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Application for Grant for a Research Project

Title

TOURISM DEVELOPMENT IN THE PONDICHERRY UNION TERRITORY: A STUDY OF DEMAND, SUPPLY, ECONOMIC IMPACTS, AND TOURIST SATISFACTION.

Submitted to THE MINISTRY OF TOURISM THE GOVERNMENT OF PONDICHERRY By


BABU P GEORGE (Lecturer, Departm ent of Tourism Studies, Pondicherry University )

& G. POYYA MOLI (Reader, Department of Ecology, Pondicherry University)

PONDICHERRY UNIVERSITY AUGUST, 2006

INTRODUCTION Tourismthe Industry, and its Customers: Taken together its direct and induced effects, the tourist industry now involves more people and more money than any other industry on earth. As a subject to study, tourism is highly dynamic, ever changing as it is no longer just associated with the Developed World, but also has a global impact and effect for a number of reasons which are associated with tourism as a phenomenon: Tourism arises from the movement of people to, and their stay in, various destinations; There are two elements in all tourism; the journey to the destination and the stay including activities at the destination; The journey and the stay take place outside the normal place of residence and work, so that tourism gives rise to activities, which are distinct from those of the resident and working populations of the places, through which tourists travel and in which they stay; The movement to destinations is of a temporary, short-term character, with intention to return within a few days, weeks or months. According to the United Nations, tourists are temporary visitors to a country staying at least 24 hours, for the purpose of leisure or business (Source: United Nations Conference on International Travel and Tourism, Rome, 1963). A broader and closer to practice definition is could be that tourism is travel to a destination, a country, region, city or place where the visitors consider travel and related conspicuous consumption as their main objectives. The tourist industry then is the industry that supplies the goods and services to the travelers, either domestic or international. Thus, from the industry perspective, tourism is a service industry, comprising a number of tangible and intangible components. The tangible elements include transport systems air, rail, road, water, and now, space;
TOURISM DEVELOPM ENT IN TH E PONDICH ERRY UNION TERRITORY: A STUDY OF DEM AND, SUPPLY, ECONOM IC IMPACTS, AND TOURIST SATISFACTION.

hospitality services accommodation, foods and beverages, tours, souvenirs; and related services such as banking, insurance, and safety and security. The intangible elements include: rest and relaxation, culture, escape, adventure, new and different experiences. Tourism is especially important in developing nations as it is seen as a way to propel regional economic growth in countries, a panacea for development, due to its promise of jobs, economic growth, and infrastructure development. Many developing nations, for these reasons, strive to maintain or increase their tourist attractions, accessibility, and amenities. However, these decisions are often taken ad-hoc and quite arbitrarily. With no database to inform, decision makers are guided by vested interest groups or, at best, by vague intuitions. Far worse, there is no feedback data available to correct the program implementation mistakes either. THE SCOPE OF THE PRESENT STUDY The present study aims to: To gather the essential statistics related to tourist arrivals,

demographic profiles, duration of stay, places visited, facilities provided and used, seasonality variations, etc. To estimate the potential of existing destinations and to study the feasibility of developing more destinations and offering.

To study the impact of tourism upon the local economy and to perform a comprehensive cost-benefit analysis. To study the tourist expectations and issues related to satisfaction, loyalty, and complaint behavior. To conceive, develop, Tourism and staff deliver in training programs to the

Pondicherry

customer

handling,

destination

development, tourism planning, and management.

TOURISM DEVELOPM ENT IN TH E PONDICH ERRY UNION TERRITORY: A STUDY OF DEM AND, SUPPLY, ECONOM IC IMPACTS, AND TOURIST SATISFACTION.

The research will extend for a time-span of two years. The geographical coverage of the study will be Pondicherry, Mahe, Yanam, and Karaikkal. Specific destination areas in the UT of Pondicherry will be chosen for an in depth study in such a way that they represent the length and breadth of the UT. METHODOLOGY The methodological procedures adopted for studying each of the major subthemes is discussed below separately: Gathering demographic and visitation statistics For collecting visitor numbers, student volunteers will be employed at the major entry points in Pondicherry. An alternative means is to collect checkin and duration-of-stay information from hotels. Entry passes issued at recreational facilities (like Chunnambar Boat House) will also be counted. Visitor demographics will be collected through sample surveys conducted across destinations and across seasons. Sampling will be done at Pondicherry, Mahe, Yanam, and Karaikkal. Estimating tourist potential for existing attractions The most appropriate starting point for estimating economic potential of existing attractions is the level of visitation for previous years. For this, daily, weekly, or monthly visit figures may be used as appropriate. For each year after the first year listed, calculate the percentage growth from the previous year using the formula: Visits for Year - Visits for Previous Year Visits for Previous Year

X 100% = % Change in Visitors

TOURISM DEVELOPM ENT IN TH E PONDICH ERRY UNION TERRITORY: A STUDY OF DEM AND, SUPPLY, ECONOM IC IMPACTS, AND TOURIST SATISFACTION.

