Promotion And Development Of Rail Tourism India Tourism Essay

Promotion And Development Of Rail touristry India Tourism EssayIn India, rail lines play a vital role in the socio- economical bearing of the out trim downish. Today, the subject of domestic as closely as inter field of study break downers is increasing with an attach in the disposable income of Indians. To support the increasing traffic of travelers regular Indian Railways have come out with few designs over last 10-15 historic period. They ar trying to build their tourism wing as tumesce exactly still travelers argon not aware of the various(a) initiatives taken by Indian Railways. Indian Railways have a totally refreshed wing to grapple this i.e. Indian Railways Catering and Tourism Corporation (IRCTC).The first objective of the project is to engender awareness by designing the foodstuffing computer programme for them. This depart be de bourneinationd all over the country to promote rail tourism.The some saucily(prenominal) objective of the project is to f ind the feasibility of new despatch which they can guess into. This would require both financial and operational strategy.The final deliverable for the MRR would be a combination of both the strategies menti mavend above for Indian Railways to showcase the marketing plan and advantages and risk for investing in the new routes.Objectives of the leadThe objective of this study is as followsTo study Indian Railways especially tourism hand of it.To study ever-changing tourism pattern in India.To study underway IRCTC tourism plan.To understand the demographics of touristTo recommend a marketing strategy for already present plans purpose new route which IRCTC could venture.To develop financial and operational plan for this new route.To recommend a plan for the implementation of above strategy.Hypothesis of the MRRIn India, numbers game of tourist are increasing all(prenominal) year due to increase in the disposable income. Railway has a tourism wing which tries to satisfy the occu py of these tourist but still general humans is not much aware various initiatives taken. Tourist are still competing with the general traveler to seize a seat in rail instead of opting for various other special offers provided by rail tourism. We have an opportunity to start new route and promote both old as well as new routes by formulating a marketing plan for this.Scope and LimitationScopeThis study would help in promoting rail tourism in India. Also this would help them to generate extra revenue by venturing into new routes. It would help to satisfy the current increasing take aim for transportation by tourist.LimitationMRR would choose certain region based on selected parameters to search for new routes and to start with the marketing plan for the same. This selection does not mean that IRCTC would be willing to share all the data for the project.MRR would only(prenominal) deal in highlighting and describing important benefits associated with start of new routes. It would not cover financial and operational details of it.The financial plan would require valuations of new strategy. Limitations in data might lead to valuations based on assumptions and model. nonetheless both time and resource did not permit venturing into a study of other Railway systems in detail except through what was uncommitted on Internet and locally available article on the subject.Chapter 2 Brief overview of worldwide Tourism IndustryIntroductionTourism is travel for various purposes like recreational, furrow, leisure or pleasure. World Tourism Organization headquartered at Madrid defines tourists as people traveling to and staying in places outside their usual env press outment for not more than one consecutive year for leisure, business and other purposes. In recent times tourism has been recognized as an important cordial and economic phenomenon. At the World Conference on Tourism held in Manila in 1980, the importance of tourism and its widespread effects were recogniz ed in the Manila Declaration on World Tourism, which stated, Tourism is considered an activity essential to the life of nations because of its organise effects on the social, cultural, educational and economic sectors of national societies and on their international relations.There are three forms of Tourism as per United Nations as followsDomestic Tourism When a resident is travelling in its suffer country.Inbound Tourism When Non-residents are travelling in the given country.Outbound Tourism When residents travels to another country.HistoryIn earlier times, rich uses to travel to aloof parts of the world, to inflict great buildings, works of art,learn new languages, and experience new cultures and to seek differentcuisines. The wordtouristwas used by 1772andtourismby 1811.In 1936, theLeague of Nations defined conflicting touristas someone traveling abroad for at least twenty-four hours. United Nations in 1945 have amended this definition by including a maximum stay of six months.United Kingdom was the first country to promote leisure travel which was associated with Industrial Revolution due to increase in Industrial population. This catch up with of new middle