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www.expresshospitality.com FORTNIGHTLY INSIGHT FOR THE HOSPITALITY TRADE
1 - 15 December 2006  
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Home - Management - Article

Capital View

Right in the Eleventh try

Rabindra Seth

Hosting five million visitors from abroad has been the tourism industry's dream for well over a decade and a half. In the quest for this magic number a dream paper (officially called a 'strategy paper') was drawn up in the early 1990s by the then cabinet secretary - an unusual level of initiative.

That paper had envisaged an investment of Rs 36,000 crore from both the public and private sectors and a whole list of actions were listed to build the infrastructure to service that many tourists. The move caused a lot of excitement among trade associations, a few ripples in the national media and received accolades from travel journals.

As is the case with such grandiose ideas, industry leaders stopped talking about it. But the dream of five million arrivals somehow sustained itself as a reference point in any discussion on infrastructural requirements.

Then came a new tourism secretary. He revived the 'strategy paper' in his own name with a few changes in the previous draft, and it received the same interest from national and trade media as well as trade conventions as before. The next step of implementation was neither demanded nor taken. But the dream of five million tourists persisted. Then there was a change of government. Tourism success stories from our neighborhood had already made some dent on the socialism-stung leadership and the spirit of economic reforms wafted over the tourism sector as well. The prime minister's reference to the importance of tourism from the ramparts of the Red Fort on Independence Day confirmed that the sector was now on the national agenda. The Planning Commission made a five-fold increase in the allocation for tourism in the Tenth Plan. Aviation stepped out from darkness into brilliant sunshine. The rest is history.

This trip down memory lane was caused by the latest arrival statistics circulated by the tourism ministry. In the first nine months of this year, 3.06 million visitors came to India - an increase of 13.1 per cent over the same period in 2005. On the basis of this growth rate (actually many more people travel during the winter months) we should close the year with a count of 4.40 million, just 6,00,000 short of the coveted five million.

And so 2006 will be remembered as the year in which we crossed the four-million mark. But wait; with a sustained growth of some 13 per cent in 2005 and 2006 so far, India can be sure of welcoming the five millionth visitor before 2007.

Interestingly, one entity to which the dream coming true will be no surprise is the Planning Commission. In its Tenth Plan projections, it had set a target of raising India's share of the world market from 0.39 per cent to 0.62 which many had thought was ambitious. Translated into numbers, the Commission's target (based on the then growth of world movements) would come to 5.6 million. Arrivals now projected would come pretty close to the Commission's calculations for which it deserves the industry's applause.

The million time-line

The country's march toward the five-million mark is also interesting. The first million was achieved in 1980. The second, fifteen years later, in 1995. It took another decade to reach three million in 2004 and only two years to get to four million in 2006. Hopefully, it will just take a year for its fifth million.

Tourism ministry mandarins would like us to believe that it is all thanks to the Incredible India campaign. Some analysts would give a fair share of the credit to economic reforms and the burgeoning corporate traffic from abroad

Tourism ministry mandarins would like us to believe that it is all thanks to the Incredible India campaign. Some analysts would give a fair share of the credit to economic reforms and the burgeoning corporate traffic from abroad. Industry doyens would hasten to remind you that this is all fine. Indian tourism is definitely on the upswing but in the global context it has miles to go. Look at China's 37 million arrivals and well over 10 million counts of smaller countries like Malaysia and Thailand.

We are in the final year of the Tenth Plan and the approach to the Eleventh Plan scheduled to begin in April 2007 is now under discussion. Here is what the draft approach paper says on tourism: 'The contribution of tourism services in the GDP for 2002-03 is estimated at 5.83 per cent including direct and indirect effects. Tourism, as the third largest net earner of foreign exchange, earned some US $6 billion in 2005. Total employment, direct and indirect, generated by the sector is estimated at 38.6 million for 2002-03 constituting 8.27 per cent of the total employment in the country. During the Eleventh Plan period, there is potential to generate 27 million additional jobs due to tourism. To fully benefit from natural, cultural, business, leisure, spiritual, religious, ecological, adventure and medical tourism, the Eleventh Plan should focus on creation of adequate tourism infrastructure like modernisation and expansion of airports, increase in accommodation facilities under star and budget category and improved road connectivity to tourist destinations.' Industry's lobbying for tourism's needs, it would seem, has reached the right address…

The writer is a freelance journalist. He can be reached at rabseth@yahoo.com

 


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