One can also calculate for peak visits by month or day. If the previous year's visitation was higher than that for the current year, the percentage growth will be negative. Both average and peak number of visits should be calculated. After calculating the growth in average and peak visitation, write down any special events planned for the year, such as the opening of a new attraction or festival. Also, write down any outside events that might have affected visits that year, such as a recession or a world's fair. Calculate an average growth rate for the period. Attempt should be made to modify the growth rates to remove the effects of special events or attractions and outside events. Major peaks or valleys need to be explained to help understand the long term trends and to know if different rates of change might be expected in the future. Using the estimated growth rate, calculate potential visit figures for each year ahead in your planning horizon. For each year use the following formula: Estimated Visits for = the Year Previous Year's Estimated Visits % Annual Growth Rate

Start with visits for the current year and calculate year by year into the future. Adjust these levels to consider any special events or attractions or any outside events you expect in future years. Estimating tourist potential for new tourist attractions It is obviously very difficult to come to a firm estimate of visits for new attractions because there are no current levels to use as a starting point. Generally, the best procedure is to seek out other tourist areas with similar types of attractions, similar target markets, and similar competition and use current visit levels there to estimate the levels likely for your community and attraction.
TOURISM DEVELOPM ENT IN TH E PONDICH ERRY UNION TERRITORY: A STUDY OF DEM AND, SUPPLY, ECONOM IC IMPACTS, AND TOURIST SATISFACTION.

There will not be an existing area that perfectly matches the proposed one but current visitation figures for other areas can be adjusted to reflect differences in:

Size of potential target markets. Nearness and convenience of target markets. Availability of competitive areas to the target markets. "Drawing power" of the area's attractions. Costs to the target markets of visiting the areas.

Assessing support services to meet estimated visitation level An inventory of support services will provide essential information about anticipated needs, and may be useful in advertising and marketing. For example, do the hotels have facilities that appeal to families (do they have swimming pools and playgrounds), or to convention goers (do they have convention facilities and nighttime entertainment?) Does the restaurant inventory include those capable of catering gourmet meals or are they predominantly fast food establishments? Do the food services include a variety? The general process of evaluating community needs and the costs to satisfy them involves several steps. The following pattern may be useful. Determine the present level of facilities and associated capacity. Identify the kinds of tourism and visitors contemplated. En route visitors will require fewer services than destination (overnight or longer) travelers. Estimate the quantity of tourists (and duration of season). This may be a projection of your past experience adjusted for expected economic conditions, or an estimate based on the experience of similar attractions elsewhere.
TOURISM DEVELOPM ENT IN TH E PONDICH ERRY UNION TERRITORY: A STUDY OF DEM AND, SUPPLY, ECONOM IC IMPACTS, AND TOURIST SATISFACTION.

Estimate the increase in facilities and services needed for the estimated quantity of visitors at the expected level of service. In most cases, simple surveys using guidelines provided here are sufficient.

Consider methods of financing these additions and develop a budget and schedule for these provisions. Studying the impact of tourism upon the economy

This is one of the major-most components of the present research. The important steps involved in the operationalization of the impact study are: Step 1: Define the scope of the study and alternatives to be considered in the analysis. Local government decisions fall into three general categories: plans, policies, and projects. The effects associated with each category vary somewhat and require different levels of detail in an analysis. It may take some time to understand what local officials and leaders want from an analysis, but care in defining the scope of the study will save time later and make the results more useful to those who must interpret them. In general, plans often provide for broad assumptions and community goal statements while policies and projects become increasingly specific. Whether a plan, policy, or project is under consideration, the basic method of an economic impact study is to compare alternatives to discover the differences in their economic effects. In some cases, it may seem easier to analyze only the original proposal and not to consider any alternatives, but this will limit the usefulness of the study because it forgoes consideration of variations that might make the proposal better suited to the community. In extreme cases, a decision not to consider alternatives could lead to rejection of a proposal that, with small changes, could have benefited the community.

TOURISM DEVELOPM ENT IN TH E PONDICH ERRY UNION TERRITORY: A STUDY OF DEM AND, SUPPLY, ECONOM IC IMPACTS, AND TOURIST SATISFACTION.

The number of alternatives that should be considered depends on the number of realistic options available and on other constraints, such as time, information, funding, and political realities. Whatever alternatives are chosen, there must be sufficient information to permit analysis of the economic impacts at a level that will aid realistic decision making. It is useful for leadership to limit alternatives to be included in the analysis to a realistic number. Step 2: Define exactly what decisions need to be made, what information is being requested, and what questions the study should answer. Far too often the consultant or analyst determines what information a community needs and what assumptions are to be made about the community's goals and resources. An analyst must understand precisely what decisions local officials need to make and what information is being requested to conduct a useful economic impact study. Even if staff members have been given the responsibility for choosing alternatives and shaping the study, they may still want to consult those who will use the study to be sure it covers the essential points and contains the most useful information possible. For example, if the staff has been asked to analyze the economic impact of several general plan alternatives, there may be certain areas of particular concern to local government, such as the fiscal effects of different levels of growth or the effects on employment. These decisions are the responsibility of the community, perhaps facilitated by the analyst. The community should start by listing the types of questions that the study is to answer. Not all questions can be anticipated; the study itself may highlight other areas that need consideration. With an initial list of areas to be included, however, the analyst can move to the next step. Step 3: Determine how detailed the analysis should be. The scope of the study will depend on several factors:

TOURISM DEVELOPM ENT IN TH E PONDICH ERRY UNION TERRITORY: A STUDY OF DEM AND, SUPPLY, ECONOM IC IMPACTS, AND TOURIST SATISFACTION.

What type of proposal is under consideration; a plan, policy, or project. Whether the study is part of a continuing process of economic analysis or is a one-time request for analysis of a particular proposal. Time and budget constraints. Expertise of the available staff within the community. The audience for the study; the city council, board of supervisors, or a department chief. The geographic area covered and the length of time considered.

