INDIA
BUSINESS WORLD -
MAY 2006
THE MONTH THAT WAS...
DOMESTIC TOURISM TO TOUCH $121.4 B
THE tourism industry in India is likely to generate $121.4 billion (over Rs 5,44,500 crore) of economic activity by 2015, according to the World Travel and Tourism Council (WTTC). The council, which has rated India as one of the foremost tourist growth centres in the coming decade, says foreign tourist arrivals here between 04-05 contributed over $5 billion (Rs 22,500 crore) in foreign exchange. Demand in the tourism industry is likely to grow 8.6% per annum between 2006-2015.
Analysts say these numbers indicate that it is the right time for the high tourism potential states to reap maximum benefits. According to a Crisil study on Karnataka tourism, the state's share of international arrivals to India increased from 4.03% in 1991 to 15.7% in 2004. However, Karnataka lags at the 5th position compared to Maharashtra, Tamil Nadu, Uttar Pradesh and Rajasthan. Crisil director Sanjay Sinha says, A comprehensive, well-integrated and a realistic vision is required for Karnataka to realise its full potential in the tourism industry.
The study makes key recommendations such as to position Karnataka as a global ecotourism destination replicating the success of jungle lodges. For example, The Jungle Lodges & Resorts (JLR) reported a turnover of Rs 112 crore for 2004-2005, the highest since its inception in 1980. JLR manages 11 properties across Karnataka.
The study also recommends exploration of potential in coastal tourism on the Karavali, Karwar, Murudeshwar, Marvanthe and Mangalore beaches including development of cruise terminals at Mangalore and river cruises. Many studies in the US and Europe have shown that the coast is still the favourite destination of 63% holidaymakers and 85% tourism-related revenues are generated by coastal locales.
These recommendations need prioritisation of investments, particularly the development of heritage sites like Hampi and Pattadkal, which are among the 26 world heritage sites in India. The Union government has come forward with financial assistance of Rs 25 crore for the development of Hampi. Mr Sinha says, The state needs to package Hampi as an international destination and a beautiful heritage experience as it is the only ruined city of any significance to be seen in India.
The industry feels that the destination fidelity will continue to decline over the years therefore one needs to enhance the entire value chain of vacation experience. Mr Sinha says, To put it simply every aspect involved in a vacation beginning from commuting and accommodation facilities to multi-lingual guides need to be up to the mark.
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