CHAPTER – III

HISTORY OF TOURISM AND HOSPITALITY INDUSTRY AND

AGRO TOURISM

History of Tourism and Hospitality Industry:

Tourism is one of the world’s major economic success stories, like time, that
has no beginning or end. It is a phenomenon that has been created and is difficult to
define because of its complexity. When time began so did tourism.
With the Babylonian invention of money and the development of trade in 4000
BC, travel and tourism were invented. Not only were the Babylonians the first to
grasp the idea of money and use it in business transactions, but according to Goeldner
and Brent Ritchie (2006), had they founded the travel business. People could now pay
for transportation and accommodation with money or barter. Beginning in 2700 BC,
the Egyptians started building pyramids as elaborate burial tombs, including the step
Pyramid of Djoser, the Sphinx and pyramid at complexes Ciza and Abusir. So
wonderful were these tombs that they attracted large number of visitors. In the words
of Casson (1974, P. 32)
“As each monument was a hollowed spot, so the visitors always spent some
moments in prayer, yet their prime motivation was curiosity or destination enjoyment,
not religion.”
Around 1500 BC, Queen Hatshepsut took a cruise from Egypt to Punt (on the
East Coast of Africa), the journey is recorded in the temples of Deir -el- Bahari at
Luxor. Another Egyptian, Hartheuf, was an envoy of the pharaoh to Sudan. They
brought home a pygmy trained in native dances as a present for his ruler – the first
recorded souvenir. Easily Egyptians also purchased bargains or specialties abroad for
their friends and relatives. In 1800 BC, a young Uzalum received this request.
“I have never before written to you for something precious I wanted. But if
you want to be like a father to me, get me a fine string of beads, to be worn around the
head.”
Casson (1974, p. 34).
Further evidence of Egyptian travelers is reported by Herodotus.
“The Egyptians meet to celebrate festivals not once a year but a number of
times. The biggest and most popular is Bubastis…, the next at Busiris… the third at

19
Sais and so on. They go there on river, men and women, together, a big crowd one
each in the boat… And when they arrive at Bubastis, they celebrate the occasion with
great sacrifices, and more wine is consumed at this one festival than during the whole
rest of the year.”
The same stories, as mentioned above are repeated in Ancient Greece, the
Roman Empire, and the Silk Road. In Ancient Greece, according to tradition, in 700
BC the citizens of city- stated honoured that led to the Olympic Games. The
Phoenicians carried paying passengers around the Mediterranean. People of the Qing
dynasty paid homage to gods and goddess in sacred sites throughout China. As
countries civilizations and economics developed, travel and tourism grew for business
and pleasure.
Indian civilization, also one of the oldest civilizations in the history of
mankind has been explored by various travelers and traders. Though ancient written
records B.C could not be traced, few books and records lead us through the ancient
discovery of India through travelers’ perspective.
• 40 – 70 AD :- Anonymous author of the periplus of the Erythaen
(Red) sea : A merchant hand book, written apparently by an Egyptian Greek,
about trade routes through Red Sea and involving both East Africa and India.
It includes extensive information on ports and products in India.
• 629 – 645 AD: - Xuan Zang (Hsuan – Tsang): Chinese Buddhist monk and
translator travelling over the HinduKush to India. He returned to China via
southern route. His travel and story became fantastic legends.
• 518 – 521 AD: - Song Yun (Sung Yun) / Huisheng: he was sent on a mission
by the Empress Dowager to obtain the Buddhist scriptures in India in 518. He
travelled through Taklamakan Dessert, then further West into HinduKush,
Kabul, and Peshawar.
• 713 – 741 AD: - Hui Chao: Korean monk but grew up in China. He travelled
to India via sea route. He visited various Buddhist kingdoms in India. His
book ‘ The Record to Five Indian Kingdoms’ provided valuable information
on the Islamic and Buddhist distribution among the central Asian Kingdoms
during 8th century.
• 1316 – 1330:- Odoric of Pordenone: - Franciscan monk who travelled via
Constantinople and the Black Sea to Persia, and then via Indian Ocean to India

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 in the Early 1320s. His lengthy travel account which he dictated in 1930
became a “best seller” because of its authentic information.
• 1466 – 1472:- Afanasli Nikitin: - A merchant from Russian city of Tver who
travelled through Persia to India. His travelogue describes India.
• 1490 – 1530 :- Babur : the great, great, great – grandson of Timur, Zahiruddin
Muhammad Babur, wrote a stunning memoir of his early life and struggles in
Central Asia before finally settling down in Northern India and founding
Mughal Empire. He wrote extensive descriptive sections on the physical and
human geography, the flora and fauna, nomands in their pastures and urban
environments enriched by the architecture.
• 1579 – 1584:- John Newbery: a London merchant, he undertook three trips.
On the third trip he reached Mughal Court in India. He never wrote much
about his travel trips.
• 1583 – 1591:- Ralph Fitch: English merchant who travelled with John
Newbery to India. The Indian section of Fitch’s writing is not organized and
haphazard. Clearly he must have known a lot more than what made its way
into the writing.
• 1602 – 1607:- Benedict Go, from Portuguese. In 1554, he joined a mission to
meet the Mughal Emperor Akbar. He wrote the travel notes and letters
describing his journey. His account is an unique record by an European to
travel on the overland trade routes in inner Asia at the beginning of 17th
century. The account details human and natural treats to travel and other
aspects of the inner Asian trade.
• 1615-1616:- Richard Steele and John Crowther, agents for the British East
India Company, travelled from Agra, the Mughal Capital to Kandahar. Their
account highlights important overland trade routes, avoiding Portuguese
controlled areas in India.
These examples are just representatives of various travel accounts by travelers
to India and not a comprehensive study.
The domestic travel scenario in India was not very encouraging one. The first
reason was a social taboo. It was forbidden for a Hindu to cross a sea. A person would
be outcasted or would have to face a severe punishment. This discouraged any
adventurous journey overseas. The local travel would be limited to pilgrimage,