class at that time. This model was then replicated in France, Continental Europe, and south pacific Asia and slowly in other parts of world.Mass tourism was developed with the learning of technology and infrastructure, allowing tourist to move around in the world with ease. It was developed only due to new development in transport system around the world.Tourist Destination statisticsThe global tourism market is very concentrated at the bring in end 45% of the worlds international arrivals in 2010 are accounted for by the blossom ten countries. However the future trends show a major shift in the share of tourist arrivals from developed European economies to emerging Asian markets.Following is the ranking of top end prognosticates as per United Nations World Tourism Organization as per di fferent categoriesInternational Tourist arrivals by country of destination as of 2011France 80 megUnited States 62 MillionChina 58 MillionInternational Tourism receipts as of 2011United States $116 BillionSpain $60 BillionFrance $54 BillionMost visited cities by international tourist arrivalParis (France) 15.6 MillionLondon (UK) 15.2 MillionAntalya (Turkey) 10.5 MillionGoldrush_big.jpg seed AmadeusThe above plot shows a research conducted by Amadeus which shows that there will be a dramatic change of travel spend with Asia-Pacific visitor arrivals accounting for 22% of global traffic and Asia-Pacific residents representing 32% of global travel spend in 2020. Although Europe will dominate the tourism market overall but Asia-Pacific have shown a great improvement and is move arounding faster than other regions.stinting FactorsTravel Tourism is one of the worlds largest industries. In 2011 Travel Tourism contributed 9% to the global gross domestic product which values to more than US$6 trillion, and accounted for more than 255 million jobs. Travel Tourism labor is evaluate to grow by an average of 4% per year over the next 10 years, taking it to 10% of global gross domestic product, or some US$10 trillion. It is expected that by 2022 Travel Tourism industry will account for 328 million jobs or 1 in every 10 jobs on the planet. As per a survey Travel Tourism is a key generator of employment across the European Union directly generating 10 million jobs across Europe, substantially more than the automotive manufacturing (3.2 million), mining (3.6 million) and financial services sectors (8.5 million). Employment is created in the sectors like transportation services like airlines, cruise, taxi, etc hospitality services such as hotels, resorts, etc and entertainment industry like sport parks, casinos, shopping malls, theatres, etc. Even Asia Pacific region is now investing money in Travel Tourism to depict same figures in their economies as well. Below is the diagram showing how the donation is made towards economy and employment through Travel and Tourism (TT). It is divided into three parts i.e. Direct, Indirect and Induced. rise World Trade and Tourism Council research reportThe direct part of TT to gross domestic product in 2011 was USD 1,972.8bn (2.8% of GDP). The direct contribution of Travel and Tourism to GDP is expected to grow by 4.2% pa by 2022. Total contribution of TT to GDP was USD 6,346.1bn in 2011 i.e. 9.1% of GDP and is expected to grow by 2.8% to USD 6,526.9bn i.e. 9.8% of GDP by 2022.Source WTTCNegative factors affecting tourismBelow are the factors which are affecting tourism in most part of the worldTerrorist flagellum is one of the biggest negative factors affecting tourism. Terrorist attack in London, US, etc has reduced the number of tourist going to these countries. Also there isterrorist threattotourist destinations, such as inBaliand some(prenominal) European cities.Tsunami in Asia had affected tourism in most of the Asian countries at that time. Thousands of lives were lost including m all tourists. Tsunami, Katrina and other cyclones in other regions have slowed down the tourism industry in their respective countries.Virus attacks like H1N1 influenza virus have affected the tourism in several countries.Other factors like economic unrest and recession have affected the number of tourist going for vacation.Future DevelopmentsTourism is expected to grow at a rate of 4% yearbookly and all this requires constant development in the technology and infrastructure. Tourists can be divided generally as per their budgets and taste thus new different ideas are required to pull tourist towards a country or city. For example some people like to go on a hill while some people like to go out for a theme park. Thus various developments were done to issue all the segments as per their needs. Developments like airlines have made it very accessible to travel round the world. Internation al organization WHO estimates that up to 500,000 people is on planes at any time.Internet development has brought a new revolution in tourism industry. One can book tickets (Rail, ship, airlines, etc), plans, packages, etc through internet. One can good get a customized package as per their needs on a click of button. Due to competition these website gives competitive prices which is always beneficial for the end customer.sustainable