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National Productivity Council, Lodhi Road, New Delhi- 110 003 Page- 1 Tel: 24690331-33, Fax: 24615002 website: www.npcindia.org


CONTENTS

Acknowledgement iiStudy Team iiiExecutive Summary iv - vList of Tables vi

List of Figures vii Page No

Chapter I

About the Survey 1

Chapter II

Profile of Foreign Tourists

9

Chapter III

Expenditure Pattern of Foreign Tourists

15

Chapter IV

Macro Economic Implications

48

Annexure 53



ACKNOWLEDGEMENT The National Productivity Council (NPC) is grateful to the Department of Tourism, Ministry of Tourism and Culture, Government of India for entrusting NPC with the responsibility to carry out the Survey on Foreign Tourists’ Expenses on Handicrafts. We are thankful to Shri Amitabh Kant, Joint Secretary, Shri J. Dash, Joint DG (MR) and Shri D. D. Mathur , Dy. Director (MR) of Ministry of Tourism & Culture for their continuous encouragement during the conduct of the survey. We are also thankful to the officials of Airports Authority of India and Bureau of Civil Aviation Security for granting permission to carry out the survey inside the international airports at New Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad. We also record our thanks to the Central Cottage Industries Emporium as well as emporia run by various state governments in the six cities mentioned above for their kind co-operation in the smooth conduct of the survey. A large number of star hotels had helped us by allowing the survey team to contact foreign guests (tourists) at the exit lobbies. We are thankful to the managements of all these hotels. Lastly, a number of colleagues from NPC’s regional offices in New Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad were involved in this task and without whose co-operation the survey could have not been completed within the short time at the team’s disposal. We are thankful to them. New Delhi Dr. N. K. Nair 19th Dec., 2002 Group Head (Economic Services)

STUDY TEAM

Core Members

N. K. Nair Group Head (Economic Services)



K. P. Sunny Dy. Director (Economic Services)

Utpal Chattopadhyay

Dy. Director (Economic Services)

Rajesh Sund Asst. Director (Economic Services)

D. J. Rao

Asst. Director (Economic Services)

Survey Team

New Delhi Mumbai Kolkata K. P. S. Tomer, Dy. Director O. P. Joshi, Director S. Pal, Director Rajesh Bajaj, Dy. Director M. Ashok, Dy. Director P. Chakraborty, Dy. Director S. K. Dwivedi, Asst. Director B. Badole, Asst. Director S. Mallick, Dy. Director D. Bandyopadhyay, Asst. Director

Gautam Roy, Dy. Director

M. Natarajan, Asst. Director Chennai BangaloreS. Dey, Asst. Director S. Sivakumar, Dy. Director V. Rajesh Dy. Director R. Rajhamany, Trg. Officer A.Muguntharagan,

Asst. Director Hyderabad G. Hema, Dy. Director Executive Summary The Ministry of Tourism & Culture, Government of India assigned National Productivity Council (NPC) to carry out a Survey of Foreign Tourists’ Expenses on Handicrafts in India. The main objective of the survey was to find out how much the visiting foreign tourists spend on handicrafts (total & item-wise) while they stayed in India. The ultimate aim of this task was to construct the Craft/ Tourism Index (defined as per tourist per day expenditure on handicrafts) for India as suggested by the UNESCO. The field level survey was launched by NPC during Sept. – Oct., 2002 in six major cities of India viz. New Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad. These cities act as the major arrival and exit points for an overwhelming majority of the foreign tourists visiting India. The foreign tourists leaving India through these six cities were approached with a structured questionnaire to gather information on their spending on handicraft items.



About 47% of the total respondents were interviewed at the departure lounges of international airports and another 28% from the star hotels. The remaining (25%) tourists were contacted at the handicraft emporia/shops. Only those tourists who had completed their purchases from India were interviewed. The purchases on behalf of the companies the tourist(s) work are not considered in the survey. A total of 12,250 foreign tourists from the six cities were interviewed. Following are the major findings of the Survey:

Respondent tourists from about 100 nations had visited India during the Survey. Among the tourists contacted during the survey, 58% are males and 42% females. About 70% of the respondents are in the age group 25-44 years. A large number of respondents (36%) are in business and more than one fourth (27%) are in service, while 10% are students. Income wise, 43% of the respondents belonged to ‘more than average’ category and another 32% were ‘average’. Only 3% of the respondent tourists had ‘very high’ income level and 2% belonged to the ‘below average’ category. As observed in the survey, the highest inflow of tourists was from USA (11%), followed by UK (10%), France (7%), Japan (7%), Germany (6%) and Australia (5%).

The average duration of stay by a respondent foreign tourist is 20 days. The student

tourists and tourists below 25 years of age had spent the highest number of days. Tourists with very high income stayed for the shortest duration.

According to survey findings, on an average a foreign tourist spends about Rs. 12,187 on handicrafts. The female tourists spent more than their male counterparts. Income level of the respondent tourists has a direct relationship with expenditure. Profession wise business persons are spending more on handicrafts than the others.

Silk is the most bought (value) item among the handicrafts, as 23% of the total expenditure was on this product alone. Other handicraft items of high values bought by respondent tourists include metal & jewellery, cotton & wool textiles and leather products.

In terms of per capita daily expenditure the expenses on handicrafts had shown an increasing trend among tourists aged between 25 and 54 years and it declined there after. The UNESCO’s Craft/ Tourism Index is found to be Rs. 609 ( about US $ 13).

Majority of the purchases were made using Indian Rupee. A sizeable number had used US Dollar and credit cards to finance handicraft purchases. The usage of Euro outnumbered Pound Sterling. Americans as a group spent the highest amount on



handicrafts, contributing 18% of the total expenses. Tourists from UK, France, Australia, Germany, Canada etc. had also spent significant amounts on handicrafts in India. These are also among the major export destinations for Indian handicrafts.

Total expenditure on handicrafts by all the foreign tourists has been estimated at Rs. 29,851.54 million in 2001, which constitutes about 18% of the total value of production of handicraft items in India in 2001-02. This also forms approximately 44% of the total handicrafts exports (excluding hand knotted carpets) from India during the year 2001-02. The amount spent on handicrafts by foreign tourists can be considered as deemed export of handicrafts.



Table 3.7 Item wise total expenditure on handicrafts by Respondents 31 Table 3.8 Distribution of Respondents (%) acc. to total expenditure and age 32 Table 3.9 Distribution of Respondents (%) acc. to total expenditure and sex 33 Table 3.10 Distribution of Respondents (%) acc. to total expenditure and profession 34 Table 3.11 Distribution of Respondents (%) acc. to total expenditure and income 35 Table 3.12 Distribution of Respondents (%) acc. to total expenditure and city of exit 36 Table 3.13 Distribution of Respondents acc. to per capita exp. & no. of days stayed 37 Table 3.14 Distribution of Respondents acc. to per capita daily exp. on handicrafts 38 Table 3.15 Distribution of Respondents (%) acc. to per capita daily expenditure and age 39 Table 3.16 Distribution of Respondents (%) acc. to per capita daily expenditure and sex 40 Table 3.17 Distribution of Respondents (%) acc. to per capita daily expenditure &

profession pprofessionprofession 41

Table 3.18 Distribution of Respondents (%) acc. to per capita daily expenditure and income

42

Table 3.19 Distribution of Respondents (%) acc. to per capita daily exp. & city of exit 43 Table 3.20 Total expenditure on handicrafts acc. to nationality of respondents 44 Table 3.21 Top ten spending nations on Indian handicrafts 45 Table 3.22 Country wise product wise expenditure on handicrafts by respondents 46 Table 3.23 Currencies used by respondents for purchase of handicraft products 47 Table 4.1 Movement of WPI: Oct. 2001 to Oct. 2002 49 Table 4.2 Estimate of total expenditure on handicrafts by foreign tourists 50 Table 4.3 Turnover of Indian handicrafts industry 51 Table 4.4 Exports of handicrafts from India: 1992-93 to 2001-02 (Rs. Crores) 52

List of Tables Table No. Title

Page No.

Table 1.1 City and location wise Distribution of Survey Tourists 4 Table 2.1 Age & Sex Profile of Foreign Tourists contacted during the Survey 9 Table 2.2 Distribution of Respondents acc. to Profession 10 Table 2.3 Distribution of Respondents acc. to Income 11 Table 2.4 Distribution of Respondents acc. to Days of Stay in India 12 Table 2.5 Distribution of Respondents acc. to Country of Origin 13 Table 3.1 Distribution of tourists (%) acc. to number of days stayed and age 25 Table 3.2 Distribution of tourists (%) acc. to number of days stayed and sex 26 Table 3.3 Distribution of tourists (%) acc. to number of days stayed and profession 27 Table 3.4 Distribution of tourists (%) acc. to number of days stayed and income 28 Table 3.5 Distribution of tourists (%) acc. to number of days stayed and city of exit 29 Table 3.6 Total expenditure on handicrafts by Respondents 30



List of Figures Figure No. Title

Page No.

