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Nepal Tourism Board


Tourist Service Center P.O.Box: 11018, Bhrikuti Mandap, Kathmandu Tel: 977 1 4256909, Fax: 977 1 4256910 Email: info@ntb.org.np

Regional Office
Pardi, Pokhara, Tel: 977 61 465292 Email: pntb@wlink.com.np

Tourist Information Centre


Tribhuvan International Airport Tel: 977 1 2061011 Email: airport@ntb.org.np

Concept and Design Research, Planning and Monitoring Department

As part of Nepal Tourism Boards annual programme, Nepal Tourism Board has commissioned a research on India Consumer Outbound to Falcon Infocomm Pvt. Ltd., a Delhi based public relations and research consultant. The main aim of the research is to gauge the market dynamics in the Indian outbound tourism that will help chalk out strategies to Nepal Tourism Board and tourism entrepreneurs in Nepal.

Nepal Tourism Board 2010

India Tourism Outbound Nepal Perspective

2010

Executive Summary
1. 2. The rapid growth of Indian Economy has resulted in manifold changes in the way Indian Tourist travels. The Indian Tourist is now well informed and is travelling much more than ever before. With increased wealth, Indian Middle Class is emerging as the largest number generator. Indian Tourist does not consider Nepal as a low end International destination any more. Singapore, Malaysia and Thailand now occupy these slots. Nepal needs to position itself as a travel destination competing against Indian Domestic Travel destinations such as Nainital, Mussoorie and Agra. These destinations have very high domestic travel movements and include aspirational travelers who could be converted into travelling to Nepal. Indian Tourist is still apprehensive about security concerns in Nepal. Nepal should focus on promotions in secondary cities as this shall help in higher numbers and lower acquisition cost per traveler. Vernacular language promotion mediums should also be considered. There is a need for one consolidated promotion strategy which should include Nepal Tourism Industry and Indian Tourism Industry where Nepal Tourism Board can play role of a facilitator.

3.

4.

5. 6.

7.

Contents

CHAPTER
Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Why India Matters? Overview on Indian Economy, Tourism Development and Creation of Wealth in the Last Decade Indian Tourism Industry An Outlook Domestic Tourism in India Current Trends and Information on Key Outbound Destinations which are Competitive to Nepal Including Singapore, Thailand and Malaysia Consumer Characteristics, Outbound, Major Tourism Players of Focus Areas- Delhi and Surroundings and Mumbai and Surroundings Suggestions on Market Segmentation with Special Reference to Nepal Suggestions on Marketing Strategy, Policies and Programs for Nepal Tourism Board to Attract Indian Tourists Recommendations & Guidelines for Nepal Tourism Board Annual Promotion Plan 2010/11 9 13 23 35 59 75 85 91 105

ANNEX
Annex I Annex II Annex III Annex IV Annex V Annex VI Annex VII The Trends in Information, Communication and Technology in Tourism Development The Commonwealth Games 2010 Foreign Direct Investment (FDI) in Indian Tourism Role of Bollywood and International Tourism Boards References Research Questionnaires Responses to Queries Made during Presentation at Kathmandu, Nepal on 25th October 2009 106 109 111 113 115 118 120

Contents
TABLES
Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Table 18 Table 19 Table 20 Table 21 Table 22 Table 23 Table 24 Table 25 Table 26 Arrivals from India, 2000-2007 Detail Budget for the Year 2008-2010 Foreign Tourist Arrivals and Foreign Exchange Earnings Important Facts about Tourism - 2008 Number of Indian National Departure from India 1996-2008 Destination-wise Indian Nationals Outbound Travel, 2000-2006 Number of Domestic Tourist Visits to all States/UTs in India, 1996-2008 State/UT Domestic and Foreign Tourist Visits, 2005-2007 Percentage Shares and Ranks of Different States/ UTs in Domestic and Foreign Touris Visits during 2007 Share of Top 10 States/UTs of India in Number of Domestic Tourist Visits in 2008 Domestics and Foreign Visitors at 10 Most Popular Centrally Protected Ticketed ASI Monuments During 2007 Sources of Religious Tourists Indians Keep the Faith: Religious Tourism Booms in India Singapores India-Promotion Plan Socio-economic Parameters of Delhi and Mumbai Affluence Index of Delhi and Mumbai Outbound Movements from Indian Cities International Travel Matrix Characteristics of Family Holidays Characteristics of Young and Restless Characteristics of Young Working Couples Characteristics of Middle Age Consumers Characteristics of Religious Groups Characteristics of Retired and Leisure Holiday Makers Budget Activities Suggested Activities 10 21 27 29 30 32 39 40 41 43 44 53 53 61 77 78 80 83 87 88 88 89 89 90 101 105

FIGURES
Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Figure 8 Figure 9 Figure 10 International Tourist Arrivals from India by Destination Region, 2006 (%) Consumption by the Middle Class Indias Growing Middle Class Number of Indian National Departures from India, 1996-2008 Number of Domestic Tourist Visits to all States/UTs in India, 1996-2008 Percentage Share of Top 10 States/UTs in Domestic Tourist Visits in 2008 Tourism Supply Chain Supply Chain and Tourism Volume Tourism Leverage Points Factors Influencing Visitor Behaviour 9 15 16 31 39 43 91 92 93 96

ABBREVIATIONS
ASI BSE CFA CRM ERP FCI FTA FEE GDP GSS IIP ITES LCC MoT MICE MTPB NCR NTB STB PPPs TAT TSA USD UT VFR Archeological Survey of India Bombay Stock Exchange Central Financial Assistance Customer Relationship Management Enterprise Resource Planning Food Craft Institute Foreign Tourist Arrivals Foreign Exchange Earnings gross domestic product Great Singapore Sale Indian Industrial Production Information Technology Enabled Services Low Cost Carrier Ministry of Tourism Meetings, Incentives, Conventions and Exhibitions Malaysia Tourism Promotion Board National Capital Region of Delhi Nepal Tourism Board Singapore Tourism Board Public-Private Partnerships Tourism Authority of Thailand Tourism Satellite Accounting United States Dollar Union Territory Visiting Friends and Relatives

India Tourism Outbound Nepal Perspective 2010

Chapter 1

Why India Matters?


India is one of the fastest-growing outbound travel markets in the world. With more than 1.1 billion inhabitants and GDP increasing by more than 8% every year, the country offers enormous potential for future growth in outbound travel. The robust economic growth and impressive developments in Indian tourism in recent years have brought the country as a major force in the world tourism market both for inbound and outbound tourism. According to World Tourism Organisation (UNWTO), in 2007 the total number of tourist arrivals to India was 5 million and the number of outbound trips by Indian nationals increased by 17% over 2006 reaching an estimated 9.8 million. Thus, outbound tourism has already overtaken inbound tourism during the same period and is expected to expand further in the coming years. The average annual growth rate in terms of number of international trips made by Indians during the period 2000-2007 was 11%. The UNWTO has predicted that by 2020 India will account for 50 million outbound tourists, continuing to maintain its growth momentum. According to 2006 data, the main destinations for Indian outbound are Asia and Europe, accounting for 64% and 20% of the total outbound travel from India respectively. In Asia, Southeast Asia has the largest share of the international tourist arrivals from India as shown in figure 1.

FIGURE 1. International Tourist Arrivals from India by Destination Region, 2006 (%)
Australia/ a Afric Oceania

cas eri m A

20

Europe

Asia

64
Source: Netherlands Board of Tourism and Convention, India Market Scan 2006, July 2006, cited in UNWTO, 2006

India Tourism Outbound Nepal Perspective 2010

Chapter 1

Why India Matters?

As shown in Table 1 indicates that the top five destinations for Indian arrivals are Singapore, Bahrain, Thailand, United States of America and China.

TABLE 1. Arrivals from India, 2000-2007


Destination Series 2000 Singapore Bahrain Thailand United States China Dubai, United Arab Emirates United Kingdom Saudi Arabia Hong Kong, China Malaysia Qatar Sri Lanka Oman
Source: UNWTO, 2009

Number of arrivals (1,000) 2001 340 247 206 270 159 218 189 313 162 144 60 34 62 2002 376 313 253 257 214 300 205 374 194 183 108 70 72 2003 309 351 230 272 219 325 199 363 178 145 127 91 83 2004 471 419 300 309 309 349 255 474 244 173 146 105 106 2005 584 467 353 345 356 358 269 117 273 226 159 113 116 2006 659 590 430 407 405 389 367 345 294 279 181 128 111 411 336 613 205 422 506 2007 749

Change (%).. 2006/ 2005 12.9 26.4 21.8 18.0 13.6 8.8 36.3 195.0 7.5 23.6 13.4 13.3 4.8

AAGR (%).. 20002006. 14.3 17.3 15.5 9.0 26.0 10.6 11.4 16.3 39.0 22.1 14.8

VF TF TF TF TF THS VF TF TF VF THS TF THS

346 214 203 274 121 215 206 294 131 132 62 32 52

TF = tourist arrivals at frontiers; VF = visitor arrivals at frontiers; TCE = tourist arrivals at all accommodation establishments; THS = tourist arrivals at hotels and similar establishments

Not only Indian tourists are important in terms of quantity also they are also recognized as having high propensity to spend during their travel. According to the UNWTO in 2007, international tourism expenditure by Indians grew by 20% over 2006 reaching an estimated figure of US$ 8.2 billion. On an average, Indians spent US $ 838 per trip overseas in 2007. Indian outbound to Nepal constitutes very negligible part while for Nepal in terms of arrivals it is the biggest source market. In 2008 and 2007 the share of Indian tourist arrivals to Nepal was 18.2%. However, this percentage represents Indian tourists arriving in Nepal by air only. Therefore, it is realized that there is a need for a strategic report on India in order to tap growing Indian tourism market as it is one of the most important segments when it comes to tourist inflow in Nepal. A strategic report provides expertise and helps gain a greater visibility into operations, markets and competition.

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Purpose of the Study


The India Market report aims to provide clear insight and shall help in planning and coming up with solutions, enhancements or support for existing system. It shall also help Nepal in remaining on top of competition, zoom from a macro level to granular detail and the data shall help get better insight. It will also strive to bridge the gap and look at every possible way to make a clear goal and develop an action plan when it comes to tourism promotion activities. This is particularly captured by the topics covered in the following chapters, exploring issues such as the impact of recession on the tourism industry, the importance of price competitiveness for attracting tourists and the extent to which the Index explains differences in travel intensity between countries, trends used to promote destinations, consumer lifestyle, economy, demographic and geographic impacts etc giving a detailed insight into understanding the target customers and how to reach them. The report also notes some of the main qualitative trends seen in the industry in the form of increased market segmentation, the development of new forms of tourism especially those related to nature and wildlife, rural areas, culture. Also how such programmes are influencing traditional package tours as the tourists are increasingly becoming selective about destinations and are demanding higher quality products and services. Hence there is a need to understand and provide a product which appeals to them. An economy has the potential to enhance lives in a sustainable framework through providing wealth creation, choice, innovation and competition. The travel and tourism industry contains these four elements that enable it to be a dynamic market force for sustainability in the future and economic growth. It is hoped that the report will help serve the purposes.

Research Methodology
The report was a combination of desk research, interviews with the travel trade, and discussions with Tourism Boards. It went to following processes: Analysis of current state of affairs based upon various data available. Interactive discussions with Travel agents and Incentive houses in the focus areas and understanding their viewpoints. Interactive discussions with other stakeholders in India such as airlines, travel trade associations etc. Informal discussions with Tourism Boards of Singapore, Malaysia and Thailand

A comprehensive survey was also conducted to take feedback from the Tourism Industry and the process of survey included: Telephonic discussions Feedback with travel agents during India Sales Missions Consumer feedback during consumer promotion events done in June 2009.

The Report aims support the informed decision making process and would help develop strategies for the target audience and make better plans for achieving a higher number of tourist inflow which should culminate in an overwhelming success of the Nepal Tourism Year 2011.

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Chapter 1

Why India Matters?

Proposed Benefit to the Readers


The Report aims to support the informed decision making process and would help develop strategies for the target audience and make better plans for achieving a higher number of tourist inflow which should culminate in an overwhelming success of the Nepal Tourism Year 2011.

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Chapter 2

Overview on Indian Economy, Tourism Development and Creation of Wealth in the Last Decade Indian Economy A Review
Indian economy has been growing at a fast pace since the economic liberalization of 1991. This situation was quite different in the earlier years of Indias Independence. Growth of decadal averages was roughly constant at around 5.6-5.9 per cent in the first five decades after Independence. Indian economy witnessed near stagnation in real GDP growth in the 1970s. (Assocham Research Bureau. 2008) The slowdown of growth witnessed during the 1970s was reversed during the 1980s, the pick-up benefited from the initiation of some reform measures aimed at increasing domestic competitiveness. Since the early 1990s, growth impulses appeared to have gathered further momentum in the aftermath of comprehensive reforms encompassing the various sectors of the economy. Indian economy has become much more integrated with the world economy now than the pre-reform period. Liberalization in industry, investment, foreign trade, financial sector and capital flows that was undertaken after the balance of payment crisis in early 1990s led to India becoming well integrated with the world economy. There was some loss of the growth momentum in the latter half of the 1990s which coincided with the onset of the East Asian financial crisis, setbacks to the fiscal correction process, quality of fiscal adjustment, slowdown in agriculture growth affected by lower than normal monsoon years, and some slackening in the pace of structural reforms. The slowdown could also be attributed to the excessive enthusiasm and optimism in regard to investment plans in domestic industry following deregulation, which was followed by significant problems experienced in viability and competitiveness. Monetary tightening in the face of inflationary pressures is also believed by some to have contributed to the slowdown over this period. Total trade flows (receipts and payments on merchandise and invisibles), as a proportion of GDP, rose from 20 per cent to 53 per cent during the period 1990-91 to 2007-08. Capital flows (inflows plus outflows) had been just 12 per cent of GDP in 1990-91, and in 2007-08 they rose to 64 per cent of GDP. Interestingly, these ratios are significantly higher than those in the US for which in 2007 trade in goods and services constituted a lower 41 per cent of GDP and capital flows were only 25 per cent of the GDP in that year. (ICRIER, 2009) Since 2003-04, there has been a distinct strengthening of the growth momentum. Restructuring measures by domestic industry, overall reduction in domestic interest rates, both nominal and real, improved corporate profitability, favourable investment climate amidst strong global demand and rules-based fiscal policy have led to the real GDP growth averaging close to 9 per cent per annum over the 6 year period, ending 2008-09. The higher order of investment activity in the country over the past few years has also been mirrored in strong demand for credit from the banking sector since 2003-04 onwards. In this context, reforms in the financial sector have played a key role. Financial sector reforms, initiated in the early 1990s, encompassed introduction of auctions in government securities, deregulation of interest rates and reduction in statutory pre-emption of institutional resources by the Government was carried forward with the phasing out of the system of automatic monetization of fiscal deficits from 1997-98. These measures along with developments 13

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Overview on Indian Economy, Tourism Development and Creation of Wealth in the Last Decade

in the Government securities market, by making the yield market-determined, formed the backbone of financial market reforms. Apart from making the interest rates largely market determined, reforms included a market-determined exchange rate, current account convertibility, substantial capital account epitomized and deregulation of the equity market. The financial sector reforms designed to improve cost efficiency through price signals, in turn, facilitated the conduct of monetary policy through indirect market-based instruments through improved fiscalmonetary coordination. This process was further strengthened through the implementation of the FRBM (Fiscal Responsibility and Budget Management) Act, 2003, under which the Central Government targets to eliminate the revenue deficit and reduce its fiscal deficit to 3 per cent of GDP by 2008-09 and the Reserve Bank was prohibited from participating in the primary government securities market from April 2006. Overall, these reforms have led to better price discovery in both interest rates and exchange rate, thereby contributing to overall efficiency in financial intermediation. Public investment has started increasing since 2003-04, reversing a long-period of declining trend that began in mid-1980s. Since 2003-04, private investment has also witnessed a significant rise. India had been growing robustly at an annual average rate of 8.8 per cent for the past five years (2003-04 to 2007-08). This was higher than the potential growth rate of output as estimated both by the IMF and OECD. The strong Indian growth story, based on its structural strengths of a young population, skilled manpower, rising savings and investment rates, large unfulfilled domestic demand and globally competitive firms attracted significant investor attention in recent years. Recent high rates of economic growth have been the result of high levels of investment, rise in productivity supported by technological up-gradation and greater integration with global flows of trade, finance and technology. (ICRIER, 2009)

The Indian Middle Class An Opportunity for Nepal.


According to a report The Bird of Gold: The Rise of Indias Consumer Market, by the year 2025 (The McKinsey Global Institute, 2007). Indias middle class is expected to swell almost 12-fold from its size of 50 million people to over 583 million some 41% of the population. This will trigger explosive growth in the consumer market taking it to $1.5 trillion, making India the worlds fifth-largest consumer economy by 2025. This will have significant implications for the tourism industry as it is a well-recognized axiom that travel is the first priority of an income earner after the basic requirements of home, food and essentials. Thus, as people acquire more disposable income, the demand for travel and tourism will grow exponentially. Moreover, there will be more such people with disposable incomes as the demographic transition in the country would produce a huge surge in people in the 20-60 years age group. Domestic tourism, thus, poses many opportunities for the tourism industry and meeting the needs of the expanding middle class will be the key to it. The middle class cherish family ideals and values and invest in products that ensure upward mobility of the family and longevity of economic success through transfer to generation next. Children get first priority on the budget and this has empowered them to emerge as main influencers on family purchases such as mobile phones, TVs, music systems, computers and even cars. A study commissioned by Cartoon Network some years ago measured the `pester power the influence children have on purchase decisions of Indian kids as substantial (close to 40%) and growing. Indias growing middle class has also given rise to an economically comfortable retired pensioner who, having completed the family responsibilities, is free to spend on travel, mirroring the trend of other developed nations. By the year 2025, the above 60 years of age group in Indias age pyramid is also going to increase. Moreover, travel by railways and air is cheaper for senior citizens because of concessions all these factors 14

Chapter 2
FIGURE 2. Consumption by the Middle Class
Share of total consumption by income bracket
%, billion, Indian rupees, 2000
6,679 2 0 6 15 10,098 1 5 8 15,896 7 6 12 32 35 51 77 54 36 35 34,089 12 20 8 69,503

Household income bracket


thousand, Indian rupees, 2000

100%

Globals (>1,000)

24

Strivers (500-1,000) Middle class Seekers (200-500)

24 10 1985 1995 2005E 2015F

17 3 2025F

Aspirers (90-200) Deprived (<90)

Note: Figures are rounded to the nearest integer and may not add up to 100% Source: MGI India Consumer Demand Model , v1.0

will facilitate domestic tourism and the same is applicable for Nepal due its close proximity and cultural similarities. This should be Nepal target segment.

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Distribution of Indian Households

FIGURE 3. Indias Growing Middle Class


The middle class in India is on the rise: the number of households with an annual income of between 2,000 and 4,999 US dollars is increasing continuously. The average household in India consists of 5.5 people.*
90 77 54 32 10 75 75 80

47

50

1995
A total of 164 million households

2005
A total of 200 million households

2015
A total of 230 million households

Households in millions Well-off households: annual income of more than 5,000 US dollars. Households that can afford a few luxuries (spenders): annual income between 2,000 and 4,999 US dollars. Up-and-coming households (aspirers): annual income between 1,000 and 1,999 US dollars Lo-income households: annual income of less than 1,000 US dollars
* Household incomes are not inflation-adjusted Source: IGD

Economic Growth and Tourism in India


Tourism has been a major social phenomenon of the societies all along. It is motivated by the natural urge of every human being for new experience, adventure, education and entertainment. The motivations for tourism also include social, religious and business interests. The spread of education has fostered a desire to know more about different parts of the globe. The basic human thirst for new experience and knowledge has become stronger, as communication barriers are getting overcome by technological advances. Progress in air transport and development of tourist facilities have encouraged people to venture out to the foreign lands. Tourisms importance, as an instrument for economic development and employment generation, particularly in remote and backward areas, has been well recognized the world over. It is the largest service industry globally in terms of gross revenue as well as foreign exchange earnings. Tourism can play an important and effective role in achieving the growth with equity objectives which India has set for itself. Tourism is one economic sector in India that has the potential to grow at a high rate and can ensure consequential development of the infrastructure of the destinations. It has the capacity to capitalize on the countrys success in the services sector and provide sustainable models of growth.

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It has the potential to stimulate other economic sectors through its backward and forward linkages and cross-sectoral synergies with sectors like agriculture, horticulture, poultry, handicrafts, transport, construction, etc. Expenditure on tourism induces a chain of transactions requiring supply of goods and services from these related sectors. The consumption demand, emanating from tourist expenditure, also induces more employment and generates a multiplier effect on the economy. As a result, additional income and employment opportunities are generated through such linkages. Thus, the expansion of the tourism sector can lead to large scale employment generation and poverty alleviation. The growth in the tourism sector emerged as a very important contribution to the national economy and contributed quite a lot for employment generation in various tourism related activities. The indirect employment multiplier in the case of tourism is fairly high and is estimated as 2.36 which implies that direct employment of one person in the tourism sector creates employment to 1.36 persons in other sectors of the economy due to linkages with tourism .These linkages are in the sectors like agriculture horticulture, poultry, handicrafts, construction, sports etc. Further these directly/indirectly employed following the development of tourism may also need more goods & services as a result of such employment than what they would have demanded otherwise. Additional demand will thus generate more employment and further multiplier effect will come into force through successive chain of transactions. In fact investment in tourism has the potential to create more jobs compared to many other sectors and all the more at a lower level of investment. The labour/capital ratio is very favorable in tourism sector compared to many other industries with 47.5 jobs for a million rupee investment as has been seen in the survey conducted by the Ministry of Tourism (MoT), government of India (Kanjilal, 2006). Tourism is now recognized for its contribution to create job for large number of women. This empowerment of women which is being focused by the successive governments is achieved through tourism projects more positively. Both educated & uneducated women are now involved in tourism related activities. Women are effective in tourism business with their mental attitude for service and care and upbringing since their childhood especially in hospitality industry. Now in India, more women are in hotel, travel, airlines services, handicrafts making, cultural & entertainment events, etc. and are now better integrated in the national developmental programme through tourism activities. With this double income in the family, the standard of living in the families has improved. Better education of children, improved health care, and better exposure through interaction and thus a general improved scene in the women force which was earlier very restricted to move beyond their house limit. The economic benefits that flow into the economy through growth of tourism in shape of increased national and State revenues, business receipts, employment, wages and salary income, buoyancy in Central, State and local tax receipts can contribute towards overall socio-economic improvement and accelerated growth in the economy. Tourism is overwhelmingly an industry of Private sector service providers, although the public sector has a significant role to play in infrastructure areas either directly or through publicprivate partnerships (PPPs) approach. It is a multi-sectoral activity characterized by multiple services provided by a range of suppliers. It is quite similar to manufacturing industry, where the supply chain is as important as the end product. The related sectors include airlines, surface transport, hotels, basic infrastructure and facilitation systems, etc. Thus, the growth of tourism cannot be attained unless the issues related to all the sectors are addressed simultaneously. Another important feature of the tourism industry, which is of particular significance to India, is its contribution to national integration and preservation of natural as well as cultural environments and enrichment of the social and cultural lives of people. Over 382 million domestic tourists visiting different parts of the country every year return with a better understanding of the people living in different regions of the country. They have a better appreciation of the cultural diversity of India. Tourism also encourages preservation of monuments and heritage properties and helps the survival of arts forms, crafts and culture.

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It is also important to note that tourism has become an instrument for sustainable human development including: Poverty alleviation Environmental regeneration Job creation Advancement of women and other disadvantaged groups.

Size of Global Tourism


According to the World Tourism Organisation (WTO), the year 2008 saw more than 922 million international tourist arrivals, and the tourism receipts were of the order of US $ 944 billion. The World Travel and Tourism Council (WTTC) for 2009 forecasts that the contribution of the Travel & Tourism economy to total employment is expected to rise from 219,810,000 jobs in 2009, 8.4% of total employment or in 1 in every 11.8 jobs by 2019. Gross Domestic Product (GDP) is expected to rise from 9.4% (US$5,474 billion) in 2009 to 9.5% (US$10,478 billion) by 2019. However Real GDP growth for the Travel & Tourism economy is expected to be -3.5% in 2009, down from 1.0% in 2008, but to average 4.0% per annum over the coming 10 years with export earnings from international visitors and tourism goods are expected to generate 10.9% of total exports (US$1,980 billion) in 2009, growing (in nominal terms) to US$4,132 billion (9.8% of the total) in 2019. (World Travel & Tourism Council, 2009)

Size of India Tourism


There has been a remarkable growth over the years in foreign tourist arrival to India due to the various efforts made, including promoting India through the Incredible India campaign in overseas markets. This global campaign had attracted the attention of tourism industry observers as well as tourists. Foreign tourist arrivals (FTAs) in India increased from 2.73m in 2002 to 5.37m in 2008. The foreign exchange earnings (FEE) from the tourism sector in 2008 were Rs. 50,730 crore, an increase of 14.4 per cent over 2007. (Ministry of Tourism India. 2008) The contribution of the Travel & Tourism economy to employment is expected to rise from 31,105,000 jobs in 2009, 6.4% of total employment or 1 in every 15.6 jobs to 40,037,000 jobs, 7.2% of total employment or 1 in every 13.8 jobs by 2019. Real GDP growth for Travel & Tourism economy is expected to be 0.2% in 2009 and to average 7.7% per annum over the coming 10 years. (World Travel & Tourism Council. 2009.) Though the growth in tourism in India has been impressive, Indias share in global tourist arrivals and earnings is quite insignificant. Indias rank in world tourist arrivals in 2008 was 41. It is universally acknowledged that the tourism resources in the country have the potential to generate significantly higher levels of demand from the domestic and international markets, and, if exploited intelligently in a sustainable manner, can prove to be the proverbial engine of growth for the economy.

The Global Crisis


The financial crisis in the US started in the latter half of 2007, with the so-called sub-prime housing mortgage crisis. As is by now well established, the crisis had its real roots in hugely excessive leveraging by investment and commercial banks, under-pricing of risk and lack of necessary regulatory oversight. The busting of some of the big financial institutions has created an atmosphere of lack of confidence.

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This extraordinary financial crisis has now spread to Europe and Japan and is likely to see most developed economies suffering a prolonged period of recession that could extend beyond 2009 and according to some even beyond 2010. The contagion of this financial crisis has now spread to countries in Asia as the export markets of these countries have virtually collapsed. Exports in major Asian economies have declined by huge amounts. Japan and Taiwan saw a fall in exports of around 35 per cent and 40 per cent respectively in their exports in December 2008. The fallout from a major slowdown in Chinese exports and its GDP growth on South East economies and indeed the rest of the world can be severe and has yet to be factored in to the estimates of global growth for 2009 and 2010. Along with exports, industries in the region have also been affected as can be seen in the shocking contraction of Taiwans industrial production of around 32 per cent in December 2008.

India and the Global Crisis


The Indian economy was slowing down even before the onset of global crisis and hence the timing of this external shock could not have been worse. The Indian economy was on a cyclical slowdown after a five-year record boom and there was every hope that the economy will go for another strong growth phase after this brief slowdown. The global crisis has changed that outlook and instead will deepen and prolong Indian economys slowdown. It has dealt a severe blow to investment sentiments and consumer confidence in the economy With the increased linkage with the world economy, India cannot remain immune to the global crisis. India began to feel the impact of the crisis in January 2008 when the Bombay Stock Exchange (BSE) sensex collapsed after crossing the peak of 20800 in early January 2008. While the Indian economy registered an average growth of 8.8% during the 5 years ending 2007-08, its growth is slacking today because the global economic crisis is getting even deeper than before. Latest IIP numbers for February 2009 shows negative 1.2% growth as against plus 9% growth recorded by the industry in the same month of previous year. The six-core infrastructure industry managed to continue with a positive 2.2% growth, this growth was however much less than the growth number of 7% seen in the previous year. All the constituent sectors except the crude petroleum were seen to post positive growth. The recently adopted measures by the government, including reduction in fuel prices has brought the WPI based inflation under control. The average inflation for February 2009 was 3.45%. However, disaggregated numbers raise concerns over the price rise of the essential commodities like the primary food articles, with the main economic indicators off the growth track the stock markets seems to appear unattractive for the FIIs. The exit from the markets have has an impact on the overall economy as the countrys forex reserves got affected. The Sensex shuttled between 10K and 8K, which is indicative of the continued weakness in markets. Money supply in the economy expanded in February 2009 by 16% and was less by a percent than the growth seen in previous year. The credit off take was on the rise, borrowing by the government and by the commercial sector increased in February 2009. The net foreign exchange assets with the banks turned negative during the month. Growth in the aggregate deposits is maintained compared to the previous year and investments in the government and approved securities decelerated to 22.2% compared to the increase by 24.8% seen in the previous year. The slowdown in tax collection was pronounced since November 2008. In February 2009 gross tax collection rose by 7% compared to 26.7% recorded in the previous year. The low collection rate was on account the low corporate profits and tax concessions and reductions in the stimulus packages announced over time. The total revenue loss due to tax reductions will be 0.2 % of GDP in 2008-09 and 0.5% of GDP in 2009-10. In the

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interim budget for 2009-10 the estimate for 2008-09 fiscal deficits was revised to 6.0 % of GDP as against the budget estimates of 2.5%. Overall trade is in declining state due to dry up in international markets cutting through all sectors. Merchandise exports posted negative growth in straight 5 months starting. October 2008 during 2008-09 compared to the growth numbers of previous year. While several packages for aiding the ailing exports reforms were announced by the government this year however the recent numbers for February 2009 do not endorse any improvement. Foreign direct investment continues to flow and was seen to be slightly impacted due to the global economic concerns. By end of February 2009 foreign direct investment received was USD 5 billion in excess of what was receive a year ago. FDI received so far up to February 2009 was USD 31 billion. The overall investments shrank and were close to USD 18.5 billion when portfolio investments are included. Forex reserves reduced sharply to USD 249 billion in February 2009. The reason of the sharp erosion in the reserves were large outflows in the foreign investments from the equity markets and use of reserves in keeping the Rupee from weakening apart from the valuation effects. The forex reserves maintained in February 2009 are enough for 10 months of import cover. Although it is felt that a further decline may raise concern. The huge outflow in investments increased the dollar demand and exerted pressure on the Rupee to weaken to 52 against the USD. The Central Bank continues its struggle in keeping the rate of exchange below 50 and stable. The average exchange rate against the USD in February 2009 was 49.22. (Investment & Technology Promotion Division. 2009)

Indian Economic Outlook 2009-11


The current global crisis is likely to bring the Indian GDP growth rate down considerably. This will pose a big challenge requiring urgent and sustained policy attention to prevent this downturn from becoming unnecessarily prolonged. There is real downside risk that the growth rate could plummet to the pre-1980s levels if appropriate countercyclical measures are not taken immediately and are not urgently followed by necessary structural reforms. In the recent budget, Rs. 1000 crores has been allocated to tourism and the breakup is highlighted in the table 2.

