Service Industry- 2 - TOURISM-II

 

 Service Industry- 2 - TOURISM-II

Concept of Tourism

 The Concept of Tourism has been derived from the Latin word “TOMOS” & Hebrew word “TORAH” .

 Tourism in reality is not an industry but an activity. It is defined as an activity that takes place when people move to some other place for leisure or for business and stay at least for 24 hours.

 What is a Tourism Industry?

•A Tourism Industry may be defined as agroup or cluster of small firms which deals inproviding attractive and affordable holidaypackages to its customers, either within astate, country or at international level

.•Examples:- Cox & King, Thomas Cook, SOTC,Incredible India!.

 OVERVIEW

 Its boom time for India’s tourism and hospitality sector.

 A 5,000 year history , culture ,religion and alternative medicine fascinate both budget and luxury travelers alike.

 The focus of the industries on the “Atithi Devo Bhavah”campaign, targeted at the inbound foreign tourists in the country.

Translated literally this means “Guest is God”.

  PROMOTION OF TOURISM

 Incredible India!

:- AAMIR KHAN. (Brand Ambassador)

 Gujarat Tourism :- AMITABH BACHCHAN. (B.Amb)

 Kingdom of Dreams:- SHAHRUKH KHAN. (B.Amb)

 Goa Tourism:- PRACHI DESAI. (B.Amb)

 Kerala Tourism:- Govt. of Kerala (Incredible India!).

 Rajasthan Tourism:- Govt. of Rajasthan(Incredible India!).

 Madhya Pradesh Tourism:- Govt. of MP(Incredible India!).

 Government Initiatives

 Incredible India – Under this program the govt create promotes India through various integrated marketing programs.

 Atithie Devo Bhava – Under this program the govt create awareness among Indian people who come in contact with the tourist.

 Various Infrastructure building initiatives.

 Encourage religious tourism.

 A Business Environment comprises both theInternal & External Factors which affect theoverall smooth running of any firm, Industryor a large Business Organization.

 INTERNAL FACTORS

 Internal factors are those which are controllable and exists within the boundary of the business.

 They depict the:

1. Strength

2. Weakness

 EXTERNAL FACTORS

External factors are those which are uncontrollable and lie beyond the boundary of an Organization. They depict the Opportunities & Threat.

It includes the following:-

• POLITICAL Factors.

• ECONOMIC Factors.

• SOCIAL Factors.

• TECHNOLOGICAL Factors.

• LEGAL Factors.

• ENVIRONMENTAL Factors.

  •As far as Tourism Industry is concerned, it is alsoaffected by both; the Internal & External factors i.eits Business Environment.

•In order to judge the Internal factors of a TourismIndustry, a SWOT analysis has to be performed byeach and every Tourism Industry respectively.

 STRENGTHS

•Pleasant Weather .

•Ideal Geographical location.

•Good Image of the Company.

•Good Hospitality.

 •Lack of proper Marketing & Advertisement.

•Dependency on Third Party.

•Lack of adequate Infrastructural support.

•Funds constraining the development of region.

 •The concept of holiday is gaining popularity in Indiaamong various classes of people.

•Increased disposable incomes of the Indian middleclass.

•Adventure sports & trekking.

•Eco-tourism is gaining popularity.

 •Stiff Competition among various TourismIndustry.

•Environmental factors also impose a threat.

•Exploration of new tourist spots and hubs.

 POLITICAL FACTORS

•It includes political harmony and good execution oflaw & order within the state or country.

•Promotion of tourism by the govt. , issues related torules & regulations of the state or the country.

•Tax Benefits & discounts provided to the varioustourism industry operating therein.

 •It includes the overall economic status of the stateor the country, whether, rich or poor.

•The per capita income of the individuals, theirstandard of living, education, disposable income.

•The percentage of the share which the govt. isready to spend on tourism and recreation.

 •It includes factors related to society and socialwell being of individuals living in an area.

•Demographic factors are taken into account suchas the number of individuals living in an area, agegroups, social customs, traditions, beliefs etc.

•Certain obligations and social responsibility hasto be followed by govt. and tourism industry.

 •It lay emphasis on the use of complex andsophisticated technology in order to promote andmarket tourism industry.

•The use of mass media, internet, magazines andpresentations so as to advertise the company.

•Providing customers with easy payment facility viaonline and use of credit cards and wi-fi facility on thego, easy recharge of mobile phones etc.

 

 •It includes those factors which have to be followedstrictly by law (both; the customer & the tourismdepartment).

•Issues related to conservation of Environmentallaws and regulations, issue of tourist visas tointernational customers, holding of license by thetourism company , rules & regulations etc.

  •The key Environmental issues concerning theTourism industry are:-

•Maintaining the rich bio-diversity of the touristspots & hubs.

•Pressure on Ecosystems prevailing in thosegeographical locations.

 SCOPE OF TOURISM

 Tourism in India is the largest service industry, with a contribution of 6.23% to the National GDP and 8.78% of the total employment in India.

 India witnesses more than 17.9 million annual foreign tourist arrivals and 740 million domestic tourism visits. The tourism industry in India generated about 100 US$ billion in 2008 and that is expected to increase to US$275.5 billion by 2018 at a 9.4% annual growth rate.

 In the year 2010, 17.9 million foreign tourists visited India. Majority of foreign tourists come from USA and UK.

  According to World Travel and Tourism Council, India will be a tourism hotspot from 2009– 2018, having the highest 10-year growth potential. The Travel & Tourism Competitiveness Report 2007 ranked tourism in India 6th in terms of price competitiveness and 39th in terms of safety and security.

Despite short- and medium-term setbacks, such as shortage of hotel rooms, tourism revenues are expected to surge by 42% from 2007 to 2017.