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Transcript of 04 fte handicrafts
Survey of Foreign Tourists’ Expenses on Handicrafts
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National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 1 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org
Survey of Foreign Tourists’ Expenses on Handicrafts
CONTENTS
Acknowledgement iiStudy Team iiiExecutive Summary iv - vList of Tables vi
List of Figures vii Page No
Chapter I
About the Survey 1
Chapter II
Profile of Foreign Tourists
9
Chapter III
Expenditure Pattern of Foreign Tourists
15
Chapter IV
Macro Economic Implications
48
Annexure 53
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Survey of Foreign Tourists’ Expenses on Handicrafts
ACKNOWLEDGEMENT The National Productivity Council (NPC) is grateful to the Department of Tourism, Ministry of Tourism and Culture, Government of India for entrusting NPC with the responsibility to carry out the Survey on Foreign Tourists’ Expenses on Handicrafts. We are thankful to Shri Amitabh Kant, Joint Secretary, Shri J. Dash, Joint DG (MR) and Shri D. D. Mathur , Dy. Director (MR) of Ministry of Tourism & Culture for their continuous encouragement during the conduct of the survey. We are also thankful to the officials of Airports Authority of India and Bureau of Civil Aviation Security for granting permission to carry out the survey inside the international airports at New Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad. We also record our thanks to the Central Cottage Industries Emporium as well as emporia run by various state governments in the six cities mentioned above for their kind co-operation in the smooth conduct of the survey. A large number of star hotels had helped us by allowing the survey team to contact foreign guests (tourists) at the exit lobbies. We are thankful to the managements of all these hotels. Lastly, a number of colleagues from NPC’s regional offices in New Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad were involved in this task and without whose co-operation the survey could have not been completed within the short time at the team’s disposal. We are thankful to them. New Delhi Dr. N. K. Nair 19th Dec., 2002 Group Head (Economic Services)
STUDY TEAM
Core Members
N. K. Nair Group Head (Economic Services)
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Survey of Foreign Tourists’ Expenses on Handicrafts
K. P. Sunny Dy. Director (Economic Services)
Utpal Chattopadhyay
Dy. Director (Economic Services)
Rajesh Sund Asst. Director (Economic Services)
D. J. Rao
Asst. Director (Economic Services)
Survey Team
New Delhi Mumbai Kolkata K. P. S. Tomer, Dy. Director O. P. Joshi, Director S. Pal, Director Rajesh Bajaj, Dy. Director M. Ashok, Dy. Director P. Chakraborty, Dy. Director S. K. Dwivedi, Asst. Director B. Badole, Asst. Director S. Mallick, Dy. Director D. Bandyopadhyay, Asst. Director
Gautam Roy, Dy. Director
M. Natarajan, Asst. Director Chennai BangaloreS. Dey, Asst. Director S. Sivakumar, Dy. Director V. Rajesh Dy. Director R. Rajhamany, Trg. Officer A.Muguntharagan,
Asst. Director Hyderabad G. Hema, Dy. Director Executive Summary The Ministry of Tourism & Culture, Government of India assigned National Productivity Council (NPC) to carry out a Survey of Foreign Tourists’ Expenses on Handicrafts in India. The main objective of the survey was to find out how much the visiting foreign tourists spend on handicrafts (total & item-wise) while they stayed in India. The ultimate aim of this task was to construct the Craft/ Tourism Index (defined as per tourist per day expenditure on handicrafts) for India as suggested by the UNESCO. The field level survey was launched by NPC during Sept. – Oct., 2002 in six major cities of India viz. New Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad. These cities act as the major arrival and exit points for an overwhelming majority of the foreign tourists visiting India. The foreign tourists leaving India through these six cities were approached with a structured questionnaire to gather information on their spending on handicraft items.
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Survey of Foreign Tourists’ Expenses on Handicrafts
About 47% of the total respondents were interviewed at the departure lounges of international airports and another 28% from the star hotels. The remaining (25%) tourists were contacted at the handicraft emporia/shops. Only those tourists who had completed their purchases from India were interviewed. The purchases on behalf of the companies the tourist(s) work are not considered in the survey. A total of 12,250 foreign tourists from the six cities were interviewed. Following are the major findings of the Survey:
Respondent tourists from about 100 nations had visited India during the Survey. Among the tourists contacted during the survey, 58% are males and 42% females. About 70% of the respondents are in the age group 25-44 years. A large number of respondents (36%) are in business and more than one fourth (27%) are in service, while 10% are students. Income wise, 43% of the respondents belonged to ‘more than average’ category and another 32% were ‘average’. Only 3% of the respondent tourists had ‘very high’ income level and 2% belonged to the ‘below average’ category. As observed in the survey, the highest inflow of tourists was from USA (11%), followed by UK (10%), France (7%), Japan (7%), Germany (6%) and Australia (5%).
The average duration of stay by a respondent foreign tourist is 20 days. The student
tourists and tourists below 25 years of age had spent the highest number of days. Tourists with very high income stayed for the shortest duration.
According to survey findings, on an average a foreign tourist spends about Rs. 12,187 on handicrafts. The female tourists spent more than their male counterparts. Income level of the respondent tourists has a direct relationship with expenditure. Profession wise business persons are spending more on handicrafts than the others.
Silk is the most bought (value) item among the handicrafts, as 23% of the total expenditure was on this product alone. Other handicraft items of high values bought by respondent tourists include metal & jewellery, cotton & wool textiles and leather products.
In terms of per capita daily expenditure the expenses on handicrafts had shown an increasing trend among tourists aged between 25 and 54 years and it declined there after. The UNESCO’s Craft/ Tourism Index is found to be Rs. 609 ( about US $ 13).
Majority of the purchases were made using Indian Rupee. A sizeable number had used US Dollar and credit cards to finance handicraft purchases. The usage of Euro outnumbered Pound Sterling. Americans as a group spent the highest amount on
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Survey of Foreign Tourists’ Expenses on Handicrafts
handicrafts, contributing 18% of the total expenses. Tourists from UK, France, Australia, Germany, Canada etc. had also spent significant amounts on handicrafts in India. These are also among the major export destinations for Indian handicrafts.
Total expenditure on handicrafts by all the foreign tourists has been estimated at Rs. 29,851.54 million in 2001, which constitutes about 18% of the total value of production of handicraft items in India in 2001-02. This also forms approximately 44% of the total handicrafts exports (excluding hand knotted carpets) from India during the year 2001-02. The amount spent on handicrafts by foreign tourists can be considered as deemed export of handicrafts.
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.7 Item wise total expenditure on handicrafts by Respondents 31 Table 3.8 Distribution of Respondents (%) acc. to total expenditure and age 32 Table 3.9 Distribution of Respondents (%) acc. to total expenditure and sex 33 Table 3.10 Distribution of Respondents (%) acc. to total expenditure and profession 34 Table 3.11 Distribution of Respondents (%) acc. to total expenditure and income 35 Table 3.12 Distribution of Respondents (%) acc. to total expenditure and city of exit 36 Table 3.13 Distribution of Respondents acc. to per capita exp. & no. of days stayed 37 Table 3.14 Distribution of Respondents acc. to per capita daily exp. on handicrafts 38 Table 3.15 Distribution of Respondents (%) acc. to per capita daily expenditure and age 39 Table 3.16 Distribution of Respondents (%) acc. to per capita daily expenditure and sex 40 Table 3.17 Distribution of Respondents (%) acc. to per capita daily expenditure &
profession pprofessionprofession 41
Table 3.18 Distribution of Respondents (%) acc. to per capita daily expenditure and income
42
Table 3.19 Distribution of Respondents (%) acc. to per capita daily exp. & city of exit 43 Table 3.20 Total expenditure on handicrafts acc. to nationality of respondents 44 Table 3.21 Top ten spending nations on Indian handicrafts 45 Table 3.22 Country wise product wise expenditure on handicrafts by respondents 46 Table 3.23 Currencies used by respondents for purchase of handicraft products 47 Table 4.1 Movement of WPI: Oct. 2001 to Oct. 2002 49 Table 4.2 Estimate of total expenditure on handicrafts by foreign tourists 50 Table 4.3 Turnover of Indian handicrafts industry 51 Table 4.4 Exports of handicrafts from India: 1992-93 to 2001-02 (Rs. Crores) 52
List of Tables Table No. Title
Page No.
Table 1.1 City and location wise Distribution of Survey Tourists 4 Table 2.1 Age & Sex Profile of Foreign Tourists contacted during the Survey 9 Table 2.2 Distribution of Respondents acc. to Profession 10 Table 2.3 Distribution of Respondents acc. to Income 11 Table 2.4 Distribution of Respondents acc. to Days of Stay in India 12 Table 2.5 Distribution of Respondents acc. to Country of Origin 13 Table 3.1 Distribution of tourists (%) acc. to number of days stayed and age 25 Table 3.2 Distribution of tourists (%) acc. to number of days stayed and sex 26 Table 3.3 Distribution of tourists (%) acc. to number of days stayed and profession 27 Table 3.4 Distribution of tourists (%) acc. to number of days stayed and income 28 Table 3.5 Distribution of tourists (%) acc. to number of days stayed and city of exit 29 Table 3.6 Total expenditure on handicrafts by Respondents 30
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Survey of Foreign Tourists’ Expenses on Handicrafts
List of Figures Figure No. Title
Page No.
