1. Tourism in India
A service sector growth industry
Presented By
Utkarsh Verma
XC
40

2. India: An emerging superpower

3. India’s GDP will exceed
 Italy’s in 2020,
 France’s in 2020
 Germany’s in 2025 and
 Japan’s in 2035
Goldman Sachs Projections (US 2003 $ Billion)

4. Tourism growth in India
According to World Tourism Organization
estimates, India will lead in South Asia with
8.9 million arrivals by 2020
India is poised to emerge as the 2nd fastest
growing (8.8%) tourism economy in the world
over 2005-14 according to the World Travel &
Tourism

5. Foreign earnings
There has been a growth of more than 13% in
foreign tourist arrivals at 3.9 million during
2005, up from 3.4 million foreign tourists who
visited India during previous year.
Foreign exchange earnings from foreign
tourists were up by more than 20% at
$5,730.86 million in 2005, up from $4,769
million earned the previous year.

6. Air travel and India
Indian air travel to grow 20% each year for the next 5
years
Government and private operators will invest $20 billion
in aircraft and infrastructure over the next five years
Air India will be adding 68 aircraft to its present fleet,
Indian Airlines 43 and private airlines around 275
By 2010, Indian airports will be handling between 90 and
100 million passengers (59 million domestic & 35 million
international passengers)

7. Tourist destinations
North East – States such as Sikkim, Assam and
Nagaland have emerged as major players. The major
focus in 2005 was to develop tourism infrastructure in
the region.
New States – Uttaranchal attracted 14 million tourists
and in 2004 witnessed a growth of 40% in 2005. Major
focus on marketing to attract high spending tourists,
initiatives to create world-class infrastructure.
Beautiful South – Aggressive marketing has helped
achieve over 25% growth in tourism in southern states.
Andhra Pradesh and Karnataka are witnessing an
upswing in foreign tourists.

8. Forms of tourism
Cultural tourism & Round Trips – covering the
popular circuits comprising of the Golden Triangle,
Rajasthan, N. India & in South the well known
temples, backwaters & beaches.
Mass tourism – Goa is a tourism based economy
and a leader in this sector, is all set to promote
mass tourism. Goa also won the 2nd most popular
winter destination in UK.
Commonwealth Games 2010 – the government
is investing in infrastructure, to further develop
tourism in and around Delhi.

9. An all-year round destination.
Throughout the world,
India is perceived as a
October to April winter
destination.
Marketing initiatives
by both the
Government and the
private sector is now
successfully
addressing &
changing this
perception.

10. New Tourism Products
Monsoon magic - focus on months from April to
October
Rural & village tourism - the tourism ministry is
laying special emphasis on infrastructure development
in various rural destinations in India.
Medical tourism - the Indian Healthcare Delivery
market is estimated at US$ 18.7 billion. The industry is
growing at about 13 per cent annually.
Luxury tourism – e.g. Palace on Wheels, Palaces
Adventure tourism – with emphasis on eco-tourism

11. Benefits of tourism
There has been a positive change in perception
about the benefits of tourism in the minds of
planners, policy makers and as well as state
governments in India.
Tourism is now being seen as an engine of growth for
the economy and a key employment generator.
 Low Capital Investment in the trade.
 Imports earn foreign exchange.
 Cultural revival/ regeneration

12. Ecotourism
There has been a major
growth in ecotourism that
is sustainable and
environmentally non-
invasive.
Resorts are designed
using local labour forces
and local materials.
Energy sources are
sustainable: cow dung
and wood

13. The market for Ecotourism
Ecotourism tends
to be geared to a
young and
wealthy market.
Activities are
marketed and life
style emphasised.

14. Medical tourism in India
Medical care in the USA and private health care in UK is very
expensive. India has well-trained doctors who will work for a
lower fee than they could expect abroad.
Medical tourism offers people the option of knee
replacements, hip replacements, heart care, cosmetic &
dental surgery in India.
Hundreds of people have treatment abroad, saving them a
great deal of money in treatment costs.

15. Sample costs