REPORT ON

KERLA TOURISM

SUBMITTED TO:
NADIRA CHATURVEDI

MADE BY:
PUJIL KHANNA
 EXECUTIVE SUMMARY

The new millennium and the coming decades are a crucial time for the relationship between
travel and tourism and sustainable development. The need to preserve the world’s inherent assets
for future generations is becoming an imperative goal not only for travel and tourism, but also
for all other industries that use the earth’s natural resources. The scale of travel and tourism’s
contribution to the global economy and its potential for enabling sustainable development
Are becoming more evident for governments, non-governmental organizations (NGOs) and
Industry alike.

Kerala has been branded as one of the most wanted tourism destination. A great deal
of this is due to proactive marketing and promotional measures taken during the last ten years. It
will not be right to adopt a complacent attitude that the State has ‘arrived’ as a tourist attraction.
Constant attention to improvement of infrastructure and environment (physical, ecological,
Cultural and social) are essential as also the continuance of promotional activities. Facts about
brand equity of Kerala

• Kerala was recently listed among the top 100

Brands of the country, by the globally renowned
Super brands Ltd. The State was selected from
Among 700 brands in the country that were
Evaluated to identify India’s strongest brands
• Kerala, one of the 55 Things That Make India
Proud India Today.
• The first State to be accorded the status of Partner
State of the World Travel and Tourism
Council (WTTC) in 2002

OVERVIEW ABOUT THE CASE:

After the September 11, 2001 incidents at the World Trade Centre, New York and subsequent
developments leading to Afghan War, Indo –Pak Boarder tension and terrorist attacks in some places of
India, foreign tourist arrivals in India suffered a setback in the sense that there was consistently negative
growth rate from September 2001 to September 2002. However a revival was observed from October
2002 onwards. While the international tourist inflow to India in the year 2002 recorded a decline to 6.92
percent, Kerala witnessed a considerable growth of 11.37 percent, including a 6.27 percent increase in
domestic arrivals. In 2003 there has been a further spurt. According to reports, the increase in tourist
inflow this year is expected to be nearly 30 per cent. While domestic arrivals were earlier largely
pilgrims, nowadays 30 per cent of domestic arrivals are also tourists. There is in particular a boom in
“quality tourism” with Kochi centered resorts as the most popular.
OBJECTIVES
As there is the decline in the manufacturing and agricultural industries in the state (due to large
number of people going in for expatriate employment in the gulf countries) the Kerala
government realized the potential of tourism as major revenue source.

INITIATIVES TAKEN BY (Government and KTDC)

The Kerala’s government concentrated on marketing attractions such as lagoons, canals,

backwater, boathouse, and its 600km coastline. The government under its guidance had
established various boards and society to look after tourism and to attract the customer. Like
The Department of Tourism, Kerala Tourism Development Corporation, (KTDC),
District Tourism Promotion Council (DTPCs,) ,Bekal Tourism Development Corporation (BTDC), Local
Governments and Private Sector are the major players in the field.

KERLA TOURISM DEVELOPMENT CENTRE

(TAGETED AREA)

• The KTDC looks the positive strengths of the Kerala state from the towns, cities,
beaches, backwater, cultural heights, food, wildlife and even the century’s old tradition of
healthcare through (Ayurveda).
• These aspects of Kerala which were the identified as the state unique selling propositions,
were packaged in a professional way by KTDC
• KTDC it had had hit upon a gold mine. Over the next year the organization efforts to
“sell” Kerala to Indians as well as foreigners began paying off.
• KTDC made out the core destination places of the KERALA and made known to the
public.
• KTDC also came with an agreement with various INDIAN hotels to start a promotional
campaign for the Kerala. Like Taj group
• KTDC also promote tourism in KERAL by attracting many famous personalities to come
and have a stay in their famous resorts.
• KTDC also came up with an innovative and comprehensive insurance package for tourist.
• KTDC has started holding many events like for example:

 Kerala Travel Mart

 National Boat show
 Special Priority to tourism projects in Malabar
 Kerala Gold Fest, 2003
 Road shows nationally and internationally
STEPS OF KTDC GETS RECOGNITIONS

Tourism development efforts of Kerala are recognized at National and International level.

INCOME GENERATION
Earnings from Tourism in Kerala

• The earnings from Tourism increased

From Rs. 535 crores in 2001 to Rs. 705.67
crores in 2002 that is an increase of 32%

• Due to the thrust given to tourism by Government

In recent times large-scale private investments
Have been attracted to the State.
It has been estimated that
The total investment in tourism in the State for
The year 2002 was more than Rs.500 crores.
The revenue generated in tourism is assessed
As 6.29% of the GDP including multiplier effect.

