europe and North America continue tobe the main generating and
receiving areas for international tourism,accounting for as much as 70% and 20% respectively, of
international tourist arrivals. Easy accessibility, thus is a key factor for the growth and development of
tourist movements.
Accommodation
The accommodation and other facilities complement the attractions.

Accommodation plays a central role and is very basic to tourist destinations.

World Tourism Organization in its definition of a tourist has stated that he
must spend at least one night in the destination visited, to qualify as a tourist.
This presupposes availability of some kind of accommodation. The demand
for accommodation away from one’s home is met by a variety of facilities.
The range and type of accommodation is quite varied and has undergone considerable change since the
last half century. There has been a decline in the use of boarding houses and small private hotels. Larger
hotels are increasing their share of holiday trade, especially in big metropolitan area sand popular spots.
In more traditional holiday and sea-side resorts in Europe and elsewhere, big hotels are keeping their
share of holiday resorts. In recent has been an increasing demand for more non- traditional and informal
types of accommodation. The latest trends in accommodation are holiday villages. In recent years there
has been an increase in the popularity of such accommodation.Accommodation may in itself be an
important tourist attraction. In fact,a large number of tourists visit a particular destination or town simply
because there is a first class luxury hotel or resort which provides excellent servicesand facilities. Some
countries like Switzerland, Holland, France, Austria, andBelgium have gained a reputation for providing
excellent accommodation withespecially the resort hotels, have gained a reputation for their
excellentcuisine, services and facilities. The French government for instance, paved the way for tourist
development of Corsica by launching a big hotel developmentprogramme.
Amenities
Facilities are a necessary aid to the tourist centre. For a sea-side resort,facilities like swimming, boating,
yachting, surf-riding, and other facilities likedancing, recreation and other amusements are important for
every touristcentre. Amenities can be of two types; natural, eg. beaches, sea-bathing,possibilities of
fishing, opportunities for climbing, trekking, viewing, etc. andman-made, eg. various types of
entertainment and facilities which cater to thespecial needs of the tourists. Excellent sandy beaches,
sheltered from sunshinewith palm and coconut trees and offering good bathing conditions form
verygood tourist attractions. Certain other natural amenities such as spaciouswaters for the purpose of
sailing, or the opportunities for fishing and huntingare also very important.
CHECK YOUR PROGRESS 1
1) Name some ‘Tourist Products’.
2) List some reasons why you would like to travel.
3) Put down five tourist destinations you would like to visit and describe how you would reach
them.
4) What are the facilities you look for, in the places where you will stay on a holiday?

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2.3 CHARACTERISTICS OF TOURISM PRODUCT
By now, you must have understood what a tourism product is. Now let us look at some of its
characteristics:-
1) Intangible
Unlike a tangible product, say, a motor car or refrigerator, no transfer of ownership of goods is involved
in tourism. The product here cannot be seen or inspected before its purchase. Instead, certain facilities,
installations, items of equipment are made available for a specified time and for a specified use. For
example, a seat in an aero plane is provided only for a specified time.
2) Psychological
A large component of tourism product is the satisfaction the consumer derives
rom its use. A tourist acquires experiences while interacting with the new environment and his
experiences help to attract and motivate potential customers.
3) Highly Perishable
A travel agent or tour operator who sells a tourism product cannot store it. Production can only take
place if the customer is actually present. And once consumption begins, it cannot be stopped, interrupted
or modified. If the product remains unused, the chances are lost i.e. if tourists do not visit particular
place, the opportunity at that time is lost. It is due to this reason that heavy discount is offered by hotels
and transport generating organizations during off season.
4) Composite Product
The tourist product cannot be provided by a single enterprise unlike a manufactured product. The tourist
product covers the complete experience of a visit to a particular place. And many providers contribute to
this experience. For instance, airline supplies seats, a hotel provides rooms and restaurants,
travel agents make bookings for stay and sightseeing, etc.
5) Unstable Demand
Tourism demand is influenced by seasonal, economic political and others suchfactors. There are certain
times of the year which see a greater demand thanothers. At these times there is a greater strain on
services like hotel bookings,employment, the transport system, etc.
6) Fixed supply in the short run
The tourism product unlike a manufactured product cannot be brought to the consumer; the consumer
must go to the product. This requires an in-depth study of users’ behavior, taste preferences, likes and
dislikes so that expectations and realities coincide for the maximum satisfaction of the consumer. The
supply of a tourism product is fixed in the short run and can
only be increased in the long run following increased demand patterns.
7) Absence of ownership
When you buy a car, the ownership of the car is transferred to you, but when you hire a taxi youbuy the
right to be transported to a predetermined destination at a predetermined price (fare). You neither own
the automobile nor the driver of the vehicle. Similarly, hotel rooms, airline tickets, etc. can be used but
not owned. These services can be bought for consumption but ownership remains with the provider of
the service. So, a dance can be enjoyed by viewing it, but the dancer cannot be owned.
8) Heterogeneous
Tourism is not a homogeneous product since it tends to vary in standard and quality over time, unlike a
T.V set or any other manufactured product. A package tour or even a flight on an aircraft can’t be
consistent at all times. The reason is that this product is a service and services are people based. Due to
this, there is variability in this product. All individuals vary and even the same
individual may not perform the same every time. For instance, all air hostesses cannot provide the same
quality of service and even the same air hostess may not perform uniformly in the morning and evening.
Thus, services cannot be standardized.
9) Risky

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The risk involved in the use of a tourism product is heightened since it has to be purchased before its
consumption. An element of chance is always present in its consumption. Like, a show might not be as
entertaining as it promises to be or a beach holiday might be disappointing due to heavy rain.
10) Marketable
Tourism product is marketed at two levels. At the first level, national and regional organizations engage
in persuading potential tourists to visit the country or a certain region. These official tourist
organizations first create knowledge of its country in tourist –generating markets and persuade visitors
in these markets to visit the country. At the second level, the various individual firms providing tourist
services, market their own components of the total tourist product to persuade potential tourists to visit
that region for which they are responsible.
CHECK YOUR PROGRESS 2
1) List out some things that you pay for that are intangible.
2) Write down all the components of a package tour that you read about in an advertisement for a
holiday.
Activity 1
Speak to some of your friends and ask them when they like to travel. See what the majority
chooses as the favorite time of the year.
Activity 2
Out of the list given below, write down those keywords which are not characteristics of a tourist
product: Perishable, Chemical, Transferable, Homogeneous, Seasonal, Psychological, Patent and
Marketable.

2.4 FORMS OF TOURISM PRODUCT

By now you must be aware of what a tourism product is and what its peculiar features are. It is
necessary to understand the components of the tourist product from the point of view of the consumer.
The product for the tourist covers the complete experience from the time he leaves home to the time here
turns. The tourist product today is developed to meet the needs of the consumer and techniques like
direct sales, publicity and advertising are employed to bring this product to the consumer. The tourist
product is the basic raw material, be it the country’s natural beauty, climate, history, culture and the
people, or other facilities necessary for comfortable living such as water supply, electricity, roads,
transport, communication and other essentials.
The tourist product can be entirely a man-made one or nature’s creation improved upon by man. A
consumer can combine individual products in a large number of ways. There would be many possible
destinations, each with a number of hotels, each to be reached by more than one airline. Thus, the
potential choice facing the consumer is very large. The large number of tourist destinations have placed
at the disposal of a tourist a very large variety of tourist products in abundant quantity from a large
number of competing destinations. This eventually, has led to the adoption of the new concept i.e., the
marketing concept in tourism by various countries promoting tourism.
Tourism, basically, is an infrastructure based service product. The nature of the service here is highly
intangible and perishable offering a limited scope for creating and maintaining the distinctive
competitive edge. The effective marketing of tourism needs constant gearing up of infrastructure to
international standards and presupposes in its coordination with the tourism suppliers. In strategic terms,
it calls for the action of an integrated approach to management and marketing. In operational terms, it
means the implementation of a better defined, better targeted market-driven strategy for realizing the
defined objectives.
The important point to note here is that marketing is applied to situations where the choice can be
limited to a relatively small number of brands giving the consumer a reasonable choice. The process of
selection thus becomes easier. In the field of tourism this process is taking place by the increased use of
‘package tours’. A package tour is a travel plan which includes most elements of vacation, such as

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transportation, accommodation, sight- seeing and entertainment. The tourist product is a composite
product, whether it is sold as a package or assembled by the individual himself or his travel agent.
There are many tourism products that are available to the consumer today. In modern times these
products, whether traditional in nature like culture and pilgrimage, or modern like adventure,
conventions and conferences, health, medical, etc. are being packaged, promoted and priced
appropriately to woo as many tourists as possible. Tourism products can be classified as under for a
better understanding of each of their peculiar characteristics, so that they can be marketed and positioned
appropriately:

2.4.1 NATURAL TOURISM PRODUCTS

These include natural resources such as areas, climate and its setting, landscape and natural
environment. Natural resources are frequently the key elements in a destination’s attraction. Let us look
at some examples:
1) Countryside
2) Climate- temperature, rains, snowfall, days of sunshine
3) Natural Beauty- landforms, hills, rocks, gorges, terrain
4) Water- lakes, ponds, rivers, waterfalls, springs
5) Flora and Fauna
6) Wildlife
7) Beaches
8) Islands
9) Spas
10) Scenic Attractions
The climate of a tourist destination is often an important attraction. Good weather plays an important
role in making a holiday. Millions of tourists from countries with extreme climates visit beaches in
search of fine weather and sunshine. The sunshine and clear sea breeze at the beaches have attracted
many people for a very long time. In fact, development of spas and resorts along the sea coasts in many
countries were a result of the travelers. urge to enjoy good weather and sunshine. In Europe, countries
like France, Italy,Spain and Greece have developed beautiful beach resorts. North Europeans visit the
Mediterranean coast searching for older resorts like Monte Carlo,Nice and Cannes on the Riviera and
new resorts in Spain and Italy. Beautiful beaches of India, Sri Lanka, and Thailand, Indonesia and
Australia and some other new destinations are more examples of how good weather can attract tourists.
All these areas capitalise on good weather.Destinations with attractive winter climates, winter warmth
and sunshine are also important centres of tourist attraction. Many areas have become important winter
holiday resorts attracting a large number of tourists.Around these winter resorts, winter sport facilities
have been installed to cater to the increasing needs of tourists. People from warm climates travel
especially to see snowfall and enjoy the cold climate.In countries with tropical climates, many upland
cool areas have been developed as ‘hill stations’. Hence climate is of great significance as a tourism
product.
The scenery and natural beauty of places has always attracted tourists. Tourists enjoy nature in all its
various forms. There are land forms like mountains, canyons, coral reefs, cliffs, etc. One of the great all
time favourite tourist destination is the Grand Canyon, Arizona. Mountain ranges like the Himalayas,
Kilimanjaro, and Swiss Alps, etc. There are water forms like rivers, lakes waterfalls, geysers, glaciers,
etc. The Niagara Falls shared by Canada and the United States is an example of how scenic waterfalls
attract tourists. Lake Tahoe in California and the, deserts of Egypt are other examples of great tourist
products. Other great natural wonders that attract tourists are the Giants Causeway of Northern Ireland,
the Geysers of Iceland, the glaciers of the Alps, the forests of Africa etc. Vegetation like forests,
grasslands, moors deserts, etc. has all been developed as tourist products.

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Flora and Fauna attract many a tourist. Tourists like to know the various types of plants and trees that
they see and which trees are seen in which seasons. There are many plants which are specific to certain
regions and many times students and travellers visit those areas especially to see those
varieties of plants. Thick forest covers, attract tourists who enjoy trekking and hunting activities. Fauna
attracts tourists who like to watch birds, wild mammals, reptiles and other exotic and rare animals.
Countries in South East Asia have crocodile gardens, bird sanctuaries, and other tourist products that
display the fauna of their region.
Spas are gaining popularity as modern tourism products all over the world. While most parts of the
world have their own therapies and treatments that are effective in restoring the wellness and beauty of
people. New kinds of health tours that are gaining popularity are spa tours. Spas offer the unique
advantages of taking the best from the West and the East, combining them with the indigenous system
and offering best of the two worlds. For example Swedish massages work well with the Javanese
Mandy, lulur, aromatherapy,reflexology and traditional ayurvedic procedures. Now various spa products
are being combined with yoga, meditation, and pranayama, giving a holistic experience to tourists. Spa
treatments are now combined with other medical treatments to treat blood pressure, insomnia,
depression, paralysis and some other diseases. People are now travelling to spas and clinics for curative
baths and medical treatment. In some countries like Italy, Austria and Germany, great importance is
given to spa treatments. In Russia along the Black Seacoast and in the foothills of the Caucasus
Mountains, there are many worldfamous sanatoria where millions of Russians and international tourists
throng every year.

Beach tourism is very popular among the tourists today. Tourists of allage groups, backgrounds, cultures
and countries enjoy this tourism product. Besides attraction and salability, beach holidaying has lead to
overall development of tourism in many parts of the world. The basic importance of beaches is that they
provide aesthetic and environmental value of the beachsuch as beautiful natural scenery with golden
sands, lush green vegetation and bright blue sky. The water rocks. Beach tourism activities include water
and land resource use. The
water usage involves swimming, surfing, sailing, wind surfing, waterscootering, Para- sailing, motorboat
rides, etc. The land use has multifacetslike sunbathing, recreational areas for tourists (parks,
playgrounds, clubs,theatre, amusement parks, casinos, cultural museums, etc.), accommodation facilities
(hotels, cottages, villas, camping sites, etc.), car and bus parking areas, entertainment and shopping
complexes, access roads and transportation network. Due to its multidimensional requirements the beach
product needs special care. A beach resort needs to be developed as an integrated complex to function as
a self-contained community. Environmental management should also ensure the availability of necessary
infrastructure in the immediate hinterland to the coastal region in support of the development on the
coast to maintain its ecosystem. Islands abound with natural beauty, with the rare flora and fauna and
tribes. This makes islands an ideal place for adventure, nature and culture lovers to visit. This tourist
product has great scope as these islands are being developed as tourist paradises. For example, Hawaii,
Maldives, Mauritius,Tahiti, Andaman and Nicobar Islands, etc. has developed with tourism activity over
the past few decades. The topography is generally undulating and they offer natural scenic beauty with
exotic flora and fauna. Most of these islands have places of worship like churches, temples, etc. As an
added attraction some of these islands have developed as tax havens thereby encouraging commercial
development of these economies. They offer social and cultural attractions as tourists can experience the
local lifestyle, local food, fairs and festivals, etc.
Scenic attractions, like good weather, are very important factors in the development of tourism. Breath-
taking mountain scenery and the coastal stretches exert a strong fascination on the tourist the
magnificent mountain ranges provide an atmosphere of peace and tranquility. Tourists visiting the
northern slopes of the Alps in Switzerland and Austria and the southern slopes
in Italy and also the Himalayan slopes of India and Nepal for the first time, cannot but be charmed by
their physical magnificence.

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2 MAN- MADE TOURISM PRODUCTS
Man- made tourism products are created by man for pleasure, leisure or business. Man- made tourism
products include:
a) Culture
 Sites and areas of archaeological interest
 Historical buildings and monuments
 Places of historical significance
 Museums and art galleries
 Political and educational institutions
 Religious institutions
Cultural tourism is based on the mosaic of places, traditions, art forms, celebrations and experiences that
portray the nation and its people, reflecting the diversity and character of a country. Garrison Keillor, in
an address to the1995 White House Conference on Travel & Tourism, best described cultural tourism by
saying, "We need to think about cultural tourism because really there is no other kind of tourism. It's
what tourism is...People don't come to America for our airports, people don't come to America for our
hotels, or the recreation facilities....They come for our culture: high culture, low culture, middle culture,
right, left, real or imagined -- they come here to see America.Two significant travel trends will dominate
the tourism market in the next decade.
 Mass marketing is giving way to one-to-one marketing with travel being tailored to the interests
of the individual consumer.
 A growing number of visitors are becoming special interest travelers who rank the arts, heritage
and/or other cultural activities as one of the top five reasons for travelling.
The combination of these two trends is being fuelled by technology, through the proliferation of online
services and tools, making it easier for the traveler to choose destinations and customize their itineraries
based on their interests.
Today we can witness large masses of people travelling to foreign countries to become acquainted with
the usages and customs, to visit the museums and to admire works of art.
One way of hastening the beneficial effects resulting from tourism is to bring the cultural heritage into
the economic circuit, thus justifying the investments made at the cost of the national community, for its
preservation.Taking an economic view of the cultural heritage of a nation may not altogether be
justified, considering that the preservation of its culture is one of the basic responsibilities of any
community. But considering the financial obstacles especially for the developing countries, this may
appear to be a rational approach. Hence mass tourism can contribute unique benefits to the exploiting of
the cultural heritage of a nation and can serve indirectly to improve the individual cultural levels of both
citizens and travellers. Cultural resources have another specific characteristic, which many tourists want
to experience the exotic. There will be a great urge on the part of the tourist to visit and become
acquainted with the ancient civilization in their quest for novel human knowledge. Culture means the
prospect of contact with other civilizations, their original and varied customs and tradition with their
distinct characteristics. This entire process creates a powerful motivator towards travel.
Various Museums also attract tourists like Madame Tussauds Museum in London, the Louvre Museum
in Paris, Smithsonian Washington Museum,Museums of famous painters like Salvador Dali, Pablo
Picasso, Natural History Museum, British Museum, Museum of Modern Art are also popular tourist
products. Sites of archeological interest like remains of Mohenjodaro and Harrapan civilizations,
museums for fossils and dinosaurs. Sites for historical interest like city of Hiroshima and Nagasaki, sites
of holocaust in Germany, tombs of various leaders and emperors. Historical buildings like Warwick
Castle, Tower of London, Stratford-on-Avon which is Shakespeare’s birthplace, the Roman Baths are all
popular with tourists. Even historical cities like Varanasi in India get a lot of tourists due to its status as
one of the oldest cities of the world. Stonehenge in United Kingdom, The White House, Buckingham
Palace and other places of political significance, are also great tourist draws.

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b) Traditions
 Pilgrimages
 Fairs and festivals
 Arts and handicrafts
 Dance
 Music
 Folklore
 Native life and customs
A pilgrimage is a term primarily used for a journey or a search of great moral significance. Sometimes, it
is a journey to a sacred place or shrine of importance to a person's beliefs and faith. Members of every
religion participate in pilgrimages. A person who makes such a journey is called a pilgrim. Secular and
civic pilgrimages are also practiced, without regard for religion but rather of importance to a particular
society. For example, many people throughout the world travel to the City of Washington in the United
States for a pilgrimage to see the Declaration of Independence and the Constitution of the United States.
British people often make pilgrimages to London to witness the public appearances of the monarch of
the United Kingdom. A large number of people have been making pilgrimages to sacred religious places
or holy places. This practice is widespread in many parts of the world. In the Christian world, for
instance, a visit to Jerusalem or the Vatican is considered auspicious. Among Muslims, a pilgrimage to
Mecca is considered a great act of faith. In India there are many pilgrimage centres and holy places
belonging to all major religions of the world.
India is among the richest countries in the world as far as the field of art and craft is concerned. Tourists
like to visit and see the creative and artistic treasures of various countries. Every country has certain
traditional arts like soap sculptures and batik of Thailand; gems and jewellery, tie and dye works, wood
and marble carving in Indonesia; ivory, glasswork, hand block inting,sandalwood, inlay work; are some
of the examples of traditional art that attract tourists.
There are many forms of dance in the world like Salsa, Hip- Hop, Jazz,Flamingo, Ballet and Traditional
Dances. People who travel like to watch these dance performances and sometimes even take some
introductory classes.
Music can be either traditional or modern. Traditional music like folk music and classical and country
music is specific to every region and country.
Modern forms include Blues, Rock, Pop, Jazz, Rap, Techno and Hip- Hop.Music also adds to the
attraction of a destination.
Fairs and Festivals capture the fun loving side and bring out the joyous celebrations of the community.
Festivals like Christmas, Easter, Thanksgiving,Eid, Ramadan, Diwali, and Holi and so on, also bring
people to destinations where the celebration can be enjoyed. Some popular Fairs which cater to fun and
work are Pushkar Mela in Rajasthan, Prêt fair in Paris, Magic Fair in Vegas for garments, Hong Kong
Fashion Week and various job fairs where people are recruited.

c) Entertainment
 Amusement and recreation parks
 Sporting events
 Zoos and oceanariums
 Cinemas and theatre
 Night life
 Cuisine
Tourist products that have entertainment as their main characteristic are many. Just to name a few there
are amusement and recreational parks like Disneyworld in United States, Hong Kong, Paris, Singapore
and theme parks in various countries and cities like Appu Ghar and Fun and Food Village in Delhi, Essel
World in Mumbai and so on.

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Tourists may come to attend sports events and it is also an opportunity to explore the country. The
fundamental concept is that all tourist activities have an influence on providing economic benefits and
have a powerful influence in some definite locality, like the Olympics in Athens has given immense
benefit to all in tourism business in Athens in particular and Greece in general. Many countries organise
year round sports events like swimming meets, athletic meets, weight lifting events, cricket matches,
baseball and football events and many more such events which encourage tourism. India will be hosting
the Common-Wealth Games on 2010 and it is anticipated to give the tourism industry a big boost.
Night Life is one of the prime attractions in a holiday. Tourists like to especially visit areas in cities
where the night life activity is promoted. These areas are usually lit up with street stalls like flea markets
and food areas. Bars, night clubs, casinos and very often open air bands attract and add to the
psychological satisfaction and experience of tourists.
Cuisine is very often an understated but highly important part of any holiday. Now-a-days there is
cuisine from all areas of the world which is found at most tourist destinations. Specialty restaurants
serve Indian,
Continental, Chinese, Italian, Japanese, Thai, Indonesian, Fast food, Mexican,Mediterranean, and Arabic
and so on. However, tourists usually like to eat the local food of the areas they visit.
d) Business
 conventions
 conferences
People who travel in relation to their work come under the category of business tourism. However such
travel for business purposes is also linked
with tourist activity like visiting places of tourist attraction at the destination,sight seeing and excursion
trips. Business travel is also related to what is termed today as convention business, which is a rapidly
growing industry in hospitality and tourism.
A business traveller is important to the tourism industry as it involves the usage of all the components of
tourism. He travels because of different business reasons- attending conventions and conferences,
meetings,workshops etc. Participants have a lot of leisure time at their disposal. The conference
organisers make this leisure time very rewarding for participants by organising many activities for their
pleasure and relaxation. The spouses and families accompanying the participants are also well looked
after by the organisers. The organisers plan sight seeing tours and shopping tours for the participants and
their families. In India, cooking classes for learning Indian food cooking from the various states, visits to
the craft bazaars where tourists see how artisans make clay pots and other handicrafts, they visit tie and
dye units to see Indian printing eg. Batik printing etc. Women tourists enjoy henna demonstrations.
Conferences are events which require meticulous planning and efficient implementation, co-
coordinating various activities so that the right things happen at the right time. There are a number of
players in the convention business. On one hand are the customers or the consumers and on
the other hand are the principle suppliers like hotels, transporters, convention centres, tour operators and
travel agencies, tourism departments, exhibition organisers, sponsors etc.
2.4.3 SYMBIOTIC TOURISM PRODUCTS
Some tourism products do not fall into the above categories. Wildlife sanctuary, Marine parks, Aero
products and Water sports, Flower festivals are the example of tourism products which are a blending of
nature and man. Nature has provided the resource and man has converted them into a tourism product by
managing them. National parks for example, are left in their natural state of beauty as far as possible, but
still need to be managed, through provision of access, parking facilities, limited accommodation, litter
bins etc.
Yet the core attraction is still nature in this category of product. These products are symbiosis of nature
and man. In case of adventure sports tourists can be participants. The basic element of adventure is the
satisfaction of having complete command over one’s body, a sense of risk in the process, an awareness
of beauty and the exploration of the unknown. Adventure tourism can be classified into aerial,water
based and land based.

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Aerial adventure sports include the following activities-

A) Parachuting, which involves jumping off from an aircraft or balloon and descending by means of a
parachute. The infrastructure required,includes an aircraft, parachutes and large landing zones.
B) Sky Diving, which involves a sky diver jumping off an aircraft or balloon at a much greater height
without deploying his parachute initially and opening it after some interval at a pre determined height.
C) Hang Gliding, which involves running off a mountain or being towed by a winch and essentially
flying like a glider where the directional control is achieved by a shift in his own weight by the pilot.
D) Para Gliding, is the latest aero-sport which has taken the world by storm. A Para Glider is a
specially designed square parachute, along with a harness attached by lines.
E) Para Sailing is a simple sport that involves towing a parachutist to a height of a few hundred feet in
the air and then descending by means of a parachute. As a year round activity, Para sailing can be done
on land and water.
F) Bungee Jumping, which requires no equipment except a ‘bungee cord’ made of nylon fiber of
enough elasticity to be able to absorb the shock at the end of the jump. The jumper makes a headlong
jump into empty space and the resultant rush of adrenalin makes the experience
very exhilarating.
G) Ballooning, where a balloon is attached to a basket by steel wire ropes. By regulating hot and cold
air, the pilot can steer the balloon along any charted course.
Water based adventure sports include the following-
A) White water rafting which is one of the most important and exciting water sports, which involves
riding down water rapids in an inflatable raft which is used to negotiate fast flowing rivers.
B) Canoeing and Kayaking are adventure sports which begin upstream where the water is wild and
white. The gradient best suited for canoeing is the stage near the river’s entry into the plains where the
trip can be combined with a natural holiday in a forest. Kayaking is appealing as it enables innovation
on the river by one or two oarsman seated in tandem.
C) Adventure sports in the waters of the sea like wind surfing, scuba diving, snorkeling, yachting, water
skiing, etc. also offer thrilling activities to the tourists.
Land based adventure tourist products include the following-
A) Rock climbing which originated as a means of practicing techniques for ascending high mountains.
It was earlier provided as training to mountaineers but has now evolved into a highly developed sport.
The climber moves up, using knowledge of rope handling, climbing, securing one to another, etc. Very
sophisticated techniques and equipments are used nowadays to ascend or descend on very steep terrain.
B) Mountaineering requires trained physical ability and suitable equipment. The higher peaks need
better equipment which is also costly. The challenges which mountains like the Indian Himalayas
pose attract mountaineers from various countries.
C) Trekking the mighty Himalayas which spread across five Indian states form a sweeping arc and
compress in its expanse a wide geographical variety and contrasting cultures.
D) Skiing is the practice of sliding over snow on runners, called skis, attached to each foot. There are
three types of ski resorts, the first are large towns, second type are alpine villages and the third resorts
built for skiing.
E) Heli skiing is a type of alpine skiing where the skier is dropped to the top of a mountain by a
helicopter and then he slides down on his own.
F) Motor Rally is a sport that tests the navigational skills of man and his endurance with the machine.
Motor rallies, grand prix racing, hill climbing rallies, vintage car rallies, sports car racing, etc. are some
forms of this tourism product.
G) Safaris were earlier taken on camel, horse and elephants as an excursion for hunting or a journey. As
a modern tourist product now safaris are taken on jeeps and in the form of caravans. Viewing and
enjoying nature, meeting the local villagers, seeing their traditions, customs and lifestyle, entertainment

18
and camp fires are some of the characteristics of modern safaris. Eg, Egypt desert safaris. Horse and
elephant safaris are arranged in most of the national parks and wildlife sanctuaries.
2.4.4 EVENT BASED TOURISM PRODUCTS
Where an event is an attraction, it as an event based tourist product. Events attract tourists as spectators
and also as participants in the events, sometimes for both. The Ocktoberfest organised in Germany,
Dubai and Singapore shopping festivals, the camel polo at Jaisalmer, Kite flying in Ahmedabad attracts
tourists, both as spectators and participants. Whereas in case of the Snake Boat race of Kerala can be
enjoyed witnessing it.
Event attractions are temporary, and are often mounted in order to increase the number of tourists to a
particular destination. Some events have a short time scale, such as the Republic Day Parade, others may
last for many days, for example Khajuraho Dance Festival or even months like the Kumbh Mela. A
destination which may have little to commend it to the tourist can nevertheless succeed in drawing
tourists by mounting an event such as an unusual exhibition.
2.4.5 SITE BASED TOURISM PRODUCTS
When an attraction is a place or site then it is called a site based tourist product. Site attractions are
permanent by nature, for example Taj Mahal, The Great Wall of China, The Grand Canyon in Arizona,
Eiffel Tower, Statue of Liberty, Temples of Khajuraho, etc. A site destination can extend its season by
mounting an off season event or festival. A large number of tourists are attracted every year by the great
drawing power of Stratford on Avon in England because of its association with Shakespeare, the city of
Agra in India with its famous Taj Mahal, Pisa in Italy for its famous Leaning Tower. Some new features
have been added to the same product to keep the tourist interest alive in the products. For example now
visitors can see Taj by night, music shows have been organised with Taj as the backdrop so that there are
repeat tourists.

2.4.6 OTHER TOURISM PRODUCTS

Health Tourism
Holidaying is generally considered as an investment in health, a subject that presents opportunities of
cost- benefit analysis. The medical expertise of various countries has added a new product to the existing
tourism products.
People are travelling to various countries for treatment of various ailments and medical procedures like
Cardio care, Bone Marrow Transplant, Dialysis and Kidney transplant, Neuro surgery, Joint
Replacement Surgery, Urology, Osteoporosis, and numerous other diseases. Even cosmetic surgery,
alternative medicines like homeopathy, acupressure, ayurvedic medicines and naturopathy are also
becoming tourism products wherein travel companies are offering Yoga and Rejuvenation packages.
Tourists travel for what is illegal in one's own country, e.g. abortion, euthanasia; for instance, euthanasia
for noncitizens is provided by Dignitas in Switzerland. Tourists travel also for advanced care that is not
available in one's own country, in the case that there
are long waiting lists in one's own country or for use of free or cheap healthcare organisations.
Eco-tourism
Tourism that combines local economic development, protection of the quality of the environment and
promotion of the natural advantages and the history of an area. The combination of all or some of the
above mentioned kinds of tourism could contribute significantly to the development of tourism in any
country. The availability of tourist packages involving gastronomy, entertainment and information about
the cultural wealth of a country should be regarded as a priority issue for tourist agents, as it will reduce
the concentration of tourist activity in certain areas and will improve and enrich the tourist.
Rural Tourism
Any form of tourism that showcases the rural life, art, culture and heritage at rural locations, thereby,
benefiting the local community economically and socially as well as enabling interaction between the
tourists and the locals for amore enriching tourism experience an be termed as rural tourism. It is
multifaceted and may entail farm/agricultural tourism, cultural tourism, nature tourism, adventure

19
tourism, and eco- tourism. The stresses of urban lifestyles have lead to this counter- urbanisation
approach to tourism. There are various factors that have lead to this changing trend towards rural
tourism like increasing levels of awareness, growing interest in heritage and culture and improved
accessibility and environmental consciousness, Tourists like to visit villages to experience and live a
relaxed and healthy lifestyle.
Ethnic Tourism
Ethnic tourism is travelling for the purpose of observing the cultural expressions of lifestyles of truly
exotic people. Such tourism is exemplified by travel to Panama to study the San Blas Indians or to India
to observe the isolated hill tribes of Assam. Typical destination activities would include visits
to native homes, attending traditional ceremonies and dances, and possibly participating in religious
rituals.
Senior Citizen Tourism
A newly emerging trend in tourism, basically for senior citizens or old people who live in isolation,
especially in the west, because of daily busy schedules of their children and more importantly the
attitudes. The characteristic feature of this type of tourism is that the senior people are less demanding in
the form of facilities and services, besides leaving minimum impact on the destination community and
their main consideration is on personalised service.
Spiritual Tourism
Many people when living under conditions of stress turn to spirituality. The Eastern world is considered
to be very spiritual with many of the new age Gurus and their hermitages. This takes the form of another
tourism product, that is, spiritual tourism. Tourists visit places to attend spiritual discourses and
meditation workshops. For example, The Osho Foundation, Art of Living Foundation which have
centres all over the world, Buddhist Monasteries and Ashrams.
Golf Tourism
Golf has been enjoyed by many for a long time. Earlier it was enjoyed as a sport but in recent times it
has developed into a hot tourism product. Many tourist organizations plan promotional packages to woo
the golf tourist especially from Japan where the green fees are very high. These tourists take exclusive
golfing holidays wherein their accommodation is also arranged near the course and they return after
serious golf playing.
CHECK YOUR PROGRESS 3
1) Name some of the well known Tourist Places.
2) List out the various climates and the related tourist activities.
3) Divide the following into land, water and aerial Adventure Sports,Parachuting, Safaris,
Snorkelling, Yachting, Sky Diving, Trekking,Water Rafting, Hand Gliding, Skiing, Bungee
Jumping.
SELF ASSESSMENT QUESTIONS
1) Describe the various characteristics of a tourism product.
2) With the help of examples distinguish between Natural and Man-Made Tourist Products.
3) Write a short note on Cultural Tourism.
4) Briefly discuss the inter relationship between all the various forms of tourism products.
5) Identify some tourist products that are Event based and Site Based.
6) Identify which keywords do not belong to this lesson.
Keywords: Mountains, Earthquake, Dance Festival, Guide, Olympic-Games, Advertising,
Cosmetic Surgery, Scuba Diving, Tickets.

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LESSON 3
TOURISM AND ECONOMY
TOURISM: AN INDUSTRY
Tourism industry is the one that deals with the tourists as consumers, the money spent by them, and the
resources rendering various goods and services which facilitate the composition of the tourism product.
This industry has-been named as a ‘smokeless industry’ because unlike other industries it is invisible and
non-polluting. The tourism industry is an extraordinarily complex integration of many industries spread
over many sectors. Tourism is an umbrella industry containing a set of inter-related business
participants. For example, industries like Transport (Air, water and surface), Accommodation (Hotels,
Motels, and Supplementary Accommodations), and Travel Companies, (Tour Operators/ Travel Agents),
Recreation and Entertainment Institutions, Handicrafts business, etc and the provision of the many
goods and services demanded by tourists. Interestingly, most of the component industries also get related
to varied commercial and non-commercial activities over and above providing their services to the
tourists. A simplistic structure of the tourism industry can be suggested by way of a framework as in the
following illustration.

Source: .Kamra, K.K:M.Chand, 2006.Basics Of Tourism-Theory, Operation And Practice,Kanishka

Publishers

Over the years, there has been a growing awareness of tourism as a human activity, an industry, and a
catalyst for economic growth and development. Like any other industry the tourism industry draws

21
resources from the economy, adds value and produces marketable products. The only difference here is
that no tangible product is produced like in the case of a manufacturing industry. The product in this
case, as we have already discussed in the previous lesson, is intangible and joint or composite in nature.
The tourism industry impacts various auxiliary (specific) and ancillary (general)industries as well.
Tourism today is undergoing a rapid transformation towards a new industry having far-reaching
implications for organizations in the travel and tourism industry in particular, and consequences of
import for developing and developed countries in general, growing increasingly dependent on the tourist
dollar.
The forces driving the change in this industry are many. In olden times people travelled mainly for
commercial and religious reasons and leisure travel was for the rich. Today people travel for a variety of
motivations, including business, leisure, religion, culture, visiting friends and relatives,education and
health. The means of transportation have become varied and faster and as the transport becomes faster,
new travellers emerge and people travel greater distances. Another important force driving the growth
within the industry is the growth and expansion of the middle class and an increase in their disposable
income.
The travel industry is complex in nature and challenging to manage.This is for three main reasons- their
process type, cost structure and market features. In terms of process, most operations are a combination
of customer processing operations, material processing operations and information processing
operations. There is a mix of cost structures based around provision of service, food, accommodation,
sightseeing, airfare etc. Forecasting and packaging are some key market features.
Originally segmentation in the industry was based on social class however, currently many factors
influence segmentation in the industry. Now there are products that are specially marketed to specific
groups of people or market segments based on lifestyle. Due to segmentation more choice is created for
consumers and branding has emerged, major companies are developing brands that are easily
recognizable, for example, Thomas Cook holidays, Star Cruises, etc.
Tourists are now a sophisticated lot. They are demanding and constantly looking for new variations in
the products and newer destinations. In addition, there is growing environmental awareness and
travellers are increasingly prepared to shun over-commercialized and polluted destinations for newer
and less popular ones. Parallel to all these changes in the marketplace, there is deregulation of the airline
industry, an explosion of technology both for automated reservations and for travel management, and an
increasing trend towards concentration of the industry reflected by the large numbers of mergers,
takeovers and acquisition of the industry from ‘old’ to ‘new’ tourism.

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Source: .Kamra, K.K:M.Chand, 2006.Basics Of Tourism-Theory, Operation And Practice,Kanishka
Publishers

New tourism is a transition from the existing to the tourism of the future typified by
 Flexible tourist products
 Segmentation
 Enhanced tourism experiences
 Thrust towards diagonally integrated organizations and
 Management of the tourist industry
There are clear and apparent manifestations that the tourist industry is beginning to take on newer
dimensions. The emerging new practice is the creation of a number of factors including the system of
new information technologies in the tourism industry, deregulation of the airline industry,
environmental pressures; technology compensation; changing consumer tastes, leisure time, work
patterns and income distribution.
The economics of new tourism is quite different from the old. From system gains, segmented markets,
designed and customized holidays the focus now is also on, profitability and competitiveness in tourism.
The new tourists show greater care and have a concern for conservation of the natural
environment. There has been a shift towards eco tourism, green tourism, rural tourism, farm
tourism, sustainable tourism, etc. with perpetual opportunities of
benefit from this new tourism.
Competitive Strategies for success have to be employed today for survival. There are new techniques
and trends to be followed by the industry players. To gain competitive advantage, the players and
participants of the industry will have to
 be customer friendly,
 be quality conscious,
 innovate new and better products,
 make meaningful value additions.
And for tourist destinations to be competitive, certain key principles need to be incorporated into the
policy framework. Some of these are
 be environmentally sensitive,
 make tourism a leading sector,

23
  strengthen the distribution channels in the market place,
 encourage private sector participation.
Today tourism is sensitive to the environment as well as inhabitants of the region or area, tourism is
sustainable, and tourism is capable of transforming tourism-dependent and vulnerable areas’
economies into viable entities. Tourism is in a stage of revolutionary change and a new kind of tourism
is emerging fast. New tourism promises flexibility, segmentation and diagonal
integration. It is driven by information technologies and changing consumer requirements. Today this
industry can produce an entire system of value addition and wealth generation. The objective today is
‘tourism should be planned in a manner that it benefits the community as a whole, has benefits for the
locals, and optimizes the expectations of the tourists besides taking care of the environment.’
Tourism is a growth industry
In the 21st century the global economy will be driven by three major service industries – Technology,
Telecommunications and Tourism. Travel and tourism will be one of the world’s highest growth sectors
in the current century. Tourism, according to experts is expected to capture the global market and
become the largest industry in the world. The statistics and projections point to an era of unprecedented
growth of tourism around the world. From 70 million international tourist arrivals in the year 1960 the
WTO has estimated that international tourism arrivals worldwide would be 1.5 billion by the year 2020.
According to the latest report from the World Travel and Tourism Council (WTTC) “in the year 1999
Travel and Tourism generated about 3.5trillion US dollars of GDP and almost 200 million jobs across
the world economy: approximately. World travel and tourism GDP is forecast to increase in real terms at
3% per annum in the decade 2000-2010. During the same period employment in travel and tourism is
expected to grow at about2.6% per annum.” World Travel and Tourism Council has summarized some of
the highlights concerning worldwide travel and tourism industry as follows:
 The Travel and Tourism Industry contributed 11.7% towards world GDP in 1999;
 Travel and Tourism has emerged strongly from the South- Asian crisis with leisure tourism rising
by 4.7% in 1999 and business travel by4.4%;
 Tourism related spending by international visitors amount to 8% of world exports in 1999 with a
further impact by export of Travel and Tourism related goods;
 Travel and Tourism related GDP is forecast to increase at 3% per annum in real terms;
 In the coming years, over 8% of all jobs worldwide will depend upon Travel and Tourism;
 Travel and Tourism will support the creation of over 5.5 million jobs per year over the next
decade.
Thus, tourism today is a shining sector and a great economic force. Its status as a major economic
activity has been recognized by almost all the nations of the world.
During the 1960s there was emphasis on tourism as an earner of foreign exchange, a catalyst of
development, and a security against the uncertain fluctuations of commodity prices. Today however, its
impact is not only economic but social and cultural as well. Cultural tourism is a fertile ground for
exercising creative talents, fostering special kinds of relations between visitor and the host populations.
It enables the tourist to form a view of his present world and a global concept of the historic past. Thus,
tourism has wider implications encompassing not only economic benefits but also social and cultural
benefits as well.
CHECK YOUR PROGRESS 1
1) List out all the participants in the tourism industry.
2) Write down five reasons which motivate people to travel today as opposed to olden times.
3) Pick out the keywords that describe the tourism industry.
Smokeless, complex, frivolous, inward- looking, growth oriented,flexible, heavy, catalyst, hazardous,
technical, isolated, customer friendly.
3.3 TOURISM AND DEVELOPMENT
Development can be viewed from various dimensions, however, for the purpose of this current lesson,
we use the following definition of economic development: Economic development is a process of

24
economic transition that involves the structural transformation of an economy and a growth of the real
output of an economy over a period of time. It is a long run concept. Structural
transformation is achieved through modernization and industrialization and is measured in terms of the
relative contribution to gross domestic product of agriculture, industry and service sectors. The potential
of tourism to contribute to development is widely recognized in the industrialized countries, with
tourism playing an increasingly important role and receiving government support. Tourism along with
some other activities like financial services and tele-communications is a major component of economic
strategies. Tourism has become a favored means of addressing the socio- economic problems facing
rural areas on one end, while enhancing development of urban areas on the other.
Tourism and National Development
Tourism emerged as a global phenomenon in the 1960s and the potential for tourism to generate
economic development was widely promoted by national governments. They appreciated that tourism
generated foreign exchange earnings, created employment and brought economic benefits to regions
with limited options for alternative economic development. National tourism authorities were created to
promote tourism and to maximize international arrivals. However, an awareness of the negative
environmental, social and some other impacts also increased. The importance of economic benefits at
the local level, environmental and social sustainability was also widely accepted. It was observed that
tourism presents excellent opportunities for developing entrepreneurship, for staff training and
progression and for the development of transferable skills. Tourism development focuses on national and
regional master planning. It also focuses on international promotion, attracting inward investment. The
primary concern has been with maximizing foreign exchange earnings. These earnings enable the
government to finance debt and also to finance some investment in technology and other imports for
economic development.
No trade barriers to tourism
Unlike many other forms of international trade, tourism does not suffer from the imposition of trade
barriers, such as quotas or tariffs. Mostly, destination countries have free and equal access to the
international tourism market. This position has become strengthened by the inclusion of tourism in
the General Agreement on Trade in Services, which became operational in January 1995.
Redistribution of wealth
Both internationally and domestically, tourism is seen as an effective means of transferring income,
wealth and investment from richer, developed countries or regions to less developed, poorer areas. This
redistribution occurs as a result of both tourist expenditures in destination areas and also of
investment by the richer, tourist generating countries in tourist facilities. Thus it appears as if, the
developed countries support the economic growth and development of less developed countries.
Tourism and Poverty Reduction
Tourism can contribute to development and the reduction of poverty in a number of ways. Economic
benefits are generally the most important element, but there can be social, environmental and cultural
benefits and costs as well. Tourism contributes to poverty reduction by providing employment and
various livelihood opportunities. This additional income helps the poor by increasing the range of
economic opportunities available to them. Tourism also contributes to poverty alleviation through direct
taxation of tourism generated income. Taxes can be used to alleviate poverty through education, health
and infrastructure development. Some tourism facilities also improve the recreational and leisure
opportunities available for the poor themselves at the local level.Tourism is not very different from other
productive sectors but it has four potential advantages for pro-poor economic growth:
- It has higher linkage with other local businesses because customers come to the destination;
- It is relatively labour intensive and employs a large proportion of women workers;
- It has high potential in poor countries and areas with few other competitive exports;
- Tourism products can be built on natural resources and culture, which might sometimes be the only
assets that people have.The contribution of tourism to the local economy is also important to note. It has

25
five kinds of positive economic impacts on livelihood, any or all of which can form part of a poverty
reduction strategy:
- wages from formal employment
- earnings from selling goods and service or casual labour
- dividends and profits arising from locally owned firms and business units
- collective income which may include profits from a community run enterprise, land rent, dividends
from joint ventures. These incomes can provide significant development capital and provide finance for
corngrinding mills, a clinic, teachers housing and school books
- infrastructure gains, for example, roads, water pipes, electricity and communications.
At this point it must also be mentioned that there are some disadvantages of tourism as well. For
example, leakages (which you will read about in the next section) and volatility of revenue. These are
also common to other economic sectors. However, tourism may involve greater trade-offs with local
livelihoods through more competition for natural resources, particularly in coastal areas.

3.4 STRATEGY FOR DEVELOPING COUNTRIES

Tourism plays a very important role in the economies of many countries. Earnings from tourism-related
activities contribute a considerable portion to their GDPs. Tourism is now being viewed as a significant
tool and an important strategy in achieving economic growth in these countries.
The WTO is convinced that tourism has considerable potential for growth in many developing countries
and Less Developed Countries (LDCs) where it isa significant economic sector and promising high
growth rate; and that it has advantages when compared with other economic sectors. This case can be
summarized as follows:
Comparative Advantages of Tourism as a Development Strategy for Developing Countries.
1. Tourism is consumed at the point of production. This results in great opportunities for individuals and
micro-enterprises, in urban or marginal rural areas, to sell additional products (e.g., handicrafts and
souvenirs) or services (e.g. guiding or music) to the potential consumers.
2. Access to international markets is a serious problem for developing countries particularly in
traditional sectors like food, agriculture and textiles where they confront tariff and non-tariff barriers.
This is not the case for the tourism sector, where barriers would involve visa restrictions and related
taxes only. The example of Cuba is instructive in this regard. Whilst Cuba has struggled to find export
markets for its sugar and tobacco, it has been much more successful in maintaining a dynamic tourism
industry.
3. Most export industries depend on financial, productive and human capital. The tourism industry not
only depends on these, but also on natural capital (e.g. wildlife, scenery and beaches) and culture
(folkdances, music, and handicrafts), which are sometimes the only assets owned by the poor.
4. Tourism has particular potential in many countries with few other competitive exports.
5. Tourism is a much more diverse industry than many others and can build upon a wide resource base.
This diversity results in wider participation of the informal sector, for example a farming household
produces and sells local handicrafts.
6. Tourism is often reported to be more labour intensive than other productive sectors. Data from six
countries with satellite tourism accounts does indicate that it is more labour intensive than non-
agricultural activities, particularly manufacturing, although less labour intensive than agriculture.
7. Tourism provides various employment opportunities especially to women as compared to some of the
other sectors. (The percentage of female employment varies enormously in each country, ranging from
over 60% in Bolivia to less than 10% in some Muslim countries).
8. In many developing countries, for example South Africa, China, Philippines and India, domestic
tourism is growing rapidly and like international tourism brings relatively wealthy consumers to areas
where they constitute an important local market. Domestic tourism can be accessed by people with
lower budgets and is often equally valuable to the economy.

26
Perceived Disadvantages of Tourism as a Development Strategy
1. Foreign private interests drive tourism and it is difficult to maximize local economic benefits due to
the high level of foreign ownership, which means that there are high levels of leakages and few local
linkages. But that might not be the case many times.
2. Many small enterprises and individual traders sustain themselves around hotels and other tourism
facilities and these small companies are not foreign owned. There is often confusion about levels of
foreign ownership as local ownership is often masked by franchise agreements and management
contracts. WTO is studying this issue in collaboration with UNCTAD as part of its poverty elimination
research.
3. Tourism can impose substantial non-economic costs on the poor. For example, loss of access to
resources (particularly beaches), displacement from agricultural land, social and cultural disruption and
exploitation.
4. Many forms of development bring with them disadvantages that need to be managed. The economic
and non-economic negative impact needs to be determined and the issues addressed. It is for this reason
that the WTO supports a holistic livelihood approach to assessing the impact of tourism-positive and
negative – on the poor. Issues like environmental management and planning at local level need to be
addressed through the good governance agenda.
5. Tourism is a vulnerable industry. It reacts immediately to factors like changes in economic conditions
in the originating markets, levels of economic activity in tourism in the destination markets. Thereby
affecting international visitor arrivals. It is also very vulnerable to civil unrest, crime, political instability
and natural disasters in destination countries.
6. It has been observed that the volatility of export markets for tourism is not significantly greater than
other commodities. Many times tourism has the advantage noted above that it is not subject to tariff or
other non-tariff barriers and that the destination has some control over civil unrest, crime and political
instability
7. Tourism requires highly sophisticated marketing. International tourism marketing is expensive,
although there are more efficient and less costly forms of marketing available today. Many government
agencies at the national level, tie ups of domestic hotels and resorts with international participants, word
of mouth publicity, target marketing are some of the methods used.
Tourism in many developing countries and many LDCs has been growing strongly in recent years and
there are strong reasons to think that these trends will continue. Many developing countries have
comparative advantages in tourism where tourism constitutes one of their better opportunities for
development. The disadvantages, which are often identified in relation to international tourism in
developing countries, are few when tourism is compared with other sectors of the economy. WTO
believes that tourism is considered alongside other industries as a development option and that where
tourism presents the best opportunity for local economic development and antipoverty strategies,
development banks, bilateral and multilateral development agencies should back it with determination.
CHECK YOUR PROGRESS 2
1) Give two examples of the natural capital of a country.
2) List some ways in which a poor family can earn money from tourist related activities.

3.5 LINKAGES AND LEAKAGES

The term leakage in used to refer to the amount spent on importing goods and services to meet the needs
of tourists. Leakages take place across national boundaries that can have impact on the balance of
payments of the countries. It results from the economic exchange between the two countries. It also
occurs when the local economy is unable to provide reliable, continuous, supplies on the basis of
competitive prices of the required product or service and of a consistent quality to meet the market
demand. From a tourism and poverty perspective it is generally more productive to focus on the other
side of the coin-linkages. When the local economic linkages are weak, the revenue received from
tourism in the local economic area leaks out. In order to reduce such leakages, it becomes necessary to

27
deliver consistently at an appropriate quality and at competitive prices, at the same time, engaging the
local suppliers who use local capital and resources.
Leakages:
From the perspectives of local economic development and poverty reduction, we are not concerned how
much a tourist spends outside the country, but how much he is not spending in the local economy, which
means, limiting the benefit to local communities and the poor among them.
Leakages, which have negative impact on the development of local tourism, are:
 Impact skills, expatriate labour
 Imported commodities, goods and services
 Imported technology and capital goods
 Increased oil imports
 Repatriation of profits
 Advertising and marketing efforts abroad
 Transporting tourists to the destination country
However developing local sources of supply, encouraging local ownership and enhancing linkages to the
local economy can improve this. The last two of these can create more jobs and opportunities forsmall
and medium enterprises (SMEs) at the same time.
Linkages
There are many ways in which local communities can be benefitted by these propositions. The best way
is to increase the extent of linkages between formal tourism sector and the local economy. By formal
tourism sector we mean hotels, restaurants, lodges, and tour and transport agencies. To the extent
linkages to the local economy can be increased, the extent of leakages will be reduced. The increased
integration can further develop strong linkages between tourism and other economic sectors. Not only
do agriculture, fisheries, manufacturing, construction and domestic industries get integrated, the
auxiliary and ancillary industries are also strengthened. This in turn provides additional revenue and
jobs, which reduces the import content and foreign exchange leakages from the tourism industry.
Government and development agencies should create local linkages as part of their overall tourism
development strategy in the planning, construction and operational phases. There are three sets of
factors, which are important in enhancing the extent of local linkages:
 The creation of employment at all skill levels and particularly where there is existing capacity.
 The Anti-poverty tourism development strategies have suggested ‘new attractions’. The tour
operators at the ground level should integrate these. The critical areas include creating mutually
beneficial business linkages between the formal and informal sectors. Small and emerging
entrepreneurs are often neglected. Local government should ensure that microenterprises and
emerging entrepreneurs are promoted while taking local tourism marketing initiatives. Visitor
attractions, parks, cultural sites and hotels should be encouraged to provide information about
local products and services provided by the poor.
 There is need to understand tourist expectations thoroughly.
Also, small enterprises to meet the credit needs and marketing needs are also required. Small enterprises
sometimes face difficulties in meeting the requirements of health and safety, licensing and other
regulatory requirements. There is a need to systematically educate and train the poor in such a way that
they are able to integrate themselves with the growing requirements relating to regulations.
The local market should be geared up to deliver qualitatively reliable and competitive goods and
services to tourists. The local business community should be actively involved in the process through
partnership approaches. This requires continuous efforts, which is possible through long-term
partnership to benefit from linkages. Once planning commission concessions are being granted, private
sector companies can be asked to make the development of such linkages part of their bid.
Tourism can help in diversifying other sectors of the local economy and can create new ones, offering
additional community livelihood opportunities. Local economic benefits and ownership are

28
likely to be greater, if local communities participate in diversified business activities. Now with the
growing awareness governments are adopting policies, to encourage and facilitate participation by the
local communities. The participation by the poor in the development of tourism projects may result in
increasing employment and growth of complementary products.
These benefits can further be maximized through partnership sat the destination level. There is a
tremendous possibility of bringing about sustainable development for the local economy if Hotels
and tour operators work together with local communities, local government and NGOs. This can
help in reducing poverty and can provide a richer experience to domestic and international
tourists. Such partnerships will benefit both the host communities and the tourism industry. This
will also help them earn more tourism dollars, euro’s or pounds without any leakages. This can further
be utilized for community development. Through affirmative policies, enterprises can on tribute
significantly to economic development, in both their constructional and operational phases.

Some practical strategies for developing local economic linkages are discussed below:

1. Market Access and Enclave Tourism

There is practically no link between local people and tourism market. Tourists are not accessible to the
local community when they are within their hotels, coaches, and safari vehicles or inside sites and
attractions such as museums. These are all enclave forms of tourism. The local community people who
wish to sell their products to tourists don’t have access to them. They end up hawking and touting at
entry points. The problem is still more difficult in case of Cruise ship passengers and tourist on "all
inclusive" hotel or resort packages where local entrepreneurs hardly interact with them. Access to the
market plays major role in involving entrepreneurs in the tourism industry. This is particularly true in the
case of the informal sector; where the return on local skills and services is often maximized and where
the scale of capital investments is low. There is a need to keep this aspect in mind at the time of tourism
planning, as access to tourists for the informal sector is often neglected.
Some tourists prefer all-inclusive packages, as they do not always feel safe in a new destination and are
happier in a protected environment. They feel protected from the poverty and hassle from
beggars, touts and hawkers in some destinations. But there is a way to solve this problem. This requires
partnership approach between Hotel and informal traders. This allows informal traders to provide such
an environment where tourists feel secure in moving beyond the enclave and to approach “hassle-free”
crafts markets. Local guides can also help in establishing contact between tourists and traders by rotation
for which they may have agreement among themselves. This also requires observing certain code of
conduct by the local traders and guide.
There should be a design to link the informal sector with formal sector so that poor members of
community can be helped and tourist market becomes accessible to them. This can help them gain the
economic benefit from it.There are a number of strategies that can be used to enhance overall economic
benefits and can further reduce poverty.
2. Growth and Selection: Attracting more of the most appropriate market Segments
It has been observed that the tourism sector in the poorest countries is generally highly dependent on
international markets, as they do not have significant domestic markets. However, it has also
been noted earlier that a significant number of developing countries have strong domestic tourism
sectors as well as significant outbound tourists. It becomes imperative that the domestic market should
always be considered first by the poorest countries, but in order to maximize foreign exchange revenues,
the primary focus continues to be on international arrivals. There is a challenge to attract larger numbers
of those international and domestic tourists who are most likely to benefit the poor, those predisposed to
visit local markets and to seek first hand experiences of nature, culture and daily life which are most
likely to be provided by poor people. It is worth mentioning the importance of intra-regional tourism in

29
this regard; WTO reported intra-regional tourism as growing in most regions of the world. It is
significant that 40% of Africa’s tourism comes from neighboring African countries. This opportunity can
be grabbed by opening up the roads and improving the modes of transport between countries in Africa,
which would greatly enhance the movement of people and contribute in reducing poverty. Intra-regional
tourism is especially valuable for pro-poor tourism and local economic development. This is because of
the fact that there is greater likelihood of shared cultural values and familiarity with social systems
between the people of neighboring countries.
There is no doubt that there is a case for attracting more visitors in order to increase the economic
impact. At the same time we must understand that this strategy will only assist in poverty reduction if
the additional tourists can be encouraged to spend in ways that benefit the poor and if it results in overall
sustainability. The World Bank’s World Development Report recognized that economic growth does not
necessarily result in swift poverty reduction. This requires an explicitly pro-poor strategy. This means
that there should be constant growth, which favours poor in a disproportionate way. Some of the key
components of broad-based growth which assist in benefiting the poor include:
 Government commitment and responsiveness to the needs of the poor
 The expansion of employment opportunities for the poor
 Improved productivity for the poor,
 Improved access for the poor to credit, knowledge and infrastructure,
 Investment in the human capital of the poor (particularly education and health).
3. Increasing tourists’ length of stay:
The economic returns can be increased with the same number of tourist arrivals if efforts can be made to
extend their stay for a longer period. This results in the development of the product by
increasing the numbers of bed nights and the expenditure of tourists on boarding and lodging. There will
be a poverty reduction impact, if the additional bed nights can create extra employment or create greater
opportunities for the poor to sell goods and services to the tourists or to the tourism industry.
4. Increasing visitor expenditure:
Now-a-days there is a market trend towards more experiential holidays. Tourists want to learn more
about the countries they are visiting: the people, their cultures, traditions, cuisine, etc. It is much more
than mere holidaymaking. The trend is towards more active holidays, greater personal involvement and
active participation instead of passive relaxation. This again has potential for the diversification and
enrichment of the tourism product. There is scope to develop more activities and attractions, with
increased demand for interpreters and services of guides and transport necessary for their enjoyment.
This increases both expenditure and length of stay. Making more extensive
use of natural and cultural heritage, at the same time carefully managing the tourism impacts so as to
ensue the conservation of resources, can make an important contribution both to economic
development and conservation. This leads to growth in “Special interest tourists” who tend to spend
more money on and during their holidays and to stay longer, whether those interests are based on
natural, archaeological, historical or cultural heritage, or based on adventure and physical challenge.
5. Developing Complementary Products:
Providing a greater variety and richness of attractions and activities at destination can increase tourists’
expenditure. This will increase the propensity of travelers to visit various attractions at the destination
and may extend their length of stay and increase their expenditure. This translates into creating more
promising opportunities for the development of complementary products that enable the poor to engage
in the industry and to profit from it. The growth in established industry results in stimulating interest in
the development of complementary products: tourism services (like guided walks and the performing
arts) and goods (particularly crafts and other local specialties). This complements the core tourism
facilities of transport, excursions and accommodation. The list of complementary effects goes on
increasing. These complementary tourism products often provide experiences that are not provided by
the tour operators but which enrich their product. Hoteliers and tour operators can encourage local
people to develop tourism products and services and to support them in doing so with training and

30
marketing. This will increase the attractiveness of the destination and increase tourist expenditure in the
local economy and will also develop the complementary products. Local communities can often engage
in the provision of complementary products because it requires less capital investment and is therefore
less risky. Tourism is often best considered as an additional diversification option for the poor, rather
than a substitute for their core means of livelihood. As an additional source of income (or other benefits)
it can play an important part in improving living standards and raising people above the poverty
threshold. The poor can maximize their returns by choosing forms of participation, which complement
their existing livelihood strategies. It also helps them earn from their cultural and social assets. Tourists
are interested in the “everyday lives” of local communities and there are a host of small enterprise
opportunities for local people. Local guides and cycle rickshaw driver/guides in India’s Keoladeo
National Park, and guides and charter-boat operators in Indonesia’s Komodo National Park are
examples of local people diversifying their livelihood strategies. The boat operators also earn their living
from fishing and many of the cycle-rickshaw drivers work in town when the tourist season is low.

6. Spreading the benefits of tourism geographically:

Tourism destinations are geographically diverse in nature. There are different geographical sites like
beaches, mountains and urban attractions and holidaymakers can be encouraged to travel further, beyond
established destinations, which can enhance and diversify their experience of particular environmental,
cultural or natural heritage attractions. Heritage Trails and other similar products have been developed to
extend length of stay and to spread the advantages of tourism development to new areas and
communities. They can be used as initiatives, which may benefit the poor.
National Parks, cultural sites and World heritage sites are often the major attractions, the primary
“tourism magnets” in significant parts of the developing world and they often attract people to marginal
rural areas. It can be argued that natural and cultural heritage sites as the major attractions should be
taking a wider view of their potential to contribute to tourism development and the well-being of local
communities. These areas otherwise are of no interest to tourists. Changing the way in which tourism is
organized in and around attractions can increase the economic development impact. For example, at
Kamodo National Park in Indonesia, non-local carriers and package tour operators take away a big slice
of tourism trip expenditure, i.e., about 85%, which could have otherwise gone to local economy.
Estimates for average local expenditure at Komodo per visitor demonstrate the importance of
minimizing enclave tourism.Cruise ship tourists spent on average US $0, 03 in the local
economy,package tourists spent US $52.5 and independent travelers US $97.4.The Parks and other
major tourism attractions in rural areas can be developed to assist the development of small-scale,
locally owned attractions and tourism services.
Nature-based tourism and cultural heritage tourism in rural areas can provide significant local markets
and economic development opportunities. It contributes to integrated rural development and offers local
employment and supplementary income-generating opportunities for poor people. The development of
tourism in such areas can significantly improve incomes for local communities and the poor. For this
these flagship attractions can be planned and managed so as to maximize the opportunities for local
economic development and poverty reduction.
7. Infrastructure and Planning Gain:
The development of infrastructure and tourism development are interrelated. Tourism can contribute to
overall socio-economic development through the provision of roads, telephones, and electricity, piped
and treated water supplies, waste disposal and recycling and sewage treatment. Roads developed for
tourism provide opportunities for trade and new roads opened to improve trade also bring tourism
opportunities if they open access to tourism resources. New economic corridor development projects
often create tourism development opportunities for local communities in addition to improving trade
linkages. These facilities enhance opportunities for other forms of local economic development, but
more could be done at the local and national level to maximize those benefits, particularly when new

31
projects are licensed. It is possible to maximize the planning gains through appropriate policies by
government and tourism planners. The right policy in the right direction will encourage local economic
development and benefit the poor.
8. Local management of tourism & partnerships:
Local communities and the poor amongst them are more likely to benefit from planning gain where they
are involved in discussions and decisions about tourism developments. Benefits can be maximized
where the complementarities between different forms of tourism development and their livelihood
strategies are given due consideration.
Appropriate planning structures can facilitate effective community participation in the tourism
development process and provide a mechanism for capturing planning gain through infrastructure,
employment and economic linkages. A planning process should define carrying capacity and set limits
of acceptable change. This will influence local communities’ active participation in tourism
development and help in achieving anti-poverty goals. It is through participation by these local
community people whose traditional and local knowledge can be utilized for empowering them. This
will also help in maintaining the environmental, social and cultural integrity of destinations.
9. Small and Medium enterprises (SMEs) development:
The increased interest in local tourism experience results in increased opportunities for the development
of new locally owned enterprises. This helps in providing competitive and complementary goods and
services. This trend is found in developed country destinations. This can be supported by government
policy and SME development strategies. The tourism industry offers viable opportunities for the
development of a wide range of SME’s. Even in the developed countries they contribute to the largest
part of local tourism supply. In Europe small and medium-sized firms meet 70% of tourist
accommodation demand. Some estimates for the developing world put the comparable figure as high as
85%In well-established developing country destinations, like Goa,increasing numbers of international
tourists are staying in locally owned accommodation. SME’s are very important in the provision of
restaurants and bars, handicrafts, the supply of furnishings and other consumables to hotels, the
provision of transport, local tour operating,guiding and attractions. All this requires access to capital
resources and training in business management for SME’s. This requirement is critical in the field of
marketing. Providing information, advice and mentoring to small and micro enterprises and emerging
entrepreneurs can make a significant contribution to their success.
10. Reducing seasonality:
Seasonality in tourist arrivals is the major cause of seasonal and casual unemployment. There are a
number of strategies that can be employed to extend the tourism season. During festivals arranging
melas generates curiosity and helps the development of special interest products. Other strategies
include developing places for seminars and conventions, and such pricing policies, which specially
address senior citizens who have more flexibility to travel in the low season. These strategies have an
overall impact on the local economy. Strategies that reduce seasonality and successfully attract tourists
in significant numbers for a larger part of the year, benefit the hotels and tour operators, their employees
and those in the destination who earn all or part of their livelihood by direct or indirect sales to tourists
or the tourism industry. Those who benefit from this are most often poor.

Employment Linkages
The employment impact of tourism is felt by both direct employment in tourism enterprises and indirect
employment in those enterprises and micro-enterprises that supply raw material, goods and services to
the tourism industry. The demand of direct employment in tourism is dependent upon the scale and level
of tourism development and the extent of tourists’ engagement in the local economy and with SME’s.
This helps in maximizing the employment of locals and nationals in tourism, including managerial
grades. Income is also held within the local and national economies and reduces wage and salary
leakages. When wages and salaries are remitted or spent outside thelocal boundaries, it amounts to
leakages from the local economy. However, the success of the tourism enterprise will depend upon the

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delivery of the appropriate level of service, and in this global industry maintaining high levels of
training is an important consideration in the economic sustainability of businesses. One of the ways in
which the industry can contribute to poverty reduction is by committing to recruit more local poor
people and imparting appropriate training and staff development programmes with the belief that those
commitments can be met.
Tourism can contribute to poverty alleviation through the creation of employment. Certain changes in
existing employment practices can bring desirable developments. Pro-poor employment
strategies can be pursued, for example prioritizing the employment of women and youth. Tourism is a
relatively lab our intensive industry providing direct employment in hotels and tour companies, and
indirect employment in taxis, bars, restaurants and other indirect service suppliers, where a proportion of
employee time serves the tourism industry and tourists. Tourism can create jobs, which benefit the poor
where specific measures are taken to recruit and train workers from amongst the poor. Where tourism
enterprises make these efforts, proper estimates should be made; records should be maintained of its
effects on employment to determine to what extent local people, and particularly the poor, benefit and to
ensure that their efforts are acknowledged. Beyond the hotels, particular efforts should be made to train
and employ local guides, artists, performers and craft workers who are able to interpret their heritage
and in the process empower youth and women who have considerable control over it. Entrepreneurship
development programmes for tourism SME’s do complement these efforts. These programmes typically
include developing business opportunity awareness, business planning including project feasibility
analysis and training in management skills. Provision of businessadvisors and mentoring services may
be strengthened for emergingentrepreneurs over several years. Many countries already have small
business development and credit programmes and tourism SME development can sometimes be attached
to these existing programmes. Moving Beyond “Trickledown” Effect It has long been established that
tourism development projects,if successful, would attract foreign investment, contribute foreign
exchange earnings to the national accounts and generate economic development. Through the process of
trickledown, the magnitude of benefits would be amplified. Local communities would benefitthrough
employment and local economic development generated by the additional spending and the new
entrepreneurial opportunities which this would create. It must be understood that tourism operations
need to be profitable in a competitive world market if they are to survive. There are a number of things,
which can benefit the local economy in tourist destinations. The benefits can arise in the following ways:
 Facilitating local community access to the tourism market 2.Maximizing the linkages into the
local economy and minimizing leakages Building and complementing existing livelihood
strategies through employment and small enterprise development
 Evaluating tourism projects for their contribution to local economic development not just for
their national revenue generation and the increase in international arrivals
 Ensuring the maintenance of natural and cultural assets
 Controlling negative social impacts
CHECK YOUR PROGRESS 3
1) Identify whether the following are linkages or a leakages:
importing commodities, participation by local communities, creation of employment, remittances,
oil imports, growing hotel industry, increased craft production.
2) List some complementary tourism products e.g. Nature walks

3.7 GLOSSARY
Here are some related words Micro enterprises-small enterprises NGOs- Non Government Enterprises
which operate on non profit motives and primarily for developmental work.
Domestic market- the commercial market within the geographical boundaries of a country.
Remittance-when a foreign national sends money earned back to his home country.
3.8 KEYWORDS

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Umbrella industry, segmentation, auxiliary, ancillary, new tourism, growth industry, gross domestic
product, economic opportunities, poverty reduction, leakages, linkages, national development,
development strategy, community development, complementary tourism products, infrastructure, tourist
dollar, host country, regional development, human factor, declaration, technological advances.

