Tourism Demand Proposal

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    Application for Grant for a Research Project

    Title

    TOURISM DEVELOPMENT IN THE PONDICHERRY

    UNION TERRITORY: A STUDY OF DEMAND,

    SUPPLY, ECONOMIC IMPACTS, AND TOURIST

    SATISFACTION.

    Submitted to

    THE MINISTRY OF TOURISM

    THE GOVERNMENT OF PONDICHERRY

    By

    BABU P GEORGE

    (Lecturer, Department of Tourism Studies, Pondicherry University)

    &

    G. POYYA MOLI

    (Reader, Department of Ecology, Pondicherry University)

    PONDICHERRY UNIVERSITY

    AUGUST, 2006

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    hospitality services accommodation, foods and beverages, tours, souvenirs; and related

    services such as banking, insurance, and safety and security. The intangible elements

    include: rest and relaxation, culture, escape, adventure, new and different experiences.

    Tourism is especially important in developing nations as it is seen as a way to propel

    regional economic growth in countries, a panacea for development, due to its promise of

    jobs, economic growth, and infrastructure development.Many developing nations, for these

    reasons, strive to maintain or increase their tourist attractions, accessibility, and amenities.

    However, these decisions are often taken ad-hoc and quite arbitrarily. With no database to

    inform, decision makers are guided by vested interest groups or, at best, by vague intuitions.

    Far worse, there is no feedback data available to correct the program implementation

    mistakes either.

    THE SCOPE OF THE PRESENT STUDY

    The present study aims to:

    To gat he r t he es sent ia l s ta ti st ic s r el at ed t o t ou ri st a rr ivals ,

    demographic prof iles , durat ion of s tay, places visi ted, faci l it ies

    provided and used , sea sonality variati ons, etc.

    To est imate the potential of exist ing dest inations and to study the

    feasibility of developing more destinations and offering.

    To s tudy the impact of touri sm upon the local economy and to

    perf orm a comprehensive cost- benefit analysis.

    To study the tourist expectat ions and issues related to sat isfact ion,

    loyalty, and complaint behavior.

    To conce ive, devel op , and del iver t ra in ing p rogr ams t o the

    Pondicher ry Touri sm s taff in cus tomer handl ing, des tina tion

    development, tourism planning, and management.

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    The research wil l extend for a t ime-span of two years. The geographical

    coverage of the study wil l be Pondicherry, Mahe, Yanam, and Karaikkal .

    Specific destination areas in the UT of Pondicherry will be chosen for an in

    depth study in such a way that they represent the length and breadth of the

    UT.

    METHODOLOGY

    The methodological procedures adopted for studying each of the major sub-

    themes is discussed below separately:

    Gathering demographic and visitation statistics

    For collecting visitor numbers, student volunteers will be employed at the

    major entry points in Pondicherry. An alternative means is to collect check-

    in and durat ion-of-stay information from hotels . Entry passes issued at

    recreational facilities (like Chunnambar Boat House) will also be counted.

    Visitor demographics will be collected through sample surveys conducted

    acr os s des ti na ti ons and acr os s s easons . Sampli ng wi ll be done a t

    Pondicherry, Mahe, Yanam, and Karaikkal.

    Estimating tourist potential for existing attractions

    The most appropriate s tart ing point for est imating economic potential of

    exist ing at tract ions is the level of visi tat ion for previous years. For this ,

    daily, weekly, or monthly visit figures may be used as appropriate.

    For each year after the f irs t year l is ted, calculate the percentage growth

    from the previous year using the formula:

    Visits for Year - Visits for Previous Year

    Visits for Previous YearX 100% = % Change in Visitors

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    There will not be an existing area that perfectly matches the proposed one

    but curren t visitation figures for oth er areas can be adjusted to ref lect

    differences in:

    Size of potential target markets.

    Nearness and conven ience of ta rget markets.

    Availability of competitive areas to the target markets.

    "Drawing power" of the area's attractions.

    Costs to the target markets of visiting the areas.

    Assessing support services to meet estimated visitation level

    An inventory of support services will provide essential information about

    anticipated needs , and may be useful in advert i sing and marketing. For

    example, do the hotels have facilities that appeal to families (do they have

    swimming pools and playgrounds), or to convention goers (do they have

    convention faci li t ies and nightt ime entertainment?) Does the restaurant

    inventory include those capable of cater ing gourmet meals or are they

    predominantly fast food establish ments? Do the food services include a

    variety?

    The general process of evaluating community needs and the costs to satisfy

    them involves several steps. The following pattern may be useful.

    Determine the present level of facilities and associated capacity.

    Identi fy the kinds of tour ism and visi tors contemplated. En route

    visitors wil l require fewer services than destination (overnight or

    longer) travelers.

    Estimate the quantity of tourists (and duration of season). This may

    be a projecti on of your past experience adjusted for expected

    economic condi tions , or an es timate based on the experience of

    similar attractions elsewhere.

