An empirical study on orissa tourism opportunities and challenges

THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT
NEW DELHI

THESIS ON
“AN EMPIRICAL STUDY ON ORISSA TOURISM
OPPORTUNITIES AND CHALLENGES”

SUBMITTED TO:

PROF. SUMANTA SHARMA
DEAN (PROJECTS)

UNDER THE GUIDANCE OF:

PROF. DIPTI SHARMA MR. HARIHAR MISHRA
(INTERNAL) (EXTERNAL)

SUBMITTED BY:

SUBHASIS MOHANTY
ALUMNI ID NUMBER: DS79-M-962

The Indian Institute of Planning & Management, New Delhi

BATCH: PGP/SS/2007-09

BATCH: PGP/SS/2007-09 ii ALUMNI ID NO.: DS79-M-962


ABSTRACT

Orissa, a maritime state, on the east coast of India, is bounded by West Bengal and
Jharkhand on the North, Andhra Pradesh on the South, the Bay of Bengal on the East and
Chhattisgarh on the West. Its location is between 17°49`N to 22°34`N latitudes and
81°27’E to 87°29’E longitudes. Large numbers of small and big rivers dissect the state
before draining into the Bay of Bengal, which washes its shores on the southern side. As
per the latest census figures the State ranks eleventh in terms of total population and ninth
in terms of total area. Perpetually washed by the blue waters of the Bay of Bengal it has a
total coastal length of 482 Km. The state is endowed with a vast reserve of mineral as
well as other natural resources. The state has also won accolades both in domestic as well
as international markets for its exquisite art and crafts. Works of Appliqué, Metal Crafts,
Silver Filigree, Patta Chitra from the State has won special appreciations from places in
and around the world. Owing to its rich and varied topography, vibrant culture and
captivating festivities, the State of Orissa offers immense tourism delights to the visitors
in the State. Visitors, starting from neighboring states to the far flung countries throng the
state at different times especially during the festivities.

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COMPLETION LETTER FROM EXTERNAL GUIDE

SIGNATORY LETTER

This is to certify that the thesis titled “An Empirical Study on Orissa Tourism
Opportunities and Challenges” prepared by Mr. Subhasis Mohanty for the award of
degree in Master of Business Administration (MBA-PGP/SS/2007-09 batch) from
Indian Institute of Planning & Management under my guidance. It is an original piece
of work based on primary as well as secondary data.

This work is satisfactory and complete in every respect. I wish him all the success in his
future endeavor.

Dr. Harihar Mishra
Vice-Principal, Samanta Chandra Sekhar Autonomous College, Puri, Orissa

BATCH: PGP/SS/2007-09 iv ALUMNI ID NO.: DS79-M-962


THESIS TOPIC APPROVAL LETTER SENT OVER MAIL

From: Thesis <thesis@iipm.edu>
Date: Wed, Nov 18, 2009 at 3:33 AM
Subject: Thesis Topic Approval (M) SS/ 2007-09
To: subhasismohanty4u@gmail.com

Dear Subhasis Mohanty,
This is to inform that the thesis topic “An Empirical Study on Orissa Tourism :
Oppoutunities and Chanllenges”, as proposed by you, has been approved .This email is
an official confirmation that you would be doing your thesis work under the guidance
of Dr. Harihar Mishra. Make it a comprehensive thesis; the objective of a thesis should be
value addition to the existing knowledge base.
Please ensure that the objectives as stated by you in your synopsis are met using the
appropriate research design.
You must always use the thesis title as approved and registered with us.
Your Alumni ID Number is DS79-M -962
You are required to correspond with us by sending the thesis final draft to Prof. Dipti
Sharma atdipti.sharma@iipm.edu Ph-0124-3917413.

Regards,

Sumanta Sharma
Dean (Projects)
The Indian Institute of Planning and Management
Sumanta.sharma@iipm.edu
Phone: 0124 – 3917401,413,414,415

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APPROVED THESIS SYNOPSIS

PREPARED BY:
Subhasis Mohanty
SECTION: HR-6
STUDENT ID: D0709SS11005
SPECIALIZATION: MARKETING/ HUMAN RESOURCES
BATCH: PGP SS 2007-09
CONTACT NO: 09818056166 (Personal), 09861108342 (HOME)
E-MAIL: subhasismohanty4u@gmail.com

DESIRED AREA OF THESIS: Marketing

TITLE OF THE THESIS:
An Empirical Study on Orissa Tourism Opportunities and Challenges

INTRODUCTION TO THE AREA OF RESEARCH:
Orissa has been the topmost tourist destinations of India for long years, but for some
years its heritage and tourism destinations have been vanishing form peoples’ mind. The
primary Motivation behind my research work on the tourism Development of Orissa was
due to after knowing some important facts regarding Orissa and its development. Orissa
has been developing tremendously and is engaged in industrial facilitation and
investment promotion in all key areas of economic growth.

Out of the total 256 million domestic tourists coming into India, just 5.36 million end up
in coming to Orissa. Whereas annual Growth rate of foreign tourists coming into India is
only growing by only 11.1%.These figures cut a very sorry figure for the tourism
industry. Some steps should be taken for the development of the Orissa Tourism. It is
also understood that the government of Orissa has not been very successful in attracting

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neither foreign tourists nor domestic tourists as compared to other states of India on a
whole.

RESEARCH OBJECTIVE:
Main objective of my Thesis was to gather information about the tourist places and the
hindrances. Other objective includes to how to solve the existing problems that exist and
how to increase its reputation.
• The purpose of my study will be to study tourism industry of India as well of
Orissa in detail.
• Access the existing tourism scenario in Orissa considering the Natural Resources,
Heritage and other cultural assets, Qualitative/demographic factors like
Population, employment, occupation, income levels and services and
infrastructure already available.
• To find out the reasons behind poor performance of the industry in the state and to
come up with various measures that can be used in improving it and finally
studying and analyzing the applicability of 6S model in the state. As per World
travel and tourism Council (WTTC) statistics, tourism in India is poised to grow
at a rate of 14.9 %per annum till 2012.States with rich tourism potential ,such as
Orissa have as important role to play in this development, as per as survey
conducted as market research in Bhubaneswar.
The Objective of my survey will be to find the following details.
• Indentifying traveling habits of people in Orissa.
• Finding out reasons for their traveling.
• Factors that affect them in deciding the location of the Tourist spots.
• Comparison of services that they get within Orissa and in other states
• Their satisfaction level with the facilities available in Orissa and the efforts of
Government in promoting various places.
• Effects of availability of liquor on tourism and on society as a factor.

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SCOPE OF THESIS WORK:
Scope of my research work would be all the districts of Orissa and its tourist destinations.
Where, how many tourist spots are there and their existing tourist inflows and outflows.
What would be the steps to increase that figure. And at the same time how to make them
tourist friendly by removing the existing problems and taking it into the well-known
tourist destinations of Orissa.

RESEARCH METHODOLOGY:
Primary research:
Collection of samples through convenience sampling technique by the use of
questionnaires which include both open end and close end, which have to be answered by
sample chosen. Sample frame will be from the potential Tourists
• Exploratory research and Sampling Design
• Descriptive Research

Secondary research:
For getting the deep insights of the Industry reference would be taken from:
• Books related to the Tourism Industry
• Websites of the State Government
• Internet
• Magazines, Literatures
• Annual reports and journals

JUSTIFICATION FOR CHOOSING A PARTICULAR RESEARCH PROPOSAL:
To collect an in depth knowledge to the tiniest detail of the Tourism industry, to gain a
detailed understanding of the whole industry and its working process as if how different
steps were followed tactically & strategically for the Development of Tourism Industry of

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Orissa. Is the system is properly positioned in this highly competitive world. What all
can be done for its betterment. Apart from this thesis will be definitely help me to be
familiar with the each aspect of the Tourism Growth of Orissa and the unsolved questions
it can answer. Feedback and suggestions will also be given from my understandings of
this thesis project for the same.

THSIS EXTERNAL GUIDE:
Dr Harihar Mishra
Vice-Principal,
Samanta Chandra Sekhar Autonomous College, Puri, Orissa
Mobile-09861340012
Direct (Office)-0752222055
Direct (Residence)-06752251352
Email ID-hariharmishra52@gmail.com

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ACKNOWLEDGEMENT

It is well-established fact that behind every achievement lays an unfathomable sea of
gratitude to those who have extended their support and without whom the project would
never have come into existence.

