INTRODUCTION

Tourism is a collection of activities, services and industries that delivers a travel experience, including transportation, accommodations, eating and drinking establishments, retail shops, entertainment businesses, activity facilities and other hospitality services provided for individuals or groups traveling away from home. The World Tourism Organization (WTO) claims that tourism is currently the worlds largest industry with annual revenues of over $3 trillion dollars. Tourism provides over six million jobs in the United States, making it the country's largest employer. Matheson and Wall (1982) created a good working definition of tourism as :

"the temporary movement of people to destinations outside their normal places of work and residence, the activities undertaken during their stay in those destinations, and the facilities created to cater to their needs."

CONTD

India is fast emerging as one of the most enticing

destinations for the global leisure traveler. The tourism sector in India is expected to grow at 8 per cent per annum, in real terms, between 2007 and 2016. As travelers surge into India, the demand for rooms, across segments, has skyrocketed. Hotels in the luxury and business traveler segment are recording nearly 100 per cent occupancy, spiraling tariffs, and a strain on capacity and manpower.

Contd.
100% FDI is allowed in Tourism in India 100% FDI is also allowed in hotels, which includes

restraints, beach resorts and other tourist complexes providing accommodation and/or catering and food facilities to tourists. Tourism related industries also include travel agencies, tour operating agencies, units providing facilities for cultural, adventure and wild life experience to tourists, surface, air and water transport facilities to tourists, leisure, entertainment amusement, sport and health units for tourists and convention/seminar units and organizations.

POSITIVE EFFECT OF TOURISM

Developing positive attitudes towards each other

Learning about each others culture and customs

Reducing negative perceptions and stereotypes Developing friendships

Developing pride, appreciation, understanding,

respect, and tolerance for each others culture Increasing self-esteem of hosts and tourists Psychological satisfaction with interaction

Dimensions of Tourism
All tourism activities are related to one or more of the following dimensions of tourism :
Natural Resources Culture Ethnicity Entertainment X- treme Tourism

TOURISM, THE SUNRISE SECTOR

JBIC ranked India as the fifth most attractive investment destinations.

Conde Nast Traveler, one of the worlds most celebrated travel magazines ranked India amongst the top 10 tourist destinations of the world. Tourism is third largest net earner of foreign exchange for the country and also one of the sectors employing largest manpower. In South-Asia, India has 65.8% of the Regional Tourism Receipts
Tourism in India could contribute Rs 8,50,000 crores (approx. 1800 million USD) by 2020 Requires huge investments for creation of the entire value chain in Tourism Of late, tremendous thrust for creation of tourism infrastructure in the country-there is a buzz in the market

 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 2005-14 according to the World Travel & Tourism

ECONOMIC SIGNIFICANCE
In INDIA ,tourism is emerging as a key sector in economy. It is the

third largest foreign exchange earner after garments ,gems & jewellery. The foreign exchange earnings from tourism during 1997-98 is about Rs.11264 crores (US$3173 million). It has being able to generate large scale employment opportunities particularly in remote and under developed areas. It offers enormous potential for utilizing natural resources like landscapes, mountains, beaches, rivers, etc. for the economic benefit of the populations. It has also played an important role towards contribution of national integration and the social transformation of the economic lives of people. The ninth plan on tourism considered a growth target of 8% per annum in tourist arrivals in 1997-2002 which helped in substantial improvement in infrastructure and services.

COMPARATIVE JOB CREATION

SECTOR AGRICULTURE LABOUR / CAPITAL RATIO 44.7

MANUFACTURING
MINING AND QUARRYING RAILWAYS OTHER TRANSPORT HOTELS TOURISM

12.6
2.06 0.9 13.8 89.0 47.5

SOURCES :ANNUAL PLAN,DEPT.OF TOURISM, GOVT. OF INDIA, 1996-97

Watershed for the tourism industry in India

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 $5,730.86 million in 2005, up from $ 4,769 million earned the previous year

Development of Incoming Tourism to India

India to drive global aviation growth: Giovanni Bisignani, IATA

Indian air travel to grow 20% each year for the next five years. Government and private operators will invest $20 billion in aircraft and infrastructure over the next five years, with the number of passenger aircraft doubling to 400. Boom in Air Travel: Overall aircraft movements have increased by 15.3% International (19.7%) & domestic (14.1%) Overall passenger traffic has increased by 24.3% International (17.9%) & domestic (25.9%) Overall cargo traffic increased by 21.9% Open sky policy Modernization of Airports Low Cost Operations

Emerging Tourism Segments

Emphasis on India as a year round destination

World over India is perceived predominately as a October to April winter destination. Marketing initiatives by both the Government and the Private sector is now successfully addressing & changing this perception. India is now recognized as a year round destination

New Up-coming 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. billion. The industry is growing at about 13 per cent annually. across the country.

