KERALA

THE IMPACT OF TRAVEL &TOURISM

ON JOBSANDTHE ECONOMY
CHAIRMAN: Jonathan Tisch Rod Eddington David Mongeau Lalit Suri
Sir Ian Prosser Chairman & CEO Chief Executive Vice President Chairman & Managing Director
Chairman Loews Hotels British Airways plc CIBC World Markets Bharat Hotels Ltd
InterContinental Hotels Group
Brett Tollman Mathias Emmerich Alan Mulally Ian Swain
VICE CHAIRMEN: Vice Chairman President & CEO Executive Vice President Chairman & CEO
Donald Carty The Travel Corporation Rail Europe Group, Inc The Boeing Company Swain Travel Services Inc
Chairman & CEO
American Airlines GLOBAL MEMBERS: Manuel Fernando Espírito Santo John M Noel Kathleen Taylor
Akbar Al Baker President President & CEO President,
Jean-Marc Espalioux CEO Espírito Santo Tourism The Noel Group Worldwide Business Operations
Chairman of Management Board Four Seasons Hotels and Resorts
Qatar Airways
& CEO Laurence Geller Tom Nutley
Accor Chairman & CEO Chairman José Antonio Tazón
Giovanni Angelini
Strategic Hotel Capital Reed Travel Exhibitions President & CEO
CEO & Managing Director
André Jordan Amadeus Global Travel
Shangri-La Hotels & Resorts
Chairman Henri Giscard d’Estaing Alan Parker Distribution
Lusotur SA Chairman & CEO Managing Director
David Babai Club Méditerranée Whitbread Hotel Company Jeffrey Toffler
Jonathan S Linen Chairman
Chairman
Vice Chairman Gullivers Travel Associates Maurice H Greenberg Jean Gabriel Pérès Coventry Partners
American Express Company Chairman & CEO President & CEO
Phil Bakes American International Mövenpick Hotels & Resorts Mustafa Türkmen
Vincent A Wolfington Chairman & CEO Group, Inc CEO & Managing Director
Chairman FAR&WIDE Travel Corporation Dionísio Pestana Enternasyonal Tourism
Carey International, Inc Richard Helfer Chairman Investments, Inc
Henrik Bartl Raffles International Group Pestana
EXECUTIVE COMMITTEE: Head of International Hotel Hotels & Resorts Patrice Vinet
Peter Armstrong Financing Stefan Pichler Partner
President & CEO Aareal Bank AG James Hensley Chairman & CEO Accenture
Rocky Mountaineer Railtours President Thomas Cook AG
Gordon Bethune Allied Europe Trevor de Vries
Sebastián Escarrer Chairman of the Board & CEO Fernando Pinto
Deputy Managing Director
Vice Chairman Continental Airlines James Hogan CEO
Mondial Assistance Group
Sol Meliá President and Chief Executive TAP Air Portugal
Paul Blackney Gulf Air
Jurgen Weber
Edouard Ettedgui President & CEO David Radcliffe
Chairman
Group Chief Executive Worldspan Stephen Holmes Chief Executive
Lufthansa German Airlines
Mandarin Oriental Hotel Group Vice Chairman Hogg Robinson plc
Cendant Corporation
Richard Brown Peter Yesawich
Maurice Flanagan CBE Jay Rasulo
Chief Executive Managing Partner
Group Managing Director Raimund Hosch President
Eurostar Group Yesawich, Pepperdine,
The Emirates Group President & CEO Walt Disney Parks & Resorts
Brown & Russel
Messe Berlin GmbH
Michael Frenzel Régis Bulot Kurt Ritter
Chairman of the Board HONORARY MEMBERS:
Chairman Joseph Humphry President & CEO
Relais & Châteaux Lord Marshall of Knightsbridge
TUI AG CEO Rezidor SAS Hospitality
Chairman
Travelweb LLC
Marilyn Carlson Nelson British Airways plc
David House Peter Rogers
Group President, Global Network Chairman & CEO Xabier de Irala President & CEO
and Establishment Services Carlson Companies Chairman & CEO Diners Club International Sir Frank Moore, AO
American Express Company Iberia, Airlines of Spain Chairman
Alun Cathcart Carl Ruderman Taylor Byrne Tourism Group
Richard R Kelley Deputy Chairman Nuno Trigoso Jordão Chairman
Chairman Avis Europe plc President & CEO. Universal Media Frank Olson
Outrigger Enterprises, Inc Sonae Turismo Gestão Chairman of the Board
e Serviços SA Bruno Schöpfer The Hertz Corporation
U Gary Charlwood
Geoffrey JW Kent Founder, Chairman & CEO Chairman of the Board
Chairman & CEO Sol Kerzner Mövenpick Hotels & Resorts Gérard Pélisson
Uniglobe Travel (International)
Abercrombie & Kent Chairman & CEO Co-Chairman, Supervisory Board
Inc
Kerzner International Ltd Robert Selander Accor
J W Marriott, Jr Jennie Chua President & CEO
Chairman & CEO Nigel Knowles MasterCard International Tommaso Zanzotto
Chairman & CEO
Marriott International, Inc Managing Partner President
Raffles International
DLA Per Setterberg TZ Associates Ltd
Hotels & Resorts
David Michels CEO
Chief Executive, Krishna Kumar Global Refund Group CHAIRMAN EMERITUS:
David Clifton James D Robinson III
Hilton Group plc Managing Director
Managing Director, General Partner
Hilton International The Taj Group of Hotels Eric Speck
Europe & Asia RRE Ventures
Executive Vice President &
Curtis Nelson Interval International Hans Lerch Chief Marketing Officer
President and COO President & CEO Sabre Holdings Corporation IMMEDIATE PAST
Carlson Companies Glen Davidson Kuoni Travel Holding Ltd CHAIRMEN:
Senior VP,Worldwide Travel Barry Sternlicht Harvey Golub
PRS Oberoi Insurance & Related Services Manuel Martin Chairman & CEO Retired Chairman & CEO
Chief Executive American International Partner Starwood Hotels & Resorts American Express Co
The Oberoi Group Group Inc CyberDodo Productions Ltd Worldwide, Inc
PRESIDENT:
Henry Silverman Lloyd Dorfman Paul McManus Ron Stringfellow Jean-Claude Baumgarten
Chairman, President & CEO Chairman & Chief Executive President & CEO Executive Chairman
Cendant Corporation The Travelex Group The Leading Hotels of the World Southern Sun Group Correct as at April 23, 2003

© 2003 WORLD TRAVEL & TOURISM COUNCIL

1-2 QUEEN VICTORIA TERRACE.SOVEREIGN COURT.LONDON E1W 3HA. UNITED KINGDOM
TEL: +44 (0) 870 727 9882 or + 44 (0) 207 481 8007 • FAX: +44 (0) 870 728 9882 or + 44 (0) 207 488 1008 • enquiries@wttc.org • www.wttc.org
THE WORLD TRAVEL & TOURISM COUNCIL (WTTC) IS THE BUSINESS
LEADERS’ FORUM FOR TRAVEL & TOURISM, WORKING WITH
GOVERNMENTS TO RAISE AWARENESS OF THE IMPORTANCE OF THE
WORLD’S LARGEST GENERATOR OF WEALTH AND JOBS.
With chief executives of more than 100 of the world’s leading companies in membership,
WTTC has a unique mandate and overview on all matters related to success in Travel &
Tourism.
WTTC is delighted to have collaborated with the Government of Kerala
to produce this report – the first simulated Tourism Satellite Account
(TSA) for an Indian state. Kerala is also one of the first state/provincial
governments in the world to quantify the far-reaching contribution of
Travel & Tourism to economic growth and employment thanks to the
implementation of this new accounting concept, approved by the United
Nations Statistical Commission.
This report estimates the current performance of Kerala’s Travel &
Tourism and provides forecasts based on the most recent national and
international data fed into econometric models developed by WTTC’s
research partner, Oxford Economic Forecasting. It quantifies all aspects of
Travel & Tourism demand, from personal consumption to business
purchases, capital investment, government spending and exports. It then
translates this information into economic concepts of production, such as
gross state product and employment, which can be compared with other
industries and the economy as a whole to provide credible statistical
information that will assist in policy and business decision processes.
Jean-Claude Baumgarten
President,World Travel & Tourism Council
The World Travel & Tourism Council would like to express its sincere gratitude to the Members and secretariat of the WTTC India Initiative who have contributed their time,
effort and resources to this and many other important India projects. A complete list of WTTC India Initiative Members can be found on the inside back cover of this report.
The message from this report is surprisingly positive. Travel &
Tourism is already one of the highest priority industries and employers
for the Kerala Government. Demand growth in Kerala is the highest in
the world and is projected to increase by 11.4 per cent per annum over
the coming decade.
However, in order to manage the projected demand, WTTC’s
research highlights the need for Kerala to address mission-critical issues
such as tourism policy planning, investment incentives, infrastructure
development, and marketing and promotion. In addition, sustainable
tourism development will depend on preservation and maintenance of
the state’s fragile ecosystem and the provision of facilities to train the
huge manpower required to adapt to the growth in demand.
We hope that, by raising awareness of the enormous potential of
Travel & Tourism in Kerala, this report will act as a catalyst, encouraging
industry and government to work together to create the conditions
necessary to realize this potential.
Yogesh Chandra
Secretary General,WTTC India Initiative
CONTENTS

EXECUTIVE SUMMARY ____________________________________________________________________________ 4

ECONOMIC IMPACT _________________________________________________________________________________________ 6
GROWTH____________________________________________________________________________________________________ 7
SUMMARY OF KEY TRENDS___________________________________________________________________________________ 9

KERALA’S TRAVEL & TOURISM

OVERVIEW OF CURRENT TRENDS AND DEVELOPMENTS _____________________________________________________ 11

TRAVEL & TOURISM SATELLITE ACCOUNT

TSA CONCEPTS & STRUCTURE _______________________________________________________________________________ 14
TRAVEL & TOURISM’S ECONOMIC IMPACT ___________________________________________________________________ 16
TSA HIGHLIGHTS ____________________________________________________________________________________________ 18