Employment Generation
Being a service industry, Tourism creates employment opportunities for local population direct
Jobs in establishments like hotels, restaurants, tourist shops and travel agencies and also in the
transport handloom and handicraft industries. Direct employment is also generated for certain
category of workers like interpreters, guides, tour operator’s etc. Tourism creates

Others also join the “BRANDWAGON”

Because of the Kerala successful model implementation the other states also realizes the
potential of the tourism sector and has started giving stress on it as a source of revenue by
serving the tourist with quality. The success of Kerala depends on the following points

• Strong Brand positioning

• Thinking out side of the Box
• Product Differentiation
• Model public/private partnership
• Tremendous political support
• Public Acceptance

GOA TOURISM
(NATURE)

Most of the tourism in Goa is concentrated in the coastal stretches of Bardez, Salcete,
Tiswadi and Marmagao. Over 90 percent of domestic tourists and over 99 percent of the
International tourists frequent these areas. Consequently, beach tourism is the only type that is
Avidly encouraged by policymakers and other concerned parties alike. Goa is visited by two
types of tourists with distinct needs which this state satisfies. The first is the domestic tourists,
who comprise 80 percent of all tourists. These people come in search of the culture that is
different from the rest of India, as the Goan image holds a degree of mysticism, a sense of
freedom and unconventional dress style. The second is the international tourists who visit Goa
purely for the natural environment sun and beaches. Within the category of international tourists
are there are two sub-categories: backpackers and charter tourists. Although both visit Goa for
the beaches, they stay away from each other. The backpackers are not found in areas of charter
tourists; they prefer to mingle and live with the local communities. Whereas, the charter tourists
tend to stay in the luxury starred hotels. Domestic and international tourists also differ in terms
of the areas they frequent. For the domestic tourist, the beaches hold limited appeal, so domestic
tourists remain away from the places frequented by the international tourists.

MAHARASHTRA:
(MAHARASHTRA TOURISM DEVELOPMENT CORPORATION)

Maharashtra focused its planning through MTDC, projects and enhances its historical, physical
and cultural heritage. It also organizes festivals at the heritage sites and places of historical and
tourist attractions in the state, such as Banganga, Kala Ghoda, Pune etc. It gets the support from
Corporate and other sponsors for such initiatives. The planned campaign was started to highlight
the unique features of the states like

• Longest coastline in the world

• The largest number of caves and its variety of architectural styles.
• Give stress on road shows internationally
• The Deccan train has its own popularity

OVERVIEW OF THE INDIAN TOURISM

(Facts and figure)

The year 2006 has been a highly successful year for India. For the fourth successive year,
India witnessed a positive growth in foreign tourist arrivals, reaching a level of 4.43 million
Against 2.38 million during 2002. The growth rate of 13.04 % during 2006 was achieved over
2005 and the share of India in world tourism is expected to be around 0.52%. Foreign exchange
Earnings has reached US$ 6569.34 in 2006 and marked an increase of 14.63 % over 2005 (US $
5730.86).in absolute rupee terms, the increase in foreign exchange earnings during the year 2006
is Rs 4431.31 crores over 2005. Tourism is the third largest net earner of foreign exchange next
to garments, gem and jewellery industry, recording earnings of US $6569.34million in 2006
(Rs29603.56crores). India’s share in the total global tourist arrivals and earnings remained quite
Insignificant at 0.52 % of the world arrivals and the percentage of share of tourism receipts for
2006 was 0.90 %.

FOREGIN TOURIST
Arrival in millions
YEAR ARRIVAL % Change
2002 2.38 (-) 6
2003 2.73 (+) 14.3
2004 3.46 (+) 26.8
2005 3.92 (+) 13.2
2006 4.43 (+) 13.0
Growth in 5 years i.e., 2006
over 2001: 86%

The Tourism Satellite Account for India has brought out that Tourism’s contribution to
GDP of the country has been 5.9% in 2003-04, while employment in tourism sector both direct
And indirect, has been 41.8 million in the same year, which accounts for 8.78% of total
Employment in the country. Though the growth in tourism in India has been impressive, India’s
Share in global tourist arrivals is quite insignificant. However, earning per tourist is highest for
India compared to neighboring countries. It is universally acknowledged that the tourism
Resources of India 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 engine of growth for the economy.

n!!

