Assessment of Opportunities and Challenges of Tourism Industry in Tamil Nadu

R.Nithila, Assistant professor, Dept.of. Business Administration, Sri Sarada Niketan

College for Women, Amaravathipudur.
Abstract
Today, tourism is one of the largest and dynamically developing sectors of external
economic activities. Its high growth and development rates, considerable volumes of foreign
currency inflows, infrastructure development, and introduction of new management and
educational experience actively affect various sectors of economy, which positively contribute to
the social and economic development of the country as a whole. For decades tourism industry
growth has been a major contributor to increased economic activity throughout the world. The
present study is an attempt to assess and analyze the opportunities, challenges and other related
issues of Assessment of Opportunities and Challenges of Tourism Industry in Tamil Nadu.
Keywords: Economic Benefits; Employment; Foreign exchange; opportunities; Challenges and
Marketing.
Introduction
Tamil Nadu is a unique state from the tourism point of view. The immense tourist wealth of
Tamil Nadu is one of the greatest assets of the State. Nature has bestowed Tamil Nadu with
countless number of tourist spots such as hill stations, beaches, wild life sanctuaries, bird
sanctuaries, zoological parks etc. The long and rich history of the Tamil language and society is
marked by temples, pilgrim centres, historical and heritage monuments etc. Tourism promotes
national integration, tolerance and understanding of different cultures. It encourages preservation
of monuments, heritage properties and eco-sanctuaries, helps survival of traditional art forms,
crafts and culture. It has achieved rapid strides due to its capacity to earn foreign exchange,
generate employment opportunities and inculcate a sense of heritage and fraternity in the minds
of people. Tourism is the third highest foreign exchange earner for India.
Objectives of the Study
To study the potential and economic benefits of Tourism Industry in Tamil Nadu.
To trace the growth of Tourism in Tamil Nadu state by taking into account both domestic
and foreign tourism.

 To find out the major Challenges and problems of Tourism Industry in Tamil Nadu.
Methodology
The study is mainly based upon the collection of secondary data. The secondary data was
collected from various sources of publications such as Magazines, journals, Research articles,
Internet and published and unpublished records on Tamil Nadu tourism.
Economic Benefits of Tourism Sector in Tamil Nadu
Tamil Nadu has tremendous potential in tourism sector. Tourism being a labour intensive
industry provides a very vast scope for employment opportunities in Tamil Nadu. The
employment opportunities provided by this industry are comparatively higher than other
industries. Tourism is regarded multi-segmental industry, therefore, it provides different types of
jobs like hotel managers, receptionists, accountants, clerks, guides, travel agents, chefs, transport
operators etc. The positive economic benefits of tourism industry in Tamil Nadu are:
Contribution to States income generations, Expansion of employment opportunities in the State
Tax revenue, Generation of Foreign exchange, Transformation of regional economy , Social and
Cultural effect , Up-gradation and expansion of basic infrastructure.
TABLE- I

Foreign Exchange Earnings (FEE) (in US$ Million)

From Tourism in India, 1997-2013 (till June)
Year

FEE from Tourism

in India (in US$
Million)

2003
2004
2005
2006
2007
2008
2009
2010#
2011#
2012#

4463
6170
7493
8634
10729
11832
11136
14193
16564
17737

Percentage (%)
change
Over the previous
year
43.8
38.2
21.4
15.2
24.3
10.3
-5.9
27.5
16.7
7.1

2013# (Jan to June)

9201

8.8@

# Advance Estimates, @ Growth Rate over Jan-June, 2012

Source: (i) Reserve Bank of India, for 1997 to 2009

(ii) Ministry of Tourism, Govt. of India, for 2010, 2011, 2012 & 2013
Top Five Destinations in India Maharashtra, Tamil Nadu, Delhi, Uttar Pradesh (UP) and
Rajasthan are top five destinations attracting maximum number of foreign tourists and
collectively account for 70 per cent of the total number of foreign tourists visiting India.
Tourist Arrivals to Tamil Nadu
Aggressive promotion and marketing campaigns through print and electronic media at the
domestic, national and international levels and creation and up gradation of basic amenities and
infrastructure at tourist spots have resulted in the increase of tourist arrivals to Tamil Nadu.
Tourist arrivals growth rate in Tamil Nadu -2001-2012. The following table shows increasing
trend of domestic and foreign tourists arrivals of Tamil Nadu from 2001 to 2012 it has shown
well growth of Tamil Nadu tourism .in 2001the growth rate is 3.4 of tourists arrivals in domestic
and foreign. It has increased up to 2004 whereas it shows a decreasing rate in 2005, but in 2005
the growth rate has boosted up to 21 % and it reaches 34 % of growth rate in 2012.
TABLE- II

Year (%)

