Inbound Tourism

44 Pages·2012·7.02 MB·English

Reigniting Destination Appeal
Acknowledgments:
The report has been prepared by Dr. Suparna Karmakar under
the overall supervision of Rahul Chakravarty, Additional Director,
FICCI. FICCI acknowledges the effort put in by Dr. Karmakar and
the care and caution taken in compiling this report.
The information contained herein has been obtained from
sources believed to be reliable. Both FICCI and the consultant
disclaim all warranties as to the accuracy, completeness or
adequacy of such information, and shall have no liability for
errors, omissions or inadequacies in the information contained
herein or for interpretations thereof. Neither FICCI nor the
consultant accepts any liability for any direct, consequential or
perceived loss arising from the use of this report or its contents.
Acknowledgments:
The report has been prepared by Dr. Suparna Karmakar under
the overall supervision of Rahul Chakravarty, Additional Director,
FICCI. FICCI acknowledges the effort put in by Dr. Karmakar and
the care and caution taken in compiling this report.
The information contained herein has been obtained from
sources believed to be reliable. Both FICCI and the consultant
disclaim all warranties as to the accuracy, completeness or
adequacy of such information, and shall have no liability for
errors, omissions or inadequacies in the information contained
herein or for interpretations thereof. Neither FICCI nor the
consultant accepts any liability for any direct, consequential or
perceived loss arising from the use of this report or its contents.
Table of Contents
Executive Summary 2
I. Introduction 10
II. Inbound Tourism : Performance Indicators 12
and Policy Initiatives by GoI
III. Beyond Incredible India: Marketing and 20
Tourism Initiatives in Selected States
IV. Promoting India as a Tourism Hotspot: 34
Policy Way Forward
Table of Contents
Executive Summary 2
I. Introduction 10
II. Inbound Tourism : Performance Indicators 12
and Policy Initiatives by GoI
III. Beyond Incredible India: Marketing and 20
Tourism Initiatives in Selected States
IV. Promoting India as a Tourism Hotspot: 34
Policy Way Forward
Executive Summary
Executive Summary
Foreign exchange earnings (FEE) from tourism grew by 19.8 percent in rupee
terms in February 2013 as compared to February 2012, although the FTA
growth was much lower; this also indicates an impressive growth in the
Executive Summary
exchange earnings per tourist that was realised despite the ongoing
slowdown in developed country markets, an increase in the cost of travelling
The launch of Incredible India campaign in the last decade resulted in a and a fluctuating exchange rate. Foreign tourists tend to spend more in India
visible spurt in the flow of foreign tourists into India and earnings therefrom than almost any other country worldwide. These are positive signs for the
(see Charts for FTAs and FEE below), which grew at double digit rates until industry, and indicate significant potential going forward.
the onset of the financial crisis in 2008. The growth trend resumed after a
Chart: Foreign Exchange Earnings (FEE) from Tourism in India, 2002-2012
couple of years of slowdown after 2008, and notwithstanding the FTA
growth rate see-saw in recent times, foreign tourist inflows in India is
50
predicted to grow at an average annual rate of 8.8 percent in the coming
decade. A 2011 forecast of the World Travel and Tourism Council (WTTC) 40
predicted that FTAs will cross 11 million by 2021 (approximately one percent
of the global tourist population). This is being boosted by the steady rise in T- 30
VoAs in the country. During the month of February 2013 the number of Visa
FEE from Tourism in
on Arrival (T-VoA) tourists registered a growth of 54.6 percent as compared 20 India (inUS$ billion)
to the T-VoAs issued in the month of February 2012.
Percentage change
10 over previous year
Chart: Foreign Tourist Arrivals (FTAs) in India, 2002-2012
-5
30 2002 2003 2004 2005 2006 2007 2008 2009 2010* 2011*n-Jun)*
-10 Ja
2 (
25 01
2
20
Source: RBI and Ministry of Tourism, GOI; Note: * advance estimates
15
FTAs in India
(in million) Source country breakup and Foreign Tourist Preferences
10
Percentage change
over previous year In 2011, India's share in international tourist flows was 0.64 percent of world
5
travelers (India's share in the international tourism receipts was relatively
0
higher at 1.61 percent in 2011), and 2.9 percent of travelers from Asia-Pacific
20022003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (share in tourism receipts being 5.72 percent). All these shares have been
-5
steadily rising since 2002, and were not significantly affected by the 2008
-10 financial crisis. The Travel and Tourism Competitiveness Report of 2012 by the
World Economic Forum ranks India 12th in the Asia-Pacific Region and 68th
Source: Bureau of Immigration and Ministry of Tourism, GOI
globally; the report is very bullish on India's tourism growth outlook.
2 India as a Hotspot for Inbound Tourism India as a Hotspot for Inbound Tourism 3
Foreign exchange earnings (FEE) from tourism grew by 19.8 percent in rupee
terms in February 2013 as compared to February 2012, although the FTA
growth was much lower; this also indicates an impressive growth in the
Executive Summary
exchange earnings per tourist that was realised despite the ongoing
slowdown in developed country markets, an increase in the cost of travelling
The launch of Incredible India campaign in the last decade resulted in a and a fluctuating exchange rate. Foreign tourists tend to spend more in India
visible spurt in the flow of foreign tourists into India and earnings therefrom than almost any other country worldwide. These are positive signs for the
(see Charts for FTAs and FEE below), which grew at double digit rates until industry, and indicate significant potential going forward.
the onset of the financial crisis in 2008. The growth trend resumed after a
Chart: Foreign Exchange Earnings (FEE) from Tourism in India, 2002-2012
couple of years of slowdown after 2008, and notwithstanding the FTA
growth rate see-saw in recent times, foreign tourist inflows in India is
50
predicted to grow at an average annual rate of 8.8 percent in the coming
decade. A 2011 forecast of the World Travel and Tourism Council (WTTC) 40
predicted that FTAs will cross 11 million by 2021 (approximately one percent
of the global tourist population). This is being boosted by the steady rise in T- 30
VoAs in the country. During the month of February 2013 the number of Visa
FEE from Tourism in
on Arrival (T-VoA) tourists registered a growth of 54.6 percent as compared 20 India (inUS$ billion)
to the T-VoAs issued in the month of February 2012.
