Employment Opportunities and Tourism Development in Kerala

T.Rajesh (Principal Investigator), Assistant Professor, Government College, Ambalapuzha. Dr.Dileep..A.S (Co-Investigator) , Assistant Professor, Department of Commerce, NSS College, Nilamel

Tourism being a multi-dimensional and integrated industry features low resource

consumption, high leverage effect and abundant job opportunities. It is now imperative to an economy; economically, socially, culturally and environmentally. Economically, it creates jobs and contributes to gross domestic product, as well as bringing in capital investment and exports. Socially and culturally, travel and tourism offers the opportunity of providing jobs for the minority and the disadvantaged groups, creating adequate training in management skills, providing education and technology to local people and increasing incomes in rural and local economies, thereby contribute to the alleviation of poverty in developing countries. Environmentally, it is essential for travel and tourism to maintain an optimal balance of its natural resources by ensuring the ongoing arrival of tourists to destinations. Thus, almost all the countries in the world have placed tourism on a pride of place as it employs over 235 million people, generates 9.2 per cent of global GDP, witnesses 940.0 million FTAs and generates 919.0 US $ billion FEE (WTO, 2010). India is one of the popular tourist destinations in Asia. Tourism plays a critical role in the economic development of the country with a contribution of 6.23 per cent to the national GDP and 8.78 per cent of the total employment in India. As the second largest foreign exchange earner, it employs a large number of people, both skilled and unskilled. Owing to her secularism and rich culture, India has fascinated many people from all over the world. The majority of foreign tourists come from USA and UK. Kerala, Tamil Nadu, Delhi, Uttar Pradesh and Rajasthan are the top five States to receive inbound tourists. Kerala, the southern State of India, has been referred as a paradise for tourists by the media worldwide. Today, Kerala Tourism is a global super brand and is regarded as one of the destinations with the highest brand recall. In 2010, Kerala attracted 6.59 lakhs of foreign tourists

(an increase of 18.31%) and 85.95 lakhs of domestic tourists (an increase of 8.6%) as compared to the previous year thus making it one of the fastest growing tourism destinations in the world. The tourism industry significantly contributes to the State's economy and has considerable potential in Kerala. The State was able to generate from tourism Rs. 3797.37 crore in 2010 as against Rs. 535 crore in 2001, representing a compounded annual growth rate of 21.65 per cent. The State's tourism agenda promotes ecologically sustained tourism, which focuses on local culture, wilderness adventure, volunteering and personal growth of the local population. Acclaimed as Indias only tourism super brand, Kerala has been able to develop strengths in certain core areas of product development and infrastructure creation. Growth and Development of Global Tourism Tourism being a smokeless industry is now a multi-billion, multi-sectoral and multidimensional activity in the world. Tourism is being considered as an agent of social change bridging gaps among nations, regions and people and helping them to open up. It is a promoter of development-material and spiritual both at macro and micro level. Travel and tourism industry occupy an important role in the economy of several countries. Tourism has today achieved the status of a complete industry. Governments all over the world are competing with each other to sell tourism and travel concept, its history, culture, snow caped mountain, beaches, sand, sunrise, sunset etc. It enhances the quality of life, preserves the national heritage and encourages the appreciation of diverse culture, both by domestic and foreign visitors. Over the past few years, the travel and tourism industry has had to contend with a series of unprecedented challenges, international events, such as terrorism and SARS, and economic turbulence which have led to significant changes in travel and tourism demand. At the same time, international events such as an increase in information and booking facilities made available over the internet; an outgoing desire by consumers to travel more frequently; a strong branding and globalization by companies; and the expansion of low-cost carriers have acted as catalyst, accelerating fundamental changes in market behaviour and travel patterns that have been slowly emerging over the past decade. While business plans have become increasingly short-term, more and more governments are starting to realize that they cannot leave the growth of travel and tourism to chance. This emerging global consciousness represents a great opportunity for this industry.

International tourist arrivals worldwide registered a negative growth rate of 4.2 per cent during the year 2009 as compared to 2.0 per cent growth during 2008. The FTAs were 683.4 million during 2001, which increased to 940.0 million during 2010. The percentage increase of FTAs during 2010 is 6.8 per cent. The compound annual growth rate during the 10 year period is 3.24 per cent. Review of Literature Jenny Phillimore (1998) discusses the results of a quantitative survey of a rural countys tourist attractions and the types of employment, levels of training, and expertise within them. The county of Herefordshire, England, has been awarded European Community Objective 5b funding to aid in the restructuring of its economy. One of the main areas targeted is tourism and the development of tourist attractions. Rural women experience opportunity deprivation, so it is hoped that developing tourism employment will provide them with additional employment opportunities. Employment figures show women tend to work in unskilled, seasonal, and part time jobs, while men were more likely to be annual, fulltime, and managerial employees. Bonnie Martin, Francis McGuire, and Lawrence Allen (1998), conducted a survey to identify retirees attitudes toward tourism development in a resort community. Data analysis, including factor analysis, found that four dimensions described retirees attitudes: increased development, negative impacts, positive impacts, and tourism support. It was found that retirees do not support continued growth and strongly agreed that tourism had negative impacts, supporting growth machine theory. Mara Manente and Maria Carla Furlan (1998) analyse the quality of tourism as a system that includes final consumption, product based market services, the natural environment and cultural resources at no cost, and the impact on the local society, all from the macroeconomic point of view. They maintain that if optimal use is to be made of resources in the sense of achieving sustainable system quality, this use must be compatible with the carry capacity. Thomas C. Jensen (1998) estimates the income and price elasticity for six nationals most often visiting Denmark as tourists. The estimates are based on two different measures of revenue: the number of nights spent and the currency exchange statistics. The report prepared by World Travel and Tourism Council (1998) on the Economic Impact of Travel and Tourism Development in the APEC Region provides a foundation for