Figure 1 Distribution survey respondents based on place of Interview 5 Figure 2 Distribution respondents based on City 6 Figure 3 Distribution of tourists based on Profession 10 Figure 4 Distribution of tourists based on Country of Origin (top ten countries) 14 Figure 5 Distribution of respondents based on per capita Expenditure class 19 Figure 6 Per Capita Daily Expenditure and Age 20 Figure 7 Per Capita Daily Expenditure and Profession 21 Figure 8 Per Capita Daily Expenditure and Family Income 22
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Survey of Foreign Tourists’ Expenses on Handicrafts
CHAPTER I
ABOUT THE SURVEY 1. Background India draws more than 2.5 million foreign tourists annually. The primary factor that
motivates majority of the foreign tourists to visit India is the country’s bountiful
nature, snow-covered mountains in the Himalayas, colorful deserts in Rajasthan,
beautiful beaches in Goa, Kerala and Orissa and tropical lush green forests spread
far and wide in most parts of the country. Beside the nature, the country’s rich
cultural heritage has been a tremendous attraction to a large number of foreign
visitors. The diversity in climate, religion, language and traditions has always been a
matter of curiosity for the people of other countries. So are India’s exquisite
handloom and handicraft products, which are admired by the foreign tourists.
Purchase of Indian handicrafts is therefore a common practice generally noticed
among the visiting foreigners.
The handicrafts industry in India occupies an important place in the national
economic scene. Firstly, the sector provides direct and indirect employment to a
large number of persons like the artisans and also those who are engaged in the
supply of inputs and in trading. According to an estimate, handicrafts industry
currently employs more than 76 lakh persons in India. Besides high employment
potential, the significant contributions of the sector are felt in terms of high value
addition from a relatively low capital investment and a steady source of foreign
exchange earnings. Available data from Export Promotion Council for Handicrafts
show, in 2001-02, total exports of handicrafts (excluding handknotted carpets) from
India stood at Rs.6769.50 crores. The economic importance of handicrafts sector is
also evident from the huge size of this industry. Turnover of the handicrafts industry,
as estimated by Development Commissioner for Handicrafts, is in the range of Rs.
16,320 crores in 2001-02.
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Survey of Foreign Tourists’ Expenses on Handicrafts
In this background the Department of Tourism, Government of India, had assigned
National Productivity Council (NPC) to carry out a survey of foreign tourists in order
to find how much the tourists spend on handicrafts during their stay in India. The
ultimate outcome of the survey is to facilitate construction of the Craft/ Tourism Index
for India as has been suggested by the UNESCO. The Index would find the
expenses on crafts per tourist per day (in US $) of the foreign visitors to India. The
present report from NPC is the result of the above mentioned survey of foreign
tourists.
2. Objectives of the Study
To identify the handicraft products/ items purchased by foreign tourists
To find out the total expenditure incurred by foreign tourists on handicraft products during their stay in India
To find the currencies used for the purchase of such items
To find country of origin, age & sex profile, occupation and family income of
the foreign tourists
To construct the UNESCO Crafts/ Tourism Index for India 3. Methodology The survey used the same definition of foreign tourists followed by the Department
of Tourism, Govt. of India while compiling tourist statistics. According to this
definition a foreign tourist is a person visiting India on a foreign passport, staying at
least 24 hours in the country for the purpose of (i) leisure (recreation, holiday, health,
study, religion and sport); (ii) business, family, mission and meeting. Transit
passengers not staying at least a day in India were not covered by the survey.
Similarly, minor children accompanying the adult family members (foreign tourists)
were not considered for the survey. NRIs were also excluded from the scope of the
survey
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Survey of Foreign Tourists’ Expenses on Handicrafts
The foreign tourists visiting India were interviewed from three places viz. (i)
international airports, (ii) hotels and (iii) shopping complexes, particularly the
handicrafts emporia and similar establishments selling handicraft items. As
mentioned at the outset, India receives about 2.5 million foreign tourists every year.
Keeping in view the time and cost constraints of the survey, it was decided that
about 0.5% of the total foreign tourists coming to India annually i.e. approximately
12,000 tourists would be interviewed. A large number of foreign tourists were
approached randomly from the above three places for data collection through a
structured questionnaire. The questionnaire sought information mainly on tourists’
purchase of handicraft items (quantity & value) during their stay in India apart from
some personal data on tourists like the country of origin, age, sex, income etc. The
business purchases, defined as purchases on behalf of companies they represent
were excluded. A copy of the questionnaire used for canvassing during the field
survey is appended in Annexure. It is important to note that the purchases of items
by the tourists were not necessarily from the city in which they were contacted. This
is especially the case in regard to those who were contacted at the international
airports. The items might include those which were bought during their travel
anywhere in the country including the major handicrafts centers.
3.1 Field Survey During the field survey about 12,250 foreign tourists were interviewed by the NPC
survey team, against the target of 12,000. The survey was conducted during Sept.
11 – Oct. 25, 2002, simultaneously in six major cities of India namely New Delhi,
Mumbai, Chennai, Kolkata, Bangalore and Hyderabad. About 47% of the total
contacts were made in the international airports of the six cities mentioned above,
while the remaining interviews were held in the hotels (28%) and shops/ emporia
(25%) (Fig.1). In the airports the tourists were interviewed at the departure lounges
and in hotels the contacts were at check-out points. In the handicraft emporia and
other shops selling handicraft products only those foreign tourists were interviewed
whose departure from India was scheduled within the next twenty-four hours. In all
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Survey of Foreign Tourists’ Expenses on Handicrafts
the cases, first it was ascertained whether the tourist’s purchase of handicrafts was
complete and data were gathered only from those who had completed purchase
from India. The distribution of respondents across the cities (Fig. 2) and the place of
contact are given in Table 1.1.
Table1.1: City & Location wise Distribution of Survey Respondents
Airports Hotels Shops/Emporia Total City
Target Achieve-ment Target Achieve-
ment Target Achieve-ment Target Achieve-
ment
New Delhi 2400
2399 1200 1709 1200
1250 4800 5358
Mumbai 1800
1826 900 883 900
903 3600 3612
Chennai 960
962 480 427 480
407 1920 1796
Kolkata 420
185 210 200 210
220 840 605
Bangalore 240
267 120 124 120
128 480 519
Hyderabad 180
158 90 102 90
100 360 360
Total 6000
5797 3000 3445 3000
3008 12000 12250
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Survey of Foreign Tourists’ Expenses on Handicrafts
Figure 1: Distribution of Survey Respondents based on Place of Interview
Market25%
Hotels28%
Airports47%
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Survey of Foreign Tourists’ Expenses on Handicrafts
Figure 2: Distribution of Respondents based on City
Mumbai29%
Bangalore4%
Chennai15%
New Delhi44%
Hyderabad3%
Kolkata5%
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Survey of Foreign Tourists’ Expenses on Handicrafts
There have been some minor variations in the number of tourists responding to the
survey among the cities as well as across places of contact when compared to the
targets set. While in Delhi, Mumbai and Bangalore the total number of respondents
exceeded the targets, in two of the remaining cities, viz. Chennai and Kolkata the
achievement fell short of their respective targets. In Hyderabad, however, the survey
team could achieve the targets. Similarly, the number of contacts inside airports fell
marginally below its target, which was fixed at 50% of the total. That the inflow of
foreign tourists during the period of survey was found to be less than expected in
some of the cities was the main reason for not mustering the required number in
these places.
3.2 Data Analysis Data collected through the structured questionnaire were scrutinized thoroughly
before being entered into computer systems. Such data were once again checked to
detect possible entry errors. Finally, corrected data were analyzed by computers
using Microsoft Excel and SPSS packages.
4. Limitations
Progress of the survey was affected adversely by a number of factors, most of which
are beyond the control of the survey team. Firstly, the survey was conducted during
middle of Sept. and October, which is generally considered to be a lean season in
India for foreign tourists. The inflow of foreign tourists was further low on account of
the anticipated disturbances during the anniversary of the Eleventh Sept. incident in
New York. The disturbance in Karnataka as a sequel to abduction of a political
leader by the notorious sandal wood smuggler and subsequently the Cauvery
disputes affected tourist inflow to Bangalore unfavorably. As a result, contacts with
adequate number of tourists in Southern locations where, interviews were held, were
unfavorably affected leading to delays in the completion of the survey.
