ECONOMIC

AND SOCIAL COMMISSIONFOR ASIA AND THE PACIFIC

HUMAN RESOURCEDEVELOPMENT

REQ UIREMENTS OF THETOURISM SECTOR IN INDIA

UNITED NATIONSNew York, 1999

I ST/ESCAP/2020 I

A study on human resource development requirements of the

tourism sector in India was undertaken in response to a request of the

Government of India with financial assistance from the Government of

Japan. The report was prepared by Mr. M.K. Khanna, Consultant.

The views expressed in the report are those of the author and do

not nec~ssarily reflect those of the United nations. The designationsemployed

and the presentation of the material in this publication do not

imply the expression of any opinion whatsoever on the part of the Secretariat

of the United Nations concerning the legal status of any country, territory,

city or area, or of its authorities, or concerning the delimitation of its frontiers

or boundaries.

This publication has been issued without formal editing.

CONTENTS

PageIntroduction 1Attributes of tourism in India :.3A.

The Indian tourism product 3B. Economic significance of tourism 4c. Growth forecasts 7

D. Major constraints on growth of tourism in India 7E. Need for trained manpower 11

F. Human resource development 12G. Employment opportunities 15H. Upgrading standards 15I. Setting up standards for food craft institutes 16J. Setting up standards for other institutes 16K. Training programme of the South Asia integrated tourism

and human resource development programme 17

181819

22

II. Constraints on human resource development and solutions A. Obtaining resources B. The travel tourism sector C. Existing facilities for human resource development in

travel tourism D. Initiatives for human resource development in the travel

tourism sector E. Guide training 2225

III. Prognosis for human resource development in the tourism sector 26A. Hospitality sector 26B. Travel tourism sector 31

List of tables

PageI. Estimates for direct employment in tourism 52.

Labour-capital ratios by sector 63. Growth of domestic tourism 64. International tourist arrivals in India : 7

5. Projected international arrivals and domestic tourist visits,2000-2010 126. Additional employment and total employment in tourism-related activities, 1996-2010 12

INTRODUCTION

This study of human resource development in the tourism industryof India has six objectives: (1) ascertain the manpower needs in the hotel andaccommodation sector; (2) determine the existing shortfalls in particularoccupations and consider appropriate staffing pattern norms for the hotel andaccommodation sector; (3) identify the need for trained manpower bynumber, quality and level; (4) estimate the trained manpower requirements invarious operational skills; (5) ascertain the need of training infrastructureimprovement, and suggest measures for improvement; and (6) suggestmeasures to upgrade training courses to address higher skill requirements.The circumstances that necessitated this study were considered to bepressing. If India is to meet the target of over five million internationaltourist arrivals by the turn of the century; it is likely there should beproportionate average annual increases in employment for the tourism sector.

There is a substantial multiplier effect for every job created in thetourism sector, which can generate additional employment at a tertiary level.An economic sector that generates the maximum foreign exchange earningsand has the potential to account for more then 70 per cent of additionalemployment generation annually deserves analysis and priority treatment.Investment requirements to meet the infrastructure needs of the sector willalso have to be substantially increased.

Finally, there is an increasingly evident trend for economic activitiesto shift from manufacturing to the service sectors, both internationally and inIndia.

There are seven main subjects covered by such a study of humanresource development for tourism in India. First is discussion of the need tohave

a sufficient number of well trained and motivated human resources forthe planned expansion of tourism and allied activities coveringaccommodation,

food, entertainment, transport, retail trade and travel trade.Second is analysis to ascertain the manpower needs according to job patternsin the hotel and accommodation sector from a representative sample ofhotels.

Third is an assessment of the existing gaps in particular occupationsto determine how to develop appropriate staffing patterns for differentcategories of hotels. Fourth, ascertain the need for trained manpower bynumber, quality and level based on forecasts prepared with respect torequirements for additional hotel rooms by 2000, 2005 and 2010.

Fifth, trained manpower requirements in various operational skillsassociated with each activity need to be determined with an indication of thetraining courses presently available and with suggestions about suitablemodifications. Sixth, the need for training infrastructure to create ageneration of appropriately trained manpower requires ascertaining how toupgrade existing institutes of hotel management and food craft institutes andwhether to set up new institutes of hotel management and food craftinstitutes.

Seventh, there is a need to suggest measures that will help toupgrade training courses to provide the higher level of skills required.

2

I. ATTRIBUTES OF TOURISM IN INDIA

A.

The Indian tourism product

India has spectacular natural and cultural tourist attractions and arich cultural heritage that is over 5,000 years old. There are thousands ofmonuments

and archaeological remains for tourists to visit and enjoy. Theremnants of one of the most ancient river valley civilizations of the world, theIndus

Valley Civilization, are found in India.

The Taj Mahal and 16 World Heritage centres and several nationalheritage sites are located in India. The historical sites and ancient monumentshave an architectural grandeur that makes them tourism attractions.

The topography, natural resources and climate are also diverse.There are land-locked mountainous regions, lush valleys and plains, ariddesert regions, white sandy beaches and islands. India's cultural diversity isunparalleled, with a kaleidoscope of races, languages, religions, customs andtraditions found throughout the country.

Indians have embraced almost all the major religions of the worldand India itself has given rise to five religions: Hinduism, Buddhism,Jainism, Sikh and Tauhid-i-illahi of Akbar. Showing hospitality to visitors isa national tradition. The lifestyles of Indian people are varied and display acultural uniqueness. Local and national fairs and festivals are full of colourand spectacle.

India has some of the best beaches in the world and many are stillunexplored, such as the Andaman and Lakshadweep Islands. Central Indiahas many wild life sanctuaries with countless varieties of flora and fauna.

The geographical diversity of India provides opportunities foroutdoor and adventure sports activities, with something for all tastes andinterests and every level of experience. Major adventure tourism activitiesrange from trekking and skiing in the Himalayas, river running along theGanges, water sports in Goa, trout fishing in Himachal Pradesh and UttarPradesh, heli-skiing in Himachal Pradesh, and wind surfing, scuba diving andyachting in the Andaman and Lakshadweep Islands.

3

It has been said that there is a fair or festival each day of the year inIndia. Important fairs and festivals include the Pushkar Fair in Rajasthan, the

Crafts Mela at Surajkund, Holi in North India, Pongal in Tamilnadu, Onamin Kerala, Baisakhi in Punjab, Bihu in Assam and dance festivals atKhajuraho and Mamallapuram. There are also many forms of handicraftsand arts. Bharatnatyam, Odissi, Kathakali, Mohiniattam are some of themost popular forms of classical dances which have their origins in variousstates. Every dance form has a precise vocabulary of emotions that aredisplayed by gestures that range from simple moves to complex

choreography.

India is a treasure trove of handicrafts. Handicrafts from alloverIndia can be found in shopping plazas and stores, on streets where shops sellspecialty goods, and local lairs set up overnight can offer exotic choices.Another delight found in India is the cuisine. Each region has its culinaryspecialty and the recipes are written with expertise and beautifullyrepresented in extensive literature. Thousands of restaurants offer samples ofexotic food to suit all tastes. The variety of architectural styles is vast andprovides diverse chronicles of cultures and history.