Figure 1 Distribution survey respondents based on place of Interview 5 Figure 2 Distribution respondents based on City 6 Figure 3 Distribution of tourists based on Profession 10 Figure 4 Distribution of tourists based on Country of Origin (top ten countries) 14 Figure 5 Distribution of respondents based on per capita Expenditure class 19 Figure 6 Per Capita Daily Expenditure and Age 20 Figure 7 Per Capita Daily Expenditure and Profession 21 Figure 8 Per Capita Daily Expenditure and Family Income 22



CHAPTER I

ABOUT THE SURVEY 1. Background India draws more than 2.5 million foreign tourists annually. The primary factor that

motivates majority of the foreign tourists to visit India is the country’s bountiful

nature, snow-covered mountains in the Himalayas, colorful deserts in Rajasthan,

beautiful beaches in Goa, Kerala and Orissa and tropical lush green forests spread

far and wide in most parts of the country. Beside the nature, the country’s rich

cultural heritage has been a tremendous attraction to a large number of foreign

visitors. The diversity in climate, religion, language and traditions has always been a

matter of curiosity for the people of other countries. So are India’s exquisite

handloom and handicraft products, which are admired by the foreign tourists.

Purchase of Indian handicrafts is therefore a common practice generally noticed

among the visiting foreigners.

The handicrafts industry in India occupies an important place in the national

economic scene. Firstly, the sector provides direct and indirect employment to a

large number of persons like the artisans and also those who are engaged in the

supply of inputs and in trading. According to an estimate, handicrafts industry

currently employs more than 76 lakh persons in India. Besides high employment

potential, the significant contributions of the sector are felt in terms of high value

addition from a relatively low capital investment and a steady source of foreign

exchange earnings. Available data from Export Promotion Council for Handicrafts

show, in 2001-02, total exports of handicrafts (excluding handknotted carpets) from

India stood at Rs.6769.50 crores. The economic importance of handicrafts sector is

also evident from the huge size of this industry. Turnover of the handicrafts industry,

as estimated by Development Commissioner for Handicrafts, is in the range of Rs.

16,320 crores in 2001-02.



In this background the Department of Tourism, Government of India, had assigned

National Productivity Council (NPC) to carry out a survey of foreign tourists in order

to find how much the tourists spend on handicrafts during their stay in India. The

ultimate outcome of the survey is to facilitate construction of the Craft/ Tourism Index

for India as has been suggested by the UNESCO. The Index would find the

expenses on crafts per tourist per day (in US $) of the foreign visitors to India. The

present report from NPC is the result of the above mentioned survey of foreign

tourists.

2. Objectives of the Study

To identify the handicraft products/ items purchased by foreign tourists

To find out the total expenditure incurred by foreign tourists on handicraft products during their stay in India

To find the currencies used for the purchase of such items

To find country of origin, age & sex profile, occupation and family income of

the foreign tourists

To construct the UNESCO Crafts/ Tourism Index for India 3. Methodology The survey used the same definition of foreign tourists followed by the Department

of Tourism, Govt. of India while compiling tourist statistics. According to this

definition a foreign tourist is a person visiting India on a foreign passport, staying at

least 24 hours in the country for the purpose of (i) leisure (recreation, holiday, health,

study, religion and sport); (ii) business, family, mission and meeting. Transit

passengers not staying at least a day in India were not covered by the survey.

Similarly, minor children accompanying the adult family members (foreign tourists)

were not considered for the survey. NRIs were also excluded from the scope of the

survey



The foreign tourists visiting India were interviewed from three places viz. (i)

international airports, (ii) hotels and (iii) shopping complexes, particularly the

handicrafts emporia and similar establishments selling handicraft items. As

mentioned at the outset, India receives about 2.5 million foreign tourists every year.

Keeping in view the time and cost constraints of the survey, it was decided that

about 0.5% of the total foreign tourists coming to India annually i.e. approximately

12,000 tourists would be interviewed. A large number of foreign tourists were

approached randomly from the above three places for data collection through a

structured questionnaire. The questionnaire sought information mainly on tourists’

purchase of handicraft items (quantity & value) during their stay in India apart from

some personal data on tourists like the country of origin, age, sex, income etc. The

business purchases, defined as purchases on behalf of companies they represent

were excluded. A copy of the questionnaire used for canvassing during the field

survey is appended in Annexure. It is important to note that the purchases of items

by the tourists were not necessarily from the city in which they were contacted. This

is especially the case in regard to those who were contacted at the international

airports. The items might include those which were bought during their travel

anywhere in the country including the major handicrafts centers.

3.1 Field Survey During the field survey about 12,250 foreign tourists were interviewed by the NPC

survey team, against the target of 12,000. The survey was conducted during Sept.

11 – Oct. 25, 2002, simultaneously in six major cities of India namely New Delhi,

Mumbai, Chennai, Kolkata, Bangalore and Hyderabad. About 47% of the total

contacts were made in the international airports of the six cities mentioned above,

while the remaining interviews were held in the hotels (28%) and shops/ emporia

(25%) (Fig.1). In the airports the tourists were interviewed at the departure lounges

and in hotels the contacts were at check-out points. In the handicraft emporia and

other shops selling handicraft products only those foreign tourists were interviewed

whose departure from India was scheduled within the next twenty-four hours. In all



the cases, first it was ascertained whether the tourist’s purchase of handicrafts was

complete and data were gathered only from those who had completed purchase

from India. The distribution of respondents across the cities (Fig. 2) and the place of

contact are given in Table 1.1.

Table1.1: City & Location wise Distribution of Survey Respondents

Airports Hotels Shops/Emporia Total City

Target Achieve-ment Target Achieve-

ment Target Achieve-ment Target Achieve-

ment

New Delhi 2400

2399 1200 1709 1200

1250 4800 5358

Mumbai 1800

1826 900 883 900

903 3600 3612

Chennai 960

962 480 427 480

407 1920 1796

Kolkata 420

185 210 200 210

220 840 605

Bangalore 240

267 120 124 120

128 480 519

Hyderabad 180

158 90 102 90

100 360 360

Total 6000

5797 3000 3445 3000

3008 12000 12250



Figure 1: Distribution of Survey Respondents based on Place of Interview

Market25%

Hotels28%

Airports47%



Figure 2: Distribution of Respondents based on City

Mumbai29%

Bangalore4%

Chennai15%

New Delhi44%

Hyderabad3%

Kolkata5%



There have been some minor variations in the number of tourists responding to the

survey among the cities as well as across places of contact when compared to the

targets set. While in Delhi, Mumbai and Bangalore the total number of respondents

exceeded the targets, in two of the remaining cities, viz. Chennai and Kolkata the

achievement fell short of their respective targets. In Hyderabad, however, the survey

team could achieve the targets. Similarly, the number of contacts inside airports fell

marginally below its target, which was fixed at 50% of the total. That the inflow of

foreign tourists during the period of survey was found to be less than expected in

some of the cities was the main reason for not mustering the required number in

these places.

3.2 Data Analysis Data collected through the structured questionnaire were scrutinized thoroughly

before being entered into computer systems. Such data were once again checked to

detect possible entry errors. Finally, corrected data were analyzed by computers

using Microsoft Excel and SPSS packages.

4. Limitations

Progress of the survey was affected adversely by a number of factors, most of which

are beyond the control of the survey team. Firstly, the survey was conducted during

middle of Sept. and October, which is generally considered to be a lean season in

India for foreign tourists. The inflow of foreign tourists was further low on account of

the anticipated disturbances during the anniversary of the Eleventh Sept. incident in

New York. The disturbance in Karnataka as a sequel to abduction of a political

leader by the notorious sandal wood smuggler and subsequently the Cauvery

disputes affected tourist inflow to Bangalore unfavorably. As a result, contacts with

adequate number of tourists in Southern locations where, interviews were held, were

unfavorably affected leading to delays in the completion of the survey.



Secondly and perhaps most importantly was the delay in the procurement of entry

passes for airports. As per plan, 50% of the total contacts were scheduled to be

made in the departure lounges of international airports. The international airports

being high security zones, issue of entry passes involved procedures and scrutiny by

the Airports Authority of India. Therefore, the survey team had to wait for some time

after completing its job in the shops and hotels. The permission to carry out the

survey inside airports was granted only for one week, which was short considering

the large number of tourists to be interviewed, particularly in places like Delhi and

Mumbai.

