Tourism

Tourism and Economic Development

Tourism is a potent engine for economic growth due to its forward and backward linkages in the economy. A study in India, Brazil and Indonesia found that tourism-related linkages (both forward and backward) were particularly strong compared to linkages from other sectors. Such strong linkages create a multiplier effect that generates broad-based economic benefits including generation of employment and poverty reduction. The International Labour Organisation (ILO) estimates that one job in the core tourism industry creates about 1.5 additional or indirect jobs in tourism-related economic activities.

Tourism has also been recognised for its contribution to sustainable development. Among the 17 SDGs and 169 associated targets, tourism is explicitly featured in Goals 8, 12 and 14 for its capacity to foster economic growth and decent work for all, promote sustainable consumption and production, and advance conservation and sustainable development of aquatic resources. The “Report on Comparative Economic Impact of Travel and Tourism” by the World Travel and Tourism Council in 2012 lists the impact of travel and tourism on the following sectors of the economy:

• Travel and Tourism ranks high among sectors in terms of its contribution to GDP, employment, and exports;
• Travel and Tourism growth trends and prospects exceed that of other key sectors;
• Travel and Tourism generates substantial indirect benefits through its linkages to other sectors;
• Travel and Tourism is highly dispersed within national economies and its benefits are widely distributed;
• Travel and Tourism drives infrastructure investment that benefits other industries;
• Investments in well-designed destination and marketing consistently produce strong economic returns.

The economic development potential of the tourism sector is also associated with international tourism because of its capacity to generate foreign exchange and provide opportunities for the transfer of capital and knowledge. International tourism is a key contributor to the balance of payments and to macroeconomic stability in developing countries.

Tourism and State Economy

Tourism is the hallmark of Kerala’s economic development and a principal contributor to the State’s economy. The sector has been pivotal in spearheading economic growth in the State and contributed to generation of large scale employment. The sector earns foreign exchange to the State and promotes traditional industries.

Famously called the “God’s Own Country”, Kerala has been successful in creating a place of its own in this sector. This is evident from the achievements made by the industry both at the national and international levels. A blend of experiences of various tourism products in the State has made the State one of the most acclaimed destinations in the world. Recently, a tiny island namely “Kakkathuruthu” has been listed in the National Geographic’ s ‘Around the World in 24 Hours,’ a photographic tour of travel-worthy spots in the world. Kerala has also achieved a series of achievements from much reputed national and international organizations associated with the tourism industry.

The Growth of Tourism

The growth of tourism is generally assessed using trends in tourist arrivals and foreign exchange earnings.

Concepts

The World Tourism Organisations (WTO) defines visitors as “any person travelling to a place other than that of his/her usual environment for less than 12 months and whose main purpose of the trip is other than the exercise of an activity remunerated from within the place visited”. Visitors are further sub-divided into two categories: tourists, who must stay one or more night in the place visited, and same-day visitors, comprising visitors who visit a place for less than one night. The WTO recommends following categories as characterising the main purpose of visit for tourists:

1. leisure, recreation and holidays
2. visiting friends and relatives
3. business and professional (including for study)
4. health treatment
5. religion, pilgrimage, and,
6. other (e.g., airline or ship crews, transit travellers, etc).

The definitions followed by the Government of India conform to these global definitions. The major exception is the treatment of those visiting friends and relatives whose trips and activities are not considered as part of tourism.

Definitions followed in India

International Visitor

An international visitor is any person visiting the country on a foreign passport with main purpose of visit other than the exercise of an activity remunerated from within the country or for establishment of residence in the country. International visitors may be tourists or excursionist.

Foreign Tourist

A foreign tourist is a person visiting India on a foreign passport, staying at least 24 hours in the country, and the purpose of whose visit can be classified as one of the following:

1. Leisure (recreation, holiday, health, study, religion and sport);
2. Business, family, mission, meeting.

The following persons are not regarded as foreign tourists.

1. Persons arriving with or without a contract to take up an occupation or to engage in activities remunerated within the country;
2. Persons coming to establish residence in the country;
3. “Same-day visitors” (including travellers on cruise ships).

Excursionist

An excursionist is a foreign visitor who stays less than 24 hours.

Cruise Passenger

Cruise passengers are persons arriving on cruise ships who do stay a night in an accommodation establishment in the country.

Domestic Tourist

A domestic tourist is a person who travels within the country to a place other than his usual place of residence and stays at hotels or other accommodation establishments run on commercial basis or in dharamshalas/sarais/musafirkhanas/agra-shalas/choultries etc for a duration of not less than 24 hours or one night and for not more than 12 months at a time for any of the following purposes:

1. Business and Trading
2. Leisure and Holiday
3. Religious and Pilgrimage
4. Social purposes

The following are not treated as domestic tourists:

1. Persons travelling with or without a contract to take up an occupation or engage in activities remunerated from within the State/Centre
2. Foreigners residing in India

World Scenario

International tourist arrivals across the globe grew by 4.4 per cent in 2015 to reach a total of 1,184 million in 2015; this was the sixth consecutive year of above-average growth with international arrivals increasing by 4 per cent or more every year since the post-crisis year of 2010. Some 50 million more tourists (overnight visitors) travelled to international destinations around the world in 2015 than in 2014. Demand remained strong overall, though with mixed results across individual destinations due to strong exchange rate fluctuations, increased safety and security concerns, and the drop in oil prices and other commodities, which increased disposable income in importing countries. Growth in advanced economy destinations (+5 per cent) exceeded that of emerging economies (+4 per cent), boosted by the solid results of Europe (+5 per cent).