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    About Indian Tourism

    As per the Travel and Tourism Competitiveness Report 2009 bythe World Economic Forum, India is ranked 11th in the AsiaPacific region and 62nd

    overall, moving up three places on the list of the world'sattractive destinations.

    It is ranked the 14th best tourist destination for its natural

    resources and 24th

    for its cultural resources, with many WorldHeritage sites, both natural and cultural, rich fauna, and strongcreative industries in the country.

    India made it to the list of "rising stars" or the countries that are

    likely to become major tourist destinations in the next five years,led by the United Arab Emirates, China, and Vietnam.

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    India also bagged 37th rank for its air transport network. TheIndia travel and tourism industry ranked

    5

    th in the long-term (10-year) growth and is expected to be the second largest employerin the world by 2019.

    India has been ranked the best country brand for value-for-money in the Country Brand Index (CBI) survey conducted by

    Future Brand, a leading global brand consultancy.

    India also claimed the second place in CBIs best country brandfor history, as well as appears among the top 5 in the bestcountry brand for authenticity and art & culture, and the fourth

    best new country for business.

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    Tourism in India FiguresTourism in India Figures

    0.8% share of world market0.8% share of world market

    Tourists (2008)Tourists (2008)

    4.6 million (International)4.6 million (International)

    382 million (domestic)382 million (domestic)

    EmploymentEmployment

    Direct - 10.7 millionDirect - 10.7 million

    IndirectIndirect 24.4 million24.4 million

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    Export earnings ~ US $ 9.6 bn 2008Export earnings ~ US $ 9.6 bn 2008

    Contribution to GDPContribution to GDP

    Direct 2%Direct 2%

    Overall 5.9%Overall 5.9%

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    India: An emergingIndia: An emerging

    superpowersuperpower

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    FUTURE GDP:FUTURE GDP:Indias GDP will exceedIndias GDP will exceed

    Italys in 2020,Italys in 2020,

    Frances in 2020Frances in 2020Germanys in 2025 andGermanys in 2025 and

    Japans in 2035Japans in 2035

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    Tourism growth in IndiaTourism growth in India According toAccording to World Tourism OrganizationWorld Tourism Organization estimates,estimates,

    India will lead in South Asia with 8.9 million arrivals byIndia will lead in South Asia with 8.9 million arrivals by

    20202020

    India is poised to emerge as the 2nd fastest growingIndia is poised to emerge as the 2nd fastest growing

    (8.8%) tourism economy in the world over 2005-14(8.8%) tourism economy in the world over 2005-14

    according to theaccording to the World Travel & TourismWorld Travel & Tourism

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    Contribution to the economy

    According to the Travel & Tourism Competitiveness Report 2009brought out by the World Economic Forum, the contribution oftravel and tourism to gross domestic product (GDP) is expected tobe at 6.0 per cent (US$ 67.3 billion) in 2009 rising to US$ 187.3billion by 2019.

    The report also states that real GDP growth for travel and tourism

    economy is expected to be 0.2 per cent in 2009 and to an average7.7 per cent per annum over the coming 10 years. Export earningsfrom international visitors and tourism goods are expected togenerate 6.0 per cent of total exports (almost US$ 16.9 billion) in2009, growing (nominal terms) to US$ 51.4 billion in 2019.

    The travel and tourism sector which accounts for 6.4 per cent of

    total employment or 1 in every 15.6 jobs in 2009 is expected togenerate 40,037,000 jobs i.e. 7.2 per cent of total employment or 1in every 13.8 jobs by 2019. Real GDP growth for Travel & Tourismeconomy is expected to be 0.2 per cent in 2009 and to average 7.7per cent per annum over the coming 10 years.

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    Government Initiative

    The campaign Visit India Year 2009 was launched at the International Tourism Exchange in Berlin,aimed to project India as an attractive destination for holidaymakers. The government joinedhands with leading airlines, hoteliers, holiday resorts and tour operators, offering them a widerange of incentives and bonuses during the period between April and December, 2009.

    The airlines participating in the campaign, Air India, Jet Airways and Kingfisher Airlines are offeringa companion free ticket for every ticket purchased for international and domestic flights.Connecting flights to the departing airports are included in the final travel costs. The Indian TravelAgents Association (IATO) is offering holiday-makers a free sightseeing tour in a city of theirchoice.