Finally, the availability of foreign tourists for interview was constrained by the time at

their disposal, compatibility of language and also willingness to co-operate by the

tourists. All tourists contacted by the team did not agree for the interview for a variety

of reasons. Some of the tourists contacted during the survey though provided total

expenses on handicrafts, could not recollect its item wise break -ups. All these made

the task of the investigation difficult and also delayed the completion of survey by a

few days.



CHAPTER II

PROFILE OF FOREIGN TOURISTS

As mentioned in the earlier chapter the Survey had covered a total of 12250 foreign

tourists from six cities. Among these, 7145 (58%) were males and the remaining

5105 (42%) were females. The age distribution of the respondent tourists displays a

skewed pattern with more than 70% of them falling in the range of 25-44 years of

age. Table 2.1 shows the age and sex distribution of the foreign tourists contacted

during the survey.

Table 2.1 : Age & Sex Profile of Foreign Tourists Contacted during the Survey

No. of respondents Total Age (Years) Male Female No. Percent

Less than 25 535 602 1137 9.28

25-34 2090 2025 4115 33.59

35-44 2997 1724 4721 38.54

45-54 1192 530 1722 14.06

55-64 268 164 432 3.53

65 & above 63 60 123 1.00

Total 7145 5105 12250 100.00

The visiting tourists were asked about their professions. It was found that a large

number of respondents (36%) are business men/women. While 27% of them are in

service, more than 10% are found to be students. The break up of professions of the

foreign tourists interviewed during survey is given in table 2.2 (Fig. 3).



Table 2.2: Distribution of Respondents According to Profession.

Profession No. of

RespondentsPercentage of Respondents

Service 3361 27.44

Business 4456 36.38

Industry 850 6.94

Agriculture 150 1.22

Students 1247 10.18

Others 2186 17.84

Total 12250 100.00

Figure 3: Distribution of Respondents based on Profession

7%1%

10%

18%28%

36%

ServiceBusinessIndustryAgricultureStudentsOthers

The respondent foreign tourists were also arranged according to their income levels.

Income, being a highly personal and hence very sensitive information, the tourists

were asked to categorize themselves in to Below Average, Average, More than

Average, High and Very High. Since no uniform norm can be applied to all the

countries having widely varying per capita GDP, the information on income was

collected according to the respondent’s own judgment with respect to his/her own

country’s situation. It was observed that among the foreign tourists interviewed, the



highest number (43%) was from the ‘more than average’ category. More than 3960

(about 32%) respondent tourists reported that they had only ‘average’ income.

About 20% of the them were from the ‘high’ income category. Only 2% of the

respondents had ‘below average’ income and about 3% belonged to the ‘very high’

income category (Table 2.3).

Table 2.3 : Distribution of Respondents According to Income

Income Group No. of

RespondentsPercent of

Respondents

Below Average 271 2.21

Average 3962 32.34

More than Average 5240 42.78

High 2458 20.07

Very High 319 2.60

Total 12250 100.00

It was found that about 33% of the foreign tourists responding to the survey had

spent a week or less in India and another 27% had stayed for periods ranging

between 8 days and two weeks. About 28% of the visiting foreigners had spent

between 15 days and one month. Only 10% of the respondents had stayed beyond

one month and up to 90 days, while about 2% had spent above 90 days. Detailed

information on the number of days spent by foreign tourists is presented in table 2.4.



Table 2.4 : Distribution of Respondents According to Days of Stay in India

Days Stayed (No.)

No. of Respondents

Percent of Respondents

1-2 439 3.58

3-7 3638 29.70

8-14 3279 26.77

15-20 2017 16.46

21-30 1469 11.99

31-45 692 5.65

46-90 496 4.05

91-180 137 1.12

181 & above 83 0.68

Total 12250 100.00

The respondent tourists were asked about his/her country of origin. It was observed

during the survey that India respondent tourists came from a large number of

countries spread almost in all the continents. During the 45 days of survey it was

found that foreigners from more than 100 countries had visited India. The maximum

inflow of tourists, as observed in the survey, was from USA (10.87%), followed by

UK (9.98%), France (7.40%), Japan (6.91%), Germany (6.00%) and Australia

(5.03%). The names of the countries and the number of foreigners coming from

those countries are given in Table 2.5 (Fig. 4).



Table 2.5 : Distribution of Respondents According to Country of Origin

Foreign Tourists

Foreign Tourists

Country

No. % age

Country

No. % age USA 1331 10.87 Nepal 127 1.04

UK 1223 9.98 New Zealand 120 0.98 France 907 7.40 Denmark 120 0.98

Japan 846 6.91 Belgium 117 0.96

Germany 735 6.00 Nigeria 103 0.84 Australia 616 5.03 Kenya 99 0.81

Sri Lanka 568 4.64 Ireland 98 0.80

Italy 454 3.71 Sweden 98 0.80 Singapore 381 3.11 Taiwan 88 0.72 Korea 347 2.83 Bangladesh 80 0.65 Spain 265 2.16 Poland 76 0.62

Canada 257 2.10 Finland 73 0.60 Malaysia 250 2.04 Norway 72 0.59

Netherlands 243 1.98 Brazil 61 0.50

China 242 1.98 Philippines 58 0.47

Russia 228 1.86 Hong Kong 54 0.44

Switzerland 208 1.70 Saudi Arabia 50 0.41

South Africa 185 1.51 Mexico 49 0.40

Thailand 176 1.44 Mauritius 48 0.39

UAE 175 1.43 Iran 47 0.38

Israel 142 1.16 Austria 45 0.37

Indonesia 129 1.05 Others 659 5.38

Total 12250 100.00



Figure 4: Distribution of Respondents based on Country of Origin (Top Ten Countries)

1331

1223

907

846

735

616

568

454

381

347

0 200 400 600 800 1000 1200 1400

USA

UK

France

Japan

Germany

Australia

Sri Lanka

Italy

Singapore

Korea

Cou

ntry

of O

rigin

Number of Tourists



CHAPTER III

EXPENDITURE PATTERN OF FOREIGN TOURISTS

During the survey the concentration was on to collect information regarding

spending on handicraft items by the visiting foreign tourists during their stay in India.

The information sought from the foreign tourists included number of items bought,

amount spent on a variety of handcraft products etc. For smooth data collection and

analysis handicraft items were grouped into 12 major heads viz. textiles, clay,

bamboo/rattan, wood, metal & jewelry, natural fiber, leather, paper & paper products,

glass, local raw materials, mixture of raw materials and others. The textiles

comprised silk, cotton, wool and others. As mentioned earlier, the company or

business purchases of the foreign tourists were not considered for data collection

and analysis.

In this chapter the expenditure by foreign tourists on handicrafts would be examined

with respect to a number of determinants such as the age, sex, profession, income,

city of exit and duration of stay. The total as well as per capita daily expenditure

incurred by the tourists on handicrafts are worked out separately and arranged

according to the determinants mentioned above so as to examine their influence, if

any, on the expenditure patterns. The duration of stay by the tourists is also

examined with respect to age, sex, profession, income and city of exit.

3.1 Period of Stay in India

The information on number of days stayed by the tourists according to their age,

sex, profession, income etc. are presented in tables 3.1-3.5. The following may be

observed:

On an average a respondent tourist had spent about 20 days in India.



The highest number of days is spent by respondent tourists below 25 years of

age, while for those belonging to 35-44 years category the duration of stay in

India is the lowest (17 days). Tourists in the age group 55-64 years stayed for

about 25 days.

The duration of stay in India was marginally higher for female tourists (20.33

days) compared to their male counterparts (19.92 days).

The student tourists spend more days (34) than the others. The agriculturists

and industrialists had stayed in India for longer duration compared to

businessmen and from service sectors.

The income level of the respondent tourists and their stay duration are seen

to have inverse relationship. Tourists having ‘below average’ income had on

an average spent the highest number of days (33), while the tourists from

‘very high’ income category stayed for lower number of days (17). Most of the

‘below average’ category of respondents are the students. Since India’s is

one of the lowest cost of living by world standards, even the ‘below average’

income tourist (according to the income standards in his country) will be able

to afford a comfortable stay in the country.

3.2 Total Expenditure by Tourists

Total expenditure on handicrafts varied widely across the categories of tourists.

While 426 (3.48%) tourists did not buy any handicraft item, about 811 (6.63%) had

spent over Rs. 25,000 on various handcraft items during their stay in India. The

modal expenditure class is found to be Rs. 2,001 -5,000. About one fifth of the total

tourists interviewed during the survey had incurred total expenditure exclusively on

handicraft items beyond Rs. 5,000 and up to Rs. 10,000. A small percentage

(1.44%) of the tourists had bought handicrafts worth Rs. one lakh or more (Table



3.6). Collectively 12250 respondent tourists had spent a total of Rs. 149.30 million

on handicrafts during their stay in India. The per capita expenditure is found to be

Rs. 12,187.