B. Economic significance of tourism

Travel and tourism have emerged as significant economic and socialactivities in the modem world with enormous economic impact. They areseen as a valuable means for economic development and employmentcreation, particularly in areas that are rural or less developed.

Tourism has now become the world's largest industry. According tothe World Tourism Organization, about 612.8 million international touriststraveled in 1997 and spent about US$ 433.8 billion, accounting for about 8per cent of total world exports and more than 30 per cent of internationaltrade in services. In 1995, the travel and tourism industry was expected toprovide employment, both direct and indirect, for 212 million people,accounting for 10.7 per cent of the global work force, according to the WorldTravel and Tourism Council.

Tourism is emerging as a key sector in the Indian economy, where ithas become the third largest source of foreign exchange, after ready-made

garments and gems and jewellery. The foreign exchange earnings from

4

tourism during 1997-1998 was estimated to be about Rs. 1.1 trillion (US$3,173 million). The rate of growth in foreign exchange earnings from tourismis also high.

The most significant feature of the tourism industry in India is itscapacity to generate large-scale employment opportunities. It offers thepotential to utilize natural resources and adds value to the local architecturesand environments of many areas. However, a special feature of tourism is itsability to employ large numbers of women and young members of theworkforce. Most job opportunities cqme from airlines, hotels, travelagencies, handicrafts and cultural and other tourism-related activities.

Direct employment in the Indian tourism sector during 1995-1996was over 10 million people, accounting for about 2.4 per cent of the totallabour force. Forecasts of direct employment in the tourism sector stress itsimportance as an economic activity, as summarized in table 1.

Table 1. Estimates for direct employment in tourism(million of jobs)

NAPT estimatea/

Trend

estimate

Modified

estimate

1996-1997

1997-1998

1998-19991999-2000b/

2000-2001b/

9.159.9110.81

11.7712.80

9.199.99

10.9211.9313.00

9.4410.4811.7412.9614.17

Source:

Report of the Working Group on Tourism for the Ninth Five- Year Plan,June 1996, Department of Tourism, Government of India.a/National Action Plan for Tourism 1994.

b/Forecasts

Notes:

Tourism has a very positive capital-labour ratio. An investment ofone million rupees (at 1985-1986 prices) would create 89 jobs in the hoteland restaurant industry, compared to 44.7 jobs in agriculture and 12.6 jobs inmanufacturing industries. The average for the whole tourism industry is 47.5jobs for an investment of one million rupees. A comparison of labour/capitalratios in different economic sectors is shown in table 2.

5

Table 2. Labour-capital ratios by sector

Labour/capital ratio

44.712.62.060.9

13.889.047.5

AgricultureManufacturingMining and quarrying

RailwaysOther transportHotels and restaurantsTourism

Annual Plan 1996-97, Department of Tourism,Government of India.

Source:

Another important feature of the Indian tourism industry is thecontribution to national integration and transformation of the economic livesof the people. Over 144 million domestic tourists, travelling allover thecountry each year, help create a better understanding of people living in otherregions of the country and the cultural diversity. Tourism also gives a[mancial incentive to preserve architectural heritages and helps the survivalof art forms, crafts and culture. Growth of domestic tourism, summarizedbelow in table 3, shows the potential.

Table 3. Growth of domestic tourism

Number of domestic tourists (millions)

120131144157172189

1996

1997

1998

19998/

20008/

20018/

Report of the Working Group on Tourismfor the Ninth Five-Year Plan, 1997-2002, Department of Tourism, Government of India, New Delhi.alEstimate

Source:

Note:

Tourism has also become an instrument for sustainable humandevelopment with the aim to alleviate poverty, regenerate the environment,create jobs in remote areas and help in the advancement of women and other

disadvantaged groups.

6

C.

Growth forecasts

Table 4 presents statistics on international tourism in India asmeasured by tourist arrivals and the percentage change from 1992 to October1998.

Table

4. International tourist arrivals in India

Percentage changeNumber of tourists

1867176418862123228323741848

-5.56.9

12.67.53.8

1992

1993

1994

19951996

19971998 (up to October)

According to the WTO, international tourist traffic worldwide isexpected to grow at an annual rate of about 3.1 per cent from 1995 to 2000and reach 661 million arrivals by 2000. The regions most likely to experiencethe strongest growth in tourist traffic are East Asia/Pacific, growing by 6.8per cent, and South Asia, growing by 6.1 per cent.

The Working Group constituted for the fonnulation of proposals ontourism for India's Ninth Plan considered that an annual growth target of 8per cent in tourist arrivals was feasible from 1997 to 2002. This would leadto

total arrivals of about 3.12 million tourists by 2000, assuming that therewould be substantial improvements in infrastructure and services. Actual

figures show that the forecasts were reliable for 1997 and 1998.

D. Major constraints on growth of tourism in India

1.

Infrastructure gaps

While India has much to offer in terms of tourist attractions, thegrowth of tourism faces major constraints, particularly in the case ofinternational tourists. The greatest constraint relates to inadequacies andimbalances in infrastructure. Infrastructure problems include lack ofsufficient airports and airport facilities, inadequate international and domesticair seat capacity, insufficient land transport systems, lack of basic wayside

7

651

830433683579094900

amenities, accommodations, restaurants, shopping and recreational facilities,trained manpower resources and support services. Both the quality andquantity of infrastructure are major impediments in the growth of tourism inIndia.

2.

Airports

There are about 121 airports maintained by the Airport Authority ofIndia and about 139 airports are maintained by state governments and otheragencies, but only ten airports have runway lengths ,over 10,000 feet. Thisincludes the five international airports, although none have the latestInstrument Landing Systems (ILS) and other equipment to facilitate safe andsecure landing in all weather conditions. The quality of maintenance andmanagement of services at the airports also needs much improvement. Asurvey of 2,126 tourists showed that only 24.8 per cent of them found theairport facilities very good, 45 per cent considered them average and 30 percent found them poor.

3.

International air seat capacity

International air seat capacity for India is about 5.3 million, which isjust enough to cover the current level of passenger traffic. A number oftourist-generating countries do not have direct connections to India by air.International air seat capacity would have to be increased by at least 2 millionin order to receive 3.2 million tourists by 2000. In the event that the target is 5million tourists, an additional increase in air seat capacity by 5 million wouldrequired. The distance to India from the Americas and Europe is consideredas a long haul, and this discourages tourists from these areas. The lack of airseat capacity further compounds the problem and blocks the increase ininternational tourists. While there is some expression of interest in an opensky policy, it has yet to happen in practice. Foreign airlines do not have freeaccess to India.

4.

Domestic air seat capacity

Total domestic air seat capacity is currently over 17 million. In 1996,70 per cent of this capacity was utilized by 12 million passengers, of whom7.