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TABLE 2. Detail Budget for the Year 2008-2010
A. The Budget allocations, net of recoveries, are given below: (In crores of Rupees) Budget 2008-2009 Major Head Revenue Capital Total 1. Secretariat-Economic Services 3451 Plan 439.00 561.00 1000.00 ... Non-Plan 47.00 ... 47.00 3.45 Total 486.00 561.00 1047.00 3.45 Revised 2008-2009 Plan 439.00 561.00 1000.00 ... Non-Plan 50.53 ... 50.53 3.74 Total 489.53 561.00 1050.53 3.74 Plan 994.00 6.00 1000.00 ... Budget 2009-2010 Non-Plan 70.00 ... 70.00 5.50 Total 1064.00 6.00 1070.00 5.50

Tourism
2. Director General Tourism Direction & Administration 3. Tourist Information & Publicity 3.01. Domestic Campaign 3.02. Overseas Campaign 4. Tourist Infrastructure 3452 3452 3452 Total 3452 3601 3602 5452 Total 3452 3601 Total 3452 25.00 65.00 220.00 285.00 ... ... ... 472.00 472.00 71.00 ... 71.00 47.00 39.64 0.20 ... 0.20 ... ... ... ... ... 0.80 ... 0.80 2.41 64.64 65.20 220.00 285.20 ... ... ... 472.00 472.00 71.80 ... 71.80 49.41 25.00 65.00 220.00 285.00 ... ... ... 472.00 472.00 71.00 ... 71.00 47.00 43.43 0.18 ... 0.18 ... ... ... ... ... 0.72 ... 0.72 2.01 68.43 65.18 220.00 285.18 ... ... ... 472.00 472.00 71.72 ... 71.72 49.01 14.00 54.00 250.00 304.00 125.00 306.00 20.00 6.00 457.00 103.00 3.00 106.00 19.00 50.00 0.20 ... 0.20 ... ... ... ... ... 10.80 ... 10.80 3.00 64.00 54.20 250.00 304.20 125.00 306.00 20.00 6.00 457.00 113.80 3.00 116.80 22.00

5. Training

6. Other expenditure 7. Lumpsum provision for Project/ Scheme for the benefit of NE Region and Sikkim

2552 4552 Total 2075

11.00 89.00 100.00 ... 0. 1000.00 1000.00 Budget

... ... ... 50 43.55 47.00 IEBR

11.00 89.00 100.00 0.50 1043.55 1047.00 Total

11.00 89.00 100.00 ... 1000.00 1000.00 Budget

... ... ... 0.45 46.79 50.53 IEBR

11.00 89.00 100.00 0.45 1046.79 1050.53 Total

100.00 ... 100.00 ... 1000.00 1000.00 Budget

... ... ... 0.50 64.50 70.00 IEBR

100.00 ... 100.00 0.50 1064.50 1070.00 Total

8. Miscellaneous General Services - Loss by exchange Total-Tourism Grand Total C. Plan Layout

Head of

Source: indiabudget.nic.in

The Budget cost heads are defined as follows: 1. Secretariat-Economic Services The provision is for meeting the expenditure on the Secretariat of Ministry of Tourism. 2. Direction & Administration The provision is for meeting the expenditure on the Headquarters Establishment of the Directorate General

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Overview on Indian Economy, Tourism Development and Creation of Wealth in the Last Decade

of Tourism and the regional and field offices under it. Their main activities are dissemination of tourist information, development of tourism infrastructural facilities, regulation of various segments of travel industry such as hotels, travel agents, guides etc. It also includes provision for Information Technology. 3. Tourist Information and Publicity Promotion and Marketing are undertaken through a network of India Tourism Offices located in India and abroad. Besides the regular promotional activities, production of publicity material centralized thematic and generic International/Domestic media campaigns are undertaken regularly in the leading print, electronic, outdoor and web media. Hospitality and special campaigns including Marketing Development Assistance Scheme have been introduced from 2000-01. Under the Scheme stake holders are eligible for drawing assistance for undertaking promotional activities overseas. 4. Tourist Infrastructure This provision relates to the expenditure on creation of Infrastructural facilities on construction of budget accommodation, Wayside amenities, Tourist Reception Centers, refurbishment of monuments, Special Tourism Projects, Adventure and Sports facilities, Sound and Light Shows, Illuminations of monuments, Providing for improvement in solid waste management and sewerage management, improvement of surroundings, Signages, Procurement of equipment directly related to Tourism and Rural Tourism projects etc. This provision also relates to the Large Revenue Generating Projects, generating revenue through levy of fees or user charges like Tourist Trains, Cruise vessels, Cruise terminals, Convention Centre, Golf Courses etc. and creation of land bank for hotels to provide the hotel accommodation in the country by purchasing land and build hotels through Public Private Partnerships. The provision also includes Externally Aided Projects (including UNDP Endogenous Tourism Projects), Assistance to Central agencies for Tourism Infrastructural Development and for Construction of Building of Indian Institute of Skiing and Mountaineering at Gulmarg. 5. Training Trained manpower is an essential feature for the development of tourism in the country. At present there are 35 Institutes of Hotel Management (IHMs) (includes 7 from the Private Sector) and 6 Food Craft Institutes (FCIs), which are following courses of National Council for Hotel Management & Catering Technology (NCHMCT). In addition, Indian Institute of Tourism and Travel Management (IITTM) and the National Institute of Water Sports (NIWS) are other bodies involved in manpower development in tourism. Besides this, regular courses of various durations are conducted for fresh as well as existing service providers including guides, government employees etc., posted at places of tourist interest, airports etc. 6. Other Expenditure This provision is for payment of Interest subsidy as well as Capital subsidy on the loans advanced by the Financial Institutions and to service news scheme of investment subsidy for construction of hotels, market research and contributions to international bodies along with provision for payment of post closing adjustments relating to disinvested India Tourism Development Corporation Hotels signed by parties with the Government of India. 7. Lump-sum Provision for Projects/Schemes for the Benefits of NE Region and Sikkim The availability of diverse tourism products in the North East offers a tremendous scope for the development of tourism in the area. 8. Miscellaneous General Services This represents provision for loss of exchange incurred while remitting funds to Overseas Tourist Offices.

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Indian Tourism Industry An Outlook


India represents one of the most potential tourism markets in the world. A booming economy and an increase in disposable income have led to a massive growth in the number of Indians travelling abroad. The Indian tourism and hospitality industry has thus emerged as one of the key sectors driving the countrys growth, and it is thriving owing to a huge surge in both business and leisure travel by foreign and domestic tourists. India Travel and Tourism is expected to generate approximately Rs. 4 trillion (USD 100 billion) in 2008, rising to Rs 15 trillion (USD 275.5 billion) by 2018 over the next ten years, says the latest Tourism Satellite Accounting (TSA) research released by the World Travel and Tourism Council (WTTC) and its strategic partner Accenture. The results reveal strong performance for travel and tourism demand in India in 2008, growing at 7.3 per cent. The long-term forecasts point to a continued solid phase of growth between 2009 and 2018, averaging at 9.4 per cent per annum. The reports also says that while travel and tourism is expected to contribute 6.1 per cent to Indias national GDP, with no increase in the coming decade, the anticipated growth will create 30.5 million jobs in 2008, 6.4 per cent of total employment, rising to 40 million jobs,7.2 per cent of total employment by 2018.(The Financial Express, 2008) In order to develop tourism in India in a systematic manner, position it as a major engine of economic growth and to harness its direct and multiplier effects for employment and poverty reduction in an environmentally sustainable manner, the National Tourism Policy, broadly attempts to: Position tourism as a major engine of economic growth Harness the direct and multiplier effects of tourism for employment generation, economic development and providing impetus to rural tourism Focus on domestic tourism as a major driver of tourism growth Position India as a global brand to take advantage of the burgeoning global travel trade and the vast untapped potential of India as a destination Acknowledges the critical role of private sector with government working as a pro-active facilitator and catalyst Create and develop integrated tourism circuits based on Indias unique civilization, heritage, and culture in partnership with States, private sector and other agencies Ensure that the tourist to India gets physically invigorated, mentally rejuvenated, culturally enriched, spiritually elevated and feel India from within

Scheme for Product, Infrastructure and Destination Development


The focus under this scheme is on improving the existing products and developing new tourism products to world class standards. For infrastructure and product development, the MoT has been providing Central Financial Assistance to the State Governments during the 9th Five Year Plan which resulted in strengthening of the infrastructure and product development in the country. The scheme has been restructured during the 10th Five Year Plan to meet the present day infrastructure requirements. The past experience had been that a large number of small projects had been funded under the Scheme, spreading the resources very thinly, which at times had not created the desired impact. The focus in the Tenth Plan has been to fund large projects of infrastructure or product development in an integrated manner. Under the revised scheme, the destinations are carefully selected based on the tourism potential. Master planning of these destinations is undertaken so as to develop them in an integrated holistic manner. The
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master plan is supposed to tie up all backward and forward linkages, including environmental considerations. Realizing the importance of destination development, the total outlay for this sector has been increased substantially. Important tourist destinations in each State, in consultation with the State Governments, are taken up for development. This includes activities ranging from preparation of master plans to implementation of the master plans. The destinations are selected in consultation with the State/UT Governments.

Scheme for Integrated Development of Tourist Circuits


Under this Central Financial Assistance scheme the MoT has been extending assistance to States for development of tourism infrastructure. Experience has shown that in the past funds under the CFA have been used to fund a large number of small isolated projects, spread throughout the length and breadth of the country resulting in the resources being spread very thinly. Therefore, in order to provide quick and substantial impact, during the 10th Five Year Plan, this new scheme of Integrated Development of Tourist Circuits has been taken up. The objective of the scheme is to identify tourist circuits in the country on an annual basis, and develop them to international standards. The aim is to provide all infrastructure facilities required by the tourists within these circuits. The MoT aims at convergence of resources and expertise through coordinated action with States/Uts and private sector. Scheme of Assistance for Large Revenue Generating Projects recognized that the development of tourism infrastructure projects requires very large investment that may not be possible out of the budgetary resources of the Government of India alone. In order to remove these shortcomings and to bring in private sector, corporate and institutional resources as well as techno-managerial efficiencies, it is proposed to promote large revenue generating projects for development of tourism infrastructure in public private partnerships and in partnerships with other Government and Semi-Government agencies. Large revenue generating project, which can be admissible for assistance under this scheme, should be a project, which is also a tourist attraction, or used by tourists and generates revenue through a levy of fee or user charges on the visitors. Projects like Tourist trains, Cruise vessels, Cruise Terminals, Convention Centers, and Golf Courses etc. would qualify for assistance. However, this is only an illustrative list. Hotel & Restaurant component will not be eligible for assistance under the scheme either on a stand-alone basis or as an integral part of some other project. Besides hotel & restaurants, procurement of vehicles and sports facilities like stadiums will also not be eligible for assistance under the scheme.

Scheme for Support to Public Private-Partnerships in Infrastructure


Development of infrastructure requires large investments that cannot be undertaken out of public financing alone. Thus, in order to attract private capital as well as techno-managerial efficiencies associated with it, the government is committed to promoting PPPs in infrastructure development. This scheme has been put into effect for providing financial support to bridge the viability gap of infrastructure projects undertaken through PPPs.

Scheme for Market Development Assistance (MDA)


The Marketing Development Assistance Scheme (MDA), administered by the MoT, provides financial support to approved tourism service providers (i.e. hoteliers, travel agents, tour operators, tourist transport operators etc., whose turnover include foreign exchange earnings also) for undertaking the following tourism promotional activities abroad: 24

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Sales-cum-study tour Participation in fairs/exhibitions Publicity through printed material

Recent Initiatives- During the Time of Recession


During 11th Five Year Plan (2007-2012) MoT proposed to continue supporting creation of world class infrastructure in the country so that existing tourism products can be further improved and expanded to meet new market requirements and enhance the competitiveness of India as a tourist destination. In consultation with the State Governments and Uts the MoT have identified several tourist circuits and destinations for integrated development. Some of the important infrastructure projects which have been sanctioned in the recent times are: Heritage Destinations/Circuits MoT has recently sanctioned Rs. 8.00 crore for the project of illumination/lighting of monuments in Rajasthan. The tourist facilities at Sanchi and adjoining tourist places in Madhya Pradesh are being improved at a cost of Rs. 4.64 crore. Tourist Facilitation Centre, Public Amenities, Parking and Landscaping and Beautification of approach roads will be done. The project of Development of Mahanadi Central Heritage (Rs.3.94 crore) has been sanctioned. In this project Jetties, River Bank, Nature Trail, picnic area, etc. will be developed at various places along the river to enhance the experience of visitors to these destinations. An Indian Freedom Circuit on Mahatmas Park in West Bengal is being developed at a cost of Rs.2.27 crore. The project Bijapur-Bidar-Gulbarg Circuit sanctioned at a cost of Rs. 6.40 crore. Art and Craft village at Goregaon film city has been sanctioned for an amount of Rs.3.86 crore. Revitalization of Gandhi Thidal and Craft Bazar, Puducherry sanctioned recently for an amount of Rs.2.67 crore. The project of Development of Srirangam Tamilnadu (Rs.3.72 lakh) has been sanctioned. Development of Vallore fort area at a cost of Rs.0.89 crore. Sound and Talatal Ghar, Sivasagar in Assam (Rs.1.58 crore.) has been sanctioned.

Beach and Sea Tourism


MoT has sanctioned a project of Rs.5.00 crore for development and beautification of Beach Promenade in Puducherry. Another project for development of walkway along the bank of river Arasalar and Vanjiiar in Karaikal, Puducherry (Rs.4.78 crore) The project of Development of Marina bach in Tamilnadu has been sanctioned (Rs.4.92 crore).

Ecotourism
A project of Ecotourism for development of Horsely Hill in Chittoor district of Andhra Pradesh has been sanctioned. The project of development of Satkosi in Orissa (Rs. 4.25 crore) has been sanctioned in which Interpretation Centre, Landscaping, Elephant camps, Trekking park, Watch Towers and parking facilities, etc. are proposed to be developed. MoT has sanctioned a project for development of Ecotourism in Morni-Pinjore Hills and Sultanpur National Park in Haryana for which Rs. 2.63 crore have been sanctioned. The project of Integrated Development of Tribal Circuit with special focus on Ecotourism in Spiti in Himachal Pradesh has been approved for Rs. 6.98 crore.
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Development of Wayanad in Kerala for an amount of Rs.2.01 crore. Development of Tourist Circuit (Western Assam Circuit) Dhubari-Mahamaya-Barpeta-Hajo has been sanctioned for an amount of Rs.4.97 crore. Development of Mechuka Destination (Rs.4.41 crore in Arunachal Pradesh). Development of Tourist Destination at Khensa at a cost of Rs.4.58 crore in Nagaland. Circuit Udhyamandalam- Madumalai- Anaimalai, Tamil Nadu Rs.4.39 crore.

Projects for NE Region


The INA Memorial Complex at Moirang in Manipur is being renovated and tourist facilities are being developed (Rs.82 lakhs). Tourism infrastructure is being developed near Pakhai Wildlife Sanctuary in Arunachal Pradesh (Rs. 5.00 crore) Gayaker Sinyi Lake at Itanagar is being developed at a cost of Rs.5.00 crore. Tourist infrastructure is being developed in Nathula-Memmencho-Kuppu tourist circuit in Sikkim (Rs.4.54 crore) MoT has sanctioned a project for development of Tizu Kukha as Adventure Destination in Nagaland (Rs.4.99 crore) Projects for Jammu & Kashmir

MoT has sanctioned a project for development of tourism infrastructure in Leh (Rs.4.95 crore), Bungus Valley (Rs.2.31 crore), Kargil (Rs.4.84 crore), Poonch (Rs.4.50 crore), various villages around Sonmarg (Rs.1.08 crore), development of Gurez and Telail Valley (Rs.3.66 crore), Patnitop (Rs.2.83 crore), Dandi Pora (3.45 crore), Anantnag (Rs.2.1 crore), Shri Amarnath Yatra Marg (Rs.7.00 crore), Bhaderwah (Rs. 4.12 crore), Kishtwar (Rs. 2.81 crore), Wullar Lake (Rs.2.06 crore) and Rajouri (Rs.4.34 crore). Tourist Information Centre, Public amenities, approach roads, shelters, signages , etc. will be developed in these projects so that tourists who are visiting Jammu & Kashmir should have trouble free experience the beauty and bounty of the region.

An Overview of Foreign Tourist Arrival and Foreign Exchange Earnings Numbers


Performance of Tourism Sector during August 2009 MoT, government of India compiles monthly estimates of Foreign Tourist Arrivals (FTAs) and Foreign Exchange Earnings (FEE) from tourism on the basis of data received from major airports. Following are the important highlights, as regards these two important indicators of tourism sector. Foreign Tourist Arrivals (FTAs): FTAs during the month of August 2009 were 3.58 lakh as compared to FTAs of 3.91 lakh during the month of August 2008 and 3.58 lakh in August 2007. There has been a decline of 8.6% in FTAs in August 2009 as compared to positive growth of 0.2% and 0.6% in June 2009 and July 2009 respectively. FTAs during January August 2009 at 32.57 lakh were lower as compared to 35.40 lakh in January August 2008. Foreign Exchange Earnings (FEE) from Tourism in Indian Rupee Terms and US $ Terms FEE during the month of August 2009 were Rs.4115 crore as compared to Rs.3626 crore in August 2008. FEE during January August 2009 were Rs.33791 crore as compared to Rs.33321 crore in January August 2008. FEE in US $ terms during the month of August 2009 were US $ 851 million as compared to US $ 845 million in August 2008. FEE during January August 2009 were US$ 6886 million as compared to US$ 8134 million during January August 2008 26

Chapter 3
TABLE 3. Foreign Tourist Arrivals and Foreign Exchange Earnings
Foreign Tourist Arrivals (FTAs) and Foreign Exchange Earnings (FEE) from Tourism in India
Month January February March April May June July August September October November December Total Foreign Tourist Arrivals (Nos.) 2006 459489 439090 391009 309208 255008 278370 337332 304387 297891 391399 442413 541571 4447167 2007 535631 501692 472494 350550 277017 310364 399866 358446 301892 444564 532428 596560 5081504 2008 @ 591337 561393 541478 384203 300840 340159 429456 391423 330874 452566 521247 521990 5366966 Percentage Change 2007/2006 16.6% 14.3% 20.8% 13.4% 8.6% 11.5% 18.5% 17.8% 1.3% 13.6% 20.3% 10.2% 14.3% 2008/2007 10.4% 11.9% 14.6% 9.6% 8.6% 9.6% 7.4% 9.2% 9.6% 1.8% -2.1% -12.5% 5.6%

Foreign Exchange Earnings (in Rs. Crore)


Month January February March April May June July August September October November December Total Foreign Exchange Earnings (in Rs. Crore) 2006 * 3970 3793 3378 2850 2350 2566 2990 2698 2640 3355 3793 4642 39025 2007* 4698 4401 4144 3218 2543 2849 3436 3080 2594 3785 4533 5079 44360 2008# 5438 5182 5035 3773 2988 3409 3870 3626 3143 4248 4935 5083 50730 Percentage Change 2007/2006 18.3% 16.0% 22.7% 12.9% 8.2% 11.0% 14.9% 14.2% -1.7% 12.8% 19.5% 9.4% 13.7% 2008/2007 15.8% 17.7% 21.5% 17.2% 17.5% 19.7% 12.6% 17.7% 21.2% 12.2% 8.9% 0.1% 14.4%

Foreign Exchange Earnings( in US$ million)


Month January February March April May June July August September October November December Total Foreign Exchange Earnings (in US$ million) 2006* 894 854 761 627 517 564 645 582 569 746 843 1032 8634 2007* 1064 996 938 780 617 691 848 760 640 959 1149 1287 10729 2008# 1382 1305 1248 943 711 796 904 845 689 873 1005 1046 11747 Percentage Change 2007/2006 19.0% 16.6% 23.3% 24.4% 19.3% 22.5% 31.5% 30.6% 12.5% 28.6% 36.3% 24.7% 24.3% 2008/2007 29.9% 31.0% 33.0% 20.9% 15.2% 15.2% 6.6% 11.2% 7.7% -9.0% -12.5% -18.7% 9.5%

@ Provisional Estimates * Revised Estimates # Advance Estimates Source : Tourism Ministry, Govt of India

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In December, India saw 5.22 lakh FTAs, marginally higher than the 5.21 lakh FTAs in November. While the foreign exchange earnings (FEE) of India from tourism for 2008 stood at Rs 50,730 crore, growing over 14.3% over Rs 44,360 crore in 2007, the FEE for December was Rs. 5,083 crore, as against Rs. 4,935 crore the previous month and Rs. 5,079 crore in December, 2007. However in the year that India felt the impact of the global economic slowdown as well as terror attacks reflecting in cancellations in corporate as well as leisure travel, the number of foreign tourist arrivals or FTAs for 2008 was 5.37 million, around 5.7% higher as compared to 5.08 million the previous year, according to data received from major airports in India and released by the government. In an effort to boost the confidence of visitors and tourists after the Mumbai attacks, the Union Ministry of Tourism, India launched a new scheme Visit India 2009 offering various incentives to foreign tourists and tourism industry. These value addition services will be offered to tourists visiting the country during the period April 2009 March 2010. The proposed incentives would offer one complimentary international air passage for travelling companion, one night complimentary stay in the hotel booked by the traveller, complimentary sightseeing in any one city of their choice and a complimentary rural eco holiday. The idea is to provide one additional service for every service paid for, by the tourists with the help of top airlines and organizations like Hotel Association of India (HAI) and Indian Association of Tour Operators (IATO). All three major airlines of the country Air India, Jet Airways and Kingfisher have joined this endeavour of the government by providing the additional air passage for travelling companions. Furthermore, all member hotels of the HAI will be offering the service of complimentary night stay in the hotel booked by the tourist. Members of the IATO, an organization recognized by the MoT, will offer one complimentary local sightseeing tour in any one of the cities visited by the tourist. The Department of Tourism also has plans to organize road shows in countries like Singapore, Canada, UK, Japan and Australia, in joint venture with the IATO. The ongoing year will see a rise in the advertisements and marketing through trade fairs and exhibitions to draw the attention of foreign tourists from across the world.

28

Chapter 3
TABLE 4. Important Facts about Tourism - 2008
(I) India No. of Foreign Tourist Arrivals in India Annual Growth Rate No. of Indian National Departures from India Annual Growth Rate No. of Domestic Tourist Visits to all States/UTs Annual Growth Rate Foreign Exchange Earnings from Tourism i) In INR terms Annual Growth Rate ii) In US $ terms Annual Growth Rate 5.37 Million (P) 5.6% 10.65 Million (P) 8.8% 562.92 Million (P) 6.9% Rs. 50730 Crore (P) 14.4% US $ 11.75 Billion (P) 9.5%

(II)

World No. of International Tourist Arrivals Annual Growth Rate International Tourism Receipts Annual Growth Rate 922 Million (P) 1.9% US$ 944.0 Billion (P) 10.2%

(III)

Asia & the Pacific Region No. of International Tourist Arrivals Annual Growth Rate International Tourism Receipts Annual Growth Rate 184.1 Million (P) 1.2% US$ 207.6 Billion (P) 11.0%

(IV)

Indias Position in World Share of India in International Tourist Arrivals Indias rank in World Tourist Arrivals Share of India in International Tourism Receipts Indias rank in World Tourism Receipts 0.58% 41 1.24% 23

(V)

Indias Position in Aisa & the Pacific Region Share of India in International Tourist Arrivals Indias rank in International Tourist Arrivals Share of India in International Tourism Receipts Indias rank in International Tourism Receipts 2.92% 11 5.66% 6

P: Provisional

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India Outbound Tourism


Indias outbound travel market is small relative both to the countrys potential and to that of other large generating countries in the region. It has nevertheless created great interest both among the travel trade in India and in destinations overseas in view of the recent strength of the countrys economic performance, the expanding middle class and the potential anticipated in a country with such a large population coupled with the relative immaturity of its travel market. With over 32 million valid passports, India outbound market is basically spread over four regions: 34% 33% 23% 10% Mumbai New Delhi Chennai/Bangalore Kolkata Financial capital Political capital ITES / Emerging gateways Resurgent economy

Over 8 million Indian Travellers travel overseas every year and this market is expected to grow by 10-15% every year. By 2011 Indian outbound travel is expected to be 15.3 million. Over 60% of Indians travel overseas for Business and 40% travel for leisure. With Nepal offering business as well leisure options for the Indian traveller, this is indeed a very interesting market for Nepal.

TABLE 5. Number of Indian National Departure from India 1996-2008


Year
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (P)
P: Provisional Source :- Bureau of Immigration ,Govt of India.

No. of Indian Nationals Departures (in Million) from India


3.46 3.73 3.81 4.11 4.42 4.56 4.94 5.35 6.21 7.18 8.34 9.78 10.65

Percentage (%) change over the previous year


13.3 7.6 2.3 8.0 7.3 3.4 8.2 8.3 16.1 15.6 16.1 17.3 8.8

30

Chapter 3
FIGURE 4. Number of Indian National Departures from India, 1996-2008

No. of Indian National Departures (in Million) from India

12

10

0 1996 1997 1998 1999 2000 2001 2002 YEAR 2003 2004 2005 2006 2007 2008

Source :- Bureau of Immigration ,Govt of India.

Preferred Outbound Options


Indians traditionally prefer to travel Far East and major short haul destinations are as follows: Destination Singapore Malaysia Thailand China Dubai Hong Kong Travellers (2007) 748,726 422,452 506,237 462,450 410,821 317,510 Growth + 14% + 56% + 18% + 14% + 6% + 8%

Major long haul destinations include, USA (567,045), UK (337,000) and Australia (95,200) .These are essentially business and Visiting Friends and Relatives destinations. In 2008, India outbound tourism grew by 13% and there is an increasing preference towards Europe which grew by 25%. The Americas, on the other hand, attracted only a modest 2% increase out of India.