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Survey of Foreign Tourists’ Expenses on Handicrafts
Secondly and perhaps most importantly was the delay in the procurement of entry
passes for airports. As per plan, 50% of the total contacts were scheduled to be
made in the departure lounges of international airports. The international airports
being high security zones, issue of entry passes involved procedures and scrutiny by
the Airports Authority of India. Therefore, the survey team had to wait for some time
after completing its job in the shops and hotels. The permission to carry out the
survey inside airports was granted only for one week, which was short considering
the large number of tourists to be interviewed, particularly in places like Delhi and
Mumbai.
Finally, the availability of foreign tourists for interview was constrained by the time at
their disposal, compatibility of language and also willingness to co-operate by the
tourists. All tourists contacted by the team did not agree for the interview for a variety
of reasons. Some of the tourists contacted during the survey though provided total
expenses on handicrafts, could not recollect its item wise break -ups. All these made
the task of the investigation difficult and also delayed the completion of survey by a
few days.
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Survey of Foreign Tourists’ Expenses on Handicrafts
CHAPTER II
PROFILE OF FOREIGN TOURISTS
As mentioned in the earlier chapter the Survey had covered a total of 12250 foreign
tourists from six cities. Among these, 7145 (58%) were males and the remaining
5105 (42%) were females. The age distribution of the respondent tourists displays a
skewed pattern with more than 70% of them falling in the range of 25-44 years of
age. Table 2.1 shows the age and sex distribution of the foreign tourists contacted
during the survey.
Table 2.1 : Age & Sex Profile of Foreign Tourists Contacted during the Survey
No. of respondents Total Age (Years) Male Female No. Percent
Less than 25 535 602 1137 9.28
25-34 2090 2025 4115 33.59
35-44 2997 1724 4721 38.54
45-54 1192 530 1722 14.06
55-64 268 164 432 3.53
65 & above 63 60 123 1.00
Total 7145 5105 12250 100.00
The visiting tourists were asked about their professions. It was found that a large
number of respondents (36%) are business men/women. While 27% of them are in
service, more than 10% are found to be students. The break up of professions of the
foreign tourists interviewed during survey is given in table 2.2 (Fig. 3).
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 2.2: Distribution of Respondents According to Profession.
Profession No. of
RespondentsPercentage of Respondents
Service 3361 27.44
Business 4456 36.38
Industry 850 6.94
Agriculture 150 1.22
Students 1247 10.18
Others 2186 17.84
Total 12250 100.00
Figure 3: Distribution of Respondents based on Profession
7%1%
10%
18%28%
36%
ServiceBusinessIndustryAgricultureStudentsOthers
The respondent foreign tourists were also arranged according to their income levels.
Income, being a highly personal and hence very sensitive information, the tourists
were asked to categorize themselves in to Below Average, Average, More than
Average, High and Very High. Since no uniform norm can be applied to all the
countries having widely varying per capita GDP, the information on income was
collected according to the respondent’s own judgment with respect to his/her own
country’s situation. It was observed that among the foreign tourists interviewed, the
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Survey of Foreign Tourists’ Expenses on Handicrafts
highest number (43%) was from the ‘more than average’ category. More than 3960
(about 32%) respondent tourists reported that they had only ‘average’ income.
About 20% of the them were from the ‘high’ income category. Only 2% of the
respondents had ‘below average’ income and about 3% belonged to the ‘very high’
income category (Table 2.3).
Table 2.3 : Distribution of Respondents According to Income
Income Group No. of
RespondentsPercent of
Respondents
Below Average 271 2.21
Average 3962 32.34
More than Average 5240 42.78
High 2458 20.07
Very High 319 2.60
Total 12250 100.00
It was found that about 33% of the foreign tourists responding to the survey had
spent a week or less in India and another 27% had stayed for periods ranging
between 8 days and two weeks. About 28% of the visiting foreigners had spent
between 15 days and one month. Only 10% of the respondents had stayed beyond
one month and up to 90 days, while about 2% had spent above 90 days. Detailed
information on the number of days spent by foreign tourists is presented in table 2.4.
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 2.4 : Distribution of Respondents According to Days of Stay in India
Days Stayed (No.)
No. of Respondents
Percent of Respondents
1-2 439 3.58
3-7 3638 29.70
8-14 3279 26.77
15-20 2017 16.46
21-30 1469 11.99
31-45 692 5.65
46-90 496 4.05
91-180 137 1.12
181 & above 83 0.68
Total 12250 100.00
The respondent tourists were asked about his/her country of origin. It was observed
during the survey that India respondent tourists came from a large number of
countries spread almost in all the continents. During the 45 days of survey it was
found that foreigners from more than 100 countries had visited India. The maximum
inflow of tourists, as observed in the survey, was from USA (10.87%), followed by
UK (9.98%), France (7.40%), Japan (6.91%), Germany (6.00%) and Australia
(5.03%). The names of the countries and the number of foreigners coming from
those countries are given in Table 2.5 (Fig. 4).
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 2.5 : Distribution of Respondents According to Country of Origin
Foreign Tourists
Foreign Tourists
Country
No. % age
Country
No. % age USA 1331 10.87 Nepal 127 1.04
UK 1223 9.98 New Zealand 120 0.98 France 907 7.40 Denmark 120 0.98
Japan 846 6.91 Belgium 117 0.96
Germany 735 6.00 Nigeria 103 0.84 Australia 616 5.03 Kenya 99 0.81
Sri Lanka 568 4.64 Ireland 98 0.80
Italy 454 3.71 Sweden 98 0.80 Singapore 381 3.11 Taiwan 88 0.72 Korea 347 2.83 Bangladesh 80 0.65 Spain 265 2.16 Poland 76 0.62
Canada 257 2.10 Finland 73 0.60 Malaysia 250 2.04 Norway 72 0.59
Netherlands 243 1.98 Brazil 61 0.50
China 242 1.98 Philippines 58 0.47
Russia 228 1.86 Hong Kong 54 0.44
Switzerland 208 1.70 Saudi Arabia 50 0.41
South Africa 185 1.51 Mexico 49 0.40
Thailand 176 1.44 Mauritius 48 0.39
UAE 175 1.43 Iran 47 0.38
Israel 142 1.16 Austria 45 0.37
Indonesia 129 1.05 Others 659 5.38
Total 12250 100.00
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Survey of Foreign Tourists’ Expenses on Handicrafts
Figure 4: Distribution of Respondents based on Country of Origin (Top Ten Countries)
1331
1223
907
846
735
616
568
454
381
347
0 200 400 600 800 1000 1200 1400
USA
UK
France
Japan
Germany
Australia
Sri Lanka
Italy
Singapore
Korea
Cou
ntry
of O
rigin
Number of Tourists
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Survey of Foreign Tourists’ Expenses on Handicrafts
CHAPTER III
EXPENDITURE PATTERN OF FOREIGN TOURISTS
During the survey the concentration was on to collect information regarding
spending on handicraft items by the visiting foreign tourists during their stay in India.
The information sought from the foreign tourists included number of items bought,
amount spent on a variety of handcraft products etc. For smooth data collection and
analysis handicraft items were grouped into 12 major heads viz. textiles, clay,
bamboo/rattan, wood, metal & jewelry, natural fiber, leather, paper & paper products,
glass, local raw materials, mixture of raw materials and others. The textiles
comprised silk, cotton, wool and others. As mentioned earlier, the company or
business purchases of the foreign tourists were not considered for data collection
and analysis.
In this chapter the expenditure by foreign tourists on handicrafts would be examined
with respect to a number of determinants such as the age, sex, profession, income,
city of exit and duration of stay. The total as well as per capita daily expenditure
incurred by the tourists on handicrafts are worked out separately and arranged
according to the determinants mentioned above so as to examine their influence, if
any, on the expenditure patterns. The duration of stay by the tourists is also
examined with respect to age, sex, profession, income and city of exit.
3.1 Period of Stay in India
The information on number of days stayed by the tourists according to their age,
sex, profession, income etc. are presented in tables 3.1-3.5. The following may be
observed:
On an average a respondent tourist had spent about 20 days in India.
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Survey of Foreign Tourists’ Expenses on Handicrafts
The highest number of days is spent by respondent tourists below 25 years of
age, while for those belonging to 35-44 years category the duration of stay in
India is the lowest (17 days). Tourists in the age group 55-64 years stayed for
about 25 days.
The duration of stay in India was marginally higher for female tourists (20.33
days) compared to their male counterparts (19.92 days).
The student tourists spend more days (34) than the others. The agriculturists
and industrialists had stayed in India for longer duration compared to
businessmen and from service sectors.
The income level of the respondent tourists and their stay duration are seen
to have inverse relationship. Tourists having ‘below average’ income had on
an average spent the highest number of days (33), while the tourists from
‘very high’ income category stayed for lower number of days (17). Most of the
‘below average’ category of respondents are the students. Since India’s is
one of the lowest cost of living by world standards, even the ‘below average’
income tourist (according to the income standards in his country) will be able
to afford a comfortable stay in the country.
3.2 Total Expenditure by Tourists
Total expenditure on handicrafts varied widely across the categories of tourists.
