CHAPTER-II

NATURE, SCOPE AND

DEVELOPMENT OF TOURISM

- NATURE OF TOURISM

- COMPONENTS OF TOURISM

- SCOPE OF TOURISM

- CAUSES OF RAPID GROWTH OF TOURISM

- IMPACT OF TOURISM

- TOURISM - A GLOBAL REVIEW

- TOURISM IN INDIA
 CHAPTER - II
NATURE, SCOPE AND DEVELOPMENT OF TOURISM
This chapter is devoted to the discussion of nature, scope and
development of tourism - a global review and tourism in India. Tourism
is a basic and most desirable human activity deserving all encouragement
and support from the people and the governments. In 1950s tourism
was considered to be a privilege of a few rich and was not accessible to
lower and middle class people. But with a rise in income and standard
of living of common people in the country, it is within the reach of middle
and also working class people. Travel, today, is no more a privilege for
a particular class but is common for most of the people.
Tourism is not only an economic activity of importance for national
development but also an important medium of cultural exchange among
nations of the world. Although a lot of emphasis has been laid on the
economic role of tourism but it is time now to understand the importance
of tourism as a means of social education and social mobilisation in the
country itself. Before discussing the role of tourism in development of
an economy, its meaning should be properly understood. The concept
of tourism found vivid expression in the definition of the Swiss Professor
Hunziker and Krapf in the year 1942. They stated, "Tourism is the
totality of the relationship and phenomena arising from the travel and
stay of strangers, provided the stay does not imply the establishment of
permanent residence and is not connected with remunerated activity".
This definition brings out the following three distinct elements of tourism:
i. involvement of travel by non residents
ii. stay of temporary nature in the area visited, and,
iii. stay not connected with any activity involving earnings
Tourism was first studies by geographers half a century ago. Early
American geographers considered tourism as a distinct and significant
form of land used and concentrated on the economic aspect of tourism.
However, tourism is a composite phenomenon. Its other aspects like
social, recreational and cultural are equally important. In fact, tourist is
a holiday maker who is in search of relaxation, knowledge, pleasure,
etc. The recreational, social, educational and cultural aspects make
tourism a social phenomenon.
Conceptually tourism therefore, distinguishes in particular from the
related concept of leisure and recreation on the one hand and from the
travel and migration on the other.
Tourism in real sense is essentially a pleasure activity. In this, money
earned in one's normal place is spent in the places visited. It involves a
discretionary use of time, place and money. In short we can say that
tourism is travel which is temporary, voluntary and without any
remunerative employment.
NATURE OF TOURISM

Tourism is a multi-facet activity. It touches nearly all the sectors of

life. Rapid and continuous growth has been the key-note of tourism.
The present day, a traveller comes from a wider social background and
his tastes and desires are much more varied and his leisure time is
much more restricted. Now a days people have started moving for
exciting and exotic activities of mountaineering, water skiing, under
water swimming, pony tracking, etc. to utilise their leisure time. They
2.2
like riding, boating, shooting, etc. organised by large private groups,
constructing their own specially designed low-priced accommodation
and very often providing their own entertainment and other services.
Tourism is, in fact, a composite phenomenon which embraces the
incidence of a mobile population of travellers who are strangers to the
places they visit.
COMPONENTS OF TOURISM
Tourism does not exist in isolation. It consists of certain components.
The basic components of tourism can be classified into the following
broad groups:2
i) Attraction
ii) Transport
iii) Accommodations
iv) Supporting facilities
v) Infrastructure
i) Attraction :
There may be different attractions due to which a tourist wants to
visit a particular area or he wants to spend his holidays in a specific
region. These attractioins have been classified in a variety of ways.
Firstly, distinction is usually made between natural features such
as land forms, flora & fauna, and between man-made objects- historic
or modern in the form of cathedrals momuments, historic buildings
or amusement parks, etc. A second general category embraces man
and his culture as expressed through language, music, fold lore,
dances and cuisine and so forth.
2.3
ii) Transport
Historically, the development of tourism has been closely associated
with development and advancement in transport technology.
Different modes of transport like a motor car, a coach, an aeroplane,
a ship or a train enable a traveller to reach the pre determined
spots. In addition to increasing the volume of tourist traffic, the
advancement in transportation has also changed the pattern of tourist
flows and hence the pattern of growth of tourism.
iii) Accommodation
Accommodation is one of the most important components of tourist
services required at the tourist complexes. Different types of
accommodations are available now-a-days to the tourists. There
are mainly two sectors so far as forms of accommodations are
concerned.One is commercial sector consisting of hotels, motels,
boarding houses, holiday inns, etc. The other is the private sector
providing private permanent residences used for hosting friends
and relatives.
iv) Supporting Facilities
Besides the provision of immediate facilities like transportation and
accommodations, a great many supporting services are also
required|by the tourists. A variety of shops is needed to serve the

tourists with sporting goods and other general range of goods. Hair
dressers, food stores, chemist shops, sport activities,banks and

medical centres are among the other services required for

development of tourism.
2.4
v) Infrastructure
An adequate infrastructure will be needed to support the facilities
and services mentioned above. Both transport infrastructure like
roads, parks, railway lines and airfields and public utilities in the
form of electricity arrangements and sewerage disposal

arrangements are necessary for successful tourist development.