I million traveled by the state-run Indian Airline and 4.9 million by privateairlines. This sector is expected to grow annually by 12 per cent, with an

8

average

growth rate of 8 per cent in international tourist traffic and 9.5 percent for domestic tourists. By 2000, the requirement for total domestic airseat capacity is estimated to be 27 million. If foreign tourist arrivals increaseto

5 million as expected, the required capacity will have to be increased to 30million.

Although these projections seem optimistic in view of the economicdownturn in 1997 and .1998, the situation is expected to recover soon. Thereis,

therefore, a need to address problems of insufficient flights to majortourist destinations during tourist seasons, the high cost of domestic air traveland

the inconvenient timing of flights. The efficiency of Indian Airlines alsoneeds to be improved and the growth of private airlines should be fostered.

An efficient and responsive domestic air transport system is essential forgenerating more tourism travel to India.

5.

Approved hotel accommodation

Another serious impediment to tourism in India is the scarcity andhigh cost of hotel accommodation. In 1997, the number of approved hotelrooms

available was about 64,500 and about 36,000 rooms were underconstruction. Demand by 2000 is estimated to be 125,000 rooms, but therewill be a shortfall of 27,000 hotel rooms. The lack of accommodation duringthe

tourist season is cited as a reason why tourists do not choose India as aholiday destination.

There are a number of possible solutions to deal with the problem oflack of accommodation. First, the floor-area ratio could be increased so thatexisting hotels can add more rooms. Second, more land could be madeavailable for hotel construction by urging land allocation agencies to set asidemore land for the tourism industry though auctions, long leases and equityparticipation. These agencies can also help bring private buyers and sellerstogether to give entrepreneurs easier access to land and buildings in privatehands. Third, public agencies need to liberalize the licensing and approvalsrequired in order to operate hotels.

Access to capital acts as another limiting factor. The TourismFinance Corporation (TFCI), other financing institutions and banks couldprovide a mechanism that gives greater access to capital. Their proceduresand

regulations need to be made more tourism friendly.

9

Innovative measures could be used to generate more rooms. Onemeasure is to promote "paying guest accommodation" at new major touristcentres. Currently, 1,472 units with 5,953 rooms are being run in 14 states.

State governments need to be more active in promoting tourist centres asviable alternatives to hotels. This would require comparatively less

investment and therefore be more advantageous to some tourists.

Another way to create accommodations is through the approval ofguesthouses. Prices of guesthouses have not been meeting the expectations oftourists

on a tight budget, partly because of complicated procedures whichrequire guesthouses to obtain approvals from the police, municipalauthorities and the state department of tourism. Where many guesthousesoperate without approval, they have acq1,lired a reputation for drugs, crimeand mistreatment of the patrons. It would be worthwhile for the Ministry ofTourism to register and approve these guesthouses in order to provide moresafe accommodation.

Hotels seeking approval under current guidelines comprise less than50 per cent of the hotel rooms available, despite efforts by the Ministry ofTourism, GOITOs in the field and the state departments of tourism. There is awide scope for liberalizing guidelines in order to provide incentives for hotelowners to seek approval. Possible methods include giving more economicincentives, such as more economic grants for bar licenses.

6.

Visa restrictions

Another major obstacle to growth of tourism is the difficulty ofobtaining visas for travel to India. Visa restrictions need to be liberalized inorder to ensure larger flows of international tourists. Possible optionsavailable include:

(a) Liberalizing the visa regime, at least for countries that do notpose any political or security threat, including visas on entry fortourists from such countries

(b) Waiving the visa requirement in the case of nationals fromcountries with whom India has signed bilateral tourism

agreements(c) Giving special tourist visas for up to two weeks and making

them available at airports on arrival

10

(d) Simplifying the procedure for issuing visas for major tourist-generating countries and making visa applications available onthe Internet

(e) Considering reductions in visa fees.

7.

Increased competition and the image of India

Increased competition from neighbouring countries and negativeperceptions in major tourism markets of the Indian tourism product,particularly the transport infrastructure, constrains the growth of tourism. Theimage of India as a country overrun by poverty, political instability anddiseases does harm to the tourism industry of India.

Other countries in Asia make large expenditures for tourismpromotion to attract international tourists. India needs to make strong effortsto

improve its image as an attractive destination, and these efforts wouldrequire more resources.

There are other constraints in India, including tourism's lack ofpriority in planned developments, poor maintenance of monuments andwildlife

sanctuaries, inadequate surface transport facilities and poor qualityservices. A group of ministers is being organized under the Minister ofTourism to coordinate activities of various government departments andagencies. A committee working under the command of the Cabinet Secretaryassists

in implementing decisions and removing systemic problems.

Dialogues with state governments to liberalize and rationalizetaxation and other bureaucratic problems are part of an ongoing process.Many activities in the tourism sector depend on initiatives taken by the stategovernments. More liberalized states like Kerala, Goa and Rajasthan havetaken many measures to attract more tourists by facilitating a more tourism-

friendly atmosphere.

E. Need for trained manpower

Requirements for trained manpower in the hospitality sector areproportional to the growth in tourist arrivals as well as the growth indomestic tourist visits. The status and projected growth in arrivals by foreigntourists and visits by domestic tourists is shown in table 5.

11

Table 5. Projected international arrivals and domestic tourist visits,2000-2010 (million of persons and percentage growth)

Foreign tourists

Domestic

touris~

2000

20052010

2.753.80

5.00

196

288400

The projected increase in foreign and domestic tourist arrivals wouldlead to additional employment in various tourism-related activities. It hasbeen estimated that one man-year of employment is created for about everythree foreign tourist arrivals. Similarly, one man-year of employment iscreated for about every 38 domestic tourist arrivals. Based on these estimates,the jobs created by the year 2010 are presented in table 6.

Table 6. Additional employment and total employmentin tourism-related activities, 1996-2010 (million of jobs)

Additional employment

Generated by

foreigntourists

Generated

bydomestictourists

Totalincreased

employment

Total

Employment

19962000200520.10

9.1010.7713.6317.08

174398455

1.4962.4582.992

1.6702.856

3.447

Since tourism covers various activities, people employed in somesectors do not need fonnal training. Instead, that portion of employees mayneed

only some skill development programmes or short-tenn on the jobtraining.

F.

Human resource development

Some of the services required in the tourism and hotel industries arehighly personalized, and no amount of automation can substitute for personalservice providers. Human resource development in the tourism industrynormally includes manpower training in two main areas: (1) the hospitalityand catering sector and (2) the travel trade and tourism sector.

1')

The hotel and catering sector is now highly personalized. Customersatisfaction is the prerequisite for a smooth and successful operation in thehotel industry, requiring professionally trained and highly skilled personnel.According to estimates of requirements for additional hotel rooms, thenumber of personnel who will need formal training in the hospitality andcatering sector would increase by about 400 a year, from 16,000 to 20,000people a year by 20 I O. The existing training facilities currently produce onlyabout 5,000 to 6,000 trained personnel a year.

