Tourism in India: Potentials, Challenges and Opportunities: Dr. T. Subash
Tourism in India: Potentials, Challenges and Opportunities: Dr. T. Subash
Tourism in India: Potentials, Challenges and Opportunities: Dr. T. Subash
ABSTRACT The travel and tourism industry has emerged as one of the largest and
fastest growing economic sectors globally. Its contribution to the global Gross Domestic
Product and employment has increased significantly. The Indian tourism industry has
emerged as one of the key drivers of growth among the services sector in India. Tourism in
India is a sun rise industry, an employment generator, a significant source of foreign
exchange for the country and an economic activity that helps local and host communities.
Rising income levels and changing lifestyles, development of diverse tourism offerings and
policy and regulatory support by the government are playing a pivotal role in shaping the
travel and tourism sector in India. However, the sector is facing challenges such as lack of
good quality tourism infrastructure, global concerns regarding health and safety of tourists,
disparate passenger/road tax structures across various states and shortfall of adequately
trained and skilled manpower. Concerted efforts by all stakeholders such as the central and
state governments, private sector and the community at large are pertinent for sustainable
development and maintenance of the travel and tourism sector in the country.
Key words: Infrastructure, inclusive growth, Skill development.
1. Introduction
The travel and tourism industry has emerging as an important category of
emerged as one of the largest and fastest services exports worldwide.
growing economic sectors globally. According
2. Tourism Industry in India
to the UNWTO (2013), tourism’s total
The travel and tourism sector holds
contribution to worldwide GDP is estimated
strategic importance in the Indian economy
at 9 per cent. Tourism exports in 2012
providing several socio economic benefits.
amounted to USD 1.3 trillion accounting for 6
Provision of employment, income and foreign
per cent of the world’s exports. New tourist
exchange, development or expansion of other
destinations, especially those in the emerging
industries such as agriculture, construction,
markets have started gaining prominence
handicrafts etc. are some of the important
with traditional markets reaching maturity.
economic benefits provided by the tourism
Asia Pacific recorded the highest growth in
sector. In addition, investments in
the number of international tourist arrivals in
infrastructural facilities such as
2012 at 7 per cent followed by Africa at 6 per
transportation, accommodation and other
cent. Increasingly, travel and tourism is
tourism related services lead to an overall
development of infrastructure in the
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IJRAR Impact Factor 3.215
economy. According to the World Economic 2222 billion in the year 2013 to INR 6818
Forum’s Travel and Tourism Competitiveness billion by 2023. The travel and tourism sector
Report 2013, India ranks 11th in the Asia supported 25 million jobs in 2012 directly
pacific region and 65th globally out of 140 related to the tourism sector. Constituting 4.9
economies ranked on travel and tourism per cent of the total employment in the
Competitiveness Index. India has been country in 2012, this is expected to amount to
witnessing steady growth in its travel and 31 million jobs by 2023. Capital investment in
tourism sector over the past few years. Total the travel and tourism sector in 2012 was
tourist visits have increased at a rate of 16.3 estimated at INR 1761.4 billion amounting to
per cent per annum from 577 million tourists approximately 6.2 per cent of total
in 2008 to 1057 million tourists in 2012. investment in the Indian economy. It is
The travel and tourism sector directly expected to increase by 14.2 per cent in 2013,
contributed INR 1920 billion to India’s GDP in and witness further annual growth rate of
2012 reflecting a growth CAGR of 14 per cent 10.5 per cent by 2023 amounting to INR 5459
since 2007. This is forecasted to grow at a billion.
CAGR of 12 per cent from the estimated INR
2001 2.54 (-) 4.2 683.4 114.5 51 12 3198 (-) 7.6 15083 (-) 3.5
2002 2.38 (-) 6.0 703.2 123.4 54 12 3103 (-) 3.0 15064 (-) 0.1
2009 5.17 (-) 2.2 883.0 181.1 41 11 11136 (-) 5.9 53700 4.7
to its growth. Policy actions such as 100 per sector in India. The hospitality sector alone
cent FDI, plans for extension of visa on arrival witnessed a shortfall of 0.5 million employees
scheme to a larger number of countries and a during 2011-2012 which is expected to rise
five year tax holiday for 2, 3 and 4 star to 0.8 million by 2017 and 1.1 million by
category hotels located around UNESCO 2022 as per the target growth levels. There
World Heritage sites among others are exists a forecasted requirement of around 2.8
expected to drive future growth. million employees for restaurants, 4.1 million
3.7 Host nation for major international employees for hotels and 0.3 million
events employees for the travel trade segment by
India is fast emerging as the preferred 2022 resulting in an incremental requirement
nation for hosting of major international of a total of 2.7 million employees for the
events such as the Commonwealth Games tourism sector as compared to 2012
held in 2010. Meetings, Incentives, employment figures. An assessment of the
Conventions and Exhibitions (MICE) tourism training infrastructure estimates a total of
is on a rise on account of increased business 337 training institutes in the Hospitality
travel in India. sector and 101 travel and tour institutes
offering courses related to ticketing and
4. Key Issues in Tourism Sector in India
tourism as in March 2010 which appears to
4.1 Training and Skill Development
be significantly low.
