CMIE PRSENTATION

PRESENTED BY-
DEEPAK TANDEL
Roll No. 83
MMS/1ST Year Div-B
 Definition of E-Commerce under Service Sector
Ecommerce, also known as electronic commerce or internet
commerce, refers to the buying and selling of goods or services using
the internet, and the transfer of money and data to execute these
transactions. Ecommerce is often used to refer to the sale of physical
products online, but it can also describe any kind of commercial
transaction that is facilitated through the internet.
The service sector produces intangible goods, more precisely
services instead of goods, and according to the U.S. Census bureau, it
comprises various service industries including warehousing and truck
transportation services, information sector services,
commodities, securities and other investment services, professional,
technical and scientific services, waste management services, health
care and social assistance services, and arts, entertainment, and
recreation services. Countries with economies centered around the
service sector are considered more advanced than industrial or
agricultural economies.
 Service Sector
S e r v i c e s e c t o r c o n s i s t o f f o l l o wi n g -
•H o t e l & To u r i s m
•W h o l e s a l e & R e t a i l t r a d i n g
•Tr a n s p o r t S e r v i c e
•C o m m u n i c a t i o n s e r v i c e
•I n f o r m a t i o n Te c h n o l o g y
•M i s c e l l a n e o u s S e r v i c e
Hotel & Tourism Industry
 Facts about the sector
Introduction
The Indian tourism and hospitality industry has emerged as one of the key drivers of
g r o w t h a m o n g t h e s e r v i c e s s e c t o r i n I n d i a . To u r i s m i n I n d i a h a s s i g n i f i c a n t p o t e n t i a l
c o n s i d e r i n g t h e r i c h c u l t u r a l a n d h i s t o r i c a l h e r i t a g e , v a r i e t y i n e c o l o g y, t e r r a i n s a n d p l a c e s
o f n a t u r a l b e a u t y s p r e a d a c r o s s t h e c o u n t r y. To u r i s m i s a l s o a p o t e n t i a l l y l a r g e e m p l o y m e n t
g e n e r a t o r b e s i d e s b e i n g a s i g n i f i c a n t s o u r c e o f f o r e i g n e x c h a n g e f o r t h e c o u n t r y. D u r i n g
January-October 2018 FEEs from tourism increased 8.30 per cent year -on-year to US$ 23.54
billion.
Market Size
India is the most digitally-advanced traveler nation in terms of digital tools being used for
p l a n n i n g , b o o k i n g a n d e x p e r i e n c i n g a j o u r n e y, I n d i a ’ s r i s i n g m i d d l e c l a s s a n d i n c r e a s i n g
disposable incomes has continued to support the growth of domestic and outbound tourism.
F o r e i g n To u r i s t A r r i v a l s ( F TA s ) i n c r e a s e d t o 8 . 3 6 m i l l i o n i n J a n u a r y - O c t o b e r 2 0 1 8 ,
a c h i e v i n g a gr o w t h r a t e o f 6 . 2 0 p e r c e n t ye a r - o n - ye a r.
The travel & tourism sector in India accounted for 8 per cent of the total employment
opportunities generated in the country in 2017, providing employment to around 41.6
m i l l i o n p e o p l e d u r i n g t h e s a m e ye a r. T h e n u m b e r i s e x p e c t e d t o r i s e b y 2 p e r c e n t a n n u m t o
52.3 million jobs by 2028.
I n t e r n a t i o n a l h o t e l c h a i n s a r e i n c r e a s i n g t h e i r p r e s e n c e i n t h e c o u n t r y, a s i t w i l l a c c o u n t
f o r a r o u n d 4 7 p e r c e n t s h a r e i n t h e To u r i s m & H o s p i t a l i t y s e c t o r o f I n d i a b y 2 0 2 0 & 5 0 p e r
cent by 2022
Investments
During the period April 2000-June 2018, the hotel and tourism sector attracted around US$
11.39 billion of FDI, according to the data released by Department of Industrial Policy and
Promotion (DIPP).
 Facts about the sector
Government Initiatives
The Indian government has realized the country’s potential in the tourism industry and has taken several steps to make India a
global tourism hub.
Some of the major initiatives planned by the Government of India to give a boost to the tourism and hospitality sector of India are
as follows:
Statue of Sardar Vallabhbhai Patel, also known as ‘State of Unity’, was inaugurated in October 2018. It is the highest standing
statue in the world at a height of 182 meter. It is expected to boost the tourism sector in the country and put India on the world
tourism map.
The Government of India is working to achieve 1 per cent share in world's international tourist arrivals by 2020 and 2 per cent
share by 2025.
Under Budget 2018-19, the government has allotted Rs 1,250 crore (US$ 183.89 million) for Integrated development of tourist
circuits under Swadesh Darshan and Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD).
Achievements
Following are the achievements of the government during 2017-18:
During 2018-19, a total of seven projects worth Rs 384.67 crore (US$ 54.81 million) were sanctioned under the Swadesh Darshan
scheme.
As of July 2018, 14 states had deployed tourist police. In November 2018, Nagaland also deployed a separate tourist police in the
state.
Road Ahead
India’s travel and tourism industry has huge growth potential. The tourism industry is also looking forward to the expansion of E-
visa scheme which is expected to double the tourist inflow to India. India's travel and tourism industry has the potential to expand
by 2.5 per cent on the back of higher budgetary allocation and low cost healthcare facility, according to a joint study conducted by
Assocham and Yes Bank.
 Analysis Report