3.3 Item-wise Expenditure

Item wise spending also displays large variance. Among the 12 groups of

handicrafts listed earlier, the highest spending was on silk products (23.13%),

followed by metal & jewelry (19.97%), cotton textiles (15.75%), wool textiles (6.19%)

and leather products ( 5.75%). There was low spending on items like natural fiber

(0.43%), glass (0.60%), bamboo products (0.64%) and mixture of items (0.89%).

The detailed data on handicraft items and the amount spent on those items by

foreign tourists are given in Table 3.7. The data presented in this table do not relate

to all the tourists interviewed during the survey, since about 1000 respondents could

not provide item wise break-up of their expenditure even though they could give the

total expenses on handicrafts.

3.4 Average Expenditure Per Tourist Tables 3.8 – 3.13 present per capita expenditure incurred by foreign tourists

arranged according to the age, sex, profession, income, number of days stayed and

city of exit. The following may be noted:

Per capita expenditure per respondent tourist is the highest in the age group

45-54 years (Rs.16333), followed by the age group 35-44 years (Rs.12686)

and 25-34 years (Rs.11655). Per capita expenditure was the lowest in the

age group 65 and above.

Female tourists spend (Rs.12897) more than their male counterparts

(Rs.11680).



Business tourists spend the highest on handicrafts (Rs.17392) among all

categories of respondents. Industrial categories of tourists spend much less

(Rs.11703), followed by agricultural tourists (Rs.9978) and tourists from

service category (Rs.9902). As expected student tourists incur an

expenditure only of Rs. 4893 on handicrafts in per capita terms.

Per capita expenditure is directly related to income categories. While those in

the ‘below average’ income bracket incurred an expenditure of Rs.6472, ‘high’

and ‘very high’ categories reported high levels of expenditure on handicrafts,

between Rs. 18242 and Rs.33171.

Per capita expenditure was found to be the highest among those who stayed

beyond two weeks but up to three weeks (Rs.18755).

3.5 Per Capita Per Day Expenditure

As per the survey data, respondent tourists’ stay in India varied from one day to

more than six months. The purchases of handicraft items also varied widely, ranging

from zero to more than one lakh rupees. Table 3.14 presents per capita per day

expenditure by respondent tourists. It can be seen that 3673 tourists (30%) had

spent between Rs. 250 and Rs. 750 per day on handicraft products (Fig. 5). About

20% of them had spent above Rs. 100 and up to Rs. 250 and almost an equal

number (18%) spent between Rs. 750 and Rs. 2000 per day. More than 3% of the

tourists had incurred expenditure on handicrafts exceeding Rs. 5000 per day.

UNESCO’s Craft/ Tourism Index defined as expenses on handicrafts per foreign

tourist per day is found to be Rs. 609 (approx. US $ 13 1).

1 Exchange Rate 1US$ = Rs. 48.30 as on Oct. 2002



Figure 5: Distribution of Respondents based on Per capita Expenditure Class

01000200030004000

1-50

50.1-

100

100.1

-250

250.1

-750

750.1

-2000

2000

.1-50

00

5000

.1-15

000

1500

0.1 &

>

No Spe

nd.

Expenditure Class

Num

ber o

f Tou

rists

It would be worth to see whether the daily expenditure on handicrafts had varied

across age, sex, profession, income level of the respondent tourists. The information

on daily expenditure with respect to the above determinants is listed in tables 3.15 -3.19 (also Figs. 6-8). The main findings, which are in conformity with the trend

observed in case of total expenditures, are as follows:

In all age categories the maximum number of respondent tourists belonged to

the daily expenditure class ranging between Rs. 250 and Rs. 750 per day,

except in the case of “less than 25” and “65 & above” slabs where people are

seen spending over Rs. 100 and up to Rs. 250 per day.

Daily expenditure had shown an increasing trend for tourists having age

between 25 and 54 years, after which it started declining.

Like total expenditure, the daily expenditure also increased with rise in the

income of the tourists.



In terms of profession too, the tourists’ daily expenses on handicrafts

repeated the same trend as that of the total expenditure. Businessmen spent

the most, while students spent the least. Service professionals and

industrialists had spent almost same amount and it was higher than the

amount spent by agriculturists and others.

Figure 6: Per Capita daily Expenditure and Age

0

100

200

300

400

500

600

700

800

900

>25 25-34 35-44 45-54 55-64 65 & >

Age group

Dai

ly E

xpen

ditu

re (R

s)



Figure 7: Per Capita Daily Expenditure and Profession

0

200

400

600

800

1000

1200

Service

Busine

ss

Indus

try

Agricu

lture

Studen

ts

Others

Profession

Dai

ly E

xpen

ditu

re (R

s)

.



Figure 8: Per Capita Daily Expenditure and Family Income

0

500

1000

1500

2000

2500

BelowAverage

Average Morethan

Average

High VeryHigh

Family Income

Dai

ly E

xpen

ces

(Rs)



3.6 Nationality wise Expenditure

The survey data on expenses on handicrafts were organized according to the

nationality of the tourists. It was observed that US nationals have spent the highest

amount (Rs. 26.76 million) on Indian handicrafts and their combined expenditure

formed about 18% of the total expenditure on handicrafts by all the 12,250 visiting

foreign tourists interviewed during the survey. The other higher spenders include

nationals from U.K. (12%), France (8%), Australia (6%), Germany (5%), Canada

(4%) etc. Tourists from U.A.E., Italy, Japan and Switzerland reported a reasonably

high level of expenses with each country having a share of about 3% in total

expenditure. While for seven countries (Singapore, Sri Lanka, Netherlands, Nigeria,

South Africa, Ireland & Korea) the share in total expenses was 2% each, another

nine countries (Malaysia, Spain, China, Belgium, Denmark, Russia, Indonesia, New

Zealand & Saudi Arabia) had a share to the tune of 1%. Table 3.20 lists nationality

wise total as well as per capita expenditure on handicrafts by foreign tourists from 26

leading nations (each having a share of 1% or more in total expenses). According to

survey findings, these 26 countries collectively contributed more than 80% of both

the total expenses on handicrafts and total tourists inflow in India.

The expenditure pattern of foreign tourists discussed above is in conformity with the

trend in total export of handicrafts from India. It may be noted that during 2001-02,

USA was the major destination for Indian handicrafts exports with a share of 30% of

the total value (excluding hand knotted carpets). The other countries having

significant share in Indian handicrafts exports include UK (11%), Germany (10%),

France (5%), Italy (4%), Japan (4%), Canada (3%) and Australia (2%). As may be

noticed from table 3.21 these eight countries absorbing 69% of total handicraft

exports from India are the same nations whose citizens had contributed major part of

the total amount spent (59%) on handicraft products while on tour to India.



In terms of per capita expenditure, however, the highest spenders on handicrafts are

found to be the tourists from UAE (Rs. 28,376), followed by Saudi Arabia (Rs.

26,955), Nigeria (Rs.25073), Ireland (Rs. 24687) and Canada (Rs. 21,204). The US

tourists who had the highest share (18%) in total expenses reported much less per

capita expenditure (6th rank). The Japanese tourist was seen to incur the least

expenses (Rs. 5249) on handicrafts. Tourists from ten nations (Indonesia, New

Zealand, Singapore, Malaysia, China, Spain, Russia, Korea, Sri Lanka & Japan) had

reported per capita expenditures, less than the average for all countries, Rs. 12,187

(table 3.20).

The product wise expenditures by foreign tourists from the same 26 nations are

presented in table 3.22. The data in this table represent the percentage(s) of the

total expenditure (on handicrafts) a respondent tourist spends on a particular item. It

can be seen from the table that silk, metal & jewelry, cotton textiles, leather products

and wool textiles remained the most bought handicraft items by the foreign tourists

visiting India irrespective of their country of origin. For tourists from South Africa,

Belgium, Sri Lanka, Nigeria and Italy silk alone contributed more than 30% of their

total expenditures on all handicrafts. The UAE tourists had a strong preference for

Indian cotton textiles as they incurred more than 60% of their total expenditure on

this item. Similarly, nationals from Switzerland and Nigeria also displayed preference

for cotton textile (handicraft) products from India. Metal & jewelry items were bought

in high values (forming 25% or more of the total purchase) by tourists from the

Netherlands (55%), Russia (34%), Canada (29%) and France (26%).