21
visiting friends and relatives (occasionally) and trade to known places. The distances
were long, routes not known or not secure enough to travel with families, and need to
explore was never encouraged or promoted. Only rich and wealthy who could afford
to travel by their own bullock – carts, horses or other means, could think of setting off
on a journey on their own. Others, as there was no public or affordable transport
easily available would have to walk to whatever destination they would like to go.
People for whom travelling was absolutely necessary would wait for some rich people
to set off for travel or would join group of merchants travelling from one place to
another. Travelling was expensive affair and a traveler set for a long journey would
return may be after months or years.
Hindus while setting off to Kashi Yatra would assure that their house and
family members were taken care of and would bid them final farewell as returning
back safe from the journey was next to impossible. Thus, travel was a risky and costly
preposition; very few would volunteer to travel for exploring.
Sher Khan, a Pathan ruler, in 15th century before Mughal Empire, built a series
of “Sarai” from Punjab to West Bengal on all major travel routes in his kingdom. A
Sarai was a shelter or overnight accommodation provided for travelers on the route. It
would also provide a traveler food, with water and animal fodder for horses and other
animals. This would be free of cost and separate people would be appointed for Hindu
and Muslim travelers to cook food and serve the travelers. One would find such Sarais
after every 12-15 miles on the major trade and travel routes in his kingdom. Later
many of these Sarais became market places for trading and even few became towns
with human settlements around them.
Even in the period of Mughal Empire, Emperor Akbar built Sarais from
Northern to Central India where Mughal Kingdom was spread. This system continued
and functioned well till Aurangzeb ruled the Mughal Kingdom. Later, with the decline
of Mughal Empire due to lack of maintenance and shortage of funds many Sarais
were either abandoned or closed down.
With the end of Mughal Empire in India, the British East India Company
spread her wings all over the India and slowly British started replacing old federal
system of small kingdoms then existed in India. India being a vast country, distances
to travel from East to West and North to South were enormous. The one who wishes
to rule such a huge country needs to have faster and easier communication from one

22
end to the other. So to facilitate their rule in India, British developed roads and faster
means to travel.
India was a major market place for British goods and was raw material
provider for Britain. So, faster and cheaper means to transport goods were essential to
keep the trade going to prosper the British Empire. Local people were encouraged to
educate and join British trading companies, as manpower was required at all levels.
Though British rule in India has destroyed the old established Swadeshi artisan,
craftsmen and trade practices in India, it introduced certain new developments like
railway, post-office, printing press and use of machinery in production. This
development was at a heavy price of 150 years of suppressing British rule in India.
In these 150 years of British rule, many Britishers settled down in India or
they would serve for 10-15 years in India at that time. The concept of summer
vacation was introduced, as they would find Indian summers in the plains too hot to
bear. Hill stations were developed and good accommodation facilities were specially
built at these places. By 19th century even the rich native Parsi and Marwari
community people built their own properties at such destinations. Mahabaleshwar and
Ooty are good examples of such hill stations developed by Britishers.
In 1898, during the British era in India, great freedom fighter Lokmanya
Balgangadhar Tilak travelled to the far south of India and abroad till Sri Lanka. His
travelogue about that journey gives an insight about customs, traditions and political
and social scenario of Madras, Colombo, Pondicherry and Rangoon.
For him travelling means gaining knowledge about people, their customs,
traditions and culture. One can gain more knowledge by observing these things and
being part of it than rather just trying to learn it from the books. It is a way to educate
oneself about social and business environment and give a different perspective to
one’s thought process.
In his travelogue he mentions about ‘Annachatra’ run by the Chetti
community in the desert of Sethu Bandha near Rameshwaram in south India. “It
provides food and water to pilgrims travelling from far off places and cost to run is
borne by rich Chetti Community. The cost of running such charity must be enormous
as miles in each direction; there is nothing but the desert.” So Hindu religion is always
gracious towards pilgrims and pilgrim places. Even the Varkaris who do “Pandharpur
Vari” every year are offered food, shelter and other daily necessities in charity
throughout the journey.
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 Great Indian Philosopher “Swami Vivekananda set out his journey in 1886 to
discover India. Till 1897 he travelled from Himalayas to South India. As mentioned
by “Shri Lokmanya Tilak”, travel broadens the minds of travelers and teaches things
that no book can teach you. Swami Vivekananda was deeply moved by the condition
of the people. His journey gave him insight and inspired him in his speeches and
literature for years to come. He could represent India in Chicago depicting true picture
of Indian society and the injustice done by England to India.
One could see “Dharmashalas” and “Annachatras” or “Prasadalaya”
distributing food to pilgrims in charity at many of Hindu pilgrim places like Shirdi,
Kashi, and Varanasi and even in Himalayas at high altitudes where carrying
ingredients itself is a task. “Langars” in Gurudwaras is another example of
community generosity towards pilgrims of all religions.
In ancient India, where travel was mostly limited, pilgrim was a major motive
behind travelling and Dharmashalas and Annachatras would fulfill bare basic needs of
a tourist visiting these places. As discussed earlier, when means of transport were
affordable the other motives behind travelling could emerge.
The roots of today’s tourism industry are found in many religious traditions,
such as making visit to Mecca for Muslims. The French Guidebook “The Travels of
Sir John Mandeville (1975) provided travelers with information about Holy Land,
including itineries. This early guide book was translated into many languages for
international tourists. In 15th century the Venetian government assigned two galleys to
carry pilgrims across the Mediterranean to Palestine.
Saint Ramdas a famous saint from Maharashtra has travelled all over India in
the 15th century and established Maruti temples from Kashmir to Kanyakumari. It was
an adventurous journey considering that there were no transport facilities. But he
travelled on his feet, a maiden journey to understand the social and cultural condition
of people all over the country. He understood that religion can bring people together
and he choose “Maruti” god of strength and power to relate people of different
religions. Even today, these temples stand as a tall mark of our unity in diversity.
Shrines such as Compostela in Spain and healing wells throughout Europe
attracted growing numbers of tourists and spa treatment – with classical origins
traceable back to the Romans (present – day Budapest’s baths are heir to the hot
springs of the spa settlement – that they called Aquinium) – bridged the gap into the
post – Reformation world. Although in these places the older Catholic tradition of
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healing continued, notably at Lourdes, by the 1860’s cures were scientific rather than
miraculous and under the direction of physicians rather than priests. Treatments took
time, which meant that spa resorts had to provide accommodation and entertainment
for invalids and their companions. For example at Bath, promenades, reading rooms
and theatres were added to the pools. The business of health was to remain an
important component in western countries tourism. Resorts such as Vichy in France,
Baden-Baden in Germany and Buxton in Britain catered for invalids and
convalescents, and often specialized in the treatment of particular conditions.
In India people used to travel to the places where well known “Vaidyas” could
cure certain fatal diseases. In 16th century “Ganga vaidya” from Mahad (Raigad
District) could cure T.B and Nava jwar by his medicines and people from far off
places would come to him. But an elaborate accommodation and entertainment
system like Europe was not established. Spas and health resorts concepts were never
on the scene. Till 17th century the scenario did not change much. In 18th century with
the spread of British rule and development in roads, transport and communication
system people could think of travelling to far off places and the time and the risk in
travelling were reduced considerably.
Political scenario in India also encouraged people to travel. Foundation of
congress party and its conferences held at different venues in India every year made
people travel to those destinations. In his speech describing his travel through
Southern India 1898, Shri Lokmanya Tilak mentioned that such travel broadens the
minds of the travelers and people should try and make an effort to mingle with other
people.
By late 18th century, the social taboo attached to overseas travel had been
reduced considerably. People had travelled to England and Europe and saw the
development and progress achieved by western countries. Though their travel was
mostly for education or political reasons, it certainly brought awareness of the world
outside. Still for the foreigners travelling to India, it was a mysterious land of tigers,
elephants and magic which would fascinate them. Even upto the Indian Independence
travel for leisure was considered as a luxury by domestic tourists in India. Basic
infrastructure like roads, accommodation, transport and eateries were not developed.