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    The number of a lt erna tives tha t should be considered depends on the

    number of realistic options available and on other constraints, such as time,

    information, funding, and poli t ical real it ies . Whatever alternatives are

    chosen, there must be suff icient information to permit analys is of the

    economic impacts at a level that wil l aid real is t ic decision making. I t is

    useful for leadership to limit alternatives to be included in the analysis to a

    realistic number.

    Step 2: Define exactly what decisions need to be made, what information is

    being requested, and what questions the study should answer.

    Far too of ten the consul tant or analyst determines what information a

    communi ty needs and wha t a ss umpti ons a re t o be made about the

    community's goals and resources. An analyst must understand precisely

    what decisions local officials need to make and what information is being

    requested to conduct a useful economic impact study. Even if staff members

    have been given the responsibility for choosing alternatives and shaping the

    study, they may still want to consult those who will use the study to be sure

    i t covers the essential points and contains the most useful informat ion

    poss ible. For example, if the staff has been asked to analyze th e economic

    impact of several general plan al ternatives, there may be certain areas of

    particular concern to local gover nment, such as th e fiscal effec ts of

    different levels of growth or the effects on employment. These decisions are

    the responsibility of the community, perhaps facilitated by the analyst.

    The community should start by listing the types of questions that the study

    is to answer . Not al l ques tions can be anticipated; the s tudy i tself may

    highlight other areas that need consideration. With an initial list of areas to

    be included, however, the analyst can mo ve to the nex t step.

    Step 3: Determine how detailed the analysis should be.

    The scope of the study will depend on several factors:

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    What type of proposal i s under cons iderat ion; a plan, policy, or

    project.

    Whether the s tudy i s par t of a continuing process of economic

    analysis or is a one-time request for analysis of a particular proposal.

    Time and budget constraints.

    Expertise of the available staff within the community.

    The audience for the study; the city council, board of supervisors, or

    a department chief.

    The geographic area covered and the length of time considered.

    The level of detai l a s tudy requires wil l depend primari ly on the type of

    proposal being consi dered. Comprehensive plans for th e entire community

    obv ious ly w il l i nvol ve ext ensi ve ana lysi s o f t he p resent economi c

    conditions and the expected effects of the plan's alternatives, while a plan

    for a particular service in one area of the community could be analyzed with

    far less work. Policies and projects will involve different levels of detail,

    depending on their scope or size in relation to the rest of the community.

    A second important consideration in determining a study's level of detail is

    whether it is a one-time analysis or part of a continuing program. The initial

    economic impact s tudies will entai l more work in gathering the necessary

    data and information, but i f the analysis i s cont inued, each report that

    fol lows wil l be easier to prepare. Beginning the work at the broadest plan

    level will provide a framework within which to analyze other decisions.

    The scope of the s tudy may be par t ly determined by the individuals or

    groups who have reques ted the analysis . The ci ty council or planning

    commission might want only a short summary of the general impacts of a

    proposal, while a department chief might need a detailed study of all th e

    important impacts. Other constraints on the level of detail in a study, such

    as t ime and budget l imitat ions, wil l be beyond the control of the staff . A

    staff 's unfamiliari ty with methods of economic analysis may also add to

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    these constraints . Local governments may wish to use analysts and others

    from outside the community to do much of the initial work and training.

    Two addit ional l imitat ions on a s tudy are the area i t encompasses and i ts

    durat ion. The area included in an economic impact assessment should be

    clearly defined, and the reasons for i ts del ineation explained, because the

    boundaries of political jurisdictions do not neces sarily correspond to the

    boundaries for housing, land, emp loymen t, economi c impacts, or even fiscal

    impacts on local government . Some impacts wil l be zero within cer tain

    areas. For example, new hotel construction may have no effect on tourism

    growth in the region, even though it influences the local area. Or additional

    hotel rooms in one area may mean less demand for accommodations in the

    rest of the region. Particularly in a metropolitan region, communities cannot

    always pinpoint the effects a proposal will have on their own tourist-related

    employment or land-use. To do so often requires an awareness of regional

    interactions and of factors outside the local community or government 's

    control.

    The availabil i ty of data wil l play an important role in defining the study

    area. The geographic area is generally that political unit (the city, county,

    or s tandard metropoli tan statis tical area) for which published statis t ics

    exist . As a practical matter , the f inal choice of the geographic area may

    have to be left open unti l the detai ls on the various al ternatives are clear .

    This may mean working for a period of t ime with overlapping geographic

    areas.

    Th e len gth o f tim e c on sid er ed i n an i mp ac t a sses smen t c an a lso

    significantly affect the results. The assessment should take into account the

    period that the economic impacts will be imp ortant; the firs t five years,

    perh aps, could be cover ed in detai l and a broader look given to th e life of

    the impacts. The longer the period of analysis, the less certain projections

    become.