3.7 Currency Used During the survey the foreign tourists were asked to provide information on currency

used by them while purchasing various handicraft items in India. The summary of

information on currency used is presented in table 3.23. It can be seen that, as

expected, Indian rupee (INR) was the main currency used by respondent tourists

while buying the handcraft products. The next frequently used currency was the US

dollar. In spite of being a relatively new currency Euro has outperformed Pound



Sterling in almost all products. A significant number of tourists are also seen to use

credit cards at the time of purchase.

Table 3.1 : Distribution of Tourists (%) acc. to Number of Days Stayed and Age

Age category (Years) Days Stayed (No.) <25 25-34 35-44 45-54 55-64 65 &

above

Total (Nos.)

1-2 3.87 3.67 3.58 3.60 2.55 1.63 439

3-7 25.15 30.38 31.84 27.64 22.92 19.51 3638

8-14 21.99 25.47 28.87 27.00 27.08 29.27 3279

15-20 16.71 16.43 15.42 18.41 19.68 17.07 2017

21-30 12.23 13.22 10.17 11.50 17.82 25.20 1469

31-45 5.19 4.96 6.35 6.16 4.17 4.07 692

46-90 8.97 4.01 2.99 3.89 4.40 1.63 496

91-180 4.22 1.17 0.40 0.99 0.93 0.81 137

181 & above 1.67 0.70 0.38 0.81 0.46 0.81 83

Total (Nos.) 1137 4115 4721 1722 432 123 12250

% to total 9.28 33.59 38.54 14.06 3.53 1.00 100.00

Average 31 20 17 20 25 19 20



Table 3.2 : Distribution of Tourists (%) acc. to Number of Days Stayed and Sex

Days Stayed (No.) Male Female Total (Nos)

1-2 3.82 3.25 439

3-7 31.25 27.52 3638

8-14 26.79 26.74 3279

15-20 15.72 17.51 2017

21-30 11.49 12.69 1469

31-45 5.23 6.23 692

46-90 3.85 4.33 496

91-180 1.11 1.14 137

181 & above 0.74 0.59 83

Total (Nos.) 7145 5105 12250

% to total 58.33 41.67 100.00 Average 19.92 20.33 20.09



Table 3.3: Distribution of Tourists (%) acc. to Number of Days Stayed and Profession

Profession Days Stayed (No.) Service Business Industry Agriculture Students Others

Total (Nos.)

1-2 3.48 4.82 2.59 2.00 2.17 2.52 439

3-7 31.48 33.64 19.06 16.67 23.82 27.31 3638

8-14 26.78 28.82 25.65 24.67 21.65 26.08 3279

15-20 15.86 16.07 17.06 25.33 16.84 17.15 2017

21-30 11.13 9.58 17.88 16.67 14.27 14.32 1469

31-45 6.22 3.97 13.06 7.33 6.82 4.53 692

46-90 3.84 2.45 3.29 4.00 8.18 5.58 496

91-180 0.80 0.38 0.71 2.00 4.01 1.56 137

181 & above 0.42 0.27 0.71 1.33 2.25 0.96 83

Total (Nos.) 3361 4456 850 150 1247 2186 12250

% to total 27.44 36.38 6.94 1.22 10.18 17.84 100.00

Average 18 16 24 25 34 23 20



Table 3.4: Distribution of Tourists (%) acc. to Number of Days Stayed and Income

Annual Family Income Days Stayed (No.) Below

Average Average More than Average High Very

High

Total (Nos)

1-2 3.69 3.28 3.49 4.56 1.25 439

3-7 19.19 28.02 31.37 30.96 22.26 3638

8-14 19.56 25.42 26.85 29.13 30.09 3279

15-20 15.87 17.26 15.90 15.87 21.00 2017

21-30 17.34 12.62 11.79 10.21 16.61 1469

31-45 8.49 6.61 5.08 4.96 5.96 692

46-90 7.75 4.29 4.26 3.01 2.51 496

91-180 6.64 1.67 0.73 0.57 0.31 137

181 & above 1.48 0.83 0.53 0.73 0.00 83

Total (Nos.) 271 3962 5240 2458 319 12250

% to total 2.21 32.34 42.78 20.07 2.60 100.00

Average 33 22 19 18 17 20



Table 3.5: Distribution of Tourists (%) acc. to Number of Days Stayed and City of Exit

City Days Stayed (No.) Delhi Mumbai Chennai Kolkata Hyderabad Bangalore

All India (Nos.)

1-2 5.34 2.13 2.17 4.63 0.00 1.73 439

3-7 37.20 25.00 29.06 15.21 6.94 19.85 3638

8-14 23.89 31.89 25.28 18.68 14.44 43.93 3279

15-20 10.36 21.01 19.77 25.95 18.06 24.28 2017

21-30 9.63 13.18 13.47 16.03 29.17 6.36 1469

31-45 8.29 2.80 2.23 5.12 18.06 2.12 692

46-90 4.37 2.71 3.84 8.93 10.00 0.96 496

91-180 0.63 0.69 2.45 3.80 2.22 0.58 137

181 & above 0.30 0.58 1.73 1.65 1.11 0.19 83

Total (Nos.) 5358 3612 1796 605 360 519 12250

% to total 43.74 29.49 14.66 4.94 2.94 4.24 100.00

Average 17 19 27 31 32 15 20



Table 3.6: Total Expenditure on Handicrafts by Respondents

Per Capita Expenditure. Class

(Rs.) No. of

Respondents Percent Average Exp. (Rs.)

1- 500 637 5.20 343

501-1000 1000 8.16 813

1001-2000 1735 14.16 1594

2001-5000 3335 27.22 3475

5001-10000 2454 20.03 7442

10001-25000 1852 15.12 15629

25001-50000 475 3.88 34319

50001-100000 160 1.31 71066

100001 & above 176 1.44 335410

No spending 426 3.48 0

Total 12250 100.00 12187



Table 3.7: Item wise Expenditure on Handicrafts by Respondents

Item Item wise Exp. (Rs)

Per capita

Exp.(Rs)% to total

Exp. No.of Resp.

incurred expenditure

Textiles Silk 34534294 7409 23.13 4661 Cotton 23506987 5321 15.75 4418 Wool 9239398 5250 6.19 1760 Others 5809262 4563 3.89 1273 Clay 2377445 1570 1.59 1514 Bamboo 953170 1418 0.64 672 Wood 5768142 2091 3.86 2759 Metal & Jewellery 29807345 6040 19.97 4935 Natural Fibre 644410 1159 0.43 556 Leather 8585426 2685 5.75 3197 Paper & Paper products 1799247 1362 1.21 1321 Glass 900364 1144 0.60 787 Local raw material 2011636 2395 1.35 840 Mixture of raw mater. 1336048 3267 0.89 409 Others 8891473 2755 5.96 3227 Item break up not available 13131837 4129 8.80 ** Total Exp. 149296483 12187 100.00 12250 ** About 1000 respondents could not provide item wise expenditure



Table 3.8: Distribution of Respondents (%) acc. to Total Expenditure and Age

Age category (Years) Per Capita Exp.Class

(Rs.) <25 25-34 35-44 45-54 55-64 65 & above

Total (Nos.)

1- 500 9.67 5.52 3.62 3.89 8.80 19.51 637

501-1000 13.81 9.26 6.19 7.14 7.41 12.20 1000

1001-2000 20.49 15.87 12.05 11.73 13.19 17.07 1735

2001-5000 31.31 28.17 26.65 24.80 25.69 19.51 3335

5001-10000 12.31 18.59 22.83 22.65 15.28 12.20 2454

10001-25000 7.21 12.47 18.17 18.00 19.21 4.88 1852

25001-50000 1.50 3.77 4.55 4.24 3.24 0.81 475

50001-100000 0.70 1.46 1.10 1.80 1.85 0.81 160

100001 & above 0.79 1.39 1.44 2.03 1.62 0.00 176

No spending 2.20 3.52 3.39 3.72 3.70 13.01 426

Total (Nos.) 1137 4115 4721 1722 432 123 12250

% to total 9.28 33.59 38.54 14.06 3.53 1.00 100.00

Av. Expenditure 7106 11655 12686 16333 11092 3622 12187



Table 3.9: Distribution of Respondents (%) acc. to Total Expenditure and Sex

Per capita Exp. Class (Rs.) Male Female Total (Nos) 1- 500 5.25 5.13 637

501-1000 8.26 8.03 1000

1001-2000 14.11 14.24 1735

2001-5000 27.92 26.25 3335

5001-10000 20.14 19.88 2454

10001-25000 14.14 16.49 1852

25001-50000 3.15 4.90 475

50001-100000 1.27 1.35 160

100001 & above 1.47 1.39 176

No spending 4.30 2.33 426

Total 7145 5105 12250

% to total 58.33 41.67 100.00

Av. Expenditure 11680 12897 12187



Table 3.10: Distribution of Respondents (%) acc. to Total Expenditure and Profession

Profession Per Capita Exp.Class

(Rs.) Service Business Industry Agriculture Students Others Total (Nos.)