I express my gratitude to Indian Institute of Planning & Management, New Delhi for
providing me an opportunity to work on this thesis as a part of the curriculum.

Also, I express my gratitude to Prof. Sumanta Sharma and Prof. Dipti Sharma my
internal guide from IIPM on the completion of my project and I am very thankful to
Dr Harihar Mishra, Vice-Principal, Samanta Chandra Sekhar Autonomous College,
Puri, Orissa my external mentor for his excellent guidance and kind cooperation
throughout the thesis work.

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CONTENT

ABSTRACT.................................................................................................ii

COMPLETION LETTER FROM EXTERNAL GUIDE...........................iii

THESIS TOPIC APPROVAL LETTER SENT OVER MAIL..................iv

APPROVED THESIS SYNOPSIS.............................................................v

ACKNOWLEDGMENT.............................................................................ix

1. INTRODUCTION ................................................................................................1

2. RESEARCH OBJECTIVE & METHODOLOGY..............................................15

3. LITERATURE REVIEW....................................................................................17

4. PRIMARY FINDING AND ANALYSIS...........................................................53

5. RECOMMENDATION.......................................................................................62

6. CONCLUSION & IMPLICATIONS..................................................................64

7. BIBLIOGRAPHY...............................................................................................66

8. COPY OF THE QUESTIONNAIRE..................................................................67

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The Indian Institute of Planning & Management, New Delhi 1

INTRODUCTION

Tourism is the basic and the most desirable human activity describing the praise and
encouragement of all people and government. Hotel industry is an essential part of
tourism. The expansion of tourism is well inevitable bringing out development of the
hotel industry. Hotel industry is so closely linked with the tourism industry that it is
responsible for about 50% of the foreign exchange earning form tourism trade and
enterprises. The rising volume of tourism influx brought into light, the shortage of hotels
in important tourist’s centers. Keeping are in view the changing standards in the
international hotel keeping. The Indian industry to make a number of improvements is in
India. It’s not enough to have adequate hotel accommodations, it is equally necessary to
have at various levels, low priced, moderately priced, high priced, and a few luxury
hotels.

Hotels may be categorized depending upon factors such as:

• Locations

• Categorization according to plan

• Categorization according to number of rooms.

• Categorization by type of clientele.

• Categorization by the length of stay of guests.

• Categorization by the facilities that the hotel offers.

The devaluation of the Asian currencies, the Kargil issue and the parliamentary elections
had affected growth in the tourism industry. The situation is gradually moving back to

BATCH: PGP/SS/2007-09 ALUMNI ID NO.: DS79-M-962


normal with the tourist arrival figure marginally increasing from 2.3mn in 1997 to 2.5mn
in FYO8. The industry is growing at a rate of 9%. With the political and economic
stability being more clearly visible, both tourists as well as business arrivals are likely to
gather momentum in the remaining part of the year. The Indian hotel business focuses
largely on foreign tourists with only 30% of the business coming from the domestic
business and the leisure travels. The tourist arrivals in India are seasonal in nature, with
the best season being from September to December followed by a steep fall till May. The
period June to September gains momentum once the monsoons are over. The slack
season is generally used for renovation work and the period is characterized by discounts
to attract clients. High capital expenditure acts as an entry barrier in the industry with the
availability of prime land at economically viable rates being a major constraint. The
gestation period is long and break even normally takes five to eight years to happen. Due
to this the established players like Indian Hotels, E.I.H, etc. have an advantage over
foreign majors as they already have well establishments at prime locations. India was late
to wake up to the potential of tourism as an industry that is not just an earner of previous
foreign exchange but also one that could generate a lot of employment through horizontal
and vertical linkages. The importance and significance of tourism could be understood
from the observation of UNESCO, which says, "tourism is a traditional instrument, which
enables culture to the rehabilitated and made know to the rest of the world". It is said it's
a smokeless industry and has become second to the petroleum industry in world trade.
This great importance was formally acknowledged when the XXIU.N General assembly
designated 1967 as international tourist year with a unanimous resolution recognizing
that "tourism is a basic and most desirable activity deserving the praise and
encouragement of all peoples of government". When traveling away from home, tourist
comes in contact with the places they visit with their inhabitants and social exchange
takes place. Their presence and social background affect the social structure and mode of
life at the destination. Tourists are in turn affected by the experience and often carry back
home with them, new habits and new outlook on life. Tourist has great educational
significance. Contact between people of different races and nationalities widen ones



outlook. Tourism, whether domestic or international has common economies significance
in the sense that money earned in places visited large sums of transferred to the host
economies where this money provided a source of income, a means of livelihood and
amenities for the resident population. Purchasing power is generated in the receiving
areas through the expenditure of visitors. Money received is spent and resent and this
multiplier process the host country is a beneficiary. International tourism is of great
importance in international trade in the sense that it enters into the balance of payments
of accounts of individual countries generating tourist traffic and export for countries
receiving tourist traffic. For many countries is a major item in world trade. These
countries exhibit faster growth in tourism than in trade of goods.

Domestic and International Tourism:

Usually, a distention is drawn between domestic or internal and foreign of international
tourism. In domestic tourism people travel outside their normal domicile to other areas
within the country. Barriers like language, currency and documentation are not in the
domestic tourism. But in India, since difference estates have different languages; ones
own language may not serve a medium of communication. Domestic tourism has no
balance of payment implications. When people travel to a country other that which they
normally live in is known as international tourism, the distinction between domestic and
international tourism is now diminishing. The reasons being:

• Language barriers are reduced by improving language skills

• Currency and customs unions are developing in many European countries.

• With globalization the free movement of people is growing.

Considering the greater multiplier effect in domestic tourism, domestic tourism would
have received greater emphasis in India. Reliable data on the growth of domestic tourists
traffic are not available as not extensive survey has been conducted on a national level by



any agency, government or otherwise not given the numerous festivals celebrated
throughout out the year, the innumerable tourist's centers in the country, the geographical
expands and the resource constraints, estimates of documents tourists' traffic through an
executive survey is considered impossible.

Domestic tourism if considered separate from the travel for religious and commercial
purpose. It is a post-independence phenomenon. Industrial growth, improvement in the
standard of living, rise in disposable income and most importantly the improvement of
tourist infrastructure search as hotels, air, train and road transport has contributed to the
impressive growth in tourist traffic. The definition of a domestic tourist is a person who
travels within the country to a place of residence and stays at hotels or other
accommodations establishments run on commercial basis or in dharmashalas, sarais,
chaultries etc. for duration of not less than 24 hours. The factors that govern the
magnitude of domestic tourist traffic are the religious and cultural importance of a place.
The extent of manufacturing, business and trading activity, the climatic conditions, the
infrastructure facilities available and the geographical location etc. the current rough
estimate of domestic tourism in India is ten million a year.

Tourism Planning in India:

The outlay for tourism development was Rs.8 crore in the third plan Rs.186.46 crores in
the sixth plan and Rs.326.16 crores in the seventh plan. It was during the sixth plan that a
tourism policy was formulated and presented before the parliament. The sixth plan is an
objective envisages optimum use of infrastructure, regionalizing tourist traffic and
increase in accommodation and so on. However, the plan turned out to be a very mere
blue print for action for tourist development. The seventh plan set a target of 1.5-million
tourist arrival by 2005 and 3 million by 2010 AD. It also recommended according
industry status to tourism in order to encourage private sector investment in tourism. It
was also recommended that public sector would focus on basic infrastructure
development, and the private sector would be in encouraged to develop tourism. For the



first time domestic tourism was sought to be encouraged for promoting social and
cultural cohesion and employment generation. The national committee on tourism
presented a comprehensive report in 2007, which provided the basis of a long-term
perspective plan for tourism in the country.

The committee set a growth rate of 7% per annual for international tourists.

Arrivals by 2010 AD. Recommendations also included the following:

• Set a tourism finance cooperation to extend financial assistance for tourism
project.

• Developments of select tourist destination and circuit’s diversification of tourism
arrival of cultural destination to the leisure and holiday tourist.

• Markets, exploration and development of new tourism generating center.

• Increase the hotel accommodation by cent percent by stimulation investment
through appropriate package of incentives.