Above mentioned components must be properly developed for
efficient functioning of tourism. For this a wide range of
development agents are required.
SCOPE OF TOURISM
The tourism phenomenon has attracted almost the entire world. It
is not only the economic compulsion to earn foreign exchange, but a
sense of social obligation that makes for a sound tourism policy. Tourism
industry has taken rapid strides in the recent years as an instrument of
all round economic growth. The wide ranging achievements in this
field have led to a marked improvement in general standard of living.
Being a service industry, it creates employment opportunities for the
local population. It is a major source of income and employment for
individuals in many places deficient in natural resources which cannot
readily contribute to the economic prosperity of the local people except
through the medium of tourism. Tourism has become a significant factor
in redressing regional imbalances in employment and income. This
aspect of provision of more employment becomes more important in a
developing country where the level of unemployment and
underemployment tends to be high.3
2.5
Tourism is a prelude to growth in other sectors and the Govt, is the
single largest beneficiary. It is also a major source of foreign exchange
earnings. It can help to correct adverse trade balance and regional
imbalances. It has the advantage of being a painless mechanism for
transfer of resources from the high income developed countries to the
low income developing countries. In economic terms, tourism is both a
labour-intensive and capital-intensive industry. It has a vast potential

for employment, direct and indirect. The employment generation by

tourism development assumes special significance in the present
conditions prevailing in India. If properly developed, it can be an
effective vehicle for promotion of growth and development of different
regions. It gives a direct stimulus to socio-economic development of
various parts of the country.
Tourism is not only an economic activity vital to national development,
but also an important medium of cultural changes among nations of the
world. It can play an important role as a means of social education and
social mobilisation in the country itself, as a compelling force for fostering
better understanding among nations of the world, for developing closer
cultural and business relations and as a significant factor contributing
to world peace.
For India, tourism could be an important economic factor particularly
when we anticipate a serious balance of payment problem. It is so because
tourism could earn a considerable foreign exchange without, in any
way, depleting our national resources. Tourism is a highly competitive
industry and includes the following segments :
2.6
i) Hotels, motels and restaurants.
ii) Carriers such as Indian Airlines, Air India, Railways and Road
Transport.
iii) Travel agents, tour operators and tour guides.
iv) Central and state Govt, departments and corporations concerned
with tourism.
Tourism, in fact, is an important human activity with great scope.
The complex nature of tourism phenomenon implies that various
academic disciplines are involved in its study. Some basic disciplines
such as economics, psychology, sociology, authoropology and geography
contribute a great deal to this field. Certain newer disciplines such as
Business Management and Public Administration have also introduced
diploma courses for developing tourism.
CAUSE OF RAPID GROWTH OF TOURISM
The basic causes of this rapid growth of demand for tourism in
India in the recent decades are economic, social and technological in
nature. Rising per capita income leading to higher purchasing power
and an increase in discretionary income have made tourism accessible
to a large majority of people. Today people in every country can afford
an annual holiday. In fact many can even afford to take second holiday.
Increased mobility as a result of use of latest means of transport is
another important factor responsible for growth of tourism. The
principle factors responsible for the phenomenal growth in tourism
during the last three decades are as follows:
i) Industrial Development and Urbanisation
Large scale industrial development coupled with pollution and over
2.7
 crowding in the cities have led to the people's search for sun, sand

and the pure mountain air during annual holiday.4

ii) Education and Culture

The spread of education and culture among people has created a

natural curiosity in them to travel and discover how others live and

work.5

iii) Rising Standard of Living

The rapid economic growth has raised the standard of living of

people in India with sizeable disposable income. A part of this income

is now spend on travel and fun making by the people.

iv) Technical Advancement

Development in means of transport and communication,

advancement in accommodations facilities and other sectors

accelerate and facilitate tourism, travel, stay and enjoyment.

v) Foreign Exchange Earnings

Since tourism has a great potential for earning foreign exchange,

international tourism is given a boost in India to redress our adverse

balance of payment. India is becoming more and more interested

in the development of international tourism to increase its foreign

exchange earnings. Tourism has substantially contributed to the

foreign exchange earnings which have increased from Rs. 32 crores

in 1974-75 to more than US $ 3.5 billion in 2003. Today India

earns one third of its foreign exchange through tourism industry.

2.8
vi) Political Stability
Tourism in India has been developed mainly after independence
simply because tourism is a peace elastic phenomenon and prospers
best in peace. Only after independence there could be political
stability in India and relations with other countries of the world
could be developed. International understanding and cooperation

have accelerated travel and tourism in our country.

vii) Publicity and Promotion - Govt.'s Interest
Govt, of India has actively been promoting tourism like any other
product. This has resulted in the current travel boom.
viii) Social Causes
Besides economic causes, certain social causes like new attitude
towards travel, leisure, entertainment, recreation improved health
condition and population growth have also been responsible for
rapid growth of tourism in the country.
IMPACT OF TOURISM
The impact of tourism has been increasingly realised because of its
social, economic, cultural, political and aesthetic implications. Tourism
has no longer to be an adventure to be undertaken by a few. Recent
phenomenal increase in tourists traffic all over the world testify that it is
an activity to be enjoyed by common masses. The importance of tourism
in various fields is evaluated under this section as follows :
Economic Impact
Economic Impact of tourism can be studied in relation to its
contribution to increase in national income, foreign exchange earnings,
employment, return on investment, conservation of resources, etc.
2.9
Contribution to National Income
Interest in tourism in various countries has been generated due to
its potential to increase the income level of people. The foreign tourists
spend a lot of money on their holiday trips which has a multiplier effect
on the income of the local people. However, this multiplier effect is curved
by the leakage in the economy particularly by the import content of this
industry. It is generally observed that the multiplier effect of tourism
both in respect of income and employment is very high. In recent years,
therefore, the importance of tourism as a tool of economic development

has been appreciated.

Contribution to Foreign Exchange Earnings
An important problem in the developing countries is the acute
shortage of foreign exchange. Since most of the foreign tourists come
from the developed countries forming the hard currency area, efforts
are to be made to attract more foreign tourists. Expenditure by foreign
tourists in the tourist receiving countries forms a main source of foreign
exchange to them.
Contribution to Employment Generation
The importance of tourism in the national economy can be judged
with reference to the contribution to the generation of employment.
This aspect of tourism is of immense importance for underdeveloped
countries where there is a large-scale unemployment and where
employment opportunities grow at a very slow rate. It is observed that,
Tourism, as an industry, enjoys a high rank as a generator of employment
for an investment of a given amount, in comparison to other industries.
2.10
This industry had generated direct employment to 5.5 million, indirect

employment to 8 million by 90-91. Apart from direct employment created

by hotels, the tourist industry generates multiple effects by providing

employment opportunities in ancillary industries.

