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Sustainable tourism in India

Himani Kaul and Shivangi Gupta
HP Labs Open Innovation Office, Gurgaon, India

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Abstract
Purpose The paper aims to provide a holistic perspective on various dimensions of sustainable
tourism. The discussion with key practitioners authenticates the issues that have already been identified.
Design/methodology/approach The paper combines analysis of government documents as well
as insights from practitioners. The paper discusses issues of sustainable tourism, strengths of the
industry, challenges faced and policy implications for the government.
Findings The paper explores the economic importance of sustainable tourism by outlining the
strengths and challenges of the Indian tourism industry. The paper has implications for the government
and firms in terms of investment in hospitality education, infrastructure and better employment practices.
Practical implications The paper provides a road map for some of the initiatives that
government and industry could adopt.
Originality/value It combines a policy perspective for government and industry stakeholders.
Keywords Sustainable development, Tourism, Economic development, Hotels, India
Paper type Viewpoint

Empirical work in progress

This paper aims to evaluate the potential and challenges for the tourism industry in
India. Discussing the industrys contribution to the economy, the paper also suggests
desirable policy level changes for further development. The final part of the paper
summarizes the viewpoints of the interviewees.
Approach
Policy documents from the Government of India were analysed and key issues relating
to sustainable tourism were identified. These were shared with selected practitioners
and academics. Following this, semi-structured telephone interviews were conducted
with experienced hoteliers and academics in July (World Travel and Tourism Council,
2008). Questions and discussion points were circulated prior to the interview to allow
for preparation. Subsequently, individual interviews were conducted by the authors
over the phone. This was identified as the most suitable process to gather perspectives
on the factual as well as the experiential insights that the industry experts had to offer.
The concept of sustainable tourism
Liberalization, privatization and globalization has fuelled the creation of a rapidly
changing and highly competitive environment worldwide. Nations, industries and
firms are strategically working to develop sustainable competitive advantage across
sectors. Most of the developing economies are in rapid transit towards becoming
Worldwide Hospitality and Tourism
Themes
Vol. 1 No. 1, 2009
pp. 12-18
q Emerald Group Publishing Limited
1755-4217
DOI 10.1108/17554210910949841

The authors are grateful to Anil Kaul, Senior Vice President Operations, Royal Orchid Hotels
and Former General Manager, The Oberoi Mumbai. The authors would also like to extend
their thanks to Ashish Jakhanwala, General Manager Development Accor Hotels India,
Bangladesh, Nepal and The Sri Lanka Accor Hospitality Group.

service economies and therefore, the relative competitiveness of the service sector is
emerging as a crucial factor as it influences the overall competitiveness of a country
(Dugar, 2005). Playing a significant role here is the tourism industry, the largest and
fastest growing industry in the world, employing over 260 million people and
generating 10.7 percent of the worlds GDP (Eco India, 2008).
As noted by the World Tourism Organization (2004), sustainable tourism
principles refer to the environmental, economic and socio-cultural aspects of tourism
development. A suitable balance must be established between these three dimensions
to guarantee its long-term sustainability. Its importance lies in its objective which is to
conserve resources and increase and preserve local cultures and traditions. In simple
terms, sustainable tourism is responsible tourism intended to generate employment
and income, thereby reducing any deeper impact on the environment and local culture.
The principles of sustainable tourism lay especial emphasis on the participation of
local communities at tourism destinations. Here, the active involvement of local people
is the critical success factor in sustaining momentum. Ideally, local communities
should reap direct benefits from tourism development as reflected by the expansion of
local business opportunities. Training and education programmes play an important
support role here as they help to improve cultural heritage and the management of
natural resources.
The tourism industry in India
It is a known fact that as the economy grows the demand for services increases.
The service sector accounts for 54 percent of GDP in India and is currently the fastest
growing sector of the economy (Planning Commission, Government of India, 2007).
Hospitality and tourism is an important contributor to Indias service portfolio.
To illustrate, the tourism industry in India is expected to achieve the fastest rate of
growth (about 9.7 percent over the next ten years) of any economic sector (Planning
Commission, Government of India, 2007).
Though Indias international arrivals show growth at 13.9 percent a year, the
domestic tourism market is expanding rapidly, having doubled in size over the last five
years (Jones Lang LaSalle Hotels, 2008). The domestic travel boom has been the primary
driver of demand for hotels and if growth continues at the same rate, the sector will be
half the size of Chinas within five years. It is therefore not surprising that Indias
accommodation sector is facing considerable capacity constraints given the comparably
smaller base stock. In Asia, supply increases are most pronounced in India with room
stock forecast to triple in Chennai and Kolkata and double in Hyderabad, Delhi and
Bangalore over the next three years (Jones Lang LaSalle Hotels, 2008).
Indias stable growth pattern and compelling industry indicators are helping to lure
investors. It is estimated that the inward foreign direct investment (FDI) for India will
leap from US$ 25 billion in 2008 to US$ 35 billion in 2009 (Jones Lang LaSalle Hotels,
2008). The forecasted high levels of FDI will provide additional opportunities.
Core strengths
The following can be identified as Indias core tourism strengths:
.
The landscape of India is a natural attraction for tourists and a rich tapestry of
cultural heritage is woven into a wide range of tourism products. For instance,

