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IJTEMT

Paper Title :
ROLE OF HOSPITALITY INDUSTRY A PART OF TOURISM INDUSTRY IN THE REVENUE GENERATION FOR INDIAN ECONOMY

Abstract
As per United Nations World Tourism Organization there has been a moderate but constant growth in the travel and tourism industry worldwide and India is not untouched by this. When there is a discussion about tourism industry on any platform, the discussion would be incomplete without the incorporation of hotel industry which is an integral part like heart to the human body. Tourism is a leisure activity and in the present scenario when people move out they are a part of either inbound or outbound tourism. This tourist movement from one destination to the other enhances the graph of tourism, revenue and job opportunity which are interrelated. This paper not only focuses on how India is making its presence felt on the International tourism map but as well as the role of hotel industry in the Indian economy. The demand supply gap in India is a reality on ground zero which cannot be ignored. The Indian government E-visa for forty three nations is a step towards promoting India as a tourist hub. The paper also aims to seek those steps and measures being taken by the new government at the centre which will boost up the infrastructure and facilities in the hotel as well as tourism field and as a result more revenue would be generated. For the set objectives secondary data has been collected through newspapers, magazines, website, and research papers. After analyzing the facts and figures it can be said that the role of tourism in GDP contribution is getting large day by day.

Authors:

Deepak Singh Rawat
Assistant Professor
Amrapali Institute of Hotel Management, Haldwani
Uttarakhand, India

Naina Malhotra
Lecturer
Amrapali Institute of Hotel Management, Haldwani
Uttarakhand, India

Sumit Joshi
Assistant Professor
Amrapali Institute of Hotel Management, Haldwani
Uttarakhand, India


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Role Of Hospitality Industry A Part Of Tourism Industry In The Revenue Generation For Indian Economy

Paper Transcript of Paper Titled :
ROLE OF HOSPITALITY INDUSTRY A PART OF TOURISM INDUSTRY IN THE REVENUE GENERATION FOR INDIAN ECONOMY


Role of Hospitality Industry a part of Tourism Industry in the Revenue Generation for Indian Economy


Deepak Singh Rawat
Assistant Professor
Amrapali Institute of Hotel Management, Haldwani
Uttarakhand, India
Naina Malhotra
Lecturer
Amrapali Institute of Hotel Management, Haldwani
Uttarakhand, India
Sumit Joshi
Assistant Professor
Amrapali Institute of Hotel Management, Haldwani
Uttarakhand, India



 


Abstract— As per United Nations World Tourism Organization there has been a moderate but constant growth in the travel and tourism industry worldwide and India is not untouched by this. When there is a discussion about tourism industry on any platform, the discussion would be incomplete without the incorporation of hotel industry which is an integral part like heart to the human body.
Tourism is a leisure activity and in the present scenario when people move out they are a part of either inbound or outbound tourism. This tourist movement from one destination to the other enhances the graph of tourism, revenue and job opportunity which are interrelated. This paper not only focuses on how India is making its presence felt on the International tourism map but as well as the role of hotel industry in the Indian economy.  The demand supply gap in India is a reality on ground zero which cannot be ignored. The Indian government E-visa for forty three nations is a step towards promoting India as a tourist hub. The paper also aims to seek those steps and measures being taken by the new government at the centre which will boost up the infrastructure and facilities in the hotel as well as tourism field and as a result more revenue would be generated. For the set objectives secondary data has been collected through newspapers, magazines, website, and research papers. After analyzing the facts and figures it can be said that the role of tourism in GDP contribution is getting large day by day.
Keywords- tourism indiustry; international tourism; hotel industry; revenue generation;

