Tourism in India A service sector growth industry

India: An emerging superpower

India’s GDP will exceed Italy’s in 2020, France’s in 2020 Germany’s in 2025 and Japan’s in 2035 Goldman Sachs Projections (US 2003 $ Billion)

Tourism growth in India According to World Tourism Organization estimates, India will lead in South Asia with 8.9 million arrivals by 2020 India is poised to emerge as the 2nd fastest growing (8.8%) tourism economy in the world over according to the World Travel & Tourism

Foreign earnings There has been a growth of more than 13% in foreign tourist arrivals at 3.9 million during 2005, up from 3.4 million foreign tourists who visited India during previous year. Foreign exchange earnings from foreign tourists were up by more than 20% at $5, million in 2005, up from $4,769 million earned the previous year.

Indian air travel to grow 20% each year for the next 5 years Government and private operators will invest $20 billion in aircraft and infrastructure over the next five years Air India will be adding 68 aircraft to its present fleet, Indian Airlines 43 and private airlines around 275 By 2010, Indian airports will be handling between 90 and 100 million passengers (59 million domestic & 35 million international passengers) Air travel and India

Tourist destinations North East – States such as Sikkim, Assam and Nagaland have emerged as major players. The major focus in 2005 was to develop tourism infrastructure in the region. New States – Uttaranchal attracted 14 million tourists and in 2004 witnessed a growth of 40% in Major focus on marketing to attract high spending tourists, initiatives to create world-class infrastructure. Beautiful South – Aggressive marketing has helped achieve over 25% growth in tourism in southern states. Andhra Pradesh and Karnataka are witnessing an upswing in foreign tourists.

Forms of tourism Cultural tourism & Round Trips – covering the popular circuits comprising of the Golden Triangle, Rajasthan, N. India & in South the well known temples, backwaters & beaches. Mass tourism – Goa is a tourism based economy and a leader in this sector, is all set to promote mass tourism. Goa also won the 2nd most popular winter destination in UK. Commonwealth Games 2010 – the government is investing in infrastructure, to further develop tourism in and around Delhi.

An all-year round destination. Throughout the world, India is perceived as a October to April winter destination. Marketing initiatives by both the Government and the private sector is now successfully addressing & changing this perception.

New Tourism Products Monsoon magic - focus on months from April to October Rural & village tourism - the tourism ministry is laying special emphasis on infrastructure development in various rural destinations in India. Medical tourism - the Indian Healthcare Delivery market is estimated at US$ 18.7 billion. The industry is growing at about 13 per cent annually. Luxury tourism – e.g. Palace on Wheels, Palaces Adventure tourism – with emphasis on eco-tourism

Benefits of tourism There has been a positive change in perception about the benefits of tourism in the minds of planners, policy makers and as well as state governments in India. Tourism is now being seen as an engine of growth for the economy and a key employment generator. Low Capital Investment in the trade. Imports earn foreign exchange. Cultural revival/ regeneration

Ecotourism in Kerala There has been a major growth in ecotourism that is sustainable and environmentally non- invasive. Resorts are designed using local labour forces and local materials. Energy sources are sustainable: cow dung and wood

The market for Ecotourism Ecotourism tends to be geared to a young and wealthy market. Activities are marketed and life style emphasised.

Medical tourism in India Medical care in the USA and private health care in UK is very expensive. India has well-trained doctors who will work for a lower fee than they could expect abroad. Medical tourism offers people the option of knee replacements, hip replacements, heart care, cosmetic & dental surgery in India. Hundreds of people have treatment abroad, saving them a great deal of money in treatment costs.

Sample costs

Discussion points What does India have to offer tourists? Do some personal research. What impact could tourism have on local economies? What impact could tourism have on local environments and local traditions? Should people fly long distance for eco-tourism?