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Emergence of Tourism as an Industry in India:
Leisure travel was associated with the Industrial Revolution in the United
Kingdom. It gave an opportunity to new middle class emerging due to industrial
revolution to travel for leisure. The first official travel company ‘Cox and Kings’ was
established in the year 1758. Tourism was identified as a revenue generating sector in
western countries.
In India the scenario was totally different. Since her independence in 1947,
Indian policy makers had traditionally neglected tourism industry as it was considered
to be a luxury segment benefiting only few. As then, the Indian economy depended a
lot on agriculture, the government policies had always aimed to develop agriculture
and other allied areas. Tourism was always viewed as an industry serving the elite
instead of being accepted as a means to provide employment with good “multiplier
effect”. In 1955, the first Planning Commission of India had placed tourism
industry 269th in its priority list. As a result in 1950’s the number of International
tourists visiting India was just around 15000. Tourism was considered as an easy way
to correct foreign exchange shortage. Consequently hotel rooms, food and beverage,
handicrafts and many other services in most of the tourist destinations in India had
traditionally been overpriced.
Although in 2000, Global tourism industry represented one of the largest
industries in the world with revenue of $595 billion and the number of tourist arrivals
globally as high as 698 million; India’s share in global tourism remained low.

Global V/s Indian Tourism for the Year 2000

Table No 3.1
Percentage
World India
(Share of India)
International Arrivals 698 Millions 2.64 Millions 0.38%
Tourism Receipts $ 595 Millions $ 3.2 Millions 0.69%
Domestic Tourism 6980 Millions 210 Millions 4.6%
Worldwide
Reference : “Tenth Five Year Plan (2002 -07) Government of India”,
http;// planningcommission.nic.in

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 The Indian Tourism and Travel economy contributed 5.3% to its GDP and
India’s global ranking in this aspect was 140. In comparison, tourism sector’s
contribution to the GDP of New Zealand, Malaysia and Singapore was 8.9%, 7% and
10% respectively. It was estimated that if India could raise the contribution of her
tourism and travel economy to 10% of its GDP, it could create 12 million more jobs.

Contribution of Tourism and Travel to Economy and Industry in the Year 2000
Table 3.2
World
India World
Average
(%) Rank
(%)
Contribution of Travel and Tourism 10.7 5.3 140
economy to GDP
Contribution of Travel and Tourism 4.2 2.5 124
industry to GDP
Contribution of Travel and Tourism 8 5.6 140
economy to employment
Contribution of Travel and Tourism 3.1 2.9 111
industry to employment
*Contribution to travel and tourism industry refers to only direct impact of the
tourism industry.
Reference : “Tenth Five-Year Plan (2002-07), Government of India,”
http;// planningcommission.nic.in.
It was also estimated that an average investment of Rs. 10 lakh in tourism
would create 89 jobs in the tourism industry alone. This investment in tourism would
also indirectly create 12.6 jobs in the manufacturing sector and 44.7 jobs in
agricultural sector. The same amount of investment in agriculture and manufacturing
sector could create only 45 and 13 jobs respectively.
With the poor backdrop of Indian Tourism development infrastructure, other
South-East -Asian countries were busy developing their infrastructure for world Class
and high-end tourism experiences. Singapore, for example, concentrated on building a
state-of-art airport. Many international tourists were prepared to pay higher for trip to
Singapore because of her top class infrastructure.

27
 India was still struggling with deplorable road and airport facilities, poor rail
infrastructure, inadequate aviation seating capacity and insufficient hotel
accommodation. India also lagged behind in her brand establishment and marketing
strategies. In 2000, while the “Amazing Thailand” campaign fetched Thailand 10
million tourists, through the “Malaysia Truly Asia” Malaysia attracted 8.5 million,
and the “Live it up Singapore” earned 7 million tourists. Meanwhile India’s arrivals
were stagnant at 2.6 million. Despite being a country filled with varieties of
experiences, India failed to showcase her diversity. After being left behind in the
destination branding for long, the Government of India in 2002 launched her global
“Incredible India” campaign.
Though Indian Tourism ministry was responsible for tourism in India, it had
administrative limitations. Its role was mainly related to marketing its destinations and
guiding the tourism industry while other ministries decided upon core issues which
affected the tourism industry. The Ministry of Civil Aviation handled aviation policy
and airport management, Ministry of Finance allocated the budgetary allocation to the
Tourism Industry and the taxation on the tourism sector, Indian Visa was directly
under control of Ministry of Home Affairs. The lack of coherence between these
ministries reduced the focus of policies and also complicated the web of bureaucracy,
which adversely affected the progress of the tourism industry.
After decades of political indifference, the Indian government started focusing
on the tourism industry towards the end of 2002. The Tenth Five Year Plan
acknowledged the potential of the Indian Tourism industry as a huge employment
generator and foreign exchange earner for the nation and proposed definite initiatives
to give a boost to the tourism industry.
Focus on Tourism in the “Tenth Five Year Plan” (2002-2007)
Table No 3.3
National Tourism Policy was formulated in the year 2002. Broadly the policy
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 boost to rural tourism.
 Focus on domestic tourism as a major driver of tourism growth.
 Position India as a global brand to take advantage of increasing global travel