3.9 SELF ASSESSMENT QUESTIONS

1) Discuss the characteristics of the tourism industry.
2) ‘Tourism has strong linkages’. Explain
3) Critically examine tourism as a developmental strategy.
4) Emphasize the role that tourism plays in poverty alleviation.
5) Identify which keywords do not belong to this lesson
Infrastructure, super structure, employment, music, theatre, foreign exchange,regional diversity,
export led growth, international debt, multiplier income,world war, entertainment tax, liquidity,
linkages, strategy.

LESSON 4
ECONOMIC IMPACT OF TOURISM

EARNER OF FOREIGN EXCHANGE

Tourism has major economic significance for a country. The receipts from international tourism are a
valuable source of earning for all countries, particularly, the developing. Visitor-spending generates
income for both public and private sectors, besides affecting wages and employment opportunities.
Although tourism is sensitive to the level of economic activity in the tourist-generating countries, it
provides more fixed earnings than primary products. The income from tourism has increased at a higher
rate than primary products. The income from tourism has tended to increase at a higher rate than
merchandise export in a number of countries especially in countries having a low industrial base. Now
there is practically an assured channel for financial flows from the developed countries to the developing
countries raising the latter’s export earnings and rate of economic growth. Tourism, therefore, provides a
very important source of income for a number of countries, both developed and developing. The figures
from World Tourism Organization (WTO) indicate that, among the world’s top 40 tourism earners about
18 were developing countries including India, in the year 1995. Regarding the number of visitor arrivals,
in some countries there were more visitor arrivals than the population. France with a population of 57
million received 74.5 million visitors in the year 2000. Similarly Spain with a population of 37 million
received 48.5 million visitors during the same year. Several island countries, like the Caribbean Islands,
depend greatly on tourist income resulting from visitor arrivals. These earnings form a major part of the
gross domestic product (GDP). Even developed countries like Canada which derived over 13 per cent of
its gross domestic product from international visitors in the year 1999, rely heavily on income from
tourism. Tourism forms a very important source of foreignexchange, for several countries. Although the
quantum contributed in foreigncurrency per visitor varies from destination to destination, the importance
of receipts from tourism in the balance of payment accounts and of touristactivities in the national
revenue has become considerable for a number of countries.The major economic benefit in promoting
the tourism industry is in the form of earning foreign exchange. Income from these foreign-
exchangeearnings adds to the national income and, as an invisible export, may offset a loss of the visible
trading account and be of critical importance in the overall financial reckoning. This is truer in the case
of developing countriesparticularly the small countries, which depend heavily upon primary products
such as a few basic cash crops where tourism often offers a more reliable form of income. In the case of
some European countries, namely Spain, Portugal, Tourism is therefore a very useful means of earning
the much-needed foreign currency. It is almost without a rival as an earning source for many developed
as well as developing countries. These earnings assume a great significance in the balance of payment

34
position of many countries. The balance of payments shows the relationship between a country’s total
payments to all other countries and its total receipts from them. In other words, it may be defined as a
statement of income and expenditure on international account.
Payments and receipts on international account are of three kinds:
(i) The visible balance of trade relating to the import and export of goods
(ii) Invisible items (relating to the services such as shipping and Insurance)
(iii) Capital transfers.
The receipts from foreign tourism form an ‘invisible export’, just like other invisibles which come from
transportation and shipping, banking and insurance, income on investments, etc. Because most countries
at times have serious problems with their international payments, much attention comes tobe focused on
tourism because of its potentially important contribution to, and also effect upon, the balance of
payments. The receipts from international tourism, however, are not always net. Sometimes expenditures
are involved which must be set against them. Net foreign exchange receipts from tourism are reduced
principally by the import cost of goods and services used by visitors, foreign exchange costs of capital
investment in tourist amenities and promotion and publicity expenditure abroad. According to Peters,
“Certain imports associated with tourist expenditures must be deduced… the importation of material and
equipment for constructing hotels and other amenities, and necessary supplies to run them; foreign
currency costs of imports for consumption by international tourists; remittances of interests and profits
on overseas investment in tourism enterprises, mainly hotel construction; foreign currency costs of
conducting a tourism development programme, including marketing expenditure overseas”. Reliance on
imports to meet the tourist’s needs does not, in any way deny developing countries the opportunity of
earning foreign exchange in supplying such goods and services. Imports are, to a large extent, essential
to the operation of the tourist sector as to that of other sectors. The important question is whether the
value added domestically on an item or service in is maximized? Maximization of import substitution
without due regard to the effect on overall tourism receipts (i.e., demand) may be counterproductive.
Also, differences in the pattern and level of reliance on imported goods and services, capital equipment
and manpower are very wide, depending upon the level of development of a country. In some cases, this
reliance is simply due to a lack of resources that transform into items which are to be sold by the
industry. In others, the industry has not yet drawn on such supply potential, for
which it may be an important stimulus. There is a general need for careful programmes of positive
import substitution.
CHECK YOUR PROGRESS 1
1) Which countries attract some of the highest international travellers?
2) Mention some ‘invisible exports’ which can earn foreign exchange for a country.
3) Arrange the following keywords in their order of appearance in the above section……
receipts, financial flows, value added, invisible exports, primary products,import substitution,
economic growth.
4) List out some ways in which foreign exchange can be earned by a country.

4.3 MULTIPLIER EFFECT

The discussion in earlier paragraphs clearly indicates that earnings from tourism occupy an important
place in the national income of any country. Without taking into account receipts from domestic tourism,
international tourism receipts alone contribute to a great extent. The flow of money generated by tourist
spending multiplies as it passes through various sections of the economy. In addition to an important
source of income, tourism provides a number of other economic benefits, which vary in importance
from one country to another; depending upon the nature and scale of tourism. The benefits from
infrastructure investments, justified primarily for tourism suchas airports, roads, water supply and other
public utilities, may be widely shared by the other sectors of the economy. This enables us to understand
how tourism impacts development in the economy. Tourist facilities such as hotels, restaurants,
museums, clubs, sports complexes, public transport, and national parks are also used by domestic

35
tourists and visitors, businessmen and residents, but still a significant portion of the costs are sometimes
borne by international tourists. Tourists also contribute to tax revenue both directly through sales tax and
indirectly through property, profits and income taxes. Tourism provides employment, develops
infrastructural facilities and may also help regional development. Each of these economic aspects can be
dealt with separately, but they are all closely related and are many times considered together. Let us first
look at the income aspect of tourism. Income from tourism cannot be easily measured with accuracy and
precision. This is because of the multiplier effect. The flow of money generated by tourist spending
multiplies as it passes through various sections of the economy through the operation of the multiplier
effect. The multiplier isan income concept. The Concept: The ‘multiplier’ measures the impact of extra
expenditure introduced into an economy by a person. It is, therefore, concerned with the marginal rather
than average changes.
In the case of tourism, this extra expenditure in a particular area can take the following forms:
(i) Spending on goods and services by tourists visiting the areas
(ii) Investment of external sources in tourism infrastructure or services;
(iii) Government (foreign or domestic) spending (e.g., domestic government spending on infrastructure
in a region or foreign government aid)
(iv) Exports of goods stimulated by tourism

The expenditure can be analyzed as follows: Direct Expenditure: In the case of tourism, this
expenditure is made by tourists on goods and services in hotels and other supplementary accommodation
units, restaurants, other tourist facilities like buses, taxis coaches, railways, domestic airlines, and for
tourism-generated exports, or by tourism related investment in the area. Indirect Expenditure: This
covers a sum total of inter-business transactions which result from the direct expenditure, such as
purchase of goods by hoteliers from local suppliers and purchases by local suppliers from wholesalers.
Included Expenditure: This is the increased consumer spending resulting from the additional personal
income generated by the direct expenditure, e.g., hotel workers using their wages for the purchase of
goods and services. Indirect and induced expenditure together are called secondary expenditure. There
are several different concepts of the multiplier. Most multipliers in common use incorporate the general
principle of the Keynesian model. The four types of multipliers are intrinsically linked as follows:
Sales (Transaction) Multiplier: This measures the extra business turnover created (direct and
secondary) by an extra unit of tourist expenditure. Output Multiplier: This is similar to the sales
multiplier but it also takes into account inventory changes, such as the increase in stock levels by hotels,
restaurants and shops because of increased trading activity.
Income Multiplier: This measures the income generated by an extra unit of tourist expenditure. The
problem arises over the definition of income. Many researchers define income as disposable income
accruing to households within the area, which is available to them to spend. However, although
salaries paid to overseas residents are often excluded, a proportion of these salaries may be spent in the
local area and should therefore be included. Income Multipliers can be expressed in two ways: a) the
ratio method which expresses the direct and indirect incomes (or the direct and secondary incomes)
generated per unit of direct income; b) normal method, which expresses total income (direct and
secondary) generated in the study area per unit increase in final demand created within a particular
sector. Ratio multipliers indicate the internal linkages which exist between various sectors of the
economy, but do not relate income generated to extra sales. Hence, on their own, ratio multipliers are
valueless as a planning tool. Employment Multiplier:
The employment multiplier can be expressed in one of the two ways:
a) as a ratio of the combination of direct and secondary employment generated per additional unit of
tourist expenditure;
b) direct employment created by tourism per unit of tourist expenditure.
Multipliers can be further categorized by the geographical area which is covered by the research, such as
local community, a region within a country or the country as a whole.

36
The multiplier mechanism has also been applied to tourism and, in particular, to tourist expenditure. The
nature of the tourism multiplier and its effect may be described in the following example:
“The money paid by a tourist in paying his hotel bill will be used by the management of the hotel to
provide for the costs which the hotel had incurred in meeting the demands of the visitor, e.g., such goods
and services as food,drink, furnishing, laundering, electricity, and entertainment. The recipients, in turn,
use the money they have thus received to meet their financial commitments and so on. Therefore, tourist
expenditure not only supports the tourist industry directly but also helps indirectly to support many other
industries which supply goods and services to the tourist industry. In this way money spent by tourists is
actually used several times and spreads into various sectors of the economy. In sum, the money paid by
the tourist, after a long series of transfers over a given period of time, passes through all sectors of the
national economy, stimulating each in turn throughout the process”.
On each occasion when the money changes hands, it provides ‘new’ income and these continuing series
of exchanges of the money spent by the tourists form what economists term the multiplier effect. The
more often the conversion occurs, the greater its beneficial effect on the economy of the recipient
country. However, this transfer of money is not absolute as there are ‘leakages’ which occur. Such
leakages may occur as a result of importing foreign goods, paying interest on foreign investments, etc.

The following are some examples of such leakages:

(i) Payment for goods and services produced outside, and imported into, the area;
(ii) remittance of incomes outside the area, for example, by foreign workers;
(iii) indirect and direct taxation where the tax proceeds are not re-spent in the area;
(iv) savings out of income received by workers in the area (i.e., where there is a low propensity to
consume).
Any leakages of these kinds will reduce the stream of expenditure which, in consequence, will limit and
reduce the multiplier effect. Income generated by foreign tourist expenditure in countries possessing
more advanced economies, which generally are more self-sufficient and less in need of foreign imports
which are less self-sufficient and need to support their tourist industries by substantial import. If the
developing countries are desirous of gaining maximum economic benefits from tourism, they should
strictly control the imported items for tourist consumption and keep foreign investment expenditure at a
reasonable level.
If the leakages are not controlled then the benefits arising from tourism will be greatly reduced or even
cancelled. The most important leakage would arise from expenditure on import of agricultural products
like food and drink.
In a primary macro-economic approach to the prospects opened up by tourism establishment in a
developing country, it is regarded as advantageous that a good portion of tourist consumption should
consist of food products. It is estimated that the major part of these products can be found in those
countries,whose economic structure is largely agricultural in character. In this sense tourist consumption,
derived from international flow, can offer an assured outlet to a production which is already active
within the domestic economy,without raising problems connected with export of such products and
could thus be substituted for imported foodstuffs and a significant saving effected thereafter.
The host country derives maximum economic benefits from the tourism industry as these savings help in
increasing the benefits from the tourism multiplier. This aspect of the question is all the more important
as the multiplier effect maintains its efficacy and effectiveness as long as no importation takes place. It
follows that if the national economy is to derive the maximum benefit from the impact of international
and national tourism, there is an elementary obligation to find all those products needed for tourist
consumption. The dynamics of agricultural production in recent years confirms the ability of developing
countries to produce the major part of their agricultural products required for tourist consumption
without resorting to massive imports. The tourist economy of any country, if it is to remain healthy, must
rely upon local agricultural production and this condition seems today to be on its way to realization in
most of the developing countries.

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Multiplier of Tourism Income
To sum up, Multipliers are a means of estimating how much extra income is produced in an economy as
a result of initial spending or after cash is injected. Every time the money changes hands it provides new
income and
the continuing series of conversion of money spent by the tourists form the multiplier effect. The more
often the conversion occurs, the greater its beneficial effect on the economy of the recipient country.
CHECK YOUR PROGRESS 2
1) In how many ways can you express the employment multiplier?
2) Enlist some of the tourist facilities, the cost of a significant portion of which, are borne by
international tourists.
3) Give an example of Direct, Indirect and Included tourist expenditure.

4.4 GROWTH OF INFRASTRUCTURE

A significant benefit of tourism is development and improvement of infrastructure. The benefits from
infrastructure investments, justified primarily for tourism – airports, roads, water supply and other public
utilities – may be widely shared by the other sectors of the economy. In addition to development of new
infrastructure, the improvements in the existing infrastructure which are undertaken in order to attract
tourists are also of great importance. These improvements may benefit the resident population by
providing them with amenities which they desire. Furthermore, the provision of infrastructure may
provide the basis or serve as an encouragement for greater economic diversification. A variety of
secondary industries may be promoted which may not directly serve the needs of tourism. Therefore, it
is evident that tourist expenditure is responsible for stimulating other economic activities.
One of the characteristics of under development is that of deficiencies in the basic infrastructures, which
lie at the root of a series of problems related to the development of tourism. Development of
infrastructure requires a certain size of investment. Tourism provides the size of demand which justifies
the development of infrastructure. On the basis of this minimum demand for such facilities and for such
social capital, the size of such infrastructural services evolves. Construction of primary infrastructures
represents the foundation of any future economic growth, even though they are not directly productive.
The tourism industry illustrates the elementary need for basic infrastructure. It has today the important
benefit of being able to profit from the existing infrastructures and thus to make a decisive contribution
to the growth of the national economy. The international and national tourist traffic, moreover,
represents a reward for the capital invested and can now contribute to the financial efforts required for
maintenance. The satisfactory degree of development achieved in this specific sector now permits major
tourist progress, while also giving further proof of the complementary character of tourism in relation to
other economic sectors.
Creation of basic infrastructures for tourist usage will also be of service to the other sectors of the
economy such as industry and agriculture. This results in better equilibrium of general economic growth.
CHECK YOUR PROGRESS 3
1) What is the major bottleneck in the development of tourism in India?
2) List out some of the tourist facilities that you think are lacking in India.

4.5 TOURISM AND TAXATION

Tourism also results in tax revenues both at national and local levels. Taxes can provide the financial
resources for the development of infrastructure, enhancing and maintenance of some types of attractions
and other public facilities and services, tourism marketing and training required for developing tourism,
as well as to help finance poverty alleviation programmes by governments both at local and national
levels. In addition, tourism-related tax revenues help finance general community improvements and
services used by all residents.
WTO’s 1998 report on tourism taxation emphasizes that taxation policies in a country must be carefully
evaluated in an integrated manner to ensure that tourism-related taxes are giving the necessary

38
substantial revenues. However, taxes should not be so high for the country’s international competitive
position to be counter productive and produce a loss of tourist traffic. The aim should be to strike a
balance between, a level of taxation that maintains a competitive position for the country and reasonable
profits for the industry, and, receiving adequate revenues to support investment in and maintenance of
the tourism sector, and to contribute towards general community welfare.

4.6 BALANCED REGIONAL DEVELOPMENT

Another important domestic effect relates to the regional aspects of tourist expenditure. Such
expenditure is of special significance in marginal areas, which are relatively isolated, economically
underdeveloped, and have unemployment problems. The United Nations Conference on International
Travel and Tourism held in Rome in 1963 stated that tourism was important not only as a source of
earning foreign exchange, but also as a factor determining the location of industry and in the
development of under-developed regions. It further stated that in some cases the development of tourism
may be the only means of promoting the economic advancement of less-developed areas lacking in other
resources.In fact underdeveloped regions of the country usually greatly benefit from tourism
development. Many of the economically backward regions contain areas of high scenic beauty and of
cultural attractions. These areas, if developed for use by tourists, can bring in a lot of prosperity to the
local people. Tourism development in these regions accordingly becomes a significant factor in
redressing regional imbalances in employment and income. Tourist expenditure at a particular tourist
area helps the development of the many areas around it. Many countries both developed as well as
developing have realized this aspect of tourism development and are contemplating developing tourist
facilities in underdeveloped regions with a view to bringing prosperity there.
Khajuraho in India, which is now an internationally famous tourist spot, is an example of one such
region. To illustrate, Khajuraho, a remote and unknown small village about forty years ago, is now on
the world tourist map which attracts thousands of tourists, both domestic as well as international.
Today, Indian Airlines (India’s domestic carrier) flies a jet plane between the capital city of New Delhi
and Khajuraho and seats are not easy to come by. Thousands of tourists visit the place by air, rail and
road transport every month to see the architectural beauty of temples and erotic sculptures whose
creators were the Chandela kings, who ruled in North India from the 9th to the 13th centuries. Today 22
glorious temples remind us of the classic Indian architecture and culture of those times and represent the
finest expression of the art of medieval India.The area around Khajuraho is well developed and full of
life. The place has provided employment to hundreds of local people in hotels and shops. There is a
thriving clay-model industry devoted to making replicas of the famous temple sculptures and a number
of shops dealing with items of presentation, handlooms and handicrafts, have created jobs for many.
Tourists love to purchase various souvenirs to take home. Thus local people are recipients of additional
income which has increased the prosperity of the region. Subsequently areas around Khajuraho have
also prospered and reaped the benefits from the tourist multiplier. There is no dearth of areas which
could, after they are developed for tourism, become great assets to the region in particular and to the
country as a whole. The French government has created a series of new resorts particularly to bring
prosperity to the areas which traditionally have been underdeveloped. The Italian government is likewise
attempting to develop tourism in Southern Italy in order to help redress the economic imbalances which
have long existed between the northern and the southern parts of Italy. Tourism is to be regarded not as
an area of peripheral investment whose benefits will help in creating employment opportunities and in
the regeneration of backward regions. In India a similar approach needs to be adopted to develop areas
with great tourism potential.

4.7 GENERATION OF EMPLOYMENT

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Employment is an important economic effect of tourism. The problems of unemployment and under-
employment are more active in the developing countries. Tourism can be looked upon in this light as a
major industry which employs manpower on a large scale. The problems which the industrialized
countries face in recruiting manpower for the tourists industry confirm that, in any productive process
consisting of services, human labour remains the basic need.
If a comparison is to be drawn with the productive sector none of the technological progress achieved
has succeeded in rendering the human factor less indispensable than in this sector, and this is true to an
absolutely indisputable extent. The high social impact of the tourist industry is well known, for it has
repercussions in every other national economic sector through the multiplier effect, which is particularly
marked in those services that are complementary to the tourist accommodation industry.
The tourist industry is a highly labour-intensive service industry and hence is a valuable source of
employment. It employs a large number of people and provides a wide range of jobs which extend from
the unskilled to the highly specialized. In addition to those involved in management there are a large
number of specialist personnel required to work as accountants,housekeepers, waiters, cooks and
entertainers, who in turn need a large number of semi-skilled workers such as porters, chambermaids,
kitchen staff, gardeners, etc. Tourism is also responsible for creating employment outside the industry in
its more narrowly defined sense and in this respect those who supply goods and services to those
directly involved in tourism are beneficiaries from tourism. Such indirect employment includes, those
involved in the furnishing and equipment industries, souvenir industries and farming and food supply.
Construction industry is another very big source of employment. The basic infrastructures-roads,
airports, water supply and other public utilities and also construction of hotels and other accommodation
units create jobs for thousands of workers, both unskilled and skilled. In many of the developing
countries, where chronic unemployment often exists, the promotion of tourism can be a great
encouragement to economic development and, especially, employment. However at this point it is,
necessary to consider the seasonal nature of the tourism industry. Where general diversification
alternatives are scarce, a combination of heavy dependence on tourism and highly marked seasonality
calls for measures to develop off -season traffic.
Employment multiplier: This multiplier is similar to the Income Multiplier except that in this case a
multiplier impact on employment is observed. Employment Multiplier can be expressed in the following
two ways:
(a) As a ratio of the combination of direct employment. At the destination, the jobs are directly created in
the industry there.
(b) As a ratio of secondary employment generated per additional unit of tourist expenditure to direct
employment. The workers and their families require their own goods and services giving rise to further
indirectly created employment in shops, schools, health care institutions, etc.
CHECK YOUR PROGRESS 4
1) What kinds of direct and secondary employment can be generated by tourism?
2) Name a city in India which developed primarily due to tourism.
3) Can regional imbalances in employment be redressed or removed through tourism development?
4.8 OTHER DIMENSIONS
The World Tourism conference which was held at Manila, Philippines in October 1980, considered the
nature of tourism phenomenon in all its aspects. The role tourism is bound to play in a dynamic and
vastly changing
world was also identified. Convened by the World Tourism Organization the conference also considered
the responsibility of various states for the development and enhancement as more than a purely
economic activity of nations and peoples. The significance of tourism was discussed in detail during the
conference. The participants in the World Tourism Conference attached particular importance to its
effects on the developing countries. It stated its conviction “that the world tourism can contribute to the
establishment of a new international economic order that will help to eliminate the widening economic
gap between developed and developing countries and ensure the steady acceleration of economic and

40
social development and progress in particular of the developing countries.” For more details please refer
to the appendix at the end of the chapter.
4.10 GLOSSARY
Here are some related words
Forex- foreign exchange
International debt- international debt is the net borrowing outstanding of country towards the rest of the
world.
Circular flow of money- is a schematic representation of money flows in an economy between different
entities like households, firms and the Government.
Global warming-there has been a noticeable increase in the average temperature in the world, which is
believed to have been caused by air pollution.
4.11 KEYWORDS
gross domestic product, national development, employment multiplier, infrastructure, foreign exchange,
tourist dollar, multiplier effect, host country,regional development, human factor, declaration,
technological advances,secondary industries, invisibles, balance of payments,
4.12 SELF ASSESSMENT QUESTIONS
1) Examine the statement ‘receipts from international tourism are not always net.’
2) What is Balance of Payments? How do tourism receipts affect the balance of payments?
3) Define ‘multiplier effect’. Discuss the various types of multipliers.
4) Write a paragraph on any destination which developed primarily due to tourism activities.
(example Uttranchal)
5) How does tourism industry contribute to resolving the unemployment problem in India?
6) How is tourism effective in increasing the expenditure in a particular area in the economy?
7) Identify which keywords do not belong to this lesson
Balanced growth, afforestation, employment, international work permit, foreign exchange,
interest rate, regional diversity, export led growth, excise duty, international debt, multiplier
income, training, global warming, income tax.

APPENDIX: THE MANILA DECLARATION

Manila Declaration on World Tourism considered almost all the aspects of the tourism phenomenon.
Besides the economic aspects, social, cultural, spiritual aspects also were considered. The conference
was also convinced that world tourism can be a vital force for world peace and can provide the moral
and intellectual basis for international understanding and interdependence
The Declaration states
(i) Tourism is considered an activity essential to the life of nations because of its direct effects on the
social, cultural, educational and economic sectors of national societies and their international relations.
Its development is linked to the social and economic development of a nation and can only be possible if
man has access to creative rest and holidays and enjoys the freedom to travel, within the framework of
free time and leisure.
(ii) On the threshold of the twenty-first century and in view of the problems facing mankind, it seems
timely and necessary to analyse the phenomenon of tourism, fundamentally in relation to the dimensions
it has assumed since the granting to workers of the right to annual paid holidays. This has moved
tourism from a restricted elitist activity to a wider activity integrated into social and economic life.
(iii) States have recognized that modern tourism had come to play an important role within the range of
human activities. A great majority of them have entrusted the World Tourism Organization with the task
of ensuring the harmonious and sustained development of tourism, in cooperation, in appropriate cases,
with the Specialized Agencies of the United Nations and the other international organizations concerned.
(iv) The right to use of leisure, and in particular, the right of access to holidays and to the freedom of
travel and tourism, a natural consequence of the right to work, is recognized as an aspect of the
fulfillment of the human needs by the Universal Declaration of Human Rights as well as by the

41
legislation of many States. It entails for society the duty of providing for its citizens the best practical,
effective and nondiscriminatory access to this type of activity. Such an effort must be in harmony with
the priorities, institutions and traditions of each individual country.
(v) There are many constrains on the development of tourism, and groups of nations should determine
and study those constrains,and adopt measures aimed at removing their negative influence.
(vi) The share tourism represents in national economies and in international trade makes it a significant
factor in world development. Its consistent major role in national economic activity, in international
transactions and in securing balance of payments equilibrium makes it one of the main activities of the
world economy.
(vii) Within each country, domestic tourism contributes to an improved balance of the national economy
through a redistribution of the national income. Domestic tourism also heightens the awareness of
common interest and contributes to the development of activities favorable to the general economy of
the country. Thus, the development of tourism from abroad should be accompanied by a similar effort to
expand domestic tourism.
(viii) The economic returns of tourism, however real and significant they may be, do not and cannot
constitute the only criterion for the decision by States to encourage this activity. The right to holidays,
the opportunity for the citizen to get to know his own environment, a deeper awareness of his national
identity and of the solidarity that links him to his compatriots and the sense of belonging to a culture and
to a people are all major reasons for stimulating the individual’s participation in domestic and
international tourism through access to holidays and travel.
(ix) The importance that millions of our contemporaries attach to tourism in the use of their free time
and in their concept of the quality of life makes it a need that governments should take into account and
support.
(x) Social tourism is an objective which society must pursue in the interest of those citizens who are
least privileged in the exercise of their rights to rest.
(xi) Through its effects on the physical and mental health of individuals practicing it, tourism is a factor
that favours social stability, improves the working capacity of communities and promotes individual as
well as collective well-being.
(xii) Through the wide range of services needed to satisfy its requirements, tourism creates new
activities of considerable importance which are a source of new employment. In this respect, tourism
constitutes a positive element for social development in all the countries where it is practiced,
irrespective of their level of development.
(xiii) With respect to International relations and the search for peace,based on justice and respect of
individual and national aspirations, tourism stands out as a positive and ever-present factor in promoting
mutual knowledge and understanding and as a basis for reaching a greater level of respect and
confidence among all the peoples of the world.
(xiv) Modern tourism results from the adoption of a social policy which led to the workers’ gaining
annual paid holidays and represents the recognition of a fundamental right of the human being to rest
and leisure. It has become a factor contributing to social stability, mutual understanding among
individuals and peoples and individual betterment. In addition to its wellknown economic aspects, it has
acquired a cultural and moral dimension which must be fostered and protected against the harmful
distortions which can be brought about by economic factors. Public authorities and the travel trade
should accordingly participate in development of tourism by formulating guidelines aimed at
encouraging appropriate investments.
(xv) Youth tourism requires the most active attention since young people have less adequate income than
others for travelling or taking holidays. A positive policy should provide youth with the utmost
encouragement and facilities. The same attention should be provided for the elderly and handicapped.
(xvi) In the universal efforts to establish a new international economic order, tourism can under
appropriate conditions, play a positive role in furthering equilibrium, cooperation, mutual understanding
and solidarity among all countries.

42
(xvii) Nations should promote and improve conditions of employment for workers engaged in tourism
and confirm and protect their right to establish professional trade unions and collective bargaining.
(xviii) Tourism resources available in various countries consist at the same time of space, facilities and
values. These are resources whose use cannot be left uncontrolled without running the risk of their
deterioration, or even their destruction. The satisfaction of tourism requirements must not be prejudicial
to the economic interests of the population in tourist areas, to the environment or above all, to natural
resources, which are the fundamental attractions of tourism, and historical and cultural sites. All tourism
resources are part of the heritage of mankind.
National communities and the entire international community must take the necessary steps to ensure
their preservation. The conservation of historical, cultural and religious sites represents at all times, and
notably in time of conflict, one of the fundamental responsibilities of states.
(xix) International cooperation in the field of tourism is an endeavor in which the characteristics of
peoples and basic interests of individual sates must be respected. In this field, the central and decisive
role of the World Tourism Organization as a concept-utilizing and harmonizing body is obvious.
(xx) Bilateral and multilateral technical and financial cooperation cannot be looked upon as an act of
assistance since it constitutes the pooling of the means necessary for the utilization of resources for the
benefit of all parties.
(xxi) In the practice of tourism, spiritual elements must take precedence over technical and material
elements. The spiritual elements are essentially as follows:
(a) the total fulfillment of the human being;
(b) a constantly increasing contribution to education;
(c) equality of destiny of nations;
(d) the liberation of man in a spirit of respect for his identity and dignity.
(e) the affirmation of the originality of cultures and respect for the moral heritage of peoples.
(xxii) Preparation for tourism should be integrated with the training of the citizen for his civic
responsibilities. In this respect,governments should mobilize the means of education and information at
their disposal and should facilitate the work of individuals and bodies involved in this endeavor.
Preparation for tourism, for holidays and for travel could usefully form part of the process of youth
education and training. For these reasons, the integration of tourism into youth education constitutes a
basic element favorable to the permanent strengthening of peace.
(xxiii) Any long-term analysis of mankind’s social, cultural and economic development should take due
account of national and international tourist and recreational activities. These activities now form an
integral part of the life of modern national and international societies. Bearing in mind the
acknowledged values of tourism which are inseparable from it, the authorities will have to give
increased attention to the development of national and international tourist and recreational
activities,based on an even wider participation of peoples in holidays and
travel as well as the movement of persons for numerous other purposes, with a view to ensuring the
orderly growth of tourism in a manner consistent with the other basic needs of society.
(xxiv) The States and other participants in the Conference, together with the World Tourism
Organization, are strongly urged to take into account the guidelines, viewpoints and recommendations
emanating from the Conference so that they can contribute, on the basis of their experience and in the
context of their day to day activities, to the practical implementation of the objectives set with a view to
broadening the process of development of world tourism and breathing new life into it.
(xxv) The Conference urged the World Tourism Organization to take all necessary measures, through its
own international machinery and, where appropriate, in cooperation with other international, inter-
government and non-governmental bodies, so as to permit the global implementation of the
principles,concepts and guidelines contained in this final document.

43
LESSON-5
APPROACHES TO TOURISM DEVELOPMENT
5.3 IMPORTANCE OF TOURISM DEVELOPMENT
The higher disposable incomes greatly enhanced personal mobility and increased leisure time leads to an
increase in people travelling away from their home and this creates a demand for the facilities available
for recreation. This
demand in turn generates a pressure on the land and the amenities, as well as the social structure of the
communities. Therefore it becomes important to plan and develop the leisure facilities for tourism.
Fifty years back the tourism growth in lots of countries was an unplanned activity and as a result, to
meet the demands there was a sudden and haphazard boost in the facilities like hotels, means of
transportation, etc. at some of the popular holiday resorts to satisfy the profit instincts of the promoters.
For example in Thailand, at a beach resort called Pattaya –about 150 kilometres from Bangkok over
three decades from 1970 , the number of hotel rooms expanded from 400 to 24000 and consequently the
occupancy of hotels was not even 50 percent a year.
Concentration of development in one place and over a short period of time has many serious negative
impacts like loss of trees; loss of natural features like landscape, environment; congestion, pollution, a
large number of people are going to the same spot at the same time and this kind of commercialization
leads to overcrowding and the original ambience of the place is lost. The place loses its charm for the
people and this leads to a drop in the tourism activities. To avoid such situations it becomes really
important to properly plan for the tourism development based on the scientific research of the
requirements of the travel market and the capacity of the area to take in the tourists
CHECK YOUR PROGRESS – I
1. Give one example of unplanned tourism development
2. Give two negatives impacts of concentration of development at one place

5.4 RATIONALE FOR TOURISM PLANNING

Like any other form of development, tourism development is concerned with the economic benefits for
individual enterprises, related communities and the country. Tourism development generates wealth,
creates employment , leads to community development, development of arts and crafts of a place
,conservation of historical and natural sites, etc. but we cannot ignore some of its negatives like
extensive social and environmental damage. Thus it becomes imperative to plan for tourism
development so as to maximize the positive benefits while minimizing negative impacts in a
manner.
In the past, tourism planning was viewed in a very simplistic manner .It took into consideration:
a. Development of new hotels resorts
b. Bringing about an increase in the connecting means of transport, for example, allow more airlines to
operate
c. Launching promotional campaigns within the country and abroad
d. Easing the border crossing formalities
But now in light of the negative impact of haphazard development that came up just to meet the demand,
the government now realizes that the planning of tourism development should be based on scientific
research of the requirements of the travel market and the capacity of the area to take in the tourists.
Tourism development requires an in-depth study of resources or the supply and the demand patterns.
Two main components that are the sources of demand for tourism in any country may be identified as:
1. The residents (the home market)
2. The visitors from abroad (the export market)
This classification provides a basis for the assessment of demand and each group follows a particular
pattern of demand. For example in India the residents in summers like to go to places like Shimla,
Mussorie which are cooler but a visitor from abroad might still want to go and see Taj Mahal or visit

44
Goa for tanning, so there is a difference in the demand at a particular time from the different sections of
tourists. The demand helps us in planning for the areas of interest.
The pattern of traffic has to be kept in mind while planning specially at the supply side because it is not
flexible, for example hotels cannot be built in a day even if you feel there is an increase in demand.
Similarly development of airports also takes time. For successful tourism planning the current and the
future supply has to be correlated to the current and the future demand. Some of the important factors
influencing Tourism Development in an area are planning and development of resources.
Tourism can take several forms. A single trip may require one or more forms of transport on the way, a
stay might involve one or different types of accommodation in one or more locations. A tourist engages
in active and passive forms of recreation, sightseeing, meetings, conferences and such other things, all
this involves the use of a variety of facilities and services, available more or less specifically for his use
and enjoyment.
The inflow of tourists to any particular area makes use of the resources of different kinds. The beaches,
the islands, the hills, etc. together with the climate constitute the natural resources for tourist experience,
these resources exist irrespective of demands of tourism but their availability and characteristics by a
greater or a lesser extent get affected by tourism. The other resources are the ones that have to be
developed; it refers to various forms of physical development, which will make any area accessible to
tourists, as also to particular installations or facilities required by the existing tourists in that area.
The development can be divided into two basic categories:
1. The Infrastructure
2. The Superstructure
The infrastructure includes all forms of construction on and below ground required by any inhabited
area in intensive communication with the outside world and as a basis of intensive human activity
within. It includes roads, railway lines, harbours, airport runways and also the utility services like the
water supply, drainage and sewage disposal, electricity and power supply. The superstructure consists of
passenger traffic terminals, hotels, restaurants,entertainment, shopping facilities and so on.
The Infrastructure has to precede the superstructure and has to be adequate to serve the needs of the
residents as well as the tourists. If not well developed it will affect the tourism, as for example if the
access roads to a particular destination are not good or at a destination there is no good source of water
supply these factors will hamper the tourism growth for the particular destination.
This calls for physical planning and development –we can classify the areas that need to be
developed on the basis of demand, into the following two heads:
1. The new areas with potential, but little or no existing tourist activity and with most land and other
resources uncommitted to the existing uses.
2. Re-shaping of the areas with significant tourist flows already, with existing patterns of the land use
and facilities.
For this the following considerations have to be kept in mind 1. The need to assess demand
a. Potential demand –for new locations and the facilities
b. Actual demand –for the existing locations and to assess how it will change if there is a change in the
existing facilities.
2. The need for assessment of the required resources of land, capital and labour for any proposed
development and of their alternative uses. The land can be alternatively used for agriculture, industry or
residential development or for tourism. Similarly the capital may compete with its potential use in some
other business (if provided from private source) or it can be used for building a school or a hospital (if
provided from public funds). If alternative sources of employment are available in the area, the quantity
and quality of labour available for tourism has to be assessed in relation to other sources of employment.
In these kinds of situation a cost-benefit analysis is required.
3. The need to assess the needs of the tourists and residents of the area and the compatibility of tourism
with the other activities.
CHECK YOUR PROGRESS – II

45
1. Give three benefits of tourism development
2. What are two main sources of demand for tourism?
3. What are the two kinds of resources used for development of tourism
4. Out of the following, what is included in infrastructure development and what is included
superstructure development?
a) A new Airport
b) A new highway
c) The water supply
d) A cinema hall
e) A shopping mall
f) A hotel
5. Give two alternative uses each of the resource of Land and Capital.

5.4.1PLANNING THE INFRASTRUCTURE

In the creation of the infrastructure there are two crucial aspects
1. The capacity to serve a particular development- this is assessed with the help of a market study on the
number of the users of a development.
2. The range and the type of facilities to be provided -the scale of infrastructure required by them
The infrastructure requirements are divided into three main groups
a. Those which provide lines of access and communication with the outside world- this calls for
construction of roads, railway lines, harbours, airport runways to carry the required volume of traffic to
and from the area and also provision of means of communication
b. Those which enable the movement of people at the destination-to provide for movement within the
area and also provide supporting facilities for those staying in the area
c. Those which supply the essential services of lighting, power, water,drainage and sewage disposal for
the development

5.4.2 PLANNING THE SUPERSTRUCTURE

The superstructure comprises the individual facilities within a tourist area like accommodation, catering,
entertainment and so on and since these are commonly provided by individual operators and developers
they are normally planned individually. But this poses a great significance to tourism development as the
capacity of a destination for staying tourists is determined by the capacity of its hotels and other
accommodation.
With the discussions above we have understood what tourism development means and the relevance of
planning for tourism development. Now we have to study who is responsible for carrying out this
development or how it takes place.
Since infrastructure extends over a wide area and also involves a heavy capital outlay and the interests
of more than one party, it is commonly provided by the government or the other public authorities out of
public funds; whereas the superstructure has a limited requirement of capital and is confined to a limited
area, so it is usually developed by private players.

5.4.3 GOVERNMENT’S ROLE IN TOURISM DEVELOPMENT OR THE STATE APPROACH

Government plays a role at various levels like
 Central

46
  State
 Local
In the state approach a budgetary allocation is made through the plans for the development of an area.
The government identifies the area and starts with the infrastructure development that is the laying of
roads, a network of communication and the development of the basic utilities. But ever since the World
Tourism Organization adopted the theme of ‘Public-private partnership’ there is a shift from the strong
Central Government intervention to a more constructive participatory approach. This partnership implies
systems of formal cooperation between the public (government) and the private sectors where the
partners share the responsibilities, resources, risks and rewards.
The need or the rationale for such partnerships arises out of the fact that:
1. The demand for tourism products and services has grown significantly and it is expected to increase
manifold in future. Also the developments in information technology have made access to information
easier thereby making the competition sharper so the countries provide the prospective tourists with
wider options. In this scenario the countries which can respond quickly to the changing consumer
demands will have an edge over others and by the very nature of functioning, the government systems
are more rigid and less responsive to the emerging situations than the functioning of the private
organisations. Thus the partnership strengthens the country’s efforts in the international arena.
2. The sources of government funding for tourism related areas are not sufficient. The pressure on the
limited sources is acute especially in countries like India because there are increasing demands for
satisfying the basic needs of people for health, education, etc. So one major objective of a partnership is
to make more resources available for tourism without depending too heavily on budgetary support.
The extent and the depth of partnership will vary from country to country and there are no general
prescriptions on the role of public and private sectors but there has to be commonality of the objectives.
However there are certain activities which, because of their very nature, have to be performed by the
government and cannot be delegated to any agency. Some of these activities are:
i) The task of Policy Formulation – As tourism is a multisectoral activity it depends to a large extent
on the healthy interrelationship between the different components of the sector and only government
measures can bring about the required coordination between such diverse but inter-related economic
activities. The government also has to handle the issues relating to interdependence of the global
economy which influences the tourism promotion, for example, a policy on international relations.
ii) Planning to integrate marketing strategy, development of physical infrastructure, human resource
development, intersectoral linkages in national economic planning, facilitation for tourists travel,
security and safety and so on to ensure that scarce resources are used to the optimal level. Here one of
the very important areas for government is in facilitating access of the tourists to the country.
For a tourist the first contact with a country is through the embassies for visa, and the customs and the
immigration on arrival. The government policies in these areas and the effectiveness of the policies in
creating a tourism-friendly atmosphere greatly influence the decisions of the prospective travellers.
iii) The promotion of the national image is also the task of the government- this refers to devising
appropriate marketing strategies.

5.5 APPROACHES TO TOURISM DEVELOPMENT

1. The Economic Approach
This approach is concerned with seeing the effects of tourism on the economy of the country. From the
beginning of the study of tourism development, the effects of tourism were analysed based on the
economic aspects. The majority opinion is that tourism can make a positive contribution to the economic
development of a region but the economic effect is variable as it depends on the stage of development
and the structure of the respective national economy, as well as the growth rate and the type and form of
tourism.
The important economic effects are:
a) Foreign Currency Effect

47
Tourism is one of the main sources for earning foreign currency but from the point of view of seeing its
effect on the economy it is important to see what the net foreign currency receipt is. For this,the imports
of investment and consumer goods required by tourists have to be deducted from the country’s gross
receipts from foreign tourism.
b) Income Effect
This refers to the direct income earned resulting from the expenditure made by the tourists and also the
indirect income which results from the multiplier effect. That is, when the first recipient spends a part of
his income again, for example the holiday resort owner spends part of his earnings on buying grocery for
his self consumption; here income earned by one is generating income for some other also.
c) Employment Effect
Tourism is a very labour intensive industry, it creates jobs both direct and indirect like jobs in the airline
industry or the hotels are examples of direct employment and the suppliers of food,beverages are the
sources of indirect employment. Studies show that the employment effect is much higher in the
developing countries
d) Regional Equalization Effect-Tourism can make a positive contribution to the development of
economically poor regions which do not have any significant source of income generation and thus
contribute to the economic development. Tourism thus brings in more income and employment in these
regions and hence it has an equalization effect.
There are different opinions regarding all these effects but the important risk of tourism is the fact that it
is seasonal, and also the social inferiority of tourism occupation.
What is really important is that the positive economic effects should outweigh the negative ones.
2. The Environmental Approach
This approach suggests that for the development of tourism it is important to study what role
environment plays and what aspects of environment are to be taken into consideration while developing
tourism of any country.
One of the major draws for a tourist to a place is its scenic attraction, the landscape, the beauty, the
structure. These are also the most important factors for tourist motivation. When a tourist goes for a
holiday he is looking for a change of environment or a “contrast experience”.But the landscape loses its
tourist value through its overuse by the tourists .The natural beauty can be preserved better if there is no
tourism and unplanned tourism can have serious negative impacts on the environment, for example
building up of hotels or resorts with no planning will lead to destruction of the landscape.
The landscape is the real raw material of tourism. In any other branch of the economy if capital put in is
lost it can be multiplied again. However,once the basic raw material of tourism –the land is lost it can
never be reclaimed. So while planning for the development it becomes very important to understand the
impact of tourism growth on the environment and to ensure that it doesn’t get adversely affected.
3. The Socio-Cultural Approach
This approach studies the social effects of tourism on the population,which receives the tourists.
Tourists’ behaviour and attitude at times can create mistrust, resignation and aggressive dissatisfaction in
the native population. While planning for the development of tourism the local population’s interest
should be considered and they should be allowed a representation in the task of decision-making.
4. The Cost-Benefit Approach
This approach suggests that when we are planning for the development of tourism we have to take into
account the Costs (disadvantages) and the Benefits (advantages) accruing out of the various tasks
undertaken for the tourism development.
The idea here is to provide the different bodies like public authorities at local, regional and national
levels, and also the transport organizations mainly in the private sector involved in the decision making
with a method that they can use to rationalize their decisions and tourist policy measures such as
investments, legislative enactments, and publicity campaigns and so on.

Two Fundamental Rules of Cost-Benefit approach

48
a) The need for clearly defined , feasible goals
It is important to clearly lay out the goals that are desired to be achieved through tourism development to
be able to calculate costs and benefits. The goals provide the criteria for evaluating the costs and benefits
of a particular action .The goals have to contain clear instructions on the actions required to achieve
them.
b) The need to consider alternative courses of action
This implies that the decision-maker just does not adopt the first measure that appeals to him without
considering other possibilities that may offer greater chances of success. To take a rational decision there
should exist a choice between alternative courses of action. The costs and benefits of various alternatives
have to be compared and the best should be selected.
5.7 GLOSSARY
Sustainable: The term sustainability is used to describe the effect on the natural environment.
Hence, sustainability implies a rate of such effects that can be tolerated by the environment.
5.8 SELF ASSESSMENT QUESTIONS
1. What is the need for planning in Tourism development?
2. What is the role of government in tourism development?
3. What are the different approaches to the planning of tourism development?

LESSON- 6

APPROACHES TO TOURISM DEVELOPMENT CASE STUDIES

6.2 CASE STUDY OF BRAZIL

Brazil is the largest South American state which takes up almost one third of the South American
continent. It is also the western hemisphere's second largest country and the fifth largest country in the
world, Brazil is located more or less in the centre of South America. It forms the borders with almost
every nation of South America except for Chile and Ecuador. The capital of Brazil is Brasilia and the
language spoken there is Portuguese .It has a very wide geographical range from rain forest to dry inland
to 5,000 miles of coastland to mountains to the world's largest river to wild flowers; it is a country
overflowing with natural resources.
Major Cities of interest in Brazil are Brasilia, Sao Paulo, Rio de Janerio, Belo Horizonte, Recife, and
Salvadore. Brazil has awe-inspiring sites, such as the Iguazu Falls, the Amazon rainforest, as well as
2,000 miles of virtually uninterrupted soft white beaches in the Afro-Brazilian state of Bahia, there are
more than 154 historical churches in the capital of Salvador Few countries are able to offer as great a
variety of tourist options as Brazil.
With a land mass the size of a continent - more than 8 million km2 - in terms of area, the nation is fifth
in the world, exceeded only by Russia, Canada, the USA and China, occupying almost half of South
America. The distances from north to south and from east to west - around 4,300 km in each direction –
are greater than from New York to Los Angeles and from Moscow to Lisbon.
Brazil has well defined tourist image, based mainly on its wonderful beaches and carnival of Rio de
Janerio.
About Places of Interest
Tourist Attractions in Rio De Janerio Brazil, the Sugarloaf The sugar Loaf is a green, unearthly peak
rising over the marvellous city, and is one of the biggest Tourist Attractions in Rio De Janerio, Brazil.
The Sugar Loaf is a soaring 1,300-ft granite block standing at the mouth of Guanabara Bay. For a trip to
the place Italian-made bubble cars holding 75 passengers each move up the mountain in two stages, the
first stopping at the Morro da Urca, a smaller mountain in front of Sugarloaf, and the second continuing
on to the summit, each stage taking three minutes.

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As a part of tourism development recently they made a place for shows with many bands frequently
visiting on top of the sugar loaf. For those who want to rock a little bit more there is also a hip, but
expensive, nightclub here called 'Projector Noites Cariocas' .
The legendary Amazon is one of the planet’s enigmas. It is the world’s largest river basin, and also the
planet’s greatest rainforest. Within the Amazon Basin resides a wealth of life richer than any place else
on earth, and millions of species still remain undiscovered.
A canopy of green spreads over a 2,030,000 square mile ecosystem that includes the Amazon River
Amazon Forest (the largest and densest rainforest in the world) and upwards of five million animal
species.
Over 25,000 species of plants and more butterflies can be found here than anywhere else on the planet.
The Amazon Basin is the planet's largest body of fresh water with 1100 tributaries 17 of which are more
than 1000 miles long. Many of the tributaries begin in Colombia and Peru.
Recognized as the world’s greatest reserve of life form with the greatest biological accumulation of
carbon on Earth the Amazon is one of the largest remaining contiguous tracts of nature on earth. The
Amazon is the "lungs of the world."
Wedding of the waters - where the dark water of the Rio Negro meet but do not mix with the muddy
waters of the Rio Solimões
3. Iguazu Falls-In Iguazu, 270 waterfalls spread out like a lace curtain for nearly two miles. One can't
see them all at once from ground level for they extend far beyond the line of vision. The spectacular
Iguazu falls are taller than the Niagara Falls and twice as wide.
Iguazu Falls in Brazil
4. Rio Carnival -Carnival is Rio's main event. It happens at the peak of summer, when Cariocas are at
their best. Festivities attract thousands of people from all corners of the world. Carnival or Mardi-Gras,
as spelt in Portuguese, is a 4-day celebration. It starts on Saturday, and ends on Fat Tuesday. Carnival
Sunday is seven weeks before Easter Sunday.
Rio Carnival
Brazil intends to make an effort to change world tourism statistics which show that the country gets a
measly 0.6 percent of international travelers The country seeks to get a bigger share of the world's
biggest business nowadays.
The tourism sector goal is to reach 9 million foreign visitors annually by 2007,create 1.2 million jobs
and generate revenue of US$ 8 billion. As for the domestic tourism market, the goal there is to reach 65
million passengers on domestic flights and offer tourist attractions in all Brazilian states.
Some initiatives to improve the tourism industry in Brazil Although in its infancy stage, the Brazilian
tourism industry is already undergoing a transformation. Southern states are beginning to receive large
numbers of tourists from neighboring countries, and cities like Florianopolis in Santa Catarina State
have become important coastal resorts. New types of tourism, including ecotourism, are developing
from the natural attractions of almost untouched Amazonian forest and the diverse animal life of the
Pantanal marshland. Ecotourism is gaining a strong push in all the states of Brazil, even the MST
(Movimento dos Sem Terra), the largest landless movement, is attracting curious foreigners to their
“acampamentos”.
In addition to its traditional attractions, the city is improving sport aquatic mactivities and tours to
“favelas” as a way to better integrate the local population with the tourist industry.
But, there are several constraints. Brazil needs to focus on augmenting the number of new and repeat
visitors, as well as improving the management and skills of agents working in the industry.
The Brazilian government has introduced a government initiative to stimulate Turismo (National
Program of Tourism Municipalization). Aimed at giving local municipalities incentives towards
developing their own regional infrastructure and strategic plans. The program hopes to multiply and
diversify the number of tourist destinations. In the coming years Brazil’s tourist industry will benefit
from increased investments in hotel infrastructure. The Brazilian National Economic and Social

50
Development Bank have been providing subsidized credit lines with favorable rates of interest to
enterprises wishing to construct hotels in the Northeast.
With the establishment of a Ministry of Tourism in January 2003 it has been possible to make an
adequate x-ray of the sector and direct investments more efficiently.
The result is that the sector has begun to show signs of recovery. The minister pointed out that in 2003
the number of foreign visitors who came to Brazil rose 8.12 percent, to slightly more than 4 million.
The Brazilian government is planning a massive ad campaign abroad to promote the natural and cultural
beauties of the country. The ads will be presented at 30 international fairs and 6 workshops. The
objective is to give the tourism sector a boost because it is a labor intensive sector. The ad campaign will
have a budget between US$ 6.36 million and US$ 9.5 million.
With its potential for increasing the number of jobs in cities and rural areas alike, tourism has been
recognized as an important part of the country’s strategy to reduce income inequality. As a service
sector, hotels and other tourism operations require employees who are better trained. After reforms in the
1996 Educational Law, which eased the process of accrediting tertiary educational institutions, a great
number of bilingual and skillful young tourist professionals are being schooled. It is expected that these
new generations of professionals will be able to offer to foreigner visitors the same quality of service
experienced in other mature markets. It is also expected that this professionals will find better ways to
attract visitors to Brazil.
CHECK YOUR PROGRESS-I
1. What continent is Brazil in?
2. What language is spoken in Brazil?
3. Name three places of tourist attraction in Brazil?
4. What is the target of tourism sector by 2007 in terms of foreign visitors, jobs and revenue generation?

6.3 CASE STUDY OF SOUTH AFRICA

South Africa is a nation of over 46-million people of diverse origins, cultures,languages and beliefs.
Around 79% are black (or African), 9% white, 9% "coloured" - the local label for people of mixed
African, Asian and white descent - and 2.5% Indian/Asian. Just over half the population lives in the
cities.
The country straddles 1.2-million square kilometres, as big as several European countries put together.
It’s one eighth the size of the USA. Still, it's more than a day's drive down the highway from
Johannesburg in the north to Cape Town in the south with the topography ranging across the spectrum
from lush green valleys to semi-desert.
Up until 1994, South Africa was known for "apartheid" or white-minority rule.The country's remarkable
ability to put centuries of racial hatred behind it in favours of reconciliation was widely considered a
social "miracle", inspiring similar peace efforts in places such as Northern Ireland and Rwanda.
Postapartheid South Africa has a government comprising all races, and is often referred to as the
"rainbow nation", a phrase coined by Nobel Peace Prize winner Desmond Tutu.
South Africa has two capitals. Cape Town, the oldest city, is the legislative capital, where Parliament
sits. Pretoria, 1 500 kilometres to the north, is the executive capital, where the government
administration is housed. Next door to Pretoria, and close enough that the outer suburbs merge, is the
commercial centre of Johannesburg, once the world's greatest gold mining centre, now increasingly
dominated by modern financial and service sectors. The second biggest city is Durban, a fast-growing
port on the eastern coast, and the supply route for most goods to the interior.
In Johannesburg, the country's commercial capital, the weather is mild all year round, but can get cool at
night. Durban, the biggest port, is hot and sometimes humid, a beach paradise. And in Cape Town,
where travellers flock to admire one of the world's most spectacular settings, the weather is usually
warm, though temperamental. If you're visiting from the Northern Hemisphere, just remember: when it's
winter over there, it's summer over here.

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South Africa is one of the most diverse, interesting and famous tourist destinations, often referred to as a
"world in one country". It offers you everything from scenic beauty to wildlife excursions to flourishing
urban nightlife. Tourists flock to South Africa for its natural beauty, wildlife and sunshine, which make
ecological tourism in South Africa the fastest growing segment.

Places of Tourist Attractions

1. Kruger Park is the world renowned, biggest and oldest game park offering an exciting wildlife
experience that ranks with the best in the world.
2. Table Mountain is the famous landmark accessible through cable car ride giving you breathtaking
views of the city and the sea from its top. It has been proclaimed as a National Monument and a
sanctuary.
The World Travel Awards - known as "the Oscars of tourism" - were started in 1993 to acknowledge and
celebrate excellence in international travel. Now in its 12th year, tourism professionals and discerning
travellers regard the awards as the best endorsement a tourism product could hope to receive.
Thousands of travel agents and industry members from around the globe vote for the winners from a
selection of nominations.
South Africa is the best holiday destination in Africa - and its official. At the 2005 World Travel Awards
ceremony in London in November, the country's airline, hotels, airports and more walked off with 16 of
the 17 prize categories for the continent of Africa
South Africa stood out as one of the hottest destinations in the 2004 World's Best Awards survey by
international travel magazine Travel & Leisure. Of the 10 "best hotels in the world" for 2004, five are in
South Africa. The Saxon hotel in Sandton, Gauteng, has been voted best boutique hotel in the world four
times, up against many established international hotels in Tokyo, the US and Singapore
International audit firm Grant Thornton says the southern African region has "enormous" potential to
become a must-see tourism destination, if governments and the private sector are committed to building
the industry.
The firm's report comes out of research commissioned by the New Partnership for Africa's Development
(Nepad) and the Southern African Development Community (SADC) to assess tourism growth in the
region.
This is despite challenges facing the industry, identified by the Department of Environmental Affairs and
Tourism, such as inadequate funding and delays in acquiring investment licenses.
"There is inadequate tourism education, training and awareness for the general public, and a lack of
protection for the environment," a department spokesperson said.
Limited availability of local suppliers for the tourism industry and insufficient air capacity to handle
demands in peak seasons have also been identified as threats to South African tourism.
CHECK YOUR PROGRESS-II
1. Name the legislative and Executive capital of South Africa.
2. What place is known as beach paradise in South Africa?
3. How many awards did South Africa get in the World Travel Awards 2005?
4. Which hotel of South Africa is voted as best boutique hotel?

6.4 CASE STUDY OF CHINA

China is a huge country located in Asia, and is the world’s most populous country with a history and
culture reaching back 4000 years. The North of the country tends to be dry and windy, with the South is
warm, humid and rainy.
Beijing is the capital, and here you can discover the Chinese Opera and the Forbidden City among many
other delights. The main language is Mandarin Chinese, and the currency is the Yuan.
China offers many attractions, and due to its size these are best appreciate by touring a particular area or
theme. The Silk Road tour follows the famous trade route which crossed Asia and Europe. The Chinese

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part of the route covers over 4000 miles, and takes in provinces including Gansu and Qinghai. You can
see historic sites such as the terracotta army, monasteries, temples and cultural relics along the way.
Places of Tourist Attractions
1. Tang Paradise is located in the Qujiang Resort, southeast of the Xian City,Shaanxi Province. It is a
newly opened tourist attraction in April, 2005. Tang Paradise covers a total area of 1000 mu (about 165
acres) and of which 300 mu (about 49 acres) is water. This tourist attraction not only claims to be the
biggest cultural theme park in the northwest region of China but also the first royal-garden-like park to
give a full display of the Tang Dynasty's (618-907) culture. Altogether, twelve scenic regions are
distributed throughout Tang Paradise to provide visitors with the enjoyment of twelve cultural themes
and a perfect exhibition of the grandness, prosperity and brilliance of the culture of the Tang Dynasty.
What makes Tang Paradise incredible is that it is no longer the garden mode of only water and
mountains in the Chinese traditional sense. The outstanding designers of the magnificent Tang Paradise
have integrated almost everything representative of the Tang Dynasty, such as the poetry, the songs and
dance, the marketplaces, the food, the women's lifestyles, and science into every site using cultural
themes, thus endowing every place with its own story and its own place in the tapestry of Tang Dynasty
culture. Tang Paradise is praised as 'Garden of History', 'Garden of Spirit', 'Garden of Nature', 'Garden of
Human Culture' and 'Garden of Art'.
In Tang Paradise, another surprising man-made wonder is the water film which claims to be the foremost
in the whole world. The screen of the movie is a film of water.
2. The Great Wall of China is a magnificent feat of architecture and building, which dates back to the 5
Th centuries BC and runs from East to West China over thousands of miles. Badaling, 70km north of
Beijing, is a popular place to see the Wall and enjoy the spectacular mountain views from its top.
China boasts many beautiful lakes, rivers and mountains, and the North East corner of the country has
snow covered pastures and mountains where you can skate, ski, hunt and ride.
Great Wall of China
China is a wonderful holiday destination, with its fascinating ancient culture and huge terrain offering
endless possibilities for exploration, adventure and fun. Although it is a vast country, China is accessible
to travellers, with most provinces having an International Airport, and Beijing Capital International
Airport is the main hub. Accommodation in China ranges widely from luxuriously appointed hotels in
the major cities, to more humble yet
comfortable lodgings in the provinces.
Since the 1990s, tourism development in China has been increasing sharply. In1978, annual international
visitor arrivals were 1.8 million; in 2002, this figure was 97.9 million. In the same period, international
tourism receipts
increased from US$2.63 billion to US$20.39 billion (STA 2003). Tourism development stimulates
national economic growth. In Western China, where it is relatively less developed, tourism development
is considered important for accelerating economic development.
In 2004, CNTA launched a series of tourism promotion activities both at home and abroad. It
successfully conducted a large-scale tourism promotion activity themed "Welcome to China--2008
Beijing" in the United States, helping pave the way for Chinese tourist products to enter the marketing
system of American travel operation. It hosted more than 2,900 travel dealers from 48 countries and
regions at the China International Travel Fair in Shanghai. The "Olympics for Tourism" promotion
activities were formally launched in Athens during the Athens Olympic Games. The China-France
Culture Year and China-ASEAN Expo in Nanning, Guangxi Zhang Autonomous Region also provided
opportunities for tourism promotion.
Tourism sector witnessed full recovery. In 2004, a total of 109.04 million visitors from overseas came to
China for tourist, business or family reunion purposes, an increase of 19 percent year on year. Of this
total, 16.93 million were foreigners, a number up 48.5 percent over the previous year; 92.11 million
were Chinese compatriots from Hong Kong, Macao and Taiwan, up 14.8 percent. Of all the tourists from

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overseas, the number of those who stayed at least one night in China accounted for 41.76 million, up
26.7 percent.
Foreign exchange earnings from international tourism topped $25.7 billion, up 47.9 percent. A total of
28.85 million Chinese went abroad, up 42.7 percent.
Of this total, 22.98 million were on private visits, a year-on-year rise of 55.2 percent, accounting for
79.7 percent of all outgoing visitors. The year 2004 saw 1.1 billion domestic tourists, up 26.6 percent.
Revenue from domestic
tourism totaled 471.1 billion Yuan, up 36.9 percent.
CHECK YOUR PROGRESS-III
1. What is the capital of China, what is the main language spoken there and what is their currency?
2. What is the name of the biggest cultural theme park in China and what is it also referred to as?
3. What is the figure of annual international arrivals to China for the year 1978 and for the year 2002?
4. What was the name or theme of the promotion activity conducted by CNTA in USA?

6.5 Case Study of Switzerland

Switzerland is a Central European country, east of France and north of Italy.
Switzerland is known as the Paradise of Europe
Its bordering Countries are Germany, France, Italy, Austria, and Liechtenstein.
Capital of Switzerland: Bern
Population: 7,450,000
Land Area: 41,285 km2 (15,941 mi.2)
Languages Spoken: German, French, Italian, and Romansch
Religion: Catholic (46%), Protestant (40%), other (14%)
The climate is moderate. From July to August the daytime temperature ranges from 18º C to 28º C (65º-
82ºF) and the January - February range is -2ºC to +7º (28º-45ºF). Depending on the altitude the
temperature range may vary.
There is no excessive heat or humidity. Southern Switzerland has sub-tropical vegetation and enjoys a
year-round mild climate.
The diversity of the landlocked, mountainous country is the essence of Switzerland and gives the
country its unique identity. Still, it is best known for its financial institutions, fine cheeses and chocolate,
watch making industry, for its scenery and an excellent network of public transportation Tourism as such
began in the 19th century, but as early as the 17th century literary and visual portrayals of Switzerland’s
scenic beauty had attracted intellectual elites from abroad Initially tourism was a summer pursuit. In
winter, heavy snow prevented most travel, and it was only the beginning of winter sport activities,
largely pioneered by the British at the end of the 19th century, that brought winter holidays into fashion.
Today “low season” means just a few short weeks in spring and autumn.
Switzerland is quite expensive compared to most other European countries. However, you can expect
quality in return. It is a clean country with good roads and excellent public transportation.The latest
trend, after active holidays, is “wellness” - a combination break encompassing spa, health farm, beauty
treatments and fitness - with all activities concentrated on one hotel or group of establishments.
There is no region of Switzerland that does not aspire to some form of tourism. The basic subdivisions
include mountain resorts, with climbing in summer and skiing in winter, and the many lakeside resorts
that offer water sports. Many Swiss cities are in part also resorts, and then there are countless rural areas,
not least in the Jura Mountains, which offer a less dramatic form of tourism.
Switzerland is a dream destination in Europe. Famous for its stunning Alpine scenery, Switzerland has
been immortalized in movies such as the evergreen musical film - The Sound of Music. Other than the
spectacular Alps, Switzerland has many attractions. These include forests with nature trails and hiking
paths, lovely lakes, ancient cities, which are beautifully preserved, scenic countryside with picturesque
meadows and farms. The architecture and culture of Switzerland have been influenced by the heritage of
France, Italy and Germany .Most tourist areas offer or form a combination of events and activities. The

54
large cities are as much lakeside, congress, and museum venues as they are meeting places for business
people.
Places of Tourist Attractions
1. The Swiss Alps are visited by tourists and mountaineers from around the world. Towering at heights
of over 4,000m the Swiss Alps have some of the best-known peaks in the world including The
Matterhorn. Snow capped peaks, icy glaciers, rocky crags and awesome spires can be seen in the Swiss
Alps. Thick forests and woods with fir and pine and other coniferous trees extend to the edge of calm
lakes.
In general, Switzerland now faces far more competition from other destinations, while state expenditure
on promotion remains relatively modest.
Switzerland Tourism is now tapping markets such as India and China, which have increasing numbers of
prosperous people.
The tourist industry could be one of the big winners if parliament ratifies a bilateral treaty on open
borders with the European Union. The open-border policy means that Asian and Russian visitors require
only one visa to travel among EU countries. But a Chinese tourist, for example, needs an additional visa
if he hopes to see the Swiss Alps in between stops in Paris and Rome. The Schengen accord on cross-
border travel includes measures to increase security among member states.The visa issue is the last
major stumbling block that could prevent ST from reaching its goal of trebling the number of nights
Chinese guests spend in Swiss hotels by 2007. If the goal is realized, the Chinese would be second only
to the Japanese among Asian travellers.The national tourist board, Switzerland Tourism (ST), says this
handicaps its efforts to market Switzerland in Asia and Russia.
CHECK YOUR PROGRESS-IV
1. What is the capital of Switzerland and what is it also known as?
2. What kind of sport tourism is famous in Switzerland?
6.6 CASE STUDY OF THAILAND
Thailand is a Southeast Asian, predominantly Buddhist kingdom almost equidistant between India and
China. Buddhism is the dominant religion in Thailand, although a variety of tribal religions continue to
be practiced.
Thailand's people regard their royal family with a respect bordering on awe.
The main language in Thailand is Thai, although Lao, Chinese, Malay and English are also spoken by
significant numbers of people. Bangkok is Thailand's capital in every sense. It is where the Royal
Family resides, it is the seat of government and administration, and it is the focal point for virtually all
major industrial, commercial and financial activity. It is the country's main port and home to one tenth of
the Kingdom's population.
Bangkok is also the country's principal gateway and prime tourist attraction. Playing such an important
role, Bangkok bears the full brunt of Thailand's present rapid economic growth. As such it can appear a
chaotic and confusing city. The skyline is dominated by high-rise offices, buildings, condominiums,
luxury hotels, departmental stores and shopping malls, while the streets bustle with activity.
Thailand can be an extremely hot and soggy place. Its tropical climate is divided into three seasons: cool
in November to February, hot in March to May, and rainy in June to October. The seasons are more
extreme in the northern regions, where the dry heat can grow quite intense in late spring and the cool can
become cold in the mountains. The rainy season is no detriment to travel in Thailand, as the rains can be
cool and refreshing.
Places of Interest
The Joe Louis Theatre:
It features daily performances of ‘Hun Lakhon Lek’ traditional Thai small puppets. Sakorn
Yangkhiawsod, (more widely known as Joe Louis), the founder of the Hun Lakhon Lek Joe Louis
Troupe, was one of Thailand's top puppet masters and the country's last 'Grand Master' of small puppet
performers. Joe Louis' creation of the ancient Siamese small puppet performance is unique. The soul and
spirit of the performance comes directly from the puppeteer.

