About Indian Tourism

As per the Travel and Tourism Competitiveness Report 2009 by the World

Economic Forum, India is ranked 11th in the Asia Pacific region and 62nd
overall, moving up three places on the list of the world's attractive destinations.

It is ranked the 14th best tourist destination for its natural resources and 24th for

its cultural resources, with many World Heritage sites, both natural and cultural, rich fauna, and strong creative industries in the country.
India made it to the list of "rising stars" or the countries that are likely to become

major tourist destinations in the next five years, led by the United Arab Emirates, China, and Vietnam.

 India also bagged 37th rank for its air transport network. The India travel

and tourism industry ranked 5th in the long-term (10-year) growth and is expected to be the second largest employer in the world by 2019.
India has been ranked the best country brand for value-for-money in the

Country Brand Index (CBI) survey conducted by Future Brand, a leading global brand consultancy.
India also claimed the second place in CBIs best country brand for

history, as well as appears among the top 5 in the best country brand for authenticity and art & culture, and the fourth best new country for business.

Tourism in India Figures

0.8% share of world market Tourists (2008)
4.6 million (International) 382 million (domestic)

Employment
Direct - 10.7 million Indirect 24.4 million

 Export earnings ~ US $ 9.6 bn 2008

Contribution to GDP
Direct 2%
Overall 5.9%

India: An emerging superpower

FUTURE GDP:
Indias GDP will exceed
Italys in 2020, Frances in 2020 Germanys in 2025 and Japans in 2035

Tourism growth in India

According to World Tourism Organization estimates, India will lead

in South Asia with 8.9 million arrivals by 2020

India is poised to emerge as the 2nd fastest growing (8.8%) tourism

economy in the world over 2005-14 according to the World Travel & Tourism

Contribution to the economy

According to the Travel & Tourism Competitiveness Report 2009 brought out by the World Economic Forum, the contribution of travel and tourism to gross domestic product (GDP) is expected to be at 6.0 per cent (US$ 67.3 billion) in 2009 rising to US$ 187.3 billion by 2019. The report also states that real GDP growth for travel and tourism economy is expected to be 0.2 per cent in 2009 and to an average 7.7 per cent per annum over the coming 10 years. Export earnings from international visitors and tourism goods are expected to generate 6.0 per cent of total exports (almost US$ 16.9 billion) in 2009, growing (nominal terms) to US$ 51.4 billion in 2019. The travel and tourism sector which accounts for 6.4 per cent of total employment or 1 in every 15.6 jobs in 2009 is expected to generate 40,037,000 jobs i.e. 7.2 per cent of total employment or 1 in every 13.8 jobs by 2019. Real GDP growth for Travel & Tourism economy is expected to be 0.2 per cent in 2009 and to average 7.7

per cent per annum over the coming 10 years.

Government Initiative
The campaign Visit India Year 2009 was launched at the International Tourism Exchange in Berlin, aimed to project India as an attractive destination for holidaymakers. The government joined hands with leading airlines, hoteliers, holiday resorts and tour operators, offering them a wide range of incentives and bonuses during the period between April and December, 2009. The airlines participating in the campaign, Air India, Jet Airways and Kingfisher Airlines are offering a companion free ticket for every ticket purchased for international and domestic flights. Connecting flights to the departing airports are included in the final travel costs. The Indian Travel Agents Association (IATO) is offering holiday-makers a free sightseeing tour in a city of their choice. Euromonitor International's Travel And Tourism in India report states that the Government of India increased spend on advertising campaigns (including for the campaigns Incredible India and Ahithi Devo Bhava - Visitors are like God) to reinforce the rich variety of tourism in India.

The Ministry promoted India as a safe tourist destination and has undertaken various measures, such as stepping up vigilance in key cities and at historically important tourist sites. It also deployed increased manpower and resources for improving security checks at key airports and railway stations.