While 426 (3.48%) tourists did not buy any handicraft item, about 811 (6.63%) had
spent over Rs. 25,000 on various handcraft items during their stay in India. The
modal expenditure class is found to be Rs. 2,001 -5,000. About one fifth of the total
tourists interviewed during the survey had incurred total expenditure exclusively on
handicraft items beyond Rs. 5,000 and up to Rs. 10,000. A small percentage
(1.44%) of the tourists had bought handicrafts worth Rs. one lakh or more (Table
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Survey of Foreign Tourists’ Expenses on Handicrafts
3.6). Collectively 12250 respondent tourists had spent a total of Rs. 149.30 million
on handicrafts during their stay in India. The per capita expenditure is found to be
Rs. 12,187.
3.3 Item-wise Expenditure
Item wise spending also displays large variance. Among the 12 groups of
handicrafts listed earlier, the highest spending was on silk products (23.13%),
followed by metal & jewelry (19.97%), cotton textiles (15.75%), wool textiles (6.19%)
and leather products ( 5.75%). There was low spending on items like natural fiber
(0.43%), glass (0.60%), bamboo products (0.64%) and mixture of items (0.89%).
The detailed data on handicraft items and the amount spent on those items by
foreign tourists are given in Table 3.7. The data presented in this table do not relate
to all the tourists interviewed during the survey, since about 1000 respondents could
not provide item wise break-up of their expenditure even though they could give the
total expenses on handicrafts.
3.4 Average Expenditure Per Tourist Tables 3.8 – 3.13 present per capita expenditure incurred by foreign tourists
arranged according to the age, sex, profession, income, number of days stayed and
city of exit. The following may be noted:
Per capita expenditure per respondent tourist is the highest in the age group
45-54 years (Rs.16333), followed by the age group 35-44 years (Rs.12686)
and 25-34 years (Rs.11655). Per capita expenditure was the lowest in the
age group 65 and above.
Female tourists spend (Rs.12897) more than their male counterparts
(Rs.11680).
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Survey of Foreign Tourists’ Expenses on Handicrafts
Business tourists spend the highest on handicrafts (Rs.17392) among all
categories of respondents. Industrial categories of tourists spend much less
(Rs.11703), followed by agricultural tourists (Rs.9978) and tourists from
service category (Rs.9902). As expected student tourists incur an
expenditure only of Rs. 4893 on handicrafts in per capita terms.
Per capita expenditure is directly related to income categories. While those in
the ‘below average’ income bracket incurred an expenditure of Rs.6472, ‘high’
and ‘very high’ categories reported high levels of expenditure on handicrafts,
between Rs. 18242 and Rs.33171.
Per capita expenditure was found to be the highest among those who stayed
beyond two weeks but up to three weeks (Rs.18755).
3.5 Per Capita Per Day Expenditure
As per the survey data, respondent tourists’ stay in India varied from one day to
more than six months. The purchases of handicraft items also varied widely, ranging
from zero to more than one lakh rupees. Table 3.14 presents per capita per day
expenditure by respondent tourists. It can be seen that 3673 tourists (30%) had
spent between Rs. 250 and Rs. 750 per day on handicraft products (Fig. 5). About
20% of them had spent above Rs. 100 and up to Rs. 250 and almost an equal
number (18%) spent between Rs. 750 and Rs. 2000 per day. More than 3% of the
tourists had incurred expenditure on handicrafts exceeding Rs. 5000 per day.
UNESCO’s Craft/ Tourism Index defined as expenses on handicrafts per foreign
tourist per day is found to be Rs. 609 (approx. US $ 13 1).
1 Exchange Rate 1US$ = Rs. 48.30 as on Oct. 2002
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Survey of Foreign Tourists’ Expenses on Handicrafts
Figure 5: Distribution of Respondents based on Per capita Expenditure Class
01000200030004000
1-50
50.1-
100
100.1
-250
250.1
-750
750.1
-2000
2000
.1-50
00
5000
.1-15
000
1500
0.1 &
>
No Spe
nd.
Expenditure Class
Num
ber o
f Tou
rists
It would be worth to see whether the daily expenditure on handicrafts had varied
across age, sex, profession, income level of the respondent tourists. The information
on daily expenditure with respect to the above determinants is listed in tables 3.15 -3.19 (also Figs. 6-8). The main findings, which are in conformity with the trend
observed in case of total expenditures, are as follows:
In all age categories the maximum number of respondent tourists belonged to
the daily expenditure class ranging between Rs. 250 and Rs. 750 per day,
except in the case of “less than 25” and “65 & above” slabs where people are
seen spending over Rs. 100 and up to Rs. 250 per day.
Daily expenditure had shown an increasing trend for tourists having age
between 25 and 54 years, after which it started declining.
Like total expenditure, the daily expenditure also increased with rise in the
income of the tourists.
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Survey of Foreign Tourists’ Expenses on Handicrafts
In terms of profession too, the tourists’ daily expenses on handicrafts
repeated the same trend as that of the total expenditure. Businessmen spent
the most, while students spent the least. Service professionals and
industrialists had spent almost same amount and it was higher than the
amount spent by agriculturists and others.
Figure 6: Per Capita daily Expenditure and Age
0
100
200
300
400
500
600
700
800
900
>25 25-34 35-44 45-54 55-64 65 & >
Age group
Dai
ly E
xpen
ditu
re (R
s)
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Survey of Foreign Tourists’ Expenses on Handicrafts
Figure 7: Per Capita Daily Expenditure and Profession
0
200
400
600
800
1000
1200
Service
Busine
ss
Indus
try
Agricu
lture
Studen
ts
Others
Profession
Dai
ly E
xpen
ditu
re (R
s)
.
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Survey of Foreign Tourists’ Expenses on Handicrafts
Figure 8: Per Capita Daily Expenditure and Family Income
0
500
1000
1500
2000
2500
BelowAverage
Average Morethan
Average
High VeryHigh
Family Income
Dai
ly E
xpen
ces
(Rs)
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Survey of Foreign Tourists’ Expenses on Handicrafts
3.6 Nationality wise Expenditure
The survey data on expenses on handicrafts were organized according to the
nationality of the tourists. It was observed that US nationals have spent the highest
amount (Rs. 26.76 million) on Indian handicrafts and their combined expenditure
formed about 18% of the total expenditure on handicrafts by all the 12,250 visiting
foreign tourists interviewed during the survey. The other higher spenders include
nationals from U.K. (12%), France (8%), Australia (6%), Germany (5%), Canada
(4%) etc. Tourists from U.A.E., Italy, Japan and Switzerland reported a reasonably
high level of expenses with each country having a share of about 3% in total
expenditure. While for seven countries (Singapore, Sri Lanka, Netherlands, Nigeria,
South Africa, Ireland & Korea) the share in total expenses was 2% each, another
nine countries (Malaysia, Spain, China, Belgium, Denmark, Russia, Indonesia, New
Zealand & Saudi Arabia) had a share to the tune of 1%. Table 3.20 lists nationality
wise total as well as per capita expenditure on handicrafts by foreign tourists from 26
leading nations (each having a share of 1% or more in total expenses). According to
survey findings, these 26 countries collectively contributed more than 80% of both
the total expenses on handicrafts and total tourists inflow in India.
The expenditure pattern of foreign tourists discussed above is in conformity with the
trend in total export of handicrafts from India. It may be noted that during 2001-02,
USA was the major destination for Indian handicrafts exports with a share of 30% of
the total value (excluding hand knotted carpets). The other countries having
significant share in Indian handicrafts exports include UK (11%), Germany (10%),
France (5%), Italy (4%), Japan (4%), Canada (3%) and Australia (2%). As may be
noticed from table 3.21 these eight countries absorbing 69% of total handicraft
exports from India are the same nations whose citizens had contributed major part of
the total amount spent (59%) on handicraft products while on tour to India.
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Survey of Foreign Tourists’ Expenses on Handicrafts
In terms of per capita expenditure, however, the highest spenders on handicrafts are
found to be the tourists from UAE (Rs. 28,376), followed by Saudi Arabia (Rs.
26,955), Nigeria (Rs.25073), Ireland (Rs. 24687) and Canada (Rs. 21,204). The US
tourists who had the highest share (18%) in total expenses reported much less per
capita expenditure (6th rank). The Japanese tourist was seen to incur the least
expenses (Rs. 5249) on handicrafts. Tourists from ten nations (Indonesia, New
Zealand, Singapore, Malaysia, China, Spain, Russia, Korea, Sri Lanka & Japan) had
reported per capita expenditures, less than the average for all countries, Rs. 12,187
(table 3.20).