Effect on Prices
Tourism industry has a great impact on the prices of various

commodities available in the local market. Tourists compete with the

local customers and are at times in a mood to pay slightly extra price.

They specially compete in the field of accommodations. Apart from the

direct influence of tourists spending, we should also consider the

influence of tourists expenditure incurred by persons associated with

tourism as such.
Tourism can be visualised as an important factor activating the idle

resources of the nation. The tourist industry creates a demand for the

products which otherwise would remain idle. From this point of view,

tourism, no doubt, contributes to intensive utilisation of national

resources. However, since our natural resources are limited, tourism

may result in rapid depletion and exhaustion of these limited resources.

This is particularly true in case of hunting of wild life.

TOURISM - A GLOBAL REVIEW

Today, tourism is a global industry. However, a few locations are

too remote to be tourist destinations. Areas virtually unexplored only a

few decades ago, are today successful tourist destinations. Even the

south polar region has been successfully promoted by one of America's

2.11
most prominent tour companies. Little-known areas such as New Guinea,
the outback of Australia and the remote Maidive Islands in the South

Indian ocean are visited by travellers every year. The amounts of money
spent by international travellers have also been steadily rising and, today,
tourism is one of the world's largest items in international trade. Equally
important is the social perspective, because tourism often involves
interaction between people from vastly different cultures. And when
this interaction takes place at the scale that tourism has assumed today
and 700 million people are crossing international borders for tourism
purposes, the potential for social impact and improved understanding is
obvious. Tourism has come a long way since the time of the Sumerians
and other ancient people who first began to travel for trade purposes.
Today tourism is viewed as an economic and social force of major
proportions in this world.6
Table No. 2.1 shows that the total international tourist arrival in the
entire world was 515.7 million in the year 1993. It increased to 50 million
in 1994. In 1995 it remained constant, but in 1996, it again increased to
597 million. It showed an increasing trend upto 2000 and it increased to
786 million in 2000. But in 2001, it showed a minor decline and it
decreased to 684 million. In 2002, it again showed an increasing trend
and it increased to 703 million. But, again in 2003 it showed a decreasing

trend and it decreased to 694 million. The annual percentage increase

in tourist arrival was 3.0, 6.7, 0.0, 8.5, 3.5, 1.3, 4.1, 5.4, -0.5, 2.7 and -1.2
from 1993 to 2003 respectively. The average increase of the 11 year
(1993 to 2003) was 3.05.
2.12
Table No. 2.1
International Tourist Arrival
(Figure in Million)
Year World India %age share of
Tourist Tourist India in World
Arrival %age Arrival %age Tourist arrival
Change Change

1993 515.7 3.0 1.8 - 5.5 0.34

1994 550.0 6.7 1.9 6.9 0.34

1995 550.0 0.0 2.1 12.6 0.39

1996 597.0 8.5 2.3 7.7 0.38

1997 618.0 3.5 2.4 3.8 0.38

1998 627.0 1.3 2.4 - 0.7 0.38

1999 652.0 4.1 2.5 5.2 0.38

2000 687.0 5.4 2.6 6.7 0.39

2001 684.0 - 0.5 2.5 - 4.2 0.37

2002 703.0 2.7 2.4 - 6.0 0.34

2003 694.0 - 1.2 2.7 14.3 0.39

World Average increase of 11 years = 3.05

India's Average increase of 11 years = 3.71

Source : Indian Tourism Statistics - 2003

2.13
 International Tourist Arrival (World)
(Figure in Million)
800
700
600
500
400
300
200
100
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
 Table No. 2.2 shows that total tourism receipt of all the countries of
the world was US $ 321.9 billion in the year 1993. It showed an increasing
trend upto the year 2000 and it increased to US $ 477 bn in 2000 but in
the year 2001 it showed a decreasing trend and it decreased to US $
463.6 bn but in 2002 and 2003 it again showed an increasing trend and
it increased to US $ 474.2 and 515.4 bn respectively. In the year 2003,
though there was 1.2 percent decrease in tourist arrival, but tourism
receipt showed a healthy increase of 8.5 percent.
Table No. 2.3 shows that during the year 2000, 2001 and 2002
France, Spain, USA, Italy, China, U.K., Canada, Mexico, Austria and
Germany were at the top among leading tourist arrival countries. There
was no major change in this structure during these three years except
USA was at no. 2 and Spain at no. 3 in the year 2000, but during 2001
and 2002 Spain was at No. 2 and USA was at no. 3.
Table No. 2.4 shows that the top 10 countries in tourist receipts
during the year 2000 were USA, Spain, France, Italy, U.K., Germany,
China, Canada, Austria and Greece. In the year 2001 the upper four
positions remained the same. But China which was at No. 7 in 2000
went up at no. 5 in the year 2001 and U.K which was at no. 5 in 2000
went down to no. 7 in the year 2001. Other countries remained at their
same positions. In the year 2002 also there was no major change except
Hong-Kong which was at no. 13 in the year 2000 and 2001 went upto no.
9 and Austria which was at no. 9 during 2000 and 2001 went up to no. 8
in the year 2002. Canada which was at no. 8 during 2000 and 2001 went
down to no. 11 in the year 2002.