Tourist Circuits in India

The Golden Triangle Delhi, Agra and Jaipur The Desert Adventure Jodhpur, Jaisalmer, Bikaner & Barmer The Heart of Heritage Gwalior, Shivpuri, Orchha & Khajurahio
Adventure Sports Srinagar, Manali, Kulu, Thar Desert, Sariska, Mount, Abu, Pune, Gangtok, Darjeeling, Shillong & Ooty

The Buddist Circuit Sarnath, Kushinagar, bodhgaya, Nalanda, Rajgir & Nagarjunakonda
The Temple Trail Kanchipuram, Madurai, Tiruchirapalli, Puri & Konark The Lure of the Jungle Corbett, Kanha, Bandhavgarh & Manas

The Great Pilgrimage Prayag, Varanasi, Puri & Konark

The Beaches of India Goa, Diu, Kovalam, Mamallapuram & Gapalpur

Religion in Stone
Belur, Halebid, Mysore & Hassan

Backwater of Kerala Alappuzha & Kumarakam

Island Holidays Andaman, Nichobar & Lakshadweep

The North East Gangtok, Guwahati, Shillong & Kohima

 CULTURE, HERITAGE AND ETHNO :TOURISM Chattisgarh, amongst other

states has identified and is developing ethnic villages. The private sector is also being encouragement for proper maintenance.
ADVENTURE TOURISM Adventure sports such as water sports, trekking,

rock-climbing, para-sailing and bungee-jumping are popular with the younger travelers and working executives.
MEDICAL TOURISM AND SPAS India has originated as one of the most

important hubs for medical tourism. Many people from the developed countries come to India for the rejuvenation promised by yoga and ayurvedic message therapy as well as for high-end surgeries like cardiac bypass surgery or knee/hip replacement.
HIGHWAY TOURISM - Besides catalyzing diversification of tourist traffic

and revenue from the urban centers, planned development of highway tourism opens opportunities for enhancing local employment and uplifting rural economy through local feeder enterprises, which will find scope to grow in the vicinity of such highway tourist complexes.

RAIL TOURISM The Indian Railways has introduces several new services to

promote rail tourism luxury tourist trains, exclusive steam and hill charters, tour packages.
CARAVAN TOURISM A new policy guideline to promote Caravan Tourism

in India and facilitate the infrastructure required for the same would be announced.
WELLNESS TOURISM - A new policy guideline for promoting Wellness

Tourism in India would be announced. The policy would aim to leverage Indias potential in traditional systems of wellness and medicines like Ayurveda, Siddha and Yoga and to project India as a unique destination for spiritual healing.
HELIPOT TOURISM - With a view to promote tourism in hilly and remote

areas, guidelines would be framed to provide central financial assistance to States and Union Territories for constructions of helipads/heliports at selected destinations which have tourism potential but lack good connectivity's

Travelers analysis
9% 2% 0% 2% 5% 28% 7% SE Asia W Asia W Europe Africa Australia C & S America E Asia E Europe N America S Asia
30 25 20 15 Number of Travellers (Mn)

Share of Outbound Travelers, 20062008

12% 20%

Number of Outbound Indian Travelers

10 5 0 1998 2004 2006 2008 2018

Foreign Tourist Arrivals

Estimates of foreign tourist arrivals (FTAs) and foreign

exchange earnings (FEE) are important indicators of the tourism sector. FEE in US$ terms during the month of November 2009 were US$ 1.2 billion as compared to US$ 1 billion in November 2008.

Tourist Visits in India

2500
97.87% 97.63%
97.96% 98.24%

2000
1500 1000 500 6.7 309 2003 23.5 14.5 1127

38

100

96
92

2124 88
84

International Tourist Visits Domestic Tourist Visits

598
2008E 2013F 2013F

80

The number of domestic and foreign tourists has almost doubled in 2003 and 2008.

