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Case Study

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Avalon Consulting was invited by to be a part of the working group on tourism
created by Ministry of Tourism to develop a growth strategy for the sector
Situation Approach Solution

Client  Ministry of Tourism

 Tourism industry has a very high job creation potential as it generates more jobs for every
rupee of investment as compared to any other industry

 Given its job creation potential , a healthy and large tourism industry could be strategically
very important for India given that India is expected to add ~120 Mn people to its work force
by 2010 which will make India’s working population around 30% of the global force

 However, currently the tourism industry in India is not as developed as many leading countries
Situation such as China and USA and there is significant room for growth

 Honorable Minister of Tourism has constituted a working group comprising of stakeholders i.e
top officials from Tourism Ministry, industry associations and industry leaders to understand
the challenges and come up with suggestions for robust growth of the industry

 These recommendations are planned to presented to the Honorable Prime Minister

 Avalon consulting was invited to be a part of the working group

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Importance of Travel and Tourism in the Indian economy was highlighted
and comparisons vis a vis leading global destinations were made
Situation Approach Solution
Macro-economic Impact of Travel and Tourism
 Importance of Travel and Tourism on key macroeconomic
factors such as employment generation and contribution to
GDP were highlighted
 Example :
Impact on Employment Generation
Growth Strategy for Travel and Tourism Sector in India 3 Consulting
Comparison of Indian Tourist Destinations
with Other Popular Tourist Destinations
 Comparison between popular Indian tourist destinations was
made vis-à-vis similar popular global locations to understand
and highlight the untapped potential of Travel and Tourism in
India
 Example :
Global Comparison
(Great Wall of China Vs Taj Mahal)
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Key issues and challenges faced by the industry were identified and gaps
were assessed in detail
Situation Approach Solution

Key Concerns Examples of Gaps

Lack of Infrastructure

Lack of convergence

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Growth Strategy for Travel and Tourism Sector in India 4 Consulting
Recommendation to address key issues preventing growth of the industry
were made
Situation Approach Solution

 It was recommended that a Steering Committee on Tourism (similar to MSME)

Convergence headed by the Principal Secretary to PM be constituted to drive convergence

 Recommendations included development of Integrated Tourism Destinations (ITDs)

Infrastructure similar to manufacturing SEZs with details on implementation plan and support
needed for the same

 Various suggestions on Awareness and Promotion were made. E.g. how to promote
Awareness and ‘Incredible India’ aggressively, making tourism sites more ‘tourist friendly’, etc.
Promotion

 It was recommended that Ministry of Tourism be made a part of PM’s Council on Skill
Skill Development Development and National Skill Development Coordination Board

 It was suggested that taxes Taxes levied on Tourism Industry should be

Taxation unified, rationalised and made globally competitive

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Growth Strategy for Travel and Tourism Sector in India 5 Consulting
 mumbai
Raj Nair or K.A. Ramakrishnan or Naimish Dave or Jaldeep Sodhi
Casa Avalon
61, Dr. S. S. Rao Road, Parel
Mumbai 400 012 - India
Phone : 91-22- 66191100
Fax : 91-22- 66191122
E-mail : mumbai@consultavalon.com
Website : www.consultavalon.com
chennai
Premchand C.
No: 10, 3rd Floor, Spur Tank Road, Chetpet
Chennai 600 031 - India
Phone : 91-44- 43455345
Fax : 91-44- 43455338
E-mail : chennai@consultavalon.com
new delhi
Sridhar V.
E-141, Okhla Industrial Estate, Phase III
New Delhi 110 020 - India
Phone : 91-11- 40516600
Fax : 91-11- 40516650
E-mail : delhi@consultavalon.com

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