2.15
Table No. 2.2
International Tourist Receipts
(Figure in Billion US $)

Year World India %age share of

Tourist Tourist India in World
Receipts %age Receipts %age Tourist receipts
Change Change

1993 321.9 2.1 2.1 - 0.1 0.66

1994 354.9 10.3 2.3 7.0 0.64

1995 405.3 14.2 2.7 0.7 0.64

1996 436.5 7.7 2.8 9.6 0.65

1997 439.7 0.7 2.9 2.0 0.66

1998 442.5 0.6 2.9 2.0 0.67

1999 457.2 3.3 3.0 2.1 0.66

2000 477.0 4.3 3.2 5.3 0.66

2001 463.6 - 2.8 3.0 - 4.0 0.66

2002 474.2 2.3 2.9 - 3.9 0.62

2003 514.4 8.5 3.5 20.9 0.69

World Average increase of 11 years = 4.65

India's Average increase of 11 years = 4.96

Source : Indian Tourism Statistics - 2003

2.16
 International Tourist Receipts (World)
(Figure in Billion US $)
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
TABLE No. 2.3

DURING 2000. 2001 & 2002 THE COUNTRIES UPPER HAND

FROM INDIA IN TOURIST ARRIVALS

S.N. Nationality Tourist S.N. Nationality Tourist S.N. Nationality Tourist

Arrival Arrival Arrival
(000) (000) (000)
2000 2001 2002

1. France 75580 1. France 75202 1. France 77012

2. U.S. 50945 2. Spain 50094 2. Spain 51748

3. Spain 47898 3. U.S. 45490 3. U.S. 41892

4. Italy 41181 4. Italy 39055 4. Italy 39799

5. China 31229 5. China 33167 5. China 36803

6. U.K. 25211 6. U.K. 22833 6. U.K. 24180

7. Russian 7. Russian 7. Canada 20057

Fedration 21169 Fedration 21169
8. Maxico 19667
8. Maxico 20641 8. Maxico 19811
9. Astria 18611
9. Canada 19663 9. Canada 19697
10. Germany 17969
10. Germany 18983 10. Astria 18180
11. Hongkong 16566
11. Astria 17982 11. Germany 17861
12. Hungry 15870
12. Poland 17400 12. Hungry 15340
13. Greece 14180
13. Hungry 15571 13. Poland 15000
14. Poland 13980
14. Greece 13096 14. Hongkong 13725
15. Malasia 13292
15. Hongkong 13059 15. Greece 13096
16. Turcky 12782
16. Purtgal 12097 16. Malasia 12775
17. Purtgal 11666
17. Switzerland 11000 17. Purtgal 12167
18. Thailand 10873
18. Malasia 10222 18. Turcky 10783
19. Switzerland 10000
19. Netherlands 10003 19. Switzerland 10700
20. Netherlands 9595
20. Turcky 9586 20. Thailand 10133

2.18
TABLE No. 2.3 COTD

S.N. Nationality Tourist S.N. Nationality Tourist S.N. Nationality Tourist

Arrival Arrival Arrival
(000) (000) (000)
2000 2001 2002

43. Dominikan 2973 43. Bulgaria 3186 43. Bahrian 3167

44. Andora 2949 44. Swedan 2894 44. Parto Rico 3087

45. Arjantina 2909 45. Finland 2826 45. Swedan 2894

46. Bulgaria 2785 46. Romania 2820 46. Finland 2826

47. Swedan 2746 47. Dominikan 2778 47. Arjantina 2820

48. Finland 2714 48. Syprus 2697 48. Romania 2820

49. Syprus 2686 49. Arjantina 2629 49. Dominkan 2811

50. India 2649 50. Tiawan 2617 50. Sirian Arab 2809

51. India 2537 51. Tiawan 2726

52. Syprus 2697

53. India 2384

Source : Indian Tourism Statistics - 2003

2.20
TABLE No. 2.4

DURING 2000, 2001 & 2002 THE COUNTRIES UPPER HAND

FROM INDIA IN TOURIST RECEIPTS

S.N. Country World S.N. Country World S.N. Country World

Tourist Tourist Tourist
Receipt Receipt Receipt
(Million US $) (Million US $) (Million US $)

1. U.S.A. 82042 1. U.S.A. 72295 1. U.S.A. 66547

2. Spain 31454 2. Spain 32873 2. Spain 33609

3. France 30754 3. France 29979 3. France 32329

4. Italy 27500 4. Italy 25787 4. Italy 26915

5. U.K. 19544 5. China 17792 5. China 20385

6. Germany 18483 6. Germany 17225 6. Germany 18158

7. China 16224 7. U.K. 16283 7. U.K. 16283

8. Canada 10704 8. Canada 10774 8. Austrai 11237

9. Austria 9931 9. Austrai 10118 9. Hongkong 10117

10. Greece 9219 10. Greece 9219 10. Greece 9741

11. Australia 8452 11. Turcky 8932 11. Canada 9700

12. Maxico 8295 •i 2, Macxico 8401 12. Turcky 9010

13. Hong Kong 7886 13. Hongkong 8241 13. Macxico 8858

14. Turcky 736 14. Australia 7625 14. Australia 8087

15. Russian Fed. 7510 15. Switerland 7618 15. Thailand 7902

16. Switzerland 7500 16. Russian Fed. 7510 16. Netherland 7706

17. NetherlandI 7217 17. Belgium 6917 17. Switzerland 7628

18. Thailand 7146 18. Thailand 6731 18. Belgium 6892

19. Korea 6811 19. Netherland 6722 19. Malasia 6785

2.21
TABLE No. 2.4

S.N. Country World S.N. Country World S.N. Country World

Tourist Tourist Tourist
Receipt Receipt Receipt
(Million US $) (Million US $) (Million US $)

20. Belgium 6588 20. Korea 6238 20. Purtgal 5917

21. Poland 6100 21. Singapur 6018 21. Indonasia 5411

22. Singapur 6018 22. Purtgal 5479 22. Korea 5277

23. Indonesia 5749 23. Indonesia 5411 23. Singapur 4932

24. Purtgal 5257 24. Malasia 4936 24. Poland 4500

25. Malasia 4936 25. Poland 4815 25. Macao 4415

26. Misr 4345 26. Sweden 4162 26. Taiwan 4197

27. Brazil 4228 27. Taiwan 3991 27. Russian Fed. 4188

28. Sweden 4034 28. Hungry 3933 28. Swedan 4162

29. Denmark 4025 29. Denmark 3923 29. Denmark 3923

30. Israil 3819 30. Misr 3800 30. Krosia 3811

31. Tiawan 3738 31. Macao 3745 31. Misr 3764

32. Hungry 3438 32. Brazil 3701 32. Japan 3499

33. Ireland 3387 33. Ireland 3547 33. Hungry 3273

34. Japan 3373 34. Crosia 3335 34. Brazil 3120

35. Macao 3205 35. Japan 3301 35. Ireland 3089

36. India 3168 36. India 3042 36. Ucrain 2992

37. ChekRep. 2979

38. India 2923

Source : Indian Tourism Statistics - 2003

2.22
 With all this growth, the total arrival of tourists represents only

about 7% of the potential and capable travellers of the world's population.