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    Plans usually speci fy the period for which they apply; the assessment

    should provide analysis for the same period. Since policies may involve

    temporary decisions or establishment of guidelines for a community, the

    analyst needs to provide an estimate of how long the effects of a proposed

    policy are likel y to last. Projects have an initial effect during th e

    construction phase, a continuing effect through their middle age, and often

    a different effect during their declining years. Thus, the economic impacts

    should be considered not only during the building period, but for the entire

    life of the project, as long as reasonable estimates can be made, which may

    require certain assumptions about things such as future real estate values,

    property tax rates , inflation rates, and consu mer demand.

    Step 4: List in the study all fundamental assumptions and limitations.

    A study's assumptions may cover a wide range of variables, such as changes

    in the national economy; the rate of growth in population, employment, or

    income; or the continuation of or change in trends. Whatever al ternatives

    are chosen, the compari son of impacts wil l be val id only i f the same

    methods have been used consi st ently throughout the assessment. For

    example, if inflation effects are considered in one alternative, they should

    be considered in all alternatives. Th e study sh ould clearly state which

    methods are being used and if , for any reason, one al ternative is t reated

    differently, the difference should be explained. It may be necessary to add

    to the ini ti al l is t of assumpt ions dur ing the analysi s. There may be

    opportunit ies to indicate which assumptions most influence the long-term

    benefits and costs of the pro ject. This is hel pful in evalu ating the risks

    associated with the project.

    Limitat ions in the analysis should be identif ied. For example, i f the t ime

    available to prepare the study is l imited, and some economic areas cannot

    be covered as thorough ly as desired, th e analyst will want to explain th is

    l imitation and how i t affects the study. Likewise, any l imitations in the

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    method of analysis should be thoroughly discussed to give decision makers

    an idea of risks inherent in the outcome.

    Step 5: List all economic impacts that are considered.

    For a very large project or a major plan, al l economic impact areas wil l

    probably be affected, while for sp ecialized plans, policies, or pro jects,

    certain areas may not be affected. For example, a community's general plan

    probably wi ll affec t everything from population si ze to the delivery of

    publi c services, wh ile a ten-unit housing devel opment wi ll not have

    signif icant effects on income levels or government services except for a

    small community.

    Step 6: Determine what data are needed, what are available, and how they

    will shape the study.

    In order to evaluate the economic impacts of a change in land use for a

    large tourism project, it is useful to detail past growth trends and to prepare

    a current community profile. The analysis of economic impacts may warrant

    collection of past and current data to help address the following:

    Visitor expenditures and their impact on local revenues.

    Est imate of communi ty vis i tor days so we know i f exis ting work

    for ce an d fac iliti es c an h an dle th e ex pect ed d ema nd . ( i. e. ,

    measurement of employment, housing, existing land use, etc.)

    Data to determine the dol la r cos t and benef it of local touri sm

    development will help the community assess who will gain and who

    will not benefit from the development. (i .e., local property and sales

    taxes, costs associated with traff ic congestion, pollut ion damage,

    etc.)

    Projections of future growth and change also will be needed. These could be

    based on historical trends or on a number of assumpti ons about th e

    probability of certain changes occurring. Projections of population and

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    business activity will be particularly important in evaluating development

    proposals.

    Finding adequate data can be a major obstacle. A vast amount of data has

    been collected and publi shed by governments and pri vate organizations, but

    al l too often these data do not provide the exact information needed. All

    data must be evaluated on the bas is of how they were collected, what

    ass umpti ons wer e made, wha t i tems wer e exc luded, why t hey wer e

    collected, and by whom. The decision to collect new data will depend on the

    cost and time involved, compared to the quality and adaptability of existing

    data.

    The data available and the need to prepare new data can shape the type of

    analysis. If good data are not available and time does not permit preparation

    of new information, these limits should be clearly identified. For example,

    the analys t might explain that certain project ions of employment and

    income are very rough est imates, but they wil l have to be rel ied upon for

    est imat ing the ef fects of the proposal on publ ic services and land area

    requirements.

    Step 7: Analyze the ef fect of each alternative on the individual economic

    areas being considered and analyze indirect ef fects (or cross- impacts)

    among economic areas.

    A plan, policy, or project which imposes a change in one economic sector of

    the community may tr igger a change in many of the other sectors as well.

    When these t ies are unders tood, the indi rect or secondary impacts of a

    proposal can also be identified.

    Step 8: Present results so alternatives can be compared, identi fying the

    aggregate and distributional impacts of each alternative.

    The aggregate economic impacts include the total effects in one sector, such

    as the aggregate employment impacts or the aggregate impact on housing.

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    Distr ibut ional impacts are those that affect some individuals , groups ,

    inst i tut ions, businesses, and communit ies more than others. For instance,

    land use restrictions imposed on high density housing may drive up the cost

    of cheaper h ousing, thereby directly affecting lower income families.

