10 Tourism development strategy xi plan

1

Tour Guiding Series

Thursday, May 12, 2011 Dr. Nimit Chowdhary

1

India tourism Development StrategyXI plan

Dr. Nimit ChowdharyProfessor

Indian Institute of Tourism and Travel Management

Tour Guiding Series


2

Tourist buysAdvice, information, sales knowledge, ease of booking, price, etc.

Tourist prepares for visitVisa, internet, information, etc.

Promise promotedImage, sounds, language, etc.

Tourist travels and arrivesAirport, airline, immigration, forex, transfers and transport, etc.

Tourist returnsAirport, taxes, CRM, regular communication, etc.

Tourist experiencesAttractions, service levels, shopping, accommodation, food, friendliness, roads, transport, infrastructure, safety, environment, etc.

Tourism supply chain

Tour Guiding Series


3

Tourism system

2

Tour Guiding Series


4

X plan performance

• Two pronged approached– Upgrading tourism infrastructure– Aggressive marketing under “Incredible India”

banner• Four pronged journey

– From non-awareness to awareness– From awareness to interest– From interest to desire– From desire to final action (e.g., booking a

holiday)

Tour Guiding Series


5

X plan performance

• Growth of 78% in foreign tourist arrival and growth of 122% in FE earnings

• Share of India in foreign arrivals was 0.37% in 2001 and was expected to be 0.53% in 2006.

• Additional 12.5 million jobs have been created in tourism sector in India during the plan period.

Tour Guiding Series


6

Targets for XI plan

A. International tourism– Visitations

To achieve international visitor level of 10 million by 2011

– Source marketsPrincipal source markets to include South Africa, Israel, Spain, China, Japan, South Korea, Australia, Brazil, Argentina, etc.

3

Tour Guiding Series


7

Targets for XI plan

A. International tourism– Source markets

To concentrate on countries with large Indian diasporas- Fiji, Mauritius, SA, Kenya, Malaysia, etc.Target “Baby Boomers” group in Europe and North America

• Visiting oldest civilization of the world• Plurality of cultures

Tour Guiding Series


8

Targets for XI plan

A. International tourism– Revenues

• To maintain and increase per capita spending of international visitors

• To attract higher quality tourists and increasing per head spending

• To concentrate on cruise tourism, MICE sector-which are considered higher revenue generating sectors

Tour Guiding Series


9

Targets for XI plan

A. International tourism– Seasonality

• To reduce seasonality in international arrival by targeting markets such as Australia, Spain, etc.

• Ensure that drop in arrivals during lean season in not more that 15% of annual average

– Average length of stay• Ensure that duration of stay is sustained if

not extended

4

Tour Guiding Series


10

Targets for XI plan

A. International tourism– Purpose of visit

• To retain focus on Leisure travelers• To promote business related travel, including

MICE market by promoting convention centers of international standards in major cities

– Expenditure• To increase expenditure on shopping and other

non-accommodation, non-transportation heads, to match international benchmark of 30%

Tour Guiding Series


11

Targets for XI plan

B. Domestic tourism– Visitations

• To achieve 760 m for domestic tourist visits by 2011 at an annual growth rate of 12%

• To complement international travel with domestic travel in order that seasonality is eliminated

• To promote greater dispersal of domestic visitations in order to spread the benefits of tourism to all areas

Tour Guiding Series


12

Targets for XI plan

C. Other goals• To increase approved quality accommodation

units from current level of 1,00,000 to at least 2,00,000 by 2011.

• To setup hotels on surplus lands with AAI near international airports as per the international practices

• Promote development of budget hotels at surplus Railway Land at specified Rly. St.

• To create land banks in centre and states and encourage single window facility for investors in tourism products

5

Tour Guiding Series


13

Strategy for tourism development

• Positioning and maintaining tourism development as a national priority activity– Provide effective linkages and close

coordination between various Departments and Ministries of Government

– Plan and implement a professionally managed integrated communication strategy to increase awareness and about tourism and its social and economic impacts

Tour Guiding Series


14


• Enhancing and maintaining competitiveness of India as a tourist destination– Take effective steps for easier and faster

availability of visas– Increasing air connectivity and seat capacity

from major overseas markets– Improving facilities and quality of services at

major international and domestic airports

Tour Guiding Series


15


• Enhancing and maintaining competitiveness of India as a tourist destination– Rationalization of taxes– Removing restrictions like RAP/PAP/ILP

6

Tour Guiding Series


16


• Improving India’s existing tourism products further and expanding these to meet new market requirements– Develop sustainable beach, coastal and

cruise tourism;– Package and market India’s wide variety of

traditional cuisines – Encourage adventure and rural tourism

Tour Guiding Series


17


• Improving India’s existing tourism products further and expanding these to meet new market requirements– Develop and promote round-the-year tourism– Pursue medical tourism vigorously– Take advantage of MICE segment

Tour Guiding Series


18


• Creation of world class infrastructure– Identify travel circuits for development as

international standard destinations;– Construction and improvement of highways

for good connectivity with tourist destinations– Introduction of special tourist trains,

establishment of budget hotels on surplus land available with railways and AAI

7

Tour Guiding Series


19


• Developing strategies for sustained and effective marketing plans and programmes:– Maintain and develop the Indiatourism brand

position established with the “Incredible India” campaign

– Continuous market research on major source markets to receive, analyse and respond to information on pricing, security issues, health, safety and quality of tourism

Tour Guiding Series


20


• Developing strategies for sustained and effective marketing plans and programmes:– Making use of various technological tools,

including internet for advertising for greater and wider impact

– Further encourage e-commerce portals to extend effective marketing support to small and medium enterprises and also offer competitive packages