Therefore, the future growth potentials are phenomenal. The future

projections given by the World Tourism Organization and the World

Tourism and Travel Council are extremely impressive

by 2020 there will be 1.6 billion international tourist arrivals

worldwide.
and they will be spending about $ 2000 billion,

the sustained annual average growth rate in tourism will be 4.3

percent in arrivals and 6.7 percent in receipts - which is far above

the probable expansion of the world's wealth, which will be growing

only at about 3 percent per annum,

between 1995 and 2005, 144 million new jobs would have been

created in this sector -112 million of them being in the Asia Pacific

region alone.7

TOURISM IN INDIA

Travel is an ancient phenomenon. From earliest times travel has

had a fascination for man. But much of the travel in the earlier times was

unconscious and rather a simple affair. At that time no formalities existed.

Travel in the remote past was not considered a thing of pleasure as is

the case these days. The man in ancient times travelled as a merchant,

a pilgrim, a scholar, and even a curious way-farer looking forward to

new and exciting experiences. Travel and commerce was the strongest
motivating force which made people travel to distant lands in order to

2.23
TABLE No. 2.3 COTD

S.N. Nationality Tourist S.N. Nationality Tourist S.N. Nationality Tourist

Arrival Arrival Arrival
(000) (000) (000)
2000 2001 2002

21. Thailand 9579 21. Netherland 9500 21. RusianFed.7943

22. Singapur 6917 22. Singapur 6726 22. Saudi Arab 7511

23. Ireland 6749 23. Krosia 654 23. Singapur 6996

24. Belgium 6457 24. Belgium 6452 24. Krosia 6944

25. Saudi Arab 6295 25. Ireland 648 25. Belgium 6724

26. S. Africa 6001 26. Saudi Arab 6295 26. Makao 6565

27. Krosia 5831 27. S.Africa 5908 27. S.Africa 6550

28. Koria 5322 28. Macao 5842 28. Ireland 6476

29. Brajil 5313 29. Ucrain 5791 29. Ucrain 6326

30. Macao 5197 30. Tunisia 5387 30. U.A.E. 545

31. Misr 5116 31. Chek 5194 31. Korea 5347

32. Indonesia 5064 32. Indonasia 5154 32. Japan 5239

33. Tunisia 5057 33. Koria 5147 33. Chek 5194

34. Australia 4946 34. Australia 4817 34. Tunisia 5064

35. Japan 4757 35. Brajil 4773 35. Indonesia 5033

36. Chek 4666 36. Japan 4772 36. Misr 4906

37. Ucrain 4406 37. Misr 4357 37. Australia 4841

38. Narve 4348 38. Narve 4244 38. Narve 4244

39. Moroco 4113 39. Moroco 4223 39. Moroco 4193

40. U.A.E. 3907 40. U.A.E. 3907 40. Brajil 3783

41. Parto Rico 3341 41. Parto Rico 3551 41. Andora 3516

42. Romania 2995 42. Andora 3616 42. Bulgaria 3186

2.19
seek fortunes. Gradually, opening of new trade routes gave a big boost
to travel. Travellers from distant lands started moving about in large
numbers and made contacts with one another resulting in increased
flow of trade and commerce. Trade relations then matured into cultural
relations and better understanding of ways of life of different people.8
With the development of growth of civilization, conscious travel in
order to explore and see the world began. The invention of money by
the summerians and development of trade and commerce in about 4000
B.C. perhaps marked the beginning of the era of conscious travel.
Summerians first grasped the idea of money and used it in their various
commercial dealings. Many traders could pay for transportation as well
as accommodation either with money or by the exchange of goods.
Shulgi, the ruler of ancient Babylonia, claimed to have protected roads
and built rest houses a various places for respectable way - fares. The
forerunners of modern day accommodation, these rest houses were the
ideal places for halt for the ancient travellers.
Homer's odyssey records the wonder lust of the ancient Greeks.
The Phoenicians were probably the first real travellers in the modern

sense as they travelled from place to place as traders. India attracted

travellers from all over the ancient world. The main attracting force was
trade and commerce. India and China enjoyed the reputation of being
countries of fabulous wealth. It is on record that long before the Christian
era, travellers came to India in search of fortune. This trend continued
till the time when Europeans began moving towards Indian shores for
the sole purpose of trade and commerce.9
2.24
 Not only did India attract a series of invaders starting with Alexander
of Macedonia, but also great travellers like Vascode-Gama. Many
foreigners, Arabs and Europeans alike came to India to establish trading
posts, The great explorer, Christopher Columbus set out to find a new
route to India and in the process discovered the new world of the present
day America, India throughout had a great fascination for foreign
travellers, Mark Twain10 described it as a fabulous world of "splendour
and rags, the one country under the sun with an imperishable interest,
the one land that all men desire to see". Besides trade and commerce,
the growth of religious movement had also been very conductive to the
growth of tourism. Today, because of quick and cheap means of
transportation, travel has become more convenient and has diversified
in many fields like study of historical places, cultural curiosity for a
particular place and study of literature and art. Main contributory
factor for modern travel is education. Improvements in languages, skills,
currency and customs of different countries have also given a big boost
to the free movement of people of these countries.
The tourism phenomenon has attracted the entire world. But India
is one of the most promising tourists' destination in the world. It abounds
in tourism potential in all spheres-be it historical and cultural, hills and
forests, be it wild life, hot springs or be it fairs, festivals and people. The
beauty of its ancient monuments, classical dances that have come down
the ages almost unchanged, snow clad mountain tops, the quite
backwaters of Kerala and their beautiful beaches, the immortal Taj, the
Dravadian Temples of the South, world famous frescoes of Ajanta and
2.25
Ellora and above all its well-mannered and charming people - these are

a few of countless facets of India which are matchless in their appeal. All

these go to make India a paradise for tourists.

