Record Tourist Arrival

India achieved a significant growth in terms of foreign tourist arrivals in the last two years. A record growth of 26.8 per cent foreign tourist arrivals was achieved in 2004, while the growth was 13.2 per cent in 2005, taking India’s tourist arrivals from 2.73 million in 2003 to 3.92 million in 2005, indicating a robust growth of 43.6 per cent in the period 2003-2005. Foreign exchange earnings from tourism have also shown a phenomenal growth, achieving an increase of 35 per cent in 2004, and 20 per cent in 2005 over the previous year (in dollar terms), taking India’s foreign exchange earnings from US$ 3.5 billion in 2003 to US$ 5.7 billion in 2005. World Travel and Tourism Council has estimated that demand for India Tourism will grow annually at 8.8 per cent over the next decade, which will be the highest in the world. 

International Recognition

Ø                                   Lonely Planet has selected India amongst the top 5 destinations from 167 countries.

Ø                                   Condenast Traveller and i-explore has ranked India amongst top 5 preferred destinations in world.

Ø                                   ABTA (Association of British Travel Agency) has ranked India as No.1 amongst top 50 places for 2006.

Ø                                   Incredible India Campaign has been the winner of PATA gold Award for best Print Ad Campaign, PATA Gold Award for best destination campaign.

Ø                                   Incredible India Campaign has been ranked as the Highest recall advertisement by worldwide and has been given the Jury Award by Travelution, Netherland for the best advertising campaign for 2004.

Ø                                   TTG Asia has ranked the Department of Tourism as best National Tourism Organisation.

Ø                                   India was appointed chairperson of UNWTO task force to draw strategy for rehabilitation of tourism in the Tsunami affected areas.

Ø                                   India was elected to represent South Asia on the Executive Council of UNWTO, the highest policy making world tourism body represented by 150 countries.  

Revival of Tourism in J&K 

Revival of tourism in J&K has been taken up as one of the top priorities of the Government. Special package for revival of tourism in J&K has been announced. A number of projects, to give a boost to tourism in J&K, have been declared at a total cost of Rs.279.50 crore, which include setting up of 50 tourist villages, financial support to 12 tourism authorities, establishing a new tourism circuit covering – Lakhanpur-Basoli-Bani-Bhaderwah –Kishtwar-Sinthan-Srinagar. It also includes assistance to travel agents for marketing, training in tourism industry and developing skills of youths for employment and tourism industry.

                  

Boost to Rural Tourism

In view of the huge development potential of tourism, 71 rural tourism projects have been sanctioned to spread tourism and its socio-economic benefits to identified rural sites having tourism potential. The capacity building programme has also been taken up in partnership with UNDP for 36 rural tourism sites so that the benefit of tourism reaches the community at large.     

Efforts to Overcome Shortage of Accommodation

            In order to meet the rising demand of accommodation due to increased growth in tourist arrivals, Department of Tourism brought out guidelines for classification of Apartment Hotels, Time Share resorts and Guest Houses. The Department also sanctioned capital subsidy for 21 budget category hotels and interest subsidy for 160 budget category hotels during last two years.  In all 276 hotels in different categories were classified and 230 hotels were re-classified.  Approval was granted for 109 hotel projects with 7,206 rooms. In addition, 23 foreign technical collaboration in hotel industry and 9 cases of foreign investments were cleared.  

Medical Tourism

Initiatives have been launched to promote Medical Tourism, in partnership with the private sector, to make India a Global health care destination. The accreditation norms, price banding for identified hospitals and identified specialised medical services along with a list of hospitals, which could be used for health tourism purposes have been prepared by Indian Health care Federation, a NGO affiliated to CII, on advice of the Government. A new category of visa - "Medical Visa" has been introduced, which can be given for specific purpose to foreign tourists coming to India for medical treatment. The guidelines for accreditation of Ayurveda and Panchkarma centre have also been issued for implementation, to ensure required standard of services, so that holistic health tourism could be promoted.  

Cruise Tourism

Cruise tourism is emerging as a fast growing sector globally with huge spin offs because it generates large-scale business in all areas of travel trade. A draft concept and policy has been drawn up to make India an attractive cruise tourism destination with state-of-the-art infrastructural and other facilities at various ports and to achieve a target of 6 lakh cruise passenger landing per year by the end of 2010. Star Cruises Limited has launched its operation in India due to proactive policy of the Government to promote cruise tourism.  

Ensuring Safety For Adventure Tourists

            The norms and standards to be followed by land, air and water based adventure activities for tourism purpose have been developed.  

Tourism Infrastructure Development

The tourism infrastructure development projects, worth Rs.984.81 crore, were sanctioned for 570 tourism projects in all the States for creating a world-class experience to the tourists. The scheme of promoting Public Private Partnership for Large Revenue Generating tourism projects has been finalised. A new scheme of Viability Gap Funding for assisting private sector driven tourism projects has been launched.   

