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BACKGROUND

DOCUMENT

TOURISM STAKEHOLDERS’ CONFERENCE

SUSTAINABLE TOURISM THROUGH

JOINT ACTION

August 07, 2012 – Hotel Ashok, Chanakyapuri, New Delhi

09:00am – 02:00pm

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BACKGROUND DOCUMENT

TOURISM STAKEHOLDERS’ CONFERENCE

SUSTAINABLE TOURISM THROUGH JOINT ACTION

INDEX

S.No Content Page

1 Growth of Indian Tourism and its Latent Potential 3

2 India ‘Plenty to See’ Challenges & Opportunities 3

3 Objective of Tourism Stakeholders’ Interaction 3

4 Expected Outcome of the Workshop 3

5 Major Issues of Sustainability in Tourism & Indicators 4

6 Overview of Tourism Stakeholder Landscape 5

7 Sustainable Tourism –India Context 5

8 Overall Tourism Stakeholder Landscape: Role & Responsibilities 6

9 India Tourism Stakeholder Landscape: An Overview 6

10 Industry & Travel Trade Associations 7

11 Tourism Stakeholder Landscape-Non-mainstream Tourism (Concerns and Discussion points) 8

12 Tourism Value Chain & Tourism Landscape 9

13 Grey Areas in Tourism Value Chain –Non-mainstream Tourism 10

14 Tourism Diversity in India & Destination Life Cycle 11

15 Concerns and Discussion Points 12

16 Towards Sustainable Tourism 13

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__________________________________________________________________________________________________________

Growth of Indian Tourism and its Latent Potential

The World Tourism Organisation (WTO) forecasts the Travel & Tourism Industry in India to grow by 8% per annum, in real terms,

between 2008 and 2016. Foreign exchange earnings from tourism alone could show annualized growth of 14% during the same

period. The strength of Indian tourism industry lies in the diversity of its product offerings. This has been substantiated by a study

conducted by ‘The Gallup Organization’, for the Ministry of Tourism, Government of India entitled, ‘Evaluation study in selected

overseas market, 2007’. The study observed that, one of the prime motivating factors for tourists visiting India is, ‘PLENTY TO SEE’.

India: ‘PLENTY TO SEE’: Challenges and Opportunities

The ‘Plenty to See’ scenario offers both opportunities and challenges. The opportunity lies in tapping the vast diversity of tourist

attractions across the country. The challenges involved are also as diverse and vary from state to state. Some areas of intervention

have been highlighted in the paper prepared by the Planning Commission (12th Five Year Plan). The paper states the need to adopt a

‘pro-poor tourism’ approach aimed at increasing the net benefits to the poor from tourism, and ensure that tourism growth contributes

to poverty reduction. It also highlights the need to develop a comprehensive set of strategies for a diversity of actions, from macro to

micro level, including product and infrastructure development, marketing, branding and promotion, planning, policy and investment.

Objective of the Tourism Stakeholder’s Interaction

In line with the recommendation of the Approach Paper on Tourism of the Planning Commission, a one day tourism stakeholder’s

workshop is being organized to understand the inherent challenges and look at opportunities to harness the latent potential of the

Indian tourism industry in a sustainable manner. The workshop intends to bring on board the various industry associations, travel trade

associations, NGOs, and other tourism stakeholders to explore areas of collaboration based on sectoral expertise and possible joint

actions.

The subsequent chapters highlight the role being played by different tourism stakeholders who are directly or indirectly associated in

the tourism value chain. The background paper also tries to capture the destination life cycle of the mainstream tourism products and

the inherent need for tourism product diversification.