 Introduction: Hospitality Industry – A Major Revenue Generator

Tourism sector has become an important and a key industry in Indian Economy. According to the World Travel and Tourism Council, the tourism industry of India is likely to generate US $121.4 billion of economic activity by the end of 2015. Keeping up with the pace the hospitality industry is expected to generate US $ 24 billion in foreign exchange. The booming tourism industry will also bring a rapid growth in the hospitality sector by increasing the occupancy ratio as well as the average room rates. In Financial year 2013-2014 the occupancy ratio was 57% with an increase by 1% as compared to previous financial year. On the other hand a slight negative aspect was seen in terms of Average Room Rate decreasing by 3.4% over a period of one year due to supply pressures and general slowdown in the economy. Overall on the long run the future prospects for the hospitality business are positive from both business and leisure segment point of view as there is a lot of potential in terms of economic growth, increase in disable incomes and the burgeoning middle class.
Government of India has increased its budget of advertisement for activities like ‘Incredible India’ and ‘Athithi Devo Bhava’- Visitors are like Gods, so that more and more inbound and international tourists choose India or places within India as their destination. The newly elected Government of India has clearly mentioned its intentions that tourism including hospitality sector will be given due weightage and importance. According to Cushman and Wakefield(C&W) report hospitality sector of India is expecting to witness a rapid growth in terms of refined infrastructure. On a rough count 4,304 new hotel rooms are expected to be available for guest use by the end of year 2014.  Out of these 36% will be of mid-scale category, 13% in the upscale category, 17% in the budget room category, 13% in the upper scale category and 20% in the luxury category.

Methodology

Objective of the Study

Out of many some facts and figures which are related to hotel industry have been analyzed and to do so certain objectives were down which are as follows:-
1.      To analyze the increase in the number of visitors as well as increase in the demand of rooms and beds.
2.      To study the demand supply scenario of hotels in India.
3.      To ascertain the challenges to be met by the hotel industry.
4.      To explore the role of hotel industry in revenue generation.

Research Methodology

Research methodology is partly descriptive and partly exploratory. For this purpose fact, figures and information has been called by referring to magazines, books, newspapers, research journal, and research articles of E- journals, UNWTO report, Ministry of Tourism, India, Annual report and statistics available on the website.

Analysis and Discussion

The international travel and tourism industry continues to show steady growth according to the United Nations World Tourism Organization (UNWTO). In the year 2012 the tourist arrival worldwide was 1.035 million and in this India’s share was 10%. This figure shot up to 1.057 million with an increase of about 5% by the end of year 2013. The positive sign for India is that its share in the International Tourism moved to 1.5% from 0.9% in the year 2012.
According to the World Travel and Tourism Council (WTTC) the tourism sectors contribution to the global economy continued to enhance in the fourth consecutive year and in the case of India it is for the third consecutive year starting from the year 2010. The economy contribution by the tourism sector either from direct or indirect activities was US $7 trillion in Gross Domestic Product (GDP) and 266 million jobs. In short Travel and Tourism sector accounts for 9.5% of global GDP, one in eleven jobs, 5% of investment and 55 of export.
When we look to the Indian scenario the picture is very pleasing as according to WTTC the total direct as well as indirect economy impact of the travel and tourism industry was US $128 billion by 2013, which means exactly 6.7% of the GDP and over 39.4 million jobs. According to the Statistics updated by the Ministry of Tourism, India the foreign tourist arrival in India has remained steady. Even though there has been a considerable slowdown in the growth rate in the year 2013, yet it is at par with the global scenario and can be expected to pick ever since the formation of new government at the center and the economy getting stronger. India earned nearly about US $21.9 billion from its tourism sector experts. This comprises of 13% of all exports from the service sector.

Month-wise Foreign Tourist Arrivals (FTAs) in India, 2012-2014

 

 

Foreign Tourist Arrivals (FTAs) in India

 

 

 

 

 

 

 

 

 

Month

2012

2013

2014 (P)

Percentage(%) Change

 

 

 

 

2013/2012

2014/2013

 

 

 

 

 

 

January

681002

720321

719965

5.8

0.0

 

February

681193

688569

737870

1.1

7.2

 

March

606456

639530

668896

5.5

4.6

 

April

447581

450580

504211

0.7

11.9

 

May

374476

417453

420976

11.5

0.8

 

June

433390

451223

491833

4.1

9.0

 

July

485808

506427

 

4.2

 

 

August

445632

486338

 

9.1

 

 

September

411562

453561

 

10.2

 

 

October

556488

598095

 

7.5

 

 

November

701185

733923

 

4.7

 

 

December

752972

821581

 

9.1

 

 

Total

6577745

6967601

3543751

5.9

 

 

Sub-Total (Jan-June)

3224098

3367676

3543751

4.5 @

5.2  @

 

 

 

 

 

 

 

 

 

P: Provisional , @ Growth rate over January-June of previous year.

S ource: (i) Bureau of Immigration, Govt. of India, for 2012 & 2013

(ii) Ministry of Tourism, Govt. of India for 2014.