The level of detail a study requires will depend primarily on the type of proposal being considered. Comprehensive plans for the entire community obviously will involve extensive analysis of the present economic conditions and the expected effects of the plan's alternatives, while a plan for a particular service in one area of the community could be analyzed with far less work. Policies and projects will involve different levels of detail, depending on their scope or size in relation to the rest of the community. A second important consideration in determining a study's level of detail is whether it is a one-time analysis or part of a continuing program. The initial economic impact studies will entail more work in gathering the necessary data and information, but if the analysis is continued, each report that follows will be easier to prepare. Beginning the work at the broadest plan level will provide a framework within which to analyze other decisions. The scope of the study may be partly determined by the individuals or groups who have requested the analysis. The city council or planning commission might want only a short summary of the general impacts of a proposal, while a department chief might need a detailed study of all the important impacts. Other constraints on the level of detail in a study, such as time and budget limitations, will be beyond the control of the staff. A staff's unfamiliarity with methods of economic analysis may also add to
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these constraints. Local governments may wish to use analysts and others from outside the community to do much of the initial work and training. Two additional limitations on a study are the area it encompasses and its duration. The area included in an economic impact assessment should be clearly defined, and the reasons for its delineation explained, because the boundaries of political jurisdictions do not necessarily correspond to the boundaries for housing, land, employment, economic impacts, or even fiscal impacts on local government. Some impacts will be zero within certain areas. For example, new hotel construction may have no effect on tourism growth in the region, even though it influences the local area. Or additional hotel rooms in one area may mean less demand for accommodations in the rest of the region. Particularly in a metropolitan region, communities cannot always pinpoint the effects a proposal will have on their own tourist-related employment or land-use. To do so often requires an awareness of regional interactions and of factors outside the local community or government's control. The availability of data will play an important role in defining the study area. The geographic area is generally that political unit (the city, county, or standard metropolitan statistical area) for which published statistics exist. As a practical matter, the final choice of the geographic area may have to be left open until the details on the various alternatives are clear. This may mean working for a period of time with overlapping geographic areas. The length of time considered in an impact assessment can also

significantly affect the results. The assessment should take into account the period that the economic impacts will be important; the first five years, perhaps, could be covered in detail and a broader look given to the life of the impacts. The longer the period of analysis, the less certain projections become.

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Plans usually specify the period for which they apply; the assessment should provide analysis for the same period. Since policies may involve temporary decisions or establishment of guidelines for a community, the analyst needs to provide an estimate of how long the effects of a proposed policy are likely to last. Projects have an initial effect during the construction phase, a continuing effect through their middle age, and often a different effect during their declining years. Thus, the economic impacts should be considered not only during the building period, but for the entire life of the project, as long as reasonable estimates can be made, which may require certain assumptions about things such as future real estate values, property tax rates, inflation rates, and consumer demand. Step 4: List in the study all fundamental assumptions and limitations. A study's assumptions may cover a wide range of variables, such as changes in the national economy; the rate of growth in population, employment, or income; or the continuation of or change in trends. Whatever alternatives are chosen, the comparison of impacts will be valid only if the same methods have been used consistently throughout the assessment. For example, if inflation effects are considered in one alternative, they should be considered in all alternatives. The study should clearly state which methods are being used and if, for any reason, one alternative is treated differently, the difference should be explained. It may be necessary to add to the initial list of assumptions during the analysis. There may be opportunities to indicate which assumptions most influence the long-term benefits and costs of the project. This is helpful in evaluating the risks associated with the project. Limitations in the analysis should be identified. For example, if the time available to prepare the study is limited, and some economic areas cannot be covered as thoroughly as desired, the analyst will want to explain this limitation and how it affects the study. Likewise, any limitations in the

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method of analysis should be thoroughly discussed to give decision makers an idea of risks inherent in the outcome. Step 5: List all economic impacts that are considered. For a very large project or a major plan, all economic impact areas will probably be affected, while for specialized plans, policies, or projects, certain areas may not be affected. For example, a community's general plan probably will affect everything from population size to the delivery of public services, while a ten-unit housing development will not have significant effects on income levels or government services except for a small community. Step 6: Determine what data are needed, what are available, and how they will shape the study. In order to evaluate the economic impacts of a change in land use for a large tourism project, it is useful to detail past growth trends and to prepare a current community profile. The analysis of economic impacts may warrant collection of past and current data to help address the following:

Visitor expenditures and their impact on local revenues. Estimate of community visitor days so we know if existing work force and facilities can handle the expected demand. (i.e., measurement of employment, housing, existing land use, etc.)

Data to determine the dollar cost and benefit of local tourism development will help the community assess who will gain and who will not benefit from the development. (i.e., local property and sales taxes, costs associated with traffic congestion, pollution damage, etc.)