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TABLE 6. Destination-wise Indian Nationals Outbound Travel, 2000-2006


Country of Destination No. of Outbound Indian Nationals 2000 North America Canada USA Central & South America Barbados Cambodia Colombia chile Cuba Honduras Jamaioa Nicaragua Peru Trinidad & Tobago Wesetern Europe Belgium Finland Italy Portugal Switzerland UK Eastern Europe Armenia Bulgaria Georgia Hungary Kazakistan Kyrgyzstan Latayia Moklova, Rep. of Poland Russia Romania Slovakia Turkmenistan Ukraina Africa Botswana Egypt 124 3015 N.A. 6254 2147 452 167 24 N.A. 23476 N.A. 1117 N.A. 3301 561 1764 34277 351 2647 1590 6044 3633 358 1153 25 5015 27576 3529 1515 3 2622 582 1827 28498 470 2099 1661 4695 4217 1590 959 6 5259 33546 4773 1437 96 4103 653 3421 31834 780 2361 2200 4331 4809 3171 1059 12 6092 32954 4024 1305 24 6249 N.A. 1476 34941 1380 2361 2853 6523 5888 2080 861 10 7875 36755 5864 384 55 5240 N.A. 1691 45313 1987 2766 1335 6417 6180 1211 832 30 8702 42184 6033 603 1 5918 1642 N.A. 54141 2340 3187 3066 6903 7197 1030 1450 6 9893 45795 6632 443 N.A. 6169 1852 N.A. 61301 12528 N.A. 60589 3970 71912 206000 12958 N.A. 49131 4114 72291 189000 22956 N.A. 85839 4970 80430 205000 17453 N.A. 48807 5086 84685 199000 19479 4000 77134 5447 N.A. 255000 19572 5000 59058 5498 93472 269000 21683 8000 116951 N.A. 115055 368745 329 1767 N.A. 1376 2703 115 670 432 N.A. 818 403 2271 913 1207 2830 117 731 414 714 1022 433 3785 960 1296 2995 163 530 423 841 962 973 5286 917 1647 4174 207 643 1153 958 931 584 6597 1161 3148 2717 221 554 304 984 1188 644 6938 1348 3474 3783 278 484 1347 1355 1465 629 8690 1649 3499 3437 343 600* N.A. 1462 2199 52071 274202 2001 54742 269674 2002 5549 257271 2003 57010 272161 2004 66315 308845 2005 77849 344926 2006 87210 408845

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Country of Destination No. of Outbound Indian Nationals 2000 Eritrea Ethiopia Guinea Kenya Mauritius Moroco Nigeria Seychelles South Africa Tanzania, United Republic of Uganda Zambia West Asia Bahrain Israel Jordan Kuwait Lebnon Oman Syria Saudi Arabia Turkey United Arab Emirates Sourth Asia Bangladesh Maldives Nepal Pakistan Sri Lanka South East Asia Cambodia Indonesia Lao Peo. Dem. Rep. Malaysia Myanmar Phillippines Singapore Thailand East Asia China (Main) Hong Kong Japan Macau Mongolia 120930 131368 38767 7530 337 159361 161762 40346 8659 408 213611 193705 45394 10574 347 219097 178130 47620 9820 403 309411 244364 53000 15278 557 356460 273487 58572 20846 420 405091 294079 62605 28903 672 74268 10616 96995 66061 31660 1767 34221 3309 132127 5605 18570 346358 224104 78090 8511 69722 58378 33924 2271 37428 2693 143513 5572 15391 339813 206132 80415 11377 65749 2818 69960 3785 39314 2319 183360 5691 14826 375659 253110 84704 11502 88578 7096 90603 5286 32823 1590 145153 6291 15644 309446 230316 80469 10999 89961 19858 105151 6597 41582 1845 172966 8357 18221 471196 300163 86231 10280 95685 59560 113323 6938 58359 2096 225769 7679 21034 583543 352766 80518 12071 88857 70174 126370 8690 94258 2100 279046 7540 22703 658893 429732 213509 15947 N.A. 225642 7224 62313 10685 N.A. N.A. 235493 247358 12012 15152 270619 7276 61891 10688 313131 9230 246335 312975 9330 29882 314054 8565 72090 16689 373836 10122 336046 350998 8431 17125 363724 9603 83065 9680 362609 13667 357941 418767 12743 25108 413109 11240 136456 11936 474467 20003 356446 466849 19018 27651 N.A. 11111 116376 11875 117101 26480 N.A. 590198 20233 28640 N.A. 10079 110841 9830 345431 35379 N.A. 582 3480 284 24889 17241 N.A. 14686 941 27810 18844 N.A. 2353 2001 2231 3244 N.A. 23858 18890 2873 15233 1952 29598 24066 4588 2531 2002 2549 3778 N.A. 24007 20898 3450 17899 1271 35402 21973 5708 2907 2003 2580 3602 463 27479 25367 3145 21031 893 42954 22215 6623 2863 2004 2420 4641 677 N.A. 24716 3798 24711 1312 36069 14604 9366 4059 2005 2985 7125 900 N.A. 29755 4577 25946 981 39906 17598 10691 8658 2006 2895 7975 20769 N.A. 37498 4950 28741 1132 49674 13020 11829 12658

Source: Bureau of Immigration, Govt of India

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Indian Tourism Industry An Outlook

Indian Outbound Travel Key Features


1. Indian leisure traffic peaks in holiday season which is as follows: April 15June 30 Late October-Early November December-January 2. 3. 4. 5. 6. 7. School Holidays (Diwali, Hindu Festival, 5 Days) (Christmas and New Year Holiday)

Indian Corporate travel is consistent year round, accompanied with leisure travel with associates and/or family India has a very strong VFR market. Significant number of students participating in advance education programs (80,000 students) further stimulating VFR market Indian FIT is fastest growing market Group travellers primarily made up of first time travellers and seniors Honeymoon market peaks November/ December and February/March MICE travel is strong, but primarily benefits short haul travel sectors

Preferred Activities for Indian Outbound Traveller


1. 2. 3. 4. 5. Shopping Food (Strong preference for Indian food) Entertainment Nightlife Sightseeing

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Domestic Tourism in India


Domestic Tourism is an important part of Indian Tourism and is expected to be over 500 million. The 11th Plan strategy on tourism is to achieve International tourist arrivals of 10 million by the end of the 11th Plan through diversification of source markets increase per capita spending and length of stay of international visitors and by reducing seasonality. The Plan also proposes to achieve a level of 760 million domestic tourists by 2011 at an annual growth rate of 12% and to increase accommodation units. (Planning Commission of India, 2006) Domestic tourism is also one of the most vibrant expressions of Indian heritage. It is the single unifying force, which helps in achieving understanding between various linguistic, religious and communal groups living in different parts of the country. In the contemporary India, the phenomenon of domestic tourism with its vibrant and changing dimensions can be expected to make an even greater contribution toward strengthening the fabric of the unity of India. Despite its great significance in the national integration and development, domestic tourism has not received adequate attention in the process of development planning. However, there has been the almost unobtrusive and yet inexorable rise of domestic tourism in the Indian context. The average Indian is also an avid sightseer and can travel thousands of miles to different environments. A significant pointer to this is travel during the summer months, a time when most foreign tourists avoid India. The bulk of the affluent middle class, however, flock to the tourist stations of the Himalayas and test the carrying capacity of these resorts to the maximum. Even in winter, the Indian traveller is on the move, targeting seaside resorts, forests sanctuaries, desert safaris and historical monuments for special attention. Domestic tourism is also fuelled by business travel to various parts of the country, as also by agriculture demands. Domestic tourism is as old as the Indian society. According to available statistics, domestic tourism has grown substantially during the last one decade. It increased to 167 million in 1998 from just 64 million in 1990, thus registering a compound annual growth of 12.8 per cent. The growth of inbound tourism since Independence has been quite impressive. It was just around 17 thousand in 1951. From this level it rose to 2.36 million in 1998. Tourism receipts on the other hand have grown at a phenomenal rate of 17 per cent to Rs.11,540 crore in 1998 from Rs.7.7 crore in 1951. Travel and tourism in India experienced another year of encouraging development in 2007. There was impressive growth in the number of domestic trips taken as well as in the number of arrivals and departures owing in part to aggressive international advertising and promotion through the Incredible India! Campaign. Both the central government and state governments have been pro-active in terms of marketing in order to showcase their various tourism products. Furthermore, niches categories such as medical tourism and adventure tourism proved popular in 2007, which combined with improvements to infrastructure and the continued popularity of low cost carriers among other things, helped to boost travel and tourism in India.

Domestic Tourism Surges Ahead


Gone are the days when domestic tourism in India was synonymous with pilgrimages or visits to friends and relatives. Driven by rising incomes, an increased standard of living and improved land, rail and air transportation, more people in 2007 went on domestic trips. Also, with improved information technology reaching all corners 35

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Domestic Tourism in India

of the country, people have begun to take domestic trips more frequently. The Indian Railways have played a vital role in providing better connectivity as has the governments pitomizedn and open skies policy, which led to the introduction of low cost carriers and which thus made domestic air travel affordable to a greater number of domestic tourists.

Low Cost Carriers Continue to Gain in Strength


A low cost airline or carrier is one that proffers air travel at normally very low rates by cutting down on expensive customary in-flight passenger services. These low cost carriers are often also referred to as no-frills airlines. The concept originally incepted in the United States in the early 1990s. While Richard Branson of Virgin Airlines was the forerunner in Britain, Qantas occupied a huge portion of the Australian budget skies. It was in a matter of sometime before the Indian airline industry too caught up on this trend. It was the Air Deccan, which introduced the budget flight model to Indian skies in 2003. The development of low cost carriers has resulted in an incredible amount of choice for Indian travelers and has enabled many more middleincome consumers to afford to fly for business as well as leisure purposes. With the air fare almost reduced to that of train fare, the inception of no-frills airlines unleashed a fierce cutthroat competition in the Indian aviation scenario like never before. In order to grab a bigger pie in the suddenly escalating numbers of train commuters turning towards air travel, all leading domestic airlines slashed their fare rates and unveiled Advanced Purchase schemes (Apex) to take on the new challenger. The present list of low cost airlines in India includes Spice Jet, Go Air, Indigo, Jet Lite, and Air India Express. Since the Indian air industry still remains largely under-penetrated, theres a lot of scope for the growth in this sector. The budget carriers keep coming up with new ideas and incentives to grow their customer base. The budget airline industry in India is expected to grow significantly in coming years.

Boom in Travel and Tourism has Wide-reaching Effects


Various categories of travel and tourism have benefited from the boom in travel and tourism in India. Players in hotels have experienced high rates of occupancy and room rates have increased in all categories of hotels. In travel retail, travel agents have benefited from demand for new travel packages and new products as well as new destinations among increasingly demanding domestic tourists. New opportunities have also arisen to offer niche tourism products such as adventure tourism and spa tourism packages.

Indian Travel Trade


Indian Travel Trade is mainly unorganized and no license is required for this sector. Over 7000 Travel agents are spread all over India and over 50 tour operators mainly create packages. The travel trade in India remains reactive and last minute. Most travel agents in India are only ticketing agents focussing on the lower end of the market. The top 10 agents of most airlines are consolidators, operating on high volume and low margins through a network of sub-agents. There are about 30 wholesalers but their primary focus tends to be closed groups for Europe. The emergence of agencies servicing the individual traveller for their travel-related services is a relatively new phenomenon, though some incentive and business agents control the bulk of the market.

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Leading Travel Agents
Thomas Cook Kuoni /SOTC Cox & Kings TUI / Select Vacations Travel Corporation of India Kesari / Strawberri Travel Raj Travels Club7 Orbitz Mercury

Leading Online Portals


Travelguru Make My Trip Ezeego Yatra Cleartrip

Consumer Booking Patterns


Indian consumers have a short lead-time for booking their holidays ranging from three to six weeks on average. Whilst the Indians are seasoned travellers they still prefer to pre-plan their itineraries prior to travel. Most consumers will book through a retail travel agent rather than direct. The Internet is an emerging source for sales of tour packages but is still very small to date. There has been an increase in the usage of the Internet to research and gather information for travel a trend that is expected to continue. Latest figures indicate that India as on September 2008 had 45.3 million active internet users. (IAMAI, 2009).However most of that usage is emails or bookings for low cost carriers or rail tickets. The distribution of travel product in India is fragmented and predominantly retail based. There are a few national companies, however most agents are small, independent businesses. Competition between the larger travel agencies is fierce, with aggressive marketing and tactical promotions in print media. Examples include buy now, pay later promotions or cash back schemes. The traditional wholesaler has not generally developed in the Indian travel industry, although a few larger travel agents are pursuing the development of their own distribution network via smaller independent agents. However, there is at least one major traditional wholesaler with significant support from the smaller retail agents. Large travel agencies take reservations from consumers through their own retail networks as well as from smaller agencies.

Wholesalers/Large Agents
Commission Level: 15 %

Retail Agents
Commission Level: 10%

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Domestic Tourism in India

Current Trends and Information on Key Domestic Destinations


India is a vast country with over 1,000 million inhabitants. It contains a huge diversity of peoples, cultures, regions, economic characteristics and areas of prosperity and poverty. Indias domestic tourism is a huge market in itself and offers myriad exciting experiences to tourists. Indian tourism is one of the most diverse products on the global scene. India has 26 world heritage sites. It is divided into 25 bio-geographic zones and has wide ranging eco tourism products. Apart from this India has a 6,000 km coastline and dozens of beaches. Indias great ethnic diversity translates into a wide variety of cuisine and culture. India also has a large number of villages, plantations and adventure locations. India is home to a great variety of wildlife and its reserves are well known throughout the world. Tourism industry in India is being utilized as a powerful tool to facilitate county understanding and enable building of broader cultural horizons. According to the Travel & Tourism Competitiveness Report 2009 brought out by World Economic Forum, India is ranked 11th in the Asia-Pacific region and 62nd overall in a list of 133 assessed countries in 2008, up three places since 2007. In terms of travel, India stands 9th in the index of relative cost of access (ticket taxes and airport charges) to international air transport services, having almost the lowest costs in the world. Also according to the report, India has been rated well for its natural resources (ranked 14th) and cultural resources (24th), with many World Heritage Sites, both natural and cultural, rich fauna, and strong creative industries in the country. India also has quite a good air transport network (ranked 37th), particularly given the countrys stage of development, and a reasonable ground transport infrastructure (ranked 49th). India is ranked 7th in terms of number of World Heritage Cultural Sites, according to a UNESCO report (2008).The World Travel and Tourism Report for 2009 for 180 countries worldwide also ranks the Indian Travel and Tourism economy 14th in absolute size worldwide, 144th in relative contribution to national economies and 5th in longterm (10-year) growth. 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 average 7.7 per cent per annum over the coming 10 years. Export earnings from international visitors and tourism goods are expected to generate 6.0 per cent of total exports (almost US$ 16.9 billion) in 2009, growing (nominal terms) to US$ 51.4 billion in 2019. The contribution of travel and tourism to Indias gross domestic product (GDP) is expected to be at 6.0 per cent (US$ 67.3 billion) in 2009 rising to US$ 187.3 billion by 2019. It is clear that domestic tourism is far greater in volume than foreign tourism. It is from domestic tourism that the larger impact on Indias economy is thus likely to be derived. Statistical measures of domestic travel indicate that, in 2006, there were 462 million arrivals recorded in states within India by Indian nationals and by 2008 it rose to over 562 million arrivals. (World Economic Forum 2009)

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TABLE 7. Number of Domestic Tourist Visits to all States/UTs in India, 1996-2008
Year
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (P)

No. of Indian Nationals Departures (in Million) from India


140.12 159.88 168.20 190.67 220.11 236.47 269.60 309.04 366.27 391.95 462.31 526.56 562.92

Percentage (%) change over the previous year


2.5 14.1 5.2 13.4 15.4 7.4 14.0 14.6 18.5 7.0 18.0 13.9 6.9

P : Provisional Note: Fitures for Maharashtra & Chhattisgarh have been estimated Source : State/ UT Tourism Departments

FIGURE 5. Number of Domestic Tourist Visits to all States/UTs in India, 1996-2008

No. of Domestic Tourists Visits to States/UTs (in Million)

600

500

400

300

200

100

0 1996 1997 1998 1999 2000 2001 2002 YEAR 2003 2004 2005 2006 2007 2008

Source Ministry of Tourism, Govt. of India.

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TABLE 8. State/UT Domestic and Foreign Tourist Visits, 2005-2007


S.N. State/UT 2005 Domestic 1. 2. 3. 4. 5. 6. 7. 8. 9. Andhra Pradesh Arunanchal Pradesh Assam Andaman & Nicobar Islands Bihar Chandigrah Chhattisgarh* Dadara & Nagar Haveli Daman & Diu 394914 2061782 6164 1511893 420628 2237130 5517 1974836 446490 2388330 5315 2018848 93529554 50560 2467652 30225 9687220 614176 324495 526142 Foreign 560024 313 10782 2147 63321 23284 912 1226 2006 Domestic 111715376 80137 3268657 118580 7774732 704531 363759 478000 Foreign 669617 706 11151 9045 84942 25217 1094 1400 2007 Domestic 127933333 91100 3436833 136015 10352887 928159 414322 473489 Foreign 769724 2212 12899 10975 177362 26567 1232 5625

10. Delhi
Source: Ministry of Tourism, Govt. of India

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TABLE 9. Percentage Shares and Ranks of Different States/ UTs in Domestic and Foreign Tourist Visits during 2007
S.N. State/UT 1. 2. 3. 4. 5. 6. 7. 8. 9. Andhra Pradesh Arunanchal Pradesh Assam Andaman & Nicobar Islands Bihar Chandigarh Chhattisgarh * Dadra & Nagar Haveli Daman & Diu Tourism Visits (Numbers) Domestic 127933333 91100 3436933 136015 10352887 928159 414322 473489 446490 2388390 2208986 18477316 6252945 8481988 7915217 4908394 37825953 6642941 18642 18894500 19226716 101484 457685 43161 22085 5944390 368593 Foreign 769724 2212 12899 10975 177362 26567 1232 5625 5315 2018848 388457 104158 84711 339409 52754 4004 534563 515808 2933 234204 1928052 396 5267 669 936 41880 5470 Percentage Share Domestic 24.3 Neg. 0.7 Neg. 2.0 0.2 0.1 0.1 0.1 0.4 0.4 2.6 1.2 1.6 1.5 0.9 7.2 1.3 Neg. 2.6 3.6 Neg. 0.1 Neg. Neg. 1.1 0.1 Foreign 5.8 Neg. 0.1 0.1 1.3 0.2 Neg. 0.1 0.1 15.3 2.9 0.8 0.5 2.6 0.4 Neg. 4.0 3.9 Neg. 1.8 14.6 Neg. Neg. Neg. Neg. 0.3 0.1

10. Delhi 11. Goa 12. Gujarat 13. Haryana 14. Himanchal Pradesh 15. Jammu & Kashmir 16. Jharkhand 17. Karnataka 18. Kerala 19. Lakshadweep 20. Madhya Pradesh 21. Maharashtra * 22. Manipur 23. Meghalaya 24. Mizoram 25. Nagaland 26. Orissa 27. Punjab
Source Ministry of Tourism, Govt. of India

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Domestic Tourism Profile


As per the study conducted for MoT & Culture, Indian Domestic Tourism can be profiled as follows: Andhra Pradesh, Uttar Pradesh, Tamil Nadu, Rajasthan and Madhya Pradesh are the five highest ranked states in terms of share in total tourist households in the country. Top five states with respect to number of tourist households per 1000 households are Delhi, Rajasthan, Andhra Pradesh, Karnataka, and Uttar Pradesh. Karnataka has the highest percentage of Business Travel and Leisure Holiday trips, and Uttar Pradesh ranks first in the social and other trips categories. Top five states ranked according to trips per 1000 tourist households are Himachal Pradesh, Karnataka, Punjab, Madhya Pradesh and Maharashtra. Middle-income households represent the highest percent of trips in each category of travel by purpose as well as for all trips taken together. The major mode of transport for tourist trips in the country is by bus, representing at least 70 percent of all trips across all purposes of travel. Together bus and train account for at least 90 percent of trips in each category of travel. Middle income households constituted over 45% of the total tourist households at the aggregate level. Average number of trips per household in the country was 1.17 and average number of trips per tourist household was 2.64. Travel for social purposes accounted for the largest percentage of trips in both urban and rural areas. Social travel is relatively uniformly distributed regionally across the country. Regional distribution of trips shows the Southern region as dominant in accounting for most types of trips classified by purpose of travel, followed by the northern region. (National Council for Applied Economic Research (NCAER) ,2003)

Where Indians Travel


The top 5 States in domestic tourist visits in 2008 were Andhra Pradesh, Uttar Pradesh, Tamil Nadu, Rajasthan and Madhya Pradesh with their respective shares being 23.6 %, 22.2%, 17.5%, 5% and 3.9%. These 5 States accounted for about 72.2% of the total domestic tourist visits in the country. In respect of foreign tourist visits in 2007, the top 5 States/Uts were Delhi (15.3%), Maharashtra (14.6%), Tamil Nadu (13.3%) Uttar Pradesh (11.3%) and Rajasthan (10.6%), with the total share of these States/Uts being 65.1%.(MoT India.2008)

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FIGURE 6. Percentage Share of Top 10 States/UTs in Domestic Tourist Visits in 2008

Source Ministry of Tourism, Govt. of India

TABLE 10. Share of Top 10 States/UTs of India in Number of Domestic Tourist Visits in 2008
Domestic Touris Visits * in 2008 Rank 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. State/UT Andhra Pradesh Uttar Pradesh Tamil Nadu Rajasthan Madhya Pradesh Maharashtra Uttarakhand West Bengal Gujarat Karnataka Number 132684905 124843242 98285121 28358919 22088927 20553359 20546323 19314440 15505264 12797937 494978437 67937132 562915569 Percentage Share % 23.6 22.2 17.5 5.0 3.9 3.7 3.6 3.4 2.8 2.3 88.0 12.0 100.0

Total of top 10 States Others Total

* Provisional Note : Figures for Maharashtra & Chhattisgarh have been estimated Source : State/UT Tourism Departments Source Ministry of Tourism, Govt. of India

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Most Popular Indian Monuments


Taj Mahal in Agra is the most popular monument in India, attracting over 3 million visitors a year. Taj Mahal was visited by an estimated 2 .6 Million domestic tourists in 2007. The 17th century Red Fort in Delhi was the second most visited monument in the country and 2.2 million tourists visited Red Fort in Delhi. The Qutub Minar, known as the tallest brick minaret in the world built here in the 14th century, is the third most preferred monument among domestic tourists. An estimated 2 million domestic tourists visited it in 2007. Among the 10 other most famous monuments popular with domestic tourists Purana Quila (Delhi), Bibi-KaMaqbara (Maharashtra) and Mamallapuram (Tamil Nadu) etc.

TABLE 11. Domestics and Foreign Visitors at 10 Most Popular Centrally Protected Ticketed ASI Monuments during 2007
10 Most popular centrally protected Monuments for domestic visitors in 2007 Rank 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Name of Monuments Taj Mahal, Agra Red Fort, Delhi Qutab Minar, Delhi Sun Temple, Konark Agra Fort, Agra Bibi-Ka-Maqbara, Group of monuments, Gol- Gumbaz, Bijapur Daria Daulat Bagh, Srirangapatnam Purana Qila No. of Domestic Visitors 2624085 2060420 2019453 1347483 1177133 878152 802000 776491 682933 590801 10 most popular centrally protected Monuments for foreign visitors in 2007 Rank 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Name of Monuments Taj Mahal, Agra Agra Fort, Agra Qutab Minar, Delhi Humayun,s Tomb, Delhi Fatehpur Sikri, Agra Red Fort, Delhi Sarnath Excavated Site Western Group of Monuments, Khajuraho Group of monuments, Mamallapuram, Chennai Sahet Shravasti Monument of Shravasti No. of Foreign Visitors 586105 357570 282451 210384 198956 158589 91093 84887 71055 54968

Source : Archaeological Survey of India (ASI)

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Top Indian Destinations
Andhra Pradesh
Andhra Pradesh is the third largest state in India with an area of 275,000 sq. km. A state in the southern region of India, Andhra Pradesh is bordered on the south by Tamil Nadu state, on the west by Karnataka state, on the north and northwest by Maharashtra state, on the northeast by Madhya Pradesh and Orissa states, and on the east by the Bay of Bengal. The northern area of Andhra Pradesh is mountainous. Andhra Pradesh has valuable gifts that nature has endowed it with a long coastline bordered by clean beaches, hills, forests and a meteorologically and socially pleasant climate. Tirupati Tirupati is the most popular destination in India. Tirupati is a world in itself, millions of pilgrims from all over India and abroad visit the temple of Lord Venkateswara at Tirupati round the year. In addition to various shrines scattered all over Tirupati and beyond there are holy water falls, scared rivers and archaeological wonders. It is regarded as one of the most ancient temples which were mentioned in Puranas and Sastras. The temple is patronized by the Pallavas, Cholas, Pandyas, the Vijayanagar Rulers and the later kings of Mysore. Hastakalaramam Papanasanam, Akasganga, Gogarbham, Shilathoranam, View Point, S.V. Museum are the other places worth seeing at Tirumala. Kapilatheetham, Hare Rama Hare Krishna Mandir, Regional Science Centre, S.V.Zoological Park, Srinivasa Mangapuram, Kalyani Dam, Chandragiri Fort, Tiruchanur, Govindaraja Swamy Temple are the other places worth seeing in and around Tirupathi Hyderabad Hyderabad, the capital of Andhra Pradesh, is the fifth largest cosmopolitan city in India. The City thrives with a variety of cultures intermingled into an astounding culture that gives it a distinct identity of its own. This is where tradition fuses with modernity, and heritage structures vie with modern high-rise buildings to add to the beauty of the city. Hyderabad offers a variety of tourist attractions ranging from Heritage monuments, Lakes and Parks, Gardens and Resorts, Museums to delectable cuisine and a delightful shopping experience. The city of Hyderabad is a shoppers delight. From the world famous pearls to traditional arts & crafts, from textiles of all modern brand names to ethnic wear, the city offers an astounding variety of shopping. Hyderabad is famous world over for its fabulous diamond markets, glass embedded bangles and the delectable Hyderabadi Cuisine. MICE Industry Hyderabad, the capital city of Andhra Pradesh is home to world-class convention centers of all varieties. It has the perfect balance between large centers, which can accommodate thousands of participants and small and medium-size meeting rooms for small scale gatherings. The fact that these convention centers are easily accessible from five star hotels as well as shopping centers, resorts and theme parks, is an added appeal, as it allows participants to mix business with pleasure. Hyderabad International Convention Centre (HICC) is South Asias first truly world class convention centre located in Hyderabad- the burgeoning business hub of India, This first ever purpose built facility in the country has been conceptualized, designed and created to hold events for people between 50 and 5000. HICC offers state-of-the-art facilities that are comparable to the worlds best convention centers across the globe. Built across a 15-acre landscaped environment, HICC has an internal hall measuring 6,480 square meters that can be partitioned into six smaller halls. HICC offers to be an ideal venue for a host of events conventions, conferences, seminars, entertainment shows, parties, weddings, etc. to name a few.
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HITEX

Domestic Tourism in India

HITEX serves as a one-stop resource, providing the right setting for international expositions, trade shows, conferences and other corporate events. HITEX provides, three indoor Exhibition Halls 3500 sq.m. (37,660 sq.ft./hall) Open Exhibition Area 32,825 sq.m (353,197 sq.ft ) Trade Fair Office Building, Entrance Plaza (housing Registration and Ticketing Counters), Car Parking (1200 cars), Conference Facilities include meeting rooms, organizers office, VIP lounge, media centre and also houses services including a business centre, a restaurant, travel and forex centre, bank ATM, car rentals, florist, photo studio, and more.

Uttar Pradesh
Uttar Pradesh has the largest number of Tourist destinations that are religious, cultural, historical and full of natural beauty. There are several Tourist circuits which are popular for Domestic Tourism: Buddhist Circuit Water Cruise Circuit Bundelkhand Circuit Jain Shrines Circuit Braj (Agra-Mathura) Circuit Sikh Panth Circuit Awadh Circuit Eco-Tourism Circuit Vindhya Circuit Most popular tourist places in Uttar Pradesh are: Agra Varanasi Mathura Vrindawan Agra Taj Mahal was completed in 1653 A.D.. It was built by the Mughal Emperor Shah Jahan as the final resting place for his favourite Queen, Mumtaz. Finished in by Marble, it is perhaps India most fascinating and beautiful monument. This perfectly symmetrical monument took 22 years (1630-1652) of hard labor and 20,000 workers, Masons and Jewelers to built and is set amidst landscaped gardens. Built by the Persian architect, Ustad Isa, The Taj Mahal the bank of the Yamuna river. It can be observed like a Mirage from the Agra Fort from where Emperor Shah Jahan stared at it, for the last eight years his life as a prisoner of his son Aurangzeb. The fort is crescent shaped, flattened on the east with a long, nearly straight wall facing the river. It is a masterpiece of symmetry, seeming to be floating in the air from a distance, and each revealed as an illusion experienced as one enters through the main gate. The verses of Holy Koran as inscribed on it and at the top of gate 22 small domes, signifying the number of years the monument took to built. The Taj Mahal has been built on a Marvel Platform that stands above a standstone one. The most elegant dome of the Taj, with diameter of 60 feets, rises 80 feets, over the building and directly under the dome is the tomb of Mumtaz Mahal. Shah Jahans tomb has been erected next to hers by his son Aurangzeb. Fantastic inlay works using semi-precious stones decorate and interiors.