THE POLICY FRAMEWORK ____________________________________________________________________ 21

APPENDIX
SATELLITE ACCOUNT TABLES ________________________________________________________________________________ 26

Use of material is authorized, provided the source is acknowledged

3
EXECUTIVE
SUMMARY
THE IMPORTANCE OF TRAVEL & TOURISM TO KERALA’S
ECONOMY IS INDISPUTABLE AND CURRENT FORECASTS
PROJECT A VERY ROSY FUTURE FOR THE INDUSTRY.
NEVERTHELESS, CARE MUST BE TAKEN TO ENSURE THAT
FUTURE TOURISM DEVELOPMENT IS SUSTAINABLE, AND
THAT KERALA ATTRACTS THE RIGHT KIND OF TOURISM
WITH BENEFITS FOR ALL STAKEHOLDERS.
The decision to develop a tourism satellite account
(TSA) for Kerala was taken in June 2001 in an attempt
to explore the true potential of Kerala’s tourism product.
The TSA research was conducted in December 2001
and was based on data collected in the state at that time.
Kerala became WTTC’s first partner state in India
in 2000. In a communication to A K Antony, Chief
Minister of Kerala, Jean-Claude Baumgarten, President
of WTTC, said:
“We recognize that Kerala has tremendous potential for
Travel & Tourism.This partnership is designed to initiate and
strengthen a cohesive set of strategic policies to champion the
interest of India’s strongest economic growth sector and creator
of employment … We look forward to actively working with
you to strengthen tourism in your beautiful state and to make
it the foremost provider of income and jobs in the coming
years.”
A late-comer to tourism, Kerala is in many ways in
a fortunate position, since it has the opportunity of
learning from the mistakes of other destinations. In
particular, it needs to understand how to develop the
enormous potential of its tourism product without
over-exploiting its natural assets. Considerable care must
be taken to ensure that growth achieves a healthy
balance between business imperatives, the protection of
cultural heritage and environment, and the well-being
of local communities.
As is evident from the 1995 Kerala Tourism Policy
initiative, the state has strong support from government,
which is anxious to protect Kerala’s heritage and
welcomes the advice and expertise that will help it to
achieve this. Nevertheless, while there is no doubt that
Travel & Tourism already drives Kerala’s economy – in
terms of both employment and business opportunities –
a number of challenges must be addressed if it is to
achieve its enormous potential as a catalyst for future
economic and social development across the whole of
the state.
If managed effectively, Travel & Tourism can be an
important catalyst for the development of other
economic sectors within the state, such as
manufacturing, construction and the service industries.
It can also help to protect Kerala’s primary assets, namely
its largely unspoilt natural and cultural environment.The
government has already taken steps to establish a
working partnership with the private sector. This will
facilitate harmonization of the two sectors’ development
targets so that they remain complementary.
Kerala’s Travel & Tourism directly contributes 3.7
per cent of gross state product (GSP) and 3.0 per cent
of jobs. If its impact on the broader economy is taken
into consideration,Travel & Tourism generates as much
as 7.7 per cent of GSP and 6.2 per cent of total
employment. Visitor exports (tourism receipts from
international and ex-Kerala Indian visitors including
spending on transport) are even more impressive in
terms of share – at 14.3 per cent of total exports.
Over the next ten years, the average annual growth
in visitor exports is forecast at 13.8 per cent, and the
growth in Travel & Tourism economy GSP and
employment will be 10.7 per cent and 10.9 per cent
respectively, according to WTTC/OEF. Yet to ensure
these growth levels are achieved, the Kerala Government
must place a much higher priority on Travel & Tourism
than is the case at present. Of key concern is the fact that
government expenditures allocated to providing Travel
& Tourism services to visitors, travel companies and the
community at large are extremely low.
The different measures recommended in this
report are intended to set the stage to help ensure the
larger rewards that Travel & Tourism can bring over the
short, medium and longer term.
5
ECONOMIC IMPACT
IN 2003, KERALA’S TRAVEL & TOURISM IS EXPECTED TO GENERATE RS102.2
BILLION (US$2.1 BN) OF ECONOMIC ACTIVITY (TOTAL DEMAND). THE
INDUSTRY’S DIRECT IMPACT INCLUDES:

378,584
jobs representing 3.0% of total
Rs 39.3
(US$791.1 mn) of
bn

EMPLOYMENT. GROSS DOMESTIC PRODUCT

(GDP) equivalent to 3.7% of total GDP.

HOWEVER, SINCE TRAVEL & TOURISM TOUCHES ALL SECTORS OF THE

ECONOMY, ITS REAL IMPACT IS EVEN GREATER. KERALA’S TRAVEL &
TOURISM ECONOMY DIRECTLY AND INDIRECTLY ACCOUNTS FOR:

788,551
jobs representing 6.2% of total
Rs 81.8
(US$1.6 bn)
bn

EMPLOYMENT. of GROSS DOMESTIC PRODUCT

equivalent to 7.7% of total GDP.

Rs 41.0
(US$826.9 mn) of
bn Rs 18.1
(US$365.5 mn) of
bn

EXPORTS, SERVICES & MERCHANDISE CAPITAL INVESTMENT

or 16.6% of total Exports. or 7.8% of total Investment.

Rs 1.4
(US$27.6 mn) of
bn

GOVERNMENT EXPENDITURES
or a 1.0% share.

6
GROWTH
IN 2003,TRAVEL & TOURISM IN KERALA IS FORECAST TO SEE REAL GROWTH
OF:

12.2%
in total
13.0%
in TRAVEL & TOURISM INDUSTRY GDP,
TRAVEL & TOURISM DEMAND, to Rs39.3 bn (US$791.1 mn) for the industry directly
Rs102.2 bn (US$2.1 bn). and 11.6% to Rs 81.8 bn (US$1.6 bn)
for the Travel & Tourism Economy overall
(direct and indirect expenditures).

15.1%
in TRAVEL & TOURISM EMPLOYMENT
(direct impact only), to 378,584 jobs, and
13.8% to 788,551 jobs in the Travel & Tourism
Economy overall (direct and indirect).

OVER THE NEXT TEN YEARS, KERALA’S TRAVEL & TOURISM IS EXPECTED TO
ACHIEVE ANNUALIZED REAL GROWTH OF:

11.4% in total
TRAVEL & TOURISM DEMAND,
to Rs563.9 bn (US$7.5 bn) in 2013.
11.4%
in total TRAVEL & TOURISM GDP,
to Rs216.5 bn (US$2.9 bn) in 2013 for the
industry directly and 10.7% to Rs423.5 bn (US$5.6 bn)
for the Travel & Tourism Economy overall.

11.6%
in TRAVEL & TOURISM EMPLOYMENT,
13.8%
in VISITOR EXPORTS,
to 1,135,660 jobs directly in the industry, rising to Rs239.1 bn
and 10.9% to 2,221,370 jobs in the (US$3.2 bn) by 2013.
Travel & Tourism Economy overall in 2013.

8.3%
in terms of CAPITAL INVESTMENT,
5.6%
in terms of
increasing to Rs75.1bn GOVERNMENT EXPENDITURES
(US$1.0 bn) in 2013. to Rs4.4 bn (US$58.9 mn) in 2013.

7
SUMMARY OF
KEY TRENDS
■ Travel & Tourism is one of the largest industries in
Kerala today, contributing Rs39.3 billion (US$791.1
million), or 3.7 per cent, to the gross state product
(GSP). This is projected to rise to 5.2 per cent, or
Rs216.5 billion (US$2.9 billion) of GSP, by 2013.
■ Kerala’s international tourism receipts (excluding
transport payments) have risen rapidly over the past
decade. In 2000 – the latest year for which detailed
statistics are available – they totalled Rs5.3 billion
(US$117 million).
■ Visitor exports, meanwhile – receipts from foreign
and ex-Kerala Indian visitors, including transport
payments – have also shown extremely sharp annual
growth, and are expected to rise by more than 16 per
cent in 2003 to Rs35.2 billion (US$709.9 million).
■ In 2001, Kerala recorded 5.2 million domestic
tourist arrivals, up 3.8 per cent on the previous year, and
accounting for some 2 per cent of total domestic tourist
arrivals in India. Average annual growth in domestic
tourism has been more than 18 per cent over the past
decade.
■ International tourist arrivals totalled 209,000 in
2001 and are estimated to have grown by 11.4 per cent
in 2002 – reaching 233,000, or a record 9.8 per cent of
India’s international arrivals count. In the last ten years,
international arrivals in Kerala have risen by an average
11.8 per cent per annum
■ Capital investment by the government and private
sector in Kerala’s Travel & Tourism is expected to total
Rs18.1 billion (US$365.5 million) in 2003. Of this, a
very modest 2.5 per cent share is projected to come
from the state’s Annual Plan Allocation.
■ Tourist arrivals in Kerala peak during the month of
January and are at their lowest during May. The first
quarter of the year accounts for the highest share of
foreign arrivals – 31.3 per cent of the total annual count.
■ Although air transport accounts for only a modest
8.7 per cent share of total arrivals in Kerala – domestic
and international – it is by far the preferred mode of
transport for foreign tourists. The two major ports of
entry are Thiruvananthapuram and Cochin, but Cochin
is grossly under-utilized at present.
■ The opening of the new Konkan Railway –
connecting Kerala to Maharashtra via Karnataka and
Goa – will significantly boost tourism traffic to the
Kerala coast.
■ The state highways are yet to be full developed,
with the result that over 85 per cent of domestic
travellers choose to travel by rail or use secondary roads
to reach Kerala.
■ Kerala currently boasts 147 hotels that are officially
recognized by the Ministry of Tourism – up from 122
in 2000. The total number of rooms available is 5,365
(4,499 in 2000), of which more than 54 per cent are in
either the two- or three-star categories. The five-star
category includes 569 rooms, or a 10.6 per cent share –
down from 15 per cent in 2000.
■ Kerala’s coastal resorts of Cochin, Kovalam,
Thiruvananthapuram, Thekkady, Kozhikode and
Ernakulam account for more than 75 per cent of total
tourism traffic in Kerala.
■ Almost 600 kilometres of coastline include some
of the most attractive beaches in the country, such as
Kovalam, Varkala, Marari, Bekal and Kannur. Kerala’s
most popular backwater destinations are Kumarakom,
Alapuzha, Kollam, Kochi and Kozhikode, and its best-
known hill stations are Ponmudi, Munnar, Wynad and
Vagamon.
■ Kerala has a number of well-known wildlife
reserves, including the Periyar Wildlife Sanctuary,
Eravikulam National Park, Thattekkad Bird Sanctuary
and Parambikulam Wildlife Sanctuary. These parks
remain relatively under-developed as tourist attractions.
■ Health/wellness tourism has been one of the
strongest growth sectors over the past few years for
Kerala, which has attracted attention as the home of
Ayurvedic medicine – an ancient Indian science of
natural medicinal herbs used for curative and relaxation
purposes.
■ Kerala is extremely rich in terms of culture and
heritage – the tradition of classical and folk arts in the
state dates back over a thousand years. Koodiyattom,
one of the oldest art forms of Kerala – and the only
surviving form of the ancient Sanskrit drama – was
recently selected by UNESCO for proclamation as an
oral and intangible world heritage.
9
KERALA’S
TRAVEL & TOURISM
OVERVIEW OF RECENT TRENDS AND DEVELOPMENTS

