Appendix – III

Chapter – I
Introduction

1
 INTRODUCTION
Tourism is travel for recreational, leisure,or business purposes, usually of a limited duration.
Tourism is commonly associated with trans-national travel, but may also refer to travel to another
location within the same country. The World Tourism Organization defines tourists as people
"traveling to and staying in places outside their usual environment for not more than one consecutive
year for leisure, business and other purposes".

Adjectival tourism refers to the numerous niche or specialty travel forms of tourism that have
emerged over the years, each with its own adjective. Many of these have come into common use by
the tourism industry and academics. Others are emerging concepts that may or may not gain popular
usage. Examples of the more common niche tourism markets include:

 Agritourism  Medical tourism

 Birth tourism  Eco tourism
 Culinary tourism  Pop-culture tourism
 Cultural tourism  Religious tourism
 Medical tourism  Slum tourism
 Geotourism  War tourism
 Heritage tourism  Wellness tourism
 Wedding tourism
 Wildlife tourism

Other terms used for niche or specialty travel forms include the term "destination" in the
descriptions, such as destination weddings, and terms such as location vacation.

TOURISM IN INDIA

The tourism industry of India is economically important and grows rapidly. The World Travel &
Tourism Council calculated that tourism generated INR6.4 trillion or 6.6% of the nation's GDP in
2012. It supported 39.5 million jobs, 7.7% of its total employment. The sector is predicted to grow at
an average annual rate of 7.9% from 2013 to 2023. This gives India the third rank among countries
with the fastest growing tourism industries over the next decade

2
Share of top 10 states/UTs of India in number of foreign tourist visits in 2011 (provisional)

Rank State/Union Territory Number Share in %

1 Maharashtra 4,815,421 24.7
2 Tamil Nadu 3,373,870 17.3
3 Delhi 2,159,925 11.1
4 Uttar Pradesh 1,887,095 9.7
5 Rajasthan 1,351,974 6.9
6 West Bengal 1,213,270 6.2
7 Bihar 972,487 5.0
8 Kerala 732,985 3.8
9 Karnataka 574,005 2.9
10 Himachal Pradesh 484,518 2.5
Total of top 10 states 17,565,550 90.1
Others 1,929,329 9.9
Total 19,494,879 100

Share of top 10 states/UTs of India in number of domestic tourist visits in

2011 (provisional)

Rank State/Union Territory Number Share in %

1 Uttar Pradesh 155,430,364 18.3
2 Andhra Pradesh 153,119,816 18.0
3 Tamil Nadu 137,512,991 16.2
4 Karnataka 84,107,390 9.9
5 Maharashtra 55,333,467 6.5
6 Madhya Pradesh 44,119,820 5.2
7 Rajasthan 27,137,323 3.2
8 Uttarakhand 25,946,254 3.0
9 West Bengal 22,256,968 2.6
10 Gujarat 21,017,478 2.5

3
Total of top 10 states 725,981,871 85.3
Others 124,874,769 14.7
Total 850,856,640 100

Sky is the limit for marketing services. During the past decade, services have increasingly assumed
an important role in the Indian economy. Hotels are a major service industry in India. Their
significance is undoubted. A number of international hotel chains have come to India, either
independently or with a tie-up with an Indian partner. The Government of India’s tourism department
has also realized their importance and started classifying them on the basis of the standard of their
facilities. An effort is also being made to promote India through its tourist offices all over the world.

Tourism has also become an instrument for sustainable human development including:
• Poverty elimination.
• Environmental regeneration.
• Job creation.

In the Indian perspective, we find seventh five year plan as watershed in the development of tourism
Industry. For the first time, the vast potential of tourism as a foreign exchange earner and generator
of employment opportunities was recognized. Several policy initiatives were taken to develop the
tourism sector. In the development of tourism, the public sector has made a significant contribution.
Of late, the industry is equipped with a reasonable infrastructural base and is poised for a self
sustained growth. The future growth of tourism is required to be designed on the basis of low-cost
economy, higher level of productivity, efficiency in the use of infrastructure and sophisticated tourist
facilities. In the Eighth Five Year plan (1992-97), the special tourism areas had been selected, and
during the Ninth Five year Plan (1997-2002), we looked forward to energizing the process of
development, but the image problem was found to be complicating the task of professionals.