1- 500 5.83 3.66 4.35 4.67 8.34 5.95 637

501-1000 9.16 5.83 7.41 5.33 13.63 8.74 1000

1001-2000 15.56 10.73 14.59 12.00 20.53 15.37 1735

2001-5000 28.53 24.78 25.29 27.33 32.88 27.72 3335

5001-10000 20.35 21.50 22.59 24.67 13.23 19.12 2454

10001-25000 12.50 19.37 15.76 16.00 8.26 14.09 1852

25001-50000 3.33 5.12 4.71 2.67 0.88 3.66 475

50001-100000 1.04 1.82 1.88 1.33 0.32 1.01 160

100001 & above 1.22 2.40 1.06 0.67 0.24 0.69 176

No spending 2.47 4.80 2.35 5.33 1.68 3.66 426

Total 3361 4456 850 150 1247 2186 12250

% to total 27.44 36.38 6.94 1.22 10.18 17.84 100.00

Av. Expenditure 9902 17392 11703 9978 4893 9593 12187



Table 3.11: Distribution of Respondents (%) acc. to Total Expenditure and Income

Annual Family Income Per Capita Exp. Class (Rs.) Below

Average Average More than Average High Very

High

Total (Nos)

1-500 12.18 6.94 4.54 3.42 2.19 637

501-1000 12.92 10.12 7.73 5.66 6.27 1000

1001-2000 15.50 19.28 12.96 9.36 6.27 1735

2001-5000 26.57 32.00 26.95 21.72 15.36 3335

5001-10000 14.76 15.90 22.23 23.03 16.61 2454

10001-25000 10.70 9.41 16.03 21.28 27.27 1852

25001-50000 2.58 1.92 3.68 6.27 14.11 475

50001-100000 1.11 0.71 1.11 2.16 5.64 160

100001 & above 0.37 0.81 1.30 2.40 5.02 176

No spending 3.32 2.90 3.47 4.72 1.25 426

Total 271 3962 5240 2458 319 12250

% to total 2.21 32.34 42.78 20.07 2.60 100.00

Av. Expenditure 6472 7456 11943 18242 33171 12187



Table 3.12: Distribution of Respondents (%) acc. to Total

Expenditure and City of Exit

City Per Capita Exp.Class

(Rs.) Delhi Mumbai Chennai Kolkata Hyderabad BangaloreAll India (Nos.)

1- 500 3.17 7.78 5.18 12.89 0.28 2.70 637

501-1000 5.58 12.32 7.29 14.21 2.78 5.59 1000

1001-2000 12.34 16.39 15.14 23.64 1.94 11.56 1735

2001-5000 29.38 26.58 27.95 27.60 18.06 12.91 3335

5001-10000 21.87 16.89 21.10 9.09 30.00 25.05 2454

10001-25000 17.34 10.83 13.20 4.96 32.78 28.32 1852

25001-50000 4.16 3.57 2.56 1.32 9.44 6.74 475

50001-100000 1.01 2.05 0.56 0.33 3.06 1.73 160

100001 & above 0.65 2.91 0.17 0.50 1.67 4.62 176

No spending 4.50 0.69 6.85 5.45 0.00 0.77 426

Total 5358 3612 1796 605 360 519 12250

% to total 43.74 29.49 14.66 4.94 2.94 4.24 100.00

Av. Expenditure 9765 17680 6524 4308 16939 24458 12187



Table 3.13: Distribution of Respondents acc. to Per Capita Expenditure and Number of Days Stayed

Days spent by tourists (No.) Per Capita Exp. Class (Rs.) 1-2 3-7 8-14 15-20 21-30 31-45 46-90 91-180 181 &

above Total

1- 500 11.85 6.57 3.20 5.40 4.63 3.32 5.85 4.38 7.23 637

501-1000 8.88 8.36 8.20 8.97 7.01 5.64 10.08 9.49 2.41 1000

1001-2000 13.44 14.54 15.37 13.98 14.91 10.40 8.87 12.41 10.84 1735

2001-5000 21.18 30.13 28.33 24.99 26.62 20.95 24.60 27.74 20.48 3335

5001-10000 13.44 18.77 21.68 20.33 19.67 22.54 20.16 16.79 27.71 2454

10001-25000 6.83 10.50 14.70 18.54 17.90 25.87 19.96 18.25 21.69 1852

25001-50000 2.28 2.89 3.87 3.47 4.29 7.80 6.85 5.11 6.02 475

50001-100000 1.14 1.35 1.25 1.14 1.29 1.88 1.41 1.46 1.20 160

100001 & above 1.82 0.85 1.83 2.28 1.23 1.01 0.60 1.46 1.20 176

No spending 19.13 6.05 1.56 0.89 2.45 0.58 1.61 2.92 1.20 426

Total 439 3638 3279 2017 1469 692 496 137 83 12250

% to total 3.58 29.70 26.77 16.47 11.99 5.65 4.05 1.12 0.68 100.00

Av. Expenditure 9635 8969 12623 18755 11037 13616 10781 9548 11203 12187



Table 3.14: Distribution of Respondents acc. To Per Capita Daily Expenditure on Handicrafts

Respondents Daily Exp. Class(Rs.) No. Percent

1- 50 1113 9.1

50.1-100 1190 9.7

100.1-250 2420 19.8

250.1-750 3673 30.0

750.1-2000 2251 18.4

2000.1-5000 769 6.3

5000.1-15000 266 2.2

15000.1 & above 142 1.2

No Spending 426 3.5

Total 12250 100.00



Table 3.15: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and Age

Age category (Years) Daily Exp. Class (Rs.) <25 25-34 35-44 45-54 55-64 65 &

above

Total (Nos.)

1- 50 21.46 10.04 5.27 6.74 13.43 26.83 1113

50.1-100 16.27 11.23 7.82 7.43 8.56 7.32 1190

100.1-250 23.13 21.51 17.73 18.12 20.60 27.64 2420

250.1-750 22.52 27.70 32.79 33.62 29.63 17.89 3673

750.1-2000 9.76 16.23 22.22 20.79 13.43 5.69 2251

2000.1-5000 2.64 6.34 7.31 5.69 7.87 0.81 769

5000.1-15000 1.50 2.26 2.39 2.26 0.69 0.81 266

15000.1 & above 0.53 1.17 1.08 1.63 2.08 0.00 142

No Spending 2.20 3.52 3.39 3.72 3.70 13.01 426

Total (Nos.) 1137 4115 4721 1722 432 123 12250

% to total 9.28 33.59 38.54 14.06 3.53 1.00 100.00

Av. Expenditure 229 583 746 817 444 191 609



Table 3.16: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and Sex

Daily Exp.Class (Rs.) Male Female Total

(Nos) 1- 50 8.83 9.44 1113

50.1-100 9.36 10.21 1190

100.1-250 19.73 19.78 2420

250.1-750 30.52 29.23 3673

750.1-2000 18.07 18.81 2251

2000.1-5000 5.93 6.76 769

5000.1-15000 2.11 2.25 266

15000.1 & above 1.13 1.19 142

No Spending 4.30 2.33 426

Total (Nos.) 7145 5105 12250

% to total 58.33 41.67 100.00

Av. Expenditure 586 634 609



Table 3.17: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and Profession

Profession Daily Exp.Class (Rs.) Service Business Industry Agriculture Students Others

Total (Nos.)