Projections of future growth and change also will be needed. These could be based on historical trends or on a number of assumptions about the probability of certain changes occurring. Projections of population and
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business activity will be particularly important in evaluating development proposals. Finding adequate data can be a major obstacle. A vast amount of data has been collected and published by governments and private organizations, but all too often these data do not provide the exact information needed. All data must be evaluated on the basis of how they were collected, what assumptions were made, what items were excluded, why they were collected, and by whom. The decision to collect new data will depend on the cost and time involved, compared to the quality and adaptability of existing data. The data available and the need to prepare new data can shape the type of analysis. If good data are not available and time does not permit preparation of new information, these limits should be clearly identified. For example, the analyst might explain that certain projections of employment and income are very rough estimates, but they will have to be relied upon for estimating the effects of the proposal on public services and land area requirements. Step 7: Analyze the effect of each alternative on the individual economic areas being considered and analyze indirect effects (or cross-impacts) among economic areas. A plan, policy, or project which imposes a change in one economic sector of the community may trigger a change in many of the other sectors as well. When these ties are understood, the indirect or secondary impacts of a proposal can also be identified. Step 8: Present results so alternatives can be compared, identifying the aggregate and distributional impacts of each alternative. The aggregate economic impacts include the total effects in one sector, such as the aggregate employment impacts or the aggregate impact on housing.
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Distributional impacts are those that affect some individuals, groups, institutions, businesses, and communities more than others. For instance, land use restrictions imposed on high density housing may drive up the cost of cheaper housing, thereby directly affecting lower income families. In addition to quantitative survey techniques, methods in the qualitative tradition like Participative Review Analysis and Focus Groups will be used to arrive at conclusions about the impacts. Steps to construct a custom income multiplier 1. Collect data on the volume and pattern of tourist spending. This information will come from survey data or regional use figures. 2. Estimate the percentage of sales income which remains in the area. Interviews with knowledgeable business people in each sector will provide this estimate. 3. Determine the percentage of tourist expenditures that directly increase local revenue. This is a "weighted" average of all sectors where the weights are the percent of the tourist expenditure in each sector. 4. Estimate the percentage of income that local people spend in your community. 5. Estimate the percentage of goods and services sold locally that are produced locally. 6. Multiply the percent estimated in Step 4 by the percent estimated in Step 5. 7. Subtract the percent calculated in Step 6 from 100 percent and divide the result into 100 percent. 8. Calculate the income multiplier by multiplying the result obtained in Step 7 by the percent calculated in Step 3. 9. Determine the increase in local income by multiplying total tourist expenditure by the income multiplier.
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Measuring visitor expenditures There are four methods that communities may use to collect estimates of total dollars spend by visitors to their area. Diaries A diary format that continuously records spending is the most accurate method for obtaining expenditure information. Diaries require minimum recall on the part of respondents, which is advantageous if highly detailed information is sought. There are two major shortcomings, however. First, recording expenses may change the tourist's spending habits and therefore bias total tourism spending estimates. Second, participation tends to be low because few vacationers welcome an additional chore. Innovative incentives might offset this problem. Tourists with certain types of personalities may be more likely than others to keep diaries. Personality differences might also be reflected in spending behavior. Exit interviews Another method of gathering expenditure information is to interview people as they leave an area. People can be asked to estimate their total expenditures for the entire visit to an area, or for only their last day there. Since fewer people will refuse to complete an exit interview, you can expect to find a more representative group of respondents with this method than with diaries. People will tend to forget many expenditures, however. They will remember better the expenses from the last day than from earlier days. A variation on the exit interview is to interview people randomly in an attempt to reach them on each day of their visit. This reduces the bias found

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when interviews are concentrated on the last day of a visit, but it does not eliminate the problem of recall. Mail surveys at home Questionnaires may be sent to visitors at their home addresses, using a random sample derived from various registration data. This type of questionnaire typically gets a higher response rate than the diary method, but a lower response rate than exit interviews. The time lapse in mail surveys increases the tendency to underestimate actual expenses. Surveying tourist-related business Businesses directly affected by visitor expenditures include hotels, shops, and restaurants. Information gathered from proprietors or managers of these establishments is subject to their ability to differentiate between touristrelated sales and sales to residents. Studying the cost benefit analysis of tourism First, list the applicable benefits, then do the same with costs. Some items will be known with reasonable accuracy, some will be "guesstimates," and others may be immeasurable. The following information is necessary to estimate benefits and costs.

An inventory of public support services with the present range and capacity of those facilities. Support services might include police, sewer, water, rest rooms, streets, medical facilities, rescue systems, parks, solid waste arrangements, camp grounds, etc. If the capacity does not meet present or future demands, expansion of those facilities that are in short supply must be taken into account as a cost of tourist development. Be sure to ascertain whether both public and private support services must be expanded. Private support services might include: guide service, hotel and motel rooms, restaurants, transportation.
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A projection of the expected number of visitors. An estimate of the expenditures tourists will make. Multiply the anticipated increase in types of tourists (day visitor, overnight, or camper) by the expenditures expected for each type, including any changes in expenditure levels expected with the new facilities, to estimate the increase in sales as a result of tourism development. Benefits most commonly associated with tourism are increased local incomes and employment, but there may be additional benefits.

Tax revenues might increase, providing tax relief to local residents if additional revenues exceed the costs of additional services. Tourism may provide a means of diversifying the existing economy or of reducing the seasonable fluctuations, particularly important in areas dominated by one industry. Of course, tourism can compound the challenges of seasonable variation in many situations.

Tourists may also be important for cultural or social reasons. Local festivals and celebrations are important cultural events and tourist attractions in hundreds of communities.

Any increase in the demand for public services (for example, extra police or improved public rest rooms), is a cost of tourism development. The costs of promotion should also be included. If time is donated, the value of volunteer time may be calculated by multiplying hours worked by an appropriate wage rate, not lower than the minimum wage. The costs and benefits of tourism development can be measured with varying degrees of precision. Immeasurable items should be indicated with a plus (+) for a benefit or a minus (-) for a cost. Environmental costs and community resentment attributable to tourism are examples of negative items. With imagination and research, even these may be given dollar estimates in certain cases, for example costs for hauling additional solid waste, travel delays, higher housing costs, etc.