    In addit ion to quanti tat ive survey techniques, methods in the quali tat ive

    tradition like Participative Review Analysis and Focus Groups will be used

    to arrive at conclusions about the impacts.

    Steps to construct a custom income multiplier

    1. Col lect data on the volume and pat te rn of touri st spending. Thi s

    information will come from survey data or regional use figures.

    2. Est imate the percentage of sales income which remains in the area.

    Interviews with knowledgeable business people in each sector wil l

    provide this estimate.

    3 . De te rmine t he per cent age o f t ou ri st expendi tu res that d ir ec tl y

    increase local revenue. This is a "weighted" average of al l sectors

    where the weights are the percent of the tourist expenditure in each

    sector.

    4. Est imate the percentage of income that local people spend in your

    community.

    5. Est imate the percentage of goods and services sold local ly that are

    produced locally.

    6. Mult iply the percent est imated in Step 4 by the percent est imated in

    Step 5.

    7. Subtract the percent calculated in Step 6 from 100 percent and divide

    the result into 100 percent.

    8. Calculate the income mult ipl ier by mult iplying the result obtained in

    Step 7 by the percent calculated in Step 3.

    9. Determine the increase in local income by mul tiplying total tour ist

    expenditure by the income multiplier.

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    Measuring visitor expenditures

    There are four methods that communit ies may use to collect est imates of

    total dollars spend by visitors to their area.

    Diaries

    A diary format that cont inuously records spending is the most accurate

    method for obtaining expenditure information. Diaries require minimum

    recall on the part of respondents, which is advantageous if highly detailed

    information is sought. There are two major shortcomings, however. First ,

    recording expenses may change the tourist 's spending habits and therefore

    bias total tourism spending estimates. Second, participati on tends to be low

    because few vacationers welcome an additional chore. Innovative incentives

    might offset this problem.

    Tourists with certain types of personalities may be more likely than others

    to keep diaries. Personality differences might also be reflected in spending

    behavior.

    Exit interviews

    Another method of gathering expenditure information is to interview people

    as t hey l eave an a rea. Peopl e can be a sked t o e st imat e t he ir t ot al

    expenditures for the entire visit to an area, or for only their last day there.

    Since fewer people will refuse to complete an exit interview, you can expect

    to f ind a more representat ive group of respondents with this method than

    with diaries. People will tend to forget many expenditures, however. They

    will remember better the expenses from the last day than from earlier days.

    A var iat ion on the exi t interview is to interview people randomly in an

    attempt to reach them on each day of their visit . This reduces the bias found

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    when interviews are concentrated on the last day of a visit , but it does not

    eliminate the problem of recall.

    Mail surveys at home

    Questionnaires may be sent to visi tors at thei r home addresses , us ing a

    random sample der ived f rom var ious r egis tr at ion data. Thi s type of

    quest ionnaire typically gets a higher response rate than the diary method,

    but a lower response rate th an exit interviews. The time lapse in ma il

    surveys increases the tendency to underestimate actual expenses.

    Surveying tourist-related business

    Businesses directly affected by visitor expenditures include hotels, shops,

    and restaurants. Information gathered from proprietors or managers of these

    establishments is subject to their abil i ty to differentiate between tourist-

    related sales and sales to residents.

    Studying the cost benefit analysis of tourism

    First, l ist the applicable benefits, then do the same with costs. Some items

    will be known with reasonable accuracy, some will be "guesstimates," and

    others may be immeasurable. The fol lowing information is necessary to

    estimate benefits and costs.

    An inventory of public support services with the present range and

    capacity of those facil i ties . Support services might include police,

    sewer, water, rest rooms, streets, medical facilities, rescue systems,

    parks, solid waste arrangements, camp grounds, etc. If the capacity

    does not meet present or future demands, expansion of those facilities

    that are in short supply must be taken into account as a cost of tourist

    development. Be sure to ascertain whether both public and private

    support services must be expanded. Private support services might

    i nc lude : gui de s er vi ce , hot el and mote l r ooms , r es taur an ts ,

    transportation.

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    A projection of the expected number of visitors.

    An est imate of the expendi tures tour is ts wil l make. Mul t iply the

    anticipated increase in types of tourists (day visi tor , overnight , or

    camper) by the expenditures expected for each type, including any

    changes in expenditure levels expected with the new facil i t ies , to

    est imate the increase in sales as a result of tourism development.

    Benefits most commonly associated with tourism are increased local

    incomes and employment, but there may be additional benefits.

    Tax revenues might increase, providing tax relief to local residents if

    additional revenues exceed the costs of additional services.

    Tourism may provide a means of diversifying the existing economy or

    of reducing the seasonable f luctuations, particularly important in

    areas dominated by one industry. Of course, tourism can compound

    the challenges of seasonable variation in many situations.

