TOURISM MARKETING IN INDIA

PROJECT REPORT(A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE DEGREE OF MBA IN JNTUH)

MASTER OF BUSINESS ADMINISTRATION(TOURISM AND HOSPILITALITY)

JNTUH UNIVERSITYKUKKATPALLY

HYDERABAD – 500 0722008 – 2010

BY SARVANI  B

REG NO: 09P41E0026MBA (2009-2011)

CERTIFICATE

This is to certify that the Project Work titled “TOURISM MARKETING IN INDIA” is a bonafide work of Ms. SARVANI  B.  Enroll No: 09P41E0026 Carried out in partial fulfillments for the award of degree of MBA: TOURISM & HOSPILATITY (Branch) of JNTUH – Hyderabad University under my guidance. This project work is original and not submitted earlier for the award of any degree / diploma or associate ship of any other University / Institution.

Signature of the Guide

Name and Official Address of the Guide

Guide’s Academic Qualifications, Designation and Experience

Place:Date:

Submitted to Project Viva Voce held on _____________________________.

Internal Examiner                            External Examiner

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DECLARATION

I, Ms. SARVANI B hereby declare that the Project Work titled “TOURISM MARKETING IN INDIA” is the original work done by me and submitted to the JNTUH through NITHM in partial fulfillment of requirements for the award of Master of Business administration in Tourism & Hospitality is a record of original work done by me under the supervision of Mr.  A. RAGHU of NITHM

Enroll No:   Date:

SARVANI  B

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ACKNOWLEDGEMENT

I would like to thank Mr. A.RAGHU, Dean and project guide under whose guidance this project has taken a successful shape. He helped me a lot in holistically completing this study.

I would also thank our beloved Director Dr. P. Narayana Reddy and all the faculty and staff of NITHM for extending their help at various levels of the project.

I would specially thank the librarian Mr. Ramesh and Assistant librarian Mr. Giri without those help it would have been difficult to find the right books for the reference.

STRATEGIES OF MARKETING TOURISM IN INDIA

MARKETING OF TOURISM AS A SERVICE INDUSTRY

PROMOTION OF TOURISM INDUSTRY IN INDIA

POMOTIONAL ACTIVITIES CARRIED OUT BY INDIA TOURISM SECTOR FOR ATTRACTING TOURISTS

WAYS OF MARKETING TOURISM

3

PROJECT REPORT:

Tourism Marketing in India

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CONTENTS

5

TABLE OF CONTENTS

1. Acknowledgement

2. Declaration

3. Introduction

4. The Indian Scenario

5. Limitations of Study

6. Research Methodology

7. Role of Governments

8. Sub-Sectors of Tourism

9. Analysis and Interpretation

Charts:

- India Estimates and Forecasts

- Indian Travel & Tourism Total Demand

- Indian Market Share of South Asia Total Demand

- South Asia Travel & Tourism Total Demand

- Indian Market Share of World Total Demand

- World Travel & Tourism Total Demand

10. Hospitality

11. Ways to Market Tourism

12. Conclusion

13. Bibliography

6

INTRODUCTION

7

INTRODUCTION

From Gandhi to the Ganges, Bollywood to the Taj Mahal, India is a land of mystique,

contrasts and contradictions. While it appeals to the romantic imagination, it is a

country where tourism has huge potential to be unleashed. The means to achieve this

goal is tourism marketing in India.

The mission of tourism marketing in India should be to promote India as a desired

destination to the traveler, not simply as an attractive vacation but as an experience to

cherish.

From the earliest historical periods, travel has been a fascinating activity for people all

over the world, be it for exploration, trade or pleasure. Nowadays, travel has become a

way of life. Owing to industrial development, evolution in transportation and rise in

disposable income, the urge to travel has become irresistible. More so in the face of

increasing globalization.

Tourism is a human activity of great significance. It involves a temporary break from

normal routine to engage with experiences that contrasts with everyday life, with the

mundane. Over the years, the definition of tourism has undergone a change along with

the historical changes. According to Himziker and Krapf tourism is “the sum of the

phenomena and relationships arising from the travel and stay of non–residents, in so

far as it does not lead to permanent residence and is not connected to any earning

activity”.

With the increasing growth of tourism and its associated opportunities, the concept of

marketing tourism in India assumes a lot of significance.

8

In making an attempt to explore the potential of marketing tourism in India, the report

focuses on the analysis of the Indian tourism sector while drawing parallels from other

parts of the world. A few marketing strategies to market tourism in India have been

discussed. The report also discusses innovative approaches to marketing tourism like

rural tourism marketing.

The scope of the report includes governmental role, international organizations, types

of tourism India can promote and opportunities as well as the challenges associated

with them.

9

THE INDIAN SCENARIO

10

THE INDIAN SCENARIO

Tourism has major potential for India at our stage of transformation and development.