The committee’s major recommendation expects that of setting up a national tourism
board wherein accepted. In April 2007, the tourism finance cooperation of India was set
up. A working group of the state tourism secretaries in July 2006 identify incentives for
the industry. About 14 states and 3 union territories have declared tourism as an industry
however, despite the efforts during the seventh plan for diversification of tourists for
cultural destinations to the leisure and holiday destination, India still remains as a cultural
destination. Budget outlays where diverted towards facilitating trekking development of
beach resorts, building shopping plazas, wildlife tourism, facilities for conference is
skiing etc. It is reported that the profile of the average overseas and domestic traveler is
changing. In the current plan period as well one of the principal thrust areas would be
modification of the Indian tourism product by adding the concept of India. Trekking,



winter and water sports wild life and health tourism will remain as the major thrust areas
in the forth-coming area.

A Historical Perspective:

Post-Independence, while critical issues like agriculture, infrastructure and power supply
hogged the limelight, travel and tourism received step daughterly treatment, as it was
deemed a ‘luxury’ – affordable by only a few.

Not much has changed over the last four decades, and it seemed every time the industry
gained some form of momentum despite the closed and protected economy, there was
something lurking in the shadows to clip its wings. The introduction of FERA put a
serious crimp in foreign investment in the country and the Emergency was yet another
deterrent to the tourism movement. A look at the Five Year Plans shows that in the Third
Plan (1961-1966) tourism got approx 4.001 crores, which 0.11% of the total Plan outlay
was. At this time, policy makers, industry representatives and opinion makers equated
tourism with foreign visitors. To their way of thinking, it was the foreign visitor who
occupied hotel accommodation, filled airline seats, frequented bars and restaurants and
used recreation facilities. Plus, given the foreign exchange (forex) shortage, the foreign
tourist was looked upon as Daddy Big-Bucks – with an almost endless supply of crisp
foreign currency. And while key aspects of Indian tourism came to be tailored to the
foreign visitor, the price mechanism too, came to be tied to overseas costs. Hotel rates,
food and beverages in hotels, handicrafts, etc, were priced at a level much higher than the
economic standards prevalent in the country at the time. No way could our rupee-toting
lads compete. Thus, for our fellow countrymen, travel was restricted to places of
pilgrimage or going to one’s native town to visit the family once a year. However, other
South East Asian countries were on the ball soon enough when they realised the potential
of tourism. Hong Kong, Singapore and Thailand dug in the infrastructure, developed
detailed tourism plans and marketed them in glorious technicolour across the world.



Ironically, today, Indian outbound tourism provides a sizeable chunk of tourist inflow
into these countries.

Here and Now:

Post-September 11, the tourism industry in India has shown resilience with Indian
travelers opting to look inwards to domestic tourism or to explore other destinations such
as Australia and New Zealand. The Kargil conflict, the current Iraq war and the new flu
on the loose in South East Asia, have also dealt serious blows to the global tourism
industry. Despite this litany of international crises, today, it is an accepted fact that
tourism is the fastest growing industry in the world; a creator of wealth and business
opportunities, an income multiplier, a catalyst for employment and preserver of the
environment. An investment of Rs 10 lakhs in tourism, creates 89 jobs, as against 45 in
agriculture, and 13 in manufacturing for the same investment. The current budget has
finally granted the tourism industry “infrastructure” status and an increase in plan outlay
to Rs 225 crore. The international airports in the four metros are to be upgraded to world-
class standards and six comprehensive tourism circuits will be developed to help promote
tourism. The lack of a centralized government apex body to give it the tourism industry
focus and direction is still a cause for serious concern. At present, the central ministry of
tourism’s functions is limited to marketing India overseas and providing meager financial
support to state governments for the creation of tourism facilities. Most of the important
issues relating to tourism are deciding elsewhere. The Ministry of Civil Aviation controls
aviation policy as well as the administration of airports. The Ministry of Home
Affairs/External Affairs decides the visa regime, and the Ministry of Finance supervises
the fiscal policy for investment in the tourism sector and of course the all important tax
structure. It is left to the private sector to run between the ministries to bring about any
radical reforms. The classic Indian bureaucratic runaround – the death-knell to an
industry on the move!



Tourists, Tourism and Tourism Industry:

While ‘Tourists’ are people from surrounding areas or from other parts of the country or
overseas, who travel around our State for various purposes. They may stay overnight or
for longer periods, usually taken as less than a year; Tourism is “the temporary
movement of people (visitors) from one area to another for activities related to - leisure,
pleasure, social, recreational, knowledge-seeking, medical and business etc”. Tourism
Industry is primarily service-oriented, people-based industry, in a largely seasonal
business providing a wide range of services to ‘tourists’, often on 24X7 basis. It is unique
because - 1) it is not a single, definable industry, instead it is made up of businesses and
organizations belonging to various other industries and sectors and, 2) the interplay of all
of these (businesses and organizations), when properly aligned, gives rise to Tourism
Industry’s ultimate product - ‘the travel experience’.

Structure of Tourism Industry:

A commonly held misconception is that tourism industry is made up of little more than
hotels and motels, but in reality, it is much larger than that. However, a large part of
tourism industry is a combination of Hospitality (a combination of businesses related to
accommodation and dining) and Travel Industry (businesses providing transportation
services (to tourists) through different modes). Other than these, there are numerous other
businesses, which offer their services and products to the tourists and form a ‘part’ of the
tourism industry. The chart given below indicates the vast and complex structure of
Tourism Industry.



Elements of Tourism Industry



(Source - www.joburg.org.za)

Most players in tourism industry are SMEs which are neither a uniform group, nor able to
deliver consistently high service quality and most importantly who don’t see themselves
as a part of tourism industry but play a crucial role in creating the overall tourist
satisfaction.

Economic Value Creation through Tourism Industry:

Tourism Industry has always been a strong economic value creator – be it in terms of
earning for or providing jobs or by means of boosting of related businesses. It creates
‘economic value’ through ‘tourism sales’ which is combined sales of all the above
mentioned components of Tourism Industry. ‘Tourism sales’ can be further classified in
‘direct’ and ‘indirect’ economic value as explained through the following chart -



(Source - www.joburg.org.za)

• Global Tourism Industry - Globally, this is one of the fastest growing industries,
thanks to higher disposable incomes, increased leisure time and falling costs and time
of travel. Appreciating its potential as an economic value creator, nations are
furiously competing for a larger share in this industry and are encouraging and
promoting tourism like never before resulting in restructuring the Tourism Industry
with innovative tourism products and marketing strategies in the offing, both for the
players and the tourists.

• Competitiveness and Tourism Industry – being competitive has emerged as a new
challenge for tourism industries across the globe because of furious competition
amongst nations for a larger share in the ‘tourism pie’. However, for ‘Tourism
Industry’, competitiveness is a complex concept encompassing various aspects that



are difficult to measure and numerous challenges, including a complex structure, also
limits the designing and implementation of competitiveness enhancing strategies for
this industry.

• The Indian Tourism Industry – Tourism in India is a booming industry, with India
appearing in various lists of world’s ‘hot tourist destinations’. Indian Tourism is
touching new heights based on the popular ‘judgment indicators’ used for the tourism
industry – 1) tourist inflow and 2) revenues earned.

• Tourist Inflow - If considered in isolation, Indian Tourism Industry is attracting
more tourists than ever before and the number is constantly increasing, but
comparison between - ‘foreign tourist inflow in India’ and other popular international
destinations, presents a gloomy picture. For example - India, a large country, attracted
3.9 million tourists in 2008 and New York, a city, attracted 6.8 million foreign
tourists in the same period. Comparing India with its small neighbors like – Thailand,
Singapore, Malaysia etc also fetch similar results. However, huge population base is
making up for this through rapidly growing domestic tourism, both in numbers and in
strength and recently for the first time in the history of Indian Tourism, outbound
tourists from India exceeded the number of inbound tourists.

• Revenues earned - The second popularly used indicator for judging tourism industry
is the ‘economic value’ generated by it and its contribution to the economy and on
that count, Indian Tourism Industry scores high. Accounting for about 2.5% of the
GDP, it also appears in the top five forex earner industries in India. However, World
Travel and Tourism Council (WTTC) estimates suggest that the contribution of
Indian Tourism Industry to the national economy will decline to 1.7% by 2016, but
since that is relative to the rapidly growing GDP of India, it might not be a big cause
of concern. Information and Research studies suggest a bright future for Indian
Tourism Industry in terms of ‘economic activity’, like – according to ‘The Travel and
Tourism Economic Research 2006’, Indian Travel & Tourism Industry is expected to



grow by around 8% between 2007 and 2016 taking the generation of economic value
to US$128 billion. But even after this success of Indian Tourism Industry, it is not yet
among the most competitive tourism industries in the world and in spite of India
emerging as a `must see' destination in recent years Indian Tourism represents only
0.8% of world market-share which is negligible looking at the potential it holds.
Another cause of concern can be India’s position in a research conducted by WTTC
to understand

• The competitiveness of Tourism and Travel Industry of 174 countries, India clocked
in at 89 on infrastructure, and 156 in its relative contribution to national economy.