    Tourists may also be important for cultural or social reasons. Local

    festivals and celebrat ions are important cultural events and tourist

    attractions in hundreds of communities.

    Any increase in the demand for public services (for example, extra police or

    improved public rest rooms), is a cost of tourism development. The costs of

    promotion should also be included. If time is donated, the value of

    volunteer t ime may be calcula ted by mul tiplying hours worked by an

    appropriate wage rate, not lower than the minimum wage.

    The costs and benef it s of tour ism development can be measured with

    varying degrees of precision. Immeasurable items should be indicated with

    a plus (+) for a benefi t or a minus (-) for a cost . Environmental costs and

    community resentment at tr ibutable to tourism are examples of negative

    i tems. With imagination and research, even these may be given dollar

    est imates in certain cases, for example costs for hauling addit ional solid

    waste, travel delays, higher housing costs, etc.

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    After al l of the costs and benefi ts have been est imated and entered in the

    table, subtract the total costs from total benefi ts to derive net measurable

    benefits. Th e net measurable benefits should be posi tive before a

    community proceeds with a tourism development program.

    Another useful measure is the benefi t-cost rat io. This is a "best guess" of

    the rate of return on identif iable investment costs . If benefi ts divided by

    costs equal, for example, 1.2, this implies that for every $1 of costs, $1.20

    will be returned to the community.

    However , many impor tant e ffec ts of touri sm development cannot be

    considered in economic terms. Pluses and minuses in the table must be

    considered. Community members can determine appropriate weights for

    each plus and minus. There may not be agreement whether any one item is a

    plus or a minus (one person's so litude is another's lonelines s) but all items

    should be consciously l is ted and net measured benefi ts calculated. In the

    course of this procedure, ideas may arise which will accent either the pluses

    or the minuses.

    Because community support is an essential ingredient to the success of a

    tourism program, consensus is vi tal . If the pluses outweigh the minuses,

    perh aps the plan should proceed. If, however, minuses outweigh plu ses,

    maybe the plan should be reconsidered or changed. Outweighs is the key,

    not outnumber.

    Measuring tourist satisfaction with Pondicherry

    To measure customer sat isfact ion with Pondicherry, a s tandardized scale

    has to be cons t ructed. This wi l l be done fol lowing the widely accepted

    GAPS model (SERVQUAL, HOLSAT, etc are some of the scales already in

    existence). Along with customer sat isfact ion, with the addit ion of a few

    more questions in the instrument, customer loyalty can be measured, which

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    t oo wil l be done. I t i s expected tha t dur ing the interviews, cus tomer

    complaining behavior also can be understood, though we do not pose this as

    a tangible outcome of the research as of now.

    Providing training programs

    Action research is an applied research strategy which collects information

    to solve problems and to bring about changes in speci fi c set tings or

    organizations. It aims to address both the practical concerns of people (in a

    communi ty, organization etc) and the goals of research through people

    working together on projects. Using methods such as participatory mapping,

    brainstorming, focus group discussi ons, workshops, etc. action research is a

    flexible method of integrating research into projects, involving community

    participants, and generating action.

    The findings from the study will be synthesized and submitted in the form

    of a research report to the funding agency. At the same time, instructional

    modules wil l be culled out from this report under themes l ike managing

    tourist sat isfaction and loyalty, tourism impact assessment, tourism

    planning guide etc. These instructional mo dules wi ll contain generic

    theories, explained and supplemented by the real life insights from our field

    s tudies . Through lectures, case discuss ions, e tc , these modules may be

    delivered to the Pondicherry Tourism staff.

    PROJECT EVALUATION

    We have devised an inbui l t mechanism to make sure that the project i s

    taking the expected trajectories and that tangible progress is achieved at its

    each major phase. The mechanism works concurrently with the project ,

    from its beginning to end. We believe that f lawless processes adopted in

    the interim stages of the project wil l yield a f lawless f inished product in

    the end.

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    months months months months

    1 Preliminary/Preparation work **

    2 Exploratory visits **

    3 Selecting study Areas,

    Preparation of questionnaires

    obtaining permissions and net

    working

    **

    4 Training courses **

    5 Conducting pilot studies **

    6 Refining /redesigning

    research plan

    **

    7 Conducting final field survey

    including qualitative studies#

    **

    8 Compiling and Analyzing the

    data#

    **

    9 Stake holder consultations ** ** ** **

    10 Submitting the final Report **

    # given the urgency, data relating to tourist demographics and the visitation

    patters alone sh all be collected, analyzed, and su bmi tted with in th e first one

    year.

    RELEVANCE OF THE PROJECT TO DIFFERENT STAKEHOLDERS

    The usefulness of the project for various stakeholder groups is immense and

    some of the key benefits are listed below:

    There is no stat is t ics worth mentioning available about tourism in

    Pondicher ry ; be i t about the cus tomer numbers , the ir profi les,

    v is it at ion pat te rs , act iv it ies, impacts , consequences of var ious

    government schemes, or the profile of available tourism supply. Thepresent study is supposed to fill a major part of this gap.