28
 trade and the vast untapped potential of India as a destination.
 Acknowledge the critical role of private sector with government working as a
pro-active facilitator and catalyst.
 Create and develop integrated tourism circuits based on India’s unique
civilization, heritage and culture in the partnership with states, private sector
and other agencies.
 Ensure that “the tourist to India gets physically invigorated, mentally
rejuvenated, culturally enriched, spiritually elevated and feels India from
within”.

Focus on Tourism in the “Tenth Five Year Plan”

Table No 3.4
Focus on Tourism in the “Tenth Five Year Plan” was
 To develop a national consensus on the role of tourism in the development
agenda of the nation through National Development Council.
 To enhance the effectiveness of public sector investment through the cross-
sectoral convergence and prioritization of tourism related infrastructure
programmes in other sector like special tourism trains, rural roads etc.
 To mobilize the support of primary players viz: the State Governments in
tourism development.
 To involve the rural sector in tourism and start mobile training units for
service providers in rural areas identified for development of tourism.
 To augment training facilities in hotel management and food craft and build
the capacity of service providers with cutting edge.
 To create world class circuits and destinations.
Reference : “Tenth Five-Year Plan (2002-07), Government of India,”
http;// planningcommission.nic.in.

The Union Budget granted the tourism industry much needed “Infrastructure –
Status.”
As a result of boosting rural development from tourism point of view and
encouragement of tourism infrastructure development in rural areas by state
governments, Agri- Tourism Development Corporation was established on 16th May

29
2004 in Maharashtra. “Its aim is to promote Agro Tourism to help rural youth to earn
good respectable living in the village and on the farm itself.
First ever International Agri-Tourism day was celebrated on 16th May, 2008 in
Pune.
The ‘Tenth Five Year Plan’ opened up following opportunities for agro-
tourism in India.

Agro Tourism Opportunities in India:

1. Indian tourism industry is growing @10.1%. The World Tourism organization
has estimated that the tourism industry is growing at the rate of 4% a year and
that by the year 2010 there will be more than one billion tourists visit various
parts of the world. But Indian tourism industry is growing at the rate of 10%
which is 2½ times more than the growth rate at global level. By introducing
Agro-tourism concept, not only present growth rate is sustained but also this
value addition contributes to further growth.
2. India has entered amongst the top 10 tourist destinations list (Conde Nast
Travellor “A leading European Travel Magazine). India is already established
as one of the top tourist destination in the world. Value addition by
introducing novel products like Agro-tourism would only strengthen the
competitiveness of Indian tourism industry in global market.
3. India has diverse culture and geography which provide ample and unlimited
scope for the growth of this business. India has diverse agro-climatic
conditions, diverse crops, people, culture, deserts, mountains, coastal systems
and islands which provide scope for promotion of all seasons, multi-location
tourism products.
4. Increasing number of tourists preferring non-urban tourist spots. Hence, there
is scope for promotion of non-urban tourist spots in interior villages by
establishing Agro-tourism centers. But, adequate facilities and publicity are
must to promote such centers.
5. Government initiatives and policies in X five year plan allocation has been
increased from 525 crores to 2900 crores. Increased financial allocation
reaffirms the government commitment. The increased financial allocation by
six times could be used for capacity building of service providers, creation of
infrastructure and publicity.
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 The ‘Tenth Five Year Plan’ also laid emphasis on promoting much neglected
“Domestic Tourists” segment in India. Today the states also want to tap the potential
of domestic tourism. According to estimates, domestic tourism is expected to generate
revenue worth Rs. 600 billion. But this segment is not yet being fully channelized and
explored. According to International standards the ratio between domestic and
international tourism is approximately 10:1, where as in India it is only approximately
equal to 3:1. So in domestic market, there are yet various guest segments need to be
tapped.
Government of India’s “Incredible India” campaign has definitely given a
positive image to the global traveler. Today India has become one of the hot
destinations for foreign tourists. The campaign laid stress of the diversity of India and
its potential to offer various kinds of tourism: adventure, medical, spiritual, beach and
religious to name a few. But the question is, can India sell herself to Indians?
Though India is yet to sell India to Indians, there is a changing trend which has
been observed. With the changing socio-economic profiles of Indian consumers and
emergence of nuclear families, domestic leisure tourism is increasing. Indians are
looking forward to explore the diverse landscape and beauty across various parts of
India. Fortunately every Indian state has unique characteristics in terms of
architecture, art and craft, food, festivals, monuments, landscape and weather. This
rich history and heritage provides an opportunity for the domestic travelers to explore
in their own country. Growing tourism infrastructure like emergence of world-class
hospitality facilities is also expected to facilitate the growing domestic tourism.
Awareness is critical in tapping this enormous domestic potential.

Various states have come up with attractive positioning statements:

States and their Positioning Statements
Table No 3.5
Sr. No. State Positioning
1. Kerala God’s Own Country
2. Karnataka Theatre Of Inspiration
3. Andhra Pradesh Kohinoor Of India
4. Tamil Nadu Enchanting Tamil Nadu
5. Pondicherry Peaceful Pondicherry – Give Time A Break

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 Sr. No. State Positioning
6. Goa Go Goa 365 Days On A Holiday
7. Gujrat Vibrant Gujrat
8. Uttar Pradesh Many Faiths, Many Journeys
9. Uttaranchal Experience The Devine
10. Jammu & Kashmir Welcome To Paradise
11. Punjab Passionate Punjab
12. Rajasthan Hospitality Amidst Royal Ambience
13. Maharashtra Maharashtra Unlimited
14. Madhya Pradesh Magical, Mystical Madhya Pradesh –
The Very Heart Of India
15. Orissa The Soul Of India
16. West Bengal The Land Of Exotic Charms
17. North – East Unexplored Paradise
As a result of tourism promotion at domestic levels by different states, the rise
in domestic tourist arrivals was seen as in case of Maharashtra.