    Euromonitor International's Travel And Tourism in India report states that the Government of Indiaincreased spend on advertising campaigns (including for the campaigns Incredible India andAhithi Devo Bhava - Visitors are like God) to reinforce the rich variety of tourism in India.

    The Ministry promoted India as a safe tourist destination and has undertaken various measures,such as stepping up vigilance in key cities and at historically important tourist sites. It alsodeployed increased manpower and resources for improving security checks at key airports andrailway stations.

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    Tourist Circuits in India

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    CULTURE, HERITAGE AND ETHNO :TOURISM Chattisgarh, amongstother states has identified and is developing ethnic villages. The privatesector is also being encouragement for proper maintenance.

    ADVENTURE TOURISM Adventure sports such as water sports,trekking, rock-climbing, para-sailing and bungee-jumping are popular withthe younger travelers and working executives.

    MEDICAL TOURISM AND SPAS India has originated as one of themost important hubs for medical tourism. Many people from the

    developed countries come to India for the rejuvenation promised by yogaand ayurvedic message therapy as well as for high-end surgeries likecardiac bypass surgery or knee/hip replacement.

    HIGHWAY TOURISM - Besides catalyzing diversification of tourist trafficand revenue from the urban centers, planned development of highwaytourism opens opportunities for enhancing local employment and upliftingrural economy through local feeder enterprises, which will find scope togrow in the vicinity of such highway tourist complexes.

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    RAIL TOURISM The Indian Railways has introduces several newservices to promote rail tourism luxury tourist trains, exclusivesteam and hill charters, tour packages.

    CARAVAN TOURISM A new policy guideline to promote CaravanTourism in India and facilitate the infrastructure required for the samewould be announced.

    WELLNESS TOURISM - A new policy guideline for promotingWellness Tourism in India would be announced. The policy would aimto leverage Indias potential in traditional systems of wellness andmedicines like Ayurveda, Siddha and Yoga and to project India as aunique destination for spiritual healing.

    HELIPOT TOURISM - With a view to promote tourism in hilly and

    remote areas, guidelines would be framed to provide central financialassistance to States and Union Territories for constructions ofhelipads/heliports at selected destinations which have tourismpotential but lack good connectivity's

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    Travelers analysis

    28%

    20%

    12%

    5%

    2%

    0%

    2%

    9% 7% SE Asia

    W Asia

    W Europe

    Africa

    Australia

    C & S America

    E Asia

    E Europe

    N America

    S Asia

    Share of OutboundTravelers, 2006-2008

    0

    5

    10

    15

    20

    25

    30

    1998 2004 2006 2008 2018

    Number ofTravellers(Mn)

    Number of Outbound Indian Travelers

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    Foreign Tourist Arrivals

    Estimates of foreign tourist arrivals (FTAs) andforeign exchange earnings (FEE) areimportant indicators of the tourism sector. FEEin US$ terms during the month of November2009 were US$ 1.2 billion as compared to US$1 billion in November 2008.

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    Tourist Visits in India

    The number of domestic and foreign tourists has almost doubled in2003 and 2008.

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    Indian Tourism Industry-MarketSize

    15 3273

    164

    411

    22

    78

    0

    50

    100

    150

    200

    250

    300

    2003 2008E 2013F 2018F

    International TouriSpends

    Domestic Tourist Sp

    79%

    74%

    77%

    79%

    74%

    77%

    79%

    74%

    77%

    78%

    Market

    Sizei

    n

    Bn

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    India GDP Growth

    The most important growth is the robust economic growth that hasbeen witnessed in the country.Indias GDP has been growing at the rate of 6% since theliberalization of economy in 1991 and has grown over 8% in the pastfew years.

    At 8% CAGR, Indias GDP would almost triple from US$ 1200 Bn toUS$ 3500 Bn by 2023

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    Growth in GDP per Capita

    Indias strong economic growth has caused the GDP per Capita toincrease rapidly over the past 5 to 10 years. At current rate, the GDP

    per capita in 2013 would be double of what it was in 2003

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    Distribution of Households Across IncomeBrackets

    More and more families are expected to leave the deprived or aspirerscategory and join Indias burgeoning middle class.

    By 2025, the Indian middle class is expected to constitute 46% of the Indianpopulation.