TOURISM IN GUJRAT

4
Gujarat is one of the most diverse States in India. Its history stretches over a long years from the age
old Harappan Civilization to the Mughal period. Gujarats endless journey from Roots to Wings is
timeless with historical and cultural traditions glorifying the State. Though till now, Gujarat was
considered as a hub for commercial and industrial activity, has immense potential for tourism
development with its vast cultural and religious heritage, varied natural attraction and long coastal
line. The Tourism policy of the state is aimed at its socio-economic development by developing
world-class tourist facilities with ensuring optimum utilization of available resources and developing
specific tourist destinations for national and international tourists. 2010 being the Golden Jubilee
year of the state formation, government declared the year as Tourism Year. To achieve its vision of
tourism development, the state government has set up a company, Gujarat Tourism Project
Development Company, in association with Infrastructure Leasing & Financial Services Limited
(IL&FS). As per the Vision 2020, prepared by Gujarat Infrastructure Development Board, the total
potential for investment in tourism assets in Gujarat is to the tune of US$10 billion.

Vision Statement
Gujarat state government has set a target of putting Gujarat in the league of worlds top 50 highest per
capita income earning nations by 2020 in a new Big Vision 2020 set by the Gujarat recently. The
plan (Big 2020) aims to accelerate Gujarats development process and envision Gujarat with a per
capita income in the league of top 50 countries of the world. The Big 2020 is designed to develop
infrastructure that will provide a further fillip to the economic growth of Gujarat and aims at making
Gujarat a global tourist destination.

Mission Statement
To develop and promote tourism as an ’Engine of economic growth’ as per Big 2020 plan and to
bring Gujarat on the national and international tourist map, tourism shall be considered as an
important economic activity for overall sustainable economic growth, ensuring employment
generation and optimum utilization of vast tourism potential in the state and at the same time
preserving and promoting natural, social and cultural heritage of the state. Focus of the tourism
policy will primarily be to attract tourists to the State of Gujarat.

It would aim at overall development of tourism by providing best quality services of international
standards and also by creating excellent infrastructure, connectivity and providing tourists with
good facilities in important tourist and religious places like Somnath, Dwarka, Ambaji, Palitana,
Dakor, Pavagadh, Girnar, Udwada etc.

5
Nature Tourism
The policy aims to create an image for Gujarat in international arena by developing entertainment
theme parks in certain areas, which would be considered as Special Entertainment Zones. The
facilities in these zones will be of world class standards for the benefit of domestic and international
tourists interested in leisure tourism. Such facilities will also act as excellent destination for film
industries to carry out their shootings. The plan for setting up of Special Entertainment shall be
worked out with the private sector participation

Eco Tourism
With the emerging interest for Eco-tourism throughout the world, the Gujarat government proposes
to provide for avenues to attract tourists who are interested in eco-tourism. Existing eco-tourism
centres like Nalsarovar, Velavadar, Thol Lake, Gandhinagar, Gir Forest, Balaram, Ratanmahal etc.
should be further strengthened to attract tourists interested in eco-tourism.

Heritage Tourism
Gujarat offers high concentration of heritage / archaeological sites with proven 4500 year old
history. India’s most substantial remains of Harappan civilization (Indus valley civilization), one of
the world’s oldest, are present at Dholavira and Lothal. Ahmadabad’s Heritage walk is the only daily
departure Walking Tour in India. Therefore measures are taken to highlight Gujarat’s heritage
richness and attract more tourists to its rich culture. Gujarat’s Princely heritage has resulted in the
State having more than 20 Heritage Hotels including converted Forts and Palaces.