It puts equal value on our untouched natural resources and culture. As India opened her

gates towards a more open economy, tourism has evolved into a highly structured

industry with the potential to earn immense revenues. Being in the services industry, it

offers high value-added markets with considerable returns on investments. Tourism has

a multiplier effect on people involved in hospitality, transportation, travel agencies,

proprietors of tourist business and entrepreneurs supporting the tourism industry.

India’s tourism industry has also recorded phenomenal growth. The rate of

international arrivals in India in recent years has been to the tune of about 19 lakh

arrivals per year. The unprecedented growth in tourism in India has made it the second

largest foreign exchange earner. This is not surprising since India possesses a whole

range of attractions normally sought by tourists and which includes natural attractions

like landscapes, scenic beauty, mountains, wildlife, beaches, major rivers and manmade

attractions such as monuments, forts, palaces and havelis. However, in global terms,

inspite of such attractions, tourist arrivals in India are a mere 0.30% of the world

arrivals. Receipts are similarly low, just a 0.50% of the world receipts. We are still

quite far from the target of 50 lakh tourist arrivals per year.

Most popular destination

Rajasthan has emerged in the last decade as one of the favorite tourist destinations for

domestic and foreign tourists alike.

The state receives 600,000 foreign tourists and 7,000,000 domestic tourists every year.

The world famous "golden triangle", comprising Delhi, Agra and Jaipur, has put

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Jaipur on the world tourism map. Almost 60 percent of foreign tourists visiting India

visit these places. Rajasthan has registered record tourist arrivals in the first half of

2004 of over 400,000 foreign tourists and 5.5 million domestic visitors. This has

effectively meant a 63 percent rise in foreign tourists and 33 percent increase in

domestic visitors to the state over the previous year.

Some additional statistics are presented below in order to reinforce the fact that Indian

tourism is one major sector to look out for investors and entrepreneurs alike.

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LIMITATION OF STUDY

13

LIMITATIONS OF STUDY

The data is not available on the net (statistical).

The questionnaires made were artificially filled.

The customers showed fake response.

There was no originality.

14

RESEARCH

METHODOLOGY

15

RESEARCH METHODOLOGY

Data can be classified under the two main categories, depending upon the sources used

for the collection purposes, i.e., ‘Primary data’ and ‘Secondary data’. The validity and

accuracy of final judgment is most crucial and depends heavily upon how well the data

is gathered in the first place. The methodology adopted for date gathering also affects

the conclusions drawn there from.

Primary data: Primary data are those data, which are collected by the investigator

himself for the purpose of a specific enquiry or study. Such data are original in

character and are generated by surveys conducted by individuals or research

institutions. Thus we can say that the data that is being collected for the first time is

called primary data.

In this project report, primary data is collected by the help of questionnaires.

Secondary data: When a person uses data, which has already been collected by

someone else, then such data is known as secondary data. Secondary data should be

used with extra caution since someone else has collected it for his/her use. Before

using such date the investigator must be satisfied with regard to the reliability,

accuracy, adequacy and suitability of the data to the given problem under investigation.

In this project report, secondary data refers to the brochures and the data collected from

the website of the company and other documents which are used in completion of this

project report

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ROLE OF THE GOVERNMENTS

The role of government, central and state level, in promoting tourism cannot be

overemphasized. The extent of government intervention is linked to the importance of

tourism to the economy, the political and economic system of the country, the level of

development and the establishment of the country in the international tourism scenario.

The government should not only facilitate growth through its policies and incentives,

but also make the presence of the nation felt at global level summits and events and

showcase it as an attractive destination. The impact of infrastructure on tourism

development is only increasing with the increasing expectations and this calls for huge

investments possible only through the government. Political stability is a major factor

for foreign investors to invest in a newly emergent high growth Indian economy with

myriad openings for investments in the hospitality and aviation sectors. The nation

needs to projected as a haven for investing with a large reservoir of skilled and semi-

skilled manpower. The policies should be backed by a degree of national consensus.

Issues like war and terrorism act as severe deterrents for tourism in general and

inward tourism, returning diasporas and business travel in particular. The government

ought to prevent such unpopular actions and come up with properly thought-out

damage limitation measures. Political decisions can change and impact the brand image

of a country. For example, Malaysia has succeeded despite an autocratic president and

being labeled a “Muslim nation”. It has taken care to ensure minimum negative impact

on its image from extreme factions. Singapore rapidly controlled SARS and did its

image a lot of good. India is not looked at as a rogue state. But the focus on terrorism is

a crucial element of a country’s image. India and Pakistan have not signed the Non-

Proliferation Treaty whereas Iran has. India and Pakistan possess nuclear weapons,

17

which, in the case of Iraq, was one of the official reasons for the US to justify its

military invasion. Being on “the right side” politically is a crucial factor in the way

the US and the West perceive other states. This calls for sound leadership, smart

political positioning and maneuvering.

