Potentiality of Tourism Entrepreneurship in Sikkim

Abstract: Alpine State Sikkim has immense potentiality to develop and nurture tourism
as a mean of income and employment opportunity. Sikkim is one of the very few Indian states with a distinctive characteristic of having a significant influence of tourism through its economic and socio-cultural contribution. Tourism as a mean of economic, sociocultural and environmental development has brought about several questions. So present tourism development needs an assessment to ensure a proactive and sustainable orientation. This sustainable development orientation and its practical implication will be a bumptious statement without equitable development with dignity and justice. The present article addresses issues involved in equal income and job opportunities through an analysis of destination environment and entrepreneurial potentialities. A destination TOWS analysis has been conducted and regional disparities have been addressed to formulate an entrepreneurial policy justifying equal development and scope for all in Sikkim. JEL Classification : E21, M13, M54, O17, P41, P52, Q56 Key Words: TOWS Analysis, Destination Entrepreneurship Development, Community
Development, Destination Investment Cell, Tourism Entrepreneurship Development Cell, Sustainable Entrepreneurial Opportunities

Introduction and Development of Sikkim as a Tourist Destination Sikkim is a small hilly state, bounded by vast stretches of Tibetan plateau in the North, the Chumbi Valley and the kingdom Bhutan in the East, the kingdom of Nepal in the west and Darjeeling (West Bengal) in the South. Its latitude is 27030l north and the longitude is 88030l east. Sikkim is famous for scenic valleys forest, snow clad mountains, magnificent Buddhist culture and heritage and peace-loving people. Though small, the environmental, social and cultural diversities are not so. Some scholars believe that the word Sikkim involves Nepalese dialect and it refers to a now place or the term has been derived from a Sanskrit word which means a mountain crest. The people of Sikkim have ethnic diversity. The Bhutias came from Tibet, the Lepchas were the aboriginal community and the

Nepalese came from Nepal. When Sikkim was an independent state it faced many invasion by its neighboring countries and the king took the help of the British India and, later, gifted some of its region including Darjeeling to the British India. Now this 22nd Indian State (joined Indian Union in 1975) has Over 81% of the total geographical area under the administrative managerial control of the Ministry of Environment and Forest, Government of India. Over 45% of the total geographical area of the state is under tree cover and nearly 34% of the geographical area is set aside as protected area network in the form of national park and wildlife sanctuary. The basic statistics of flora and fauna are given here under. Flora and fauna of Sikkim Mammals 144 species Birds 550 species Butterflies and Moths 650 species Reptiles 33 species Frogs 16 species Orchids 550 species,95 Genera Rhododendrons 36 species, 45 varieties Flowering Plants Over 4000 species Ferns and Allies 300 species Conifers 9 species Medicinal plants Not enumerated Source: Economic Survey 2006-07, Govt. of Sikkim The maximum summer temperature 280C and minimum winter temperature is 00C. Sikkim has a variety of mineral resources including coal, limestone, iron ore, graphite, pyrite etc. The temperature in the bottom of the valleys (up to 600 meters) situated at lower elevations, particularly during summers, are similar to the monsoon type of climate. The temperature starts falling between 600 meters to 2000metres above sea level enjoys cool temperature climatic conditions and further up (2000 meters to 3000metres) it is cold temperate climate. Arctic type of climate is found above 5000 meters. Sikkim at a glance Area Population(2001 census) Growth rate(1991-2001) Density per square km. Sex ratio( female per 1000 male) Literacy rate Male 7096 sq.km. 540493 32.98% 76 875 69.68% 76.73%

Female 61.46% Capital Gangtok No. of districts 4 Legislature Unicameral Principal languages Nepali, Lepcha, Limbu Assembly seats 32 Lok Sabha seat 1 Rajya Sabha seat 1 Judiciary(name and location) High court of Sikkim at Gangtok State day May 16 Source: Economic Survey 2006-07, Govt. of Sikkim Sikkim is ecologically a fragile region. The state has the responsibility to conserve its rich biological diversity that includes coexistence and protection of over 5000 species of angiosperm (one third of the total national angiosperms). Again this place has multi-ethnic communities. So the need for ecological, cultural and social diversities is not only essential but imperative as well. After becoming 25th state of the Union Government of India in the year 1975 the rapid development activities ushered in a new era of tourism in Sikkim. Increased accessibility by roadways and air transport, rapid socio-economic development, competitive advantage both from the side of the destination and geographical proximity to tourist generating states contributed to the development of tourism in Sikkim. Recognizing the increased tourist arrivals, accommodation units were set up in Gangtok and a few towns mostly by outsiders without proper land use planning and architectural design.