Domestic Tourist Arrivals in Maharashtra (2004 to 2006)

Table No. 3.6
Year Domestic Tourist Arrivals
2006 16880348
2005 14329667
2004 13392212
(Reference: state/U.T. Tourism Dept.)

Tourism Statistics State wise:

Share of Top 10 States/ UTs of India of Domestic Tourist Visits in 2007.
Table No. 3.7
Rank State/UT Number Percentage Share (%)
1. Andhra Pradesh 127933333 24.3
2. Uttar Pradesh 116244008 22.1
3. Tamil Nadu 71034651 13.5
4. Karnataka 37825953 7.2

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 Rank State/UT Number Percentage Share (%)
5. Rajasthan 25920529 4.9
6. Uttarakhand 19803280 3.8
7. Maharashtra 19243597 3.7
8. West Bengal 18580669 3.5
9. Madhya Pradesh 13894500 2.6
10. Gujarati 13477316 2.6
Total of top 10 463957836 88.2
Others 62610962 11.8
(Reference: http://scstsenvis.nic.in/tourinflow.html)
Though Maharashtra can be seen in the top 10 in the lists for Domestic
Tourism, the share is negligible and further growth in Domestic tourism is possible
with new tourism avenues opening.
Tourism policy of Maharashtra: 2006 reflects the necessary measures to
develop tourism at domestic level.
Reference: - TOURISM POLICY OF MAHARASHTRA- 2006.

GOVERNMENT OF MAHARASHTRA
Department of Tourism and Cultural Affairs
Resolution No. MTC-2005/2/CR-172/Tourism
Mantralaya, Mumbai 400 032, Dt. December, 2006.
Tourism is now well recognized as a major growth engine. Several countries
have transformed their economies by developing their tourism potential. Tourism has
great capacity to create large-scale employment – from the most specialized to the
unskilled.
The Indian economy is undergoing a major transformation. With an annual
growth of eight percent, India has become the second most favoured destination for
foreign direct investment. As an economic activity in the service sector, tourism also
has enormous potential for contributing to economic growth.
Tourism has the potential to change the economic face of a region. The
benefits of planned tourism development are of manifold. Promotion of tourism
would bring many direct and indirect benefits to the people. Some of the direct

33
benefits accruing to the local community of a region as a result of tourism
development are:
• Employment opportunities in tourism and hospitality sector
• Development of private enterprise
• Improved standard of living
• Social upliftment and improved quality of life
• Better education and training
• Sustainable environmental practices
• . Foreign exchange earning
Some of the indirect benefits accruing to the local community of a region as a
result of tourism development are:
• Infrastructure development – power, water, sanitation, hospitals, roads, etc.
• Market for local produce
• Employment in infrastructure sector
• Economic upliftment due to income multiplier effect

Tourism Potential in Maharashtra:

Maharashtra is the third largest State of India, both in area and population. It is
located on the West Coast of India with a 720 km long coastline along the lush green
Konkan region. Nestled in the Western Ghats and the Sahayadri mountain ranges are
several hill stations and water reservoirs with semi-evergreen and deciduous forests.
The Vidharbha region of Maharashtra, with its dense forests, is home to several wild
life sanctuaries and nature parks. Thus all the three regions of Maharashtra offer
considerable tourism potential.
Maharashtra abounds in numerous tourist attractions ranging from ancient
cave temples, unspoiled beaches, ancient forts and monuments, forests and wildlife,
unique hill stations, pilgrimage centers, and a rich tradition of festivals, art and
culture. Hence our campaign slogan for Maharashtra Tourism – “MAHARASHTRA
UNLIMITED!”

Tourism Trends:
India: The growth of tourism in India has been rapid in the last five years despite a
late start. Tourist arrivals have gone up by more than 25% and foreign exchange

34
earnings has jumped by 40%. The World Travel & Tourism Council has rated India as
one of the five fastest growing tourism economies in the world. The survey conducted
by “Lonely Planet” has also supported this view. The rich heritage, trade, culture,
history and growing economy have become major attractions for the tourists. The
survey conducted by “Conde Nast Traveler” came out with the finding that India is
preferred to many other tourist destinations like France, Singapore and Switzerland.
Maharashtra: The domestic tourists visiting Maharashtra doubled during the last
decade, from 41.29 lakhs in 1991 to 84.8 lakhs in 2001, whereas the number of
foreign tourists visiting Mumbai increased from 7 million in 1991 to 8 million in
2001.
The rapid growth in domestic tourism can be attributed to the ever increasing
middle class, increase in disposable income, improved facilities, stress on urban
families, improved connectivity to tourist destinations, etc. Not all foreign tourists
visiting Mumbai visit Maharashtra. Some of these foreign tourists come to Mumbai as
an entry point to India and proceed to various other states. There is need and scope to
attract these visitors into Maharashtra to the various tourist destinations in our State.