TourismAs the environmental condition of the world deteriorating every year this is an attempt by tourism industry to make as low touch on theenvironmentand localcultureas possible, while helping to generate future employment for local people. The aim of sustainable tourism is to arrest that development brings a positive experience for local people, tourism companies and the tourists themselves. There is a difference between Sustainable tourism andecotourism. Ecotourismis a form oftourisminvolving visiting fragile, pristine, and relatively undisturbe d natural areas, intended as a low-impact and often small scale alternative to standard commercial (mass) tourism. Purpose of Ecotourism is to give instruction the traveler, to provide funds forecological conservation, to directly benefit theeconomic developmentand political empowerment of local communities, or to foster respect for different cultures and for forgiving rights.A number of countries around the world are dependent on Tourism and consider Sustainable tourism as the important vehicle for economic and social development. Sustainable tourism is visualized as leading to management of all resources in such a way that social, economic and aesthetic needs can be fulfil conduct while maintaining biodiversity, cultural integrity, life support system and essential ecological processes. Itimplies meeting the needs of the present without compromising the ability of future generations to meet their own needs. It is not just the responsibility of government but it is the responsibi lity of all the stakeholders in tourism sector as well as the tourists to ensure that what they are getting today is preserve for future generations to enjoy. All stakeholders are responsible to give a good quality of life to future generations and they shouldnt do anything which would affect the lives of future generation.For Sustainable tourism each country has to address various issues of policy-making, planning, management and the participation of the private sector and other stakeholders must be addressed in terms of opportunities for action and possible constraints that need to be overcome by concerted efforts.Sustainable-Development.pngSustainable tourism aims to hold a balance between the three factors mentioned above i.e. Social, Environmental and Economic factors without affecting the tourists expectations from their travel. Sustainable tourism integrates tourism with other factors like economic and egress policies so as to reduce the negative impact mass tourism. Sustai nable tourism requires involving local community as well while developing any tourism plan as they are the people who will get affected by any kind of development in their area. Murphy promoted the use of an ecological approach while implementing the sustainable tourism development process. He considered both plants and people during the process. This is in contrast to the boosterism and economic approaches to tourism planning, neither of which considers the prejudicial ecological or sociological impacts of tourism development to a destination.Chapter 3 Overview of Indian Tourism IndustryIntroductionIndia is a huge land with a variety of different flora and fauna. Each place has something new to offer. It has covered by Himalayas hilly region on one side and sea on the other sides. Tourism in India is one of the largest service industries. As India is a vast country so there are thousands of destinations and each destination is a tourist spot in itself. Whether you visit the metros , big cities or remote areas of India, you will experience something different and interesting alike. Besides, India is also dotted with a number of picturesque hills which draw tourists from world over and provide a welcome respite from the hustle and bustle of cities. For those who are interested in history and architecture, India has a number of sites which have been designated as World heritage Sites by UNESCO. You can get a fine glimpse of the bygone era at these Heritage Sites.UK and US tourists are among major tourist population that visit India. Most popular tourist destinations, in India, among Foreigners are Kerala,Tamil Nadu,Delhi,Uttar PradeshandRajasthan. Most popular destination among Domestic tourist is Uttar Pradesh, Maharashtra, Andhra Pradesh and Tamil Nadu. Being oldest states of India, heritage Sites and most importantly Pilgrimage Sites, attracts Domestic tourist.According toWorld Travel and Tourism Council, from 2009 to 2018, India will among top tourism desti nation,having the highest 10-year harvest potential.TheTravel Tourism Competitiveness Report 2007ranked tourism in India sixth in terms of price competitiveness and thirty-ninth in terms of safety and security. A 5000 year history, culture, religion and alternative medicine fascinates all segments of tourist. The focus of the industry is on Atithi Devo Bhavah campaign, targeted at the inbound foreign tourist. Translated literally it means Guest is God.Main attraction to India is its cultural and geographical diversity. It also had a rich history and each region has its own singularity which appeals to large and assorted tourist