EN. TAJIKISTAN

OCCUPIED BY PAKISTAN
AND CLAIMED
BY INDIA
JAMMU
GHANISTAN AND OCCUPIED BY CHINA
KASHMÌR AND CLAIMED

Kabul Srìnagar OCCUPIED BY INDIA

BY INDIA

AND CLAIMED
BY PAKISTAN
Kasaragod
Islamabad
HIMÀCHAL C H I N A
Lahore
PRADESH
Amritsar
Hosdrug KERALA
Qandahàr Faisalabad Shimla
Cannanore
PUNJAB Chandìgarh
Quetta Lhasa Tellicherry
HARYÀNA Mahe
Rohtak Delhi ARUNACHAL Badagara
New-Dehli UTTAR
NEPAL PRADESH
Sukkur PRADESH Kathmandu SIKKIM Thimphu Itànagar
Gangtok BHUTAN Calicut
Lucknow Kozhikode
KISTAN Jaipur ASSAM Dispur NÀGÀ-
LAND
RÀJASTHÀN Kànpur Patna MEGHÀLAYA
Kohima
Shillong
Imphàl
àchi BIHÀR BANGLADESH MANIPUR Shoranur Palghat
Agartala Àìzawl
Ponnani Chittur
Bhopàl MADHYA
GUJARÀT Gàndhìnagar WEST
Dhaka
TRIPURA Kunnamkulam
Ahmadàbàd Indore PRADESH BENGAL MIZORAM Trichur
Mandalay
Calcutta Irinjalakuda
Jamnagar Chittagong Valparai
ORISSA
Nàgpur
MAHÀRÀSHTRA
Cuttack MYANMAR Alwaye
Bhubaneswar

Bombay
Bay of
Chiang Cochin Ernakulam
Mattancheri
Hyderàbàd
Bengal Kochi
ANDHRA PONDICHERRY Kottayam
Yanam Rangoun Alleppey
PRADESH Changanacheri
Panaji
GOA
Mavelikara
Indian KARNÀTAKA Indian Punalur
Madras Quilon
Ocean Bangalore Ocean Andaman Islands Kollam
ANDAMAN

PONDICHERRY Attingal
Kavaratti Pondichery Port Blair
TAMIL PONDICHERRY
LAKSHADWEEP NÀDU
KERALA Kariakal
Trivandrum
Jaffna Neyyattinkara
&

Nicobar Islands
Trivandrum
NIC

SRI LANKA
O

Colombo B
MALDIVES

‘GOD’S OWN COUNTRY’ medicinal herbs used for curative and relaxation purposes.The region is
Sandwiched between the Western Ghats and the Arabian Sea, the Indian also recognized for having developed a new form of physical yoga as a
state of Kerala is blessed with unmatched natural diversity that provides means of rejuvenating mind and body.
immense scope for tourism. Within its 38,863 square kilometres, this The extensive backwaters and lagoons are very popular attractions.
virtual paradise boasts a wide range of tourist attractions – from serene These offer the tourist a chance to escape from the mainland and
beaches and tropical islands to coastal lagoons and quiet backwaters, disappear into the wilderness on a houseboat, or to stay at a remote
mist-clad hills stations, wildlife sanctuaries, unspoilt wilderness areas, hotel or resort far away from life’s daily realities.
lush evergreen forests and a rich cultural heritage with unique art forms.
In addition, a moderate climate, a level of literacy far above the rest
of India, and a long history of community harmony, make this region a RECENT TOURISM PERFORMANCE
unique tourism destination, positioned by the Keralites themselves as One of the world’s fastest-growing tourism regions
‘God’s own country’. In the ten years to 2001, domestic tourist arrivals in Kerala increased by
In recent years Kerala has become known as the perfect haven for an average annual rate of more than 18 per cent, while arrivals from
the traveller in search of improved health/wellness and, notably, a deeply abroad rose by 12 per cent per annum.These growth rates are well above
relaxing and regenerating experience. This is thanks to the growing the world averages and corroborate the findings of the WTTC and
popularity of Ayurvedic medicine – an ancient Indian science of natural Oxford Economic Forecasting (OEF) research.

11
 has been the development and refinement of its Ayurveda tourism
Domestic tourist arrivals in Kerala, 1991-2001
product.The growing demand for health/wellness holidays – whether to
Year Arrivals ('000) % annual change test the Ayurvedic medicine’s claims to rejuvenate mind and body, or

1991 949 9.5

simply for regeneration and relaxation – has come from both Western and
1992 994 4.8 Asian markets. Europe is an important source of tourism for India –
1993 1,027 3.3 accounting for 35 per cent of arrivals as against 40 per cent from within
1994 1,284 25.0 Asia and 17 per cent from the Americas –and Kerala has certainly
1995 3,916 204.9 benefited from India’s reputation as a fascinating tourism destination, rich
1996 4,403 12.5
in natural and cultural attractions.
1997 4,953 12.5
But Kerala’s appeal for foreign tourists is also due to its own unique
1998 4,482 -9.5
attractions, such as its magnificent beaches and its quiet backwaters,
1999 4,888 9.1
2000 5,011 2.5 offering opportunities for houseboat cruising. Today, some houseboats
2001 5,200 3.8 have all the creature comforts of a good hotel.

Source: Kerala Tourism Development Corporation (KTDC)

Tourism generates fairly low yields
Nevertheless, despite the enormous and rapid growth in tourism, a non-
During the 1990s, Kerala only recorded one year of decline in negligible share of Kerala’s foreign tourists is fairly low yield. The
domestic arrivals, in 1998. But growth picked up again sharply the average spend per tourist per trip is around US$550.
following year. Most domestic visitors travel to Kerala by rail or road; International tourism receipts totalled Rs5.3 billion (US$117
air transport accounts for less than 7 per cent of arrivals. And a million) in 2000 – the last year for which details are available – nearly
significant share of visitors are non-resident Keralites, visiting friends 19 times higher than in 1991, nine years earlier.
and/or relations.
Kerala's international tourism receiptsa, 1991-2000
A rising share of India’s foreign tourist count
6,000 120
In the ten years from 1991 to 2001, during which time India’s ●
international tourist arrivals doubled, Kerala’s more than tripled, with 5,000 100
the result that the southern Indian state’s share of the country’s total
4,000 ● 80
arrivals increased from 5.6 per cent to 8.1 per cent. More significantly,
preliminary results for 2002 suggest that, while India’s arrivals declined
3,000 60
by 6.6 per cent – the second consecutive year of decline – Kerala’s rose
by 11.4 per cent, taking its share to as much as 9.8 per cent of India’s 2,000 ● ● 40
●
total count. ● ●
1,000 20
A major contributor to Kerala’s tourism growth in the last few years ●
●
0 0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Receipts (Rs mnb) ● % annual change
Foreign tourist arrivals in Kerala and India, 1991-2002
a Receipts excluding transport payments
b Rs47.40 = US$1 as at May 1, 2003
India's Kerala's Kerala's
arrivals arrivals % annual share Source: KTDC
Year ('000) ('000) change (%)
1991 1,236 69 na 5.6
1992 1,435 92 32.2 6.3 FUTURE TOURISM DEVELOPMENT
1993 1,443 95 3.9 6.6
Government’s increasingly important contribution
1994 1,886 105 9.8 5.5
Kerala was a late starter in tourism. In 1950 the Department of Tourism
1995 2,124 143 36.7 6.7
was created, but it only functioned as a State Hospitality Department
1996 2,288 177 23.7 7.7
1997 2,374 182 3.2 7.7 catering to important visitors and State guests.The real Department of
1998 2,358 190 4.1 8.1 Tourism was not founded until 1960 and, even then, its initial role was
1999 2,482 202 6.4 8.2 confined to managing state-owned guesthouses and providing
2000 2,677 210 3.8 7.8 hospitality for important visitors. The state government did not
2001 2,537 209 -0.4 8.2 recognize tourism as an industry until the mid-1990s.
2002a 2,370 233 11.4 9.8
The first major step for tourism development in Kerala was taken
a Preliminary estimates
with the launch of the Kerala Tourism Policy in 1995. To quote the
Source: KTDC;World Tourism Organization; Pacific Asia Travel Association
policy itself:

12
 “The main aim … is to serve as a guiding force to make maximum Ministry of Tourism – with a total of 5,365 rooms. Many of these have
use of Kerala’s tourism potential and also to make it an ideal been developed with state money, but they are managed/operated by
instrument for social and economic growth.” the national/international groups. India’s Department of Tourism acts as
The policy was aimed at realizing Kerala’s tourism potential by a coordinator, establishing broad collaborative agreements with groups
enhancing investment from the government and the private sector, like Taj and Oberoi through Tourist Resorts (Kerala) Ltd, a subsidiary
improving the tourism product and harnessing human resources more of the KTDC.
efficiently. An additional goal was to measure the influx of foreign and
domestic tourists.The 1995 Tourism Policy remains the basis for much
Kerala’s classified hotel and room capacity, 2000
of the state’s progress over the last eight years, whether in terms of
infrastructure and product development or tourism performance.
Category No. of hotels No. of rooms
New beaches and backwater resorts have been opened up by the
Kerala Tourism Development Corporation (KTDC), which also 5-star deluxe 1 93
5-star 6 584
operates budget hotels, restaurants and cafés, as well as managing central
4-star 9 465
reservation systems and conducting tours. Other projects undertaken by
3-star 39 1,602
the KTDC include the development of Ayurveda as a unique selling 2-star 36 940
point and the development and promotion of nature-based and heritage 1-star 24 703
tourism. Heritage resorts 7 112
In line with the 1995 Kerala Tourism Policy, the government is also Total 122 4,499
taking measures to create an investment-friendly atmosphere and to Source: KTDC
generate confidence among non-resident Indians (NRIs) and other
prospective investors.A Tourism Investment Agency is planned, and this The latest year for which a detailed breakdown of hotel
will act as a bridge between the investors and other institutions by accommodation supply is available is 2000. As shown in the following
facilitating the procurement of land, electricity, communications and table, most development has been in the one- to three-star categories.
other infrastructure facilities. In 2000, 677 rooms (15 per cent of total supply) were in the five-star
Other necessary measures identified in the policy – either and five-star-deluxe categories; this share has since dropped to 569
underway or in planning – include the setting up of a Heritage Home rooms, or less than 11 per cent.
Protection Scheme to provide incentives for residents of Kerala to Tour operators have also played a key role in the development of
convert their traditional homes into tourist accommodation. In tourism to Kerala by creating unique and innovative tour options. Most
addition to the tourist circuits recognized by the Government of India, of the leading tour operators in India – such as Thomas Cook, SITA
places seen as having particular tourism potential will be identified as and TCI – feature Kerala prominently in their national and
tourism attractions. Special incentives and subsidies will be given to international holiday brochures. A number of home-bred tour
entrepreneurs investing in these areas. operators, like Kerala Travels, Great India Tour Company and Pioneer
The policy also highlights the need for a special Backwater Travels, which have exhaustive knowledge of the state, have also
Tourism Plan, the training of specialized tour operators and other established themselves as niche players in Kerala’s Travel & Tourism
human resource development, a proper marketing campaign, the industry.
promotion of special fairs and festivals to attract tourists, and the A joint Task Force, focusing on private-public sector partnership,
education of local communities to raise awareness of tourism’s has been constituted with major industry players and other stakeholders
importance and potential. as members to act as advisors to the state government with regard to
tourism development activities. Keralite NRIs, who have also identified
tourism as a high growth sector for investment, are also involved.
The critical role of the private sector
While government’s role has changed over the years, becoming more
that of a catalyst, or a facilitator for the growth of the industry,Travel &
Tourism is basically a private sector activity. The industry’s spectacular
performance over the past decade has largely been driven by private
sector investment and involvement, which have helped to spread
“The main aim … is to make maximum use of
tourism to hitherto virgin areas in the state such as Marari, Vythiri, Kerala’s tourism potential and also to make it
Kalpetta, Mananthavady and Poovar. an ideal instrument for social and economic
Major national and international hotel chains – including Taj,
growth.”
Oberoi, Le Méridien, Best Western, Golden Tulip, Casino and Mahindra
– have already established hotels and resorts in the state. Kerala currently
has 147 classified hotels – ie hotels that are officially recognized by the

13
TSA CONCEPTS
& STRUCTURE
Year 2003 (US$ mn, ’000 Jobs)

Personal Travel Business Travel Government Visitor Government Capital Exports

& Tourism Expenditures Exports Expenditures Investment (Non-Visitor)
(Individual) (Collective)

757.6 81.9 8.4 709.9 19.2 365.5 117.1

Travel & Tourism Consumption

1,557.8

Travel & Tourism Demand

2,059.5

Travel & Tourism Industry Supply Travel & Tourism Economy Supply (Residual)

1,557.8 501.8

Travel & Tourism Industry GDP Imports

(Direct Only) 357.3
Travel & Tourism Economy Supply
T&T Industry GDP (Indirect)
409.3
791.1 2,059.5

Comp. Indirect Operating Depreciation Travel & Tourism Economy GDP Imports
Surplus - (Direct and Indirect)
Taxes
Subsidies