Medical tourism - the Indian Healthcare Delivery market is estimated at US$18.7 Wellness & Spa tourism luxurious world class health spas are mushrooming

Luxury tourism e.g. Palace on Wheels, Palaces Adventure tourism with emphasis on eco-tourism MICE convention centers coming up in the metro cities

Strong Government Support

Change in perception
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: Engine of growth for the economy and a key employment generator. Low Capital Investment in the trade. Imports that earn foreign exchange.

Cultural revival/ regeneration

New Destinations
Till recently the state governments of Kerala and Rajasthan were aggressively marketing their product. Today there is more competition from other states. Gujarat N. Kerala Ladakh Madhya Pradesh Orissa & East India Rajasthan Uttaranchal Punjab

Civil Aviation & Airports

Situation at present:

Theres greater accessibility to secondary (non-metro) airports in India.

The airfares have plummeted.

The aviation boon has hugely benefited the inbound tourism in the country

Civil Aviation & Airports

Successful identification of partners for modernization of Delhi & Mumbai airports. Non-metro airports Along with metro airports, the Airports Authority of India will develop 35 non-metro airports in the country. Over the next three years, the Indian skies will be totally unrecognizable Air India will be adding 68 aircraft to its present fleet Indian Airlines 43 and Private airlines around 275

2010, Indian airports will be handling between 90 and 100 million passengers (59 million domestic & 35 million international passengers

Indias Aviation Bilateral Agreements in 2005

A total of 14 bilateral agreements were signed by India during the year 2005 as a direct development of Indias open skies policy. Some of the more significant air services agreements were: France China UK US Germany Canada Singapore Belgium New Zealand Philippines Netherlands

Advertising of Travel & Tourism sector

Incredible India Campaign

Incredible India Campaign

The Incredible India Campaign implemented by the Government of India has proved a catalyst in attracting record tourists into India. Being the first B2C campaign of its kind, it has created a unique brand and identity of India in the world travel & tourism space. The year 2005 has been a significant year, with Incredible India catching international eyeballs and the subsequent recognition by the world media

Incredible India-Print Campaign

Winner of 2005 PATA Grand Award in the Heritage (HE) category, for its Ajanta Ellora Conservation & Tourism Development Project

Winner of 2005 PATA Gold Award in the Print Media (AD-P) category for its "Incredible-Taj" ads.
Winner of 2004 PATA Gold Award for - Marketing, Government for its "Incredible India Campaign Travel and Leisure- Highest Recall AD -Worldwide

Destination Marketing

Destination Marketing
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. Kashmir With revival of tourism in 2005, the state witnessed a 40 per cent increase in tourism related activities, due to return of normalcy resulting in the lifting of travel advisories in most countries. Commonwealth Games 2010 the government is investing in infrastructure, to further develop tourism in and around Delhi.

Destination Marketing
North East States such as Sikkim, Arunachal, Assam and Nagaland have emerged as major players. The major focus in 2005 was to develop tourism infrastructure in the region. These states have witnessed a quantum leap in tourist inflow.

New States Uttaranchal for e.g. which attracted 14 million tourists in 2004 witnessed a growth of 40% in 2005. 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, other than Kerala

Scope for Improvement

Constraints towards increasing foreign tourist arrivals

The Visa EXPERIENCE Indian embassy is fairly bureaucratic/time consuming & closed. In Paris, for instance, there is a demand for 1,000 visas a day but the handling capacity is only 150. Hotel capacity woefully short by at least 75,000 beds and will remain for the next 2-3 years. Capacity constraints has put huge increase in total pricing by 20% to 80%.

Rise in fuel cost is affecting transport costs.

Arrival experience especially in Delhi & Mumbai is woeful

CONCLUSION
The impact of tourism on local communities can be both positive and negative, whether it comes to economic, TOURISM .Social, or environmental effects. It depends to which extent tourism is developed in a particular region. Every region has its bearing capacity, that is to say the limit of the incoming influence that does not harm the host community. If we overcome that limit negative impacts of tourism will follow it is a great challenge to make a profitable business running. Tourism in an area without some negative effect to the local communities. It is possible for the tourism industry to cooperate with other industries and bring benefits to both the tourism organizations and local businesses. The first step to achieve it is to understand the needs and desires of both the host community and the tourists..