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After all of the costs and benefits have been estimated and entered in the table, subtract the total costs from total benefits to derive net measurable benefits. The net measurable benefits should be positive before a community proceeds with a tourism development program. Another useful measure is the benefit-cost ratio. This is a "best guess" of the rate of return on identifiable investment costs. If benefits divided by costs equal, for example, 1.2, this implies that for every $1 of costs, $1.20 will be returned to the community. However, many important effects of tourism development cannot be considered in economic terms. Pluses and minuses in the table must be considered. Community members can determine appropriate weights for each plus and minus. There may not be agreement whether any one item is a plus or a minus (one person's solitude is another's loneliness) but all items should be consciously listed and net measured benefits calculated. In the course of this procedure, ideas may arise which will accent either the pluses or the minuses. Because community support is an essential ingredient to the success of a tourism program, consensus is vital. If the pluses outweigh the minuses, perhaps the plan should proceed. If, however, minuses outweigh pluses, maybe the plan should be reconsidered or changed. Outweighs is the key, not outnumber. Measuring tourist satisfaction with Pondicherry To measure customer satisfaction with Pondicherry, a standardized scale has to be constructed. This will be done following the widely accepted GAPS model (SERVQUAL, HOLSAT, etc are some of the scales already in existence). Along with customer satisfaction, with the addition of a few more questions in the instrument, customer loyalty can be measured, which
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too will be done. It is expected that during the interviews, customer complaining behavior also can be understood, though we do not pose this as a tangible outcome of the research as of now. Providing training programs Action research is an applied research strategy which collects information to solve problems and to bring about changes in specific settings or organizations. It aims to address both the practical concerns of people (in a community, organization etc) and the goals of research through people working together on projects. Using methods such as participatory mapping, brainstorming, focus group discussions, workshops, etc. action research is a flexible method of integrating research into projects, involving community participants, and generating action. The findings from the study will be synthesized and submitted in the form of a research report to the funding agency. At the same time, instructional modules will be culled out from this report under themes like managing tourist satisfaction and loyalty, tourism impact assessment, tourism planning guide etc. These instructional modules will contain generic theories, explained and supplemented by the real life insights from our field studies. Through lectures, case discussions, etc, these modules may be delivered to the Pondicherry Tourism staff. PROJECT EVALUATION We have devised an inbuilt mechanism to make sure that the project is taking the expected trajectories and that tangible progress is achieved at its each major phase. The mechanism works concurrently with the project, from its beginning to end. We believe that flawless processes adopted in the interim stages of the project will yield a flawless finished product in the end.

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Interim evaluation of the project will be done at critical points, in addition to a thorough final review. The internal review of the project will be a selfassessment of the achievements, impacts, and lessons learned during the project implementation. The specific aims of the evaluation are to: Assess the effectiveness, efficiency and timeliness of project implementation Evaluate the impact of project activities and related outputs, including their contribution to the overall goal of the project Determine the projects relevance in relation to the needs of the

stakeholders and environment Assess the long-term sustainability of the actions initiated Identify lessons learned with respect to the projects

strategic approach (the processes and mechanisms chosen to achieve the objectives) Briefly, the project evaluation methodology will be as follows: A desk review of the project document, work plans and progress reports and other relevant documentation to review and assess achievements, and performance regarding work plans, in particular Consultation of project partners, staff and key stakeholders through interviews, brain-storming, meetings and questionnaires, where appropriate. The evaluation elements and questions are defined in participatory form by the project investigators and the evaluating team. A project advisory committee may be constituted by the directorate of Tourism that will monitor the progress of the project from time to time and suggest guidelines, if necessary. THE WORK PLAN A tentative work-plan is given below: S.No Name of the activity 1st 6 2nd 6 3rd 6 4th 6

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1 2 3

months Preliminary/Preparation work ** Exploratory visits ** Selecting study Areas, ** Preparation of questionnaires obtaining permissions and net working Training courses Conducting pilot studies ** Refining /redesigning research plan Conducting final field survey including qualitative studies# Compiling and Analyzing the

months

months

months

4 5 6 7 8

** ** ** **

data# 9 Stake holder consultations ** ** ** ** 10 Submitting the final Report ** # given the urgency, data relating to tourist demographics and the visitation patters alone shall be collected, analyzed, and submitted within the first one year. RELEVANCE OF THE PROJECT TO DIFFERENT STAKEHOLDERS The usefulness of the project for various stakeholder groups is immense and some of the key benefits are listed below:
There is no statistics worth mentioning available about tourism in

Pondicherry; be it about the customer numbers, their profiles, visitation patters, activities, impacts, consequences of various government schemes, or the profile of available tourism supply. The present study is supposed to fill a major part of this gap.
The insights from the study will become a significant tool in the

hands of decision makers at various levels in the government in aiding scientific/rational decision making.
TOURISM DEVELOPM ENT IN TH E PONDICH ERRY UNION TERRITORY: A STUDY OF DEM AND, SUPPLY, ECONOM IC IMPACTS, AND TOURIST SATISFACTION.

22 The study will provide essential feedback about the success and

failures of schemes already introduced and are running at various stages so that proper corrective measures may be undertaken.
The

feasibility analysis will provide the market feasibility of

potential tourism developmental projects in the region and will outline a blueprint for the future of Pondicherry tourism.
Tourist

expectation-satisfaction-loyalty-complaint behavior survey

will generate a repertoire of common complaint situations which become inputs for remedial planning, including employee training and providing a more customer friendly environment, causes of in general. or Understanding tourist expectations, satisfactory

otherwise outcomes, and antecedents of tourist loyalty are the backbones of any informed marketing strategy for the region and the present research is expected to deliver results in this direction.
As a spin-off of the proposed project, we would be generating

awareness among the university student community. They would be motivated to involve themselves in contributing to the tourism industry of Pondicherry (by assigning field projects, summer internships, and by enabling them to participate in the seminars, conferences, training courses, and workshops to be organized). If needed, the scheme may be extended to students from other institutions, especially the undergraduate colleges affiliated to the University.
We the investigators as applied researcher envisage that some

significant theory of tourism practice could be unearthed from the data that we collect, thus enriching the discipline of tourism. THE PROJECT BUDGET
a) Salaries & Wages
TOURISM DEVELOPM ENT IN TH E PONDICH ERRY UNION TERRITORY: A STUDY OF DEM AND, SUPPLY, ECONOM IC IMPACTS, AND TOURIST SATISFACTION.