1,647.8 411.7

T&T Property Property

T&T Industry Economy Taxes Taxes
Employment Employment

788.6
378.6

Personal Indirect Corporate

Income Taxes Taxes Taxes

Travel & Tourism Taxes

14
Travel & Tourism Satellite Accounting research for Kerala reflects a
comprehensive simulation of the new international standard
adopted by the United Nations following the Enzo Paci World
Conference on the Economic Impact of Tourism (Nice, France,
June 1999), ten years of model development and TSA experience by
WTTC and Oxford Economic Forecasting (OEF), and application of
OEF’s latest macro-economic forecasts.
TSA Economic Concepts
The Travel & Tourism Satellite Account is based on a ‘demand-side’
concept of economic activity, because the industry does not produce or
supply a homogeneous product or service like traditional industries
(agriculture, electronics, steel, etc). Instead, Travel & Tourism is an
industrial activity defined by the diverse collection of products (durables
and non-durables) and services (transportation, accommodations, food and
beverage, entertainment, government services, etc) that are delivered to
visitors.There are two basic aggregates of demand in the TSA:
I Travel & Tourism Consumption represents the value of
products and services that have been consumed by visitors. It is the
basic demand-side aggregate used to construct an explicitly defined
production-side ‘industry’ equivalent for comparison with all other
industries.Travel & Tourism Consumption includes:
• Personal Travel & Tourism, more formally known as consumer
expenditures, which captures spending by Kerala residents on
traditional Travel & Tourism services (lodging, transportation,
entertainment, meals, financial services, etc) and goods (durable
and nondurable) used for Travel & Tourism activities.
• Business Travel by government and industry, which mirrors
Personal Travel & Tourism’s spending on goods and services
(transportation, accommodation, meals, entertainment, etc), but
represents intermediate inputs used in the course of business or
government work.
• Government Expenditures (Individual) by agencies and
departments which provide visitor services such as cultural (art
museums), recreational (national park) or clearance (immigration/
customs) to individual visitors.
• Visitor Exports, which include spending by international and
ex-Kerala domestic visitors goods and services.
II Travel & Tourism Demand builds on Travel & Tourism
consumption to include Travel & Tourism products and services
associated with residual components of final demand. It is used to
construct a broader ‘economy-wide’ impact of Travel & Tourism.
The residual elements of Travel & Tourism demand are:
• Government Expenditures (Collective) made by agencies
and departments associated with Travel & Tourism, but generally
made on behalf of the community at large, such as tourism
promotion, aviation administration, security services and resort
area sanitation services.
• Capital Investment by Travel & Tourism providers (the private
sector) and government agencies (the public sector) to provide
facilities, equipment and infrastructure to visitors.
• Exports (Non-Visitor) which include consumer goods sent
out of Kerala for ultimate sale to visitors (such as clothing,
electronics or petrol) or capital goods sent out of Kerala for use by
industry service providers (such as aircraft or cruise ships).
By employing input/output modelling separately to these two
aggregates (Travel & Tourism Consumption and Travel & Tourism
Demand), the Satellite Account is able to produce two different and
complementary aggregates of Travel & Tourism Supply: the Travel &
Tourism Industry and the Travel & Tourism Economy.The former
captures the explicitly defined production-side ‘industry’ equivalent,
direct impact only, for comparison with all other industries, while the
latter captures the broader ‘economy-wide’ impact, direct and indirect, of
Travel & Tourism.Through this process, the Satellite Account is also able
to determine that portion of supply, which it Imports.
Next, the satellite account breaks down both aggregates of supply
(Industry and Economy) into the direct and indirect impacts of Gross
State Product (GSP), the main descriptor of economic production, as
well as the various components of GSP (Wages & Salaries,
Indirect/Transaction Taxes, Operating Surplus, Depreciation
and Subsidies). Beyond the regular TSA accounts, a separate analysis is
also provided of Personal Income Taxes paid by Travel & Tourism
generated employment and Corporate and Property Taxes paid by
Travel & Tourism companies.
Finally, one of the most important elements of the Travel & Tourism
Satellite Account are the Employment results, which can now be
quantified for the basic Travel & Tourism Industry and the broader Travel
& Tourism Economy.
• T&T Industry Employment generally includes those jobs with
face-to-face contact with visitors (airlines, hotels, car rental,
restaurant, retail, entertainment, etc).
• T&T Economy Employment includes T&T Industry
Employment plus those faceless jobs associated with:
• Industry suppliers (airline caterers, laundry services, food
suppliers, wholesalers, accounting firms, etc).
• Government agencies, manufacturing and construction of capital
goods and exported goods used in Travel & Tourism.
• Supplied commodities (steel producers, lumber, oil production,
etc).
15
TRAVEL & TOURISM’S
ECONOMIC IMPACT
TRAVEL & TOURISM – ENCOMPASSING TRANSPORT,ACCOMMODATION,
CATERING, RECREATION AND SERVICES FOR VISITORS – IS ONE OF
KERALA’S HIGHEST PRIORITY INDUSTRIES AND EMPLOYERS.
Worldwide in 2003, it is expected to post US$4.5 trillion of economic
activity (Total Demand) and this is forecast to grow to US$8.9 trillion
by 2013.
Travel & Tourism Total Demand in India is expected to total Rs1,519.7
billion (US$30.1 billion) in 2003, growing to Rs6,736.3 billion
(US$88.8 billion) in 2013.
In Kerala, in 2003,Travel & Tourism is expected to post Rs102.2 billion
(US$2.1 billion) of economic activity (Total Demand), growing to
Rs563.9 billion (US$7.5 billion) by 2013.
In 2003, the Travel & Tourism Industry should contribute 3.7 per cent
to worldwide GDP. The broader Travel & Tourism Economy should
contribute 10.2 per cent to world GDP in 2003.
In India, the Travel & Tourism Industry is expected to post a GDP
contribution of 2.0 per cent in 2003, while the Travel & Tourism
Economy contribution will be 4.8 per cent.
In Kerala, the Travel & Tourism Industry is expected to contribute 3.7
per cent to GSP in 2003 (Rs39.3 billion, or US$791.1 million), rising to
Rs216.5 billion, or US$2.9 billion (5.2 per cent of total GSP), by 2013.
The Travel & Tourism Economy contribution should grow from 7.7 per
cent (Rs81.8 billion, or US$1.6 billion) to 10.2 per cent (Rs423.5
billion, or US$5.7 billion) over the same period.
Travel & Tourism is a high-growth activity, which is forecast to increase
its total economic activity by 4.6 per cent per annum worldwide in real
terms over the next ten years.
In India, Travel & Tourism is expected to post average annualized gains
of 8.8 per cent between 2004 and 2013.
For Kerala,Travel & Tourism economic activity is expected to grow by
11.4 per cent per annum in real terms between 2004 and 2013.
Travel & Tourism is human resource intensive, creating quality jobs
across the full employment spectrum. In 2003, one in 13.2 jobs is
generated by the Travel & Tourism Economy. The Travel & Tourism
Industry accounts for 2.6 per cent of global employment.Today there are
67.4 million Travel & Tourism Industry jobs and 194.6 million jobs in
the Travel & Tourism Economy, and these will rise to 83.9 million Travel
& Tourism Industry jobs and 247.2 million Travel & Tourism Economy
jobs by 2013.
India’s Travel & Travel Industry is expected to generate 11.1 million jobs
in 2003 (2.7 per cent of total employment), while the broader Travel &
Tourism Economy will account for 23.8 million jobs (5.8 per cent of
total employment).
16
In Kerala, in 2003,Travel & Tourism Economy employment is estimated
at 788,600 jobs, or 6.2 per cent of total employment. By 2013, this
should grow to more than 2.2 million jobs – 15.0 per cent of total
employment.The 378,600 Travel & Tourism Industry jobs will account
for 3.0 per cent of total employment in 2003 and are forecast to rise to
1.1 million jobs, or 7.7 per cent of the total, by 2013.
Travel & Tourism is a major exporter, with inbound visitors injecting
foreign exchange directly into the economy.
Travel & Tourism exports in India are expected to represent 5.9 per cent
of total exports in 2003, declining to 5.7 per cent in 2013.
In Kerala, exports are a fundamental component of Travel & Tourism’s
contribution to GSP. Of Kerala’s total exports – including foreign and
ex-Kerala Indian visitor exports, services and merchandise – Travel &
Tourism is expected to generate 16.7 per cent (Rs41.0 billion, or
US$827.0 million) in 2003, increasing to Rs269.7 billion, or US$3.6
billion (22.4 per cent of total exports), by 2013.
Travel & Tourism is a catalyst for construction and manufacturing. In
2003, the private and public sectors combined are expected to spend
US$686.0 billion in new Travel & Tourism capital investment worldwide
– 9.6 per cent of total investment – rising to US$1.3 trillion, or 10.1 per
cent of the total, in 2013.
India’s Travel & Tourism Capital Investment is expected to total Rs412.9
billion, or US$8.2 billion, in 2003 – 7.0 per cent of total capital
investment.
Year 2003 capital investment in Kerala’s Travel & Tourism Economy is
estimated at Rs18.1 billion (US$365.5 million), or 7.8 per cent of total
investment. By 2013, this should reach Rs75.1 billion (US$1.0 billion),
or 8.3 per cent of total capital investment.
Travel & Tourism is both a generator and receiver of government funds.
Globally, in 2003, Travel & Tourism is expected to generate US$843.6
billion of taxes – 11.7 per cent of total taxation – while channelling
US$224.1 billion of government expenditures, or 3.9 per cent of total
expenditures. By 2013, taxes should increase to US$1.5 trillion – 12.4
per cent of the total – and government spending on Travel & Tourism to
US$378.2 billion – 4.1 per cent of total government expenditure.
In Kerala, government Travel & Tourism operating expenditures in 2003
are expected to total to Rs1.4 billion (US$27.6 million), or 1.0 per cent
of total government spending. In 2013, this spending is forecast to rise
to Rs4.4 billion (US$58.8 million), or 1.1 per cent of total government
spending.
 KERALA ESTIMATES AND FORECASTS
2003 2013
Rs bn % of Total Growtha Rs bn % of Total Growthb
Personal Travel & Tourism 37.6 5.4 10.9 195.7 7.2 10.8
Business Travel 4.1 --- 17.4 19.1 --- 9.7
Government Expenditures 1.4 1.0 4.8 4.4 1.1 5.6
Capital Investment 18.1 7.8 7.7 75.1 8.3 8.3
Visitor Exports 35.2 14.3 16.0 239.1 19.9 13.8
Other Exports 5.8 2.4 10.8 30.6 2.5 10.9
Travel & Tourism Demand 102.2 --- 12.2 563.9 --- 11.4
T&T Industry GDP 39.3 3.7 13.0 216.5 5.2 11.4
T&T Economy GDP 81.8 7.7 11.6 423.5 10.2 10.7
T&T Industry Employmentc 378.6 3.0 15.1 1,135.7 7.7 11.6
T&T Economy Employmentc 788.6 6.2 13.8 2,221.4 15.0 10.9

a2003 Real Growth Adjusted for Inflation (%); b2004-2013 – Annualized Real Growth Adjusted for Inflation (%); cEmployment in '000 Jobs

INDIA ESTIMATES AND FORECASTS

2003 2013
Rs bn % of Total Growtha Rs bn % of Total Growthb
Personal Travel & Tourism 748.3 4.5 7.9 3,286.1 5.4 8.7
Business Travel 91.5 --- 0.7 465.4 --- 10.4
Government Expenditures 32.5 1.0 3.8 101.8 1.0 5.1
Capital Investment 412.9 7.0 6.8 1,616.7 7.4 7.5
Visitor Exports 156.1 3.9 8.2 802.4 3.6 10.5
Other Exports 78.4 2.0 15.6 463.9 2.1 12.0
Travel & Tourism Demand 1,519.7 --- 7.4 6,736.3 --- 8.8
T&T Industry GDP 529.4 2.0 6.1 2,153.4 2.2 7.9
T&T Economy GDP 1,274.6 4.8 6.5 5,180.2 5.3 7.9
T&T Industry Employmentc 11,093.1 2.7 1.0 12,659.9 2.7 1.3
T&T Economy Employmentc 23,839.8 5.8 1.3 27,684.9 6.0 1.5

a2003 Real Growth Adjusted for Inflation (%); b2004-2013 – Annualized Real Growth Adjusted for Inflation (%); cEmployment in '000 Jobs

WORLD ESTIMATES AND FORECASTS

2003 2013
US$ mn % of Total Growtha US$ mn % of Total Growthb
Personal Travel & Tourism 2,135,860 9.9 2.2 3,862,270 10.8 3.7
Business Travel 488,765 --- 0.6 871,716 --- 3.7
Government Expenditures 224,058 3.9 2.8 378,172 4.1 3.0
Capital Investment 685,957 9.6 2.8 1,308,620 10.1 4.3
Visitor Exports 530,912 5.9 3.0 1,332,080 6.0 7.1
Other Exports 478,952 5.3 8.9 1,186,990 5.4 7.2
Travel & Tourism Demand 4,544,240 --- 2.9 8,939,730 --- 4.6
T&T Industry GDP 1,280,350 3.7 1.1 2,279,200 3.8 3.6
T&T Economy GDP 3,526,850 10.2 2.0 6,461,360 10.8 3.9
T&T Industry Employmentc 67,441.1 2.6 0.1 83,893.6 2.8 2.2
T&T Economy Employmentc 194,562.0 7.6 1.5 247,205.0 8.4 2.4

a2003 Real Growth Adjusted for Inflation (%); b2004-2013 – Annualized Real Growth Adjusted for Inflation (%); cEmployment in '000 Jobs

17
TSA HIGHLIGHTS

KERALA KERALA
Travel & Tourism Total Demand Travel & Tourism Total Demand
(2003 Est Rs bn) (Cumulative Real Growth, %)
TOTAL DEMAND
Personal Travel & Tourism (37.6)
Travel & Tourism in Kerala is expected to total Other Exports (5.8)
300
Rs102.2 billion of Total Demand in 2003, growing
12.2 per cent over 2002 levels, and is expected to 250

grow a further 11.4 per cent per annum over the 200

next decade. 150

The largest portion of Kerala Travel & Tourism
100
Demand is personal consumption by residents at
Rs37.6 billion followed by international and ex- Visitor Exports (35.2)
50

Kerala Visitor Exports of Rs35.2 billion. Capital Investment (18.1) 0

Government Expenditures (1.4)
1990 1995 2000 2005 2010
Business Travel (4.1)

KERALA KERALA
Travel & Tourism Employment Travel & Tourism Economy Employment
EMPLOYMENT ('000 Jobs) (Cumulative Real Growth, %)

The Travel & Tourism Industry in Kerala is 1,000 Economy Industry

expected to yield directly 378,600 jobs in 2003, or 300

3.0 per cent of total employment. A total of 800
250
788,600 jobs (direct and indirect), or 6.2 per cent
600 200
of total employment are expected to be generated
across the broader spectrum of the Travel & 150
400
Tourism Economy. 100
Over the next ten years, Kerala’s Travel & 200
50
Tourism Industry is expected to create 757,100
0
jobs while the broader Travel & Tourism Economy 0
1999 2000 2001 2002 2003 2004 1990 1995 2000 2005 2010
is expected to create 1.4 million new jobs.