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Fatehpur Sikri Fatehpur Sikri is an epic in red sandstone. A city of yesteryear today lost in the mists of time. Fatehpur Sikri was built by the Mughal Emperor Akbar during 1564 A.D. Mughal Emperor Akbar had no heir. He visited holy men to enlist their prayers for his son. When he visited Sheikh Salim Chishti who was living at the village of Sikri the saint foretold the emperor that he would be blessed with a son. When his son was born, he is gratitude, constructed his capital city and named it Fatehpur Sikri. Later, due to shortage of water and unrest in North-West, Akbar has to abandon this city. The beautiful marvel tomb of Sheikh Salim Chishti still attracts thousands who seek blessings of the revered saint. Other renowned places are Dewane-e-Am, Dewane-e-Khaas, Buland Darwaja, Panch Mahal, Jodha Bai Palace and Birbal Bhawan. Fatehpur Sikri is about 39 K.M. from Agra. Varanasi Varanasi, situated in the mid northern plains of India on the banks of holy river Ganga, has been the capital city of oriental learning since time immemorial and has produced great poets, writers, musicians and scholars. Varanasi, is one of the oldest living cities in the world. This is holy city for Hindus as it is said to be presided over by Lord Shiva. The famous Vishwanath temple is located at its central place and large numbers of other temples are spread all over the city. Varanasi is famous for its hoary rich traditions, narrow lanes, cultural activities, magnificent temples, enchanting ghats, and many other attractions. Apart from being an important centre of Hinduism and Buddhism, it is also an important centre of learning and tourism. Varanasi is famous for silk fabrics, perfumes, artistic brass and copper wares. Sarnath Sarnath renowned for ancient remains of Buddhist stupas, monasteries and temples, is situated at a distance of 6 kms to the north of Varanasi city which is well connected by road, rail & air. Sarnath is one of the four most important Buddhist pilgrimage centers of India. Buddha, the great sage , after attaining enlightenment (Buddha-hood) at Bodh Gaya came to Sarnath and delivered his first sermon to five disciples(i.e. Kaundinya, Bashpa, Bhadrika, Mahanaman and Ashvajit) for redeeming humanity. It is this place where foundation of a new order of monks (Sangha) and a new order of religion doctrine (Dhamma) was laid. Sarnath is also sacred to the Jains because they look upon it as the site of asceticism and death of Shreyamshanath, the 11th Trithankara. Mathura Vrindavan The City of Mathura, in Uttar Pradesh, the nucleus of Brajbhoomi, is located at a distance of 145 km southeast of Delhi and 58 km north-west of Agra. Covering an area of about 3,800 sq. km., today, Brajbhoomi can be divided into two distinct units the eastern part in the trans-Yamuna tract with places like Gokul, Mahavan, Baldeo, Mat and Bajna and the western side of the Yamuna covering the Mathura region that encompasses Vrindavan, Govardhan, Kusum Sarovar, Barsana and Nandgaon. The land of Braj starts from Kotban near Hodel about 95 km from Delhi and ends at Runakuta which is known specially for its association with the poet Surdas, an ardent Krishna devotee. Shri Krishna, an incarnation of Lord Vishnu, was born in the Dwapara Yuga as the eighth son of the Yadava prince Vasudev and his wife Devaki. To save him from the murderous intentions of his maternal uncle Kansa, the ruler of Mathura, the infant Krishna was spirited away soon after birth to Gokul, the village of the gopas (cowherds) in Braj (their pastureland). It was here that he grew to manhood, in the tender care of his foster parents Nand and Yashoda in the happy company of the cowherds. 47

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Vrindavan

Domestic Tourism in India

Vrindavan, just 15 km from Mathura, is another major place of pilgrimage. It is noted for its numerous temples both old and modern. The name Vrindavan evokes the playfulness and lovable characteristics of Shri Krishna. This is the wood where he frolicked with the gopis and tenderly wooed Radha. Vrindavan today, is noted for its numerous temples. It is understood that Mathura City is the transcendental abode of Lord Krishna. It is not an ordinary material city, for it is eternally connected with the Supreme Personality of Godhead. Vrindavan is within the jurisdiction of Mathura and still continues to exist. Because Mathura and Vrindavan are intimately connected with Krishna eternally.

Tamil Nadu
Tamil Nadu is the land of the Tamils and it has a history that dates back to several thousand years. It is a land where traditions and culture blend and continue to live in harmony. The state abounds in monuments and temples that are ancient and each has its own story of religious, artistic and cultural accomplishment .Tamil Nadu has a long coastline that stretches nearly a 1000 kms. The Coromandel Coast, along the Bay of Bengal, boasts of many ideal locations for sun and surf. Golden sands of the beach are dotted with coconut palm and pitomized groves. The sea washes ashore pebbles and shells and the gentle breeze sways the yachts and catamarans into the deeper waters of the sea and the waters form small dunes on the shore Sea gulls hover in the sky and then rest on the sails of the fishing boats. There are many more breathtaking sights that will please you and hold you spell bound in Tamil Nadu. Chennai This metropolis is often called the cultural capital of India for its deep-rooted traditions and long heritage. Chennai is a city younger than its image. More than any other city in India, it is a true reflection of this countrys diversity. In a time span of just over 350 years, Chennai has blossomed into a charming city that has a large heart and is very welcoming. It is city that encourages all forms of development, both modern technology and the traditional arts and crafts, and it embraces a series of paradoxes. In 1639 Francis Day and Andrew Cogan, agents for the English East India Company, acquired a strip of land on lease from the Vijayanagar King. They built the Fort St.George, which remains till date citys important landmarks and serves as the Government Secretariat today. It was built to set up a factory that served as a nucleus for British settlements that began to be formed. Surrounding villages like Triplicane, Purasawalkam, Egmore and Chetput slowly merged with the new developments, to form Chennapatnam, as it was known. The city was called Madras till 1996 and then renamed Chennai. Today this buoyant metropolis is a blend of the old and the new, the traditional and the modern. Kanniyakumari Described as the southernmost end of Tamil Nadu, the lands end of India or the point where the three seas meet, enchanting Kanniyakumari or Cape Comorin is one of the most popular tourist spots in the state. Part of the fascination is of course due to the fact that it is the very tip of the Indian peninsula and the confluence of the Bay of Bengal, the Arabian Sea and the Indian Ocean. Nature is so spectacular at Kanniyakumari that several other Indian beaches seen pale by comparison. Cape Comorin is at its best during Chitra Pournami (the full moon day in April) when the sun and moon are face to face on the same horizon but other full moon days are also special and you can see the sun set and the moon rise almost simultaneously. It seems as if it is by prior arrangement. Kanniyakumari is 705 kms from Chennai.

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Rameswaram Rameswaram is a small island in the Gulf of Mannar, is a major pilgrim centre. It is connected to the mainland by road and railway bridges. Rameswaram is a holy place because Sri Rama, on his return from Sri Lanka, offered his thanks to Lord Shiva and performed pooja to wash away his sin in killing the Demon King, Ravana. Rameswaram is known for its 22 theerthas or wells in and around the main temple. This place is equally sacred to both Vaishnavites and Shaivites. According to Hindu Mythology, if one visits Rameswaram and prays to Lord Shiva one will be relieved of ones sins. It is 197 metres long.The Ramanathaswamy temple is renowned for its magnificent corridors and massive sculptured pillars. The third corridor of Ramanathaswamy temple is the longest one in the world. Madurai Madurai is known as Athens of the East, Madurai is a place of great historical and cultural importance. It is the oldest city in Tamil Nadu and Madurai lies on the banks of the River Vaigai. Madurai is one of the liveliest cities in South India it was originally known as Kadambavanam or the forest of Kadamba or the Nauclea kadamba. Legend says that Lord Shiva appeared in the dream on the king, Kulasekhara Pandya. The king was amazed to see drops of nectar or madhu falling down of earth from Lord Shivas matted hair. The madhu was so sweet that the place where it fell came to be known as Madhurapuri, which in course of time became Madurai. Tamil and Greek documents record its existence from the 4th century B.C. Being in the heart of Tamil Nadu, Madurai has fostered an essentially Dravidian and Tamil culture. Famous for its cultural and scholarly pursuits, the city had an academy consisting of critics, poets and savants highly esteemed both by kings and commoners. It was in Madurai that three successful conferences of Tamil scholars called sangams flourished under benevolent royal support. Madurai is famous for housing one of the five traditional dance halls where Lord Shiva, in his form as the Silver Hall or the Velli Ambalam. It is situated within the Meenakshi Temple. Madurai was the capital of the dynasty. The Meenakshi-Sundareswarar Shrine is its central glory. The Muslims invaded Madurai in the 14th Century. Later it came under the rule of the Nayaks, and the rule of Thirumalai Nayak, who is remembered as the maker of modern Madurai, was an eventful one. Madurai was known to be the centre of learning and pilgrimage for centuries. Today, Madurai is a modern commercial and industrial city, with a vast University campus and is renowned for its weaving mills and dyeing industry. The chungadi cotton sarees are the specialty of this city with its colourful tie and dye motifs. Handicrafts, brassware, bronze items and the famous wooden toys of Madurai are some of the notable artifacts. Madurai is 450 kms from Chennai. Mamallapuram Though it is no longer a port, Mamallapuram has retained its fame in stone, thanks to the great contribution of Pallava artisans. It is among the most outstanding examples of Dravidian art and architecture and a jewel in the crown of Tamil Nadu. In a land that is liberally strewn with some of the best in temple art, Mamallapuram holds its own, and stands as a silent yet eloquent witness to the glory of its creators. Unfortunately most of the work was left incomplete, and time and nature have also eroded the remains of this once great port. Mamallapurams wonders in rock leave visitors enthralled, conveying as they do, an impression of beauty and harmony. The monuments are floodlit at night and so it is possible to enjoy their beauty even after sunset. The Mamallapuram dance festival is conducted every year during Dec-Jan. It is a month long festival and dances take place during the weekends. Classical dances such as Bharatanatyam, Kuchipudi, Kathakali, Mohini Attam, Odissi, Kathak etc., are performed by well-known exponents of the art.
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Karnataka
Bangalore

Domestic Tourism in India

Located 949m above sea level in South India on the Deccan Plateau, Bangalore enjoys a salubrious climate throughout the year. The city boasts of spacious gardens, parks, tree-lined avenues, a profusion of flowering trees, lakes, parks earning it the sobriquet of Garden City. The once-sedate cantonment settlement of the British has now spread way beyond the mud fort and the four towers constructed by Kempegowda in 1537. With its booming economy and racy lifestyle, the capital of Karnataka has metamorphosed from a sleepy Garden City into one of Indias fastest growing, accommodating, technophiliac, and cosmopolitan cities. Surrounded by weekend getaways, Bangalore makes an ideal hub for visitors who want to travel to the many hill stations and coastal towns of South India. Mysore Known for its magnificent palaces and majestic buildings, sprawling gardens and tree- lined boulevards, shimmering silks and sandalwood, the City Royale always figures in the tourists itinerary. It conjures up visions and memories of the resplendent glory of the illustrious Wodeyar Kings. This former state capital is a seamless blend of old-world charm and modernity. It retains its tradition in music and dance, art and literature, and time-honoured crafts. Mysore today, is a pleasant and growing city in Karnataka with an old world charm, owing to its broad avenues, picturesque gardens, exceptional edifices and a salubrious climate. Karnatakas forests and wildlife are her priceless natural heritage. The State boasts of some of the largest jungle tracts south of the Vindhyas. From the majestic evergreen forests of the Western Ghats to the scrub jungles of the plains, a wide variety of habitats teem with diverse flora and fauna, some of them endemic to the region. Some of these jungles were the private preserves of former rulers. Thanks to their protection, these jungles have survived. However, some of the lesser-known ones are sanctuaries protected by the local populace. Bandipur National Park It is one of Indias best known protected areas and is an important Project Tiger reserve. It is located in the Chamarajanagar district of southern Karnataka in South India, and is contiguous with the Mudumalai National Park in the neighboring state of Tamil Nadu, the Wynad Wildlife Sanctuary in Kerala, and the Nagarhole National Park to the northwest. It is home to around seventy tigers and over three thousand Asian elephants (as per the 1997 census [2]), along with leopards, dholes, gaur and sloth bears. Bandipur is part of the Nilgiri Biosphere Reserve. Rajiv Gandhi National Park (Nagarhole) The exclusive hunting reserve of the former rulers of Mysore, the park has rich forest cover, small streams, valleys, and waterfalls. It stretches over 640 km, protecting the wildlife of Karnataka. Together with the adjoining Bandipur National Park (870 km) and Mudumalai National Park (320 km), it forms the largest protected area in southern India. B R Hills Sanctuary: A unique blend of hill resort and wildlife sanctuary. The hills take their name from the ancient Ranganatha Swamy Temple that sits at the edge of a granite precipice with a drop of more than 1000 ft. 50

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Karnataka abounds in a torrent of sparkling waterfalls set amidst the sylvan environs of the districts of Kodagu and Uttara Kannada. West-flowing rivers gush through thick forests in coastal Uttara Kannada, breaking into streams that meander over hilly tracts to end in a series of dramatic, plunging finales throughout the region. Jog Falls Bear witness to natures headlong tumble as the Sharavati river makes a spectacular drop of 810ft. (253m) in four distinct cascades known locally as Raja, Rani, Rover, and Rocket to create the highest falls in Asia.

Rajasthan
Folklore of heroism and romance resound from the formidable monuments that majestically stand to tell the tale of a bygone era. The magic of vibrant Rajasthan its rich heritage, colourful culture, exciting desert safaris, shining sand-dunes, amazing variety lush forests and varied wildlife makes it a destination nonpareil. Rajasthan is often portrayed as one vast open-air museum, with its relics so well preserved that it delights even the most skeptical traveler. It is an incredible destination for the outdoor-tourist take a safari on horses, camels, elephants or even in jeeps, with the Aravalis Indias oldest mountain range as the backdrop. Feast your eyes on spectacular sanddunes, take the tiger trail, or just watch the birds in the wetlands. You can also choose to pamper yourself in the lavish heritage properties. Rajasthan has something for everyone. One just has to choose an activity appropriate to ones temperament. Ajmer South west of Jaipur, Ajmer is an oasis wrapped in the green hills. The city was founded by Raja Ajay Pal Chauhan in the 7th Century A.D. and continued to be a major centre of the Chauhan power till 1193 A.D. Then Prithviraj Chauhan lost it to Mohammed Ghori, after which Ajmer became home to many dynasties. Today, Ajmer is a popular pilgrimage centre for the Muslims as well as Hindus. Especially famous is the Dargah Sharif-tomb of the Sufi saint Khwaja Moinuddin Chisti, which is equally revered both by the Hindus and the Muslims. Ajmer is a centre of culture and education. The British chose Ajmer for its prestigious Mayo College, a school exclusively for Indian nobility at one time. However, now it is one of the best public schools in the country. Ajmer is also the base for visiting Pushkar (14 km.) which has the distinction of having the only Brahma temple in the world. The Picturesque Pushkar Lake is a sacred spot for Hindus. During the month of Kartik (Oct/Nov), devotees throng in large numbers to take a dip in the sacred lake. Jaipur Jaipur is 260 km from Delhi and 240 km from Agra and forms the golden triangle of Delhi, Agra and Jaipur. It a bustling capital city and a business centre with all the trappings of a modern metropolis but yet flavoured strongly with an age-old charm that never fails to surprise a traveler. The old Jaipur painted in Pink can grip any visitor with admiration. Stunning backdrop of ancient forts: Nahargarh, Amer, Jaigarh and Moti Doongari are apt testimonials of the bygone era and a reminder of their lingering romance and chivalry.

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Udaipur

Domestic Tourism in India

Udaipur is often called Venice of the East. It is also the city of lakes. The Lake Palace (Jag Niwas) located in the middle of Pichola Lake is the finest example of architectural and cultural marvel. The grand City Palace on the banks of the lake along with the Monsoon Palace (Sajjan Garh) on the hill above enhances the beauty of this magnificent city. Udaipur is also the centre for performing arts, crafts and its famed miniature paintings. The Shilpgram festival is a great crowd-puller on new year. Maharana Udai Singh founded Udaipur in 1559 AD. According to a legend Udai Singh was guided by a holy man meditating on the hill near Pichola Lake to establish his capital on that very spot. Surrounded by Aravali Ranges, forests and lakes made this place less vulnerable to external invasion than Chittaurgarh. Maharana Udai Singh died in 1572 and was succeeded by Maharana Pratap who valiantly defended Udaipur from Mughal attacks. Maharana Pratap is the most revered Rajput icon who gallantly fought the Mughals at the battle of Haldighati in 1576. Mewar continuously defied foreign invaders and has a history of bloody battles until the British intervention in the nineteenth century when a treaty was signed to protect Udaipur. Upon independence, Udaipur merged with the union of India. Jodhpur This bustling desert city is the second largest in Rajasthan after Jaipur. It was founded by Rao Jodha, the leader of the Rathore clan, in 1459 AD. The mammoth, imposing fortress (Meherangarh) has a landscape dominating a rocky ridge with the eight gates leading out of fortress. The new city is outside the structure. Jaiselmer The name Jaisalmer evokes utter magic and vibrancy of the desert. Its straight out of an Arabian Nights fable. The hostile terrain notwithstanding the warmth and colour of people is simply overwhelming. One of the main draws is the daunting 12th century Jaisalmer Fort. The beautiful havelis which were built by wealthy merchants of Jaisalmer are yet another interesting aspect of the desert city. The desert citadel is truly a golden fantasy in the Thar Desert. Bhati Rajput ruler Rawal Jaisal, after whom the city finds its name, founded Jaisalmer in 1156 AD. Jaisalmer is a paragon of beautiful culture and harsh climatic conditions, these together leave a lasting impression on the visitors. The old city was completely encircled by a wall but much of it has crumbled sadly for want of building material in recent years. The massive golden fort, which is the essence of Jaisalmer, is entered through First Gate, is a burrow of narrow streets with Jain Temples and old palaces. The main market, the Sadar Bazar is right below the hill. The bank, offices and several shops are also located near the Amar Sagar Gate to the west.

Religious Tourism
India has long been known as a very spiritual, religion heavy area of the world. Here, religion is a way of life. Understanding this aspect of secular India, the hospitality industry is trying to tap into religious tourism, which could reap rich dividends. Major hotel chains and newer entrants into the hospitality industry see good potential business coming from the increasing demand for quality accommodation at affordable prices. Religious tourism has emerged as a booming market in India, a study by National Council for Applied Economic Research shows that of the 230 million tourist trips undertaken in India, the largest proportion is made up

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of religious pilgrimages. Undertaken by both rural and urban Indians, they outnumber leisure holidays in hill stations, getaways to sea beaches and even trips to metropolitan cities.(National Council for Applied Economic Research (NCAER), 2003) India is richly endowed with ancient temples and religious festivals. Religions originating in India, be it Hinduism, Sikhism, Jainism or, have a vibrant culture and spiritual philosophy. Together, they present a viable, alternative way of life as compared to the materialism and confrontation prevalent in the West. Within its distinct segment, religious tourism in India offers a variety to attract different kinds of tourists. To begin with, there are pilgrimages to several world-renowned temples and shrines, such as Tirupati, Vaishno Devi and Sabarimala. For those seeking more enduring pilgrimages, there are the Char Dhams (four holy sites) at the four corners of the country and the twelve Jyotirlingas scattered across the land.

TABLE 12. Sources of Religious Tourists


Rural and Urban India
Rural India Urban India
Source: National Council of Applied Economic Research

Million
169 61

TABLE 13. Indians Keep the Faith: Religious Tourism Boom in India
Religious Hotspot
Tirupati, South India Puri, East Coast Vaishno Devi, North India Haridwar, North India Naina Devi, North India Mathura, North India Ajmer Sharif, West India Amritsar, North India Shirdi, Western India Badrinath & Kedarnath, Himalayas

Purpose of Visit
Temple, Deity Temple, Deity Temple, Deity Holy Bathing, River Ganges Temple, Deity Pilgrimage, Place of birth of Lord Krishna Tomb of Saint Golden Temple - Holiest Sikh Shrine Pay respects to Saint Sai Baba Pilgrimage to seek atonement

Visitors (million)
23 18.17 17.25 11.04 8.28 8.28 8.22 7.13 6.21 4.1

Source: National Council of Applied Economic Research

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Domestic Tourism in India

Adventure Tourism
Adventure tourism has increased in India in recent years due to the efforts taken by the Indian government and the MoT. The scope for adventure tourism in India is endless because the country has a rich diversity in terms of climate and topography. Various kinds of adventure on water, land, and air can be enjoyed in India. The various kinds of adventure tourism as available in India are: Rock climbing Skiing Camel safari Para gliding Mountaineering White water rafting Trekking

Rock-climbing
As a kind of adventure tourism in India, rock climbing is relatively new. Due to the presence of climbing rocks in large numbers throughout the country, rock climbing as a kind of adventure tourism in India is taking off in a big way. The various places in India where tourists can go for rock climbing are Badami, Kanheri Caves, Manori Rocks, and Kabbal.

Skiing
Skiing in India as a kind of adventure tourism has become popular in the last decade. The country has a large number of hill stations which have excellent skiing facilities. This has given rise to skiing adventure tourism in India. The places in India where tourists can go for skiing are Gulmarg, Manali, Auli etc.

White Water Rafting


Whitewater rafting in India is a relative newcomer in the domain of adventure tourism in India. This has been increasing due to the presence of a number of rivers, water falls, and rapids. The places where a tourist can go for whitewater rafting in India are Ganga, Alaknanda, and Bhagirathi rivers.

Mountaineering / Trekking
Mountaineering in India is also quite popular in the arena of adventure tourism. Tourists can go to Garhwal, Himachal Pradesh, and Jammu and Kashmir for indulging in mountaineering.

Camel Safari
Camel safari in India has also become very popular due to the initiatives taken by the tourist boards of some Indian states. The most famous destinations in India for camel safaris are Bikaner, Jodhpur, and Jaisalmer. Paragliding in India has developed recently and paragliding facilities are available in a lot of places in India.

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India MICE Market


Meetings, Incentives, Conventions & Exhibitions (MICE) market is a fast growing one and has exhibited a huge potential worldwide. It is a recognized fact that international and regional conferences contribute greatly towards building up of mutual goodwill and understanding, encourage interaction between nations, bring tremendous amount of knowledge and frontier technologies particularly for the developing countries. There is a growing interest amongst tourists to experience the rich culture and heritage of India. With increasing opportunities for holidays and leisure, India is now becoming one of the leading venues for MICE in the region. The MICE infrastructure in the country has been developing rapidly and convention hotels and conference venues of international standards are being set up in cities across the country. With the corresponding expansion in the network of airline operations, India is ready to position and market itself as an important MICE destination. Despite its recent troubles, India is growing and so are its meeting and convention facilities and leading Meetings and Conventions cities include: Agra Bangalore Chennai Goa Hyderabad Jaipur Kochi Kolkata New Delhi

India is marketing itself as a destination which can offer myriad of experiences. It is a unique Conference Destination as it offers cultural and heritage sites, the exotic and mystical, excellent facilities of beach and adventure holidays which can be combined as pre and post conference tours to sum it up India has literally everything that a visitor wants to experience and can offer people a complete holiday. Indias image as a conference destination is also projected through the chains of Hotels, providing international standards in facilities and services. Exclusive business hotels and exotic resorts, with meeting rooms of distinction, spacious convention facilities, modern business centres and a wide range of conference facilities. India is in a continual process of upgrading its MICE (Meetings, Incentives, Conferences & Exhibitions facilities. There are multiple plans on the anvil for more world-class convention centers, airports that contest with the best in the world and efforts to team the famous Indian hospitality with pitomizedn as per a visitors requirement. You could also offer the credit to the world class incentive programs, her ability to heal spiritually, her unmatched offering as a health destination or continually improved infrastructure facilities that over 3 million foreign tourists thronged her this year generating over US $30 billion as revenue, even as most other preferred hotspots marked a decline in their tourism graphs. The inbound MICE (meetings, incentives, conventions and events) segment is growing at 15 to 20% annually. It is estimated that the total national and international MICE meetings market all over the world is in excess of $270 billion.

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Domestic Tourism in India

India provides an impressive combination of accommodation and other conference support facilities to hold a successful Conference. To mention a few; Vigyan Bhawan in New Delhi, Renaissance Hotel and Convention Center in Mumbai, the BM Birla Science and Technology Centre in Jaipur, the Jaypee Hotels & International Convention Centre, Agra and the Cochin Convention Centre, Kochi etc together with facilities in the business hotels and resorts at various centers in the country. India is going the global way and MICE is fast becoming a major part of its travel and promotional budgets. In the Indian context, incentives are at present the largest component of MICE but it is a maturing market. With the expansion in the network of airlines operation on the domestic routes, better tourist surface transport systems including the Indian Railways, new centers of information technology, many new convention centres, hotels and meeting facilities, India is now an important MICE destination. The Indian sub-continent is emerging as one of the finest Incentive destinations in the world owing to the diverse culture and geography. The incentive programmes are a combination of old world charm and tradition interlaced with modern cosmopolitan sophistication. Today, there are distinct travel divisions within tour companies and airlines that exclusively target MICE movement. Destinations have also begun to market MICE products to pitomized agencies and the corporate world at large. The business of MICE holds enormous potential for any country. It is estimated that a person travelling to a country for a conference or convention spends anywhere four to eight times more than a normal leisure pitomiz. They spend more on food, more on business centre services. India is globally connected to a network of over 50 international airlines and several domestic airlines, which provide convenient connectivity within India. Added to this is an elaborate network of surface transportation system. There is an excellent Railway system running through the entire country. All-important cities are connected with state-of-the-art Shatabdi & Rajdhani Express trains. Special trains like Palace on Wheels and Royal Orient Express, comprising of airconditioned saloons decorated in the old Maharaja style .An excellent network of roads, national and state highways, luxury coaches, Indian & foreign-make vehicles add to the convenience and comfort of surface travel and, to add to this, India offers an educated manpower base where fluency in English and other official international languages can be expected. A large number of Convention Centres are available in India with a seating capacity of up to 2000 persons. The important conference centres in the country are at New Delhi, Mumbai, Agra, Bangalore, Chennai, Cochin, Goa, Hyderabad, Jaipur & Kolkata. Some important hotel chains like the Taj Group, ITC-Welcomgroup, the Oberois, Meridien Hotels, Marriott Hotels etc. also have excellent conference facilities. The exhibition industry has also gained fresh impetus with exhibition centres like Pragati Maidan in New Delhi, the Nehru Centre in Mumbai and the Chennai Trade Centre in Chennai amongst several other options.

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Current Trends
After several years of healthy growth, 2009 is expected to be much tougher for the Indian Domestic tourism, hospitality and leisure (THL) industry. The combination of a global recession, credit crunch and rising unemployment has placed the nations economy at or near recession leaving lesser money available for consumers leisure travel and other forms of entertainment. Corporations, meanwhile, are implementing cost-cutting measures such as reducing employee air travel and scaling back or eliminating group meetings at convention hotels and destination resorts. According to Federation of Indian Hotels and Restaurants Association of India rates across India have fallen by 25 percent on an average, as the occupancy levels have fallen to 50 percent. Delhi and Mumbai have witnessed the sharpest decline in five-star hotel room rates and business class airfares in the first quarter of 2009, among the top cities in Asia-Pacific (APAC) region, as per a study by business travel management firm Egencia. Indias domestic traffic continued to fall during the first three months of 2009 with passenger numbers on domestic flights down 15% in January, 9% in February and 15% in March. According to figures published by the Indian civil aviation ministry Indias airlines carried some 9.7 million domestic passengers in the first three months of 2009. Kingfisher leads the way with 2.68 million giving it a market share of 27.6%. Combining Jet Airways (1.74 million) and JetLite (0.72 million) gives Jet a market share of 25.4%. IndiGo with 13.7% is still ahead of Spicejet (12.2%) among the pure LCCs. Among Indias international airlines Jet Airways and JetLite both achieved at least 75% average loads. Kingfishers new international services are so far filling around two-thirds of all their seats. (Airline Network News & Analysis, 2009)

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Current Trends and Information on Key Outbound Destinations which are Competitive to Nepal including Singapore, Thailand and Malaysia
Since the past decade Tourism in mainland Southeast Asia has entered a new era. Singapore has always been a cosmopolitan city and has attracted major corporate giants. Thailand, has become hugely popular with its top resorts, such as Phuket and Koh Samui, are swamped by foreigners, particularly in the winter high season. Malaysia for its top notch hotels and site seeing has surely won many hearts. The best part about travelling in Southeast Asia is that it offers something for everyone. Sunshine and warm water, dense jungle, frigid mountaintops, crowded cities, steamy markets and a wealth of outdoor pursuits, from scuba diving to bungee jumping to off-road dirt biking. Existing under a diverse cultural, historical and linguistic framework that remains as varied and complex as ever, along with plenty of tourist-friendly infrastructure. Thailand is without a doubt the transport hub of the region, as well as the most popular country in terms of tourist numbers. Extensive and cheap road, rail and air travel networks ensure easy access to Malaysia and Singapore, which follow closely in terms of popularity with huge, bustling cities to enjoy, shop, eat and play. In the past few years these countries have aggressively adopted marketing efforts to target Indian travellers, considering the fact that the Indian have become more open about spending on holidays outside the country and exploring new places and specially the efforts of these countries in providing the Indian best of deals to bring them there. Also these countries have opened there representative offices in India as the major part of their national income comes from Tourism. Its not just about travelling to these countries, its also about working and studying in places like Singapore and Malaysia as a lot of Indian universities have their campuses located in this area and also Southeast Asia is also location of headquarters for a lot of multinationals. They have adopted strategies like Truly Malaysia, Uniquely Singapore and Amazing Thailand with television commercials of the same in all the leading channels and print ads in all the leading travel magazines. Among the five sub-regions of Asia Pacific, Southeast Asia posted the largest growth in arrivals for 2008, at 3.3%. According to PATA Annual Tourism Monitor 2008, the number of international tourist arrivals to Southeast Asia registered 64.32 millions. In 2008 Singapore posted 10.12 millions arrivals which declined by 1.6% as compared to 2007. During the same period Thailand showed a marginal increase in international visitor arrivals by 0.8% to 14.58 millions. Malaysia saw a 5.1% increase in international arrivals by 22.05 millions in 2008. As far as any international tourists (including Indian) are concerned they view theses destinations as value for money, less travelling time, affordable air tickets, great sight seeing, shopping at its best, perfect adventure sports, a partying delight, a gastronomic den, a corporate hub, also the best in education facilities and a home away from home.

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SINGAPORE
Republic of Singapore is an island city-state located at the southern tip of the Malay Peninsula, lying 137 kilometres (85 mi) north of the equator. Capital City City of Singapore

Places of Interest
There is a lot to do in Singapore such as one can visit Jurong Bird Park, Night Safari, Singapore Zoological Gardens, The Singapore Crocodilarium, Butterfly Park and Insect Kingdom when travelling with children. However there are other places of interest such as the Philatelic Museum, Singapore Mint Coin Gallery and if one is more of an explorer must visits are the China Town, Little India, Holland Village, Mount Faber and many more. Profile of the Indian Traveller Strong middle class Indian, who is first time traveller. Prosperous and well-off business men.