The workshop will be focusing on the following three topics apart from deliberating upon other tourism concerns and areas of joint

collaboration

1. Deterioration of Destinations due to Inadequate Infrastructure Planning, Education and Awareness

2. Impediments to Tourism as a Vehicle for Greater Income and Employment Generation

3. Environment Issues and Concerns—Green Tourism, Natural and Built Heritage

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Expected Outcomes of the Workshop

1. Identification and Prioritization of Key Areas of Intervention

2. Identification of Relevant Lead Agencies/Organizations for Interventions

3. Agreed Joint Work Plan

Major Issues of Sustainability in Tourism and Indicators

Economic Socio-Economic Institutional

National Domestic

Contribution

Leakages Employment Community/Stakeh

olders involvement

Culture Tourism

Strategies

Monitoring

and

assessment

Regulations Customer

Relations

Measures to maximize

economic benefits to

destinations

Business

establishments offering

tourist services and

owned by locals as a

percentage of all

business

establishments

Income multiplier for

the tourism sector as

estimated in an input-

output table

Tourism

development

frequently brings

with it demands

for goods and

services which are

not produced in

the local economy

and then sourced

outside of the

local area, often

internationally,

and only a small

proportion of the

expenditure

remains in the

local economy

Tourism generates

different types of local

cash income, like

1. Wages from formal

employment

2. Earnings from

selling goods,

services, or casual

labour (e.g. food,

crafts, building

materials, guide

services)

3. Dividends and

profits arising from

locally-owned

enterprises

4.Collective income:

this may include

profits from a

community-run

enterprise, dividends

from a private sector

partnership and

land rental paid by an

investor

Consultation with

destination

stakeholders prior to

and during tourism

developments to

ensure sites are

socially acceptable

Policies and

actions in place

(by operator) to

accommodate

cultural customs,

traditions and

practices of staff

throughout the

organization

1. Completion of

national strategy

for sustainable

tourism with

regular up-dates

on progress (e.g.

annual / bi-

annual)

2.Development

of regional

tourism strategy

to deal with

trans-boundary

tourism issues,

including

environmental

pollution

1. Measures

to control and

monitor tour

operators,

tourism

facilities, and

tourists in any

area

2. Adoption

of

Sustainability

Impact

Assessments,

Environmenta

l and Social

Audits, prior

to and during

tourism

development

and

operations

Introduce or

enforcement

of

regulations

to ensure

sustainabilit

y in trade

practices,

environment

, cultural

protection

Tools and

measures used by

reporting

organization to:

raise the

awareness of

consumers on

suppliers’/

destinations

environmental,

Social land

economic

performance; on

sustainable

holiday making.

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An Overview of the Tourism Stakeholder Landscape: Role & Responsibilities

At the Global Level

The concept of sustainable tourism is increasingly gaining importance at the global level.

International governments and private organizations are focusing on developing tourism in a

sustainable manner. Some of the key organizations and there initiatives include.

Economic and Social

Commission for Asia

and Pacific (ESCAP)

Action for sustainable tourism development in Asia and the Pacific region

WTO Tourism Satellite Account for economic impact assessment

WTTC Green Globe environment awareness program

WTTC India Chapter Manifesto for India

PATA Code for Environmental conduct

IH&RA Environmental Action Pack for Hotels and Environment Good Practices in

Hotels

IOTO Principal for costal zone management

WTO Indicators for sustainable tourism management and carrying capacity

assessment

APEC/PATA Code for sustainable tourism

Sustainable Tourism- India Context

The United Nations Environment Programme (UNEP) and UNWTO brought out a publication

entitled. ‘Making Tourism More Sustainable – A Guide for Policy Makers’. This lists the following

aims of an agenda for sustainable tourism:

Economic Viability Local Prosperity Employment Quality Social Equity

Visitor Fulfillment Local Control Community Wellbeing Cultural Richness

Physical Integrity Biological Diversity Resource Efficiency Environmental Purity

Agencies like UNWTO and UNEP along with some other stakeholders have been promoting the

concept of the Global Sustainable Tourism Criteria (GSTC). These criteria have been evolved after

several consultations with global players. At present the criteria are limited only to the

Accommodation and Tour Operators sectors and work has begun on Destinations sector also.

Interactions have taken place in India also where the criteria of sustainable tourism have been

adapted to the local conditions as is part of the GSTC brief. These rest on the bedrock of the GSTC

principles and will be officially launched as the Sustainable Tourism Criteria of India (STCI).