The central government and the state governments have collaboratedto provide resources in order to train people in the hospitality sector as part ofoverall development efforts. There are now 20 institutes of hotel managementthroughout the country which are sponsored by the government and directlyaffiliated with the National Council for Hotel Management and CateringTechnology (NCHMCT). These institutes are located in Ahmedabad,

Bangalore, Bhopal, Bhubaneshwar, Calcutta, Chandigarh, Gurda~pur,Guwahati, Gwalior, Hyderabad, Jaipur, Lucknow, Madras, Mumbai, NewDelhi (Pusa), Panjai (Goa), Patna, Shimla, Sri nagar and

Thiruvananthapuram.

These institutes conduct several types of courses in hotelmanagement, craftsmanship and food and beverage services, including three-year diploma courses, 14-month post-graduate diploma course, one-yearpost-graduate diploma courses, one and a half year post-graduate diplomacourses, six-month courses and certificate courses. There were 1,605 studentstrained in 1995, 2,250 students in 1996, 2,500 students in 1997, 2,900students in 1998 and 3,600 students would graduate in 1999 and 4,000 wouldgraduate in 2000, according to data provided by ESCAP.

In addition to these 20 institutes, there are also 15 food craftsinstitutes around the country. The food crafts institutes are located at Ajmer,

Aligarh, Alwaye (Kerala), Chandigarh, Darjeeling, Gangtok, Faridabad,Jodhpur, New Delhi, Patna, Pondicherry, Pune, Tiruchirapali, Udaipur andVishakhapatnam. These institutes offer training courses from six months toone year, training students in food production, bakery, confectionery, frontoffice operations, bookkeeping, restaurant and housekeeping.

The institutes of hotel management and food crafts institutes havebeen set up with assistance from the Ministry of Tourism in collaboration

13

with the state governments. The two agencies of government share financialresponsibilities for these institutes. Some states have raised tuition fees so

that the institutes can be self-sufficient.

All of the institutes in hotel management and food crafts aremanaged by autonomous societies registered under the Societies Registration

Act, 1860, and have Boards of Governors consisting of representatives fromthe central government, state government and the hotel and trade industries.

Each Board of Governors is chaired by the state's secretary of tourism.

The National Council for Hotel Management and CateringTechnology (NCHMCT) is also registered under the Societies RegistrationAct, 1860, and is managed by a Board of Governors which includesrepresentatives

from the central government and the private sector. TheNCHMCT regulates all academic activities of the institutes of hotelmanagement.

It also oversees all admissions, course design, examinationsand certificates. The faculty development programme, research, cooperationand coordination and affiliation with professional organizations at thenational and international level also come under NCHMCT.

In addition to the central government's support for training tourismindustry personnel, there are other training courses and programmes carriedout by various agencies, including universities, state governments and privateorganizations.

The Department of Labor has set up a Central ApprenticeshipCouncil (under the Central Apprentice Act) to conduct training courses andshort courses lasting three months to one year in cooking, bakery,confectionery, housekeeping and other services. The Central ApprenticeshipCouncil trained about 1,600 people at Delhi, Fairdabad and Meerut in 1998.State governments trained about 250 people at craft institutes. The majorhotel chains trained about 250 people, universities trained about 500 peopleand

private institutes trained about 750 people. The total number of trainedpersonnel from these agencies was 3,350 people.

Comparing tllis total with the need for 20,000 additional personneleach year, it is clear that further analysis is required. A survey beingconducted

to identify the requirements for trained manpower at each level ofemployment would focus on general management trainees, trainees inkitchen management, hoJlsekeeping management, operational trainees, frontoffice

and accounting management, chefs, butlers, captains, bakery,confectionery and otller specialized cooking.

14

Middle management positions would be filled by people holdingthree-year diplomas, while other jobs could be filled by craft trainees. Craftinstitutes could be targeted for expansion in order to meet the needs forlower-level skill areas.

G. Employment opportunities

The personnel trained by institutes of hotel management and thefood crafts institutes are employed by the following types of businesses:

-Private

and public hotels of all kinds-Airline flight crews

-Flight catering-Railway catering-Hospital dietitians-Consultancy works-Industrial cafeterias-Faculty of the hotel management and food crafts institutes-Defence

services-Restaurants

-Ships.

H.

Upgrading standards

1.

Curriculum revisions

A new curriculum for the three-year diploma course was introducedin 1997-1998. Such curriculum revisions, now and in the future, shouldprovide for more inputs to upgrade the quality of instruction in order to keepup with the demands of a rapidly changing and developing industry.

2. Faculty development

One area where the National Council for Hotel Management andCatering Technology focuses its attention is the development of faculty. Thechanging profile of students who choose hotel management courses has madeit essential that the training skills of the instructors are also improved. TheCouncil is currently trying to identify the appropriate developmentprogrammes so that faculty from the various institutes of hotel management

15

have an opportunity to improve their training capabilities. A subcommittee of

3.

Technology improvement

Between 1985 and 1991, most of the older hotel managementinstitutes have received advanced equipment for training through a UNDP-assisted programme to modernize hotel management education.Technological improvements have developed rapidly and require that thetraining infrastructure be upgraded to enable scholars to have updatedtraining experiences with hands-on training and modern equipment. TbeNational Council has formulated new standards for the equipment andtechnology used in the hotel management institutes and the food craftsinstitutes. There is also a policy to periodically review the recruitment rules.The National Council recently prepared a model manpower plan for the hotelmanagement and the food crafts institutes.

I.

Setting up standards for food craft institutes

In addition to the various institutes of hotel management, which areaffiliated to the National Council, there are 15 government sponsored foodcraft institutes in different parts of the country. These institutes functionunder the control of the state governments. Over the years, it has been foundthat these institutes have not grown to meet requirements in a timely way.

The National Council has recently fonnulated a scheme to affiliatethe food craft institutes to ensure quality of education and standards of

examination.

J.

Setting up standards for other institutes

A number of private institutions of hotel management educationhave emerged in India to offer courses in hotel management. They have

grown to playa significant part in Indian management. However, theseprivate institutes have varying standards, making it necessary to coordinatethe

public and private sectors in hospitality education.

16

the National Council has been set up to identify suitable modes for faculty

development.

The National Council held a workshop with leading private institutesto update standards. A scheme for providing affiliation is currently beingdeveloped in consultation with the Ministry of Human ResourceDevelopment and Law.

K. Training programme of the South Asia integrated tourismand human resource development programme

This regional programme was se~ up with support from the EuropeanCommission in April, 1995 and was monitored by a regional HumanResource Development Committee in the member countries of SAARC. Thefocus was on upgrading the capacity of human resources in the hospitalitysector.

National committees managed this programme in each South Asiancountry. A Tourism Human Resource Development Committee was set up inNew Delhi and it has conducted a number of training programmes under ascheme called "Train the Trainer". This programme was designed to developthe training skills for managers who would further train other staff in relatedfields of work.

The scheme has been well received and appreciated by the Indianhospitality industry. From the 46 programmes already conducted, a total of995

trainees were trained to continue developing skills in the country. Theiractivities continue in order that they can develop more training facilities.Activities

under the "Training Programme of South Asia Integrated Tourismand Human Resource Development" has included preparation of manuals fortrainers

and trainees, identification of testing facilities and establishment of anational system of certification. However, the programme would not receivefunding from the European Union after 1 April 1998.