The product wise expenditures by foreign tourists from the same 26 nations are
presented in table 3.22. The data in this table represent the percentage(s) of the
total expenditure (on handicrafts) a respondent tourist spends on a particular item. It
can be seen from the table that silk, metal & jewelry, cotton textiles, leather products
and wool textiles remained the most bought handicraft items by the foreign tourists
visiting India irrespective of their country of origin. For tourists from South Africa,
Belgium, Sri Lanka, Nigeria and Italy silk alone contributed more than 30% of their
total expenditures on all handicrafts. The UAE tourists had a strong preference for
Indian cotton textiles as they incurred more than 60% of their total expenditure on
this item. Similarly, nationals from Switzerland and Nigeria also displayed preference
for cotton textile (handicraft) products from India. Metal & jewelry items were bought
in high values (forming 25% or more of the total purchase) by tourists from the
Netherlands (55%), Russia (34%), Canada (29%) and France (26%).
3.7 Currency Used During the survey the foreign tourists were asked to provide information on currency
used by them while purchasing various handicraft items in India. The summary of
information on currency used is presented in table 3.23. It can be seen that, as
expected, Indian rupee (INR) was the main currency used by respondent tourists
while buying the handcraft products. The next frequently used currency was the US
dollar. In spite of being a relatively new currency Euro has outperformed Pound
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Survey of Foreign Tourists’ Expenses on Handicrafts
Sterling in almost all products. A significant number of tourists are also seen to use
credit cards at the time of purchase.
Table 3.1 : Distribution of Tourists (%) acc. to Number of Days Stayed and Age
Age category (Years) Days Stayed (No.) <25 25-34 35-44 45-54 55-64 65 &
above
Total (Nos.)
1-2 3.87 3.67 3.58 3.60 2.55 1.63 439
3-7 25.15 30.38 31.84 27.64 22.92 19.51 3638
8-14 21.99 25.47 28.87 27.00 27.08 29.27 3279
15-20 16.71 16.43 15.42 18.41 19.68 17.07 2017
21-30 12.23 13.22 10.17 11.50 17.82 25.20 1469
31-45 5.19 4.96 6.35 6.16 4.17 4.07 692
46-90 8.97 4.01 2.99 3.89 4.40 1.63 496
91-180 4.22 1.17 0.40 0.99 0.93 0.81 137
181 & above 1.67 0.70 0.38 0.81 0.46 0.81 83
Total (Nos.) 1137 4115 4721 1722 432 123 12250
% to total 9.28 33.59 38.54 14.06 3.53 1.00 100.00
Average 31 20 17 20 25 19 20
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.2 : Distribution of Tourists (%) acc. to Number of Days Stayed and Sex
Days Stayed (No.) Male Female Total (Nos)
1-2 3.82 3.25 439
3-7 31.25 27.52 3638
8-14 26.79 26.74 3279
15-20 15.72 17.51 2017
21-30 11.49 12.69 1469
31-45 5.23 6.23 692
46-90 3.85 4.33 496
91-180 1.11 1.14 137
181 & above 0.74 0.59 83
Total (Nos.) 7145 5105 12250
% to total 58.33 41.67 100.00 Average 19.92 20.33 20.09
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.3: Distribution of Tourists (%) acc. to Number of Days Stayed and Profession
Profession Days Stayed (No.) Service Business Industry Agriculture Students Others
Total (Nos.)
1-2 3.48 4.82 2.59 2.00 2.17 2.52 439
3-7 31.48 33.64 19.06 16.67 23.82 27.31 3638
8-14 26.78 28.82 25.65 24.67 21.65 26.08 3279
15-20 15.86 16.07 17.06 25.33 16.84 17.15 2017
21-30 11.13 9.58 17.88 16.67 14.27 14.32 1469
31-45 6.22 3.97 13.06 7.33 6.82 4.53 692
46-90 3.84 2.45 3.29 4.00 8.18 5.58 496
91-180 0.80 0.38 0.71 2.00 4.01 1.56 137
181 & above 0.42 0.27 0.71 1.33 2.25 0.96 83
Total (Nos.) 3361 4456 850 150 1247 2186 12250
% to total 27.44 36.38 6.94 1.22 10.18 17.84 100.00
Average 18 16 24 25 34 23 20
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.4: Distribution of Tourists (%) acc. to Number of Days Stayed and Income
Annual Family Income Days Stayed (No.) Below
Average Average More than Average High Very
High
Total (Nos)
1-2 3.69 3.28 3.49 4.56 1.25 439
3-7 19.19 28.02 31.37 30.96 22.26 3638
8-14 19.56 25.42 26.85 29.13 30.09 3279
15-20 15.87 17.26 15.90 15.87 21.00 2017
21-30 17.34 12.62 11.79 10.21 16.61 1469
31-45 8.49 6.61 5.08 4.96 5.96 692
46-90 7.75 4.29 4.26 3.01 2.51 496
91-180 6.64 1.67 0.73 0.57 0.31 137
181 & above 1.48 0.83 0.53 0.73 0.00 83
Total (Nos.) 271 3962 5240 2458 319 12250
% to total 2.21 32.34 42.78 20.07 2.60 100.00
Average 33 22 19 18 17 20
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.5: Distribution of Tourists (%) acc. to Number of Days Stayed and City of Exit
City Days Stayed (No.) Delhi Mumbai Chennai Kolkata Hyderabad Bangalore
All India (Nos.)
1-2 5.34 2.13 2.17 4.63 0.00 1.73 439
3-7 37.20 25.00 29.06 15.21 6.94 19.85 3638
8-14 23.89 31.89 25.28 18.68 14.44 43.93 3279
15-20 10.36 21.01 19.77 25.95 18.06 24.28 2017
21-30 9.63 13.18 13.47 16.03 29.17 6.36 1469
31-45 8.29 2.80 2.23 5.12 18.06 2.12 692
46-90 4.37 2.71 3.84 8.93 10.00 0.96 496
91-180 0.63 0.69 2.45 3.80 2.22 0.58 137
181 & above 0.30 0.58 1.73 1.65 1.11 0.19 83
Total (Nos.) 5358 3612 1796 605 360 519 12250
% to total 43.74 29.49 14.66 4.94 2.94 4.24 100.00
Average 17 19 27 31 32 15 20
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.6: Total Expenditure on Handicrafts by Respondents
Per Capita Expenditure. Class
(Rs.) No. of
Respondents Percent Average Exp. (Rs.)
1- 500 637 5.20 343
501-1000 1000 8.16 813
1001-2000 1735 14.16 1594
2001-5000 3335 27.22 3475
5001-10000 2454 20.03 7442
10001-25000 1852 15.12 15629
25001-50000 475 3.88 34319
50001-100000 160 1.31 71066
100001 & above 176 1.44 335410
No spending 426 3.48 0
Total 12250 100.00 12187
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.7: Item wise Expenditure on Handicrafts by Respondents
Item Item wise Exp. (Rs)
Per capita
Exp.(Rs)% to total
Exp. No.of Resp.
incurred expenditure
Textiles Silk 34534294 7409 23.13 4661 Cotton 23506987 5321 15.75 4418 Wool 9239398 5250 6.19 1760 Others 5809262 4563 3.89 1273 Clay 2377445 1570 1.59 1514 Bamboo 953170 1418 0.64 672 Wood 5768142 2091 3.86 2759 Metal & Jewellery 29807345 6040 19.97 4935 Natural Fibre 644410 1159 0.43 556 Leather 8585426 2685 5.75 3197 Paper & Paper products 1799247 1362 1.21 1321 Glass 900364 1144 0.60 787 Local raw material 2011636 2395 1.35 840 Mixture of raw mater. 1336048 3267 0.89 409 Others 8891473 2755 5.96 3227 Item break up not available 13131837 4129 8.80 ** Total Exp. 149296483 12187 100.00 12250 ** About 1000 respondents could not provide item wise expenditure
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.8: Distribution of Respondents (%) acc. to Total Expenditure and Age
Age category (Years) Per Capita Exp.Class
(Rs.) <25 25-34 35-44 45-54 55-64 65 & above
Total (Nos.)
1- 500 9.67 5.52 3.62 3.89 8.80 19.51 637
501-1000 13.81 9.26 6.19 7.14 7.41 12.20 1000
1001-2000 20.49 15.87 12.05 11.73 13.19 17.07 1735
2001-5000 31.31 28.17 26.65 24.80 25.69 19.51 3335
5001-10000 12.31 18.59 22.83 22.65 15.28 12.20 2454
10001-25000 7.21 12.47 18.17 18.00 19.21 4.88 1852
25001-50000 1.50 3.77 4.55 4.24 3.24 0.81 475
50001-100000 0.70 1.46 1.10 1.80 1.85 0.81 160
100001 & above 0.79 1.39 1.44 2.03 1.62 0.00 176
No spending 2.20 3.52 3.39 3.72 3.70 13.01 426
Total (Nos.) 1137 4115 4721 1722 432 123 12250
% to total 9.28 33.59 38.54 14.06 3.53 1.00 100.00
Av. Expenditure 7106 11655 12686 16333 11092 3622 12187
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.9: Distribution of Respondents (%) acc. to Total Expenditure and Sex
Per capita Exp. Class (Rs.) Male Female Total (Nos) 1- 500 5.25 5.13 637
501-1000 8.26 8.03 1000
1001-2000 14.11 14.24 1735
2001-5000 27.92 26.25 3335
5001-10000 20.14 19.88 2454
10001-25000 14.14 16.49 1852
25001-50000 3.15 4.90 475
50001-100000 1.27 1.35 160
100001 & above 1.47 1.39 176
No spending 4.30 2.33 426
Total 7145 5105 12250
% to total 58.33 41.67 100.00
Av. Expenditure 11680 12897 12187
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.10: Distribution of Respondents (%) acc. to Total Expenditure and Profession
Profession Per Capita Exp.Class
(Rs.) Service Business Industry Agriculture Students Others Total (Nos.)