    Subsequently, discretionary spends would be going up and this bodes

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    Share of LCCs In Airlines

    0

    1020

    30

    40

    50

    60

    70

    80

    Sharein%Fsc: Full Service Carriers

    LCC : Low Cost Carriers

    53%

    47%

    The above graphs indicates the increasing share of LCC from 33%

    to 47% between 2006 and 2008.

    The advent of LCC has spurred domestic air travel to grow from 11Mn travelers to 36 Mn travels in the last decade.

    Operational airports in the country have gone up from close to 40

    airports in 2004 to 81 airports at present.

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    Air Travel in India

    0

    10

    20

    30

    40

    50

    1996 -

    97

    1997 -

    98

    1998 -

    99

    1999 -

    00

    2000 -

    01

    2001 -

    02

    2002 -

    03

    2003 -

    04

    2004 -

    05

    2005 -

    06

    AxisTitle

    Total

    Domestic

    Internatio

    43.35% 35.79%

    7.56%

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    Steps taken by Government to PromoteTourism in Country.

    Airline tickets, tour package are all set to go cheaperwith 2% reduction in service tax

    State-run oil companies have slashed Aviation TurbineFuel (ATF) prices by 7%, the 11th reduction sinceSeptember last year.

    Airport Charges to be cut for a limited period by 50%.

    Removal of 8% excise duty on ATF.

    Reduce the charges which airport operator chargesfrom the oil companies, leading to enhancedperformance.

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    Indian Textile and Apparel Industry

    Indian textile and apparel industry is one of the oldest and most significantindustries in the country and one of the largest in the world.

    Apart from China, no other country can match the size, spread, depth andcompetitiveness of the Indian textile and apparel industry.

    Today the industry contributes around 14% to industrial production in the country,4% to the GDP, is estimated to directly employ apprx. 35 Mn people apart from theindirect employment in allied sectors, thus making it the second largest employerafter agriculture.

    It accounts for about 15% to the countrys exports and is, in sum, an importanteconomic engine for the nation.

    In the past 10 years, the industrys actions, government policies as well as marketevents have begun to converge, providing several growth opportunities for thesector domestically as well as in the global market.

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    Indian Textile and

    Apparel Market US $ 62Bn

    DomesticMarket US$ 40

    Bn

    ExportsUS$ 22 Bn

    TextilesUS$ 12 Bn

    ClothingUS$ 10 Bn

    Current Size : Indian Textile and Apparel

    Market

    The present size of the Indian textile and apparel market is US$ 62 Bn

    of which 22 US$ Bn is exports while rest US$ 40 Bn is the domesticmarket.The Indian domestic textiles and apparel market is one of the fastest

    growing market in the world. It is expected to become one of the majorconsumption bases in near future.The textile industry plays a significant role in getting the foreign

    exchange reserves into the country as it contributes approx. 15% of

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    FDI in India : Current Scenario

    Due to Indias recent liberalization of its foreign investment regulations, thecountry has become one of the fastest growing destinations for FDI inflows.

    India offers many advantages to foreign investors like strong economic growthleading to increased buying power by the middle class, low wages, and aneducated work force.

    Indias Special Economic Zones (SEZs) attract foreign investment by providing tax

    incentives, assistance with bureaucratic and administrative problems and accessto reliable infrastructure.

    Indian economy is growing 6 % per annum since last 10 years. Even in times ofrecession / slowdown in most of the developed economies, India is expected tomaintain this level of growth.

    From August 1991 to March 2009, India has attracted a total of US$ 106 Bn, ofwhich approx. US$ 90 Bn was invested during Apr 00 to March 09.

    In textile and apparel sector, 100% FDI allowed under the automatic route. FDIsectors to the extent permitted under automatic route does not require approvaleither by Government of India or Reserve Bank of India (RBI).

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    Healthcare Industry

    The wave of change has swept across every industry, suchdynamism and corporatization has completely changed theface of the healthcare industry.

    Due to increased competition Healthcare Providers are unableto pass the burden onto patients in the same proportion.

    Since there is a rising demand and unprecedented growth ofthe sector, there is a growing need to come up with newermodels to improve operational efficiency and make processes,

    infrastructure and out outlook to management more lean andspecific.