55
During 1980-1987 visitors to Thailand increased at the rate of 10.53% per year in 1980 the total amount
of tourists visiting Thailand was approximately 1.85 million people and in 1987 3.48 million.
From 1979 till now, the Thai Government has been increasingly interested in the development of
tourism promotion. In the 4th National Economic and Social Development Plan (1977-1981) a tourism
development plan was also included. It was the first time tourism appeared in the plan. From then on, it
has been a fixture in every plan.
In 1987, the Thai Government launched the tourism promotion project,"Visit Thailand Year" to celebrate
the auspicious occasion of His Majesty the King's 60th anniversary and to commemorate His Majesty
becoming the longest reigning monarch in Thai history. Private and public organizations concerned with
tourism actively promoted tourism development contributing to the satisfactory figure of visitors to
Thailand in 1987 of 348 million with an increase of 2359% and 50,023 million baht in revenue from
tourism alone. As a result, in 1988, the following year, the number of visitors ascended to 4.23 million
people, 2147% up from the previous year with 78,828 million baht in revenue. The numbers for 1989
rose to 4.8 million visitors and 96.000 million baht in revenue. The target for 1991, which was the last
year of the 6th National Economic and Social Development Plan, was 6 million Visitors and 128,000
million baht in revenue.
The Tourism Authority of Thailand (TAT)) has been planning, surveying and studying tourist destination
development to set trends for related organizations to follow, especially various basic necessities in
tourism.
Furthermore, TAT supports tourism resources conservation in local areas,and conservation of Thai
culture and traditions to attract tourists. TAT also promotes and supports local areas to produce folk arts
and crafts in demand by tourists as souvenirs. For the security of tourists TAT organized the Tourist
Police to oversee the safety of tourists and the Tourist Assistance Center to assist tourists in various
matters.To improve human resources in tourism TAT has trained tour guides and personnel in the
accommodation business and restaurants. This is to provide adequate quality manpower for the
industry.Along with marketing strategies to attract tourists, Thailand has been successful in tourism due
to several factors some of them are as follows:
1. Thailand's favorable location makes it the ideal commercial aviation center of Southeast Asia it is
convenient for flights from all over the world to stop over at Bangkok International Airport. Being
readily accessible
results in the satisfying growth of the Thai tourism industry.
2. The quantity and diversity of tourism resources such as natural tourist destinations like beaches,
seaside, picturesque forests and mountains; historical tourist destinations, antiques, ancient remains' Thai
traditions
and culture. All these can be used for tourism promotion in Thailand's tourist markets.
3. Thailand has appropriately developed tourism facilities in accommodation, local transportation,
restaurants, souvenirs and entertainment.
4. The uniqueness of the Thai people, friendliness, helpfulness and smiling faces are suitable for tourism
professions, which deal with service. The right services of international standard with smiles and
consideration
impress tourists who circulate and exchange their impressions and information of Thailand among
friends and acquaintances, which help to publicize the country.
The most important factor is the cooperation among private and public offices and TAT, which results in
the success of Thai tourism promotion and development. The success also derives from the Thai
Government's
sincere interest in tourism industry development and more budgets for TAT to promote tourism.
The renewed campaign, called "Amazing Thailand 2000," is designed to position Thailand as a place of
"escape from a stressful, fast-moving world" where visitors can "replenish life and recharge their
batteries,"
TAT said in the press release.

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The Thailand Grand Sale 2006 is to be organised during 16 June – 15 August, 2006. This year, the
project is under the campaign “Thailand Grand Invitation” and a part of the Sixtieth Anniversary
Celebrations of His Majesty’s Accession to the Throne, which will take place on 9 June, 2006. The
Thailand Grand Sale 2006 is a strategy to promote Thailand as a shopping paradise, as well as, to attract
tourists to travel and do shopping during the low tourism season in Thailand. In accordance with the
Tourism Authority of Thailand (TAT)’s data, approximately 30% of income from international tourists
coming to the country each year is from shopping,being equivalent to more than 100,000 million Baht a
year. TAT has invited many department stores and shops both in Bangkok and other main tourist cities
such as Chiang Mai, Hat Yai, Phuket, Pattaya and Nakhon Ratchasima to participate in the project.
Moreover, cooperation has been created with the Visa International Thailand to organise the promotion
programmes for the domestic and international cardholders throughout the project.
Objectives
1. To attract tourists to travel and purchase tourism products and services during the period outside of
Thailand’s main tourism season.
2. To create Thailand’s image as the shopping centre of Asia, uniquely considered as a Shopping
Paradise among tourists.
3. To encourage the circulation of money within the country and the generation of income to the
provinces.
4. To promote an increase of foreign currency circulation within the country.
5. To respond to the governmental policy in tourism, emphasizing on an increase of tourists’ expenditure
per person per day.
Targets of the Project
1. To increase the amount of products purchased by tourists travelling into the country during the low
season.
2. To increase the number of international tourists from Asia and nearby to travel in Thailand.
3. To create the image of Thailand’s Shopping Street among international tourists.
4. To encourage Thai people to purchase products in Thailand instead of travelling to other countries to
do shopping for those whose quality is of a similar standard.
5. To create the annual grand sale season during these two months to be widely acknowledged among
domestic and international tourists.
CHECK YOUR PROGRESS-V
1. What was the name of tourism promotion project launched in 1987?
2. What was the percentage increase in the number of visitors to Thailand in the year 1987 and 1988?
3. What is the name of tourism campaign launched for the year 2006?
6.8 SELF ASSESSMENT QUESTIONS
1. What is the tourism campaign launched for India called? Do a case study of development of tourism
in India.
2. Do a case study of Malaysia.

LESSON 7
MODES OF TRANSPORT
7.2 DEVELOPMENT OF MEANS OF TRANSPORT

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Transport is the key factor for the development of tourism, which facilitates the movement of
holidaymakers and business travellers. Transport provides the essential link between origin and
destination areas. Tourists travelling abroad spend half their holiday money (about 40%) on travel and
transport and the other half on accommodation and other activities. The most important function of
transport relates to accessibility, which is one of the 3As of tourism components (refer to Unit 1).
Accessibility is the function of distance from tourist market and of transport and communication, which
enables a destination to be reached. Earlier travel was undertaken for trade, commerce and religion.
Advancement in transportation technology brought about road improvement and development of other
means of transport.
The four major modes of transport prevalent in India are: -
-Road Transport
-Rail Transport
-Water Transport
-Air Transport
7.3 ROAD TRANSPORT
Till the beginning of the twentieth century, people travelled almost exclusively by rail and steamship.
With the invention of a new transport medium i.e. the motorcar, the entire shape of the tourism industry
was transformed. It became the most promising and potent means suitable for short and medium
distances. With the growth of a fine network of fast and super fast national and international highway
systems, long journeys were also performed by motorcar and motor coach.
After the Second World War, their use increased manifold. Road transport became increasingly
important in the pursuit of leisure and tourism.Road Transport provides basic infrastructure in
connecting people of remote villages to the mainstream of national life.Mobility can perhaps be one of
the major advantages of road transport over rail and sea transport. The motorcar provides the actual
mobility so that people are no longer anchored to a particular holiday center, as they tended to be when
they mostly travelled by train or ship. Speed is yet another factor which helps tourists to economize on
time. The gradual spread of a network of roads has made hitherto not very accessible areas, easy to get
to.The development of road transport is bringing about a fundamental change in the development of
tourism in the growth of Resorts, Hotels and other services. The automobile provides greater freedom of
travel and choice of destination. The provision of a good, well-linked road network, roadside services
and facilities is a pre-requisite for the development of both domestic and international tourism.
In India, it has a vital role in the opening up of interior and remote areas and is relatively cheaper and
less capital intensive. At the same time it supplements the efficiency of other modes of transport.Indian
roads are classified into the following five categories:
 National Highway: - These are principal arterial routes connecting the union capital with the
state capitals, major parts of various highways.
 State Highways: - State highways connect state capitals with district headquarters, important
cities and towns within a state, the national highways and the highways of adjacent states.
 District Roads: - District roads take the traffic from the main roads to the interior of each district
and to rural areas.
 Classified Village roads connect villages or groups of villages with each other and to the nearest
district road and other main highways.
 Unclassified Village roads: - These are mostly earthen roads. Approximately 49% of traffic is
handled by the private sector, and the rest is mainly through state transport undertakings. The
inter-state bus system is well developed and the quality of buses varies. They fall into the
category of ordinary, semi-deluxe, deluxe and air-conditioned coaches. All information is
available at Bus-stands. Taxis, chauffeur- driven cars, car rental systems;matador type vans are
other services in road transport.
The growth of tourism requires growth of infrastructure in first place.A proper road network is one such
area. It is worth mentioning that Rs. 54,000 crore National Highway Development Project is progressing

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rapidly. In the same breadth Golden Quadrilateral Road network is also progressing which will complete
5846 km. road network by 2007.
7.4 RAIL TRANSPORT
The first regular steam engine passenger run was inaugurated over a one-mile section on the 7.5-mile
track from Canterbury to Whitstable, Kent, England on May 3, 1830.The first self-propelled locomotive,
which ran on rails, was built by Richard Trevithic [1771-1883] at Salop in England.
The first organized rail transport began in the year 1841. A Baptist preacher of Derbyshire on his way to
a temperance society meeting in Leicester was inspired with the idea of engaging a special train to carry
the friends of temperance society from Leicester to Loughborough and back to attend a quarterly
delegate meeting. Thomas Cook gave the idea. A few weeks later, 570 passengers made the journey by
the Midland Counties Railways at a specially reduced fare. And in this way began a new area in Rail
Passenger transport .The railway can be considered one of the most powerful motives for mass travel in
the nineteenth and twentieth centuries.Railways are most suitable for long distance travel. It is a
fascinating experience. It offers the tourist an insight into the large country and its people.
It passes through towns, villages and green vegetation and takes one back into the glorious past. The
recent and interesting development in the field of transportation is the advent of high-speed trains.
7.4.1 Advent of High-Speed Trains:
The energy crisis of 1974 resulted in decrease in use of air travel and road travel. It became expensive to
travel by air and motorcar or coach. The fuel consumption is two to four times more in automobiles and
ten times more in air travel as compared to trains.
Following factors were responsible for the growth of rail transport: -
(i) Fuel consumption per passenger is less in trains.
(ii) Railway stations are located in the heart of cities and train timings are convenient.
(iii) There is growing congestion at airports and highways, as they are unable to handle growth in tourist
arrivals.
Railways are once again assuming important roles. European countries, the United States and Japan are
revolutionizing the rail transport by introducing very high-speed trains.
Europe was the first one to formulate a design for a faster and more comfortable train. London-
Manchester line was electrified in year 1960 at the speed of 160 km per hour.
In the United States of America, Amtrak (American Travel by Track) is offering modernized long
distance services.
In Asia, Japan produced super fast train ‘Hikari Express’ which was popularly known as ‘Bullet Train’
and ran at a speed of 210 km per hour.At Sanyo line, the speed further increased to 260 km per hour.It
was in France that a world record of speed was broken in the year 1981. In September 1981, a new high-
speed train TGV- Trains a Grande Vitesse, began its commercial operation between Paris and Lyon at a
speed of 260 km. per hour.

7.4.2 Indian Railways

In India, railways have made use of technological advancement that has resulted in increased speed,
comfort and carrying capacity. A high-speed train such as Rajdhani Express is running between Delhi-
Calcutta and Delhi-Bombay track at the speed of 120 km per hour. In India, a tourist has to use railway
facilities wherever he goes as not all the places are linked by air. Railways have a great role to play in
stimulating and creating traffic particularly on routes where they can offer speediest and cheapest form
of transport. For long distances also, as air travel is an expensive mode of travel, railways will continue
to remain popular.
Indian Railways is the world’s second largest railways system with staff strength of 1.7 million persons,
which is the largest single employer in the world.It all began with a small journey from Bombay to
Thane on a 34 km track on 16th April 1853.

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Indian railways run its services on three gauges viz. Broad gauge (1.676m), meter gauge (1m) and
narrow gauge (0.76). The railway ministry has now introduced a plan called ‘Unigauge’ to standardize
all three lines to Broad gauge. This will increase the speed of passenger and freight traffic.
About 20% of total track kilometer is electrified. In recent years production of steam locomotives have
been discontinued and replaced by diesel and electric locomotives. Indian Railways have improved their
travel facilities such as: - Round the clock cloak Room, computerized reservation, speed limits ranging
from 100 km to 160 km per hour. The Shatabadi Express is a classic example of high-speed train. For
smooth management the Indian Railways are divided into nine zones with a General Manager in charge
of each six-member Railway Board.
Palace on Wheels:
It is a train introduced in early eighties and consists of state carriages of the former Maharajas and
special saloons used by Viceroys of India. It is very popular among foreign tourists. This is being
diverted to Gujarat as Royal Orient Express and a new 14-coach train, a replica of the old one, has
replaced it, which operates weekly every year from October to April. The ambience is of 18th century
lifestyle of Rajasthani Maharajas. Rajasthan Tourism does the catering.The Indian Railway has decided
to start eight more trains like Palace on Wheels in different parts of India. It leaves Delhi Cantonment
and halts at some of the royal cities including Jaipur, Sawai Madhopur, Chittaurgarh, Udaipur, Jaisalmer,
Jodhpur, Bharatpur and Agra.
Royal Orient Express:
This train leaves from Delhi Cantonment halting at Chittaurgarh,Udaipur, Ahmedabad and Jaipur. The
tariff for Royal Orient Express is US $ 350 per person per night on single occupancy.
Indrail Pass:
The Indian Railways doesn’t pay commission to its agents at domestic level. It charges service-tax from
its clients. Indian Railways pay 10% commission on Indrail Passes sold by travel agents against foreign
exchange.
To encourage its sales, Railways has appointed GSAs in some countries.Tourist can book tickets through
GSAs 360 days in advance.
Metro Railways:
The Indian railways entered into the Metro age with the opening of the Calcutta Metro Railway in 1984-
85. Metro Railways has also opened its section in Delhi. A giant network is in the pipeline, which is
slowly becoming operational one after another. By the time the Commonwealth Games start in Delhi in
2010, the fastest metro will become operational. This is one example of world-class technological
advancement, which India can boast of as a modern tourist product. Every day about 8520 trains carry
more than 13 million passengers over 63,000 kilometers of railway track crisscrossing the country. As
for its speed, the average speed of Shatabadi Express is 140 kilometer per hour. The Indian Railways has
been divided into 16 Zones and 67 Divisions to ensure efficiency and productivity of rail services
through manageable administrative units. To promote tourism at international level ‘Discover India’ and
‘Indrail Passes’ have been introduced. Customer care and user-friendly services are provided. A
Customer Care Institute has also been set up. It has also launched ‘National Rail Vikas Yojna’ at a cost
of Rs. 15,000 crores outside the railway budget as a hallmark of public-private partnership for
strengthening the Golden Quadrilateral routes to provide connectivity to major parts of the country.
CHECK YOUR PROGRESS 1
1. Mr. Lal and his wife have come from Bhopal to visit Delhi. They want to visit Lotus Temple and other
important historical sites around Delhi. They belong to the middle class and are ready to make do with
ordinary
arrangements. Available modes of transport are local buses, luxury coaches of different types or taxis.
Your job is to advise Mr. Lal about the most suitable mode of transport.
2. Who was the person behind the idea of organized tourism and how could he give shape to his idea?
3. What factors are responsible for growth of rail transport?
4. What are the main attractions of Indian Railways, which promote International tourism? Name them.

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7.5 SEA/ WATER TRANSPORT
Travel by ship was the only means to travel overseas till the middle of the 20th century. The earliest type
of boat was the raft, made of grasses, logs and bundles of reeds or other light material tied together. The
ocean shipping originated towards the Mediterranean Sea. Greeks and Romans navigated in the vessels
with sails and established trade and maintained colonies. Ocean shipping flourished since the colonies
depended on their motherland for supplies and export opportunities. First steamship for carrying mail
and passenger was inaugurated in 1840 on the North Atlantic port. The opening of the Suez Canal in
1869 advanced the development of the steamship. The replacement of coal by oil made transport by sea
cheaper. In America number of sailing ships was built which were better than those built in England.
The decade following World War II was the most successful period for the shipping industry. A great
number of people from Britain and later Germany along with other countries used sea transport as
tourists. But when jetliners were introduced on these routes in 1958, the growth of shipping was
reversed. The liners began to leave the service one by one after that.
Finally, some liners diverted their business to cruise trade. The shipping industry has shifted its emphasis
according to needs of the cruise holiday market, especially in the Mediterranean and Caribbean Seas.
Overseas shipping has an important role to play in India’s international trade. The country is 17th in
ranking in world shipping tonnage. Shipping Corporation of India, a public sector undertaking is the
biggest shipping line in the country.
7.5.1 CRUISES
There are only few passenger ship liners left in the world which offer transport these days. The line
voyages are not shifted to cruises. The advancement of travel by vessel is due to the element of
relaxation and entertainment. This has resulted in picking up of the cruise holiday market.
The largest numbers of cruise patrons live in the United States. Some of them are expanding their
capacity for specific demands in certain areas.
North America accounts for 81% of the cruise ships which have casinos and duty free shopping
available on board.India and Indian Ocean have not yet fully exploited cruise business.Tourism through
cruises has excellent future potential. At present, a luxury cruise ship on its round the world journey may
touch an Indian port like Cochin, Madras or Bombay. Passengers take off to Delhi or Agra for
sightseeing of India. By taking them to Goa, Andaman, Sri Lanka and so on, a new cruise market can be
developed.
7.5.2 INLAND WATERWAYS
Lakes, rivers and canals are important sources of fun filled water holidays. Cruises on the Ganges,
Brahamaputra and Hoogly can be profitable tourist attractions. White Water River rafting has already
started picking up in
Haridwar.Cruises became popular to motivate passengers to enjoy the delights of life on sea. Cruises
have everything to offer which a 5 star hotel can. Now a day they provide many opportunities to arrange
various events and celebrations to promote it for tourism.
CHECK YOUR PROGRESS 2
1. Shipping industry is presently coping with the sluggish growth in passenger ship liner? Suggest
certain measures to promote travel by sea.
7.6 AIR TRAVEL
Hindu and Greek mythologies suggest the presence of aero planes in ancient time. In Greek mythology,
Icarus, equipped with wings made of bird feathers held together with wax failed in his attempt to escape
imprisonment because he flew too close to the sun which melted his wax and he was drowned in the sea.
Hindu mythology also mentions Garuda, who was the vehicle of Vishnu. The Ramayana refers to the
Vimana, which brought back Rama to his capital Ayodhya from Lanka. The sixteenth and the
seventeenth centuries were dangerous times for people dreaming of flying. It was considered an act
against the law of God.

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Then there was an accidental discovery of the principle of the balloon.These crude experiments led to
the modern day aviation technology. The credit of developing the modern aeroplane goes to the Wright
Brothers of the United States who made their first flight in Kitty Hawk, in a power-driven aeroplane on
December 17, 1903. Air travel has become a symbol of economy, speed and comfort as compared to
other modes of transport. The passenger rides comfortably, enjoys good food, wine and music. The
aeroplane had a revolutionary impact on tourism from World War II onwards. The modern era can be
termed the mass air travel era. This has been the most important socio-economic phenomenon. For
international travel, air travel is the second most popular mode of transport, which is next to
automobiles. Air travel is attractive because of its speed and range and also as it offers status. In the
international tourism, air travel has made a most valuable contribution. In the year 1952, the two-class
travel was introduced which was made possible by the larger capacity of the new aircrafts. This made
possible the lowering of airfares. This period was also remarkable for ‘package holiday’ around air
transport, the model for most of today’s global tourism.
The beginning of Jet air travel in 1958 added a new dimension to aviation industry in terms of speed,
comfort and efficiency. Thereafter Pan America introduced the Boeing 707 between Paris and New
York.
The most significant development during this period was the development of the concept of ‘inclusive
tours’ in which travellers were carried on charter flights at rates substantially lower than normal services.
The introduction of Jumbo jets in the year 1970 introduced the phenomenon of mass market and
business tourism. The Jumbo jets made air travel more convenient, comfortable and luxurious. Pan Am
and Japan Airlines were among the first to offer to its passengers business class travel. The seats in this
class were wider, giving more space to stretch and relax in comfort, making long distance less
cumbersome.
As the popularity of business class travel grew, another class,Executive Class was introduced in 1975.
New wide-bodied jets like Boeing 747, the Mc Donnel Douglas DC 10, and Airbus A300 are all part of
response to the requirements of the ever-growing transport market. 747 Boeing Jumbo jets offered 800
seats in 1990s, which is another unique event in aviation industry. The sky train concept is the latest
innovation.International Air Transport Association (IATA) regulates international air travel with its head
office in Montreal in Canada. It was established in 1945. IATA regulates the prices of air tickets in
different areas of travel in the world. The IATA decides all international airfares. The respective
governments decide domestic airfares. IATA provides machinery, which makes the worldwide system of
air transportation possible. IATA has been closely associated with the International Civil Aviation
Organization (ICAO), an inter-government agency established also in 1945 that creates world standards
for technical regulation and standardization of civil aviation.
IATA divides the world into three areas commonly known as IATA
Traffic Conference Areas.
Traffic Conference Area 1- The whole of North and South America and islands adjacent thereto.
Traffic Conference Area 2- Europe, Africa and islands adjacent thereto.
Traffic Conference Area 3- Asia and islands adjacent thereto except that portion of Asia already included
in area 2 and islands of Pacific Ocean except those included in Area 1. India is in this traffic area.

7.6.1 SIX FREEDOMS OF AIR

The representatives from Great Britain and United States met in the Bermudas in 1946 to develop a
compromise between their opposing positions.
The agreement reached between them became a model for all bilateral agreements in later years.
The “six freedoms of the air” formulated in Bermudas included:
1. The right to fly across another nation’s territory.
2. The right to land in another country for non-commercial purposes.
3. The right to disembark passengers and cargo that originated in the carrier’s home country, in a foreign
country.

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4. The right to pick up passengers and cargo destined for the carrier’s home country, from a foreign
country.
5. The right to transport passengers and cargo from one foreign country to another foreign country.
6. The right of an airline to carry traffic from a foreign country to the home nation of that airline and
beyond to another foreign country.
7.6.2 PROMOTIONAL FARES
To attract more passengers airlines are offering cheaper promotional fares such as Excursion Fares and
Group fares:
Excursion Fares:
These are provided to the tourists on the basis of round trip journey and have conditions of minimum
and maximum stay, restricted to one airline,cancellation fees, weekend travel purchase and so on. Some
excursions also give seven day to twenty-day advance purchase requirements. These fares are
discounted by twenty to forty per cent below the normal economy fare. The passenger must spend at
least 10 days in the country where he is going. Such restriction is applied to discourage the business
executives from using cheap excursion fares.
Group Fares:
Group fares are applicable to groups and are discounted by 20 to 40 percent.
There are three types of group fares: -
(i) Group Inclusive Tour (GIT) Fare-
Such fares are designed for group travel subject to certain conditions. GIT 4 fare requires at least four
passengers to travel together.
(ii) Incentive Tour Fare: A special fare designed for incentive groups where one organization pays for
the entire trip.
(iii) Affinity Group Fare: This fare is used when a corporation or an organization pays for its
employees or members to travel to a meeting, a convention or a conference.
The airlines have two basic types of services- scheduled and chartered services. While the scheduled
services operate as per timetable, chartered services operate like taxi services. Chartered flights are able
to offer cheaper fares because they carry fully loaded flights both ways.
Aviation achievements are impressive and even more remarkable considering the brief time span
involved.
On the operational side, Indian Airlines (government owned) and some other private airlines like Spice
jet, Jet airway, Kingfisher, Air Deccan and so on are providing domestic services. Air India provides
international air
services. Apart from this, there are air taxies, which provide non-scheduled air services. The future of
Air travel is quite bright. Boeing Aircraft Company of USA predicts that travel by air by 2010 will
increase about two times more than its present size.
CHECK YOUR PROGRESS 3
1. Who regulates International air travel?
2. How is world air traffic divided into traffic conference areas?
3. Name four Domestic Airlines of India?
7.9 KEY WORDS
Accessibility, Communication, Infrastructure, Mobility, Highways, District roads, Classified Village
Roads, Unclassified Village Roads, Golden Quadrilateral Road Network, Locomotive, Thomas Cook,
High-speed Trains, Amtrak, Bullet Trains, Palace on Wheels, Indrail Passes, Metro Rail, Ocean
Shipping, Ship Liners, Cruises, Aviation, Jet Air Travel, IATA, Principle of Ballooning, Traffic
Conference Areas, Freedom of Air,Excursion Fares, Group Fares.
7.10 GLOSSARY
GSA:A General Sales Agent (GSA) who represents an airline or a hotel as its sole sales agent in a given
area.

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Charter:Specially hired aircraft that takes a group of people on a package rate to a certain destination,
and then flies them back is a charter. It works out cheaper because it is generally fully loaded both ways.
Itinerary:
It is designated to identify all portions of the travel from the original point to the final destination. It
includes all the stopping points en route, along with transportation, accommodation and other services
on a traveller’s trip.
7.11 SELF- ASSESSMENT QUESTIONS
1 What is the one major advantage of road transport in comparison to rail?And water transport? What
are the other factors responsible for the growth of road transport?
2. How has the advent of high-speed trains contributed to tourism industry?
3. What are the factors responsible for the growth of air travel in tourism?
4. Mention the Six Air Freedoms.

LESSON 8
ACCOMMODATION

8.2 HISTORY OF THE HOTEL INDUSTRY

Until about the middle of the nineteenth century, a bulk of the journeys was undertaken was for business
and vocational reasons by road and within the boundaries of countries. The volume of travel was
relatively small and was confined to a fraction of the rich segment of the population in any country.
India is known as a friendly place for guests. “Atithi Devo Bhava” or “Guest is God” has been the
slogan since time immemorial. There were no hotels in the ancient times and needs of travellers for food
and accommodation were taken care by householders. Kings built Dharamshalas, constructed roads,
planted trees and arranged for drinking water. Muslim rulers built Sarais. In USA Inns took the name of
taverns.
As civilization and industrialization took place, establishment of accommodation took place. British
were the first one to contribute to this sector. ‘Victory hotel’ and ‘Albion hotel’ were perhaps the first to
acquire the name ‘Hotel in India’.
The first western style hotel was opened by Pallongee Pestonjee in 1840 with the name ‘British Hotel’ in
Mumbai. The twentieth century was a turning point in the history of the hotel industry in India. Big
business owners and corporate owners entered the accommodation sector. In 1902, Indian Hotel
Company was incorporated and in 1904, J. N. Tata opened the Taj Hotel in Mumbai. Thereafter a
number of other hotels were opened such as Ajanta, New Woodland, Grand Hotel, Associated Hotel of
India Ltd., East India Hotels Ltd., Oberoi Hotels, and Wild Flower Hall and so on.
After independence many private and public sector entrepreneurs entered into the accommodation
business such as Air India, Indian Tourism Development Corporation, Indian Tobacco Company
Limited, and Clarks Group of Hotels and so on.
Definition of a Hotel:
A hotel provides accommodation, meals and refreshment for irregular periods of time for those who may
reserve their accommodation either in advance or on the premises. Hotel is defined in several ways: “A
place which supplies board and lodging” or “A place for the entertainment of the travellers”.
A hotel is an institution or a building in which lodging, meals and other services are provided for
travellers. A hotel also provides amenities like Fridge and television and facilities like room services,
laundry services, valet, shops, auto rentals, airline ticketing, reservation, banking and postal services. “A
hotel is a world within a world with its peculiar movements and fashions”. A hotel is a fixed immobile
installation. Its products and services cannot move to tourists. It is an open and unique system where the
tourist moves in, consumes the product and returns with an intangible product.
8.3 REGULATORY FRAMEWORK OF HOTEL INDUSTRY
At the international level, the International Hotel Association (IHA) was founded in London in 1946. It
has its headquarters in Paris now. It brings under its network thousands of international hotels and

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individual hoteliers from all over the world. It deals with various aspects of hotel management and links
them together. It tries to unite the hotel associations of all countries and provides opportunities to discuss
and solve their problems. It also trains young workers at IHA hotels. It publishes the International Hotel
Guide and International Hotel Review every year.
At the national level, the Federation of Hotel and Restaurant Association of India (FHRAI) regulates the
hotel industry in India. It was founded in 1954. The Federation caters to various needs of the industry. It
establishes link with Government and provides relief in day to day working of hotels. It also carries out
surveys and research studies for the Hotel industry.
8.4 TYPES OF ACCOMMODATION
According to physical features the accommodation industry can be broadly divided into three types:
(i) Traditional/ Hotel Accommodation: Traditional accommodation includes hotels and motels. They
can further be subdivided into various types.
(ii) Supplementary Accommodation: This includes premises, which offer accommodation but not
necessarily hotel services. In the Indian context it includes bungalows, government rest houses, and
youth hostels and so on.
(iii) New accommodation Concepts: These are new concepts of accommodation, which have come into
being. It has the combination of both the types discussed earlier. They include Condominiums, Time-
sharing, Pensions, Paradors, Camping grounds, Villas, Eurotel and Apart hotels.
Accommodation Industry

International Hotel:International hotels are the modern western style hotels in almost all metropolitan
and other big cities as well as principal tourist centers. These hotels are luxury hotels and are classified
on the basis of internationally accepted system of classification. The hotels are placed in star categories.
There are five such categories ranging from 5 stars to one star depending upon the facilities and services
provided.
Commercial Hotels:The commercial hotels cater primarily to the individual travellers as compared to
international hotel where the focus is on the group travel.Most of the commercial hotels receive the

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travellers who are there on business. They are situated in important commercial and industrial centers or
in big towns or cities. Private owners run these hotels and their success depends on their efficiency and
kind of services provided.
Resorts:Resort hotels cater to the need of holidaymaker, and those tourists who travel for health or
change of climate. Resort hotels are located near the sea, mountains and other areas of natural beauty.
Rest, relaxation and entertainment are the key factors around which resorts are built. The type of
services and amenities located in resort properties include recreation facilities such as a swimming pool,
golf course, tennis courts, skiing,boating, surf riding and other various indoor sports. Other important
amenities include coffee shops, restaurants, conference rooms, lounge,shopping arcade and
entertainment.Resort can be classified on the basis of climate and topography such as summer, winter,
and hill, Health Resorts, Forest Resorts and Beach Resorts.

Roatel:
Roatel is an air-conditioned coach. It provides sleeping accommodation, food and transport all in one.
The sleeping coach has rooms with beds in three tiers besides a cupboard for clothes. It provides each
passenger with bedding, reading light, a shelf for articles, personal mirror. A kitchen with sink,
cupboards, and refrigerators get attached to this coach.
Floating Hotels:
This hotel facility is provided on the surface of water on sea,river or lake. It has excellently finished
drawing room, sitting, dining and sleeping rooms with wall-to-wall carpeting. The houseboats of
Kashmir are examples of Floating Hotels. They are classified into various categories viz. Deluxe, A, B,
C and D and are rated accordingly. These are made of Cedar wood. The designed terrace can serve as an
open-air cocktail terrace or a place for viewing the morning sunrise. All modern amenities like, awell-
equipped kitchen, telephone, TV, video etc are to be found in the houseboat.
Heritage Hotels:
A new classification standard of heritage hotel has been introduced to cover hotels in palaces, havelies,
castles, forts and residences built prior to 1950. In India, this type of hotel is extremely popular with
foreign tourists. The hotel should have at least fifteen rooms. The traditional structure reflects the
ambience and lifestyle of kings and Nawabs of bygone era. This scheme was introduced to save these
properties from decaying due to disuse. This way they have been made financially viable as they belong
to the approved sector and get proper care besides adding to the capacity of accommodation sector.
These hotels have adequate sporting facilities, continental and traditional cuisine, other facilities like
parking facilities, cloakrooms having modern facilities and lobby or lounge having furniture of high
standard. There should be a reception, cash and information counter attended by trained and experienced
personnel, well maintained dining and bar room and the staff must understand English.
Motels:
They are the same as tourist hotels except that they are geared to accommodate the motor traveling
public. According to Webster “Motel is a building or institution providing lodging, meals and services to
the public.” It offers its services for sale, individually or in various combinations.Motel is an
abbreviation of the phrase ‘Antomata Motel’. It is a type of accommodation inexpensive for its category
and easy to manage.This is the accommodation usually found by the side of highways.Reception is
greatly simplified. The provision of a close circuit television permits contact between guest and front
office-staff. Money operations, the checking of passport and registration are fully mechanized. Services
are efficient with the degree of personal attention. It gets its image the way in which it portrays itself.
Tourist Cabinets or Camps:
It consists of frame cottages. The cottages are rented at low rates. They range in size from 5 to 12 units.
They provide bed and shelter.
Tourist Court:

66
It offers facilities for private bath, car shelters and some times cooking facilities. These are situated at
the roadside, generally on the highway on the outskirts of town or in resort areas. Many of them now
have a restaurant, swimming pool and air-conditioned facilities.
Roadside Motels or Highway Motels:
These are situated outside the towns in the countryside along with the main highways and preferably in
an important road junction.
Resort Properties:
Florida, California, Miami, Arizona have a wide variety of such accommodations. This type of Motel
enables many more travellers to reach the resort area by motorcar.
City Motel and Motor Motels:
These motels are built within the limits of the city. The limitation of suitable land area and the increased
value makes it more difficult to provide parking space. They have a basement, ground floor,first floor
and adjoining area for parking facilities. In these motels one can find all the facilities plus convenient
parking.

Supplementary Accommodation:
All establishments under this heading are designed to offer accommodation and meals in return for cash
payment per day spent on the basis of services provided. This type of accommodation has following
advantages:
-More reasonable prices.
-More freedom with regard to organization of the day.
-A close approach to the natural environment.
-Social contact and amusement.
Sarais or Inns:
Kings built the Sarais on both sides of the roads in India where arrangements are made for food and
shelter for the convenience of pilgrims,merchants and state officials.
Tourist Bungalows:
These bungalows are situated at tourist centers for the benefit of tourists and are maintained moderately.
These establishments cater to the middle class tourists and budget travellers and also the youth of the
country and those coming from overseas. These bungalows provide the nucleus of the tourism
infrastructure for the domestic tourists and facilities suitable to meet the requirements of the average
Indian tourist and the budget travellers.
Dak Bungalows:
These are set up primarily for officials travelling on government duty. These are small rest houses,
having limited number of rooms and situated in places important from the point view of government’s
working. They are moderately furnished and are offered at a very low cost.
Circuit House:
Compared to tourist bungalows, these houses are superior as regard to the facilities offered. These are
meant for senior government officials. The accommodation in these houses is provided to the bonafide
tourists possessing ‘tourist card’. There are big halls with several individual beds. Each bed is provided
with a rack and a pigeonhole, which can be locked. Guests can use them for their personal belongings
and valuables. The bathrooms and toilets are common. Their charges are nominal and there are more
suitable for the student’s groups. They do not provide food.
Railway Retiring Rooms:These are owned by railway and are situated within the railway station.
Accommodation is provided to bonafide railway passengers holding confirmed and current tickets. The
rates charged by these establishments are fixed and reasonable. They are moderately furnished rooms
with attached bath and toilets.
Traveller’s Lodge:
These are modest hotels situated in remote places of tourist interest. The rooms in these lodges are
moderately furnished but they are cozy and air-conditioned. These are self-sufficient establishments as it

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is not possible for the guests to go to the far-off town or city for the purchase of the things of daily
requirement. They provide a dining hall with fixed or slightly fixed menu and daily necessities of life
like oil, comb, towel, tea and coffee.
Boarding House:
These are the establishments, which provide accommodation usually with meals at definite period of
time, week or month. Their facilities are restricted for use by resident guests. It is a small enterprise
intended for clients staying for a certain duration. As a rule accommodation in these units has to be
arranged in advance. These are also called guesthouses.
Paying Guest Accommodation:
It is a British concept. The paying guest accommodation system has become popular in India also. Many
foreign tourists love it because it gives them an opportunity to interact with Indian families. The benefit
of this system is that it is quick to respond to seasonal demands. It is very popular in Rajasthan and Goa.
Youth Hostels:
The concept was introduced in 1900. A youth hostel is defined as a building, which offers clean, simple,
inexpensive shelter to young people experiencing their own country or the world, travelling
independently or in groups on holiday or for educational purposes. It is a place where young people of
different social background and nationalities can meet and come to know each other. The comfort in
modest, the stay is limited and price is low.Youth hostels are created and controlled by non-commercial
organization whose aim is the development of youth tourism.
On the international scale, the hostel movement has gained momentum all over the world. The youth
hostels are so located as to offer complete package tour of a country covering monuments, places of
historical and cultural importance. These are equipped to accommodate young men and woman, tourists
who travel on foot or bicycle or other means of locomotives and who, at very little cost, are provided
with a place to sleep, eat or even to make their own meal and then clean up.
Forest Lodges:
The rest houses at sanctuaries, which fill in the shortage of accommodation at such places, are called
Forest Lodges. The state concerned makes land available free of cost, provides water and electricity
connections and also undertake supporting construction for staff quarters, garbage and dormitory for
drivers. Their location is finalized with the concerned ministry and State Forest Department. ITDC is
entrusted with the responsibility for the management of all the forest lodges.
These lodges are very popular among nature tourists who love wildlife as they provide a clear view of
the forests to the residents from the guest rooms. Examples of forest lodges are Kaziranga Wild Life
Sanctuary in Assam, Bharatpur Sanctuary in Rajasthan and others
Hospices:
These are the type of accommodation used by persons who travel mainly for religion. The owner of the
establishment offers accommodation to pilgrims who could find a place to sleep, a fire to keep them
warm and something to eat.
New Accommodation Concepts:
Most of these are based on American and European concepts. They are neither totally traditional nor
supplementary accommodation.
Condominiums:
They are a recent innovation. It involves joint ownership of a complex. These are hotels with
apartments. The condominium units are sold to undivided owners, who give it on contract basis to
Management Company to operate the hotel and rent the space to visiting tourists. The management
company receives fees for the services. At the end of the year, they share the profit or loss with the
owners of the condominiums.Family tourists prefer this type of accommodation as they provide enough
space and facility to cook and they are also economical.
Time Sharing:
Time-sharing is a specialized condominium ownership. This concept came from the Europe. This system
started when people experienced difficulties in getting reservations at a resort of their choice at their

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preferred time. The people started prepaying. If the tourist wants to spend 2 weeks in a particular place
for next 10 years,he can get this guaranteed accommodation by paying much less than the usual charges.
This time-sharing can also be exchanged by selling this to their friends if in a particular year they don’t
want to do so.In India Dalmia Resorts, Sterling Resorts and others are offering this facility.
All-Suite Hotels:
This is the newest concept in hotel keeping. These hotels have suites, which have the same charges as
any deluxe room in a hotel. This concept has brought units within the range of junior executives. They
are provided only the basic services. Private caterers provide restaurant services and not the
management of the hotel. These services are provided in India by Sheraton, Hilton, Hyatt and Radisson
and others.
Pensions:
These are found in Europe and USA. These are accommodations with facilities owned and run by a
family usually living in the same building. Pensions are known as residential hotels. These were
developed in the USA when people discovered that permanent living in hotels has many advantages.
These are mostly available in cities. They play an important role in accommodating tourists specially
those with a limited budget.
Paradors:
This is Spanish concept. These are castles, convents and monasteries converted into hotels by the
government.Paradors are similar to Palaces in Rajasthan.
Camping Grounds/Tourist Camps:
These are usually located within the cities in the open spaces.They provide facilities for parking, tent
pitching, water, electricity, toilet etc.These are equipped to receive mobile form of accommodation used
by tourists who sleep in the tents and enjoy the natural environment. Campers have to pay an admission
fees.
In the sixties when overland traffic from Europe to India via the Asian Highway was considerable,
Government of India had set up camping sites in major cities. Now domestic tourists use these.
Farm Houses:These are very popular in U.K and India. Tourists who are interested in healthy food and
natural outdoor life prefer these. Big farmers build farmhouses on the land used for cultivation and
package it to tourists for extra income. In Denmark, it has been quite successful in packaging farm
holidays through travel agents for international market.
Villas/ Chalet:These are single-family houses for sale or rent to tourists or holidaymakers.
Eurotel:This type of accommodation is much common with apartment houses and its characteristic
feature is that the co-owners can use another apartment in another places and another building through
exchange system agreed upon in advance.
Apart hotel:This concept was first developed in Spain. These buildings are hotels because hotel
services are provided and yet they are not hotels because the accommodation consists of an apartment,
which may be sold if desired. The purchaser of the apartment gets the full services of a hotel during the
periods these are not self occupied, can add their apartments to the pool of hotel accommodation and
thus derive income from the hotel.
CHECK YOUR PROGRESS 1
1. Organize the following into Traditional, Supplementary and New Concept accommodation: -
Dak Bungalows Resort Camping Ground Roatel Apart hotels Youth Hostels

8.5 CATEGORISATION OF HOTELS IN INDIA

Accommodation is the most important component of tourism.Tourists need certain regulations and
standardization of the services they get for a price. Categorization separates accommodation into
different classes.
There has to be a standard method of classifying them into different categories. Different countries have
different systems of classification.Different stars ranging from 1 star to 5 stars deluxe signify different
categories. Categorizing one hotel into a particular group is not easy because of its diversity.

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Government of India, Department of Tourism is following the widely accepted categorization. A
committee is constituted by the Department of Tourism, which has seven members. Government of India
appoints chairman, there are members each from Federation of Hotels and Restaurant Association of
India (FHRAI), Travel Agents Association of India (TAAI),Indian Association of Tour Operations
(IATO), Director of Tourism of that State, Principal of Institute of Hotel Management of that state and
the Director of India Tourist Office is also a member. The Hotels apply for classification with fees. The
committee gives advance notice before inspecting these hotels.
If they fit into the criteria, they are given the stars. This remains valid for next three years.
The following are the facilities checked by the committee members:
1 star: The establishment applying for one star should have:
 Minimum 10 rooms.
 Restaurant is not necessary.
 One Bathroom for two rooms.

2 star:
 Minimum 10 rooms.
 Every room should have an attached bathroom.
 Restaurant not necessary.
 There should be a place to take food.
3 star:
 Minimum 20 rooms.
 All the public areas should have air conditioning.
 At least 50 percent rooms should be air-conditioned.
 A few shops selling necessities for tourists (Stationery, Flowers etc.)
 Restaurants should be conditional?
4 star:
 Minimum 25 rooms.
 All rooms should be air-conditioned.
 The public areas should be air-conditioned.
 There should be more than one restaurant.
 Shopping Arcade with a florist and drycleaner.
5 star:
 Minimum 25 rooms.
 All rooms should be air-conditioned.
 Wall to wall carpeting.
 Entire public area should be air-conditioned.
 There should be at least two specialty restaurants.
 Shopping arcade, florist and drycleaner.
 Swimming pool of dimension 10*3 meter.
 Facility to use telephones.
Further, many hotels don’t apply for classification even when they are providing facilities similar as
these classified hotels provide. They can be called unclassified hotels.
8.6 HOTEL ROOM TYPES, LOCATION AND RATES
In the travel industry, it is very important for Tour Operators or planners to select the right type of
accommodation for his client or tourist. The type of room, location and room rates are the prime factors,
which are considered while planning a tour.
Type of Room:
Hotels provide different types of rooms at different rates, which are as follows:
 Deluxe Room- With extra facilities.
 Suite- Separate rooms for living and sleeping.

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  Standard Room: Located in less convenient sections.
 Economy/ Budget room- Smaller than other rooms.
Bedding Types:
 King Bed- Size of Bed is 86II*80II
 Queen Bed- Size 60II*75II
 Standard Bed-54II*75II
 Twin Bed- 39II*75II
Room Rates:
Room rates are usually based on the location of room such as pool side, beach front, market front, ocean
view, hill view and so on. Taxes also vary according to the state. Within the same hotel, price charged
may vary depending on the season. Mostly in the peak season the hotels charge high rates and in the lean
season they charge low rates.

Following are the different room rates:

 Flat Rate: Flat rate is a discounted rate offered to a group at certain times of the year.
 Rack Rate- Standard rate charged by hotel based on type of room and bedding.
 Group Rate- Discounted rate based on the pre-set number of rooms.
 Package Rate- Rate for complete package such as New Year’s Eve package.
 Wholesale Rate- Given to tour operators who buy the rooms in bulk.
 Special Rate- Promotional rate offered to corporate clients, government employees, repeats
customers and so on.
 Family Rate- Free accommodation to the children with parents.
 Run of the House Rate- Special rate to be offered for the best room available at the time of
check-in.

Reservation of Accommodation:In hotel management, reservation is a very important function. This is

also known as selling accommodations. These hotels rely on their representatives, reservation offices in
different locations, travel agents,airlines, cruise companies and tour operators.Tour operators make the
reservation on the basis of information about number of people in a particular tour, number of rooms
required,type of room desired, client preference, number of children, arrival date,departure date and
other requirements.
Accommodation should be according to the itinerary planning.It is hotel management’s responsibility to
honour confirmed reservations made by the tour planner. Many tour companies are using Computer
Reservation System (CRS) for the reservation. It produces the list of hotels in a specified city with room
types and rates available in each hotel for the specified period. The rules and conditions applicable can
also be obtained through the Computer. Sheraton Group of Hotels first used this in 1956.
Today, all the hotels have their own CRS. Another new development is the use of Internet. Tour
operators can see what the accommodations looks like on screen.
Thereafter, the tour operator has to make payments on behalf of his clients. The client doesn’t have to
pay directly to hotel management. He simply shows the hotel voucher. The tour companies are entitled
for commission on reservation, which may vary from city to city, and type of hotel property.
8.7 HOTEL ORGANISATION
Hotels of today have come of age. They are major establishments.They are looked after by professional
managers and trained staff. Smallest details have to be worked out for the satisfaction of clients. This has
led the hotel industry to organize them in an efficient way. There are various departments in a modern
hotel. These are following:

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Rooms:
Rooms provide an accommodation function. These include services of front desk, reception, uniformed
services- bellboys who handle luggage, parking and house keeping.Rooms department also looks after
Accounting and control of Administration department.
Food and Beverage:
This department is the prime factor in the success of any hotel.Dinner for conventions, meetings and
marriages and other functions are the responsibility of this department. This department also manages
bars.
House-Keeping:This department looks after the servicing of guest rooms-cleaning of bedrooms,
staircases, public areas, floral arrangements and so on. In some hotels laundry is part of this department
while in others it is a separate department.
Hotel Marketing:
Hotel room is a perishable commodity, which should be kept in mind while marketing a hotel product.
He must consider following:
 Research and analysis.
 Establish USP (Unique selling proposition)
 Determine objectives and strategies.
 Advertise.
 Continuous market research and monitoring the progress.
Effective public relations are required with the local press.Satisfaction of consumer needs is the key
factor in the success of hotel. The whole approach needs to be consumer oriented rather than market
oriented.
8.8 IMPACT OF HOTEL INDUSTRY
Henry Ford of Modern hotels says, “The guest is always right”This statement signifies the challenge
being faced by hotel professionals to provide services that meet the demands of the guests. This means
providing goods and services to travellers where travel and tourism is a part of big business.
The importance of tourism and hotel industry cannot be underestimated. According to W.T.O. (World
Tourism Organization), tourism is the world’s largest industry, ahead of automobiles and petroleum
products.

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There are more than 20 million rooms worldwide in the accommodation sector. This is likely to increase
by 4% annually. There are 100 budget hotel projects, which will add 10,000 hotel rooms in the organized
sector. This would attract investment of Rs.10000 cores and generate direct employment to 30,000
people and indirect employment to nine times this number, in related activities.
It has been rightly stated, “No Hotel, No Tourism”. The expansion of tourism will bring about the
development of hotel industry. Of the foreign exchange earned to the tune of Rs. 30,000 crores, 50%
belongs to the hotel industry.
The Bhagwati Committee said it would offer nine times employment to the number of persons directly
employed in the hotels. The hotel industry has direct impact on regional and rural development. Cottage
industry is directly benefited from this by promoting handloom, carpet, handicrafts and so on.Hotel
industry also has an impact on the socio-cultural environment.The tourists get attracted to the art,
festivals, folk dances and culture of the host region. This helps generate revenue for the hotel industry as
well as the region where tourists take special interest in the art and culture.Inn keeping and hotel keeping
are two important parts of the evolutionary process, which followed the development of passenger
transportation. The inns were located along the roadside and at the traffic terminal. Similarly Railways
created a demand for accommodation at terminals. Shipping ports and Air transport too have an
influence on the location of accommodation facilities.
As the railways in the nineteenth century found it necessary to build hotels to supplement its main
business, so did the airlines of twentieth and twenty-first centuries. Major hotel chains are subsidiaries
of airlines. For example KLM owns Hilton International, Air France owns Meridian Hotels and Air India
owns Centaur Hotels.
At present there are six Groups or Chains of Hotels in India, namely:
1. The Ashok Hotel Chain run by Indian Tourism Development Corporation (ITDC)
2. The Welcome Group – Indian Tobacco Company (ITC)
3. Taj Group of Hotels – Indian Hotel Company Ltd.
4. Oberoi Group of Hotels –The East India Company Ltd.
5. Centaur Group – Hotel Corporation of India (Air India)
6. Clark Group
Since the liberalization of the economy in the 1990s, Hotel industry has also grown fast. It is now in the
position to build quality hotels. Rules for foreign collaboration have also been liberalized. Foreign
investors can invest up to 51% of the equity in foreign exchange.
Number of approved hotels in classified categories has increased. These are not the only accommodation
that is being offered. Unclassified hotels, which are members of Federation of Hotels and Restaurants
Association of India (FHRAI), too have added to the number of hotels. FHRAI too has minimum
standards for its membership entitlement. As India is hosting 2010 Commonwealth Games, the country
is gearing up for the demand for accommodation, which will increase manifold. Government too has to
play an important role in policy development to promote this vital sector.
CHECK YOUR PROGRESS 2
1. A motoring family of four is driving to Jaipur from Delhi. It starts raining heavily and they decide to
stop at a motel en-route. How should the receptionist of motel handle the situation when confronted by
the drenched family?
2. Organize the following operations under Primary, Secondary and Supporting services department: -
(i) Maintenance of energy (ii) Valeting (iii) Food and Beverages (iv) Marketing (v) Laundry
3. While the tour planner is selecting Accommodation for his client, what factors should he keep in
mind?
8.10 KEY WORDS
Traditional Accommodation, Supplementary Accommodation, New Concept Accommodation, Resort,
Roatel, Motel, Tourist Court, Circuit House, Dak Bungalows, Pensions, Paradors, Eurotel, Type of
Room,Bedding Types, Room Rate, Computer Reservation System, Hotel Operation, Food & Beverage,
Valeting, House-Keeping, Hotel Marketing,Chain of Hotels.

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8.11 GLOSSARY
American Plan:
The guest pays for bed and board, or in other words for accommodation and all meals. In modified
American plan the guest pays for accommodation with breakfast and dinner (lunch, own arrangements).
European Plan:
The guest pays solely for rooms and services, not for meals. One pays for every meal.

LESSON 9
BASICS OF TICKETING

9.2 TICKETING TERMINOLOGY

There are certain elementary terminologies, which should be understood before studying fare
construction:
Blocking: Blocking means that a ticket has been blocked for reservation. There is time allowed to the
passenger to get his ticket booked within the stipulated time. If the passenger gets his tickets booked
within this time, he actually purchases the ticket with the actual status stated on ticket. If he doesn’t
book the ticket within the stipulated time, his blocking stands cancelled. The difference between the
blocking and ticketing is that blocking may not result in ticketing sometimes but ticketing automatically
results in blocking also.
Routing: Routing means a logical sequence of point-to-point destinations. It consists of carriers, class of
service and cities served. For example:

Itinerary:
Itinerary plays an important part in the fare construction. It is defined as all portions of the passenger’s
reservation from original to final destination. It may also include surface transportation. The different
types of itineraries are:

One-way trip: Any journey, which is not a complete, round or circle trip entirely by air. For example,

Round trip: It is a travel from one point to another and returnsto the point of origin by the same air
route or a different air route from that used for outbound travel. For example,

Circle trip: It means a journey with that return to the point of departure without retracing its route. It is
travel from point and return to the same point by a continuous circuitous air route.

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Round the world Trip: These are the circle trips and apply to continuous eastbound or westbound
travel commencing from and returning to the same point via both east and west. The fare is constructed
in same way as a circle trip.

Open jaw: It is essentially of a round or circle trip nature but has a segment not carried by air. For
example,

The difference here is that arrival point is different from departure point. Usually it has a surface
segment.
 Airline Itinerary:
An airline itinerary identifies the origin point, stopping points, connecting points and destination points
of a flight. An airline itinerary is of two types- International and Domestic. An airline itinerary, which
has points within India, is called a domestic itinerary and if the points are outside India, it is known an
international air itinerary. Two things are required to plan airline itinerary – timetables and airline guide.
 Online service – It means the segment of the same airline. For example, AI to AI
 Offline Service – It means segments of differing airline. For example, AI to BA
 Interline service –It means cooperative understanding between airlines and/or reciprocal
acceptance of tickets between them.
 Local fare – It is a fare for on-line transportation.
 Joint fare – It is a fare for off line or interlines transportation.
 Connections – A required carrier change at an intermediate point between point of departure and
the point of destination. In order to enable the passenger to connect, he must depart that
intermediate city within four hours of arrival on first flight on which the space is available.
 Intermediate Stop – It is a point of landing between two points from original point to
destination point, which does not require deplaning by the passenger.
 Stop Over – It means a stop of usually 24 hours or more by the passenger along the route of a
journey according to agreement with the carrier. It is equal to a break in the trip.
 Non-Stop – It means point-to-point flight with no intermediate stops.
 Direct – It means point-to-point flight with any number of intermediate stops.

AIRLINE REGULATIONS
It is necessary for a travel agent to use several airlines to complete a trip. It is essential for him to know
the geographical region and major route structure because no airline services every city. Airlines and
travel agencies should have a complete set of all tariffs with latest revisions at all offices. India doesn’t
have very long history of airline regulations before 1952- 53, when the Air India and Indian Airlines Act
were passed. The Civil Aviation Authority established that airlines should be regulated, passengers

75
should be charged reasonably and their handling should be safe and uniform. Each airline has to
convince the Civil Aviation Authority that it is capable of performing the transportation and provide
services convenient to public, to get the certificate from Authority.
There is a tariff structure or guidelines to establish passenger rules and fares. Once a fare is approved
between two cities, that becomes the only legal fare the airline can charge. Airlines and travel agencies
must have complete
copy of all tariffs at all offices where air tickets are being sold. Also it is essential to review and revise
them promptly.

AIRLINE GEOGRAPHY
Airline geography is the study of various cities, airports and countries served by the airlines. These are
of two types – International airline geography and Domestic airline geography. The domestic geography
deals with Eastern, Western, Northern, and Southern regions of India, whereas international airline
geography is concerned with all other areas of the world. Airline geography is based on the standards set
by the International Air Transport Association (IATA). We can imagine the difficulties that airlines might
be facing with personnel from more than 210 different airlines using different rules, regulations and
languages. To maintain proper coordination there is a need for standardization, which is provided by
IATA. IATA provides definitions, codes, spelling created by International Standards Organization (ISO),
which should be understood by Travel agents.
DESTINATION COUNTRIES, CITIES AND AIRLINE CODES
In airline geography, all countries cities and airports have been given three letters ISO code by IATA.
Table 9.1 gives examples of city codes
Cities / Countries and their Codes
City / Country Code
India IND
London LON
Sydney SYD
Hong Kong HKG
Bombay BOM
Toronto YYZ
Tokyo TYO
Delhi DEL
Mexico City MEX
Madrid MAD
Rome ROM
Frankfurt FRA
The airline code number forms the first three digits of the document number shown on the passenger
ticket and excess baggage ticket. Some major international carrier and Airline codes are given in Table
9.2.

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9.6 THE HUB AND SPOKE SYSTEM
It is very expensive for an airline to purchase new aircrafts to provide point- to- point flights on their
own. Adopting ‘hub and spoke’ system solves this problem. This can be explained with an example of
wheel with numerous spokes leading from a hub or centre. The passengers are transported to a central
point, called a ‘hub’, to board an aircraft for the final destination. For example, Delhi and Mumbai are
Hubs for Air India’s International flights from Delhi to London and Mumbai to Bangkok. For passengers
staying in Jaipur and Bangalore, Indian Airlines is acting as the spoke between Jaipur to Delhi and
Bangalore to Mumbai.
Following are the benefits of this system.
- Caters to serve maximum passengers.
- Enables airlines to expand their activities without much investment for aircrafts.
- Retains competitive fare structure.
- Promotes better relationships.
- Generates more income.
9.7 AIRFARE CONSTRUCTION
This requires agency staff to have a basic knowledge of airfares; different prices and rates essential to
serve the clients. First he should know what is an Airfare?

In other words, it is a price paid to acquire the right to use an airline seat in a specific aircraft and within
a prescribed period. Airfares are of two types- International and Domestic airfare. Domestic airfare is
applicable only after the approval from Director General of Civil Aviation Airfare is the price paid by a
client to purchase an airline seat.
(DGCA). International airfares are applicable only after the approval from International Air Transport
Association (IATA), which are based on bilateral agreements between the countries. Airfare is based on
three main factors:
Class of Service
Fare Basis
Fare Rules

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CLASS OF SERVICE
Airlines offer various classes of service. The fare and the cabin in which the passenger will sit determine
the class of service in an airline. Broadly they can be divided into two- (1) First Class (2) Coach Class.
In the first class cabin, seats are usually larger and more comfortable. Passengers in coach cabin get
standard level of service.
In many airlines there may be third cabin known as ‘Business’ class or it may be known by some other
name – Executive, Ambassador or so on. Service in the cabin is superior to coach but inferior to First
Class. First Class may also be known as ‘Premium Class’. There may be sub-classes within a class,
which may be indicated by different booking codes. This is shown in Figure 9.3.

Depending upon restrictions, route and carrier, the first class fare may be 35- 50 % higher than the
standard coach and Business class may be 20-35 % higher than coach class.
9.7.2 FARE BASIS
It is determined by the class of service and other factors such as the destination, season, day of the week,
type of trip, advance purchase, length of stay, etc. Each fare basis has one primary code and one and
more secondary code. Primary Codes are booking codes, which represent the class of the services being
used. Table 9.4 shows the Primary codes of the Fare basis.

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Secondary codes make each fare basis distinct from other fare bases with the same primary code. For
example ‘AP’ indicates advance purchaser,
‘IT’ indicates inclusive tour fare, and ‘Z’ indicates youth fare. Table 9.5 shows Secondary fare codes:

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For example, FAP 5 where F= First Class, AP= Advance purchaser, indicates travel in First class and 5
days advance purchase i.e., the ticket to be purchased at least 5 days before departure. In some cases, the
booking code is the same as the fare basis. For example, F is for first class, Y is for economy or coach
class. Different airlines
use various primary codes for the same class. For example, ‘C’ class is same on some airline as ‘J’ class
is for another airline. Number may be used to indicate days of week. For example, Y5 indicate a coach
fare valid only for departure on Friday. One or two letters may indicate weekday, for example, TU for
Tuesday, W for Wednesday and TH for Thursday.
Check Your Progress 1
For calculating airfare, what will be the fare bases in following cases?
(i) BTU (ii) BAP12 (iii) YE5

9.7.3 FARE RULES

Discounted air fares are always subject to certain restrictions. Lower the fare; the more are the
restrictions applicable. These restrictions, commonly referred to as fare rules, they fall into six main
categories: - Minimum or Maximum stay: With most discount fares, the length of time between
outbound and return flights is restricted. For example, a fare may be valid only if the passenger is
willing to stay over until the next Sunday before starting a return trip. This may be called a Saturday
stay-over. A maximum stay may also apply. For example, passengers may be required to return no later
than 21 days after arriving at their destination. Advance Purchase: In most of the discount fares, advance
purchase prior to departure date is required; say 30 days in advance, which is commonly known as
‘Super Saver’. Generally, the longer the advance purchases requirement, the lower the fare. Validity
Dates: The discount travel is generally valid on certain dates. It has both an effective date and an
expiration date. Certain dates may also be blacked out, meaning that the travel is not valid on those
dates.
Fare Basis- Primary code represents class of service while secondary code represents other factors.
Combinability: Discount fares can be combined with other fare types. For example, a traveler using an
M-class fare on one segment may be able to use a V-class fare on another segment in the same trip.
Routing: Only permitted routings may be used in restrictive fares. The rating specifies the connecting
and stopover points that can be used with a particular fare basis. Penalties: Generally for cancellations or
changes in itinerary under
restrictive fares, penalties are imposed. In some cases restrictive fares are nonrefundable. Other
Restrictions: A number of other special conditions may also apply to discount fare. For example, a fare
rule may require all segments of the itinerary to be confirmed at the time of ticketing, or may prohibit
travel on certain dates of the week.

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 CATEGORIES OF AIRFARE
The airfares fall into two categories: -
(1) Normal Fares
(2) Special Fares
- Promotional Fares
- Group Fares
- Military Fares
- Senior Citizen Fares
- Tour/ Discounted Fare
BASIC AIRLINE TICKETING PROCEDURES
The travel agency is accountable for ticket stocks and the collection on behalf of the airlines. Therefore,
it must follow some guidelines while issuing an airline ticket, which are as follows:
- Confirm seat through a computer or other modes.
- Check the travel documents.
- Select the form of passenger ticket.
- Use the identification plate of an area settlement plan of the carrier.
- At the time of delivery of a complete ticket, detach the auditor’s and the agent’s coupons.
- All entries in tickets must be in Block Letters.
- Write the full name of each city in an itinerary.
- Enter the stopover codes clearly.
- Enter the fare box and total fare box properly and carefully.
- Be sure about special fares MPM, TPM and ticket validity.
Keeping the above points in mind, a travel agency gets the reservation sheet filled.
RESERVATION SHEET
First step to be done in airline ticketing is the preparation of a Reservation Sheet. The basic information
included in this Sheet is concerning the following:
- Date_________________________________
- Name________________________________
- Number of tour participants______________
- Home Address including Zip code_________
- Telephone_____________________
- Tour Plan______________________
- Carrier________________________
- Flight No______________________
- Day of Week___________________
- Status_________________________
- Taxes_________________________
- Airline Code___________________
- Airport Code___________________
- Type of Service_________________
- Other Information_______________
The different meanings of status may be expressed as follows:

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9.9.2 TICKET COUPONS
Air tickets are issued in many parts known as Coupons, which are arranged in sequence. The main
coupons are:

1. Front Cover.
2. Auditor’s Coupon: It is kept by the agency for accounting purposes. It has the information about the
travel segment, fare calculation and mode of payment.
3. Flight Coupon: It is a portion that entitles the passenger to board a flight. A separate flight coupon is
issued for each segment and this is also known as passenger coupon. It is an agreement between the
airline and the passenger for the seat on a specific date and flight. A Boarding Pass accompanies this.
4. Agent’s Coupon: It is also kept by agency for accounting purposes. It helps the agent to guide the
passenger to the correct flight.

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5. Passenger’s Receipt: It is kept by the passenger. This receipt lists all the flight segments for which
flight coupons have been issued and serves as of proof that passenger has paid the fare, but it is not valid
for travel.
9.9.3 ISSUE OF AIRLINE TICKET
Travel companies who have approval from IATA can issue Air Tickets and are generating more than
50% of their revenue from this. The tickets are of two types – Machine Tickets and Hand Tickets. These
two differ in design but basically contain the same information:
 Name of the issuing airline: it appears on the upper left corner.
 Endorsement/restriction box: Any important restriction or penalty that applies to the ticket
appears here.
 Passenger’s Name: Surname appears first, followed by initial.
 Itinerary box: The following information is required:
(i) The ‘From’ box shows the board point of each segment.
(ii) The ‘To’ box shows the off point of each segment.
(iii) The carrier box shows code of carrier code, the ‘Flight’ box
show flight number and ‘Class’ box shows class of service.
(iv) The ‘Date’ box shows departure date.
(v) The ‘Time’ box shows departure time
(vi) The ‘Status’ box shows whether the reservation is
confirmed denoted by ‘ok’ or some other status (refer to Reservation Sheet mentioned earlier)
The ‘Fare Basis’ box shows the fare basis code. Thereafter in the lower left corner total base fare, tax
and total fare are shown. The ‘Fare calculator’ box shows how the fare has been calculated. The form of
payment boxes, the mode of payment – cash, cheque, credit card etc. The Airline number and ticket
number appear at the bottom of the ticket. It also appears on the upper right corner on paper ticket.
PNR number: Passenger number also appears on the upper right side of the ticket. PNR is only a
reference number required to check all the flights of that person or group.
CHECK YOUR PROGRESS 2
1. Name the different parts of a Ticket coupon.
2. List the information required in a ticket.
9.9.4 SPECIMEN OF FLIGHT COUPON AND BOARDING PASS (DOMESTIC TICKET)
Flight coupon is a proof that the fare mentioned in the coupon has been paid. It should be filled up very
carefully.Boarding pass mentions the seat number and class of services to be used. It allows passenger a
smooth passage between the two points of the flight. That is why it is also called the ‘Boarding Pass’.
A specimen of Flight coupon and Boarding pass is shown as follows:

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INTERNATIONAL TICKETING

The International ticketing requires more or less similar information as domestic ticketing. The issue of
an International ticket is more complex as it involves the problem of change of currency. This is based
on Neutral Units of Construction (NUC) system. To determine the price of an international itinerary, the
NUC fares are added and the total is then converted to the currency of the country, where the ticket is
sold. The rate of exchange for converting NUC to various currencies is published from time to time by
IATA. If the client is planning to travel to different countries, the fare is converted to NUC first. All the
NUC fares are added and are converted from NUC to the currency of the country where the ticket would
be sold.

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85
9.10 AIRFARE CALCULATION
This is considered to be the most complex task of Ticketing. This means dividing of air itinerary into
different fare parts and showing how each fare has been calculated. The calculation also depends on the
type of journey – for example, one way, round, circle or open jaw.

AIRFARE CALCULATION FOR DOMESTIC AIRLINES

The domestic airfare calculations are comparatively easier to understand. They are not governed by so
many regulations and conditions. In India there are 6 private sectors airlines whereas there is only one
public sector airline for domestic travel. Till early 1990s, Indian Airlines occupied the maximum market
share, i.e. 60% of the total domestic market. The transformation began in the mid 1990s, when the
government scrapped a ban on privately owned airlines. A host of smaller carriers sprouted up. Some
had restricted growth but others like Jet Airways flourished, Jet Airways now has more than 40% of the
market share while market for Indian Airlines has fallen to less than 40%. The company
distributes free of cost ‘Fare Chart Sheet’ which includes point-to-point airfare
and its network (Operation).
It includes following
Base Fare +Inland Air Travel Tax +Passenger Service Tax.
Passenger service tax at present is calculated at 0.51% of base fare.
Example: 1 Mrs. Chopra wants to travel from Delhi to Mumbai one way after twelve days from today,
in the morning. She wants her booking done in Economy Class. She wants to know the domestic fare
that she is requested to pay.
Solution: She can get her booking done online which provides information about all such flights
available from host of public and private airlines.
Jet Airways charges air fare in the following manner: -
Base Fare = Rs 3610
Add: Air port tax = Rs 221
Add: Service tax (0.5%) = Rs 19
________________
Rs 3850
_________________

Example: 2 Calculate the fare to be paid by Mrs. Kapoor for the flight, which she wishes to take from
Mumbai to Hyderabad for one way travel.
Solution: Base Fare from Bombay to Hyderabad = Rs. 8000
Inland Air Travel Tax = Rs. 840
Service Tax = Rs. 40
Total Fare = Rs. 8880
Travel Agents get commission from Airlines on the Sale of Tickets.They pass on part of this commission
by way of discount in Airfare to their clients. This is what we can find, if she has to get the ticket straight
from
Airline. If she has to pay, in case she gets it from travel agent, the Airfare arrived at is shown below.
Since travel agent gets discount from airlines of around 5%, he may pass on 3% of it to the client: -
Base Fare = Rs. 8840 (Inclusive of IATT)
Service tax (0.5%) = Rs. 45
Total = Rs. 8885
Discount (3%) = Rs. 265
_______________________________

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 Net Fare to be paid = Rs. 8620

Example 3: Calculate fare to be paid by Mr. Tiwari for the itinerary shown as below:
BOM-HYD-BOM
Base Fare is 5000, Airport tax is 400, and Service tax is 0.5%. Agent is allowing discount of 2%. What
will be the final amount that Mr. Tiwari is required to pay?
Solution:
Base Fare = Rs. 5000
Airport Tax = Rs. 400
Service Tax (0.5%) = Rs. 25
Total = Rs. 5425
Discount (2%) = Rs. 108
Net Fare to be paid = Rs. 5317
CHECK YOUR PROGRESS 3
Activity - 1
Find out using internet what shall be the fare that Mr. Das may have to pay if he wishes to go to
Bangalore from Delhi ten days from now in Business Class. He wishes to travel by an Indian Airlines
flight.
9.10.2 AIRFARE CALCULATION FOR INTERNATIONAL AIRLINES
The International Air Transport Authority (IATA) provides the fares applicable to the participating air
carriers. Airlines and travel agencies must have a complete copy of all tariffs at all offices where air
tickets are being sold
in order to obtain the correct fares.
It is essential for travel agents & airline employees to follow the approved rules of IATA.
The joint one-way and round- trip fares and rules are published to cover transportation in two different
airlines. The joint fare is available as a single amount covering transportation of two different carriers
and the passenger
pays a single amount with the condition that he changes carriers in a certain specified city.
While finding the international fare and other rules, the travel agent must observe following points:
(ii) Refer to the latest edition of tariff rules.
(iii) Check the airline tariff fare schedule for the applicable rule.
(iv) Check the rule for normal and special fares
Service Tax Charged by Domestic Airlines at present is @ of 0.51%.
It is @1.02% for International Airlines.
(v) Check the rules regarding the carrier in question.
Whenever fare between two points is not established the following methods can be used to establish the
airfare:
(i) Lowest combination of fare method
(ii) Mileage System
(iii) More Distant Point Principle
Lowest Combination Method:
In this method, fare is established by combination of two or more rational results in the lowest fares.
The desired route can be constructed by imagining the points to which passengers are not, really
traveling and find if it produces lower fare.
Example 4:
Mr. Raj wants to travel Bombay- New York –San Francisco-Bangkok.What should be the airfare
according lowest combination method?
Solution:
There are two possible combinations: -
First Combination fare: -

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Bombay – New York Rs. 20,000
New York – Sanfrancisco – Bangkok Rs. 24,000
Rs. 44,000

Second Combination Fare: -

Bombay – New York – Sanfrancisco Rs. 22,500
Sanfrancisco – Bangkok Rs. 18,500
Rs. 41,000
Hence, lowest combination of fares is constructed over New York.

