TOURISM AND ECONOMIC DEVELOPMENT UNIT IV



GROWTH OF TOURISM INDUSTRY
Tourism Industry Growth in any country is prone to the changing economic conditions. In the event when a country is passing through a low phase or an individual's job is at stake, not many people choose to travel. This poses a limitation in the spending power of the individuals. People under these circumstances tend to settle for low budget restaurants, hotels or opt for amusement parks and nearby places.
Tourism and economy:
Occasionally, Tourism Industry is subjected to several snags. These hindrances causes the economy of a country to become slow, resulting in the GDP or gross domestic productivity being slow and consequently employment opportunities get affected.

Improving Tourism Industry Growth:
The Ministry of Tourism adopts many policies to counteract hurdles and obstacles which come in the way of the development of Tourism in a country. Policies adopted by Ministry of Tourism are aimed at enhancing services and tourism tools to attract as many tourists as possible. This also includes working onEco tourism projects. Every possible effort is made to set standards as per norms of the World tourism Industry.
Tourism improvements programs:
Ø  Tourism improvement programs aim at:
Ø  Making the marketing tools and promotional tools strong
Ø  Employ trained personnel
Ø  Make the programs act as catalyst in investments by private bodies.
Ø  Propounding projects and programs at the national level.
Ø  Carry out research work for the betterment of the Tourism industry.
Ø  Infrastructure is developed.
Tourism related industries:
There are many industries which are closely associated with other industries offering services to the common people. These industries can be summed up as below:
Ø  Hotels, Lodging services
Ø  F&B or food and beverage industry
Ø  Industry dealing with real estate, finance, leasing and insurance.
Ø  Retail market
Ø  Warehousing and transport industry.
If one wishes to know more about tourism industry, the following links may be browsed.
GROWTH OF TOURISM IN INDIA
      The number of Foreign Tourist Arrivals (FTAs) in India witnessed an increase in 2010 as well as 2011. It increased from 5.78 million in 2010 to 6.29 million in 2011 registering a growth rate of 8.9% over 2010. Similarly in 2010, it increased to 5.78 million from 5.17 million in 2009, registering a growth rate of 11.8% over 2009. 
      The Ministry of Tourism, as part of its on-going activities, releases print, electronic, online and outdoor media campaigns in the international and domestic markets, under the Incredible India brand-line, to promote various tourism destinations and products. In addition, a series of activities are undertaken in important and potential tourist generating markets overseas through the Indiatourism Offices abroad with the objective of showcasing India’s tourism potential. These activities include participation in travel fairs and exhibitions; organising road shows, Know India seminars & workshops; organizing and supporting Indian food and cultural festivals; publication of brochures; offering joint advertising and brochure support and inviting media personalities, tour operators and opinion makers to visit the country under the Hospitality Programme of the Ministry. 
      The Ministry of Tourism also provides financial assistance to stakeholders for promotion of tourism in the international and domestic markets under the Marketing Development Assistance (MDA) Scheme. 
      Development and promotion of tourism is primarily undertaken by the State Governments/Union Territory Administrations. The Ministry of Tourism, however, provides Central Financial Assistance (CFA) to the State Governments/Union Territory Administrations/Central Government Agencies for the tourism infrastructure development under the following schemes:
  1. Product/Infrastructure Development for Destinations and Circuits
  2. Large Revenue Generating Project
  3. Assistance to Central Agencies for Infrastructure Development
  4. Computerization and Information Technology
  5. Capacity Building for Service Providers
            Ministry of Tourism is also implementing number of schemes of human resource development, market research, domestic and overseas promotion and publicity, Incredible India Campaign, development of various niche products, etc. 
CAUSES FOR THE GROWTH OF TOURISM:
Social/Economic
Changes in Technology
Product Development
Increase in car ownership
Increase in leisure time:
  • holiday entitlement
  • shorter working week
  • early retirement with pensions
  • ageing population
      Greater wealth:
  • larger incomes
  • less children
 • Two wage-earner families
Motorways
Jet aircraft
Computer reservation systems
Internet on-line booking

Package holidays
Theme Parks
Activity holidays
Weekend breaks
Ecotourism

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