17

II.

CONSTRAINTS ON HUMAN RESOURCEDEVELOPMENT AND SOLUTIONS

A.

Obtaining resources

The Planning Commission and the Ministry of Finance have insistedthat hospitality training should be done by the private sector because there isa

general shortage of funding resources in the public sector. In view of thefinancial constraints, the Ministry of Tourism is also trying to motivate theprivate

sector to contribute to human resource development for thehospitality and catering sector. Guidelines have been set up to encourageinfrastructure development based on co-sponsorship with the private sector.

The Ministry of Tourism has also contacted the Confederation ofIndian Industries and requested them to explore possible industry support toset up a national culinary institute, advanced hotel management institute, abranch of the Indian Institute of Travel and Tourism Management andheadquarters of the National Council. The institutes and headquarters wouldbe set up at Noida, where land has been acquired for this purpose.

In order to upgrade the infrastructure of the hotel managementinstitutes, the National Council has prepared standards for minimum essentialinfrastructure at different levels of student enrollment. The institutes areencouraged to prepare development plans that overcome the infrastructuregaps in a time-bound manner. The emphasis is on upgrading the institutes'training infrastructure to reach acceptable levels by 2002.

The food craft institutes have been set up with the initial support ofthe Ministry of Tourism. Land and buildings are provided by the stategovernments. Equipment and expenses for the first five years are provided bythe Ministry of Tourism. Fourteen institutes have been set up in this manner.However, the state governments have neglected these institutes due to lackof resources. It is mistakenly assumed that collecting low fees in order to giveopportunities to poorer students would not make the institutes self sufficient.As a result, most of these institutes lack resources to upgrade theinfrastructure and provide the necessary facilities for academic excellence.This probl.em needs to be remedied, because the institutes provide skilledpersonnel essential for basic services in the hotels.

1 R

There is a need to provide higher education in the area of hospitalitybecause existing curricula cover only the basic requirements at the entrylevel. There should be a system of continuing training in order to upgradeskills and managerial abilities. Further assessments are needed, incooperation with the hotels, in order to identify requirements and shortfallsand then respond properly. The Ministry of Tourism has started the processby announcing that an institute of higher hotel management and anotherinstitute of culinary arts would be set up. A system of accreditation withinternational hotel education institutes also needs to be introduced to enablestudents to seek further qualifications.

B. The travel tourism sector

The tourism industry consists of the hospitality sector and the traveltrade sector. In India, the travel trade includes travel agents, tour operatorsand transport operators. Another group of people involved in the travel tradeis the tourist guide. There are separate guidelines covering all of thesecategories, including standards required and terms and conditions for eachservice provider. The Director General of Tourism makes the guidelines, butthey are completely voluntary and compliance is verified in a participatoryway.

Travel agents, tour operators and transport operators approved by theMinistry of Tourism receive benefits such as tax breaks, airport passes andeligibility for Export House status. There are 240 approved travel agents, 359tour operators and 189 transport operators currently operating in India. Mostare also required to operate according to standards of the InternationalAssociation of Travel Agents (lATA).

The growth of the travel tourism sector is a new phenomenon inIndia. The first lATA in India was the American Express Bank Ltd., set up in1947. By 1960, only 17 lATA agents had .offices in India. The large agenciesbegan to expand in India later on, but services were concentrated inmetropolitan areas like New Delhi, Bombay, Madras and Calcutta. After1960, when an office was built in Cochin, the number of agencies hasincreased and expanded to nearly 20 cities around India.

The formal study of tourism in India began in the 1940s, but tourismeducation materials have been based mostly on studies done in the 1980s and1990s. Delhi University started a bachelor of arts vocational studies

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programme

tourism course in 1972 without a curriculum or full-time staff. Atits Fifth General Assembly held in Delhi in 1983, WTO declared that tourismeducation and training must be given due priority. The National Committeeon Tourism pinpointed problems concerning teaching staff and propercurriculum. The Indian Institute of Travel and Tourism Management (IITTM)was started in 1983 as a registered society for teaching arid research in traveland tourism management. Its mandate included:

Development of human resources for the travel and tourism

industryInfuse greater professionalism in tourism servicesDeal with future challenges.

Growth of the travel trade was stimulated by increased servicesprovided by Indian Airlines, greater flow of inbound tourists, an increased

number of hotels, the need for surface transportation and new demand forsightseeing and shopping. The growth of travel has been accompanied by asharp increase in non-lATA service providers as well, surpassing the lATAservice providers in some years. The service providers have their own tradeassociations, namely the Travel Agents Association of India (TAAI), theIndian Association of Tour Operators (IATO) and the Indian Transport Tour

Association (ITTA).

The service providers in the tourism sector are not evenly distributedthroughout India, however. Metropolitan areas and the western and northernparts

of the country are covered more than other areas. Most serviceproviders are small family-based enterprises. The situation is made difficult

by the fact that there are no commonly accepted codes of ethics or standardsof service. Very few agencies have adopted office automation or use ofcomputer-based services. According to a survey in 1996, only 23 per cent oflATA agencies and 39 per cent of non-lATA agencies had installed faxmachines. Most agencies have only a few trained employees.

An analysis made of a group of travel agents showed that most of thebusinesses were from Europe, the United States nf America, countries in the

Persian Gulf ar~a and Singapore. The most popular destinations in India wereBombay, New Delhi, Calcutta, Madras and Bangalore.

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Travel service providers in India engage in a limited type ofbusiness. Besides ticketing, most of them provide services for inbound tours,hotel bookings and automobile services. Very few provide rail services orcoach services, and even fewer provide travel insurance or cruise bookings.Despite the growth of credit card use, few travel agencies accept credit cards.

International and domestic ticketing, ho~el booking, leisure traveland automobile services are the most profitable activities for the travelagencies and provided by most of them. Other value-added services are notas popular, due mostly to lack of demand, lack of products and lack ofknowledge

or skill of the service providers. Overall, this shows that tourismis an infant industry in India. It alsQ highlights the need for the government to

liberalize the insurance industry and for the Ministry of Railways to adoptrail bookings through approved travel agencies.

A survey based on a self-assessment of staff competence showedthat the agencies evaluated their staff as generally competent. This mayreflect a reluctance to accept the lack of skills in their staff, which is notsurprising when considering that most agencies were family-owned entities.The

same survey showed that a large proportion of the staff was not trained atall or received insufficient training at both lATA and non-lATA agencies.Most agencies were unaware of the importance of training in order toenhance

their business and quality of services.

In order to develop a training programme to meet the requirementsof the travel agencies, it is important to identify the services expected byclients

such as airlines, hotels and travelers. The attributes agencies areexpected to have include product knowledge, knowledge of trade andbusiness practices, financial integrity, good customer service, staff of highquality, a professional approach, effective marketing, efficiency, automation,sincerity and good communication. Hotels expected the following servicesfrom the agencies: ticketing, hotel bookings, automobile services, travelinformation and guidance and tour packages.