23 S.No 1 2 4 Designat ion Res earch Associate @ Rs. 10000 P.M, for 2 y ears. Res earch Assistant @ Rs. 5,000 P.M., for 2 y ears. Student Volunteers @ Rs 500 p er day X 400 day s. Sub total No 1 1 N.A. Am ount (Rs. ) 2,40,000/2,40,000/2,00000/6,80,000/-

b) Perm anent Equipm ent S.No 1 2 3 4 5 Equipm ent Laptop/Notebook Computer Desktop computer Printer- Scanner- Copier Digital Camera with camcorder LCD Projec tor Sub Total c) Expendables S.No 1 2 Item CDs, Floppies, Pen- drives, Stationeries Communication Expens es charges Sub Total d) Travel and allowance s S.No 1 2 3 Designat ion Inves tigators @ Rs6000 per visit X 6 visits (to other regio ns of UT) Res earch Associate @ Rs. 3000 per visit x 6 visits(to other regions of UT) Miscellaneous Travel Exp enses Sub Total Am ount (Rs. ) 36,000/18,000/20,000/74,000/Am ount (Rs. ) 20,000.00 No. 1 1 1 1 1 Am ount (Rs. ) 75,000/50,000/25,000/45,000/1,00000/2,95,000/-

Email, Courier, Cell p hone, internent connectio ns, Postal 20,000.00 40,000/-

TOURISM DEVELOPM ENT IN TH E PONDICH ERRY UNION TERRITORY: A STUDY OF DEM AND, SUPPLY, ECONOM IC IMPACTS, AND TOURIST SATISFACTION.

24 e) Other project costs S.No 1 2 3 5 6 Activity Orga nizi ng stakeholder meeti ngs and PRA exercises: Am ount (Rs. ) 8 80,000/10,000 1,00000 25,000 20,000 2,35,000/-

meeti ngs @ Rs.10,000 p er meeti ng Purchasing books, data, journa ls etc Traini ng course for the Pondicherry Tourism staff Preparation of Report Contingencies Sub total BUDGET SUMMARY

S.No 1 2 3 4 5 6

Activity Salaries & Wages Permanent equipments Expendables Travel and Allowanc es Other Project Costs Institutional overhead to University (15 % of the total cost) Grand Total

Am ount (Rs. ) 6,80,000/2,95,000/40,000/74,000/2,35,000/1,98,600/15,22,600/-

Table 3

BUDGET JUSTIFICATION

Budget Head Research Associate Resea rch Assistant Student Volunteers

Justifications For supervision of the study and synthesizing the results For office assistance. For collecting quantitative data as well as in conducting qualitative investigations For visiting the destination areas /offices to collect data; stakeholder groups; for to meet attending

Travel allowance

Laptop

Notebook

with

wireless

seminars; etc. internet Coordinating research while on the move, make presentations to

connectivity

TOURISM DEVELOPM ENT IN TH E PONDICH ERRY UNION TERRITORY: A STUDY OF DEM AND, SUPPLY, ECONOM IC IMPACTS, AND TOURIST SATISFACTION.

25 concerned parties at different places, Desktop PC Digital Camera with camcorder etc. For project office usage For collecting /storing digital images of Computer CDs, Floppies, Pen Drives LCD Projector destination areas for training, impact studies, etc. For storing voluminous project related information

To assist in intermediate level presentations to the volunteers, the industry, local community groups, government officials, etc.

Miscellaneous expenses (incidentals) Organizing Stakeholder meetings

Incidental minor expenses such as postage, Fax, Phone etc. To appreciate the demand-supplyimpact related concerns from the point of views of different stakeholder groups. To share the insights from the study, esp. wrt customer satisfaction, complaining behavior, and loyalty. For updating our knowledge For submission and publication To be handed over to our University as per our requirements as service charges

Training for Pondicherry Tourism Staff

Books & Journals Project report preparation Project overheads (15% of the total cost)

