Taj Mahal

Kashmir

Rajasthan

Kerala

Ellora Caves

Lotus Temple

Kullu Manali

India Gate

Kanyakumari

Ajanta Caves

Nalanda University Ruins

Badrinath

Amarnath Entrance

Manipur

Mahabalipuram

Goa

Current News & Analysis Presentation

Topic Selling India as a destination

Thought Flow for the Presentation

Introduction Why India Needs Tourism? Why Tourism needs an Integrated Approach? Present Day Scenario Incredible India Campaign Promotion of Indian Tourism An Integrated Approach The Future A Positive Outlook

WHY INDIA NEEDS TOURISM

Largest sector in the worldwide exports of goods & services. Developing economies are benefiting more than developed economies. Recognize Enormous potential of the Hotel, Travel, Entertainment, Transport and other allied industries. Tourism industry can boost Indias GDP and forex earnings significantly.

TOURISM AND WORLD TRADE

WORLD TOURISM
Total world tourist arrivals in 1999 664 million

Source : Data WTTC

International tourist arrivals cover the number of arrivals of visitors and not the number of persons

INDIAS TRAVEL ACCOUNT BALANCE

Indias Net Foreign Exchange Earnings From Travellers has been showing a Negative Growth Rate

WHY TOURISM NEEDS AN INTEGRATED APPROACH

Tourist arrivals actually refer to all visitors to India. This number is way below the targeted number of arrivals of 5 mn. tourists by 2000-2001.

Comparative of average tourist spend per day & tourist density per Sq. Km. Of Total Country

Factors Affecting Indian Tourism

(A) Leisure Tourism
Inadequate Promotion and Marketing

Poor Infrastructure Restrictive Policies

Other Obstacles

Factors Affecting Indian Tourism contd....

(B) Business Tourism

Inadequate magnets to attract business groups Inadequate facilities for business conventions

Attitude towards potential business investors

VALUE GROWTH

GROWTH IN RUPEE TERMS BUT STAGNATION IN DOLLARTERMS

THE INCREDIBLE INDIA CAMPAIGN

Started in December 2002 The First Intensive Initiative From The Tourism department towards increasing tourist inflows to India. Touts the countrys Mystical, Spiritual and Healing traditions. Campaign focuses on countrys small,unexplored tourist spots. Department of Tourism won the PATA GOLD AWARD (2003) -BEST MARKETING. -IN PRINT MEDIA CATEGORY.

ACHIEVEMENTS OF THE CAMPAIGN

Foreign exchange earnings went up by 23 % (2003) International tourist arrivals increased by 16 % Total earnings increased from Rs.14000 cr. to Rs.17200 cr. INDIA selected among the top 10 preferred destinations: The Conde Nast Traveller. Among the top 5 destinations: The Lonely Planet Travel Guide.

IMPACT ON ARRIVALS
4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 2002 0 1 2 3 2003 2004 2384364 YEAR TOURIST ARRIVALS 2726214 3367980

PERCENTAGE INCREASE: 2002-03: 14.3 % 2003-04: 23.5 %

IMPACT ON FOREX
25000

NET FOREIGN EXCHANGE EARNING

20000 15000 10000

5000
0 2002 2003 YEAR 2004

PERCENTAGE INCREASE : 2002-03: 15.7 % 2003-04: 32.9 %

Promotion of Indian Tourism An Integrated Approach

1) Support Functions Solutions to Structural Problems
Completing The Jigsaw The Infrastructure Mix Plugging The Loopholes The Policy Mix Creating the SARKAR Establishment of a Central Regulatory Body

2) The Great Indian Curry The 4 Ps of the Marketing Mix 3) The 5th P We The People

Completing The Jigsaw The Infrastructure Mix

1) Creation of Special Tourism Circles
Different strategies for each of the 3 categories. Overall game plan is to move places in category 3 to 2, and then to category 1 over a period of time.

The Infrastructure Mix contd....

2) Addressing Minor issues: Areas of concern include Security, Language, Quality of Tour Guide, Quality of B & L facilities, Hygiene & Cleanliness 3) Preservation of Heritage Sites
38 sites in need of fiscal support, allocation made is only Rs. 156 crores

Involve Private Sector for maintenance & upgradation

Security concerns to be addressed

Plugging The Loopholes The Policy Mix

1) Increase Budgetary Allocation for Tourism: Awaken the Indian Kumbhakarna The Planning Commission

% of GDP allocated for Tourism

Major Head Revenue Capital Total

Budget 2004-2005 186 314 500

Budget 2005-2006 300.25 485.75 786

(Rs. in crore)

Source: 87th Report of Ministry of Tourism Dated 29/04/2005

The Policy Mix contd....

2) Visa Power Please Give It

The Policy Mix contd....

3) Relax the Tax Taxation Policy & Pricing issues

Streamlining The Tax Structure

Rationalisation of Tax Rates

Avoid Disciminatory Pricing Creation of Currency Fluctuation Reserve

Creating the SARKAR

Need for a Professional Body for Tourism
NASSCOM Like Format Action Steps for setting up NATPRO

The Great Indian Curry The 4 Ps of the Marketing Mix

The Product Mix
The Price Mix The Promotion Mix The Place mix

The Target Market Lakshya

India should focus on just 6 countries (USA, UK, Germany, Japan, France and Italy), which account for 53% of the outbound tourists and 45% of the world tourism expenditure.

The Product Mix

Product Variety: Moksha (Spiritual Tourism), Adventure
Tourism, Sun & Sand (Beaches of India), Aarogya (Health Tourism), Top of The World (Hill Stations), Old is Gold (Monuments & Heritage) sites, Dharma (Religious Tourism), The Indian Safari (Wildlife Tourism), Kridangan (Sports Tourism) or a Combination of 2 or more of the above Product Features: Food, Culture, Heritage, People, Lifestyles, Landscapes, etc Brand Name: A Central Theme Eternally Yours & National Tourism Logo like the Maharaja Packaging: Tours with a much broader product offering, customer feedback processes & maintenance of contact with customer even after their departure from India

The Price Mix

Broad Price Range
Discounts Installment Payment options Alternative Payment Methods such as
Dollar Debit Cards

The Promotion Mix

Advertising
Sales Promotion Public Relations

The Place mix

Leveraging the Tour operator Network
E-Booking of Tours Tie-ups with Airlines & Hotels Phone Booking through BPO services

The 5th P We The People

The 5th P We the People, matters the most The 7-point Atithi Devo Bhavah Programme Components of the Atithi Devo Bhavah Program

Role of the Indian Tourism Offices

The Future En Route To Vision 2020

25 million additional jobs (6.8%) in the Indian tourism

by 2010 from 17 million (5.6%) at present. The WTO Tourism Vision 2020 forecasts that international arrivals will reach over 1.56 billion by 2020. Indias share expected to be 40 million arrivals. 50 million jobs to be created. Contribution to GDP Rs.850000 crores (7% of GDP)

REFERENCES
www.tourismindiaonline.com www.neoncarrot.co.uk www.wttc.org www.tourismofindia.com http://www.consultavalon.com http://www.indiafirstfoundation.org http://www.bseindia.com