More individual travelers are using travel agents for organizing theirinternational and domestic trips, and most travelers deal with a single agency.The choice of travel agencies depends more on credit terms and discountsthan on value added services. Other factors include location, size, reputat;on,range of services, speed of service, acceptance of credit cards, guide service,hotel discounts and travel counseling.

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The agencies think that their ability to attract clients depends oncustomer services, range of services, prices, location and special deals.

C.

Existing facilities for human resourcedevelopment in travel tourism

Training in travel and tourism has been a neglected area in India.Most staff members employed by the agencies are trained on the job. Thereare only a few institutional arrangements for training and most are operatedby the government. Private sector training institutions with varying levels ofcompetence have been established in recent years.

Training for people in the travel trade is mainly in specialized areasfor certain types of activities such as winter sports, water sports, trekking andwildlife tourism. The Ministry of Tourism has set up special institutes fortraining

in travel tourism, including the Indian Institute of Tourism TravelManagement, the National Institute of Water Sports and the Indian Institute

of Skiing and Mountaineering.

D. Initiatives for human resource developmentin the travel tourism sector

1.

Indian Institute of Tourism and Travel Management

The Indian Institute of Tourism and Travel Management (IITTM)was established in 1983 as a registered society in New Delhi. It is fullyfunded

by the Ministry of Tourism and has been set up to meet the demandfor higher education and training in the travel and tourism industry. It hasalso been entrusted to serve as a central agency for developing tourismeducation facilities in the country.

In August 1992, the state government of Madhya Pradesh allotted 20acres of land without cost for building a permanent campus. II1TM moved toGwalior in February 1996. Full time courses include a Diploma in TourismManagement requiring 14 months to complete and a Diploma in DestinationManagement requiring 8 months. About 60 students have been trained in thecourses since August 1996.

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Other courses planned for 1997 included Tourism OrientationCourses for Officers in Hill States, a Basic Course on Tour OperationServices Management, Introduction to Tourism Marketing, LanguageCourses and Wildlife Tourism Management, among others. Courses alreadycompleted include an Orientation Course in Tourism in Ladakh, Himachaland Goa, all with good participation.

During 1997, 1I1TM also established the Eastern Regional Centre inBhubaneshwar. The Ministry of Tourism provided Rs.15 milIion as financialsupport for opening this institute and for running various courses at bothcampuses. The Bhubaneshwar Centre currently operates at rented premises.Two courses that have already started are the Basic Course on Air Cargo andRating and a Diploma in Tourism Management. Other part-time programmesin travel and tourism have been planned for 1997. Many II1TM developmentprogrammes are being conducted at the institute's chapters in Lucknow,Thiruvananthapuram and Delhi. A common sylIabus in the field of tourismhas helped II1TM to ensure uniformity in the courses offered. To gain back-up support, the institute has augmented its faculty during 1996-1997. TheBoard of Governors' Meeting in February 1997 approved various expansion

projects.

The courses currently offered by II1TM and its chapters include the

following:

.Part-time management deve.lopment programmes

.Diplomas in the travel and tourism industry

.Language training in French, German, Spanish, Japanese, etc.

.In-service training to government officials and industry personnel

.Training to grass-roots workers.

In the Ninth Five-Year Plan, two new institutes have been proposed,one in North-Eastern India and one in the southern region. Both are beingcleared by the Planning Commission and the Ministry of Finance.

The budget approved in 1997-1998 for II1TM was Rs. 23 million.Approval of additional investment for the second phase of construction of theIITTM campus is currently under consideration. The second phase includes

setting up language laboratories, teaching blocks, a hostel complex, etc., at anestimated cost of Rs.150 million.

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2. National Institute of Water Sports

In 1990, the Department of Tourism set up a National Institute ofWater Sports (NIWS) at Goa to promote water sports throughout the country.An expert from the Indian Navy has been appointed to head NIWS. Theinstitute provides training in sailing, wind surfing, water-skiing, outboardmotor maintenance, rescue techniques and water sport management.Approximately 18 acres of land have been taken over from the stategovernment of Goa, 60 per cent of the approved equipment has beenprocured and steps are being taken to make it fully operational as soon aspossible. Water sport bodies in other states are being assisted by NIWS forfurther development of water sport activities.

The administrative control of the NIWS has been transferred toII1TM in order to more closely supervise the training programmes. NIWShas also carried out surveys of water sport potential for 11 states, conductedwater sport displays at Port Blair and Bhopal to popularize water sports andconducted a Marine Wealth Awareness Programme at Lakshadweep.

NIWS has thus far trained 831 water sports professionals from 20states. Courses in 1997 included outboard motor maintenance, power boathandling, life saving techniques, kayaking, dinghy sailing, wind surfing,water sport orientation course, water sports centre management, etc. NIWSalso conducted training programmes at locations outside Goa, such asDarjeeling, Sikkim, Lakshadweep, Bhopal, the Andamans and Pune.

The Ministry of Tourism has formulated safety and securityguidelines for various water sports activities and standardized wat~r sportsequipment, maintenance and operation, all of which are included in NIWStraining. Meetings have been held with trade bodies, adventure tour operatorsand experts in the field to obtain their suggestions on matters related to watersports tourism.

3.

Indian Institute of Skiing and Mountaineering

Gulmarg Winter Sports Project and the Indian Institute of Skiing andMountaineering (IISM) were set up in 1968 as pioneering institutes of theDepartment of Tourism for developing adventure sports activities likemountaineering, skiing and trekking. The IISM was started with help from

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officers of the defense forces. Later, regular instructors and staff wereappointed from the trainees. By 1990, there were about 60 employees atIISM.

E.

Guide training

Tour guides provide essential services required by international anddomestic tourists. With the steady increase in the number of internationaltourists

and as a result of greater affluence, there has also been a considerableincrease in domestic tourism. In order to meet the ipcreasing demand by both

international and domestic tourists for guides, it has been decided tointroduce a three-level system of guides to serve different market segments,effective from February 1996. The three levels of guides are: (I) regional

level guides who are trained by the Department of Tourism through theirtourist offices or by the Indian Institute of Tourism and Travel Managementor by the Institute of Hotel Management; (2) state level guides who aretrained by state governments; and (3) local guides who are trained under thesupervision of local administrations or state governments.

Many universities offer courses in travel and tourism, including 13universities and 45 colleges which have started tourism courses at the post-graduate level.

The International Federation of Freight Forwarders Association(FIATA) and lATA have also been conducting courses in freight forwarding,including basic cargo rating and documentation procedures, international aircargo rating and dangerous goods regulations. There are now a number ofprivate training institutions offering job-oriented courses in travel andtourism. Institutes run by SITA and Skyline, for example, have established aname for themselves with high quality training. However, the majority ofsuch training institutes are serving as teaching shops with little or nostandards.