KERALA KERALA
Travel & Tourism GSP Travel & Tourism Economy GSP
(1990 Constant US$ mn) (Cumulative Real Growth, %)
GSP 2,000 Economy Industry

The Travel & Tourism Industry in Kerala is 300

expected to produce directly Rs39.3 billion, or 3.7 1,500 250
per cent, of total gross state product (GSP) in 2003.
200
The broader Kerala Travel & Tourism Economy
1,000
(direct and indirect) is expected to produce Rs81.8 150

billion, or 7.7 per cent of total GSP. 100

500
The long-term expectations for Travel &
50
Tourism GSP are exceedingly positive - exceeding
0 0
10.7 per cent annualized real growth.
1999 2000 2001 2002 2003 2004 1990 1995 2000 2005 2010

18
 KERALA KERALA
Travel & Tourism Capital Investment Travel & Tourism Capital Investment
(1990 Constant US$ mn) (Cumulative Real Growth, %)

450 CAPITAL INVESTMENT

300
In 2003, Travel & Tourism Capital Investment in
400 250
Kerala is expected to reach Rs18.1 billion or 7.8
200 per cent of total investment. By 2013, this figure is
350
150
expected to grow to Rs75.1 billion or 8.3 per cent
of total capital investment, representing ten years of
100
300 8.3 per cent annualized growth.
50

250 0
1999 2000 2001 2002 2003 2004 1990 1995 2000 2005 2010

KERALA KERALA
Personal & Business Travel & Tourism Personal Travel & Tourism
(1990 Constant US$ mn) (Cumulative Real Growth, %)
PERSONAL & BUSINESS
1,250 Business Personal In 2003, Kerala is expected to generate Rs37.6
300 billion of Personal Travel & Tourism consumption
1,000
250
by residents, or 5.4 per cent of total personal
consumption. In Kerala, business travel in 2003 is
750 200
expected to total Rs4.1 billion.
150
500 Over the next decade (2004-2013), Personal
100 Travel & Tourism in Kerala is expected to grow at
250
50
an annual rate of 10.8 per cent, while Business/
Government Travel is forecast to grow at a slightly
0 0
1990 1995 2000 2005 2010
lower annual rate of 9.7 per cent.
1999 2000 2001 2002 2003 2004

KERALA KERALA
Travel & Tourism Exports Travel & Tourism Exports
(1990 Constant US$ mn) (Cumulative Real Growth, %)
EXPORTS
1,250 Other Visitor
Travel & Tourism Exports to international and ex-
300 Kerala visitors play a fundamental role in Kerala’s
1,000
250 Travel & Tourism business.
750 200
In 2003, Travel & Tourism services and
merchandise exports for Kerala are expected to
150
500 total Rs41.0 billion or 16.7 per cent of total
100 exports for the state.
250
50 Over the next decade, Visitor Exports are
0 0
expected to grow at an annual rate of 13.8 per cent,
1999 2000 2001 2002 2003 2004 1990 1995 2000 2005 2010 one of the highest rates in the world.

KERALA KERALA
Travel & Tourism Gov’t Expenditures Travel & Tourism Gov’t Expenditures
(1990 Constant US$ mn) (Cumulative Real Growth, %)

35 GOVERNMENT
300
In 2003, national, state and local government
250 agencies in Kerala are expected to spend Rs1.4
30
200 billion of current operating funds for Travel &
Tourism. This represents 1.0 per cent of total
150

25
government expenditures, which are allocated to
100
providing individual and collective government
50 Travel & Tourism services to visitors, travel
20 0
companies and the community at large.
1999 2000 2001 2002 2003 2004 1990 1995 2000 2005 2010

19
THE POLICY
FRAMEWORK
POLICY RECOMMENDATIONS
The development of the 1995 Kerala Tourism Policy is a clear indication that the
government of Kerala recognizes the contribution that Travel & Tourism can make to the
state’s economy, both in terms of wealth creation and employment generation.The steps
that have already been taken to harness the region’s tourism potential are a further
reflection of the government’s commitment to the industry.
Nevertheless, despite the growing recognition of Travel & Tourism’s
importance, there seems to be a lack of appreciation of the full scope of
the industry and its potential as a catalyst for the development of other
areas of economic activity, such as agriculture, manufacturing or
financial services. Moreover, the full significance of Travel & Tourism as
an instrument of social transformation is still not yet fully understood.
This lack of appreciation of Travel & Tourism’s potential means that
government policies could be drawn up without sufficient attention to
their impact on the industry. Government expenditures allocated to
providing individual and collective government Travel & Tourism
services to visitors, travel companies and the community at large are very
low, and there are inadequate incentives to encourage capital investment
by the private sector. Despite the bullish forecasts, neglect of this kind
could endanger the long-term success of Kerala’s Travel & Tourism.
The government is the primary owner of Kerala’s tourism product
and should therefore lead the way by encouraging continued investment,
building infrastructure and streamlining and coordinating tourism-
related policies and activities. However, the private sector also has a
critical role to play and needs to be proactive in developing quality
products and services geared to international and domestic demand.The
private sector should therefore continue to develop quality hotels, travel
agencies and transport services, while the government needs to relinquish
responsibility for areas that are best managed by private enterprise.
Against this background WTTC recommends that the Kerala
Government:
PLAN FOR THE FUTURE
Long-term tourism planning
In line with the strategy outlined in the 1995 Kerala Tourism Policy,
long-term development plans should be drawn up in consultation with
the municipal authorities and the private sector to ensure sustainable
tourism development, including optimal land-use planning. The plans
should be drawn up in accordance with the state’s Tourism Vision,
namely:
“To make Kerala, God’s Own Country, an upmarket, high-quality tourism
destination through the rational utilization of resources with a focus on the
integrated development of infrastructure, conserving and preserving the heritage
and environment and enhancing productivity, income, creating employment
opportunities, alleviating poverty, thereby making tourism the most important
sector for the socio-economic development and environmental protection of the
State.”
Establish Development Authorities for selected
destinations
Kerala has some of the finest beaches in India. However, unplanned
construction, over-population and overcrowding can considerably
diminish their appeal. One example is Kovalam beach which, due to its
proximity to Thiruvananthapuram, was one of the first tourist attractions
in the state. Kerala should ensure that newly developed beaches do not
suffer the same fate.
The 1995 Kerala Tourism Policy spoke of the constitution of
‘development agencies’ to ensure the integrated development of tourism
destinations. WTTC also notes that Bekal beach was identified as a
‘special tourism area’ by the Government of India and a ‘development
authority’ was recommended for its planned expansion.
WTTC recommends that the Government of Kerala constitute
independent development agencies for each identified tourism
destination. These agencies should draw up integrated Master Plans for
their respective areas, using the services of world-class area planners,
architects and landscape artists.The development agencies would also be
responsible for the creation of the essential infrastructure such as
highways, interconnecting roads, power, water and sewage systems,
airports, railway stations and basic municipal services. Land should be
allotted to private developers of hotels, restaurants, motels, shopping and
commercial facilities, sports and entertainment, business and support
services.
The Development Authorities should involve the best
administrators in the state, and private sector investors should nominate
powerful representatives to sit on the working boards. The agencies
could raise funds from government and financial institutions, which
could be repaid through the sale of the developed land to investors.
21
Encourage greater market and product
diversification
Kerala’s greatest tourism assets include its beaches, its inland water
systems and its nature/wildlife reserves. In order to tap the full potential
of the beaches and backwaters for tourism, it is essential to have luxury
boats, cruise boats, houseboats and yachts. These will help Kerala attract
high-yield foreign and domestic visitors.WTTC has noticed that utility
vessels geared for local transport are frequently used to transport tourists
within the backwaters and along the coast.These modes of transport are
not appealing to the affluent tourist.
It is recommended that a concerted policy be adopted to permit
private entrepreneurs to import luxury sailing vessels from the Middle
East, Singapore and elsewhere. Financial assistance from institutions
should be encouraged and the central/state governments’ import taxes
should be significantly reduced to facilitate the process.
Market and product diversification should be a high priority for the
Kerala Government since it will enhance the destination’s
competitiveness and improve added value and yield.The state already has
a number of different tourism products that have proved popular with
domestic and foreign visitors. As a start, these can be expanded and
improved.The following provide some examples.

Coastal cruises
Luxury cruise boats would ensure the development of coastal travel,
eventually linking Kerala’s beaches and inland water destinations to the
Lakshadweep and Maldives islands, as well as to Sri Lanka and other parts
of Southeast Asia. The development of marinas would, in turn, attract
upmarket travellers visiting the region on their private yachts.

Luxury houseboats
Kerala has introduced the system of houseboats to harness the potential
of its backwaters. Unfortunately, quality houseboats are few and far
between.WTTC is aware that India’s finest houseboats, of every category,
are to be found on the Dal Lake in Kashmir. But, because of the poltical
problems in Kashmir, many of the houseboat builders and owners are out
of work, which causes enormous distress.
WTTC would therefore strongly recommend that the Government
of Kerala invite the houseboat builders/owners in Kashmir to create
similar houseboats and facilities in the backwaters of Kerala. In this way
two separate problems – affecting tourism in different parts of the
country – could be successfully addressed.

Water sports
WTTC has noted that facilities for water sports are relatively undeveloped
in Kerala. In order for the state to attract high-yield tourists to its beaches
and backwaters, private investment in water sports facilities should be
increased. What is needed is the full complement of facilities for every
type of water sports – water-skiing, water scooters, para-sailing, airborne
sailing, marine fishing and scuba diving.These sporting facilities should be
listed as priority areas for investment by foreigners and Keralites alike.