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the capital Delhi is steeped in culture and history, reflected in its 175 national
heritage sites.
Indian tourism demand is estimated to grow at 8.8 percent from 2004 to 2013,
which would place India as the third-most rapidly growing tourism market in the
world after Montenegro and China (HVS Hospitality Services, 2007).
There is a phenomenal explosion of domestic tourism which is fueling the
industrys revival. For example, In India, for every international tourist, there
are about 80 domestic tourists (Planning Commission, Government of India,
2007).
India has a wide population of educated, hospitable people who have the moral
strength and desire to welcome tourists.
The hospitality industry is also booming with an increasing number of hotels
being opened in various regions across India. This will in turn help in job
creation and in driving the economic growth. Major brands such Emaar Group,
Kingdom Hotel Investments; and international fund companies such as
Blackstone, Morgan Stanley and Merrill Lynch among others have solidified
their interest in the Indian hotel sector. All major operators in India such as
Accor Group and InterContinental Hotels Group have expanded during 2008.
Specific, targeted efforts are being made to develop tourism in India in terms of
media campaigns. For example, the Incredible India campaign has had a very
strong impact on tourist arrivals. The Brand India message is being
communicated globally and penetration is strengthened by reaching
prospective visitors through electronic, print and internet media (HVS
Hospitality Services, 2007).
Sporting events such as the Indian Premier League cricket tournament held in
2008 and the Commonwealth Games to be held in 2010 are also significant
drivers for promoting destination India and fuelling tourist demand.

Impediments
The following can be identified as impediments to Indias tourism development.
As per the Tenth Planning Commission Report on Tourism, the major impediment
to the growth of tourism has been the lack of awareness about the benefits it can
bestow upon the host population. The goal of sustainable tourism requires well
coordinated human resource development (HRD) strategies aimed at tourism industry
personnel and the host community in general (Srivastava, 2008). The key point here is
that work cultures, operational activities and a professional and ethical approach to
sustainability are central to the concept of Sustainable Tourism. The hospitality
professionals involved in the roundtable discussion strongly endorse this point.
The Planning Commission Report has summarized the main factors that affect
Indias tourism competitiveness:
.
Lack of concern for competitiveness.
.
Complex visa procedures the absence of visa on arrival procedures (this issue
is linked to security concerns) puts India at a disadvantage as compared to its
counterparts.

.
.

Inadequate facilitation services infrastructure improvements at country entry

points and appropriate facilitation services are needed. The improvements
needed here should strike a balance between security and the need to provide a
welcoming and comfortable environment that is conducive to tourism
development.
Lack of quality infrastructure there is a need to upgrade airports, roads and
other infrastructure so as to meet global standards. The road network is vital to
tourism as 70 percent of passengers in India travel by road and many tourist
sectors are entirely dependent on roads. Efforts are being made in this regard.
The governments initiative to deal with infrastructure inadequacies is evidenced
by the construction of new airports at Hyderabad and Bangalore and a range of
improvements in the transportation system such as expansion of the metro rail
network in the capital.
Lack of emphasis on product quality.
Lack of training at the cutting edge the various education and training
institutions have not been able to produce enough professionals to meet the
industrys expectations. Currently, there are 21 Institutes of Hotel Management
and Catering Technology and 13 Food Craft Institutes in the country.
Lack of hygiene can act as a major impediment to the development of tourism
and the tourists experience of the country.
Low utilization of modern marketing and publicity tools a major thrust on
campaigns such as Incredible India is needed to establish Brand India
globally.
A strategic mismatch between the room supply and demand. A recent report on
investment in hotel infrastructure in India predicts that new capital investment
in the hotel industry will add approximately 53,000 rooms by 2011, well short of
the current estimated requirement of 150,000 rooms. Thus, a shortage of 100,000
rooms will persist beyond 2011 (FICCI Study, 2007).
Insufficient involvement by the private sector in tourism development. The
government has identified the major reasons for lack of private investment as
absence of legislative support, lack of policy integration and coordination, lack of
long-term investor friendly policies, heavy taxation and restrictive land policies.

The existing paradox

Indias tourism industry needs to be understood in conjunction with transportation,
hospitality, aviation and infrastructure businesses. Only a well-balanced operation and
coordination among these sectors will result in a more competitive industry. As per
Dugar (2005) the Indian Tourism Industry can be called the industry of big
paradoxes, on the one hand, it has numerous advantages to its credit, on the other
hand the Indian hospitality and tourism industry is still well-behind even its smaller
neighbours in South-East Asia. It is also clear that the industry needs better
cooperation between the public and private sectors rather than the prevailing climate
of cut-throat competition between the two sectors.