 

Foreign Exchange Earnings (FEE), in US$ Million, from Tourism

in India, 1997-2014

 

Year

 

FEE from Tourism

Percentage (%) change over

 

 

 

in India

the previous year

 

 

 

 

 

 

1997

 

2889

2.0

 

 

1998

 

2948

2.0

 

 

1999

 

3009

2.1

 

 

 

 

 

 

 

 

2000

 

3460

15.0

 

 

2001

 

3198

-7.6

 

 

 

 

 

 

 

 

2002

 

3103

-3.0

 

 

2003

 

4463

43.8

 

 

 

 

 

 

 

 

2004

 

6170

38.2

 

 

2005

 

7493

21.4

 

 

 

 

 

 

 

 

2006

 

8634

15.2

 

 

2007

 

10729

24.3

 

 

 

 

 

 

 

 

2008

 

11832

10.3

 

 

2009

 

11136

-5.9

 

 

 

 

 

 

 

 

2010

 

14193

27.5

 

 

2011

 

16564

16.7

 

 

 

 

 

 

 

 

2012

 

17737

7.1

 

 

2013#2

 

18445

4.0

 

 

 

 

 

 

 

 

Jan-June, 2014 #1

 

9334

-0.8 @

 

 

Advance estimates,  @ Growth Rate over Jan-June, 2013

 

 

 

Ministry of tourism India 2011, 2012, 2013 &2014

 

 

 

 

 

 

 

 

 

 

 

 

Foreign Exchange Earnings (FEE), in ` Crore, from

Tourism in India, 1997-2014

Year

FEE from Tourism

Percentage (%) change over

 

in India

the previous year

 

 

 

1997

10511

4.6

 

1998

12150

15.6

 

1999

12951

6.6

 

2000

15626

20.7

 

2001

15083

-3.5

 

2002

15064

-0.1

 

2003

20729

37.6

 

2004

27944

34.8

 

2005

33123

18.5

 

2006

39025

17.8

 

2007

44360

13.7

 

2008

51294

15.6

 

2009

53700

4.7

 

2010

64889

20.8

 

2011

77591

19.6

 

2012

94487

21.8

 

2013#2

107671

14.0

 

Jan-June, 2014 #1

56760

10.0 @

 

  Advance estimates, @ Growth rate over Jan-June, 2013

  Ist revised estimates.

Source: (i) Reserve Bank of India, for 1997 to 2010.

      (ii) Ministry of Tourism, Govt. of India, for 2011 , 2012, 2013 & 2014

Month-wise Foreign Exchange Earnings (FEE), in US$ Million,

from Tourism in  India, 2012-2014

 

 

 

 

FEE  from Tourism in India

Percentage (%) change

Month

 

 

 

 

 

 

 

 

 

2012

 

2013#2

 

2014#1

2013/2012

2014/2013

 

 

 

 

 

 

 

 

January

1681

 

1984

 

1786

18.0

-10.0

 

 

 

 

 

 

 

 

February

1729

 

1906

 

1805

10.2

-5.3

March

1559

 

1755

 

1662

12.6

-5.3

 

 

 

 

 

 

 

 

April

1305

 

1329

 

1431

1.8

7.7

May

1023

 

1207

 

1210

18.0

0.2

 

 

 

 

 

 

 

 

June

1158

 

1227

 

1440

6.0

17.4

July

1512

 

1442

 

 

-4.6

 

 

 

 

 

 

 

 

 

August

1306

 

1328

 

 

1.7

 

September

1219

 

1224

 

 

0.4

 

 

 

 

 

 

 

 

 

October

1538

 

1404

 

 

-8.7

 

November

1776

 

1703

 

 

-4.1

 

 

 

 

 

 

 

 

 

December

1931

 

1936

 

 

0.3

 

Total

17737

 

18445

 

 

4.0

 

 

 

 

 

 

 

 

 

Sub Total (Jan-June)

8455

 

9408

 

9334

11.3 @

-0.8 @

# 1

 

Advance estimates and @ Growth rate over Jan-June of previous year.

 

 

 

# 2

Ist Revised estimates.