    The insights f rom the s tudy wi l l become a s igni ficant tool in the

    hands of decis ion makers at various levels in the government in

    aiding scientific/rational decision making.

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    The s tudy wi ll provide essent ial feedback about the success and

    failures of schemes already introduced and are running at various

    stages so that proper corrective measures may be undertaken.

    The feasibi li ty ana lysi s wil l provide the market f easibi li ty of

    potential tourism developmental pro jects in the region and wi ll

    outline a blueprint for the future of Pondicherry tourism.

    Tourist expectation-sat isfact ion-loyalty-complaint behavior survey

    wil l generate a repertoire of common complaint s i tuations which

    become inputs for remedial planning, including employee training and

    providing a more custo mer friendly environmen t, in general.

    Understanding touri st expecta tions, causes of sat is factory or

    o therwise outcomes, and antecedents of touri st loyal ty a re the

    backbones of any informed marketing strategy for the region and the

    present research is ex pected to deliver results in this direction.

    As a spin-of f of the proposed pro ject , we would be genera ting

    awareness among the universi ty s tudent community. They would be

    mot ivated to involve themselves in contr ibut ing to the touri sm

    indus try of Pondicher ry (by ass igning f ie ld pro ject s, summer

    internships, and by enabl ing them to part icipate in the seminars,

    conferences, t raining courses, and workshops to be organized). If

    needed, t he s cheme may be ext ended t o s tudent s f rom o ther

    insti tutions, especial ly the undergraduate colleges aff il iated to the

    University.

    We the inves tiga tors as appli ed researcher envisage tha t some

    signif icant theory of tourism practice could be unearthed from the

    data that we collect, thus enriching the discipline of tourism.

    THE PROJECT BUDGET

    a) Salaries & Wages

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    e) Other project costs

    S.No Activity Amount

    (Rs.)

    1 Organizing stakeholder meetings and PRA exercises: 8meetings @ Rs.10,000 per meeting

    80,000/-

    2 Purchasing books, data , journals etc 10,000

    3 Training course for the Pondicherry Tourism staff 1,00000

    5 Preparation of Report 25,000

    6 Contingencies 20,000

    Sub total 2,35,000/-

    BUDGET SUMMARY

    S.No Activity Amount

    (Rs.)

    1 Salaries & Wages 6,80,000/-

    2 Permanent equipments 2,95,000/-

    3 Expendables 40,000/-

    4 Travel and Allowances 74,000/-

    5 Other Project Costs 2,35,000/-

    6 I ns ti tu ti ona l o ve rh ea d t o U ni ve rs it y ( 15 % o f t he to ta l c os t) 1,98,600/-

    Grand Total 15,22,600/-

    Table 3 BUDGET JUSTIFICATION

    Budget Head JustificationsResearch Associate For supervision of the study and

    synthesizing the resultsResearch Assistant For office assistance.Student Volunteers For collecting quantitative data as

    well as in conducting qualitative

    investigationsTravel allowance For visiting the destination areas

    /offices to collect data; to meet

    stakeholder groups; for attending

    seminars; etc.L ap to p N ot eb oo k w it h w ir el es s i nt er ne t

    connectivity

    Coordinating research while on the

    move, make presentations to

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    boast of th e best books and Journals on all available subjects. Ou r campus

    has a faster Internet connectivity and campus Intranet for all Faculty.

    Department of Tourism Studies (DTS) of Pondicherry Univers ity was

    established in 1991 with the assistance from the Central government as a

    nodal centre of excellence with a view to cater to the increasing demand for

    trained manpower in tourism and al lied industries as well as to undertake

    high end research in these fields. From its inception, DTS has been doing a

    commendable work in the di rection of fulf il ling i ts exal ted mission. I t

    offers an MBA as well as an MPhil program in tourism and its products are

    wel l received by the academia and the indus try. Throughout , DTS has

    collaborated with the State administrat ion of tourism in matters l ike the

    formulation i ts master plan, organization of various events and fest ivals

    such as yoga festival and world tourism day celebrations. It is a member of

    industry associations like IATO, TAAI, etc.

    Department of Ecology and Environmental Sciences of Pondicherry

    Universi ty was established in the year 1987. The broad objectives of this

    s trongly inter -d iscipl inary department inc lude t eaching, r esearch,

    consul tancy and extens ion in key areas of basic and appl ied Ecology.

