Category Archives: Destination development

A Snapshot of Water Based Adventure Tourism in India

Snap Shot of Water Based Adventure Tourism

Source: Computed and prepared from Adventure Tourism in India, Ministry of Tourism, Government of India 

Note: I found some anomalies in the report. For instance, house boat stay in Jammu and Kashmir is nil. However, keeping in mind that this is the only authentic report that estimates the number of adventure tourists in India in a scientific manner, the directions given in the report is quite robust.

First Time a Prime Minister in India Identifies Tourism as an Instrument to Boost Local Economy

August 15th 2014, should be marked as an important day for the Indian tourism sector. It is not because there is a new toruism policy declared since 2002, nor beause of some bold and innovative steps taken by Ministry of Tourism of Indian Government. It is simply because the new prime minister Mr. Narendra Modi’s speech on the eve of India’s Indepence Day ceremony acknowledging the potential role that can be played by tourism activities in generating income and alleviating poverty at the local level. This is one of the simplest common sense, yet unaddressed by any past prime ministers of the country in any occassion as far as I remember.

Mr. Modi has exactly mentioned the grass root level linkage of tourism sector that needs to be harnessed for a sustainable toruism development strategy in the country. His words that captured implications of tourism development for a tea stall owner, petty service providors and the similar ones are the most cricual ones. A sustainable roadmap of tourism sector is always envisaged in the form that generates income and employment for local comminity and local economy. The strong multiplier effect of tourism automatically starts turning the unturned stones of development once these acticities are started at the local level.

This is nothing new to anyone involved with tourism development in some way or other. The major problem faced till now was that the tourism officials were more concerned about how to increase the number of foreign tourists instead of domestic tourists. Recognizing the fact that only 2% of the total toturists arrivals are of foreign origin and 98% are domestic, one fails to understand why we ignore dmestic tourists and concentrate more on foreign tourists. Perhaps it is time that we focus on developing domestic tourism also without taking it for granted. Increasing the number of domestic tourists will boost local economic development much more than that can be harnessed from foreign tourists. However, a few cautionary steps must be taken to develop a sustainable tourism across destinations:

1. Awareness generation amongst domenstic toruists to conserve and protect environemnt and destination which is perhaps completely missing at present.

2. Importance of maintaining cleanliness and respect the local culture while harnessing maximum pleasure from tourism

3. To prefer eco-friendly modes of travel/activities rather than those that increase carbon footprint in the region

Local authorities need to play important role in this. It cannot be expected that behavioural characteristics the the travelers will change automatically as desired for sustainable tourism development. The destination management should be in suach manner that the tourists are made to follow the rules strictly, else penalised severely, so that over a time the scenario changes towards a more disciplined tourism sector in the country. Large number of countries in the world are examples of creating such environment over time. The major role played was by governance than anything else. Hope, the new prime minister’s views to connect the grass root level to tourism activities will be translated into some changes in policy making of the authorities who are at the helm of decision making at central, state as well as local level.

Is the International Tourism to India Changing Its Composition? – A Region-wise Analysis

In my last to last blog, I had shown how Foreign Tourists Arrivals (FTAs) are changing over time. The same blog also identified the pattern of the change and concluded that the revival in foreign tourists arrivals, post 2008 global recession, started since 2012 only.

However, I did not include any analysis on the origin of the FTAs to India. We find the FTA data country-wise as well as region-wise. In this blog, I present a region-wise analysis of FTAs without going into the country-wise details. These series of blogs on FTAs to India is inteded towards a bigger analysis which can finally capture changing pattern of expenditure of foreign tourists in India and how that is occuring over time. It will take me about 4 to 5 more blogs like this one to reach at point whereby I can do that analysis. As I wrote in the previous blog also, I am trying to use lesser texts with more visual presentations so that readers are not burdened with too many texts, but can have the essence clearly with visula representatuions.

The Fig 1 depicts that three top regions of origin of FTAs to India are Western Europe, North America and South Aisa. These three regions contribute to about 65% to 70% of the total FTAs to India during 2010 to 2012. The following figure also suggests that the relative ranks of the regions in terms of FTAs remined same over the period 2010 to 2012.

fig 1

Note: C & S America stands for Central and South America; NEC stands for “Not Classified Elsewhere”. The same are applicable to all graphs used in this blog. Continue reading

Aside

Foreign Tourists Arrivals and Foreign Exchange Earnings in India By Dripto Mukhopadhyay With declining impact of global recession, especially in develped countries, Indian tourism has seen an increase in foreign tourists arrivals to various destination in the country. This is … Continue reading

Measuring Tourism’s Role at Micro-level Development in India

By Dripto Mukhopadhyay

Tourism is undoubtedly a booming industry in India. Especially, since early years of the previous decade, India has become a better known destination to international tourists. Even number of domestic tourists have also increased significantly. Government statistics suggest that foreign exchange earnings have increased significantly, number of hotels have gone up tremendously, number of countries form where we receive inbound tourists also have increased promisingly. Along with these statistics, macro level studies such as Tourism Satellite Account (TSA) 2003 and 2009 showed large scale positive impact of tourism in terms of income and employment generation in the country.