base. There are many tourist spots which come under UNESCO heritage. India provides heritage, sports, aesculapian and business. India has one of the largest and fastest growingmedical tourism sectors. According to global hotel and hospitality consulting firm, HVS International, the strong performance in tourist arrivals in 2005 can be attributed to a st rong sense of business and investment confidence in India inspired byIndias strong GDP performanceStrengthening of ties with developed worldReforms in aviation sector which led to better connectivity with many countries, andOpening of sectors of the economy to private sector/foreign investment.Other factors areDevelopment of infrastructure by governmentIndias emergence as an outsourcing hubSuccess of Incredible India campaign and other tourism promotion measuresIndias growing recognition as an exciting place to visit.Ministry of TourismNational policies are think by the Ministry of Tourism. They are responsible for the development and promotion of tourism in India. They are also responsible for the regulation of tourism industry as well as promotion of India as tourist destination to the world. They have to take consideration from all the stakeholders in the sector to execute any plan or development in any of the regions. All the stakeholders involved in this process needs to work collaboratively to function smoothly. Ministry is putting considerable effort to promote new forms of tourism like eco-tourism, medical, sports, water, etc.The Ministry of Tourism also maintains theIncredible Indiacampaign. As of January 2011, head of the ministry is theCabinet Minister Subodh Kant Sahay.Indiastole the limelight at the World Tourism Mart 2011 inLondonby winning two global awards Worlds Leading Destination and Worlds Leading Tourist Board,Incredible India.Economic FactorsTourism contributes 6.4% to the national GDP and 8.8% to the employment in India. It is the 3rd largest foreign exchange earner in India. Travel Tourism (TT) directs contribution to GDP in 2011 was INR1,689.8bn (1.9% of GDP). By 2012, it is forecasted that it will grow by 7.6% to INR1,818.5bn. This shows how much economy can grow just with the help of hotels, rails and other form of transportation services (excluding commuter services). non only this but it also includes the other industries which are dependent on the tourist such as restaurants and leisure industry. It is expected that by 2022 direct contribution of TT to GDP is expected to grow by 7.7% pa to INR3,805.2bn (1.9% of GDP). The Total contribution of TT to GDP was INR5,651.0bn in 2011 (6.4% of GDP) and by 2012 it is expected to grow by 7.3% to INR6,062.3bn (6.5% of GDP). Total contribution is further forecast to rise by 7.8% pa to INR12,891.2bn by 2022 (6.5% of GDP).% of whole economy GDPSource WTTC Travel Tourism Economic Impact 2012Direct TT generated by leisure travel spending (inbound and domestic) is 73.8% of direct TT GDP in 2011 (INR3,335.4bn) compared with 26.2% for business travel spending (INR1,181.3bn). business travel spending is expected to grow by 4.1% in 2012 to INR1,229.6bn, and rise by 7.6% pa to INR2,562.2bn in 2022. Leisure travel spending is expected to grow by 8.6% in 2012 to INR3,622.3bn, and rise by 7.6% pa to INR7,554.3bn in 2022.Source WTTC Travel Tourism Economic Impact 2012Domestic travel spending generated 82.2% of direct Travel Tourism GDP in 2011 compared with 17.8% for visitor exports (ie foreign visitor spending or international tourism receipts). Domestic travel spending is expected to grow by 8.3% in 2012 to INR4,009.9bn, and rise by 8.1% pa to INR8,710.3bn in 2022. Visitor exports are expected to grow by 3.5% in 2012 to INR829.2bn, and rise by 5.2% pa to INR1,382.6bn in 2022.Source WTTC Travel Tourism Economic Impact 2012Below are the country rankings of absolute contribution for year 2011. We can see that under direct and total contribution to GDP India is ranked 11th and 12th respectively which is a good ranking. Compared to other Asian economies China is the only country ahead of India in ranking. If we consider employment parameter then India is ranked as 1st for direct contribution to employment while second for total contribution to employment after China. If we see capital investment done with respect to other countries then India is ranked at 4th position.These rankings are in absolute term but if we consider relative value then India is way behind its neighbors. It is ranked as 126th as total contribution to the GDP. While contribution of tourism to employment is ranked at 102nd and capital investment at 97th. Compared to its competitive neighboring nation it is a poor ranking.CUsersDellDocumentsAIMMRRDocsContribution.jpgSource WTTC The accedes provide brief extracts from the full WTTC Country League Table Rankings, highlighting comparisons with competing destinations as well as with the world average. The competing destinations selected are those that offer a similar tourism product and compete for tourists from the same set of origin markets. These tend to be, but are not exclusively, geographical neighbors.Below is the long term ranking on the same parameters as above. If we analyze