Domestic

Foreign

Growth rate

2001
2002
2003
2004
2005
2006

23812043
24661754
27059002
30076832
32339478
39214721

773073
804641
901504
1058012
1179319
1335661

3.4
3.6
9.8
11.4
7.7
21

2007

50647188

1753103

29.2

2008

62618252

2040419

23.4

2009
2010

78037607
103010435

2369050
2804504

24.4
31.6

2011
2012

136750750
184136840

3308438
3561740

32.4
34

2013

244232487

3990490

32.02

Source : commissioner of Tourism Chennai-2

The Major and Important Tourist Developed Places of Tamil Nadu
The issue of tourism development and its promotion is very significant as far as the Tamil Nadu
state is concerned. In the changing economic global scenario, the Govt. of India and state govt.
have understood the importance and significance of tourism industry. In case of the state, tourism
has developed more easily like other already developed states [Kerala, Andhra Pradesh,
Karnataka, U.P., Goa, Rajasthan and H.P.]. Being the strategic location of the state, surrounded
by the Bay of Bengal, Arabian Sea and Indian Ocean and Southernmost state of Indian
peninsular. Keeping in view the area of largest coastline with full of beautiful beaches and
spectacular ancient temples, waterfalls, hill station and rarest picturesque hills, the tourist are
now choosing Tamil Nadu as their best choice of tourist destination. The region has also become
now the major tourist hub of not only India but almost all foreign tourists. Hence, it has become
the first choice for millions of tourists over the years being well connected to air, train, and road
including ports to all the major cities of the country as well as important cities of world that is
why maximum tourists are choosing Tamil Nadu as their best choice of tourist destination.
Tourist potential places of Tamil Nadu state
S.No

Districts

Potential Tourist Places

1.
2.
3.

Thiruvallur
Vellore
Nagapattinam

4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Pudukottai
Perambalur
Salem
Namakkal
Dharmapuri
Erode
Coimbatore
Theni
Dindigul
Tirunelveli
Kanniyakumari

(i)Periyapalayam, (ii) Pulicat

(i)Yelagiri
(i)Thirukkadaiyur, (ii)Vedaranyam,
(iii)Tranquebar, (iv)Thirumanancheri
(i)Sithannavasal
(i)Puliancholai
(i)Tharamangalam
(i)Kolli Hills
(i)Hogenakkal
(i)Bavani Kooduthurai
(i)valparai
(i)Megamalai
(i)Sirumalai
(i)Thiruppudaimaruthur
(i)Thiruparappu

of Ministry of Tourism, Govt. of India.

Tourism products of Tamil Nadu

Total
number of
places: 18
Source :
Dept. of
tourism &
culture,
Govt. of
Tamil
Nadu,
Chennai,
National
Tourism
Policy 2002

The State of Tamil Nadu offers a very large number of marketable products. While looking from
tourist point of view, each district of the State has so much to offer such as:
1. Leisure Tourism

8. Pilgrimage Tourism

2.Heritage Tourism

9.Adventure Tourism

3.Cruise Tourism

10.Rural Tourism

4.Responsible Tourism

11.Business Tourism

5.Medical Tourism

12.Eco Tourism

6.Culture Tourism

13.Educational Tourism

7.Sports Tourism
The above mentioned products could be exploited by means of a well-laid tourism policy. Thus,
tourist information offices should be opened in all the major cities of India and abroad, which
must provide the information to the tourists about the various tourist destinations in Tamil Nadu.
Further, the identified products should be made marketable and attractive to lure tourists. And
this is possible only if investments are made in the following infrastructure:
- Up- gradation and expansion of Roads and Local Transport
- Modern International Level Luxury Sightseeing Coaches
- Operation of Air Services to various tourist destinations
- International Standard Hotel Accommodation
- Recreational Facilities
- Amusement Parks, Health clubs, Indoor Skating Rinks etc.
Challenges of Tourism Industry in Tamil Nadu
Infrastructural Challenges
Accommodation The various kinds of accommodation facilities in the state have been analysed.
The categories identified for this purpose are star hotels, budget hotels, heritage hotels, paying
guest accommodation, and dormitories. The market survey indicates that there is a shortage of
accommodation, particularly the budget hotels, paying guest accommodation, and dormitories
during the tourist season across the state. The number of tourists is larger than can be
accommodated in these hotels in several tourist destinations particularly at Kanyakumari and
Ooty.