APPENDIX A. Institutional Affiliation of the Project Investigators Pondicherry University, established in the year 1985 is offering Postgraduate, M.Phil and Ph.D. programmes in frontier areas of Arts and Sciences. A new common sophisticated instrumentation center for detailed analysis of soil, water and body tissues is being set up. Our library can
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boast of the best books and Journals on all available subjects. Our campus has a faster Internet connectivity and campus Intranet for all Faculty. Department of Tourism Studies (DTS) of Pondicherry University was established in 1991 with the assistance from the Central government as a nodal centre of excellence with a view to cater to the increasing demand for trained manpower in tourism and allied industries as well as to undertake high end research in these fields. From its inception, DTS has been doing a commendable work in the direction of fulfilling its exalted mission. It offers an MBA as well as an MPhil program in tourism and its products are well received by the academia and the industry. Throughout, DTS has collaborated with the State administration of tourism in matters like the formulation its master plan, organization of various events and festivals such as yoga festival and world tourism day celebrations. It is a member of industry associations like IATO, TAAI, etc. Department of Ecology and Environmental Sciences of Pondicherry University was established in the year 1987. The broad objectives of this strongly inter-disciplinary department include teaching, research, consultancy and extension in key areas of basic and applied Ecology. Besides, the local ecosystem studies, the department has been actively engaged in doing research on bio-diversity and conservation issues in both Western and Eastern Ghats, Gulf of Mannar Biosphere reserve, Integrated watershed/coastal Zone management, Biomedical /Municipal solid waste management issues, sustainable management of natural resources and Ecosystems, sustainable tourism and Agro-ecology. The principal investigator of the proposed project is associated with this department as a reader. Recently, UGC has sanctioned an innovative MA program on Sustainable Development in the University, in which the principal investigator is one among the faculty involved. Thus, there is a possibility for involving the students as well as the other faculty and Visiting faculty of this program as well for the proposed project.
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Please visit www.pondiuni.org for more information about the university. B. Bio-data of the Investigators I. BABU P GEORGE (PRINCIPAL INVESTIGATOR) Address: BABU P GEORGE LECTURER IN TOURISM STUDIES SCHOOL OF MANAGEMENT PONDICHERRY UNIVERSITY KALAPET, PONDICHERRY, INDIA-605014 E-mail:myselfgeorge@gmail.com Personal Website: http://myselfgeorge.googlepages.com Educational Qualifications: BS(Electronics), MBA (Tourism), PhD (Management Studies) Publications in Refereed Journals/Books/Proceedings, etc: George, B.P. and Swain, S.K. (2007). HRD practices in the classified hotels in Orissa. PASOS: Journal of Tourism and Cultural Change, 5(1). (In press-Published from Spain). George. B.P. and Hegde, P.G. and Salgaonkar, P. (2007). SERICSAT: A scale to measure service recovery satisfaction and an application. International Journal of Hospitality and Tourism Administration, 8(1), 3850. (In press-Published from USA). Henthorne, T.L. and George. B.P. (2006). Local community support for post-tsunami recovery efforts at an agrarian village and a tourist destination: A comparative analysis of the influence of social capital.

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International Journal of Economic Perspectives, 3(1), 34-48. (Published from USA). George, B.P. and Swamy, G.A. (2006). Consumer innovativeness and its relationship with consumer attitude towards space tourism: A study. Journal of Tourism, 6, 26-39. (Published from India). Narayanan, K.G. S. and George, B.P.(2006). Corporate Performance

Management: An innovative strategic solution for global competitiveness. Journal of Indian Management, January-March, 31-42. (Published from India). George, B.P. and Samsundar, C.(2006). The translational managerial persona: Typology and significance. Economea Romaneasca, 1(1), 266-273. (Published from Romania). George, B.P. (2005). Measuring tourist attachment to holidays: Some preliminary results. Tourism: An International Interdisciplinary Journal, 52(3),229-246. (Published from Hungary). George, B.P. (2005).Public transportation operations in India: The case of subsidization. Prestige Journal of Management and Research, 9(2), 240-254. (Published from India). Mohan, K. and George, B.P. (2005). Activity Based Costing. Amfiteatru Economic. 2(4), 12-21. (Published from Romania). George, B.P. (2005). The Role of management executives in Nation Building. Journal of Indian Management, January-March, 71-78. (Published from India).

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George, B.P. (2005). Education as business: Musings in the context of Goa. University News (AIU), 2(3), 18-24. (Published from India). Mekoth, N. and George. B.P. (2005). The case for and against a subsidized future for the state transport undertakings: Some assessments and reflections. Journal of Transportation, 15(7), 21-37. (Published from India). George, B.P. & George, B.P. (2004). Past visits and the intention to revisit a destination: Place attachment as the mediator and novelty seeking as the moderator, Journal of Tourism Studies, 15(2), 37-50. (Published from Australia). George, B.P. (2004). Expectation-disconfirmation and tourist satisfaction/ dissatisfaction: The moderating role of purchase involvement, Journal of Travel and Tourism Research, December(Autumn), 81-99. (Published from Turkey). George. B.P. and Mekoth, N. (2004). Self-monitoring as a key to the tourist: Some hypotheses and directions for future research. International Journal of Hospitality and Tourism Administration , 4(5), 25-41. (Published from USA). George. B.P. and Hegde, P.G. (2004). Employee attitude towards customers and customer care challenges in Banks, International Journal of Bank Marketing, 22(6), 390-406. (Published from UK). George, B.P. (2004). ICT For Sustainable Development: The Case Information and Communication Technologies As Sustainable Tourism Drivers, Great Levellers And The Hope Of Third World Tourism. DeeCee Journal of Management 1(1), 03-09. (Published from India).

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George, B.P. (2004). The ongoing GATS negotiations and concerns over sustainable tourism development. The Wings Journal, 1(1), 13-26. George, B.P. (2004). Touristic authenticity and authenticity in tourism marketing: A critical text in the backdrop of postmodernism, globalization and the internet. Tourism and Cultural Change Working Paper Series, Sheffield Hallam University, UK. Books Authored or Edited George, B.P. and Nigam, D. (2006, Ed.). Tourists and Tourism (ISBN: 8188683586) Abhijeet Publishers, New Delhi. George, B.P. (2005). Holidays, Holiday Attachment, and Customer