the rankings then we can see that it is improving from the current relative rankings.CUsersDellDocumentsAIMMRRDocsLong term.jpgSource WTTC The above table highlights comparison with competing destination as well as with world average. It is a snapshot from WTTC country league table ranking. The competing destinations offer a similar tourism product and compete for tourists from the same set of origin markets i.e. geographic location.Statistics of Indian TourismIn 2010, numbers of foreign tourist arrival were 5.78 Million which shows the annual growth rate of 11.8%. This double digit shows that the number of tourist coming to India is increasing at a good rate because the global annual growth is just 6.6% while annual growth of entire Asia Pacific Region is 12.7%. Although this annual growth rate is comparatively high but the share of India in International tourist arrival is just 0.61% and India is ranked at 40th position.We can also see in the below chart provided by UNWTO that the inbound tourism in Asia and pacific region is going to grow faster than any other region of the world. So this gives a lot of poten tial for Asian countries to grow and develop their economy via medium of tourism.CUsersDellDocumentsAIMMRRDocsunwto_general_assembly_10oct2011_slide8.jpgSource UNWTOMaximum tourist comes from USA (16%) followed by UK (13%) and then Bangladesh (7.5%). Delhi (34.5%) and Mumbai airport (20.5%) is the main entry point for tourists coming to India. Below table shows the purpose of FTAs visit to India.CUsersDellDocumentsAIMMRRDocs77.jpgSource India Tourism Statistic 2010In 2010, peak tourist month was declination while on the lower side was May. In December there were around 11.8% tourist and in May there were 5.7% tourist only. The below graph shows that peak period were in Jan March Oct Dec in 2010. This is generally consistent with the pattern in 2008 and 2009 also.CUsersDellDocumentsAIMMRRDocsMonth.jpgSource India Tourism Statistic 2010Peak months differ for countries to countries like for USA, Canada, Malaysia, Australia and Singapore, December was the peak month. For countries like UK, Germany and Korea January was the peak month. For few countries it is even August or July. But overall it is the winter season (October-December) where we see maximum FTAs in India i.e. 31.1% and marginal in summer season (April-June) i.e. 18.8%.Of all the FTAs in 2010, Male FTAs accounted for 59.3% while Female as 40.7%. Over the last 15 years the percentage of egg-producing(prenominal) visitors has increased in India. The trend among the age group which we have seen in the inbound tourist was that maximum comes from the age group of 35-44, followed by the age groups of 45-54 years and 25-34 years. Minimum were in the age group of 15-24 years.Domestic TourismAlong with International tourism even Domestic tourism is increasing at a good pace. The compound annual growth rate of domestic tourist visits to all states/UTs from 1991 to 2010 is 13.5%. Below is the diagram showing year-wise domestic/foreign tourists visits to States/ UTs during 2000 and 2010CUsersDellDocumentsAI MMRRDocsDomestic.jpgSource India Tourism Statistic 2010Below is the figure showing the percentage share of Top 10 States/UTs in Domestic tourist visits in 2010. We can see that Andhra Pradesh, Uttar Pradesh and Tamilnadu itself comprise of roughly 55% of the total domestic tourist visit. In terms of foreign tourist Maharashtra is the state which is most visited i.e. 28.5%.CUsersDellDocumentsAIMMRRDocsshare.jpgSource India Tourism Statistic 2010Chapter 4 Transport Industry in IndiaIntroductionTransport in the Republic of India is an important part of the nations economy. Since the economic liberalization of the 1990s, development of infrastructure within the country has progressed at a rapid pace, and today there is a wide variety of modes of transport by land, water and air.Indias transport sector is large and diverse it caters to the needs of 1.1 billion people. In 2007, the sector contributed about 5.5 percent to the nations GDP. Public transport still remains the primary mode of transport for most of the population, and Indias public transport systems are among the most heavily used in the world. Indias rail network is the 4th longest and the most heavily used system in the world, transporting over 6billion passengers and over 350 milliontons of freight annually.Good physical connectivity in the urban and rural areas is essential for economic growth. Since the advance(prenominal) 1990s, Indias growing economy has witnessed a rise in demand for transport infrastructure and services. However, the sector has not been able to keep pace with rising demand and is proving to be a drag on the economy. Major improvements in the sector are required to support the countrys continued economic growth and to reduce poverty. elemental Mode of TransportationRailways.Indian Railways (reporting mark IR) is an Indian state-owned railway enterprise, owned and operated by the presidential term of India through the Ministry of Railways. It is one of the worlds largest railway networks comprising a total of 114,500 kilometres (71,147 mi) of running play over