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Suggestions for improvement

The implementation of a number of key action points will greatly benefit the tourism
development in India:
.
It is imperative to gain control of pollution, environmental and ecological hazards
and cultural degradation and focus on sustainable tourism. The government also
recognizes that excessive exposure of ecologically fragile areas to human
interference can lead to environmental degradation.
.
Check the indiscriminate growth of tourism; the local population must be
convinced of the need to support regulations in the interest of long-term
sustainability. Many of Indias hill resorts have suffered due to lack of concern
for capacity management.
.
Ease bureaucratic hurdles.
.
Domestic tourism can form the basis of a viable and sustainable tourism
industry in India (Planning Commission, Government of India, 2002).
.
As the tourism grows it is essential to control its development via effective
planning and management. Furthermore, it is essential to conserve the
biodiversity of tourist destinations via sustainable tourism a coordinated effort
to conserve resources, value local culture and tradition and contribute to the
economy as a whole (Eco India, 2008).
.
Increase room supply in order to cater to the ever increasing inflow of tourists.
.
Open skies to increase air capacity in order to respond to existing demand for air
travel and stimulate new demand.
.
Greater involvement of the private sector via a more conducive environment for
investment. The growth in this sector is dependent on well integrated and
co-coordinated policies together within a stable, consistent policy framework.
.
Efficient training programmes are required not only for hotel management but
also for tourist guides, taxi drivers, restaurant staff, porters and other frontline
workers. The essential dos and donts need reinforcing among the various
service providers.
A sustainable tourism industry is closely related to the development of a better
integrated service environment. This requires cooperation by all the stakeholders
government; the private sector; road, rail and air network operators; training
institutions and above all the host community.
Practitioner insights
The response to these issues from practitioners are noted below in relation to three
broad categories: challenges, suggestions and the factors that support tourism
development:
(1) Challenges:
.
Absence of consensus on the role of tourism.
.
Upgrade airports, roads and other infrastructure to global standards, deal
with the infrastructure inadequacies.
.
Increase room supply.

Open skies to increase air capacity in order to respond to existing demand

for air travel and stimulate new demand.
.
Address the constraints of air-access and visa complexity.
.
Shortage of qualified manpower, both skilled and semi-skilled.
.
High rates of manpower attrition.
.
The high cost of real-estate means that many projects are difficulty to
quantify (in terms of return on investment) capital requirements are often too
high.
(2) Suggestions:
.
Control problems of pollution, environmental and ecological hazards and
cultural degradation; move towards sustainable tourism.
.
Check the indiscriminate growth of tourism.
.
Ease bureaucratic hurdles.
.
In India, for every international tourist, there are about 80 domestic tourists.
India should capitalize on this.
.
Domestic tourism can provide the foundations needed to develop sustainable
tourism in India.
.
Exploit the huge human resource potential in the country. Effective
education and training institutions can play a key role in attracting talented
people to join the industry.
(3) Factors favouring tourism in India/any country:
.
Favourable fiscal policy.
.
Continuing incentives for investment.
.
New infrastructure development.
.
Sustained and effective marketing.
.
Improved education and training.
.
Product diversification.
.

Concluding remarks
While attracting only a small proportion of international visitors relative to its massive
population base, India has one of the most diversified tourism profiles of any Asian
country. Domestic tourism in India has been growing at double the rate of international
tourism, boosted by the expansion and liberalization of aviation networks and
increasingly affluent populations after a sustained period of stellar economic growth
(Jones Lang LaSalle Hotels, 2008). It can be seen that for India to tap its enormous
tourism potential and to compete globally and within the Asian tourism market, it
must offer world-class tourism services and destinations.
There needs to be sensitization so as preserve the environment, local culture and
involvement of local communities. There is also a need for a more robust educational
system that can train the manpower needed for the industry. Hotel management
education should have strong inbuilt management components and feature courses on
sustainable development.

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When the hotel chains expand at vulnerable geographic locations, industry must be
offered incentives to invest in environment friendly practices. Waste management, energy
efficient devices, recycling, the use of organic materials and the promotion of healthy
eating using natural ingredients are some of the key steps that are needed. Investment and
support for budget hotels would enable SMEs to offer better facilities and provide more
employment opportunities. Good employee practices coupled with investments in training
will go a long way towards facilitating the development of a sensitive and well-educated
workforce that is geared towards sustainable tourism. To achieve this goal, relevant
stakeholders the industry, government, students and educationalists need to work
together to create awareness and reward good practice. Especial effort should be made to
identify, promote and reward good institutional practice.
References
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Corresponding author
Himani Kaul can be contacted at: himani.kaul@hp.com
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