 

 

 

 

 

 

 

Source: Ministry of Tourism, Govt. of India

 

Month-wise Foreign Exchange Earnings (FEE), in ` Crore,

from Tourism in India, 2012-2014

 

 

FEE  from Tourism in India

Percentage (%) change

Month

 

 

 

 

 

 

 

2012

 

2013#2

2014#1

2013/2012

2014/2013

 

 

 

 

 

 

 

January

8623

 

10785

11082

25.1

2.8

 

 

 

 

 

 

 

February

8502

 

10255

11239

20.6

9.6

March

7843

 

9545

10152

21.7

6.4

 

 

 

 

 

 

 

April

6745

 

7226

8645

7.1

19.6

May

5562

 

6627

7184

19.1

8.4

 

 

 

 

 

 

 

June

6485

 

7149

8458

10.2

18.3

July

8389

 

8620

 

2.8

 

 

 

 

 

 

 

 

August

7260

 

8351

 

15.0

 

September

6652

 

7811

 

17.4

 

 

 

 

 

 

 

 

October

8154

 

8645

 

6.0

 

November

9723

 

10663

 

9.7

 

 

 

 

 

 

 

 

December

10549

 

11994

 

13.7

 

Total

94487

 

107671

 

14.0

 

 

 

 

 

 

 

 

Sub Total (Jan-June)

43760

 

51587

56760

17.9@

10.0 @

 

 

 

 

 

 

 

# 1   Advance estimates  and @ Growth rate over Jan-June of previous year.

#2: Ist Revised estimates.

Source: Ministry of Tourism, Govt. of India .
Top 10 Source Countries for Foreign Tourist Arrivals (FTAs) in

India in 2013

S.No

Source Country

FTAs (in Million)

Percentage %

 

Share

 

 

 

 

 

1.

USA

1085309

15.58

 

 

 

 

 

 

2.

United Kingdom

809444

11.62

 

3.

Bangladesh

524923

7.53

 

 

 

 

 

 

4.

Sri Lanka

262345

3.77

 

5.

Russian Fed.

259120

3.72

 

 

 

 

 

 

6.

Canada

255222

3.66

 

7.

Germany

252003

3.62

 

 

 

 

 

 

8.

France

248379

3.56

 

9.

Malaysia

242649

3.48

 

 

 

 

 

 

10.

Japan

220283

3.16

 

 

 

 

 

 

Total of Top 10 Countries

4159677

59.70

 

 

 

 

 

 

Others

 

2807924

40.30

 

G.Total

 

6967601

100.0

 

 

 

 

 

 

Source:- Bureau of Immigration, Govt. of India
Number of Indian Nationals Departures (INDs) from

India, 1997-2013

Year

No. of Indian Nationals

Percentage (%) change over

 

Departures (in Million)

the previous year

 

 

 

1997

3.73

7.6

 

1998

3.81

2.3

 

1999

4.11

8.0

 

 

 

 

 

2000

4.42

7.3

 

2001

4.56

3.4

 

 

 

 

 

2002

4.94

8.2

 

2003

5.35

8.3

 

 

 

 

 

2004

6.21

16.1

 

2005

7.18

15.6

 

 

 

 

 

2006

8.34

16.1

 

2007

9.78

17.3

 

 

 

 

 

2008

10.87

11.1

 

2009

11.07

1.8

 

 

 

 

 

2010

12.99

17.4

 

2011

13.99

7.7

 

 

 

 

 

2012

14.92

6.7

 

2013

16.63

11.4

 

 

 

 

 

Source:- Bureau of Immigration, Govt. of India

 

Number of Domestic Tourist Visits (DTVs) to all States/UTs

in India, 1997-2013

Year

 

No. of Domestic Tourist

Percentage (%) change over

 

 

Visits to States/UTs (in Million)

the previous year

 

 

 

 

1997

 

159.88

14.1

 

1998

 

168.20

5.2

 

1999

 

190.67

13.4

 

 

 

 

 

 

2000

 

220.11

15.4

 

2001

 

236.47

7.4

 

 

 

 

 

 

2002

 

269.60

14.0

 

2003

 

309.04

14.6

 

 

 

 

 

 

2004

 

366.27

18.5

 

2005

 

392.01

7.0

 

 

 

 

 

 

2006

 

462.32

17.9

 

2007

 

526.56

13.9

 

 

 

 

 

 

2008

 

563.03

6.9

 

2009

 

668.80

18.8

 

 

 

 

 

 

2010

 

747.70

11.8

 

2011

 

864.53

15.6

 

 

 

 

 

 

2012

$

1045.05

20.9

 

2013

(P)

1145.28

9.6

 

Source : State/ Union Territory Tourism Departments .