Loyalty in Tourism (ISBN: 8188683582 ), Abhijeet Publishers, New Delhi. George, B.P. and Swain, S.K. (2005, Ed.). Theory and Practice: Perspectives from Abhijeet Publishers, New Delhi. Selected Conference Presentations and Publications George, B.P. and Swamy, G.A. (2006). Variedness in the daily life and the demand for special interest tourism. Paper presented at the international seminar on Special Interest Tourism, organized by IITTM in Bhubaneswar, India, and later published in the conference proceedings. Swain, S.K. and George, B.P. (2005). Employees perception of HRD practices in the classified hotels in Orissa. Srinagar, India. Paper published in the proceedings of the international conference on HRD in Tourism, held at Advancements in Tourism (ISBN: 8188683744),

India

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George, B.P. (2003). The ongoing GATS negotiations and concerns over sustainable tourism development. Paper presented at the Nirma International Conference In Management 03, Ahmedabad, India, and appeared in the proceedings. See http://nim.ac.in/website/nicom4authors.asp) George, B.P. (2003). Business networks in tourism: Are we to follow textbook capitalistic business models? An investigation into some innovative business practices and possible theoretical underpinnings. Paper presented in absentia at the Global Business and Technology Association conference03 held at Budapest and later published in the conference proceedings. (See http://www.gbata.com/home.html). George, B.P. (2003). Exogenous Innovations and the reinvention of travel intermediaries: Theoretical considerations and empirical findings. Paper presented published at the NZTHRC& ITSC conferences 02, Newzealand and later in the conferenceproceedings.(See

www.tourismresearch.com/NZTHRC%20Conference%20Newsletter %20November%202002.pdf). George, B.P. (2002). Techno-politics in India: Technological cannibalism and survival strategies presented at the Global Business and Technology Association conference02 held at Rome and later published in the conference proceedings. (See http://www.gbata.com/home.html). George, B.P. (2002). The political economy of education: Universities in the new economic order. Paper accepted for presentation at LESSOMS International Annual Conference 03, University of Ren, France. George, B.P. (2000). Rural tourism: An Indian Dream. Paper presented at the National Seminar on Tourism00 held at Bundelkhand University, Jhanci, India, and published in the proceedings.

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Seleced Articles in Books George, Delhi. George, B.P.(2006). The influence of involvement upon tourist B.P.(2006). Holiday Attachment: The Construct And Its

Measurement. In Babu, S. and Parida, B.V. (Ed.). Sage Publishers, New

satisfaction. In George, B.P. and Nigam, D. (2006)(Ed.). Tourists and Tourism. Abhijeet Hospitality Publishers, New Delhi. George, B.P. and Mohan, K.(2006). Customer loyalty in healthcare: An

investigation into factors affecting patient loyalty. In Balakrishnan, V. et al. (Ed.). Innovations in Marketing. Excel Books, New Delhi. Aradhana, A.C. and George, B.P.(2006). Customer complaints and

complaint management in the hotel industry: A review of literature. In George, B.P. and Nigam, D. (2006)(Ed.). Tourists and Tourism. Abhijeet Hospitality Publishers, New Delhi. George, B.P. (2004). Touristic authenticity and authenticity in tourism marketing: A critical text in the backdrop of postmodernism, globalization and the internet. In Jacob, R. New Facets of Tourism Management. Abhijeet Hospitality Publishers, New Delhi. George, B.P. (2003). Co-operative alliances and other grassroots local networks. In Ranga, M. and Nigam, D., New Approaches in Tourism Management, Abhijeet Hospitality Publishers, New Delhi. George, B.P. (2005). Forward to Healthcare Marketing. Salgaonkar, P. Abhijeet Publishers, New Delhi.

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George, B.P. (2005). Forward to HRD in Tourism. Swain, S.K. Abhijeet Hospitality Press, New Delhi. Academic/Research Experiences: Pondicherry University, Lecturer in Tourism Studies, 2005Courses Handled: Tourism Concepts, Tourism Product Management,

Tourism and Public Relations, and Quantitative Techniques for Tourism. Goa University (UGC Senior Research Fellow in Management & Lecturer) 2002-2004. Courses Handled: Business Research Methods, Marketing Research,

Consumer Behaviour, Management Process, and Economics of Tourism. Mar Ivaneos College, Trivandrum (Lecturer in Tourism Administration) 2001-2002. Courses Handled: Services Marketing, Tourism E-Business , Hospitality Management, and Eco-Tourism. Miscellaneous Merits: Member, Scientific Board of Editors, Amphiteatru Economic International Economics Journal, Romania. UGC National Fellowship for Research and Lectureship (UGC NET/ JRF& LS). Member, BoS in Tourism, Pondicherry University; Avinashilingam University; and an invited member of BoS in University. Management, Goa

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Warden, Hostel, Pondicherry University. FDP Specialized Certification in Management Teaching and in Trainer Development. Certification in Research Methodology First Prize in National Tourism Quiz, 99 (HP University, Shimla). Member, Curriculum Development Committee in for the proposed

International

Inter-University

Programme

Tourism.

Admissions,

Research & Extension Coordinator, FMS, Goa University. National schooldays. Best National Service Scheme Volunteer (BPC College, Piravom, Kerala). State-level Prizes in Elocution, Essay Writing, etc. College Students Union General Secretary College, Piravom, Kerala. (For more information, please visit http://myselfgeorge.googlepages.com ) and Journal Editor, B.P.C Lower and Upper School Merit Scholarship holder during

II.

G. POYYA MOLI (CO-INVESTIGATOR)

TOURISM DEVELOPM ENT IN TH E PONDICH ERRY UNION TERRITORY: A STUDY OF DEM AND, SUPPLY, ECONOM IC IMPACTS, AND TOURIST SATISFACTION.

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