Mileage System:
For constructing fare under this system, three elements should be understood:
(i) Maximum Point Mileage (MPM)
(ii) Ticket Point Mileage (TPM)
(iii) Excess Mileage Surcharges (EMS)
MPM: - It is the maximum number of miles a passenger is allowed to travel enroute between the
particular points at the direct fare.
TPM: - TPM is used to calculate the total mileage of the flown journey.
EMS: - Excess mileage surcharge is used when the desired route TPM exceeds MPM.
Example 5: A client wishes to travel from Mumbai to Bangkok. What should be his fare?
Solution: Under Mileage system, the fare will be calculated as follows: -
Base fare from BOM to BKK = Rs. 8000
MPM = 4340
TPM (given in air tariff manual) = 3590
Since TPM < MPM, there will be no surcharge

Example 6: A client wishes to travel from Delhi with the following itinerary:
DEL – NYC – ROM, what will be his fare?
Solution: Base fare from DEL to NYC = Rs 10000
MPM from DEL to NYC and
MPM from NYC to ROM = 6520
TPM from DEL to NYC and NYC to ROM = 7210
Since the sum total of TPM>MPM, surcharge becomes necessary. The client will have to pay EMS
calculated on the basis of chart over and above Rs.10000. According to the category of EMS, the
percentage is found from the Excess Mileage percentage table to find the surcharge.
Note: Service tax Charge on Tickets on International Airlines @ 1.02%

9.13 GLOSSARY
IATA (International Air Transport Association):IATA is a non-political and voluntary association
formed by six airlines to promote collaboration between air transport operators. This is explained in
detail in the next lesson.
Stand by travel:A ‘stand by’ passenger is not assured of a seat until the passengers who hold confirmed
reservation have checked in at the departure. If all the seats are occupied, stand by passengers are denied
boarding on that flight.
Discount Fares:IAC discount fares manual are available to guide the discount applicable in different
cases, for example, to students, armed forces, teachers,blind persons, common interest groups and so on.
Arrival and Departure Time:Most schedules work on 24 hours time clock and not on AM/PM. For
example, IC493 arrival (A) at 17:45 and departure (D) at 19:25 means that Flight carrier IC493 arrives at
5:45 PM and departs at 6:25 PM.

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PNR Number:Whenever reservation is made, a file is opened in the computer for that person or group
of person and it automatically generates a file number,which is called PNR Number.
9.14 SELF - ASSESSMENT QUESTIONS
1) What should a travel agent know about the booking or reservation of Airline ticket?
2) Explain the restrictions applicable according to Air fare rules in the following cases: (i) Maximum or
Minimum Stay (ii) Validity Dates (iii)Combinability
3) According to Fare Basis rule, what is the description of following codes:
(i) FN (ii) Y2 (iii) FCH (iv) Q21RT
4) Mr. N.P. Singh is planning a round trip itinerary from New Delhi (ND) to New York (NYC). He
would like to stop- over in Milan (MLN), Zurich (ZRH) and Paris (PAR) enroute.
The itinerary is as follows:
MPM
ND-MLN 5500
MLN-ZRH 103
ZRH-PAR 299
PAR-NYC 4004
Assuming that permitted mileage from ND to NYC is 10000 will there be any surcharge?
5) Mr. Bhushan is a regular customer of Raj Travels and wishes to take a circular trip. The itinerary is
shown as below:
DEL – BOM – CHENNAI – CAL – DEL
The base fare counted together along with IATT is 25000. Calculate Net Airfare including the service
tax, provided that agent gives a discount of 4% to regular customer and 2% to new customers.
(i) Calculate fare charged from Mr. Bhushan.
(ii) What will he charged from Mr. Rana, a new customer, for purchase of a ticket?
6) Which of the following key words relating to itinerary includes surface travel also?
(i) Circle Trip (ii) Round Trip (iii) Open Jaw trip (iv) One-way trip.
7) Based on booking code, which of the following doesn’t belong to first class service category in Air
travel fare construction?
(i) P (ii) C (iii) A (iv) F
9.16 ANSWERS TO CHECK YOUR PROGRESS
CHECK YOUR PROGRESS 1:
(i) Fare basis is travel in discount coach valid for Tuesday.
(ii) Travel in Economy Class where ticket is to be purchased 12 days before departure.
(iii) Travel in Economy Class, Excursion fare valid only for departure on Friday.
Self-assessment Question:
3. (i) First Class ticket valid only for night departure.
(ii) Coach fare valid only for departure on Tuesday.
(iii) First Class fare, which includes Child’s fare.
(iv) Discount Coach fare for Round Trip, which requires ticket to be purchased 21 days before
departure.
4. Since TPM<MPM, no surcharge will be charged.
5. (i) Rs. 23878 (ii) Rs. 24375
6. (iii)
7. (ii)

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 LESSON – 10
TOURISM BODIES
Currently, with the tremendous boost in travel, world over, it has been realized, not only by the
individual governments, particularly of the developing nations but also by the International organisations
that “World belongs to man and everyone has a right to know & enjoy the world not just around him but
also beyond him”.
To emphasis the significance of the above statement it will be appropriate hereto quote the extract from
the United Nation’s Conference on International Travel and Tourism held in 1963, which underlined the
need for a National Tourism Administrative (NTA) using the following words:
“The Conference considers that it is incumbent on governments to stimulate and coordinate national
tourism activities and is convinced that this task can,in the main, be carried out through the medium of
National Tourist Organisations”.
Therefore the planning process in tourism should outline the optimum objectives to be attained in a
given period of time. This planning should be treated as an integral part of the country’s general
economic and social planning. The key phases in tourism planning are as follows:
 Assessment of tourism demand and a scientific planned approach to the supply of such demands.
 Tourism objectives should cover the overall development of a nation.
 Tourism site planning should be done by totally avoiding damage to natural and cultural assets.
 Focus should be on development of basic infrastructure which would be needed by any tourist.
 Financial planning should be done involving public, private agencies and foreign investment.
 Appropriate man-power planning must be done, especially because tourism is a service industry.
 There is also a need for efficient Administrative planning.
 Lastly, monitoring and evaluation must be done on a consistent basis.

Tourism planning in India

The tourist organizations of India had their beginning in the report of the Sargent Committee in 1945.
Sir John Sargent, the then, Educational Advisor to the Government of India, was the chairman of a
committee set up to survey the potential of developing tourist traffic to this country. The Committee
recommended that a separate tourist organization should be set up at the centre with regional offices at
the metro cities. It was in 1948 that the independent government under the transport ministry set up ad
hoc Committee constituting representatives from tourist, transport and Hotel industries.
From time to time, the Government has included in its five year plans, planning & development of travel
& tourism. The functions of the ministry cover both promotional and organizational activities under
following divisions:
 Planning and Programming
 Publicity and conference
 Travel trade
 Hospitality and accommodation
 Supplementary accommodation and wildlife
 Market Research
 Administration
The activities of the Ministry of Tourism cover a wide range of subjects:
 Collection, compilation and dissemination of Tourist information in India and abroad.
 Cooperation with international travel and tourist organization.
 Development of tourist facilities.
 Publicity of tourism significance at home and abroad.
 Simplification of frontier formalities in respect of international tourists.
Compilation of statistics and market research.
In order to upgrade the quality of human resources in tourism, the government has implemented the
South Asia Integrated Tourism Human Resource Development Project (SAITHROP) with support from

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the European Commission. For continuation of the Project, the India Tourism HumanResource
Development Committee has been established. Several Public sector organisations and bodies have been
created to help tourism prosper in India.
10.2 DTTDC – DELHI TOURISM & TRANSPORTATION DEVELOPMENT CORPORATION.
DTTDC was set up to promote tourism in Delhi. It develops tourism Infrastructure, undertakes publicity
measures and other activities to develop and promote tourism in Delhi. These include dissemination of
Tourism related information and services, providing recreational facilities, etc. With a view to provide
facilities to the tourists coming to Delhi, DTTDC set up its first Tourist Information Centre at Connaught
Place, in Delhi in 1976.
Subsequently in different years, 15 other centers were established in Delhi as well as outside Delhi. At
present the DTTDC is operating 16 Tourist Information Centres as under:-
A) In Delhi Year of opening
1. Connuaght Place, N- Block, 1976
2. New Delhi Rly. Station 1977
3. Old Delhi Rly. Station 1977
4. ISBT, Kashmiri Gate 1971
5. International Airport 1979
6. Domestic Airport 1915
7. R.K. Puram, Coffee Home 1993
8. Dilli Haat 1994
9. Central Reservation Office, Connaught Place 1995
B) Outside Delhi Year of Opening
10. NOIDA 1991
11. Mumbai 1990
12. Chennai 1992
13. Calcutta 1993
14. Bangalore 1995
15. Secunderabad 1997
16. Ahmedabad 1991
Out of 9 Information Centres in Delhi 5 are working in two shifts. The Information Centre at Indira
Gandhi International Airport works round theclock and the remaining work on single shift. The 7
information Centres including NOIDA outside Delhi work in single shift.The aims and objectives of the
Tourist Information Centre are to render, freeof cost, all necessary help to the tourists like information
regarding mode of transport, accommodation, local sight seeing tours, places of tourist interest,etc. They
provide free literature in the form of brouchers and other serviceslike Hotel Reservation, Transportation
and Tours. This literature provides reliable information on historical and cultural facets Delhi. For
providing of this information to the tourists, all the Tourist Information Centres have sufficient, colorful
and informative literature supplied by their headquarters which is given to the tourist free of cost.
Festival organized by DTTDC:
Roshnara & Shalimar Festivals
Qutub Festival
Garden Tourism Festival
Mango Festival
Delhi being one of the greenest capitals in the world and a scattered citadel of erstwhile dynasties which
now co-exist with residential localities attracts these festivals which in turn invite tourists & entertain
them. In addition to the above said festivals, Dilli Haat offers tantalizing glimpses of vast storehouse of
Indian Culture by holding regional festivals at its open-air theatre. These are held from time to time,
throughout the year. Dilli Haat is a venture jointly set up by the New Delhi Municipal Council, Ministry
of Textiles, and Government of India. It is a project of DTTDC schemes undertaken by DTTDC during
the year 2005-06.

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During the year 2005-06 the schemes which are to be undertaken/continued under the major head
‘Tourism Infrastructure” are given below.
a) Water sports Tourism Complex at Bhalswa
Facilities for outdoor leisure have been provided by undertaking watersports & allied activities in the
Bhalswa Lahe which has been in possession with Delhi Tourism for over a decade.
b) Establishment of wayside amenities-Effort is being made to introduce modern techniques of
dissemination of tourist information, identification of new destinations of new destinations and better
marketing of services.
c) Development of Dilli Haat type projects in different parts of Delhi.
d) Restoration of De notified monuments-A total of 100 monuments have been identified out of which
34 have been restored.
e) Refurbishment of monuments-This is being done by making tourist aware of the monuments, and
providing drinking facilities, public conveniences, food kiosks,souvenir shops, etc.
f) Signage at monuments & other historical places for identification& awareness of tourists.
g) Accessibility to destination through trail etc.
The management of the natural and historic environment being the prime objectives, the proposal aims
at developing a series of pathways for access and maintenance.
h) Illumination of monuments
Many tourists feel that, there is so much to see during the day but there is hardly anything for the
evening. Therefore to attract interest of tourist and to enhance the beauty of Delhi, monuments are
illuminated.
i) Development of lakes
Delhi has more than 30 big ancient lakes and now efforts are on to add more lakes, as well as add new
sports such as Bungee Jumping etc.
j) Development of Coffee Homes in different parts of Delhi.

New Schemes
DTTDC has also contemplated and introduced the following new schemes.
a) Setting up of night bazaar.
b) Chhawal and Kanganh in Project for adventure sport.
c) Adventure Park at Azad Hind Gram
To conclude, Delhi Tourism and Transportation Development Corporation has been actively involved in
conservation and preservation of Delhi’s heritage which includes the conservation of 30 monuments in
Mehrauli ArchaeologicalPark Area along with installation of signages and heritage trail connecting
allthe major monuments. Through the proposal of heritage walks, DTTDC aimsto achieve:-
 An increased citizen awareness of key historic areas within Delhi.
 To help Delhities and tourists to the city relate to the historic parts ofthe city in a more personal
and intimate manner. During the walks visitors will get an opportunity to visit famous streets and
historic neighbourhoods, havelis, temples, mosques, churches and other religious structures,
amongst other building types.
 To draw the citizens of Delhi and tourists into areas of rich cultural anda rchitectural Heritage yet
not on the tourist itinerary.
 Increased number of visitors should result in heightened sensitivity ofthe local populace towards
historic value of settlements and encourage communities to conserve and preserve their own
heritage and unveil a sense of pride and appreciation among them. To generate awareness about
traditional architecture and its inherent advantage.
 Initiate community based restoration efforts involving citizens, volunteers, and other
organizations.
 To popularize local and traditional craftsmanship and art.

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Tourism Department proposes to organize four heritage walks in associationwith INTACH, Delhi
Chapter as mentioned below:-
 Two heritage walks in Old Delhi (Shahjahanabad) in collaboration with MCD.
 One walk in the Mehrauli Archaeological Park in collaboration with DDA.
 One walk in Lutynes Delhi in Collaboration with NDMC.
CHECK YOUR PROGRESS
a) Name the area in Delhi where Dilli Haat is being constructed.
b) Describe your experience in brief, if you have ever been a part of any festival organized by DTTDC.
c) Name some countries where Night Bazaars are very successful state why such Bazaars are not
successful in India.
10.3 ITDC – INDIAN TOURISM DEVELOPMENT CORPORATION
ITDC is a public sector corporation created by the government to undertake major responsibilities in
areas which the government, due to its own limitations, could not participate actively. It was set up in
the year 1966 with the aim to undertake development, expansion and promotion of India as a tourist
destination. It has the largest hotel chain in India that caters to travel, accommodation, duty free
shopping, entertainment and restaurants under a single window. It can boast of having four thousand
rooms in ITDC(s) 35 Hotels, Motels and Resorts. It has 11 Travel & transport units & employs over
71060 employees. Its Hotels have been divided into the following three categories:
Elite
Classic
Comfort
Entertainment & other functions of ITDC
(a) It runs “sound & light” shows at Red Fort, Delhi.
(b) It runs duty free shops at fire international airports namely Kolkata, Mumbai, Chennai, Delhi and
Tiruvananthapuram.
(c) Helped in growth of tourist attractions, off the beaten track, such as Kovalam, Mahabalipuram,
Garhwal etc.
(d) It is doing pioneering work in production of tourist literature.
(e) Its travel agents ATT – Ashok Travels & Tours offers services toboth foreign and domestic travelers.
(f) ATT has introduced exciting tour packages, shopping tours,Honeymoon Heavens, Religious Tours,
and Mountain Tours, etc.
(g) Its participation in “Food Festivals” all over the world has popularized Indian food.
However, the ITDC will have to undergo several structural changes in the coming years to cater to the
current environment.
10.4 TAAI – TRAVEL AGENTS ASSOCIATION OF INDIA
TAAI was formed towards the end of the year 1951 by a group of twelve leading Travel agents, who felt
that the time had come to create an Association to regulate the Travel Industry in India.
The Association has its registered office in Mumbai and regional offices in Kolkata, Delhi and Chennai.
A monthly magazine “Travel News” for its members is also published by the Association.
Following are the Primary activities of the Association
 To protect the interests of those engaged in the industry.
 To promote the orderly growth and development of the travel industry.
 To safe-guard the rights of the traveling public.
 To build trust and credibility in the market place.
TAAI represents all that is professional, ethical and dynamic in our nation's travel related activity and
has been recognized as the “Voice” of the Travel &Tourism Industry of India.
With a membership base of over 11000 active, allied & associate members,comprising of IATA,
accredited Travel Agencies, Airlines & General Sales Agencies, Hotels & Tour Operators, TAAI is the
largest Travel Association of India.

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In fulfilling its mission and supporting traditional values as well as embracing change, TAAI’s
objectives are to work towards:
 A committed national membership.
 Widening its area of influence by judiciously delegating authority and responsibility to Regions,
Chapters and City Committees.
 Professional management of its affairs at all levels.
 A responsive and well-equipped Secretariat which benefits all members.
The manner in which TAAI conducts itself on issues of trade principles and practices will determine its
contribution to the Travel and Tourism industry.
10.5 IATA International Air Transport Association
The International Air Transport Association is an international trade organization of airlines headquarted
in Montreal, Quebec, Canada.IATA was formed just after World War II in April 1945, in Havana, Cuba.
It is the successor to the International Air Traffic Association, founded in TheHague in 1919, the year of
the world’s first international scheduled services.At its founding, IATA had 57 members from 31 nations,
mostly in Europe and North America. Today it has over 270 members from more than 140 nations
inevery part of the globe.
The main objective of the organization is to assist airline companies to achieve lawful competition and
uniformity in prices. For fare calculations IATA has divided the world in three regions:
1. South and North America.
2. Europe, Middle East and Africa. IATA Europe includes the geographical Europe and the countries
Morocco, Algeria and Tunisia.
3. Asia, Australia, New Zealand and the islands of the Pacific Ocean.
To this end, airlines have been granted a special exemption by each of the main regulatory authorities in
the world to consult prices with each other through this body. However, the organization has been
accused of acting as a cartel, and many low cost carriers are not full IATA members. The European
Union’s competition authorities are currently investigating the body. In 2005Neelie Kroes, the European
Commissioner for Competition, made a proposal to lift the exception to consult prices. In July 2006 the
United States Department of Transportation also proposed to withdraw antitrust immunity. Air Transport
is one of the most dynamic industries in the world. The International Air Transport Association is its
global trade organization. Over the last 60 years, IATA has developed the commercial standards that
built a global industry. Currently the IATA’s mission is to do the following:
Represent
Lead
Serve the airline industry
Its members comprise of 265 airlines – the World’s leading passenger andcargo airlines among them –
representing 94 percent of international scheduled air traffic.
It is a global non-governmental organization that came into existence in Havana, Cuba in April 1945.
The organization is a common platform for inter airline co-operation in promoting safe, reliable, secure
and economical services to the consumers.
Flight Planning by IATA
Flight Planning is the process of producing a flight plan to describe a proposed aircraft flight. It involves
the following functions.
(a) Safety critical aspects
(b) Fuel Calculations
To ensure that the aircraft safely reaches its destinations. In addition, it ensures the compliance with air-
traffic control, to minimize the risk of mid-air collision. Above all the planners normally desire to reduce
flight costs and make them as cost effective and as affordable as possible. For minimizing the flight cost,
planners resort to choice of route, height and speed. Flight planning requires accurate weather forecasts
so that fuel consumption calculations can account for the fuel consumption, effects of head or tail wind
sand air temperature. Safety regulations require aircraft to carry fuel beyond the minimum needed to fly

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from origin to destination, allowing for unforeseen circumstances or for diversion to another airport if
the planned destination becomes unavailable. Furthermore, under the supervision of air traffic control,
aircraft flying in controlled airspace must follow predetermined routes know as airways, even if such
routes are not as economical as a more direct flight.
Within these airways, aircraft must maintain flight levels, specified altitudes usually separated vertically
by 1000 or 2000 feet, depending on the route being flown and the direction of travel. When aircraft with
only two engines are flying across oceans, they have to satisfy extra safety rules to ensure that such
aircraft can reach some emergency airport if one engine fails.Producing an accurate optimized flight
plan requires a large number of calculations (millions), so commercial flight planning systems make
extensive use of computers (an approximate unoptimized flight plan can be done by hand in an hour or
so, but more allowance must be made for unforeseen circumstances). Some commercial airlines have
their own internal flight planning system, while others employ the services of external planners. This
aspect of use of computers and other Information Technologies will be dealt with in detail in Lessons 12
& 13.
IATA undertakes the following activities:
Technical research and development in aviation.
Formulation of a sound legal frame-work in aviation policies such as loss, death or injury and rates
pattern, tariffs, revenue allocation, rules for multi-sector trips, debt settlement between airlines and
clearing House etc.
The air transport industry has undergone change to a great extent from the time IATA was born. As the
technical and economic scenario is changing and the demand of the consumer is growing throughout the
world, IATA is continuing its endeavor so that the world’s most challenging and exciting industry
achieves its greatest possible potential.
10.6 W.T.O. – WORLD TOURISM ORGANISATION
WTO, a specialized agency of the United Nations, is the leading international organization in the field of
tourism. It serves as a global forum for tourism policy issues and practical source of tourism know-how.
It came into existence on 2nd January, 1975 and the first general assembly was held in Madrid, Spain in
May 1975. The rapid growth of tourist industry led to the transformation of the IUOTO into WTO. By
the year 2005 its membership comprises of 145 countries, 7 territories and more than 300 affiliate
members representing the private sector, educational institutions, tourism associations and tourism
associations and local tourism authorities.
WTO performs following functions:
Serves as a clearing house for all available information on international and domestic tourism.
Assist in reducing of frontier formalities.
Organizes international conferences & seminars.
Prepares drafts of international agreements.
Formulates training programmes.
Participates in tourism projects.
Indulges promotes in Environment and Planning.
Provides basic information for Communication and documentation.
WTO has come out with a number of publications to provide desired information and to cover all
aspects of Tourism sector, some which are as follows:
i. World Travel and Tourism Mondial?
ii. International Travel Statistics.
iii. Economic Review of World Tourism.
iv. Technical Bulletins and Travel Research Journal.
The WTO plays a catalytic role in promoting technology transfers and international cooperation, in
stimulating and developing public – private sector partnerships and is encouraging the implementation
of the Global code of Ethics for Tourism. It ensures that member countries maximize the positive
economies and reap full benefits while minimizing the negative social and environmental impacts.

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CHECK YOUR PROGRESS
a) IATA’s mission is to _______________________________________the airline industry.
b) WTO came into existence on ________________ and currently comprises of _________________
member countries and_______________ affiliate members.
c) Three publications by WTO are:
10.8 SELF ASSESSMENT QUESTIONS
a) Discuss some key phases in tourism planning.

b) Write in brief about any one International Tourism Agency highlighting itsfunctions.
c) Discuss in brief any two domestic tourism agencies and their role inpromoting tourism in India.
d) How, in your opinion, tourism can be promoted in India? Do the existingbodies need restricting or is
there a need to set up a new tourism Agency?
10.9 GLOSSARY
i) FHRAI – Federation of Hotel & Restaurant Association of India whichwas set up in 1955.
ii) IATO – Indian Association of Tour Operators – premier body for inboundtour operators in India.

LESSON- 11
MARKETING- CONCEPTS AND PRACTICES
11.2 DEFINITION OF MARKETING
The concept of marketing can be viewed from social and managerial perspectives. At its simplest,
marketing can be defined as exchange transactions that take place between the buyer and the seller.
Marketing is the
management function, which organizes and directs all those business activities involved in assessing and
converting customer purchasing power into effective demand.
Philip Kotler defines marketing as “a social process by which individuals and groups obtain what they
need and want through creating, offering and freely exchanging products and services of value with
others”.
In essence, the marketing concept is customer orientation aimed at generating customer-satisfaction
through integrated marketing.
11.2.1 ASPECTS OF MARKETING CONCEPT
The important aspects of marketing concept are:
Creation of demand: Marketing tries to create demand through various means. The producers first
ascertain what the customers want and then produce goods according to the needs of the customers.
There is a systematic effort to sell goods and services according to the needs of the customers.
Customer Orientation: Marketing involves undertaking a range of business activities directed at the
creation of customer satisfying products and services.
Integrated Marketing: The customer orientation alone is not enough on the part of management. To
be effective must be backed by an appropriate set up within the country. The responsibility of marketing
department is to ensure coordination of the various departments of the company i.e., finance, purchase,
research and development.
Profitable sales volume through customer satisfaction: Marketing tries to realize long-term goals of
profitability, growth and stability through satisfying customers’ wants. All the basic activities of a
company are planned to meet the wants of customers and still making reasonable profits. Modern
marketing thus begins with the customer and ends with the customer.
CHECK YOUR PROGRESS -1
1) “Marketing and Sales are related concepts”. Discuss.
2) Today, most leading companies are developing customer-oriented approach towards marketing. List
and describe the ways marketers use marketing concept to satisfy customers.
11.3 MARKETING MIX

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Marketing concepts had been originally developed in the context of tangible consumer goods. Marketing
mix refers to the ingredients or the tools, which the marketer mixes in order to interact with a particular
market. Kotler defines marketing mix as “set of marketing tools that the firm uses to pursue its
marketing objectives in the target market”. Each of the elements in the marketing mix is important and
has an influence on the customer.
11.3.1 4 P’S OF MARKETING MIX
McCarthy has classified the main elements of a marketing programme in terms of 4 Ps- Product, Price,
Promotion and Place.
Product includes design, features, quality, range, size, models, appearance,packaging, and warranties. It
also includes pre-sales and post-sale services like training for use, repairs, maintenance or replacements.
Price includes concessions on basic price, discounts, rebates, credits,installation facilities and delivery
terms.
Promotion includes advertising, publicity media choices, messages, and frequency of exposure,
campaigns, sales promotion, point-of-purchase,displays and merchandising. Place or channels of
distribution includes retail outlets, wholesalers,transportation, warehousing, inventory levels, order
processing procedures,etc.
Consumers generally form their perceptions of products and services based on prices. Pricing products
and services is a complex process. It is based on the uniqueness of product attributes and the perceived
value, which the consumer is willing to pay. Pricing strategies are planned according to
consumers’cultural norms and the political, legal and social environment of the place where the tourist
product is located.
Example of Price: Indian Airlines has offered Super Saver tickets in January2006, a multicoupon ticket
is being offered with each coupon valid for travel between any two domestic destinations connected by a
direct flight. The offergives two options, one is about four-ticket option priced at Rs. 20000 in Economy
class and the other is Rs. 28000 in Executive class. This is an example of good Bargain. There is also the
option of buying additional
ticket(s) at incredibly low prices. Such convenience of booking provides the comforts of flying with
wide choice of travel.Distribution systems or channels serve as the intermediary between consumers and
suppliers and are an essential part of the travel and hospitality marketing strategy. Many companies such
as hotels or airlines use their central reservation systems to facilitate sales directly to customers.
Example of Channels of Distribution: It is estimated that in the year 2004, out of a total 730 million
Internet users, only 35.8 percent use English language websites. Therefore, local language should be part
of the distribution strategy and many hospitality companies also provide localized websites with several
languages.Let us understand how a marketer uses the tools of marketing mix by taking the example of a
product like ‘Tanishq’ watches by Titan Industries. The watch is packed in plastic box, has a design,
features, quality and company ensures warranty. It has list price but at times the dealer permits discount
or rebate. The company distributes the watch through exclusive retail outlets. The company promotes it
by using advertising and sales force. All the activities of
Titan are the ingredients that have gone into the making of ‘Tanishq’ for the purpose of creating
exchanges with the potential customers.
The successful marketers exhibit proficiency in mixing these ingredients.Thus, marketing mix is the
main building block of marketing efforts of the firm.
11.4 TARGET MARKET
The term ‘market’ refers to the collective of existing and prospectivecustomers for the product.
People who need to stay outside their usual residence use a hotel. A personmay not have such a need but
if such a need arises later, he is a prospectivecustomer. The marketing effort is aimed at such prospective
customers who
would choose to buy the marketer’s hotel services. However, all persons who need to stay outside are
not prospective customers for the 5-star hotels. They may stay at budget hotels. Hence, the market for

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the five star hotels is only part of the total market of total hotel users. Such parts are called segments of
the market.
The customers of the hotel are those who come to stay as well as users of other facilities. They are
different groups and each group constitutes different segments since the needs and expectations of each
one of these groups are
different. For example, segmentation is possible on the basis of usage of swimming pool. The segments
using the pools for training are different from regular guests in terms of age, behavior, attention
required, hours spent in the
pool or cleanliness demanded and so on.
11.4.1 MARKET SEGMENTATION
Market segmentation is the process of identifying groups of buyers of the total market with different
desires. Most markets are too large for an organization to provide all the products and services needed
by all buyers in
that market. This leads organizations selecting target markets necessitating market segmentation. Market
segmentation has certain obvious advantages in that the organizationis:
Better placed to spot and compare marketing opportunities,
Cater to the specific needs of the buyers,
Develop marketing pro grammes for specific market segments.
In tourism, market segmentation is very important. The strategy of market segmentation in tourism is to
divide the present and the potential market on the basis of some characteristic and then concentrate
marketing efforts like
pricing, supply and promotion efforts to the target markets.
11.4.2 BASES FOR MARKET SEGMENTATION
Segmentation is usually done on the basis of one or more of the following characteristics:
Geographic- region, district, density of population, climate, urban rural.
Demographic- family size, religion, gender, income, occupation,language, education.
Psycho graphics- value system, lifestyles, and personality types.
Buying behavior- volumes of purchase, delivery requirements,
Usually the tourist market is segmented in terms of demographic, geographic,psycho graphic, social and
economic criteria. For example the market for a particular area might be the businessmen in the age
group of 40-60 years who have an income of over $100,000 per year and who live in southern parts of
Germany. The tourist market may be segmented on the basis of:
Place or origin of tourists.
Destinations.
Purpose of tour like holidays, pilgrimage, sightseeing, shopping, etc.
Economic status and spending tendencies.
Preferences of staying, like camping, luxury hotels, caravans, etc.
Preferences of travel, like air, sea, road, or rail.
Each segment of the market differs in terms of needs and expectations. No one organization can cater to
the needs of all segments. Each organization has to decide on the particular segment or segments it
would cater to. The segment so identified is called the target segment.
Having identified the market, all activities will have to be planned keeping this target market in mind.
The services being offered, the messages in communication, the media used for communication, the
pricing policies, the
arrangements have to be consistent with the preferences and behavior patterns of the target market. For
example, if the hotel is targeting on the domestic tourists at religious places, then providing foreign food
or advertising in
business magazines would be the waste of resources. Instead, provide vegetarian thali food and advertise
in religious magazines and on channels likeAastha and Sanskar.
CHECK YOUR PROGRESS-2

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1) Match the following:

2) Visit a tourist operator in your city and enquire about their

a) Pricing strategy to attract visitors,
b) Facilities, accommodation provision,
c) Sight- seeing programmes.
Evaluate how their pricing package changes according to additional facilities being provided to tourists.
11.5 TOURISM MARKETING
It is a well known fact that as long as the inherent sense of curiosity and adventure dwells in the hearts
of human beings, the desire to travel in order tosee new sights and experience new things, to live under
different environments will always grows. The marketing in tourism industry has evolved as part ofthe
process initiated by the desire for travel in people. Without exception, all human beings will always
nurture a desire to travel in order to see places. The question arises that if the desire is ever present in
people to travel and experience new things, why then would the tourism industry need marketing efforts
at all?
The marketing problems in tourism is quite different from marketing problems in other industries, and
this justifies making marketing in tourism, a subject for separate and specialized enquiry. The concepts
and principles, the techniques and methods of marketing can be equally applied to tourism. The concept
of tourism marketing can be better understood by identifying and considering the differences between
markets for physical, tangible goods on the one hand and the market for tourism on the other.
Tourism marketing could be defined as the systematic and coordinated efforts exerted by tourist
enterprises at international, national and local levels to optimize the satisfaction of tourists, groups and
individuals, in view of a sustained tourism growth. According to Krippendorf, “Marketing in tourism is
to be understood as the systematic and coordinated execution of business policy by tourist undertakings,
whether private or state owned, at local,regional, national or international levels to achieve the optimal
satisfaction of the needs of identifiable consumer groups, and in doing so to achieve an appropriate
return.”Tourism is a very complex industry because of its multifaceted activities,which together produce
the tourist products otherwise considered as independent industry (lodging industry, transport industry,
etc.). Besides, its complexity lies mostly in the fact that tourists are located in different places,have
different socio-economic structures, different needs, tastes, attitudes,expectations, and behavior patterns.
The marketing concept helps the tourist organization to establish a consistent and effective
communication system with actual and potential tourists in the selected markets. It also helps them to
know their customers’ wishes, needs, motivations, likes and dislikes.

11.5.1 SPECIAL FEATURES OF TOURISM MARKETING

From ancient times when travel was a prerogative of a select few who travelled in search of adventure to
the present day jet travel, there have been many changes. Travel in ancient times was a simple affair. The
type of facilities that were required by the people to travel was provided by a handful of suppliers of
such services. In the present scenario of travel expansion,markets necessitated the application of
marketing techniques. Marketing of tourist products has certain peculiarities.
The difference arises due to peculiar nature of tourist products:

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(i) Tourism is an intangible, non-material product. Unlike a tangible product, no transfer of ownership of
goods is involved in tourism. Instead certain facilities are made available for a specified time and for a
specified use like a seat in an aeroplane or room in a hotel.
(ii) Production and consumption of tourist services are closely interrelated. The travel agent who sells
his product cannot store it since there is a close link between production and consumption of tourist
services.
Production can only take place or can only be completed if the customer is actually present.
(iii) A tourist product is assembled by many producers. The tourist product cannot be provided by a
single enterprise. In tourism, airline provides ‘seat’ to travel, hotels provide ‘accommodation’, a travel
agent ‘bookings’ while a museum provides ‘place of experience’. So, the tourist product is an
amalgamation of many components, which together make a complete product.
(iv)Tourism demand is highly unstable. Tourism demand is influenced by seasonal, economic, political
and other such factors. For example, political unrest affects inflow of tourist to a particular destination.
(v) Intermediaries play a dominant role. In tourism, sales intermediaries like tour operators, travel
agents, reservation services and hotel brokers play a dominant role. They determine to a large extent
which services will be sold and to whom.
(vi)Travel motivations are diverse in nature. The reasons, expectations, and desires, which influence
tourists’ choice for certain holiday destinations, types of accommodation and vacation activities are
varied. Very often people make exactly the same choice for entirely different reasons.
To a considerable extent, tourism marketing depends on various market factors mentioned above.
Therefore, marketing of tourism as compared to other industries needs a somewhat different approach.
The general principles of marketing, which has proved quiet effective in the marketing of products of
other industries, could be applicable to marketing of tourist products.
11.6 PRODUCT IN TOURISM
The needs of the tourist relate to comfort and pleasure in travel, stay, food arrangements and visiting
spots of interest and attraction. Hence, the tourist expectations are:
 To be looked after and cared for,
 Be able to visit places of interest, spend adequate time at such places,
 Facility of transportation available,
 Not to be hurried or hustled against the preferred place,
 Getting suitable food to one’s tastes and health,
 Able to experience the new places –their life-styles, food, culture,heritage, etc. as per one’s own
choice, and
 Facing no risk to one’s person or belongings, etc.
The three basic components of a tourist product are:
 Attractions,
 Facilities, and
 Accessibility.
Attractions constitute an important feature of the product. Attractions are those elements in the tourist
product, which determine the choice of the particular tourist product, to visit one particular destination
rather than another. These are things to see and enjoy like cultural sites, historical buildings, beaches,
mountains, national parks, or events like trade fairs,exhibitions, music festivals, etc.
Facilities are those elements in the tourist product, which are a necessary aid to the tourist centre. The
facilities complement the attractions. These include accommodation, food, communications, guides and
so on.
Accessibility is a means by which a tourist can reach the areas where attractions are located. Tourists’
attractions are of little importance if their locations are inaccessible by the normal means of transport. It
also relates to the formalities in reaching the places like visas, customs, bookings etc .In Tourism, the
products are varied. A travel agent may arrange for itineraries and airline bookings and may also help in
getting passport, visas, foreign

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exchange clearances, embarkation facilities at airport and so on. Similarly attractions are added to a
destination. For example, 18 rooms of Buckingham Palace have been opened to visitors, which are a
major tourist attraction to visitors. Apart from the Throne Room, Drawing Room and the Picture Gallery,
the Souvenir shop selling white china mugs with Buckingham Palace written on it or Crystal Balls with
details from the State Dining Room is also apart of the attraction.
A product in tourism is the place of destination and what one may experience while proceedings to and
staying at that destination. For example,Sentose islands of Singapore, is packaged as a place where there
are noshops, no skyscrapers, no offices- a place of quiet and tranquility, torelax and be with nature, so
different from Singapore. Travelling by cable car to the island is also a part of the package.
Places in Rajasthan like Jaisalmer are being offered as tourismproducts to experience the life-style of
Maharajas, living in realpalaces with kingly comforts, travelling on ‘ Palace on Wheels’, theluxuriously
fitted railway train, going hunting (with cameras) onelephant back and so on. The product is not merely
the city of Jaisalmer and what it may offer as historical and cultural importance.The product is the total
experience of travel and other attractions, allrelated to the royalty of Jaisalmer.
The tourism product may be developed with emphasis on art, architecture,culture, religion, history,
sports, leisure, temples, life-styles, etc.
 Himalayas are a product not only for sports and adventure tourism, butalso for nature lovers and
spirituality.
 Varanasi is a product based on religion, the Ganges capturing theessence of Oldest Hindu
heritage.
 The accommodation provided, is as much a part of the safari in theAfrican forests as the prospect
of seeing wild-life. Many prefer and paymore to live in the open country ‘with nature’ instead of
in five-star comfort.
11.6.1 CHARACTERISTICS OF TOURISM PRODUCTS
A product is something that a producer makes and offers to consumers toprovide satisfaction of needs.
Like all products, tourism also needs marketingand it is different from marketing of manufactured goods
since tourism product has different characteristics.
Intangible
Manufactured goods are tangible in the sense that they have physicaldimensions and attributes and can
be seen, felt, or tasted. The tourism productis an intangible product. Take for example, an aviation
industry. One can see the airplane, the facilities provided within, etc. But none of these woulddetermine
the nature and quality of services imparted by the airline. Onecannot see, feel, smell, touch or measure a
service performed. It can only be experienced from the effects produced during the journey.
Inseparability
A physical product is produced in the factory, bought in the shop andconsumed in the customer’s
premises at his convenience. But when thecustomer buys a service like travelling in an airline, the
production and consumption of the services takes place at the same time. The experience ofthe tourist
product exists when it is produced as well as consumed. The servicein the airline is the promptness of
delivery of baggage or courtesy of theairhostess or safety of travel.
Perishability
A manufacturer of a physical product can anticipate the demand in advanceand store the goods in
warehouse and deliver them to the customers at the timeof need. But the supply of the tourism product
cannot be stored because tourism products are highly perishable. A seat in the plane or a room in
thehotel not used today is a total waste. If an advertisement placed in the mediachannel is not seen or
read, it is a waste. If the supply is not used, it perishes.
So, the seats in an aircraft, the rooms in the hotels, the space in the ship, theservices of a tourist guide,
the time of the travel agency, etc. all perish if notutilized when available. What is not sold cannot be
carried forward like stocksto be sold the next day or at any other time.
Ownership

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No ownership passes from seller to buyer in a service. The buyer onlyacquires the right to certain
benefits of what the seller offers. One may havethe right to use a hotel room or a railway berth for a
period of time, but the
ownership of the room or berth remains with the hotel or the railways.
CHECK YOUR PROGRESS- 3
1) Mention in what aspects tourist products are different from manufacturedgoods.
2) Give short answers
a) Can the services of restaurant of a 5-star hotel be over to the beach?
b) The ownership of the plane seat in the Jet airways remains with thecustomer after the departure of the
flight. Comment.
3) In your area, visit
i) Tourist monument,
ii) Museum,
iii) Religious place,
iv) Hotel and
v) Airline office.
Discuss how the characteristics of tourist products discussed above can beapplied to these places you
visited.
11.7 MARKETING MIX IN TOURISM MARKETING
Tourist marketing mix is largely a complex group of factors to achieve the‘end products’, which helps
the marketing manager to understand the demandin relation to supply and marketing investments. A
balanced mix is necessaryto reach this targeted result. The tourist marketing mix can include
thefollowing elements:
The Product
 The characteristics of the product
 Size and facilities offered
 Staff members and their attitudes
 Image, reputation, positioning
The Price
 Normal
 Promotional
 Discounted
 Corporate
 Wholesaler rates
 Seasonal
The Promotion
 Advertising (electronic, press)
 Sales promotion
 Public relations
 Direct mail
The Distribution
 Channels of distribution
 Reservation systems
 Intermediaries (travel agents, tour operators)
 Airlines
 Clubs/ Associations
‘Marketing mix’ has both short-term as well as long-term aspects. Long-term plans are based on study of
natural, economic, social and technological aspectsof the markets and customers. The short-term aspects
relate to price reduction,aggressive promotion, or introduction of a new product in the market.An
Example: New York is one of the largest states and the commercial hub of U.S.A. The city’s major

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tourist attraction is the Broadway Theatre, mountains and lakes, and the famous Niagara Falls. In the late
seventies, the city of NewYork acquired a very bad image when tourists were scared of being
mugged,molested, or burgled. Even if there were only two incidents on an average in aday in a city of
twelve million people, it would be prominently featured in newspapers. Due to this, the number of
visitors to New York decreased, tax revenue declined, and hotel business was badly affected. The
authorities ofNew York decided to change the image of the city and created a new division of marketing
and advertising to create a new image to attract visitors by conducting research to know why tourist
would like to visit New York. There search revealed that most Americans visited New York State for
(a)Broadway Theatre for musicals, and (b) its open country, mountains and lakes.
The State of New York took a number of steps:
 People were encouraged to call up and seek information about New York on a toll-free telephone
number and 95,000 calls were obtained in the first five weeks.
 A variety of publicity material was created to give information about New York.
 A major television campaign was launched highlighting the two attractions, leading Broadway
actors sang a theme song on: I Love New York on the commercials.
 Airlines flying out of New York also created their own TV commercial and started its advertising
campaign.
The campaign was an instant success. Within a year, it was discovered that average hotel occupancy
increased by eighty percent, tax revenues increased,new jobs were created and people started wearing I
Love New York shirts. The change of New York’s image is an example of tourism marketing creating
anew product in the minds of people, which consumers could relate to. The marketers created the
product by fulfilling the needs of the customers.The ‘marketing mix helps in the integrated approach to
marketing. It helps the marketing manager, whether an individual of the firm or an official tourist
organization, to stimulate the demand and to understand where the marketing action can be initiated.

11.8 TOURISM MARKETING STRATEGY

One of the basic considerations for successful marketing strategy is the need for research. It provides the
information base for effective marketing. It relates to providing answers to various questions pertaining
to the marketing activities.
Market research can be defined as the “systematic collection of information relating to supply and
demand for the product in such a way that the information may be used to make decisions about its
policies and objectives”.
In order to formulate any marketing strategy, it is essential for a tourist organization and others engaged
in marketing of tourist products to know the answer of following questions:
a) Who are the persons engaged in tourism and where do they live?
b) Who are the potential customers and where do they come from?
c) What are their likes and dislikes?
d) What are their travel preferences and interests?
e) What do they buy and where do they stay?
f) What mode of transport do they use?
g) What are their entertainment preferences?
h) What are the trends in competition?
i) What type of marketing programmes would be needed?
Market research provides answers to all the above questions. To make the overall marketing efforts
effective and successful, as in the case of manufactured products, the tourist organization has to be
totally aware of the

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trends in travel habits, vacation habits and complete knowledge about potential customers. It is very
important to have detailed information on all aspects of a market. Results of such research will work as a
guideline for
designing and launching a successful marketing programme.A lot of data can be collected through
publications, commercial analysis, trade information, press cuttings, previous studies etc. Other ways to
obtain data are:
Tourism Departments,
Discussion with tourists (customers),
Observation of customers at premises,
Observations and discussions with visitors in exhibitions and trade shows,
Attitudes, image perceptions and awareness studies,
Advertisement and other media response studies,
Studies of usage pattern.
11.10 KEY WORDS
The various key words that arise in this chapter are:
Marketing concept
Marketing mix
Market Research
Market Segmentation
Marketing strategy
Tourism Marketing
11.11 GLOSSARY
Attitude: A person’s consistently favourable or unfavorable evaluations,feelings, and tendencies toward
an object or idea.
Customer satisfaction: The extent to which a product’s perceived performance matches a buyer’s
expectations.
Discount: A straight reduction in price on purchases during a stated period of time.
Product Positioning: The way the product is defined by consumers’ on important attributes- the place the
product occupies in consumers’ minds relative to competing products.
Service: Any activity or benefit that one party can offer to another that is essentially intangible and does
not result in ownership of anything.

LESSON- 12
TOURISM PROMOTION
12.2 PROMOTION
Promotion means activities that communicate the merits of the product andpersuade target customers to
buy it. Ford spends about $2.3 billion each yearon advertising to tell consumers about the company and
its many products.The franchised dealers and salespeople assist potential buyers to buy a Fordcar. Ford
and its dealers offer promotions- sales, cash rebates and lowfinancing rates as purchase incentives.
The promotion activities of marketing are concerned with communication withthe customers that the
product is available at the right price and at the rightplace. The promotional communication aims at
informing and persuading theactual and potential customers into actual purchase of the product.
Aneffective marketing programme moulds all the marketing mix elements –product, price, place and
promotion to achieve the marketing objectives.

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12.2.1 PROMOTIONAL OBJECTIVES
Effective promotion starts from an analysis and formulation of clear-cut objectives. These include:
Identification of the target audience to be reached;
Identification of the purpose of the communication;
Formulation of message to achieve the goal;
Choice of media for delivering the message to the target audience;
Allocation of the budget to achieve the desired purpose;
Evaluation in terms of sales and feedback obtained from the customers.
The more carefully objectives are set the better promotion works. Promotional planning can be done
with a view:
 To create new ideas and attitudes: The purpose could be to create awareness of completely new
tourism products such as Spa and Spirituality in Himalayas.
 To change the image: The purpose could be to change the unfavorable image of an existing
tourism product in the minds of customers. For example New York, in late seventies changed the
image of the city to promote tourism.
 To reinforce the image: Larger firms try to reinforce the attitude of customers to retain their
existing market like visit to Disneyland and destinations like Goa, Uttaranchal and Singapore.
12.3 INTEGRATING COMMUNICATION PROCESS WITH PROMOTION PROGRAMMES
Every consumer goes through various stages of the decision- making processto arrive at a satisfactory
decision. The process of decision-making is a sequence of various steps:
 Need recognition
 Information search
 Evaluation of various alternatives
 Choice of product/ services
 Post-purchase evaluation
The marketing communicator needs to effectively design the promotion programme in order to help the
consumer in making a proper decision. The good communication strategy should address target
consumers needs and wants and help them to choose a particular tourism product.
Steps in Developing Effective Market for Tourism Product
The marketer needs to address various issues while designing the programme to effectively market the
tourism product.
1. Identifying the Target Market: A tourist organization needs to know their target market consisting
of actual and potential customers. The target audience will determine the promotional campaign on what
to say, how to say, when to say, where to say and who will say.
2. Determining the Promotional Objective: Once the target market has been identified, the marketer
must decide about the purpose of promotional activity.
Awareness: The target market may be totally unaware of the product.The communicator needs to make
them aware and knowledgeable about the tourism product.
Preference: If consumers know the product, they need to be made tofeel favourably about the product
and then moved to the stage of being convinced about preferring such a product to other products.
Purchase: Some members of the target market might be convinced about the product, they need to be
taken to the action stage of making an actual purchase of the product. Offering special promotional
prices or rebates can persuade them.
3. Designing a Message:
It is an important step after deciding upon the promotional objective. The communicator needs to
develop an effective message to decide what to say and how to say it. “Incredible India’ campaign on
television is aimed at capturing the attention of viewers about various tourist places all over the India.
4. Choosing the Media:
The communicator must select between personal and non-personal channels ofcommunication.

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Personal communication channels include face-to-face interaction,telephone or mail and are
effective channels of influencing thecustomers of target market.
Non-personal communication channels include media such asnewspapers, magazines, radio,
television, billboards, posters andwebsites. They are a major source to influence, create and reinforce the
image of a product among consumers.
5. Feedback:
After deciding and sending the message, the marketing communicator needs toobtain feedback on its
promotional efforts. They need to know about targetconsumers’ attitudes toward the product and
company. Such feedback facilitates changes in the promotion programme or in the product itself.
Forexample, most of the Airlines and 5-star hotels ask consumers about theirexperience after the flight
or stay in the hotel.
CHECK YOUR PROGRESS- 1
1) What is Promotion and what does it aim at?
2) How is an effective market created for a tourism product with the help ofpromotional tools?

12.4 THE PROMOTIONAL MIX

After knowing about the main objectives of promotion, let us understand thefour main elements of the
promotional mix.
A company’s total marketing communication mix- also called itspromotion mix- consists of the specific
blend of advertising, sales promotion,public relations, and personal selling that the company uses to
pursue itsadvertising and marketing objectives.
The four major promotional tools of promotion are as follows:
1. Advertising: Any paid form of nonpersonal presentation andpromotion of ideas, goods, or services by
an identified sponsor.
2. Sales Promotion: Short term incentives to encourage the purchase orsale of a product or service.
3. Public Relations: Building a good reputation of the company with thepublic by obtaining favorable
publicity, good corporate image, andhandling unfavorable events if any.
4. Personal Selling: The sales force of the company makes personalpresentations to make sales.
Each promotional mix has its own specific tools. For example, advertisingincludes print and broadcast
media. Sales promotion includes discounts, pointofpurchase displays, premiums, and distributing
coupons. Public relationsinclude press releases and special events. Personal selling includes
salespresentation and trade shows.
In this chapter we will examine each category of promotional mix and discussits concept in detail.

12.5 ADVERTISING
Advertising has been defined as any non-personal presentation by an identifiedsponsor for the
promotion of ideas, goods, or services in exchange for value.While in designing the advertising
program, the target audience and messagerequirements should be analyzed carefully.Advertising in
tourism has many uses. They include:
Creating awareness (e.g., Euro Disney launch in 1993);
Advertising a special offer (e.g., a special weekend price for all hotelsof Taj Group);
Providing information on seasonal deals (e.g., Goa hotels deals in therainy season);
Informing about special services (e.g., new timing of an airline duringsummer holiday rush);
Direct selling (tour operator selling cruises through corporatebookings);
Soliciting consumer information (e.g. questionnaire on a new hotel tobe launched to know consumer
profile);
Overcoming negative attitudes (e.g. adverts to assure people after fluscare at a destination)
Reaching a new target audience (e.g. advertisement promotingmountaineering among school
children during summer holidays);
Providing a new use (promoting health tourism in Kerala).

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12.5.1 SOME EXAMPLES OF TOURISM
ADVERTISEMENTS
Britain: In 1970, British Airways created advertisement that attracted lot oftourists from USA to Great
Britain.
London Bridge is in Arizona,
Queen Mary is in California,
Come to Britain
While it lasts!
Singapore: The tropical greenery of Singapore has been described as:
While most countries have a Park in the City
Singapore has a City in the Park.
Thailand: Tourism Authority of Thailand – TAT has jointly advertised with
their only national airlines – Thai International Airways, hotels and otherorganizations to promote
tourism in Thailand.
Visit the world’s Most Exotic Country
Flying the world’s Most Exotic Airline.
(Tourism Authority of Thailand with Thai International).
Discover Asia’s Most Exotic Country with a Touch of Hyatt.
(TAT with Hyatt Hotels).
Where on Earth
Will you find a herd of Elephants?
In a Rose Garden.
(TAT with Rose Garden Resort Hotel).
India: The Department of Tourism, Government of India also advertised inforeign markets to attract
tourists.
India
It is not just another country
It is another world.
12.5.2 CERTAIN COMMON TERMS USED INADVERTISING
A number of technical concepts are needed to be understood in media planning. While selecting media
channel as a tool of promotion, the advertising planner has to decide on
1. Media Class: The basic medium to be used, e.g. T.V, radio or press.
2. Media Vehicle: The individual medium within each selected class e.g.Aastha channel or Discovery
channel within T.V.
3. Media Unit: The specific time or space to be utilized within a vehicle e.g. a 30 second commercial or
half space advertisement.
4. Frequency: An estimate of how many times the advertising campaign is exposed to target audience
over a period of time.
5. Reach: The total percentage of people in the target market who are exposed to the ad campaign
during a given period of time.
6. Impact: The advertiser must decide on the desired media impact of a message through a given
medium. For example, the visual impact of “Incredible India” campaign has more impact on audience if
advertised on T .V as compared to print media.
7. Circulation and Readership: These two concepts are often confused. Circulation is the number of
copies of a print medium sold. Readership is the number of the people who actually read it. Readership
of the newspaper is often 2-3 times higher than its circulation.
12.6 DEVELOPMENT OF ADVERTISING PROGRAMMES
Marketing management must make four important decisions when developing an advertising program:
1. Setting advertising objectives

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2. Setting the advertising budget
3. Selecting advertising Media
4. Evaluating Advertising Campaigns

1. Setting Advertising Objectives

The advertising objectives should be set with a view to define the job and task to be accomplished with
target audience during a specific period of time. Advertising objectives can be done with the purpose to
inform, persuade, or remind.
Informative Advertising is used when
Introducing a new product category,
Suggesting new uses for a product,
Informing the market of a price change,
Describing available services, and
Building a company image.
Persuasive Advertising is done to influence the customer to actual purchase of the product and is
done while
Building brand preference,
Persuading consumer to purchase now,
Changing consumer’s perception about product, and
Encouraging consumer to switch to your brand.
Reminder Advertising results in consumer recalling the product again and again and is done while
Reminding consumer where to buy it,
Reminding consumer during off-season, and
Reminding consumer that the product may be needed in future.

2. Setting the Advertising Budget

In general, marketing of products can be done with a variety of media options available but certain
particular features exist with relation to advertising of
travel and tourism in media:
Tourism has a large and highly fragmented advertising market,consisting of few big enterprises with
huge advertising budgets and a large number of small firms with less to spend on advertising.
Print is the dominant medium in travel and tourism advertising. The higher cost of advertising on TV
has made press a more economical medium to reach the target audience.
Much of the expenditure on travel and tourism is done on brochures, destination guides, and point-
of-sales displays. Tourist Boards, tour operators, and tourist information centers provide large amounts
of information through printed material to prospective customers. These specific factors should be kept
in mind while setting the advertising budget for a tourism product.

3. Selecting Advertising Media

The media planner has to essentially choose the most economical combination of media channels to
reach desired target audience. There are various factors to be considered while appraising the media
options.Some of the main factors in media selection are:
Readership or audience size;
Geographical reach;
Repetition and frequency of advertisement;
Segment target market size;
Unit cost and cost per thousand (cost of reaching thousand people through a particular medium);
Seasonal/ period discounts available;
Availability of medium (prime poster sites have to be booked in advance);
Reproduction quality (glossy magazines provide better visuals than newspaper).

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4. Evaluating Advertising
The evaluation of advertising programmes is done to measure the
Communication effect, and
Sales effect.
The communication effect is measured to know whether the advertisement has resulted in consumer
product awareness, knowledge and preference. It can be done by placing the ad before the consumers
and asking them specific question how they like it and whether it has changed their attitude.
Sales effect is measured by knowing what sales are caused by an ad by comparing sales with advertising
expenditure. However, the sales effect of advertising is more difficult to measure than the
communication effects.
Although advertisers develop strategies to plan their overall advertising efforts, specific advertising
programs must also be developed to meet target customers, local cultures, customs, media availability
and legal regulatory
requirements.
CHECK YOUR PROGRESS-2
1) In the following statements, indicate which one of the four advertisements
(a), (b), (c) or (d) is correct.
i) Promotion may be of
a) Country as a whole
b) Special Attraction
c) Specific destinations
d) All of above.
ii) Advertising means
a) Unpaid form of promotion
b) Promotion by unidentified sponsor
c) Paid form of non personal promotion.
d) Personal form of presentation
iii) In Tourism Marketing, higher cost of advertisements exists in which medium:
a) Press
b) Television
c) Brochures
d) Logos
iv) Readership in print medium refers to:
a) Number of copies sold
b) Number of people who read it
c) Number of people who are influenced by it
d) Number of target audience
2) Design an advertising programme for the cultural festival of your college.

12.6.1 SOME ADVERTISING TECHNIQUES IN TOURISM MARKETING

The advertiser creates the message in such a manner that will capture the target market’s attention and
interest. In tourism marketing some techniques of message presentation have been extensively used by
advertisers over the years such as following:
Slice of life:This technique shows some characters using or discussing the product's uses/benefits. For
example, husband and wife recalling their experiences to a particular destination and decide to visit the
place again.
Lifestyle:This style shows how a particular product fits in with a particular lifestyle.
For example, Uttaranchal Tourism prints advertisement exhorting adventurous people to come for river
rafting in Rishikesh.

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Testimony:The method of selling the product is through the testimony of satisfied customers. A single
person, a number of people or a famous celebrity can do it.
Problem solution:This method starts with a problem, introduces the product and its benefits and shows
the problem resolved at the end. For example, a T.V commercial shows an Indian family that wants to go
to Europe for a tour and there is a problem of choosing a holiday package that provides Indian
vegetarian food during the tour. The advertisement introduces a particular package and its features and
finish with a satisfied family.
Demonstration:This method uses an actual description of the product or its use. For example,an
advertisement showing the interiors of a cruise ship for promotion to make an impact on customers.
Documentary:This TV technique involves using real-life short films of destinations. For example,
Discovery channel showing a documentary on Mystic India or Geographic channel showing a
documentary on wild life of India.
Fantasy:This method creates a fantasy around the product or its use. For example, ads showing a
honeymoon couple enjoying a particular destination for its blissful peace and privacy.
Musical:This method shows one or more people singing about the product. For example, Broadway
actors sang the song ‘I Love New York’ to encourage tourists to visit New York.
The tourist organizations often use a combination of the above-mentioned techniques while promoting
tourist product.

ACTIVITY
1. Design an advertisement to attract domestic tourists inviting them to your state with a focus on any
two tourist products:
a) Famous Dance form of your state
b) Famous Festival celebration
c) Cultural Heritage
d) Wild-Life
e) Fairs and Shopping
2. Collect any two print advertisements of the following tourist products and destinations and compare
them on the basis of information given, text, color and visual outlay.
a) Airlines
b) South India
c) International Hotels
d) Domestic 5-Star Hotels
e) Uttaranchal Tourism
Determine the selling point of these various products on the basis of print advertisements.
3. Visit few websites like www.ruralindiaorg.com and enlighten yourself withthe photo gallery.

12.7 SALES PROMOTION

Sales promotion can be defined as: Those marketing activities other than personal selling and
advertising and publicity that stimulate purchases such as exhibitions, shows, and demonstrations. In a
way they refer to short –term incentives offered to the consumer to induce a booking, reservation or sale.
12.7.1 OBJECTIVES OF SALES PROMOTION
The sales Promotion in tourism is done with the following objectives:
Creating awareness:Sometimes companies devise special promotions like two or more companies join
or tie up together to build awareness. For example, an Airline and hotel group tie-up to promote a
particular destination.
Encouraging early bookings:Tour operators often offer discounts at the start of the season to generate
immediate bookings. For example, Deccan Airways providing airline tickets at auction to Pune, Bombay
or Goa if booked in advance.

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Increase trial:The tourists are encouraged to try the product by giving incentives like free stays or trial
coupons at much discounted prices.
Enhanced repeat buy:Some promotions are done to encourage repeat stays or visits. For example,
Indian Airline offers of multi-coupon discounts to frequent flyers.
Combating competition:Tour operators or hotels may cut down their prices to combat any price cut by
competitors or may be done to block competitors’ moves in advance.
Promote use of tourist product during off- season:When demand is low for hotel rooms, during low
season, special season offers are used to attract customers. For example, Goa hotels offer special
discounts during the rainy season; Jaipur and Agra hotels offer discounts during the summer season.
Motivating sales force:The travel agencies give commission to travel agents for selling a certain
number of tickets. The agents are also provided coupons, free offers, sales aids and training materials.

12.7.2 Techniques of Tourism Sales Promotion

Some of the sales promotion activities used in travel and tourism are as follows:
Rebates: The tourist product is made available at special price less than original price for a limited
period of time.
Discounts: Certain percentage of price is deducted as discount from the original price to induce them to
buy or buy more. For example, hotel stay for two children at discounted price for a particular package.
Refunds: The seller offers to refund a part of the price paid by the customeron previous purchase of the
product.
Contests: These are another form of promotion. In these consumers are required to participate in some
competitive event involving application of skills and winners are given some reward.
Quantity deals: The tourist operator provides special package in which buyer is offered additional
product at lower or no price. For example, a tourist operator coming out with the offer in family package
‘two children for the price of one’.
Some other techniques of sales promotion are:
Vouchers,
Competitions,
Prizes,
Gifts and premium,
Additional night stay,
Slide shows,
Point of purchase displays, and
Posters.
Sales promotion: the Virgin Freeway Membership Card:
In March 1990 Virgin Atlantic announced the Virgin Freeway Card to 3million frequent air travelers to
collect points, which could be redeemed against gliding courses, free travel with Virgin and Orient
Express. These points were added monthly. Other companies involved in the offer were Thomas Cook
Direct, Holiday Inn, Budget Rent-a-car and London City Airport.
Source: The Sunday Times, 25 March 1990.

12.8 PERSONAL SELLING

Selling is one of the oldest professions in the world. Selling is so pervasive that everyone lives by selling
something. In personal selling, an individual performs the task of selling in person by having face-to-
face interaction with the prospective buyer.
In tourism, services provides by the people affects
The sale of the product, and
Customer satisfaction with the tourist product, which is related to the experience of the customer.
Selling has much wider role in services marketing. Selling involves more than making the purchase, it
includes:

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Delivering the product to the customer;
Manner of dealing the enquiries by the travel agent;
The courtesy of the waiter in the restaurant;
The appearance of the receptionist at the front-desk;
The honesty of the cab driver carrying the tourist from airport to hotel;
The politeness of air-hostess on the airline;
The knowledge and presentation of the tourist guide accompanying the tourists from the hotel; and
so on.
The essence of personal selling depends upon the careful training of all sales force and personnel who
are in direct interaction with the public and tourists. As an element of the promotion mix, the sales force
is very effective in
achieving marketing communication objectives. To be successful in personal selling, a company must
first build and manage an effective sales force.
12.9 PUBLIC RELATIONS
Public relations are another major promotional tool of building good relations with the public by
obtaining favourable publicity, good corporate image and handling unfavourable events.
Public relations is used to promote
Products such as Spas in Kerala,
People such as Spirituality Guru or Yoga Guru,
Ideas such as Ayurveda healing for health,
Organizations such as Museums,
Activities such as River rafting and mountaineering, and
Even nations such as ‘Incredible India’ or ‘Malaysia on sale’.
Trade associations have used public relations to rebuild interest in declining interest of the consumers
such as a group of hotels coming together to build a favourable image after the flu scare. Nations have
also used Public relations to attract more tourists such as New York campaign ‘I Love New York’ to
dispel bad images about the city and boost tourism.
12.9.1 PUBLIC RELATIONS TOOLS
Public relation professionals use a variety of methods and tools to influence the public opinion. These
include:
News:News is considered as one of the most credible sources of information for the public. The public
relations department of the company finds or creates favourable news about the company and its product
and people. Certain events and activities are undertaken to create news that is favourably placed before
the public. For example, news can be implanted as to how a particular airline is buying new airbuses to
expand air travel.
Speeches:Speeches can also create product and company publicity. The corporate professionals should
create occasions to arrange talks at trade associations or sales meetings to build the company’s image.
Special events:Events are image-building tools used by organizing news conferences, press tours, grand
openings, multimedia presentations, hot air balloon releases and educational programmes to reach and
interest the target audience.
Written material: Public relations people prepare written material to reach out to and influence their
target markets. This material includes annual reports, brochures, articles, and company newsletters and
magazines.
Audiovisual material: The films, slide- and-sound programmes, and video and audio cassettes can also
be used as communication tools.
Corporate identity material: Such material is created to form a corporate identity that the company
immediately recognizes. Logos, brochures, business cards, uniforms and company cars have become
attractive tools to give a distinctive identity to a company.
Public service activities: The companies improve public goodwill by undertaking some activities and
contributing money and time to public service activities. For example, a tourist association may involve

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itself in the upkeep of a tourist place at a particular destination. Public relation is becoming the most
powerful marketing tool of communication and should be blended smoothly with other promotion
activities.

CHECK YOUR PROGRESS- 3

1. In Tourism Marketing, selling has a significant role to play in promoting a tourism product. Explain
2. Indicate which of the following statement is True (T) or False (F).
a) News is considered as one of the controversial source of information for the public.( )
b) Publicity of a tourist product can be favorable as well as unfavourable.( )
c) Annual Reports, Articles and Brochures are different forms of Public Relations tools.( )
d) Logos help to give distinctive identity to a company.( )
12.12 GLOSSARY
Customer satisfaction: The extent to which a product’s perceived performance matches a buyer’s
expectations.
Marketing communications mix: The specific mix of advertising, personal selling, sales promotion,
and public relations a company uses to pursue its advertising and marketing objectives.
Non-personal Communication Channels: Media that carry messages without personal contact or
feedback, including media, atmosphere, and events.
Personal Communication Channels: Channels through which two or more people communicate
directly with each other, including face-to-face, person to audience, over the telephone, or through the
mail.
Point-of-Purchase Promotion: Display and demonstration that takes place at the point of purchase or
sale.
Selling Concept: The idea that consumers will not buy enough of the organization’s products unless the
organization undertakes a large-scale selling and promotion effort.
Service: Any activity or benefit that one party can offer to another that is essentially intangible and does
not result in the ownership of anything.
Target Market: A set of buyers sharing common needs or characteristics that the company decides to
serve.
12.14 ANSWERS TO CHECK YOUR PROGRESS
Check Your Progress 2
Indicate the option
(1) (d)
(2) (d)
(3) (a)
(4) (b)
Check Your Progress -3
True or False
(a) True
(b) False
(c) True
(d) True

LESSON – 13
INFORMATION & COMMUNICATION TECHNOLOGIES
“Atithi Devo Bhava” - Lets welcome tourists as guests and send them back as friends.” The new
advertisement by the Ministry of Tourism has been seen by all of us. Using Information Technology, this
message, is being sent out for Tourists, Tour operators, Travel agents, public at large for the following
two basic purposes.
(i) To create a sense of security amongst Tourists.