a route of 65,000 kilometres (40,389 mi) and 7,500 stations. IR carries over 30 million passengers and 2.8 million tons of freight daily. In 2011-2012 Railway earned INR104,278.79 crore (US$18.87 billion) which consists of INR69,675.97 crore (US$12.61 billion) from freight and INR28,645.52 crore (US$5.18 billion) from passengers tickets. It is one of the worlds largest employers.The railways play a leading role in carrying passengers and cargo across Indias vast territory. However, most of its major corridors have capacity constraint requiring capacity enhancement plans. To reduce congestion on rail corridors along the highly trafficked Golden Quadrilateral and improving port connectivity government is launching the National Rail Vikas Yojana (National Railway Development program). The development of two Dedicated Freight Corridors from Mumbai to Delhi and Ludhiana to Dankuni is also in governments plan.Roads.Roads are the dominant mode of transportation in India today. They carry approximately 90 percent of the countrys passenger traffic and 65 percent of its freight. The density of Indias highway network at 0.66 km of highway per square kilometer of land is similar to that of the United States (0.65) and much greater than Chinas (0.16) or Brazils (0.20). However, most highways in India are narrow and congested with poor surface quality, and 40 percent of Indias villages do not have access to all-weather roads.Ports. India has a long coastline, spanning 7516.6 kilometres, forming one of the biggest peninsulas in the world. It is serviced by 13 major ports (12 government and 1 corporate) and 187 notified minor and arbitrate ports. The latest addition to major ports is Port Blair on June 2010, the 13th port in the country. These ports serve the countrys growing foreign trade in petroleum products, iron ore, and coal, as well as the increasing movement of containers. Inland water transportation remains largely undeveloped despite Indias 14,000 kilometers of navigable rivers and canals.Aviation. India has125 airports, including 11 international airports. Indian airports handled 96 million passengers and 1.5 million tons of cargo in year 2006-2007, an increase of 31.4% for passenger and 10.6% for cargo traffic over preceding(prenominal) year. The dramatic increase in air traffic for both passengers and cargo in recent years has placed a heavy strain on the countrys major airports. Passenger traffic is projected to cross 100 million and cargo to cross 3.3 million tons by year 2010. Privatization and expansion of the Mumbai and untried Delhi Airports and development of new international airports at Hyderabad and Bangalore.Transport infrastructure in India is better developed in the southern and southwestern parts of the country.PESTLE compendiumPolitical Context Many limitations were imposed by public transport sector. Also government has imposed many taxes which will further increase the prices of automobiles. Government has asked public transport vehicles in many cities to move to CNG instead of petrol which has affected many individuals. Launching the ambitious National Highway Development Program which has seven sorts and is expected to be completed by 2012. It includes improved connectivity between Delhi, Mumbai, Chennai and Kolkata, popularly called the Golden Quadrilateral, in the first phase, coupling- South and East- West corridors in phase two, four laning of more than 12,000 km in phase three, two laning of 20,000km and six laning of 6,500 km respectively in phase four and five, development of 1,000km of expressway in phase six and other important highway projects in phase seven. Total expected investment is INR 2.2 trillion. Accelerated Road Development Program for the North East Region to provide road connectivity to all State capitals and district headquarters in the region.Economic Context Petrol prices are inc reasing every year at a sky rocket speed and this will surely hamper the transport industry as it will lead to increase in the travelling fare. Consumer confidence has decreased as a result of the economic downturn and people are seeking savings in their insouciant life. Increase in the average disposable income of both families and individuals indicates that more people can afford to buy and use a private car. Tourism bring foreign exchange earnings of USD 14.19 Billion. The top-income households, the real consuming class with high disposable income, have been getting richer faster. It is for this reason that the boom in sales of most every consumer product from cars to bikes to TV sets is visible all over.Societies Context Growing population and numbers of visitors/tourists/immigrants imply increasing demand for transport Services. mint are more time-poor and seek efficient ways of transport in the city, where public transport possesses advantages such as rail and bus lanes th at avoid traffic jams. People seek the convenience, personal comfort and social status that mainly private cars or, to a certain degree, taxis can offerTechnology Context Rapid development in communication and computer technologies, e.g. increasing use of videoconferencing, tele-working and the Internet