The government should create a small, dynamic and powerful steering group in

order to promote the nation as an alluring destination (similar to Public Diplomacy

Strategy Board, UK), which has the personal backing of the PM or the President.

Easing bureaucracy, visa regulations, single window clearances, improved

infrastructure would be huge steps towards greater tourism. Many companies today are

proud of the fact that they achieve despite the governmental policies. This calls for a

mindset change at the top.

The recommended functions of a National Tourist Organization (NTO) as listed by

the UN are:

1. Research

2. Information and promotion within the country

3. Regularization of standards of lodging and restaurants

4. Control of activities of private travel agencies

5. Publicity overseas

6. Technical and judicial problems

7. International relations

8. Development of selected areas

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9. Overall tourism policy and promotion

Each of these functions would require efforts of the NTO in administration, production,

marketing and financing. The Department of Tourism, which operates under the

Ministry of Tourism was created to achieve the objectives. Also, Indian Tourism

Development Corporation (ITDC) at the national level and similar bodies at the state

level were created. The Department of Tourism has offices in India and abroad to

liaison with the state governments to promote tourism in India and to handle tourist

enquiries, disseminate tourist information and publicize. The Indian Tourism office at

Tokyo won two international awards for the best booth design and best folklore

competition at Tour Expo held at Daegu, South Korea for excellent tourism promotion.

The government has been active in promotional activities and it is doing its bit to give

a fillip to the sector. The Incredible India campaign has recently won two Pacific

Asia Travel Association (PATA) gold awards at the annual meet of the association in

Macau. Lately, the government has identified 31 villages across the country (Himachal

Pradesh, Gujarat, Maharashtra, Bihar, Karnataka, Madhya Pradesh, Andhra Pradesh,

Kerala, Tamil Nadu, Orissa, Assam, Sikkim, Rajasthan and West Bengal) to be

developed as tourism hubs.

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Another domestic campaign of the Ministry of Tourism is the Atithi Devo Bhava

campaign which seeks to make Indians more tourist-friendly. The campaign will

involve sensitization, screening, induction, training and orientation, certification and

feedback of key stakeholders of the industry – taxi drivers, tourist guides, operators,

immigration officers, tourist police and others who have direct interaction with inbound

tourists.

The government should also encourage the private sector in the tourism industry so

as to create more and better facilities. The organized sector in India has players like

SOTC and Thomas Cook, which plan and execute inland as well as abroad package

tours regularly. There are local tour operators catering to the needs of cities, who

provide conducted tours on the lines of government operated tours with added

advantage of flexibility of choice about tourist places and duration.

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SUB-SECTORS OF TOURISM

India is so diverse geographically as well as culturally that the tourism marketers can

offer innumerable segmentation to the prospective tourists all over the world. The

following is a list of the types of tourism in India, which offer a plethora of

entrepreneurial opportunities. The packaging and marketing of each of these types have

to be done considering the target audience, the attractions being marketed and available

resources. Most of these forms of tourism are existent for quite a few decades,

however, their categorization and segmented packaging for different sets of audience

has been a recent trend. The list is not exhaustive, as more forms can evolve along with

the changing expectations of the people.

Adventure Tourism:

Trekking, angling, rafting, jeep safari, elephant safari are the in-things. The desert

camel safaris of India, being a great way to see the desert and to enjoy a novel and

adventurous holiday are now one of Asia's fastest selling adventure holidays.

Mountaineering has always been a popular tourist activity, owing to the presence of

mountain ranges like Himalayas, Nilgiris and Aravallis. The packages that would

attract adventure seekers in big numbers are paragliding, scuba diving (Andaman &

Nicobar, Lakshadweep), skiing (Himachal Pradesh) and rock climbing (Himalayas,

Kumaon, Garhwal regions). Suitable attractions do exist for almost all adventure

activities. The issue is to develop facilities and showcase to the world in an appealing

manner.

21

Since adventure sport is already an established tourism product worldwide,

maintaining global standards in product quality and service standards is essential to

develop sustainable advantages. In India, this high-risk segment leaves much to be

desired in terms of technical and safety standards. There is a dichotomy between the

state and central government approval standards for adventure service providers. In

fact, state government approval standards are perceived to be quite diluted, leading to

mushrooming of adventure tour operators not properly equipped to service the niche

segment.

Absence of certification courses for instructors and guides for mountaineering,

trekking, skiing, river rafting or paragliding leads to a scarcity of properly trained

manpower. Introduction of standard communication gadgets is necessary in order to

meet the international safety standards. As India is on the growth platform, lapses of

this sort would be deterring.