(P)   : Provisional,  $-DTV figure of 2012 has been revise
Number of Domestic Tourist Visits (DTVs) to all States/UTs

in India, 1997-2013

Year

 

No. of Domestic Tourist

Percentage (%) change over

 

 

Visits to States/UTs (in Million)

the previous year

 

 

 

 

1997

 

159.88

14.1

 

1998

 

168.20

5.2

 

1999

 

190.67

13.4

 

 

 

 

 

 

2000

 

220.11

15.4

 

2001

 

236.47

7.4

 

 

 

 

 

 

2002

 

269.60

14.0

 

2003

 

309.04

14.6

 

 

 

 

 

 

2004

 

366.27

18.5

 

2005

 

392.01

7.0

 

 

 

 

 

 

2006

 

462.32

17.9

 

2007

 

526.56

13.9

 

 

 

 

 

 

2008

 

563.03

6.9

 

2009

 

668.80

18.8

 

 

 

 

 

 

2010

 

747.70

11.8

 

2011

 

864.53

15.6

 

 

 

 

 

 

2012

$

1045.05

20.9

 

2013

(P)

1145.28

9.6

 

Source : State/ Union Territory Tourism Departments .

(P)   : Provisional,  $-DTV figure of 2012 has been revised

Number of Foreign Tourist Visits (FTVs) to all States/UTs

in India, 1997-2013

Year

 

No. of Foreign Tourist

Percentage (%) change over

 

 

Visits to States/UTs (in Million)

the previous year

 

 

 

 

1997

 

5.50

9.3

 

1998

 

5.54

0.7

 

1999

 

5.83

5.3

 

 

 

 

 

 

2000

 

5.89

1.1

 

2001

 

5.44

-7.8

 

 

 

 

 

 

2002

 

5.16

-5.1

 

2003

 

6.71

30.1

 

 

 

 

 

 

2004

 

8.36

24.6

 

2005

 

9.95

19.0

 

 

 

 

 

 

2006

 

11.74

18.0

 

2007

 

13.26

12.9

 

 

 

 

 

 

2008

 

14.38

8.5

 

2009

 

14.37

-0.1

 

 

 

 

 

 

2010

 

17.91

24.6

 

2011

 

19.50

8.9

 

 

 

 

 

 

2012

$

18.26

-6.3

 

2013

(P)

19.95

9.2

 

Source: State/ UT Tourism Departments .  (P) : Provisional

$: FTV figure for 2012 has been revised.

Share of Top 10 States/UTs of India in Number of Domestic Tourist Visits in 2013

Rank

State/UT

Domestic Tourist Visit in 2013 (P)

 

Number

Percentage Share %

 

 

 

 

1.

Tamil Nadu

244232487

21.3

 

 

 

 

 

 

2.

Uttar Pradesh

226531091

19.8

 

3.

Andhra Pradesh

152102150

13.3

 

 

 

 

 

 

4.

Karnataka

98010140

8.6

 

5.

Maharashtra

82700556

7.2

 

 

 

 

 

 

6.

Madhya Pradesh

63110709

5.5

 

7.

Rajasthan

30298150

2.6

 

 

 

 

 

 

8.

Gujarat

27412517

2.4

 

9.

West Bengal

25547300

2.2

 

 

 

 

 

 

10.

Chhattisgarh

22801031

2.0

 

 

 

 

 

 

Total of Top 10 States

972746131

84.9

 

 

 

 

 

 

Others

 

172534312

15.1

 

 

 

 

 

 

Total

 

1145280443

100.0

 

 

 

 

 

 

Source: State/ UT Tourism Departments.

(P): Provisional.

Share of Top 10 States/UTs of India in Number of  Foreign Tourist Visits in 2013

Rank

State/UT

Foreign Tourist Visit in 2013 (P)

 

Number

Percentage Share %

 

 

 

 

1.

Maharashtra

4156343

20.8

 

 

 

 

 

 

2.

Tamil Nadu

3990490

20.0

 

3.

Delhi

2301395

11.5

 

 

 

 

 

 

4.

Uttar Pradesh

2054420

10.3

 

5.

Rajasthan

1437162

7.2

 

 

 

 

 

 

6.

West Bengal

1245230

6.2

 

7.

Kerala

858143

4.3

 

 

 

 

 

 

8.

Bihar

765835

3.8

 

9.

Karnataka

636378

3.2

 

 

 

 

 

 

10.