While logic and numbers are in favour of suggesting that tourism is playing a significant positive role, lots of stories in social media also pave the idea towards believing that initiatives are taken at micro level to change tourism landscapes and structure. This is also true that in India now home stays are available, we find tour operators offering specific packages, a good network of tour operators with bigger companies such as Makemytrip.com, Yatra.com, and several similar ones. large companies have expanded their business from ticketing to tour packages, from flight booking to bus booking etc. These evidences does not leave any space that Indian tourism sector is growing with a faster pace and also moving towards more organized in nature which was previously completely an organized one.

However, none of these talks of the fact that whether we have been able to associate tourism activities with local level development. As such I did not come across any study that even investigated this issue at all. From sustainable tourism development point of view, it is of utmost importance that the link between local economic development and tourism is established while conserving local environment, both physical and cultural. Right in this particular blog, I do not intend to talk to talk of any numbers or statistics that justifies any view in favour or against the belief that tourism is gradually leaving an imbibed impact on local economic development. There are certain reasons behind, rather personal experiences, why I am raising this question. While travelling in tourist destinations, well known and lesser known, I do not see much involvement of locals in tourism related activities. If it is there, mostly at the petty worker level. I find the observations made by large number of research studies relating to developing world that tourism still does not play any role in redistribution of resources across population, are still true. Investments are still being made in the destinations either by local rich or people external to the place. Still earnings from the destination is not reinvested in local level development, rather being siphoned from the place where it is generated. But these can rarely be captured from macro-level numbers that most of us look into while trying to measure tourism impact.

Studies are needed to capture in a manner that clearly brings out correlation between tourism’s direct and indirect impact on local level development. This needs to be done with village level, town level, block level data rather than with all India figures or state level figures. It is also important to identify indirect impact of tourism development, in the sense, infrastructure development relating to tourism activities and its impact on local economic and social development. I will start with any particular destination, preferably well known, so capture this at the earliest. Working on correlating tourism activities with development parameters of the area, including peripheral geographical spaces should provide certain ideas how these two are linked at the micro-level.

Hotel Industry in India – Some Correlates between Prices and Macro Economic Issues

By Dripto Mukhopadhyay

Hospitality has become one of the major businesses in the India. Large number of international brands has entered the sector in recent times. The sector has been marked with increase in number of premium segment hotels in different parts of the country, along with smaller ones that cater the need for the middle class and lower middle class domestic tourists. In this particular blog, I would restrict myself in highlighting a few crucial attributes of the hospitality sector in India and some of the consequences thereof.

To start with let’s look at some of the macro economic indicators relating to hospitality sector. As obvious, hospitality sector includes hotels and restaurants. Though apparently this should include informal sector also, as the norm goes in national accounting system, data pertaining to this sector majorly reflects the trend of the registered sector because of sheer nature of the sector. Gross Domestic Product (GDP) relating to hotel & restaurant sector is presented in Figure 1. The visual presents the GDP of the sector at 2004-05 prices and the share of hotel and restaurant sector to total GDP of the country from 2000-01 to 2011-12. It is evident from the graph that hotel and restaurant sector GDP has increased to 3 times during the last decade starting 2000-01. It showed a gradual increasing barring the period 2008-09 and 2009-10 as the period was marked with global economic recession. However, the share of the sector in total country GDP rose till 2007-08 significantly and since 2008-09 suffering a dip followed by a stagnating share. This is a reflection of happenings in the world economy as well as of the Indian economy. Though apparently India recovered quickly enough from the recession, due to some of the fiscal measures by the Central Government, but the recovery was quite brittle in nature. It has become evident from high GDP growth registered soon after 2008-09, but poor GDP growth during last couple of years. Poor performance of industry sector, majorly due to reduced demand from domestic market, led the slow down.

However, investment in hotel and restaurant sector was not hampered by timid GDP growth during recent years. Gross Fixed Capital Formation (GFCF) in hotel and restaurant sector and its share in total GFCF of the country is given in Figure 2 below. There was a steady growth in investment in this sector, especially since 2003-04. The momentum dampened a little during the year 2008-09, but picked up again and has shown steep growth. The red line in the graph Continue reading

Inbound Tourism to India Affected Badly due to rape Incidences? – The Answer is NO

By Dripto Mukhopadhyay

Last week, suddenly I saw an article on the Indian tourism in one of the newspapers of a European country. The article cited a report by Assocham Social Development Foundation (ASDF). The news indicated that foreign tourist inflow into India has gone down by 25% in the last three months of the year in the wake of rape incidents. It struck me at that point itself since it is quite an unlikely proposition for anyone who has done some work on Foreign Tourists Arrivals (FTA) in India and its driving forces. By now, I have seen this news in several Indian newspapers also citing the same source ASDF. Being a researcher with keen interests in tourism development, especially in India, I was quite perplexed and could not really grasp the situation which is beyond all theoretical construct of tourism demand. The reason being terrorist attacks, rapes, incidences of other law and order problems have their impacts on tourism, but to a much lesser extent. Is it believable that suddenly the demand function of tourism has changed drastically to make such an adverse impact of some rape incidences that has been highlighted because of media attention? Continue reading