Tourism in India

www. Yesbank. in The incite and hospitality Industry Indias expedition, tourerry and hospitality labor is one of the fastest growing service industries in the land thanks to a burgeoning middle class, put one across up purchasing function, a rising inflow of foreign tourists, and successful g all overnment campaigns promoting undreamed of India. In 2011 alone, travel and tourism contri merelyed to 6. 4% of the gross domestic product, and is forecast to rise by 7. 3% in 2012. In foothold of employment, travel and tourism instanter back up 24,975,000 jobs (5% of employment) in 2011, and is pass judgment to rise by 3% in 2012. besides read Importance of Advertising in tourism IndustryForeign Exchange stipend ( present) from tourism in 2011 were $16,564 zillion with a evolution of 16. 7% over 2010. 14 Clearly, India is fast becoming a popular tourist refinement world over. Between April 2000 and December 2011, the hotel and tourism sector gene sayd a positive of $3, 195. 70 gazillion in Foreign Direct Investment (FDI). 15In 2011 alone, the country welcomed 6. 29 million foreign tourists, comp ard to 5. 78 million in 2010. 16By 2022, worldwide tourist arrivals ar forecast to tally 11,276,000, generating an expenditure of 1,382. 6 gazillion. 7 In 2010-11, the travel and hospitality patience faced the challenge of a significant decline in corpo arrange travel due to serious cost cutting by international corporate houses, as healthy as the fear of terrorism, and a lack of a sense of refuge post the 2008 Mumbai terror attacks. hitherto, the hospitality sector has shown resilience, improving its security anxiety and performance. With the fruit of budget hotels along with low cost airlines, online travel sustainings, and convocation travel, SMEs in the travel and tourism sector contribute shown rapid progress.They crap been targeting niche merchandises specializing in corporate travel, leisure travel, and even take a crapherto unhe arable serve like wedding travel and preparation. IATA statistics show that today, level outgo military control is generated in Asia. Asia and particularly India now have a study intention to play in shaping this sector while also enjoying maximum sh atomic number 18. However, with more disposable income, Indians prefer to travel overseas rather than at heart the country.We have over 14 million Indians traveling overseas, but the form for inbound tourism stands at a dismal 6 million this can definitely increase if we begin to seriously promote India as a destination to be explored and discovered. , says Vivek Dadhich, Managing Director of Noida-based Bluemoon triggers, a new while travel company offering leisure travel and MICE travel planning services for Meetings, In pennyives, Conventions, and Exhibitions. As per an analysis done by retail consultancy Technopak, at the end of 2010 the Indian hotel industrys worth was estimated around US$ 17 gazillion.The share of hot el and eating house sector in the overall delivery is still below 2 per centimeimeime. For the last vanadium years the resume piece of the hospitality sector has remained stagnant. Although the overall share increased from 1. 46 per cent in 2004-05 to 1. 69 per cent in 2007-08, but thuslyce after the phase of economic meltdown in US the tally share again decreased to 1. 45 per cent in 2009-10. India ranks in the 153rd position spending 0. 9% for tourism. The hotel and tourism industrys piece to the Indian economy by way of foreign direct investments (FDI) inflows were pegged at US$ 2. 5 one thousand thousand from April 2000 to February 2011, according to the Department of Industrial form _or_ system of government and Promotion (DIPP). As per an analysis done by retail consultancy Technopak, at the end of 2010 the Indian hotel industrys worth was estimated around US$ 17 billion. The share of hotel and restaurant sector in the overall economy is still below 2 per cent . For the last five years the hail contribution of the hospitality sector has remained stagnant. Although the overall share increased from 1. 46 per cent in 2004-05 to 1. 69 per cent in 2007-08, but then after the phase of economic meltdown in US the total share again decreased to 1. 5 per cent in 2009-10. India ranks in the 153rd position spending 0. 9% for tourism. The hotel and tourism industrys contribution to the Indian economy by way of foreign direct investments (FDI) inflows were pegged at US$ 2. 35 billion from April 2000 to February 2011, according to the Department of Industrial insurance and Promotion (DIPP). www. oifc. com overseas Indian facilitation center According to the Tourism planet Accounting (TSA) research, released by World Travel and Tourism Council (WTTC) and its strategic better half Oxford Economics in 2011 * The direct contribution of Travel Tourism to gross domestic product is pass judgment to be INR 1,570. billion (US$ 35. 