Present Scenario:

With commonwealth games (2010) insight and also after appreciating it potential as
‘economic value’ creator, Government is taking serious measures to promote tourism and
is providing lucrative incentives to attract more players, but as usual in India, efforts and
initiatives tend to founder on shoals created by political unwillingness to implement, civil
strife, weakness in the infrastructure and contradictory administrative policies.

Structural Changes:

Rapid growth and lucrative incentives are attracting new players (especially foreign
players and Indian corporate) to this industry, and this is resulting in big structural
changes and a transition - from traditionally being a ‘mom and pop industry’ dominated
by individually owned SMEs and local / regional players, to the strong presence of
‘organized sector’ and ‘chains’ - is taking place.

Challenges for Indian Tourism Industry:

On basis of current performance, Indian Tourism Industry can be termed as ‘successful’,
but being ‘successful’ is very different from being ‘competitive’ and there are critical



challenges which are negatively dictating and adversely affecting its competitiveness.
These challenges can be classified into 3 broad categories:



RESEARCH OBJECTIVE AND METHODOLOGY

RESEARCH OBJECTIVE:

Main objective of my Thesis was to gather information about the tourist places and the
hindrances. Other objective includes to how to solve the existing problems that exist and
how to increase its reputation.

• The purpose of my study will be to study tourism industry of India as well of
Orissa in detail.

• Access the existing tourism scenario in Orissa considering the Natural Resources,
Heritage and other cultural assets, Qualitative/demographic factors like
Population, employment, occupation, income levels and services and
infrastructure already available.

• To find out the reasons behind poor performance of the industry in the state and to
come up with various measures that can be used in improving it and finally
studying and analyzing the applicability of 6S model in the state. As per World
travel and tourism Council (WTTC) statistics, tourism in India is poised to grow
at a rate of 14.9 %per annum till 2012.States with rich tourism potential ,such as
Orissa have as important role to play in this development, as per as survey
conducted as market research in Bhubaneswar.

The Objective of my survey will be to find the following details.

• Indentifying traveling habits of people in Orissa.

• Finding out reasons for their traveling.

• Factors that affect them in deciding the location of the Tourist spots.



• Comparison of services that they get within Orissa and in other states

• Their satisfaction level with the facilities available in Orissa and the efforts of
Government in promoting various places.

• Effects of availability of liquor on tourism and on society as a factor.

RESEARCH METHODOLOGY:

Primary research:

Collection of samples through convenience sampling technique by the use of
questionnaires which include both open end and close end, which have to be answered by
sample chosen. Sample frame will be from the potential Tourists

• Exploratory research and Sampling Design

• Descriptive Research

Secondary research:

For getting the deep insights of the Industry reference would be taken from:

• Books related to the Tourism Industry

• Websites of the State Government

• Internet

• Magazines, Literatures

• Annual reports and journals



LITERATURE REVIEW

Tourism in Orissa:

Tourism in Orissa, India has grown considerably in recent years due to the various
attractions of Orissa, ranging from wildlife reserves and beaches to temples and
monuments and the arts and festivals.

Eco-tourism:

One of Orissa's major attractions is its 500 km long coastline and beaches and natural
scenery such as Chilka Lake, Asia's largest brackish water lake. Tharea is an important
bird sanctuary for millions of birds, and is also noted for its population of Irrawaddy
Dolphin (Orcaella brevirostris), the only known population of Irrawaddy dolphins in
India It is one of only two lagoons in the world that are home to this species.

Dolphin tourism provides an important alternative source of income for many local
residents. There are four tourist associations in Satapada employing three hundred and
sixty 9-HP long-tail motor boats taking tourists to a 25 km2 (9.7 sq mi) area of the lake
for dolphin watching. About 500 fishing families are involved in this business. [1] The



Orissa Tourism Department and the Dolphin Motorboat Association, an NGO at Satpada,
report about 40,000 tourists visit Chilka every year for dolphin watching. October-
January and May-June are the peak season for tourists at Chilika, with a maximum 600-
700 per day during December-January. The Dolphin Motorboat Association has 75 8-
passenger motorboats for dolphin watching. Tourists pay Rs. 250 for 60–90 minutes per
trip. According to the Association, most tourists see dolphins. Only 5% return
disappointed. Besides the Association, the Orissa Tourism Department organizes
"dolphin-watch" for tourists. Even during monsoon, about 100 tourists/day visit the
lake. Major beaches in Orissa include Gopalpur, Puri, Chandipur and Chandrabhaga and
the waterfalls of Barehipani and Joranda, Badaghagra, Sanaghagra and Khandadhar are
common attractions. The hot springs at Atri, Deulajhari, Taptapani and Tarabalo also
attract tourists.

The state has rich flora and fauna inhabited the lush green forest and is home to the
Royal Bengal Tiger. Eco-tourism is important in Orissa and notable wildlife sanctuaries
include Bhitar Kanika, Chandaka, Chilika, Simlipal, Tikarpada, Gahirmatha and Nandan
Kanan. Locations which attract tourists because of their natural scenery include
Darjeeng, Dairingbadi, Barunei, Dhamra, Chandbali, Tensa, Narayani and Saptasajya.

Eco-tourism provides a degree of alternate employment to the local community and
generates environmental awareness, among local residents as well as visitors, about the
conservation and sensible use of the lake’s natural resources. Notable locations within the
lake are:

• Ramba Bay at the southern end of the lake with the group of islands including:

• The Becon Island, with an architectural conical pillar (to put a light on the top)
built by Mr. Snodgrass, the then collector of Ganjam of the East India Company,
on a mass of rock in the Rambha Bay near Ghantasila hill. It is surrounded by the
Eastern Ghat.



• The Breakfast Island, pear shaped, known as "Sankuda island", with remnants of
a dilapidated bungalow constructed by the King of Kalikote, has rare plants and is
full of greenery with appealing flora.

• Honeymoon Island, 5 km (3.1 mi) from Rambha Jetty, known as Barkuda Island,
with clear waters has abundant red and green macro algae in the bed is also
known for the limbless lizard, an endemic species found here.

• Somolo and Dumkudi islands, located in the Central and Southern sectors of the
lake, in the backdrop of scenic Khalikote hill range, are inundated remnants of the
Eastern Ghats with rich flora and fauna and also known for sighting of Irrawaddy
Dolphins.

• Birds' island, located in the southern sector of the lake has huge exposed hanging
rocks, are painted white due to folic acid of the droppings of the birds and is
known for rich algal communities and few mangrove species and also migratory
birds in winter.

• Parikud is a group of composite islands in the Garh Krishnaprasad Block for
nature lovers and provides an avian spectacle during winter season

• Kalijai Temple located on an island is considered to be the abode of the
Goddess Kalijai

• Satapada village, at the new mouth of the lake, provides a beautiful view of the
Lake and also views of the Dolphins. Hundreds of boats here provide tours of the
lake for tourists.

• Barunkuda, a small island situated near Magarmukh, mouth of the lake, has a
temple of Lord Varuna.

• Nabagraha is an ancient deity located along the outer channel.



• Chourbar Shiva Temple is located near Alupatna village, along the outer
channel.

• Manikpatna, located on the outer channel has historical evidence of a port which
was used for trade with Far East and also has the Bhabakundeswar temple of Lord
Shiva, an old Mosque whose entrance door is made of the jaws of the whale.

• Sand-Bar and Mouth of the Lake is a striking and un-explored stretch of 30 km
(18.6 mi) of empty beach across the sand bar which separates the Lake from
the Sea.