To every tourist, wherever he comes from, India is a land full of

mysteries, with the grandeur of its untouched mountains, the majesty

of its age old monuments, and its colours and traditions. Our culture
and civilisation is well represented by our monumental heritage. These
monuments are one of the greatest attraction for tourists in India. Each

region in India has considerable number of enchanting monuments.

From Kashmir to Kanya Kumari and from Western edge to Porbhander

we have magnificent series of monuments which are unbeatable in their

architecture and sculpture and reflect our centuries old existence.

Growth of tourism in India is deeply connected with its glorious

traditions and rich cultural heritage. In the words of Marik Twain, India

is "the one country under the sun that is endowed with an imperishable

interest for alien prince and alien peasant, for lettered and ignorant,

wise and good, rich and poor, bonded and free and on land that all men

desire to have seen and having seen once by even a glimpse would not

give that glimpse for the shows of all the globe combined."11 This sums

up the relationship of history with tourism and shows how these two put

together can contribute towards the development of the country's

economy.
Now a days tourism has become a part of life style in the advanced

industrialised countries. Modern tourism in India started with the

2.26
coming of European colonisers in India, some adventurers and scholars
also undertook tours and excursions in all parts of India either for the
fun of exploring unknown natural beauty or for finding biological or
historical treasures hidden in different parts of the country. The
establishment of the beautiful hill towns of Shimla, Dalhousie, Mussoorie,
Nainital, Kasauli and the hill cantonments of Bakloh, Baloon, Daghshai
and many others are the result of the exploration of such wandering
Europeans in Himalayas. With the establishment of these hill stations,
European administrators started either visiting these hills during
scorching heat of summer months in Indian plains or shifting their entire
summer headquarters to these hill stations during summer months.12
As a result these towns evolved all the features of modern tourism

including its commercial and service activities. These stations also

obtained the character and characteristics of resting, relaxing, holidaying,
etc. Gradually some of the Indians, particularly princes, feudal chiefs
and rich professionals started emulating these Europeans and patronising
these hill resorts. Naturally, a wide ranging and well-knit infrastructure
of amenities, services and enjoyments took firm roots in and around
these places.
Tourism in India got a boost after independence and with the
implementation of Five-Years Plans. It developed more rapidly after the
establishment of a Central Tourist Organisation on the recommendation
of Sargent Committee. After the creation of a separate Tourist Traffic
Branch in the year 1951 full-time attention was paid to the development
of tourist traffic in India.
2.27
 The first step towards the development of the tourist industry in

India was initiated in the year 1955 when the Sargent Committee was

appointed by the then Government of India under the chairmanship of

Sir John Sargent, the then Educational Adviser to the Government. The

Committee submitted its report in the year 1956. The main

recommendation of the committee was that a separate tourist

organisation should be set up at the centre with Regional Offices in

Metropolitan cities of Mumbai, Delhi, Kolkatta and Chennai. As a result

of this recommendation a separate Tourist Traffic Branch was set up

under the Ministry of Transport.

The subsequent years witnessed an expansion of Tourist Traffic

Branch and its activities in various directions. With the increase in its

activities, the Tourist Traffic Branch expanded considerably and during

the year 55-56 the Headquarters' establishment was increased from one

branch to four branches, each having wide ranging duties. The four

sections looking after various activities as revealed by their respective

titles are (i)Tourist Traffic section (ii) Tourist Administration section

(iii) Tourist Publicity section (iv) Distribution section.

With a view to attract more and more foreign tourists in India, Tourist

information offices were opened during 1955-56.

2.28
The main functions of these offices were to supply upto date information
of places of tourist interest to the tourists, to acquaint them with various
formalities at the airports, to provide adequate number of seats on major
tourist routes on Indian Airlines and Railways, and to extend certain
concessions/incentives to various segments of travel industry.
Based on the research findings and past experience, the government
is now drawing up a country specific marketing strategy to concentrate
on potential market segments.
The Department of Tourism performs the main marketing function
through a network of 18 Govt, of India tourist offices located overseas
with specific area demarkations under six distinct regions13^ as given

below:-
i) New York - Responsible for the entire North American and South

American continent.
ii) Frankfurt - Responsible for Continental Europe
iii) London - Responsible for UK and Ireland.
iv) Dubai - Responsible for West Asia & South Africa.
v) Sydney - Responsible for Australia
vi) Tokyo - Responsible for East Asia.
Under these offices, there are sub-offices located at Los Angeles,
Toronto, Paris, Milan, Amsterdam, Madrid, Geneva, Stockholm, Bahrain,
Singapore, Kuala Lumpur and Bangkok. Government is also planning
to open a few more offices in other places, keeping in view the emerging
trends in international tourist traffic.
The Govt, of India had also established a Tourist Information
2.29
Network (TOURNET) to provide latest information to the tourists
interested to visit India. Steps are being taken to upgrade the TOURNET
software into a multimedia package which could be installed in all the
Govt, of India offices abroad. It would give instant information about the
mode of transport, food, accommodation, places of interest, cost and
services in different languages to the foreign tourists.
ON-GOING ECONOMIC REFORMS/LIBERALISATION PROCESS:
As a part of the far-reaching programmes of economic reforms and
liberalisation, the Government of India has targeted the tourism industry
for a significant growth by the turn of this century :
i) The Industrial policy statement -1991, has placed "hotels and tourism
related industry" as a high priority sector for development.
ii) A National Action Plan for Tourism was drawn up in 1992, which
envisaged the growth of tourist traffics (i.e. 5 million international
tourists by 2000 AD) .identification of new tourists areas for
development, improvement of tourist infrastructure, restructuring/
strengthening institutions for man-power development and
encouragement of private investment.
iii) A tourism "Synergy Programme" has also been formulated to
remove the imbalance in the basic infrastructure and to ensure an
integrated development of tourists facilities.
iv) Development of hotels is one of the highest priorities in
Government's tourism development plans. Foreign collaboration
has been encouraged by permitting 51% of equity participation in
hotel projects, along with more liberal rules for sharing the profits,
2.30
 The Govt, is also giving an interest subsidy on loans. Further,

expenditure tax on hotels has been reduced to 10%.