Medical Tourism
With India, emerging as one of the destination for medical tourism and also with Gujarat becoming
an important player in this regard, Medical Tourism shall be encouraged so that large number of
NRIs get attracted to take advantage of the medical facilities in India, particularly in Gujarat,
considering the competitive rates for medical treatment and also the timely medical attention,
Medical Tourism shall be encouraged in a big way with special emphasis on Naturopathy, Yoga,
Holistic Health Treatment etc.

Cultural Tourism
The folklore and folk arts of Gujarat form a major part of the Culture of Gujarat. It preserves the rich
tradition of song, dance, drama as well. Gujarat is the land of rich handicrafts like Patola weaving,
khadi, bandhani, block printing, embroidery, namda, rogan painting, matani pachhedi, woodcrafts,
6
metal crafts, bamboo crafts, pithora, pottery and many more handicrafts. The tourism policy focuses
on promoting Gujarat’s handicrafts and pottery such that it receives world recognition for its ancient
and generation to generation passed on art and craftsmanship. Gujarat celebrates all regional fairs
and festivals with great fervor and spirits and measures are taken to attract tourists in its festivities.

Adventure Sports
Gujarat has fairly good number of hills, which can be utilised for the promotion of adventure
tourism, which is emerging world over as an important sport. Places like Saputara, Idar. Sasan Gir,
Wilson Hill, Junagadh, Taranga, Mal Samot, Jessor Hill etc. will be developed for promotion of
adventure sports to attract youths, students from schools and colleges and also foreigners.

Adventure sports like Paragliding, rock-climbing, Forest Safaris etc. will be developed in such
places. Policy also proposes to identify all potential water bodies like sea beaches, lakes and canals,
and initiate projects for encouraging Water Sports.

Event Tourism
The policy proposes to give a very special thrust to ‘Event (Festival) based Tourism’ and market the
events both within and outside the country and in the process brand Gujarat as the destination for
tourism events like Navratri, Somnath festival, Dwarka festival, village olympics on very special
type of sports that is unique to Gujarat, Tarnater fare, Kutch festival, Kite festival etc. The focus
would be to present rich culture and religious heritage of Gujarat and also in the process to give an
exposure to the life style of Gujaratis to tourists, visiting Gujarat.

7
 Chapter – II
Problem Recognition

8
 PROBLEM RECOGNITION

Tourism plays a vital role in the development of our economy. It is the best possible
solution to India’s economic development. It provides employment opportunity to the
society. The objectives of tourism also coincide with the national objectives. Tourism
has served the society for the past five decades and achieved its objectives in many
ways.

Tourism is widely scattered, manned by people with poor managerial competence,

working with limited resources. Further it suffers due to the poor services to the
society and lack of promotional methods and absence of quality control. Keeping this
fact in mind, an attempt is made to study the service of tourism in Gujarat.

9
Chapter – III
Objectives

10
 OBJECTIVES

 To know the significant role of Tourism in India’s GDP

 To know the role played by the Hospitality services in Tourism.
 To know the market segments and the financial performance of Hospitality.
 To know the level of employment opportunities provided through Tourism.
 Identify and develop tourist destinations and related activities.
 Diversifications of tourism products in order to attract more tourists through a
varied consumer choice.
 Comprehensive development of pilgrimage centers as tourist destinations.
 Create adequate facilities for budget tourists.
 Creation of tourism infrastructure so as to preserve handicrafts, folk arts and
culture of the state and thereby attract more tourists.

11
 Chapter – IV
Research Methodology

12
 RESEARCH METHODOLOGY

The study covers the role of hotel services in Gujarat and the impact of tourism in
India’s economic development. It also covers the contribution made by the tourism
sector in foreign exchange earnings. To elaborate this study secondary data has been
collected and analyzed.

The secondary information was collected from the report of Tourism and
Culture Department of Gujarat. Standard books, Journals, articles and websites were
also referred to.

• RESEARCH DESIGN-

The research design that is adopted in this study is descriptive design.

• DATA COLLECTION-

Secondary data is being used for research.