Goa

492322

2.5

 

Total of Top 10 States

17937718

89.9

 

 

 

 

 

 

Others

 

2013308

10.1

 

 

 

 

 

 

Total

 

19951026

100.0

 

 

 

 

 

 

 

Source: State/ UT Tourism Departments. (P): Provisional

Share of India in International Tourist Arrivals in World

and Asia & the Pacific Region,1997-2013

 

 

International

 

 

Percentage (%)

Percentage (%) share

 

 

Tourist Arrivals

 

FTAs in

share and rank of

and rank of India in

 

Year

(in million)

 

India in World

Asia and the Pacific

 

 

 

 

India

 

 

 

 

 

 

 

Asia and

 

 

 

 

 

 

 

 

 

(in Million)

 

 

 

 

 

 

World

the

 

 

% Share

Rank

% Share

Rank

 

 

 

Pacific

 

 

 

 

 

 

 

1997

593.0

89.0

2.37

0.40

-

2.67

-

 

1998

611.0

88.3

2.36

0.39

47th

2.67

-

 

1999

633.8

97.6

2.48

0.39

46th

2.54

-

 

2000

683.3

109.3

2.65

0.39

50th

2.42

11th

 

2001

683.4

114.5

2.54

0.37

51st

2.22

12th

 

 

 

 

 

 

 

 

 

 

2002

703.2

123.4

2.38

0.34

54th

1.93

12th

 

2003

691.0

111.9

2.73

0.39

51st

2.44

11th

 

2004

762.0

143.4

3.46

0.45

44th

2.41

11th

 

2005

803.4

154.6

3.92

0.49

43rd

2.53

11th

 

 

 

 

 

 

 

 

 

 

2006

846.0

166.0

4.45

0.53

44th

2.68

11th

 

2007

894.0

182.0

5.08

0.57

41st

2.79

11th

 

 

 

 

 

 

 

 

 

 

2008

917.0

184.1

5.28

0.58

41st

2.87

11th

 

2009

883.0

181.1

5.17

0.59

41st

2.85

11th

 

 

 

 

 

 

 

 

 

 

2010

948.0

204.9

5.78

0.61

42nd

2.82

11th

 

2011

995.0

218.5

6.31

0.63

38th

2.89

9th

 

2012

1035.0

233.5

6.58

0.64

41st

2.82

11th

 

2013

1087.0 (P)

248.1(P)

6.97

0.64

42nd

2.81

11th

 

 

P: Provisional, - NA

Source:-(i) UNWTO Tourism Market Trends 2007 Edition, for the years upto 2005. (ii) UNWTO Barometer June 2010 for 2006 and January 2011 for 2007

(iii) UNWTO Tourism Highlights 2011 Edition for 2008 and 2012 Edition for 2009. (iv) UNWTO Barometer April 2014 for 2010, 2011, 2012 & 2013

 

 

Share of India in International Tourism Receipts in World

and Asia & the Pacific Region,1997-2013

 

International Tourism

 

Percentage (%)

Percentage (%) share

 

 

Receipt

FEE in

share and rank of

 

 

and rank of India in

 

 

(In US $ billion)

India

India in World

 

Year

Asia and the Pacific

 

 

 

(In US $

 

 

 

 

 

Asia and

 

 

 

 

 

 

 

Million)

 

 

 

 

 

 

World

the

% Share

Rank

% Share

Rank

 

 

 

 

 

 

Pacific

 

 

 

 

 

 

1997

442.8

82.6

2889

0.65

-

3.50

-

 

1998

444.8

72.3

2948

0.66

34th

4.08

-

 

1999

458.2

79.1

3009

0.66

35th

3.80

-

 

2000

475.3

85.3

3460

0.73

36th

4.06

10th

 

2001

463.8

88.1

3198

0.69

36th

3.63

12th

 

 

 

 

 

 

 

 

 

 

2002

481.9

96.5

3103

0.64

37th

3.22

13th

 

2003

529.3

93.7

4463

0.84

37th

4.76

9th

 

2004

633.2

124.1

6170

0.97

26th

4.97

8th

 

2005

679.6

135.0

7493

1.10

22nd

5.55

7th

 

 

 

 

 

 

 

 

 

 

2006

744.0

156.9

8634

1.16

22nd

5.50

7th

 

2007

857.0

187.0

10729

1.25

22nd

5.74

6th

 

 

 

 

 

 

 

 

 

 

2008

939.0

208.6

11832

1.26

22nd

5.67

6th

 

2009

853.0

204.2

11136

1.31

20th

5.45

7th

 

 

 

 

 

 

 

 

 

 

2010

931.0

255.3

14193

1.52

17th

5.56

7th

 