Heritage and Cultural Tourism

India is hailed to have a diverse culture and a rich heritage dating back to several

centuries. The domestic and international campaigns are aimed at showcasing the

diversity while promising the “authentic experience” of the cultures that tourists

around the world look for. It is important to understand through experience and

analysis what exactly is perceived as authentic by the outsiders. An observation of the

ways through which cultures represent their food, music, dance, holidays and other

expressions to tourists and a thoroughly comparing and contrasting each from a global

perspective would prove helpful in enhancing the tourist interest in Indian culture.

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The Indian culture is so diverse that there is lot of untapped potential in this segment in

the domestic sector too. While the national campaigns address the diversity aspect, the

state level campaigns should bring out the unique aspects of the state’s culture and aim

them at both foreign and domestic tourists.

Textile circuits are offered as a USP by those tour operators who want to offer

something beyond the regular heritage sites. Indian designs and works like the tie and

dye, tussar silk weaving are looked at as exotic and being increasingly adopted by

leading western designers in the fashion circuits. This could provide etc thrust to the

local community and the much needed encouragement for a variety of dying crafts.

These activities being labor intensive would result in a greater income multiplier,

influencing larger number of people. This is one area where encouragement of direct

sales from the local craftsmen is possible so as to minimize leakages and maximize the

benefits of tourism to the local communities.

Arts and crafts too play a major role with them being a significant reflection of the

culture. The government and the tour operators need to promote these aspects. They

can add more content to their packages as well as help increase the income levels of the

artisans. Music and dance are already being incorporated into the tourist packages to

display greater variety. The local artists are benefiting from the support. But the

preservation of authenticity that translates into the experience to the tourists is a

concern as very often the motives to perform tend to get commercialized.

Religion is a dominant aspect of the Indian culture. In fact, the west views India as a

land of mystics and hermits. This image can be exploited to promote pilgrimage tours

and spiritual tourism. The demand is increasingly owing to the attraction to all

cultures oriental and the increasing stress in the lifestyles. The variety of temples in

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India is probably unmatched. Architecture and rituals across the country enable a wider

offering. The sheer number of fairs and festivals throughout the year give enormous

number of themes and opportunities for promotion. As most of the festivals are local in

nature, the campaigns might be designed by the local organizations and operators,

while the promotion can be done on a national level when attracting people from

different parts of the country and the world. The occasions being distributed throughout

the year would be able to reduce the seasonal nature of the tourism industry.

The Indian Railways is acting as a unifying factor and doing its bit to promote the

different regions. Some of the well-received initiatives include Palace on Wheels and

the Royal Orient. These offer luxury experiences through facilities, décor, comfort and

style. The trains are playing an increasingly important role in connecting the

destinations, while offering tourist facilities on board too.

Health Tourism

India is gradually gathering popularity as a health tourist destination. It attracted

approximately 180,000 medical tourists in 2004. The growth in this segment was 25%

during the year. According to a recent McKinsey study, India would be in a position to

generate health-care tourism revenues to the tune of $2.2 billion by 2010.

The country needs to exploit the cost advantage it can offer to a health tourist, a CII

study has said. Some facts in this regard:

A heart surgery in the US costs $30,000 as compared to $6,000 in India.

A bone marrow transplant in the US costs $250,000 and $26,000 in India.

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Clinical outcomes in India are at par with the world's best centers, besides having

internationally qualified and experienced specialists. Further growth in the sector will

be fuelled by the development of the Golden Quadrilateral highways project, the

upgrades suggested for the metro airports and improved air connectivity.

The proposal to introduce special medical visas is expected to boost the health care

tourism. Under the new systems, patients may have to provide only medical records

and proof of appointment at healthcare institutions for getting visas which might be

upto a duration of 12 months.

With yoga, meditation, ayurveda, and other indigenous systems of medicine like

unani and siddha, India offers a unique basket of services to an individual that is

difficult to match by other countries. Yoga has unprecedented levels of acceptance in

the West, owing to stressful lives and increasing health-conscious.

Yoga can also be offered to patients undergoing treatment for asthma or arthritis as a

part of health packages. The increase in the number of massage centers and spas has

led to an increase in the local incomes as well as the attraction of a destination. The

competition in these services is tense, with Indonesia and Thailand being the leaders.

Rather than catering to specific ailments, in order to target a wider set of audience the

health tourism can be offered as way to rejuvenate and re-strengthen physically,

psychically and spiritually. Networking with hospitals, hotels and travel service

providers is essential.

There is still a need for legislation in these areas, drawing the lines of responsibility of

different parties involved – the foreign patient and the local medical organizations. It is

important to explain the intricate issues in the procedure and package as it deals with

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peoples’ lives so that they do not feel deceived. The ethical aspects need to be taken

care of to sustain the growth in this sector.