Current Trends
Indian visitor arrival has doubled to Singapore in the last 5 years. Around 7, 49,000 tourist arrivals were recorded to Singapore, however it increased to 7, 78,000 in the year 2008. It is one of the most preferred 60

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destinations by the Indian tourist because of its easy accessibility and cheap air tariff, efforts of Singapore Tourism Board (STB) in India to attract Indian travellers and promote Singapore as a family destination.

Months when Indian Likes to Travel to Singapore


About 60% of the Indians travel to Singapore in the months of May and June, corresponding to summer holidays. Other months are October and November. It has also been noted that on an average there are 1,03,000 Indian arrivals in the month of May.

Duration of the Stay in Singapore


The average length of stay in 2003 was 9.1 days and in 2009 it is expected to hit double digits.

No. of Flights in a Week from the Capital City to Singapore


Singapore Airlines offers flights from all the major metros from India including Hyderabad. Even Jet has started its flights to Singapore. Successful Airline tie-ups - *N/A

VISAS
To strengthen ties with India, Singapore tourism board has introduced e- visas.

MARKETING INITIATIVES
The STB with its office in India works in close proximity to satisfy the needs and wants of the Indian tourist and Indian palette. The Singapore Tourism Board frequently works with its travel trade partners to provide the Indians with special value-added travel packages to make their visit to Singapore even more memorable. According to the reports India features in the top seven markets for Singapore and will come up to top five in the next two to three years. It is also targeting the tier-II cities in India as there is a registered growth of 4.5% in the year 2008.

TABLE 14. Singapores India-Promotion Plan


MONTHS
Indian Calendar

JANUARY
Wedding Season

FEBRUARY MARCH
Wedding Season School/ college exams

APRIL
School/ college exams/ Summer Vacations Cruise/ GSS Family

MAY
School/ college Summer Vacations

JUNE
School/ college re-open

JULY
*N/A

Singapore Promotes

Cruise Romance

Cruise Romance

Cruise Family

*GSS Romance

*GSS Romance

*GSS Romance

*GSS Great Singapore Sale *N/A Not Available

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ELECTRONIC MEDIA
The STB has launched many television commercials in the past, its advertisement campaign UNIQUELY SINGAPORE is breaking fresh grounds. Moreover it has also launched its mega campaign directed specially at CHILDREN in channels like POGO which tries to sell the city as a fun place. There strategy is also to penetrate regionally by TVCs and destination advertising in serials like SONAR HORIN (BENGALI).

PRINT MEDIA
The STB tries to market aggressively with their double spread advertisement in all the leading magazines and newspapers, specially travel supplements and weekend newspapers conveying facts like Singapore is a shoppers paradise etc.

TRAVEL PACKAGES
The STB has made a deliberate effort not to play a violent price game like its competitors (Thailand and Malaysia) where its travel packages are concerned. They believe that the destination provides a flavour of both the east and west, hence avoid the price war. The board is also targeting the stopover markets, many flights have their halts in Singapore, and hence to capture that halting traffic they are introducing stopover packages. Kuoni in Association with STB Announces Launch of Luxury Packages for Great Singapore Sale Kuoni in association with STB, has announced exclusive high-end luxury packages for the Great Singapore Sale scheduled to take place from May 29, 2009 to July 26, 2009. With the Great Singapore Sale Tourist Privilege Card the customer can enjoy special privileges ranging from dining, sightseeing, beauty and wellness to nightlife and entertainment. Singapore has some of the best Luxury Hotels in the world such as Marina Mandarin, St Regis, The Raffles, Sentosa Spa & Resort, Swissotel Stamford, Four Seasons, Fullerton and Capella. Kuoni has exclusively tied up with these luxury hotels to promote the Great Singapore Sale. As part of Kuonis high-end packages for Singapore, travelers can also avail additional benefits that are complimentary for Kuoni clients. These include Chinese set lunch, discounts on Spa treatments, wireless/ broadband internet connection in the room, daily full buffet breakfast, lunch and evening cocktails, late check out, Anti Stress Back massage, use of the Spa facilities, chocolate fondue set, chocolate buffet, etc. Customers can enjoy the Great Singapore Sale Tourist Privileges and get 50 per cent off on iPod Touch and up to 55 per cent off on branded items. Kuoni offers an exclusive discount of 10 per cent for MasterCard members on the Great Singapore Sale package. India and Singapore Joint Action Plan on Tourism Cooperation India and Singapore has signed a joint action plan on tourism cooperation. The agreement was signed by Sujit Banerjee, secretary (Tourism), government of India and Lawrence Leong Yue Kheong, assistant chief executive of International Group, STB, Singapore. Kumari Selja, minister of tourism and minister of housing and urban poverty alleviation, government of India and S. Iswaran, senior minister of state for trade and industry and education, government of Singapore witnessed the signing by tourism officials of India and Singapore. The Joint Action Plan reiterates the provisions of cooperation enshrined in the bilateral agreement on tourism signed between India and Singapore on Jan. 24, 1994. The objectives of the joint action plan are to strengthen joint marketing collaboration in third countries, such as member countries of ASEAN and China, for mutual benefit.

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To promote reciprocal visits of media representatives, travel agents and tourism operators, with the aim to create awareness about tourist attractions in each others countries. It also includes the following: Where appropriate, participate in tourism fairs in India and Singapore respectively. Where feasible, consider organizing a Singapore and India week at the sidelines of tourism fairs and to promote and encourage human resource development in tourism and travel related industries by collaborating through exchange programs for faculties, students and by exchanging information on teaching modules and curriculum.

EVENTS AND PROMOTIONS


To compete with the ever changing market, STB for its travellers organise festivals, promotions, exchange programs, conference all around the year. In the year 2008 the board marketed events were : Singapore Air Show 2008 The inaugural Singapore Air show, Asias largest aerospace and defence event, is a joint venture between the Civil Aviation Authority of Singapore and the Defence Science & Technology Agency. With a premier line-up of industry conferences and highlights such as an aerial display by the Australian and Singapore Air Forces, exhibition of rarely displayed aircrafts, and simulator rides, the Singapore Air show attracted over 120,000 public and trade visitors over its six-day run. Formula One Night Race Senior Minister of State for Trade and Industry, Mr. S. Iswaran, key officials from race promoter Singapore GP Pte Ltd and the STB witnessed the first demonstration of the lighting system to be used by the worlds first Formula One night race, the 2008 FORMULA 1. Global Movie Marketing Collaborating with Hollywood movies and hosting their world premiers in Singapore in co-ordination of tieup with other countries, winners won a 3 nights and 4 Days trip to Singapore that included air tickets, accommodation, and vouchers for them to enjoy various attractions that show the different sides of Singapore. Singapore Food Festival The Singapore Food Festival serves gastronomic treats in this month-long event, giving food lovers from all over the world an opportunity to sample the wide variety of Singapores local food favourites, and partake in the unique culinary events, intriguing food trails and attractive dining promotions island-wide, with a different theme. The Great Singapore Sale Currently in its 14th year, the Great Singapore Sale (GSS) returned with attractive offers, tempting rewards and exciting events. Featuring an eight-week shopathon, shoppers and visitors enjoyed discounts of up to 70% along the central shopping belt of Orchard Road and Marina Bay, as well as shopping precincts in the heartlands. This years GSS showcased the spirit of Singapore, with a range of uniquely Singapore brands, lifestyle products and collectibles that locals and visitors can take home .

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MEDICAL TOURISM
The STB s aim is not only to focus tourist holidays but it has also made sure that it promotes its self in other areas which makes Singapore truly unique. Though it is dynamically, a multi-cultural city, rich in contrast and colour with strategic location, excellent infrastructure and great attractions, the STB has made sure that Singapore becomes a leading destination, not only for business and leisure, but also for world-class, affordable and safe healthcare and becomes Asias leading medical hub. This also resulted in launch of Patients Beyond Borders. Patients Beyond Borders is the first comprehensive guide for Americans considering medical tourism. Less about travel and all about healthcare choices, this consumer guidebook provides practical answers for the increasing numbers of Americans facing long-term financial insecurity due to challenging medical conditions. Singapore Edition is voted the Best Medical/Wellness Tourism Destination by Travel Weekly (Asia) Industry Awards 2007 in June for the second year running, and the second most desired destination for medical care and treatment after the United States by a Readers Digest Asian Health Survey across seven Asian cities in 2007, Singapore was the venue for the launch of Patients Beyond Borders Singapore Edition on 23rd July. Written by Josef Woodman and published by Healthy Travel Media, Patients Beyond Borders: Everybodys Guide to Affordable, World-Class Medical Tourism, is a trade paperback offering health travelers all the resources required to make safe, cost-effective decisions about travelling abroad for their healthcare, in Singapore. It is the STBs responsibility to spearheads the branding and marketing of Singapores healthcare services overseas, nurtures the medical travel market and promotes the development of overseas referral channels to strengthen the seamless delivery of quality healthcare to international patients. By 2012, Singapore hopes to attract 1 million medical travelers annually.

SINGAPORE EDUCATION
In year 2003, government of Singapore established and promoted Singapore as a premier education hub and help international students make an informed decision on studying in Singapore. This initiative is also led and supported by the Singapore Tourism Board. They have tied-up with the Indian university to build campuses such as S.P Jain Management School, which will help generate student traffic. In 2007 the STB organized Education Awards to recognise the best in the industry and also awarded scholars for their excellent work. In India they aim to strengthen the consultant network and recently 2.1 million Singapore education supplement booklets were distributed to all the leading newspapers. The key role of the board is to engage in a myriad of promotional activities undertaken by the Education Services Division which includes: Organising Education Exhibitions and Seminars Participating overseas education road shows to increase brand awareness and reach out to the target markets Singapore Educations brand Advertising and Publicity

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SINGAPORE SERVICE STAR
The Singapore Service Star is an accreditation scheme that seeks to epitomize and promote businesses that deliver good service and exhibit sound business practices. Developed by the STB, this scheme is designed to enhance tourists confidence when transacting in Singapore and deliver a truly unique experience to the visitors. Hence the STB honors the establishments that are attentive to enhancing the visitors experience. The Singapore Service Star is a scheme that will help businesses achieve service excellence which will ultimately lead to greater consumer spending, benefiting both industry players and Singapore as a tourist destination.

OTHER STRATEGIES
Indian Brand Ambassadors The STB used Indian superstar Mr. Amitabh Bachchan to promote Singapore, when the IIFA Awards were held in the early 2004. Indian Movie shoots The STB figures that the movie industry can be big force multipliers, especially if the movies are shot in the more attractive parts of the city. The board is offering help and clearances to production houses who would like to shoot in Singapore. Identifying two key markets: Conferences and Meeting and Honeymooners

ECONOMIC SLOWDOWN
In 2009 they strategise to beat the economic slowdown and sustain tourism industry with their UMBRELLA CAMPAIGN which includes 2009 REASONS TO VISIT SINGAPORE and many more. Strategy plan for India is to promote Singapore as an ultimate Romantic, Family and Educational destination.

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MALAYASIA
Malaysia consists of 13 states and three federal territories in Southeast Asia with a total landmass of 329,847 square kilometers. It is divided into two parts, namely Peninsular Malaysia and Malaysian Borneo. Capital City Kuala Lumpur

Places of Interest
Kuala Lumpur, Langkawi, Batu Feringgi, Sepang F1 Circuit, KLCC Twin Towers, Mt Kinabalu, Taman Negara, Gunung Mulu National Park, Sipanden and Genting Highlands.

Profile of the Indian Traveler


Strong middle class Indian, who is first time traveller Prosperous and well-off business men Ambitious Indian youth who are aim to travel with friends

Current Trends
Around 145,000 visitors from India travelled to Malaysia in the year 2003 and 550,738 Indian arrivals were registered in the 2008. The Malaysia Tourism Promotion Board (MTPB) aims at price sensitive Indian who has the tendency to visit places like Kuala Lumpur, Genting, Langkawi and Penang. They are putting efforts to lure 66

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Indian tourist in other places like Kota Kinabalu etc, as India is the sixth largest market for Malaysia. Out of the total Indian visiting the country 76% are mainly for holidays and honeymoons and are first time travelers, 43% out which are in the age bracket of 25-34 years.

Months when Indian Likes to Travel to Malaysia


More than half of the Indian travel to Malaysia in the months of April May, June and July.

Duration of the Stay in Malaysia


The average stay was registered approximately 5.7 days in 2005 as compared to 4.4 days in 2004. It is important to note that Malaysia entertains 20-25 % Indian from South India and Gujarat.

No. of Flights in a Week to Malaysia


Malaysia Airlines operates 32 flights from Chennai, Mumbai, Bangalore, Hyderabad and Delhi to Kuala Lumpur, while Jet Airways has one flight connecting Mumbai and Kuala Lumpur. The connectivity offered by the 70 direct flights per week from key cities of India available on the national carrier, as well as other foreign airlines flying to the Far East region.

Successful Airlines Tie-ups


Jet Airways had earlier signed a code sharing agreement with Malaysia Airlines and network-wide reciprocal frequent flyer partnership to provide customers with enhanced travel connectivity and privileges. Malaysia Airlines and Indian Airlines have a similar agreement in the past.

VISAS
There are tourist visas and also social visit passes for the long staying tourist.

Most Popular Destinations among Indians


Kuala Lumpur, Genting Highlands and Langkawi.

MARKETING INITIATIVES
The MTPB targets to attract not only the big cities but they believe and even the tier-II and tier-III cities have major potential as they contain largely untapped first time travellers. The board has initiated road shows in smaller cities and semi-metro and also plans string of promotions in cities like Ludhiana, Nashik, Indore, Kochi, Pune and Guwahati amongst others, in its attempt to reach larger number of Indians. Their strategies definitely differs from its counterparts, hence they are straddling two markets The first ones are budget travellers and value for money market The well-off, where the money is not an issue

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Tourism Malaysia Taps Tier-II Cities in India for MICE Traffic


Tourism Malaysia recently concluded its six-city MICE (Meetings, Incentives, Conventions, Exhibitions) road show in an effort to generate higher MICE traffic from Indias Tier-II cities. The road show, which was targeted at the high-yielding corporate travellers from the Indian market, was organised in Ahmedabad, Pune, Chandigarh, Kolkata, Hyderabad and Madurai. The thrust of the road show was to provide holistic product update through Meet & Experience Malaysia programme, which showcased the infrastructure and state-ofthe-art amenities to host and hold international conferences at the convention centres both in Kuala Lumpur and beyond. Malaysia currently has 2,360 hotels supplying 1,60,327 rooms, offering specialist facilities catering for meetings and conferences. The connectivity offered by the 70 direct flights per week from key cities of India available on the national carrier, as well as other foreign airlines flying to the Far East region, makes it an ideal MICE hub from India. Malaysia has hosted more than 100 MICE events from India representing varied industries, over the years. In terms of MICE, the total conference arrivals recorded last year were 1,000,000. Malaysia is now set to capture a greater share of the international MICE market to represent at least ten per cent of the total arrivals to Malaysia. India continues to remain an important tourism source market for Malaysia with 3,35,241 Indian arrivals between January to July 2008, registering an overall increase of 28.8 per cent as compared to the number of arrivals last year for the same period. Tourism Malaysia aims to target 500,000 arrivals from Indian market this year. Leading the race in incentive destinations, Malaysia doesnt lag behind on the conference and convention sector either. It hosts a number of conferences and conventions annually. Important events include the Malaysia International Furniture Fair (MAFEX), Foodex Asia, International Rubber Glove Exhibition And Conference (Malaysia is the largest producer of surgical gloves), Medical Scientific Exhibition and Conference and many such events.Malaysia has the expertise, state-of-the-art centres and services to cater to this segment. Malaysia has a sound backing of world-class hotels adjoining the convention centres. Apart from the infrastructure and facilities, Malaysia also offers professional expertise to facilitate conference or convention needs in the country. This makes the procedure a whole lot easier and cost-effective as one can commission local professional support as against flying down people from India. The country actually has companies termed Professional Conference Organisers or PCOs that specifically cater to MICE needs. These are exhibition contractors who handle the logistics and smooth functioning of a small to large scale exhibition.

ELECTRONIC MEDIA
The MTPBs advertising campaign Malaysia-Truly Asia has won the hearts of many Indians and highlights the countries rich flora and fauna. It initiates to target the aspirations of every Indian to travel abroad. However the focus remains more on travel packages.

PRINT MEDIA
The MTPB tries to market aggressively in all the leading magazines and newspapers specially travel supplements and weekend newspapers conveying facts like Malaysia is full of adventure etc.

TRAVEL PACKAGES
The MTPB strategizes to attract Indians by cut-rate budget packages and aggressive marketing its main target is to catch on as a hot destination for price-sensitive Indians. In the past Tourism Malaysia has unleashed 68

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attractive packages to visit Malaysia at a throwaway price. For example there are packages: for Rs. 18,000 to 21,000 a couple can fly down to the country and avail complimentary hotels for four days with breakfast also thrown in. And for the more affluent ones the MTPB works on various innovative packages. Thus was born Malaysia-My Second Home programme to aim at Indians who want to stay in Malaysia for a longer duration. It is also trying its hands on niche packages: for instance, it had launched Golf and Formula 1 incentive travel scheme for those who have the money to spend.

EVENTS AND PROMOTIONS


Malaysia boasts an exciting year-round calendar of world class and unique local events, ensuring visitors have endless opportunities to enjoy nature-based adventures, enriching cultural experiences or fabulous shopping sprees. The events which are lined up in 2009 are: 1. Sabah Fest 2009 The states most anticipated event, Sabah Fest features spectrum of cultures and traditions through dance, music, fashion and food. The festival is a prelude to the Harvest Fest celebration happening every year. 2. Flower Festival The Flora & Fruit Festival in Malaysia is held in conjunction with the local fruit season. 3. Malaysia Mega Sale Malaysias most popular shopping comes back every year. Visitors can find amazing discounts and special offers on a wide array of goods such as branded apparel, household equipment, electrical appliances, accessories and many more. One can check out the bargains at shopping malls, specialty outlets and boutiques all around the country. 4. Penang World Music Festival Music lovers get to revel with spectacular performances staged by world-renowned artistes and local musicians in a natural setting of lush greenery. The cool evening breeze and the hypnotic ethnic rhythms make it a memorable night! 5. Malaysia Savings Sale The Malaysia Savings Sale offers 37 days of fantastic retail therapy, great dining experience and fun-filled entertainment. This sale comes at a perfect time, coinciding with the Christmas and New Year celebrations as well as the Malaysian school holiday season. Visitors can shop and save as most items which range from apparels, accessories, home dcor to dining, leisure and holiday packages tht is offered at discounted prices.

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ECOTOURISM
Ecotourism is a new theme being used by Malaysia to attract highend Indian tourists who are looking for something exotic and different from standard 5 star hotel holidays. For the second time in a row, Malaysia won the best ecotourism destination award at the 2008 Travel- Weekly (Asia) industry awards held in Singapore. The hotspots include Langkawi, the only island in Southeast Asia recognised by UNESCO as a geo park because of its outstanding geological landscapes.

OTHER STRATEGIES
Tourism Malaysia realises that most Indians prefer to visit more than one country in Southeast Asia on a holiday and on limited budgets. Hence: twin destination marketing. For instance it has teamed up with Hong Kong Tourism Board where the packages are clubbed with both the place. Tapping the Indian corporate by offering special facilities for holding company conferences and meetings in Malaysia. Organising Malaysian Food festivals in the tier-II cities like Ahmedabad, as a lot of Gujaratis visit Malaysia every year from India.

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THAILAND
The Kingdom of Thailand is the worlds 51st-largest country in terms of total area, roughly equal in size to Spain, with a surface area of approximately 513,000 km2 (198,000 sq mi), and the 20th most-populous country, with approximately 63 million people. Capital City Bangkok

Places of Interest
There are a lot of places to be explored in Chaing Mai, Chiang Rai, Phuket, Pattaya, Ko Samui, Bangkok and many more.

Profile of the Indian Traveller


Strong middle class Indian, who is first time traveller. Prosperous and well-offs Indians who have lately started spending huge amount of money on weddings abroad.

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Current Trends
The numbers of arrivals of Indian have surely changed in the past decade. As per the statistics by the Tourism Authority of Thailand (TAT) the number of Indian as per the country of residence have increased from 4,29,732 in 2006 to 5,06,237 in 2007 and Indians by nationality have also experienced a tremendous growth from 1,59,254 in 2007 to 1,73,321 in 2008 . India visitor arrival contributed a total of 5,12,845 in 2008, which has witnessed 1-2% growth. The total numbers of Indian arrival at Suvarnabhumi International Airport in January this year were 35,971 while in February the arrivals were 32,855.

Months when Indian Likes to Travel to Thailand


Months of April May, June and July.

Duration of the Stay in Thailand


The average length of stay for Indian in the year 2007 was 6.07 days which has noticed a hike since the same year.

No. of Flights in a Week to Thailand


The airline with the most capacity is Thai International which flies twice daily from Delhi and Mumbai, daily from Chennai and Kolkata, nine times per week from Bangalore, and four times a week from Hyderabad. This adds up to a total of 23,000 seats a week. The routes from Thailand to India are called Happy all the way to the world.

Successful Airlines Tie-ups


On 29 March 09 Cathay Pacific started daily flights from Delhi to Bangkok, adding to capacity. Cathay launched a promotion putting a limited number of seats into the market at a low fare of 9,000 rupees. The regular fare is 15,000 to 16,000 rupees.

VISA
Liberal visa formalities. Indian visitors can obtain a visa on arrival at all international gateways in Thailand. In 2009, Thai government has waived off the visa fee until 4 June09 which has been marketed as an additional incentive to visit Thailand.

Most Popular Destinations Among Indian


Bangkok and Pattaya

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MARKETNG INITIATIVES
The TAT has always aimed at organising road shows all around the country to educate Indian travel and tour operators about Thailand. With its state of the art infrastructure and transportation Thailand is also making ends meet by initiating railway tourism. The TAT has identified target segments such as family groups, incentive groups, wedding parties, and honeymooners. It is targeting women travellers with its great deals and discounts at the time of shopping and highlights its adventure and sea sports. Thailand is also a vital relaxation destination with a great deal of authentic Thai massages to offer. In 2009 its main focus is targeting tier II cities as they have great potential.

ELECTRONIC MEDIA
India is now being promoted under the Amazing Thailand brand name along with its key sub-themes, Beaches, Nature, Heritage, Health and Wellness, Chic and Trendy Products, and Festivals.

PRINT MEDIA
The TATs marketing strategies also cover advertising in a range of high-end publications.

TRAVEL PACKAGES
The main selling points of Thailand in the Indian market include: value for money and affordability, great shopping, accessibility and proximity, variety, visa on arrival facility and year-round holiday destination. Increase B2B and B2C promotion in Tier II cities and joint promotions with travel agents. Organising road shows and workshops across India, leading Indian tour operators are being presented with various ideas to feature in a package. New tourism destinations being presented include Chiang Mai, Chiang Rai, Krabi, Phuket, Ko Samui and the Greater Mekong Sub-region.

EVENTS AND PROMOTONS


Thailand festivals and events are around the year and in all parts of the country, in north and South and also in central Thailand. It is for all kinds of travellers, whether you are on a leisure or business trip, there is not even a single event which does not fullfill your needs. 1. 2. 3. 4. Phuket Film Festival Laguna Phuket International Marathon. A scenic route along some of Phukets most spectacular west coast bays makes this an event that attracts runners ready to achieve a personal best. Amazing Thailand Grand Sale. Thailands annual Amazing Thailand Grand Sale starts in June every year and continues to offer visitors great bargains right through to 31 August. Rayong Funkky Fruit Festival. It is a borderless celebration of heritage, nature and culture in this stunning province of Rayong.

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OTHER STRATEGIES
Efforts are also being made to go direct to consumers in joint promotions with supermarkets and retailers. Celebrity marketing by bringing Indian movie stars to Thailand for feature productions and other publicitygenerating events Targeting retired professionals and Senior Citizens. Promising market is the Indian weddings which are exceptionally lavish and increasingly being staged abroad by the super wealthy. Looking into twin-destination packages in alliance with Myanmar.

ECONOMIC SLOWDOWN
Corporate travel followed by high-end tourist traffic and family holidays has been hit due to recession. But the authority is making sure that there are no cancellations as the packages are much affordable.

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Consumer Characteristics, Outbound, Major Tourism Players of Focus AreasDelhi and Surroundings and Mumbai and Surroundings
Delhi
Delhi has a population of 14 million. It is the second largest metropolis in the country and it has utmost political importance as Indias national capital is located in New Delhi. Delhi spreads over an area of 1,483 km. Compared to other Indian cities, Delhi has the relatively low density of 9,340 people per km. Delhis per capita income of around US$6,180 is almost double the national average(Urban age, 2007). Also indicative of the citys wealth is its high rate of car ownership, although the local home ownership rate is slightly below the Indian average. Delhis economy is concentrated in the services sector. Delhi, the capital of India, is situated in northern India and stands on the west bank of Yamuna River bounded by Uttar Pradesh and in the north, west and south by Haryana. The city has its historical importance for the fact that it has been the home to Mughal Empire. Apart from its historical importance, Delhi also happens to be the political hub of India, every political activity in the country traces its roots to Delhi. Delhi is bounded by four states namely Haryana, Punjab, Rajasthan, Uttar Pradesh and Punjab that have strong influence on the lifestyle of Delhi. Delhi is a cosmopolitan city where people are open to embracing new ideas and life style. You can notice the transition in the demography of people in Delhi with the changing lifestyle and the influence of modern ideas in the lives of Delhites. People from all parts of the country live in Delhi which makes the city very cosmopolitan in nature and there is unity among the citizens from all caste and creed. NCR is the metropolitan area of Delhi which encompasses satellite cities like Faridabad, Gurgaon, Ghaziabad and Noida. The origin of NCR is traced to the recommendation of first ever Master Plan of Delhi, way back in the year 1962. The prime aim was to reduce the burden of increasing population in Delhi and the growing demand for more space owing to large scale industrialization. Therefore the neighboring states like Rajasthan, Haryana and Uttar Pradesh came into consideration for developing satellite cities of Delhi. Gurgaon, Noida, Ghaziabad and Faridabad were the names that came up for developing the whole NCR region. MNCs and corporate bodies from all over the world are turning their heads towards Delhi sighting the manpower and skilled labor resource. NCR region is now the home to major international and domestic companies, be it IT, ITES, BPOs or other manufacturing and service industries. Owing to the proximity with New Delhi, there has been a tremendous growth in the infrastructure and economy of these cities. States like Haryana and Uttar Pradesh have benefited a lot from the recent developments in sectors like Real Estate, IT, ITES, manufacturing and other service industries Gurgaon: Gurgaon is located in the northern part of Haryana and the citys population is around 1,000,000 as per the 2001 census (SHARMA, G. 2009). Gurgaon is the main city of the National Capital Region of Delhi because it is the home to major IT companies and provides the best infrastructure in terms of schools, roads, housing societies and medical facilities. Gurgaon is famous for its outsourcing and off shoring services that contribute the most towards the economy of Gurgaon. The major industries in Gurgaon are IT, ITES, auto manufacturing and pharmaceuticals.

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Consumer Characteristics, Outbound, Major Tourism Players of Focus Areas- Delhi and Surroundings and Mumbai and Surroundings

Noida: Noida is one of the most modern cities of India with world class amenities and infrastructure. Noida is home to many big international as well as national companies like AgreeYa Solutions, GlobalLogic, EXL, Birlasoft, Impetus, STMicroelectronics, MtronPTI, Fiserv, Adobe Systems, TCS, CSC, HCL, ATC Labs, Interra and Xansa. Some of the main reasons behind the existence of these companies in Noida are the proximity of the city to Delhi and good infrastructure Faridabad: Faridabad is one of the main industrial cities of Haryana and comes under the region of Delhi & NCR. The city is bounded by Delhi in the north, Gurgaon in the west and the parts of Uttar Pradesh on the east and south. It is surrounded by river Yamuna in the east and the Aravalli hills in south and west regions. Newly developed Faridabad or New Faridabad is the most preferred destination for industries, IT companies, corporate bodies and government departments Ghaziabad: A Newsweek survey, which put the city on the global map, happened in 2006 and since then Ghaziabad has been hip and happening. In two years, it has done a complete makeover by adding malls, hitech cities and golf courses to its new face. Delhi has the advantage of its cosmopolitan society where there are people from every nook and corner of India. This makes the city very multi linguistic and multi cultured. Being the capital of the worlds largest democracy, Delhi has embassies of more than 160 countries.