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III. PROGNOSIS FOR HUMAN RESOURCEDEVELOPMENT IN THE TOURISM SECTOR

A. Hospitality sector

Tourism is a major leisure activity with enormous economicconsequences in the modem world. It is already the largest export industry inthe global economy. In the developed world, it is a major source of wealth,employment and many other positive effects. These effects have started toshow in developing countries as well. As a developing economy, India has avast potential for tourism development.

From a modest beginning of 17,000 international tourist arrivals in1947, when India became independent, 'arri vals have increased to 2.37million by 1998. However, India continues to be a very small part of theinternational tourism marketplace, with only 0.4 per cent of the totalinternational arrivals and 0.7 per cent of the total revenues. Nevertheless,there has been considerable development in the various components ofservices and infrastructure required to support a growing number of touristarrivals in the future.

Over 10 million people are directly employed in tourism and anadditional 13 million derive employment and income indirectly fromtourism. International and domestic tourism is likely to increase in the yearsto come. Therefore, there is a need to plan for the future so that tourismgrows in an orderly fashion and Indian people are able to reap the fullbenefits of this activity.

People are the primary resource in tourism, because all tangible andintangible tourism products are delivered through the people working in theindustry. In the era of more technology and increased competition, the rangeand variety of products and services is likely to undergo considerable change.In this context, the quality of human resources will be even more vital. Theneeds of the industry must be addressed through innovative strategies thatinclude development of multiple skills, service- oriented attitudes and skilltraining and cross training. The basic objective of human resourcedevelopment will continue to be to enhance efficiency and increase thecapabilities of all individuals who provide tourism services.

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In India, human resource development in the tourism sector will facesimilar challenges as international tourists expect international standards ofservice

and domestic travelers demand better quality services. Quality ofservices and improved infrastructure will be the key to the future success of

tourism in India. The challenge is enormous, since India has to deal withmany other issues in efforts to improve the quality of life for its citizens.

There are currently 62,000 hotel rooms in approved establishments,and it is estimated that an equal amount of rooms are operating asunapproved. Furthermore, there are about 35,000 rooms being made ready toopen. It is expected that by 2002, there will be over 100,000 rooms approved.Given an average ratio of two employees per room, about 2 million peoplewould be directly employed in the organized hospitality sector. Most of thesepeople would not be formally trained and probably would have learned on thejob.

Therefore, there is a need to upgrade skills in the hospitality sector, evenif it is the oldest and most organized sector of tourism in India.

The situation in other sectors of the tourism industry face a muchworse situation with respect to human resources. A multilevel effort isnecessary to improve the skills of the manpower employed in the hospitalityindustry. This can begin with increased in-house training of employeesalready working in the hospitality sector. A lot of groundwork has alreadydone. Most larger hotel chains have human resource developmentdepartments and in-house training. The problem is with the smaller hotels.

The South Asia Integrated Human Resource Development Project,funded by the European Commission, has done much work in developinghuman resources, such as setting standards, securing industry acceptance ofstandards, preparing manuals for important trades, training of the trainers,setting up a system for testing standards and certification of trainers andtrainees. However, follow up is needed because further funding from theEuropean Commission is not now available. The National Commission set upto

oversee the project must be activated and the industry must implement thesystem so that quality can be ensured to make Indian tourism competitive

internationally.

The apprentice scheme being implemented by the Ministry of Laboris another activity that should be reviewed. The scheme started operatingmany years ago, and in view of development in the hospitality sector sincethen, the syllabus requires revision and the infrastructure for training in the

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council institutes at New Delhi, Faridabad and Meerut requires major

upgrading.

Trainers also need to upgrade their skills. Currently, they areproviding training in cookery, bakery, confectionery, stewardship andhousekeeping, with 1,600 trainees graduating annually. If the administrationof this scheme and the institutions are handed over to the National Councilfor Hotel Management and Catering Technology under the Ministry ofTourism, there should be considerable synergy generated among theinstitutions for training in the hospitality sector.

The universities of Madras and Bangalore have also affiliatedseveral catering institutes and award the Bachelor's Degree in HotelManagement.

However, the industry has been reluctant to accept thestudents, because they lack practical experience. There is need to upgrade thecurriculum of these university courses to meet the expectations of industry.

Another 35 private institutes affiliated to the All India Council ofTechnical Training (AICTT) provide training in hospitality and catering toabout 500 students. However, they have not been able to meet theexpectations of the industry and there have been numerous complaints aboutthe quality of training. As a result, students find it difficult to get good jobopportunities. An exception to the teaching shops are some private institutesrun by reputable hotel groups like Oberoi, IillC, Taj and the ITC MayuraGroup. Other hotels are also setting up similar training institutes. Theseinstitutes award their own degrees and diplomas and some have ties with theAmerican Hotel and Motel Association or the Swiss Hotel School. Someuniversities in Australia and in the United Kingdom have started offeringsplit campus training in India. A proper system of admissions is required,because there are often allegations that the management of these institutescharge exorbitant entry fees.

At present, 20 institutes of hotel management are the backbone ofinstitutional hospitality training at the entry level in India. However, manyinterventions are required in order to upgrade the quality of teaching at theinstitutes. The main areas to be addressed are the following:

(a) Upgrading training infrastructure. The National Council hasdeveloped a standard for desirable infrastructure in an institute of hotelmanagement at varying levels of annual enrollment-90, 120 and 150 students.

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(b) The teaching faculty at the institutes often lack quality, interestand commitment. The National Council has recently revised the

qualifications expected of the teaching staff at all levels. The faculty mustupgrade their qualifications through bridge programmes, particularly for

those institutes that have been upgraded from food and crafts institutes. Thereis also the need to constantly ensure a healthy interaction of faculty with thetourism industry, so that the faculty can stay in touch with the developmentsand expectations of the industry. The faculty should also be provided withopportunities for further training at international hotel schools. Until somearrangements can be set up for that purpose, the National Council shouldorganize regular training programmes. The faculty must be encouraged to useup-to-date teaching materials and audio visual aids. There should be betterrecognition and encouragement for research and the publication of papers.More contact and consultation between teachers and students should beencouraged as well. The institutes should seek participation fromprofessionals in the hotel industry.

(c) Entrance to institutes' programmes is possible through anationwide joint entrance examination held every year. There is a need to

improve the system for scheduling exams so that they are held in April andresults are announced in May. This will enable classes to start in July andfollow the academic year of other educational institutes. In this respect, theNational Council must examine each activity in order to make decisionsabout saving time and energy. The entrance examination papers also need tobe scrutinized so that bias against social and humanity subjects can becorrected. Sufficient attention should be given to personality tests duringinterviews, because personality and character are very important in thestudents' future career.

(d) The National Council revised the syllabus fQr the three-yeardiploma programme in 1996, following a consultative process. It was felt thatthere was too much repetition in the food and beverages courses. At the sametime, insufficient attention was given to knowledge of international winesand spirits, which would be required in upscale hotels, airlines andinternational shipping companies. Applied management should be taughtalong with principles of management. An international cuisine course needsto be added to the three-year diploma course. Other points were also madeabout improving courses. Most issues have been addressed in the revisedsyllabus, but there is still room for improvement. The National Council must

29

also hold workshops with teachers of every subject to increase confidence inteaching with the new syllabus. Some study materials need to be upgradedand standardized in all the institutes.

