Introduction

Tourism is travel for pleasure; also the theory and practice of touring,
the business of attracting, accommodating, and entertaining tourists,
and the business of operating tours.[1] Tourism may be international, or
within the traveller's country. The World Tourism Organization defines
tourism more generally, in terms which go "beyond the common
perception of tourism as being limited to holiday activity only", as people
"traveling to and staying in places outside their usual environment for
not more than one consecutive year for leisure, business and other
purposes".[2]

Tourism can be domestic or international, and international tourism has

both incoming and outgoing implications on a country's balance of
payments. Today, tourism is a major source of income for many
countries, and affects the economy of both the source and host
countries, in some cases being of vital importance.[3]

Tourism suffered as a result of a strong economic slowdown of the late-

2000s recession, between the second half of 2008 and the end of 2009,
and the outbreak of the H1N1 influenza virus,[4][5] but slowly recovered.
International tourism receipts (the travel item in the balance of
payments) grew to US$1.03 trillion (740 billion) in 2011, corresponding
to an increase in real terms of 3.8% from 2010.[6] International tourist
arrivals surpassed the milestone of 1 billion tourists globally for the first
time in 2012,[7] emerging markets such as China, Russia and Brazil had
significantly increased their spending over the previous decade.
[8]
The ITB Berlin is the world's leading tourism trade fair .
Significance of tourism

Tourism is an important, even vital, source of income for many regions

and countries. Its importance was recognized in the Manila Declaration
on World Tourism of 1980 as "an activity essential to the life of nations
because of its direct effects on the social, cultural, educational, and
economic sectors of national societies and on their international
relations."[2][13]

Tourism brings in large amounts of income into a local economy in the

form of payment for goods and services needed by tourists, accounting
for 30% of the world's trade of services, and 6% of overall exports of
goods and services.[6] It also creates opportunities for employment in
the service sector of the economy associated with tourism.[14]