Orissa has gifted with nature's bounty. A trip through Orissa is always an intoxicating
surprise to the senses and always unforgettable. An enormous canvas coloured by a
divine palette, a 482 km stretch of coastline with shimmering golden beaches, serpentine
rivers, mighty waterfalls, forest-clad blue hills of Eastern Ghats with rich wild life. Orissa
is quite rich in its heritage that houses many remarkable monuments of ancient times. The
Architecture of edifices, like the Konark Temple, Jagannath Temple, Barbati Palace,
Rajrani temple, Khandagiri caves, and the Lalit Giri & Uday Giri are really remarkable.
With the unsurmountable beauty of nature, culture and the glorious heritage, Orissa
undoubtedly deserves to be among the hottest tourism destinations in India.



Tourism Destination in Orissa:

Orissa is a state of India, located on the east coast of India, by the Bay of Bengal. Orissa
was in the past known as Kalinga that was invaded by Maurya Emperor in 261 BC. The
modern state of Orissa was established on April 1, 1936 with majorly Oriya speaking
people. The narrow, level coastal strip including the Mahanadi River delta supports the
bulk population of Orissa. The interior of Orissa is mountainous and sparsely populated.
Orissa is home to some of the aboriginal tribes of India.

Orissa has an important place in Indian history with around 3000 years of historical
events. Orissa has stood as an observer to the Kalinga war that led emperor Ashoka to
embrace non-violence and teachings of Buddha.

Orissa is a beautiful state with several amazing tourist destinations. Thousands of
pilgrims visit Orissa to travel to Puri to visit the Jagannath temple, which is one of the
most sacred places for Hindus. Orissa can also be visited to visit the Konark Sun Temple
that is an amazing historical monument. Further, beach lovers will find numerous
beautiful beaches like beaches of Puri , Konark and Gopalpur-on-sea in Orissa.
Monument lovers also have numerous architecturally marvelous temples in the temple



city Bhubaneswar in Orissa. Orissa also provides places like Chilika Lake, the largest
brackish water lagoon with numerous beautiful islands, for nature lovers. Wild life lovers
can visit Similipal in Orissa to have a wonderful wildlife experience.

About Bhubaneswar:

Bhubaneswar is the capital of Odisha (Orissa), and is also known as ‘City of Temples’.
The modern city of Bhubaneswar was designed by the German architect Otto
Konigsberger in 1946. Bhubaneswar is one of the cleanest and greenest cities of India.
Bhubaneswar city has a 3000 years old history which is boasted by marvelous
architecture of the temples of the city. The large number of temples (around 600) in
Bhubaneswar, depict the entire span of Kalinga architecture. Bhubaneswar is a part of the
Golden Triangle circuit, the other two being Puri and Konark and their various tour
packages that cover the three.

Bhitarkanika:

Bhitarkanika is a place of rich and lush green eco-system lying in the estuarine region of
North-Eastern corner of Kendrapara district of Orissa. Bhitarkanika area houses
672 kms of mangrove forest and wetland that is home to well over 215 species of
birds including winter migrants from Central Asia and Europe. Bhitarkanika is
home to the largest population of giant salt water crocodile in India.

Chilika:



Chilika is a brackish water lagoon, spread over the Puri, Khurda, and Ganjam districts
of Orissa. Chilika lake is separated from the Bay of Bengal by a 60 Km long
narrow strip of marshy islands and sand-flats. Chilika lake is the largest coastal
lagoon in India and the second largest lagoon in the World. Chilika lake's lagoon
is the largest wintering ground for migratory birds in the Indian sub-continent that
hosts over 160 birds in peak migratory season. Birds from as far as the Caspian
Sea, Lake Baikal, Aral Sea and other remote parts of Russia, Kirghiz steppes of
Mongolia, Central and southeast Asia, Ladakh and Himalayas come to Chilika
lake lagoon. Chilika lake's lagoon is also home to 14 types of raptors along with
rare and endangered Irrawaddy Dolphins (135 in numbers). The fabulous beauty
of Chilika which has inspired poets to sing its glory and which can be best enjoyed
from Balugaon, Barkul, Rambha and Satpada must be seen to be believed.

Gopalpur-on-Sea:

Gopalpur-on-Sea is a beach resort in the Ganjam district of Orissa. Gopalpur-on-Sea was
once a busy port that later turned into a calm and serene retreat for beach lovers. The
beautiful blue beach of Gopalpur-on-Sea gained its stature as a tourist attraction in the
seventies.

A tourist can just relax and enjoy the roar of waves and breeze bustling through the palm
trees at Gopalpur-on-Sea. As the beach of Gopalpur-on-Sea faces east ward the sunrise at
this place is also very spectacular. There is also a Light House on the beach (1965),
which offers a spectacular 360 degree view of Gopalpur, the sea and a portion of the
Chilika Lake. Visiting time is 1530 - 1730.



Keonjhar:

Keonjhar, famous as a picnic spot, is a mid size town in Orissa having a very beautiful
and scenic landscape. The major attractions in Keonjhar are the magnificent landscapes
and the beautiful waterfalls around the town.

Konark Temple:

Konark is a famous tourist place in Puri district of Orissa, lying at 65 Km from
Bhubaneswar. Konark is famous for the 13th century Sun temple built in from oxidizing
and weathered ferruginous sandstone by King Narasimhadeva I of the Eastern Ganga
Dynasty. Konark Sun temple is a World Heritage Site that takes the form of a chariot of
Surya, the Sun God, and is heavily decorated with stone carvings.



Koraput:

Koraput, a place surrounded by forests, mountains and waterfalls, is a part of the tribal
belt of Orissa. Most of the area of Koraput was covered under thick forest until some
years ago, forming an abode of many aboriginal tribes. However, due to deforestation and
industrialization these tribes of Koraput are adopting to modernity. A tourist however can
have a glimpse of their traditions and culture during the tribal festival called Parab which
is organized in Koraput in the month of November (2nd-3rd week).

Phulbani:



Phulbani lies in the Kandhamal district of Orissa, amidst rich and colorful flora and
fauna. Phulbani is considered to be the head quarter of Kandhamal tourism as the tourists
can make this as their base for visiting the various locations around Phulbani. Phulbani is
also known as the access point for arranging a tribal tour of Oris

Puri:

Puri, one of the oldest cities in eastern part of India, is a popular beach resort of Orissa
that is positioned in a unique place that provides a visitor view of both sunrise and sunset
from the beach. Puri is also famous for its annual Rath Yatra (Festival of Chariots), when
the deities Jagannath, Balabhadra and Subhadra, are brought out of the temple, and
placed in a chariot procession. This festival occurs on various dates of the Gregorian
calendar, typically in the month of July. Puri has dual identities of a relaxed seaside resort
and of an important pilgrimage centre.



Sambalpur:

Sambalpur lies in the Western Zone of Orissa, filled with lush green forests, colorful wild
life, beautiful waterfalls, and rich tribal life. Sambalpur is famous for its handloom textile
work which has gained international reputation. The unique pattern and design of the
textiles are named under the brand of Sambalpuri.

Similipal:

Similipal covering an area of 2750 sq.km is situated in the Mayurbhanj district of Orissa.
Similipal derives its name from the magnificent Simul which means silk cotton tree.
Similipal has numerous peaks and valleys in the region with various streams flowing
through the region and ultimately draining into Bay of Bengal. The Similipal Tiger
reserve was created in the year 1973 and then the government of Orissa declared the



Similipal sanctuary within an area of 2200 sq.km in 1979. Later the government also
proposed the Similipal National Park in the year 1980 with an area of 845 sq. km.

Sector Specific Challenges:

Being a part of the service sector, Tourism Industry faces the below mentioned
challenges posed by the sector itself –

• High Exit Barrier; Difficulty in trial – One characteristic of services is that it is
hard to escape from the consequences of a poor choice (of service and service
provider). Tourists know this and they also understand that once they are at a
destination, a U-turn is not easy. Hence, they are over cautious while deciding on
the tourism services (choice of destination, transporter and hotels etc). Another
service characteristic that affects tourism industry is ‘reduced trial ability’. Since
the trial ability is also almost nil in (tourism) services, in case of tourism industry,
it is a prerequisite to have a good ‘product’ and a sound reputation in place, only
then sustainable sales can be expected.

• Word-Of-Mouth (WOM) – WOM is crucial in selling of (tourism) services
because usually the choice of destination is affected by WOM publicity. Here, it
is important to realize that tourists tend to believe more on information from
independent sources and less on promotions, thus, a destination may be ‘pushed’
through heavy promotion, but the length of its PLC is finally dictated by the
WOM.