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(ii) To change the attitude towards Tourists in India.
ICT(s) Information Communication Technologies have been transforming tourism globally. The ICT
driven re-engineering has gradually generated anew paradigm-shift completely changing the Industry
structure and developing a whole range of opportunities & threats. The new technologies enable the
customers to customize, purchase and select the tourism products with pace and ease. In fact the
information technologies are undergoing a revolution world over. They are a key determinant for
maximizing the gains. However
the success of ICT deployment requires constant improvement and innovative management. The
customer’s decision risk has increased manifold because he has only information to rely on as he neither
sees or inspects or tries out tourist services before deciding to use them. He can rely on the Internet,
which is the latest product of Information Technology. It is possible once the customer has access to
Internet site; he gets various opportunities out of which E-mail(Electronic-mail) is one. The latest one to
be used is video-conferencing, which is fast being identified as a powerful means of communication
between the service providers of Tourism & the users of such services. In fact the communication
technologies have completely revolutionized the Tourism Industry. Role of Communication
Technologies is vital to any business and particularly to the tourism business. hey are important for cost
savings and improved communications that arise from an internal network. They help in reaching out
and connecting with customers, suppliers and collaborators, which, in the case of Tourism Industry are:
Tourists and Travellers
Tour operators and Travel agents
Hotels & all the other types of accommodation
Airways, Railways and Roadways
To be precise, following benefits are offered by telecommunication to Tourism as well as other
businesses:
Enables sharing and dissemination of information of all tourism partners.
Promotes new ways of tourism partnership.
Helps geographically separate persons to come together.
Restructure relationship with partners.
However the communication technologies are also prone to following limitations:
High initial set-up cost
Practical difficulties
Security Risks
Inspite of the above mentioned limitations, Information Communication Technologies are being used in
a big way by the Tourism Industry. In fact, it will not be wrong to say that no successful Tour operator or
Travel Agent can function without using information technologies. It is, therefore, extremely significant
to the Tourism Industry. It will be appropriate here to extend the following quote.
“A Journey of a thousand miles must begin with a single step” Lao Tzu.“No single step by a tourist can
be taken without using Information Technologies”.
13.1 OBJECTIVES
So far you have learnt about the concept of marketing and understood that Tourism marketing stands
apart from marketing of other products and their advertising techniques and Public relations are also
unique. After having this basic knowledge, with respect to tourism marketing, this lesson will deal
withthe basic concepts of information technologies in tourism marketing.

After having gone through this lesson, you should be able to:
Understand Tourism with respect to changing communication technologies.
Define & explain different information technologies.
Realize the benefits of information technologies for the user as well as Tour & Travel agents.
Know various sectors of Tourism that require information technologies.
Understand the role of Information Technologies in Information Centres.

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Understand how the use of information technology has led to the growth of Tourism world over.
13.2 COMMUNICATION TECHNOLOGY:
SIGNIFICANCE
The communication technology is significant in tourism industry in following ways:
Results in enhancement of processing capabilities.
Possibility of handling complex details with increase in speed.
Enables central control & outsourcing of non-core functions.
Allows organizations to use their resources more wisely & profitably.
Most devices result in information power storage & profitability.
Helps in development of extensive growth between partner organizations & between employees,
consumers and organizations.
Information technology devices help in linking and sharing data and processes electronically, to
build complementary services, expand, reach and enhance collaboration.
Creates a sense of security amongst tourists and also provides a friendly environment.
Develops new avenues and new tourist spots.
Helps in sustaining and promoting the existing ones.
Davis and Meyer (1998) state “Almost instantaneous communication and computation, for example, are
shrinking time and focusing us on speed. Connectivity is putting everybody and everything on line in
one way or the other and has led to the “the death of distance”, a shrinking of space.
Intangible value of all kinds, like services and information is growing explosively reducing the
importance of tangible mass”. The above opinion clearly highlights the importance and impact of
emerging communication technologies in this highly dynamic industry. The concept of “Global Village”
would be very appropriate in this scenario because it is growing communication technologies, which
have opened doors for tourists and travellers and have made availability of information only with the
press of a button, with the help of several new Information Technologies.
CHECK YOUR PROGRESS
(a) Do you think that a tour operator or travel agent can function without using communication
technologies?
(b) In what ways have these technologies helped the Tourism Industry? State at least three benefits?
(c) Do you think these communication technologies are prone to any limitations? If yes, state how?

13.3 NEW INFORMATION TECHNOLOGIES

a) Computer Technology
b) Satellite Television
c) Cable Television Technology
d) Videotex Technology
e) Teletex Technology
f) Telefax Technology
g) Telecopy Technology
h) Internet and Travel & Tourism
i) Websites
j) Sky Track Technology
(a) Computer Technology
Computer is a tool, which is capable of processing a very large amount of data rapidly, or it is any
device capable of processing information to produce a desired result.
No matter how large or small they are,computers typically perform their work in three well-defined
steps:
(i) Accepting input
(ii) Processing the input according to predefined rules(programs)
(iii) Producing output

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Computer is a multi-function electronic device that can execute instructions to perform a task. Therefore
an electronic device that performs pre-defined or programmed computations at a high speed and with
great accuracy; a machine that is used to store, transfer, and transform information is known as
“Computer” to us.
It has made its entry in the field of tourism in a big way. In fact,computers are in use in some way or the
other in various branches of tourism since the early sixties. Be it travel agencies, hotels, Airlines or
recently even in the Railways, Computers have played a key role in making the task of providers of
travel services an easy affair. Not only this, through home terminals, computers are undertaking, among
other jobs, the planning of vacations for an individual and his family.Computer applications are used in:
Airlines
Cargo
Hotels
Terminals
Travel Agency
Railways
In the year 1983 – Thompson Holidays first used computers using online programmes and introduced
reservations via Prestel. Several other big tour operators, since then used similar to sell their various
programmes. Similarly, the Hospitality Industry has vast applications of computers; some other major
applications are given as under.

(b) Satellite Television

Satellite television is television operated by means of orbiting communication satellites located 37,000
km (22,300 miles) above the earth’s surface. The first satellite television signal was relayed from Europe
to the Telstar satellite over North America in 1962. The first domestic North American satellite to carry
television was Canada’s Anik 1, which was launched in 1973. Satellite can also be described as a
television system in which the signal is transmitted to an orbiting satellite that receives the signal and
amplifies it and transmits it back to earth. Therefore, it refers to courses that are broadcast, usually live,
by an electronic signal sent to a satellite orbiting the earth and then retrieved by a satellite dish. The
satellite dish broadcasting the programme is called an “uplink”, and the receiving dish is called a
“downlink”.For Tour operators, as well as Travel agents it serves as a linking device for making
available the information of one corner of world to the other corner and Tourists are also, accordingly,
benefitted by this linking device.
(C) Cable Television Technology: Cable television or Community Antenna Television (CATV) (and
often shortened to ‘cable’) is a system of providing television, FM radio programming and other services

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to consumers via radio waves transmitted directly to people’s televisions through fixed coaxial cables as
opposed to the over-the-air method used in traditional television broadcasting (via radio waves) in which
a television antenna is required. Cable system covering defined areas, such as the UK’s franchise to
install and operate a cable system granted by the Cable Authority and Department of Trade and Industry,
offering TV channel output and, increasingly, local loop digital telephony services. The Cable Television
Association is the CATV industry’s representative organization. Therefore it is a transmission system
that distributes and broadcasts television signals and other services by means of a coaxial cable.
Cable Television Technology has also greatly helped in information transfer and information sharing.
Therefore, it has brought the tourists, the tour operators and the destinations close. It immensely helps in
advertising and marketing of Tourism products.
(d) Videotex Technology: Videotex is a system for sending of pages of text to a user in computer form,
typically to be displayed on a television. It is computer technology of the 1980s that uses ordinary
television sets, or similar low-cost monitors, to display computer information. Videotex systems, such
asCanada’s Telidon, were a complete commercial failure in North America, but achieved a modicum of
success in Europe – e.g. France’s Teletel and, to a much lesser degree, the UK’s Prestel. Therefore, it is
aform of electronic publishing consisting of computer-generated text distributed through
telecommunications and received and viewed on home television.It occupies a special position among
the ‘new media’. It plays a key role in the link between telecommunication and the computer sciences.
Its advantage lies in the possibility it provides for linking computers and also in its interactive dialogue
capabilities. Using Videotex, information and communication systems can be converted into interactive
systems capable of communicating with one another. In fact, Videotex is a multipurpose instrument with
multiplicity of uses. It serves as:
an instrument for data processing
an information medium
an organizational aid
a communication system
a marketing instrument
This relatively new service connects various forms of use of the above mentioned facilities and at the
same time offers some other possibilities.To operate this service, a television set with a decoder and
telephone is necessary, without which the service cannot operate. In Europe, nearly all the households
have television sets and a telephone & with the help ofVedeotex, separate households can be reached in
large areas. Members of German BTX service as well as Members of France Telecom services can now
obtain all kinds of information from external computers or use data bank all through their television sets.
In many other European countries & USA, similar systems are in use. It is being used in a big way in

Tourism, also in India because

It allows rapid message transmission
Fast & inexpensive data collection
Keeps up-to-date information, which is crucial for advertising
It has been found that Videotex is the most advantageous means of Communication, taking into account
its low cost and wider range of applications.This technology enables the tour operators and travel agents
or hoteliers to send complete pages of information text to the tourist to assist him in deciding and
finalizing his tour plans.Satellite, Cable & Videotex technologies are very important because of their
wider coverage and their technical methods of transmission, however, they have one shortcoming that
none can be directed to one specific person. In addition, the person receiving information is only
partially informed. The receiver of information cannot also start a dialogue or communicate.
However, the following gives possibility of direct transmission of information to a single consumer:

(e) Teletex Technology:Teletex is a text and document communications service that could be provided
over telephone lines. Teletex allows for the transmission and outing of Group 4 facsimile documents.It is

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neither like Telex nor like Teletex. Although it may not be as versatile a technology as some others that
have been mentioned earlier in
this lesson, but helps in transmitting information which is required by a tourist from a tour operator,
Travel agent or a Hotel. Computer information and even copies of documents can be transferred to the
tourist with efficiency.
It is an improvement over telex & has in fact developed from it. The receiver for Teletex is an electronic
‘typewriter’, which can send electronically enriched ‘letters’ to owners of ordinary telex equipment.The
transmission of message time is usually shorter in comparison with time taken with telex. Besides, it is
also possible to transmit more office typewriters, symbols. A normal electronic typewriter can also be
used as a receiver for telefax.
(f) Telefax Technology:It is an electronic post office box system. Each member of the system has his or
her ‘post office box’ in the computer, where other members can leave their message. The owner of each
box can electronically contact the others. All the above means discussed permit the exchange of
information electronically through a data ‘network’. The exchange of information between the members
with the assistance of electronic transmission is very fast. The data is also available in written form
inprint outs. ‘Network’ is a system of transmission linking facilities for automatic data processing. In
this way, different computers are connected, permitting data exchange and processing over long
distances.Telecommunication is possible only when there is such a network available. Telephone is the
simplest and best communication network. In addition there is also separate clear data network for the
exchange of data,which works digitally. In this way, a high transmission speed is achieved and there is a
very low ratio of errors during transmission. There are different types of networks, which can be used
for telecommunication purposes either separately or combined. In Tourism, in addition to travel agents,
tour operators, hoteliers, airlines, travel journalist’s etc. use this technology.
(g) Telecopy :It provides the possibility of exchanging photocopies through a data network. Information,
in the form of either written document or technical drawing, is remote copied. This means that two
facilities for copying are connected. One at the sender’s end and the other at the receiver’s
end.Transmission time is only a few minutes. Usually the details of packages,booking details or list of
itineraries are sent to this tourist by the Tour operator, Travel agent or the Hotel.
(h) Internet and Travel and Tourism:So far the information technology dealt with has been of the kind
where intermediaries, travel agents, tour operators etc. are an indispensable partin the distribution and
marketing of travel and tourism products, and as an important point of sale or product outlets. This is an
information technology where the producer and the consumer are directly communicating, by putting the
indispensability of travel intermediaries in question.
As has been discussed earlier, the intangibility of the product where risk and uncertainty for the
customer is higher, his need for reliable prepurchase information is stronger.Through Internet, which is
the latest product of information technology,this need is fulfilled. This interactive information-supplying
medium is user friendly and gives enormous information of all kinds related to travel. Apart from
supplying information about the world’s leading and emerging tourist destination of all kinds, it is now
possible to book andbuy holidays through Internet using plastic money. It gives information on all
Airlines, Hotels and Car hire companies, which are in its database.
Microsoft is a travel agent. Its Internet site branded Expedia is one ofthe most important examples of the
new generation of travel intermediaries. Distribution of travel and tourism products using the Internet
has a substantial cost reduction advantage for providers of tourism services. The cost incurred by
suppliers in receiving a customer booking is the one, which is costly. So, Internet gives a practical aid
both in supplying information and receiving bookings or selling tourism products on the principal’s
behalf.
Marketing tourism products on the Internet is also possible. This is done through the page of the
company’s Internet site. Once the company gets access to the Internet, it gets various opportunities. Of
these, Electronic mail (e-mail) is one. As a tourism product supplier, especially with business travel as a
selected target market, it can communicate with theperson through his/her e-mail address wherever the

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client is. Unlike telephone communication, there is no need for the presence of the receiver of the
message during message transmission. It also gives a typed copy of the message. E-mail communication
medium is very cheap yet efficient and effective. On the other hand, marketing on the Internet has an
advantage of being used by all company’s of all sizes as long as they can establish their Web Site on the
Internet.
(i) Websites
A website is a collection of all pages under one domain. Sometimes, the subdirectories of large ISP(s)
are also referred to as websites as they have been designed by different users and with different interests
in mind.
Benefits of Websites
No matter how small or large a business is, one can profit enormously from a website in following ways.
Reduces advertising costs.
Information remains on line & always up-to-date.
Pictures, product description, newly won awards, customer questions and instruction videos are
possible on the web-site.
Announcement of a package, deal, and sale can be promptly updated on the website.
Customers find it simpler to surf the net and log-on to the websites for desired information.
Websites almost eliminate waste of time in travelling for the desired information centre.
The tourist can make use of the websites, sitting back at home for making tour plans. Accordingly
enormous websites are there by tour operators, travel agents, Hotels etc, some of which are given below.
Luxury Resortsindia.com
Destinations India.com
Jaipur JodhpurUdaipur.com
India Tours & Travels.com
Asia Tours & Travel.com
TravelinIndia.com
(j) Sky Track
It is an automated airline reservation system, which enables travel agents to make bookings on hundreds
of world’s airlines using standard Prestel Television set and a keyboard. Possibility of direct
transmission between tourists, tour operators and travel agents. This system invented by British Telecom
is a way of providing computerized information terminal. The only requirement is a Telephone line and
a standard colour Television set with an Adapter to link it to a decoder and keyboard. The information
istransmitted quickly and accurately via ordinary telephone lines. The required information is rapidly
transmitted through this technology and is very helpful in providing desired information to tourists.

Information Communication Technology Benefits

All the above mentioned Information Technologies have provided the following benefits.

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CHECK YOUR PROGRESS
(a) Think about the Websites searched by you before undertaking a tour &write a few website names?
(b) The first domestic North American Satellite was Canada’s
(d) Satellites, Videotax & Cable Technologies have a limitation which other information technologies do
not have. Is the statement true/false? Give reasons for your answer.
Tourism industry is made up of three major components which have been studied by you in the previous
units.
i) Transport sector including air, water & surface transport.
ii) Accommodation sector that offers lodging to visitors.
iii) Attraction sector, both natural & man-made.
Information technology plays a very significant role in all the three areas,which are being discussed as
under, highlighting the contribution of Information Technology in each sector.

13.4 INFORMATION TECHNOLOGY IN THETRANSPORT SECTOR

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Transport provides the essential link between tourism origin and destination areas and facilitates the
movement of holidaymakers, business travellers, people visiting friends and relatives and those
undertaking educational and health tourism. Before setting out on a journey of any kind, every traveler
makes sure which Transport Company has a good safety record. To this effect, airplane coaches and
even taxis are equipped with good communication equipment. An Airplane flies with the help of modern
information technology equipment, which provides information ranging from weather, altitude and other
information to the pilot, to communication made during emergency by the pilot with other airplanes and
air traffic control stations. In-flight entertainment is also a product of information technology, video
games, video films are examples.
In the case of buses/coaches and taxis, in many countries with developed tourism business, they are
equipped with radio communication systems for various uses. For example, the driver or the tour guide
updates the Tour
Company headquarters about the progress of the tour throughout the touring period. This
communication ensures the safety of tourists. Fast and easy information flow is of paramount
importance to build confidence in the
travelling public. In recent years, the confidence built due to the use of modern IT has been
demonstrated by a tremendous increase in the number of travellers worldwide.
13.5 INFORMATION TECHNOLOGY IN THEACCOMMODATION SECTOR
In the accommodation sector also the contribution of information technology is prominent. Any
individual or group wishing to travel to any part of the world now has an easy access to the
accommodation service providers. A visitor can access information about the kind of hotels at the
destination, their ranges of product, the price and other relevant information without leaving his/her
office or home. What one has to do is to ring up a travel agency and get the expert advice. This will help
any visitor greatly as to where to stay during any kind of trip away from home. Here the information can
be obtained aided by still or moving pictures in order to give an exact feature of an accommodation,
facilities and services of one’s choice. At a destination also visitors are at ease during their stay in every
respect, in getting information about their business, family or other information back home.
They are also at ease to relaxing with the videos and television entertainment programmes, which
nowadays are part and parcel of many accommodation units.
13.6 INFORMATION TECHNOLOGY IN THE ATTRACTION SECTOR
In the case of attractions, both man-made and natural the owners need to communicate or inform their
customers and potential customers about their product. Information about the kind of attraction, where it
is located and how to get there is of vital importance. The attraction owners, particularly the national
tourist offices, discharge their duty of promoting their country’s tourist attractions using the information
technology products. Information through promotional videos, Internet web Sites, television
advertisements and travel documentaries are the main information dissemination tools. There is, infact,
competition amongst tour operation to create better and better sites for the user to enable the tourist to
decide in their favour. More and more people around the Globe are getting computer literate or so to say
computer savvy,due to which, they have increasingly become information seekers. Before deciding on
the desired destination, they not only rely on the sites of tour operators or travel agents, they even take
feedback from other travellers to find out about their experiences. In the Attraction Sector
communication technologies are thus very significant.

13.7 INFORMATION CENTERS &COMMUNICATION TECHNOLOGIES

Several information centres & tourist offices of Government of India are currently located at India &
abroad. Overseas offices are located in Australia,Canada, France, Germany, Italy, Japan, Netherlands,
Singapore, Spain,Sweden, UAE, U.K., U.S.A., New York, Israel, the Russian Federation andSouth
Africa.With the help of Information communication Technologies, offices within India perform the
following function.

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13.8 INFORMATION TECHNOLOGY ANDGROWTH OF TOURISM WORLD OVER

It was in 1908 that the first move was made for promoting tourism by only three countries namely
Spain, France and Portugal who founded the France Hispano Portuguese. Federation of Tourist
Association is considered the first international tourist organization. After first the World War, several
other countries realized the need as well, but due to lack of communication technologies, the endeavour
could not take off inspite of setting up the
International Union of National Tourist Propaganda Organization (IUNTPO)in 1925. After the Second
World War, this endeavour was revived from theyear 1963. With the revolution in the Information
Communication
Technologies the world Tourism, as a joint effort gained momentum. It was inthe 1980s that the Tourist
did not feel lost or insecure due to lack of information. Interestingly, during the same period, India was
perceived as a
country, which was backward and inhabited with wildlife and natives because India lagged far behind in
growth of communication technologies. It was only the late 1980s due to the advent of computer
technology in a big way &
satellite network that India could change that perception among foreigners.India also saw tourism
increasing due to changed perceptions, advertising,marketing and attracting the tourists using
information technologies.

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Currently, tourist arrivals are predicted to grow by an average 4.3 % a year over the next two decades,
while receipts from international tourism will climb by 6.7% a year.
Tourism: Mega Trends for the 21st century.
Globalization versus localization
Electronic technology will become all-powerful in influencing destination choice and distribution
Fast track travel – emphasis will be placed on facilitation and thespeeding up of the travel process
Customers ‘call the shots’ through technology such as CDRO Matlases, internet, internet inspection
of hotels and other facilities,brokers offering discounted rooms on websites, last minute emails, lowfares
etc.
The tourist world shrinking by the day, due to technology, the tourist is nearly reaching ‘space
tourism’
Growing impact of technologies, helping aggressive campaign is kindling the urge for travel
consumption.
However, growth and related benefits of tourism cannot be taken for granted.
The competition among countries, tour operators, destinations, etc. is becoming so fierce, that, in order
to be a winner the following imperatives will have to be kept in mind by every country
Development focused on quality & responsibility
Value for money
Full utilization of information technology to identify & communicate effectively with market
segments & niches.
CHECK YOUR PROGRESS
(a) Which technologies are not directed towards an individual customer?
(b) Name three countries where the offices of Govt. of India have been setup?
(c) State why growth related benefits of tourism cannot be taken forgranted?

13.10 SELF ASSESSMENT QUESTIONS

(a) Suggest some benefits of Information Technology
(b) Write about at least four new Information Technologies, which areused in Tourism.
(c) Write some advantages that the user and the Travel & Tour operatorsderive from the Information &
Communication Technologies.
(d) Write briefly about the three major components of Tourism & howInformation Communication
Technology is contributing to theirsuccess.
(e) Using which Information Technologies do the attraction ownerspromote their products?
(f) Suggest how Tourism can be improved in India with the help ofInformation & Communication
Technologies.
13.11 GLOSSARY
1. Global village
2. Uplink down-link
3. Local loop
4. Digital telephony
5. Prestel
6. Teletel
7. Telex
8. Website
13.12 KEYWORDS
1. Computer
2. Satellite
3. Cable Technology
4. Videotax
5. Teletex

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6. Telefax
7. Telecopy
8. Internet
9. Websites
10. Sky track
LESSON – 14
COMPUTER RESERVATION SYSTEM
“The world is a Book and those who do not travel read only a page” St.Augustine We have already
learnt in the previous lesson that Travellers and Tourists increasingly use ICT (Information
Communication Technologies)
throughout all phases of their trip, beginning with information search and booking before the trip, some
of the examples of such technologies used, enroute, by them are as follows:
Mobile technologies
Hand-held devices
Interactive Kiosks
Internet access
Personal web-sites
Virtual Communities
E-mail, news letters
Blogs
The reasons for using technology would often depend upon the context of life and the specific needs of
the consumer at a particular point of time. The present customer not only has many demands but also
changes his demands rapidly. The customer of today looks for comfort and ease while on the journey,
during travel or sight-seeing. The greater use of on-line systems confirm that consumers seek
experiences, fantasies, feelings, friends and fun,in addition to functional benefits while using
communication technologies.The technology which is now being increasingly used by the hospitality
industry and travel agencies is the computer reservation system.

14.1 OBJECTIVES
You are already familiar with new communication and information technologies in tourism. This lesson
will go a little further and after having gone through this lesson you will be able to:
Understand Computer Reservation System
Procedure of reservation
Define the utility of CRS
Learn communication technology uses in the hospitality and travel business
Know the customer of tomorrow and his needs
Understand the tourist trends influenced by ICT
Make suggestions for increasing efficiency & improvement in ICT tourism.
14.2 COMPUTER RESERVATION SYSTEM(CRS)
Travel agents/Tour operators, who use computers, are viewed as automated agencies. They use
following two types of automation:
Sales Automation
Business Automation
Sales automation refers to the use of computer reservation system to handle sales and ticketing which
has been explained to you in the previous unit,
Lesson – 8. Business automation, however, refers to the use of computers to handle accounting and keep
records.
A computer reservation system, or CRS, is a computerized system used to store and retrieve information
and conduct transactions related to travel.Originally designed and operated by airlines, they were later
extended to travel agents as a sales channel; major CRS operations are also known as Global

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Distribution Systems (GDS). Airlines have divested most of their direct holdings to dedicated Global
Distribution System companies, and many systems are now accessible to consumers through Internet
gateways for hotels, rental cars, and other services as well as airline tickets.
Computer Reservation System was first used in the 1950s by the Airlines who are till date viewed as
pioneers in this area. Subsequently, all Airlines used the CRS, which is at present, indispensable to all
Airlines, none of which can function without CRS.
However, its potential as quickly realized and it is now being used as aversatile system, by the
Hospitality Industry
Travel Agencies
Car-hiring services
This technology works by using special kind of computers and leased telephone lines. The respective
travel/tour/hotels, etc. are connected on-line to the central Host computer system or CRS. The Host
computer is always a main-frame with enormous data-base attached. The main frame host polls each
terminal every second to see whether any message has been received.Therefore, in the system, it is
possible for Airlines, Hotels, Tour operators,travel agents to remain connected to each other. This system
has contributed a great deal in the following areas:
Increased sales volume
Providing precise information
Selling the product efficiently
Increase in profitability
However all the big companies are today facing challenges and have begun selectively migrating
processes from their legacy mainframe platforms to service oriented architectures (SOA). By utilizing
high performance, lower cost open systems platforms in an SOA approach, they further improve their
capacity to cost effectively handle a fast-rising “look-to-book” ratio, i.e., the number of shopping
transactions compared to actual purchases. The explosive growth of this ratio was driven initially by the
creation and utilization of robotic software and, more recently, by the rapid growth of consumers’
multisite shopping behavior on the Internet.
Beginning in 2004, several companies – including ITA Software, G2 Switchworks, Farelogix, and
Innovative Network Systems – claimed to be developing complete GDS alternatives. The new entrants
tout lower fees and greater flexibility. Unsurprisingly, the big four GDS companies cast doubt ontheir
viability.
However, it is still very uncommon for a travel agency to operate without the use of at least one of the
big four GDS systems. The GDS companies are playing catch-up in the technology arena. All now have
a browser based system.

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Functions of CRS
Fare display
Flight availability display
Flight booking
Storage of passenger records

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Queue functions/ waiting line
Ticket & documentation production
Auxiliary segments
General information
A CRS can also be used to display reference information, such as weatherforecasts, in-flight services,
foreign exchange rates, city descriptions and soon. The encode/decode function is used to determine
codes for airlines, cities,airports, countries and equipments.

14.3 PROCEDURES OF RESERVATION THROUGH COMPUTER

This reservation can be made by the Tourist easily if he/she has basicoperational knowledge of
computers. To understand the reservation systemfollowing areas are being discussed.
1. Making a Reservation
2. Delete a Reservation
3. Checking Reservation status
4. Check out & return
5. Advance reservations
6. Same day reservations

1. Making a Reservation
i. Enter the Web Page “Computer Reservation System” (CRS) by clicking ‘CSC Mobile Computer
Service’ link under “Facilities Booking” section of “School Services” within City U e-Portal.
ii Click the ‘Reserve Notebook’ button from the menu bar in the upper screen.
There are 3 classes of users:
Class A Users can make reservation 2 days in advance
Class B Users can make reservation 1 day in advance
Class C Users can make to-day in advance
 Click the corresponding ‘Reserve’ button from the panel if the desired reservation date and
session is available for reservation.
 Click the ‘Reservation’ button in the window to confirm the reservation.
 Click the ‘Close’ button in the “Reservation Completed Successfully’ window.
 Click the ‘Logout’ button from the menu bar in the CRS Webpage to log out the system and
complete the process.
2. Delete a Reservation
 Enter the Web Page “Computer Reservation System” (CRS)by clicking ‘CSC Mobile Computer
Service’ link under“Facilities Booking” section of “School Services” within CityU e-Portal.
 Click the ‘Amend My Reservation’ button from the menu bar in the upper screen.
 From the “My Notebook PC Reservation(s)” panel showing information on reference ‘Confirm’
button to confirm the cancellation.
 The corresponding point added due to reservation will not be deducted system cancellation is
made.
 Click the ‘Logout’ button from the menu bar in the CRS Webpage to log out of the system and
complete the process.
3. Check Reservation Status
 Enter the Web Page “Computer Reservation System” (CRS)by clicking ‘CSC Mobile
Computer service’ link under“Facilities Booking” section of “School Services” within City U-e-
Portal.
 Click the ‘Check Status’ button from the menu bar in the upper screen.
 From the “My Notebook PC Reservation Account” panel, you can find information on
reservation account, type of student, user class, priority point, number of reservations

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 made,validity (from and to), status and the ‘Reservation History’ button. Click the button if you
want to examine the reservation history. If you do so, the “Notebook PC History” window will
be displayed showing the information on reservation date,reservation session, check out time,
return time, status as well as point(s) added. Then, click the ‘Close’ button to close the window.
 From the “My Loan History” (including those without reservation) panel, you can find the
information on reference number, session date, time, stock type, stock number, points(s)added,
check out time, return and return status.
 Click the ‘Logout’ button from the menu bar in the CRS Webpage to log out of the system and
complete the process.
4. Procedures on Check out and Return
Check Out
 Place your ID card on the smart card reader (Mobile Computer Service Counter [Counter] staff
may ask for further identification, if necessary.
 Enter your password through the keyboard at the Counter as informed by the voice message.
 Collect a notebook with its accessories and a hand-carrying bag.
 Check the notebook and its accessories quickly before leaving the Counter.
 Carry out the further inspection
Return
 Turn on the computer in a Windows environment.
 Leave the Counter only after hearing the voice message “thank you for using our service”,
indicates that the return record has been cleared by the counter staff.
If the return procedures are successfully completed, corresponding record will be cleared and electronic
mail will be sent to you.

5. Advance reservations
You can make reservations via the Internet, by personal computer or mobile telephone.
a. Date of Start of acceptance of advance reservations: February25, 2005 (tentative for instance).
b. Reservation period: from 9:00 AM one month before the day of admission to 12 midnight two days
before; advance reservations will not be accepted on the day before or on the day of the visit/event.
c. Advance reservations will be accepted for about 20 percent of the seating capacity.
d. No more than two advance reservations will be accepted from the same visitor for the same day.

6. Same-day reservations
Through the same-day reservation service, you can make reservations for pavilions and certain other
facilities after entering the site. To do so, hold your ticket up to the special reservation terminal installed
on the ground of the pavilion or other facility and reserve the earliest time.
i. No more than one same-day reservation will be accepted from the same visitor.
ii. Visitors will be able to make another same-day reservation after the event.
Same-day reservation cannot be cancelled.
CHECK YOUR PROGRESS
1. CRS is being used in which area of tourism.
2. State three benefits of CRS
3. Assignments that you have to take a tour next month an advance reservation for yourself

14.4 ROLE OF COMPUTER IN RESERVATIONS

(a) Computer in Airlines
(b) Computer in Cargo
(c) Computers in Hotels
(d) Computers in Railways

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(e) Computers in Travel Agencies

(a) Computers in Airlines:

The sudden growth about thirty years ago in the global travel meant a huge pressure on the existing
handling of air traffic, especially, the passenger traffic for the airlines. It was then that a need was felt to
computerize passenger reservation systems in major airlines. Growth patterns in passenger traffic had
begun to indicate that handling reservations manually could not be sustained long without affecting the
efficiency in the customer service. It was in the early 1960s, that IBM took the initiative and developed a
computerized reservation system known as Programmed Airlines Reservation System, PARS. The
system was not developed for or with any one airline. It was designed as an all purpose software
package that would fit the requirements of any domestic airline. The system was designed around IBM’s
new hardware range system 360, which was later to revolutionize the entire computer industry.It became
obvious that the system was too costly for smaller international airlines. These airlines developed their
own IBM oriented reservation systems in the early 1970s. The system developed was
known as PARC (C for compact). This system was followed by a system known as Univac Standard
Airline System, USAS. With the passing of the years, more and more systems developed, incorporating
more functions to enable the airlines to have more transactions and instructions. The popularity of any
system to a large extent also depends on its coverage and online reservation network. The number of
terminals, which a system has, is also an important consideration. The more terminals a system has, the
larger will be the online reservation network. The number of reservation transactions carried out by a
system in a given time is yet another important aspect to be considered by an airline before using a
system. To sum up, the following main aspects are important to make a system perfect and universally
acceptable:
Number of reservation transaction to be handled
Data links with other airlines
Information processing capacity
Data volume capacity
Recently a major advance has been made, in the airline reservationsystems in West Germany. A
computer system capable of carryingout as many as 1000 reservation transactions every
second,involving data links with 28 airlines, a host of car hire agencies andhotels and about 20000 travel
agencies in Europe alone has been set up at Eroding in the southern part of Germany. The systemknown
as ‘Amadeus’, has been developed jointly at a cost of DM350 million by four airlines, Air France,
Iberia, SAS andLufthansa.

(b) Computer in Cargo

Most of the airlines are now using computers for cargo handling operations as well. The handling of
cargo shipments on ground is a costly affair and the cost has been increasing over the years.
Almost 50 per cent of the handling of cargo shipment reflects the cost of manual information processing.
Freight rate increases have not kept pace with cost increases, so airlines had either to accept reduced
margins or take steps to reduce overheads.
Computerization of cargo has helped reduce costs as this speeds up the handling of information related
to consignments and also reduces the time the cargo spends on the ground. The pioneer in cargo
computerization was Alitalia, whose PO 4-cargo system was adopted and modified by many major
airlines, such as Swissair,
TWA and British Airways. Univac’s USA has a fully developed cargo module. Almost all major airlines
in the world have now adopted one or the other system of cargo computerization. To sum up,
computerization in airlines has the following major advantages:
High profile applications like reservations
Applications of departure, control and cargo
Forecasting and planning

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Engineering management
Revenue accounting
Fare construction and fare quotations
Ticket printing
Crew scheduling
Crew management
Yield optimization
In addition to the above, airlines derive several other advantages from the use of computers. Each airline
is developing its own system to suit its requirements. In addition to the airlines, the computer industry
itself has also benefited a lot with the introduction of computerization in airlines.

(c) Computers in Hotels

Computers in the hotel industry started being used as far back as in the late 1960s; it was only in the
1970s that the technological advances in the computer technology made possible the right combination
of compactness and versatility for different sizes of hotels. The lower cost encouraged many individual
hotels to install the system. Today computers are installed in large numbers and are widely accepted in
the hotel industry. One of the most important factors for its large-scale acceptance in the industry has
been its reliability. The computer system has been found to be very reliable in the dissemination of the
right kind of information at the push of a button. Hotel industry today is a major market for the computer
manufacturers and the software vendors. It has been increasingly realized that the hotel computer
systems achieve better internal and external control and through the use of analysis methods, provide the
opportunity to improve the overall profitability of the unit. Like in the airlines, the computes offer
substantial advantages for reservation systems in terms of speed and accuracy.

(d) Computers in Railways

Railway systems in Europe and some other countries are now using computers extensively. In countries
like France, Germany and Belgium, to name a few, computers have been in use for over adecade. The
most important use of computers in Railways, however, is in the area of ticket reservation. The
information regarding availability of seats is now available instantly in various networks. In addition to
the use of computers by railway retail
agents, travel agents and tour operators, these are also being used directly by the railway systems.
Railway systems use the computers for route planning, engineering, accounting, inventory planning and
control, purchase and a host of other functions. The most remarkable use of computer in railways has,
however, been made by France. The metro system in Paris is one of the best in the world. France has
been making great advances in the reservations,
hotel accommodation, amendments and cancellations, processing of documents such tickets, processing,
account and management information, etc. just at the push of a button and this has proved tobe a boom
to the travel industry. India has also started using CRS in Railways.
(f) Computers in Travel Agencies
A Computer Reservation System is very useful for the travel agency business. In addition to data
processing, computers a regetting popular to handle business functions, reservations and ticketing. The
system which is used is called Agency Automation System (AAS). An AAS that communicates directly
with a Computer Reservation System is called as an integrated system.When two hardware devices
communicate directly, they are said to
be interfacing. All interfaced systems are menu-driven. To activate a function, the user selects from a
list, or menu displayed on the screen. The procedure also prevents the system from being accessed by
unauthorized users. Regular customers of the Travel agency have account numbers that identify the
name address, telephone numbers and other information about the company or passenger. When the
account number is entered in the “Customer

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field”, the address is automatically entered in the “sold field”. The Agent next types his/her agent
number in the “Agent field”. A ticket code devised by the Agency to identify different customer groups
can also be entered. Similarly, Air segment, Car segment and Hotel segment can be entered by the
customer, for various services provided by the respective service providers.It will not be wrong to say,
after this discussion, that with the press
of buttons on a computer, any kind of reservation is possible these days with Tour operators, Travel
Agents, Airlines, Ships, Cars etc.

14.5 CUSTOMER OF TOMORROW

The information age and globalization will continue to drive changes in the way the consumer
of tomorrow will do business with companies in the hospitality industry. This customer will demand
greater assurances of quality,safety & well-being. Following changes will be noticed in tomorrow
customer.
Brand loyalty will probably go to the highest bidder.
Satisfaction of specialized needs in discontinuous patterns.
Acquiring product knowledge through several filters.
Will sell information about themselves for overall value, money, integrity, authenticity, honesty and
reality.
Would like to remain connected with other customer’s to cross-check information and share
experiences.
These are only some of the characteristics which have been anticipated in future customer who would
be, undoubtedly, far removed from his early counter part of the ancient times that traveled without much
information and felt that his travel was more of an adventure. It used to be full of risks and uncertainties.
Now, with the growth and advancement of information technologies, the tourist is, definitely, at a very
advantageous position.Accordingly, the tourism trends would also change.

14.6 FUTURE E-TOURISM TRENDS

ICT(s), have profound implications for E-Tourism which reflects the digitization of all processes and
value chains in tourism, travel, hospitality and catering industries. Tactically E-tourism enables
organizations to manage their
operations and undertake e-commerce. Strategically, E-tourism revolutionizes business processes, the
entire value chain as well as strategic relationships with stakeholders. E-tourism determines the
competitioners of organizations by taking advantage of the Internet for reorganizing internal processes
extracts, for developing transaction with trusted partners and the Internet for interacting with all
stakeholders. ICT developments generate both opportunities and challenges for tourism. Emerging
trends can be examined within the framework of change. Increasingly tourism organizations need
Information Communication Technologies to develop following strategies:
Customer Centric
Profitability Driven
Partnership enabled
This will assist them to focus on their customers, organizational needs and distribution strategies
respectively.

14.7 ICT ENABLED AND EMPOWERED TOURISM TRENDS

The E-Tourism trends, which are profitability driven and partnership enabled, are as follows:

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IT empowered developments enhancing Customer Satisfaction
- User-friendly & customized interfaces.
- Consumers have more information and enjoy greater choice.
- Accurate & richer marketing research by collecting data from al transaction and enquires.
- Better understanding of consumer needs based on research-interaction and data mining.
- Differentiated and customized services according to personal preferences and attitudes.
- Pricing becomes more flexible and transparent.
- Reduction of bureaucracy and paper-work frees employee’s time for better customer services.
- Customizing the product and establishing ‘one-to-one’ marketing through loyalty schemes.
- New personalized value-added services.
- Automation of respective operative tasks through ITC(s).
- Personalized services.
- Language barriers reduced through interface that market through automatic translations.

Technological developments and ICT empowered change

Major hardware developments and enhancements in processing capabilities.
Possibilities of handling complex algorithms with increase in speed of computers.
Enables central control and to outsource selected non-core function.
Allows organizations to use their resources more wisely and profitably.
The development of mobile and portable devices-laptops, tablets
PC(s) to PDA(s) (Personal digital Assistants) and smart phones also offers significant computation
power, storage and profitability.
Extensive networking is growing between partner organizations.
Internet, Intranet and extranet support communication between employee units, organization,
partners and consumers.
By linking and sharing data and processes electronically, organizations formulate alliances to build
complementary services, expand reach and enhance collaboration.
Broadband provides fast ‘always’ on accesses to services, applications and context resulting in life
style and productivity benefits.

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CHECK YOUR PROGRESS

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(a) Which communication technologies are used by tourism industry as strategy to develop tourism?
(b) What changes in attitude do you perceive in the customer of tomorrow?
(c) In what ways do IT empowered developments enhance customer satisfaction.
14.9 GLOSSARY
Kiosks - counters
Broadband - used for better internet speed“Always an access” - Internet-on-line
14.10 SELF ASSESSMENT QUESTIONS
After having gone through the entire lesson, you should be able to answer the following question.
1. Define Computer Reservation System
2. When was CRS introduced for the first time?
3. State in brief the procedure for making reservations.
4. State at least three requirements of a customer of the Future.
5. Write five IT enabled and empowered tourist trends.
6. What suggestions do you have for increasing the efficiency ofInformation Technologies?
7. Can you suggest any other ICT (not mentioned in the lesson) that isused by the Tourists – if yes – in
what way?

LESSON - 15
EVOLUTION, IMPORTANCE AND PLANNING OF TOURISM IN INDIA

15.0 INTRODUCTION
3. We have already learnt about the various concepts, terminology, kinds and definitions of tourism; the
impact of tourism as an industry in Unit1; and About travel management which includes, different
modes of transport and basics of ticketing in Unit 2. The various strategies of marketing and the impact
the IT revolution has had on the Tourism industry in Unit 3. We can now very safely move on to tourism
in India. Travel and tourism in India is an integral part of the Indian tradition and culture. The beauty of
India’s cultural heritage and the richness of nature’s endowments, makes India a tourists’ paradise.4. The
dimensions of tourism changed in the post independence era.
In the olden days, travel was primarily for pilgrimage - as the holy places dotting the country-side
attracted people from different parts of the vast sub-continent. The establishment of the Indian Railways
by the British,modernization of ports, and development of hill stations-have all added to the growth of
the Indian tourism industry in the 19th and the early part of the 20thcentury. Thus the traditional role of
tourism in promoting mutual understanding was naturally in focus. Pandit Jawaharlal Nehru’soft quoted
remark: “Welcome a Tourist and send back a friend”was the essence of India’s tourism approach in the
post independence era.
15.1 OBJECTIVES
After going through this unit you will be able to:
See how tourism has evolved in India
Describe how tourism has helped in the economic development of the Indian economy
Understand the need for tourism planning
Analyze the allocation of funds under the five year Plans
Focus on the important areas in the tenth five year plan.

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15.2 TRADITIONAL TOURISM
Tourism is not new to India. In fact even in our religious book“Upanishads” there is a word called
‘Charaibate’ meaning to go on moving and this more than any other thing explains that tourism is deep
rooted in the Indian system.
During Chandragupta Maurya’s time we hear of tourists like Megasthenes, Hieun Tsang or later Iban
Batuta undertaking long tours of Buddhist pilgrimage centres or visiting places like Nalanda University
in Takshila.
In the early days pilgrimages or pilgrim travel assumed great importance. Ashoka the Great, travelled a
great deal in his eagerness to spread the doctrines of Buddha. Throughout his travels, from Pataliputra to
Lumbini and finally to Gaya, Emperor Ashoka had special memorials set up at each spot as well as rest
houses where travellers could rest.
Trees were planted along the roads so that the traveller was protected rom the harsh sun. Harsha was
another great emperor who greatly influenced by the Buddhist scriptures, he built institutions and
dharamshalas for the traveller. Rest houses were built in the villages. A number of monasteries were also
built for the pilgrims. This shows that travel facilities were very good and travel was not a cumbersome
experience. At this time the Buddhist Sanga established the tradition of pilgrimage, where monks went
from village to village preaching the value of the middle path.
Some of the first foreign visitors to India were perhaps the Persians.There is evidence of caravans of the
Persians coming to India, in the inscriptions dating back to the rein of the Persian king, Darius. There is
also reference to trade, commerce and cultural exchanges between Persia and India. One of the most
important developments of this era, owing to the emergence of trade and commerce, was the emergence
of communication and accommodation. When Alexander the Great reached India, it is said that he found
good roads which were well-maintained and covered with shady trees.
The Arthashastra also reveals the importance of the travel infrastructure for the state, classification of
routes and types of vehicles. This is an indication that there was a well-developed mode of travel in
India, forthe military, the commercial traveller as well as the civilian. All this was under state protection.
Travelling for pleasure on the rivers and to the hills was a tradition started by the royal courts. However
such movements attracted all those who had business at the court to move with it. During the rule of the
Mughals, the emperors travelled extensively and contributed to the development of the resorts.
With the fall of the great empires, there was a setback in trade and commerce. This reduced the mobility
of the people with the exception of the pilgrims. The seaside resorts, hill stations and spas which were
the centres of recreation and pleasure, were hardly ever used by the early medieval period.
Over the years, however the scenario changed and the complex character of tourism emerged. The
growth of modern technology, rising incomes and improved facilities contributed to the emergence of
modern tourism.
15.3 EMERGENCE OF MODERN TOURISM
The purpose of travel to or in India was either of religious nature or for higher education. This is in sharp
contrast to the modern day tourist whois more into leisure or experiencing a new culture which is quite
different from their own.
The systematic development of tourism in India is also linked with the Industrial revolution and the
change in the modes of travel with the introduction of railways, automobiles and aviation. The air travel
supplemented by the Railways brought about a sea change in global movements and India also became a
tourism partner. Much has been achieved by way of increasing air seat capacity, increasing trains and
railway connectivity to important tourist destinations, widening of roads to four lanes, connecting
important tourist centres and increasing availability of accommodation by adding heritage hotels to the
hotel industry and encouraging paying guest accommodation.
However in the 19th as well as the 20th centuries India did not become a prime destination for the
overseas traveller. It has mainly domestic tourists with a prime focus on pilgrimage tourism. But this
changed

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when the middle class backed by higher disposable income and the Leave Travel Concession (LTC)
started to travel for leisure.Concessions were also given to the youth and students which also prompted
more travel in the country. All this coupled with better infrastructure in terms of hotels, roads and air
connectivity to the remotest place in the country has really made tourism in the country take off.
As LTC changed the earlier picture; so did the increase in the disposable income of the Indian middle
class, the explosion of the Internet, the travel bonanza on the Discovery and National Geographic
channels, the discounted airline fares and the mushrooming growth of the hospitality industry. All this
has given a fresh perspective to holidaying.This has been possible mainly due to the attempts made by
Government to:
a) improve tourist infrastructure at important destinations/circuits;
i) focus attention on growth of hotel infrastructure, particularly budget hotels;
ii) to enhance the connectivity through augmentation of air seat capacity and improving road
infrastructure to major tourist attractions;
b) directly approach consumers through electronic & print media through “Incredible India” campaign;
c) launch centralized electronic media campaigns;
d) have greater focus in the emerging markets, particularly in the regions of China, North-East Asia and
South-East Asia;
e) use internet and web connectivity;
f) launch road shows in the big source markets of Europe.
Gradually a change is coming about and the modern day tourist is looking for more and hence tourism
has again diversified.Having seen how the concept and form of tourism has evolved in India,you will
now be able to comprehend the contribution which tourism is making towards the Indian economy in the
coming section.
CHECK YOUR PROGRESS - 1
a1. Has the concept of tourism changed in India? If yes, then state two important reasons for the change.
Activity
Talk to your grandfather or any elderly person as well as someone fromthe younger generation about
whether they did/do travel and whatmotivated/motivates them to do so. How many times did/ do
theytravel? Write down your observations.
In the above units, while discussing the history of tourism it has already been pointed out how different
modern tourism is from tourism of the past. Similarly, the constituents of the tourism industry are also
varied and there is intense competition amongst the destinations to attract tourists. In order to direct the
development of tourism in our country or at a particular destination, there has to be a policy with
identified targets and a plan to achieve them. This is even more necessary in order to maximize the
benefits, remove or prevent the negative impact of uncontrolled mass tourism and go in for sustainable
development.Hence, tourism planning is needed for a variety of reasons like
To coordinate the role of public and private sectors
To properly direct development
To demarcate the areas for development
To determine the types of tourism to be promoted
To prevent negative impact
To regulate and legislate
To improve the quality of services
To train human resources
To market a destination
Tourism is one of the most important economic sectors. As seen in unit1, tourism not only has direct
contribution to the economy but it has significant linkages with several other sectors like agriculture,
poultry, handicrafts , construction, transport, etc.

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Tourism is a development activity which enhances the quality of life,preserves the national heritage and
encourages the appreciation of India’s diverse cultures both by Indians and foreign visitors. It has
become an important segment of the Indian economy as it creates

15.4 PLANNING AND IMPORTANCE OF TOURISM IN INDIA

In the above units, while discussing the history of tourism it has already been pointed out how different
modern tourism is from tourism of the past. Similarly, the constituents of the tourism industry are also varied
and there is intense competition amongst the destinations to attract tourists. In order to direct the
development of tourism in our country or at a particular destination, there has to be a policy with identified
targets and a plan to achieve them. This is even more necessary in order to maximize the benefits, remove or
prevent the negative impact of uncontrolled mass tourism and go in for sustainable development.
Hence, tourism planning is needed for a variety of reasons like
• To coordinate the role of public and private sectors
• To properly direct development
• To demarcate the areas for development
• To determine the types of tourism to be promoted
• To prevent negative impact
• To regulate and legislate
• To improve the quality of services
• To train human resources
• To market a destination

15.4.1 IMPORTANCE OF TOURISM

Tourism is one of the most important economic sectors. As seen in unit 1, tourism not only has direct
contribution to the economy but it has significant linkages with several other sectors like agriculture,
poultry,handicrafts , construction, transport, etc.
Tourism is a development activity which enhances the quality of life,preserves the national heritage and
encourages the appreciation of India’s diverse cultures both by Indians and foreign visitors. It has become an
important segment of the Indian economy as it creates employment opportunities and contributes
substantially to its foreign exchange earnings.

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The estimated foreign exchange earnings in 1999 were Rs.12951 crores,an increase of 6.6% over the
previous year. Foreign exchange earnings from tourism during 2000 also registered an increase of 9.9
per cent over 1999. In 2004, total earning was Rs.21828 crore, 32.9 per cent higher than the previous
year, as shown in Table 1. The foreign exchange earnings in 2004 were USD 4.8 billion which was
36.1%more than 2003 as shown in Table 3. India has everything that ca attract tourists. The
unprecedented growth in tourism in India has made it the third largest foreign exchange earner after gem
and jewellery andready-made garments. Tourism has thus become the second largest net foreign
exchange earner of the country.Tourism contributed Rs.24, 241 crore during 1998-99 towards country's
Gross Domestic Product. In 2003 tourisms contribution to the GDP was4.8%. If tourism can increase to
10% of India’s GDP as against 4.8%nearly 26 million new jobs can be created.
Amongst the economic sectors, the tourism sector is highly labour intensive. A survey by the
Government of India notes that the rate of employment generation (direct and indirect) in tourism is 47.5
persons employed per Rs.10 lakhs investment (based on 1985-86 Consumer Price Index). This is much
higher than the rates of employment generation in most other economic sectors as can be seen from the

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Table 2 below

CHECK YOUR PROGRESS - 2

1. Write any one important reason for tourism planning
2. How is tourism contributing to economic development? State any two reasons.

15.4.2 FIVE YEAR PLANS AND TOURISM

As has been discussed above tourism planning leads to tourism development. In fact tourism planning is
the process for tourism development. Planning not only guides actions to be taken in the future, but also
helps in problem solving and arriving at decisions which help planners in achieving desired objectives.
Planning is not static but dynamic and guides future actions. The tourism planning process involves
creating a future that is acceptable to the host community as also to others who would be part of the host
community as tourists for a short period of time. Since tourism involves hospitality, planning for various
tourism facilities must be based on the guests. In other words planning essentially attempts to allocate
scarce resources between different competing uses with a view to maximizing output, income and
employment and to ensure the balanced growth of various sectors.
The five year plan is a mirror of the country’s perception about the direction of social-economic
progress.India had a good amount of tourism activity when it became independent over 50 years ago,
though tourism as a subject did not figure in the Constitution of India, except that it was mentioned in
the Central or the State lists. There was also no allocation for tourism development during the First Five
Year Plan. The allocation during the remaining plans has been increasing from one plan to another. It
was Rs. 3.36 crores in the second five year plan and jumped to Rs. 138 crores in the Seventh Plan and in
the Tenth Plan stands at Rs. 2900 crores. Similarly the State-wise plan budget allocation also shows how
tourism was getting priority with the state sector and which progressively increased every year in the
subsequent plans. However if we look at the percentage share of tourism in the total plan outlay it does
not give as a very rosy picture as can be seen in Table 2 and Table 2.1.
During the Second Five Year Plans (1956-61), tourism became a constituent of the planning process
with a token allocation of Rs 3.36crores for both central and state sectors put together as can be seen in
Table 2. The development approach during the second plan was mainly on creating isolated facilities in
important tourist centres. The Third Plan witnessed the beginning of an era of development of activities
connected with tourism, particularly adventure, by the establishment of a winter sports complex at
Gulmarg in Kashmir. The India Tourism Development Corporation (ITDC) was set up in 1966 to
develop tourism infrastructure and promote India as a tourist destination.

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The approach during the Fourth and the Fifth plans was expansion and improvement of tourist facilities
with a view to promote destination traffic, as distinct from transit traffic. Integrated development of
selected tourist centres like Kovalam, Gulmarg, Goa, Kullu-Manali, etc. received much attention and
became the symbolic models of resort tourism in India. Cultural tourism was emphasized with the
development of Buddhist Centres and the Heritage Centres and heritage monuments in India through the
Master Plans.

The Sixth Plan (1980-85) was a major landmark in the history of Indian Tourism. The first ever “Tourist
Policy” of the country was announced during 1982 which specified the development objectives and
provided an action plan based on “Travel Circuit’ concept to maximize the benefits of tourism.
The development of tourism was stated as a plan objective during the Seventh Five Year Plan (1985-90)
and the sector was accorded the status of an industry. It thus became the watershed plan for Indian
tourism. The National Committee on Tourism set up by the Government in 1986 to evaluate the
economic and social relevance of tourism in India and to draw up a long term measure for ensuring
accelerated growth of tourism. On the basis of these recommendations a package of incentives as made
available for the tourist industries and the Tourism Finance Corporation of India (TFCI) was set up to
finance tourism projects.

The development plans for tourism during the Eight Plan (1992-97) was based on the National Action
Plan 1992. The main thrust of tourism was to be achieved mainly through private initiatives.
It proposed to achieve diversification of tourist products, accelerate growth of tourism infrastructure,
carry out effective marketing and promotional efforts in the overseas markets and remove of all
impediments to tourism. A major component of the Action Plan was the development of all inclusive
Special Tourism Areas and intensive development of selected circuits.The Department of Tourism also
constituted a special Task Force for the promotion of schemes/projects for the development of tourism in
the North Eastern States, Sikkim, J & K, Arunachal Pradesh and hill districts of Uttar Pradesh and West
Bengal. Seniors Officers of the Department along with representatives of respective state governments
and the industry visited these areas and an action plan for the North East, as well as Jammu and Kashmir
was prepared. In order to give a boost to foreign exchange earnings, employment and income generation
through tourism activities in the above mentioned areas, was also promoted.

The Ninth Plan (1997-2002) policy framework however introduces afew new elements to the policy.
First it emphasis the importance oflooking at infrastructure development for domestic tourism
andtherefore the role played by the respective states.It also elaborates on the need for effective
coordination of all therelevant agencies involved in the development of, tourism products.It also brings
out the importance of peoples participation at the grassrootlevel for the development of tourist facilities
and for creating atourist friendly atmosphere keeping in tune with the overall governmentpolicy of
balanced development.

Export House Status was granted to tourism units in the Ninth five yearplan. Government also called for
effective coordination of public andprivate efforts so as to achieve synergy in the development of
tourism inIndia. In developing tourism, it was to be ensured that the sites areconserved and the
environment is not degraded.

With liberalization the government allows direct foreign investment upto 51% in high priority industries,
and hotels and tourism relatedactivities are part of the list. Industrial licensing was abolished in
mostindustries and hotel and tourism were among those freed from licensing.
Non residents Indians were given a special package of incentives toparticipate in tourism projects.

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The approach in the Tenth Plan (2002-07) is to stimulate investment and encourage the state
governments to develop unique tourism products.The aim is to enhance the employment potential within
the tourism sector as well as to foster economic integration with other sectors.
The 10th plan attempts to
position tourism as a major engine of economic growth
harness the direct and multiplier effects of tourism for employment generation, economic
development and providing impetus to rural tourism
provide a major thrust to domestic tourism which will act as a spring- board for growth and
expansion of international tourism
position India as a global brand to take advantage of the burgeoning global travel and trade and the
vast untapped potential of India as a destination
acknowledge the critical role of the private sector with government working as an active facilitator
and catalyst
create and develop integrated tourist circuits based on India’s unique civilization, heritage and
culture in partnership with States, Private Sector and other agencies and
ensure that the tourists to India get “physically invigorated, mentally rejuvenated, culturally
enriched, spiritually elevated “and “feels India within him”.

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Based on the Plan outlays the National Action Plan and the Draft Tourism Policy was evolved. Let us
now see what the objectives and plan of action as well as the strategy of the National Action Plan and
the Draft National Policy, were.
CHECK YOUR PROGRESS - 3
1. When did tourism feature in the five year plans?
2. Have the outlay in the plans changed?
15.6 KEY WORDS
Traditional Tourism, Charaibate, Kings, Trade and Commerce, Emergence of Modern Tourism, LTC,
Increase in Disposable Income,Use of Internet and Web Connectivity, Growth of Hotel Sector, Need for
Tourism Planning, Importance of Tourism, Significant Linkages, Development Activities, GDP, Five
Year Plans, Export House Status, Tenth Plan.
15.7 SELF ASSESEMENT EXERCISE
1. Explain how tourism has evolved in India. Also state its importance tothe Indian economy.
2. What is meant by tourism planning? How does planning benefit tourism development?
3. Elucidate how tourism is an important economic activity?
4. Explain the allocation of funds to tourism in the five year plans.

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 LESSON - 16
TOURISM POLICY AND EVALUATION
It was after the 1980s that tourism activity gained momentum. The first ever Tourism Policy was
announced by the Government of India in November 1982. It took ten long years for the Government to
feel the need to come up with a possible improvement over this. Thus the National Action Plan for
Tourism was announced in 1992. Between these two policy statements, various legislative and executive
measures were brought about. In particular, the report of the National Committee on Tourism, submitted
in 1988 needs special mentionWe have now come out with a Draft National Tourism Policy which
pledges, to make tourism and travel an important instrument for “sustainable human development,
poverty alleviation, and employment generation”.
This draft policy also recognised the role of Central and State governments, public sector undertakings
and the private sector in the development of tourism. The need for involvement of Panchayati Raj
institutions, local bodies, non-governmental organisations and the local youth in the creation of tourism
facilities, has also been recognised.

16.2.1 TOURISM POLICY, 1982

India’s first tourism policy was enunciated in 1982. The Tourism Policy,1982 was more an aggressive
statement in marketing than a perspective plan for development. Its main thrust was aimed at presenting
India tothe foreigners as the ultimate holiday resort. With a view to reach this destination, the following
measures were suggested by the Policy:
1.To take full advantage of the national heritage in arriving at a popular campaign for attracting tourists;
2.To promote tourist resorts and make India a destination of holiday resorts;
3.To grant the status of an export industry to tourism;
4. To adopt a selective approach to develop few tourist circuits; and,
5. To invite private sector participation into the sector.
The objectives of the policy were to so develop tourism that it –
1. Becomes a unifying force nationally and internationally fostering a better understanding
2. Helps preserve Indian heritage and culture and project the same to the world
3. Brings socio-economic benefits in terms of employment, income generation, revenue generation,
foreign exchange, etc.
4. Gives direction and opportunity to the youth of the country to understand the aspirations and the
viewpoint of others and help in greater national integration
16.2 NATIONAL TOURISM POLICY ANDITS EVALUATION
5. Offers opportunities to the youth of the country not only for employment but also for taking up
activities for nation building and character building like sports, adventure etc.
The policy very rightly puts emphasis on the development of domestic tourism as the foundation for
future strategy. Tourism again being a multifaceted endeavour, the government has to play the role of a
catalyst. The national policy highlights the need for coordination and appropriately refers to tourism as a
“common endeavour”. The Policy was also framed at a time when India was assessing its role in the
newly emerging regional cooperation for tourist development in the South Asian region.
While the basic problems of tourism development have been identified in the policy, the underlying
emphasis is on national understanding and international cooperation through tourism. Even the plan of
action outline in the policy of tourism emphasises the importance of youth of the country in the national
integration and in making tourism a vehicle for achieving this objective.
As expected, the policy framework is in tune with the strategy outlined in the five year plans. It talked
about a selective approach, a dynamic marketing strategy, appropriate manpower development, fiscal
and other incentives to be extended to the private sector and the need for balanced development of
tourism, consistent with ecological and environmental considerations.

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A committee on Tourism which was constituted soon after submitted its report in 1988. It is the most
comprehensive report on tourism development in India. Sadly, it is also a report which has been least
acted upon. Many of the observations and recommendations in the report have by now flowered into
piecemeal policy actions and over the period no comprehensive and conscious efforts to tackle the issue
raised are evident.
The report covers all important issues relating to the role of tourism, the need for infrastructure
development, strategy of development, etc. The National Committee also made a large number of
recommendations
some of which were for immediate operations, and the rest require long term policy decisions.
Some of the crucial recommendations in the report which are still being debated are:
1. Need for rearranging the existing organisation structure of the department of tourism and the need for
an apex body called The National Tourism Board.
2. The setting up of a Standing Committee of tourism ministers for an integrated approach
to tourism development and also to effectively associate the state governments involved.
3. To ensure implementation of the recommendation, a national policy needs to be evolved, supported by
a comprehensive legislation.
4. Tourism plans to be integrated into overall plans of the country and into Area Development Plans.
These recommendations are fundamental to any substantial tourism development strategy for the
country. In a country which has such tremendous potentials for tourism development, the fact that these
far reaching recommendations are still being discussed and debated is not a happy reflection of national
consensus. Ten years after they were put forward to the government, many of the recommendations are
yet to be implemented.
The Planning Commission recognised tourism as an industry by June1982.The Policy statement of 1982
made no mention of infrastructure development. The successive governments at the Centre failed to
create proper tourism infrastructure, thus resulting in loss of traffic. This lacuna was corrected in the
National Action Plan. However, much of this change was due to intensive lobbying by such agencies
like the Indian Association of Tour Operators (IATO), the Travel Agents Association of India (TAAI)
and the Indian Hotels and Restaurants Association (IHRA). It is for the voluntary agencies and pro-
people forces to exploit the avenue of lobbying at various levels.
CHECK YOUR PROGRESS - 4
1. Mention any one objective of the Tourism Policy 1982.
2. Mention any one measure as suggested in the policy.
3. Did the policy talk about common endeavour and private partnership?
16.2.2 NATIONAL ACTION PLAN 1992
At the beginning of the Eighth Plan (1992-97), 15 States and 3 Union Territories had declared tourism as
an industry. Four States had declared hotels as an industry. Logically the National Action Plan drawn in
up in 1992 should have been an attempt to translate these ideas into action. However the National Action
Plan was only a “plan of action” for immediate purpose and did not try to change the existing framework
or to tackle the fundamental issues which require long term policy changes. The National Action Plan is
therefore to be regarded as an emergency action plan to achieve quick results.
The objectives set out rightly focus on the perceived inadequacies of the system and incorporate all
those areas which have been identified as the weakness of India’s tourism development policy.
The objectives were
socio-economic development of areas;
increasing employment opportunities;
developing domestic tourism for the budget category;
preserving national heritage and environment;
development of international tourism;
diversification of the tourism product.
increase in India's share in world tourism (from thepresent0.4% to 1% during next 5 years)

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The strategy for achieving the objectives is outlined below
Improvement of tourism infrastructure.
Developing areas on a selective basis for integrated growth along with marketing of destinations to
ensure optimum use of existing infrastructure.
Restructuring and strengthening the institutions for development of human resources.
Evolving a suitable policy for increasing foreign tourist arrivals and foreign exchange earnings.

Improvement of Tourist Infrastructure

The policy now would be to encourage private investment, both domestic and foreign for accelerated
growth. The role of the Ministry of Tourism would be to conceptualise and deal with policy issues
mainly. Hotels form an important and vital segment of the tourism infrastructure in the country. The
Government has also initiated steps in this direction.The fiscal concessions had been given under section
80HHD of the Income Tax Act whereby 50% of the income earned by the hotels on account of foreign
exchange earnings is exempt from income tax and the remaining 50% also exempt if reinvested in the
tourism industry. This has had a positive impact on the pace of growth of hotels. However, this trend is
more noticeable in metropolitan cities and commercial cities than in tourist destinations per se. In order
to stimulate growth at tourist places also, the Government has given a concession that hotels set up in
rural areas, hill stations, pilgrim centres and specified tourist destinations, will be exempt from
expenditure tax and 50% of income tax for ten years.
The Government is also giving an interest subsidy on loans for construction of hotels. There are a large
number of palace, big and small, and havelis which can be conveniently converted into hotels.
Many of these are in a state of disrepair and their conversion into hotels will assist in preservation of this
national heritage. It has, therefore, been decided to encourage the growth of these heritage hotels. In
relaxation of their norms, the Tourism Finance Corporation of India will now advance loans for heritage
hotel projects of Rs.50 lacks and above. The Government will also give an interest subsidy of 5% on
loans advanced for construction of new heritage hotels. For havelis located in rural areas, there is an
added incentive of 10 year holiday from expenditure tax and 50% from income tax. It is hoped that these
concessions willspur a rapid growth of heritage hotels in the country.
Encouraging Domestic Tourism
Measures are afoot to facilitate domestic tourism. A new scheme for development of camping sites will
be started especially for low budget tourist. Central assistance is being provided to enable State Tourism
Development Corporations investing in tented accommodation and other facilities necessary for setting
up adventure camps. A scheme of paying guest accommodation will also be introduced in as many
places as possible to provide affordable and hygienic accommodation.
Further rules will be amended to provide for recognition of tour operators engaged in domestic tourism.
In fact it will be prescribed that all recognised tour operators do a certain percentage of their turnover in
domestic tourism. These measures will, no doubt give a fillip to the growth of low budget tourism.
Pilgrim Tourism
Pilgrim flows account for a very large percentage of domestic tourism.Infrastructure facilities for
pilgrim centres need to be substantially improved. For this purpose, the Central Government will
earmark a sum of Rs. 5 crores as central assistance every year to enable State Tourism Development
Corporation/ Private entrepreneur to set up or improve accommodation facilities, wayside amenities and
transport systems at important pilgrim centres.
Crafts Villages
The Surajkund Crafts Mela and Shilpgram Udaipur has been atremendous draw with the tourists.
Looking at the success of these centres, the department intends to set up crafts villages in different
partsof the country and provide a boost to the traditional handicrafts of these regions.