4 billion) (1. 9 per cent o f total GDP) in 2011, rising by 8. 1 per cent per annum (pa) to INR 3,414. 8 billion (US$ 77. 0 billion*) (2. 0 per cent) in 2021 * The total contribution of Travel Tourism to GDP, including its wider economic cushions, is forecast to rise by 8. 8 per cent pa from INR 3,680. 4 billion (US$ 83. 0 billion) (4. 5 per cent of GDP) in 2011 to INR 8,523. 1 billion (US$ 191. 2 billion*) (4. 9 per cent) by 2021. pith Contribution of Travel Tourism to GDP Source World Travel Tourism CouncilThe TSA research also states that the sector is anticipate to support directly 24,931,000 jobs (5. 0 per cent of total employment) in 2011, rising by 2. 0 per cent pa to 30,439,000 jobs (5. 2 per cent) by 2021. Hotel Industry Due to increasing fig of foreign tourist arrivals, together with the gain of domestic tourism in the country, the hotel industry is also witnessing continued momentum. The Indian Hospitality industry contributes around 2. 2 per cent of Indias GDP. The industry is pass judgment to spend a penny INR 230 billion (US$ 5. 2 billion*) by 2015, growing at a robust CAGR of 12. per cent. India will be investing around INR 448 billion (US$ 10. 1 billion*) in the hospitality industry in the next five years, according to a typography The Indian Hotel Industry Report 2011 sport by CYGNUS Business Consulting Research Firm. The industry also witnessed an increase in the image of hotel rooms with a fruit of 5 per cent during the last three to four years. In the next two years, a total investment of US$ 12. 2 billion (INR 545. 2 billion*) is expected that will add over 20 new globalistic brands in the hospitality sector.Rise of budget hotels in the country, like Ginger Hotels, scum bag Tree, Sarovar Hotels, Fortune Hotels, Ibis and Choice Hotels clearly suggest a huge evolution potential in the sector. The Growth Path Foreign tourist arrivals in the country have increased substantially during the past decade cause by both, business organisation and leisure needs and are further expected to grow at a compound annual growth rate (CAGR) of around 8 per cent during 2010-2014, as per a research report Indian Tourism Industry Analysis by research sign of the zodiac RNCOS.In fact, the Tourism sector enjoyed strong growth during 2010, as indicated in the data released by the Ministry of Tourism in January 2011. As per the data, in 2010, the country go through a strong rebound in the Tourism industry. Foreign phaeton Arrivals (FTAs) * FTAs in India during 2010 were 5. 58 million with a growth rate of 8. 1 per cent as compared to the FTAs of 5. 17 million and growth rate of (-)2. 2 per cent during 2009. * The 8. 1 per cent growth rate in FTAs for 2010 over 2009 for India is much better than UNWTOs projected growth rate of 5 per cent to 6 per cent for the world during the same period. FTAs during the month of June 2011, was 3. 96 hundred thousand as compared to FTAs of 3. 70 lakh during the month of June 2010 and 3. 52 lakh in June 2009. The re has been a growth of 7. 2 per cent in June 2011 over June 2010 as compared to a growth of 4. 9 per cent registered in June 2010 over June 2009. FTAs during the period January-June 2011 were 29. 19 lakh with a growth of 10. 9 per cent, as compared to the FTAs of 26. 32 lakh with a growth of 8. 9 per cent during January-June 2010 over the corresponding period of 2009. * FEE from Tourism in INR equipment casualty during 2010 were INR 648. billion as compared to INR 549. 6 billion during 2009 and INR 507. 3 billion during 2008. FEE from tourism in US$ toll during 2010 were US$ 14. 2 billion as compared to US$ 11. 4 billion during 2009 and US$ 11. 7 billion during 2008. * The growth rate in FEE in INR scathe during 2010 was 18. 1 per cent as compared to the growth rate of 8. 3 per cent in 2009 over 2008. Therefore, the growth rate observed in 2010 over 2009 was substantially high. The growth rate in FEE in US$ terms during 2010 was 24. 6 per cent as compared to a decline of 3 per c ent in 2009 over 2008.Therefore, in US$ terms, also growth rate observed in 2010 was positive and substantially high. * FEE in INR terms during the month of June 2011 were INR 54. 4 billion as compared to INR 47. 5 billion in June 2010 and INR 38. 0 billion in June 2009. FEE in US$ terms during the month of June 2011 were US$ 1. 2 billion as compared to FEE of US$ 1. 0 billion during the month of June 2010 and US$ 0. 7 billion in June 2009. * The growth rate in FEE in INR terms in June 2011 over June 2010 was 14. 5 per cent as compared to 25. 0 per cent in June 2010 over June 2009.The growth rate in FEE in US$ terms in June 2011 over June 2010 was 18. 