Industry Specific Challenges:

Certain challenges are related to the very nature of this particular industry and exist along
with the industry around the globe, like:

• Highly infectious industry – Tourism Industry is very sensitive to environmental
changes and it gets affected by them and reacts very fast to them, like - According



to Star News (10 April 2007), a Bollwood movie song resulted in increased tourist
inflow to a destination (Khandala) and recently, in a couple of days after India got
out of the cricket world cup, many tourists cancelled their tours to West Indies
resulting in loss of Rs 30 Crore to tourism industry.

• High Social Cost – Tourism takes a toll on the resources (especially natural
resources), and a large part of the revenues brought in by tourism is required for
sustaining the resources, so the profitability of tourism industry is suspicious,
especially in countries where proper ‘sustainability’ mechanisms are not in place.

• Intermediary Conflicts - Components of the tourism industry have different
commercial objectives, strategic interests and operational procedures, so as
channel partners protect and advance their own interests, often at the expense of
their partner’s gains, several intra-channel conflicts emerge inevitably. Major
reasons behind such conflicts are -

• Price and Profit Margin Distribution

• Exceeding Vertical Integration generates Oligopolistic Behavior

• Operational issues - partners failing to fulfill their obligations or
providing the service they promised

• Tourists rates the overall experience – visitors tend to rate their overall
experience at the destination and in the process they credit tourism industry for
the performance of industries and sectors, which are not directly related to
tourism. If ‘anything’ is not according to tourists’ expectations, it might go
against the tourism industry, because the negative WOM will be generated for the
destination.



India Specific Challenges:

Some challenges facing Indian Tourism Industry are uniquely India specific, like –

• Sensitizing the diverse Human Resources – It is an industry where even the
behavior of general public affects the overall experience of tourists, and people
associated with this industry vary significantly in their background, education,
occupation and experience etc (an hotelier is totally different from a taxi driver),
so having a ‘common program’ addressing everyone in this industry is inviting
failure and neither it is easy to have so many different / customized programs.
Finally, it is a big challenge to sensitize such a large number of diverse people
simultaneously. Although efforts (like – “atithi devo bhava” campaign) have been
made to train and groom the HR associated with this industry, but they have not
been as successful in achieving significant and measurable results as they were
expected to, and neither much research has been done to measure and evaluate the
impact of such efforts.

• Collapsing Hotel Infrastructure – India has approximately 150000 hotel rooms,
which are insufficient to meet the existing demand, let alone catering to new
demand. Moreover, concentration of Hotels (approximate 7000 rooms are in
Delhi itself) is causing an acute shortage of rooms in remaining areas which are
no short of tourist destinations and attract a lot of tourists, thus further aggravating
the problem. A comparison of number of hotel rooms is given below –

(Economic Times, Dec 2008)



High Operating Costs:

Indian hotels suffer from high operating costs and this ultimately reflects in their higher
prices. The biggest sufferer is the ‘budget tourists’ and even for those who can pay, when
the facilities are not according to the prices it leads to dissatisfaction and also makes the
destination unattractive for tourists. Following points highlights the prevailing crisis:

• In 2008, Delhi and Mumbai appeared in the top 5 cities with highest tax rates as
percentage of overall lodging bill. (Report by World Travel and Tourism Tax Policy
Center)

• Comparing with China - in 2007, rooms of similar quality for business travelers, cost on
an average, $187 in Delhi, $178 in Mumbai versus $122 in Beijing and $150 in Shanghai.

Adding to all this, an unprecedented rise in real estate prices is working as an “entry
barrier” for hotel industry, negating the government’s effort (incentives) to attract new
players, thereby slowing down the pace of growth of hotel rooms.

• Transportation Chaos – increasing number of airlines (from 2 to 10 in last 4
years) has rapidly increased the number of passengers, resulting in a virtual
collapse of facilities at Indian airports. Moreover, there is no supervising
authority, maintaining and monitoring the quality and standards

• of services delivered by airlines making an unpleasant experience a rule, rather
than an exception. Indian Railways, another popular mode of transportation
suffers from conditions worse than the airlines (in terms of reservations,
punctuality, cleanliness, facilities etc). Since India welcomes tourists mostly from
developed countries these problems convert their trip into a ‘mission’ and few
return with good memories.

• Unfriendly Government Policies – Till recent past, Tourism was perceived as an
elitist activity in India and hence high tax rates and less budgetary provisions



were the fate of its tourism industry. The table below refers to some main
provisions affecting tourism industry in the last few years –

Classification of Tourist:

There are many different types of tourists, which can be classified in a number of ways:

By Product
Mass Tourism Alternative Tourism

Package tour Ecotourism

By nature of the activity:
Active Passive

Adventure tourism Sightseeing
Ecotourism Beach holiday
Golf Cruise

Location preference
Coastal Rural City Mountains Lakes

Costa Brava Garrotxa Barcelona Pyrenees Banyoles

Duration of trip and distance travelled
Day trip Weekend break Annual holiday

Local National International



By purpose

Business or Pleasure

• Pleasure: need for change, see something new
* Culture (ethnic)
* History, heritage
* Nature-based (eco-) tourism
* Farm-based, rural tourism
* Personal development, health
* Visit friends, family
* Social status (to brag!)
* Recreation

By age/socio-economic group

Backpackers Empty DINKS SINKS Early/Active Boomers Yout
Nesters Retirees h

Backpackers: 18-24 years, no children. Attracted to adventurous activity. Consider
themselves travelers not tourists. Generally well-educated. Cost conscious.

DINKS: Double Income No Kids.

SINKS: Single Income No Kids.

Both Dinks and Sinks: younger people, between 25 and 35 years of age, no children,
affluent.

Empty Nesters: Parents whose children have flown the family nest. Between 45 and
55 of age, well educated, high disposable income.



Boomers: members of the baby boom generation in the 1950s.
Youths: Between 18 and 25 of age, not well-educated, low disposable income, are used
to traveling, (have learned it during the upbringing) and know how to indulge 'the good
life'.

Characteristics of tourist:

Purpose of Visit

The visitors come for three major reasons:

Business

Visiting friends or relatives

Holiday adventure

The table below gives the statistical distribution of reasons why visitors come to Uganda.

% of tourists interviewed stating this
Purpose of visiting Uganda
purpose

Business 39

Visiting friends or relatives 30

Holiday 15

Other (include religious purposes and sports) 16

Total 100

(Source: Incredible India website)



Business is the number one reason why foreigners visit Uganda, closely followed by
those who come to visit friends or relatives. Both these groups however, are of limited
value to the Equator City. The Business Group would most probably stay in Kampala
rather than away from the capital. Visiting friends or relatives tend not to stay in hotels
but mostly in private accommodation. However, they usually eat out a lot and go-out on
weekends. Chief among the "visiting friends or relatives" are the nostalgic British who,
because of their historic ties with Uganda, have many friends and or relatives in the
country and in neighboring India. Next are guests from countries of origins of the
expatriates working or resident in Uganda and currently USA has the highest number of
expatriates. A special category of "Visiting friends or Relatives" are the neighbours. In
particular the Kenyans, Rwandese and Tanzanians, but more importantly the expatriates,
who work with Non-Government Organizations (NGOs), who come for long weekend
stays. The fourth biggest group is those classified as others. These come for religious and
sports events. The conference visitors who also fall in this category are not mentioned.
This category is of special interest to the developers of Equator City. Religious visitors
and the sports groups are not immediately relevant since they will stay in Kampala or in
well populated commercial centres. The smallest group of visitors come to Uganda for
holiday adventure. The typical visitors come from:

Continental Europe, 53%
(Germany, Scandinavia, Italy, Benelux and France)

North America, 22%
(USA and Canada)

UK, 15%

This group (Others), though small, is important to the growth of tourism in Uganda and
to the Equator Line Centre Ltd's project.



Length of Stay:

On average, visitors spend two weeks in Uganda, although the single largest group
spends just a week or less. The popular visits are between 10 days to two weeks, and
between two to four weeks. There are a significant number of tourists who spend over a
period of four weeks. Most whites stay about the same period (about 18 nights) and this
period rhymes with the duration of the tourist circuits operated now and those
recommended for the future in the Tourism Master Plan.

The single most important expenditure item (which takes over half the money) is for
accommodation and meals/bar. There is also substantial expenditure on restaurants
outside the hotel. Others include obligatory airport tax, donations, and transport.
Surprisingly expenditure on sightseeing/organised tours and purchase of handicrafts are
negligible.