Action Plan for the Next Five Years in Maharashtra

The following action plan will be implemented in the next five years to
achieve the above objectives and the long-term vision for 2025.
1. Development of infrastructure at tourist destinations: Various tourism
facilities such as accommodation facilities, eateries, toilets, information centers,
etc. would be developed at all destinations. For this, the incentive policy proposed
will encourage private partnership in tourism related activities and infrastructure
development. Access to weekend destinations (hill-stations, beaches, etc.) near
major cities in Maharashtra would be given preference.
2. Accessibility to tourism destinations and wayside amenities: Approach roads
would be identified to various tourist destinations in Maharashtra. The roads
would be assessed for suitability (carrying capacity, quality, etc.) and would be
considered for further development. Wayside amenities would also be planned
while developing roads.
In addition, rail linkages and air connectivity to important tourism destination
must be strengthened by co-ordination with the concerned departments and
Ministries.
35
3. Development Control Regulation at destinations: ‘Development Control
Regulations’ would be prepared to work as guidelines for development at and
around important tourism destinations/ areas.
4. Strengthening of Bed and Breakfast scheme: The Bed and Breakfast scheme
creates facilities for travelers at remote destinations (where hotel accommodation
is not available) and provides income to the local people. With the increasing
interest in the rural way of life and the advent of rural tourism, the Bed and
Breakfast Scheme offers excellent potential for the mutual benefit of tourists and
the local population. This Scheme will be strengthened to form a part of rural
micro-financing projects.
5. Recreational facilities at destinations: Entertainment facilities such as children's
sports, horse rides, light and sound shows (based on feasibility) will be arranged at
selected destinations. Providing recreation and entertainment at tourism
destinations can convert day tourists into staying tourists.
6. Public-Private-Partnership: Specific destinations and monuments would be
identified where public-private partnership is possible. Conservation plans would
be prepared for the identified monuments. The concept of Public Private
Partnership would also be applied to the development of resorts at select
destinations and for the organization of festivals.
7. World Heritage Sites: Conservation and tourism development of three heritage
sites (Ajanta, Ellora and Elephanta) are covered under external funding. Special
attention will be given to the newly declared site - Chatrapati Shivaji Terminus. A
detailed conservation and tourism plan will be prepared to showcase it as one of
Mumbai’s tourist attractions.
Other monuments that are suitable to be promoted as world heritage sites would
be identified in coordination with the concerned agencies such as ASI, State
Directorate of Archaeology, etc.
8. Cultural Tourism: Distinctive aspects of Maharashtra’s rich culture and tradition
would be identified and promoted as an integral part of Maharashtra's tourism.
Identify and promote the State’s folk arts and organize folk dance and music
programmes at tourist destinations
- State government would identify the artistes in the state and the details (name,
art/dance type, contact details, etc.) of these artistes would be recorded in the
tourism portal.
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 - Register the artist or his/her group.
- Arrange cultural programmes at MTDC resorts/ destinations involving local
art forms.
- Prepare and organise a calendar of festivals specially focused to attract
tourists.
- Local cuisine would be identified and promoted at MTDC resorts. Food
festivals showcasing various types of Maharashtrian cuisine would be
organised.
- Identify local melas/festivals that have been traditionally held for many years
to showcase these traditions.
9. Crafts: Since Maharashtra has a number of exclusive handicrafts; the government
would undertake the following activities to promote the handicrafts industry in the
state:
- Appoint a design agency to develop products based on local crafts.
- Based on their recommendation, training will be arranged for artisans to
develop various products.
- Develop and promote the State’s handicrafts industry through e-commerce.
- Handicraft artisans of various crafts would be identified. Quality of the
products would be standardized and products would be marketed through e-
commerce.
- On-line /e-commerce application would be developed and backward linkages
would be established with the artisans.
- Simultaneously, marketing support in terms of providing common sale outlets
like bazaars and haats would be provided for handicraft products.
10. Pilgrimage Circuits: Maharashtra is known for its pilgrimage centers like the
Jyotirlingas, the Ashta Vinayaks and other famous temples at Shirdi, Pandharpur,
Kolhapur, etc. Pilgrim circuits can be developed, connecting these pilgrimages.
Maintaining sanctity and cleanliness at the place of pilgrimage is of utmost
importance to provide an enhanced experience and attract more tourists. The
responsibility for development of pilgrimage centers has been entrusted to the
Urban Development Department or Rural Development Department vide G.R. No.
MIS 7896/1830/CR-78/96/UD-18 dated 17th May, 1996. Maharashtra tourism
would assist the Urban Development Department and Rural Development
Department for preparing a development model which can be applied to all
37
 pilgrimage sites. However, the nodal department will be the Urban Development
Department / Rural Development Department.
11. Rural Tourism: Rural Tourism, Agricultural Tourism & Wine Tourism will
be promoted considering state potential & varieties existing in our state.
12. Fort /Fort Circuits: Maharashtra has a large number of forts which are valued
not only for their historical significance but also for their architectural excellence.
The Government of Maharashtra in coordination with ASI and State Archeology,
develop and conserve these forts for realizing their tourism potential.
13. Application of Information Technology for tourism: Effective utilisation of the
website/portal for tourism promotion of Maharashtra in India and abroad would be
ensured. Online advertising material would be prepared by MTDC and posted on
the portal. Online bookings for the Deccan Odyssey as well as for all MTDC
resorts will be in operation.
While promoting and developing various forms of tourism, the government has
also recognized the need of sustainable tourism development. In accordance with
such need “Eco-Tourism Policy” was developed in 2008.
The following GR stresses the need of developing sustainable forms of tourism:

GR No. DWPLP 1002/ caseno.53/F.1/

Dated: 28th Feb, 2008
“Stating that participation of rural community is important in development of
cultural and rural tourism, it is essential to develop sustainable tourism in Rural
areas.”
It is also important to note the change in the tourist attitude towards tourism
which has influence on development of tourism.
Old and New Tourists Compared
Table No. 3.8
Old Tourism New Tourism
Search for the Sun Experience something different
Follow masses Want to be in charge
Here today, gone tomorrow See and enjoy but not destroy
Just to show that you had been having Just for the fun of it
Superiority Understanding

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 Old Tourism New Tourism
Like attractions Like sports
Precautions Adventurous
Prefer to eat in Hotels Try local fare
Homogenous Hybrid
Reference: ANNEXURE ‘C’ Tourism Policy of Maharashtra 2005.