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Fairs and Festivals
The fairs and festivals not only reflect the vast cultural heritage of India but have over the years become
big attractions for the tourists. These have been identified by the Ministry of Tourism and assistance
given to develop and publicise them to attract even foreign tourist. Fairs like Pushkar, Sonepur Cattle
Fair, Kite Festival, Alleppey Boat Race, Dussehra Festival in Mysore and Kullu and others have already
becomebig attractions for the tourists. The Ministry will give liberal financial assistance to develop these
fairs and festivals all over the country and promote them aggressively in the international markets.
The Government will also endeavour to have tie-ups with zonal cultural centres for making
arrangements at important tourist destinations to organise cultural evenings, son-et-lumiere, craft
bazaars, food plaza and fairs and festivals all round the year. Such activities will be organised
incoordination with the Department of Culture and Archaeological Survey of India.
Road Transport
The other important segment of tourist infrastructure is road transport.The Government will be
importing coaches for Buddhist circuits in Uttar Pradesh and Bihar. This will ensure that the tourist
coaches are adequately equipped to meet the needs of the tourists. It is recognized that international
quality luxury coaches\cars are essential for
facilitating tourist movement to different parts of the country.Unfortunately, most of the existing
transport units are now old and have outlived the utility needing to be replaced. Government will
introduce some suitable scheme by which this important felt need in tourism can be fulfilled.
Travel Trade
Travel agents and tour operators constitute an important segment of tourism industry. Looking to the
size of the country, it is imperative to encourage the travel trade in such a fashion that more and more
people could come within the fold of travel trade. It would be the endeavour ofthe government to
streamline and liberalise rules and procedures forrecognizing travel agents and tour operators thus
facilitating tourist movement Government has announced liberalised charter policy and the Director
General (Civil Aviation) automatically grants permission expeditiously for charter flights in keeping
with the guidelines prescribed. Charter flights have significantly added to tourism traffic to the country
and it is hoped that they will be disbursed to tourism destinations in different parts of the country. The
recently introduced air taxis will augment the efforts of the national carriers and facilitate movement of
tourist within the country. Foreign tourists are greatly attracted to travelling by the Railways and the
Palace-on-Wheels in Rajasthan has been an unqualified success. Efforts will be made to encourage
tourist movement by water transport. The private sector will be encouraged to introduce cruises both on
rivers and along the coastal stretches.
Foreign Investment
‘Hotels and tourism related industry’ is under the new Industrial Policy which provides for automatic
approval of foreign investment in equity up to 51%.With this liberalisation, it is imperative that special
efforts are made to attract foreign investment in the tourism sector.
Convention Tourism
In order to encourage convention tourism it would be desirable to set up fully integrated convention
complexes in the country so that more and more international conferences and conventions could be
attracted to India.
Developing Areas on a Selective Basis for Integrated Growth
Hitherto Central assistance for development of tourism infrastructure to the States has been spread thinly
over a large number of schemes/projects. Consequently, the desired level of development in places
which have high potential has not taken place. Given this scenario, it has been decided that instead of
spreading resources thinly,only special circuits/destinations will be taken up for intensive development.
In the first instance Government has identified 15circuits/destinations for concentrated development
both through Central assistance and investment by State Governments/private sector. These circuits are
listed as Annexure-I. As and when these circuits/destinations reach the prescribed level of development,

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new circuits/destinationscould be added so that there is a uniform spread of tourist facilities indifferent
parts of the country.
The Government in conjunction with selected State Governments also proposes to notify a few Special
Tourism Areas for integrated development of tourism facilities. The proposed Special Tourism Areas
will be similar to the scheme of setting up notified Export Processing Zones designed to give a fillip to
industries catering to export production. The selected Special Tourism Areas would have identifiable
boundaries notified by the State Governments where land would be allotted for hotels and tourism
related industries at concessional rates to prospective investors according to the Master Plan prepared. A
Special Area Development Authority would be constituted by the State Governments to administer the
Special Tourism Area with full delegation of powers under different statutes of the State Government.
The Special Area Development Authority would prepare a master plan for the area and provide single
window clearance facilities to the investors. The State Governments would provide basic infrastructure
in terms of roads, transport, bus terminals, wayside amenities, electrical grids, water supply, law and
order and municipal services. The Central Government would provide infrastructural support such as
airports, and airline services, railway stations, communication network and post/telegraph/banking
services. Both the Central and State Governments would grant exemption from specified Central/State
Taxes and freeze rates on water and electric supply for at least 10 years in order to attract investments.
The selection of Special Tourism Areas would be done by the Central Government in consultation with
those State Governments who are willing to offer the maximum facilities for the successful functioning
of such Special Tourism Areas.Special efforts will be made in attracting foreign investment in
theseareas.
A scheme for giving Assistance for Specified Tourism Areas (ASTA)will be started to provide financial
assistance for equity and other tourism related activities in such areas as are specified by the
Government.The Government will lay special emphasis on the development of island tourism in places
such as the Andamans and Lakshadweep. A decision has recently been taken to selectively open out
some of the islands for tourism purposes. This will be done keeping in mind the carryingcapacity and the
need to preserve the environment. The emphasis will beon high value, low volume tourism traffic to the
selected islands and the facilities to be provided would blend with natural beauty of the islands.

Restructuring and Strengthening Institutions for Manpower Development

The Government plans to, restructure and strengthen the training programmes to meet the shortfall of
trained personnel in the accommodation and hospitality sector.The Food Craft Institutes which provide
general training to the students have served a useful purpose in the initial years. There is an urgent need
to supplement these activities with certain specialised Institutes like Chef Training Institutes. A National
Culinary Institute will be set up to meet the requirements of trained manpower in the country and the
region.
A survey has shown that the students trained by Indian Institute of Tourism and Travel Management take
up jobs mainly in metros.Consequently the hotel industry in the smaller places does not get trained
manpower. To correct this imbalance, regional institutes would be set up. Students will be admitted on
regional basis and encouraged to take up jobs in these areas.
The Indian Institute of Tourism and Travel Management will be strengthened both in terms of staff and
equipment to become the premier institution for providing trained manpower for the travel trade in the
country. National universities will also be involved in this effort and would be given financial and other
assistance for introducing tourism courses in the country.
Marketing and Overseas Publicity
In the field of marketing and overseas publicity, the Department will coordinate its activities with Air-
India and other agencies operating in foreign countries to obtain optimum results. Emphasis will now be
on direct promotion by way of going directly to the consumer. Familiarisation tours; joint promotion
with departmental stores and other organizations; and assistance to tour operators promoting India will
constitute the major planks of the publicity strategy.

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The marketing of India as a generalised destination has obvious drawbacks since foreign travellers do
not get in depth focus of local tourist attractions. A major change in strategy is specific destination
marketing which concentrates on specified circuits/destinations in the overseas publicity programme.
This year, for example, through special concentration on South India, tourism flows were increased by
almost35% to South Indian destinations and helped diversify tourism away from the traditional
destinations.
In many countries tourism fairs have become an annual feature where different segments of tourism
industry interact with one another and the tourism product is sold to wholesalers and retailers. Often a
large number of consumers also participate in such trade fairs. In order to promote tourism to India, a
tourism trade fair could be held once in three years where indigenous industry and foreign travel
agents/tour operators could fruitfully interact.
The Government has introduced a tourist information service –TOURNET in their domestic offices and
certain selected countries. It is proposed to make available a computerised multi-lingual tourist
information service which could be installed at different outlets like airports, hotels and trade counters
apart from the tourist offices of the Government of India. The service could give instant information on
mode of transport, food, accommodation, places of interest and cost of services in different languages to
the tourists visiting the country.
As stated earlier, this National Action Plan 1992 was followed by the Tourism Synergy Programme 1993
and the National Strategy for the Development of Tourism 1996. The Ministry of Tourism subsequently
came out with a Draft National Tourism Policy.
CHECK YOUR PROGRESS - 5
1. State one of the important objectives of the National Action Plan?
2. Did assistance to Specified Tourism Areas feature in the NAP?
3. Mention any one area so selected

16.2.3 DRAFT NATIONAL TOURISM POLICY OFINDIA

This is a new Tourism Policy, which builds on the strength of the National Tourism Policy of 1982. It
aims at making tourism the catalyst in employment generation, environmental re-generation,
development of remote areas and development of women and other disadvantaged groups in the country,
besides promoting social integration. It would also lead to larger foreign exchange earnings and create
conditions for more Foreign Direct Investment.
The Mission
The mission is to promote sustainable tourism as a means of economicgrowth and social integration and
to promote the image of India abroadas a country with a glorious past, a vibrant present and a bright
future.
Policies to achieve this will be evolved around six broad areas such as
 Welcome (swagat),
 Information (suchana),
 Facilitation (suvidha),
 Safety (suraksha),
 Cooperation (Sahyog) and
 Infrastructure Development (Sanrachana).
Conservation of heritage, natural environments, development and promotion of tourist products would
also be given importance.The New Tourism Policy like the earlier National Tourism Policy 1982,also
aims at making the stay of foreign tourists in India, a memorable and pleasant one with reliable services
at predictable costs, so that they are encouraged to undertake repeated visits to India, as friends. This
would be in tune with India's traditional philosophy of giving the highest honour to a guest (Atithi devo
bhava).

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Tourism is a multi-tier and multi-faceted industry. There are not only the Central and State
Governments, but also the municipal bodies andthe local authorities of the region involved, in promoting
tourism.Besides this there are a whole lot of ministries which are involved e.g.Ministry of Civil
Aviation, Railways, Surface Transport, Tourism and Culture, External Affairs, Home Affairs, Finance
and finally Ministry of Environment and Forests. The draft tourism policy realized this overlapping of
functions and hence listed out its plan of action specifying the Ministries/Departments/Agencies
responsible for implementing these actions.
Similarly it also recognized the fact that Tourism is A Multi-Dimensional Activity. The Government
aims at achieving necessary linkages and synergies in the policies and programmes of all concerned
Departments/agencies by establishing effective co-ordination mechanisms at Central, State and District
levels. The focus of the national policy, therefore, will also be to develop tourism as a common endeavor
of all the agencies vitally concerned with it at the Central and State levels, public sector undertakings
and the private sector. This was recognized in the National Tourism Policy 1982 but nothing much was
done to ensure its implementation.
People’s Participation
Like the earlier policy too, this policy wants to encourage peoples’ participation in tourism development
including Panchayati Raj institutions, local bodies, Co-operatives, non-governmental organizations and
enterprising local youth. Hence, this policy has gone a step further in elaborating who all are included in
the term people. A constructive and mutually beneficial partnership between the public and the private
sectors through all feasible means is an absolute necessity for the sustained growth of tourism. It is,
therefore, the policy of the Government to encourage emergence of such a partnership.
Government’s Role
It also realized that the Government has an important role to play. This is primarily as tourism is a multi-
sectoral activity and the industry is affected by many other sectors of the national economy. The State
has to, therefore, ensure intergovernmental linkages and co-ordination. It also has to play a pivotal role
in tourism management and promotion.The specific role of the Government will be to provide basic
infrastructural facilities including local planning and zoning arrangements, rationalize taxes, ensure
safety and security of tourists and ensure development of tourism is compatible with the
environment,facilitate availability of trained manpower. Undertake research, prepare master and
facilitate formulation of marketing strategies.
Tourists have to pass through several Government agencies. These include obtaining visas, undergoing
immigration checks, obtaining permits to visit certain areas, payment of fees for certain facilities, etc.
The endeavor of the Government would be to improve efficiency in providing such facilitation services
Introduction of issue of Visa on arrival at least for 15 days at all the airports, computerization of the
system of issue of Visa, streamlining of luggage handling system at airports improving tourist
facilitation services at the airports by adopting technological solutions are some of the important
facilitation services proposed in this regard.
The Central Government will set up a Paryatan Bhawan in New Delhi as a modern Tourist Interpretation
Centre to cater to various needs of travellers, foreign as well as domestic and to offer facilities for air
and train reservation, money changing counters and information about all tourist centres in the country.
Private Sector
Like the National Tourism Policy 1982 it realized that private sector has an important role to play.
All over the globe private sector has played the lead role in this growth. The private sector has to
consider investment in tourism from a long term perspective and create the required facilities including
accommodation, time share, restaurants,entertainment facilities, shopping complexes, etc. in areas
identified for tourism development. Non-core activities in all airports, major stations and interstate bus
terminus such as cleanliness and maintenance,luggage transportation, vehicles parking facilities, etc.
should be opened up to private operators to increase efficiency and profitability.

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The specific role of the Private Sector will be to:-
Build and manage the required tourist facilities in all places of tourist interest. Ensure preservation and
protection of tourist attractions and give lead in green practices. Sponsor maintenance of monuments,
museums and parks and provision of public conveniences and facilities
It would be the policy of the Government to facilitate larger flow of funds to tourism infrastructure and
to create a Tourism Development Fund to bridge critical infrastructural gaps.
Export-house status has been accorded to Hotels, Travel Agents, Tour Operators and tourist transport.
The status needs to be extended to all tourism units irrespective of the annual turn over.In order to off-set
the specific constraints of tourism industry and to put in place the required infrastructure as quickly as
possible, particularly in less developed areas, appropriate incentive schemes would be considered. It
would also be the endeavor of the Government to persuade the State/UT Governments to rationalize
taxes, to put a cap of20% on all taxes taken together on the accommodation and hospitality units, to
allocate suitable land for tourism purposes at reasonable prices,harmonize movement of tourist transport
across state borders, etc Integrated Development of Tourist destinations: - Like the National Action Plan
1992 the Draft Policy also talked about integrated development of tourist destinations. International
tourist traffic to thecountry is largely confined to certain selected centres and destinations atpresent.
There is also a fair level of seasonality in the international tourist arrivals. As a result there is a good
deal of congestion and scarcity of facilities in some of these centres during peak seasons. The tourist
traffic to some of the centres has even exceeded the carrying capacity with the attendant problems of
environmental degradation. It has, therefore, become necessary to go beyond the beaten tracks and to
facilitate direct visit of tourists to new destinations. In order to achieve this Tourism Economic Zone,
Tourist Circuits, Special Tourism Area and Areas of Special Interests are to be developed.

Tourism Economic Zones will be created with private participation based on the intrinsic attractions,
potential for development and availability of resources in these zones. Air, road and rail connectivity to
these areas will be established to facilitate direct and easy access to these zones from international and
domestic destinations. Adequate backward and forward linkages will also be established to ensure flow
of benefits to the local community. The development of such zones will be guided by well conceived
Master Plans .
Tourist circuits and Special Tourism Areas India with vast cultural and religious heritage and varied
natural attractions has immense potential of growth in the tourism sector. 25 travel circuits and
destinations have already been identified for development through joint efforts of the Central Govt., the
State Governments and the private sector. State Governments of Kerala, Tamil Nadu, Orissa and
Maharashtra and Union Territory Administration of Daman & Diu have also declared Bekal Beach, Puri-
Konark, Sindhudurg, Muttakadu-Mamallapuram and Diu as Special Tourism Area for integrated
development. Steps will be taken to work towards the integrated development of all the tourist circuits
of the country with the involvement of all the infrastructural departments, State Governments
and the private sector.
Areas of Special Interest Government would initiate and support special programmes and schemes for
the development of tourism in North Eastern States, Himalayan region and island States/Union
Territories with a view to achieving overall economic development of the regions, and as part of the
strategy for removing regional imbalances. The seven States of the North East with beautiful landscapes,
lush green forests, exotic wildlife, unique forms of art and culture and affable tribal societies have
hitherto remained backward due to various reasons including poor infrastructure. At least ten percent of
Plan funds of the Ministry will be used for the promotion of tourism in North East apart from taking up
special projects and schemes for the development of the area.
Apart from the above the Draft National Policy also talks about sustainable development , promotion
and marketing diversification of tourism products and polcy1982 professional excellence as discussed
below, which were already there as part of the Tourism Policy 1982

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Sustainable Development
The principle of sustainable development stipulates that the level of development does not exceed the
carrying capacity of the area. It will be governments’ policy to ensure adherence to such limits through
appropriate planning instruments, guidelines and enabling regulations and their enforcement. Efforts will
be made to diversify the tourism products in such a way that it supplements the main stream of cultural
tourism. Comprehensive perspective plans for developing sustainable tourism by assessing the existing
tourism scenario in each State/Union Territory with respect to availability of natural resources, heritage
and other socio-cultural assets, quantitative/demographic factors like population, employment,
occupation, income levels etc, services and infrastructure will be developed by initiating immediate
action in this direction. The Action Plan also provides for a legal frame work through appropriate
legislation for ensuring social, cultural and environmental sustainability of tourism development and
protecting the tourists. It also aims at evolving specific policies and guidelines for the development of
specific forms of tourism like ecotourism, adventure tourism, etc.
Promotion and Marketing
Promotion and marketing is an important component of tourism development and needs to be
undertaken along with product development in conformity with consumer profiles and product
characteristics. A well laid out Action Plan relating to Promotion and Marketing has been worked out. It
aims at
Achieving effective co-ordination and synergy with other departments, agencies and the private
sector in tourism promotion and marketing.
Fully utilising the Indian missions abroad for tourism promotion and related activities.
Identifying potential tourism markets and segments and adopting focused marketing strategies based
on research to make promotional and marketing efforts cost effective.
Enhancing India’s image as a fascinating multi-attraction and multi-activity destination with rich
cultural heritage and a vibrant society.
Developing a Millennium Yatra Package and Youth packages

Diversification of Tourism Products: - The main strength of Indian tourism at present is its cultural
attractions, particularly, the large number of monuments and archaeological remains scattered through
out the country, its art and artefacts and colourful fairs and festivals. The country is also endowed with a
number of other tourist attractions and options including beach tourism; forests, wild life and landscapes
fo eco-tourism; snow, river and mountain peaks for adventure tourism; technological parks and science
museums for science tourism; centres of pilgrimage for spiritual tourism; heritage trains and hotels for
heritage tourism; etc. The tradition of Indian system of medicine and its curative and preventive effect
are well known the world over. Yoga, Ayurveda and other forms of natural health resorts have thus
become unique tourist attractions of the country. There are also facilities for conference and convention
tourism, cruise tourism and shopping tours. The development of natural health resorts of Yoga, Ayurveda
etc. along with rural tourism, spiritual tourism and eco-tourism will be given adequate attention.
Professional Excellence
Strengthening the institutional set-up for human resource development including the setting-up of an
Advanced Institute of Hotel Management and a Culinary Institute. Qualitative improvement and
modernization of existing training institutions. Setting-up at least one Food Craft Institute in each State,
particularly in North Eastern States. This is the first time there is a talk about placing Tourism in the
Concurrent List of the Constitution of India. Some other important issues, which, this policy
emphasis that had not been dealt with in the earlier policy are Information Technology, security issues
and international cooperation...

Information Technology

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Efforts will be made to adopt the technological advances in the tourism sector to provide better facilities
to tourists and to market the tourism product, to the benefit of all concerned.Information technology
shall be given the pride of place in the efforts to promote Indian tourism. Every endeavor in this regard
would increasingly rely on optimizing the use of e-commerce/m-commerce, use of internet for
dissemination of tourism related information, increasing use of portals as gateway to accessibility to
tourism information, development of Handy Audio Reach Kit (HARK) Tourist Guidance System at
important monuments and heritage sites, networking of States, setting of tourist information Kiosks
,encouragement to information technology and eco-friendly practices by the private industries and above
all keeping abreast with the global technologies for promoting and facilitating tourism. It shall be
ensured that Information Technology (IT) and Indian Tourism (IT) become synonymous.
The economic and social benefits of tourism and its importance as an instrument of economic growth
have to be fully recognized by all sections of the society. It would, therefore, be the endeavor of the
Government to bridge the information gap through proper statistical documentation of the impact of
tourism and its wide publicity to create awareness so that the economic and social significance of
tourism is well recognized and tourism is given due attention and national priority
Safety and Security
The safety and security of tourists are of primary importance both from the point of view of tourism
development and the national pride. It will be, therefore, given high priority in the national strategy for
tourism development. Central Government will take up with the State Government to enact suitable
legislation on travel trade/ tourist police for protection and security of tourists and for providing
institutional mechanism to deal with complaints received from tourists and the industry so as to create a
better security perception amongst actual and potential visitors.

International Co-operation. The Action Points relating to International Cooperation are

To foster positive win – win partnership with all the international agencies and other countries.
Ensuring active participation in the activities of international agencies like United Nations Development
Programme (UNDP), Economic and Social Commission for Asia and Pacific (ESCAP), World Tourism
Organization (WTO), Pacific Asia Travel Association (PATA),Indian Ocean Tourism Organization
(IOTO).
Strengthening tourism promotion and investment through multilateral and bilateral agreements with
different groups of countries like Association of South-East Asian Nations(ASEAN), Bangladesh-India-
Myanmar-Sri Lanka- Thailand-Economic Co-operation (BIMSTEC), and South Asian Association for
Regional Co-operation (SAARC), etc.
Tourism as a separate subject does not find a place in the Seventh Schedule of the Constitution of India
even though a number of its components are either in the Union List or in the State List or in the
Concurrent List. Under the new Policy, Tourism will be placed in the Concurrent List as such a step will
provide a Constitutional recognition to the tourism sector and help in channelising development of
tourism ina systematic manner by enabling the Central Government to bring in legislation governing the
activities of various service providers in the tourism sector.
CHECK YOUR PROGRESS - 6
1. When did the Draft Tourism Policy come out?
2. Name any two of its objectives.
3. Is only one Ministry involved in implementing the plan of action?
16.2.4 EVALUATION
The Draft Tourism Policy 2002 was circulated to all organizations and bodies directly or indirectly
connected with tourism, so that they could give their suggestion. It is still at the discussion stage and has
not been finalized and accepted as a policy. But it is still a set of guidelines and principles which are
being implemented and followed by the Ministry of Tourism and Culture and other State agencies
involved. It is are commendatory set of policies and not mandatory. Keeping in view the basic principles
and guidelines of this Tourism Policy, the Ministry of

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Tourism has been broadly implementing the following schemes/programmes during the 10th Five Year
Plan:
Scheme for Integrated Development of Tourist Circuit
Scheme of Assistance for Large Revenue Generating (LRG)Projects
Scheme of Rural Tourism
Scheme of Financial Assistance to States for Organization Tourism Related Events
Scheme of Central Financial Assistance for Information Technology (IT) Projects
Scheme for support to Public Private Partnership in Infrastructure Development (Viability Gap
Funding)
Scheme of Market Development Assistance (MDA)
Scheme of Professional Services -- Market Research
Scheme for Product/ Infrastructure and Destination Development;
Scheme of Capacity Building for Service Providers (CBSP);
“Incredible India” campaign is being promoted on a war footing. India is being marketing as a
destination for all reasons. It is promoting India as a destination point and its advertisement are being
floated globally in the form of hoardings, bill boards, on running cars, on web sites in different
languages, on the front page of Time magazine, in major international and national magazines like
Travel Guide, National Geographic.Impact of the campaign can be seen from the enhanced earnings
ofRs.55000 crore, an increase of 36%. Not only this, there was an increase of arrivals by 25% and
domestic tourists crossed the 350 million mark.
Due to all these efforts taken by the Government, India has been ranked in the top six preferred
destinations by Condensate.Though it was clearly spelt out that international tourism would be a Central
Government subject and domestic tourism a State subject in the1982 policy. The state government
though have provided the infrastructure at places of tourist interest and have implemented some oftheir
programmes but by and large they have not been very serious about implementing them e.g. the state
government of Maharashtra was asked by the centre
to provide drinking water and other facilities to promote domestic tourism in Elephanta Caves but the
work is still going on. Hence, we can say that there is a laxity on their part when it comes to
implementation. On the other hand, Bihar government has been diverting the funds allocated for tourism
development for other purposes.
The Draft Tourism policy states, that tourism should be put on the concurrent list. It still has not been
done so. Road tax is another issue which needs consensus and rationalisation. The tour operators for
long have been asking for payment of taxes in a lump sum and not separately at the entry of each state.
In doing so the tourist are put to inconvenience eg. If a tourist is travelling by road from Delhi to
Gwalior then the tour operator has to stop at the state border of Haryana, Uttar Pradesh,Rajasthan and
finally Madhya Pradesh to pay taxes.
The National Action Plan mentions areas which are important for tourism development but which fall
under the control of different Ministries of the Government of India like improvement in the facilities at
international airports, liberalised charter flights and open sky policy for routes on which Air India does
not operate or operates in a limited fashion. These are important issues and most of them are being
resolved but still a lot of work needs to be done.
Since tourism is a multi-dimensional activity, and basically a service industry, it would be necessary that
all wings of the Central and State Governments, private sector and voluntary organisations become
active partners in the endeavour to attain sustainable growth in tourism, if India is to become a world
player in the tourist industry. A step in this direction has begun to be taken as can be seen in the
introductory paragraph of this section.
After, 50 years of planned economic development, tourism has found an important place in the overall
strategy. It had been a slow process and often the boundaries of action on tourism were limited by an ad
hoc approach. More ever, though the Plans had covered a comprehensive area and had outlined almost

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all the issues relevant for development of tourism, a clear idea about the role of tourism and its place in
the overall economic development planning of the country had not emerged till the Tenth Plan.
What the five year Plans had achieved through the categorization of schemes and of development
programmes, is, primarily a sectoral growth strategy for tourism and not a role for tourists as a catalyst
for growth. The plan laid emphasis on development of sectors. Depending upon their allocation and the
importance given, it resulted in the development of that sector, so to say if agriculture is given a higher
allocation in the plans in a particular area it would result in the overall growth of that area which in turn
would increase tourism in that area.
The government did realise that tourism is affected by overall development of that area, but did not
realise that it is a two way relationship Not only does economic development affect tourism but tourism
also in turn affects economic development as already mentioned in lesson 1. A striking example is that
of Agra, due to tourists visiting this place to see one of the seven wonders of the world. This town has
woken up from a sleepy city of India, to being a busy up coming developed city with a thriving
industrial sector.
Due to the reasons identified above the Action Plan 1992 which quantified the target of the number of
international tourists’ arrivals to India at 1% of world international arrivals has still not been reached.
Tourism industry as such had never been treated as an engine of growth.If done so tourism growth
would bring with itself development of a whole set of amenities and facilities which would not only
result in economic development of that area, but would also provide the youth with employment along
with a rise in disposable income. This fact was realised only in the Tenth Plan.
Any future vision for tourism should therefore be built on the integration of strategy for the development
of tourism to the basic development strategies of the country. Steps in this direction have already been
taken and we are hopeful of fruitful returns, some of which are already being felt.

CHECK YOUR PROGRESS - 7

1. List out the main lacunae in the policy of the government before the Tenth Plan
2. Tick the following key words which feature in the above section on Evaluation ---- rural tourism,
engine of growth, outlay in the plans, and diversification of products, tourist circuit, and objectives of
NAP.3. Under which brand is India marketing its tourism Happy India, Comfortable India, Hamara India
or Incredible India
The unit introduced you to the Tourism Policy of the Government of India to give you an idea about the
process of tourism policy formation in the country. We also highlighted how the policy fell short of
targets.
We also discussed that tourism got itself an industry status to an export status, hence became entitled to a
number of concessions. This gave an impetus to the tourism industry. It also highlights the importance of
the private sector in tourism development and of tourism being a multifaceted industry. It also brought to
the front the need for integrated development rather than sectoral development. However besides all
this,you should also take note of the ongoing debate on tourism development between the policy makers,
host population, environmentalists and tourism activists. You should at the same time keep yourself
updated on the latest policy decisions and declarations which are made from time to time.
16.4 KEY WORDS
Tourist Circuits, Special Tourist Zones, Tourism Policy 1982, Nap,Tourism Policy 2002, Common
Endeavour, Multifaceted, Sustainable Development, Peoples Participation, Private Participation,
Evaluation,Incredible India Campaign, Professional Excellence, Diversification of Tourism Products,
Overseas Publicity, Improvement of Tourism Infrastructure.
16.5 GLOSSARY
Concurrent list – under the listing of both the Central and State Governments. In other words tourism is
both a central as well as a state subject.
Infrastructure – The basic public services needed for the successful operation of tourism enterprises and
for optimising the comfort of the visitors.

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Visa – An endorsement on the passport issued by the representative of the Government to a person
visiting a particular country as a tourist.
Youth Hostel – A building which offers clean, simple and inexpensive shelter to young people, travelling
independently or in groups.
Multiplier Effect – The money spent by the tourist circulates in the economy and stimulates it, as it
changes hands and is spent and re-spent a number of times there is a chain reaction of spending,
triggered off by the injection of the tourist dollar into the destination economy

16.6 SELF ASSESEMENT EXERCISE

1. Explain the Tourism Policy 1982 and the subsequent National ActionPlan 1992.
2. Has there been a Draft Tourism Policy? If so, how is it similar as well as different from the earlier
policy?
3. Critically evaluate the Tourism Policy of the Government of India?
4. Tick the following key words which appeared in the above sections---Modern tourism, sustainable
development, kings, areas of special interest, Five Year Plans, Foreign exchange earnings, promotion
and marketing. Circuits-cum-destinations identified for intensive development
Travel Circuits
1. Kulu-Manali-Leh
2. Gwalior-Shivpuri-Orchha-Khajuraho
3. Bagdogra-Sikkim-Darjeeling-Kalimpong
4. Bhubaneshwar-Puri-Konorak
5. Hyderabad-Nagarjunsagar-Tirupati
6. Madras-Mamallapuram-Pondicherry
7. Rishikesh-Narender Nagar-Gangotri-Badrinath
8. Indore-Ujjain-Maheshwar-Omkareshwar-Mandu
9. Jaisalmer-Jodhpur-Bikaner-Barmer

Destinations
1. Lakshadweep Islands
2. Andaman Islands
3. Manali (Solang-Nalah)
4. Bekal Beach
5. Muttukadu Beach
6. Kangra (Pong Dam)

LESSON – 17
GLOBALISATION AND TOURISM –PERFORMANCE AND EVALUATION STRUCTURE
We have, already learnt about the changing form of tourism in India, the importance of planning, the
allocation of funds during the plans, the various tourism policies and the areas on which they laid
emphasis. We also learnt in the earlier lesson that all our plans have been drawn out of the Tourism
Policy 1982. Finally, in the Tenth Plan tourism was viewed as an engine of growth and a host of measure
was embarked upon. In this lesson we shall be able to comprehend the effect of globalization on the
tourism industry. It shall also help you understand how tourism has performed after the Tenth Plan. The
Ministry of Tourism, Government of India has successfully placed India as destinations for holidays
with global brand i.e. ‘Incredible India’ campaign and full efforts are there to sustain it with new flavour
in the campaign ‘Colours of India’. The government is actively involving private sector in the
infrastructure development as tourism infrastructure will be the key driver for the
growth of tourism in India. There is a tremendous opportunity for India if policies are properly
implemented. Our tourist arrivals are only at 3.6 million whereas our competitions have shown real
growth like China has gone over the 30 million mark. For India, tourism earns over $4.3 billion and is

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the third largest foreign exchange earner. We can still earn more and make tourism the main source of
foreign exchange for our country.
India should encourage tourism as a ‘Whole Product’ rather than view it as separate pieces like Aviation,
Hotels, Entertainment, Transport, Amusement Parks etc. Year 2004 proved to be an excellent year with
24% growth over 2003, in respect of tourist’s arrivals, foreign exchange earnings also raised by 33% and
the most important part that we restored the high length of stay of tourists which is about 30 days.
Domestic tourism again proved a boon - India tourism with 309 million domestic tourist in 2003 and
400 million in 2004 (approximately). Economic impact of tourism to create jobs is the great opportunity
as also an opportunity to enhance its share of global market which is at present is very minimal. 0.38%.
Besides all these we shall also look into as to why tourism has not grown the way it should have, given
India’s diversity both in terms of natural and cultural wealth.
17.2. GLOBALISATION
When we speak about globalization of services, there is a tendency to highlight sectors such as IT,
finance or telecom, sectors with high commercial orientation and well-recognized players. Increasingly,
however, various social services are experiencing growing cross-border transactions and beginning to
draw attention. Globalization of these services is, in many ways, more interesting and complex, given
their overall non-commercial orientation and the associated welfare, equity and public-private
considerations.
Huge volumes of data and information can be transferred ,instantaneously at the click of a mouse to
entities abroad by Corporations, from one country to another. One of the dreaded consequences of
globalisation is outsourcing - which leads to a shift of jobs from the wealthy West to the East.
The developed countries, principal supporters of globalisation, who have expounded the principles of
free trade in goods and services as well as financial liberalisation, find themselves not the only ones
benefiting as developing countries have exploited their comparative advantage in price, services and
goods.
Thus impact of liberalisation on tourism needs to be very closely studied. There is a feeling that the
developed countries are getting the maximum benefits because of the leakages in the system. The
developed countries also feel that they are not getting the full benefits as much as they should of the
liberalisation process. The consumers are not getting the benefits from all the productivity gains brought
about by technology – thus in spite of the best efforts the impact is not as expected.
Tourism is one of the fastest growing sectors of the global economy. In this expanding industry
developing countries are attempting to cash in,to boost foreign investment and financial reserves. There
has been a global tourism boom in recent times. International tourism has been performing better than
world trade. Tourism receipts have registered a higher growth than that of world export in services and
merchandise exports. The world tourist traffic increased by 3 per cent during 1997 and the regions which
benefited the most were Africa with an increase of 9.2 per cent and South Asia with a growth of about
4.9 per cent. It is projected that the international tourist traffic will increase to about 1602 million by
registering a growth of about 4.3 per cent during the period up to 2020. The South Asia Region
including India is expected to record a higher growth of 6.1 per cent.
The impact of globalisation has been seen in the form of increased tourist arrivals in the countries
promoting tourism as major source of revenue, employment and international understanding, which also
helps in global peace. The impact of globalisation has made the world a “global village”.
The positive impact of globalisation has been seen in respect of direct investments, which helped in
developing over all infrastructure, accommodation, aviation, cruise tourism, roads, and automobiles –
the segments that are interlinked with tourism. It opened up new opportunities in MICE tourism,
Medical tourism, IT sector, Technical and Research fields, which prepare the manpower in tourism to
meet the future challenges and prepare human resources for better servicing.
Travel and tourism has become a strategic economic priority, which till now did not get the priority, as it
should have. Prior to globalisation, unfortunately tourism never found the pride of place in the social

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economic planning of many countries. This is because the Governments underestimated the economic
benefit of tourism, as it was not as visible as in industries such as manufacturing.
Liberalisation process has helped the growth of outbound tourism from India and today nearly 5 million
Indians are travelling abroad. China is emerging as a very important source of outbound tourism in the
world.
WTO estimates outbound movements from China would generate 100 million tourists by 2050. Such
will be the impact of globalisation in respect of tourist movements.
New markets have also opened up after globalisation. With globalisation a number of political changes
have taken place like the emergence of European Union and the dismantling of the borders in Europe,
the dilution of the visa formalities, constitutions of free zones, disintegration of the Soviet Union, and
growth of regional alliances which are going to influence future growth patterns. The perception of the
travellers about safety in travel in many Asian countries has changed. In fact Asia-Pacific region is
estimated as the highest growth area in the world tourism. East-European and former Soviet citizens are
potential travellers after the developments in Soviet Union and Eastern Europe. With globalisation the
inbound tourism the main objective of the country has seen a substantial increase. We achieved the 3
million mark in 2004 and the 5 million mark is being targeted by 2007. If the trend continues, the
industry is optimistic of achieving the target. But we need to be ready for it when it happens.
The globalisation of the tourism business will have an impact in the following areas

1. Socio – demographic factor: With globalisation there has been an increase in the ageing population
and declining growth of population in the developed countries. On the other hand, increasing population
in the developing countries, as well as share of women in the work force of tourist generating countries
is increasing. All these will need different marketing strategies.
2. Changes in the consumer behaviour: Tourism in future will be more demanding and more
knowledgeable in all respects. This will need more market segmentations, development of quality of
services that can sustain the interest of the repeat visitors. Tourism products will need to be tailored both
in content and facilities geared to the specific tastes and demands.
3. Technological changes: (i) Technological changes in the civil Aviation sector (ii) Information
Technology and revolution in Telecommunications. E-ticketing, Internet, smart card, loyalty
schemes,online booking via the internet, use of global distribution systems etc. will be the style of
tourism. Those countries not devoting their machinery to meet these challenges will be left behind.
4. Human Resource Developments: In addition to all the above mentioned technological areas, training
requirements will be an essential component for tourism in the future in order to meet the new
challenges.
5. Though the globalisation process provides many opportunities to the tourism promoters, it is not
free of hurdles. Central Reservation System (CRS) reduces the scope of initiatives to personalise the
products and product marketing initiatives. Travel agents will have to invest heavily in purchasing the
operating systems. The huge movements of tourists will raise issues of carrying capacities of each
destination. Additional pressure would be put on the fragile eco-system and non-renewable resources.
Long term success of tourism will largely depend on its sensitivity to sustainable development issues.
Liberalisation should be so guided that local skill is upgraded rather than skill brought in from outside.
The process of liberalisation must recognise heritage and uniqueness of each place. Strength and variety
along with infrastructure and service will be the key to the future of tourism.

However, it is felt that the uncontrolled growth of this industry can have serious consequences. It could
result in serious environmental and social problems. It is the contention of world bodies like The United
Nations,that such negative effects should be controlled and reduced. They argue that 'tourism needs to be
more sustainable' and to ensure a sustainable development there is need to bring together national and
local governments, the tourism industry, trade unions and activist groups to realise this goal. It is yet to
be seen, whether the global tourism industry can really be propelled towards sustainability given the

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current international and political environment. This will be discussed in greater detail in the following
lessons.
To get the best out of the system of globalisation one has to look at the main areas i.e. process of
liberalisation must not adversely effect local employment, or local skills are not replaced by manpower
from outside and the liberalisation process must respect cultural heritage, uniqueness of each place and
variety which are linked to the success of tourism.
There should be sincerity to meet the challenges of development with a sense of purpose and
determination. One should be ready to adopt new strategies to be able to meet the future challenges in
competitive global environment.
One of the important affect of globalisation has been on medical tourism. The healthcare sector is among
the most rapidly growing services in the world economy, estimated at $4 trillion yearly in the OECD
countries alone. The sector has seen new and rapidly evolving forms of cross-border transactions,
spurred by factors as wide-ranging as technology, demographics, and costs, skills, growing private
sector participation, natural endowments, culture and geography.
Globalisation of health services involves various modes of transaction. It involves cross-border
electronic delivery, such as tele-diagnosis, tele-consultations, and transmission of medical images. As
well as traditional shipments of medical reports and samples and, more recently,outsourcing of clinical
trials. It also involves cross-border movement of consumers to avail of healthcare services in another
country, often because such treatment is not available, or is too expensive in the patient’s home country.
The Indian market for medical tourism has been growing at over 15% in recent years. About 100,000
foreign patients come, it is estimated, from West Asia, South Asia, the US and UK to India each year for
cardiac surgery, transplants, hip replacements and cataracts as well as for treatment in Indian systems of
medicine. Hospitals such as Apollo and Escorts and the state of Kerala highlight India’s potential in
medical tourism. India can provide high quality but affordable treatment, at a fraction of the cost of the
developed countries.
The other important affects of globalisation on tourism has been on ecotourism,adventure tourism,
cultural tourism and pilgrimage tourism. On the other hand many developing countries, facing debt
burdens and worsening trade terms, have turned to tourism promotion in the hope that it brings foreign
exchange and investment. Simultaneously, leading international agencies such as the World Bank,
United Nations agencies and business organisations like the World Travel & Tourism Council (WTTC)
have been substantially involved in making tourism a truly global industry.
Travel and tourism has emerged as one of the world's most centralized and competitive industries, and
hardly any other economic sector illustrates so clearly the global reach of transnational corporations
(TNCs). Over recent years, the industry has increasingly pressured governments around the world to
liberalize trade and investment in services and is likely to benefit tremendously from the General
Agreement on Trade in Services (GATS) - a multilateral agreement under the World Trade Organization
(WTO).
GATS aim to abolish restrictions on foreign ownership and other measures which have so far protected
the services sector in individual countries. For the hotel sector, for example, GATS facilitates
franchising, management contracts and licensing. Moreover, foreign tourism companies will be entitled
to the same benefits as local companies in addition to being allowed to move staff across borders as they
wish, open branch offices in foreign countries, and make international payments without restrictive
regulations.
The WTTC has recently presented its 'Millennium Vision' on travel and tourism, including the
following key areas:
Get governments to accept travel and tourism as a strategic economic development and employment
priority;
Move towards open and competitive markets by supporting the implementation of GATS, liberalize air
transport and deregulate telecommunications in international markets; Eliminate barriers to tourism

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growth, which involves the expansion and improvement of infrastructure - e.g. the increase of airport
capacity,construction and modernization of airports, roads and tourist facilities.
It is already a well-established fact that in some developing countries,more than two-thirds of the
revenue from international tourism never reaches the local economy because of the high foreign
exchange leakages. Now, as the new free trade and investment policies are being implemented, their
balance sheets may even worsen because the profits and other income repatriated by foreign companies
is likely to grow larger than the inflow of capital. That means, the claims that globalization and
liberalization of tourism will bring wealth, progress,social achievements and improved environmental
standards to developing countries need to be seriously questioned.
CHECK YOUR PROGRESS - 1
1. Write two effects of globalization on tourism?

Activity-Talk to your father or any elderly person as well as to a friend about their travel itnerary. Was
their travel confined domestically or was it outbound? Write down your observation.
Tourism industry involves a wide range of players who serve tourists directly and to a greater or lesser
extent depend on tourism for their business. They include hotel and catering services, recreation and
cultural services, travel agencies, tour operators, and tourist guides. The term “hospitality industry” is
also used as a synonym for hotel and catering industry and services, and often imprecisely to include
tourism industry also. Another term used in the tourism industry is “destination management”. These
terms have already been explained in the earlier lessons.
Tourism is a development activity which enhances the quality of life,preserves the national heritage and
encourages the appreciation of India’s diverse cultures both by Indians and foreign visitors. It has
become an important segment of Indian economy as it creates employment opportunities
and contributes substantially to its foreign exchange earnings. The estimates foreign exchange earnings
in 1999 were Rs.12495.55 crore, an increase of 8.35% over the previous year.
India has everything that can attract tourists.A recent study by the World Travel and Tourism Council
(WTTC) has estimated that India’s tourism and travel industry contributes about Rs.90/5 billion every
year to the GDP and provides 17.4 million jobs.
The study also has envisaged that the over all economic activity stimulated by the industry would grow
at the annual rate of about 8.4% over the next decade. This growth would result in the industry
accounting for more than one in 15 jobs and contributing about 6.9% to GDP by the end of 2010 AD.
Tourism is the largest export industry in the world. International tourism is the largest single item in the
world's foreign trade and for some countries it is already the most important export industry and earner
of foreign exchange. The impact of tourism on national economies is becoming increasingly important
today because of the growing size of the tourist market. It is recognised so by the World Bank and the
World Tourism Organisation. 27 September has been earmarked as World Tourism Day. India has been
striving to get some share of this industry.
Tourism is the world's largest export industry today. According to World Tourism Organisation
international tourist traffic in 1997 was 613 million which generated receipts of about US$444.0 billion.
It is estimated that tourism accounts for about 8 per cent of the total world exports and more than 30 per
cent of international trade in services. It is also estimated that travel and tourism provide employment to
212 million peoples directly or indirectly accounting for about 10.7 per cent of the global work force.
Inbound tourism towards India will see a big change in the tourist arrival segments. More business
traffic will be towards India than usual leisure ones. India’s growing economic power status and
investment opportunities, as well as the change in lifestyle of Indians will bring good number of
incentive holidayer’s to India. Lot of them will come to India for attending conferences and conventions.
Their demands will be different and we have to provide facilities to meet the requirements of these up
market clients.
As mentioned earlier, the State Government intends to designate certain areas having significant tourist
potential as Special Tourism Areas. To this end, reputed consultants and institutions will be engaged to

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prepare area development plans in respect of various areas such as Kutch District, areas around Sardar
Sarovar project area, South Saurashtra areas covering Gir, Porbandar, Veraval, Somnath, beaches and
areas of pilgrimage/heritage towns. These areas will be developed by following integrated area
development approach. The State Government will make efforts to tap all the source of national and
international funding for development of these areas and provide special encouragement to tourism
projects being established therein. For ensuring faster development of these areas, area development
committees will be constituted.
Another new segment in inbound tourism will be for medical and wellness. In India medical treatments
can be conducted at par with international standards with all modern facilities but packaged, price wise,
on a very affordable platform. Some would like to come for rejuvenating packages at relaxing
surroundings of Kerala Goa etc. This is more like a cleanup process for physical, mental and emotional
way of living.
Importance of inbound tourism has now been recognized along with domestic tourism but inbound
tourism brings dollars that can help in bringing more infrastructure changes. Tourism recognition
contributes significantly to strengthening the brand and profile of the destination and ‘Incredible India’
with global campaigns has had an impact. We need to collect Qualitative data to establish contours of
each market and reach new markets to sustain the inbound tourism potential.
But the sad part is that we are still hovering around the 2.5 million tourist mark since the last 2 years. No
doubt, there were genuine reasons in 2001-02, with the series of negative global events to bring the
growth to a halt. Things are improving since mid 2004. India is stepping into the 4 million figures by
early 2005. There is positive growth over 2003 figures and average 15% growth can be expected. Same
success story can be seen for tourism receipts. Even outbound traffic from India is progressively moving
upwards (about 5 million) and domestic tourism is having continuous growth which now stands at 350
million in 2005 and may cross the 500 million mark by 2006.
Some of the important highlighting features of tourism performance are
With inbound arrivals reaching 3.37 million earning grew to USD 4.8 billion in 2004. India has
proved to be a happening destination in SAARC Region.
Domestic tourism is also booming and has already crossed the 350 million mark.
Outbound tourism is equally progressive with over five million plus Indians travelling abroad.
Air capacity has been doubled. Connectivity is much better and our domestic carriers are now flying
to neighboring countries and some overseas destinations also.
Many new airports are being used by many international airlines,for example Singapore airlines flies
to Ahemadabad.
No frill airlines have not only made domestic travel very affordable but have also connected many
new places.
Huge investments are being made to modernize our international airports as well as our highways.
Disinvestment and liberalization policy of the government has ensured world class services to the
tourists, by opening up hotels like Park Royal, Hilton, Le-Meridian, and Holiday Inn.
India branding with the “Incredible India” campaign has paid rich dividends in opening up new
markets and to reach niche market segments.
India’s performance has improved drastically over the years but there is still a long way to go.
India’s percentage of world tourism receipts/arrivals is still way below the world standards as well as
that of
our neighboring countries as can be seen in Table 2
More than 50% of the tourist arrivals are from U.K., U.S.A., Germany, Italy, Malaysia and Australia.
Out of this more than half are from U.K. and U.S.A. as can be seen from Table 3

Table 1 Foreign Exchange Earnings through Tourism (Million US $)

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161
Top Ten International Markets for India During 2004

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CHECK YOUR PROGRESS - 2
1. Write two major achievements in tourism performance?
Activity
From the following words tick those, which appear in the above section. Connectivity, National Action
Plan, no frills airlines, UNCTAD ,incredible India, adventure tourism, inbound tourism, sustainable
tourism, outbound tourism, medical tourism, and destination management.

17.4 REASONS FOR SLOW GROWTH

Tourism products of India are so varied that very few countries in the world can provide such a mix of
nature, richness of architecture ,wildlife, festivities, shopping etc. in one holiday. Thus Indian holidays
provide real tourist experience. The travellers of all ages, all budgets and all interests can find their visit
very satisfying.
Looking into these aspects, one can always feel that we have not been able to utilize our potential in full.
The small success that India has achieved can be seen by the number of tourist arrivals. But we have to
move ahead cautiously as our competitors are doing much better and preparing themselves aggressively.
We must see how Thailand, Malaysia, Singapore, Hong Kong and now China are coming forward with
competitive packages.
We have not only to match their price but our products also have to improve. Our infrastructure is
limited to a few metropolitan cities; many of the tourist places around metros do not even have the basic
facilities.
The major reason as to why the tourism industry is not doing that well is that we lack a positive attitude
to do something big. There are however,some real problems and many of those are influenced by
internal as well as external factors. More important are the internal factors where a clear cut policy
directive is needed by giving priority attention to tourism,higher budget outlay, tax incentives and
creating a tourism friendly environment with sound service providers’ team. Tourism is nothing but a
combination of services for which travellers are willing to pay. It is their interest for meeting new culture
i.e. experience, a new source of entertainment, eco-friendly holidays, economic viability of its products
(value for money) that decide destination choice. India fits quiet well in this selection process.
We have some real constraints. We need to change our “attitude” and “approach” to tourism which in
general, thought of as an elitist “activity” and not which is a right vehicle for welfare of mass in India.

The ground realties of the Indian tourism scenario, oft repeated though,can briefly be summarized
as follows:
Inadequacy of infrastructure
Inadequacy of infrastructure and poor quality of available infrastructure is one of the most nagging
bottlenecks of tourism development. While all areas of infrastructure development need attention, some
key elements can be listed as:
carrying capacity by air, road and railways;
clean and comfortable lodging facilities at reasonable prices;
trained guides and tourist amenities of international standard, in major places of tourist attractions;
and
adequate entry points, more international airports, and facilitation services of international norms in
the major airports.
Also basic facilities need to be improved. The airports which are entry points give a poor image and
more important tourist facilities viz. hotels,transports, rail road, basic amenities at tourist places and
general awareness and hygienic and a tourist friendly welcome, tourism related taxes mainly road taxes,
Aviation Turbine fuel tax, sales tax, high excise duty on ATF, air seat capacity need to be improved.

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Let us first look at Air connectivity part. We need to be well connected from the traffic generating
aspect. Our national carrier does not have that number of aircrafts to fly from all those destinations. Thus
seat capacity has always remained a big problem. We must allow all those foreign airlines who are
willing to fly to India without putting a lot of conditions or soon privatize Air India so that it becomes
competitive.
Similarly our airport facilities are very outdated, they need a total face lift to take more charters, bigger
aircrafts and up market traffic. Airports form first impressions and we can’t create the right image with
the present condition of our international airports. We need to relax the charter norms. It will help us
combat off seasonal problems. Opening of new airports will take away the congestion from metropolitan
cities and open up new tourist centres that can ensure balanced growth of tourism all over India.
The position becomes all the more complex with aviation related taxes (things are a bit improved with
the withdrawal of ATT, reduced fuel tax etc. recently) as announced by our Finance Minister in his mini
budget.
We must rationalize the tax part, Aviation Turbine Fuel taxes have proved domestic tours by air much
cost prohibitive. Indian tourists find visit to overseas countries much cheaper than visiting the places
within India. Road taxes are so high that surface transport packages are not being patronized. Fly drive
concept is totally lacking in India because of road taxes. The inconvenience which travellers have to face
at border check points is really discouraging to boost surface tourism.
Visas on arrivals at airports should be available. We need to spend more on tourism branding in new
markets to face the challenges of the competitors. World class road to world heritage sites need to be
established. Hotel taxes are to be rationalized, State Governments should provide land at concessional
rates or leased on long term basis instead of auctions thus motivate private participation for development
operations and maintenance of tourism infrastructure in the states. Most important is to upgrade airport
infrastructure and this is to be taken on a time bound manner. Road connection from airports to city
centres and reduction on luxury tax on hotels and reduction on transport rates, one point tax collection
i.e. national permits for approved tourist transfer vehicles for hassle free inter state movement.
Budgetary support
While the required infrastructure is inadequate and is not of comparable quality, resources to make
qualitative changes quickly and effectively are also not available. Budgetary support to the tourism
sector has been insignificant due to the pressing and competiting demand from various sectors. It is
important, therefore, to consider other avenues for resource generation and also to consider modalities
for greater public-private partnership.
We also lack forming business partnerships. Each one is trying to promote some product by undercutting
each other’s business in the overseas markets. Greater degree of co-operation is needed especially
between trade and Government agencies. State Governments should reduce road taxes, luxury taxes on
hotels etc. – all these taxes make our product a bit overpriced. Private sector investment needs to be
encouraged in developing tourism and public sector investments should be focused only on development
of support infrastructure. Thus the
seeds of private initiatives which were sown during the Seventh Plan should be encouraged.

Trained Personnel
Tourism is a service industry and the excellence of services makes the crucial difference. That difference
comes from trained professional personnel. Shortage of manpower, in India, is a serious
handicap.Human Resources Development is an important aspect of service industries. Tourists depend
upon travel agents, guides and hence trained manpower is a sine qua non of tourism industry. On the
basis of available statistics, training facilities can be safely said to be totally inadequate. If trained
manpower is not available locally, the objective of local employment will not be achieved.
Keeping in view the approach of market-led development, the State Government will encourage and
support creation of training facilities in the private sector by private agencies/individuals.

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Hotel Management course, courses meant for guides, caterer and other supervisory and non-supervisory
staff of hotel will be introduced in Industrial Training Institutes (I.T.Is). Approved hotel associations and
private entrepreneurs should be encouraged to create new training facilities by making available land to
them for this purpose and by giving other appropriate incentives. The Government should consider
setting up Hotel Management Training Institute at the State levels preferably in private sector.

Evening entertainment
Evening entertainment is totally lacking in most places including metros.Some serious partnerships need
to be formed between State Governments and the private sector so that tourists can enjoy their evenings.
They should get an opportunity to experience local culture.
Diversification of product by adding specific sectors like sports,healthcare, museums, etc. is a must for
increasing the interest of the tourists in the evenings.
Other aspects
Quality tourist literature, decent upkeep of monuments, amusements parks, multi cuisine food plazas,
shopping malls, all these are needed for successful tourism. We all know where we actually stand and
how much we need to do in these areas so we should not go complacent with the small success made in
tourism sector in the recent past.
Quality Research
Indian tourism can achieve a better growth rate, provided it takes note of the quality research input and
the environment in which the tourism industry operates which will finally shape the strategies for
marketing tourism products. India should also strive for better regional and subregional cooperation for
promoting interregional and intra regional tourism. This sort of cooperation will be helpful in joint
promotion for the principal market, outside the region and to further the growth of tourist traffic within
the region. India has a rich culture and heritage tourism product complemented by a fascinating and
attractive natural environment. It has many of the essential ingredients for successful tourism
development, together with a structured planning framework in which future growth can be assessed
systematically. Whilst investment may be a constraint upon development, and a degree of modernization
is required in relation to infrastructure, one of the principal concerns is the impact of existing and future
development on the environment, people and community structure. Future development needs to be
particularly concerned with the cost-benefit ratio of tourism. It may yield important economic benefits,
but there are also major opportunity costs, which are frequently overlooked by the policy-makers and
planners.
State of health tourism
Only 5% of all patients treated at reputed hospitals like Escorts are foreign, compared to 25% at
equivalent Thai hospitals. Inadequacies in supporting infrastructure, equipment, supplies and domestic
regulation,lack of recognition of Indian medical qualifications and disparity in standards of training and
quality remain major constraints.
Adverse Publicity
The cost of image building abroad is very high and the negative multiplier effect of adverse publicity
can be quite damaging. In order to avoid this government is advertising that tourists especially women
tourist should not travel alone.
Tourist experience
Publicity through brochures and official handouts is only one of the means of reaching out to the people.
It is universally recognized that a satisfied tourist is a country’s best publicity. Similarly, unhappy
experiences of tourists can ruin years of image building exercises.Hassles of travelling in India are a
major constraint of tourist promotion.
Maintenance of sites

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Many of the tourist attractions in India have shown signs of wear and tear because of very high pressure
of visitors and poor maintenance.This is another area of very serious concern because with tremendous
growth in domestic tourism, the priceless heritage of the country has deteriorated over the years. A
public fund for the purpose of maintenance and restoration being limited, their maintenance which is
expensive and which requires a high degree of technical expertise, has suffered.
Conflict of interest
The need to preserve the heritage and natural attractions for posterity is well recognized in government
policy. At the same time, as demand for service around such places increases with growth of tourism, the
local population sees an opportunity for maximum economic gain out of it within the shortest possible
time. This conflict of interest has raised serious issues of sustainable development in many places.
Places like Goa and the beaches of Kovalam have shown signs of such stress. At the same time, such
issues are now more in the scrutiny of social action groups and the media. As a result, in many places
tourism promotion has also encountered emerging social tension.
Cheating and swindling of tourists
Tourists are cheated and harassed all along by the travel agents, as well as by the hoteliers. In effect the
image of the country is pretty bad as far as the foreign tourists are concerned and this in turn affects the
inbound tourism a lot. This needs to be rectified soon or the fallout will be grave.Also a complaint box
should be arranged at all hotels/airports to bring greater transparency to the system.
Government Policy
There were times when the division of power resulted in operational contradictions. For instance, by
1989, many foreign hotel chains like Hilton, Hyatt, Penta and Kempinski had applied for licenses for
investing in India. However, the revenue departments of the respective States failed to locate and
allocate land for the construction of hotels.The scheme, thus, fell flat. Curiously, the Union Government
was not hesitant to make use of Constitutional provisions when it suited its interests.
We should not forget that tourism is an industry which emerges in the context of unresolved socio-
economic structural issues, such as land distribution patterns or the take over of traditional occupations
by modem mechanized capital. Tourism happens to be a source of livelihood for millions in India and
aggressive privatization does not ensure social and economic safety nets. In the face of the unhindered
entry of international capital and successive alienation, perhaps, it is difficult to agree that "the future is
in our hands"
Tourism is a multi faceted activity and new forms of it are continuously coming up. The government has
identified the major new types as well as the places/circuits for them but the pace of development has
been slow because of lack of funds and responsibility of their development not being with one authority.
Private sector participation is a must for specific location development. Various sub-sectors of tourism
activities listed below should be encouraged by marking new tourism units eligible for incentives under
Tax Holiday incentive scheme in designated areas. No doubt, quite a lot has been done in recent years –
India’s Highway development program, recent announcements about tax reduction in fuel, withdrawal of
Air Travel Tax; abolition of expenditure tax, declaring the hospitality sector as a infrastructure industry,
State Governments reducing sales tax on aviation fuel etc.
With synergized approach and proper networking all these new challenges can be met and India could be
the right choice To make the New Tourism Policy result oriented, implementation will be monitored by a
High Powered Committee under the Chairmanship of Chief Secretary.A Management Information
System will be set up to assist the Committee to make available information on various aspects of
implementation on a continuous basis. The Committee will also review the policy from time to time.
The principle of sustainable development stipulates that the level of development does not exceed the
carrying capacity of the area. It will be governments’ policy to ensure adherence to such limits through
appropriate planning instruments, guidelines and enabling regulations and their enforcement. Efforts will
be made to diversify the tourism products in such a way that it supplements the main stream of cultural
tourism. Comprehensive perspective plans for developing sustainable tourism by assessing the existing
tourism scenario in each State/Union Territory with respect to availability of natural resources, heritage

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and other socio-cultural assets, quantitative/demographic factors like population, employment,
occupation, income levels etc, services and infrastructure will be developed by initiating immediate
action in this direction.
Tourism development needs to be properly guided and regulated to avoid adverse impact on the natural
environment and cultural heritage which constitute the tourist attraction. A judicious balance needs to be
maintained between conservation and development. Government will continue its policy of trying to
maintain balance through planning restrictions and by educating the people in appreciating their rich
heritage and by eliciting their co-operation in preserving and protecting it.
Promotion and marketing is an important component of tourism development and needs to be
undertaken along with product development in conformity with consumer profiles and product
characteristics. The policy of the Government therefore will be to develop and implement cost effective
marketing strategies based on market research and segmentation analysis in each of the tourist
generating countries. Tourism is a global industry requiring inputs from various international agencies
and collaborations with other countries.
The policy of the Government therefore will be to foster positive win –win partnership with all the
international agencies and other countries.Tourism as a separate subject does not find a place in the
Seventh Schedule of the Constitution of India even though a number of its components are either in the
Union List or in the State List or in the Concurrent List. Under the new Policy, Tourism will be placed in
the Concurrent List as such a step will provide a Constitutional recognition to the tourism sector and
help in channelising development of tourism in a systematic manner by enabling the Central
Government to bring in legislation governing the activities of various service providers in the tourism
sector.
CHECK YOUR PROGRESS - 3
1. Identify three most important key words, which highlight causes for slow growth of tourism
Activity
Talk to some one who has seen the interior of an airport and discuss the state of the airports asking him
to give five suggestions to improve the same.
17.6 KEY WORDS
Globalisation , inbound tourism, outbound tourism, hospitality industry, world tourism day, medical
tourism, sustainable tourism, taxes ,poor infrastructure, training of manpower, airport facilities,
enhancing capacity, modernization.
17.7 GLOSSARY
Transnational corporations (TNCs): These are corporations operating in a number of countries
UNCTAD United Nations Conference for Trade and Development
GATT: General Agreement for Trade and Tariff
GATS: General Agreement on Trade in Services
TRIMS: Trade related Investment measures
17.8 SELF ASSESEMENT EXERCISE
1. Explain how globalisation has affected the tourism industry?
2. How has the tourism industry performed in the post globalization era?
3. Is India’s growth in tourism in tune with world growth?
4. What are the reasons for the slow growth of tourism in India?

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 LESSON - 18
DESTINATION INDIA: TOURISM EXPERIENCES
INTRODUCTION
Have you travelled to a place outside your home town/city? What is it that you remember about your
visit? Did you come across new/ different climates, geographical areas, monuments, people, languages,
festivals etc.? All these memories, feelings and experiences may together be called ‘The Tourism
Experience’. In this lesson we will discuss what kind of tourism experiences are offered by destination
India. In other words what is it about India that a person coming here would enjoy, remember and talk
about?
Every body who comes to India likes to tell the world that he/she has just returned from India. This is
not a new thing. You all must have read in your school history books, about the travelogues of Huen
Tsang, Alberuni and Fahien which narrate the story of their experiences during their visit to India. More
recently, Hollywood actors, Diplomats, State guests including Presidents of developed countries have
talked about their experiences in India.
This lesson discusses in some detail the variety of experiences that a tourist would enjoy in India due to
the geographical and cultural diversity of this amazing country.
The concluding sections include a brief summary, answers to review questions, glossary of new terms
and suggested readings for those of you inclined to know more about this magical land of ours called
India. So let us begin our journey to DESTINATION INDIA.

18.2 INDIA: A LAND OF ALL SEASONS

India is so large that it can provide any season or climate any time of the year. India has some of the
highest peaks, the longest plains, the hottest, the coldest and the wettest regions in the world. From the
Himalayan peaks in the north to Kanyakumari in the south, from the Rann of Kutch in the west to Assam
in the north-east, the 3.3 million square kilometres of the vast Indian subcontinent encompasses a
diversity of geographical conditions, scenery, climate and people far greater than what is found in entire
Europe.A seasonal change in India is more than a change of weather. There is also a subtle change of
mood that colors the season’s festivals, music, dances and even its food.
Winter
Most foreign tourists arrive in India during winter. Winter is the time for skiing in Kashmir, Himachal
Pradesh or Garhwal Himalayas. The tourists also have the option of swimming in the coastal regions of
India as the water is generally a warm 200 Celsius (or more) even in winters. They may also enjoy the
cultural festivities, plays, exhibitions, concerts and dance performances in the big cities during this
period.
Spring
In spring Kashmir, the Kullu valley and Darjeeling are enchanting with their meadows of multi-coloured
wild flowers against a backdrop of Himalayan mountain peaks. The gardens in the plains, too, are full of
variety of flowers of many different colors, sizes and fragrance.
Summer
During the hot summer months of April, May and June, beautiful flowering trees and trees of juicy
tropical fruits like mangoes and litchis can be seen all around. Many people living in the plains head for
the mountain resorts of Kashmir, Shimla, Nainital, Kullu and Manali (in the north), Darjeeling (in the
east) or Udhagamandalam (Ooty in short) and Kodaikanal (in the south).
Monsoon (Rainy Season)
The monsoon season is a time of dark thunder clouds and green valleys,singing birds, dancing peacocks
and rain washed surroundings. It delights every Indian’s heart and is considered ideal for romance and
brisk activity.After the monsoon, comes the harvest season which is also the time for long festivals.
CHECK YOUR PROGRESS 1
1. Name some of the hill stations of India.
2. Why is monsoon so delightful?

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3. What is so special about spring?
4. Name four activities that can be undertaken during winter in India.

18.3 INDIA: A DESTINATION FOR ALL REASONS

India offers an experience that very few destinations in the world can offer. There is a wide variety of
choices for a tourist in India which includes a mix of nature, wild life, adventure, culture, architecture,
festivals, varied cuisine and shopping. We Indians, therefore have many reasons to be proud of the great
tourist resources of our country. The varied tourism products of India include:
25 Bio-geographic zones
Wildlife
Adventure
Beaches
Inland Water ways
27 World Heritage Sites
Diverse Culture
Art and Craft
Fairs and Festivals
Rural Experience
Shopping
Variety of Cuisines
Traditional Healing Systems
Modern Medical Treatment
The new range of tourism products such as Health Tourism, Adventure Tourism, Nature Tourism, Rural
Tourism etc. are explained in Lesson 21that deals with the Emerging Dimensions in Indian Tourism. The
conventional
/traditional tourism products of India are explained in the next two sections.

18.3.1 INDIAN ARCHITECTURE

India is like an open museum to see global architecture at one place. One can see the world in India
through its varied architecture.Indian architecture dates back about 4000 years. Mohanjodaro and
Harappa is the cradle of Indian architecture (though now in Pakistan.Lothal in Gujarat also dates back to
that period. Cave temples represent the early Hindu, Buddhist and Jain architecture. Udaygiri and
Khandgiri Caves in Orissa are probably the oldest cave temples (still intact). Ajanta-Ellora caves are
great example of temples carved out of solid rock.
Construction of stone temples probably came into style during the Gupta dynasty rule, which continued
till 10th Century. Major Stone temples were built in the 7th to 12th Century A.D. The Chandellas in the
north and the Cholla dynasty in the south made unique and magnificent temples using stone. Vijay
Nagara kings and Nayakas were famous Hindu kings who believed in large-scale constructions and
elaborate decorations.
The architecture of different periods shows the influences of contacts with the outside world, diverse
geography, rulers and religions. The Sanchi Stupa built during the reign of Ashoka (2nd Century BC) is
a unique architecture of Buddhist style. Jain temples in Rajasthan and Gujarat have totally different
style, specially temple of Dilwara and Ranakpur in Rajasthan. West Bengal had Terra-cota style. Orissa
has temples of many different styles.
In 1192 Qutabuddin Aibak started the Islamic style construction. An example of this style of
construction is known as the Quwwaat-ul-Islam (built 1192-1198. Qutab Minar (built 1199-1235) is
another great example of Islamic style. Main thing about Islamic architecture is the Arch style.
Craftsmen from Middle East who had the knowledge of Arch style introduced this latest trend of arches
to Indian constructions. The next generation craftsmen became very perfect in the traditional Muslim
construction as can be seen in the Iltutmish’s tomb (completed 1233-4).Mughal architecture flourished

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between 16th and 17th centuries during their reign. Mughal style was introduced with Humayun’s tomb
– large complex with garden divided into quadrants (Charbagh) and Mausoleum in the middle. Use of
floral designs at this tomb reflects the Persian influence. Mughals also used Jain and Hindu style in later
constructions like cubical/square halls etc. Akbar’s reign can be taken as the formative period of Mughal
architecture. It represents the finest example of the fusion of Indo-Islamic architecture. Red Fort in Delhi
and Taj Mahal in Agra are the best example of Mughal architecture.
European architectural history is generally understood to have started with the British rule. However,
Baroque influences of Portuguese or influences of construction style of Roman, Greek, French and
Danish are visible as per the historical relation of these communities with specific parts of India. These
include for example, Portuguese in Goa, French in Pondicherry, Danish in Churchura (West Bengal) etc.
Modern Gothic style architecture, which came with the British, has influenced lot of later constructions.
British introduced colonial style of Europe in India and this impact (known as Indo-Sarcenic style) can
be seen in the structures constructed during the second half of the 19th century.
Truly speaking India is the best place to enjoy the architectural heritage of different ages and dynasties.
CHECK YOUR PROGRESS 2
1. State whether the following statements are true or otherwise:
(a) Dilwara temples in Rajasthan are the oldest Indian temples.
(b) Lothal in Gujarat is almost as old as Mohanjodaro and Harappa.
(c) An important feature of Islamic architecture is the Arch.
(d) Sanchi Stupa is an example of Jain style of architecture.
(e) The European influence on architecture in India began with the British Empire.
(f) Humayun’s tomb in Delhi is an example of Mughal architecture.
(g) Qutab Minar and Iltutmish’s tomb are examples of Islamic style of architecture.
2. Arrange the following according to the period in which these were built starting with the earliest:
Qutab Minar, Taj Mahal, Cave Temples, Parliament House,Humayun’s tomb, Iltutmish’s tomb and
Sanchi Stupa.

