Mr. Gour Kanjilal - Director Indian Associtation of Tour Operator (IATO) Mr. Gour Kanjilal - Director Indian Associtation of Tour Operator (IATO)
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Marketing Efforts
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  •   :: India Market Analysis
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    India Market Analysis

    Record Tourist Arrivals
    India achieved a significant growth in terms of foreign tourist arrivals during the year 2006 taking India's International tourist arrivals from 3.92 million in 2005 to 4.43 million in 2006, showing an increase of 13.6%. Foreign exchange earnings from tourism also showed a phenomenal growth from US$ 5730. 86 million in 2005 to US$ 6569.34 million 2006 achieving an increase of 14.6%. In rupee terms it is Rs. 29, 609 cores (+ 14% over 2005).

    Tourist arrivals since the start of January 2007 totalled 1.42 million against 1.24 million (+ 14.4% ) and foreign exchange earning of $ 2061 million (+ 16.2) in the same period till March end of the corresponding period in 2005. In Rupees term the foreign exchange earning +16.8 % growth with figure reaching Rs. 9102 crores for the period January-March 2007.

    This upward trend is associated with increased business activities due to booming economy as well as increasing interest among the travelers in overseas countries for leisure travel. The travel is happening mostly between India and western world and between India and South Asian countries. Top ten traffic generating countries include, Uk, USA, Canada, France, Germany, Srilanka, Italy, Spain, Japan and Malaysia.

    Domstic Tourism
    Indians are traveling like never before to explore the charms of their Incredible country. Estimated 420 million domestic tourists were recorded in 2006. This figure just include people who spent a night in hotel/guest house in a city where they went as tourist and do not include those who also travelled but stayed with relatives & friends. This figure is up from 390 million in 2005. This is a very positive trend and Ministry of Tourism, Govt. of India has earmarked Rs. 650 crores out of Rs. 1000 cores from this year's fiscal budget allocation for development of sites with in the country. Govt. has identified six circuits for developments and 15 key destinations during the current financial year. The Ministry will give a maximum of Rs. 50 cores and Rs. 25 cores to State Governments to develop each circuit and destination respectively. Among the places identified include Hampi, Ajanta, Elephants, Ajmer, Jaisalmer, Varansasi Ghats, Badrinath, Kadernath. While the centre will finance the projects, and State Government to ensure completion of these projects with in the stipulated period. Among the selected circuits, Buddhist circuits is already in the priority sector which have Rajjai, Nalanda, Bodhgaya. ( In Bihar) Ajanta - Ellora ( in Mahrashtra).

    Scale of tourism in India
    There has been a remarkable growth in the recent years in foreign tourist arrivals to India due to the various efforts made including promoting India through the Incredible India campaign in overseas market. It has increased by about 65% from level of 2.38 million in 2002 to 3.92 million in 2005. While the foreign exchange earnings grown by about 96% during the same period. In the year 2006, the tourist arrivals have increased to 4.43 million registering an impressive increase of 14.2% over 2005.

    The Tourist Satellite Accounting for India has brought out that contribution of tourism to GDP of the country has been 5.9% in 2003-2004. While employment in tourism sectors both direct & indirect has been 41.8 million, in the same year this accounting 8.78% of total employment in the country. It is estimated that by the end of 2006-2007 the employment generated in the tourism sector both direct or indirect would be 51.9% million. Thus tourism is an important engine of growth for the economy.

    Scale of global tourism
    According to World Tourism Organization (WTO) the year 2006 saw more than 8.42 million international tourists arrivals. World Travel & Tourism Council (WTO) the year 2006 forecasts that travel & tourism will generate 234 million direct & indirect jobs World Wide accounting for 8.7% of the global employment and it will be contribute unto 10.3% of the global GDP. According to the same estimate the global travel & tourism actively expected to increase by 4.7% between 2007-2016.

    India Outbound
    The total outbound travelers from India is pegged at 7.2 million 2005-06 registering a 15% growth over 2004 (6.2 million 2004). With the increase in the number of flights to & from India coupled with the escalating propensity among middle class travelers to travel abroad. Indian Outbound market is expected to get a quantum jump in 2006-2007. The figure may reach 8 million mark with visible trend. It is estimated that year on 15% growth will be mainted. Among short have destinations Indians visit Dubai, Singapore, Thailand, Malaysia, Nepal, Srilanka, Hong Kong, Maccau, Maldives, Uzbekistan, Kazakhstan etc.

    Among the long Haul destinations preferences are for USA, Canada, UK, Australia, New Zealand and France, Germany, Austria, Italy and Switzerland. Most of the holidayers use the packages tours offered by tour operators like SOTC, Raj Tours, Cox & Kings, TCI or by outbound specialists in the respective states.

    Most national tourism organizations are confident that a vibrant market such as India will yield high growth, making its desirable target market for 2007-2008 or 2009.

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