ROLE OF SERVICE SECTOR IN ECONOMIC GROWTH UNDER TOURISM

Introduction to Tourism
Tourism is a service industry, comprising a number of tangible and intangible components. The tangible and intangible elements of tourism are mentioned below.

Tangible elements

Transport systems - air, rail, road, water and now, space; Hospitality services - accommodation, foods and beverages, tours, souvenirs; and Related services such as banking, insurance and safety and security. Rest and relaxation, Culture, Escape from routine, Adventure, New and different experience

Intangible elements

Types of Tourism

Tourism may be classified into the following major types: Inbound international tourism: Visits to a country by non-resident of that country Outbound international tourism: Visits by the residents of a country to another country Internal tourism: Visits by residents of a country to their own Domestic tourism: Inbound international tourism + internal tourism National tourism: Internal tourists + outbound international tourism

Special forms of tourism

In the past few decades other forms of tourism, also known as niche tourism, have been becoming more popular, particularly:

Adventure tourism: Tourism involving travel in rugged regions, or adventurous sports such as mountaineering and hiking (tramping). Agritourism: Farm based tourism, helping to support the local agricultural economy. Ancestry tourism: It is also known as genealogy tourism and involves travel with the aim of tracing one's ancestry, visiting the birth places of these ancestors and sometimes getting to know distant family. Armchair tourism and virtual tourism: Not traveling physically, but exploring the world through internet, books, TV, etc. Bookstore Tourism: It is a grassroots effort to support independent bookstores by promoting them as a travel destination. 5 Cultural tourism: It includes urban tourism, visiting historical or interesting cities, and experiencing their cultural heritages. This type of tourism may also include specialized cultural experiences, such as art museum tourism where the tourist visits many art museums during the tour, or opera tourism where the tourist sees many operas or concerts during the tour. Dark tourism: It is the travel to sites associated with death and suffering. Disaster tourism: Travelling to a disaster scene not primarily for helping, but because it is interesting to see. It can be a problem if it hinders rescue, relief and repair work. Drug tourism: For use of drug in that country, or, legally often extremely risky, for taking home. Ecotourism: Sustainable tourism which has minimal impact on the environment. Educational tourism: May involve traveling to an education institution, a wooded retreat or some other destination in order to take personal-interest classes, such as cooking classes with a famous chef or crafts classes. Gambling tourism: Involves visits to Atlantic City, Las Vegas, Macau or Monte Carlo for the purpose of gambling at the casinos there. Heritage tourism: Visiting historical (Athens, Cracow) or industrial sites, such as old canals, railways, battlegrounds, etc. Health tourism: Usually to escape from the busy life of the cities and to relieve stress. Hobby tourism: Tourism alone or with groups to participate in hobby interests, to meet others with similar interests, or to experience something pertinent to the hobby. Examples might be garden tours, ham radio expeditions or square dance cruises. Inclusive tourism: Tourism marketed to those with functional limits or disabilities. Referred to as "Tourism for All" in some regions.

INDIAN TOURISM

The Indian tourism sector has been experiencing a resilient phase of growth, driven by the flourishing middle class, increased spending by the foreign tourists, and synchronized administration and promotions by the Government of India to encourage Incredible India. The tourism industry in India is extensive and lively, and the nation is fast becoming a major international destination. Indias travel and tourism industry is one of them most lucrative businesses in the country, and also accredited with contributing a considerable volume of foreign exchange to the country reserves. A number of reasons are cited as being the cause of the progress and success of Indias travel and tourism sector. Economic growth has added millions annually to the ranks of Indias middle class, a group that is driving domestic tourism growth. Thanks in part to its booming IT and outsourcing industry a growing number of business trips are made by foreigners to India, who will often add a weekend break or longer holiday to their trip. Foreign tourists spend more in India than almost any other country worldwide. Growth Trends The tourism and hospitality industry being the largest service sector in the country, adds around 6.23 per cent to the national GDP and 8.78 per cent of the total employment in the country. Recently, the Ministry of Tourism also compiled a monthly estimate on the foreign tourist arrivals (FTAs) and foreign exchange earnings (FEE) based on the total number of foreign visitors in the country. During the month of September 2011, the total number of Foreign Tourist Arrivals (FTAs) was 401,000 as compared to FTAs of 369,000 during the month of September, 2010 and 331,000 in August, 2009. There has been a growth of 8.7 per cent in September, 2011 over September, 2010 as compared to a growth of 11.6 per cent registered in September 2010 over September, 2009. The growth of 8.7 per cent in September 2011 is higher than 5.3 per cent in August, 2011. During January-September, 2011, the total FTAs stood at 4,220,000 with a growth of 10.0 per cent, as compared to the FTAs of 3,835,000 with a growth of 8.0 per cent during January-September 2010 over the corresponding period of 2009.