Mumbai
The capital of the State of Maharashtra, Mumbai is a city of 19 million. The Greater Mumbai, stretches over 438 km, and it has an extremely high population density (27,348 people per km). The greater Mumbai, Metropolitan Region is the worlds fifth most populous metropolitan region. Mumbai is the entertainment and financial capital of India but the city also has the largest slums in the country. Mumbai contributes 40% of national income tax and 60% of customs duty. In terms of purchasing power parity (PPP), Mumbai is estimated to have an economy valued at US$126 billion (PPP), and a per capita income of US$6,924 (PPP) in 2005. In India, Mumbai has higher than average productivity per capita, service-sector employment and car ownership rates. On the other hand, the city has a lower than average home ownership rate and proportion of young people. Key challenges facing Mumbai include traffic congestion, loss of wetlands, frequent flooding and critical issues concerning housing and the citys slums. Yet the urban region continues to grow. Some projections state that Mumbai will overtake Tokyo as the worlds largest city within decades. (Urban Age, 2007) Mumbai is Indias financial centre, the economic powerhouse of the nation, heart of the Hindi film industry and the industrial hub of everything from textiles to petrochemicals. Enriched with culture and abounding with places for entertainment and leisure, there is something for everyone to engage in the city of Mumbai. Known as the liberal cosmopolitan cities of India, it welcomes people from all over the nation with open arms. Mumbai is a city of extreme contrasts, of great prosperity and abject poverty, of 21st-century technology and medieval squalor, epitomized by the destitute and crippled lying in rows beneath bright, electronic advertisements for dotcom companies. It boasts the finest collection of Victorian buildings anywhere in Asia and a myriad of temples and mosques. Yet 62% of its population lives in slums the highest percentage for any large Indian city. (Economic Times, 2004) Mumbai is also congested with people, its streets are clogged with traffic, its air is foully polluted by the barely controlled emissions of its factories and vehicles, and many of its buildings are slowly crumbling. However, the city still has much to offer. Mumbai is a colourful (the saris, the bazaars, etc.), vibrant, energetic and friendly city, with a varied and fascinating history and many reasons to face the future with confidence.

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DELHI MUMBAI ANALYSIS TABLE 15. Socio-Economic Parameters of Delhi and Mumbai
DEMOGRAPHIC PARAMETER
Estimated Households Estimated Population Average Household size Per Capita Income Share to Urban Population Share to Urban Income

DELHI
3.02 Million 14.44 Million 4.78 Rs. 43,155.00 4.89 % 10.58 %

MUMBAI
4.04 Million 19.13 Million 4.73 Rs. 40,768.00 6.48% 13.25%

DELHI AND SURROUNDINGS AVERAGE HOUSEHOLD INCOME IN 2007-08


City Delhi Chandigarh Jaipur Jalandhar Amritsar Lucknow Ludhiana Kanpur Bhopal Average Household Income Rs. 337,678.00 Rs. 422,503.00 Rs. 325,254.00 Rs. 323,181.00 Rs. 290,939.00 Rs. 289,020.00 Rs. 288,753.00 Rs. 164,677.00 Rs. 157,847.00

MUMBAI AND SURROUNDINGS AVERAGE HOUSEHOLD INCOME IN 2007-08


City Mumbai Surat Ahmedabad Nagpur Pune Average Household Income Rs. 403,059.00 Rs. 457,671.00 Rs. 328,267.00 Rs. 298,598.00 Rs. 191,520.00

NATURE OF INCOME
City Salaried Class Average Income in lacs Business Class Average Income in lacs Delhi 53.8% Rs. 1.83 32.3% Rs. 2.99 Jaipur 31.4% Rs. 1.23 43.8% Rs. 1.39 Lucknow 45.5% Rs. 1.39 26.5% 0.93 Chandigarh 61.5% Rs 1.61 18.9% Rs. 3.46 Mumbai 57.8% Rs. 2.05 31.7% Rs. 2.04 Ahmedabad 61.5% Rs. 1.61 33.6% Rs. 1.48

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Large Consumer Base and Increasing Affluence Levels


Access to a large and relevant target group is possibly the most important parameter for any marketer in selection of markets. Markets are selected based on their affluence level as well as size (current and expected in the future) as a judicious mix of both would be critical for any market to be seen as high potential across top eight Indian towns. Ernst and Young E&Y has created an Affluence Index which is calculated after analyzing various Affluence levels parameter such as per capita income, savings, employment rate, vehicle ownership, internet usage and credit growth. The weighted scoring system is often used to evaluate and quantify a wide range of product concept criteria. Individual evaluation criteria are scored and weighted to determine an overall concept score. Typically, the criteria are assigned values from 0 10, reflecting low to high scores; each criteria is also assigned a weighting factor that reflects its relative importance. Since some variables are more important than others, they should be assigned a greater weighting in the overall score. The E&Y created a weighted score Index by giving weightage to Affluence Index, Relevant Population Potential and Future Growth to arrive at a consolidated weighted score and the same is summarised in table 16.

TABLE 16. Affluence Index of Delhi and Mumbai DELHI AND SURROUNDING CITIES
City
Delhi Chandigarh Jaipur Bhopal Lucknow Ludhiana Amritsar Kanpur

Affluence Index
7.1 6.5 5.8 4.6 5.0 5.2 4.8 4.1

Relevant Population Potential


10.0 0.6 0.1 0.0 0.3 0.9 0.5 0.1

Future Growth
8.66 7.42 7.59 8.17 7.17 5.38 4.15 3.41

Ernst & Young Weighted Score


8.5 4.8 4.5 4.2 4.1 3.8 3.1 2.5

Source City Skyline of India 2006 by Indicus Analytics Ernst & Young Analysis

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MUMBAI AND SURROUNDING CITIES
City Mumbai Pune Ahmedabad Indore Nagpur Surat Nasik Vadodara Affluence Index 6.3 5.9 4.8 4.5 4.5 4.9 4.1 5.0 Relevant Population Potential 6.9 1.5 1.0 0.1 0.7 0.5 0.2 0.2 Future Growth 7.6 7.17 6.90 5.82 4.72 4.25 3.38 3.38 Ernst & Young Weighted Score 6.9 4.8 4.2 3.5 3.2 3.2 2.8 2.8

GROWING AFFLUENCE MUMBAI


City Mumbai Pune Ahmedabad Nagpur Surat Nasik Vadodara Indore Number of Retail Outlets 151,184 34,742 30,636 13,227 17,318 9,076 7,123 7,956 Population in 000 13,165 5,131 5,338 2,962 3,964 2,308 1,838 2,082 Number of Retail per 000 11.48 6.77 5.74 4.47 4.37 3.93 3.88 3.82 Number of Malls 28 9 5 4 2 3 1 1 Number of Malls per 000 0.0021 0.0018 0.0009 0.0014 0.0005 0.0013 0.0005 0.0005

GROWING AFFLUENCE DELHI


City Delhi Chandigarh Bhopal Lucknow Ludhiana Kanpur Amritsar Jaipur Number of Retail Outlets 40,000 5,500 6,642 8,500 5,000 8,000 3,500 5,000 Population in 000 16,031 958 1,731 2,697 1,978 3,254 1,465 3,134 Number of Retail per 000 2.50 5.74 3.84 3.15 2.53 2.47 2.39 1.60 Number of Malls 32 5 2 5 2 2 2 7 Number of Malls per 000 0.0020 0.0009 0.0012 0.0019 0.0010 0.0006 0.0014 0.0022

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TABLE 17. Outbound Movements from Indian Cities


OUTBOUND MOVEMENTS
Air Traffic Movements Delhi Aircraft Movement Passenger Traffic 53,173 5931,629 Jan-March 2009 Mumbai 56,129 5754,400 Delhi Oct-Dec 2008 Mumbai 56,544 5673,065

53,830 5651,354

MUMBAI OUTBOUND MATRIX


0-100 km Impulse Same Day Car / Bus / Rail Rs. 1000-2000 Madh-Marve Manori Thane Madh Island Karnala 101-200 Short Break Over night Car / Bus / Rail Rs. 2000-5000 Matheran Khandala Alibaug Lonavala Kamshet Rajmachi Kihim 201-300 Weekend 1-2 Nights Car / Bus / Rail Rs. 5000-10000 Kashid Beach Malshejghat Jawhar Pune Bordi Murud Nasik Silvassa Bhandardara Daman & Diu 301-500 Long Weekend 2-3 Nights Car / Bus / Rail/Air Rs. 10000-20000 Khanvel Raigad Shriwardhan Mahabaleshwar Chiplun Panchgani Saputara 500+ Planned Holiday 3 Nights + Rail / Air Rs. 20000 + Shirdi Goa Delhi Tirupati Uttar Pradesh Kerala Karnataka Tamil Nadu Rajasthan

DELHI OUTBOUND MATRIX


0-100 km Impulse Same Day Car / Bus / Rail Rs. 1000-2000 Manesar Surajkund 101-200 Short Break Over night Car / Bus / Rail Rs. 2000-5000 Kosi Mathura Hansi Alwar Bharatpur Sariska 201-300 Weekend 1-2 Nights Car / Bus / Rail Rs. 5000-10000 Agra Lansdowne Haridwar Rishikesh Dehradun Chandigarh Jaipur Parwanoo Corbett Mussoorie Shekhawati Kasauli Bhimtal 301-500 Long Weekend 2-3 Nights Car / Bus / Rail/Air Rs. 10000-20000 Naukuchiatal Nainital Gwalior Ramgarh Sattal Mallital Mukteshwar Shimla Kufri Chail 500+ Planned Holiday 3 Nights + Rail / Air Rs. 20000 + Manali Vaishno Devi Jammu Kashmir Goa Mumbai Varanasi Khaujurao Tirupati Kerala Karnataka Tamil Nadu Rajasthan

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AHMEDABAD OUTBOUND MATRIX
0-100 km Impulse Same Day Car / Bus / Rail Rs. 1000-2000 101-200 Short Break Over night Car / Bus / Rail Rs. 2000-5000 Baroda/Vadodara Surendranagar Palanpur Champaner Bhavnagar Danta-Ambaji 201-300 Weekend 1-2 Nights Car / Bus / Rail Rs. 5000-10000 Wankaner Mount Abu Rajkot Udaipur Kutch Gondal 301-500 Long Weekend 2-3 Nights Car / Bus / Rail/Air Rs. 10000-20000 Jamnagar Junagadh Ranakpur Sasan gir Kumbhalgarh 500+ Planned Holiday 3 Nights + Rail / Air Rs. 20000 + Mumbai Goa Delhi Tirupati Uttar Pradesh Kerala Karnataka Tamil Nadu Rajasthan

CHANDIGARH OUTBOUND MATRIX


0-100 km Impulse Same Day Car / Bus / Rail Rs. 1000-2000 Parwanoo Morni Hills Kasauli Chail Kufri 101-200 Short Break Over night Car / Bus / Rail Rs. 2000-5000 Mashobra Shimla Dehradun Mandi 201-300 Weekend 1-2 Nights Car / Bus / Rail Rs. 5000-10000 Mussoorie Rishikesh Amritsar Dharamshala Kangra Haridwar Hansi Kullu Delhi Palampur Gurgaon Sangla Manali 301-500 Long Weekend 2-3 Nights Car / Bus / Rail/Air Rs. 10000-20000 Lansdowne Corbett Vaishno Devi 500+ Planned Holiday 3 Nights + Rail / Air Rs. 20000 + Jammu Kashmir Mumbai Goa Tirupati Uttar Pradesh Kerala Karnataka Tamil Nadu Rajasthan

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JAIPUR OUTBOUND MATRIX


0-100 km Impulse Same Day Car / Bus / Rail Rs. 1000-2000 Sariska Ajmer Ranthambore Pushkar Alwar Sawai Madhopur Khimsar Bharatpur Shekhawati 101-200 Short Break Over night Car / Bus / Rail Rs. 2000-5000 Gurgaon Manesar Agra Kota Kosi Delhi 201-300 Weekend 1-2 Nights Car / Bus / Rail Rs. 5000-10000 Pali Nagaur Fort Bikaner Chittorgarh 301-500 Long Weekend 2-3 Nights Car / Bus / Rail/Air Rs. 10000-20000 Ahmedabad 500+ Planned Holiday 3 Nights + Rail / Air Rs. 20000 + Mumbai Goa Delhi Tirupati Uttar Pradesh Kerala Karnataka Tamil Nadu Rajasthan

LUCKNOW OUTBOUND MATRIX


0-100 km Impulse Same Day Car / Bus / Rail Rs. 1000-2000 Kanpur 101-200 Short Break Over night Car / Bus / Rail Rs. 2000-5000 201-300 Weekend 1-2 Nights Car / Bus / Rail Rs. 5000-10000 Allahabad Varanasi 301-500 Long Weekend 2-3 Nights Car / Bus / Rail/Air Rs. 10000-20000 Agra Gwali Delhi Mathura 500+ Planned Holiday 3 Nights + Rail / Air Rs. 20000 + Jaipur Mumbai Goa Delhi Tirupati Kerala Karnataka Tamil Nadu Rajasthan

NAGPUR OUTBOUND MATRIX


0-100 km Impulse Same Day Car / Bus / Rail Rs. 1000-2000 Panhala Seoni Pench 101-200 Short Break Over night Car / Bus / Rail Rs. 2000-5000 201-300 Weekend 1-2 Nights Car / Bus / Rail Rs. 5000-10000 Akola Pachmarhi Jabalpur Kanha Raipur 301-500 Long Weekend 2-3 Nights Car / Bus / Rail/Air Rs. 10000-20000 Gwalior Agra 500+ Planned Holiday 3 Nights + Rail / Air Rs. 20000 + Delhi Mumbai Goa Delhi Tirupati Uttar Pradesh Kerala Karnataka Tamil Nadu Rajasthan

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PUNE OUTBOUND MATRIX
0-100 km Impulse Same Day Car / Bus / Rail Rs. 1000-2000 Kamshet Lonavala Madh-Marve Khandala Rajmachi Panchgani 101-200 Short Break Over night Car / Bus / Rail Rs. 2000-5000 Matheran Mahabaleshwar Karnala Alibaug Raigad Kihim Bordi Mumbai Thane Madh Island Kashid Beach Bhandardara Shirdi Manori Murud 201-300 Weekend 1-2 Nights Car / Bus / Rail Rs. 5000-10000 Aurangabad Silvassa Nasik Chiplun Sangli Kolhapur Khanvel Solapur Mumbai Panhala 301-500 Long Weekend 2-3 Nights Car / Bus / Rail/Air Rs. 10000-20000 Ajanta & Ellora Goa 500+ Planned Holiday 3 Nights + Rail / Air Rs. 20000 + Delhi Tirupati Uttar Pradesh Kerala Karnataka Tamil Nadu Rajasthan

TABLE 18. International Travel Matrix


Gateway City Delhi Per Person Budget < Rs. 20,000.00 Nepal Per Person Budget < Rs. 30,000.00 Singapore Thailand Malaysia Dubai Hong Kong Per Person Budget < Rs. 30,000.00 Singapore Thailand Malaysia Singapore Hong Kong Thailand Dubai Per Person Budget < Rs. 30,000.00 Singapore Thailand Malaysia Singapore Hong Kong Nepal Per Person Budget < Rs. 50,000.00 Turkey China Per Person Budget > Rs. 50,000.00 UK Australia New Zealand Europe USA Per Person Budget > Rs. 50,000.00 UK Australia New Zealand Europe USA

Gateway City Chandigarh Amritsar Ludhiana Jallandhar Jaipur Lucknow Agra Gateway City Mumbai

Per Person Budget < Rs. 20,000.00 Nepal

Per Person Budget < Rs. 50,000.00 Turkey China

Nepal

Per Person Budget < Rs. 20,000.00 Dubai

Per Person Budget < Rs. 50,000.00 Turkey China

Per Person Budget > Rs. 50,000.00 UK Australia New Zealand Europe USA

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INTERNATIONAL TRAVEL MATRIX


Gateway City Ahmedabad Pune Surat Vadodara Nagpur Per Person Budget < Rs. 20,000.00 Dubai Per Person Budget < Rs. 30,000.00 Singapore Thailand Malaysia Singapore Hong Kong Nepal Per Person Budget < Rs. 50,000.00 Turkey China Per Person Budget > Rs. 50,000.00 UK Australia New Zealand Europe USA

Importance of Surrounding Areas near Delhi and Mumbai for Promotion of Tourism to Nepal
Delhi and Mumbai work as magnets to High Income and Medium Income families. There are excellent job opportunities in these cities and qualified professional with an aspirational life style like to settle in these cities. Due to extreme pressure on infrastructure, there is a massive growth in the satellite areas of Delhi and Mumbai. These include towns such as Noida, Gurgaon, Faridabad in Delhi and Navi Mumbai towns near Mumbai. Most people would work in these cities and stay at close by areas. The growth of satellite towns and the good development of infrastructure such as malls and golf courses is an indication of their rising status. The young and spending middle class is buying houses and other amenities in these towns. They love to spend their money on luxuries and like to take holidays as and when possible. They are the right target audience for planning a tourist attraction campaign.

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Market segmentation is the process of dividing up a total market into smaller parts that share common characteristics, in order to deliver services to those people most likely to be competitive tourism destinations and industries have marketing strategies that target specific market segments in order to provide high value products and services, and greater levels of tourist satisfaction. They acknowledge that the needs and wants of tourists worldwide is not the same and that concentrating their efforts on a small part of the overall market will enable them to raise their credibility, have higher levels of tourist satisfaction and more costeffective marketing efforts. Markets can be divided in a number of different ways: Purpose of travel (Business, Leisure) Geography (Which part of India) Buyer needs and motivations (What are they seeking in the product) Buyer or user characteristics (What will they do) Demography (age, gender, lifecycle) Economy (income, education, occupation) Price (How much price are they willing to pay)

Before arriving at the suggested market segmentation for Nepal, the current situation needs to be reviewed. Nepal traditionally has had very stable numbers from India. Typically customer segmentation for Nepal tourism was focused on outbound International traveler from India who is leisure or a MICE traveler. A tourism promotion strategy was devised to attract these consumers and despite all the promotions done, the numbers went down in the last decade. The main reasons for the same could be the following: Perceived Security Risk Undifferentiated product offering Accessibility Competition from other destinations

While focusing on the same customer segmentation, Nepal tried to create other possible tourism product mix such as Secondary destinations, Wildlife, Heritage, Adventure Sports etc and did tourism promotion activities. In the past, all Market segmentation of Indian Tourists have been done keeping the Indian International traveler in mind and which can be segmented in two broad categories: Leisure Traveller Business Traveller

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Leisure Traveler
After reviewing the major travel websites, travel magazines, newspapers etc. Nepal as a destination doesnt seem to leave a mark and lure Indian travelers interested in international leisure travel destinations. Most Indian travelers seeking a holiday abroad can be divided in three major categories: First time travelers Second time travelers Well seasoned travelers

First Time Travelers


These categories of travelers are choosing Far East as their first point of travel from North India. From West India, they are choosing between Far East and Middle East destinations. They are spending over Rs. 25000.00 per person on their travel and a family of four ends up spending over Rs. 100,000.00 on their trip.

Second Time Travelers


This category is choosing UK and Europe as their travel destinations. They are spending over Rs. 50,000.00 per person on their travel and a family of four ends up spending over Rs. 200,000.00 on their trip.

Well Seasoned Travelers


This category is now choosing exotic locales such as Egypt, Turkey, China, South Europe, Spain and USA as their travel destinations. They are spending over Rs. 100,000.00 per person on their travel and a family of four ends up spending over Rs.400,000.00 on their trip. Nepal with a per person cost of around Rs.15,000.00 is unlikely to be considered by Leisure Travelers and Nepal hardly figures in their option list.

Business Traveler
For Nepal, there is minimal business travel from India and the only segmentation interesting for Nepal is the Conference and Incentive sector. International Conference and Incentive sector can be divided into three major segments depending upon price segmentation. Budget to Economy For Corporations spending less than Rs. 25,000.00 45,000.00 per person, Thailand is emerging as the preferred option, followed by Singapore and Malaysia and UAE (Dubai) Luxury For Corporations spending less than Rs.1,00,000. 00 per person, London and other European destinations are emerging as the preferred option. Grand For Corporations spending over Rs. 150,000.00 per person and USA and High end European destinations are emerging as the preferred option.

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Domestic Market Segmentation
With a large and booming domestic tourism market in India, it is strongly suggested that Nepal should focus on Indian tourists planning holidays in India. The price point of Indian domestic holidays is quite similar to a trip to Nepal and it will be far easier to generate numbers from Indian domestic market than focusing on Indian International outbound market.

Indian domestic market for Nepal could be segmented in the following categories: Family Holidays
People in the age group 30-39 year old may have children under 10 and are likely to travel with partner or as a family. Likely to pursue physical activities, visit nature reserves and place importance for their children learning from travel. Normally plan a 4-7 days holidays break. This group is more likely to visit Nepal than other groups and normally will plan their holidays well in advance.

TABLE 19. Characteristics of Family Holidays Family Holidays


Type of Group Estimated period of stay Group composition Things most likely to do

Characteristics
FIT 4-7 days Family with kids Tourism sites Historical sites Shopping Casino Extreme Adventure 2 months Kids and Family Kathmandu and Pokhara Rs. 30000.00 50000.00 3-5 stars

Things least likely to do Planning Horizon Decision Making Places to visit Budget Spend Hotel Type

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Young and Restless


People in the age group 18-25 year old, fresh out of college are likely to travel with partner or a group of friends. Likely to pursue physical activities. Normally plan weekend breaks and can also consider longer 10-12 day break. They plan their holidays at a short notice.

TABLE 20. Characteristics of Young and Restless Young and Restless


Type of Group Estimated period of stay Group composition Things most likely to do Things least likely to do Planning Horizon Decision Making Places to visit Budget Spend Hotel Type

Characteristics
Group, by Bus Both short and long breaks Friends Nightlife Adventure and Shopping Religious Circuit 15-20 days Price + Options Kathmandu and suburbs Rs. 5000.00 10000.00 1 2 stars

Young Working Couples


People in the age group 25-40 year old, both members have earning and no kids. Normally plan short term breaks and prefer interactive travel experiences to passive holidays. They tend to crave physical or psychological challenges and generally have a higher than average money to spend per trip. They plan their holidays at a short notice.

TABLE 21. Characteristics of Young Working Couples Young Working Couples


Type of Group Estimated period of stay Group composition Things most likely to do

Characteristics
FIT 3-4 days Friends Unique experiences Extreme Adventure Night Life and Shopping Religious Circuit 10-15 days Whats available Varied 3-5 stars, Boutique, Camps Rs. 20000.00 -25000.00

Things least likely to do Planning Horizon Decision Making Places to visit Hotel Type Budget Spend

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Middle Age Consumers
People in the age group 40-55 year old, have children at home and are likely to travel with partner or as a family. Travel focuses on getting close with nature and immersing in local culture while having a chance to rest and recharge.

TABLE 22. Characteristics of Middle Age Consumers Middle Age Consumers


Type of Group Estimated period of stay Group composition Things most likely to do Things least likely to do Planning Horizon Decision Making Places to visit Hotel Type Budget Spend

Characteristics
Group by Air 5-10 days Friends Sightseeing cultural and heritage Night Life Shopping Extreme Adventure-Rafting, bungee jumping etc 4 weeks Friends, past experience Varied 3-5 stars, Boutique, Camps Rs. 25000.00 30000.00

Religious*
People in the age group 45-65 year old with no children at home are likely to travel with partner or group of friends. Personal growth is important when choosing destination and would like to visit and complete various religious destinations normally plan their holidays well in advance.

TABLE 23. Characteristics of Religious Groups Religious


Type of Group Estimated period of stay Group composition Things most likely to do

Characteristics
Group 5-10 days Professional Tour operator Religious circuit Culture Historical Shopping/Casino 2 months Group All religious sites 2-3 stars Rs. 10000.00 20000.00

Things least likely to do Planning Horizon Decision Making Places to visit Hotel Type Budget Spend

*This age group is also highly likely to visit Kailash Mansarover depending on their spending capacity as the trip can cost upto Rs. 100,000.00 or above per person.

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Retired and Leisure Holiday makers*


People in the age group of 55 to 60 + years, with children settled are likely to travel with partner or tour group. Travel is about relaxation and learning something new and something they will talk about afterwards. Want to be inspired and challenged by a destination. This group can spend maximum time at a holiday and want quality accommodation.

TABLE 24. Characteristics of Retired and Leisure Holiday Makers Retired and Leisure Holiday makers
Type of Group Estimated period of stay Group composition Things most likely to do

Characteristics
Group 5-10 days Professional Tour Operator Culture Religious Historical Night Life 1-2 months Family Kathmandu and Pokhara 2-3 stars Rs. 25000.00-30000.00

Things least likely to do Planning Horizon Decision Making Places to visit Hotel Type Budget Spend

*This age group is also highly likely to visit Kailash Mansarover depending on their spending capacity as the trip can cost upto Rs. 100,000.00 or above per person.

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Tourism plays a very important role in Nepals economy and is the key element to economic development. Every one related to this industry gains by offering products and services to the tourists. This includes stakeholders such as Hotels, Restaurants, Tour operators, Trekking Agents etc. All these linkages are reflected as shown in figure 7.

FIGURE 7. Tourism Supply Chain

Transport to destinations

Ground transport

Excursions/ attractions

Restaurants

Lodging

Furniture/ crafts

Tour operating

TOURISTS

Waste management

Catering

Food production

Laundry

Energy supplies

Infrastructure (including real estate)

Marketing/ sales

Source: Deloitte Analysis.

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There is a major linkage between the Tourism Volume expansion and the Tourism Supply Chain Industry. If the Tourism Volume increases without a corresponding support by Supply Chain then the Tourists feel that they are not getting the appropriate value for the money which they are spending. Supply chain should be developed first before Tourism promotion exercise is planned. The figure 8 summaries the above mentioned linkages:

FIGURE 8. Supply Chain and Tourism Volume

Extensive

Supply chains

High absorptive capacity for indirect and induced benefits Well-developed supply chains Available domestic skills and labor force Effective tourism strategies focusing on enhancing value and volume of visitors would contribute greatly to wider e economic development Low levels of tourism Supply chains in the sector not fully developed Tourism strategy in this scenario must work alongside supply chain development to capture and maximize economic benefits

Well-developed supply chain and tourism sector Focus here needs to be enhancing value generated through segmentation and focus on high value added markets Sustain competitiveness and respond to emerging markets

Limited

High levels of tourism activity Significant leakage of value due to limited supply chain links Any growth in tourism is unlikely to deliver net benefits, after taking into account infrastructure costs and implications for congestion Focus must be to use vibrant tourism sector to strengthen supply chains and capture value for the local economy
High

Low

Value and volume of tourism

Source: Deloitte analysis.

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Deloitte has made a thorough analysis on how perceptions impact the destination. Some of the key factors which impact tourists have been highlighted in the figure 9. Security safety perception has the highest impact on Tourism movement. This is closely followed by what alternatives tourist has and what level of infrastructure is available. (Deloitte, 2008)

FIGURE 9. Tourism Leverage Points

High

Security/safety Alternatives (availability) Infrastructure Alternatives (relative cost) Taxation Globalization

Adaptability

Welcome Place-making Choice of goods and services

Skills

Quality

Potential impact

Incomes Inflation Weather/seasonality Landscape and environment Tastes/attitudes

Access

Information provision

Population
Low

Low

Potential to influence

High Destination attractiveness Investment Relative cost Spending power Demographic factors

Destination attractiveness is the relative attractiveness of a tourist destination over time and attempts to quantify the impact of any improvements made in policy, tourism infrastructure, and so on. Investment refers to tourism infrastructure (hotels, airplanes, recreation sites, etc.) as well as public investment in areas supporting tourism (e.g., transport infrastructure) and the development of the tourism supply chain. Relative cost is a key factor influencing decisions of both domestic and international travelers. The recent significant appreciation of the dollar is a clear example of this at play. Spending power is a significant driver of tourism amongst both domestic and source market residents. Demographic factors comprise overall population growth, the dynamics of specific socioeconomic segments, and trends and such as the aging of the population in many developed economies.
Source: Deloitte analysis.

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Perceptions and Stakeholder Viewpoints


The purpose of this study was to gather information, gain perspectives and share visions on what Nepal should do to attract more tourists from India. Discussions with stakeholders in India indicated major perception issues. Marketing tactics need to overcome the prevailing view that Nepal is an unsafe and unpredictable destination with little to do besides local site seeing and casino. Communications strategies need to address widespread uncertainty about local situation and the availability of confirmed services with variety of accommodations and amenities. Nepal needs to be positioned from the Indian consumers point of view. Travel agents and customers talked about mixed messages leading to marketplace confusion and the need to be consistent, to ensure that Nepal is a safe 365 days destination. Travel Agents talked about how best to organize the industry, to best position Nepal. Currently a lot of Indian Travel Agents are doing a lot of marketing on a lot of fronts to promote Nepal as a destination. But all of these endeavours are being done at their costs and there is more support required from government of Nepal and Nepal Tourism Board. For example, they feel they should get regular supply of brochures and at the same time feel that too many brochures are out there and Nepal should come with a special brochure with key highlights on what the tourist should do. Travel Agents also feel that Nepal has not defined itself as a destination, product offering lacks novelty, infrastructure is poor, and it is not optimising its potentialities. There was considerable agreement that the industry is fragmented, that it is not organized to be a highly desirable destination. While some regions in Nepal are more organized than others, it was realized that too many players and too many layers. There is competition from Nepal Hotels, Nepal Travel Agents and Tour Operators keen to make direct bookings from the Indian Market. On the one hand there was a call for a strong marketing strategy led by NTB with affordable buy-in opportunities fewer advertisements in more effective brochures. On the other hand, the need for an overriding call to action was stressed Nepal Travel Now to counter the lack of safety perception in Nepal. At the end of the day, however, an underlying message was evident that an under-resourced structure and undervalued industry is much less of a problem than product development and infrastructure support. Travel Agents talked about key target markets which remain Kathmandu and Pokhara, as well as emerging and niche markets worth investigating and what needs to be done to these markets. There were also comments about focussing on high-yield, low-impact markets rather than on high-volume, high-yield markets, which are less ecologically demanding. The importance of identifying Nepals niche and enhancing market readiness was stressed by Travel Agents. Packaging should not be synonymous with discounting. Approaches such as bundling products, making a menu of offerings available and la cart shopping were seen as key to attracting emerging and niche markets, as well as expanding target markets. Packages with a family focus were viewed as a core market, as well as those that accentuate the diversity of a Nepal holiday. This should help to strengthen both the core and attract new markets. Flexibility and customization will be required as operators figure out how to attract new visitors. This may mean appealing to visitors who do not think they are the outdoors type, or who reflect a broader diversity of cultures and lifestyles or who are part of an aging demographic. The accessible excitement, was the way one travel agent characterised it.