Indian Tourism Industry-Market Size

300

Market Size in Bn

250

200
150

79% 77%

78%

78

International Tourist Spends Domestic Tourist Spends

74%

100 50 0 15 4 2003 11 32 2008E

22 73 2013F

164

2018F

India GDP Growth

The most important growth is the robust economic growth that has been witnessed in the country. Indias GDP has been growing at the rate of 6% since the liberalization of economy in 1991 and has grown over 8% in the past few years. At 8% CAGR, Indias GDP would almost triple from US$ 1200 Bn to US$ 3500 Bn by 2023

Growth in GDP per Capita

Indias strong economic growth has caused the GDP per Capita to increase rapidly over the past 5 to 10 years. At current rate, the GDP per capita in 2013 would be double of what it was in 2003

Distribution of Households Across Income Brackets

More and more families are expected to leave the deprived or aspirers category and join Indias burgeoning middle class. By 2025, the Indian middle class is expected to constitute 46% of the Indian population. Subsequently, discretionary spends would be going up and this bodes well for the tourism sector.

Share of LCCs In Airlines

80 70 60 50 40 30 20 10 0
Share in %

53% 47%
Fsc: Full Service Carriers LCC : Low Cost Carriers

The above graphs indicates the increasing share of LCC from 33% to 47% between 2006 and 2008. The advent of LCC has spurred domestic air travel to grow from 11 Mn travelers to 36 Mn travels in the last decade. Operational airports in the country have gone up from close to 40 airports in 2004 to 81 airports at present.

Air Travel in India

50 40
Axis Title

43.35% 35.79%

30 20 10 0

7.56%
Total

Domestic
International

1996 - 1997 - 1998 - 1999 - 2000 - 2001 - 2002 - 2003 - 2004 - 2005 97 98 99 00 01 02 03 04 05 06

Steps taken by Government to Promote Tourism in Country.

Airline tickets, tour package are all set to go cheaper with 2%

reduction in service tax State-run oil companies have slashed Aviation Turbine Fuel (ATF) prices by 7%, the 11th reduction since September last year. Airport Charges to be cut for a limited period by 50%. Removal of 8% excise duty on ATF. Reduce the charges which airport operator charges from the oil companies, leading to enhanced performance.

Indian Textile and Apparel Industry

Indian textile and apparel industry is one of the oldest and most significant

industries in the country and one of the largest in the world. Apart from China, no other country can match the size, spread, depth and competitiveness of the Indian textile and apparel industry. Today the industry contributes around 14% to industrial production in the country, 4% to the GDP, is estimated to directly employ apprx. 35 Mn people apart from the indirect employment in allied sectors, thus making it the second largest employer after agriculture. It accounts for about 15% to the countrys exports and is, in sum, an important economic engine for the nation. In the past 10 years, the industrys actions, government policies as well as market events have begun to converge, providing several growth opportunities for the sector domestically as well as in the global market.

Current Size : Indian Textile and Apparel Market

Indian Textile and Apparel Market US $ 62 Bn

Domestic Market US$ 40 Bn

Exports US$ 22 Bn

Textiles US$ 10 Bn

Clothing US$ 30 Bn

Textiles US$ 12 Bn

Clothing US$ 10 Bn

The present size of the Indian textile and apparel market is US$ 62 Bn of which 22 US$ Bn is exports while rest US$ 40 Bn is the domestic market. The Indian domestic textiles and apparel market is one of the fastest growing market in the world. It is expected to become one of the major consumption bases in near future. The textile industry plays a significant role in getting the foreign exchange reserves into the country as it contributes approx. 15% of the told exports from the country.

FDI in India : Current Scenario

Due to Indias recent liberalization of its foreign investment regulations, the country has become one of the fastest growing destinations for FDI inflows. India offers many advantages to foreign investors like strong economic growth leading to increased buying power by the middle class, low wages, and an educated work force. Indias Special Economic Zones (SEZs) attract foreign investment by providing tax incentives, assistance with bureaucratic and administrative problems and access to reliable infrastructure. Indian economy is growing 6 % per annum since last 10 years. Even in times of recession / slowdown in most of the developed economies, India is expected to maintain this level of growth. From August 1991 to March 2009, India has attracted a total of US$ 106 Bn, of which approx. US$ 90 Bn was invested during Apr 00 to March 09. In textile and apparel sector, 100% FDI allowed under the automatic route. FDI sectors to the extent permitted under automatic route does not require approval either by Government of India or Reserve Bank of India (RBI).