Travel and tourism sector in India
As per a study by the Ministry of Tourism,
includes employees such as inbound tour
only 50 per cent of the employees in the key
operators, travel agents, tourist transport
functional domains of hotels are fully trained
operators, adventure tour operators and
with this statistics reducing to 35 per cent for
domestic tour operators in the travel trade
restaurants and other eating outlets. This
segment and those employed in hotels and
necessitates the immediate need for formal
restaurants in various functions of front
training especially for the hospitality sector
office, F&B and housekeeping among others.
employees. In addition, proper selection of
While the tourism sector in India is targeted
hotel management students, increased focus
to grow at an annual rate of 12 per cent
on grooming and communication skills, on
during 2011-2016, adequate training and
the job training, courses in foreign languages
skill development infrastructure and hence
and standardization and monitoring of
availability of trained manpower has not kept
curricula in private institutions may be
pace with growth. This has led to an existing
required.
as well as forecasted shortfall of trained
manpower in various segments of tourism
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4.2 Safety and Security of Tourists stakeholders through electronic and print
Safety and security of tourists is of campaigns for ensuring the safety and
paramount importance in any country as it security of tourists. Provision of funds under
majorly impacts the inflow of foreign tourists the Central Financial Assistance to states of
in the country. Domestic tourist movements Rajasthan, Uttar Pradesh and Andhra Pradesh
are impacted in states and tourist locations for setting up of Tourist Facilitation and
where tourists consider a threat to their Security Organization on a pilot basis and
safety and security. It holds special issuance of guidelines for adoption of code of
significance for India which has been ranked conduct for safe and honorable tourism
at a low level of 74 amongst 140 global issued to hotels, guides, tour operators and
economies on safety and security parameters other professionals and institutions are other
as per the World Economic Forum’s Travel important steps. With rise in number of
and Tourism Competitiveness Report 2013. women travelers both in terms of domestic as
Government has made concerted efforts well as foreign tourists, ensuring their safety
towards increasing the safety and security of has emerged as a major concern.
tourists in India. One of the main efforts in The Ministry of Tourism has launched a
this direction includes setting up of a special sensitization campaign, ‘I respect women’,
tourist police. Following Kochi in Kerala with an aim to raise awareness about the
where the first tourist police station in the need for sensitive behavior towards women
country was set up in 2010, several other and to provide greater security. Guidelines
states such as Andhra Pradesh, Delhi, Goa, issued at the 2012 APEC Tourism Ministerial
Himachal Pradesh, Jammu and Kashmir, Meeting towards ensuring tourist safety may
Karnataka, Kerala, Maharashtra, Madhya also be implemented:
Pradesh, Odisha, Punjab, Rajasthan, and Uttar (i) Encouragement of risk assessment and
Pradesh have deployed Tourist Police in one management by the private sector before
form or the other. The indicative tasks of the commencement of travel.
tourist police include ensuring safety and (ii) National tourist administrations of APEC
security of tourists by providing them economies to compile and exchange best
information on safe lodging and practices of establishing appropriate
transportation, effective and fast handling of regulations.
enquiries and complaints, regular (iii) Maintain a transparent and balanced
surveillance and immediate action in case of mechanism for generating travel
any identified misconduct. advisories.
The Tourism Ministry is also making (iv) Develop online travel registration tools
efforts towards sensitizing various for collecting data on outbound tourists.