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Indian visitors are looking for sustainable experiences. Instead of just passing through an area they will spend two or three days and they want to leave with something to share the experience. Travel Agents stressed the importance of taking advantage of demographic shifts. For example, the India is getting wealthier and it is not practical to promote Nepal as an International destination to outbound travellers. Most stakeholders expressed the value in offering services to the Indian middle class who are looking for a nice and affordable holiday experience. The need to review and refresh products was a consistent theme. Travel Agents need to take a good look at the types of products and accommodations available in Nepal and match them to the needs and wants of various clienteles. Infrastructure will need to be developed that will appeal to emerging and niche markets. Inland transportation in interior Nepal is a challenge. Road infrastructure needs to be kept in a state of good repair for comfortable journey. Air travel needs to become more commonplace and affordable. Getting to a destination needs to be safe and predictable. The lack of support for travel and tourism infrastructure such as trains and road transport was identified by travel agents as a major issue. Further, there is a need to focus on rest stops, directional and interpretive signage and customer service in general.

To summarise, it is suggested that promotional aspects of Nepal should focus on:


Indian Middle Class Increase effectiveness of Promotion Campaigns Provide Indian industry with a communication tool Keep Indian Travel Agents informed with the latest status Streamline product offerings

Target Markets
No surprise the key activity drivers for Nepal have not changed. A nice affordable family holiday with sightseeing, shopping, soft outdoor adventure activities, visiting religious sites and Casino remain the most frequently mentioned activities for travellers who express interest in visiting Nepal. Over the short-term, say the next five years the growing Indian Middle Class will remain the mainstay for Nepal Tourism. As such, Kathmandu and Pokhara should remain central to but not the only focus of marketing efforts in order to broaden the visitor base. Secondary and emerging-market opportunities to draw youth, adventure tourists and honeymooners need to be explored over the longer term. Interest in a Nepal holiday is sustainable for Indian Middle Class as long as it is coupled with opportunities for shopping, dining and exploring cities, local culture and history. Investigating emerging markets of theme oriented niche tourism and the MNC weekend market also may prove fruitful. The challenge is to position Nepal to appeal to these markets. Single activities are not sufficient trip motivators as Indians want to do a lot in a short holiday. Many consumers want to see a combination of outdoor adventure and medium to high-end accommodations and amenities. For most travellers all inclusive or menu-type packages are attractive. Nepal regularly needs to communicate with Indian visitors in an organized, efficient and friendly manner to 95

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Suggestions on Marketing Strategy, Policies and Programs for Nepal Tourism Board to Attract Indian Tourists

try to overcome the limited knowledge and safety misconceptions of potential visitors to Nepal. A consistent message delivered by all players is essential if potential visitors are to understand the quality and variety of things to see and do. There are certain pertaining questions: How the Nepal experience is uniquely different from other vacation experiences in India? Why would one choose this destination over others in India? Rich consumers want to be assured that their trips will create a memorable experience so that they can treasure it for a long time. After all, theres a lot of interesting destinations which are competing on the similar price range. Deloitte has made an analysis of factors influencing visitor behaviour. Political and economic factors have the highest rating on what particular destinations a tourist will select. Other factors such as social and infrastructure/ assets have been highlighted as shown in the figure 10.

FIGURE 10. Factors Influencing Visitor Behaviour


FACTOR PRE-TRIP FACTORS
Perceptions about safety and security Globalization Capacity (airports, water, sanitation) Marketing of country Open Skies agreement Incomes Inflation Exchange rates Migration Taxation Socio-environmental awareness/ consciousness Tastese.g., holiday type: historic vs. beach Reputation for extreme weathere.g., rain, flooding, wildfires Internet Low cost airlines Digital information/mobile technology as a substitute for business travel/online shopping Natural environment/landscape

POST-TRIP FACTORS
Experience with safety and security Taxation on goods and services

POLITICAL

ECONOMIC

Competitive prices for good and services Impact of taxation Impact of inflation

SOCIAL INFRASTRUCTURE/ ASSETS


Source: Deloitte analysis.

Available choice of goods and services General experience on tripe.g., quality Experience with weather/seasonalitye.g., rain, flooding, wildfires Culture clash/agreement Ease of travel during trip Integrated systemse.g., fast-tracking

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Next Steps
Nepal needs to build a foundation for the new marketing strategy and the key issues are: Identifying opportunities for growth Identifying opportunities for aligning tourism stakeholders Working with the team that is developing the strategy to ensure that information is shared with the Indian Travel Agents and industry stakeholders

There has never been a better time for Nepal to become more competitive as a tourist destination. Never has the tourism industry and its stakeholders been more of one mind about the need for a marketing change to drive the fortunes of the business in a more positive direction. Market Nepal Differently Beautiful place to visitclean, pristine, safe with different experiences, solitude. One brand, one printed piece. Need to be truly Indian Middle Class consumer-focused. Provide incentives to Indian Travel Agents to do a better job of marketing. Align efforts better. Organise regular FAM trips educating about different products that Nepal has to offer and to develop markets like adventure tourism, etc. Nepal needs to sell what you do best. Dont market products to the wrong target market. Start marketing a destination offering best value for the Indian Middle Class. For example We are Nepal and our product is the experience of exotic, interesting and memorable experiences. Make it clear that that Nepal is the destination which is assessable at low cost, but with all the options of experiencing everything in one country natural beauty, peace, rejuvenation, adventure. Need to keep it simple.

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Lets Get Started


Nepal Now!
The goal of the new strategy is to maximize the limited marketing resources available to NTB through the alignment of industry and NTB marketing ventures. The strategy that follows suggests that all levels of the industry and government should initiate to take risks to get ahead of the competition. To do this, they should focus on following three areas: A competitive offer for Nepal, targeting the right people, in the right places with the right message. A new way of working together that aligns the efforts of all the players as opposed to duplicating them. Support and guidance for the industry in the form of tools that everyone can use to help align their efforts under the overarching strategy. The proposed strategy should be based on best numbers outlook. It should not replace the marketing efforts currently underway focusing on the avid and touring markets rather it should guide these and present a road map for quick successes for new business. This strategic approach should be measured at every stage of its implementation, so that it can be adjusted during the implementation period.

Recommendations
Markets: The main focus should be on best numbers markets the growing Indian Middle Class Nepals strategy should be consumer-focused and keep on top of emerging lifestyle trends. Indian consumers are generally not the travellers to International high end destinations. They normally choose Indian domestic destinations and will chose Nepal, if it meets their holiday budget and desire expectations. Stay Ahead of Competitors: NTB should leverage technology and effectively heed domestic competitors such as Mussoorie, Agra and Jaipur. Product: The main focus should be on the Family Holiday with emphasis on sightseeing and shopping. It is very important to add and promote bundles for variety and new markets in addition to leveraging market ready Kathmandu and Pokhara Products. Positioning: There is a need to create a distinct underlying image of Nepal and use it to link efforts. Competitive Advantage: The lessons learned over the years should be applied and implemented and best practices from others should be taken into consideration to gain a competitive advantage. Align and Coordinate: There is a need to re-align source markets and marketing tactics to leverage tripplanning behaviour. This could be done with consistent communication strategies. Take Advantage of Trends: There is an increasing disposable and discretionary income in the Indian Middle Class. These consumers, and their pent-up demand, are prime targets for Nepal. Time Deprivation: The trend is less time for leisure and more for shorter vacations. Therefore 3N/4D holiday package can meet their requirements. Listen to Perceptions and Act: NTBs platform should link all levels of marketing initiatives and be distinctive.

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The current low awareness with the focused audience gives us the liberty to create a new Nepal. Make it Easy to Buy and Use: Trips planning tools to capture consumer leads online and offer all inclusive packages.

Media Consumption Shifts


There is a monumental change taking place in the way consumers are accessing and using media across India and there should be a judicial mix of spending patterns in all media vehicles including: TV Newspaper Magazines FM Radio Billboard Internet

A review of target markets show how Nepal need to allocate efforts discreetly to build opportunistic business, while ensuring its core business is protected. Factors affecting choice of media include: Existing Clutter level of specific medium within the market Reach of medium across the target group Consumer preference for a specific medium Suitability of the medium given the objective of the advertising /marketing exercise Prior experience of the marketer with the success of the medium in a specific market

All media spend should focus on the Indian Middle Class Target group in both West and North India and match Nepals interests to their demographic characteristics, travel habits, media consumption and lifestyle drivers.

Change Marketing Delivery to Meet Consumer Needs


Marketing Communications Strategies
The strategic direction that follows prioritizes how marketing communications tools can be leveraged against the best numbers targets and markets described.

Public Relations
The use of public relations as a marketing tool is growing by leaps and bounds, as consumers disassociate themselves from the fragmented and ever increasing number of advertising messages they are receiving on a daily basis. The public relations strategy for the marketing of Nepal should support the positioning and experiences that best exemplify the distinctive nature of the Best Numbers offer. Trends should be carefully monitored to ensure that the appropriate blend of traditional and new media are used as, per target group habits.

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Consumer Touch Points


Traditionally, consumer and tradeshow participation has been a primary consumer touch point utilized by NTB, Travel operators, and other stakeholder groups. Currently, NTB participates in trade shows, despite the fact that they have a high cost per visitor acquisition and are, as a marketing communications medium, on the decline in terms of both frequency and attendance. The recommended strategy is to limit show participation to those that are: located in geographic target markets attended by best numbers target group members permit floor activation techniques, such as field marketing and onsite promotions

Familiarization Trips
Criteria for media and trade familiarization trip funding should be based on the ability of the visiting media to showcase Nepal to the target audience.

Publications and Collateral


Try and reach potential visitors by paying attention heavily on the communications channels preferred by people planning to travel to Nepal. Publications should be used as fulfillment pieces for pre-qualified leads, with less emphasis on directories and more on trip planning tools. Consumers want information specific to the experience that facilitates their purchase decision. Furthermore their purchase decision depends on appropriate design of collateral that should be readily available from tourism shows, sites, tourism offices and kiosks.

Maintaining Competitive Advantage


For this strategy to be successful there needs to be an ongoing commitment to continuously undertake research to ensure Nepal maintains a competitive advantage. To effectively implement the new strategy and achieve the implementation of the cascading approach and the alignment of efforts, the current funds spent on marketing initiatives and human resource efforts should need to shift over the course of the strategy. The environment that the Nepal tourism industry operates is a dynamic one that regularly shifts and changes as new opportunities and challenges emerge out. Seeking new investment from the public and private sector should be a priority for all parties to increase the marketing spend to reach the best numbers markets and drive consumers to take a holiday decision that should eventually link to the suppliers who can fulfill the promise.

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Budget Allocation and Strategy
The following budget allocation strategy should assist stakeholders in understanding the shift in effort required to address the changing marketing landscape. The new marketing investment strategy should support conventional as well as Internet marketing strategies, public relations, and should result in lead generation and targeted industry co-operative marketing programs.

TABLE 25. Budget Activities Budget Activity


1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Television Newspapers Magazines FM Radio Internet Public Relations Consumer Promotion India Travel Trade Road shows Media Fame trips Travel Agent Fam trips

Suggested Spend for 12 months (IRs)


Rs. 40,00,000.00 Rs. 20,00,000.00 Rs. 10,00,000.00 Rs. 20,00,000.00 Rs. 10,00,000.00 Rs. 15,00,000.00 Rs. 30,00,000.00 Rs. 40,00,000.00 NTB costs NTB costs

Television
As the focus is on increasing volumes, the following suggestion should be taken into consideration: 1. 2. 3. 4. 5. Reduce spending money on High End Consumer focussed channels. Need to focus on Vernacular channels and with a special focus on News channels in particular. Should spend money on news scrollers with package rate options and with a toll free number to provide instant information access. Special promotions on religious channels such as Aastha and Sanskar for Kailash Mansarovar and Pashupatinath darshans. Long term scroller contracts rather than advertisement to have sustained visibility.

Suggested Mediums
Hindi Aajtak Zee News IBN 7 Sahara Samay India TV NDTV India STAR News Marathi Star Majha IBN Lokmat Zee 24 Taas Gujarati ETV Gujarati TV9 Gujarat

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Newspapers

Suggestions on Marketing Strategy, Policies and Programs for Nepal Tourism Board to Attract Indian Tourists

Due to extreme clutter and expensive rates for English Medium newspapers, it is suggested to follow a focussed approach on the target audience using Vernacular newspapers. This shall result in greater exposure amongst target audience at a much lower cost. To ensure prompt conversions, tactical advertising should be done during the beginning of holiday decision making period along with travel agent contact details for ensuring faster conversions.

Suggested Mediums
Hindi Hindustan Navbharat Times Punjab Kesari Amar Ujala Dainik Jagaran Dainik Bhaskar Rajasthan Patrika Marathi Maharahtra Times Gujarati Gujarat Samachar Divya Bhaskar English Delhi Times HT City Indian Express

Magazines
Following the same approach, it is recommended to choose appropriate Vernacular language publication. Suggested publications are Griha Shobha and Meri Saheli in Hindi, Chitralekha in Marathi and Gujarati. A sponsorship contest along with an advertorial with travel agent participation would create the maximum impact.

FM Radio
In 2007, Indian Radio Advertising Industry recorded a growth of 24% and is now becoming a preferred medium for targeting the local audience of the region. Hence, intensive use of FM Radio as a medium to attract interested holiday makers is a great option. (PricewaterhouseCoopers, 2008)

Internet
Tactical use of popular websites such as google, msn and facebook can create lasting impressions on the user. While this medium has not been used in the past, it can be used to interact with a new audience.

Consumer Promotions
Following the overwhelming success of shopping mall promotions in Delhi in June 2009, it is strongly recommended organising similar promotions in the target markets for getting stronger conversions. At least 6 promotions in one year are suggested and the target cities should be: 102 Delhi Mumbai Chandigarh Jaipur Ludhiana Ahmedabad Lucknow

Chapter 8
Travel trade needs to be an important component for this exercise as most consumers need an instant solution for prompt decision making.

India Travel Trade Road Shows


Road shows result in networking of local travel agents with Nepalese travel agents and this gives an opportunity to discuss the business requirements in details. Greater number of Road Shows are required for greater penetration in the Indian markets. Suggested cities for next 12 months are:

North & Central India


Delhi Jaipur Ambala Chandigarh Amritsar Ludhiana Jallandhar Gwalior Varanasi Dehradoon Shimla Jammu Kanpur Lucknow Bhopal Indore

West India
Mumbai Pune Surat Ahmedabad Rajkot Nashik Nagpur

Travel Trade and Media FAM Trips


These activities are necessary to sustain the Indian market. At least 10 travel trade and media FAM trips should be organised for ensuring better results.

Visitors could be selected from: North India


Delhi Ambala Chandigarh Amritsar Ludhiana Jallandhar Gwalior Indore Bhopal Patna Kanpur Lucknow Varanasi Dehradoon Shimla Jammu

West India
Mumbai Pune Surat Ahmedabad Rajkot Jaipur Nashik Nagpur

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The Next Step


A concerted effort on the part of the NTB, Airlines, and Travel agents to commit to a new partnership is the starting point to make this work. Increased investment to support new and innovative tactics and marketing reach, clarity of roles and functions, strategically directed implementation are strongly suggested. In order to ensure that this strategy is sustainable, the following measures need to be considered and implemented: Listen to the consumer Be consumer-focused rather than industry-focused, and leverage trends and behaviours strategically. Focus on best numbers markets and targets. Allocate the scarce marketing efforts to focus on the places and people with the most potential, but not limit to them. Leverage the demographic and economic realities, and ensure that the potential of Nepal as a market is well-tapped. Start with North India and do it well - Leverage the potential of Nepal itself as an easy to reach and a near by domestic holiday destination. Stay ahead of competitors Nepal should leverage technology and effectively bring out the story and experiences of visitors via the Internet. Measure and report - Its crucial to the success of this strategy that a track of success of the investment and ROI is kept to on focus the target, and to meet objectives and stay ahead of competitive destinations of Nepal.

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Recommendations and Guidelines for Nepal Tourism Annual Promotion Plan 2010/11 TABLE 26. Suggested Activities
Month
Jan Feb March

Core Focus
Enabling online sales Travel Trade Education Travel Trade Education Travel Trade Education Destination Awareness Consumer Awareness Consumer Awareness Consumer Awareness Consumer Promotion Consumer Awareness Consumer Awareness Consumer Awareness Consumer Awareness Travel Trade Education Travel Trade Education Travel Trade Education Consumer Awareness Consumer Awareness Consumer Awareness Consumer Promotion Consumer Awareness Travel Trade Education Consumer Awareness Consumer Awareness Consumer Promotion Consumer Awareness Consumer Awareness Travel Trade Education Destination Awareness

Suggested Activities
RFP for website design Travel Agent FAM trips India Travel Trade Road show Pune Mumbai-Nashik India Travel Trade Road show Lucknow-Varanasi-Patna Media FAM trip Television Advertising FM Radio Delhi- Mumbai Internet banner campaign Direct Interaction Shopping mall Promotion Mumbai & Pune FM Radio Delhi- Mumbai Internet banner campaign FM Radio Delhi- Mumbai Internet banner campaign India Travel Trade Road show Chandigarh-Shimla-Ambala India Travel Trade Road show Ahmedabad-Bhopal-Indore Travel Agent FAM trip Television Advertising Newspaper Advertising Magazines Advertising Direct Interaction Shopping mall Promotion Noida & Gurgaon FM Radio Delhi- Mumbai India Travel Trade Road shows Amritsar-Ludhiana-Jallandhar Newspaper Advertising FM Radio Delhi- Mumbai Direct Interaction Shopping mall Promotion Amritsar & Chandigarh Magazines Advertising FM Radio Delhi- Mumbai India Travel Trade Road show Delhi-Jaipur Gwalior Media FAM trip

Brand Building
* * * * * * * * * * * * * * * * * * * * * * * * * * * * *

North India West India Market Market


* * *

* * * * * * * * * * * * * *

April

May June July Aug

* * * * *

Sep

* * * * * * * * * *

* * * * *

Oct

Nov

* *

Dec

* *

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Annexure I
The Trends in Information, Communication and Technology in Tourism Development
Tourism is a leisure activity but can be associated with a definite purpose like pilgrimage or health. With the development of Information and Communication Technology (ICT), tourism has achieved a new momentum. The website of Lonely Planet attracts more than five million people every month, most of who log on repeatedly. As per the forecast by PhoCus Wright, a travel and technology research company, it is estimated that about 35% of leisure travel have been booked online by 2008.

Industry & IT
Tourism and Travel Industry - a heterogeneous industry made of complex and consists of many components parts. Intangible, perishable and international service industry is getting right business curve backed by information technology now days. The best example of information technology application in Travel and Tourism is automated reservation system for Railways & Airlines. There are IT solutions for hotels, motels, hospitality, travel intermediaries, entertainment and tourism at par to streamline business processes, improve customer relationships and more efficient operations. Trends in Industry (Applicable to Most of Countries) 1. 2. 3. 4. 5. A competitive industry with new entrance of global players coming from abroad Continuous change in customer demands Expectations of a tourist are increased and look for more convenience and value for money Tourists are more informed There is a need of automated technologies

Who needs information? Before starting use of information technology, it is important to know the ground needs of information sharing and accessibility. Travel and Tourism Industry is consisted of tourist, travel agents, service providers, government and private tourism offices or consultants. Tourist a key consumer needs details on destinations, facilities, availabilities, prices, and geography & climate information. If it is out of country then details about border controls & relations. Travel agents look for detail information about tourist (consumer) trends in the market, service providers, destinations, facilities, availabilities, prices, tour packages and direct contact with other branches. Service providers need to know details of consumer, travel agents, competitors and agencies. Tourism offices search for trends in industry, size and nature of tourism flows, policies and plans for development. IT enabled tourism is coined as e tourism. Online tourism is at a platform that enables direct booking, easy payment for end-user, business-to-business trading for product providers, travel agents and resellers.

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ECommerceall the web sites and portals launched by government as well as private organizations offer a wide range of tourism products and services like airlines, hotels, restaurants, camp-sites, tours, activity centers, concerts, festivities, shopping and many more with choices of assortments of services. Plan their tour online through agents web sites. Reservation or shopping of facilities for train, airlines, cruise, hotels, resorts, motels, rental cars and adventures can be done on line. Still leaving a part of simple web based portal, which just provides static information and beautiful pictures with less updated knowledge and data transfer, tourism industry is expecting more practical and satisfied chain solutions from Information Technology. Advance technologies in Tourism Industry rather than dot com and e-commerce, travel and tourism industry is looking for solution like E-Business or U-Business (Universal Business) solutions. Customer relationship management CRM, based system enables service provider to provide knowledge, value and efficient service to its clients. CRM enables service provider to build up a life time relationship by providing on time solutions. Especially tourism industry needs excellent CRM solutions to assist visitors or clients before flying on tour, during tour and after tour services. CRM solutions can be provided to a visitor through web, email, call center, kiosks and traveling information offices. Value chain integration Tourism industry is a chain of many service providers. In long term solutions, cost cutting & effectiveness in data & information transfer, speed in transactions and looking towards heavy multimedia based services back end systems need excellent value chain integration through solutions like ERP and CRM. However till today applications of CRM and ERP are not up to the industrial remarks as tourism industry is kind of service industry. Knowledge Management Systems and business intelligence systems have wide scope of implementation in tourism industry. Comparing history timelines and providing instant knowledge about place on the spot makes eager to know more about place to a tourist. Even information enables analyst to find tourists behavior and trends with data and information. To find out customers demand is no more difficult task. Use of advance technologies Interactive Digital Television (IDTV), Mobile technologies and Internet are carving new faces in customer services for tourism industry. Thats great for adventure tourist. Through a mobile, tourist can be guided through cultural heritage through multi language voice, text or images. Even it is possible for a tourist to find details on fees, opening days and timings for nearby places, find bookshop, cafe, restaurant or ATM from where ever s/he is present. In advanced countries, e tourism concept was applied and put in practice in last decade. However e tourism is still in growing phase with advance technologys application. But for developing countries and underdeveloped countries it is under capitalised. With application of e-tourism, the travelers would be able to make online reservation, bookings and receive immediate confirmation, this would remove a lot of obstacles that are faced by a tourist. Europe is ahead of other continents in development of travel industry with nearly 49% market share. America is second with 26 % and Asia with 17 % at third position.

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The Trends in Information, Communication and Technology in Tourism Development

Human Resource & Tourism Development


Tourism being an employment oriented sector, it is estimated that the hotel and the catering sector provide more than 10% of the total employment generated by the tourism industry. Being a labour oriented industry, directly in contact with the countrys tourists, skills required by personnel engaged in this sector are different from those required by personnel engaged in other sectors. At present there are 24 Institutes of Hotel Management (IHMs), and 11 Food Craft Institutes (FCIs). The IHMs conduct diploma courses, post graduate diploma courses, craft and certificate courses. The FCIs conduct diploma courses in cookery, food and beverage services, housekeeping, etc. In order to harness the resources and provide a central thrust, the MoT has also established the National Council for Hotel Management and Catering Technology (NCHM&CT). The main objectives of the Council are to advise the Government on coordinated development of Hotel Management and Catering Education to prescribe educational and other qualifications for staff in the institutions to give certification and accreditation, and to standardize the courses. Indian MoT encouraged the Institutes of hotel management to explore appropriate means to generate their additional resources during the 10th Plan, so that these institutions gradually become self supporting at least on revenue accounts. Assistance was given to them to enhance their infrastructural facilities. The NCHM&CT, which has emerged as an apex body in the country for hospitality management education, was assisted for construction of its new building at Noida. The building is almost ready and it is expected that it will meet the requirements of Council. The existing FCIs, IHMs and the institutes in the private sector cater to mainly the organized sector. The unorganized sector consisting of small hotels, dhabas, restaurants and other joints spread all over the country hardly get an opportunity of training from skilled and professional trainers in the hospitality sector. As it is not possible and viable to set up FCIs in every district, a number of Capacity Building Programmes for the workers of unorganized sector were organized by FCIs and IHMs during the 10th Plan through outreach training programmes. Indian Institute of Tourism and Travel Management (IITTM), established in 1983 as a registered society under the MoT primarily for developing and promoting education, training and research in travel and tourism, which was just running a single P.G. Diploma Course, has started two new courses during the 10th Plan i.e., a Bachelor Degree in Tourism (a three-year course) and a Masters Degree in Business Administration (a two-year course) with specialization in tourism. During the year, the Institute has started construction of its Campus at Bhubaneswar for its Eastern Regional Centre on the land provided by the State Government free of cost. The Institute also conducted a number of capacity building programmes for the workers in the unorganized sector like Railway Coolies, Taxi walas, Dhaba and Hotel Staff, unemployed youth, etc. The Institute also conducted a number of Guide Training Programmes during the plan period to upgrade the skills of existing guides as also to recruit new guides. During the 10th Plan, the Institute has become almost self sufficient to meet its regular revenue expenditure. Guide training courses are organized by the MoT and also by the State Governments. These courses include programmes for fresh tourist guides and refresher courses for those already active in guide services. The contents of these courses were restructured during the 10th Plan. Courses were also organized for Government officials who have an interface with the tourists.

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Annexure II
The Commonwealth Games 2010
Since the Commonwealth Games are scheduled to be held in the Indias capital city Delhi, the government has come up the new development plans to change the look and feel of the city. Further the new project have come up to discover new heritage religious, adventurous tourists sites in the northern states of India bordering Delhi including Punjab, Uttarakhand, Uttar Pradesh, Haryana and Rajasthan. All the athletes would be offered free accommodation, security, a pollution free environment, free transportation and entertainment options for the non competition times. They will be offered a free trip to the famed Taj Mahal the Seventh Wonder of the World clubbed with the other heritage sites such as the Red Fort, Fatehpur Sikri, Sikandra Itmad-ul-Daulahs Tomb, Chini Ka Rauza, Ram Bagh, Soami Bagh, Dayal Bagh and many more. Apart from that other major tourists spots in India including the Shimla, Jhansi, Kerala Backwaters, Goa beaches, Andaman and Nicobar Islands, Rajasthan Forts and Palaces, Dehradun, Haridwar, Ranikhet, Punjab etc are likely to attract large number of foreign tourists in the year 2010. Medical and ayurvedic sectors will also be equally beneficiary during the commonwealth games in view of Indias popularity in ancient tradition of yoga and ayurveda and the availability of low cost medical treatments in India. Tour agents in India are opened with the new hot travel deals for 2010 Commonwealth Games for the foreign tourists. They have come up with the exclusive packages at the most attractive prices that are truly rewarding from the economic point of view. Tourists have been making online reservation in advance for the upcoming Common Wealth Games.

The Government of India has Launched a Bed and Breakfast Scheme


Over 1,000 Delhites have registered to be part of governments Bed and Breakfast scheme for Commonwealth games visitors. With world class interiors, top-of-the-line facilities, well-maintained bathrooms and smoke detectors, many homes in the posh southern and central parts of the city are getting ready to welcome the one lakh extra tourists who are expected to descend on the Capital for Commonwealth Games 2010. Some additional initiatives taken by the Government-the Delhi governments Bed and Breakfast scheme has attracted 1,000 Delhites who have a room to spare. However, the government is already under duress as the planned hotel rooms to make up for the shortage are running behind schedule. A parliamentary panel had predicted a shortage of 14,000 rooms in the city. The government had planned to register 3,000 rooms under the Bed and Breakfast scheme launched two-and-a-half years ago but so far, only 1,000 rooms have been registered. The event will witness a lot of foreign tourists coming to India. Most of the foreigners are unaware about Indian traditions and culture. Staying with an Indian family and sharing the food on the breakfast table will certainly help them to know country better and create a bond .The scheme was launched to provide a clean and affordable place for foreigners and domestic tourists, including an opportunity for foreign tourists to stay with an Indian family and to experience Indian customs and traditions and relish authentic Indian cuisine. This will also add to the income of these home owners without adding much to their expenses. The Indiawide scheme has particular importance in Delhi, which is expected to be short of about 18,000 rooms when its hosts the Commonwealth Games in 2010. The tourism ministry is banking heavily on the scheme to bail it out of the severe shortage of rooms. The ministry is expecting around a lakh international tourists to the country during the Games and it is a golden opportunity

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Annexure II

The Commonwealth Games 2010

How Nepal Can Benefit


Advertising during this time will rope in Indian as well as international visibility and attention and the cost for advertising in metros and popular tourist destination will bring in priceless benefits. Hoardings, bus stand shelters, metros are some of the options which can have major impact on the onlookers looking for a weekend getaway. Creating weekend gateways packages and advertising at the right time with easy booking process might be able to lure the visitors traffic towards Nepal as thousands of international tourists are expected to arrive for Commonwealth game and a three day getaway is something that can be aimed for.