Healthcare Industry

The wave of change has swept across every industry, such dynamism and

corporatization has completely changed the face of the healthcare industry. Due to increased competition Healthcare Providers are unable to pass the burden onto patients in the same proportion. Since there is a rising demand and unprecedented growth of the sector, there is a growing need to come up with newer models to improve operational efficiency and make processes, infrastructure and out outlook to management more lean and specific.

The Ongoing Transformation in Hospitals

Documentation

Mode of Payment Public Relations

Quality

Hospital Financial Human Resources Operations

Customization

Paper Records

Out of Pocket

Doctor Patient relationship

Sporadic quality checks

Accounting

Low Employee Participation

Mass Approach

Electronic Medical Records

Third - Party

Marketing / CRM

Accreditation

Revenue Cycle Management

Active Employee engagement

Personalized Care

Medical tourism in India

Medical care in the USA and private health care in UK is very expensive. India has well-trained doctors who will work for a lower fee than they could expect abroad. Medical tourism offers people the option of knee replacements, hip replacements, heart care, cosmetic & dental surgery in India. Hundreds of people have treatment abroad, saving them a great deal of money in treatment costs.

Confederation of Indian Industry (C II) sponsored Mc Kinsey & Co. study. Healthcare in India : The Road Ahead report:

1.3 million medical tourists visit Asia / year abroad - grew to

Nos. of US patients seeking cheaper care

7,10,000 / year
Over 1, 50000 medical tourists travelled to India in 2002 bringing

in earnings of $ 300 million. 2007-08 > 3,00000

30

Predicted growth of medical tourism in India

30000

25000

25000

20000

15000

10000

7000
5000

2000 500
0
1 2007 2 2012 3 2017 4 2022

By 2012 India is likely to become the top medical destination

Source: CII

Customer Relationship Management

Customer Relationship Management (CRM) is a method for an organization to track, maintain and organize a database of its current and prospective customers. In the healthcare sector, there is a wide difference between the customer and consumer.

Hence there is a series of relationships that need to be nurtured and managed to enhance patient retention.
CRM is increasingly applied in the healthcare industry in the following way:
CRM goes long way in building patient confidence and goodwill, and hence it becomes a

deciding factor for patient while choosing a hospital again. Hence customer service is one of the major drivers of repeat business. In a active CRM programme it is necessary to train every member of the hospital in providing quality care and service to the patient . It plays important role in retaining the patient. The cost of efforts undertaken to retain a customer is ten times lesser than that of acquiring a new one. Today health care has become global. India has growing number of international patients and more and more hospitals are rushing to upgrade their services.

Application of CRM
Application of CRM
CRM has now evolved into a science which has been used very effectively and productively to enhance the efficiency of various sectors such as the banking industry.
Collection & Integration of Customer data

Multi-channel Integration

Customer Marketing Credit Cards, Insurance Schemes Customer Analysis

Customer Delight & Retention

Customer profitability, Propensity to busy, Attrition behaviors

Customer Care

Analysis & Application Of this date to provide quality Service to customers

Education Industry
The enrollment in higher education is currently at 17 Mn at a Gross Enrollment Ratio (GER) of 13%. Enrollment are projected to grow at a CAGR of 5.6%, reaching 22 Mn by the year 2013 and 29 Mn by the year 2018. As per these estimates, 12 Mn additional seats in the higher education would need to be created by the year 2018 as shown in the Exhibit 2. Total Current and Projected Growth in Higher Education Enrollment (Mn)
GER 21% GER 17% GER 13%

Enrollment in Higher Education

The cost per seat in a regular higher education institution is UD%$ 8300. Therefore, the total investment that India required for higher education alone would be US$100 Bn.