    Besides, the local ecosystem s tudies , the department has been actively

    engaged in doing research on bio-diversity and conservation issues in both

    Western and Eastern Ghats, Gulf of Mannar Biosphere reserve, Integrated

    watershed/coastal Zone management, Biomedical /Municipal solid waste

    management i ssues , sus tainable management of natural resources and

    Ecosyst ems, sust ai nabl e t ou ri sm and Agr o- ecol ogy. The p ri nc ipal

    investigator of the proposed project is associated with this department as a

    reader. Recent ly , UGC has sanct ioned an innovat ive MA program on

    Sus ta inab le Devel opment i n t he Uni ve rs it y, i n wh ich t he p ri nc ipal

    investigator is one among the faculty involved. Thus, there is a possibility

    for involving the students as well as the other faculty and Visiting faculty

    of this program as well for the proposed project.

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    International Journal of Economic Perspectives, 3(1), 34-48. (Published

    from USA).

    George, B.P. and Swamy, G.A. (2006). Consumer innovativeness and its

    relationship with consumer attitude towards space tourism: A study. Journal

    of Tourism, 6, 26-39. (Published from India).

    Narayanan, K.G. S. and George, B.P.(2006). Corporate Performance

    Management: An innovative strategic solution for global competitiveness.

    Journal of Indian Management , January-March, 31-42. (Published f rom

    India).

    George, B.P. and Samsundar, C.(2006). The translational managerial

    persona: Typology and sign ificance. Economea Romaneasca, 1(1), 266-273.

    (Published from Romania).

    George, B.P. (2005). Measuring tourist at tachment to holidays: Some

    preliminary results. Tourism: An International Interdisciplinary Jo urn al,

    52(3),229-246. (Published from Hungary).

    George, B.P. (2005).Public transportation operations in India: The case of

    subsidization. Prestige Journal of Management and Research, 9(2), 240-254.

    (Published from India).

    Mohan, K. and George, B.P. (2005). Activity Based Costing. Amfiteatru

    Economic. 2(4), 12-21. (Published from Romania).

    George, B.P. (2005). The Role of management executives in Nation

    Building. Journal of Indian Management, January-March, 71-78. (Published

    from India).

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    George, B.P. (2005). Education as business: Musings in the context of

    Goa. University News (AIU), 2(3), 18-24. (Published from India).

    Meko th , N . and George. B .P . ( 2005). The cas e f or and aga inst a

    subsidized future for the state transport undertakings: Some assessments

    and reflect ions. Journal of Transportat ion, 15(7), 21-37. (Published from

    India).

    George, B.P. & George, B.P. (2004). Past visi ts and the intention to

    revisit a destination: Place attachment as the mediator and novelty seeking

    as the moderator, Journal of Tourism Studies, 15(2), 37-50. (Published from

    Australia).

    George, B.P. (2004). Expectation-disconfirmation and tourist satisfaction/

    dissat isfact ion: The moderating role of purchase involvement, Journal of

    Travel and Tourism Research, December(Autumn), 81-99. (Published from

    Turkey).

    George. B.P. and Mekoth, N. (2004) . Sel f -moni tor ing as a key to the

    tourist : Some hypotheses and direct ions for future research. International

    Journal of Hospitality and Tourism Administration , 4(5), 25-41. (Published

    from USA).

    George. B.P . and Hegde , P .G. (2004). Employee a tt itude towards

    customers and customer care challenges in Banks, International Journal of

    Bank Marketing, 22(6), 390-406. (Published from UK).

    George, B.P . (2004). ICT For Sus ta inable Development : The Case

    Information and Communicat ion Technologies As Sustainable Tour ism

    Drivers, Great Levellers And The Hope Of Third World Tourism. DeeCee

    Journal of Management 1(1), 03-09. (Published from India).

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    George, B.P. (2004). The ongoing GATS negotiations and concerns over

    sustainable tourism development. The Wings Journal, 1(1), 13-26.

    George, B.P. (2004). Touristic authenticity and authenticity in tourism

    marketing: A critical text in the backdrop of postmodernism, globalization

    and the internet. Tour ism and Cul tural Change Working Paper Ser ies ,

    Sheffield Hallam University, UK.

    Books Authored or Edited

    George, B.P. and Nigam, D. (2006, Ed.) . Tourists and Tourism (ISBN:

    8188683586) Abhijeet Publishers, New Delhi.

    George, B.P. (2005) . Hol idays, Hol iday At tachment, and Customer

    Loyalty in Tourism (ISBN: 8188683582 ), Abhijeet Publishers, New Delhi.

    George, B.P. and Swain, S.K. (2005, Ed.) . Advancements in Tourism

    Theory and Pract ice: Per spec tives f rom India ( ISBN: 8188683744) ,

    Abhijeet Publishers, New Delhi.

    Selected Conference Presentations and Publications

    George, B.P. and Swamy, G.A. (2006). Variedness in the daily l i fe and

    the demand for special interest tourism. Paper presented at the international

    seminar on Special Interest Tourism, organized by IITTM in Bhubaneswar,

    India, and later published in the conference proceedings.