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Foreign Direct Investment (FDI) in Indian Tourism
One of the most notable features of economic globalization has been the increased importance of foreign direct investment around the World. Some view it as an engine of economic growth and development while others look upon it as a panacea for all ills. It is, however, important to weigh the costs and the benefits of FDI to gauge whether FDI has positive impact on economic development. FDI has the potential to generate employment, raise productivity, enhancing competitiveness of the domestic economy through transfer skills and technology, strengthening infrastructure, enhance exports and contribute to the longterm economic development of the worlds developing countries. More than ever, countries at all levels of development seek to leverage FDI for development. FDI as a developmental tool in all sectors and tourism is considered no exceptions. Liberalization policies have led to rapid growth in FDI flows in recent years. Based on the benefits associated with FDI several developing, as well developed countries compete fiercely for FDI. They try to attract foreign investors by providing financial and fiscal incentives, undertaking corporate restructuring and economic reforms and inviting foreign investors in the privatization of state-run units. In 2001, for example 71 countries made 208 changes in their FDI regulatory policies, out of which 194 have done to attract higher FDI.

100% FDI is Permissible in the Sector on the Automatic Route.


The term hotels include restaurants, beach resorts, and other tourist complexes providing accommodation and/or catering and food facilities to tourists. Tourism related industry include travel agencies, tour operating agencies and tourist transport operating agencies, units providing facilities for cultural, adventure and wild life experience to tourists, surface, air and water transport facilities to tourists, leisure, entertainment, amusement, sports, and health units for tourists and Convention/Seminar units and organizations.

For Foreign Technology Agreements, Automatic Approval is Granted if


1. 2. Up to 3% of the capital cost of the project is proposed to be paid for technical and consultancy services including fees for architects, design, supervision etc. Up to 3% of net turnover is payable for franchising and marketing/publicity support fee, and up to 10% of gross operating profit is payable for management fee, including incentive fee. (Department of Industrial Policy & Promotion, 2003)

Need for FDI in Tourism


Foreign tourist arrivals are expected to grow to 10 million by 2010-12 and the domestic tourism is expected to increase by 15% to 20% over the next five years as per the MoT expectations based on the growth in the last one decade. There is a rapid growth in average room rates and is expected to continue until sufficient new supply come on stream (average increase is 21% since 2004-06 in 4 & 5 star segment). Government of India is allowing 100% FDI in Hotels and Tourism, through the automatic route and has also identified the investment opportunity of about $8-10 billion in the next 5 years in tourism sector. India has significant potential for becoming a major global tourist destination. It is estimated there is a need of around 10 billion US $ required for development of tourism as per the different state tourism estimates for the next five years. The long term capital requirement of all states is estimated around 56 billion US $ for the next 20 years. A rapidly growing middle class, the advent of corporate incentive travel and the multinational companies into India has boosted prospects for tourism. Indias easy visa rules, public freedoms and its many attractions as an ancient civilization makes tourism development easier than in many other countries. In order to attract 111

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Foreign Direct Investment (FDI) in Indian Tourism

more visitors, India needs to increase room supply, open further its skies to increase air capacity, and upgrade its airports, roads and other infrastructure to global standards. Also tourism development needs to be pursued with a focus on sustainability. Though the Government of India is allowing 100% FDI in automatic route to India in tourism sector and there is a wide gap between the demand and supply of hotel rooms and other tourism infrastructure projects, Tourism has attracted the FDI 660.87 million US $ which is 1.46 percent of the total FDI inflow into India from April 2000 to December 2007.

Reasons to Invest in this Sector


Economic liberalization has given a new impetus to the hospitality industry. The Indian hospitality industry is growing at a rate of 15 percent annually. The current gap between supply and demand expected to widen further as the economy opens and grows. The travel and hospitality industry continues to be the sector, which has largely profited from the fast growing economy of India. This has largely been due to the 3.9 million tourist arrivals in FY06 (15%growth) over the previous period. The compounded growth in tourist inflow over the last ten years (FY96-FY05) has been 8.2%, while in the last five years, growth stands at 9.1% per annum. This increase in the number of tourist arrivals in the country lifted the countrys standing in the world of tourist destinations. The country is ranked fourth among the worlds must see countries. The sector continues to face certain problems. A rapidly growing middle class, the advent of corporate incentive travel and the multinational companies into India has boosted prospects for tourism. Indias easy visa rules, public freedoms and its many attractions as an ancient civilization makes tourism development easier than in many other countries. The five star hotel segments have grown the fastest during the last five years at a CAGR of 12%. Further, this segment can be divided into 3 sub-segments Luxury, Business and Leisure. The growth in this segment indicates the genre of travelers coming into the country. Over the last few years the country has witnessed a large influx of business travelers in the country owing to relaxation of the governments stand on FDI for most of the sectors in the country. Many foreign companies have already tied up with prominent Indian companies for setting up new hotels, motels and holiday resorts. The entry of McDonalds, PepsiCos, Kentucky Fried Chicken, Dominos and Pizza Hut has given an international glitz to the hospitality sector. It costs an average of US$50-80 million to set up five-star hotels with 300 rentable rooms in India. The gestation period is usually between three and four years. (Subbaro, S. P. 2008)

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Role of Bollywood and International Tourism Boards
Bollywood or the Hindi Indian film industry as is popularly known has unmistakably led fans of this popular cine culture to experience fresher climes in the Finnish Lapland of Rovaniemi and Poland (Fanaa), Victoria in Australia (Salaam Namaste), Korea (Gangster), Brazil (Dhoom II), Kandahar and Kabul (Kabul Express), Ras Al Khaimah (Deewane Hue Pagal, 36 China Town) and Malaysia (Don II). The trend which began perhaps with Dilwale Dulhaniya Le Jayenge in the 90s lapping up the UK and Swiss borders has now transcended its boundaries across the Atlantic to New York with Kabhie Alvida Na Kehna and Kal Ho Na Ho. As Dubai along with Ras Al Khaimah in the UAE, Hong Kong and Singapore have been added as new destinations to the Mumbai film repertoire, Tourism Boards the world over along with Mumbai and India are clamoring for a slice of the Indian film industry which is expected to cross a turnover of Rs.140 billion, as per a KPMG consultancy report. With the Hindi movie sector in India selling a billion more tickets annually than perhaps Hollywood, showcasing themes from all over the world, Kashmir and Kerala have given way to world destinations sites as more producers go westwards to film their movie musicals. The Indian Tourism Ministry and the Maharashtra government too are gearing up looking forward to create private or public partnerships to promote Bollywood Tourism, especially in the United Kingdom which has already worked out a counter tourism strategy to lure Hindi film fans. The British move is to allow Hindi film buffs to walk the paths of the now famous British locales of London, Scotland and Yorkshire and relive their favorite Bollywoods filmy moments. With Indias official carrier proposing to add new flights to London and European sectors to rope in the large Indian expatriate community, Britains Tourism department is already pitching high on Bollywood through the sale and distribution of an innovative Bollywood Map of Britain, with dozens of dots that identify now-seen scenes from Hindi blockbusters- locations such as the Blenheim Palace, Waddesden Manor- used extensively for the shots of Kabhie Khushie Kabhie Gham (K3G) and many more such spots made famous in Bollywood movies. The Hong Kong Tourism Board has recently accepted Bollywoods populism and has stepped up its might to attract and promote Hong Kong as a destination for filming Bollywood films. In the recent past, Hong Kong recorded a 24.7 per cent growth in visitors from India and this has led the tourism board to learn certain movie making linkages between Mumbai and Hong Kong which has plans to develop destination and tour packages revolving around Bollywood and also market the extensive production centers in Hong Kong to Indian movie makers. The Singapore Tourism Board in 2006 launched a Krrish tour package. The Swiss success of Bollywood has now trickled onto Finland and the Finnish Tourism Board (FTB) in the recent past has organized programs for Bollywoods dream merchants to familiarize themselves with Finland. The FTB proposes to give location subsidies. The idea of the FTB is to sell the midnight sun and Northern Lights of the archipelago and bring it under Bollywoods arch lights. With a direct flight to Helsinki from India, the prospects look very promising .With over 900 films being produced in India each year, the entire fan following in Bollywood has definitely redefined the tourism sectors globally. With film festivals and awards shows the rage of the times, more and more countries are offering their destination points to set shop for Bollywoods pre and post productions, also setting aside budgets for awards and glitterati shows. The Malaysian Government had set aside about $US 2.7 million to host the 2006 Global Indian Film Awards (GIFA) thus pushing up sales for Malaysia as a prime Bollywood destination, already made famous in a host of Hindi films .Most popular being the Petronas twin towers, Langkawi and Penang.

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Role of Bollywood and International Tourism Boards

Tourists destinations in Amsterdam, Zakopane in Poland and New Zealand had a new lease from Indian tour operators following the success of films such as Hum Tum, Fanaa and Kaho Na Pyar Hein respectively. What Lord of the Rings did to New Zealand with the surge in its Frodo economy, the Indian Bollywood Industry is toning up to the global travel and hospitality industry. Nepal is yet to tap in the mainstream Bollywood Industry and with such close proximity to India and with a variety of destinations to offer to the Indian movie industry, Nepals Hospitality & Tourism industry and the Indian film industry can both benefit mutually as the cost involved for the industry would dramatically be lower as compared to any other international destination without compromising on the scenic beauty and Nepal would get priceless recognition, visibility needless to say much better than what a 30 sec commercial can establish on prime time. However some interesting schemes need to be launched keeping in mind the requirements of the Indian film industry and it should be brought to notice of Indian Film makers, however it would take a lot of effort to lure this clientele. NTB is suggested to develop: Strategic Planning Schemes Great Incentives High End FAM trips Presentations followed by Gala Nights

These are just few examples of practices followed by various tourism Boards to entice the film Industry to take notice.

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References
Assocham Research Bureau. 2008. Globalisation Growth and People. New Delhi: The Associated Chambers of Commerce and Industry of India (ASSOCHAM). Deloitte. 2008. The Economic Case for the Visitor Economy: Final Report. London: Deloitte. Department of Industrial Policy & Promotion. 2003. Manual on Foreign Direct Investment in India: Policy and Procedures. New Delhi: Ministry of Commerce and Industry, Government of India. Director General Tourism. 2000. Tourism Development in India. New Delhi: Press Information Bureau, Govt. of India. ICRIER. 2009. Working Paper No. 234: Indian Economic Outlook 2008-09 and 2009-10. New Delhi: Indian Council for Research on International Economic Relations. Investment & Technology Promotion Division. 2009. Monthly Economic Analysis: Fortune 2009. New Delhi: Ministry of External Affairs, Government of India. Kanjilal, G. 2006. Opportunities Today: Tourism & Economic Benefits. New Delhi: Ministry of Tourism, Govt. of India. Kapoor, P. R. American Express study: Inside the Affluent Space in India. American Express. Keong. L. W. 2008. Indias Consumption Story Stays Strong Despite Global Crisis: India Retail Forum 2008. Germany: India Retail Forum. National Council for Applied Economic Research (NCAER). 2003. Domestic Tourism Study. New Delhi: Ministry of Tourism & Culture, Government of India. Planning Commission of India. 2006. Steering Committee on Tourism for the Formulation of the Eleventh Plan (2007-2012). New Delhi: Government of India. PricewaterhouseCoopers. 2008. Report on Indian Entertainment and Media Industry. Gurgaon: PricewaterhouseCoopers. Sharma, G. 2009. Job Opportunities in the National Capital: A Comparative Analysis of Delhi region & NCR cities. New Delhi: Research Bureau, The Associated Chambers of Commerce and Industry of India (ASSOCHAM). Subbaro, S. P. 2008. Conference on Tourism in India Challenges Ahead, 15-17 May 2008: A Study on Foreign Direct Investment (FDI) in Indian Tourism. Kozhikode: Indian Institute of Management Kozhikode. The McKinsey Global Institute. 2007. Bird of Gold: The Rise of Indias Consumer Market, by the year 2025. New York: McKinsey & Company. UNWTO. 2009. The Indian Outbound Travel Market. Madrid: World Tourism Organisation. Urban Age. 2007. Integrated City Making Report. London: London School of Economics.

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References

World Economic Forum. 2009. Travel & Tourism Competitiveness Report. Geneva: World Economic Forum. World Travel & Tourism Council. 2009. Travel & Tourism Economic Impact. London: World Travel & Tourism Council. World Travel & Tourism Council, 2009. Key Facts at a Glance: Tourism Economic Research Country Reports, India. London: World Travel & Tourism Council.

Electronic Article
Airline Network News & Analysis. 22nd May 2009. Indian domestic traffic down 13% in 2009 Q1; international demand also down. Surrey: Airline Network News & Analysis. Available from: http://www.anna.aero/2009/05/22/indian-domestic-traffic-down-13-in-2009-q1-international-demand-alsodown/. (Accessed on 01 June 2009). Credit Suisse. 2008. Credit Suisse Opens Wealth Management Business in Mumbai. Mumbai: Credit Suisse. Available from: https://www.credit-suisse.com/news/en/media_release.jsp?ns=40793. (Accessed on 01 June 2009). Economic Times. 25th Dec 2004. India, development incomplete with 62 percent living in slums. Mumbai: Economic Times. Available from: http://findarticles.com/p/articles/mi_hb5936/is_200412/ai_n23939402/. (Accessed on 08 May 2009). IAMAI. Tue, 27th Jan 2009. 45 Million Internet Users in India. New Delhi: The Internet & Mobile Association of India. Available from: http://www.iamai.in/PRelease_Detail.aspx?nid=1801&NMonth=1&NYear=2009.(Accessed on 24 March 2009). The Financial Express. 12th March 2008. Indian Tourism to generate $100 bn in 08. New Delhi: The Financial Express. Available from: http://www.financialexpress.com/news/indian-tourism-to-generate-100-bn-in-08/283514/. (Accessed on 23rd May 2009).

Websites
Government of India budgets. Available from: http://indiabudget.nic.in/ub2009-10(I)/eb/sbe93.pdf Incredible India. Available from: http://www.incredibleindia.org Nielsen India Outbound Travel Monitor. September 2008. Available from: www.asiatraveltips.com/news08/ 189-IndiaTourism.shtml Planning Commission. Government of India: Five Year Plans. Available from: http:// www.planningcommission.gov.in/

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Singapore Tourism Board. Available from: www.visitsingapore.com Tourism Authority of Thailand. Available from: www.tourismthailand.org Tourism Malaysia. Available from: www.tourism.gov.my

Other Resources Used


ETC Market Intelligence Group. 2007. ETC Market Insights: India. Brussels: European Travel Commission. Market Research Division. March 2007. Report on Evaluation Study in Selected Overseas Markets for Market Research Division. New Delhi: Ministry of Tourism, Government of India. Ministry of Tourism. 2007-2008. Annual Report. New Delhi: Government of India. The Indian Institute of Management Bangalore (IIMB) Research Team & India Convention Promotion Bureau. India as a Global Conventions Destination Prospects & Strategies Study. New Delhi: Ministry of Tourism, Government of India.

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Annexure VI
Research Questionnaires
Filled at the Consumer Promotion Events

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Format of the Questionnaire for Indian Travel Trade Nepal Tourism Board
Questionnaire for the Indian Travel Trade

Travel Agent
Person Contacted Address Address City & Pin

1. 2. 3. 4. 5. 6. 7. 8.

Are you selling International Packages ? If Yes, What countries ? Are you selling Nepal ? What Numbers per month ?
<5 Up 5-1 Down 10-50 No Change 50+

How do you compare these numbers from last year Which is the closest destination competition to Nepal ? What is the tourist profile ?
High Income Group Site Seeing Adventure Medium Income Group Religious Beyond KTM Rs. 15-25000.00 Low Income Group Casino Shopping Rs. 25000+

What are there preferred Activities ?

9. 10.

What is the approx spend per person for Nepal


< Rs. 15000.00 Security Flights Availability Hotels Availability Lack of Information Lack of NTO Support Others (Please specify)

What is the most important issue you face while selling Nepal ?

11.

Support Needed from NTB for Nepal Promotion


FAM Trips Advertising & Publicity Consumer Promotions & Events Sales Brochures

12.

Comments & Suggestions

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Responses to Queries Made during Presentation at Kathmandu, Nepal on 25th October 2009 Query 1
How Nepal Tourism Board can work out strategies with Indian Tour Operators as well as how Nepalese Tour Operators can work out strategies with their Indian counterparts? In order to ensure that Indian Tour Operators promote movement to Nepal, it is very important for Nepal Tourism Board to give sufficient support to the Indian Tour Operator. This could be done in several ways and we recommend the following strategies: Marketing Collaterals and Sales Support Material Joint Advertising in Indian Newspapers and Magazines Travel agent support in local events Time bound campaigns with monetary incentives Special Incentives for MICE movements FAM trips for sales staff

Marketing Collaterals and Sales Support Material


Currently Nepal Tourism Board is distributing Marketing Collaterals and Sales Support Material only during Trade Exhibitions and Road Shows. It is suggested that Nepal Tourism Board should offer personalised Marketing Collaterals and Sales Support Material to top 10 travel agents in each key city on an year round basis. This will ensure that travel agents have enough promotion material to sell Nepal on an year round basis. Personalised Marketing Collaterals will increase motivation levels of Travel agents and also enable prospective travelers to contact Travel agents with available contact details on the sales material as and when they wish to travel to Nepal.

Joint Advertising in Indian Newspapers and Magazines


Currently, there is no advertising support to Indian travel agents who wish to promote Nepal. Nepal Tourism Board could consider floating a scheme offering certain percentage of cost share to all Indian Travel agents who are promoting Nepal by releasing Newspaper advertisements. This will ensure that we get regular publicity in mainline publications on all year round basis. Cost share should be given only for: 100% Nepal Centric advertisements with NTB logo and other details Publishing in prominent publications.

Whenever Nepal Tourism Board is releasing their own advertisements in Indian Publications, they should consider giving contact details of Indian Travel agents in the advertisements. This will ensure that conversions are faster as intending visitors can immediately contact the travel agent and book packages upon reading the newspapers.

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Travel Agent Support in Local Events
Nepal Tourism Board can consider offering cost share support for travel agents promoting Nepal in local city based events such as: New Year / Diwali Expositions Local Club / Cultural Centre celebrations Shopping Mall promotions This ensures that Nepal gets top of the mind recall in local events and the travel agents can sell packages faster.

Time Bound Campaigns with Monetary Incentives


To push maximum traffic from India, Nepal Tourism Board could announce Travel agent schemes with cash incentives. This will ensure that travel agents have high motivation to sell Nepal packages and get rewarded as well. The scheme could run for 3 months and travel agents be paid cash incentives for achieving passenger targets.

Special Incentives for MICE Movements


There is a requirement to make a special incentive scheme for promotion of MICE movements to Nepal as well. Nepal Tourism should consider creating a special MICE promotion package for travel trade including the following: Complimentary FAM trip for the corporate which are planning a MICE delegation to Nepal. Special cash based incentives for travel agents who are bringing in a large delegation. Special MICE offering for the corporate who has brought the delegation. This could include: - Gala Dinner for the MICE delegates - Complimentary entertainment during the visit for one evening - Mementoes for the guests - Special ticket prices for monument visits for large MICE delegations

FAM Trips for Sales Staff


Currently, all FAM trips are being organized for owners / senior managers of the Travel agencies. Nepal Tourism Board should consider organizing a sales staff FAM trip for sales employees of the travel agencies. This will educate the sales staff and also motivate them to sell Nepal packages better.

Synergy Development of Nepal Tour Operators with Indian Tour Operators


Following activities could be undertaken to develop synergies between Nepalese and Indian Tour Operators Organization of more Travel Trade Road Shows in India with active participation from Nepalese tour operators Inviting Indian Tour operators to Nepal Trade Events such NATA mart Conducting Joint workshops with Nepalese and Indian Tour operators in Nepal 121

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Query 2

Responses to Queries Made during Presentation at Kathmandu, Nepal on 25 th October 2009

Growth of Indian FITs Outbound Travel over the Years


As per the latest figures released by the World Travel and Tourism Council (WTTC), the number of Indians travelling abroad in 2008-09 (April 1 to March 31) touched 10.8 million, which was up by a million over the 2007-08 figure of 9.8 million. The Indian outbound travel market had grown from 3.7 million in 1997 to 9.8 million international departures in 2007; the pace of growth has accelerated since 2004 at an average annual growth rate of over 16%. The Indian outbound travel has now crossed the 10- million mark for the first time ever and as per the WTTC report, India now is the third largest outbound travel market in the Asia Pacific region. It also predicts that the worlds travel and tourism economys size will contract by 3.6 per cent this year, but economies such as India, China and Brazil will still be drivers of growth. India is expected to grow by 10 per cent in the number of outbound Indian tourists in 2009-10.

Query 3
Use of Internet Marketing in Capturing Outbound Indian Tourism
As per a recent survey done by IMRB International and Internet and Mobile Association of India [IAMAI], India had as on September 2008 45.3 million active internet users. Urban users continue to dominate internet use contributing to 42 million of the 45 million odd users. Nepal Tourism Board could consider following options for capturing Indian Outbound tourism market via the medium of Internet marketing:

Using Google Adsense and Adwords Services


Adsense Displays targeted Google ads on Nepal related content pages and Nepal Tourism Board can show ads that are suited to Outbound Indian Tourist audiences interests. Google AdWords is Googles advertising product, which displays ads to people looking for specific products or services on Google or its partner sites. When NTB advertises with AdWords, NTB can pick words or phrases (called keywords) that are related to travel business and products or services. NTB then use these keywords to create ads that target Indian potential customers when they search for travel related products or services on Google. When a potential customer searches Google using the same or similar keywords, your Google AdWords ads may appear alongside or above the search results as a Sponsored Link, in response to the keywords searched, making the NTB website just a click away from the potential customer. Promotions by Banner Ads in popular Indian websites such as www.ndtv.com, www.timesofindia.com, etc. Promotions by Banner Ads in popular messenger services such as MSN messenger. Using Social networking sites such as Facebook, Orkut and Linkedin and reach target audience by advertising on these sites.

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Query 4
How Nepalese Tour Operators can take Advantage of the Internet Marketing Opportunities As mentioned in the previous page, Nepal Tourism stakeholders should use Internet as a major medium to book Indian travellers. Following roadmap could be used by Nepal Tourism Board for enabling internet as a booking medium for Nepal Step 1 Design of a Nepal Centric direct sales website with the following facilities: Information on Nepal Provision of Readymade instant availability packages by Nepalese travel agents Provision of instant Air ticketing by Nepal Air, Air India and Jet Airways. Indian Rupee payment gateway for travel packages and airline tickets. Step 2 Usage of Google Adwords and Adsense to capture interested Indian Outbound tourists and bring to above website Increase of traffic to above website by heavy promotions on popular Indian websites such as www.ndtv.com and www.timesofindia.com Brand Reinforcement by advertising and promotions on social networking sites such as Facebook, Orkut and Linkedin. Regular website update for interest maintenance.

Step 3

Step 4

Step 5

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Travel Agents
List of the Travel Agents Contacted

Akbar Travels of India P. Ltd.


Akbar Bhavan, 69/71Janjikar Street, Crawford Market, MUMBAI - 400003 India

Chawla Travel Services


Shop No. 23, Residency Road, NAGPUR - 440001 India

Grandeur Travels & Tours P Ltd


4, Scindia House, Second Floor, NEW DELHI - 110001 India

Anderson Travels P. Ltd.


Veena Chambers, 21, Dalal Street Fort, MUMBAI - 400023 India

Civica Travels Private Limited


Aakriti Towers,19, Vidhan Sabha Marg, Uttar Pradesh LUCKNOW - 226001 India

Great Escape Travels Pvt. Limited


5, Cambata Building J T Road, Next to Eros Cinema, Churchgate, MUMBAI - 400020 India

A-One Travels
Ground Floor, Suraj Chanda Cinema Complex, City Centre, AMRITSAR - 143001 India

Contact Tour & Travels


LGF-1, Dhan Nirman Complex, 15 A-Ashok Marg, (Near S.B.I.) LUCKNOW - 226001 India

Great Value Travels


1st Floor, Hotel Clarks Avadh, Avadh Bazar, 8 M.G. Marg, LUCKNOW - 226001 India

Balaji Travels Pvt Ltd


6, Raheja Centre, 214 Free Press Journal Road, Nariman Point MUMBAI - 400021 India

Crystal Tours & Travels Pvt. Ltd.


401, Sakar-IV, Opposite Town-Hall Ashram Road, Ellisbridge, AHMEDABAD - 380006 India

Hargobind Travels
S.C.O. 94-95, Sector 34-A, Behind Picaddaly Theatre CHANDIGARH - 160022 India

Disha Travel
103,Shreya House, Pereira Hill Rd, Andheri Kurla Rd,Andheri (E), MUMBAI - 400099 India

Bhagwati Travels
171, Subhash Chandra Bose Road, NAGPUR - 440018 India

Heena Airways
29-Ground Floor, Sriram Tower Ashok Marg, Near Shakti Bhawan, LUCKNOW - 226001 India

Bhagyashri Travels Pvt. Ltd.


11, Namjoshi Bhavan, 486, Sadashiv Peth, L.B. Shastri Road, PUNE - 411030 India

Evergreen Travels
S.C.O. # 87-88, Sector 34-A, Subcity Centre, CHANDIGARH - 160022 India

Holiday Maker (India) Pvt Ltd


USO House, 6, Special Institutional Area, Qutab Hotel Road NEW DELHI - 110067 India

Girikand Travels Pvt Ltd


759/90 B Bhandarkar Institute Raod, Deccan Gymkhana, PUNE - 411004 India

Bhavi Tours & Travels


8, Rainbow Complex, Stadium Road, AHMEDABAD - 380009 India

Impact Tours (India) P. Ltd


N-33/10 Middle Circle, Connaught Place, NEW DELHI - 110001 India

Globe Forex & Travels Ltd.


Goodluck Mansion, Panch Batti Crossing, M.I. Road, JAIPUR - 302001 India

Blue Sky Worldwide Travels


SCO-188-190, Sector 34-A CHANDIGARH - 160034 India

Incentive Destinations P. Ltd.


M-10, Greater Kailash Part - II NEW DELHI - 110048 India

Grand Travel Planners (P) Ltd.


14-16 1st Floor, S.C.O. 55-56, Sector 17-C, CHANDIGARH - 160017 India

Buena Vista Travels Pvt Ltd


23,Swastik Chambers, Sion-Trombay Road, Chembur, MUMBAI - 400071 India

Indica Travels & Tours Pvt Ltd


D-52, Ground Floor, NDSE Part I, NEW DELHI - 110049 India

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Travel Agents
Indoglobal Travels Pvt Ltd
Shridhar Smriti Behind Dr.Deodhars New Hospital Gokhale Road, Thane (W) MUMBAI - 400602 India

Leisure Trips
207, Aditya, B/H. Abhijeet Mithakali Six Roads AHMEDABAD - 380006 India

Paras Worldwide Tours and Travels


1/Side M K Hotel, Distt. Shopping Centre, Ranjit Avenue, AMRITSAR - 143001 India

Indra Travel Consultancy Services


12, Shree Sai Tower, 273, Narayan Peth, PUNE - 411030 India

Lynx Tour and Travels


140, 1st Floor, Antriksh Bhawan, Connaught Place, NEW DELHI - 110001 India

Perfect Connections Limited


T/A Uniglobe Perfect Connections, 101, Setu, S.P. Nagar Road, Off. C.G. Road, AHMEDABAD - 380006 India

Master Tour Organisers


1, Yashdeep Apartments, S.No. 696, Maharashinagar, PUNE - 411037 India

International Travel House Ltd.


T-2, Community Centre, Sheikh Sarai Phase - I, NEW DELHI - 110017 India

Prasanna Tours Pvt. Ltd.


Sai-Prasad 8/12, Historian Joshi Marg, Next to Solaris Gym. Nal Stop Off Karve Road, PUNE - 411004 India

J & S Travels Pvt. Limited


203, New Delhi House, 27 Barakhamba Road, NEW DELHI - 110001 India

Mayfair Airtravel Services Pvt. Ltd.


1st Floor, Mayfair Building, Hazratganj, LUCKNOW - 226001 India

Prompt Travels
Cabin 3,4,5 (First Floor), New HiTech Chambers, S.C.O.44-45 Madhya Marg, Sector 9-D CHANDIGARH - 160009 India

Jagsons Travels Private Limited.


Jagsons Enclave, 117-A, Central Avenue, NAGPUR - 440018 India

Narula Travels Pvt Ltd


Mohan Dev Building, 13, Tolstoy Marg, NEW DELHI - 110001 India

TGS Tours & Travels P Ltd


Tholia Circle, Mirza Ismail Road, JAIPUR - 302001 India

Jasbhag Tours & Travels


Ist Floor, Shop No.15, Chandpole Bazar, Near Hanumanji Temple, Rajasthan JAIPUR - 302001 India

Nationwide Travels
Ganpati House, 4 Way Road, Madan Mohan Malviya Marg, LUCKNOW - 226001 India

Om Air Travel Pvt. Ltd.


A-1, Sarita Darshan Appts, Opp. Jai Hind Press,Ashram Road, AHMEDABAD - 380009 India

Kaleidoscope Travel Consultants (P) Ltd.


208-209,A Wing, Parmar Trade Centre, Sadhu Wasvani Chowk, Pune Camp PUNE - 411001 India

One World Travels


16, (1st Floor) Pt. Din Dyal Upadhyay Complex, Bhandari Bridge, AMRITSAR 143001, India

Krisia Holidays & Travels Private Limited


82 Arcadia,195 Nariman Point, MUMBAI 400021 India

Orient Travels
10-A, Maqbool Road, Opp. Customes House, AMRITSAR - 143001 India

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