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IJRAR Impact Factor 3.215
(v) Put in place administrative are devoid of such facilities which may
arrangements to get quick access to hamper the growth of rural tourism in India.
tourists’ data without compromising the There is also a wide state wise disparity in
data privacy for identifying tourists in terms of medical infrastructure availability.
times of emergency. Several issues surround tourist destinations
(vi) Regulation and monitoring of various in the country. Lack of clean drinking water
service providers in tourism value chain kiosks, lack of clean toilet facilities, lack of
to ensure compliance and safety. While first aid and medical facilities in immediate
steps have already been initiated in this vicinity especially in hilly and remote areas
direction, there is a need for ensuring and lack of good quality transportation
effective implementation of the policies ambulances to medical centres in case of
and actions drafted to ensuring safety emergency are some of the major concern
and security of tourists. areas.
4.3 Healthcare for Tourists The Ministry of Tourism has taken steps
There is a significant need for for improving sanitation facilities by asking
improvement in ensuring sound health of the tourism departments of all states and
tourists in India especially considering the union territories to establish adequate
low rank of 109 for India in terms of health wayside amenities. Helicopter services have
and hygiene standards as compared for 140 been proposed for emergency medical
world economies. Indicative parameters situations. Steps are also being taken to
reveal dismal results. Physician density at 0.7 provide good quality medical facilities at
per 1000 population and 9 hospital beds for tourist destinations. However, an overall
every 10,000 people in India are extremely development of medical infrastructure in the
low for a country that considers tourism as a country is required for provision of a safe and
sector of high importance for the economy. healthy experience to tourists visiting India.
Only 34 per cent of the population in the The Central Government has given priority to
country has access to improved sanitation healthcare and is making significant
services and 8 per cent of the population still investments to improve the infrastructure
does not have access to clean drinking water. and delivery mechanism jointly with the state
Urban areas in India have excellent or good governments through National Rural Health
medical facilities such as long distance road Mission. It has decided to increase healthcare
ambulance, air ambulance, state of the art expenditure to 2.5 per cent of GDP by the end
hospitals meeting international standards, of the 12th Five Year Plan by 2017. In
pharmacies etc. However, rural areas in India addition, several precautionary measures
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may be taken in order to avoid instances of State wise comparison reflects wide disparity
tourist illness in the country by: with Maharashtra and Delhi leading at more
(i) Providing information on important than 0.25 million aircraft movements in 2010
vaccinations. as compared to Punjab, Manipur and
(ii) Increasing awareness on importance Jharkhand with less than 0.01 million aircraft
of consuming food and water from movements.
organized vendors with clean and 4.4.2 Road Transport Infrastructure
hygienic premises. While India is ranked high (30) in
(iii) Timely and transparent communication terms of road density per million populations,
of travel advisories in situations of quality of roads is unsatisfactory especially in
disease outbreaks. rural areas. In addition there is a lack of
(iv) Careful screening of tourists at airports feeder stations even on proper roads with not
for any kind of existing enough stops for pick up. The national and
disease/infection state highways account for 2 per cent and 4
4.4 Infrastructure per cent respectively of the total roads in
As per the World Economic Forum’s India. Hence, just 6 per cent of the overall
Travel and Tourism Competitiveness Report roads in India accounting for 80 per cent of
2013 for 140 world economies, India’s air the total traffic signify the need for
transport infrastructure, ground transport improvement in the national road and
infrastructure and tourism infrastructure highway network. Lack of parking facilities,
have been ranked 39, 42 and 95 respectively police stations and tourist information
indicating considerable scope for centres in vicinity of tourist destinations is
improvement. Other infrastructure another cause of concern. Lack of public
requirements such as availability of good amenities such as clean toilets and clean
quality and reasonably priced hotel rooms, drinking water kiosks poses health concerns
parking spaces, tourist cars etc. are also a for tourists. Lack of proper road signage
cause of concern. Some of these have been (visibility, language etc.) causes trouble in
discussed below. identifying locations especially to the tourists
4.4.1 Air Transport Infrastructure travelling by road.
While the overall airport 4.4.3 Rail Transport Infrastructure
infrastructure in India is ranked well, quality India enjoys good quality rail
of infrastructure, airport density per million infrastructure, however there is scope for
population and number of departures along state wise improvement. While Northern
with rising airfares are a cause of concern. states such as Delhi and Punjab enjoy railway
route length of 12.3 km and 4.2 km per 100
14 IJRAR- International Journal of Research and Analytical Reviews Research Paper
[ VOLUME 2 I ISSUE 4 I OCT. – DEC. 2015] E ISSN 2348 –1269, PRINT ISSN 2349-5138
IJRAR Impact Factor 3.215