1- 50 8.99 4.40 9.65 7.33 20.77 12.03 1113

50.1-100 10.24 6.17 11.29 9.33 17.56 11.07 1190

100.1-250 20.83 16.02 21.88 30.67 24.62 21.36 2420

250.1-750 33.23 30.23 30.71 26.67 22.61 28.64 3673

750.1-2000 16.69 24.28 15.88 14.00 9.62 15.19 2251

2000.1-5000 4.67 9.00 4.94 5.33 2.57 5.90 769

5000.1-15000 1.96 3.19 2.47 0.67 0.48 1.37 266

15000.1 & above 0.92 1.91 0.82 0.67 0.08 0.78 142

No Spending 2.47 4.80 2.35 5.33 1.68 3.66 426

Total (Nos.) 3361 4456 850 150 1247 2186 12250

% to total 27.44 36.38 6.94 1.22 10.18 17.84 100.00

Av. Expenditure 550 1087 488 399 144 417 609



Table 3.18: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and Income

Annual Family Income Daily Exp.Class (Rs.) Below

Average Average More thanAverage High Very High

Total (Nos)

1- 50 26.94 12.92 7.65 4.64 4.08 1113

50.1-100 12.92 13.48 8.84 5.49 7.21 1190

100.1-250 19.56 23.60 19.83 14.44 11.91 2420

250.1-750 20.30 30.09 29.43 32.55 26.33 3673

750.1-2000 8.49 11.81 20.92 23.60 26.33 2251

2000.1-5000 6.27 3.26 6.81 8.99 14.11 769

5000.1-15000 1.48 1.31 2.02 3.54 5.33 266

15000.1 & above 0.74 0.63 1.03 2.03 3.45 142

No Spending 3.32 2.90 3.47 4.72 1.25 426

Total (Nos.) 271 3962 5240 2458 319 12250

% to total 2.21 32.34 42.78 20.07 2.60 100.00

Av. Expenditure 196 339 629 1013 1951 609



Table 3.19: Distribution of Respondents (%) acc. to Per Capita Daily Expenditure and City of Exit

City Daily Exp.Class (Rs.) Delhi Mumbai Chennai Kolkata Hyderabad Bangalore

All India (Nos.)

1-50 6.25 11.21 10.36 25.62 5.28 2.50 1113

50.1-100 5.82 14.34 10.24 19.34 7.50 6.17 1190

100.1-250 17.25 23.09 20.04 25.29 20.56 14.45 2420

250.1-750 32.40 26.97 32.02 17.36 33.06 31.60 3673

750.1-2000 23.44 13.51 14.64 3.97 23.33 26.20 2251

2000.1-5000 7.63 5.18 4.06 1.98 9.17 10.60 769

5000.1-15000 1.98 2.66 1.56 0.99 0.83 5.20 266

15000.1 & above 0.73 2.35 0.22 0.00 0.28 2.50 142

No Spending 4.50 0.69 6.85 5.45 0.00 0.77 426

Total (Nos.) 5358 3612 1796 605 360 519 12250

% to total 43.74 29.49 14.66 4.94 2.94 4.24 100.00

Av. Expenditure 574 931 242 139 529 1631 609



Table 3.20: Total Expenditure on Handicrafts acc. to Nationality of Respondents

Total ExpenditureCountry

(Rs. Million) %age Tourists

(No.) Per Capita

Expenditure (Rs.) USA 26.76 18 1331 20103 UK 17.58 12 1223 14373 France 11.98 8 907 13211 Australia 8.97 6 616 14555 Germany 7.91 5 735 10756 Canada 5.45 4 257 21204 UAE 4.97 3 175 28376 Italy 4.85 3 454 10681 Japan 4.44 3 846 5249 Switzerland 4.08 3 208 19634 Singapore 3.72 2 381 9752 Sri Lanka 3.57 2 568 6293 Netherlands 3.24 2 243 13333 Nigeria 2.58 2 103 25073 South Africa 2.47 2 185 13326 Ireland 2.42 2 98 24687 Korea 2.42 2 347 6962 Malaysia 2.15 1 250 8593 Spain 2.08 1 265 7851 China 1.98 1 242 8183 Belgium 1.89 1 117 16156 Denmark 1.61 1 120 13430 Russia 1.58 1 228 6913 Indonesia 1.49 1 129 11569 New Zealand 1.36 1 120 11331 Saudi Arabia 1.35 1 50 26955 Others 16.42 11 2052 8001



All Countries 149.30 100 12250 12187

Table 3.21: Top Ten Spending Nations on Indian Handicrafts ( % of Total)

SL. No. Country NPC Survey

Findings (Oct., 2002)

EPCH@ Data on Exports

(2001-02)

1 USA 18 30 2 UK 12 11 3 France 8 5 4 Australia 6 2 5 Germany 5 10 6 Canada 4 3 7 UAE 3 na 8 Italy 3 4 9 Japan 3 4 10 Switzerland 3 2

Total of 10 countries 62 71 @ Export Promotion Council for Handicrafts, na = Not Available Note : Total excludes UAE


Table 3.22: Country wise Product wise Expenditure on Handicrafts by Respondents (%) Handicraft Product (s)

Country Silk Cotton Wool Other

Text. Clay Bamboo Wood Metal & Jewelery Nat.Fibre Leather Paper

& Pdts Glass Local Raw Matl.

Mix.RawMatl. Others Break up NA Total Exp.

USA 23.14 13.76 7.32 4.88 1.99 0.29 3.48 17.98 0.82 3.50 0.75 0.32 1.70 1.28 4.32 14.46 100.00UK 28.96 9.21 12.74 3.69 1.22 0.25 2.94 18.74 0.30 5.43 0.61 0.43 0.62 0.99 3.37 10.48 100.00France 19.60 20.30 6.60 4.57 1.60 0.37 3.50 25.83 0.34 5.10 1.12 0.34 1.46 0.40 4.84 4.04 100.00Australia 15.28 19.84 4.15 4.64 2.48 0.32 3.77 14.69 0.43 3.80 1.28 0.50 1.13 0.39 7.67 19.61 100.00Germany 21.47 20.76 4.34 2.79 1.80 0.32 4.21 19.43 0.39 9.88 1.24 0.52 0.94 0.52 4.76 6.64 100.00Canada 21.02 17.07 3.44 5.00 0.58 0.36 3.41 29.37 0.15 7.27 0.49 3.16 0.75 0.18 2.41 5.35 100.00UAE 8.86 62.74 1.23 1.18 0.46 0.63 1.39 6.46 0.16 1.45 0.75 0.85 0.28 0.11 9.99 3.47 100.00Italy 30.80 7.71 8.07 3.02 1.46 0.33 6.00 22.79 0.38 7.69 1.82 0.63 1.86 0.12 4.40 2.96 100.00Japan 20.04 9.28 4.96 5.19 2.86 1.60 5.87 23.77 0.55 8.84 1.38 1.17 1.38 0.45 7.47 5.19 100.00Switzerland 22.02 37.57 7.02 1.00 0.42 0.29 1.53 9.75 0.27 5.23 0.37 0.11 0.63 0.24 13.11 0.44 100.00Singapore 21.81 6.41 1.71 3.56 1.93 6.69 2.37 23.01 0.15 12.37 1.99 0.53 1.88 1.14 10.55 3.93 100.00Sri Lanka 44.17 16.38 1.17 2.07 1.19 0.45 2.42 12.84 0.18 4.35 0.95 0.21 3.62 1.06 7.60 1.34 100.00Netherlands 13.62 6.91 3.69 1.23 0.35 0.05 5.60 55.27 0.13 5.48 0.73 0.24 1.16 0.35 4.08 1.11 100.00Nigeria 39.02 30.51 0.82 0.36 0.22 0.01 0.74 17.50 0.08 8.39 0.16 0.17 0.22 0.00 1.34 0.46 100.00South Africa 53.38 4.87 1.98 0.92 1.64 0.21 2.60 13.20 0.76 5.13 0.81 0.61 0.66 0.64 3.22 9.37 100.00Ireland 17.79 4.05 9.40 1.00 0.39 6.39 11.36 16.23 0.12 1.40 10.29 0.33 0.89 9.42 10.59 0.33 100.00Korea 11.59 23.88 2.39 5.37 1.29 0.90 5.84 15.67 0.50 7.04 2.07 0.81 2.38 1.13 9.82 9.31 100.00Malaysia 19.72 13.26 3.68 2.51 0.54 0.24 4.20 24.08 0.30 5.12 0.90 0.99 1.91 3.12 6.11 13.33 100.00Spain 26.94 12.40 9.70 2.23 2.56 0.86 4.87 21.36 0.29 6.23 2.07 0.35 2.43 0.33 4.96 2.43 100.00China 13.49 5.45 1.84 4.31 1.62 1.18 3.47 19.08 1.02 9.29 0.94 1.25 2.39 2.84 4.81 27.01 100.00Belgium 47.40 6.31 3.44 1.90 5.77 0.35 2.68 7.54 0.52 1.96 1.83 0.20 0.37 0.03 19.19 0.51 100.00Denmark 26.27 9.03 13.52 1.82 1.60 0.15 5.63 16.38 0.33 4.55 0.30 0.18 0.69 0.45 19.09 0.00 100.00Russia 15.02 12.11 7.17 2.12 1.80 0.13 2.53 34.06 0.15 10.09 0.83 0.41 1.37 0.26 4.98 6.98 100.00Indonesia 8.37 13.39 2.46 13.97 1.36 0.25 4.30 24.48 0.41 3.37 0.29 0.68 1.08 0.94 5.69 18.98 100.00New Zealand 40.89 5.63 8.08 2.57 2.36 0.37 3.89 13.96 0.14 5.79 4.30 0.55 1.68 0.61 1.54 7.65 100.00Saudi Arabia 35.18 9.23 1.15 1.32 0.18 0.00 8.98 17.26 0.07 16.68 0.52 0.95 0.59 0.81 7.06 0.02 100.00