Areas Identified as Special Tourism Areas by the State Government

Table No. 3.9
1. Ratnagiri District Coastal Talukas of Rajapur, Ratnagiri, Guhagar,
Dapoli, Mandangarh.
2. Sindhudurga District Coastal Talukas of Vengurla, Malwan, Deogad.
3. Raigad District Coastal Taluka of Alibag, Murud, Shrivardhan, Uran.
4. Thane District Coastal Taluka of Dahanu, Palghar, Bassein, Thane.
5. Aurangabad District 1. Aurangabad Taluka.
2. Khultabad Taluka.
3. Soyegaon Taluka
6. Amravati District Chikhaldara Taluka
7. Nagpur District Ramtek Taluka
8. Kolhapur District Panhala Taluka
9. Pune District Tourism Development Zones identified around the
lakes selected for lake District Project in the Talukas
of Mawal, Mulshi, Bhor, Velhe, Khed and Haveli.
Reference: Tourism Policy of Maharashtra 2006

Action Plan Related to Product Development and Promotion India’s “National

Tourism Policy.”
• Diversifying the tourism product to make India unique multi-attraction
tourism destination which can meet the need of all forms of tourism;
particularly rural tourism, eco tourism, adventure tourism etc.
• Encouraging Panchayat Raj Institutions, local bodies, religious trusts, co-
operatives and other community level institutions to take up tourism

39
 promotion activities through the general rural development and employment
generation programmes.

Integrated Development of Tourist Destinations:

International tourist traffic to the country is largely confined to certain selected
centres and destinations at present. There is also a fair level of seasonality in the
international tourist arrivals. As a result there is a good deal of congestion and
scarcity of facilities in some of these centers during peak seasons. The tourist traffic
to some of the centers has even exceeded the carrying capacity with the attendant
problems of environmental degradation. It has, therefore, become necessary to
go beyond the beaten tracks and to facilitate direct visit of tourists to new
destinations. However, the choice of such new destinations for development will
have to be based on their intrinsic attractions, potential for development and the
carrying capacity as well as availability of resources. Such development will be
guided by well conceived master plans, and executed by specific Tourism
Development Authorities. Adequate backward and forward linkages will also be
established to ensure adequate flow of benefits to the local community.
• Creation of Tourist Economic Zones
• Constitution of Tourism Development Authorities

Diversification of Tourism Products:

The main strength of Indian Tourism at present is its cultural attractions,
particularly, the large number of monuments and archaeological remains scattered
throughout the country, its art and artifacts and colourful fairs and festivals. The
country is also endowed with a number of other tourist attractions and options
including beach tourism; centers of pilgrimage for spiritual tourism, heritage trains
and hotels for heritage tourism etc. The tradition of Indian system of medicine and its
curative and preventive effect are well known the world over. Yoga, Ayurveda and
other forms of natural health resorts have thus become unique tourist attractions of the
country. There are also facilities for conference and convention tourism, cruise
tourism and shopping tours. The development of natural health resorts of Yoga,
Ayurveda etc. along with rural tourism, spiritual tourism and eco tourism will be
given adequate attention.

40
 As mentioned in India’s National Tourism Policy “tourist traffic to few chosen
destinations” has degraded those destinations. So alternative forms of tourism which
could diversify tourist traffic to other unexplored destinations. The concept of SIT
(Special Interest Tourism) has emerged out of this need.
Awareness of the negative impacts of mass tourism emerged in the 1970’s
when mass tourism and tourism in general started being criticized, although one must
not forget that it enabled millions of tourists to discover new horizons and that it
strongly contributed to the economic development of many destinations. The initial
socio – cultural impacts of mass tourism were not easy to evaluate because tourist
flows were not initially directed to developing countries.
The availability of less expensive package holidays to more exotic
destinations contributed to the development of international mass tourism to
developing countries (especially in the pleasure periphery), where some
uncontrolled forms of tourism proved detrimental to both the environment and the
local culture. As a reaction against mass tourism, new approaches to tourism emerged:
• Emergence of integrated and controlled tourism planning and tourism
management by tourism authorities (at local, regional or national level).
• Emergence of new products offering an alternative tourism that is more
respectful of the destinations and local residents.
• Emergence of a new understanding of what tourism should do: contribute to
sustainable development on a global scale.

Overview of Development of Tourism in India:

Tourism is a multi –sectoral activity characterized by multiple services
provided by a range of suppliers. It is the largest service industry in the country. Its
importance lies in being an instrument for economic development and employment
generation particularly in remote and backward areas. It is contributing towards
overall socio-economic improvement and accelerated growth in the economy. The
economic benefits flow into the economy through growth of tourism in the shape of
increased state and national revenues, business income, employment, wages and
salary income.
Tourism is an economic sector in India that has a potential to grow at a high
rate and can ensure consequential development of the infrastructure of the

41
destinations. It has the potential to stimulate other economic sectors through its
backward and forward linkages and cross sectoral synergies with sectors like
agriculture, handicrafts, transport etc. The particular significance of tourism industry
in India is its contribution to national integration and preservation of natural as well as
cultural lives of people.
Over the past few years, the tourism industry had to face with a series of
unprecedented challenges. International events, such as terrorism and SARS, Swine
Flu and economic turbulence have led to significant changes in tourism demand. At
the same time, international events such as increase in information and booking
facilities made available over the internet, consumers desire to travel more frequently,
stronger branding of tourism destinations have acted as a catalyst, accelerating
fundamental changes in market behavior and travel patterns that have been slowly
emerging over the past decade. More and more governments have started to realize
that they cannot leave the growth of tourism industry to chance. This emerging global
consciousness represents a great opportunity for this industry.

Contribution of Travel and Tourism Industry in GDP and Employment in 2007.

Table No. 3.10
India World World Average %
(%) Average (%) estimated in 2017
Contribution of Travel and
5.4 10.4 10.7
Tourism economy to GDP
Contribution of Travel and
2.0 3.6 3.4
Tourism industry to GDP
Contribution of Travel and
5.5 8.3 8.3
Tourism economy to employment
Contribution of Travel and
2.3 2.7 2.8
Tourism industry to employment
Reference : WTTC (World Travel and Tourism Council)

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 Tourist growth in India has undergone a remarkable change during the Tenth Plan:
Tourists Arrivals in India (in millions) 2002 to 2006
Table No. 3.11
Share Of India
World Wise Foreign Tourist Domestic
Year In World
Tourist Arrivals Arrivals In India Tourist Visits
Arrivals (%)
2006 842.0 4.45 461.2 0.52
2005 802.0 3.92 390.5 0.49
2004 761.0 3.46 366.2 0.46
2003 693.2 2.73 309.0 0.39
2002 706.4 2.38 269.6 0.34
Reference: Ministry of Tourism (MOT)