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Overall Tourism Stakeholder Landscape: Role & Responsibilities

The overall stakeholder landscape under which the tourism industry operates can to a certain extent

be categorized into the following:

1. International Institutions

2. Government both at national, state and local level

3. Non Government Organizations

4. Business

All these stakeholders carry out a diverse range of functions and actions that directly or indirectly

affect the tourism industry.

International institutions have a substantial focus on minimizing the negative impacts of tourism and

support sustainable development. There is also considerable focus on interagency cooperation and

coordination in an effort to ensure adherence to international conventions and agreements.

At the national level, directions are provided to the industry by bringing out national strategies.

Since tourism in India is a state subject, respective state governments also develop respective

tourism strategies and also provide legal frameworks under which these strategies can be

implemented both by the public and the private sector.

Non Government Organizations (NGOs) provide platforms for voicing tourism concerns, support the

industry players and also help the host community to ensure equitable and sustainable use of

resource as well as regulate sharing of benefits from tourism.

Under the term “Business”, come a wide range of tourism service providers, who constantly monitor

the tourism market, government policies, national and international conventions, voices and

concerns of the host community, etc and constantly improvise, adapt, innovate, diversify to function

optimally under the given set of circumstances.

India Tourism Stakeholder Landscape: An Overview

Ministry of Tourism GOI

Other Ministries

Environment & Forest /Urban Dev/Rural Dev/MEA/Health/Civil

Aviation/Finance/HRD & Edu/Culture/Planning

State Govt State Govt State Govt State Govt

Other State Ministries

Travel

Trade

National Trade National Travel Trade

State Trade Associations State Travel Trade Associations

Travel

Trade

Travel

Trade

DESTINATION LEVEL

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The tourism stakeholder landscape has the Ministry of Tourism, Government of India at the apex,

the public sector playing a significant role by ensuring adequate infrastructure either directly, or

through public private partnership. The scenario replicates itself at the state level also. Tourism

being a multispectral activity is characterized by multiple service providers, and growth of the

tourism sector cannot be attained unless the issues related to all the sectors are addressed

simultaneously

The 12th

Five Year Plan prepared by the Planning Commission has given a major thrust in this

direction and is promoting tourism as a means of economic growth and social integration of the

country. The role of the government in tourism development has been redefined from that of a

regulator to one of a catalyst. Apart from marketing and promotion, there has been a felt need for

tourism development plans to focus on integrated development through effective partnership with

various stakeholders.

India Tourism Stakeholders Landscape

(Industry Associations/Travel Trade Associations)

Industry Associations Objectives/Mission/Vision Membership

Base/Coverage

To carry forward our initiatives in support of rapid, inclusive

and sustainable growth that encompasses health, education,

livelihood, governance and skill development.

FICCI

To enhance efficiency and global competitiveness of Indian

industry and to expand business opportunities both in

domestic and foreign markets through a range of specialised

services and global linkages

2,50,000 companies &

Regional Chambers

300 Chambers and Trade

Association ASSOCHAM Empower Indian enterprise by inculcating knowledge that will

be the catalyst of growth in the barrier less technology driven

global market and help them upscale, align and emerge as

formidable player in respective business segments. 3,00,000 Direct and

Indirect members

11 States

1,600 direct members

45,000 indirect members

PHD CHAMBERS Catalyst in the promotion of industry, trade and

entrepreneurship. PHD Chamber, through its research-based

policy advocacy role, positively impacts the economic growth

and development of the nation. 150 Associate members

Travel Trade Association

To co-ordinate with Ministry of Tourism and other related

Central and State Ministries in their endeavor of creating the

three essential pre-requisites for Domestic Tourism

Development in the areas of improvement of facilities.

Guaranteeing safety and security for travelers.

Association of Domestic

Tour Operators of India

(ADTOI)

A) "SUVIDHA" B) SURAKSHA" & C "SOOCHNA".

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TAAI TAAI aims at the development of the travel and tourism

industry in India by constantly improving the standard of

service and professionalism in the industry so as to cater to the

needs of the travelers and tourists from within India and

overseas.