22
Ayurveda
Ayurveda – including massages and the use of medicinal herbs for
relaxation and rejuvenation purposes – has already become a major
attraction for tourists. The Kerala Government should ensure that all
centres practising Ayurveda are authorized by the Department of
Tourism and Health to function as such centres. More health/wellness
holidays could be packaged around Ayurvedic treatment and special
courses could be introduced to educate tourists about Ayurveda.
Kerala’s cuisine
Kerala boasts of some of the best seafood anywhere in the world – the
Malabar prawn, for example, is a quality name signifying the wealth of
the state’s seafood attraction. Unfortunately, most of the good quality
seafood is exported and not available to tourists in Kerala. It is
recommended that special catering and culinary institutes be created to
develop Kerala’s cuisine. Steps should also be taken to ensure there is
sufficient seafood for consumption by local tourists. This would be an
added attraction for Kerala and would pay rich dividends for the future.
Traditional festivals
The traditional Kerala festivals are colourful social events that reflect the
vibrant nature of the land and its people. Boat races in the backwaters
are majestic and the traditional art forms in the state are spectacular.
Kerala also has a rich and singular cultural heritage. These festivals
should be seen as a high-priority attraction for marketing and
promotion.
HIGHLIGHT THE STRATEGIC
IMPORTANCE OF TOURISM
Recognize Travel & Tourism’s impact across
the broader economy
In 2003, expenditure by national, state and local governments on
Kerala’s Travel & Tourism will be around Rs1.4 billion (US$28.9
million) – a mere 1 per cent of total government expenditures. Over the
next decade, government’s contribution to Travel & Tourism is expected
to grow by only 0.1 percentage point to just 1.1 per cent of total
expenditure. This unwillingness by government to invest adequately in
Travel & Tourism clearly reflects its lack of appreciation of the industry’s
importance as a generator of wealth and employment. It also
undermines Travel & Tourism’s role as a catalyst for growth in other
areas such as retailing and construction, which would decline if demand
for Travel & Tourism were reduced.
WTTC recommends that the share of government expenditure in
Travel & Tourism be increased significantly over the next few years, so
that it is more in line with the forecast contribution of Travel & Tourism
to GDP and employment. The following shares highlight the greater
importance attributed to Travel & Tourism in some other
countries/states: Singapore, 9.1 per cent; Hong Kong, 7.4 per cent;
Malaysia, 5.1 per cent; Sri Lanka, 4.0 per cent; and China, 3.8 per cent.
Reconstitute Kerala’s policy-making system
In order to make Travel & Tourism the state’s primary economic driver,
it is necessary for the Chief Minister to be associated with the planning,
execution and maintenance of tourism projects. This is because the
development of tourism infrastructure involves decisions affecting a
variety of different disciplines such as public works, highways, power
and water systems, the constitution of development agencies, the
maintenance of law and order and security. Without the association of
the Chief Minister, decisions on a broad spectrum affecting tourism will
not be taken.
WTTC strongly recommends that a Cabinet Committee on
tourism be constituted under the chairmanship of the Chief Minister
and, with other important ministers as members. The Ministry of
Tourism would service the Cabinet Committee, whose decisions would
be final and would determine the execution of policy in this vital sector.
DEVELOP THE HUMAN CAPITAL
REQUIRED FOR GROWTH
Place a high priority on education and
training
The vast increase forecast in the manpower requirements of the tourism
industry will necessitate the creation of suitable training facilities, which
could equip the workforce with the skills required to handle
sophisticated foreign visitors. Special attention should be paid to placing
education and training at the forefront of Travel & Tourism
development, introducing it into the school curriculum and having
mid-career refresher courses to constantly upgrade skills.
Existing educational institutes, such as KITTS, KIHMS and
IHMCT, should be developed into ‘institutions of excellence’, and the
syllabi and training facilities of other institutions offering courses in
Travel & Tourism should be enhanced to ensure quality standards.
Continuous training programmes should also be organized to train the
various categories of people engaged in the tourism industry, such as
taxi drivers, cooks, waiters, guides, information office assistants, etc.
ENCOURAGE OPEN MARKETS AND
SKIES AND REMOVE BARRIERS TO
GROWTH
Improve airline access
One major hurdle to the rapid growth of tourism to Kerala is access.
The Government of India has a very restrictive air transport policy, and
existing bilateral air service agreements limit international flights to just
Thiruvananthapuram and Cochin, although a third airport – at
Kozhikode – is also considered to be an international one. At these
airports, foreign airlines are also restricted in terms of seat capacity as
determined by the national carriers.
As an example, Cochin airport has been in operation for four years
23
now, but services to the airport are severely limited to a handful of Kerala’s State Plan Allocation for tourism,
foreign carriers. Emirates is one airline that has been unsuccessful in 1995/96 to 2001/02a
obtaining rights for a daily service to Cochin. A much more liberal
Year Allocation (Rs mnb) % annual change
approach is necessary to tap the full potential of these gateways to Kerala.
1995/96 173.0 na
1996/97 292.0 68.8
Tax intelligently 1997/98 360.0 23.3
One issue of considerable concern is that of tourism taxation.Travel & 1998/99 372.0 3.3
Tourism-related taxes in the state of Kerala (eg taxes on hotels, liquor, 1999/00 360.0 -1.2
2000/01 460.0 27.8
food and beverages) are higher than in any other state in India.
2001/02 400.0 -13.0

Tourism taxes in Kerala a Fiscal years ended Mar 31 b Rs47.40 = US$1 as at May 1, 2003
Source: KTDC
Luxury tax
Room rate: Central Assistance Allocation for Kerala’s tourism,
Non air-conditioned 7.5% 1995/96 to 2001/02a
Air-conditioned 15.0%
Year Allocation (Rs mnb) % annual change
Sales tax 1995/96 21.0 na
Food 9.2% 1996/97 23.6 12.4
Imported liquor 100.0% 1997/98 27.7 17.4
Local liquor 10.0% 1998/99 69.9 152.3

Source: KTDC
1999/00 112.5 60.9
2000/01 122.5 8.9
The Kerala Government needs to recognize that air-conditioned 2001/02 140.0 14.3

rooms and imported liquor are not considered by foreign tourists to be a Fiscal years ended Mar 31 b Rs47.40 = US$1 as at May 1, 2003

‘luxury’ items. Many visitors look on these items as necessities and ones Source: KTDC

that are readily available in their everyday lives at home. It is also worth
noting that the lowering of these tax rates can make a destination a more
attractive option and, as a consequence, actually result in increased
revenue collection due to an increase in demand and lower tax evasion.
MATCH PUBLIC AND PRIVATE
INFRASTRUCTURE TO CUSTOMER
DEMAND
Increase government investment in Travel &
Tourism infrastructure
It has already been established that the Kerala Government allocates a
mere 1 per cent of its budget to Travel & Tourism – for expenditures
related to the provision of individual and collective government services
to visitors, travel companies and the community at large. This is
extremely low. But, in addition, the government’s allocation for
investment in Travel & Tourism infrastructure, as detailed in the State
Plan Allocation for tourism, is also low, as is the Central Assistance
Allocation for Kerala’s tourism. Although there has been a substantial
increase in percentage terms over the last few years, as the following
tables show, the allocation for tourism has remained stagnant in terms of
its share in the overall budgets.
Kerala would benefit enormously from a plan to progressively
increase the state’s contribution. Such a plan could be implemented over
a five-year period, with the state allocation for Travel & Tourism
gradually increasing to 5 per cent of the total budget.
Kerala needs to strengthen its overall infrastructure significantly –
not only in the interest of tourism, but also for the general economic
development of the state. The inter-state highways, as well as roads
connecting tourism destinations, need to be upgraded to international
standards. Highways and roads have been developed all over the world by
private sector investors on a ‘build, operate and transfer’ (BOT) basis, and
have been made economically viable through the introduction of toll
systems. Kerala needs to introduce toll roads to link tourism destinations
to airports and railway stations. This network of world-class highways
would allow Kerala’s numerous tourist attractions to be fully enjoyed.
Channel private sector investment
Much of the wealth of Kerala comes by way of remittances from its
industrious workforce based in the Middle East and Southeast Asia.The
Government of Kerala should try to channel the inward remittances to
strengthen the Travel & Tourism infrastructure in the state. Special
schemes could be devised incorporating tax incentives and other
assistance, whereby this money could become capital investment in
hotels, motels, restaurants, entertainment and tourism transport facilities.
There is an urgent requirement for different kinds of tourism
transport – luxury coaches, air-conditioned cars, luxury boats, yachts
and speedboats. A drastic lowering of import duty and other incentives
would help to divert money to the development of these productive
tourism assets.

24
FAVOUR TECHNOLOGICAL
ADVANCEMENT
E-marketing and distribution
In today’s increasingly competitive global marketplace, there is a real
need for a strong leadership branding that optimizes resources, focuses
the myriad of interests – public and private sector, state and local – and
gets the attention of travellers.This will require particular attention to a
coordinated approach to internet marketing and distribution to
optimize Kerala’s visibility.
The Government of Kerala has already taken important steps in
developing an attractive and useful website, and this should be expanded
and enhanced so it becomes a fully fledged regional tourism destination
database. This should be carried out with partners from the private
sector, so as to improve distribution of Kerala’s tourism products and
help small and medium-sized enterprises develop e-marketing skills.
Support for local companies should also be provided so that they
can develop access to technology advances and compete more
effectively with suppliers in competing destinations.
PROMOTE RESPONSIBILITY IN
NATURAL, SOCIAL AND CULTURAL
ENVIRONMENTS
Kerala has a fragile eco-system and its backwaters and coastal lagoons are
susceptible to pollution and overcrowding. In order to preserve its
precious tourist attractions, and ensure sustainable development in the
future, the Kerala Government should conduct carrying capacity
studies.
In addition, it should adopt the principles of ecological
preservation as outlined in Agenda 21, developed for the Travel &
Tourism Industry after the 1992 Rio Earth Summit by WTTC, the
World Tourism Organization and the Earth Council. WTTC also
recommends that:
■ Clear policies and guidelines are developed for planned and
sustainable tourism expansion;
■ The socio-economic, cultural and environmental benefits of Travel
& Tourism are spread equitably across the population in all parts of
the state; and
■ The need for local community engagement and empowerment is
recognized.
Sustainability will need a balance of private initiative, economic
instrument and regulation. Global principles should be reflected in local
action and market-based delivery mechanisms should be encouraged.
Micro-loans for local community-based sustainable tourism enterprises
should be provided as incentives, and pilot projects used to evaluate and
demonstrate local sustainability.
One major hurdle to the rapid growth of
tourism to Kerala is access.
Increase branding through international
and/or national designations
Kerala is immensely rich in its unique art forms, culture and heritage.
The tradition of classical and folk arts in Kerala dates back over a
thousand years. Koodiyattom, one of the oldest art forms of Kerala, and
the only surviving form of the ancient Sanskrit drama, was recently
selected by UNESCO for proclamation as an oral and intangible world
heritage.
Kathakali, Mohiniyattam, Thullal, Theyyam, Thira, etc are unique
in their style and forms and the architectural monuments in the state
maintain a unique character. The state has also decided to hasten the
process for the preservation and conservation of these heritages. But it
could also consider developing and promoting a regional heritage
designation, with clearly defined criteria defined to support quality.
Such a designation should result in increased funding from the
government for the development and promotion of identified areas of
particular heritage value.
25
SATELLITE ACCOUNT