Thrust on North East

Major thrust has been given for tourism infrastructure development in North East including Sikkim, with 82 projects amounting to Rs.193.71 crore were sanctioned with the objective of developing it as a sustainable destination with community participation.  

Setting up of Convention Centres

With a view to increasing India’s share in the growing business of Meetings, Incentives, Conferences and Events (MICE) segment, it has been decided to support setting up of large and small Convention Centres with exhibition facilities at various metros and other cities. These Centres will not only fetch a large amount of foreign exchange but also give boost to other economic activities.   

Development Of Buddhist Circuits

Infrastructure upgradation of Buddhist circuits has been taken in a big way through identification of 22 important Buddhist sites throughout the country. The Government  has sanctioned 14 projects amounting to Rs. 57.22 crore for development of tourism infrastructure in 12 sites. The infrastructure development has also been taken up through JBIC for Ajanta-Ellora, amounting to Rs. 299 crore. The Government has also entered into an agreement for undertaking infrastructure development at Buddhist sites of Sarnath, Kushinagar, Kapilvastu, Shravasti and Sankisa in U.P., with JBIC for a loan assistance of Rs. 395.63 crore for total project of Rs. 680 crore.  A major campaign titled “Come to India-Walk with the Buddha” was launched in the SouthEast Asian market and in Domestic market for promotion of Buddhist circuit. In addition Buddhism has also been identified for tourism development in Bangladesh, Bhutan, India, Nepal and Sri Lanka through a common promotional campaign. 

‘Atithi Devo Bhavah’ Campaign

Atithi Devo Bhavah -  a nation wide campaign aimed at sensitising key stakeholders towards tourists, through a process of training and orientation was launched. It re-instilled a sense of responsibility towards tourists and re-enforced the confidence of foreign tourist towards India as a preferred holiday destination. 

Promotional Campaigns

Incredible India Campaign was given a new dimension with the “Colors of India” and “Wellness Campaign” in global market, which made its impact through growth of 26.8 per cent in tourist arrivals and 31.5 per cent in foreign exchange earnings. This campaign also went on to win several awards internationally. In addition to the global campaign, the domestic tourist market of 367 million was targeted for the first time through a series of campaign for “Taj 350 Years”, Andaman  and Nicobar islands, north eastern region, including Sikkim, J&K, Eastern India, Central India, Southern India, Buddhist circuit etc. A series of “Incredible India” Road shows were also organised in important overseas markets, with participation of senior level delegations from India.  

Initiatives for Quality Tourism Manpower Development

            A sum of Rs. 17.32 crore has been released for opening up of three new Institutes of Hotel management, one each in Haryana, Uttaranchal and Jharkhand. It has also been decided to open a new institute of Hotel Management in Chattisgarh. In addition, funds amounting to Rs. 37 crore were also sanctioned for upgradation of building, construction of new campuses and procurement of modern training aids for 20 institutes in the country. The capacity building schemes for Service providers was launched in its revised form to ensure quality tourism service providers through various training programmes in public private partnership. More than 40,000 persons were given training under this CBSP scheme. 

Training programmes for Guides were also restructured and refresher courses were also launched. Special training programmes for women service providers were also designed. 

Tourism Satellite Account

To give recognition to tourism as a source of income and employment generator in the economy, a Tourism Satellite Account (TSA) has been developed. This enables to quantify the benefits of tourism in terms of its contribution to GDP and employment (both direct and indirect impacts). India is among the few countries in the world to develop TSA. The results of the TSA study show the contribution of Tourism in GDP (both direct and indirect) as 5.90 per cent and the share in employment both direct and indirect as  8.8  per cent. 

WTTC and  SATTE

The Government supported the World Travel & Tourism Council (WTTC) annual summit in Delhi which attracted leading investors/hotelier from across the world. Support was also given to the South Asian Travel and Tourism Exchange (SATTE) in 2005, and 2006, in New Delhi, which were attended by Tour Operators, Travel Agents from Australia, Canada, South Africa, Germany, Israel, UK and the Latin American/Caribbean countries as delegates and also buyers and sellers from overseas and within the country. 

Boost to Domestic Tourism

The Government decided to recognise new category of Domestic Tour Operators to give further boost to Domestic Tourism through quality service and to ensure greater consumer satisfaction. 

India Tourism Development Corporation (ITDC) 

A radical turnaround has been recorded in ITDC from a turnover of Rs.184 crore with a net loss of over Rs.37 crore in 2001-02, to a turnover of Rs.379.78 crore with a net profit of Rs.39.03 crore in 2005-06. This includes total turnaround in flagship Ashok Hotel from a turnover of Rs.35 crore  (Net loss of Rs.15.09 crore) in 2001-02 to a turnover of Rs.93.03 crore (net profit of Rs.26.29 crore approx.) in 2005-06.

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