Dynamic Research Journals (DRJ)

Journal of Economics and Finance (DRJ-JEF)

Volume 2 ~ Issue 1 (January, 2017) pp: 07-11
www.dynamicresearchjournals.org

Comparing Domestic and Foreign Tourists Economic Impact in

Desert Triangle of Rajasthan
Mala Sharma
Research Scholar, J.N.V.U. Jodhpur.

Received 30 November, 2016; Accepted 03 December, 2016; Published 31 January 2017 The author(s) 2017.
Published with open access at www.dynamicresearchjournals.org

Abstract:- The study compared the economic impact of domestic and foreign tourism through tourists
expenditure pattern in Desert Triangle of Rajasthan. One way Anova test has been used to compare the tourists
expenditure on five primary sectors accommodation, food & drink, transportation (within the city),
entertainment, shopping. Results revealed the rejection of hypothesis for overall level and separately on
accommodation, food & drink, entertainment and acceptance of hypothesis for transportation (within the city),
shopping sector.
Key words: Desert Triangle, One way Anova test, Tourists expenditure, Accommodation, Food & drink,
Transportation (within the city), Entertainment, Shopping.

I. Introduction
Tourism is an activity involving a complex mixture of material and psychological element. The
material ones are accommodation, transportation and the attraction and entertainment available. The
psychological factors include a wide spectrum of attitude and expectations. (V smith, 1977).
Tourism is an important social and economic phenomenon being a key driver of socio-economic
progress through the creation of jobs and enterprises, infrastructure development and the export revenue earned.
The First Prime Minister of India, Pandit Jawaharlal Nehru was the first person that noticed the importance of
tourism in the country. According to him tourism is not only an instrument of earning foreign exchange but also
a mean of seeking international cooperation, understanding and peace between the nations
The World Travel and Tourism Council calculated that tourism generated 8.31 lakh crore (US $ 120
million) or 63% of the nation's GDP in 2015 and supported 37.315 million jobs, 8.7% of its total employment.
The sector is predicted to grow at an average annual rate of 7.5%.
Tourism has a variety of economic impacts. The most direct effect occurs within the primary tourism
sectors lodging, restaurants, transportation, amusements and retail trade. Through secondary effects tourism
affects most sectors of the economy.
This study aims to compare the economic impact of domestic and foreign tourism through tourists
expenditure patterns in the Desert Triangle of Rajasthan.

Main Objectives of the Study:-

To compare the economic impact of domestic and foreign tourism in the desert Triangle of Rajasthan.

To analyse the direct effects of domestic and foreign tourism on the economy of the Desert Triangle of
Rajasthan.

To study the contribution of domestic and foreign tourism on the primary tourism sector like
accommodation, food and drink, transportation, entertainment and shopping.

Hypothesis:-
There is no statistically significant difference between the economic impact of domestic and foreign
tourism in the Desert Triangle of Rajasthan. The hypothesis has five dimensions as par the five sectors of
tourist industry:

Accommodation

Food & Drink

Transportation (within the city)

Entertainment

Shopping

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 Comparing Domestic and Foreign Tourists Economic Impact in Desert Triangle of Rajasthan

II. Research Methodology

In this research study, a comparative study of domestic and foreign tourism has been done to compare
the contribution of both of the tourism in the region of "Desert Triangle". It is an extremely simple approach and
captures the essential elements of an economic impact analysis by using the expenditure patterns of domestic
and foreign tourists on core industries of tourism. The study covers estimates of the direct impact of domestic
and foreign tourists' expenditures primary tourism sectors accommodation, food and drink, transportation,
entertainment and shopping.
To compare the economic impact of domestic and foreign tourism, "Travel Expenditure Pattern" is
used by the researcher. The prosperity that the tourists bring to a destination largely depends upon the amount of
expenditure done by the tourists at the destination. To collect the expenditure pattern of both the tourists in the
study area, a sample survey was conducted at the visitor places of three districts Jodhpur, Jaisalmer and
Bikaner. To collect the primary data a survey questionnaire was used. On the basis of this structured
questionnaire, qualitative and quantitative aspects of the survey have been presented in the study, based on the
data collected.
Random sampling method was used for the primary data collection. Domestic and foreign tourists were
chosen as respondent to give their expenditure pattern. The total number of sample was 300, including both
domestic and foreign tourists. Both domestic and foreign tourists were equal in numbers (150: 150). Processed
data were analyzed with the help of average of every sectors expenditure. One way Anova test has been used to
test the hypothesis.