Total Current and Projected Growth in K-12 Enrollment

Currently, the total number of students enrolled in K-12 schools in the country is 317 Mn and expected to grow to 328 Mn by 2013 and further to 351 Mn by year 2018.
400

Total Current and Projected Growth in K-12 Enrollment (Mn)

97 74

300
97

100 80

Age Group

14-18 11-14 6-11

200

Clearly, India will need to add at least 34 Mn additional seats in K-12 segment in the next 10 years to cater to the education needs of its continuously growing population, as shown in the Exhibit 1.

72

100
147 158 171

0 2008 2013 2018

The cost per additional seat, at a conservative estimate is US$ 2400 (cost of land included at US$ 1 Mn per acre). This translates into a minimum investment requirement of US$ 80 Bn of investment over the nest 10 years to establish these 34 Mn seats.

Vocational Streams of Education

Parameters
No. of Students Capex- 1 Centre (US$)

Health & Beauty

1380 195,800

Counseling
560 133,333

English Speaking
1180 100,000

Cost Per Seat (US$)

145

240

84

Cost per Seat Estimation in Few Vocational Streams of Education

The vocational education and training landscape of India is extremely underdeveloped. India currently has 5,500 industrial training institutes and 1,745 polytechnics as compared to 500,000 similar institutes in China. This infrastructure cater to only 2.5 Mn people annually. There are 175 trade training programs in India as compared to 1,500 in the USA. Clearly there is a pronounced skill gap in terms of both quality and quality in the country. As estimated 85-90 Mn people with vocational skills would be requited in various sectors between 2008-2013. According to industry sources, the split of people intake sector-wise over the next 5 years will be 44.8% from the service sector, 31.2% from agriculture and 12.6% from manufacturing. Cost per seat will very vary significantly in this segment depending on the location, scale, positioning of training service and investment by private players vs. the govt.

INFRASTRUCTURE FOR TOURISM-WHAT DOES IT INDICATE

Adequate Accommodation Road infrastructure Air connectivity Basic amenities at tourist centres Developed tourism circuits Adventure Tourism Tourist trains

The Road Ahead

According to the latest Tourism Satellite Accounting (TSA) research, released by the World Travel and Tourism Council (WTTC) and its strategic partner Oxford Economics in March 2009: The demand for travel and tourism in India is expected to grow by 8.2 per cent between 2010 and 2019 and will place India at the third position in the world. Indias travel and tourism sector is expected to be the second largest employer in the world, employing 40,037,000 by 2019. Capital investment in India's travel and tourism sector is expected to grow at 8.8 per cent between 2010 and 2019. The report forecasts India to get capital investment worth US$ 94.5 billion in the travel and tourism sector in 2019. India is projected to become the fifth fastest growing business travel destination from 2010-2019 with an estimated real growth rate of 7.6 per cent. Preparing for the 2010 Commonwealth Games in Delhi, the Tourism Ministry is exploring the provision of tented accommodation to tourists in Faridabad and Suraj kund in nearby Haryana.

Benefits of tourism
Employment generator.
Low Capital Investment in the trade. Imports earn foreign exchange.

Cultural revival/ regeneration

SWOT ANALYSIS
Strengths Weakness Opportunities
FAST EXPANSIONS

Threats
TERRORISM

DIFFERENT VARIANTS INADEQUATE

OF TOURISM INTERNATIONAL COOPERATION AVERAGE LENGTH OF STAY

INFRASTRUCTURE ACCOMADATION BASIC AMENITIES LACK OF PROFESSIONAL MANAGEMENT

RAPIDLY GROWING MIDDLE CLASS

RECESSION
INFLATION/ DEFLATION

CONCLUSIONS
Tourism is one of the main driver of economic growth/employment

generation in India.

It has the potential of addressing issues such as rural poverty,

strengthening the economic status of the rural artisans, earning forex etc.

India has the potential to become a global health destination It is necessary to create the right environment to attract FDI by

establishing progressive legal-institutional framework and facilitating organizations

THANK YOU