Eco Tourism

In the 1990s, tourism received increasing attention especially in developing countries

as it is has potential for generating income while creating incentives for

conservation. It is argued that tourism allows for the use of areas, which are otherwise

of low value, such as remote beaches, but perfectly meet the demands of the growing

travel industry.

With increasing awareness about nature, India is serving as an eco-tourism destination.

The attractions are a wide variety of wildlife, flora and fauna in idyllic surroundings.

It is considered an ideal development keeping in tandem with ecological development

globally. Private entrepreneurs have also taken up tourism schemes in this belt.

Promotion of this sector requires a number of clearances for the concerned

authorities as most of the destinations are protected reserves.

Nature-based tourism a sub-sector of tourism can be an important channel for

redistributing resources from countries who demand higher nature based vacation to

developing countries, which comprise mega-biodiversity regions and protected parks.

This is because an overwhelming majority of species is located in developing countries.

But these developing countries face more serious problems like rapid population

growth, debts, over-exploitation of wild resources, agricultural expansion, deforestation

etc., which result in the loss of valuable biodiversity and degradation of national parks.

Industrialized countries on the other hand are characterized by high and increasing

demands for nature-based vacations, with protected areas representing first-rate

attractions. Tourism could therefore be a means of redistributing economic

26

resources, mitigating the socio-economic situation both at local and national scale and

contributing to biodiversity conservation.

The World Conservation Union (IUCN) and ecotourism society define ecotourism as

“responsible travel to natural areas that conserves the environment and sustains the

well-being of the local people.“ However for tourism to be called ecotourism, it should

be fully compatible with the conservation goals of the country, while at the same time

pose minimum threat to the continuation of local culture and society. Moreover, it

should contribute by means of income and education to the contribution of ecosystems.

The criteria for ecotourism are:

Minimum physical and social impacts on the visited area

Ecological education of the tourist at the natural site

Notable economic participation by local tourists.

The optimistic view is that tourists are an economic force that can promote the

conservation of the natural attractions that entice the tourists in the first place. Under

this concept, revenues from tourists, in the form of entrance fees, domestic airfares,

accommodation and food, hiring charges of the guide, sale of local goods such as

handicrafts and souvenirs and tax revenues levied on the above, are distributed among

the population that is most likely to exploit the natural areas. Such a transfer of revenue

establishes a direct link between conservation and personal income.

The pessimistic view has been that ecotourism cannot lead to sustainable

development. By creating economic disparities between tourist destinations and the

economies that surround them, the expansionary influences of tourism also create

pressures for population growth through migration to fill jobs linked directly or

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indirectly to tourism. In addition to these due to flying, tourism causes significant

environmental damage costs.

Another issue of concern is as more and more tourists arrive in the country,

governments in developing countries often turn to ecotourism as the major option to

generate economic benefits without adequate planning. This can lead to unsustainable

growth in the country, which can be avoided only through appropriate measures. The

economic potential of ecotourism has remained unrealized so far because a major

proportion of the nature-based tourism is characterized by non-use values. These non-

use values often accrue to tourists from the global community, while the developing

countries face the costs for preservation. Many nature based tourist destinations in India

charge a nominal fee or no fees at all. At present, most ecotourism spots do not even

generate enough financial resources to cover their maintenance costs. Unless the costs

of maintenance of the parks and the opportunity cost of protection of these nature-based

tourist destinations are realized in the form of entrance fees, this would result in a huge

burden on host countries. Thus, effective planning, management and control are a

precondition for the sustainable growth of ecotourism.

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ANALYSIS

AND

INTERPRETATION

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The tourism sector in India is witnessing an impressive growth curve.

This is evident from the table given below.

India Estimates and Forecasts

2004 2014

India INR bn

%

of

Tot

Growth1 INR bn

%

of

Tot

Growth2

Personal Travel &

Tourism927.3 5 10.3 3,612.90 6.1 9.1

Business Travel 114.5 --- 13.9 387.4 --- 7.6

Government

Expenditures36 1 4.3 96.2 1 5.1

Capital

Investment485.3 7.2 7.7 1,663.90 7.8 7.7

Visitor Exports 202.3 4.8 11.9 779.4 3.3 9

Other Exports 81 1.9 14.1 487.9 2.1 14

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Travel & Tourism

Demand1,846.30 --- 10 7,027.70 --- 8.8

T&T Industry

GDP618.4 2 9.1 2,002.30 2.1 7.1

T&T Economy

GDP1,477.40 4.9 8.7 4,972.50 5.2 7.5

T&T Industry

Employment11,404.00 2.6 2 12,441.20 2.6 0.9

T&T Economy

Employment24,456.60 5.6 2.1 27,790.00 5.7 1.3

Source: World Travel and Tourism Council

Over the years, tourism has emerged as a major segment of Indian economy

contributing significantly to the foreign exchange earnings which have increased from

Rs. 32 crores in 1974-75 to more than Rs.10000 crores by 2001. In the year 2000, 5

million tourists visited India. The highest number of foreign tourists i.e. 43% visited

India for pleasure, 25% for business and 11% for meeting friends and relatives. The

tourists below the age of 30 years are predominantly pleasure seekers. The pride of

place continues to be the Golden Triangle i.e. Delhi, Agra, Jaipur circuit.