13
Chapter – V
Data Analysis
&
Presentation

14
 DATA ANALYSIS & PRESENTATION

NAME NAME OF DESCRIPTION OF CASE

OF RESEARCH
CASE JOURNAL
CASE- Economic The paper examines the development strategy
1 Reforms and followed by Gujarat state government during
Development the nineties.
Strategy in It has followed the strategy focused on
Gujarat industrialization and urbanization with an open
door policy ever since its inception
in 1960.
CASE- A study on The paper studies Promotional effectiveness of
2 promotional advertising campaign (Khushboo Gujarat ki) in
effectiveness of Gujarat’s tourism industry to understand the
Gujarat tourism influence of Mr. Amitabh Bachchan as a
campaign – Celebrity in creating awareness for Gujarat
Khushboo tourism and to analyze the effect of factors like
Gujarat Ki climate and domestic disturbance on tourism in
Gujarat
CASE- Advantageous This paper deals with Tourism and Medical
3 Gujarat in services simultaneously. Medical tourism
Medical serves two distinct need of the customer:
Tourism medical service need which due to many
reasons is not available locally to the customer
and alongside meets the desire to see a new
place.

15
Case-1

Abstract
In a multilevel federal democracy a state often represents a middle level between the central
government and the local bodies. Gujarat had all these 3 layers of government efficiently functioning
ever since its inception in 1960.Economic reform measures at the Centre with an explicit emphasis
on trade and industry considerably benefited Gujarat making its economic performance outstanding.
The state government only facilitated the growth of private enterprise since its strategy was already
consistent with the changes in the policy reforms at the Centre. Since mid-nineties, however, when
the reform process at the Centre slowed down, the state government in Gujarat started taking major
initiative to liberalize and reform its policies further. In this process, the focus of the development
strategy seems to have shifted away from the organized manufacturing to the unorganized sectors
and giving protection to the SMEs. It is argued that Gujarat's performance would again pick up as the
national reform process gets back on the track

Conclusion
Gujarat made subtle and significant changes in its policies to supplement the economic reforms
initiated at the central government level. During the initial phase of liberalizing the industrial sector
by the Centre, Gujarat did not have to make any major changes in its policies. The changes in the
economic environment made its strategy and policies followed till that point very relevant and
attractive for the growth of the private enterprise in the state. However, after 1996 when the reform
process at the Centre slackened considerably, Gujarat started its major efforts at the state level
liberalization. In this, the state government is constrained by the political consideration to protect the
small and medium enterprises from the adverse effects of the liberalization and globalization. Of late,
Gujarat seems to have some confusion over its development strategy. Within the overall strategy of
‘growth through private enterprise,’ the state wants to achieve high efficiency and productivity
growth of resources employed in the state and simultaneously desires to protect some of the less
efficient small and medium enterprises from the global competition with all kinds of subsidies.

16
Case-2

Abstract
Gujarat has grown as one of the preferred destination for tourist. Several initiatives have been
undertaken by Gujarat Government to boost tourism. One of the several initiatives taken includes an
Ad Campaign” Khusboo Gujarat ki with Amitabh Bachhan as brand Ambassador. The study intends
to understand the effectiveness of the promotional campaign “Khushboo Gujarat Ki’. The study aims
to study various factors affecting tourism industry of Gujarat and also intends to study consumer
behavior of Gujarat tourist. The survey includes collection of primary data from 200 respondents
with the aid of a structured questionnaire using non probability convenient sampling. Statistical tools
like chisquare, correlation ,regression and descriptive statistics were used to analyze the data.
Findings show that Amitabh Bachaan serves as an effective Brand Ambassdor and even the statistical
figures prove the indices of increased tourism after Mr. Amitabh Bachhan took over as brand
ambassador.

Conclusion
90% of the respondents have seen the ad – “Khushboo Gujarat Ki”. The ad is equally effective
among male & female of different age groups.Mr. Amitabh Bachchan is a credible, powerful and
attractive celebrity endorser. Domestic disturbance like communalism & riots and Terrorist attacks
have no significant impact on Gujarat tourism. Climate also does not have a major impact on Gujarat
tourism. Scenic beauty plays an important role in choosing destination.
It is evident from the findings that the tourists have a preference for their native food. Thus
hospitality service-providers should put their efforts in providing wide assortments of foods and
beverages, as per the data of tourists’ country or place of origin.
The sample size taken is 200 which may be too small to generalize the data. Moreover respondents
may be biased in response which may affect the findings. Only three factors location, visibility and
creativity are taken into consideration for effectiveness of promotional campaign. Therefore future
research should take into consideration wider aspect like recall; comparative advantage etc. Future
research highlighting the ad effectiveness among the different media may also be undertaken.