v) Now, India is open for foreign investment in several infrastructural
sectors connected with tourism like, communication, power-
generation and distribution, airport, surface transport etc.
vi) Investments in tourism sector are also eligible for several fiscal
and financial incentives like, lower rate of customs duty on imports
of capital goods, 50% of the income from foreign exchange earnings
by tourism industries are exempted from income tax and the
remaining 50% is also exempted if invested in tourism industries.
vii) To facilitate the movements of international tourists, government
has announced a liberalised charter policy and the Director General
of civil Aviation automatically grants permission expeditiously for
the chartered flights. The air taxi scheme and the trains trains like

"Royal Orient", and "Palace on Wheel" would defiantly facilitate the

movement of the tourists within the country. Efforts are also being
made to encourage tourists movements by water transport.
viii) Govt. has established a specialised financial institution, namely,
Tourism Financial Corporation of India (TFCI) for providing financial
assistance for tourism and travel related activities. A tourism
consultancy organisation (Tourism Advisory and Financial Services
Corporation) has also been set up by the government to assist the
entrepreneurs and the state governments.
ix) At present there are 20 hotel management institutions, 13 food craft
institutes, one national institute for tourism and travel management
2.31
 (IITTM) having its headquarter at Gwalior, a regional centre at
Bhubaneshwar and chapters at Calcutta, Delhi, Mumbai, Jaipur,
Kozhikode, Thiruvanthapuram and Guwahati, one national institute
of water sports at Goa and another institute for skiing and
mountaineering at Gulmarg have been established by the
Government of India (along with many state government and non­
government institutions) to develop human resources for the
different segments of tourism and travel related services14.
PRODUCT DEVELOPMENT
Though India is mainly conceived as a cultural tourist destination,
yet it is now planning to diversify its tourists' attractions. The segments
which have been identified to be developed during the Ninth Five Year
Plan (1997-2002) are as follows:
i) Beaches.
ii) Sea and inland water cruise tourism.
iii) Eco-tourism and natural tourism covering mountains, forests,
wildlife and land scapes.
iv) Mountain, snow, river and water based adventure sports tourism.
v) Amusement parks and theme parks.
vi) Health tourism including Ayurvedic and Naturopathy centres
vii) Pilgrim and spiritual tourism.
viii) Scientific institutions, technology parks and science tourism.
ix) Educational tourism15*.

The stereotyped image of India as a cultural destination is being

replaced with a more vibrant image, as the centre of diversified tourist
2.32
attractions. India now offers an incredibly wide range of tourist attractions
like snow capped mountains, beautiful beaches, wild life sanctuaries,
attractive landscapes, a plethora of mountains, adventure sports, and
above all a rich cultural heritage. Over the years, tourism has emerged
as a major segment of Indian economy, contributing substantially to the
foreign exchange earnings which have increased from Rs. 32 crores in
1974-75 to 16429 crores in 2002-03.
Earlier Ministry of Tourism was a part of Ministry of transport and civil
aviation. Now a separate ministry had been formed as the ministry of
tourism and civil aviation having two constituent departments (i)
Department of Tourism (ii) Department of Civil Aviation.
DEPARTMENT OF TOURISM
This department is headed by Director General of Tourism, who
carried an ex-officio status of an Additional Secretary to the Government
of India. The functions of this department are both promotional and
organisational which are divided into the following seven branches:
i) Planning and promoting.
ii) Publicity and conference
iii) Travelk and trade hospitality
iv) Accomodation
v) Supplementary accomodation & wild life
vi) Market research
vii) Administration.
FORMATION OF ITDC
In 1996 came another landmark in the history of tourism in India
2.33
when the Indian Tourism Development Corporation (ITDC) was set up

to consolidate the work done earlier by three separate Govt, undertakings

namely (i) The Hotel Corporation of India (ii) The India Tourism
Corporations and (iii) The Indian Tourism Transport Corporation of India.

The Indian Tourism Development Corporation functions as an

autonomous Public Sector Undertaking and is primarily engaged in
developing an infrastructure of the tourist industry in India.

The broad objectives of this corporation are :

i) Construction and management of hotels, motels, restaurants, tourist

bungalows, guest houses and beach resorts at various places of

tourist interest.

ii) Provision of transport facilities to tourists.

iii) Extention of entertainment facilities by way of organising cultural

shows, music concerts, sound and light shows, etc. for tourists.
iv) Providing shopping facilities to tourists.

v) Provision of publicity services to assist India's promotion overseas

as a tourist destination and projecting the national importance of

tourists at home.

The ITDC has contributed a lot in the development of tourism by

providing a large number of facilities to national and international tourists.

Tourism grew at a very fast pace in India. Due to fast development in

our country, it has been able to attract considerable number of foreign

and domestic tourists, still it has a great potential which is still to be

exploited for the purpose of tourism.

2.34
 India is having a unique and most diverse tourism resource-base

and an ancient heritage of art, history and culture, her wonderful land

and people, India has the potential, par excellence, for development of

all forms of tourism. The dramatic varieties of land archietecture, vast

sea coasts, unique and varied vegetation patterns and fabulous wild life

wealth of the country is strong enough to pull the dyamically emerging

tourist market segements comprising of mountaineers, naturalists,

trekkers, river runners, aero-sports enthusiasts, cultural anthropologists,

wildlifers and the upcoming eco and rural tourist. Incidentally, this

country has had a rich tradition of tourism in the form of pilgrimages for

centuries. The pilgrim forefathers evolved a system of tirthyatras

thousands of years back by intelligently blending spiritualism and

religion with an esthetics, which is evident from the prime locations of

the pilgrim resorts in outstandingly splendid natural areas. More than

this, the concept of dharamsalas, guide books and guides (Pandas) was

nicely formulated to consistently draw a spontaneous flow of religious

tourists to these centrers. Religious, social and ecological norms were

put forward as a strong code of conduct so that the ill-impacts of tourism

could be to a minimum. It is for this kind of integrated and long term

planning that till date none of these age old religious destinations have

reached to the maturity stage of the so called destination life cycle.