1998 1999 2000 2001 2002E 2003E 2013P

Kerala Travel & Tourism - Rs bn
Personal Travel & Tourism 19.08 22.71 26.22 28.64 32.00 37.61 195.67
Business Travel & Tourism 2.88 3.40 3.77 3.47 3.27 4.07 19.10
Corporate 2.59 3.04 3.36 3.09 2.90 3.62 17.43
Government 0.29 0.37 0.41 0.38 0.36 0.44 1.67
Gov’t Expenditures - Individual 0.22 0.27 0.31 0.34 0.37 0.42 1.34
Visitor Exports 17.63 20.41 23.27 25.50 28.64 35.24 239.07

Travel & Tourism Consumption 39.82 46.80 53.57 57.95 64.28 77.33 455.17

Gov’t Expenditures - Collective 0.50 0.63 0.70 0.78 0.86 0.95 3.07
Capital Investment 10.02 11.64 13.04 14.20 15.88 18.14 75.13
Exports (Non-Visitor) 2.98 3.51 4.11 4.60 4.95 5.81 30.56

Travel & Tourism Demand 53.31 62.58 71.42 77.53 85.97 102.23 563.94

Travel & Tourism Industry Aggregates (Direct Impact Only)

Employment ('000) 272.71 210.94 241.54 290.20 328.82 378.58 1,135.66
Gross Domestic Product 20.90 24.68 27.31 29.49 32.79 39.27 216.52

Travel & Tourism Economy Aggregates (Direct and Indirect Impact)

Employment ('000) 570.82 441.41 506.21 611.28 692.98 788.55 2,221.37
Gross Domestic Product 43.76 51.65 57.24 62.11 69.11 81.80 423.52
Note: Employment in ‘000 Jobs

T&T Accounts as % of National Accounts

Personal Travel & Tourism 4.87 4.95 5.16 5.21 5.27 5.41 7.16
Gov’t Expenditures 0.99 1.01 1.01 1.01 1.02 1.03 1.10
Capital Investment 7.69 7.72 7.74 7.75 7.78 7.82 8.27
Exports 16.28 15.63 15.48 15.27 15.83 16.62 22.42
T&T Imports 7.54 7.76 8.41 8.59 8.71 8.97 11.59

Travel & Tourism Industry Aggregates (Direct Impact Only)

Employment 2.23 2.35 2.45 2.56 2.70 2.98 7.68
Gross Domestic Product 3.46 3.48 3.47 3.48 3.52 3.71 5.23

Travel & Tourism Economy Aggregates (Direct and Indirect Impact)

Employment 4.68 4.91 5.13 5.38 5.68 6.20 15.02
Gross Domestic Product 7.24 7.28 7.28 7.33 7.41 7.73 10.24

Travel & Tourism Real Growth (% per annum, except 2013 = 10-year annualized)
Personal Travel & Tourism 12.97 13.33 11.00 5.92 6.37 10.86 10.80
Business Travel & Tourism 8.31 12.46 6.50 -10.72 -10.44 17.44 9.74
Gov’t Expenditures 15.06 20.83 7.09 7.30 5.27 4.81 5.62
Capital Investment 1.65 10.64 7.69 5.61 6.49 7.74 6.66
Visitor Exports 15.26 10.22 9.56 6.27 6.97 16.05 13.78
Other Exports -3.09 12.17 12.59 8.51 2.48 10.78 9.14
Travel & Tourism Consumption 13.63 11.93 10.02 4.91 5.62 13.47 12.18
Travel & Tourism Demand 10.14 11.79 9.70 5.27 5.59 12.17 11.45

26
TABLES

1998 1999 2000 2001 2002E 2003E 2013P

Travel & Tourism Industry Aggregates (Direct Impact Only)
Gross Domestic Product 11.58 12.44 6.35 4.70 5.91 12.96 11.44
Employment 13.88 -22.65 14.51 20.14 13.31 15.13 11.61

Travel & Tourism Economy Aggregates (Direct and Indirect Impact)

Gross Domestic Product 8.50 12.41 6.51 5.23 5.96 11.64 10.75
Employment 10.73 -22.67 14.68 20.76 13.36 13.79 10.91

Kerala Travel & Tourism - US$ mn

Personal Travel & Tourism 462.48 527.44 583.54 606.95 659.94 757.60 2,610.78
Business Travel & Tourism 69.87 79.07 83.93 73.59 67.37 81.92 254.81
Corporate 62.81 70.55 74.81 65.46 59.88 72.96 232.53
Government 7.07 8.52 9.12 8.13 7.49 8.96 22.28
Gov’t Expenditures - Individual 5.24 6.37 6.80 7.17 7.71 8.37 17.87
Visitor Exports 427.42 474.09 517.69 540.26 590.74 709.86 3,189.74

Travel & Tourism Consumption 965.01 1,086.98 1,191.96 1,227.96 1,325.76 1,557.76 6,073.20

Gov’t Expenditures - Collective 12.02 14.62 15.60 16.44 17.69 19.20 40.98
Capital Investment 242.83 270.37 290.20 300.98 327.62 365.52 1,002.46
Exports (Non-Visitor) 72.16 81.45 91.41 97.41 102.04 117.06 407.77

Travel & Tourism Demand 1,292.03 1,453.42 1,589.17 1,642.78 1,773.11 2,059.54 7,524.41

Travel & Tourism Industry Aggregates (Direct Impact Only)

Employment ('000) 272.71 210.94 241.54 290.20 328.82 378.58 1,135.66
Gross Domestic Product 506.67 573.28 607.69 624.80 676.37 791.11 2,888.93

Travel & Tourism Economy Aggregates (Direct and Indirect Impacts)

Employment ('000) 570.82 441.41 506.21 611.28 692.98 788.55 2,221.37
Gross Domestic Product 1,060.50 1,199.64 1,273.56 1,316.09 1,425.41 1,647.81 5,650.81

Travel & Tourism - 1990 Constant US$ mn

Personal Travel & Tourism 537.11 608.70 675.67 715.65 761.25 843.95 2,353.12
Business Travel & Tourism 81.15 91.26 97.19 86.76 77.71 91.26 229.66
Gov’t Expenditures - Individual 6.09 7.35 7.88 8.45 8.90 9.32 16.10
Visitor Exports 496.38 547.13 599.42 637.01 681.43 790.77 2,874.94
Travel & Tourism Consumption 1,120.72 1,254.44 1,380.14 1,447.87 1,529.28 1,735.30 5,473.82
Gov’t Expenditures - Collective 13.96 16.87 18.07 19.38 20.41 21.39 36.94
Capital Investment 282.01 312.03 336.01 354.88 377.92 407.18 903.52
Exports (Non-Visitor) 83.80 94.00 105.84 114.85 117.71 130.40 367.53
Travel & Tourism Demand 1,500.49 1,677.34 1,840.07 1,936.98 2,045.31 2,294.27 6,781.80

Gross Domestic Product

Travel & Tourism Industry 588.42 661.60 703.63 736.69 780.20 881.28 2,603.81
Travel & Tourism Economy 1,231.62 1,384.46 1,474.63 1,551.78 1,644.23 1,835.61 5,093.12

27
WTTC India Initiative Members

Vikram Madhok* P R S Oberoi*

Abercrombie & Kent The Oberoi Group

Ankur Bhatia* Hugh Hamilton-Andrews

Amadeus India Pvt Ltd PFG Nomura

K L Muralidhara* Priya Paul

American Express The Park Hotels

Harsh Neotia Utam Kumar Bose

Ambuja Cement Eastern Ltd Sahara Airlines India

Shiv Kumar Jatia Arjun Sharma

Asian Hotels Ltd Select Holiday Resorts

K Roy Paul Himmat Anand

Air India Sita World Travel

Alun Cathcart* Daniel Desbaillets*

Avis Europe Plc Six Continents Hotels

Lalit Suri* R K Krishna Kumar*

Bharat Hotels Ltd The Taj Group

Peter Kerkar Ashwini Kakkar*

Cox & Kings Thomas Cook (India) Ltd

Maurice Flanagan* Adi J Katgara

Emirates Travel Corporation India Pvt Ltd

Maharana Arvind Singh Yogesh Chandra

Historic Resort Hotels Ltd Secretary General,WTTC India Initiative

Vivek Nair Ritu Chatrath

Hotel Leelaventure Ltd Executive Assistant,WTTC India Initiative

Sunil Arora Marianne Thompson-Hill

Indian Airlines Director, Regional Programmes,WTTC

Nakul Anand WTTC India

ITC Hotels D-56 Malcha Marg
Chanakyapuri
Naresh Goyal New Delhi 110021
Jet Airways India
Tel: +91 (11) 2410 9745
HH Maharaja Gaj Singh Fax: +91 (11) 2410 8464
Maharaja Heritage Resorts Email: rchatrath.wttc@starith.net

*Members whose companies are also Global Members of the WTTC