2011

1042.0

289.4

16564

1.59

17th

5.72

8th

 

 

 

 

 

 

 

 

 

 

2012

1078.0

329.1

17737

1.65

16th

5.39

7th

 

2013(P)

1159.0

358.9

18445

1.59

16th

5.14

8th

 

 

P:  Provisional, -NA

Source: (i) UNWTO Tourism Market Trends 2007 Edition, for the years upto 2005

  • UNWTO Barometer  June 2009 for 2006 & 2007

 

  • UNWTO Tourism Highlights 2011 Edition for 2008 and 2012 Edition for 2009 .
  • UNWTO Barometer April 2014 for 2010, 2011 , 2012 & 2013

 

 

 

Share of Top 10 Countries of the World and India in

  •  

International Tourist Arrivals in 2013

Rank

Country

 

International Tourist

 

Percentage Share %

 

 

Arrivals (P) (in million)

 

 

 

 

 

 

1.

France

 

 

NA

 

 

NA

 

 

 

 

 

 

 

 

 

 

2.

USA

 

 

69.8

 

 

6.74

 

3.

Spain

 

 

60.7

 

 

5.86

 

 

 

 

 

 

 

 

 

 

4.

China

 

 

55.7

 

 

5.38

 

5.

Italy

 

 

47.7

 

 

4.61

 

 

 

 

 

 

 

 

 

 

6.

Turkey

 

 

37.8

 

 

3.65

 

7.

Germany

 

 

31.5

 

 

3.04

 

 

 

 

 

 

 

 

 

 

8.

UK

 

 

31.2

 

 

3.01

 

9.

Russian Federation

 

 

28.4

 

 

2.74

 

 

 

 

 

 

 

 

 

 

10.

Thailand

 

 

26.5

 

 

2.56

 

Total of

Top 10 Countries

 

 

389.3

 

 

37.59

 

 

 

 

 

 

 

 

 

 

India #

 

 

 

6.97

 

 

0.67

 

Others

 

 

 

638.7

 

 

61.74

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

1035.0

 

 

100.00

 

(P): Provisional.  N.A.: Not Available

 

 

 

 

 

 

 

# Excludes nationals of the country residing abroad.

 

 

 

 

 

 

 

Source: UNWTO  Barometer April 2014 and Bureau of Immigration (BOI)

 

 

 

 

 

Share of Top 10 Countries of the World and India in

International Tourism Receipts in 2013

Rank

Country

International Tourist

Percentage % Share

 

Receipts (P) (in US $ billion)

 

 

 

 

 

1.

USA

139.6

12.04

 

 

 

 

 

 

2.

Spain

60.4

5.21

 

3.

France

56.1

4.84

 

 

 

 

 

 

4.

China

51.7

4.46

 

5.

Macao (China)

51.6

4.45

 

 

 

 

 

 

6.

Italy

43.9

3.79

 

7.

Thailand

42.1

3.63

 

 

 

 

 

 

8.

Germany

41.2

3.55

 

9.

United Kingdom

40.6

3.50

 

 

 

 

 

 

10.

Hong Kong(China)

38.9

3.36

 

Total of Top 10 Countries

566.1

48.83

 

 

 

 

 

 

India

 

18.4

1.59

 

Others

 

574.5

49.58

 

 

 

 

 

 

Total

 

1159.0

100.00

 

 

 

 

 

 

P: Provisional.

Source: UNWTO Barometer April 2014 and Ministry of Tourism (MOT).

Nationality - wise Visa on Arrivals (VoAs) in India during 2011 - 2013

S.No.

Source Country

 

Visa on Arrivals

 

 

 

2011

2012

2013

 

 

 

 

 

1.

Cambodia

149

157

120

 

 

 

 

 

2.

Finland

1335

914

1030

 

 

 

 

 

3.

Indonesia

2063

2426

2758

 

 

 

 

 

4.

Japan

2344

4604

6448

 

 

 

 

 

5.

Laos

14

10

19

 

 

 

 

 

6.

Luxemburg

74

110

145

 

 

 

 

 

7.

Myanmar

71

109

148

 

 

 

 

 

8.

New Zealand

2762

3150

3968

 

 

 

 

 

9.

Philippines

1956

2444

2967

10.

Singapore

1848

1974

2486

 

 

 

 

 

11.