(e) A student who graduates with the three-year diploma from theinstitutes of hotel management will be at a disadvantage in the job market,because

sometimes there is competition with university students who obtainbachelor degrees. The diploma status should therefore be upgraded to adegree

status. Upgrading the curriculum and, if possible, affiliating withuniversities could help achieve this goal.

(f) Feedback from the tourism industry has shown that there aremany areas in which further education may be required, so that opportunitiesfor higher education are needed. In some areas, the Institute of Higher HotelManagement and Culinary Arts could provide useful courses.

(g) Some institutes of hotel management have tried to avoid offeringcrafts courses, claiming lack of resources and limited job opportunities. Theopportunities for crafts course students are actually better than claimed and ithas been found that the institutes can better serve the interests of the localindustry if they provide this training. To overcome the lack of resources,local tourism industries should contribute to the training resources andinfrastructure. The manual prepared by the Training Programme of SouthAsia Integrated Tourism and Human Resource Development (South AsiaIntegrated Programme) should be considered as a teaching and training tool.Some courses that fail to meet expectations might be discontinued in order tocut costs.

(h) The Planning Commission and the Ministry of Finance haveruled that no new institutes of hotel management should be set up in thepublic

sector. Although this has caused some criticism from inadequatelyfunded and newly-emerging states, the decision may actually be welcome.The decision will require that priorities be reorganized and the existingtraining resources and infrastructure will have to be consolidated.

(i) The food craft institutes make up the first level of the traininginfrastructure for hospitality. Many of these institutes have been upgraded toinstitutes of hotel management, leaving the infrastructure for crafts coursesdeficient. Moreover, state governments have neglected some older food craft

30

institutes and they no longer have enough modern equipment to provide goodquality training for craft courses at the basic level. One solution is to increasethe

number of institutes in some parts of the country. The curriculum couldalso be upgraded. The National Council may have to step in and offeracademic

assistance, because local authorities do not have the capability. Thefee structure must be revised if the institutes are to be self-sufficient any timesoon. State and central government participation is needed in order toimprove the quality of these institutes.

(j) There is an obvious need to upgrade the capabilities of theNational Council so that it can respond to the new challenges and problems.There should be more interactions between the Council and the institutes ofhotel management and the food craft institutes. The Council needsgovernment assistance to gain cooperation from academic organizations sothat they can contribute to the hospitality training sector.

(k) Human resource development efforts cannot rely indefinitely ongovernment funding, especially after the recent restructuring of the economy.A funding system should be set up to ensure continuation of activities. Theprivate

sector could contribute more to the training efforts. The tourismindustry must support the existing hotel management institutes and food craftinstitutes.

B. Travel tourism sector

It is difficult to present a clear picture of the travel tourism sector inview of the fragmented nature of the industry and its infant status. Theexisting training infrastructure is comparatively new and the demands on thesystem have yet to assert themselves.

There is a definite need for greater interaction between the industryand the Indian Institute of Travel Tourism Management at Gwalior. Theindustry should be able to provide feedback and meet the demand for trainedmanpower. The ITTMM will be enabled to adjust its courses in keeping withthe requirements of the industry. Job opportunities for trained personnel mustbe the highest priority.

The ITTMM should be considered the central agency forrecommending training courses on travel and tourism to its chapters, the state

31

institutes of travel and tourism management as well as the universitiesoffering courses in travel and tourism. The regulating bodies overseeinghigher education should accept ITTMM as the expert organization in thisfield.

The Ministry of Tourism should assist ITTMM to complete thetraining infrastructure so that there may be it fully-equipped model centralinstitution to oversee trainin~ in travel and tourism. A blueprint for futureexpansion of institutes of travel tourism should be developed in order thatfewer institutions are set up as a sudden response to problems withoutplanning. This should start with a study of manpower requirements in thesector covering the next five, 10 and 15 years.

Given the nature of the travel tourism industry in India, there is aneed to focus on the training requirements of the owner-operators, in additionto

the requirements of the staff. There is a need to introduce more courses fordevelopment of entrepreneurs, aimed at family-owned businesses.

With the growth of computer use and networking tools such as theInternet, there should be efforts to expose owners and employees to the use ofthese

modem technologies to enhance the quality of business services andmaximize the potential for tourism development. The industry will be helpedto

gain access to a new group of tourists as the Internet is an increasinglypopular tool for publicizing travel information and travel planning in themajor tourism markets. The ITTM should train owners to appreciate the needfor automation and the advantages of modem facilities. The o~eri; must alsoappreciate the importance of providing insurance to their customers.

In addition to the business opportunities in value-added products likeinsurance, the owners should be educated about the need for sustainabletourism,

ecotourism, nature tourism and health tourism. Exploring newopportunities in tourism should be a theme for all tourism training, supportedby case studies and adequate research. Another focus of training should beupgrading the quality of services. Other important issues include financialand profitability analysis, standards of services, marketing, automation,communication and information. Regular courses for entry level and in-service staff should be organized for the staff in state and central govemmentagencies. The gove~ents should help in revising the rules for promotionand recruitment by including computer, language and other skills in tourism

32

as important qualifications. Guide training also needs to be better organized.There should be a system to assess the requirements for regional guides andto address their training needs in a more orderly fashion. A regularprogramme should be installed to upgrade existing guides.

A system of joint training should be organized to improvecoordination with other departments concerned with tourism, like airlines,the Archeological Survey of India and state wildlife departments. Valuabletraining materials and information has been developed by the South AsiaIntegrated Programme, including standards, curricula, teaching materials andtesting systems for the travel and tourism sector. The training could includetourist guides, travel agencies operators and tour operators. Joint trainingefforts should be extended to international collaborations as well.

Specialized training institutions like the National Institute of WaterSports, Goa, the Gulmarg Winter Sports Project and the Indian Institute ofSkiing and Mountaineering need support to upgrade their infrastructure andtraining facilities without delay. The NIWS has already announced plans todevelop its campus in collaboration with the private sector in order to be self-supporting. The IISM should be upgraded, since it helps create a reservoir ofskills in adventure tourism, an area where India has a comparative advantage.

Universities that offer travel and tourism programmes require someassistance, since their students lack practical experience, which could lead tounemployment. The IITTM has provided initial inputs to start these courses,but there is still room for more inputs and assistance.

There is a need to take a very serious view of human resourcedevelopment in the tourism sector. Since there are many groups involved,there should be a coordination council to oversee developments. TheNational Human Resource Development Committee, chaired by theSecretary of Tourism, was initially set up to supervise the South AsiaIntegrated Human Resource Development Project. This committee could beexpanded to include representatives of the various trade and industryassociations, experts, nominees from involved organizations1ike the Ministryof Labor and other organizations in order to give it a broader base. Thiscommittee should be authorized to function as an empowered committee totake final views about various requirements pertaining to human resourcedevelopment in the tourism sector.

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