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:: India’s tourism industry
Domestic tourism industry
in India
Santosh Kumar Debta
Business Analyst of POSCO Research Institute, Delhi Office
ndia is a place to explore and revel in its beauty and the tourism
industry of the country works to bring about a blend of basic
amenities and exquisites sights. It strives to make the splendid
Icomfortable and the unique accessible. Over time, there has been a
paradigm shift in the concept of tourism and it has come to include many
types of tourism including adventure, wildlife, eco, etc. India with vastness
and diversity thus offers various tourism options.
To give a glimpse of how large the tourism industry in India is at this
point of time here are the facts. The Indian Tourism sector is one of the
largest service industries in the country in terms of its contribution to the
Gross Domestic Product (GDP) and Foreign Exchange Earnings, as well as
providing employment to millions.
The main driver for increase in domestic tourist traffic in India has been
the burgeoning Indian middle class with rapidly increasing purchasing power
and their evolving lifestyle. Also the accessibility to tourist locations has
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Winter 2012�POSRI Chindia Quarterly
improved due to substantial increase in the
India’s domestic tourism is a number of flights, trains as well as road
growing industry which connectivity to most locations in the country.
offers vast opportunities due The Aircraft Traffic Movement (ATM) in India
to younger demographics of has increased by 62% from 630,000 in 2006 to
the travellers and their 1.03 million in 2010. Domestic tourism plays
changing preferences. an important role in overall tourism
development in the country. The number of
domestic tourist visits (DTVs) increased from
462 million in 2006 to 740 million in 2010. In 2009 when the country
witnessed a negative growth of 2.2% in Foreign Tourist Arrivals (FTAs),
domestic tourist visits registered a growth of 18.8%.
○● Four kinds of DTVs in India
First, honeymooners. They are the biggest chunk of DTVs who look out
for the best and who are young and fun loving. They want a lot from the
trip. Attractive destinations are Kerala, Goa, Himachal Pradesh and
Kashmir.
Second, family on a vacation. They want the best at the cheapest and
look out for refreshment and relaxation. They usually prefer off-season
which is low priced devoid of foreign tourists. They plan a tour to any part
of India depending on the size of their family budget.
Third, pilgrims. They look out for specific places of religious
importance like Varanasi, Mudurai, Tirupati, Shirdi, Vaishnodevi,
Amarnath, Badrinath, Puri, Dwarika, Ajmer, Amritsar, etc. As India is a
country with religious values, pilgrimages pull a large number of domestic
tourists and the area are exclusively explored by the pilgrims only.
Finally, the rest are on leisurely vacation using the holidays like
weekends. They usually travel to the nearest destination that is not far than
one night travel by road/train. Working class and students basically fall in
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POSRI Chindia Quarterly�Winter 2012
:: India’s tourism industry
this category. The destinations can be different for different cities. Shorter
duration of holidays is a trend observed mainly during summer travel in this
category.
○● Major tourist destinations
Goa
Goa is always a bright choice for all kinds of domestic tourists for its
renowned beaches. A total of 2.225 million domestic tourists arrived in the
state in 2011 as against 2.201 million domestic tourists who turned up for
the year 2010. When foreign tourists fly back, the domestic tourists are seen
visiting the state during the months of July, August and September
(monsoons) due to the fall in tariffs. Goa is well connected by overnight
travel from major cities like Hyderabad, Pune, Mumbai and Bangalore. It
serves as a weekend destination for these metro cities.
Himachal Pradesh
Popularly known as the Devbhumi─Land of the Gods, Himachal
Pradesh is a beautiful hill state in India, nestled in the north-west region of
western Himalayas. From vast tracts of high altitude Trans-Himalayan
desert to dense green deodar forests, from apple orchards to cultivated
terraces, from snow-capped high Himalayan mountain ranges to snow-fed
lakes and gushing rivers, Himachal Pradesh offers breathtaking pristine
beauty through the destinations like Shimla, Manali, Dahramshala, etc.
The number of domestic tourists in the state has increased from 7.7
million in 2006 to 12.9 million in 2010, growing at a compound annual
growth rate (CAGR) of 14% as compared to a CAGR of 12.5% at the
Indian level. It witnesses maximum traffics during the period from March to
June with 46% of the total tourists visiting the state visit during these four
months. This is the period during which summer vacations start in schools
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Winter 2012�POSRI Chindia Quarterly
across the country, resulting in peak tourist traffic. Due to the overnight
distance by road from Delhi and Chandigarh, Shimla has been attracting
corporate tourists for conducting off-site trainings and conferences and
organizing national and international level events these days.
Mt. Abu
The verdant oasis lying amidst lush forested hills, Mount Abu,
perched on the highest peaks of Aravalis, in the state of Rajasthan is one
of the most popular hill retreats in India, especially for Delhi, Jaipur and
Ahmedabad. It carries the most beautiful and serene spiritual retreat
centers and museums developed by the Brahma Kumaris as oases of
peace across the globe. These homely campuses for spiritual education
provide the perfect setting for exploring the self, the Supreme and the
mysteries of time. In 2011, this small tourist destination was visited by
2.2 million domestic tourists.
Jammu and Kashmir
Tourism in the Kashmir valley, known as the Heaven on Earth, has
rebounded in recent years. In 2009, the state became one of the top tourist
destinations of India. Gulmarg, one of the most popular ski resort
destinations in India, is home to the world's highest green golf course.
Before militancy intensified in 1989, tourism formed an important part of
the Kashmiri economy. The tourism economy in the Kashmir valley was
worst hit by then. However, the holy shrines of Jammu and the Buddhist
monasteries of Ladakh valley continue to remain popular pilgrimage and
tourism destinations. Every year, thousands of Hindu pilgrims visit holy
shrines of Vaishno Devi and Amarnath which have had a significant impact
on the state's economy. The Vaishno Devi alone contributes INR 4.75 billion
to the local economy annually. It was reported that 0.7 million tourists
visited Kashmir in 2010, including 23,000 foreigners. In 2011, the number
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POSRI Chindia Quarterly�Winter 2012
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