9 per cent as compared to the growth of 28. 1 per cent in June 2010 over June 2009. * FEE from Tourism in INR terms during January-June 2011 were INR 351. 6 billion with a growth of 12. 1 per cent, as compared to the FEE of INR 313. 7 billion with a growth of 27. 1 per cent during January-June 2010 over the corresponding period of 2009 . * FEE from Tourism in terms of US$ during January-June 2011 were US$ 7. 8 billion with a growth of 14. 2 per cent, as compared to US$ 6. billion with a growth of 36. 6 per cent during January-June 2010 over the corresponding period of 2009. Visitor exports are a primal component of the direct contribution of the sector. According to the TSA research, India is expected to tear 6,179,000 international tourist (overnight visitant) arrivals in 2011, generating INR 678. 6 billion (US$ 15. 3 billion) in visitor exports (foreign visitor spending, including spending on transportation). By 2021, international tourist arrivals are forecast to total 11,149,000, an increase of 6. per cent pa generating expenditure of INR 1,344. 7 billion (US$ 30. 3 billion*). Visitor Exports and International Tourist Arrivals Hospitalityindia. com Tourism in India is the largest service industry, with a contribution of 6. 23% to the national GDP and 8. 78% of the total employment in India. Indiabiz. com Acc ording to Economic come off of 2010-11 the average annual growth rate of hotel and restaurant sector has been 8. 8 per cent for the period during 2005-06 and 200910. However, last two years have not been quite pleasant for the sector as growth faltered severely.Till five years ago, the sector was registering a growth of around 15 per cent but slowdown in the economy has affected the growth prospects of the sector badly and the growth rate has dropped into single digit level. The sector registered negative growth (-3. 41 per cent) in 200809 over the year 200708, which was due to the adverse global economic conditions in this year. But, the sector is back in the positive growth territory and clocked a growth of 2. 2 per cent in 2009-10. one-year growth rate (in per cent) Year 2005-06 2006-07 2007-08 2008-09 2009-10 Hotels Restaurants 17. 14. 4 13. 1 -3. 1 2. 2 Source Economic Survey 2010-11 Growth Prospects Healthy economic growth recorded in past few years, especially in the ser vices industry, has led to increase in business travel. Higher disposable income and affordability have increased domestic leisure travel in India. Foreign tourist arrivals in India have also grown. The industrys performance was hit in 2009 due to the global economic slowdown, terror attacks in Mumbai (November 2008) and H1N1 virus. However, the industry has shown signs of recovery in the first half of 2010.This is a clear exponent that the long-term prospects for the Indian travel and tourism industry are bright. India is expected to witness increased tourist activity both in the business and leisure segments in the coming years. International inbound traffic is expected to grow rapidly with increasing investment and trade activity. India has been identified as one of the fastest-growing countries in terms of tourism subscribe. The travel and tourism demand is expected to reach US$ 266. 1 bn ( 14,601. 7 bn) by 2019. During 20042009 travel and tourism demand in India increased at a compound annual growth rate (CAGR) of 16. % to US$ 91. 7 bn ( 4,412. 7 bn) and foreign exchange earnings from tourism increased 13% to US$ 11. 39 bn. Some prominent players Sahara group, viceroy hotels,Carlson, UAE based Istithmar hotel, Netherlands based Golden Tulip Hospitality group, IRCTC, Leela Palace and resorts, DLF Universal Major players Indian Hotels Company hold (the Taj group) EIH Limited (the Oberoi group) ITC Hotels Limited Indian Tourism Development Corporation Small bondage Hotel Leela Venture Asian Hotels (Hyatt International Corporation) Bharat Hotels Public Sector ChainITDC and HCI Govt initiatives Incredible India Atithie devo bhava Porters five forces Threat of reservation goods Presence of many hotels around the corner Hotels have varying impairment ranges and amenities and it is ambitious to predict nodes choice of choosing a hotel. The internet makes the overall market more efficient while expanding the size of the potential market and creating new s ubstitution threats. Another hotel chain may erode your customer base with a newly formulated internet approach or marketing campaign. Bargaining Power of BuyersBusiness persons choosing a hotel are tech savvy and find it easy to search for cheaper hotels in internet and book them. This eliminates middle men and intermediaries which in turn increases the bargaining power. The cost of