1
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
1
India tourism Development StrategyXI plan
Dr. Nimit ChowdharyProfessor
Indian Institute of Tourism and Travel Management
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
2
Tourist buysAdvice, information, sales knowledge, ease of booking, price, etc.
Tourist prepares for visitVisa, internet, information, etc.
Promise promotedImage, sounds, language, etc.
Tourist travels and arrivesAirport, airline, immigration, forex, transfers and transport, etc.
Tourist returnsAirport, taxes, CRM, regular communication, etc.
Tourist experiencesAttractions, service levels, shopping, accommodation, food, friendliness, roads, transport, infrastructure, safety, environment, etc.
Tourism supply chain
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
3
Tourism system
2
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
4
X plan performance
• Two pronged approached– Upgrading tourism infrastructure– Aggressive marketing under “Incredible India”
banner• Four pronged journey
– From non-awareness to awareness– From awareness to interest– From interest to desire– From desire to final action (e.g., booking a
holiday)
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
5
X plan performance
• Growth of 78% in foreign tourist arrival and growth of 122% in FE earnings
• Share of India in foreign arrivals was 0.37% in 2001 and was expected to be 0.53% in 2006.
• Additional 12.5 million jobs have been created in tourism sector in India during the plan period.
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
6
Targets for XI plan
A. International tourism– Visitations
To achieve international visitor level of 10 million by 2011
– Source marketsPrincipal source markets to include South Africa, Israel, Spain, China, Japan, South Korea, Australia, Brazil, Argentina, etc.
3
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
7
Targets for XI plan
A. International tourism– Source markets
To concentrate on countries with large Indian diasporas- Fiji, Mauritius, SA, Kenya, Malaysia, etc.Target “Baby Boomers” group in Europe and North America
• Visiting oldest civilization of the world• Plurality of cultures
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
8
Targets for XI plan
A. International tourism– Revenues
• To maintain and increase per capita spending of international visitors
• To attract higher quality tourists and increasing per head spending
• To concentrate on cruise tourism, MICE sector-which are considered higher revenue generating sectors
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
9
Targets for XI plan
A. International tourism– Seasonality
• To reduce seasonality in international arrival by targeting markets such as Australia, Spain, etc.
• Ensure that drop in arrivals during lean season in not more that 15% of annual average
– Average length of stay• Ensure that duration of stay is sustained if
not extended
4
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
10
Targets for XI plan
A. International tourism– Purpose of visit
• To retain focus on Leisure travelers• To promote business related travel, including
MICE market by promoting convention centers of international standards in major cities
– Expenditure• To increase expenditure on shopping and other
non-accommodation, non-transportation heads, to match international benchmark of 30%
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
11
Targets for XI plan
B. Domestic tourism– Visitations
• To achieve 760 m for domestic tourist visits by 2011 at an annual growth rate of 12%
• To complement international travel with domestic travel in order that seasonality is eliminated
• To promote greater dispersal of domestic visitations in order to spread the benefits of tourism to all areas
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
12
Targets for XI plan
C. Other goals• To increase approved quality accommodation
units from current level of 1,00,000 to at least 2,00,000 by 2011.
• To setup hotels on surplus lands with AAI near international airports as per the international practices
• Promote development of budget hotels at surplus Railway Land at specified Rly. St.
• To create land banks in centre and states and encourage single window facility for investors in tourism products
5
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
13
Strategy for tourism development
• Positioning and maintaining tourism development as a national priority activity– Provide effective linkages and close
coordination between various Departments and Ministries of Government
– Plan and implement a professionally managed integrated communication strategy to increase awareness and about tourism and its social and economic impacts
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
14
Strategy for tourism development
• Enhancing and maintaining competitiveness of India as a tourist destination– Take effective steps for easier and faster
availability of visas– Increasing air connectivity and seat capacity
from major overseas markets– Improving facilities and quality of services at
major international and domestic airports
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
15
Strategy for tourism development
• Enhancing and maintaining competitiveness of India as a tourist destination– Rationalization of taxes– Removing restrictions like RAP/PAP/ILP
6
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
16
Strategy for tourism development
• Improving India’s existing tourism products further and expanding these to meet new market requirements– Develop sustainable beach, coastal and
cruise tourism;– Package and market India’s wide variety of
traditional cuisines – Encourage adventure and rural tourism
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
17
Strategy for tourism development
• Improving India’s existing tourism products further and expanding these to meet new market requirements– Develop and promote round-the-year tourism– Pursue medical tourism vigorously– Take advantage of MICE segment
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
18
Strategy for tourism development
• Creation of world class infrastructure– Identify travel circuits for development as
international standard destinations;– Construction and improvement of highways
for good connectivity with tourist destinations– Introduction of special tourist trains,
establishment of budget hotels on surplus land available with railways and AAI
7
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
19
Strategy for tourism development
• Developing strategies for sustained and effective marketing plans and programmes:– Maintain and develop the Indiatourism brand
position established with the “Incredible India” campaign
– Continuous market research on major source markets to receive, analyse and respond to information on pricing, security issues, health, safety and quality of tourism
Tour Guiding Series
Thursday, May 12, 2011 Dr. Nimit Chowdhary
20
Strategy for tourism development
• Developing strategies for sustained and effective marketing plans and programmes:– Making use of various technological tools,
including internet for advertising for greater and wider impact
– Further encourage e-commerce portals to extend effective marketing support to small and medium enterprises and also offer competitive packages