increased awareness and understanding of the significance of travel and tourisms contribution to the economy of the APEC region. It will assist member economies in implementing appropriate policy measures to prepare for the expected growth of travel and tourism and to capture the potential for new capital investment. David W. Marcouiller (1998) presents an analytical framework that captures environmental goods as latent primary factor inputs to the production process of tourism. Using forest resources as an example, he incorporates no- priced tourism production inputs to specify the tourist production function, to provide a critical linkage to land and recreation resource management, and allow for more integrative tourism-planning approaches. Mananyi, A (1998), in his article, Optimal Management of Ecotourism, considers the static and dynamic optimal tax policies that are designed to decentralize the social optimum, thereby internalizing the externalities and guaranteeing the sustainability of both the wildlife species and tourism. The sustainability debate strongly suggests that the viability of eco-tourism is in danger unless policies that promote the natural resource base are pursued. Megan Epler Wood (1998) investigates the role of community participation in the development of eco-tourism in Ecuador from social, political, and conservation perspectives. Ecuador is a living laboratory of eco-tourism and community development issues that provides an excellent base to study and learn about how communities in tropical zones adapt eco-tourism to their needs. One inventory found 30 indigenous and controlled eco-tourism projects in the Amazonian region of Ecuador alone. Zoran Klaric (1999), in his study on the Impact of Distance and Availability of Information on Travel to Conflict RegionsExample of Croatia, deals with the causes of changes in tourist demands in Croatia in relation to the situation before the war. Based on this analysis, it is suggested that distance and available information influence more significantly the travel into conflict areas, second only to the price and promotive policy, but not real safety. Heerschap, N.M (1999) describes the importance of employment and human resource issue for the tourism industry. The study proposes the use of both approaches (demand side and supply side) simultaneously by connecting basic life account through an employment module as the integration framework. Travel Industry Association of America (1999) on their report titled 1997 Impact of Travel on State Economies, deals with spending on travel, jobs generated through travel and

total wage and salary generated through travel. This report includes six separate summaries: 1997 Travel Expenditures in the U.S., 1997 Travel-Generated Payroll in the U.S., 1997 TravelGenerated Employment in the U.S., 1997 Travel-Generated Tax Revenue in the U.S., State Profiles, and 1997 Multiplier Impact of Travel Spending in the U.S. Cevat Tosun (1999) presents an analysis of the contribution of international inbound tourism to economies of developing nations with special reference to Turkey. It shows that the contribution of international inbound tourism to the Turkish economy appears to be significant in absolute terms. Pizam, A (1999), in an essay titled Life and Tourism in the Year 2050, represents the authors personal vision of life and the state of the tourism industry in the year 2050. It describes the major expected developments in the areas of environment, demographics, economy and business, lifestyle and values, politics, housing, education, entertainment, shopping, and emerging technologies. Raphael Raymond (1999) in his study gives the national totals and the figures for Eilat and for five other destinations. The economic benefits of tourism are reduced by the building of accommodation and facilities that are used only part of the year or have low annual usage, and by seasonal unemployment. Monthly occupation peaks and troughs in 1998 are presented for 16 countries, as well as the seasonal patterns of tourism by air to Israel, by principal origin and of inbound and domestic hotel demand. Employment Impact of Travel and Tourism As per the report published by the World Travel and Tourism Council, 2011 the total contribution of Travel and Tourism to employment, including jobs indirectly supported by the industry, is forecast to rise by 2.3 per cent pa from 258,592,000 jobs (8.8% of total employment) in 2011to 323,826,000 jobs (9.7%) by 2021. The tourism industry has mushroomed phenomenally in the last few decades and has become an important factor in the economy of many nations. It has emerged as the worlds largest export industry and has become a unique instrument for economic development as well as for promoting social integration and international understanding. Over the years, its importance as a major source of contribution to the improving of balance of payment and for creation of new business opportunities, employment generation, ecological conservation and regeneration as well as for percolation of economic benefits to the weaker sections of the society has been increasing