17
Case-3

Abstract
The Government of Gujarat has realized the advantage it has through the large number of Gujarati
Population overseas. Harnessing this resource - Gujarat a Global Health Destination is being
initiated. The long-term plans of which includes Establishing a Medical tourism council, M.O.Us
with private hospitals for provision of high quality health care. Introduction of Nursing Home Act,
Accreditation of service providers so that quality services are assured, Medication: Opportunities for
private participation in public hospitals

Conclusion
Extensive literature review on the subject: Medical tourism, its contemporary status in the Global,
National and State (Gujarat) level have built up a strong conviction that Medical tourism is a
naturally established new service which has a very promising prospect for future enhancement and
growth. Advantage in Medical tourism for Gujarat primarily based on the huge nonresident Gujarati
population the state can boost of. Gujarati people are naturally very enterprising and have very strong
business sense. This fact ensures Gujarat to be one of the most advanced and Industrialized states in
India. Some of the top Industry houses in India are run by Gujarati people. 32% of the total NRIs are
Gujarati and they have kept touch with their roots. They prefer to hold on their traditions and come
back home for occasions and for requirements which includes availing medical services in Gujarat.
The trend has been that well known doctors and hospitals catered to the needs of such patients. When
the patient got cured, spread the good word of appreciation for the doctor and hospital amongst their
friends and this Buzz marketing helped the doctors and hospital get more patients. Hence there are
centers of excellence and expertise on specific medical specialty providing medical services to the
NRG and foreign patients. Of late with the growing awareness about Medical tourism and finding
that the concept works well for business development, the Medical service providers have begun
tying up with tourism service providers to make lucrative packages that include local area tour and
hospitality. Medical tourism stands on this level of professionalism as of now but all in the business
including the Government of Gujarat is keen to move it ahead and give it an industry status with
proper policies and management and thus ensure fruitful revenue results. Development work towards
this direction is not just in paper under the schemes of Vibrant Gujarat – but is pursued with
seriousness and zeal.

18
 ANALYSIS & DISCUSSIONS

The Share of Tourism in India’s GDP

 In India, contrary to popular belief, it creates more jobs than the traditional industries of
agriculture and automobiles and accounts for 5.9 per cent of GDP, making it the largest
contributor after the oil and gas industry. And yet, the Indian travel and tourism industry is
not a mainstream industry; its full potential is yet to be recognised by the government.
 The service sector’s share has grown from 43.69% in 1990-91 to 51.16% in 1998-99.
 Within the service sector, the share of trade, hotels and restaurants increased from 12.52% in
1990-91 to 15.68% in 1998-99.
 The Union financial Budget 2006-07 had allocated Rs.8.5 billion for Indian tourism sector in
the tenth five year Plan. Having increased the service tax to 12% there is more expected
revenue for the government.
 Tourism yields substantial foreign exchange in India. It is turning into a volume game where
a large number of participants are contributing to the revenue of the Industry. Segments such
as hotels, tour operators, airlines, shipping, etc., are significant contributors to this revenue.
 The share of travel and Tourism industry to the global GDP was 6.48% in the year 2007 with
the value of $ 3,493.19 billion and industry demand contributed to 13.21% of global GDP in
2007.
According to the report by World Travel and Tourism council, India Currently ranks 18 th in Business
travel and will be among the top five nations by the end of 2010

19
S W O T Analysis for Gujarat Tourism

STRENGTH Wide range of Sea Coast of 1, 96,026 sq.km.

