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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