Percentage change
10 over previous year
Chart: Foreign Tourist Arrivals (FTAs) in India, 2002-2012
-5
30 2002 2003 2004 2005 2006 2007 2008 2009 2010* 2011*n-Jun)*
-10 Ja
2 (
25 01
2
20
Source: RBI and Ministry of Tourism, GOI; Note: * advance estimates
15
FTAs in India
(in million) Source country breakup and Foreign Tourist Preferences
10
Percentage change
over previous year In 2011, India's share in international tourist flows was 0.64 percent of world
5
travelers (India's share in the international tourism receipts was relatively
0
higher at 1.61 percent in 2011), and 2.9 percent of travelers from Asia-Pacific
20022003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (share in tourism receipts being 5.72 percent). All these shares have been
-5
steadily rising since 2002, and were not significantly affected by the 2008
-10 financial crisis. The Travel and Tourism Competitiveness Report of 2012 by the
World Economic Forum ranks India 12th in the Asia-Pacific Region and 68th
Source: Bureau of Immigration and Ministry of Tourism, GOI
globally; the report is very bullish on India's tourism growth outlook.
2 India as a Hotspot for Inbound Tourism India as a Hotspot for Inbound Tourism 3
The rising FTA flows is clearly a function of the stellar growth performance of which promoted India's culture and tourist attractions in a fresh and memorable
the Indian economy in the new century. An important outcome of the rising way projecting India as an attractive tourist destination by showcasing different
economic growth in India has been that MICE has emerged as one of the major aspects of Indian culture and history like yoga, spirituality, etc. The campaign,
tourism products, along with pilgrimage travel and health tourism, and is one of launched in 2002 to encourage visitors from around the world to experience
the reasons why India is considered to be one of the most promising markets in India helped create a colorful image of India in the minds of consumers, and has
tourism in the near future. These sectors show a lot of potential in the coming directly led to an increase in the interest among foreign tourists. This is reflected
years. in the spurt in global tourist inflows since 2002.
The breakup of source country for FTA origin for 2011 indicate that US led with a In 2008, the Ministry of Tourism launched a campaign targeted at the local
16 percent share in total FTA arrivals, followed by UK (12.57 percent), population to educate them regarding good behavior and etiquette when
Bangladesh (6.34 percent), Sri Lanka (4.85 percent), and Canada (4.05 percent). dealing with foreign tourists. Indian actor Aamir Khan was commissioned to
The top 10 source countries accounted for 61 percent of the total tourist flows endorse the campaign which was titled 'Atithi Devo Bhavah', which aimed at
in the year, according to data from Bureau of Immigration, GOI. creating awareness about the effects of tourism and sensitizing the local
population about preservation of India's heritage, culture, cleanliness and
In 2011, travel for leisure, recreation and holidays accounted for just over half of hospitality. The Ministry of Tourism had also launched a "Campaign Clean India"
all international tourist arrivals (51 percent or 505 million arrivals). However, for to sensitize the masses about keeping Indian destinations clean.
India, more FTAs report travelling for business and professional purposes and
for other purposes, such as visiting friends and relatives (VFR), religious In 2009, plans were formulated to extend the Incredible India campaign to the
reasons and pilgrimages, health treatment etc. For the holiday makers, heritage domestic tourism sector as well. As a result of the various lessons from the
and culture of the country/tourist location are the pre-dominant factors for earlier promotional activities, the new and revamped Incredible India campaign
consideration prior to their visit to India. has been launched recently which made a paradigm shift in the strategy to
promote Indian destinations abroad and within with two separate campaigns.
Of the different states, Maharashtra (24.7 percent), Tamil Nadu (17.3 percent), While the international campaign is called "Find what you seek", the domestic
Delhi (11.1 percent), Uttar Pradesh (9.7 percent) and Rajasthan (6.9 percent) campaign is titled as "Go Beyond". This is explicitly aimed at doubling the FTA in
were the top five states to receive inbound foreign tourists in 2011, accounting the next 5 years by targeted promotion of lesser-known Indian destinations to
for nearly 70 percent of FTAs; West Bengal followed closely with 6.2 percent the world tourists.
FTA traffic in 2011. The majority of foreign tourists visiting India are individual
travellers (primarily business visitors), religious travelers and medical tourists; According to World Travel and Tourism Council forecasts, India will be a tourism
this is clearly evident from the high share of key business zones, religious sites hotspot from 2009 to 2018, having the highest 10-year growth potential. The
and high-end medical facilities available in the country as represented in the top onset of the financial crisis in 2008 delayed the realisation of this potential,
10 Indian states that attracted over 90 percent of the FTAs in 2011 (see Table 3 in which resumed in 2010. In recognition of the potential and domestic efforts,
the main Report). India was conferred three awards by the World Travel Awards organization at the
WTM 2012.
GOI Initiatives and Marketing Campaigns
The Tourism Ministry has played an important role in the development of the
industry, initiating advertising campaigns such as the Incredible India campaign,
4 India as a Hotspot for Inbound Tourism India as a Hotspot for Inbound Tourism 5