transmutation is very low, which is again a high bargaining power on the side of buyers. This industry has numerous customers who arerelatively very dispirited in size. Loss ofa single customer has little impact on a hotel company and this drives down the buyersbargaining power. Rivalry among quick competitors The rivalry among competitors in the hotel industry is fierce.When potential customers can learn about a hotel on line, the internet reduces the differences among competitors. People tend to seek the best price for the best experience and the tendency is to reduce price to be competitive. The internet covers wide geographical areas so the market is widened increasing the number of competitors. Barriers to entry Initial investment cost is very high. A rattling barrier would be differentiation. A hotel that can differential itself by location, by service, amenities or some other quality has the potential to attract and keep its clients.Another barrier to entry would be expertise. Unfortunately, in a alert society employees frequently leave one hotel chain to work in another and they take that expertise in terms of training or of experience with them. It is in the areas of expertise and of differentiation that a hotel can make the greatest impact on its client and thereby on its john line. Economies of scale are also a huge factor in this industry. Profitability of hotel chains isdrastically higherthan individual operations.A new appetiser cannotcompete with established players in terms or quality and priceif they cannot establish significant economies of scale. High e xit barriers because of the specialized assets. Bargaining power of suppliers Two key suppliers for hotel industry are labour and real land. The number of suppliers forthe Hotel industry is quite large and each supplieris very handsome in size compared to the leading players in the industry. These fewpowerful players are indispensible to the suppliers. Substitutability of the suppliers is also quite feasible and inexpensive.Switching between real estate agents is not going to affecta particular Hotel company significantly. However in terms of quality, training centers for employees and ICTmanufacturers who translate IT systems that for property management are relatively more difficult to replace. Therefore in terms ofsubstitute suppliers industry attractiveness ismoderately high. Industrys threat of transposed integration is pretty high since large hotel chains like ITC or IHCLwould have no qualms expanding into the real estatebusiness or exploitation employee training faciliti es in-house. engine roomInnovative designs, technological promotional materials and next genesis inside(prenominal) concepts are keys to maintaining the Indian hospitality industrys success and to attract the next generation of customers. The concept, design, plan, materials, technology each aspect used in a hotel, restaurant or any property is ever changing and breaths technology for advancement and recognition. The brand loyalty increases with the concept and luxury of the hotel, no more with names. Technology plays a vital role in helping hotels expand and provide great services to the next generation of travellers.Availability enquiries, travel arrangements, local transport, introduction entry, reception desks, elevators, room, in-room features and everything travellers see and touch hotel are enhanced with the right technology and concept. To harness Indias tourism potential, several efforts are being interpreted for opening new destinations and exploring niche segments. H owever, infrastructure facilities such as air, rail, path connectivity, and hospitality services at these destinations and the connecting cities are inadequate.This remains a major hurdle for development of tourism. Roadways form a vital network in the tourist industry with almost 70% tourists in India travelling by road. Moreover, many tourist circuits depend on roads. Despite numerous efforts to reform road infrastructure, connectivity remains a major problem. There is a greater need for strengthened road and rail network, development of more expressways, and tourist-specific routes to remedy connectivity to various locations across different regions.Aviation infrastructure is also critical since it is a major mode of entry for inbound tourism. Passenger traffic is expected to increase in the coming years however infrastructure facilities at airports are cause for concern. Expansion and development of airports at major ingress cities is underway to cater to the increasing pass enger traffic. However, in addition, airport facilities at important secondary cities and tourist destinations also need to be improve to be able to handle greater passenger traffic.