The Indian Association of

Tour Operators (IATO)

IATO interacts closely with the Government on all critical

issues affecting the Tourism Industry in India with the highest

priority to tourism facilitation. It interacts closely with all

Government Ministries / Departments, Chambers of

Commerce and Industry, Diplomatic Missions etc. It acts as

the common medium between the decision makers and the

industry, and presents the complete perspective to both sides,

synergizing their common agenda of tourism facilitation.

4000

Adventure Tour

Operators Association of

India

Create awareness about the immense potential for adventure

tourism in India and to harness this potential in a safe,

sensitive and environment friendly manner.

150 +

Hotels & Restaurants

Federation of Hotel and

Restaurant Association of

India

FHRAI is the voice of the Hospitality Industry and provides

an interface between the industry, political leadership,

academics, international associations and other stakeholders.

India Heritage Hotel

Association

140 heritage hotel membership

India Tourism Stakeholder Landscape for Non-Main Stream (Off Beat Destinations)

Observations- Concerns & Discussion Points

The overview of the tourism stakeholder landscape both global, national and state level indicates the

following:

1. A wide range of institutions/organizations/agencies have been actively involved with one

sector of the tourism industry that includes Tour Operators, Travel Agents and Hotels

personnel.

2. At the state level a diversity of models are active. Apart from the state government’s role in

operating state owned hotels, its major role has been in facilitating and supporting tourism

development by creating required infrastructure and services.

3. The state tourism diversity and offerings is marketed primarily by the State Tourism

Development Boards and to a certain extent by the private sector.

4. At the national level, umbrella promotional programs like the ‘Incredible India’ campaign are

carried out by the Ministry of Tourism, Government of India. The success of the campaign

both nationally as well as and internationally has induced state governments to utilize the

platform and promote there tourism products under the umbrella brand.

5. Taking the argument that the core competence of India’s tourism offerings lies in ‘Plenty to

See’. A deficiency is observed in terms of support institutions for the travel trade operators,

operating in non-main stream destinations.

6. The deficiency of support institutions in non-mainstream destinations is often reflected by:

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� Lack of adequately trained human resource in the different segments of services

(Accommodation, travel operations, catering, guides, experience providers, etc)

� Limited infrastructure

� Publicity and marketing

The Tourism Value Chain and the Tourism Stakeholder Landscape

A tourism value chain starts well before the actual journey is initiated by a traveler. The typical

tourism value chain has been pictorially depicted as under. The picture depicts the movement of a

traveler, its associated service providers and the different kind of services provided. Although the

tourism value chain follows the same pattern, the services offered in the map below is focusing on

the service providers of the non-main stream tourism destinations or in the tourism parlance, the off-

beat destinations.

Once a decision is taken to travel to a certain destination, which again is influenced by a variety of

factors, a series of service providers come into the picture. Some of the service providers are at the

place from where the journey is started and the others are at the destination.

Some of the tourism service provider’s services offered and at which level have been tabulated

below:

TRAVEL STAGES

Travel Stage Offered as a service Physical Level

Travel Information Publishers of travel guides, media,

tourist boards

Source area/country

Intermediary Service Travel Agency Source area/country

Travel Preparation

& Organization

Tour operator (Outgoing) Source area/country

Travel to Destination Transportation companies (Airlines) Source area- Destination

Organization of travel at

the destination

Incoming agencies Destination area/country

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Travel Information

at Destination

Tourist board, Incoming agencies,

hotels,

regional information offices

Destination area/country

Inland Transportation Transportation companies

(Airlines, bus companies, car rental

etc)

Destination area/country

Accommodation Hotel, motels, lodges, etc Destination area/country

Food Operators of accommodation,

restaurants, etc

Destination area/country

Local Transportation Local transportation companies Destination area/country

Touristic

activities/programs

Courriers, tour guides, Equipment

rental, etc.