statistics on tourist numbers in India

- * number of foreign tourists in 2006: about 4 million [AT Jan 07]
- * increase of tourist arrivals for the past 2 years: 13% annually [AT Jan 07]
- tourist arrivals in India: 1995: 2.12 million -- 1999: 2.48 million -- 2000: 2.64 million
-- 2002: 2.36 million
- number of Britons visiting India: about 300,000 per year
 - foreign tourists visiting the Northern states of India: 60 percent
- annual domestic tourists: 300 million (may 2004)
- number of domestic tourists or travelers in 2002: 270 million (acc. to Department
of Tourism)
growth of domestic travel from 2002 to 2004: 15 to 20 percent
- growth of domestic travel within the past 4 years: about 30 percent (may 2004)
- number of tourists visiting the Taj Mahal in 2003: over 3 million
(most visited Indian tourist attraction) [BBC Sep 04]

miscellaneous India tourism stats

- * foreign exchange earnings from tourism: 2005: approx 230bn Rs (5.7bn USD),
increase of 20.2% from 2004 [AT Jan 07]
- foreign exchange earning previous years: 2000: 3.16 billion US dollar --
2002: 2.96 billion US dollar
- * expected growth of Indian tourism industry: 10% annually over the next decade
(according to World Travel and Tourism Council) [AT Jan 07]
- advertisement budget of the government for promotion of tourism: 650 million Rs
(recent increase by 60 % - "Incredible India" slogan) [2004]
- annual passenger handling of Mumbai and Delhi airports combined: 22 million
[2004]
- number of passengers flying out of Delhi airport every night between 10 pm and
4 am (the bizarre timing of most international flights): around 5,000 passengers
(apr 2004)
- * new branches of tourism in India: medical tourism, graveyard tourism,
slum tourism [AT Jan 07]
- * average spending of foreign tourist in 2005: Rs 6 lakh(1,470 USD) [AT Jan 07]
- * people employed directly and indirectly by the tourism sector: almost 42 million
(or 8.78% of total employment) [AT Jan 07]
- hotel occupancy in Delhi dec 03: 90 to 100 %

Impact of Tourism on the Indian economy:

 Traffic increase: +45.5%, Value increase: +62.2% (in

US$ million), Additional earnings from Tourism: +Rs.8274 crores
 Foreign exchange earnings from tourist spending were pegged at around Rs.5358 crore in
the first two months of 2006, registering a growth of 14.7% over the same period in ’05.
 Foreign Tourist flow has grown at around 13%, with 4.4 million visitors in 2006. Last
financial year saw 4.01 million Tourist arriving in the country, up by 11% over last year
and is expected to maintain the same levels this year too
 In calendar 2005, the country received 3.9m foreign tourists, a jump of 14% over ’04. In
2005, the country earned $6.9bn from inbound foreign tourists, which is more than twice
the $3.1bn earned in 2005
 The tourism ministry has set a target of 10 million tourists by 2010. The WTO has
predicted that India will receive 25 million tourists by 2015.
 Around 500 million domestic tourists are projected to travel across India by 2010
compared to Around 325 million in 2006 and growing at over 10% annually.
 In India, the industry supports 48 million jobs, directly or indirectly or 8.27 per cent of
total Employment and accounts for 5.83 percent of the GDP, according to Department of
Tourism

RECCOMENDATIONS
 • Integrate travel and tourism policy, especially the environment, into broader
government policies.
• Set up realistic capacities within sustainability frameworks, which have been
Set in consultation with industry and other stakeholders.
• Create incentives for the travel and tourism industry backed up where necessary by
Effective regulation;
• Be committed to the controlled expansion, where appropriate, of infrastructure;
• Apply environmental taxes fairly and nondiscriminatorily, where needed. They should
Be carefully thought out to minimize their Impact on economic development, and
revenues should be allocated to travel
• Design policies creating incentives for corporate social responsibility in tourism, favoring
a sensitive and engaging approach towards
.
Public-private partnerships need to be stressed?

“PPPs enable the public sector to benefit from commercial dynamism, the ability to raise
finances in an environment of budgetary restrictions, innovation and efficiencies, harnessed
through the introduction of private sector investors who contribute their own capital, skills and
experience”

• Plan and develop infrastructure with a long-term view

• Implement indicators and environmental impact assessment tools to enable

Successful and effective local management and appropriate development.

• Agree on common standards and tools to enable the measurement of progress

Towards achieving sustainable development

• Fund and develop contemporary research into sustainable tourism. Issues requiring
Attention include design, carrying capacity, tour operator activities, environmental
Reporting, and auditing and environmental impact assessments, socio-economic
Sustainability of the tourism businesses

CONCLUSION

To achieve the goals and challenges set for the travel and tourism industry as it continues to
grow throughout the coming decades, will require a strong and co-operative partnership between
government departments, national tourism authorities, international and national trade
associations, trade unions and the travel and tourism private sector. All stakeholders now need to
share the responsibility for travel and tourism’s future and need to deliver the following to ensure
its sustainability