Vietnam

145

186

205

 

Total

12761

16084

20294

 

 

 

 

 

 

Source: Bureau of Immigration (BOI),

Number of Approved Hotels and Availability of Hotel Rooms in the Country, as on 31st December, 2013.

S. No.

 

Category of Hotels

N o . of H otels (P)

N o . of Rooms(P)

 

 

 

 

 

1

 

One Star

86

2253

2

 

Two Star

122

3160

3

 

Three Star

634

26463

4

 

Four Star

114

8250

5

 

Five Star

86

10033

6

 

Five Star Deluxe

108

22173

7

 

Apartment Hotels

3

249

8

 

Time Share Resorts

1

31

9

 

Heritage Hotels

49

1394

10

 

Silver Bed & Breakfast Establishment

6

23

11

 

Unclassified

33

2829

 

 

Total

1242

76858

Number of Operators Approved by the Ministry of Tourism in the Country, as on 31st December, 2013.

S .N o .

Operator

         Nos.

1

Travel Agent

288

2

Inbound Tour Operator

444

3

Tourist Transport Operator

131

4

Adventure Tour Operator

32

5

Domestic Tour Operator

76

 

Total

            971

Comparision of Demand and Supply in Terms of Foreign and Domestic Tourist Arrival

After the
According to the Annual Report of Indian Tourism Ministry, the number of foreign tourist arrival (FTA’s) in India during the year 2013 was 6.97 million. This was about 5.9% higher as compared to FTA’S of 6.58 million during the year 2012. The year 2012 registered a growth of 4.3% as compared to year 2011.
The tourism sector produced foreign exchange earnings(FEEs) of US $18.445 billion .In terms of Hospitality industry’s performance in India, the rates occupancies and RevPar(Revenue Per Room) having not risen much due to increase in supply in the market and the recession in the tourism environment. If we see the future the gap between the demand and supply is very real and there is a desperate need within the budget and the mid market hotel in the country. Whether the tourist is an inbound or international, tourist safety is the first priority, either in budget or luxury category accommodation. Many domestic and international brands have made significant progress into this empty segment. Still there lies tremendous scope for these segments of hotels to bloom and occupy the empty space.
On an optimistic note the United Nations World Tourist Organization (UNWTO) expect the growth in the year 2014 at 4% in line with its long term forecast. If we analyze one year back picture where Indian rupee against a dollar was declining day by day it had a positive impact on the travel plan of foreign tourist coming to India due to  depreciation of Indian currency, which meant they would have to spend less from their pocket..

Findings of the Research

1.      With the increase in the tourism activities whether inbound or outbound has led to the growth and expansion of the hotel industry. There are altogether 1.242 approved hotels which add up to a total of 76,858 rooms as on 31st December 2013.
2.      Though there were many hiccups and fluctuations still the share of India in international Tourism Receipts rose from US $442.8 billion in the year 1997 to US $ 1159.0 in the year 2013.
3.      Sports events like IPL, Commonwealth game; ICC Cricket World Cup provides an opportunity for expansion to tourism and hospitality industry.
4.      Slowly but steadily the number of foreign Tourist Arrival (FTA’s) in India has shot up from 2.37 million to 6.97 million in the year 2013.
5.      As there is lot of potential for budget tourists the government of Indian in collaboration with the private sector has given encouragement to budget category hotels like Ginger, Lemon Tree etc.

Challenges in the Near Future

Hospitality is expanding due to factors like more and more tourists are travelling from one destination to the other. This fact cannot be denied that India’s share in international tourism is less than 2% but the figures over the past 10 years reveal a positive story and if, efforts are well channelized that day is not far when India will have a major share of the International tourism.

Conclusion

Though, there is a lot to be done and India needs to pull up its socks and focus in the field of infrastructural development which matches with the international level. There is no shortage of tourist attraction spots across India but the accessibility of these spots remains a major concern which leads to unsatisfied tourist. If an unsatisfied tourist returns he will take a bad image about the country as well as his bad experience will force him not to return and at the same time he will share knight mare with other people known to him and ultimately others will also be discouraged to choose India as their vacation destination. With the entry of international chains the competition as well as the standard of the service has risen up which is a positive sign and this competition will get intense with the passage of time.
The good sign is that the current government is taking lot of forward steps in the field of tourism, recently the centre minister Mr. Mahesh Sharma has been given the Independent charge of Ministry of Tourism, India with different key result areas and High Tec action plan.
     There are a lot of expectations from him for improving the Indian tourism and hospitality Economy.

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