18.3.2 ARTS AND CRAFTS

The ancient temples, stupas, viharas and other monuments mentioned above are a reservoir of a wealth
of sculptures in stone and bronze.Khajurao, Konarak, Ellora, Elephanta and Mahaballipuram are some
of the excellent examples of India’s sculptural heritage. India has a rich tradition of paintings too, from
the 2000 year old Ajanta frescoes to the Mughal, Rajput and Kangra valley miniature. In this section we
are going to learn about two other forms of Art: the Ritual Arts and the Performing Arts. The section also
tells us about the Handicrafts of India.
THE RITUAL ARTS
The ritual art in India is carried on mostly within the confines of home and generally it is an essential
part of the celebrations in the family. The ritual art is mostly practiced by women of the household and is
a tradition handed down from mother to daughter in succeeding generations. It mostly takes the form of
drawings on the floor or on the walls of the house. These drawings are sometimes a daily ritual (such as
the Kolam of South India) while others are made only on religious festive occasions.
The drawings are without image, figure or narrative. These purely abstract drawings are known under
different names in the different parts of the country: mandna in Rajasthan, rangoli in Gujarat and
Maharashtra, alpana in Bengal etc. The material used is mostly coloured powder of different shades but
sometimes flower petals are also used.
Unlike the traditional floor drawings, the drawings made on the walls of the houses have figurative
character. They are colorful and use mythical elements and powerful symbols. The Madhubani painting
of Bihar is a fine example of this kind of figurative ritual art.

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PERFORMING ARTS
There has been a close connection between religion and the performing arts in India. India has a rich
heritage of many performing art forms, a tradition spanning several centuries. The performing arts such
as dance,music and theatre are not mere spectacles; they arouse a lot of emotion and feeling in the
audience. They provide an experience in which the audience begins to feel a kind of union with the
performer/s. Let us look at some of the performing art forms.
Dance
In India dance as a performing art has an age old tradition. The classical dances of different regions of
India revolve around a few fundamental principles such as the facial expressions, verbal expression and
gestures involving hands and fingers. Each of these dances has its own colorful and elaborate costumes
and jewellery. Some important dance forms are listed below:

Besides the above mentioned classical forms of dances, there is also a wide range of folk dances from
different regions of the country. An inventory of all folk dances may run into several pages so we
mention only the two popular ones here as examples: Bhangra from Punjab and Garba from Gujarat.

Music
Music in India has emanated from folk tunes and attained the status of a classical art. It is considered a
vehicle for communion with God and has been an essential ingredient of our culture. Music has been
part of Indian life from times immemorial. Later two distinct forms of musical styles developed in India.
The more codified and text based form is known as the Carnatic system of music. On the other hand is
the Hindustani system of music which is a loose and flexible musical form practiced mostly in the
northern parts of India? The classical music has gained a lot of popularity in recent times. In north India
it is being practiced under the guardianship of a few great performers claiming descent from traditional
houses called gharanas of music. Some of the famous vocalists are: Ms. M.S.Subbulakshmi (Carnatic),
Pandit Bhimsen Joshi (Hindustani), Smt.Gangubai Hangal (Hindustani) and Shubah Mudgal (Light
Classical).There is a range of folk music, musician and singers. Some of the popular forms of vocal
music include the Quwwali and Gazhal.
A variety of musical instruments are played by the music maestro in India.Some of the world famous
artists are: Pandit Ravi Shankar (Sitar), Ustad Bismillah Khan (Shehnai), Hari Prasad Chaurasia (Flute),
Ustad Zakir Hussain (Tabla) and Ustad Amzad Ali Khan (Sarod).

HANDICRAFTS
The diversity of Indian cultural tradition is aptly reflected in handicrafts which offer creative expressions
to the great mass of Indians. Indian handicrafts represent perhaps the oldest tradition of living culture.
The main mediums in which the crafts are practiced are stone, wood and metal.Almost all clusters of
villages have their own craftsmen. While Kashmiri shawls and carpets are world famous, chikankari of
Lucknow and Bandhej (tie-dye) of Rajasthan are equally well known in India. Andhra Pradesh is known
for its metal ware and stone craft while Kerala is famous for baskets, masks and woodcraft. Shawls from
Himachal, terracotta of West Bengal, scroll painting of Orissa, lac jewellery from Rajasthan,

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papermachie from Kashmir, Ivory items from Karnataka, Applique embroidery of Gujarat, puppets of
Tamil Nadu, silverware of Uttar Pradesh…. the list is endless.
CHECK YOUR PROGRESS 3
1. Name the two systems of Indian classical music.
2. Identify the region/s associated with the following dance forms:
(a) Kathakali
(b) Bharatnatyam
(c) Kuchipudi
(d) Katthak
3. Match the artists with the instruments played by them:
(a) Ustad Bismillah Khan (i) Sarod
(b) Ustad Zakir Hussain (ii) Shehnai
(c) Ustad Amjad Ali Khan (iii) Flute
(d) Pandit Ravi Shankar (iv) Tabla
(e) Hari Prasad Chaurasia (v) Sitar
4. List two famous handicrafts of Kashmir.

18.3.3 FESTIVALS OF INDIA

India is a land of many festivals. People of different religions and different regions have their own
important festivals. A tourist visiting a place gets a unique experience by witnessing a festival being
celebrated by the local community. It is said that in India you will find each day of the year being
celebrated as a festival in some part of the country or the other. However,some of the important festivals
celebrated by a large number of people are described in this section.
The year starts with Lohri in the North, Sankranti in the East and Pongal in South India. The three
festivals celebrate in different ways the harvesting of new crop.
Then comes the national festival Republic Day or Chabbis (26th) January which commemorates the day
Indian Constitution was adopted and India became a Sovereign Republic. The day is celebrated with a
magnificent and colorful parade by the three wings of Indian Armed Forces at Rajpath in Delhi. The
President of India is the guest of honor on this occasion and important dignitaries and state guests from
foreign countries grace the occasion with their presence. The parade is witnessed live by thousands of
people en route while millions of Indians watch it on television. The day is celebrated in all state capitals
too, albeit on a smaller scale. In the national capital, all state buildings are illuminated from January 26
to January 29.
The closing ceremony of Republic Day celebrations known as the Beating Retreat is another colorful
event. Bands of various wings of the three armed forces play patriotic tunes and march in colorful
uniforms in front of the Rashtrapati Bhawan (President’s House) in Lutyen’s Delhi in the evening. Rows
of beautifully decorated camels line up the way to the North Block and the South Block in the
background. Just as the sun sets,all buildings in the background get illuminated with festive lights. It is
truly a magical moment which is attended not only by the government dignitaries but also hundreds of
enthusiastic citizens.
Spring arrives in late February with number of festivals including the festival of spring known as the
Basant Panchami.The month of March brings the colorful festival of Holi which is celebrated with lot of
vigor in north India particularly the towns of Mathura and Vrindavan in Uttar Pradesh.
The Sikhs celebrate the birthdays of their saints as well as their martyrdom days. These are known as the
Guru Purabs. The most important of these is the Guru Purab celebrated to commemorate the birth of
Guru Nanak Dev Ji (believed to be the last Guru).Eid is the most important festivals of Muslims. The
festival is preceded by a month long period of fasting and prayers during Ramadan.
Mahavir Jayanti which is celebrated to commemorate the birth of Mahavir Jain (founder of Jainism) is
the most important festival of the Jains. Ganesh Chaturthi is celebrated with a lot of festivity and color
especially in Maharashtra.

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Shiv Ratri is celebrated by the Hindu followers of Shiva. It is believed that he married Parvati (who did
penance for a long time in order to have Shiva as her husband) on this day.
Janam Aashtmi is celebrated by Hindus to commemorate the birth of Lord Krishna. In north India
temples are specially decorated with sculptures, paintings and pictures depicting the birth and life of
Krishna. These are visited by millions of enthusiastic devotees (many of whom keep a fast on this day)
at midnight.Dussehra is one of the most celebrated festivals of India. For ten days preceding Dussehra,
the life of Lord Rama .It is called Ramlila. Dussehra symbolizes the victory of good over and evil and
on this day huge effigies of the evil king Ravana and his brother Kumbhkaran and son Meghnath are
burnt at various sites. Lacs of people come out of their houses to witness the spectacle.
The nine days preceding Dussehra are known as the Navratri or the nine holy nights. Bengalis celebrate
these days in a big way worshipping Goddess Durga. Other worshippers of Maa (mother) Durga also
organize night long community prayers (Jagrans) during this period.
Karva Chauth is celebrated by Hindu married women in north India by keeping a fast through the day
and prayers in the evening in the desire of a long life for their husbands. Similar festivals are celebrated
in various parts of the country at different times of the year and are known by different names.
Diwali is the most celebrated festival of India. It is known as the festival of light because on this day
people decorate their houses with fancy lights and candles and diyas (earthen lamp). Sweets and gifts are
exchanged with family and friends. At night Puja (worship) of Goddess Lakshmi (goddess of wealth)
and Lord Ganesh is performed.
Christmas is the most important of festivals celebrated by Christians. They attend Mass prayer meetings
on the night of December 24th known as the Christmas Eve. The next day is celebrated as the Christmas
Day, the day when Lord Jesus was born to mother Mary.
CHECK YOUR PROGRESS 4
1. Name the most important festival of Hindus, Muslims, Christians, Sikhs and Jains.
Activity
Describe a festival celebrated by your community, which is not included in the list above.

18.3.4 SHOPPING BARGAINS

India’s bazaars are a delight, providing a feast of color, objects and bargains. The country is a fabulous
storehouse of traditional skills and crafts that find expression in objects of great beauty and charm. There
are many goods from which to choose – bangles, brassware, leather shoes,jackets, handbags, toys,
paintings and figurines of perfumed sandalwood or rosewood.
Almost everything can be made to order, whether it is a silk shirt or a winter suit, a diamond ring or a
carpet. The artist and the artisan here are not separated by great distance. In the market place, a tourist
can see people beating metal, making jewellery of intricate design, weaving tapestries in wool or silk,
and carving a great variety of substances.
India’s silks have been famous since Roman times – the silks of Varanasi,Kanchipuram (home of the
‘Kanjeevaram Sari’, synonymous with the best in Indian silk sarees), Mysore or Murshidabaad. A five
and a half meter long sari can be fashioned into a beautiful evening dress in one day if the tourist so
desires.
Most goods are handcrafted out of material like metal, stone, wood, marble, silk or leather. Carpets in
India are woven even today as they were for royalty in a bygone era. Marble is inlaid with semi-precious
stones as it was for the Taj Mahal. Rubies, emeralds, pearls and diamonds are encrusted in hand-
fashioned gold jewellery as if for a queen. Tourists should be advised to buy regional handicrafts from
the state-run stores or emporia, where prices are reasonable and fixed.
18.3.5 CULINARY TRADITIONS
Food is one of the important attractions of India. Again variety is the name of the game. Every region of
India can boast of a score of traditional culinary styles. It ranges from the royal Mughal feast of North
India to the vegetarian (as well as non vegetarian) thali meals of the South. Some of the specialties of
Mughal style cooking include kababs made from chicken, mutton or vegetables mixed with flour,

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marinated in a subtle blend of spices and grilled over glowing charcoal. Tender chicken cooked in a
thick paste of tomatoes and cream known as Murgh makhani or Butter Chicken is an all time favourite
in North India particularly Punjab and is eaten with Naan or Tandoori Roti (soft bread baked fresh in
oven).Cooking Biryani, a fragrant dish made of rice and meat, chicken or vegetables has been elevated
to the rank of an art form by discerning food lovers. Large towns and big cities also have restaurants that
serve authentic Italian, Chinese, Mexican, Thai and American food as well as franchisees of
international fast food and other restaurants such as McDonald’s, Domino’s and Pizza Hut.India is a
heaven for people who love vegetarian food. Vegetarian cooking in India is superb and has a variety that
is difficult for a Westerner to imagine. To sample regional food, it is better to order a thali which
generally consists of a large plate or coconut leaf heaped with rice and bordered with little bowls
consisting of delicious preparations of cheese, lentils, vegetable/non vegetable curries, curd, chutneys
and pickles served with hot rotis or pooris. It is best to eat this food with fingers.Then there are a variety
of snacks and sweets. From the delicious pakoras, Kachoris, chaat paapri and golgappas (also known as
paani puri) of the north to the Dosa, Vada and Uttapam of the south, the list of anytime snacks is endless.
The famous Indian sweets include burfi, rasgulla ,gulabjamun, jalebis, ladoos, soan papri etc. The array
of delicious food available in India can perk up the most jaded appetite.The Indian cold drinks include
nimbu pani (fresh lime juice) and lassi. Tea in the north and coffee in the south are the most favoured
beverages.
Activity
1. Make an attempt to describe in English the words given in italics in the above paragraphs. For
example: Masala Dosa – a pancake made of rice flour and filled with spicy mashed potatoes.
2. Talk to your friends and find out more about the food from their region and also about how it is
cooked.
18.4 A WORD OF CAUTION
The previous sections explained the rich reservoir of tourism products that India as a destination offers
but we must not forget that a foreign tourist coming to India without much knowledge about this country
may find certain sights or experiences shocking and even appalling. For example,the sight of garbage
heaps, people urinating at public places, stray cattle on the streets and young children begging at the
traffic signals will shock a visitor coming from a developed country. Therefore, it is the tasks of a good
tour operator to not only tell the client about what good things to expect but also prepare him for
expected negatives. It is common knowledge that foreign tourists are harassed and duped by profit-
seeking and unscrupulous traders, taxiwallas, unlicensed guides and even tour operators. The Tourism
Department of Government of India is trying to educate citizens to help save tourists from such elements
but one must warn the visitor to be careful about such happenings. The idea is not to scare the tourist
before he even comes here but to provide him with realistic expectations. It is said that if a tourist has
five good experiences but one bad one, he may never come back. Whether an experience is rated as
great, good, average or disappointing depends among other things on what the expectations of a person
were. Therefore, while it is all right to praise the excellent tourism products to foreign tourists in order to
market tourist destinations of India, one must be cautious not to build unrealistically high expectations.
18.6 ANSWERS TO REVIEW QUESTIONS
Check Your Progress 1
1. Manali, Shimla, Kullu, Nainital etc.
2. It brings dark clouds, rains, dancing peacocks, singing birds
3. It is the season of beautiful flowers and pleasant weather
4. Going for theatre, skiing in hills, swimming in tropical beaches
Check Your Progress 2
1. True statements are: (b) (c) (f) (g)
2. Cave Temples, Sanchi Stupa, Qutab Minar, Iltutmish’s Tomb,Humayun;s Tomb, Tajmahal, Parliament
House
Check Your Progress 3

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1. Carnatic and Hindustani
2. (a) Kerala
(b) Tamil Nadu
(c) Andhra Pradesh
(d) Uttar Pradesh and Rajasthan
3. (a) (ii), (b) (iv), (c) (i), (d) (v), (e) (iii)
4. Carpets, Shawls, Paper-machie
Check Your Progress 4
1. Diwali, Id, Christmas, Guru Purab, Mahavir Jayanti
18.7 KEY WORDS
Tourism Experience, Geographical Diversity, Architectural Style, Ritual Arts, Performing Arts, Gharanas
of classical music styles, Handicrafts,Festivals, Appalling sights.

LESSON – 19
PLACES OF TOURIST INTEREST IN INDIA
19.2 DELHI AND NORTH INDIA
Delhi, the capital of India for the last 800 years, is strategically located on banks of river Yamuna and is
gateway to most tourist destinations in North India. It has excellent connectivity to the rich Himalayan
destinations of Himachal Pradesh, Jammu and Kashmir, and Uttranchal.
Culturally and religiously rich plains of river Ganges and many other ancient heritage monuments are
also located near it.Delhi is a true metropolis with vibrant mix of cultures and lifestyles of Hindus,
Muslims and British. Delhi has imbibed culture from continuous settlement since legendary times. Once
the capital of Pandava Kings
more than 1000 years before Christ, the city is believed to have been built seven times over. Each new
city was built not on top of the old but next to it, along the banks of Yamuna. Ruins of seven of these
historic capitals remain till date in the form of ramparts and forts, palaces and shrines, towers and
domes.
Old Delhi
The older part of the city is known as the walled city since the city earlier was confined within the stone
walls of Shahjehanabad built by the Mughal Emperor Shahjejahan in the 17th century. Life here is still
reminiscent of Mughal times. Old Delhi is a maze of lanes, alleys, and bazaars dominated by the
magnificent sandstone ramparts of the Red Fort. Jama Masjid, India’s largest mosque is also located
here. One can still walk through the ancient Chandni Chowk, buying silver jewellery,gold embroidered
silks and tiny bottles of oriental perfumes, etc.
New Delhi
The British laid the foundations of New Delhi to glorify the Empire. The imperial complex that was the
head-quarters of the British Raj in Asia was built by Sir Edwin Lutyens. It includes an imposing circular
Parliament, the President’s House, North and South block in perfect symmetry and Rajpath leading to
India Gate. It still preserves the same magnificent look and is now the capital of the Republic of India.
The Golden Triangle
New Delhi is the starting point of the most popular tourist triangle,Delhi-Agra-Jaipur. Agra is home to
the most revered Taj Mahal and Jaipur, also referred to as Pink city, and is the capital of state of
Rajasthan. Both are linked to Delhi by road, rail and air.Agra, the ancient city, has its earliest reference
found in Sanskrit in the famous Hindu epic Mahabharata. The Mughal Dynasty in the 16th and 17th
centuries made the city its capital and constructed Taj Mahal and Agra Fort which are now the glory of
Agra and India.
Fatehpur Sikri, the ghost city built in 1569 by the great Mughal Emperor Akbar is situated 37 kilometers
south west of Agra. Fashioned entirely in red sandstone, this city was abandoned for lack of water soon
after it was settled. Fatehpur Sikri casts a spell on visitors and transports them to another time.

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Jaipur is very popular especially with international tourists. It is a beautifully planned 18th century city
built of rose-pink sandstone and is also referred to as the Pink City. Tourists are drawn to its colorful
buildings, shopping experience and the palaces and forts around it.
Before Independence, the present State of Rajasthan was divided into several small principalities, each
ruled by a Maharajah. The rulers have left their impact on all the states in the form of monuments,
palaces and religious shrines. Udaipur, a 14th century city, is known for its 200-year-old marble palace
seemingly floating in the- midst of the cool placid Lake Pichola. This palace is now the glamorous Lake
Palace Hotel.
Other notable tourist cities of Rajasthan are Bikaner, Jodhpur, Jaisalmer and Ajmer.
Other Places of tourist interest around Delhi
India’s two holy rivers, the Ganga and the Yamuna, flow through the northern region of India. Along
their banks lie some of the holiest cities of the Hindus: Rishikesh, Haridwar and Varanasi on the Ganga;
Mathura on the Yamuna, and Allahabad (ancient Prayag) where the Yamuna merges in Ganga.
North -west of Delhi are the States of Punjab and Haryana, the granary of India. The holy city of the
Sikhs- Amritsar is located on the Indo-Pakistan. border in Punjab. It is famous for its Gurudwara (Sikh
shrine) known as the Golden Temple. Chandigarh, the first planned city of independent India, is the
capital of the Haryana and Punjab states.
Less than two hours by air from Delhi is Srinagar, the capital of the picturesque state of Jammu and
Kashmir.
Due to its scenic beauty,Kashmir in the Himalayas is also called Asia's Switzerland. Some of the largest
and most beaut i ful fresh water lakes are found here.
Houseboats on the Dal lake in Srinagar offer tourists a glimpse of a unique lifestyle. Shikaras, graceful
boats, provide their only link with the rest of the world. Visitors can ski, run, hike, fish or golf amid
snow-clad peaks, pine forest and pastures in Kashmir. They can also shop in colorful highland markets.
The lush valley of Kashmir is divided to a popular new destination in Ladakh by Zoji-La, a 3,500 meter
high mountain pass. The small town of Leh, capital of the region, makes a convenient base for visits to
the famous gumphas (Buddhist monasteries) in the region. Leh is connected by air to Srinagar,
Chandigarh and New Delhi. It takes two days to travel by road from Srinagar to Leh, but the journey is
worth the time spent, for the beauty of the hills en route is matchless.
One-hour by flight from Delhi, is Khajuraho in Madhya Pradesh. The mighty Chandala kings raised 85
temples here to venerate their gods.This temple complex, built more than 10 centuries ago, was hidden
from the-World until it was discovered accidentally in the early 20th century. Today, 22 temples remain.
These temples house the most classic Indian sculptures—some erotic, some mystical, which depict
man's desire for union with the divine.
CHECK YOUR PROGRESS 1
1. Name two famous cities of Rajasthan.
2. Where is the floating palace located?
3. Name two buildings built during the British Raj by Sir Edwin Lutyens.
4. Which are the cities included in the golden triangle?
5. Where is the Golden Temple located?
6. Name the holy cities situated on the banks of Ganges.
7. Why is Leh famous?
8. Where are the ancient temples of Khajurao located?
19.3 MUMBAI AND WEST INDIA
Mumbai (the new name for Bombay) is known as India's commercial capital. In the shadow of newly
built concrete-and-glass high-rises,Victorian, Gothic and Indo-Saracenic monuments stand in this
cosmopolitan city. Sophisticated modern hotels, ancient temples,art galleries and beaches all vie for a
visitor's attention. Double decker buses ply alongside horse drawn Victorias.Elephanta Island that houses
the superbly carved 1,300 years-old cave temples can be visited by taking a half-hour ferry ride across
the sea is a favourite picnic spot.

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The temples of Ellora and Ajanta which rank among the great wonders of ancient art can be visited from
Mumbai. The famous two millennia old complex of Ajanta which has 20 cave temples is an hour's flight
from Mumbai. Ajanta provides a visual history of the culture of those times through its sculptures and
frescoes. Fifty kilometres further on is the Ellora complex of 34 temples built between AD 300 and AD
1300.India’s most popular beach resort, Goa is situated south of Mumbai (see lesson 20 for a detailed
account of this popular destination). One can take a flight to Panaji, the capital of Goa or travel by a
luxury cruise from Mumbai.The State of Gujarat which has many ancient ports, including the site of
Lothal, the 4000-year-old sea port of the Harappan civilization, is situated north of Mumbai. Ahmedabad
the main city of Gujarat has some of the best examples of the blend of Hindu and Muslim architecture in
India. One of the buildings has shaking minarets at its four corners. Shake one and you shake them all.
To this date, architects have not been able to find out as to how this happens. Ahmedabad is well known
for its ashram (retreat) on the banks of the Sabarmati river, where Mahatma Gandhi spent many years.
Mumbai is also a convenient point of entry for tourist attractions in Central India. Around third century
BC Emperor Ashoka built a complex of shrines on the site of a Buddhist monastery at Sanchi. Its four
exquisite gateways carved with mythological figures arc considered unique. West of this centre of
Buddhist art, on a plateau at the edge of the Vindhya Range, is Mandu, the medieval capital of the
Afghan Kings. Mandu was once called the City of Joy. Only the ruins of a royal citadel with pleasure
palaces,mosques and lakeside pavilions remain.
CHECK YOUR PROGRESS 2
1. Which ancient cave temples can be visited by ferry boat from Mumbai?
2. List some of the places of tourist interest in Gujarat.
3. Which city in Central India was once called the City of Joy?

19.4 CHENNAI AND SOUTH INDIA

The gateway to the four tropical states of southern India - Tamil Nadu,Andhra Pradesh, Karnataka and
Kerala is the city of Madras, now called Chennai. A stronghold of ancient cultural traditions, Chennai is
one of India's largest cities. Chennai waterfront on the Bay of Bengal is one of the longest beaches in the
world. Nearby are crowded bazaars where dazzling silks are sold. .
Only 60 kilometres from Chennai is Mahabalipuram, the seventh–century seaport of the Pallava kings.
Its stunning Shore Temple standing on a quiet stretch of the coast appears to be rising out of the
turbulent sea. There used to be several such temples, but in the course of time they have been washed
away.
Temple cities dot the southern landscape. Madurai, south of Chennai, has one of the most magnificent
temples in India dedicated to Goddess Meenakshi. It has a hall of thousand pillars (997 actually) and
many fantastic sculptures.
Kanchipuram is one of India’s seven holy cities and is known as the city of the Thousand Temples.
Among other great temple cities in Tamil Nadu are Chidambaram, Tiruchirapalli and Thanjavur.
Bangalore, the capital of Karnataka state, is a city of gardens and a centre of industry and commerce. It
is one of India’s most cosmopolitan cities and has a temperate climate. Mysore, a tourist city, famous for
its palaces is only 150 kms. away. The nearby Brindavan Gardens provide one of the most beautiful
sights in the world. A days excursion to the stone temples at Belur and Halebid provide the opportunity
to witness some of the finest examples of ancient temple art and architecture.
The state of Kerala on the Malabar Coast lives up to the most romantic notions of a tropical country. It is
a land of paddy fields, coconut groves,shady lagoons, and silk-smooth beaches and clear skies. Tourism
department of the state has rightly come up with the slogan ‘Kerala –God’s own country’. Kovalam, a
magnificent beach resort of Kerala attracts a large number of foreign tourists every year.The southern tip
of the Indian peninsula is Cape Comorin or Kanyakumari. You can see the three seas i.e. The Arabian
Sea, the Bay of Bengal and the Indian Ocean, meet here. On an island nearby is the Ashram dedicated to
the memory of the great Indian saint-philosopher,Swami Vivekananda.
CHECK YOUR PROGRESS 3

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Match the Following
(a) Madurai (i) Vivekananda Ashram
(b) Mahabalipuram (ii) City of thousand temples
(c) Cape Comorin (iii) Meenakshi Temple
(d) Mysore (iv) city of gardens
(e) Kanchipuram (v) Shore Temple
(f) Bangalore (vi) Famous Beach resort of Kerala
(g) Belur and Halebid (vii) Brindavan Gardens
(h) Kerala (viii) Temple art and architecture
(i) Kovalam (ix) Romantic tropical country

19.5 KOLKATA AND EAST INDIA

Kolkata (earlier known as Calcutta) is the hometown of the great artists such as noble laureate
Rabindranath Tagore and filmmaker Satyajit Ray. It is rightly called the cultural capital of India. A
European industrial metropolis built upon the body of a rural Asia, Kolkata is India’s second largest city.
The giant city has grown around the trading post for the East India Company built on the banks of the
Hoogly of Kalikata in 1690 by Job Charnock, an Englishman. At the time of the British Raj, Calcutta
was India's capital and was at its glorious best. In independent India,however, industrial pollution and
overcrowding have robbed the city of its past glory.
Calcutta is Victorian in appearance but passionately Bengali at heart. The modern high-rise buildings at
Dalhousie Square, and the fashionable shops and restaurants at sparkling Chowringhee, give the visitor
an impression of being in Europe. Yet old parts in the north of the city like the Hindu Kali temple at
Kalighat and the crowded streets of Shambazar leave no doubt that one is in India.
University of Shantiniketan, started by Rabindranath Tagore is located in the north-west of Kolkata. The
picturesque town of Darjeeling, known for its tea gardens and pinewood forests is further north of
Calcutta.
Though Darjeeling can be reached by road from Bagdogra Airport, it is much more fun to take the
miniature train. The train driven by a baby locomotive goes up to an elevation of 7,400 feet, passing
steep slopes amongst dense jungles and tea planted terraces. Enroute one can view the third highest peak
of the Himalayas, Kanchanjunga. Even Mount Everest, the highest peak of Himalayas is visible from the
Tiger Hill at dawn.A tourist may plan to visit other Himalayan plains and hill stations from Darjeeling
lying in the state of Sikkim and the neighboring countries of Nepal and Bhutan.
The eastern state of Assam is full of forests, rivers and hills. The wildlife sanctuaries of Kaziranga and
Manas in this state are famous tourist attraction for those interested in nature and wildlife.The
magnificent Sun Temple at Konark in Bhubaneshwar, the capital of the coastal state of Orissa, is one of
the greatest marvels of the world.Bhubaneshwar is said to have 500 temples. Orissa is also known for its
beaches and beach resorts such as Puri, Konark and Gopalpur-on-Sea.Orissa, Bihar (the home of
Buddhism), Arunachal Pradesh, Assam,Mizoram, Meghalaya, Manipur and Tripura are the other
neighboring states that can be visited from Calcutta. The great Mahabodhi temple built on the bank of
the Niranjana River at Bodh Gaya in Bihar reminds us that Lord Buddha achieved enlightenment here
2,500 years ago. It houses a huge golden Image of the seated Buddha. Lumbini, the birth place of Lord
Buddha, is a few kilometres away in Nepal.
CHECK YOUR PROGRESS 4
1. Where in Kolkata do you get the impression of being in Europe?
2. Where is the University of Shantiniketan located and who was its founder?
3. What is the best way to go to Darjeeling?
4. Name the Himalayan peaks that can be seen from Darjeeling.
5. Where did Lord Buddha achieve enlightenment?
6. Where is the famous Sun Temple located?
7. Name two beach resorts of Orissa and two wildlife sanctuaries of Assam.

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19.7 ANSWERS TO REVIEW QUESTIONS
Check Your Progress 1
1. Jaipur, Bikaner, Udaipur, Jaisalmer
2. Lake Pachola in Udaipur
3. Parliament House, North Block, South Block
4. Delhi, Agra, Jaipur
5. Amritsar in Punjab
6. Haridwar, Rishikesh and Varanasi
7. For its scenic beauty and also because it is a convenient base for visiting the famous Buddhist
monasteries in the region.
8. Madhya Pradesh
Check Your Progress 2
1. Elephanta Caves
2. Lothal, Ahmedabad city, shaking minarets, Sabarmati Ashram
3. Mandu
Check Your Progress 3
1. (a) (iii), (b) (v), (c) (i), (d) (vii), (e) (ii), (f) (iv), (g) (viii),
(h) (ix), (i) (vi)
Check Your progress 4
1. Dalhousie Square
2. North West of Kolkata, Rabindranath Tagore
3. Miniature Train
4. Kanchenjunga, Mount Everest
5. Bodh Gaya in Bihar
6. Konark in Orissa
7. Puri and Gopalpur-on-Sea, Kaziranga and Manas
19.8 KEYWORDS
Places of tourist interest, Old Delhi, New Delhi, Golden Triangle,Around Delhi, Mumbai, Elephanta,
Ajanta, Ellora, Chennai, Kolkata,Shanti Niketan.

LESSON 20
TOURISM EXPERIENCE IN INDIA: A SPECIAL REFERENCE TO GOA
India is the seventh largest country in the world in area but with over 100 billion people it is the second
largest population. India is a secular state and seat of many religions: Hinduism, Sikhism, Islam,
Christianity, Buddhism and Jainism. In such a large country, which is physically diverse, it is not
surprising that there are considerable regional cultural variations. The country possesses a wealth of
landscape, wild life, beach and adventure tourism resources, but it is perhaps known for its cultural,
historic and architectural heritage. Indian tourisms sector that has been growing in leaps and bounds
draws tourists from both domestic and international markets. In this lesson we discuss why Goa is
projected as a model destination for the Indian tourism industry.
TOURISM IN GOA
Goa is projected as a model tourist destination of India, which offers a wide variety of tourism products,
from beach culture wild life and landscape, to adventure, and attracts millions of tourists from various
part of the world. Goa, a name that cajours up visions of sun bathing, feni and never ending beaches is
India’s only true resort state. Often compared to Rio de Janeiro, Goa’s carnivals, quaint Portuguese
villas, ancient Hindu temples, spectacular cathedrals, have been attracted millions of tourists with its 105
km long palm fringed coast line, beautiful beaches of golden sand, are only a part of attention. There are
500 year old churches, forts and temples to see all over the state, treks to go on, rivers to traverse, water
falls to climb to wild life sanctuaries to visit, spice plantation to wall through prisons and light houses to

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gaze up at, canals to sail up to take a peak at toothy crocs, white sands to rifle through where olive riley
turtles nest, quaint traditional villages to visit, where rope makers and weavers and potters take you back
in time… list is endless – Goa the smallest state of the Indian union. The name “Goa” seems to have
been derived from Govarakshetra one of the seven divisions of Parasurama Kshetra. The 25th state of
India has an area of just, 3702 sq Km and a population about more than 14 lakhs. After Vasco Da Gama
discovered the sea route to India in 1498,Portuguese expeditions to India followed. In 1501, Alfonso de
Albu- querque captured Goa. The Portuguese made the city of Panaji the capital of Goa in 1843. The
Portuguese colonies of Goa, Daman & Diu finally liberated in 19, December, 1961. With its unique
natural beauty and cultural diversity it has emerged as one of the best and most attractive destinations in
the world. Department of tourism, government of Goa and the Goa tourism development corporation
(GTDC) act as an apex bodies in tourism sector and both are complementary in promoting tourism in the
state of Goa.
INFRASTRUCTURE
In terms of development and infrastructure, Goa can probably be classified as semi rural, small town
India lots and lots of small towns and large villages with only four large towns and small cities Panaji –
Margao, Vasco and Ponda. Accessibility by road, rail and water draws millions of tourist from all over
the world. Road Network The road network in Goa is fairly well developed in the coastal plains
providing accessibility to the beaches and coastal sports. The main road network in Goa follows
primarily two corridors namely National Highway 17, which runs along a North- South direction
connecting Mumbai in the North and Mangalore in the south. National highway 4 A, which cuts through
Goa is an East-west direction connecting Panaji to Belgaum in Karnataka. State owned Kadamba
Transport Corporation, Maharashtra Road Transport Corporation and Karnataka State Road Transport
Corporation operate frequent services between Goa and various destinations within neighboring states.
Several private operators strengthen the road network.
Rail Network
Goa has developed excellent rail linkages with the rest of the country in recent times. The Konkan
Railway route has opened up the Mumbai Margao- Mangalore corridor and significantly reduced the
time of travel in this section. Margao is the most important railway station in Goa, followed by Vasco
though there are other smaller stations on the newly constructed Konkan railway route.
Air Transport
Goa has one airport at Babolin, 3 Km from the city of Vasco-Da-Gama and about 29 km, from Panaji.
Among international flights, Air India operates flights via Mumbai to Europe. The charter flights
bringing foreign tourists originate normally from England, Germany, Switzerland and Holland. The
Monarch Air lines, Air Holland, LTU Airways, and British Airways etc operate the frequent charter
services. All Indian domestic airlines fly into Goa- Indian Airlines, Jet Airways and Air Sahara hook up
with all most all-important cities. Goa actually has no civil airport, and the airport is run by the aviation
arm of the Navy, that is why there are no night flights. A proper civilian airport is being planned at
Mopa, which will become operate in near future.
Water Transport
The Goa has about 555 km of waterways of which, only 256 kms are navigable for large country and
mine ore barges. The major navigable rivers are the Mandovi, the Zuari, Chapora, Mapusa and Mal.
There are 22 inland water routes in the state besides a launch service along the sea from Dona Paula to
Murmugao. These routes do play a significant role in the movement of tourists. For the entertainment of
tourists, Goa Tourism Development Corporation (GTDC) and a couple of private operators organize
river cruises in the evenings along the river Mandovi.
Tourism products
Beaches: everybody who comes to Goa on vacation goes to a beach. With over looks of coastline Goa
serves up variety of beaches from long, peaceful stretches of white sand where all you hear wind
through the palm trees and the waves as they crash upon the shore. The beaches are packed with activity
– bars, nightclubs, para sailing, jet skiing etc. The Goa’s prime attraction to tourists is its 106 km long

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fringed coastline.All beaches have fine stretches of sand. There are total 28 beaches, 13 in North Goa
and 15 in South Goa.
Some of the important beaches are: -
North Goa Beaches
Calangute: - this beach is located about 16 kms North of Panaji. It is Goa’s most crowded beach with all
kinds of eating.
Vagator: - it is one of the most beautiful and interesting parts of Goa’s coastline. It comprises two sandy
bays. The Chapora fort dominates the northern portion of the beach. South Goa Beaches
Colva Beach: - Colva is the pride of South Goa and here, sea, sand and sky blend in enchanting, natural
harmony, weaving their magical spell on the visitors. Colva is a pleasant and convenient place to stay.
The sand is spotless and scattered with beautiful seashells. Palolem Beach: - Palolem is a 1.5 km falcate
shaped beach. It probably is Goa’s most beautiful and idyllic beach. It lies on the southern coastline of
Goa amidst outstanding natural beauty. More tourists have been making a beeline for this palm fringed
golden beach.
Temples and Churches
The temples of Goa are noted for their beauty and simple architecture surrounded by betel nut trees,
coconut groves and lakes of pure water. These temples speak volume of Goa’s ancient history. Some of
the important temples are: -
Shri Mangueshi Temple: - This temple is situated 9 km north of Ponda near the village of priol. Shri
Mangueshi temple is dedicated to lord Shiva, is one of the largest and frequently visited temples in Goa.
Built in 1567, it is a colorful mixture of Hindus, Muslim and Portuguese influences and has a distinctive
seven tiered lamp tourists in the courtyard.
Shri Shanta Durga Temple: - it is Goa’s largest and most famous temple. This temple crowned with a
huge do mined sanctuary tower was built in 1978.
Shri Mahalasa Narayani Temple: - Constructed in early 16th century dedicated to Lord Vishnu.
Chandeshwar Temple: - 400-year-old temple dedicated to the Lord of the Moon, is 15 km from Margao
on the road of Quepen.
The Churches
Goa, the jewel of India is studded with a number of churches and monuments. The important churches
of Goa are: -Basalica of Bom Jesus: - the church is one of the most famous churches in Goa. The mortal
remains of St. Francis, which were brought to Goa, still remain at Basalica of Bom Jesus in a silver
casket containing an airtight glass coffin. The church of Mae de Deus: – Built in 1873, at Saligao is
situated a midst picturesque surrounding. This beautiful church is the finest piece of Gothic style of
architecture.
Reis Magos Church: - The church situated Verem was constructed in 1555, one of the earliest churches
built in Goa and the first in Bardez taluka.
Forts and Monuments
Aguada: - The fortress of Aguada erected in 1612, encircles the entire peninsula at the south-western
eternity of Bardez taluka in north Goa situated 10 km of north of Panaji, the Aguada fort has the first
lighthouse of Asia. It was built in 1612 to protect old Goa by controlling the entry of intruders into the
river Mandovi.
Cabo de Rama: - Situated on the southern coast of Goa. This fort has been under the regime of various
rulers until Portuguese took it over from Raja of Sond in 1763.
Terekhol Fort: - Situated on the Terekhol River, this fort built in the 17th century lies on the northern tip
of Goa. Today the remains of the fort have been converted into a hotel – the Terekhol fort heritage.
Wild Life Sanctuaries
With increasing awareness about the environment and ecology, more and more people are turning to
nature for pleasure and entertainment, In Goa there are 4 wild life sanctuaries. Bagwan Mahvir Wild
Life Sanctuary: - Biggest sanctuaries in Goa, situated along eastern border of Goa and covers about 240
sq. km of thick forest clad slopes of Western Ghats and its valley.

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Salim Ali Bird Sanctuary: - This sanctuary is located at the western trip of the island of Chorao; along
river Mandovi near Paragi is habitat for migratory and local birds.
Bondla Wild Life Sanctuary: - Situated in Ponda, the forest sanctuary in Goa has a zoological park and
eco- tourism wing and gardens.
Cotigao Wild Life Sanctuary: - Situated in Canacona famous for birds.
Fairs and Festivals
Goa celebrates a number of fairs and festivals around temples and churches commemorating early
legends.
Carnivals: - Goa’s biggest festival spread across 3 days of color and fun at the arrival of spring. Most
carnivals usually start with colorful street parades; ornate floats marching hands and a huge variety of
dancers.
Shigmotsov: - It is the spring festival of color and dances celebrated on full moon day. The occasions are
marked by a procession of floats and Panaji, Mapusa, Vasco and Margao.
Shopping
A large and elaborate network of tourist stores opened for the sole purpose of relieving of your holiday
money. Shops inside hotels run are mostly by Rajastani and Kashmiris sell mainly jewellery, handicrafts
and carpets. The popular beaches and tourists spots are lined with shakes and make shifts Kiosks selling
everything from T-Shirt to shell ornaments. Most of the items are available at highly priced and
bargaining is the order of the day. Anjuna Wednesday market, Mapusa Friday market, Margao market
are the important market, one can make purchase wide range of items from designer cloth, food stuff, to
furniture.
NEW DIMENSIONS IN GOA TOURISM
The development of potential sites and infrastructure in the hinterland is the major option for directing
tourist’s traffic. The new products can be developed and offered by tourism are as follows: -
Eco- Tourism-This is very popular tourism product and is widely accepted forms of tourism. It is
related to the ecology and natural environment. This may include wild life observations trekking, bird
watching, study tour on botany and zoology.
Heritage Tourism-This form of tourism has gained immense popularity. Goa the seat of old popular
churches, temples and forts offer excellent opportunities for growth of heritage tourism activities.
Adventure Tourism-The Goa State offers excellent scope for adventure sports due to abundance of
availability of favorable natural conditions. Sports activities like scuba diving, Para sailing, yachting,
trekking and even sea surfing and many other similar activities can be explored.
Village Tourism-Village tourism is developed based on a model traditional Goan village to attract
tourism. This form of tourism may particularly enthusiastic foreign tourists who take lot of interest
ethnic life style, day-to-day activities, cultural events and food habits.

A TRIP TO GOA
Goan experience of unforgettable moments starts the moment you down your foot in the Goan golden
sand. Goa has a tourist’s season throughout the year, though the month from November to February is
considered to be the peak seasons of tourists. Goan primary attraction to the tourists is 106 km long
palm fringed coastlines. All beaches, unbroken for several kilometres have fine stretches of sand. All
beaches in north Goa are popular and crowded while the beaches of south Goa are cleaner. The tourists
are delighted with the churches and temples visited by them during their stay in Goa. The coast of the
Goa dates back to the 16th century and is excellent examples of Goan architecture. The Goan temples
with their domes and red tiled slopping roofs have distinct architectural style combines Hindu,
Portuguese tradition. The interiors of the temples are usually ornamented with carvings, paintings on
wood, chandeliers and lamps. With increasing awareness about the environment and more and more
people are turning to nature for pleasure and entertainment. The journeys to the wild life sanctuaries give
you an opportunity to see the flora and fauna in its natural settings. The Portuguese regime built series of
forts along the coast. These historical moments Chapora, Reis Magos, Caba de Rama definitely will take

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the tourists down the years of history. The Goa tourism development corporation (GTDC) and other
private tour operators play a major role in conducting sightseeing tours and organize river cruise in the
evening along the river Mandovi (Royal cruise and Emerald waters, the existing evening cruise, the
delightful dolphin cruise the breath taking back water crocodile cruise) from the Mondovi bridge in
Panaji to the estuary and back. Sail on historic Chinese junk, spotting some dolphins, fresh water
crocodile, and thick mangrove jungle around the canal is also great for bird watching. National bird
sanctuary at Choro island and sleepy Goan villages, the high- Tec water sports such as para sailing,
water scooters, wind surfing and other water sports are offered on the beaches and five
star resorts with proper equipments and the highest safety standards. Carting track of international
quality has opened in south Goa, the Savol Verem plantations famous for Goan organic method of
farming. The second highest waterfall in India – Dudhsagar waterfall all is new and exciting
experiences. Goa is a paradise for seafood and it is not all about fish curing and rice. Poaching, grilling
or baking their fish without drawing it in sauces and spices and including claims, squid, crabs, lobster
and prawns regularly in their meals. Portuguese influences spicy vindaloos, sorpotels, and recheados.
Balchaos, stalwarts of Goan catholic kitchens are basically beef and pork centric, redolent of toddy
based vinegar and worthy challenges for the chilliest season’s palates.
The Hindu cuisine is mostly vegetarian but when meat based, uses chicken and lamb features plenty of
coconut milk, tamarind and kokum for tang. To wash it all down there is sweet red Goan port wine, or
Casher Feni the Goa’s national drink. The tourism experience in Goa enriches with the excellent
accommodations provided by hotels of Goa. A holiday trip to Goa is really a thrilling experience, surely
which will remain in memory of the visitor for a long. (This lesson is based on the work of Raj Aparna
and Incredible India
CHECK YOUR PROGRESS
Activity 1-Which are the beaches you have visited in your life? Prepare a list of beaches of Goa.
Activity 2-Which are the important new tourism products offered by Goa?
Activity 3-A tourist approaches you and asks about the religious and historical places he can have a visit
in Goa. Which places will you suggest?
Activity 4-Match the following
A B
Salim Ali Bird Sanctuary priol
Colva Beach Bardez
Aguada fort Chorao
Reis Magos Church pride of South Goa
Shri Mangueshi Temple Verem

GLOSSARY
Eternity = without end Intruders = trespassers
Dumplings = A small savouring ball of dough boiled in water or in a stew.
Dough = A thick mixture of flour and liquid for baking into bread or pastry
Vindaloos =A very hot Indian curry fish made with meat.
REVIEW QUESTIONS
1. Why does Goa become an international tourist destination?
2. Describe briefly the new products that can be offered by Goa in future?
3 Write a short note on wild life.
4. Write a short note on the cuisine of Goa
5. Describe briefly about the beaches of Goa

LESSON-21
EMERGING DIMENSIONS IN TOURISM: INDIA SPECIFIC

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We have discussed in the previous units in detail, that tourism industry is one of the major segments of
the Indian economy. It is a major contributor to foreign exchange earnings provides employment to
millions directly and indirectly and acts as a vehicle for infrastructure development. Recognising the
importance of the tourism industry, the Government of India has taken many policy measures such as
Tourism Policy 1982, Tourism Plan of Action 1992 and Tourism Policy 1997. Through these policies,
the government called for effective coordination of public and private participation to achieve synergy in
the development of tourism. These plans identified new forms of tourism products for taking advantage
of the emerging markets. Business tourism, health tourism, rural tourism, pilgrim tourism, adventure
tourism, and sustainable tourism are some of the new products devised for changing demand. Let us
study these emerging dimensions in the tourism sector.
EMERGING DIMENSIONS
Tourism will expand greatly in future mainly due to the revolution that is taking place on both the
demand and supply side. The changing population structure, improvement in living standard, more
disposable income, fewer working hours and long leisure time, better educated people, ageing
population and more curious youth in developing the countries, all will fuel the tourism industry growth.
The arrival of a large number of customers, better educated and more sophisticated, will compel the
tourist industry to launch new products and brands and re-invents traditional markets. The established
traditional destinations founded on sun-sea-sand products will have to re-engineer their products. They
must diversify and improve the criteria for destinations and qualities of their traditional offers. Alongside
beach tourism, the tourism sector will register a steady development of new products based on natural
rural business, leisure and art and culture. Thus the study of new markets and emerging markets and
necessity of diversified products are the basis of our strategy, which can enhance and sustain, existing
and capture new markets. Let us discuss some of the new tourism products.
HEALTH TOURISM
India is promoting the high-tech healing provided by its private health care sector as a tourist attraction.
This budding trade in medical tourism, selling foreigners the idea of travelling to India for world-class
medical treatment at lowest cost, has really got attention in the overseas market. The Indian system of
medicine, which incorporates ayurveda, yoga, sidha, unani, naturopathy and other traditional healing
treatments, is very unique and exotic. This medical expertise coupled with allopathic and other
modern methods become our new focus segment to project India as a Global Healing Destination. If we
believe the report published by McKenzie Consultants and Confederation of Indian Industries (CII), the
response is quite positive and it could be generating revenue approximately Rs.100b by the year 2012.
Our medical tourism provides low cost treatment. Perhaps you will wonder that the cost of same
treatment in the US is ten times more than that in India. Many state governments like Kerala, Andhra
Pradesh, Uttranchal, and Karnataka have been showcasing their medical tourism segment in certain
focused market like the Gulf and African regions. (Gaur Kanchilal) Indian private sector hospitals have
undertaken massive investment in the area of health. These super-specialty hospitals employ efficient
and expert doctors and other paramedical staffs with modern facilities. The experienced doctors,
dedicated service minded experts have made available their services for giving alternative system of
medicines and treatments. Health camps, lecture training classes are also arranged for general
awareness. Yogasana has become popular and widespread and many public and private and other
organisations conduct Yoga classes. Ayurveda, naturopathy and nature treatments are popular around the
world. Total Health: A New Mantra Ayurveda India has a rich heritage in the areas of traditional and
natural medicines. The earliest mention of Indian medical practices can be found in the Vedas and
Samhitas of Charaka, Bhela and Shusruta. A systematic and scientific approach was adopted by the
sages of the time leading to the development of a system that is relevant even today. India is the land of
Ayurveda. It believes in removing the cause of illness and not just curing the disease itself. It is based on
herbals and herbal components without having side effects. Ayurveda considers that the base of life lies
in the five primary elements; ether (space), air, fire, water and earth. And the individual is made up of a

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unique proportion of the five elements in unique combinations to form three doshas (vata, pita and
kapha). When any of these doshas become accute, a person falls ill. Ayurveda recommends a special life
style and nutritional guidelines supplemented with herbal medicines. If toxins are abundant, then
a cleaning process known as Panchkarma is recommended to eliminate those unwanted toxins and
revitalize both mind and body. Ayurveda offers treatments for ailments such as arthritis, paralysis,
obesity, sinusitis, migraine, premature aging and general health care. Kerala is a world tourist destination
and part of the reasons lies with the well- known stress-releasing therapies of famed Ayurvedic research
centers. The climate along with the blessing of nature has turned Kerala into the
ideal place for ayurvedic, curative and rejuvenating treatments. Yoga If Ayurveda is the science of body,
yoga is the science of the mind. Practiced together they can go a long way in making an individual fit.
The word yoga means to join together. The ultimate aim of yoga is to unite the human soul with the
universal spirit. Yoga was developed 5000 years ago and the base of yoga is described in theYoga Sutra
of Patanjali. This describes eight stages of yoga. These are Yam (universal moral commands), Niyam
(self purification), Asana (posture), Pranayama (breathing control), Prathyahara (withdrawal of mind
from external objects), Dharana (concentration), Dhyana (meditation), and Samadhi (state of
superconsciousness). To get the benefits of yoga, one has to practice Asana, Pranayama and Yoganidra.
With the regular practice of asanas one can control cholesterol level, reduce weight, normalize blood
pressure and improve cardiac performance. Pranayama helps to release tensions, develop relaxed state of
mind and Yoganidra is a form of meditation that relaxes both physiological and psychological systems.
Today, yoga has become popular in India and abroad and in a number of places including urban and
rural areas yoga is taught and practiced. Spas Most of the other parts of the world have their own
therapies and treatment that are no doubt effective in restoring wellness and beauty. New kinds of
health tours that are gaining popularity in India are spa tours. Spas offer the unique advantages of taking
the best from the west and the east combining them with the indigenous system and offering best of the
two worlds. In hydropathy, Swedish massages work with the Javanese Mandy, lulur, aromatherapy,
reflexology and traditional ayurveda procedures to help keep the tourist healthy and enhance beauty.
Combining these therapies with meditation, yoga and pranayama make the spa experience in India a new
destination for medical tourism. The spas are very useful for controlling blood pressure, insomnia, cure
tension, depression, paralysis and number of other deadly diseases. Ananda Resort in Rishikesh,
Angsana Resort, Golden Palm Spa and Ayurgram in Bangalore offer ayurveda, naturopathy, yoga
and meditation packages. (Gaur Kanchilal) Allopathy India has made rapid strides in advanced health
care systems, which provides world-class allopathic treatment. This has become possible because of the
emergence of the private sector in a big way in this field. More and more foreign tourists are realizing
that India is an ideal place for stopover treatment. Indian Multi-specialty hospitals are providing
worldclass treatment at an amazingly economical cost as compared to the west. Quality services and low
price factor primarily go in favour of India. The cardio care, bone marrow transplantation, dialysis,
kidney transplant, neuron–surgery, joint replacement surgery, urology, osteoporosis and
numerous diseases are treated at Indian hospitals with full professional expertise. Apollo hospital group,
Escorts in Delhi, Jason Hospital, Global Hospital, and Max Health Care are catering to medical care for
international patients in the areas of diagnostic, disease management, preventive health
care and incisive surgeries. The tourism department has devised websites in order to provide
information. Many Ayurveda health resorts that are owned and rum by traditional Ayurveda Institutes
have come up. Ayurgram is a novel concept that not only offers heritage accommodation but also offers
a whole range of Ayurvedic treatments and rejuvenating packages. Similarly hotels have also
included these types of packages in their holidays. Some of the tour operators have worked out all-
inclusive medical treatment package that include treatment, accommodation, food, airport transfers, post
operation recuperative holidays, along with a host of other facilities. This in fact shows our product
offers true value for money for service. Many world-class state-of-the-art furnishing and equipment are
being added to our Ayurveda Resorts to welcome international guests. Along with these hospitals there

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are many centers which offer not just physical but emotional and spiritual healing to patients. With all
these India is going to be one of the leading medical health care destinations in the near future.
CHECK YOUR PROGRESS
Activity 1
India had developed indigenous methods over centuries for curing diseases.
Ask your elders how they used to get rid of health problems in those days.
Activity 2
What are the important indigenous methods of curing diseases?
Activity 3
Prepare a list of institutes proving medical education in your state.
Activity 4
Find the key words which are not used in this topic
Joint replacement surgery,Urology,Ecstasy,Osteoporosis,Hydropathy,Fever,Panchkarma,Exotic

SPIRITUAL TOURISM
Globally people are increasingly mentally disturbed and looking for solace in spiritual reading,
meditation and moments of divine ecstasy. Our country has been known as the seat of spiritualism and
India’s cosmopolitan nature is best reflected in its pilgrim centres. Religion is the life-blood for
followers of major religion and sects. Hinduism, Islam, Buddhism, Jainism, Zoroastrianism and
Christianity have lived here for centuries. The visible outpouring of religious fervor is witnessed in the
architecturally lavish temples, mosques, monasteries and Churches spreads across the length and
breadth of the country. India is not only known as a place rich in its culture with varied attractions but
also for many places of worship, present itself as embodiments of compassion where one get peace of
mind. Thus India has been respected as a destination for spiritual tourism for domestic and international
tourists. Spiritual tourism is also termed as religious heritage tourism. It includes all the religions
mentioned above; religious places associated with, emotional attachment to these centers and
infrastructure facilities for the tourists. This can also be referred to as pilgrimage tourism, as clients are
not looking for luxury but arduous journeys to meet the divine goal or simple life.
The essence of spiritual tourism is inner feeling through love. Love should not be rationed on the basis
of caste, creed and economic status or intellectual attainment of the recipient. Religions come into
existence for the purpose of regulating human life; what are common to all of them are the principles of
love. Thus through religious tourism there is a sincere effort to bring better understanding among
various communities, nations and thus foster global unity. Hinduism is one of the oldest religions of
India. Over 5000 years of religious history created wonderful temples and survived through ages all
over India. The most popular spiritual tours are those that are centered on holy Ganges River. Badrinath,
Kedarnath, Haridwar, Gangotri, Yamunotri, Allahabad, Varanasi. Jaganath temple at Puri,
Bhubaneshwar, Konark in Orissa, Mata Vaishnodevi of Jammu and Kashmir, are some of the important
pilgrim centers in north India. There are many spiritual sites in South India as well which dates back
beyond the 10th centaury. Rameshwaram, Mahabalipuram, Madurai Meenakshi temple in Tamilnadu
and Tirupati in Andhra Pradesh are some pilgrim centers. Every year millions of tourists, both domestic
and international, visit these places. India is special to Buddhists all over the world and India is the
destination for pilgrimage because Buddhism emerged in India. The country is dotted
with places that are associated with the life and times of Gutham Buddha; Lumbini-the birthplace of
Buddha, Saranath where Buddha delivered his first sermon, Buddha Gaya where lord Buddha attained
enlightenment and Vaishali where he delivered his last sermon and announced his nirvana.
Sikhism also emerged in India. The Golden Temple in Amritsar, the Hemkund Sahib, and Gurunanak
Devji Gurudwara at Manikaran, which is also known for its hot water springs with healing properties,
the holy city of Patna Sahib and Anandpur Sahib are important for Sikhs.The Jain temples of Dilwara
and Mount Abu in Rajasthan, the Gomateswara temple at Karnataka, draw thousands of Jain followers.
Even small communities like the Bahais have their own Lotus Temple at Delhi. The Sultanate and

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Moghul empires built many historical monuments and mosques during their reign, all over the country.
Red Fort, Fatehapur Sikri,Jama Masjid, TajMahal, Charminar etc., bear testimony to the blend of the
Indian and Islam traditions of architecture. The followers of Islam have many mosques and shrines of
Sufi Saints, like Moin-Uddin Chisti and Nizamuddin Aulia. For Christians, spiritual tours to Goa among
other place like Mumbai and Kolkata are must. Among the most popular sites in Goa is the church of
Our Lady of Rosary, the Rachel Seminary, and Church of Bom Jesus. In addition to pilgrim centers there
are personalities like the Satya Sai Baba, Osho, Shirdhi and others. This shows that spirituality and
religion in India is a serious pursuit. The State Governments concerned, charitable trusts, temple trusts
have made elaborate arrangements for accommodation, transport and ritual ceremonies. These
organizations are also running hospitals, educational institutes, ashrams, meditation centers which
benefit local community. More than 500 religious places have been identified and efforts are being made
to develop these centers by Central and State Governments with private participation.
CHECK YOUR PROGRESS
Activity 1
Do you think spiritual tourism can promote religious harmony?
Activity 2
Which are the important religious places which attract pilgrims in your
state?
Activity 3
Match the following
A B
Jaganath temple ............. Goa
Mount Abu ............ Lumbini
Birthplace of Buddha ........... Rajasthan
Church of Bom Jesus .......... Puri

MICE TOURISM
The meetings, incentives, conferences and exhibitions (MICE) industry is extensively and rapidly
growing and is largely associated with travel for business purpose. MICE related events include
meetings, conferences, conventions, exhibitions and incentive travels. Each of these different
subsections of MICE has quite different characteristics although the industry is often referred to as
MICE. Increasingly convention bureaus serve the needs of meetings, incentives and exhibitions
organizers and service providers supply each of the sectors. Business with Pleasure With the Indian
economy opening up and government restrictions loosening, Mumbai, Bangalore, Hyderabad, Chennai,
Delhi and Kolkata are assuming importance as major centres of business activity in the country. The
days of red- tape always associated with Indian business activity is a thing of the past and corporate
India has moved towards more western standards of professionalism. Since the liberalization of the
Indian economy, MICE tourism is becoming a growing segment in India. More and more business
people have been coming to India for business purpose and adding business with pleasure in their India
tour. Most of the hotels and tour operators offer special facilities for travellers; some even specialized in
this field. They offers pick-up at the airport, corporate floor rooms which will feature phones, fax
machines, computers, journals. All rooms offer elaborate conferencing facilities at hotels and special
conventions centers. Hotels are adept in organizing theme banquets for a product launch, small cocktails
etc. The important conference centers are New Delhi, Mumbai, Jaipur, Kovalam, Chennai, Bangalore,
Agra, and Goa where popular convention tours offer exciting possibilities.

Incentive tourism
Incentive travel has emerged as a popular means of rewarding the employees’ achievements and
contributions, by several business houses especially multinational companies, Insurance Companies,
Banks, Pharmaceuticals Firms, etc. Employees are given free tickets or holidays packages to select

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destinations all paid by company. These are given as added perks to keep up the interest of the
executives who are the high performers of the company. Incentive tours market has become fast growing
sector within the tourism industry.
CHECK YOUR PROGRESS
Activity 1
Describe the facilities provided by Indian Hotels for business tourism.
Activity 2
Make a list of important destinations of MICE tourism.
ADVENTURE TOURISM
Youth tourism has been identified as one of the largest segments of globaland domestic tourism. The
young travellers are primarily experience seekers, collecting, enquiring unique experiences. Adventure
and risk have a special role to play in the behaviour and attitudes of young travellers. The growing
number of young travellers is being fuelled by a number of factors such as increased participation in
higher education, falling level of youth unemployment, increased travel budget through parental
contribution, search for an even more exciting and unique experience and cheaper long
distance travel. Youth and adventure tourism appears to have considerable growth potential.
The rising income in some major potential source markets such as the Central and Eastern Europe, Asia
and Latin America, combined with the lower travel cost, growing student populations around the world
particularly in developing countries, has fuelled the demand. India: a heaven for adventure tourism
India has been an attraction for travellers from all over the world. Though in the field of international
tourism, the segment of adventure tourism in India is getting only a fraction of such traffic. The trend
has been showing an increased movement year after year with the development of facilities
and greater awareness about adventure tourism options. Indian tourism offers both international and
domestic adventurers a wide choice of adventures. Water sports, elephant safari, skiing, yachting, hail-
skiing, gliding, sailing, tribal tours, orchid tours, scaling the high peaks of Himalayas, trekking to the
valley of flowers, riding the waves in rapids, and camel safari in the deserts are breath taking
opportunities for nature enthusias. Ladakh, the Garwal hills, the Himachal hills, Darjeeling, Goa,
Lakshadweep, Andaman and Nicobar, Jaisalmer and wildlife sanctuaries and reserves are some of the
places that offer adventure tourism. Himalayas are the centre of India’s main adventure activities as well
as outdoor recreational tourism. Our rivers, backwaters, Indian Ocean, Arabian Sea and deserts are
unique attractions for the various branches of adventure. Trekking holds out the greatest potential in
terms of numbers. It requires little infrastructure and carries its benefits to remote hills and mountain
regions. Many of them are economically poor and backward. For our own youth it also helps in
inculcating a spirit of adventure, respect for nature. Indian Mountaineering Federation, Ministry of
Tourism and State Governments are trying to improve trekking facilities and ensure safety and
protection of travellers. The Institute of Mountaineering also organizes courses for guides to train them
in basic rock climbing safety procedures, environmental knowledge, and flora and fauna conservation.
The major trek heads in the Himalayan region include Kashmir valley, Kirshwasser Zanskar, Ladhak,
Lahul and Spiti, Champa and Manali, etc, Trekking in the Himalayas is a quite enjoyable. Let us now
discuss some important adventure activities: Mountaineering Expedition This is the first and foremost
activity in the Himalayas. In India, the expeditions are controlled and regulated by Indian
Mountaineering Federation, which is the nodal body. Foreign expedition groups have to request the
Indian Mountaineering Foundation (IMF) to book the required peak and IMF confirms the peak, by
charging the royalty depending upon the number of persons and height of peak. Ministry of Defence,
Home Ministry, Ministry of External Affairs are also involved in this process.
River rafting
The Himalayan river’s offer River rafting that run through the beautiful terrains, sandy white beaches,
boulder studded rapids, river confluences, deep gorges, and some revered temples and towns. White-
water sports are popular in Rishikesh, Manali, Zanskar Teesta, Beas, Central Ministry of

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Tourism has great extremely extended support to import inflatable rafts, canoes, kayaks, and accessories
to boost water sports. Lakshadweep and Andaman have been promoted for scuba diving and
windsurfing.
Water Sports
To boost water sports, water skiing and sailing both in seas and lakes, and river facilities has been
provided. Chilka Lake in Orissa, Kollam in Kerala, Bhopal Lake in Madhya Pradesh, Dal Lake in
Kashmir are some of the places where facilities have been provided for water sports. In Himachal
hills Heli-skiing is also being promoted in season. The Garwal Mandal Vikas Nigam provides regular
skiing courses during the season. It can be said that India is a new destination for adventure tourism. The
Ministry of tourism, The Himalayan Task Force and Himalayan Tourism and Adventure Tourism Board
(HMTAB) meet every year to discuss conservation, promotion for Himalayan tourism, and conservation
of ecology.
CHECK YOUR PROGRESS
Activity 1-Write down the important adventure tourist destinations in your native
place?
Activity 2-You are an adventure tourist and you want to go for water sport, Which
places will you select?
Activity 3-A foreign tourist is approaching you and asking about the places where he
can enjoy trekking. Which places will you suggest to him?
NATURE TOURISM
In search of new tourism products, travellers and suppliers are today seeking to reshape the meaning of
nature as a tourism attraction. Modern nature based tourism focuses on experiencing flora and fauna in
natural settings. The nature based tourism related to nature, its attractiveness so that the visitors
experience it in its natural settings. Eco-tourism takes into account unspoiled natural and socio-cultural
attraction. Today the term nature tourism is often used synonymously with eco-tourism. Today nature
tourism is the fastest growing segment of the tourism sector. It comprises around 40-
60% of all international tourism. Diversity of India is to be seen not only in its people, culture, religions,
language and life style, the diversity starts in the land itself. The snowbourd peaks of the Himalayas,
tropical rain forests, and hot deserts and breathtaking beautiful coasts. Each diverse geographical region
generates a different picture and exploring them provides a unique experience. Now all these are
packaged for tourists to provide eco-friendly holidays in India.
Wild life
The diversity of wild life in India is as rich as that of its flora and fauna. The great wealth of Indian wild-
life can be imagined with the sight of majestic elephants, the dance of peacocks, the camel strides, the
roar of tigers, at unparalleled acts of beauty. Watching birds and animals in their natural habitat is an
experience in itself. The vastness of wild life and wilderness is India unparallel in the world. All these
account for the immense opportunities for wild life tourism in India. The immense heritage of wild life
in India comprises 80 national parks and another whopping 441 wild life sanctuaries including bird
sanctuaries. These reserves and forest areas are spread across the breadth and length right form the foot
hills of Himalayan, the Jim Corbet National park to six national parks in Andaman, from Ranthambhor
national park in Rajasthan to Hazaribag wild life sanctuary in Bihar. India also boasts of the unique
ecosystem at Sunderbans which is a UNESCO world heritage site and home to the largest number of
tigers in the world. The Himalayan region is renowned for being the national habitat for a variety of wild
life, elephants, snow leopards, deer, panther, wild buffalos, wild ass, one horned rhinoceros, porcupine,
snow leopards, etc. The Kaziranga Game Sanctuary is ideal habitat for the rhino that the nature lovers
and environmentalists are fascinated by. The great Indian bustard and the black buck of Kerera sanctuary
attract a lot of tourists. The Madhav National Park (Shivpuri Park) is another rich habitat for the wild
life. The royal animal, tiger happens to be symbol of strength and speed.
Amongst the best-known tiger reserves in India is Bandhawgarh in Madhya Pradesh. It is also known as
the crown in the wild life heritage of India.

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The variety of birds in India is enormous. Several hundred species of bird can be spotted across India.
Indian wild life has its share of native birds along with migratory birds. The region of Andaman is home
to rare species of birds like Narcondum hornbills, Nicobar pigeons and megaspores. The
Himalayan region is well known as the natural habitat for the pheasant griffon, vulture and ravens.
Dudhuwa wild life reserve, Keoladeao, Ghana national park, the Bharatpur bird sanctuary in Rajasthan
is home to indigenous and migratory water birds. These bird sanctuaries are attracting tourists from far
and wide.
Fishing and angling
Among the amazing array of nature tours offered in India are those that offer angling and fishing. The
waters of Indian sub-continent are mindblowing grounds for the nature sports. The adventures settings
range form the majestic Himalayan valleys, snow fed streams and high altitude lakes
and wide coastal stretches of the Arabia Seas and Bay of Bengal. Amidst the beautiful hills of the
Himalayas is tented accommodation along the river beds, excellent option for adventure holidays in
India. The Cauvery fishing lodge near Mysore, the hill stations of Munnar, and streams and lakes of
Kerala and Kashmir are a paradise for anglers.
Hill Stations
At heights that range from 600 m to 3500m above sea level, most of the hill resorts of India are tourist
destination in India. The hill stations add to the nature tour of India with majestic mountains and
ravishing rivers. Mountain ranges of Shimla, Kullu Manali, Dalhousie, Palampur in Himachal Pradesh,
Nainital-Almora-Kausani in Kumaon hills of Uttar Pradesh, Pachmarhi in MadhyaPradesh, Darjeeling
are important for their snow-dusted peaks, lakes, parks and hot springs. The waterfalls, sulphur bath and
all provide such an experience, which will linger in one’s mind. Green heavens are on not only in the
forest but the Islands are also a source of the best eco-tourism destinations. The tourism activities in
Lakshadweep bring you close to nature. Andamans that are covered with rainforest, ringed by coral
reefs, marine life, swimming and sunbathing are good experiences. We are promoting tourism but while
promoting tourism in eco-sensitive areas the emphasis is to control the volume of tourists so that the
fragile balance of the area is not disturbed. The whole objective of nature tourism is to have purposeful
travel to natural areas. Taking special note of this very objective of the eco-tourism while utilising the
economic opportunities we should ensure conservation of natural resources. People travel to those
areas, which enlightens, educates and entertains them. The new changed concept of nature tourism
revives the tired source of the eco-tourism. It also provides basic economic upliftment to local people
and other stakeholder who are directly dependent on this natural heritage. This strong relationship
is targeted throughout eco-tourism. Government Initiatives Ministry of Tourism formulated eco-tourism
guidelines for regulated and sustainable tourism. Tour operators operating in the fragile zones have
adopted the (American Society of travel Agents) eco-practices for ecotourism
practices. These are: -
Leave only foot prints, take photographs, but do not take away from natural areas and heritage
monuments.
Encourage local culture
Respect local traditions
Help in the conservation efforts
Do not buy products made of endangered plants and animals.
Try to respect natural habitats and support those products which promote the cause of environment
and protection Ecotourism Guidelines. (Gaur Kanchilal)
CHECK YOUR PROGRESS
Activity 1-Distinguish between sanctuaries and national parks?
Activity 2-Write the names of important bird sanctuaries in India?