Study Area:-
Owing to its unique topography, history and culture, customs and relatively peaceful environment,
Rajasthan has been able to attract a large number of tourists. Desert triangle of Rajasthan has been chosen as
the study area. The "Desert Triangle" is the set of three districts Jodhpur, Jaisalmer and Bikaner, located in the
desert belt of Rajasthan.

III. Research Analysis

Table 1: Average expenditure per tourist per day (domestic and foreign tourists)
Average Expenditure of different sectors
Sectors domestic Tourists Foreign Tourists
Accommodation 632.88 1080.26
Food & Drink 487.86 685.6
Transportation 191.5 214.73
Entertainment 182.66 421.66
Shopping 1115.11 1298.93
Total 2610.02 3679.86

The above table shows that:

On an average a domestic tourist spent Rs. 632.88 per day on accommodation services where as a foreign
tourist spent Rs. 1080.26 per day.

About Rs.487.86 spent a domestic tourist on food and drink sector per day, while a foreign tourist spent Rs.
685.60.

On transportation (within the city) a domestic tourist spent Rs. 191.50 where as a foreign tourist spent Rs.
214.73 per day.

On an average a domestic tourist spent Rs.182.66 per day on entertainment sector while a foreign tourist
spent Rs. 421.66 per day.

Around Rs. 1115.11 was spent by a domestic tourist per day, whereas, Rs. 1268.93 was spent by a foreign
tourist.

As a total of all expenses, average expenditure of a domestic tourist was Rs. 2610.02 per day, while Rs.
3679.86 was the average expenditure of a foreign tourist.

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 Comparing Domestic and Foreign Tourists Economic Impact in Desert Triangle of Rajasthan

Chart 1: Average Expenditure per tourist per day (domestic and foreign tourists)
7000
6000
5000
4000 Average Expenditure in
3000 different sectors Foreign
2000 Tourists
1000
0 Average Expenditure in
different sectors
domestic Tourists

Hypothesis testing:
Table 2: calculated F value of different sectors:
Sectors
Accommodation Food & Drink Transportation Entertainment Shopping
F value 26.58 7.29 1.83 5.9 2.57
Source: computed from the primary survey conducted at study area.

The table reveals the calculated F value of comparison of mean scores of tourists expenditure on different
sectors of tourism industry.

Chart 2: Anova test for accommodation sector

50

0
Calculated F value Original table value
Anova test for accommodation sector

Significance level: 5%. Table value: 3.87.

The hypothesis is rejected for the accommodation sector, because the calculated F value for accommodation
sector (26.58) is greater than the table value.

Chart 3: Anova test for food & Drink sector

8
6
4
2
0
Calculated F value Original table value
Anova test for food & drink sector

Significance level: 5%. Table value: 3.87.

The hypothesis is rejected for the second sector, food & drink, because the calculated F value for the sector
(7.29) is greater than the table value which is 3.87.

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 Comparing Domestic and Foreign Tourists Economic Impact in Desert Triangle of Rajasthan

Chart 4: Anova test for Transportation (within the city) sector

4
3
2
1
0
Calculated F value Oroginal table value
Anova test for transportation sector
Significance level: 5%. Table value: 3.87.

The hypothesis is accepted for the transportation (within the city) sector, where the calculated F value is
1.83 which is less than 3.87.