In a report by the Ministry of External Affairs, the Indian hospitality sector is expecting a projected investment of US$ 12 billion within the next two years along with a number of industry initiatives already in progress. As per the report by the Ministry of Tourism, the Foreign Exchange Earnings (FEE) is as follows Foreign Exchange Earnings (FEE) during the month of September 2011 were US$ 1.1 billion as compared to US$ 892.15 million in September 2010. The growth rate in FEE in September 2011 was 22.9 per cent as compared to 23.2 per cent in September 2010 over September 2009. FEE from tourism in rupee terms during January-September 2011 were US$ 10.25 billion with a growth of 16.6 per cent, as compared to the FEE of US$ 8.79 billion with a growth of 22.7 per cent during January- September 2010 over the corresponding period of 2009. FEE in US$ terms during the month of September 2011 were US$ 1208 million as compared to FEE of US$ 1015 million during the month of September 2010 and US$ 785 million in September 2009.

The growth rate in FEE in US$ terms in September 2011 over September 2010 was 19 per cent as compared to the growth of 29.3 per cent in September 2010 over September 2009. FEE from tourism in terms of US$ during January-September 2011 were US$ 11.9 billion with a growth of 18.7 per cent, as compared to US$ 10.01 billion with a growth of 30.5 per cent during January-August 2010 over the corresponding Period of 2009.

Government Initiatives As per the Foreign Direct Investment (FDI) policy, the Indian Government has allowed 100 per cent foreign investment under the automatic route in the hotel and tourism industry. Moreover to facilitate foreign tourists, the Government of India has brought forth a scheme that permits the tourists from Finland, Japan, Luxembourg, New Zealand and Singapore to travel on Tourist Visa on Arrival (T-VoA) in the country for a limited period of 30 days only. Medical Tourism In a Press Release by the Press Information Bureau (PIB) on November 15, 2010, the Union Ministry of Tourism has already included Medical Tourism segment under the Marketing Development Assistance (MDA) Scheme. Following this, the Ministry of Tourism has approved US$ 27,742 as MDA to 10 Medical Tourism Service Providers during current year. As stated in a report by RNCOS, 'Booming Medical Tourism in India', the countrys share in the international medical tourism business will be 3 per cent by the end of 2013 and is expected to generate revenue worth US$ 3 billion growing at a CAGR of around 26 per cent during 2011-2013. The number of medical tourists is anticipated to grow at a CAGR of over 19 per cent during the forecast period to reach 1.3 million by 2013. The domestic segment of the Indian medical tourism has also seen a growth in recent years with a number of domestic tourists taking trips to states like Kerala, Karnataka, Himachal for 'health and medical' purposes. Further to promote more foreign tourists into the country on medical trips, the Government of India has introduced a new category of visa, "Medical Visa" ('M'-Visa), especially for foreign tourists coming into India for medical tourism. Road Ahead Indian tourism segment is one of the most essential sectors of the economy in the country. The sector holds a lot of significance to the national GDP and offers major contribution to the foreign exchange reserve of the country. Identifying the prominence of the sector, Government has capitalized amply in the past for infrastructure development of the sector. The Indian tourism and hospitality business in the country has been set up for a fast growth trajectory which is clearly marked by an enormous prospective across a number of segments within the tourism industry. Government initiatives coupled with rapid industry ventures in the sector and are expected to endure in future as well. Exchange rate used: 1 INR = US$ 0.0190658 as on November 22, 2011