1- 500 5.83 3.66 4.35 4.67 8.34 5.95 637
501-1000 9.16 5.83 7.41 5.33 13.63 8.74 1000
1001-2000 15.56 10.73 14.59 12.00 20.53 15.37 1735
2001-5000 28.53 24.78 25.29 27.33 32.88 27.72 3335
5001-10000 20.35 21.50 22.59 24.67 13.23 19.12 2454
10001-25000 12.50 19.37 15.76 16.00 8.26 14.09 1852
25001-50000 3.33 5.12 4.71 2.67 0.88 3.66 475
50001-100000 1.04 1.82 1.88 1.33 0.32 1.01 160
100001 & above 1.22 2.40 1.06 0.67 0.24 0.69 176
No spending 2.47 4.80 2.35 5.33 1.68 3.66 426
Total 3361 4456 850 150 1247 2186 12250
% to total 27.44 36.38 6.94 1.22 10.18 17.84 100.00
Av. Expenditure 9902 17392 11703 9978 4893 9593 12187
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.11: Distribution of Respondents (%) acc. to Total Expenditure and Income
Annual Family Income Per Capita Exp. Class (Rs.) Below
Average Average More than Average High Very
High
Total (Nos)
1-500 12.18 6.94 4.54 3.42 2.19 637
501-1000 12.92 10.12 7.73 5.66 6.27 1000
1001-2000 15.50 19.28 12.96 9.36 6.27 1735
2001-5000 26.57 32.00 26.95 21.72 15.36 3335
5001-10000 14.76 15.90 22.23 23.03 16.61 2454
10001-25000 10.70 9.41 16.03 21.28 27.27 1852
25001-50000 2.58 1.92 3.68 6.27 14.11 475
50001-100000 1.11 0.71 1.11 2.16 5.64 160
100001 & above 0.37 0.81 1.30 2.40 5.02 176
No spending 3.32 2.90 3.47 4.72 1.25 426
Total 271 3962 5240 2458 319 12250
% to total 2.21 32.34 42.78 20.07 2.60 100.00
Av. Expenditure 6472 7456 11943 18242 33171 12187
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.12: Distribution of Respondents (%) acc. to Total
Expenditure and City of Exit
City Per Capita Exp.Class
(Rs.) Delhi Mumbai Chennai Kolkata Hyderabad BangaloreAll India (Nos.)
1- 500 3.17 7.78 5.18 12.89 0.28 2.70 637
501-1000 5.58 12.32 7.29 14.21 2.78 5.59 1000
1001-2000 12.34 16.39 15.14 23.64 1.94 11.56 1735
2001-5000 29.38 26.58 27.95 27.60 18.06 12.91 3335
5001-10000 21.87 16.89 21.10 9.09 30.00 25.05 2454
10001-25000 17.34 10.83 13.20 4.96 32.78 28.32 1852
25001-50000 4.16 3.57 2.56 1.32 9.44 6.74 475
50001-100000 1.01 2.05 0.56 0.33 3.06 1.73 160
100001 & above 0.65 2.91 0.17 0.50 1.67 4.62 176
No spending 4.50 0.69 6.85 5.45 0.00 0.77 426
Total 5358 3612 1796 605 360 519 12250
% to total 43.74 29.49 14.66 4.94 2.94 4.24 100.00
Av. Expenditure 9765 17680 6524 4308 16939 24458 12187
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.13: Distribution of Respondents acc. to Per Capita Expenditure and Number of Days Stayed
Days spent by tourists (No.) Per Capita Exp. Class (Rs.) 1-2 3-7 8-14 15-20 21-30 31-45 46-90 91-180 181 &
above Total
1- 500 11.85 6.57 3.20 5.40 4.63 3.32 5.85 4.38 7.23 637
501-1000 8.88 8.36 8.20 8.97 7.01 5.64 10.08 9.49 2.41 1000
1001-2000 13.44 14.54 15.37 13.98 14.91 10.40 8.87 12.41 10.84 1735
2001-5000 21.18 30.13 28.33 24.99 26.62 20.95 24.60 27.74 20.48 3335
5001-10000 13.44 18.77 21.68 20.33 19.67 22.54 20.16 16.79 27.71 2454
10001-25000 6.83 10.50 14.70 18.54 17.90 25.87 19.96 18.25 21.69 1852
25001-50000 2.28 2.89 3.87 3.47 4.29 7.80 6.85 5.11 6.02 475
50001-100000 1.14 1.35 1.25 1.14 1.29 1.88 1.41 1.46 1.20 160
100001 & above 1.82 0.85 1.83 2.28 1.23 1.01 0.60 1.46 1.20 176
No spending 19.13 6.05 1.56 0.89 2.45 0.58 1.61 2.92 1.20 426
Total 439 3638 3279 2017 1469 692 496 137 83 12250
% to total 3.58 29.70 26.77 16.47 11.99 5.65 4.05 1.12 0.68 100.00
Av. Expenditure 9635 8969 12623 18755 11037 13616 10781 9548 11203 12187
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.14: Distribution of Respondents acc. To Per Capita Daily Expenditure on Handicrafts
Respondents Daily Exp. Class(Rs.) No. Percent
1- 50 1113 9.1
50.1-100 1190 9.7
100.1-250 2420 19.8
250.1-750 3673 30.0
750.1-2000 2251 18.4
2000.1-5000 769 6.3
5000.1-15000 266 2.2
15000.1 & above 142 1.2
No Spending 426 3.5
Total 12250 100.00
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.15: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and Age
Age category (Years) Daily Exp. Class (Rs.) <25 25-34 35-44 45-54 55-64 65 &
above
Total (Nos.)
1- 50 21.46 10.04 5.27 6.74 13.43 26.83 1113
50.1-100 16.27 11.23 7.82 7.43 8.56 7.32 1190
100.1-250 23.13 21.51 17.73 18.12 20.60 27.64 2420
250.1-750 22.52 27.70 32.79 33.62 29.63 17.89 3673
750.1-2000 9.76 16.23 22.22 20.79 13.43 5.69 2251
2000.1-5000 2.64 6.34 7.31 5.69 7.87 0.81 769
5000.1-15000 1.50 2.26 2.39 2.26 0.69 0.81 266
15000.1 & above 0.53 1.17 1.08 1.63 2.08 0.00 142
No Spending 2.20 3.52 3.39 3.72 3.70 13.01 426
Total (Nos.) 1137 4115 4721 1722 432 123 12250
% to total 9.28 33.59 38.54 14.06 3.53 1.00 100.00
Av. Expenditure 229 583 746 817 444 191 609
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.16: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and Sex
Daily Exp.Class (Rs.) Male Female Total
(Nos) 1- 50 8.83 9.44 1113
50.1-100 9.36 10.21 1190
100.1-250 19.73 19.78 2420
250.1-750 30.52 29.23 3673
750.1-2000 18.07 18.81 2251
2000.1-5000 5.93 6.76 769
5000.1-15000 2.11 2.25 266
15000.1 & above 1.13 1.19 142
No Spending 4.30 2.33 426
Total (Nos.) 7145 5105 12250
% to total 58.33 41.67 100.00
Av. Expenditure 586 634 609
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.17: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and Profession
Profession Daily Exp.Class (Rs.) Service Business Industry Agriculture Students Others
Total (Nos.)
1- 50 8.99 4.40 9.65 7.33 20.77 12.03 1113
50.1-100 10.24 6.17 11.29 9.33 17.56 11.07 1190
100.1-250 20.83 16.02 21.88 30.67 24.62 21.36 2420
250.1-750 33.23 30.23 30.71 26.67 22.61 28.64 3673
750.1-2000 16.69 24.28 15.88 14.00 9.62 15.19 2251
2000.1-5000 4.67 9.00 4.94 5.33 2.57 5.90 769
5000.1-15000 1.96 3.19 2.47 0.67 0.48 1.37 266
15000.1 & above 0.92 1.91 0.82 0.67 0.08 0.78 142
No Spending 2.47 4.80 2.35 5.33 1.68 3.66 426
Total (Nos.) 3361 4456 850 150 1247 2186 12250
% to total 27.44 36.38 6.94 1.22 10.18 17.84 100.00
Av. Expenditure 550 1087 488 399 144 417 609
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.18: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and Income
Annual Family Income Daily Exp.Class (Rs.) Below
Average Average More thanAverage High Very High
Total (Nos)
1- 50 26.94 12.92 7.65 4.64 4.08 1113
50.1-100 12.92 13.48 8.84 5.49 7.21 1190
100.1-250 19.56 23.60 19.83 14.44 11.91 2420
250.1-750 20.30 30.09 29.43 32.55 26.33 3673
750.1-2000 8.49 11.81 20.92 23.60 26.33 2251
2000.1-5000 6.27 3.26 6.81 8.99 14.11 769
5000.1-15000 1.48 1.31 2.02 3.54 5.33 266
15000.1 & above 0.74 0.63 1.03 2.03 3.45 142
No Spending 3.32 2.90 3.47 4.72 1.25 426
Total (Nos.) 271 3962 5240 2458 319 12250
% to total 2.21 32.34 42.78 20.07 2.60 100.00
Av. Expenditure 196 339 629 1013 1951 609
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.19: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and City of Exit
City Daily Exp.Class (Rs.) Delhi Mumbai Chennai Kolkata Hyderabad Bangalore
All India (Nos.)