Destinations and Composition of Travel Arrangements

People who visit Uganda:

Visit Uganda alone (58%)

Combine their visit with another country (27%)

Combine their visit with two other countries on top of Uganda (11%)

Pure holiday makers usually come to see two countries; Uganda and another. The
majority of the visitors (79%) come with companions. Those accompanied come with
non-family friends and in groups, the most popular being of four persons followed by a
second group of two persons. 21% come alone. Groups of three are the third. Where
family groups come, the most common are a couple plus children, or just other family
members (not children). The third and fourth family groups are coming as a couple or one



parent and children. Lastly, those coming in family group are mainly from UK, USA,
Canada, and Continental Europe. All the visitors do not use packaged tours but make
their own travel arrangements individually or through an intermediary. Only a very small
fraction of the holiday makers use the packaged tour arrangement.

Factor influencing travel demand:

Land Use effects:

Many land use strategies to change travel behaviour to any extent, concluding that “the
ability of the planning system to influence changes to reduce travel demand is limited”,
which is a vote of no confidence in the planning system, a counsel of despair, deeply
unhelpful, and not borne out by evidence. The report concludes that land use policies “on
their own, have little effect on travel demand” second line, bold text in original), but the
evidence presented does not really support this conclusion, and in any case the distinction
is spurious since land use policies are not being promoted on their own but in concert
with transport and other policy areas.

Local Sourcing:

Local sourcing might increase levels of road transport which could just as easily be
written to express the opposite. The conclusions to this section are again generalized and
unsupported. Local sourcing is said to be most unlikely to have any noticeable effect on
travel demand, because trends in trade militate against it; for many products there is very
little choice to switch to closer alternatives; there is no evidence that it is happening to
any extent; and there appear to be no policy initiatives to promote such changes “in
prospect”. It is difficult to understand where these assertions are coming from, given that
local sourcing is happening; marketing phrases such as “cutting out the middle-man”,
“saving transport costs”, and “local quality assurance” are commonplace; and there is
considerable policy interest in it for reasons from wealth retention by agricultural
producers, supporting local economic revival, animal welfare, and countryside



conservation, as well as the potential to contribute to traffic reduction. There is not
enough evidence of current effects to hand, on which to base an alternative forecast, but a
more useful approach would have been to explore the potential for traffic reduction
through local sourcing, to point to the need for research where necessary, and to offer
suggestions for effective policies to manage travel demand through local sourcing.

Oil Supplies and Fuel Technologies:

Oil supplies will not dry up over the next few decades to the extent that fuel prices or
availability will affect the demand for travel, and that CO2 emission reductions can be
achieved by technological improvements without the need for traffic reduction policies. It
also appears to argue that new technologies are on hand to improve technological
performance still further should it be needed or become competitive in its own right, so
the likelihood of significant reduction in travel demand for any reasons relating to fuel or
emissions is small. This is an area of intense debate at the present time, and the above
conclusions appear somewhat complacent. This seeks positive action to stem CO2
emissions in all areas of activity, and transport is recognized as the fastest growing
source. Traffic reduction policies and initiatives are central to the government’s
committed reduction targets, and if it does not occur, and thereby deliver climate change
objectives, government policy will have failed. In these circumstances, it seems perverse
to base MMS projections on an assumption that there will be minimal traffic reduction
effects on the margins of overall traffic volumes.

Major decisions involved in marketing of Hospitality services:

Service Characteristics of Hospitality & Tourism Marketing:

• The Service Culture

• Characteristics of Service Marketing

• Management Strategies for Service Businesses



• Ritz-Carlton: Taking Care of Those Who Take Care of Customers

• Overview of Service Characteristics: The Servuction Model

The Role of Marketing in Strategic Planning:

• Nature of High-performance Businesses

• Corporate Strategic Planning

• A Strategic Look at Starbucks Coffee

• Business Strategy Planning

• Unique Challenges of the Hotel Industry

The Marketing Environment:

• The Company’s Micro-environment

• The Company’s Macro-environment

• Managing in Uncertain Times

• Popcorn’s Cultural Trends

• Linked Environmental Factors

• Responding to the Marketing Environment

Marketing Information Systems & Marketing Research:

• The Marketing Information System

• A “Questionable“ Questionnaire



• Research Problem Areas

• The Internet: A Great Source of Marketing Information

• Marketing Research in Small Business

• Marketing Research in Smaller Organisations

Consumer Markets & Consumer Buying Behaviour:

• A Model of Consumer Behaviour

• Personal Characteristics Affecting Consumer Behaviour

• Senior Consumers

• The San Diego Padres Baseball Club

• The Buyer Decision Process

• Unique Aspects of Hospitality & Travel Consumers

Organizational Behavior of Group Market:

• The Organisational Buying Process

• Participants in the Organisational Buying Process

• Major Influences on Organisational Buyers

• Organisational Buying Decisions

• Group Business Markets

• Dealing with Meeting Planners



• The Corporate Account & Corporate Travel Manager

Market Segmentation, Targeting, and Positioning:

• Markets

• Market Segmentation

• Jollibee: A Regional Fast Food Chain

• Targeting Families by Targeting Kids

• Market Targeting

• “Elite-Napping” the Business Traveller

• Market Positioning

• Airline Positioning: Southwest Airlines

Designing & Managing Products:

• What is a Product?

• Product Levels

• Augmented Product

• Brand Decisions

• New Product Development

• The National Food Laboratory Helps Restaurants Develop New Products &
Improve Existing Products



• Restaurants & Hotels Develop New Product Ideas

• Product Development Through Acquisition

• Product Life-cycle Strategies

Internal Marketing:

• Internal Marketing

• When Employee Communications Go Against Customer Expectations

• The Internal Marketing Process

• Nonroutine Transactions

Building Customer Loyalty through Quality:

• Defining Customer Value & Satisfaction

• Tracking Customer Satisfaction

• Relationship Marketing

• Retaining Customers

• The Link Between Marketing & Quality

• What is Quality?

• Benefits of Service Quality

• Developing a Service Quality Program

• The Five-gap Model of Service Quality



• Forecasting Market Demand

Pricing Products: Pricing Considerations, Approaches, and Strategy:

• Price

• Factors to Consider When Setting Prices

• Aspen Skiing Company Knows Out-of-State Visitors Are Less Price Sensitive

• General Pricing Approaches

• Pricing Strategies

• Segmented Pricing: The Right Product to the Right Customer at the Right Time
for the Right Price

• Price Fixing

• Other Pricing Considerations

• Price Changes

• The Internet Makes it Easy for Customers to Find Price Information

Distribution Channels:

• Nature & Importance of Distribution Systems

• Nature of Distribution Channels

• Marketing Intermediaries

• Top Ten Ideas for Working with Travel Agents

• Channel Behaviour & the Organization



• The Hilton Model

• Restaurant Franchising

• Selecting Channel Members

• Responsibilities of Channel Members & Suppliers

• Business Location

Promoting Products: Communication & Promotion Policy & Advertising:

• The Communication Process

• Thank You – A Great Personal Communication

• Establishing the Total Marketing Communications Budget

• Managing & Coordinating Integrated Marketing Communications

• Southwest Airlines

• Manage the Integrated Marketing Communication Process

• Advertising

• How Does an Advertising Agency Work?

• Major Decisions in Advertising

• Association Advertising

Promoting Products: Public Relations & Sales Promotion:

• Public Relations



• Taco Bell Provided Example of Creative Publicity

• Major Activities of PR Departments

• Publicity

• Singapore Suntec Centre

• The Public Relations Process

• Major Tools in Marketing PR

• Public Relations Opportunities for the Hospitality Industry

• Crisis Management

• Sales Promotion

• Local Store Marketing

Electronic Marketing: Internet Marketing, Database Marketing, and Direct
Marketing:

• Internet Marketing

• Using the Web to Market Tourism Destinations

• Web Site Development

• Business-to-Business E-commerce

• Developing a Marketing Database System

• Using your Database for Customer Research: Defining the Power of Your Loyal
Customers



• Gazelle Systems Brings Database Marketing to Restaurants

• Manhattan East Suite Hotels Gives Customers What They Want Before They Ask

• Direct Marketing

Professional Sales:

• Management of Professional Sales

• Nature of Hospitality Sales

• Sales Force Objectives

• Sales Force Structure & Size

• Organizing the Sales Department

• Relationship Marketing & Strategic Alliances

• Recruiting & Training a Professional Sales Force

• Managing the Sales Force

Destination Marketing:

• The Globalization of the Tourist Industry

• Importance of Tourism to a Destination’s Economy

• Stop the Brutal Marketing

• Tourism Strategies & Investments



• Gambling on Central City

• Segmenting & Monitoring the Tourist Market

• Maryland Office of Tourism Development Case Study

• Communicating with the Tourist Market

• Organizing & Managing Tourism Marketing

• National Tourism Organizations: How They Work

The Tourism Products and the Supply Factor:

1. Attraction - Natural (Land Forms, Flaui Fauni)

- Man Made (Historic/Modern)

- Culture Factors (Music, Art)

2. Transport

3. Accommodation - Hotels, Guest House, Holida, Camps, Put, Residences, Camping
Sites.

4. Physical and Communication Infrastructure

- Roads, Airports, Electricity, Sewage Disposal Etc.,

The Hospitality Product:

Required to produce satisfactions-

• Physiological - Satiated Appetite, Quench.