Destination area/country

Other Activities Destination area/country

Return Trip Transportation company Destination Source /Area

Travel follow up activities Individually organized/via tour

operator

Source area/country

Grey Areas in the Tourism Value Chain (None Mainstream/Off Beat Destination)

India is a ‘planned destination’. To elaborate further, India comes across as a choice of destination,

when the vacation is more ‘in-depth’. One of the reasons why India has that positioning in the

market currently is because of the ‘variety’ that the country has to offer. Travelers to India find it

difficult to cover the length and the breadth in a short span of time, therefore the trend which is

emerging and which is articulated by the directors is that India is a preferred destination when the

trip is more planned from the travelers.

Taking into consideration the tourism stakeholder’s landscape in India, it has been observed that

although a good number of institutions/organizations/associations are catering to the concerns and

needs of tourism. The area that still requires substantial inputs is in the areas where the actual

tourism experience happens. These are:

A). Marketing and Advising Customer: Many tourism enterprises run by the local community do

not have marketing linkups with main operators, lack marketing knowledge and capacity, and

may also lack -

B) Transport in the Area

C) Provision of accommodation that suits the landscape and culture of the area

D) Provision of services- Lack of required skill sets

Some of the key areas requiring interventions as per the value chain map have been depicted in the

map below:

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Tourism Diversity in India and the Destination Life cycle:

Any tourism

destination has a

life cycle of its

own. A new

destination is often

explored and over

a period of time as

the destination

becomes popular

this is reflected by

the gradual

increase in foot

falls and overnight

stays.

Stag 1: Exploration

The destinations in an explorative stage are marked by features like low number of overnight stays.

This is primarily due to limited number of boarding and lodging facilities, access issues, etc. In the

Indian context it has been observed that visitors both domestic and foreigners are seeking new

unexplored or lesser known destinations.

Stag 2: Involvement

Over a period of time the destination starts attracting more and more people. At this stage the

involvement of the host community and also the service providers increases, which is marked by

subsequent improvement in infrastructure (both tourism and basic infrastructure).

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Stage 3: Development

The next stage in the destination life cycle comes what is referred to as ‘Development’. This is

generally marked by the increase in the footfall of both domestic and foreign visitors, further

consolidation and expansion of the services provided.

Stage 4: Maturity

Finally a destination reaches a stage where tourist inflow stabilizes and does not show further

increment. A wide range of factors can be responsible for this.

The life cycle of a destination from exploration to maturity may vary from place to place and the

offering, and can also be reflected by the change in tourism trends.

It can be observed that majority of the main stream destination of India are at a stage of development

or maturity. This can be further substantiated by tourism statistics. Apart from the tourism statistics,

the tourism sector also provides some indicators or signals that can substantiate this. The growth of

satellite destinations is one of most visible signals that a destination is reaching its maturity stage.

In Uttarakhand the most prominent hill stations are Mussoorie and Nainital over the years these two

hill stations have seen a remarkable growth in both visitations and also the subsequent development

in tourism infrastructure. Of late, satellite locations around these two destinations have started

emerging indicating that these particular hill resorts have reached a stage of maturity or are nearing

that stage.

Concerns and Discussion Points

Tourism has proved to be an engine of growth in many economies in the world. It provides for the

generation of income, wealth and employment, and helps in the sustainable development of remote

areas. In India, tourism provides direct employment to 9 million people and indirect employment to

another 13 million persons, thus providing a livelihood option to 22 million people. It contributes an

estimated 2.4% to the Gross National Product. Its contribution to the economies of states like

Rajasthan, Goa and Kerala are significant. Although beginning to be understood for its potential to

provide for development in India, tourism still remains a sector that needs serious attention.

Unplanned tourism has proved to also have negative impacts on the society as well as the

environment. It has been criticized for contaminating indigenous cultures as a result of changing

value systems, resulting in social maladies like drug addiction, child prostitution, etc. A far more

widespread negative impact is caused by mass tourism in environmentally fragile areas like

mountains, hills, deserts and coastal regions.

The growing concern in the context of mass tourism that can result in harm to the social, cultural

and environmental fabric of the destination has given rise to the concept of sustainable tourism.

Only tourism where the tourists, the service providers, the host community and authorities are well

informed and prepared to harness tourism as an engine of growth can yield sustainable results.