Source: Sikkim Tourism Development Corporation,2009

Ever increasing tourist arrival and increasing dependence on tourism as

a powerful

industry and employment generating source, restoration of peace and harmony, hospitable people, plenty of diversified natural and cultural resources, a typical interest of the people of Indian to discover the unknown hidden Sikkim brought about a new dimension for the development and marketing of tourism in Sikkim. Another important market trend for Sikkim was to interpret a positive and highly significant correlation between the personal consumption of Indian population and domestic tourist arrivals of Sikkim. The graph given below interprets a positive and highly significant correlation( t0.05,9 = 1.833, i.e. tcal > ttab, i.e. H0 rejected ) between the personal consumption of Indian population and domestic tourist arrivals of Sikkim. Here we recognize the significant ever increasing trend of both the variables involved and it has been assumed that a segregated part of the total personal consumption is travel and tourism. The data of personal consumption of the population and the domestic tourist arrivals for the last eleven years i.e. from 1998 to 2008 have been considered.

Source: www.wttc.org and Sikkim Tourism Development Corporation This increasing trends of tourism industry draw the attention of many entrepreneurs and investors in and outside Sikkim. But the development features and consequent entrepreneurial efforts largely vary. An overall analysis of tourism environment and its development is expressed through Strengths). This analysis is based on the development initiatives of the State Government, NGOs, and other concerned authorities, and recent field visit. Following points were considered for TOWS (Threat, Opportunities, Weaknesses, and Strength) analysis. TOWS ( Threats, Opportunities, Weaknesses and

Internal factors

Internal strengths (S)

Internal weakness (W)

* Improved public image * Improved land use planning * Renovation of product portfolio * Higher staff commitment & better labour relations * Creativity & openness to face new challenges * Better relations with public authorities, Central Government, local community & green activities groups * Assured access to foreign markets * Easier compliance with environmental standards * Ever increasing growth of tourism * Peaceful, calm & tourist friendly state, compared to all North Eastern states in India * Diversified & multi ethnic communities * Rich culture & heritage of the community * Available labor market * Possibility of getting domestic & international tourists * Available land area practicing marginal agriculture * Plenty of natural resources * Proactive environmental legislations

* Lack of consciousness of hygiene & health related issues * Population is increasing * Centralized development of infrastructure &superstructure * No international airports in or around states * Lack of local entrepreneurship * Unorganized people * Lack of basic facilities & infrastructure for tourism development * Lack of effective administration with sufficient authority * Tending to seasonal economy * Lack of comparability with complementary development of tourism in other states * Lack of long vision to articulate & integrate & to enhance benefits for all * Lack of money to assist the organization of events * Lack of acceptance of the necessity for environmental controls by the destination developers, community etc. * Lack interested would be * Lack of mechanism for linking of mechanism parties. for linking Community & uneducated local

participation is not as high as it should or

interested would be

parties.

Community

participation is not as high as it should or * Lack of accommodation and adequate facilities * Lack of collection statistical data * Almost the same attraction features throughout the states * Evidence of environmental degradation in many tourist centers * Cost of advertising, maintenance ( Research and Development) of important

External factors External (O) opportunities

SO Strategy: (Maxi WO Strategy:(Mini Maxi) Maxi)

Contd.

- Cost savings due to * Reduced consumption of energy and other resources * Recycling, selling of byproducts and wastes, resulting in decreased waste disposal costs. * Reduced environmental charges, pollution penalties, and consumption following legal damage suits - Revenue increases due to * Increased of marginal Green * * Employment Small scale generation industries wine traditional * Condition of health and hygiene and the quality of life of the local people can be improved by increased income and employment from tourism * Possibility of employment generation with local entrepreneurship * State population can be more educated and and of regional organized with increasing educational measures * Fund generation is possible with the help of different schemes and projects of various national and international organizations * Seasonality in tourism can be reduced with the development & promotion of alternative attractions during the lean of local season hospitality, of non specifically increases develop industry,

medicines, spices etc. * Standard of living of the local people will increase * Balanced regional development minimization imbalances * Conservation and protection of the environment * Per capita income will increase * industry, spices, Development cuisine, * Development

contribution prices * Wine

Products which sell at higher

traditional medicines etc. * Increased market share due to product innovation and decreased competitors. * Completely new products that open up markets * Increased demand for a traditional contributes abatement * Availability of funds from product, to which pollution number of

handicrafts, handlooms etc. conventional energy resources

central government and other international organizations * Scope for tourism round the year with distinct attraction features * Increased number of tourists * Alternative employment opportunity * Care for the environment, socio-cultural needs and governance build strength * Educational opportunities: children and youth activities * Recreational opportunities: retirees * Residential care services: the aged * Local town services: rural residents * Health services: community * Heritage and natural tourism environment: operators * Importance of local fairs and festivals will increase * Development of inaccessible and backward areas

External threats (T)

ST Strategy: (Maxi Mini)

WT Mini)

Strategy:

(Mini

* Tourism development may cause degradation * areas * No sufficient accommodation units in many areas of tourism importance, * Commercialization of culture and deterioration of social values * Restriction of freedom of the residents resources amenities * Changes in occupational distribution and lack of occupational mobility * Increase in crime rates * Existence of substitute in tourism products to and enjoy other their basic Encroachment over land agricultural/industrial environmental

Application

of

environmental

* Minimization of weakness & threats are possible with the suitable joint venture, local people developing accommodation * Adding values to the existing products by alternative cultural & heritage related attractions, optional tours, new trek routes, infrastructure tourism * Conducting environmental awareness camps, encouraging participation & consultation in major decisions related to the environmental protection & maintenance of quality for adventure participation in supplementary

legislation & eco tourism policy to reduce the environmental damage * Land use planning prevents the encroachment other land areas * enforcement of strong law & order in coordination with other authorities to check crime rates that may arise due to the development of tourism * Awareness of rich culture & heritage of the community along with the values of the society can prevent the commercialization of culture & its deterioration * Scarcity of accommodation units particularly during the peak season can be reduced by development of supplementary accommodation units, e.g. the local village / people/eco clubs offering rental accommodation. over agricultural &

neighboring states may reduce tourist arrivals

Though the TOWS matrix explains the development and promotional issues of tourism businesses in Sikkim yet the conditions at regional level is not so. There are so many regional differences and disparities though the destination is primarily known as a leisure tourism destination. The conditions of tourism development opportunity were measured with the help of industry impact variables at three different places viz. the capital city Gangtok, heritage tourism domination Namchi and a comparatively new destination Lachung in North Sikkim. Six questions were asked to one hundred respondents to assert their opinion in three different places. The questions were related to the

(i) (ii) (iii) (iv) (v)

(vi)

degree of importance between hosts and guests, importance of outside investment for site development, need for tourism legislation, appropriate types and forms of tourists, the initiatives taken by the government to use tourism as a community
development tool and sustainability of attraction features.

All these questions have direct implications and are oriented to destination entrepreneurship development and other related issues.

These questions were replied with the help of the five point scale varying from strong disagreement to strong agreement. Surprisingly, an interesting result came into light when their degree of importance were ranked with Kruskal Wallis rand test. The results of three places are given here under.
Namchi Test Statistics VAR00001 Chi Square 26.308 Df 33 Asymp.Sig .789 a.Kruskal Wallis Test b. Grouping Variable: VAR00002 Mangan Test Statistics VAR00001 18.253 22 .691 a.Kruskal Wallis Test b. Grouping Variable: VAR00002 Gangtok Test Statistics VAR00001 47.364 41 .229 a.Kruskal Wallis Test b. Grouping Variable: VAR00002

The implications of all six industry/ impact variables were different as the degree of importance put by respondents in all three destinations largely varied considering the significance levels of each question. All six questions were ranked with different importance and the difference were largely destination specific as all the destinations had distinctive economic, socio-cultural and ecological problems and prospects. 0.789, 0.691 and 0.229 for Namchi, Mangan and Gangtok respectively. The variation among these three places are due to variation of putting rank for

Conclusion

The potentiality of entrepreneurship development can be better exploited by promoting tourism as a mean of rural entrepreneurship development. This is how rural entrepreneurial mobility can be ensured to tap opportunities in village areas and thereby to set up economic and social justice to poor and vulnerable sections of the State. An initiative to be taken to categorize direct and indirect job opportunities provided by the tourism sector in the State and thereby to arrange loans, grants and such other investment incentives. An analysis for Skills required in different types of jobs provided by the tourism industry needs to be assessed to ensure or suggest training program for different sections in the society. Proactive and sustainable tourism development initiatives will automatically ensure economic and social justice for which local authorities, NGOs, eco-clubs must come forward and work with the proper coordination and control. Changes in marketing policy with an entrepreneurial perspective, its linkage with economic, socio-cultural and environmental sustainability will ensure sustainable entrepreneurship also in the state. The state tourism corporation should have a special cell to encourage and appreciate tourism development projects primarily with two types of job opportunities e.g. institutionalized and non-institutionalized. Two different types of investment incentives and fiscal control measures to be adopted for both the sectors. There is an urgent need to identify and assess all important informal and subsidiary sectors of tourism industry with their respective economic and social values. The concept of micro credit and economic inclusion needs to be reassessed with an importance to tourism. Last but not the least, the development of tourism and entrepreneurial opportunities needs to be region specific to adopt more effective and result-oriented tourism as there are disparities in resource allocation, fund allotment, demographic and socio-cultural profile of local community as a whole. So, tourism entrepreneurship awareness program, access to all required facilities to set up tourism business by local entrepreneurs, community development program through alternative tourism and adventure tourism and an improved destination management with sustainable development philosophy will bring in more sustainable entrepreneurial opportunities among the local community through sustainable development.

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