• Satisfactions - Thirst, Comfortable bed and Room, Pleasant
Environment.

• Economic Satisfactions - Good value for Money, Speedy Service,
Excellent Location and credit Facilities.

• Social Satisfaction - Enjoyable Company, Attentive Staff and Advice
on Selection of food/Wine.

• Psychological - Fulfillment of Needs

• Satisfactions - Relating to self-esteem Status and security.

Five Basic Components of Hotel’s:

• Location - Facilities

• Services - Image

• Price - Cost

Apart from time, money, mobility to travel, Motivations to Travel may spring form a
variety of needs

Tourist Segment and Their main marketing Characteristics:

Marketing Holiday Tourists Business Tourists Common Interests
Characteristics Tourist

Typical Destination Resort Oriented Big City visit friends,
Relative Education,
Pilgrimage

Seasonality High-Marketing Mix can No Seasonality Partial Seasonality



Assist in Spreading
Demand Levels

Length of Stay Could be Influences by Normally short. Prefer Long Stay
promotion/comm. Not prolonged by cost effectiveness
Advertising. helps.

Mode of TPT. Varied Mode (s) of TPT. Air-plane the Cheapest mode
time spent on way is par of Invariably of transport
holiday

Hotel Yes, Normally yes Normally Only to a very
Accommodation limited degree
In-expensive hotels Expensive hotels

Requires Very much so yes to a Ltd. No.
entertainment Degree

Price Sensitivity Very Sensitive (High price Low price Sensitive
elasticity of demand) Elasticity of
demand

Role of Very Important Rather Limited Quite Important
Advtg./Mktg. Particularly sales
Comm. promotions

Impotence of tour Of great interest and Of no appeal at all. Limited Appeal
package (s) demand

Hospitality Product Augmentation:

Accommodation Food and Beverage

Reservation system Convenience Speed of food Service

Reservation System Simplicity Ordering Convenience

Acknowledgement of reservations Advance Orders



Lift Attendants Reliability of F & B Quality

Room Service Cooking to Order

STD. of House Keeping Acceptance of Credit Cards

Courtesy Home deliveries

Procedures for handling overbooking Function catering Facilities

Information Service Fiber/calorie information

Credit Provision Entertainment

Discounts

Credit Cards system

The Travel Decision:

Tourists want to travel for several reasons in order to meet their needs, expectations, and
desires. While some of these reasons are related to destination attributions such as
cultural and natural attractions of a destination which is called pull factors, other reasons
are related to motivational factors of tourists such as escape from daily routine and
experience new culture that is called push factors. Cultural values of a specific
community to be experienced can be considered as a pull factor which is mainly related
to natural attractiveness of a destination. lots of things have caused the increased in
cultural tourism. Some of the reasons include:

• Travel Desire

• INFO. Collection and Evaluation

• Travel Decisions - Involving selection of destination, travel mode,
Accommodation and activities.



• Travel Preparation - Involving tickets, Bookings, Travel Money, DOCS,
Arrangements clothing.

• Travel Satisfaction Evaluation - Tourism Expenditure is constantly
evaluated before during and after experience assessment useful for future
decision.

Marketing Strategies for the Tourism Market:

Market Penetration Strategy:

Utilized primarily by new entrants by creating a differential Advantage in

 Pricing

 Promotion or both

When determining Market Penetration Strategy for tourism market, barriers to entry,
competitor analysis, and perceptual map method are used. Despite having potential to
entry, Indian outbound tourism market has three fundamental barriers for cultural tourism
of Turkey. Firstly, there is a lack of information and awareness about U.K. as a holiday
destination place in the minds of India since its cultural tourism is also not well-known
by potential Canadian tourists. Secondly, India’s image is based on sun, sand, and sea
tourism in the world. On the other hand, there is severe competition in the Indian
outbound tourism market. India’s main competitors for travelers are American continent
countries such as United States of America (USA), Mexico and European countries such
as United Kingdom (UK), France, and Germany.

Market Extension Strategy:



There are many ways different elements of the marketing mix can be evaluated. For
example, promotions can be evaluated with money off coupons. Special information
request forms, telephone numbers to call or post office box numbers to write to can
identify the area the request is coming from. Also, formal (written) and informal (face-to-
face) surveys can be used to determine the promotional material the customer used in
planning the trip;

It entails reaching new types of tourists through.

 Modification of existing tourist products

 PLG. in advance launch of a new product.

 Extending/stretching PLC.

Market Development Strategy

Too many communities attempt to market themselves as tourist destinations without
accurate information about their resources (facilities, services, staff), image (projected vs.
actual), and how well their customers are satisfied. Without this information, it is difficult
to make other decisions in the planning process. Included should be such things as
recreational and entertainment facilities, cultural and historic sites, overnight
accommodations, restaurants, shopping opportunities, special events and activities, staff
size, and transportation. Each item of the "inventory" should also be assessed in terms of
quality and availability.

The Tourist firm here seeks

 New Classes of tourists for its products or.

 Would and salient product characteristics to the existing offer.



PRIMARY FINDINGS AND ANALYSIS

Q1. Please tell me, how frequently do you travel?

How frequently do you Travel

2-3 Years,
10%

Half Yearly,
Yearly, 35%
55%

The above mentioned graph shows that 35% respondents are yearly travel and 55%
respondents are half yearly travel.



Q2. Please tell me, do you consider a travel agency to plan your trip?

Consider a travel Agency

No, 30%

Yes, 70%

The above mentioned graph shows that 70% respondents consider a travel agency to plan
their trip.



Q3. Please tell me, how often do you consider a travel agency for planning your
trip?

Consider a travel Agency

Never, 5%

Always, 40%

Sometimes,
55%

The above mentioned graph shows that 55% respondents sometimes consider a travel
agency to plan their trip but 5% respondents never consider a travel agency to plan their
trip.



Q4. Please tell me, are you satisfied with the current services offered by your travel
agent? Please rate your satisfaction level on a scale of 1 to 5 where 1 means not at all
satisfied and 5 means extremely satisfied.

Scale of Satisfaction

6
5
5
4
4
3
3
2
2
1
1 35%
20% 27% 11%
7%
0
1 2 3 4 5

The above mentioned graph shows that 7% respondents are not at all satisfied with the
current services offered by their travel agent but 11% respondents are extremely satisfied
with the current services offered by their travel agent.



Q5. Please assign the percentage to the following factors based on your necessities in
tour packages.

Necessties in tour package

35% 30%
30% 25%
25%
20% 15% 14%
15%
7% 9%
10%
5%
0%

y
n
n

e

it
l

d
io
e

o

id

il

o
ot

ti

at

ac

o
u
a
H

F
rt

G
e

F
cr

o

l
a
sp
e

ic
R

n

d
ra

e
M
T

The above mentioned graph shows that according to 30% respondents hotels are
necessities in tour packages and a according to 25% respondents transportation are the
necessities in tour packages.



Q6. Please tell me, how much you are influenced with the advertisement to make up
your mind for a tour package? Please rate on a scale of 1 to 5 where 1 means not at
all influenced and 5 means completely influenced.

Scale of Influence

6
5
5
4
4
3
3
2
2
1
1 35%
24% 29%
2% 10%
0
1 2 3 4 5

The above mentioned graph shows that 2% respondents are not at all influenced by the
advertisement but 10% respondents are extremely influenced by the advertisement.


An empirical study on orissa tourism opportunities and challenges

An empirical study on orissa tourism opportunities and challenges

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