Tourism Receipts (in Billions US $) 2002 to 2006

Table No. 3.12
Share Of India In World
Year World Earnings Earnings To India
Earnings
2006 735.0 6.6 0.89
2005 678.0 5.7 0.85
2004 633.0 4.8 0.75
2003 553.1 3.5 0.66
2002 487.0 2.9 0.60
Reference: Ministry of Tourism (MOT)

The above two tables show the growth in tourist arrivals and earnings
generated from Tourism Industry during the Tenth Five Year Plan.
The foreign tourist arrivals have increased by about 87% from a level of 2.38
million in 2002 to 4.45 million in 2006. India’s share in world tourist arrivals has
been increased from 0.34% to 0.52% during the same period.
The foreign exchange earnings for India have gone up by about 147% during
the same period (US $ 2923 million to US $ 6569 million), 0.9% of the international
tourist receipts for the same period. The average per tourist earnings in India was
about US $ 1476 against the world average of US $ 872 during 2006.

43
 Domestic tourist visits have also gone up rapidly during the Tenth Five Year
Plan from 269.6 million in 2002 to 461.2 in 2006. According to the Tourism Satellite
Account for India prepared by the MOT, the contribution of tourism sector, including
both Direct and Indirect GDP and Employment was 5.83% and 8.27% respectively
during 2002-03.
It can be said that the tourism resources in the country have the potential to
generate significantly higher levels of demand from the domestic and international
markets, which if exploited intelligently in a sustainable manner can be a powerful
source for the growth of the economy.
In the Tenth Five Year Plan period, an emphasis was laid on positioning and
maintaining tourism development as a national priority activity by development as a
national priority activity by enhancing and maintaining the competitiveness of India
as a tourist destination and improving existing tourism products and expanding these
to meet new market requirements by creating world class infrastructure, developing
sustainable tourism and giving special thrust to rural and small segment
tourism. The Indian Ministry of Tourism has identified 31 villages across the country
to be developed as tourism hubs. The states in which these villages have been
identified include Himachal Pradesh, Gujrat, Maharashtra, Bihar, Karnataka, Madhya
Pradesh, Andhra Pradesh, Kerala, Tamil Nadu, Orissa, Assam, Sikkim, Rajasthan and
West Bengal.

Objectives and Strategies for the Tourism Industry in Eleventh Five Year Plan:
The Eleventh Five Year Plan has recommended a target of 10 million
international tourist arrivals by 2010, according to MOT this target is achieved by
2010. The new target for 2011 will be 10.25 million. This target is proposed to be
achieved through diversification of principal source markets improving infrastructural
facilities like roads, airports and civil amenities at the tourist destinations, increasing
the air seat capacity and vigorous publicity. For domestic tourism, the target to be
achieved in 2010 and 2011 will be 725 million and 812 million respectively assuming
an annual growth rate of about 12% over the level of 461 million domestic tourist
visits in 2006.
Domestic tourism would be complementing the international travel. This
would help in optimizing the utilization of infrastructural facilities and also make the
future investment viable.
44
To achieve the above goals, suitable measures would be taken for:
• Positioning and maintaining tourism development as a national priority
activity.
• Enhancing and maintaining the competitiveness of India as a tourist
destination.
• Improving India’s existing tourism product further and expanding these to
meet new market requirements.
• Creation of world class infrastructure.
• Developing strategies for sustainable and effective marketing plans and
programs.

State-wise and Year-wise Investment Intentions

(Rs in Crores)
Table No. 3.13
S. 2007-08
Name of the State 2003-04 2004-05 2005-06 2006-07
No. (April-May)
1. Andhra Pradesh 16527 16596 19001 48660 2577
2. Assam 163 430 809 2044 169
3. Bihar 27 314 3913 4850 308
4. Chhattisgarh 16155 47602 39914 118737 17559
5. Dadra & Nagar 4137 834 2374 2794 431
Haveli
6. Gujarat 32341 29695 82901 72283 7946
7. Haryana 8372 2737 5578 16095 769
8. Himachal Pradesh 1126 3384 1774 1906 254
9. Jammu & Kashmir 774 2719 2058 2306 400
10. Jharkhand 1861 10539 54089 35257 17969
11. Karnataka 14074 10969 15353 72250 7059
12. Madhya Pradesh 1616 8538 18782 12537 1963
13. Maharashtra 8878 13256 24694 62191 6907
14. Orissa 17718 45565 38255 96869 5997
15. Punjab 1844 4190 7127 10128 544
16. Rajasthan 1096 2162 5077 10040 1768

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 S. 2007-08
Name of the State 2003-04 2004-05 2005-06 2006-07
No. (April-May)
17. Tamil Nadu 2898 54481 11841 20377 5373
18. Uttar Pradesh 2179 21633 31710 33745 1823
19. Uttarakhand 1334 2441 5706 14887 968
20. West Bengal 7637 14078 12047 51836 9410
21. Others 17628 1931 3378 6574 1857
Total 158385 294094 386381 696366 92051
Note: Investment in terms of IEMs filed, Letters of Intent (LOIs) issued, and DILs.
Reference: SIA Statistics, June 2007.

Agro Tourism Development:

Thus it can be said that the development of agro tourism is a consequence of
following factors:-
• Overall increase in travel and tourism industry is as a result of globalization,
economic development, more disposable time and income available with
customers.
• Realization by government the importance of tourism as an industry.
• Incorporating the tourism industry in national developments plans and
policies.
• Deciding objectives and strategies for sustainable developments of tourism.
• Allocating funds to develop rural areas from tourism point of view.
• Promotion and development of new forms of tourism like adventure tourism,
eco-tourism and agro-tourism identifying the market demands.
At local levels the farmers are more conscious about their choice to enter into
tourism activity. They have realized the potential of agro tourism and would like to
extend the farm product in a controlled environment. The ill-effects of mass tourism
at many popular destinations have been evident and some has been the factor behind
tourists notice to choose alternative forms of tourism. The emergence of
SIT (Special Interest Tourism) targeting niche market is a recent trend and
agro tourism is one of the SIT products.

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