India's visibility on the world tourist map has just got better. The World Travel and

Tourism Council (WTTC) selected New Delhi to host its fifth Global Travel and

Tourism Summit in April 2005.

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India has the potential to become the number one tourist destination in the world with

the demand growing at 10.1 per cent per annum, the WTTC has predicted. In India,

the Government spending on tourism is 153rd in the world at 0.9 per cent. China

spends 3.8 of its budget on tourism and rates fifth in receiving the largest tourist

arrivals (31.2 million) after France, U.S., Spain and Italy.

Indian Travel & Tourism Total Demand Indian T& T Total Demand

(1990 constant US$ billion) (cum. real growth, %)

Indian Mkt Share of S.Asia Total Demand S.Asia T& T Total Demand

32

(cum. real growth, %)

Indian Mkt Share of World Total Demand World T& T Total Demand

(cum. real growth, %)

33

HOSPITALITY SECTOR

With the spurt in tourism, it is only natural that Indian hospitality is witnessing a boom.

Earlier, top Indian companies were restricted to the major towns and cities. But today

the scenario has changed. The top companies are setting up hotels in smaller towns and

cities. Several foreign chains have entered the Indian market. The result is that the

quality of service has improved. The overseas players have brought in efficient systems

and service standards from Europe and the US. Competition has forced Indian hotel

groups to improve their standards.

Some of the recent expansions announced by the major players are listed below:

The ITC Welcomgroup has invested Rs 1,500 crore and will further invest Rs

1,000-1,500 crore with thrust on super deluxe luxury properties in the key metros.

The Leela Palaces and Resorts plans to invest over Rs 900 crore in three more

hotels in Udaipur, Chennai and Hyderabad.

The Grand Group of Hotels has announced a Rs 1,000 crore expansion taking its

presence to 15 from the current seven.

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WAYS TO MARKET TOURISM

India receives three million foreign tourists a year while a small country like Thailand,

with much more limited geographic and historical attraction, receives more than three

times that number and they plan to double it to 20 million tourists in the next decade.

The importance of tourism is not only the foreign exchange it brings in but, more

importantly, in the employment it generates at several locations and in several layers of

society -- ranging from airline staff to hotel employees and scooter-taxi wallahs.

India is yet to be marketed to its full potential as a tourist destination.

The first step in any marketing exercise is to identify the customer and his or her

needs and inclinations. The major sources of such tourists are the three richest regions

of the world, viz. the US, Western Europe, and Japan. And in those regions, the target

groups we have to attract are people who have the time and the money.

These are usually people who have retired and can afford to explore the world outside

their own immediate reach. The younger backpackers or student-type tourists are not

sufficiently well funded.

Taking our primary target group of retired people, there is one common characteristic

among such people throughout the world. They like to play golf and explore history,

religions, and arts, for which they had little time when they were busy with their

careers.

So far, the Indian tourism industry has focused on selling ancient, medieval, and

Mughal India, the temples and forts of ancient days. This is good but it isn't enough.

35

Secondly we need to explore opportunities for leisure tourism, and for playing

games like golf. There are people who will come to enjoy India's winter sun, and so

Goa has been marketed, but India has many more beaches.

More recently, Kerala has successfully marketed itself for everything -- from the

ayurvedic massage to its backwaters. India's hill states can easily attract more

tourists than Nepal does, especially now that Nepal is in trouble, but Nepal is much

better organized for trekkers and mountain-lovers than Uttaranchal or Himachal

Pradesh.

The Japanese and Chinese will willingly do the Buddhist circuit in much greater

numbers, if we can organize a pleasant experience for them in Bihar. Then, our colonial

history presents its own opportunities.

Fortunately, we as a nation have become confident enough in our own standing and

achievements that we can rise above anti-colonial feelings and talk about the colonial

period without inhibitions or resentment.

Although the Mughals colonised India and even converted our people to their religion

four centuries ago, today we take pride in showing tourists monuments like the Taj

Mahal as the pride of India.

With the passage of time, the same is happening to the monuments and cities built by

our European colonisers -- the Portuguese, the Dutch, the French, and the British.

For a European tourist it is often more interesting to see remnants of the adventurers

from their own countries. Even for the Americans, it is easier to relate to such sites as

most of them are descendants of Europeans.

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Fortunately, we have several such monuments and sites bearing witness to the history

of our European colonisers. We should use them to market our country.