Travel and Transport The travel and transport situation (condition) at tourist destinations across
the state, as per the market survey, Among the pilgrim destinations only Madurai and Trichy
have an airport catering to domestic requirements. All destinations do have a broad gauge
railway facility. As regards the government bus stand, those at Chidambaram, Madurai, and
Trichy appear to be congested; the rest are spacious. Kancheepuram and Srirangam, quite like
other pilgrim destinations do offer a chartered bus service to tourists but the frequency is less.
Among the pilgrim destinations, only Rameshwaram has a port.
Environmental Challenges
Land Tourism is a major contributor for degrading soil quality of the localities where tounsm
boom is evident. The sudden change in land use pattern will result in unforeseen consequences.
Accumulation of waste and garbage in small areas due to heavy tourist Inflow causes Irreparable
damage to the soil of the area. This is observable in Tamil Nadu. It is more evident in Ooty,
Kodaikanal and mamallapuram.
Water Pollution of streams and water sources is a permanent danger associated with tourism
development. This is clearly observable in all tourism areas. garbage in the upstream areas.
Tourist infrastructure is highly water intensive. Most of the tourist areas are suffering from acute
water shortage. Ground water exploitation resorted to escape from this problems.
Air Air pollution in the tourist areas is acute. A small locaiity is put under the pressure of
thousands of vehicles during a season, namely private vehicles, The emissions caused by teeming
vehicles destroy the air quality of the area. This is observable in Ooty ,Kodaikanal and
mamallapuram.
Climatic conditions in the tourist localities change dramatically due to tourism development.
Garbage. water pollution, deforestation, soil erosion, air pollution, ground water exploitation are
related and lead to massive changes in the climate of the locality.

Tourism and Marketing As a measure to attract large number of tourists and to reach out to
them, the Department of Tourism has launched the following initiatives:a) Brand Promotion Discover Tamil Nadu Campaign As an opening gambit, a special
campaign Discover Tamil Nadu 2012-2016 is being rolled out. The Department will arrange for
Fairs & Festivals and special events during this period in India.
b) Long Term Brand Building and Promotion The long term time frame for the policy is
taken to be from 2012 to 2023 and beyond. The 32 campaign will project that Tamil Nadu is not
only the land of temples but also a state endowed with many tourist attractions to enhance quality
and comprehensive visitor experience and an all season destination. Publicise the State as an all
season destination.
c) Market Research Continuous research and planning will be undertaken to evolve new
tourism products / circuits / destinations. This will be done in-house or will be outsourced by
hiring experts. The new products will be given adequate publicity. To keep the interest of the
tourist alive, products will be remodeled at least once every three years.
Issues to be addressed in the strengthening of tourism in Tamil Nadu:
Cooperating with the already existing IT cluster Tamil Nadu has a very highly technically
skilled manpower. Tamil Nadu is emerging as a prominent IT region in the world. The state does
possess a sufficiently strong array of interrelated key and supporting IT businesses to build future
success and development of the tourism industry.
Tourist Information Centres In order to disseminate information about tourism in Tamil Nadu,
the State Government has opened 19 tourist information centers - 16 at local railway station and
airports and 3 in other states. It is very important to make these centers truly available to tourists.
Tourist offices should be opened 24 hours - 7 days a week - at airports and possibly railways.
Price Discrimination It is a common practice in India to charge foreigners more for attractions
than locals. For instance, visiting the temples in Mamallapuram costs 10 Rs for Indians and Rs
250 for foreigners. It is important that foreigners should feel that they get same value out of the
higher fees.

Conclusion

Tamil Nadu state natural and human resource attributes that could lead easily to a vibrant tourism
industry. The government should assure this growth by adopting strategies to enhance private
sector participation in tourism, as well as take advantage of resources available through the IT
industry. Likewise, the state government should provide proper basic services and the academic
environment for the proper training of tourism operators. Accommodation, which caters to
domestic and international tourist, is an important input which follows in to overall tourism
system. Tamil Nadu is served by an extensive road network, providing links between urban
centers, agricultural market-places and rural areas. Tamil Nadu has a well-developed rail network
as part of Southern Railway. This kind of infrastructure attracted the tourists. The study region
has been significantly successful in its tourism efforts in creating a key platform for both
domestic and foreign traffic. The entire region has vast untapped potential in tourist and its allied
sectors and there is a lot of scope for its future development and promotion.
References
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2 . Journal of environmental research and development vol. 5 no. 2, october-december 2010
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april-june,2014 page 245
4. International Journal of Geomatics and Geosciences Volume 5 Issue 2, 2014
5. International Journal of Advance Research, IJOAR .ORG ISSN 2320-9151
IJOAR 2014 http://www.ijoar.org pp11-13
6. State Government of Tamil Nadu, Tourism Policy Note, p 27
7. Tamil Nadu Tourism Development Corporation, www.tamiltourism.org
8. http://www.spc.tn.gov.in/annualplan/ap2008_09/2_27_tourism.pdf
9. http://www.tamilnadutourism.org/pdf/policy-note-2012-13-english.pdf
10. http://www.equitabletourism.org/files/fileDocuments1177_uid18.pdf