Sustainable Tourism minimizes environmental damage, maintains resource diversity, renewability

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and productivity over time and seeks to mitigate the inevitable negative effects of tourism on local,

regional and global levels.

Towards Sustainable Tourism

Sustainable travel focuses on three equally important areas:

1. Energy and Sustainable Tourism

2. Conservation and Sustainable Tourism

3. Community and Sustainable Tourism

1. Energy and Sustainable Tourism

Energy consumption has become the leading cause of raising environmental awareness in the past

few years because of greenhouse gas emissions and dependence on foreign oil.

From a tourism industry standpoint energy use encompasses:

• Fuel used to reach a destination

• Energy used by a property to keep it running

• Amount of energy needed to construct the property

Airline Industry

Airlines in particular release an incredible amount of carbon into the atmosphere. One

international flight can contribute more to an individual’s carbon footprint than every other activity

for a year. The airline industry has taken a very proactive approach in reducing emissions through a

combination of increased efficiency and design innovation has actually cut emissions by more than

13% since 2000. The industry as a whole, led by visionaries such as Sir Richard Branson, is

exploring new fuel options and continues to seek solutions to the amount of emissions produced by

flying.

Hotels

Hotels seeking to become more efficient may initiate small incremental changes such as the use of

insulation and glass to cut down on heating and cooling or may seek large-scale solutions like

the use of solar or wind power. Simple economics are usually the deciding factor in how energy

efficient a hotel actually is; it can be so expensive to initiate large-scale changes to existing buildings

that it is simply not economically feasible for the property. The greening of the building and

construction industries have brought design innovation and corresponding efficiency to many new

tourism developments and have initiated industry-wide change.

2. Conservation and Sustainable Tourism

Travel for the purpose of viewing wildlife, natural attractions and indigenous cultures, has become

the fastest growing segment of global tourism and is the major source of income for countries such

as Kenya, Costa Rica and Nepal. Tourism growth at such destinations can however lead to the loss

of wildlife habitat from growing population pressures and the construction of tourism facilities,

degradation of environment and water due to improper waste management, loss of cultural identity

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and traditional land-use strategies by indigenous cultures and unsustainably large demands for

energy from new development.

The conservation of natural and cultural resources, on both a local and global scale, is at the

forefront of any sustainable travel plan and is the major focus of most industry organizations.

Pristine destinations are extremely susceptible to being “loved to death” as money flowing into local

economies initiates the unchecked development of lodging and other support industries that require

natural resources, energy and water to grow. Ironically, history has shown us that the development of

tourism in natural areas can actually destroy the very qualities of the destination that brought

travelers in the first place.

3. Community and Sustainable Tourism

Perhaps the most important and most often overlooked aspect of sustainable travel is the impact on

local communities. However, thoughtfully planned and responsibly initiated tourism growth

can alleviate poverty, increase local pride and ownership and create sustainable alternatives to

destructive use of resources. For any touristic enterprise to succeed in the long term, a percentage of

the revenue needs to be directed to local communities. Communities need to become active players

not only in support roles but also in every stage of enterprise development. The simplest way to

ensure that communities benefit is to stay in locally owned hotels and use local tour operators,

guides and transportation. Fair trade policies insist on adequate wages, working conditions and

medical care for tourism professionals and compensation for the use of locally owned resources.

Education plays a very large role in sustainable tourism for both the traveler and the local population

and should be incorporated into every development plan.

Conclusion

There are substantial opportunities for the promotion of sustainable tourism in India. However, the

national and respective state policy and planning frameworks need to be aligned for this.

________________________________________________________ Reference: 1. Report of the working group on Tourism 12

th Five Year Plan, Min of Tourism, GOI

2. Earth Summit 2002 Economic briefing

3. GIZ-Uttarakhand Regional Economic Development Program- Value Chains

4. Evaluations study in selected overseas market- MOT, GOI

Special thanks to Mr.SanjayBahti (GIZ), Mr.Mandip Singh Soin, Ms.Seema Bhatt and Mr.Brij Bhardwaj

for compiling, editing and finalization of this document on behalf of ESOI.