The service industries which benefit from tourism include transportation

services, such as airlines, cruise ships, and taxicabs; hospitality
services, such as accommodations, including hotels and resorts; and
entertainment venues, such as amusement parks, casinos, shopping
malls, music venues, and theatres. This is in addition to goods bought
by tourists, including souvenirs, clothing and other supplies.
Literature Review
Tourism is defined by the WTO (cited in Gregory et al, 2009) as as the activities of persons
traveling to and staying in places outside of their usual environment for not more than one
consecutive year for leisure, business and other purposes Leslie demonstrates the extent to
which Grasmere via Cumbria depends on tourism; in addition to direct employment, tourism
supports local services such as the bus and rail network, village shops and public houses
Primary Results The purpose of my investigation was to focus on the varying effects of tourism
in the area. Through a questionnaire I asked multiple local people their opinions on the influx of
tourists. There seemed to be a consensus that tourism was beneficial as it was the main source
of income within the village; indeed one person said the village could not survive without the
tourists. They were grateful that there were lots of businesses and jobs created by the industry
through hotels, cafes and specialist shops (e.g. souvenir shops, outdoor clothing retailers for
hikers)
3. Primary Results continued However a few minority of people asked had some problems with
tourists. The second person I questioned said there were hardly any local services left (majority
of businesses services are aimed at tourists). He also said that local people have been forced
out of the area as property prices have risen. I also did notice a lot of holiday homes throughout
the village. There were some concerns about increased traffic levels (especially in the summer)
with problems that this creates (such as noise and air pollution). It is especially worse in
Grasmere as some people said the infrastructure cannot cope with increased traffic levels. Apart
issues on the village/people two people also expressed concerns about damage to the fells
caused by large amounts of hikers. Apart from the questionnaire I also carried out data
collection via a land use survey, a few field sketches, photographs and general observation.
4. Secondary ResultsTable showing tourism revenue, tourist days, tourist numbers and tourism
employment during 2010 for each ofCumbrias sub-areas and the county as a whole (LDNPA is
not an additional component of the total)Source
http://www.cumbriatourism.org/research/surveys-data.aspx The above table shows tourism is
highly beneficial to the local economy in Cumbria In 2010 Cumbria had a total of 40 million
visitors (35 million day trippers and 5 million overnight) who brought in 2billion for the local
economy This also provided full time employment for 32,573 people. However most tourism jobs
are part time or seasonal so the total number of people in tourism jobs is estimated at 56,011 -
19% of all employment in the county.
5. Secondary Results Research on negative issues associated with tourism found results similar
to those gathered in my questionnaire (e.g. traffic, air pollution) Traffic can negatively affect local
businesses (e.g. congestion can increase transportation costs for famers due to delays) 25% of
tourists reported that overcrowding spoiled their visit which could stop them returning in the
future (Slideshare, 2008) 20% of homes within the Lake District are holiday homes which can
force up property prices and drive local people out of the area as they cannot afford to live there
(Slideshare, 2008) This can cause several more negative effects experienced in Grasmere such
as the lack of local services (e.g. shops, schools, bu
 About Indian Tourism
As per the Travel and Tourism Competitiveness Report 2009 by the
World Economic Forum, India is ranked 11th in the Asia
Pacific region and 62nd
overall, moving up three places on the list of the world's
attractive destinations.
It is ranked the 14th best tourist destination for its natural resources
and 24th for its cultural resources, with many World
Heritage sites, both natural and cultural, rich fauna, and strong creative
industries in the country.
India also bagged 37th rank for its air transport network. The India
travel and tourism industry ranked 5th in the long-term (10- year) growth
and is expected to be the second largest employer in the world by 2019.
India has been ranked the best country brand for value-for- money in
the Country Brand Index (CBI) survey conducted by Future Brand, a
leading global brand consultancy.
 India also claimed the second place in CBIs best country brand for
history, as well as appears among the top 5 in the best
 Contribution to the economy
According to the Travel & Tourism Competitiveness Report 2009 brought
out by the World Economic Forum, the contribution of travel and tourism to
gross domestic product (WDP) is expected to be at E.0 per cent (US$ E7.3
billion) in 2009 rising to US$ 187.3 billion by 2019.
The report also states that real WDP growth for travel and tourism
economy is expected to be 0.2 per cent in 2009 and to an average
7.7 per cent per annum over the coming 10 years. Export earnings from
international visitors and tourism goods are expected to generate E.0 per
cent of total exports (almost US$ 1E.9 billion) in 2009, growing (nominal
terms) to US$ 51.4 billion in 2019.
The travel and tourism sector which accounts for E.4 per cent of total
employment or 1 in every 15.E jobs in 2009 is expected to generate
40,037,000 jobs i.e. 7.2 per cent of total employment or 1 in every 13.8 jobs
by 2019. Real WDP growth for Travel & Tourism economy is expected to be
0.2 per cent in 2009 and to average 7.7 per cent per annum over the coming
10 years.
 Wovernment Initiative
The campaign Visit India Year 2009 was launched at the International Tourism
Exchange in Berlin, aimed to project India as an attractive destination for
holidaymakers. The government joined hands with leading airlines, hoteliers, holiday
resorts and tour operators, offering them a wide range of incentives and bonuses
during the period between April and December, 2009.
The airlines participating in the campaign, Air India, Jet Airways and Kingfisher
Airlines are offering a companion free ticket for every ticket purchased for
international and domestic flights. Connecting flights to the departing airports are
included in the final travel costs. The Indian Travel Agents Association (IATO) is
offering holiday-makers a free sightseeing tour in a city of their choice.
Euromonitor International's Travel And Tourism in India report states that the
Wovernment of India increased spend on advertising campaigns (including for the
campaigns Incredible India and Ahithi Devo Bhava - Visitors are like Wod) to
reinforce the rich variety of tourism in India.
The Ministry promoted India as a safe tourist destination and has undertaken
various measures, such as stepping up vigilance in key cities and at historically
important tourist sites. It also deployed increased manpower and resources for
improving security checks at key airports and railway stations.
 Initiatives at State-level with involvement of
Locals:

States are taking initiatives in teaming with locals to provide a flavor of their culture
and traditions. Some of the initiatives are mentioned below:

HIMACHAL PRADESH - The Himachal govt has introduced a scheme Himachal

Pradesh Home Stay Scheme 2008 under which tourists are given the opportunity see the
rural areas.
GUJARAT Through the Vibrant Wujarat programme plans to actively market the
tourism sector.
MP The govt of MP is keen to initiate the development of an artificial beach in the
state. The concept is based on Ocean Dome artificial beach in Japan.
KERALA - Kerala has introduced innovative tourism initiatives. Two of its villages,
Aranmula and Kumbalangi, are being promoted as tourist destinations in a big way as
part of the Endogenous Tourism Project of United Nations Development Programme and
Wovt of India.
RAJASTHAN - Rajasthan has a developed tourism infrastructure, with close to
E,000 hotel rooms spread over more than 150 hotels.
AP AP has about 18 projects lined up under various categories such as temple circuit
development and eco-tourism projects.
 Tourist Circuits in India

