BLOCK 2 : INTRODUCTION TO TOURISM AND ECOTOURISM: Introduction to Tourism and Ecotourism: Indian...
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COURSE 1: INTRODUCTION TO TOURISM
BLOCK 2 : INTRODUCTION TO TOURISM AND
ECOTOURISM: INDIAN CONTEXT
Unit 4 : Evolution of Tourism in India ......................... 3
Unit 5 : History of Tourism in India ................................ 17
Unit 6 : Legal Definitions of Tourism in India ............... 28
National Law University, Delhi
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UNIT 4 EVOLUTION OF TOURISM IN INDIA
2. Significance of Tourism Industry in India
3. Evolution of the Tourism Sector in India
4. India’s Efforts Towards Strengthening Tourism Network
5. Going Forward-Destination India
6. Summary and Suggestions
Tourism is widely considered the most rapidly growing global industry. Way back in 1999,
the World Travel and Tourism Council (WTTC)1 predicted that international tourism industry
is likely to grow at 4 per cent per annum by 2012 and will involve 1 billion visitors touring
internationally every year. This expected growth target has not only been achieved, but also
surpassed by the rapidly growing tourism industry. As per ther World Tourism Organisation
(WTO)2 , tourism is contributing 11.6 per cent of the global gross domestic product.
The World Tourism Organisation forecast indicates that although Europe and America remain
the world’s foremost tourism destinations commanding 77 per cent of the global market
there is also an increasing tourism preference towards East Asia, the Pacific, West Asia and
South Asia. India is also expected to see an influx of 10 Million international tourists by
2012, up from just 5 Million in 2007. Indian outbound tourist flow is also expected to
increase at a Compound Annual Growth Rate (CAGR) of 13.30 per cent over the five-year
period spanning from 2008 to 2012.
India’s share in global tourism was about 1.5 per cent in 20103 . This growth in India’s tourism
market is proving to serve as a boon, driving the growth of several associated industries,
including hotel industry, medical tourism industry and transport & aviation industry. It is
expected that the total market for a specific type of tourism, namely medical tourism will
reach US$ 2 Billion by the end of 2012, representing a CAGR of 60.69 per cent4 .
1 World Travel and Tourism Council (1999) Travel and Tourism’s Economic Impact. http://www.wttc.org 2 World Tourism Organisation (1998). WTO News. January/ February. 3 Ministry of Tourism Website, Tourism Facts and Figures, 2010. 4 Ministry of Tourism Website, Tourism Facts and Figures, 2010.
Introduction to Tourism and Ecotourism: Indian Context
India will become the fastest growing economy out of 34 developed and emerging markets
and the world’s third largest economy by 2020. Favourable demographics, increasing
investment in education and infrastructure and further integration with the world economy
are the factors for economic growth. In PPP terms, India’s GDP level will be approximately
40 per cent of that of the United States in 2020, up from 27 per cent in 2002.
India, the world’s sixth largest country, based on GDP in purchasing power parity terms,
and second most populous nation with over 1 billion people, is considered today as one of
the fastest growing economies in the world5 . Sectors like manufacturing, pharmaceuticals,
biotechnology, nanotechnology, telecommunication, shipbuilding, aviation, tourism and
retailing are showing strong potentials with high growth rates.
The difference between travel and tourism
Travel – Travel is an act of journeying, typically of‚ some length‘ and‚ to a place that
is not one’s abode/base’.
A Travel is the same as a journey, tour, trip, voyage, exploration, sightseeing, globe-
trot, backpacking, etc.
One might have to travel for various purposes, including business, pleasure, personal
work, for job, etc. Travel is the integral component of tourism.
The following are required, to make travel possible:
1) Discretionary income, i.e. money to spend on non-essentials.
2) Time in which to do so
3) Infrastructure in the form of accommodation facilities and means of transport.
Individually, sufficient health is also a condition, and of course the inclination to
travel. Furthermore, in some countries there are legal restrictions on travelling,
especially abroad. Communist states restrict foreign travel only to “trustworthy”
citizens. The United States prohibits its citizens from travelling to some countries, for
Tourism – In simple terms Tourism is the act of travel for the purposes of leisure,
pleasure or business, and the provision of services for this act. Tourism is commercial
5 CIA World Factbook, India, 2008.
Evolution of Tourism in India
in nature and involves visits to places of interest. There are two important components
that make up tourism. One is ‘The practice of travelling for pleasure’, and secondly
‘The business of providing tours and services for persons travelling’. To understand
the nuances of the tourism industry, an indepth study of both these components is
There are four basic services to be provided for Tourists
1) Travel Arrangements
2) Board and Lodging
2. SIGNIFICANCE OF TOURISM INDUSTRY IN INDIA
In India we see the origin of the concept of Tourism in Sanskrit Literature. The origins of
the words that are most close to tourism has been derived from the root word “Atana”
which means going out. The root word ‘Atana’ further gives us three terms that are most
close to the modern definition of tourism. They are:
• Tirthatana – It means going out and visiting places of religious merit.
• Paryatana – It means going out for pleasure and knowledge.
• Deshatana – It means going out of the country primarily for economic gains.
Out of the three words, Paryatana is the most suited term close to modern day term called
tourism. However, Tirthana and Deshatana also are a part or forms of tourism as understood
today. Religious and Business Tourism are well recognised forms of tourism in modern
India’s economy is diverse, encompassing agriculture, handicrafts, textile, manufacturing,
and a multitude of services. Although two-thirds of the Indian workforce still earn their
livelihood directly or indirectly through agriculture, services are a growing sector and play
an increasingly important role in India’s economy. The advent of the digital age, and the
large number of young and educated populace fluent in English, is gradually transforming
India as an important ‘back office’ destination for global outsourcing of customer services
and technical support.
Introduction to Tourism and Ecotourism: Indian Context
The economic transformation over the last few decades is clearly reflected in the GDP
growth of the past years. The GDP is the primary indicator used to gauge the health of a
country’s economy. The GDP of a country is defined as the market value of all final goods
and services produced within a country in a given period of time. It is also considered the
sum of value added at every stage of production of all final goods and services produced
within a country in a given period of time. Over the past many years, tourism industry has
contributed to a great extent to the GDP of the country, forcing the law and policy makers to
rethink the once neglected potential of the ever growing sector.
With this gradual shift in focus, the outlook for the growth of tourism in the region is
promising. The World Travel and Tourism Council (WTTC) has identified India as one of
the world’s foremost tourist growth centers in the coming decade. After Turkey, India is
expected to achieve the fastest rate of growth of the total amount of economic activity
likely to be generated by travel and tourism, at 9.7 per cent over the next 10 years. Also, the
largest employment creation after China is expected to take place in India over the same
period. The growth in ‘visitor exports’ or spending by international tourists, is likely to be
the fastest in India at 14.3 per cent per annum