Government support (in term of grants): both government of Gujarat as
well as government of India sets aside annual grants for the
development of tourism in the state.
Wide network of Services under its fold – includes hotels, Tourist
Information Bureaus, etc

WEAKNESS Low morale

Lack of professionalism in the organization
In-effective Promotions
Low Awareness regarding its products, services
as well as its investment opportunities
in this sector has not been highlighted

OPPORTUNITIES Scope for investment in new ventures

Joint ventures with private parties
cashing in on excellent infrastructure facilities

THREATS Competition from other state tourism corporations

Private parties assuming the role played by TCGL at this juncture

20
Chapter – VI
Conclusion

21
 CONCLUSION

Well-trained and experienced personnel are extremely important for ensuring delivery of high quality
professional services to the guests, which is a major perquisite for success of the hospitality industry.
Hospitality services are playing important role in Indian economy. During 2007-2008, the foreign
exchange earnings and GDP of India have increased. For this increasing trend in GDP and foreign
exchange Earnings in India, the tourism also plays a vital role. Even then this service industry which
is facing many problems must be considered very seriously to overcome it. The present condition of
this industry shows that India has got bright future, because of the tremendous developments taking
place in this service industry.

22
Chapter – VII
Suggestions

23
 SUGGESTIONS

1. Steps must be taken to improve the quality of workforce and the retention of the skilled
employees.
2. Proper attention should be paid to increase the number of rooms and the steps must be taken to
increase the image of India in the minds of foreigners.
3. While making location decisions, we need to take all precautions for the developments of an
environmental friendly location.
4. While designing the hotel buildings, a number of factors are taken into consideration. Since it is a
permanent investment in which we find least scope for alteration, it is essential that the hotel
designers keeps in the mind cost effectiveness and good returns for the investments in building a
hotel.
5. The benefits of electronic revolution should be made available to the function rooms so that
effective business conventions would benefit corporate houses. The development process should
also take into account the safety measures so that in case of any mishap, the protective measures
are taken immediately.
6. While managing restaurants and bars, it is significant that the cases of menu fatigue and the
provision of good and safe are ensured to avoid cases of food poisoning. To be more specific, for
restaurants it is found impact generating as this would affect the image of the hotel and its
peripherals.
7. That hotel companies have to assign an overriding priority to innovate the peripheral services.
8. The more volatile a market is in terms of fluctuations in demand; the more important it is to work
within a framework of agreed objectives. In order to provide an orderly and agreed basis on
which to conduct its business in an ever changing market environment, any business has to plan
its activities.
9. Some exciting new trends that will have a positive impact in the development of India tourism,
over the next two years, are those of adventure and responsible tourism. India's pledge to
sustainable tourism development has led to the industry waking up to the need for doing its bit of
giving back to society through CSR and environment protection.
10. The Institute of Hotel Management, Catering & Nutrition which is working under the
administrative control of the Central Government will be utilized to start new training courses so
that the residents of Gujarat can get admission and manpower requirement of this sector is met
24
 Appendix – IV

REFERENCES

Ahluwalia, Montek Singh (2000): “Economic Performance of States in the Post-

Reform Period,” Economic & Political Weekly, Vol.35, No.19, May 6, pp.
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Dholakia, Archana R. (1990): Benefits from Government Expenditure in India - A

Welfare Indicator Approach, Bombay: Himalaya Publishing House.

Dholakia, Archana, R. (2000): “Fiscal Imbalance in Gujarat – Non-Tax Revenues

and Subsidies,” Economic & Political Weekly, Vol. 35, No. 35, August 26,
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Dholakia, Archana and Dholakia, Ravindra (2000): “Macroeconomic Performance

and Tax Revenue – The Case of Gujarat State,” in Journal of Indian
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Dholakia, Ravindra H. (1994): “Spatial Dimension of the Acceleration of

Economic Growth in India”, Economic & Political Weekly, Vol. 29, No. 35,
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District Industries Centre, Ahmedabad. (1999): “Nagarik Adhikar Patra (Citizen’s

Charter)”, Office of Industries Commissioner, Government of Gujarat,
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Government of Gujarat (1994): Report of The Gujarat State Finance

Commission, April.

25