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    Documentation

    Mode ofPayment

    PublicRelations

    QualityHospitalFinancial

    Operations

    HumanResources

    Customization

    Third -Party

    Marketing/ CRM

    Accreditation

    RevenueCycle

    Management

    ActiveEmployeeengagem

    ent

    Personalized Care

    ElectronicMedicalRecords

    The Ongoing Transformation in Hospitals

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    Medical tourism in IndiaMedical tourism in India Medical care in the USA and private health care in UK is veryMedical care in the USA and private health care in UK is veryexpensive. India has well-trained doctors who will work for aexpensive. India has well-trained doctors who will work for a

    lower fee than they could expect abroad.lower fee than they could expect abroad.

    Medical tourism offers people the option ofMedical tourism offers people the option ofknee replacements,knee replacements,hip replacementship replacements,, heart care, cosmeticheart care, cosmetic && dentaldental surgery insurgery in

    India.India.

    Hundreds of people have treatment abroad, saving them aHundreds of people have treatment abroad, saving them a

    great deal of money in treatment costs.great deal of money in treatment costs.

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    3030

    Confederation of Indian Industry (C II) sponsored Mc KinseyConfederation of Indian Industry (C II) sponsored Mc Kinsey& Co. study.Healthcare in India : The Road Ahead& Co. study.Healthcare in India : The Road Aheadreport:-report:-

    1.3 million medical tourists visit Asia / year1.3 million medical tourists visit Asia / year

    Nos. of US patients seeking cheaper care abroadNos. of US patients seeking cheaper care abroad

    - grew to 7,10,000 / year- grew to 7,10,000 / year

    Over 1, 50000 medical tourists travelled to India inOver 1, 50000 medical tourists travelled to India in

    2002 bringing in earnings of $ 300 million.2002 bringing in earnings of $ 300 million. 2007-08 > 3,000002007-08 > 3,00000

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    Predicted growth ofPredicted growth of

    medical tourism inmedical tourism inIndiaIndia

    2007 2012 2017 2022

    By 2012 India is likely to become the top medical destination

    Source: CII

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    Customer Relationship Management

    Customer Relationship Management (CRM) is a method for an organization totrack, maintain and organize a database of its current and prospective customers.

    In the healthcare sector, there is a wide difference between the customer andconsumer.

    Hence there is a series of relationships that need to be nurtured and managed toenhance patient retention.

    CRM is increasingly applied in the healthcare industry in the following way:

    CRM goes long way in building patient confidence and goodwill, and hence it becomes adeciding factor for patient while choosing a hospital again. Hence customer service isone of the major drivers of repeat business.

    In a active CRM programme it is necessary to train every member of the hospital inproviding quality care and service to the patient . It plays important role in retaining thepatient.

    The cost of efforts undertaken to retain a customer is ten times lesser than that ofacquiring a new one.

    Today health care has become global. India has growing number of internationalpatients and more and more hospitals are rushing to upgrade their services.

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    Application of CRMCRM has now evolved into a science which has been used very

    effectively and productively to enhance the efficiency ofvarious sectors such as the banking industry.

    Multi-channel

    Integration

    Customer

    Marketing

    Customer

    Analysis

    Customer

    Care

    Credit Cards,

    Insurance Schemes

    Customer

    profitability,

    Propensity to busy,

    Attrition behaviors

    Collection&

    Integration ofCustomer

    data

    CustomerDelight

    &Retention

    Analysis&

    ApplicationOf this date toprovide quality

    Service tocustomers

    Application of CRM

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    17 22 29

    Total Current andProjected Growth in HigherEducation Enrollment (Mn)

    Enrollmentin HigherEducation

    GER21%

    22

    GER

    17%GER13%

    Education Industry

    The enrollment in higher educationis currently at 17 Mn at a GrossEnrollment Ratio (GER) of 13%.Enrollment are projected to grow ata CAGR of 5.6%, reaching 22 Mnby the year 2013 and 29 Mn by the

    year 2018.

    As per these estimates, 12 Mnadditional seats in the highereducation would need to be createdby the year 2018 as shown in the

    Exhibit 2.

    The cost per seat in a regular higher education institution is UD%$ 8300.Therefore, the total investment that India required for higher education alonewould be US$100 Bn.

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    0

    1 0 0

    2 0 0

    3 0 0

    4 0 0

    2 0 0 8 2 0 1 3 2 0 1 8

    1 4 - 1 8

    1 1 - 1 4

    6 - 1 1

    Total Current and ProjectedGrowth in K-12 Enrollment(Mn)

    AgeGroup

    147

    72

    97

    158

    171

    80

    10097

    74

    Currently, the total number ofstudents enrolled in K-12schools in the country is 317Mn and expected to grow to328 Mn by 2013 and further to351 Mn by year 2018.