 Tourism has now become a significant industry in India. It is a sun rise industry, an employment generator, a
significant source of foreign exchange for the country. Tourism in India is the third largest foreign exchange
earner of the country. The booming tourism industry has had a cascading effect on the hospitality sector with
an increase in the occupancy ratios and average room rates.
 As per world travel and tourism Council (WTTC), India is one of the favorite tourist destinations from the year
2009 and will continue to be one of the favorite tourist destinations. Further, the Travel and Tourism
Competitiveness Report by World Economic Forum, has ranked India at the sixth place in tourism and
hospitality.
 The tourism and hospitality sector is among the top 10 sectors in India to attract the highest Foreign Direct
Investment (FDI). According to the data released by Department of Industrial Policy and Promotion (DIPP), the
hotel and tourism sector attracted around US$ 10.6 billion of FDI between April 2000 and September 2017.
 The Indian government has also taken several steps to make India a global tourism hub. The government has
initiated 'Project Mausam' under which it has proposed to establish cross cultural linkages and to revive historic
maritime cultural and economic ties with 39 Indian Ocean countries. Further, since April 2017, the e-tourist visa
facility has been made available to citizen 161 countries. The government has introduced e-Tourist Visa (e-TV)
for 161 countries as against the earlier coverage of 113 countries (source: Ministry of Tourism).
 The hotel industry in India thrives largely due to the growth in tourism and travel. Due to the increase in tourism
with rising foreign and domestic tourists, hotel sector is bound to grow. There is an emergence of budget hotels
in India to cater to much of the population who seek affordable stay. International companies are also
increasingly looking at setting up such hotels. Imbalance in increase in tourists both domestic and foreign not
been supported with equal number of rooms is a latent source of opportunity for growth.
 Key Points
Supply
It is expected that the hotels industry is expected to fall short of meeting the long term demands of an
economy growing at about 7% p.a. Regarding the supply from foreign nations, around 40 international brands
are said to enter the country in the next five years (as per Cygnus estimates).
Demand
Largely depends on business travelers but tourist traffic is also on the rise. Also, there is seen an increasing
demand for medical tourism. Demand normally spurts in the peak season between November and March.
Barriers to entry
Economic risks, high capital costs, competition in the industry, poor infrastructure facilities and scarcity of
land.
Bargaining power of suppliers
Limited due to higher competition, especially in metros.
Bargaining power of customers
Higher in metros due to increasing room supply
Competition
Intense in metros, slowly picking up in tier-2 and tier-3 cities. Competition has picked up due to the entry of
foreign hotel chains. Also, there is an increasing competition from the startups/online industry due to the
increasing penetration of the internet.
 Statistics
 Tourism is a big employment generator – every USD 1 million invested in tourism
creates 78 jobs
 Tourism is the third largest foreign exchange earner after gems, jewellery and
readymade garments
 In 2015, Foreign Exchange Earnings (FEE) from tourism were USD 21.071 billion as
compared to USD 20.236 billion in 2014, registering a growth of 4.1%
 India registered 8.03 million FTAs in 2015, registering an annual growth of 4.5%
over the previous year
 The number of domestic tourist visits in India during 2014 was 1290.12 million as
compared to 1142.53 million in 2013, recording a growth rate of 12.92%
 FTAs (Provisional) from January to May 2016 were 3.64 million, an increase of 9.1%
over the same period of previous year
 FEEs (Provisional) from January to May 2016 were USD 9.58 billion, an increase of
14.4% over the same period of previous year
 Investment Opportunities
 The presence of world-class hospitals and skilled medical professionals make India a preferred
destination for medical tourism
 As an opportunity for cruise owners and operators by capturing/capitalizing the opportunity
from a vast beautiful coast line, vast forest and undisturbed idyllic islands.
 Rural tourism schemes have been implemented by the Ministry of Tourism in 2002-03 with the
objective of highlighting rural life, art, culture and heritage in villages that have a core
competence in art, craft, handloom, textiles and the natural environment. Under Swadesh
Darshan Scheme, Ministry of Tourism identified Rural & Coastal Circuits as one of the thematic
circuit for development.
 Eco-tourism is at a nascent stage, but there are conscious efforts to save the fragile Himalayan
eco-system and the culture and heritage of indigenous people.
 Tourism sector in India offers opportunities across various sub-segments such as timeshare
resorts, convention centers, motels, heritage hotels and the like.
 Investment opportunities in the setting up of tour operations and travel agencies cater to
burgeoning tourist inflow.
 Learning

 Tourism is a major driver of economic growth.

 Indian tourism company is experiencing a strong period of
growth .
 For developing country like India which is on the path of modern
economic growth through transformation of the economy,
tourism is the right vehicle.
THANK YOU