    Swain, S.K. and George, B.P. (2005). Employees percept ion of HRD

    practices in th e classified hotel s in Orissa. Paper published in the

    proceedings of th e international conference on HRD in Tourism, held at

    Srinagar, India.

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    George, B.P. (2003). The ongoing GATS negotiations and concerns over

    sustainable tourism development. Paper presented at the Nirma International

    Conference In Management 03, Ahmedabad, India, and appeared in the

    proceedings. See http://nim .ac.in/website/nicom4authors.asp )

    George, B.P. (2003). Business networks in tour ism: Are we to follow

    textbook capit al is ti c bus iness model s? An inves tiga tion into some

    innovative business practices and possible theoretical underpinnings. Paper

    presented in absentia at th e Global Business and Technology Association

    conference03 held at Budapes t and later publ ished in the conference

    proceedings. (See http ://www.gbata.com/home.html).

    George, B.P. (2003). Exogenous Innovations and the reinvention of travel

    intermediaries: Theoretical considerat ions and empirical f indings. Paper

    presented at the NZTHRC& ITS C conferences 02, Newzealand and later

    publi shed in the conferenceproceedings.(See

    www.tourismresearch.com/NZTHRC%20Conference%20Newsletter

    %20November%202002.pdf).

    George, B.P. (2002). Techno-politics in India: Technological cannibalism

    and survival s trategies presented at the Global Business and Technology

    Associa tion conference02 held a t Rome and l at er publi shed in the

    conference proceedings. (See http://www.gbata.com/home.html).

    George, B.P. (2002). The political economy of education: Universities in

    the new economic order. Paper accepted for presentat ion at LESSOMS

    International Annual Conference 03, University of Ren, France.

    George, B.P. (2000). Rural tourism: An Indian Dream. Paper presented at

    the National Seminar on Tour ism00 held at Bundelkhand Univers i ty,

    Jhanci, India, and published in the proceedings.

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    Seleced Articles in Books

    Geor ge , B.P. (2006) . Holi day Att achmen t: The Const ruct And I ts

    Measurement. In Babu, S. and Parida, B.V. (Ed.) . Sage Publishers, New

    Delhi.

    Geor ge , B .P .( 2006). The i nf luence o f i nvol vement upon t ou ri st

    sati sfact ion. In George, B.P. and Nigam, D. (2006)(Ed.). Tour is ts and

    Tourism. Abhijeet Hospitality Publishers, New Delhi.

    George, B.P. and Mohan, K.(2006). Customer loyalty in healthcare: An

    investigation into factors affect ing patient loyalty. In Balakrishnan, V. et

    al. (Ed.). Innovations in Marketing. Excel Books, New Delhi.

    Aradhana , A.C. and George, B.P .(2006) . Cus tomer complaint s and

    complaint management in the hotel indust ry: A review of l iterature. In

    George, B.P. and Nigam, D. (2006)(Ed.) . Tourists and Tourism. Abhijeet

    Hospitality Publishers, New Delhi.

    George, B.P. (2004). Tourist ic authentici ty and authentici ty in tourism

    marketing: A critical text in the backdrop of postmodernism, globalization

    and the interne t. In Jacob, R. New Facet s of Touri sm Management .

    Abhijeet Hospitality Publishers, New Delhi.

    George, B.P. (2003). Co-operat ive al l iances and other grassroots local

    networks. In Ranga , M. and Nigam, D., New Approaches in Touri sm

    Management, Abhijeet Hospitality Publishers, New Delhi.

    George, B.P. (2005). Forward to Healthcare Marketing. Salgaonkar, P.

    Abhijeet Publishers, New Delhi.

    T O U R I S M D E V E L O P M E N T I N T H E P O N D I C H E R R Y U N I O N T E R R I T O R Y : A S T U D Y O F D E M A N D , S U P P L Y , E C O N O M I C I M P A C T S , A N D T O U R I S T S A T I S F A C T I O N .

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    Warden, Hostel, Pondicherry University.

    FDP Specialized Cert if icat ion in Management Teaching and in Trainer

    Development.

    Certification in Research Methodology

    First Prize in National Tourism Quiz, 99 (HP University, Shimla).

    Member , Curr icul um Devel opment Commit tee f or t he p roposed

    Interna tional Inter -Univers ity Programme in Touri sm. Admiss ions ,

    Research & Extension Coordinator, FMS, Goa University.

    Nat ional Lower and Upper School Mer i t Scholarship holder dur ing

    schooldays.

    Best National Service Scheme Volunteer (BPC College, Piravom, Kerala).

    State-level Prizes in Elocution, Essay Writing, etc.

    College Students Union General Secretary and Journal Editor , B.P.C

    College, Piravom, Kerala.

    (For more information, please visit http://myselfgeorge.googlepages.com)

    II . G. P OYYA MOL I (CO- IN VES TI GATOR)

    34

    http://myselfgeorge.googlepages.com/http://myselfgeorge.googlepages.com/