Unfortunately, despite this unique legacy, India, today, has a very meagre

share in international tourism.16

2.35
 Table No. 2.1 shows international tourist arrival to India was 1.8

million in the year 1993. It increased to 1.9 million in 1994. After that it
was increasing every year upto 2000 and it increased to 2.6 million in
the year 2000. But in the year 2001, it showed a decreasing trend and it

decreased to 2.5 million. In 2002, it again decreased to 2.4 million. But

in the year 2003 it showed a good growth and it increased to 2.7 million.

The percentage increase during this period (1993 to 2003) was -5.5,
6.9, 12.6, 7.7, 3.8, -0.7, 5.2, 6.7, -4.2, -6.0 and 14.3 percent respectively.
Indias' over all average increase of last 11 years was higher (3.71%) as

compared to the world's over all increase (3.05%) during the same period.

During the same period, the India's share in total tourist arrival of the

world was between .34% and .39% .

Table No. 2.2 shows that India's Tourism foreign exchange earnings
were US $ 2.1 billion in the year 1993 and it was increasing every year

upto 2000. It increased to US $ 3.2 billion in the year 2000. But in the

years 2001 and 2002, it showed a decreasing trend and it decreased to

US $ 3 billion and 2.9 billion respectively. But in 2003, it showed a

healthy increase and it increased to US $ 3.5 billion. The percentage

increase in foreign exchange receipts during this period was -0.1, 7.0

13.7, 9.6, 2.0, 2.1, 5.3, -4.0, -3.9 and 20.9 respectively. Indias' average

increase of 11 years (1993 to 2003) was also higher (4.96%) in

comparison to the increase of world's (4.65%) foreign exchange receipts.

Table No. 2.3 shows that India was at No. 50 in tourist arrival in the
year 2000. In the year 2001, it went down to No. 51 and in 2002,
2.36
 International Tourist Arrival (INDIA)
(Figure in Million)
3
2.5
2
1.5
1
0.5
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
 International Tourist Receipts (INDIA)
(Figure in Billion US $)
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
again went down to No. 53. Similarly Table No. 2.4 shows that in

foreign exchange receipts India was at No. 36 during 2000 and 2001.

But in 2002, it went down to No. 38. A small country - Singapur was at

No. 22 in the year 2000 and 2001 and at No. 23 in the year 2002, in

international tourist arrival and having almost same position in

international foreign tourism receipts.
In India tourism has just entered the priority zone and it will naturally

take time to benefit its new status. But even the limited success, Indian

tourism has had, has not been insignficant. WTTC's analysis reveals,
"travel and tourism's GDP and employment contribution is substantial

today and has an even greater potential for India during the next

decade:17

T & T Economy 1998 2010

GDP 5.6% 6.6%

Employment 5.8% 6.8%

During this period additional 8 million jobs will be created in

travel and tourism related activities. The Council has suggested a five

point strategy which has been recommended in parts by several experts

to create 8 million jobs. The strategy is strong and sustained policy

implementation, private sector involvement, progressive liberalisation

particularly of aviation, elimination of red tape, high taxes and similar

barrier and finally investment in infrastructure and human resource

development. Economic reforms and the awareness of tourism potential

are a good combination for a breakthrough in this sector.

2.39
 REFERENCES

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Management Issues" George Washington University, Washington DC.
p. 120.
2Burkart and Medik (1974) "Tourism - Past, Present and Future"
Heinemann, London p. 179.
3Anthany Edwards (1970) "International Tourism Development
Forecast to 1990" The Economist Intellegence Unit, London, p.l.
4Burkart, A.J. (1975) "The Management of Tourism" Heinemann,
London p.112.
5Robinson, H. (1976) "A Geography of Tourism" Mcdonald and
Even, London, p.4.
6D'Souza, Mario (2003) "Tourism Development and Management"
Mangal Deep Publication, Jaipur, p. 6.
Tlezbaruah, M.P. (1999) 'Tourism - Current Scenario and Future
Prospects" Yoina Vol. 43 No. 8, Publication Division, R.K. Puran, New
Delhi, p.7.
8Bhatia, A.K. (1982) "Tourism Development - Principles and
Practices" Sterling Publishers Private Limited, New Delhi, p.l.
9Ilbd p.2.
10Ilbd p.2.
nBhatia, A.K. (1983) "Tourism Development - Principles and
Practices" Sterling Publishers Private Limited, New Delhi. 2nd Edition
p.287
12Ahluwalia, HPS (1982) "External Himalya" Mehta Offset Works,
New Delhi, p.9.
13Mishra, Sitikantha (1997), "GATS and Gloal Tourism and
Prospect" IITTM Journal of Travel and Tourism, Volume 1, No. 1, April
1996-March-1997, Indian Institute of Tourism and Travel Management
Gwalior, p.97.
14Ilbid, p.95
15Ninth Five Years Plan Document (1997 to 2000)
ieSingh Hawa (1995) "Organisational Health of Haryana Tourism
Corporation in Relation to Commitment, Job Satisfaction and Some allied
Attributes" A Ph.D Thesis submitted to Kurukshetra University,
Kurukshetra p.13-14.
17Seth Rabindra (1999) "Tourism: Problem and Prospects" Yojna
Vol. 43 No. 8, Publication Division, R.K Puran, New Delhi p.24.
iaEditor(1999) "About the Issues"Yojna Vol. 43 No. 8, Publication
Division, R.K. Puran, New Delhi p.6.
2.40