1-50 6.25 11.21 10.36 25.62 5.28 2.50 1113
50.1-100 5.82 14.34 10.24 19.34 7.50 6.17 1190
100.1-250 17.25 23.09 20.04 25.29 20.56 14.45 2420
250.1-750 32.40 26.97 32.02 17.36 33.06 31.60 3673
750.1-2000 23.44 13.51 14.64 3.97 23.33 26.20 2251
2000.1-5000 7.63 5.18 4.06 1.98 9.17 10.60 769
5000.1-15000 1.98 2.66 1.56 0.99 0.83 5.20 266
15000.1 & above 0.73 2.35 0.22 0.00 0.28 2.50 142
No Spending 4.50 0.69 6.85 5.45 0.00 0.77 426
Total (Nos.) 5358 3612 1796 605 360 519 12250
% to total 43.74 29.49 14.66 4.94 2.94 4.24 100.00
Av. Expenditure 574 931 242 139 529 1631 609
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Survey of Foreign Tourists’ Expenses on Handicrafts
Table 3.20: Total Expenditure on Handicrafts acc. to Nationality of Respondents
Total ExpenditureCountry
(Rs. Million) %age Tourists
(No.) Per Capita
Expenditure (Rs.) USA 26.76 18 1331 20103 UK 17.58 12 1223 14373 France 11.98 8 907 13211 Australia 8.97 6 616 14555 Germany 7.91 5 735 10756 Canada 5.45 4 257 21204 UAE 4.97 3 175 28376 Italy 4.85 3 454 10681 Japan 4.44 3 846 5249 Switzerland 4.08 3 208 19634 Singapore 3.72 2 381 9752 Sri Lanka 3.57 2 568 6293 Netherlands 3.24 2 243 13333 Nigeria 2.58 2 103 25073 South Africa 2.47 2 185 13326 Ireland 2.42 2 98 24687 Korea 2.42 2 347 6962 Malaysia 2.15 1 250 8593 Spain 2.08 1 265 7851 China 1.98 1 242 8183 Belgium 1.89 1 117 16156 Denmark 1.61 1 120 13430 Russia 1.58 1 228 6913 Indonesia 1.49 1 129 11569 New Zealand 1.36 1 120 11331 Saudi Arabia 1.35 1 50 26955 Others 16.42 11 2052 8001
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Survey of Foreign Tourists’ Expenses on Handicrafts
All Countries 149.30 100 12250 12187
Table 3.21: Top Ten Spending Nations on Indian Handicrafts ( % of Total)
SL. No. Country NPC Survey
Findings (Oct., 2002)
EPCH@ Data on Exports
(2001-02)
1 USA 18 30 2 UK 12 11 3 France 8 5 4 Australia 6 2 5 Germany 5 10 6 Canada 4 3 7 UAE 3 na 8 Italy 3 4 9 Japan 3 4 10 Switzerland 3 2
Total of 10 countries 62 71 @ Export Promotion Council for Handicrafts, na = Not Available Note : Total excludes UAE
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Table 3.22: Country wise Product wise Expenditure on Handicrafts by Respondents (%) Handicraft Product (s)
Country Silk Cotton Wool Other
Text. Clay Bamboo Wood Metal & Jewelery Nat.Fibre Leather Paper
& Pdts Glass Local Raw Matl.
Mix.RawMatl. Others Break up NA Total Exp.
USA 23.14 13.76 7.32 4.88 1.99 0.29 3.48 17.98 0.82 3.50 0.75 0.32 1.70 1.28 4.32 14.46 100.00UK 28.96 9.21 12.74 3.69 1.22 0.25 2.94 18.74 0.30 5.43 0.61 0.43 0.62 0.99 3.37 10.48 100.00France 19.60 20.30 6.60 4.57 1.60 0.37 3.50 25.83 0.34 5.10 1.12 0.34 1.46 0.40 4.84 4.04 100.00Australia 15.28 19.84 4.15 4.64 2.48 0.32 3.77 14.69 0.43 3.80 1.28 0.50 1.13 0.39 7.67 19.61 100.00Germany 21.47 20.76 4.34 2.79 1.80 0.32 4.21 19.43 0.39 9.88 1.24 0.52 0.94 0.52 4.76 6.64 100.00Canada 21.02 17.07 3.44 5.00 0.58 0.36 3.41 29.37 0.15 7.27 0.49 3.16 0.75 0.18 2.41 5.35 100.00UAE 8.86 62.74 1.23 1.18 0.46 0.63 1.39 6.46 0.16 1.45 0.75 0.85 0.28 0.11 9.99 3.47 100.00Italy 30.80 7.71 8.07 3.02 1.46 0.33 6.00 22.79 0.38 7.69 1.82 0.63 1.86 0.12 4.40 2.96 100.00Japan 20.04 9.28 4.96 5.19 2.86 1.60 5.87 23.77 0.55 8.84 1.38 1.17 1.38 0.45 7.47 5.19 100.00Switzerland 22.02 37.57 7.02 1.00 0.42 0.29 1.53 9.75 0.27 5.23 0.37 0.11 0.63 0.24 13.11 0.44 100.00Singapore 21.81 6.41 1.71 3.56 1.93 6.69 2.37 23.01 0.15 12.37 1.99 0.53 1.88 1.14 10.55 3.93 100.00Sri Lanka 44.17 16.38 1.17 2.07 1.19 0.45 2.42 12.84 0.18 4.35 0.95 0.21 3.62 1.06 7.60 1.34 100.00Netherlands 13.62 6.91 3.69 1.23 0.35 0.05 5.60 55.27 0.13 5.48 0.73 0.24 1.16 0.35 4.08 1.11 100.00Nigeria 39.02 30.51 0.82 0.36 0.22 0.01 0.74 17.50 0.08 8.39 0.16 0.17 0.22 0.00 1.34 0.46 100.00South Africa 53.38 4.87 1.98 0.92 1.64 0.21 2.60 13.20 0.76 5.13 0.81 0.61 0.66 0.64 3.22 9.37 100.00Ireland 17.79 4.05 9.40 1.00 0.39 6.39 11.36 16.23 0.12 1.40 10.29 0.33 0.89 9.42 10.59 0.33 100.00Korea 11.59 23.88 2.39 5.37 1.29 0.90 5.84 15.67 0.50 7.04 2.07 0.81 2.38 1.13 9.82 9.31 100.00Malaysia 19.72 13.26 3.68 2.51 0.54 0.24 4.20 24.08 0.30 5.12 0.90 0.99 1.91 3.12 6.11 13.33 100.00Spain 26.94 12.40 9.70 2.23 2.56 0.86 4.87 21.36 0.29 6.23 2.07 0.35 2.43 0.33 4.96 2.43 100.00China 13.49 5.45 1.84 4.31 1.62 1.18 3.47 19.08 1.02 9.29 0.94 1.25 2.39 2.84 4.81 27.01 100.00Belgium 47.40 6.31 3.44 1.90 5.77 0.35 2.68 7.54 0.52 1.96 1.83 0.20 0.37 0.03 19.19 0.51 100.00Denmark 26.27 9.03 13.52 1.82 1.60 0.15 5.63 16.38 0.33 4.55 0.30 0.18 0.69 0.45 19.09 0.00 100.00Russia 15.02 12.11 7.17 2.12 1.80 0.13 2.53 34.06 0.15 10.09 0.83 0.41 1.37 0.26 4.98 6.98 100.00Indonesia 8.37 13.39 2.46 13.97 1.36 0.25 4.30 24.48 0.41 3.37 0.29 0.68 1.08 0.94 5.69 18.98 100.00New Zealand 40.89 5.63 8.08 2.57 2.36 0.37 3.89 13.96 0.14 5.79 4.30 0.55 1.68 0.61 1.54 7.65 100.00Saudi Arabia 35.18 9.23 1.15 1.32 0.18 0.00 8.98 17.26 0.07 16.68 0.52 0.95 0.59 0.81 7.06 0.02 100.00
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Table 3.23: Currencies Used by Respondent Tourists for Purchase of Handicraft Products
Currency Used (Number of purchases) Products
INR US $ Pound Sterling Euro Credit
Card Other
Foreign Currencies
Total
Silk 4200 270 31 39 197 35 4772
Cotton 4058 185 21 28 151 21 4464
Wool 1740 86 12 8 54 15 1915
Others 1175 94 7 25 51 4 1356
Clay 1505 78 2 18 55 7 1665
Bamboo 764 34 2 4 31 2 837
Wood 2446 116 11 19 144 92 2828
Metal & Jewelry 4418 232 31 41 182 64 4968
Natural Fiber 665 34 2 1 18 6 726
Leather 3018 122 17 17 99 14 3287 Paper & Paper products 1307 88 4 22 35 13 1469
Glass 894 20 1 2 36 3 956
Local raw material 824 46 4 17 40 9 940 Mixture of raw materials 460 18 2 7 41 11 539
Others 2866 53 6 37 136 106 3204
Total 30340 1476 153 285 1270 402 33926
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CHAPTER IV
MACRO ECONOMIC IMPLICATIONS As already mentioned earlier, the foreign tourists contacted during the Survey
had spent about Rs. 12,187 per person. For arriving at expenditure on
handicrafts by the total foreign tourists coming to India we relied on the data on
foreign tourists’ arrival in India of Market Research Division of the Department of
Tourism, Govt. of India. According to the latest data available for the year 2001,
India drew 2.54 million foreign tourists in 2001, which was lower than the
previous year’s 2.65 million. Country-wise, during 2001 the highest number of
tourists came from U.K. (16%), followed by USA (13%), Sri Lanka (4.4%), France
(4%), Canada (3.5%), Japan and Germany (both 3.2%). In terms of Survey
findings (Oct., 2002), the maximum number of tourists contacted is from the USA
(10.87%), while U.K. is the close second (9.98%). France, Japan, Germany and
Sri Lanka, which were among the top countries in terms of actual inflow during
2001, are also occupying the top most positions in the respondents’ list as per
the present Survey data (Table 2.5).