CULTURE, HERITAGE AND ETHNO :TOURISM Chattisgarh, amongst other states has
identified and is developing ethnic villages. The private sector is also being encouragement for
proper maintenance.
ADVENTURE TOURISM Adventure sports such as water sports, trekking, rock- climbing,
para-sailing and bungee-jumping are popular with the younger travelers and working executives.
 ECO TOURISM Indias forest, national parks and wildlife sanctuaries are major
attraction for a whole lot of tourist from around the world.
AVIAN TOURISM Adding another dimension to the Kerala's backwater and health
tourism is the avian tourism to attract birdwatchers from all over the world.
MEDICAL TOURISM AND SPAS India has originated as one of the most important
hubs for medical tourism. Many people from the developed countries come to India for
the rejuvenation promised by yoga and ayurvedic message therapy as well as for high-
end surgeries like cardiac bypass surgery or knee/hip replacement.
HIGHWAY TOURISM - Besides catalyzing diversification of tourist traffic and
revenue from the urban centers, planned development of highway tourism opens
opportunities for enhancing local employment and uplifting rural economy through local
feeder enterprises, which will find scope to grow in the vicinity of such highway tourist
complexes.
RAIL TOURISM The Indian Railways has introduces several new services to
promote rail tourism luxury tourist trains, exclusive steam and hill charters, tour
packages.
CARAVAN TOURISM A new policy guideline to promote Caravan Tourism in India
and facilitate the infrastructure required for the same would be announced.
WELLNESS TOURISM - A new policy guideline for promoting Wellness
Tourism in India would be announced. The policy would aim to leverage Indias
potential in traditional systems of wellness and medicines like
 Travelers analysis
SE Asia
2% 2%
W Asia
2% W
2 Europe
2%
% Africa Share of Outbound
Australia
2%
C&S
Travelers, 2006-2008
2% America E
Asia
E Europe
2 %
22%

Number of Outbound Indian Travel2e2rs Travelle

rs (Mn)
2

2
2222 2222 2222 22 22
 Foreign Tourist Arrivals

Estimates of foreign tourist arrivals (FTAs) and

foreign exchange earnings (FEE) are important
indicators of the tourism sector. FEE in US$ terms
during the month of November 2009 were US$ 1.2
billion as compared to US$ 1 billion in November
2008.
 Tourist Visits in India

The number of domestic and foreign tourists has almost doubled in 2003
and 2008.
Indian Tourism Industry-Market
Size

22

22
22
22 %
2% 11 International Tourist
2% Spends
2222%
DomesticTourist
22 2 Spends
11
22 2 1
2
2

2 2
2
Market Size inBn
22
22
22E
F
22 22
22F
 India WDP Wrowth

The most important growth is the robust economic growth that has been
witnessed in the country.
Indias WDP has been growing at the rate of E% since the
liberalization of economy in 1991 and has grown over 8% in the past few
years.
At 8% CAWR, Indias WDP would almost triple from US$ 1200 Bn to
US$ 3500 Bn by 2023
 Wrowth in WDP per Capita

Indias strong economic growth has caused the WDP per Capita to increase
rapidly over the past 5 to 10 years. At current rate, the WDP per capita in
2013 would be double of what it was in 2003
 Distribution of Households Across Income
Brackets

More and more families are expected to leave the deprived or aspirers category and
join Indias burgeoning middle class.

By 2025, the Indian middle class is expected to constitute 4E% of the Indian population.

Subsequently, discretionary spends would be going up and this bodes

 Share of LCCs In Airlines
2
2
2
2 2%
iahnSre%

2 2%
2 Fsc: Full Service Carriers
2 LCC: Low Cost Carriers
2
2

The above graphs indicates the increasing share of LCC from 33% to
47% between 200E and 2008.

The advent of LCC has spurred domestic air travel to grow from 11 Mn
travelers to 3E Mn travels in the last decade.

Operational airports in the country have gone up from close to 40 airports

in 2004 to 81 airports at present.
 Air Travel in India

2 2 2 .2 2 %
2 .2
2%
2

2 2 .2 2 Total
iilAxsTte

% Domestic
Internationa
2
l
2

2
1 1 1 1 - 22 - 22 - 22 - 22 - 22 - 22 - 22 - 22 - 22 -
11 1 2 2 2 2 2 2 2 2
1
Steps taken by Wovernment to Promote
Tourism in Country.

Airline tickets, tour package are all set to go cheaper

with 2% reduction in service tax
State-run oil companies have slashed Aviation Turbine
Fuel (ATF) prices by 7%, the 11th reduction since
September last year.
Airport Charges to be cut for a limited period by 50%.
Removal of 8% excise duty on ATF.
Reduce the charges which airport operator
charges from the oil companies, leading to
enhanced performance.