Focus

India-ASEAN Tourism; A Torsel Trace for SMEs

Prof. R. R. Azad
Jun 2012
Page 1 of 2
Tourism is an important sector of the economy. It contributes significantly in the country's GDP as well as Foreign Exchange Earnings. With its backward and forward linkages with other sectors of the economy, like transport, construction, handicrafts, manufacturing, horticulture, agriculture, etc., tourism has the potential to not only be the economy driver, but also become an effective tool for employment generation, poverty alleviation and ensuring growth with equity.
 
Tourism linkages between India and ASEAN precede the trading activities. ASEAN, undoubtedly, is one of the most dynamic regions in the world trade. Both India and ASEAN have attained growth in tourism led at rates higher then the global average over the last three decades. At present, India and ASEAN have come together and are looking forward for complementarities in tourism sector with tourism led exports and imports.

Images of tourist spots 
 
Indian Scenario

Tourism in India is emerging as an important sector. The sector has emerged as the third largest foreign exchange earner for the country by contributing in the country's GDP as well as in foreign exchange earnings to the tune of approximately US $ 46 mn.
In the year 2010, the tourism sector witnessed substantial growth as compared to 2009. The Foreign Tourist Arrivals in India during 2010 were 5.58 million as compared to the Foreign Tourist Arrivals of 5.17 million during 2009, showing a growth of 8.1%. The growth rate during 2009 over 2008 was (-) 2.2%. Foreign Exchange Earning from tourism during 2010 were Rs. 64889 crore as compared to Rs. 54960 crore during 2009, registering a growth rate of 18.1%. The growth rate in Foreign Exchange Earning from tourism during 2009 over 2008 was 8.3%.
 
Infrastructure development holds the key to India's sustained growth in the tourism sector. Therefore, the Govt. of India made consistent efforts to develop quality tourism infrastructure at tourist destinations and circuits. To focus on development of infrastructure at places of national and international importance, the Ministry of Tourism, Govt. of India, through its scheme of providing financial assistance to the State Governments and Union Territory Administrations, has identified 38 mega tourism projects, out of which 26 have been sanctioned till February, 2011. These mega projects are a judicious mix of culture, heritage, spiritual and eco-tourism in order to give tourists a holistic perspective.
 
Ministry of Tourism also took an initiative to interact with other Central Government Ministries, such as Railways, Civil Aviation, Road Transport & Highways, Food Processing and Urban Development, and also the concerned State Governments to achieve convergence so that the impact of investment at the identified destinations is maximized. The Ministry has identified 24 destinations/circuits in India, based on their tourism potential, to be covered in the first phase of this initiative. The Ministry has emphasized with the State Governments on construction and upkeep of wayside amenities along highways/roads leading to tourist destinations, cleanliness at the tourism sites and development of tourism projects in backward and rural areas. 
 
Employment

Tourism gives direct and indirect employment to approximately 48 million people which accounts for approximately 11% of India's working force. It is estimated that the contribution of tourism to national G.D.P. will increase sufficiently in next 10 years.
Macro Economic Changes
 
At present critical macro-economic changes are driving tourism. The reliance of economy on agriculture is decreasing. Other important changes are improvement in enabling infrastructure aviation, highway networks, increasing confidence in economy, rapidly growing middle class and an increasing per capita income.
 
Page 12
Comment
Name :

Email Address :

Comment :
Enter the code :*
0 Comments >>