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Activity 3-Match the following
A B
Madhav National Park Andaman& Nicobar Island
Bharatpur World heritage site
Narcondum hornbills Munnar
Kanha Shivpuri
Sunderbans Bird sanctuary
Angling Wild life sanctuary
Activity 4-Make a list of wild life sanctuaries you had visited.

RURAL TOURISM
Rural tourism has been identified as one of the priority areas for development of Indian tourism. Rural
tourism experience should be attractive to the tourists and sustainable for the host community. The Ninth
Plan identified basic objectives of rural tourism as: -
Improve the quality of life of rural people
Provide good experience to the tourist
Maintain the quality of environment.
Indian villages have the potential for tourism development. With attractive and unique traditional way of
life, rich culture, nature, crafts, folk-lore and livelihood of Indian villages are a promising destination for
the tourist. It also provides tourism facilities in terms of accessibility, accommodation, sanitation and
security. Rural tourism can be used as a means to:-
Improve the well being of the rural poor
Empower the rural people
Empower the women
Enhance the rural infrastructure
Participate in decision-making and implementing tourism policies
Interaction with the outside world
Improve the social condition of lower sections of the society.
Protection of culture, heritage, and nature.
To tap the immense opportunities, coordinated actives of all agencies involved in the development are
required. A carefully planned and properly implemented development will definitely benefit the
community economically and improve the quality of life in the villages. The success of such
development depends upon the people’s participation at grass root level for the development of tourist
facilities and for creating a tourist friendly atmosphere. Development of rural tourism is fast and trade in
hotels and restaurants is growing rapidly. Increase in the share of earnings through rural tourism will no
doubt; provide an attractive means of livelihood to the poor rural community. It increases the purchasing
power at all levels of community and strengthens the rural economy. Development of infrastructure
facilities such as rail, electricity, water, health and sanitation will definitely improve the quality of life.
Government Initiatives Central Government and State Governments have been encouraging rural
handicrafts and fairs and festivals that have direct impact on preservation of heritage and culture of rural
India. It also draws tourists from all over the world. Regional fairs, festivals help the growth of tourism,
provide a ready market for the handicrafts, alternative income to the community, and facilitate regional
interaction within the country.
The state governments have been monitoring closely the ecological relationship, socio cultural impact
and conducting feasibility studies before selecting tourist sites. The state governments also ensure that:
Tourism -
Does not cause the tension for the host community

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No adverse impact on the resources
Psychological satisfaction for the tourist.
The large inflow of tourists would not put a stress on the local system
Local community should not be deprived of basic facilities for the benefits of tourist
The rural tourism does not disrupt the rhythm of community life
Thus the Central Government and State Governments have taken various steps for the promotion of
tourism and attainment of the goal of sustainable tourism development.
CHECK YOUR PROGRESS
Activity 1-Who are the main beneficiaries of rural tourism?
Activity 2-Can you suggest some of the attractions of rural areas, which can be
developed for rural tourism in your village?
SUSTAINABLLE TOURISM
The concept of sustainability means that mankind must live within the capacity of the environment that
supports. Sustainable development has been defined briefly as “that which meets the needs of the
present without compromising the ability of future generations to meet their own needs”.
The definition brings out certain important aspects of sustainable tourism: -
Conservation and enhancement of resources for the future generation
Protection of biological diversity
Equity within and between generations
Integration of environmental, social and economic considerations
The concept of sustainable development is all about conservation and stewardship of resources for the
future. The support for ecologically sustainable development emerging strongly in the tourism sector, as
it is the logical way of balancing environmental concerns with growth and development of the industry.
Environmental problems facing the world today are of such magnitude that urgent actions haveto be
taken at the highest levels to counter this fatal degradation. But it is not just enough for government
organisations to work towards sustainable development. Every individual, every neighborhood, and
every community has to contribute in every away possible to get close to the goal. Since the earth
summit, the concept of sustainable development has been placed firmly on the global agenda. This issue
is assuming great significance in the development of tourism in India also. Tourism activities depend
upon nature and natural heritage, it is essential to ensure that tourism development is ecologically
sustainable –ecological process must not be neglected. Similarly tourism offers real experience of
unique culture of the country. Hence the development should ensure that social and cultural sustainable
tourism development compatible with the culture and values of the local people. The World Tourism
Organization (WTO) defined sustainable tourism development as “that which meets the needs of present
tourist and host regions while protecting and enhancing opportunities for the future. It is envisaged as
leading to the management of all resources in such a way that economic, social and aesthetic needs can
be fulfilled while maintaining cultural integrity, essential for ecological process, biological diversity and
life supporting system”. Thus tourism has to be human and adapted to the needs of the tourist,
respond to the needs of the local communities, be socio-economic and culturally well planned and
environmentally sound. The tourism must offer products that are operated in harmony with the local
environment, community attitudes and culture so that they become permanent beneficiaries and not the
victims of tourism. The basic cultural identity of these local people should not be adversely affected.
Sustainability also ensures economically sustainable-development process in the efficient
management of resources and such management to ensure that the resource supports the future as well as
the present generation. Thus sustainable tourism aims to: -
Improve the quality of life of people.
Provide good experience to the tourists
Maintain the quality of environment that is essential for both tourists and the local community.

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Tourism can be one of the effective tools for building a prosperous community economically, socially
and culturally. It must be environmentally sustainable and based on the sustainance of the natural and
cultural base. Each destination should examine whether it has adequate attractions and facilities for
tourism and there is a potential for tourism generating markets to be open to exploitation. The carrying
capacity is the central principle in environmental protection and sustainable tourism development. It
determines the maximum use of any place without causing negative effects on resources on community,
economy and culture. Thus tourism has to be environmentally sustainable in both natural and cultural
environment.
Basic Guidelines for achieving sustainable tourism
The following are certain guidelines that have to be followed to achieve sustainable tourism:
A general tourism policy incorporating sustainable tourism objectives at national regional and local
level should be followed.
Targets established for the planning, development and operation of tourism involving various
government departments, public and private sector companies, community groups and experts could
provide widest possible safeguards for success.
Primary consideration should be given to the protection of natural and cultural assets.
All tourism participants will follow ethical and sound behavioral and conservative rules regarding
nature, culture, economy, and community value system.
The distribution of tourism development project should be rationed on the basis of equity.
Public awareness of benefits tourism and how to mitigate its negative impacts should be pursued.
Local people would be encouraged to assume leadership roles in planning and development.
In the Tourism Policy, 1982 the guidelines in Eco-tourism have attempted to achieve sustainability in
tourism. It indicates that the key players in the ecotourism are Central Government and state
governments, local authorities, developers, operators, visitors and local community. Each of them has to
be sensitive to the environment and local traditions and follow the guidelines for successfully
development of sustainable tourism.
CHECK YOUR PROGRESS
Activity 1-What do you mean by sustainable development?
Activity 2-How can sustainable tourism be achieved?
Activity 3-Who are the participants in sustainable tourism?
Activity 4-Delhi is famous for the historical monuments inherited by various dynasties.Can you suggest
some ideas how to sustainably tap the potential of these historical monuments for tourism development?
GLOSSARY
Reflexology = a system of massage of points on the feet used to relieve tensions and treat illness
Aromatherapy = the used of aromatic oils for healing Insomnia = inability to sleep
Paralysis = the loss of the power of movement, inability to act or move
REVIEW QUESTIONS
1. What are the emerging dimensions in the tourism sector?
2. What do you mean by spiritual tourism?
3. Explain the concept of sustainable tourism
4. Write a short note on nature tourism.
5. Why has India become a destination for adventure tourism in recent years?

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 LESSON 22
EMERGING CONCEPTS IN EFFECTIVE TOURISM DEVELOPMENTS
We have discussed in lesson 13 and 15 the emerging dimensions in Indian tourism and challenges posed
due to globalization and liberalization. The new trends in the tourism markets compel all the destinations
to develop new products and strengthen or re-engineer the existing products for retaining, enhancing and
capturing new markets. The effective tourism development is the panacea for the success of the tourism
industry. The success of the future tourism development will depend upon how fast we are incorporating
and implementing the effective tourism development techniques. This lesson discusses 3 major concepts
of effective tourism development in Indian context: Destination Development, Human Resource
Management and Open Sky Policy.
22.2 EFFECTIVE TOURISM DEVELOPMENT
The success of future tourism is intrinsically connected with the way in which the industry and the
tourism system understand and incorporate the emerging critical trends that support its expansion.
Tourism is undergoing major changes; aging world population (western countries) and active life style
of older traveller, the emerging markets, growing disposable income of the youth and awareness about
impact of tourism on environment, will decisively influence the number of tourists, motivation,
destination and product choices as well as activities of future travellers. The rapid liberalization and de-
regulation of markets will bring fierce competition based on price, quality and characteristics of the
tourism products. These trends will bring profound changes in the management and planning of
tourism business and destination While global trends push forward new managerial approach, the
managers and planners must aware of the emerging tools that helps to manage and market business and
destinations. Future trend points towards three strategic directions: satisfying consumers, destination
development and management and territory organisations.
DESTINATION DEVELOPMENT: AN EMERGING THEME
Destinations face increasing challenges in international market place where numerous stakeholders
(tourists, local people, tour operators, hotels and restaurants owners etc) with diverse values and often
divergent needs compete for scarce resources. The growing population of travellers and inhabitants
increasingly make impact on natural and social environment. The success of tourism depends on the
ability of the firms and destination to engage in sustainable use and conservation of vital resources. The
destination development is the key to sustaining the natural and cultural resources on which tourism
depends. Therefore steps have been taken up as key initiative in development of tourism destinations.
The close interaction between the public sector, the destinations tourism marketing organisations,
private sector and local residents in planning is the key principle of sustainable tourism. Thus the
stakeholders can work most effectively together to manage local – global influences on their natural and
cultural resources. Effective destination development is the important problem facing tourism managers.
Integrated Destination Management A new concept adopts system approach where the ecological,
physical, social spaces are linked by various networks and institutional structures.
Traditionally, destination management tents to represent the tourism industries interests. Their mission is
building and enhancing favorable destination image to attract targeted tourists and increase visitor
numbers. Therefore, destinations and state and tourism agencies often focus their activities on tourism
advertising campaigns. Historically, marketing focused on developing product, price, place and
promotion, which ensure reasonable profit to individuals and organisations. Nowadays the marketing
has been changed to an organizational function and a set of process for creating,communicating,
delivering value to customers and its stakeholders. This reflects a shift away from mere profit motive
towards creating value for a network of actors and environment. The integrated destination management
brings in destinations ecological – human communities as equitable and integrated members of planning
and marketing and goal setting. The new approach integrates economic mobility,social equity and
environmental responsibilities towards achieving the equality of life within living system. Based on eco-
system network model a sustainable planning and marketing orientation does not just satisfy the needs
and wants of individual but it strives to attain sustain ecosystem. The benefits are not just profits, but

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civic energy and social unity. Competition is replaced by dynamic interaction that aims at
environmental, social, economic equity within the local – global network of living and physical
structures. Therefore, sustainable tourism marketing objectives are not to design product, price, place of
a tourism destination or attraction, but to ensure quality of life and environments through tourism
development. Achieving this will be a challenge. It involves developing an interactive product or place
relationship that will give value to visitors and to diverse community stakeholders.
DESTINATION DEVELOPMENT
Tourism system, the destination region is perhaps one of the most important elements. Without the
richness and variety of tourism environments around the world we would not have the same quality of
tourist experience. In order to understand the supply of tourism, consideration has to be given to the
different environmental social and economical contexts around the world within which tourism
destinations are located. Destinations demonstrate number of common features.
Destinations are cultural appraisals
They are perishable because tourism is consumed where it is produced.
Destination involves multiple use of tourism with other uses.
To be successful the components of the amalgam needs to be of equivalent quality.
It is important for the destination to deliver quality experience and product, and in this regard, careful
planning and management is essential to ensure a tourism industry based on sustainable development.
The destination brings together all aspects of tourism – demand, transportation, supply and marketing. It
is one of the most important elements of tourism because destinations and their image attract tourist,
motivates the visitor and therefore energize the whole tourism system. As the demand for the tourism
has increased, pressure from the growing number of visitors has degraded some destinations. In response
to this, planning and management strategies have been implemented in the busier
destinations. Planning and management is the key to making existing tourist destination and resources
more effective in meeting current as well as future demand. Thus destination as the focus of facilities
and services designed to meet the needs of the tourists. Most destinations comprise a core of the
following components: -
Attractions – manmade features, natural features or events thatprovide motivation to visit.
Access – local transport facilities.
Amenities (accommodation, food, beverages, entertainment and retailing.
Auxiliary services in the form of local organisations. Infrastructure and Super Structure
Infrastructure represents all forms of construction above or below the ground, with extensive
communication with the outside world as a basis for tourism activity in the area. Adequate infrastructure
is essential for tourism development mainly in the form of transportation, utilities and other
services. Generally infrastructure does not generate income and is treated as a public investment in most
tourist developments. Where as a super structure is normally private sector activity, as it is the profit-
generating element of the destination. It includes accommodation, built attractions, retailing and other
services. In many countries public sector is actively providing financial incentives – grants, loans, and
tax- holidays for private sector tourism investment. The destination development is a combined effort
of public and private sectors. Destination Evolution The evolution of tourism has been closely linked to
the evolution of destinations and in particular, resorts. The evolution of resorts has been driven by
transport developments. Most of these are now touring centres rather than destinations in their own
right, and in response touring circuits and clusters of attractions have developed. At the same time
markets also respond to these terms of their tourist facilities and services. This evolution of tourism
destination can be represented by tourist area life cycle (TALC). This states that destinations go through
a cycle of evolution similar to the cycle of a product. The shape of TALC curve will vary, but for each
destination it will be dependent upon factors, which can delay or accelerate progress through various
stages such as the rate of development, access, government policy, market trends and competing
destinations. The development can be stunned at any stage in cycles, and only tourist developments

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promising considerable financial returns will mature to experience all stages of cycle itself is variable.
The tourism destinations evolve from their beginning or inception stage through exploration,
involvement, development, consolidation, stagnation and eventual decline or rejuvenation. Destination
life cycle provides a framework for understanding how destinations and their market evolve.
Understanding the life cycle aids the development of community – based and sustainable tourism
strategies at the involvement stage. The components of tourist destination can be effective only if careful
planning and management deliver a sustainable tourism product. Only in recent years, that the negative
impact on tourism on destination, rise of environmentalism and green consciousness have been set for a
reassessment of the role and value of tourism to destinations.The concept of sustainability demands a
long-term view of tourism and ensures that the consumption of tourism does not exceed the ability of the
host destination to provide for future tourists. In other words it represents a trade-off between present
and future needs. Perhaps the central issue for here is the gradual shift from short-term to longer-term
thinking and planning at the destination.
Carrying Capacity
The concept of sustainability and carrying capacity we discussed in lesson 15 and 17. It is no longer
acceptable for the industry to exploit and use-up destinations. The carrying capacity of a site, resort, or
even a region refers to the ability to take tourism intervenes in the relationship carrying capacity is
the maximum number of people who can use a site without an unacceptable alteration the physical
environment and without an unacceptable decline in the quality of experience gained by visitor. Thus the
carrying capacity roots in resource management, important aspect especially where finite
destination resources are under growing pressure from users.
Development of destination for tourists
A sustainable tourism development model attempts to keep tourism in a particular place within the limits
of capacity of the place. The late modern forms of tourism are based more on specialization, niche areas
and highly competitive than on earning money from volume tourism. Butler’s model of
tourism development at destination provides more detailed picture of how to achieve the structural
development of tourism. A different level of development in an area is presented below: -

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Development of a specialized offering for tourists.
Simplest service offering for tourists is placed at the bottom of service ladder. Common forms of
services are cafeterias, petrol stations and dabas. Both local residents and tourists use these services.
Next Step up the ladder is that there is some form of overnight accommodation in the area, a hotel,
and motels but without any special attractions.
Third step is specialized tourism service providing a greater range of attractions, activities, and
accommodations.
The fourth stage is tourism centres where the whole range of services has been adopted to the needs of
tourism for one season or two-season destination.
Final step on the ladder is advanced service – rich source of services and extensive specialization, in
the form of theatres, concert halls, large museums etc.
This model presents the stages in the development from small-scale tourism to mass tourism.

Tourism development strategy

When developing a destination, a planner works on two factors: -
Pull factors – tourism products and attractions.
Push factors – determine demand, provide information about supply of attractions and marketing these
areas tourism products.

The tourism destination can be designed structurally through appropriate development strategy. The
development strategy provides broad guidelines, future vision and goals for of sustainable development.
The procedure involved in the strategy is as follows: -
Inventory of existing and potential resource for tourism.
Description and analysis of the structure of the tourist industry – products.
Analysis of demand.
Development ambitions of representatives of tourism industry.
Local community demands regarding tourism.
Maintaining ecological, social, cultural and economic Environment
Form of organization for tourism development.
These broad guidelines must be incorporated in the tourism destination development and consumption
process.
Future Developments
Tourist destination of the future will be influenced by variety of factors, but technology and the demands
of new tourist will be dominant. Technology permeates destination development in many ways such as,
hotel communication system, computer reservation system which allows
matching of demand with supply and computer generated imagery and use of virtual reality.
Thus the stage is set for a range of new tourist destinations to be developed and for the more effective
management of existing destinations. There is no doubt that these new and existing destinations need to
be better planned and managed and show more concern for their environment and host community.
CHECK YOUR PROGRESS
Activity- 1-Write down the features of tourist destinations?
Activity 2-How will you compare the life cycle of a product with the life cycle of
tourism destination?
Activity 3-Which are the parameters of carrying capacity and how do you determine
the capacity of a destination?
Activity 4-Your friend asks you to prepare a tour package to Goa for next summer.
How will you collect necessary details for the plan?

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HUMAN RESOURCE DEVELOPMENT
The success of any industry depends to a great extend up on the quality of human resource and tourism
is not an exception. We have already learnt that tourism is labour intensive industry which provides
employment to skilled, semi-skilled and unskilled workers directly and indirectly. The progressive
labour force with dynamic management and responsive government and responsible society are the
pillars of the tourism industry. Traditionally, the employment has been seen as an area that is reactive to
changes in the wide business environment. There is a widely accepted assumption that the role of people
within organisations is required to change and develop in response to developments in markets, products
and technology. Most of the large tourism companies recognized this assumption and has been started
organising work and support human resource functions such as training and development. This is
possible only when the external labour market permits employers to adapt these changing
dimensions. Globalization of business firms has a number of implications for human resources
management. A major consequence in tourism industry is the issue of matching employee’s skills with
changing industry requirements. The traditional practice of employee’s learning the majority of skills on
the job and gradually progressing to senior position is threatened by the rapid technological changes and
the need to respond to the changing service requirements. Employees at the operational and managerial
levels are now required to be more flexible and adaptive to constant change. Globalization
has major Implications for work and employment in tourism and these include: -
The need for different skills and competencies is the employees to be able deal with use of technology.
Dealing with employment related consequences of mergers and strategic alliances.
Issues of relocation of employees and social and cultural sensitiveness of those working away from
home.
New forms of tourism utilizing natural and cultural environment create a demand for indigenous
employees, who could deliver better quality and original products and services.
Meeting the needs of high skilled tourists who are more experienced and demand higher quality of
products and services. These pressures of globalization in tourism have significant implication for
work and employment, especially for human resources development and dealing with cultural aspects.

HUMAN RESOURCE DEVELOPMENT IN INDIAN CONTEXT

In India there is a tremendous shortage of trained manpower in the hospitality sector. Tourism sector on
an average requires manpower about 20,000 per year. Against such a requirement the actual trained
output from govt. institution is only 5000 per year. When we consider all other private institutions, the
total available trained manpower does not exceed 10,000 in a year. Thus there need to develop required
human resource in various segment of the tourism industry, as a consequence of the rapid growth in
tourism, changing technology and markets both national and international level.
The main problems involving human resource development is in the tourism sector are-
Scarcity of qualified manpower.
Shortage of tourism training infrastructure and qualified trainers.
Bad working conditions in tourism sector.
Bad strategies and policies for human resource development.
Tourism Industry has undergone a sea change with respect to human resources development and in
response to emerging trends for successful tourism in the country. Both the governments and private
sector have realized that hospitality with professional service is the core of tourism. For the industry, the
tourists are the ultimate service activity and extending quality service ensures continued clientele. For
providing world- class service will always require training, education, increased investment and
development of work culture, change in the attitudes and new methods of motivating manpower in the
industry for continued growth. Thus this type of pressure of globalization in tourism has significant
implications for work and employment especially in human resources development. . Hence necessity of
trained manpower has become top priority in the agenda of tourism plans over the years. The

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Government has recognized tourism as a vehicle for economic development and generator of
employment for skilled-semiskilled and unskilled teaming millions not only in popular tourist
destinations but also in remotest areas of hinder land The governments have been taking the initiative of
setting up a number of institutes all over the country. The institutes of Hotel Management Catering
and Technology Applied Nutrition were set up in New Delhi, Mumbai, Chennai, and Kolkata. In order to
meet the training requirements at craft levels in specific disciplines, 14 Food Crafts Institutes were set
up at different places in the country. In order to harness the resources the Ministry of Tourism
established National Council of Hotel Management and Catering Technology in 1984. The established
objectives of the Council are-
Advise the Govt. on coordinated development of hotel management and catering education.
Serve as a technical storehouse for use in training, affiliate institutions and prescribe course of study.
Standardize courses and infrastructures requirements.
Prescribe educational and other qualifications, experiences etc. for the members of staff in the
affiliated institutions and introduce faculty development programme.
To give certification and accrediting at the national level. With the establishment of National Council
on Hotel Management and Catering Technology has helped the expanding and modernizing the
capabilities of hotel and catering education programmes. In the order to strengthen the existing training
infrastructure, National Culinary Institute and Advanced Hotel Management Institute are proposed in 9th
plan. The intake of candidates for the 3 years diploma course in Hotel Management is about 2000 and
efforts are made to increase the capacity. These diploma course Hotel Management and catering
Technology has been recognized by All India Council of Technical Education. of Indian and has been set
up to meet the needs of higher education & Training of travel and tourism act as a centre for excellence.
National Institutes of water sports were set up in Goa in 1990 promotes water sports active throughout
the country. The institute establishes quality norms for adventure sports industry and certify water sports
professional in the field of power boat handling & life saving.
Guide Training- Training of Guides is a very basic component of the tourism services. Inadequate
number of trained guides makes a lot of problems to tourists especially for international tourists.
Realizing this urgent need the quality training is provided by Ministry of Tourism through its tourism
office or Indian Institutes of Travel and Tourism Management. The state Governments are also provides
training programmes at state level.
The Govt. of India Tourism office assesses the requirement of fresh guides in the region from time to
time. It conducts training courses in coordination Indian Institutes of Tourism Travel management,
refresher courses and orientation programmes for custom, immigration offices and various other
services providers like taxi-drivers. Thus strengthening of guide training at grass root level workers has
been given an emphasis to improve the quality of service in respect of guides in India.
The National Tourism policy emphasis the necessity of professional excellence in Human Resource
Development and envisages the following programmes:
Strengthening the Institutional set up for Human Resource Development and setting up of Advanced
Institutes of Hotel
Management and Culinary Institute.
Qualitative Improvement and modernization of existing training Institutions.
Setting up of food craft institutes in each state.
Improve the standards through accreditation and quality control.
Setting up National Tourism Documentation centre equipped with modern technology systems to
function as a repository of research findings and publications on tourism.
Encouraging Participation of private sector in human resource development and encourage them to
setup independent training facilities.(Gaur Kanchilal)
CHECK YOUR PROGRESS
Activity-1-What are the main problems faced by India in human resource development?

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OPEN SKY POLICY
The passenger aviation industry had been highly regulated in the aftermath of Second World War till
recently. The regulatory regime was based on restrictive international agreements on a bilateral basis and
protected the national airlines against other scheduled competitors and charter carriers. The national
airlines were thought to act as factors of economic modernization, which provided a stable and regular
transport service, facilitated regional development promoted international tourism recognition. However,
in practice the aviation sector offers low quality service at unjustifiable high fares. The emerging
customer dissatisfaction led to the 1978 de-regulation of the US domestic market and triggered similar
practices worldwide. Many countries signed open-sky agreement. In India we have opened the aviation
sector to the private sector and a number of private operators are operations flights in some selected
routes. In International flights the central government has given green signal to the private sector to
operate services. Jet Airways, King-Fisher, Spice Jet and Deccan Airways have already started their
presence in the Indian aviation sector. With the privatization of aviation sector, the monopoly of the
Indian Airlines and Air India ceased and even their existence is in danger. The immediate result is that
the airline charges got reduced and the charges are now determined by the market forces-demand and
supply. India has signed open sky agreement with many countries including South-East Asian countries
under the open sky policy. The privatization of airlines sector and open sky policies in fact has given a
boost to the tourism industry.
CHECK YOUR PROGRESS
Activity 1-Write down the names of important private sector airline companies.
Activity 2-Prepare a list of the foreign airline companies operating flights in India.
Activity 3-Find the flight charges for different flights from Delhi to the following destinations;
Bangalore, Mumbai, Chennai, Srinagar, Gandhi agar, Kolkata.
22.3 SUMMARY
The growing population of travelers and inhabitants has been putting pressure on natural and social
environment. The success of tourism depends on the ability of destinations to engage in sustainable use
and conservation of vital resources. In integrated destination development adopts system approach
where ecological, physical and social spaces are networked brings in destinations ecology and
institutional structures. The integrated destination management brings in destinations ecological and
human communities as equitable and integrated members of planning and marketing and goal setting.
The globalization of business firms has a number of implications for human resources management. In
India there is a tremendous shortage of trained manpower, shortage of training infrastructures and
substandard working conditions and lack of strategies to deal with the emerging trends. Recognising the
shortfall the central government and state governments have taken various steps to improve the human
resource development. The Institute of Hotel Management, catering and Technology, Applied Nutrition
were set up in four metros and 14 Food and Craft Institutes were set up in all over India and established
National Council of Hotel Management and Catering Technology. Another new initiative taken by the
government is to liberalize the airline sector by signing open sky agreements with other countries in
order to boost inbound, outbound and domestic tourism.
22.5 REVIEW QUESTIONS
1. What do you mean by tourist destination life cycle?
2. How is tourism destinations evolved?
3. What are the main human resource problems being faced by India?
4. What is the recommendation given by the National Tourism Policy for human resource development?

EMERGING TOURISM SCENARIO

23.0 INTRODUCTION

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Any forms of Industrial development can make tremendous positive or negative impact on social and
physical and economic environment in which it takes place. The tourism unlike other industries has a
unique feature; the tourists have to visit the place of production in order to consume the output
so that tourism is clearly responsible for such impacts. A number of researchers have attempted to bring
the different approaches made to study of tourism impact on the destination into a unified frame work
for analysis but none of these researches could provide a practicable frame work tourism impact for
analysis. This lesson discusses the major impacts of tourism.
.
23.2 IMPACTS OF TOURISM
The impact of tourism on any destination will be determined by a wide variety of factors: -
Volume of tourism arrivals
Structure of the economy
Types of tourism activity
Differences in socio-cultural characteristics between host and the tourists.
The fragility of the local environment.
As tourism development in a destination takes place, the magnitude of impacts whether positive or
negative will change the nature. Every destination is subject to a carrying capacity- a level of tourism
activity that can be sustained into the long term without creating serious or irreversible changes to the
destination. The carrying capacity is defined “as that level of tourist presence which creates impact on
the host community, environment, and economy that are acceptable to both tourists and hosts and
sustainable over future period of time”. If the carrying capacity is exceeded, the destination will find that
the negative impacts rapidly increase while the positive impacts diminish. The tourism development
process will be hindered and irreversible damage may be experienced and finally the tourist
dissatisfaction results in the decline of destinations. The damage may be concerned with social,
environment or economic aspects but the end result will be the same. The economic impact of tourism
has been discussed

The social and environmental impacts.

SOCIAL AND CULTURAL IMPACTS
For many countries tourism is considered as an easy way of economic development especially for
developing and under developed countries. As the economic impacts are more really measurable, other
types of impacts tend to remain more hidden, particularly social and cultural effects.
However social and cultural change may in our more significant costs than economic benefits in the long
term. This part discusses the nature of these social and cultural impacts of tourism. Tourism is a social
event. It is all about people and how people as tourists interact with other locations and peoples,
engaging in experiences that may influence their own or host community attitudes, expectations
opinions a life styles. Thus wide rang of tourism socio- cultural event for the traveller
and host community. Socio cultural impact relate to change in societal values, systems, individual
behaviour social relationship, life styles, modes of expression and community structure. The focus of
socio culture impact is cantered on host a community person who resides in tourist destinations.
Sharply states that from social and cultural perspective, the rapid expansion of tourism is important in
two respects: - Firstly, development of tourism as a vehicle for modernisation and
diversification leads to changes and development in the structure of society. This may positive or
negative. In positive sense, there may be society wide improvements on income, employment
opportunities, education, local infrastructure and services. On the negative side there may be a threat
posed to traditional social values, creation of frictions and there are peoples fascinated with western
culture in the society who may take advantages of others and adaptations or weakening of cultural
values. Secondly, all tourists to great extent inevitably take on holidays their own beliefs, values and

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behavioural models what may be termed as cultural baggages. Therefore, the scope for mixing of culture
is great. This gives rise to two arguments about socio cultural effect of tourism.
The interaction between host and guest could destroy traditional culture i.e. tourism primary as a
threat to culture and people.
The interaction between host and guest could create new opportunities for peace and greater under
standing.
There is evidence to prove both of their aspects are correct and a consensus is by no means easy to
generate. The study of the impact on society and culture is complicated by the nature of more general
social and cultural change. The forces of change are many and varied, tourism being just one
factor. Other aspects include the role of advertising and media, effect of multinational companies, the
aspirations of government, education and immigration. Given the complexity of influencing factors, it is
hard to extrapolate as one example of potential social cultural impact due to tourism. However there is
wide spread assumption about socio- cultural impact that if the tourist generating country has a stronger
economy and culture than receiving country, then the socio- cultural impact is likely to be higher. The
greater the difference, greater is the impact.
Factors Influencing Socio Cultural Impacts
The main factors influencing the nature and extent of social cultural impacts are: -
Types and number of tourists.
Importance of tourism industry in the economy
Size and development of tourism industry
Pace of tourism development
Nature of guest – host interaction
Nature of host destination and cultural simulates
Community tolerance capacity
Experts comment that cultural similarity or dissimilarity is one of the major factors in shaping socio
cultural impact. Impacts tend to be greater where the host and guest relationship is both culturally and
geographically different.
UNESCO (1976) suggests that host guest interactions in mass tourism are characterized by four
properties: -
Transitory nature
Temporal and spatial constraints
Lack of spontaneity
Unequal and unbalanced experience
These properties appear especially valid in the context of mass tourism to developing countries The
primary problems associated with tourism are the demonstrations effect acculturation increase in
crimeand prostitution and health, displacement of community, general host irritation and
commercialisation of culture.
Demonstration Effect
Demonstration effect is defined as changes in attitudes, values or behaviour which can result from
merely observing and imitating tourists. This may be advantageous or disadvantageous to the host
community. Tourists to developing countries especially if they come from very different societies
introduce and display a very foreign way of life to the host population. This may be positive when it
stimulates certain behaviours or inspires people to work for things they lack. More commonly, it is
detrimental and causing discontent and resentment among local people especially in developing
countries because if the lack of wealth to satisfy these desires. The demonstration effect has also
economic implication. Local people often tend to initiate the rich person that changes the pattern of
consumption from local product to western products. Local people may turn illegal means to
obtain the wealth they desire, this crime rate may increase as a result of tourism in a destination. The
demonstration effect has the greatest influence on young people and may create generation gaps and

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class difference between the young generations with those who wish to retain the traditional way of life.
The young especially the educated tend to migrate. The young people want material side of modern life
but fail to see the negative effects – such as stress, unemployment, and environmental degradation. This
type of changes may be a disruptive force to traditional kinship overtime.
Acculturation
Many impacts of tourism appear relatively quickly while others tend to manifest themselves more
gradually. Cultural changes falls into this last category and overtime, more long-term cultural change
may result from tourism. The external influences and the evolution of society results change, regardless
of the existence tourism. The enhanced networks of communication, technology and emergency of
global market are all part of this process.
The infiltration of western culture into less developed countries is viewed as problematic. The attitudes,
behaviour pattern; expenditure pattern may not be easily adapted from one culture to another. Nepal is a
best example, which is becoming a mainstream tourist destination, and westernisation of
Kathmandu is occurring as a result of tourism. This type of change coca- International tourism is thought
to influence socio cultural change through the process of acculturation. The theory of acculturation rests
on the notion that contact between cultures results in sharing and adoptions of one
another’s values and attitudes. A major concern is that when a culturally weak society comes into contact
with a strong one, the process will be one way, that is the values and attitudes of the strong nation are
transferred to the weak nation. Thus acculturation is more pronounced in less developed
countries. Particularly those have had less contact with western society in the past. Tourism induced
acculturation may be difficult to disentangle from wider cultural change.
There are two arguments on the cultural impact of tourism.
Tourism results in the transformation of cultural events into commercialised products.
(Commodification of culture)
Tourism results in preservations and revitalisation of traditional culture practices by providing
financial support engendering community pride contributing positively to the goals of sustainable
tourism. Anthropologists accept the increasing presence of international tourists in the third world as an
important element in the process of acculturation where by people in contact borrow from each other’s
cultural heritage. In this instance the presence of stronger western ideas and practices introduced
by tourism means that the process is largely one of assimilation of the weak host culture. This does not
always happen of course as can be seen in those countries under powerful Islamic religion influence
(Malaysia, Indonesia, and Mauritius) where active steps are taken to resists the forces of assimilations.
Socio Cultural Effects of Tourism
Language-Language is a key indicator of acculturation because it is a social vehicle of communication.
Tourism can change the language of host community and make an aversion towards regional languages
and dialects take place in three ways: -
Economic changes through bring of immigrant or expatriate labour.
Demonstration effect where the local community aspires to achieve the status of visitors.
Direct social contact and the need to converse to make commercial transactions.
Sometimes, the host is obliged to learn the main incoming tourist languages in order to deal with their
requirements. Religion In some tourist destination religion (churches, temples and mosques and
monasteries) has been promoted as major tourism products and their sites attracts large number of
visitors, who may or may not have belief of that particular religion Because of this increasing conflicts
exists between local worshippers, devout visitors and sight seers. The tourists do not always
recognize traditional ceremonies, rites and practice. In Bhutan, tourists are not permitted to visit
Monasteries. In India, temples are not opened to non- Hindus in order to prevent tourism from disrupting
religious life. In many countries particularly Islamic countries tourists clothing can cause offence. The
Gambia, Maldives and some Islamic countries are best examples for this. Displacement It is also
important to understand the wider repercussions of tourist development where economies have been

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placed priority before community concerns. The most widely discussed phenomenon is the displacement
of local communities who have to move away from their residence to make way for tourism. Land is
taken over by government or private investors for various reasons such as construction of hotels and
other infrastructure. The forceful displacement not only makes the local community homeless but also
loss lively hood. In the name of development, all over the world millions of poor tribal societies have
been displaced and driven in to eternal poverty. Universal declaration of human rights (1948), which
states, “the basic standards that must underpin contemporary global society is clearly contravened by
some of the examples of tourism development”.
Displacement establishes the nature of power relationship between the forces of tourism development,
government and local communities and in most cases the local people are the losers. There are large
numbers of non- governmental organisations that are campaigning to protect communities
which are displaced by the developmental activities. The main slogan of the conservatisms is “our
holidays, their homes”.
Tourism and Crime
Tourism and crime is a new emerging area of study within tourism but there is no universal agreement
on whether tourism development leads increased crime in a locality. Tourists are vulnerable because they
are in unfamiliar surroundings may be carrying expensive consumer items, cash, credit cards
and passports which are valuable commodities in the black market. Tourists may engage in crime and
illicit activities such as violet, drunken behaviour, drug smuggling and sex tourism. It appears that
especially in seasonal basis tourism raises the crime level as the tourist influx provides for more targets
and possibly easier and wealthier targets. Some scholars have established certain relationship between
crime and tourism.
Sex Tourism and Prostitution
Prostitution undeniably existed before the onset of mass tourism to developing countries. However, in
many countries tourism has undoubtedly contributed to an increase in prostitution, organized gambling
and various types of crimes. Although, there exists casual connection between crimes
and tourism, it is very difficult to find hard evidence about the role played by tourism. Given the fact
that similar effects have been experienced in countries that possessing low levels of tourism. It is thus
wrong to make tourism the scope goat for changes. In relation to prostitution, it seems that different
attitude to sex in some third world countries were responsible for the growth of sex tourism and the
prevalence of sex tourism which dates back to the accounts of early European adventures. This image
has persisted in the marketing of some exotic destinations like Thailand and other South Eastern
Countries. The demand for such services now includes almost everywhere affected by mass
tourism. The tiny West African country of the Gambia has been successfully marketed in Scandinavian
countries as the closest place to Europe guaranteeing a pleasant climate during the northern winter. It is
also a place deeply affected by tourism impact on moral behaviour... In additions to its major health
effects on the entire population of some regions like Central Africa, sex tourism to developing countries
is only one side of the coin, the other is the marriage trade towards industrialized countries from
developing countries. Probably the most famous and bestdocumented sex tourism destinations are
Thailand and Philippines and to lesser extent South Korea, Kenya, Dominican Republic and Brazil.
The scare of AIDS had dramatic affection prostitution. The very recent threat of AIDS as incurable
sexually transmitted diseases will have important implications for the popularity of some tourist
destination. The tourists wanted younger and younger prostitutes on the hope that there was a
lower likely hood this disease. In recent years, however several industrialised countries have finally
passed legislation, which prosecutes their residents for sex with minors overseas. (Germany, Sweden) it
is hoped that this will serve as a disincentive. With respect to crime and gambling, although there is
plenty of evidence in the developed metropolitan countries of a positive relationship between
tourism and increase in crime, there are few studies, which examine the situation from third world
perspective. Matheson and Wall suggest that tourism and crime are influenced by population density

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during the peak seasons, the location of resort in relation to an international border and differences in per
capita incomes between host society and the tourists.
Health
Tourism has the dual effect of promoting the provisions of improved health care in third world
destination, but in addition, it act as a vehicle to spread some forms of diseases. There is increasing
concern about spread of sexually transmitted diseases (STD) through tourism at a variety of level
from minor diseases to spread of HIV and AIDS through sex tourism. Standard health care may improve
in tourism destination as better facilities are introduced to cope with increased seasonal population. In
some destinations, cultural differences in safety standards can create unknown levels of risk. Western
visitors occasionally regards the fact that a low standard of public hygiene in parts of third world rarely
provide safe drinking water supply and hospitals find it difficult to attract or retain the services of skilled
personal.

CULTURAL IMPACT
There has been much studies conducted to investigate tourisms role in communication between cultures,
its effect on the physical products of culture such as crafts and arts and influence on custom and
ceremony in the host society. Communication between cultures: Cross-cultural contact arising from
tourism is thought to be functions at least 3 factors.
Type of tourist the different categories of tourists in the third world are reflected on expected
differences in their kind of interaction with local people.
Context in which the contact takes place. Clearly things such as length of stay, the environment under
which the contact occurs, and language ability will help to determine the depth of communication,
which takes place.
The role of cultural brokers, who are intermeddling occupational group such as interpreters and guide
who are the conduct through which much of contacts occurs their activities are thought to have a
considerable effect and on the manner and speed with which new
ideas and influences are transmitted. Tourism and physical culture: One of the obvious sign of cultural
reawakening is to be found in the state of traditional art forms in third world society. The growth of
tourists’ handicrafts market has stimulated local production in both positive and negative directions.
Positive influence may be found in the financial success traditional artefacts production in many places.
On the other hand, the sheer pressure caused by a ready market for handicrafts has also lead to fall in the
quality of workmanship and manufacture of cheap limitation known as
airport art.

Effects of tourism on local customs.

Tourism has the ability to market its products as a commodity, part of which consists of promoting the
cultural attractions of holidaying in an exotic environment. Although this process is criticised cheeping
cultural events such as religious ceremonies, it is also responsible for the flow of funds into
many local activities.
CHECK YOUR PROGRESS
Activity 1-Why is tourism a socio- cultural event?
Activity 2-Prepare a list of cultural events which can be exploited for tourism development in your state
Activity 3-Tourism is always blamed for co social degradation in many countries. Do you think this
argument is right? What kind of impact has been created in your state due to the tourism development?
Activity 4-Substitute appropriate words for the following;Extrapolate, acculturation, infiltration,
vulnerable, perspective

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ENVIRONMENTAL IMPACT
Tourism development in many places has led to the deterioration in environmental quality since the
onset of mass tourism. In many destinations, tourism development has taken place with little regard for
natural environment. The effect of mass tourism and increasing awareness of human impact as
environment led to a generalization that nature is not an in exhaustive resource. For some destinations
the environmental effects of tourism have led to direct threat to the industry, as the success in attracting
tourist lead to negative impact on the attraction of environment. This section discusses the major
environmental impact of tourism. The environmental effect of tourism in developing countries is among
least studied one. However they have attracted considerable attention in developed countries
where high intensity usage and demand by tourism has transformed many land farms.
Tourism bought economic prosperity which adversely affected environment. In search of holidays
Million of tourists are crowding the popular beach resorts, mountain treks, jungles and at ancient
monuments. The population of Goa is just one million but over one million visitors visit every year in
Goa. Its beaches are crowded at peak season. The beautiful Dal Lake of Kashmir has been reduced to
half of its size in less than 50 years by human encroachments. 30 years ago, Manali in Himachal Pradesh
was a small hill resorts catering to the needs of people who loved nature. Now it is an overcrowded city
with ugly multi storied buildings. Precious wild life – tigers, lions and panthers have become virtually
extinct in Indian jungles due to hunting and poaching. The Ladakh in Kashmir is jammed with litter
left by tourists. Too many hotels on the lovely beaches of Goa have created anti-tourism feelings among
the local people. Modern tourism involves thousands of visitors and demand massive infrastructure.
Development takes many shapes and forms – roads, hotels,restaurants and transport facilities – altering
ecological balances of destinations. The opening of new roads leads to the exploitation of remote forest
areas, which provided green cover and timely rains for our fields. The rush to build tourist facilities at
the most attractive and convenient sites changes the ecosystem and affects the natural beauty of the
place. The upsurge of world tourism has changed the situation and caused alarm all over the world. The
environmentalists who want to save nature from destructions and motivate people to take care the future
of this earth. Hunter and Green provide an overview of the major potential impact of tourism on the
natural environment. The following Table illustrates the wide range of potential consequence of tourism
development in specific habitats.

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Major impacts of tourism on natural environment

Tourism destination comprises a wide diversity of environment from purpose built resorts to remote
natural areas. The broad categories of impact that may affect destinations are: -
Inappropriate development
Loss of habitat
Extinction of species
Pollution
Loss of spirit
According to European Environment Agency tourism crates following environmental problems: -
Waste disposal
Reducing level of biodiversity
Pollution of inland waters
Pollution of marine and coastal zones.
There are two types of environmental impacts, which occur in destination development: -
Those affecting the integrity and composition of the natural environment.
Those affecting the tourist experiences of the environment.

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The environmental impact associated with tourism can also be considered in terms of their direct,
indirect and induced effects. It is not possible to develop tourism without incurring environmental
impacts, but it is possible,with correct planning, to manage tourism development in order to minimize
the negative impacts while encouraging positive impacts. The direct environmental impacts
of tourism include following positive effects.
Preservation ad restoration of historical buildings and sites.
The creation of national parks and wild life parks
Protection of coral reefs and beaches.
Maintenance of forests.
The following are the major environmental impacts of tourism in destinations.
Pollution
On the negative side, tourism may have direct environmental impact on them quality of water air and on
noise levels. Sewage disposals into water will add to pollution problems and the use of powered boats on
inland waterways and sheltered seas can make water impure and thereby destroy precious
marine or water resources. Increased usage of the internal combustion engine for tourist transport and oil
burning to provide the power for hotels air conditioning and refrigeration units pollute the air quality and
noise level may be dramatically increased in urban areas through increased road, rail and traffic.
Inappropriate development
Tourism development may be seen as inappropriate where it fails to consider the sensitive natural
environment. Large tracts of coastal regions around the world are now covered by urban sprawl to cater
mass tourism market. It had robbed the shores of natural features, displaced headlands and
harbours with badly made structures. These types of development occur as a result of short term
planning in environmental terms. Tourism creates pressure for development to meet visitor needs and
expectations. Problems occur if facilities are not constructed in harmony with the local environment.
Loss of natural habitats and wild life Development facilities and subsequent tourist use may result in
rapid on physical deterioration of both natural and man made environments that have serious
consequences. Hunting and fishing can have obvious impact on wild life environment. Sand dunes of
desert can be damaged and eroded by over use; vegetation can be destroyed ancient monuments may be
worn away or disfigured and damaged and the improper disposal of litter can detract the
aesthetic quality of environment and harm precious wild life. These are just few examples of direct
negative environmental impacts. The economic impact associated with tourism development can be
direct and indirect, and the same is true of environmental impacts. The tourism activity requires
production of output from a diverse range of industries, including those that do not supply tourist goods
and services directly, then the environmental impact associated with the output and production process
of those industries should also be considered. Thus increase in tourism activities increases the demand
for more and more hotels and restaurants and other infrastructure, put pressure on construction industry
and natural resources and ecology.
CHECK YOUR PROGRESS:
Activity 1-Write down examples for some of the famous destinations, which are affected by tourism.
Activity 2-Find the meaning of the following words;Exhaustive, poaching, litters, sprawl, ecology
Activity 3-How has pollution affected life of people in your area?
Activity 4-Pollution is the major problem faced by all cities. Can you suggest remedies for pollution of
land, water, and air?
23.4 ECOTOURSM
In search for new tourism products, travellers and supplies are today seeking to reshape the meaning of
nature as a tourism attraction. New products have been developed in order to guarantee quality of a
nature-experience and to protect the natural and cultural base for business and generation of visitors.
The nature based tourism, which focuses on experiencing flora and fauna in natural settings, eco-
tourism, which is a broader environmentally friendly concept. The environmental movements have

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boosted awareness of the importance of natural resources for tourism development. Environment quality
is important for all forms of nature tourism. Environmental quality management of a
tourist destination involves protection environmental information ensures and environmental quality.
Environment friendly tourism tries to minimize the negative impacts of tourism- social, cultural and
environmental that (we have discussed in the beginning of this chapter) maximizes the positive
impacts and to incorporate environmental education, ethics and log- turn social and economical benefits
for the local population. Ecotourism has grown as a consequence of the dissatisfaction with
conventional forms of tourism, which have in a general sense, ignored social and ecological elements.
The eco-tourism a more responsible forms of tourism needs the following characteristics.
Minimum environmental impact
Minimum impact and maximum respect for host cultures.
Maximum economic benefit to host country’s grassroots and
Maximum recreational satisfaction to participating tourists.
The concept of development ecotourism grew as a culmination of issatisfaction with governments and
society’s negative approach to evelopment especially from an ecological point of view.
NATURE TOURISM AND ECO-TOURISM
Modern nature based tourism focuses on experiencing flora and fauna is atural settings and occurs in
such forms as whale watching, trips to Rain and habitat of large mammals and viewing sceneries in
naturalparks or virgin areas. Nature tourism includes all forms of mass tourism,
eco- tourism that use natural resource - including species, habitat, landscape, senery and salt and fresh
water features. Nature tourism is travel for the urpose of enjoying undeveloped natural areas or wild life.
Today the term nature tourism is often synonymously with ecotourism lthough it shares only some of the
ecotourism requirements. While nature based tourism relates to nature, its attractiveness, and the visitor
experience n natural settings,ecotourism akes unspoiled natural and socio-cultural attractiveness into
account, further Ecotourism is closer to sustainable tourism since it also takes care of environmental
natural and social and ultural impacts.
The concept of ecotourism refers to environmentally responsible travel and visits to relatively
undisturbed natural, cultural areas that promote environmental education, management and
conservation, while providing for the beneficially active socio-economic involvement of local
population. Eco-tourism is low impact nature tourism which contributes to the maintenance of specie
and habitats either directly through a contribution and provides revenue to the local community.
Characteristics of Eco Tourism
Eco tourism inspired primarily by natural history of an area, including its indigenous cultures.
Eco-tourists visit relatively undeveloped area in the spirit of preciation, participation and sensitivity.
Eco tourist practices non- consumptive use of wild life natural resources and contributes to the visited
area through financial means.
Directly benefiting the conservation of the site
Economic well - being of the local residents.
The visit should strengthen the tourist appreciation of and dedication to conservation issues in general,
and to specific needs of the local
Eco tourism also implies a managed approach host community regions, which commits itself to
establishing and maintaining the sites with the participation of local residents.
And using the proceeds of the enterprise to fund the area land anagement as well as community
development. hus Eco tourism is responsible travel to natural areas, which conserves the environment
and improves the welfare of local people. Eco-tourism is a sustainable form of natural resource-based
tourism that focuses primarily as experiencing and learning about nature, and which is ethically
managed to be low impact and non- consumptive, and locally oriented. It typically
occurs in natural areas, and should contribute to the conservation and or preservation of such areas. In
many countries, eco tourism is policy consideration and initial stage, and a policy and related actions are

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increasingly required to ensure that tourism development is consistent with the needs of both local
people and environment. Tourism policy and eco ourism policy covers wide spectrum of concern
related to the implementation of tourism programmes. The tourism policy establishes strategies,
objectives and guidelines to be followed for sustainable tourismdevelopment. A strategy for tourism
development is as follows: -
Identifying objectives.
Establishing priorities.
Placing in a community context the rates of Government, tourist organisations, and local govt. private
sector business ensure development of human resources.
Establishing coordination and implementation of agreed programmes to
Monitoring and evaluation.
ECO TOURISM IN INDIA
Today, Eco-tourism is the fastest growing segment of the tourism industry attracts between 40-60% of
all international tourists. The diversity of India is to be seen not only is its people, culture, religion,
language and life style, the diversity starts from land itself, which is made up of snow peaks of
Himalayas, beautiful valleys, tropical rainforests of south and north east blistering not deserts of north
western India and beautiful western and eastern coastal regions. Each diverse geographical region
generates different picture and exploring them provide a unique experience. Now all there are packaged
for tourist to provide Eco- friendly holidays in India. We are promoting tourism but while promoting
tourism to eco sensitive areas, the emphasis is to control the volume so that the fragile nature of the area
is not disturbed. The whole objective of eco-tourism is to have purposeful travel to natural areas to
understand culture, history of environment, taking special care not to alter the integrity of eco- system
while utilizing the economic opportunities that make conservation of natural resources beneficial to
local people. Thus travel to these areas enlightens, educates and revives the tired soul of the Eco-tourists
and as the other hand provides a basis of economic upliftment of the local people, tribes or other stake
holders directly dependant on the natural heritage. This strong relationship is primarily
targeted through our eco-tourism Ministry of tourism has formulated Eco-tourism guidelines for
regulated and sustainable tourism, which have focused on to respect the frailty of the earth and to leave
behind the rich natural heritage for the future generations to enjoy. The guidelines are as follows: -
Leave only foot points, take only photographs but do not take away from natural areas and heritage
monuments.
Encourage local culture, respect local traditions act help in their conservation efforts
Do not buy products from endangered plants or animal
Always follow designated trails so that animals & plants are not disturbed
Try to respect natural habitat and support those products, which promote the cause of environment
protection etc. All these have been discussed in eco-tourism guidelines of ministry of tourism. The tour
operators who operate tours in fragile nature zones have adopted ASTA (American Society of Travel
Agents) for the eco-tourism businesses. (Gaur Kanchilal) The basis objective of eco-tourism plan is to
attain sustainable development of India’s natural, cultural and ancient heritage without causing any
adverse effect. The ecotourism development harmonies with local population skills, products as well as
lively hoods and enhance the value of environment which will make them authority of conservation.
Ecotourism as discussed above is a joint venture which involves may stake holders: - local people, tour
operators, hotel restaurant owners, and government agencies, it is essential to have public private
partnership with a clear cut demarcation of the responsibilities, commitments and rights of all
the parties involved in the development. The local characters of these sites are to be kept in mind while
planning for future development work. Thus documentation and mapping of the sites and their unique
features are a prerequisite. The projects are to be prioritized and plan to be implementation
with proper allocation of funds. The eco tourism addresses all types of environmental problems: -
pollution – air, water, sound, soil and waste management for quality life through regulated activities to

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save the environment. For this purpose the industry has to organise training programmes and borrow
knowledge from experts to deal with all issues, regularly monitor and measure the impact will ensure
the achievement of environmental conservation. Being latecomer in tourism we have learnt enough from
the mistakes of developed countries and have imitated proper steps for sustainable eco tourism
development.
CHECK YOUR PROGRESS
Activity 1
Ecotourism has emerged due to the adverse effects of mass tourism. Can
you point out the adverse impact of tourism?
Activity 2
Differentiate between nature tourism and Eco-tourism

Activity 3
You are going for a trip to a ecologically sensitive destination with your family. As the leader of the
group what direction would you give to them when you enter the place?

23.4 SUSTAINABLE TOURISM

We have discussed the meaning, the concept, and basic principles Sustainable tourism,
The tourism development must be sustainable environmentally, socially, economically and culturally.
Eco tourism is a form of sustainable tourism. Sustainable tourism must ensure quality of life of people,
good experience to the tourists and maintain quality of environment alive to the requirements
to protect the haphazard growth in sensitive areas, government has put number of legislation such as the
forest conservation Act 1980, Wild Life (Protection Act) 1972, Environment Protection Act 1986,
Coastal Regulatory Zone Act 1991.
The rationale for sustainable tourism
The tourism which is sustainable should stimulate awareness of tourism impacts be well planned with
strategy identifying limits of acceptable change/ carrying capacities.
Generate direct and in-direct local employment
Support viability of local enterprises
Provide income, which is retained in the local area as much as possible.
Support diversification in local and regional economies.
Support existing infrastructure and improve local services
Respect the integrity of local environment, culture, people,infrastructure and character of a area
Promote local pride
Assists in conservation of works in the natural and built environment
Be carefully monitored with strategic for minimising negative impacts in place.
Ministry of tourism in its tourism policy 1982 and it its guidelines to eco-tourism have attempted to
achieve sustainability in tourism activities by clearly indicating that the key player in the eco tourism
business are the State Governments, Local Authorities, the developers and operators, the visitors and
local community. Each of these has to be sensitive to the environment and local traditions and follow set
of guidelines for successful development of sustainable tourism.The areas of responsibilities are
indicated as under; (adapted from Gaur Kanchilal)

THE GOVERNMENT’S
The management plan for each area should be prepared through professional landscape architects and
urban planners and in consultation with the local community as well as others directly concerned.
Integrated planning should be adopted to avoid into sectoral and cross-sectoral conflicts
The architectural programmes for eco- tourism centres should include controlled access points and
cabins, roads, self- guided nature trails, transportation options, interpretive centres, signs, observations

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towers and blinds, adequate but unpretentious lodging and dining facilities, docks, garbage disposal
facility etc, as per requirement, living quarters and facilities for project personnel also have to be
provided.
Structures creating visual pollution, unaesthetic values and non- compatible architecture should be
controlled.
Exclude developments in geologically unstable zones and define development and buffer zones after
proper environmental impact assessments.
Establish standards, building codes and other regulations.
Specify environmental, physical and social carrying capacities to limit development activities.
Ensure continuous monitoring of adverse effects of tourism activities and initiate suitable corrective
measures.
Recognise and award quality labels to eco- tourism operators.
Provide visitor information and interpretation services covering particularly (i) what to see and (ii)
how to see and (iii) how to behave. It can be by way of brochures, leaflets,specialized guides, self-
guided trails, wilderness trails,visitor information centres etc.
Prepare and widely distribute codes of conduct to all visitors.
Launch training programmes on eco tourism to administrators, planners, operators and general public.
DEVELOPERS AND OPERATORS
Respect and follow the planning restrictions, standards and codes provided by the Government and
local authorities.
Implement sound environment principle through self-regulation.
Practice environmental impact assessment for all new projects and conduct development of
environmental improvement programmes.
Be sensitive to conservation of environmentally protected or threatened areas, species and scenic,
aesthetic,achieving landscape enhancement wherever possible.
Ensure that all structures are unobtrusive and do not interfere with the natural ecosystem to the
maximum extent.
THE LOCAL POPULATION
Realise and respect the value of environment, flora and fauna, monuments and cultural heritage.
Practice conservation of nature and culture as a way of life.
Establish guidelines to protect valuable local resources and foster tourism development.
Realise and react to the potential threat of investors who see opportunities for development but lack
sensitivity to local value.
Become effective nature guides and conservationists of nature areas by enhancing the practical and
ancestral knowledge of the natural features of the area.
Be friendly with the visitors and help them to practice eco-tourism codes.
Recognize the optimal environment capacity and sociological use limits on the site in creating tourist
facilities. They should also take into account safety and convenience of tourists.
Buildings should be designed strictly on functional and environmental considerations and avoid over
construction.
Local materials and designs should be used in all constructions to the extent possible.
Physical planning, architectural design and construction of tourist facilities should employ eco-
techniques like solar energy, capture and re-utilization of rain water, recycling of garbage, natural cross
ventilation instead of air-conditioning,a high level of self-sufficiency in food generation through
orchards, ecological farms, aquaculture, etc.
Energy and water saving practices should be employed to the extent possible. Also practice fresh
water management and control sewage disposal.
Control and diminish air emissions, pollutants and noise levels.

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Control and reduce environmentally un-friendly products such as asbestos, CFCs, pesticides and toxic,
corrosive,infectious, explosive or flammable materials.
Respect and support historic or religious objects and sites.
Provide information and interpretive services to visitors especially on attractions and facilities, safety
and security,local customers and traditions, prohibitive rules and regulations, self-conduct and
behaviour, etc.
Ensure adequate opportunities to visitors for communion with nature and native cultures.
In marketing ecotourism products, customers should be given correct information, as the visitors who
appreciate ecotourism products are also environmentally aware target groups.
Ensure safety and security of visitors and inform them about precautions to be taken.
Exercise due regard for the interests of local population,including their history, tradition and culture
and future development.
Involve the local community in various activities and vocations.
THE VISITORS
Contribute to the conservation of any habitat of flora and of any site whether natural or cultural, which
may be affected by tourism.
Make no open fires and discourage others from doing, so. If water has to be heated with scarce
firewood, use as little as possible. Where possible, use kerosene or fuel efficient wood stoves.
Remove litter, burn or bury paper and carry back all nondetergents in streams or springs. If no toilet
facilities are available, try to comfort yourself at least 30 meters away from water sources and bury or
cover the waste.
Plants should be left to flourish in their natural environment and resist from taking away cuttings,
seeds and roots.
Help the guides and porters to follow conservation measures.Do not allow the cooks or porters to
throw garbage in streams or rivers.
Respect the natural and cultural heritage of the area and follow local customs.
Respect local etiquette and wear loose, lightweight clothes in preferences to revealing shorts, skimpy
tops and tight fitting action wears. Respect privacy of individuals and ask permission and use restraint in
taking photographs of others.
Respect holy places and never touch or remove religious objects.
Strictly follow the guidelines for personal safety and security.(Gaur Kanchilal)
Success stories of sustainable tourism achievers are to be encouraged and made known. It is the essence
for improving the quality of life. In India in the Tourism Policy there is focused role of tourism in socio-
economic development of the backward areas weaker sections, women’s and artisans and the goals to be
pursued in tune with the goals of the enrichment of the environment and eco- system and recognized the
role of tourism as a potent global force for nature international understanding and for creating
awareness for sustainable development.
CHECK YOUR PROGRESS
Activity 1
Which are the laws passed by government to protect environment?
Activity 2
What are the steps to be taken by the government while developing tourism?
Activity 3
As a member of the local community what measures will you take to
educate your friends while promoting sustainable tourism?

23.8 REVIEW QUESTIONS

1. Explain the impact of tourism on social and cultural spheres.

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2. What do you mean by ecotourism?
3. Write a short note on ecotourism in India
4. How is environment affected by tourism?
5. Explain briefly the steps to be taken by the various agencies for the
development of sustainable tourism.

How many accommodation types really are? We don’t know exactly, but there’s certainly one to fit
every budget and taste out there. They fall into many categories and vary widely in size, style, services, and
characteristics, sometimes from one country to another, and sometimes from city to countryside.
Hotel - An establishment that provides travelers with paid accommodation and other guest services. Depending
on size, location, and amenities, hotels are generally rated from one-star to five stars, but letter grading (from “A”
to “F”) and other rating schemes are also used to categorize hotels across the world.
Hostel - Ideal for budget travelers and backpackers, a hostel is an inexpensive type of accommodation, usually
with shared bedrooms and communal facilities.
Motel - Originally designed for motorists, motels are roadside hotels equipped with minimal amenities and
ample parking areas for motor vehicles.
Cottage - In today’s tourism sector, the term cottage is used to describe a small vacation house, typically in a
rural area.
Chalet - Chalets are wooden Alpine-style buildings commonly found in and around mountain resorts.
Boutique Hotel - Often furnished in a themed, individual style, boutique hotels are intimate in size and focus on
providing guests with high-quality, personalized experiences. (See also What is a Boutique Hotel)
Mansion - Usually built for the wealthy, mansions are large, opulent houses that generally pay homage to a
historic architectural style.
Lodge - Although the word ’lodge’ has many different meanings, one of them refers to a small rural house used
by people on holiday or occupied seasonally by sports enthusiasts (ski lodge, hunting lodge).
Riad - A traditional Moroccan house built around a central courtyard, often converted into an intimate hotel or
guesthouse.
Resort - Although a resort is primarily known as a destination frequented by vacationers in search of relaxation
and entertainment, the term is also used to describe a full service lodging establishment that offers extensive
guest services and recreational facilities.
Igloo - A typical Eskimo house, an igloo is a dome-shaped snow structure meant to provide temporary or
permanent shelter in cold climates.
Villa - Originated in Roman times, a villa is often described as a luxurious country residence.
Treehouse - Usually designed for recreational purposes, a treehouse, or tree house, is a structure built or placed
among the branches of a tree.
Apartment - Also known as flat (British), an apartment is a self-contained accommodation unit housed in a
building containing a number of such units.
Ice Hotel - An ice hotel is a non-permanent hotel constructed from ice and snow in areas with sub-freezing
temperatures.
Camp - A collection of tents, huts, or other temporary structures used for travelers to lodge in.
Pop Up Hotel - A new breed of accommodation, pop-up hotels are temporary lodging establishments, usually set
up for specific events.
Bed and Breakfast - A Bed and Breakfast (B&B) is an intimate, independently run lodging establishment, where
breakfast is included in the room rate.
Inn - A small establishment offering overnight accommodation, food, and drink to travelers.
Finca - A Spanish rural property, usually characterized by traditional architecture and an agricultural heritage.
Penthouse - An apartment situated on the highest floor of a building, commonly appointed with luxury
amenities.

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Chateau - In Bordeaux, the term chateau is synonymous with vineyard estates, but it can also be used to
describe a French country house or castle.
Manor - An English manor is a large historic house or mansion with land, formerly owned by nobility.
Pension - A type of guesthouse or B&B, where in addition to lodging and breakfast, guests are also offered lunch
and dinner. Pensions are usually family-run and cost less than other accommodation options.
Townhouse - A townhouse is a residential multi-level property that is usually connected to a similar unit by a
common sidewall.
Yurt - Popular in Mongolia, Siberia, and Turkey, yurts are circular tents covered with felt or skins, and appointed
with conical roofs.
Tent - Used outdoors, a tent is a portable shelter made of fabric and supported by a frame or poles.
Dome - A dome is a roof or building with a hemispherical form. Many of today’s sustainable hotels offer cozy
accommodation in eco-friendly domes made of glass, wood, snow, or other materials.
Pod - In terms of lodging, a pod is a prefabricated stand-alone structure that provides basic accommodation.
Pousada - Pousada is the Portuguese term for guesthouse, inn, or historic independently-owned hotel. They
usually have a traditional restaurant and offer guests an authentic local experience.
Relais - A relais is the French version of a roadside lodge or resting place.
RV - Usually used for traveling, an RV is a recreational vehicle outfitted with the amenities found in a home,
including bathroom, kitchen, and sleeping facilities. Depending on region, RVs are also called caravans, camper
vans, or motorhomes.
Castle - A fortified building or group of buildings built across Europe and the Middle East during the medieval
period. Castle hotels offer royal-style accommodation in sumptuous historic surroundings.
Palace - Unlike castles, palaces are not fortified, but they still are royal residences characterized by an
exceptional level of grandeur. Some of the most spectacular palaces converted into luxurious hotels can be found
throughout Asia and Europe, especially India and Italy.
Tented Safari Camp - A tented safari camp is a permanent campsite of large accommodation units, usually with
canvas walls, solid high-quality furnishings, en-suite bathroom facilities, and private decks for observing wildlife.
Situated throughout Africa, they range from comfortable to ultra-luxury and offer a wide range of safari based
activities.
Yacht - A type of luxury recreational boat offering every modern convenience. They are classified as
sailing yachts and motor yachts, and are available in a vast range of sizes, styles, and functions.
Farmhouse - Although their styles vary by region, farmhouses are houses attached to a farm, often characterized
by vernacular architecture.
Extended Stay Hotel - Extremely popular throughout the US, extended stay hotels offer the comforts of a
traditional home along with discounted rates for guests interested in long-term stays.
Private Island Resort - Ideal for honeymooners and travelers in search of luxury and seclusion, private island
resorts are some of the most exclusive accommodation types out there.
Cave Hotel - Cave hotels are exactly what the name implies – hotels built into natural cave formations,
commonly with underground rooms. Many cave hotels can be found in Turkey (Cappadocia) and Greece.
Guesthouse - A guest house or guesthouse is a private house offering inexpensive accommodation to tourists.
Poshtel - A new trend in travel, poshtels are a sort of upscale hostels with a focus on chic design, art, and high-
tech amenities.
Business Hotel - Catered primarily to business travelers, business hotels are strategically located (downtown, in
business districts, or close to major business centers) and come equipped with corporate facilities such as
meeting and conference rooms, Internet access, and catering options.
Design Hotel - A design hotel is a stylish and intimate hotel with an emphasis on design, service, and luxury
facilities. Their rooms are exquisitely decorated and often packed with the latest technology features.
Hacienda - The term hacienda is used to describe a ranch or a main house in a landed estate in Spanish
speaking-countries.
Eco Hotel - An eco hotel is an environmentally friendly accommodation aiming to promote sustainable tourism
and green living through the use of renewable energy sources, recycled materials, and organic locally-sourced
produce. Their philosophy is to minimize the impact on the environment.

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Capsule Hotel - A big hit in Japan, the capsule hotel is a unique type of hotel that usually provides cheap, basic
overnight accommodation in a number of teeny-tiny functional rooms called “capsules”.
Aparthotel - A smart choice for long-term accommodation, aparthotels or apartment hotels combine the
comfort and independence of a private apartment with the services of a hotel.
Parador - Paradors are Spanish government-operated hotels, frequently located in former castles, monasteries,
or other beautiful historic settings.
Masia - A masia is a traditional Catalan country house.
Love Hotel - A category of hotels that offer short stays for couples looking to engage in sexual activities. Love
hotels are particularly popular in Japan.

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