tremendously. Of these benefits, employment generation is the most beneficial to the developing nations concerned. Tourism has a variety of economic impacts. Tourism contributes to sales, profits, jobs, tax revenues, and income in an area. The most direct effects occur within the primary tourism sectors - lodging, restaurants transportation, amusements, and retail trade. Through secondary effects, tourism affects most sectors of the economy. An economic impact analysis of tourism activity normally focuses on changes in sales, income, and employment in a region resulting from tourism activity. An economic impact assessment (EIA) traces changes in economic activity resulting from some action. An EIA will identify which economic sectors benefit from tourism and estimate resulting changes in income and employment in the region. Economic impact assessment procedures do not assess economic efficiency and also do not generally produce estimates of the fiscal costs of an action. Employment in Tourism in India India is a Tourists Paradise as far as our 10,000 year old Heritage, History and Cultures are concerned. India only get around 3.0 million tourists per year, the same as the city countries of Dubai, Singapore and some small cities of Europe and North & South America. Even small countries, like Malaysia and Thailand get nearly 10 million tourists per year. China gets nearly 47 million tourists per year. One tourist results in the employment generation of nearly 2 to 4 jobs. As per the report published by Associated Chambers of Commerce and Industry (Assocham) travel and tourism sector is expected to be the second largest employer globally by 2019. The study said travel and tourisms share in employment generation in India is likely to be significant in the next couple of years. Tourism sector is the largest service sector in India, which contribute 8.78 per cent of the total employment. Almost all the States in India have placed tourism on a priority platform, making efforts to exploit the tourism resources and potential offered by the States. Kerala has been significantly successful in its tourism efforts, in creating a key tourism platform for the State and positioning itself competitively in the international tourist market. For the major part of the 20th century, Kerala largely ignored its tourism potential, taking for granted the breathtaking beauty of its natural resources, while States like Goa and Rajasthan marched ahead dominating the tourism pie. However, in the last decade of the Century, the State awoke to the possibility of using tourism as an economic lever. From 1990 onwards, there were tentative efforts to bring Keralas

traditional dance forms and traditional medicine to the forefront, but no formal efforts to launch the tourism sector. In 1995 the State announced, for the first time, its stand towards tourism taking, as the WTTC put it, the first major step for tourism development. The same year saw the inflow of domestic tourists to Kerala increased by a phenomenal 204 per cent from 1.28 million to 3.9 million, and the inflow of foreign tourists by 36.7 per cent from 0.1 million to 0.14 million. Then in 2000, in the first Travel Mart held in the State, Kerala cast its global spell through three short words Gods Own Country-the slogan that captured the International market. From the turn of the millennium, Kerala has marched on its way forward, with various tourism indicators demonstrating a steady rise over the years. In the following sections, an analysis of the tourism growth in Kerala has been made. Statement of the Problem It is a boom time for Kerala tourism. Along with the growth of the Kerala economy in general, the tourism sector has also witnessed huge buoyancy in recent times. Today, Kerala is among the top ten tourist destinations in the world. Innovative and market-focused advertisement campaigns help Kerala to boost its tourism inflows in both volume and value. All these campaigns helps the growth of tourism in Kerala. But the benefits from the boost has not yet reached the important stakeholders viz; employees. The employees are not treated properly, unscented recruitment and selection practices prevail in this sector, wage and salary structure are not adequate and market based. All these factors hinder the labour market development of tourism in Kerala.

Scope of the Study

The present study aims to explore the employment practices in tourism sector in Kerala. More specifically, it aims to assess the recruitment, selection, compensation and job satisfaction of tourism employees in Kerala. The study aims to collect data from employees in hotel industry, travel agencies, promotional agencies, houseboat employees, and employees who are engaged in tourist transportation.

Objectives The primary objective of the study is to explore the employment opportunities of tourism development in Kerala. in pursuance of the objective the following sub objectives have been formulated. 1) Analyse the growth of tourism and tourism employment in Kerala. 2) To evaluate the employment problems in hotels, travel agencies and promotional agencies. 3) To evaluate the employment problems in houseboats, tourist guides and transport

undertakings. 4) To make suggestion s for alleviating the problems and for the orderly development of tourism sector.

Data Base and Methodology In pursuance of the above mentioned objective, the following methodology was adopted for conducting the study. The present research work is an analytical study based on both primary and secondary data. The first objective of the study is achieved through the collection and analysis of secondary data, whereas all the other objectives have been achieved through collection and analysis of primary data. Secondary Data The secondary data for the present study have been collected from the personal discussion with officials of tourism sector and from various publications of numerous institutions. Primary Data Primary data required for the study have been collected from selected employees in the tourism sector the state of Kerala. For the purpose of the study employees in tourism sector are divided into two: Primary employees and Support employees. Primary employees include employees in hotels, travel agencies and promotional agencies. Support employees include tourist guides and employees in houseboats and tourist transport. Sample Design Adopted for the Study A multi stage random sampling method will be employed for the selection of sample respondents.

Estimated Expenditure Purpose Photo copying relevant related materials Printing of questionnaire DTP -draft and final project Executive binding of the project Traveling and stay expenses Fee for statistical analysis Subscription of related magazines journal and periodicals Purchase of stationary Purchase of books Purchase of computer Purchase of printer Total 15000 50000 40000 7000 300000 Amount 15000 3000 25000 10000 75000 50000 10000