The per capita expenditure on handicrafts, as found from the Survey data, when
multiplied by the actual number of tourists visiting India every year would yield
the total annual expenditure on handicrafts by all the foreign tourists. However,
while the tourists’ arrival data are only up to 2001, per capita expenditure relates
to the period October, 2002, when the survey was conducted. Keeping this in
view, the per capita expenditure data for (Oct.) 2002 has been adjusted to the
level of 2001 for inflation between 2001 and 2002 (Oct. to Oct.) by the Wholesale
Price Index (WPI) for all commodities (Table 4.1). The price adjusted data on per
capita expenditure (Oct., 2001) have been multiplied by the number of tourists to
Survey of Foreign Tourists’ Expenses on Handicrafts
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estimate the total expenditure on handicrafts. Table 4.2 presents the total as well
country-wise total expenses on handicrafts. For the sake of brevity, estimates for
only leading 26 countries (in terms of number of tourists and expenditure on
handicrafts) have been arrived at.
As can be seen from this table, total expenditure on handicrafts by all the foreign
tourists has been estimated at Rs. 29,851.54 million in 2001. This constitutes
about 18% of the total estimated value of production of handicraft items in India
in 2001-02 (Table 4.3). Data from Export Promotion Council for Handicrafts
(EPCH) indicate that the export of handicrafts from India (excluding hand knotted
carpets) had constituted about Rs. 67695 million in 2001-02 (Table 4.4). The
estimated total expenditure on handicrafts by foreign tourists thus forms about
44% of the total handicrafts exports (excluding hand knotted carpets) from India
during the year 2001-02. Since the amount is spent by foreign tourists while in
India, this can be considered as deemed export of handicrafts.
According to Tourist Statistics 2001 (Deptt. of Tourism), in 2001, India had
earned foreign exchange to the tune of Rs. 1,43,440 million from the tourism
sector alone. Thus the foreign tourists’ expenses on handicrafts in India formed
about 21% of the total foreign exchange earnings from tourism.
Table 4.1 : Movement of WPI : Oct.2001 to Oct. 2002
Period WPI Index
October, 2001 162.5
October, 2002 167.3
Change in Index 4.8 Source: Monthly Review of the Indian Economy CMIE, Dec., 2002
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Table 4.2: Estimate of Total Expenditure on Handicrafts by Foreign Tourists
Tourists (No.)
Per Capita Expr.(Rs.)
Per Capita Expr.(Rs.)
Total Expr. (Rs. Million) Country
2001 Oct. 2002 Oct. 2001 2001 (1) (2) (3) (4) (5) [col. 2 x col.4]
USA 329147 20103 19526 6427.00 UK 405472 14373 13961 5660.64 France 102434 13211 12832 1314.43 Australia 52691 14555 14137 744.91 Germany 102434 10756 10447 1070.17 Canada 88600 21204 20596 1824.77 UAE 21483 28376 27562 592.11 Italy 41351 10681 10375 429.00 Japan 80634 5249 5098 411.10 Switzerland 25308 19634 19071 482.64 Singapore 42824 9752 9472 405.64 Sri Lanka 112813 6293 6112 689.56 Netherlands 42368 13333 12950 548.69 Nigeria 7539 25073 24354 183.60 South Africa 21162 13326 12944 273.91 Ireland 6136 24687 23979 147.13 Korea 29685 6962 6762 200.74 Malaysia 57869 8593 8346 483.00 Spain 23073 7851 7626 175.95 China 13901 8183 7948 110.49 Belgium 18851 16156 15692 295.82 Denmark 14531 13430 13045 189.55 Russia 24831 6913 6715 166.73 Indonesia 7767 11569 11237 87.28 New Zealand 11700 11331 11006 128.77 Saudi Arabia 9851 26955 26182 257.92 Others 842827 8001 7771 6549.98 Total 2537282 - - 29851.54 Source: Col. 2 = Deptt. Of Tourism, GOI; Col. 3 = NPC Survey Note: Figures in col. 4 have been arrived at from col. 3 after adjusting for inflation
Survey of Foreign Tourists’ Expenses on Handicrafts
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Table 4.3 : Turnover of Indian Handicrafts Industry
Year Estimated Production (Rs. Million)
1999-2000 1,39,155.60
2000-2001 1,63,404.40
2001-2002 1,63,200.00 Source: Development Commissioner (Handicrafts)
Survey of Foreign Tourists’ Expenses on Handicrafts
Table 4.4: Export of Handicrafts@ from India : 1992-93 to 2001-02 (Rs. Crores)
@ Excludes Handknotted Carpets, P = Provisional
ITEMS 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 (P)
Artmetalware 480.05 680.20 1022.25 1205.95 1370.60 1214.6 1324.16 1497.18 1778.10 1758.90
Woodware 68.20 98.50 136.90 155.65 188.45 221.82 286.04 348.95 434.44 431.88
Handprinted Textiles & Scarves 196.50 354.25 475.12 580.45 695.17 838.24 1033.98 1158.05 1276.75 1221.59
Embroidered & Crochetted Goods
42.70 70.45 102.20 115.30 131.10 990.75 1159.42 1584.36 1964.78 1931.97
Shawls as Artware 28.15 32.95 36.90 39.75 36.43 17.08 18.18 21.50 27.20 27.01
Zari & Zari Goods 42.65 48.90 57.95 70.95 79.78 70.34 74.95 83.52 142.32 134.04
Imitation Jewellery 19.05 28.75 36.88 40.20 44.13 98.03 104.10 113.64 121.68 117.53
Misc. Handicrafts 534.70 656.00 767.70 812.10 1022.92 902.32 1057.57 1116.40 1210.08 1146.58
TOTAL 1412.00 1970.00 2635.90 3020.35 3568.58 4353.18 5058.40 5923.60 6955.35 6769.50
Source: Export Promotion Council for Handicrafts
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ANNEXUREANNEXURE Questionnaire for Constructing UNESCO Crafts/ Tourism Index for India
Amount spent in India on Handicraft products during the current trip
(excluding company or business purchases)
SL. No. PRODUCTS QUANTITY AMOUNT
SPENT CURRENCY USED
(Relates to amount spent) Silk Cotton Wool
1.
Textiles
Others 2. Clay (ceramics, pottery) 3. Bamboo, rattan 4. Wood 5. Metal,Jewellery 6. Natural Fibre (baskets) 7. Leather 8. Paper & paper products 9. Glass 10. Local raw materials
(indigenous)
11. Mixture of raw materials or new materials
12. Others (traditional foods, cosmetics etc.)
OTAL T The Interviewee: Nationality or Country of Residence: No. of days spent in India: Age: < 25 25/34 35/44 45/54 55/64 65 & above Sex : Male Female Profession: Service Business Industry Agriculture Students Others A nnual Family Income: Below Average Average More than Average High Very High The Interviewer:
Date: Place of Interview: Airport
Hotel Market
City: Delhi Mumbai Chennai Kolkata Hyderabad Bangalore Signature