    Clearly, India will need to addat least 34 Mn additional seatsin K-12 segment in the next 10years to cater to the educationneeds of its continuouslygrowing population, as shownin the Exhibit 1.

    The cost per additional seat, at a conservative estimate is US$ 2400(cost of land included at US$ 1 Mn per acre). This translates into aminimum investment requirement of US$ 80 Bn of investment over the

    nest 10 years to establish these 34 Mn seats.

    Total Current and Projected Growth in K-12

    Enrollment

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    Parameters Health &

    Beauty

    Counseling English

    Speaking

    No. of Students 1380 560 1180

    Capex- 1 Centre (US$) 195,800 133,333 100,000

    Cost Per Seat (US$) 145 240 84

    Vocational Streams of Education

    The vocational education and training landscape of India is extremelyunderdeveloped. India currently has 5,500 industrial training institutes and1,745 polytechnics as compared to 500,000 similar institutes in China. Thisinfrastructure cater to only 2.5 Mn people annually. There are 175 trade trainingprograms in India as compared to 1,500 in the USA. Clearly there is apronounced skill gap in terms of both quality and quality in thecountry.

    As estimated 85-90 Mn people with vocational skills would be requited invarious sectors between 2008-2013. According to industry sources, the split ofpeople intake sector-wise over the next 5 years will be 44.8% from the servicesector, 31.2% from agriculture and 12.6% from manufacturing.

    Cost per seat will very vary significantly in this segment depending on thelocation, scale, positioning of training service and investment by private players

    Cost per Seat Estimation in Few Vocational Streams of Education

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    INFRASTRUCTURE FORINFRASTRUCTURE FOR

    TOURISM-WHAT DOES ITTOURISM-WHAT DOES IT

    INDICATEINDICATEAdequate AccommodationAdequate Accommodation

    Road infrastructureRoad infrastructure

    Air connectivityAir connectivity

    Basic amenities at tourist centresBasic amenities at tourist centres

    Developed tourism circuitsDeveloped tourism circuits

    Adventure TourismAdventure Tourism

    Tourist trainsTourist trains

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    Benefits of tourismBenefits of tourism

    Employment generator.Employment generator.

    Low Capital Investment in the trade.Low Capital Investment in the trade.

    Imports earn foreign exchange.Imports earn foreign exchange.Cultural revival/ regenerationCultural revival/ regeneration

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    SWOT ANALYSISSWOT ANALYSIS

    StrengthsStrengths WeaknessWeakness OpportunitiesOpportunities ThreatsThreats

    DIFFERENTDIFFERENTVARIANTS OFVARIANTS OFTOURISMTOURISM

    INTERNATIONALINTERNATIONALCOOPERATIONCOOPERATION

    AVERAGE LENGTHAVERAGE LENGTHOF STAYOF STAY

    INADEQUATEINADEQUATEINFRASTRUCTUREINFRASTRUCTURE

    ACCOMADATIONACCOMADATION

    BASIC AMENITIESBASIC AMENITIESLACK OFLACK OFPROFESSIONALPROFESSIONALMANAGEMENTMANAGEMENT

    FASTFASTEXPANSIONSEXPANSIONS

    RAPIDLYRAPIDLY

    GROWING MIDDLEGROWING MIDDLECLASSCLASS

    TERRORISMTERRORISM

    RECESSIONRECESSION

    INFLATION/INFLATION/

    DEFLATIONDEFLATION

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    CONCLUSIONSCONCLUSIONS

    Tourism is one of the main driver of economicTourism is one of the main driver of economicgrowth/employment generation in India.growth/employment generation in India.

    It has the potential of addressing issues such as ruralIt has the potential of addressing issues such as rural

    poverty, strengthening the economic status of the ruralpoverty, strengthening the economic status of the ruralartisans, earning forex etc.artisans, earning forex etc.

    India has the potential to become a global healthIndia has the potential to become a global healthdestinationdestination

    It is necessary to create the right environment to attractIt is necessary to create the right environment to attractFDI by establishing progressive legal-institutionalFDI by establishing progressive legal-institutionalframework and facilitating organizationsframework and facilitating organizations

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    THANK YOU