Chart 5: Anova test for entertainment sector

6
5
4
3
2
1
0
Calculated F value Oroginal table value
Anova test for entertainment sector
Significance level: 5%. Table value: 3.87.

The hypothesis is rejected for the fourth sector, entertainment, because the calculated F value for the sector
is 5.90 which are greater than the table value which is 3.87.

Chart 6: Anova test for shopping sector

4
3.5
3
2.5
2
1.5
1
0.5
0
Calculated F value Oroginal table value
Anova test for shopping sector
Significance level: 5%. Table value: 3.87.

The hypothesis is accepted for the shopping sector, where the calculated F value (2.57) is less than 3.87.

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 Comparing Domestic and Foreign Tourists Economic Impact in Desert Triangle of Rajasthan

Chart 7: Anova test for main hypothesis

15

10

0
Calculated F value Oroginal table value
Anova test for main hypothesis
Significance level: 5%. Table value: 3.87.

Over the entire hypothesis is rejected at the total level where the calculated F value is 12.08 which is greater
than the original table value of F (3.87).

IV. Results
The economic impact of domestic and foreign tourism has a statistically significant difference on
overall level and separately on accommodation, food and drink and entertainment sectors, but for the
transportation (within the city) and shopping sector, the hypothesis is accepted which states that There is
no statistically significant difference between the economic impact of domestic and foreign tourism in the
Desert Triangle of Rajasthan.
It means for over all, accommodation, food and drink and entertainment sector, the foreign tourism has
a greater economic impact but for the transportation (within the city) and shopping sector, the statistical
significant difference has not been found between the economic impacts of both tourisms.

V. Discussion
The reason behind the rejection of hypothesis for accommodation, food and drink was that foreign
tourists likely to spend more on high rate accommodation and food and drink as compared to domestics.
Most of the foreign tourists spent more on highly rated starred hotels rather than home stay and budget
hotels. Additionally, most of them preferred to spend in luxury restaurants that offer great local cuisine.
Another reason for that is, most of the foreign tourists travel as a couple and domestic tourists travel in large
group of family and friends, and because of their sociality, they shared their accommodations with each
other and result was a cheaper and affordable rent.
Factor affecting the acceptance of hypothesis for the transportation sector is that foreign tourists prefer to
walk around the city, because of their curiosity for local culture and heritage. It is easy to carry the shopped
materials for domestic tourists and for foreign tourists it is difficult to send the shopped items to their home
country because of the taxes and duties. Another reason is duration of their stay. Foreign tourists stayed for
a longer period in comparison to domestics, so they could not carry the shopped items to everywhere.

Recommendations and suggestions:

The study suggests the associated authorities, policy makers, entrepreneurs involved and local
populace to better understand the tourists choice patterns for effective marketing strategies. These findings
suggest some essential steps to be taken to find out the preference of domestic and foreign tourists
especially in terms of transportation and entertainment, due to the per capita low average expenditure. A
variety of entertainment options and activities need to be reviewed and explored by promoting rarely
explored local activities to the tourists in the Desert Triangle.

References
[1]. Amir, s., Osman, M.M., Bachok, S., Ibrahim, M. (2015), Understanding domestic and international tourists expenditure pattern
in Melaka: result of CHAID analysis, Procedia: social and behavioural scinces, p-390-397.
[2]. Ardahaey F.T. (2011), Economic Impacts of Tourism Industry, International Journal of Business and Management p3-4.
[3]. Batra, G.S. and Daangwal R.C. (2001), Tourism Promotion and Development: New Advances, Deep and Deep Publication,
New Delhi. P11.
[4]. Ferguson A.F. (2001), 20 years perspective plan for sustainable tourism in Rajasthan, Dept. of Tourism, India p-112.
[5]. Raabova, T. (2014), Economic Impact Calculator: Do It Yourself, Arts and Theatre Institute, Prague, Czech Republic, p-5.

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