Lets take the case of Pondicherry. It has several French remnants, including the use of

the French language. In France schoolchildren are still taught about the French empire

in India, which consisted of Pondicherry, Mahe, Karaikkal, and Chandannagar.

But perhaps the people who have most historical connections with India are the British

and through them their cousins from the US. The British East India Company began its

operations in Madras.

The other legacy of the British is the plantations of the Nilgiris on the Eastern side and

Munnar on the Western side. The pioneering British planters braved malaria and wild

animals to create the rubber, coffee, and tea estates which are totally Indian-owned

today.

There are very few locations in the world where this can be seen. A travel film on this

section of India in itself can be a great advertisement for India.

In short, if we were to look at different parts of India against the canvas of the history

of the European merchants in India, we can create a whole saga of great interest to

Western tourists.

No other country in Asia has this asset and it is time for us to exploit it by

marketing this part of our history.

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PACKAGING: A Tourism Marketing Tool   

Time is a valuable commodity for today's travelers. Dual- income families find it

difficult to schedule vacation time; family members often have jobs or activities that

conflict; or an individual's job makes long vacations impractical. Packaging is a popular

technique used for attracting these customers, because packages make travel easier and

more convenient.

In the hospitality and tourism industry, "packaging" is the process of combining two or

more related and complementary offerings into a single-price offering. A package may

include a wide variety of services such as lodging, meals, entrance fees to attractions,

entertainment, transportation costs (air, auto, train, cab or bus), guide services, or other

similar activities.

Packaging can also create a variety of benefits for participating businesses.

Why Packages Are Popular?

Travel packages have become increasingly popular over the years. They are attractive

because they benefit both the customer and participating businesses; packaging

provides convenience and value to the customer, and added revenue for participating

businesses.  

Benefits to the Customer:

Packaging can be an effective marketing tool to provide several customer benefits.

These may include:  

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Ability to budget for trips. Packages include most of the components a customer

must pay for during a trip. The customer pays at one time and has a good idea of the

trip's total cost.

Increased convenience. Trips can be time consuming and difficult to arrange.

Several telephone calls and letters may be required to arrange for tickets,

accommodations, reservations, and other components of a trip.

Greater economy. Businesses that package can frequently purchase tickets, meals,

and other package components at wholesale prices.

Popular programs and activities. Visitors and travelers are often unfamiliar with

many of the activities and attractions in an area: a package can help customers find

them easily.

Specialized interests. Packaging provides a unique opportunity to design

components of a package for specialized interests.

Packaging can be used by businesses to help improve profitability and build

customer volume.

Smooth business patterns. Use packaging during low demand periods to add

attractive features to the business's service or product, thus generating additional

business.

Joint marketing opportunities. Packaging can allow the business to reduce

marketing costs or start a new program one could not normally afford by joining

with one or more businesses to conduct a marketing or advertising program.

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Improved target marketing. Packaging can be an effective tool to tailor tourism and

travel products for specific target markets.

Greater holiday weekend business. Packaging can be used to highlight special

holiday weekends by developing services appropriate to the theme of the weekend.

Unique recurring events. Businesses can create their own events that can occur

throughout the year. Events could be tournaments such as chess or bridge or crime

re-enactments that let guests do the detective work.

Redirected traffic to lesser-known attractions. Directing visitors to often overlooked

attractions can help in two ways: heavily visited attractions may be offered some

relief, while newly discovered attractions may thrive and prosper.

Items to Consider in Developing a Package:

Before developing a tourism packaging program, the business should devise a

marketing plan through practical marketing research. The business owner should ask

him/herself the following questions:

Are you willing to do market research to determine who your customers are and

what they want?

What are the potential attractions, businesses, or  marketing service firms that could

provide a part of the package?

What are potential marketing and promotional networks that will help spread the

word about your product?

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Will the physical appearance and service skills of your business match the target

audience?

Does your business have the ability to manage and service the customers you

generate through your packaging program?

Are you prepared for a risk? Because you will be including customer service

activities that are not under your direct control, you will be required to develop

formal, written agreements between the cooperating businesses.

Elements of a Successful Package:

Include attractions or demand generators.

Provide value to the customer.

Be well planned and coordinated.

Offer consistent quality and compatibility among elements.

Provide a distinctive customer benefit.

Cover all the details.

Generate a profit.

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Rural Tourism: Strategies for Marketing Rural Tourism in India

India, traditionally, has been a long haul tourist destination and provision of rural

tourist destinations in its basket of destinations will go a long way in showcasing and

marketing India in a better perspective. Further, tourism can also be sold as post-

convention destination not only for the conventions held in India but also for

neighbouring countries.

