Impact of Tourism on Indian Economy

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Market Survey

Tourism can generate maximum employment opportunity because of a large number of subsidiary industries.

September 2008 and a 3.3 per cent growth in passenger traffic through September. The negative trend intensified during 2009, exacerbated in some countries due to the outbreak of the AH1N1 influenza virus, resulting in a worldwide decline of 4 per cent in 2009 to 880 million international tourist arrivals, and an estimated 6 per cent decline in international tourism receipts.

Definition of tourism
Tourism is travel for recreational, leisure or business purposes. The World Tourism Organisation defines tourists as people who “travel to and stay in places outside their usual environment for more than 24 hours and not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited.” Hunziker and Krapf, in 1941, defined tourism as “the sum of the phenomena and relationships arising from the travel and stay of non-residents, insofar as they do not lead to permanent residence and are not connected with any earning activity.” In 1976, the Tourism Society of England’s definition was “Tourism is the temporary, shortterm movement of people to destinations outside the places where they normally live and work and their activities during the stay at each destination. It includes movements for all purposes.” In 1981, the International Association of Scientific Experts in Tourism defined tourism in terms


ourism has become a popular leisure activity globally. In 2008, there were over 922 million international tourist arrivals, with a growth of 1.9 per cent as compared to 2007. International tourism receipts grew by 1.8 per cent to $944 billion (Euro 642 billion) in 2008. As a result of the recession, international arrivals suffered a strong slowdown beginning in June 2008. Growth from 2007 to 2008 was only 3.7 per cent during the first eight months of 2008. The Asian and Pacific markets were affected and Europe stagnated during the summer months, while the Americas performed better, reducing their expansion rate but keeping a 6 per cent growth from January to August 2008. Only the Middle East continued its rapid growth during the same period, reaching a 17 per cent growth as compared to the 40 FACTS FOR YOU

same period in 2007. This slowdown in international tourism demand was also reflected in the air transport industry, with a negative growth in

JUne 2010

Market Survey
of particular activities selected by choice and undertaken outside the home. The United Nations classified three forms of tourism in 1994, in its recommendations on tourism statistics: 1. Domestic tourism, which involves residents of a given country traveling only within that country 2. Inbound tourism, involving non-residents traveling in the given country 3. Outbound tourism, involving residents traveling in another country mark by 2020. And that’s why the specialists of this industry think that “it is a new economic phenomenon, a new business, a new industry of vast dimension and magnitude.” The biggest advantage of this industry is that it can generate maximum employment opportunity. And it’s simply because of the number of subsidiary industries. Tourism helps in regional and economic development. The government of India understood the importance of tourism as an industry in 1980s. Recent study shows that the globalisation and open economy helped tourism to emerge as one of the biggest forex earners for India. It brings the opportunity of infrastructure development. The overall development of any country depends especially on the improvement of road, vehicles, communication, water supply, airports and railway stations. Economic progress and industry development depend completely on the overall development of country. And tourism plays a major role in this overall...
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