As tourism becomes established as an economic activity, marketing strategies

concentrate on increasing the volume of tourists. This, at times, creates a host of

unforeseen consequences. Thus, it is necessary that the objectives of tourism

development in relation to a region, city or (a rural area) leisure spot be clearly stated.

In fact, the developmental role of marketing has to be kept in mind while marketing

regions, cities or leisure spots(a rural area). This developmental role is to be further

strengthened by socially responsible marketing.

When it comes to cities and leisure spots/heritage sites - particularly in the rural areas,

marketing becomes a major problem. This is because the local bodies are either not

aware about the developmental role of tourism or are constrained by their own politics

or lack of funds. Before we go further in dealing with these aspects it must be noted

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that in the marketing of a destination (region, city or leisure spots) we should consider

the following aspects:

Attractions - like promotion of rural tourism around a heritage site

Infrastructure (accommodation, cuisine, hygiene, clean water (basic amenities etc.)

Accessibility (roads, means of transportation)-I gather should not be too far from

railhead or airport: 2-21/2 hr.

Carrying capacity of the destination,

Environmental issues (Pollution, Eco-fragility, etc.)

Safety, law and order situation (for both the local population as well as tourists),

etc.

In India we find different destinations in different stages of what is termed as the

product life cycle. For example, a region like Goa, a city like Shimla or a leisure spot

like the Badkal Lake have reached a maturity level. They no more require promotion

and have similarly exhausted their carrying capacity (infrastructural, environmental or

social impacts). Their problem on the contrary is of retaining their image, checking the

decline and doing away with the negative impacts of tourism. In marketing jargon what

they require is internal marketing, product improvement, checking the decline, proper

maintenance, etc.

On the contrary look at a region like Kumaun which is struggling hard to promote its

attractions in different cities (other than Nainital) and rural areas and develop its

tourism products. If proper questions are not posed and answered, the planners and

developers blindly imitate outside concepts and models of development without taking

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into consideration the local needs, customs, attitudes and constraints. In such a situation

the destination may not take off at all or the entire developmental investment may go

waste. The questions to be answered and the issues to be resolved would be many but

we take a few here for consideration:

1. What type of attractions (nature, adventure or cultural etc.) within the region have to

be developed into tourism packages?

2. Whether these attractions have to be packaged and promoted as a mix or as separate

attractions?

3. Do we have a market for them?

4. What type of infrastructure is to be created?

5. Is the local population receptive to tourism?

6. If the destination is highly seasonal, should huge investments be made or (we) one

should develop alternate and subsidiary accommodation?

7. How to ensure that the ecology and environment at the destination are not damaged

by tourism?

8. What type of tourists are to be attracted? Etc.

Having resolved issues submitted for your consideration regarding enhancement of

rural tourism, we could have a destination with unique selling preposition e.g.

Aathiti Devo Bhava is more practiced in rural India than anywhere else

An experience one cannot have anywhere in the world - equate with west

Actually living with people

Diversity of culture, language, food, craft

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Exposure to heritage sites

Coming back to nature

Health - physical and mental both: yoga, exposure to local medicine or Indian

system of medicine e.g. Ayurveda, Unnani. Then there is yoga, various types of

massages

Tranquillity - away from humdrum, stressless and strain free stay

Not necessarily though promoting vegetarianism can also be a USP

Environment friendly

Freshness in food ingredients when procured locally - may be organically cultivated

Local crafts and cottage industry can provide unique shopping experience

(inexpensive)

For investors also, promotion of rural tourism investment could bring in higher returns

on comparatively low investments.

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CONCLUSION

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CONCLUSION

The Tenth 5-year plan (2002-2007) of the government treats tourism as a major engine

of economic growth and employment generation. Under the Plan, total resources of

Rs29 billion were allocated towards tourism. Given the strong emphasis of the

government on the promotion of tourism and improvement of the tourist infrastructure

and the vast untapped potential of India as a tourist destination, there is little doubt that

future prospects for Indian tourism are bright.

Tourism is perhaps the most under rated sector in India which can be great driver of

economic growth in and generate millions of jobs as well. India is a country with the

highest potential as far as the tourism sector is concerned.

However, the challenge is to effectively market tourism in India and leverage on the

potentials of the sector. The marketers have to get their marketing fundamentals in

place to capitalize on this promising sector. There are lessons to be learnt form

effective tourism marketing efforts by Indian states like Kerala as well as foreign

countries like Malaysia, France and Hong Kong. These learnings have to implemented

with the support of the government and the determination of entrepreneurs to turn India

into a great tourist destination as make tourism one of the most effective drivers of the

Indian economy.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

www.indiadata.com

www.tourismstats.com

www.world-tourism.org

www.sabre-holdings.com

www.hotels.com

www.expediainc.com

www.indiatourism.com

www.wikipedia.org

www.incredibleindia.org

International Tourism Management-Sagar Publications

Economic Times

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