Table 3.23: Currencies Used by Respondent Tourists for Purchase of Handicraft Products

Currency Used (Number of purchases) Products

INR US $ Pound Sterling Euro Credit

Card Other

Foreign Currencies

Total

Silk 4200 270 31 39 197 35 4772

Cotton 4058 185 21 28 151 21 4464

Wool 1740 86 12 8 54 15 1915

Others 1175 94 7 25 51 4 1356

Clay 1505 78 2 18 55 7 1665

Bamboo 764 34 2 4 31 2 837

Wood 2446 116 11 19 144 92 2828

Metal & Jewelry 4418 232 31 41 182 64 4968

Natural Fiber 665 34 2 1 18 6 726

Leather 3018 122 17 17 99 14 3287 Paper & Paper products 1307 88 4 22 35 13 1469

Glass 894 20 1 2 36 3 956

Local raw material 824 46 4 17 40 9 940 Mixture of raw materials 460 18 2 7 41 11 539

Others 2866 53 6 37 136 106 3204

Total 30340 1476 153 285 1270 402 33926



CHAPTER IV

MACRO ECONOMIC IMPLICATIONS As already mentioned earlier, the foreign tourists contacted during the Survey

had spent about Rs. 12,187 per person. For arriving at expenditure on

handicrafts by the total foreign tourists coming to India we relied on the data on

foreign tourists’ arrival in India of Market Research Division of the Department of

Tourism, Govt. of India. According to the latest data available for the year 2001,

India drew 2.54 million foreign tourists in 2001, which was lower than the

previous year’s 2.65 million. Country-wise, during 2001 the highest number of

tourists came from U.K. (16%), followed by USA (13%), Sri Lanka (4.4%), France

(4%), Canada (3.5%), Japan and Germany (both 3.2%). In terms of Survey

findings (Oct., 2002), the maximum number of tourists contacted is from the USA

(10.87%), while U.K. is the close second (9.98%). France, Japan, Germany and

Sri Lanka, which were among the top countries in terms of actual inflow during

2001, are also occupying the top most positions in the respondents’ list as per

the present Survey data (Table 2.5).

The per capita expenditure on handicrafts, as found from the Survey data, when

multiplied by the actual number of tourists visiting India every year would yield

the total annual expenditure on handicrafts by all the foreign tourists. However,

while the tourists’ arrival data are only up to 2001, per capita expenditure relates

to the period October, 2002, when the survey was conducted. Keeping this in

view, the per capita expenditure data for (Oct.) 2002 has been adjusted to the

level of 2001 for inflation between 2001 and 2002 (Oct. to Oct.) by the Wholesale

Price Index (WPI) for all commodities (Table 4.1). The price adjusted data on per

capita expenditure (Oct., 2001) have been multiplied by the number of tourists to



estimate the total expenditure on handicrafts. Table 4.2 presents the total as well

country-wise total expenses on handicrafts. For the sake of brevity, estimates for

only leading 26 countries (in terms of number of tourists and expenditure on

handicrafts) have been arrived at.

As can be seen from this table, total expenditure on handicrafts by all the foreign

tourists has been estimated at Rs. 29,851.54 million in 2001. This constitutes

about 18% of the total estimated value of production of handicraft items in India

in 2001-02 (Table 4.3). Data from Export Promotion Council for Handicrafts

(EPCH) indicate that the export of handicrafts from India (excluding hand knotted

carpets) had constituted about Rs. 67695 million in 2001-02 (Table 4.4). The

estimated total expenditure on handicrafts by foreign tourists thus forms about

44% of the total handicrafts exports (excluding hand knotted carpets) from India

during the year 2001-02. Since the amount is spent by foreign tourists while in

India, this can be considered as deemed export of handicrafts.

According to Tourist Statistics 2001 (Deptt. of Tourism), in 2001, India had

earned foreign exchange to the tune of Rs. 1,43,440 million from the tourism

sector alone. Thus the foreign tourists’ expenses on handicrafts in India formed

about 21% of the total foreign exchange earnings from tourism.

Table 4.1 : Movement of WPI : Oct.2001 to Oct. 2002

Period WPI Index

October, 2001 162.5

October, 2002 167.3

Change in Index 4.8 Source: Monthly Review of the Indian Economy CMIE, Dec., 2002



Table 4.2: Estimate of Total Expenditure on Handicrafts by Foreign Tourists

Tourists (No.)

Per Capita Expr.(Rs.)

Per Capita Expr.(Rs.)

Total Expr. (Rs. Million) Country

2001 Oct. 2002 Oct. 2001 2001 (1) (2) (3) (4) (5) [col. 2 x col.4]

USA 329147 20103 19526 6427.00 UK 405472 14373 13961 5660.64 France 102434 13211 12832 1314.43 Australia 52691 14555 14137 744.91 Germany 102434 10756 10447 1070.17 Canada 88600 21204 20596 1824.77 UAE 21483 28376 27562 592.11 Italy 41351 10681 10375 429.00 Japan 80634 5249 5098 411.10 Switzerland 25308 19634 19071 482.64 Singapore 42824 9752 9472 405.64 Sri Lanka 112813 6293 6112 689.56 Netherlands 42368 13333 12950 548.69 Nigeria 7539 25073 24354 183.60 South Africa 21162 13326 12944 273.91 Ireland 6136 24687 23979 147.13 Korea 29685 6962 6762 200.74 Malaysia 57869 8593 8346 483.00 Spain 23073 7851 7626 175.95 China 13901 8183 7948 110.49 Belgium 18851 16156 15692 295.82 Denmark 14531 13430 13045 189.55 Russia 24831 6913 6715 166.73 Indonesia 7767 11569 11237 87.28 New Zealand 11700 11331 11006 128.77 Saudi Arabia 9851 26955 26182 257.92 Others 842827 8001 7771 6549.98 Total 2537282 - - 29851.54 Source: Col. 2 = Deptt. Of Tourism, GOI; Col. 3 = NPC Survey Note: Figures in col. 4 have been arrived at from col. 3 after adjusting for inflation



Table 4.3 : Turnover of Indian Handicrafts Industry

Year Estimated Production (Rs. Million)

1999-2000 1,39,155.60

2000-2001 1,63,404.40

2001-2002 1,63,200.00 Source: Development Commissioner (Handicrafts)


Table 4.4: Export of Handicrafts@ from India : 1992-93 to 2001-02 (Rs. Crores)

@ Excludes Handknotted Carpets, P = Provisional

ITEMS 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 (P)

Artmetalware 480.05 680.20 1022.25 1205.95 1370.60 1214.6 1324.16 1497.18 1778.10 1758.90

Woodware 68.20 98.50 136.90 155.65 188.45 221.82 286.04 348.95 434.44 431.88

Handprinted Textiles & Scarves 196.50 354.25 475.12 580.45 695.17 838.24 1033.98 1158.05 1276.75 1221.59

Embroidered & Crochetted Goods

42.70 70.45 102.20 115.30 131.10 990.75 1159.42 1584.36 1964.78 1931.97

Shawls as Artware 28.15 32.95 36.90 39.75 36.43 17.08 18.18 21.50 27.20 27.01

Zari & Zari Goods 42.65 48.90 57.95 70.95 79.78 70.34 74.95 83.52 142.32 134.04

Imitation Jewellery 19.05 28.75 36.88 40.20 44.13 98.03 104.10 113.64 121.68 117.53

Misc. Handicrafts 534.70 656.00 767.70 812.10 1022.92 902.32 1057.57 1116.40 1210.08 1146.58

TOTAL 1412.00 1970.00 2635.90 3020.35 3568.58 4353.18 5058.40 5923.60 6955.35 6769.50

Source: Export Promotion Council for Handicrafts




ANNEXUREANNEXURE Questionnaire for Constructing UNESCO Crafts/ Tourism Index for India

Amount spent in India on Handicraft products during the current trip

(excluding company or business purchases)

SL. No. PRODUCTS QUANTITY AMOUNT

SPENT CURRENCY USED

(Relates to amount spent) Silk Cotton Wool

1.

Textiles

Others 2. Clay (ceramics, pottery) 3. Bamboo, rattan 4. Wood 5. Metal,Jewellery 6. Natural Fibre (baskets) 7. Leather 8. Paper & paper products 9. Glass 10. Local raw materials

(indigenous)

11. Mixture of raw materials or new materials

12. Others (traditional foods, cosmetics etc.)

OTAL T The Interviewee: Nationality or Country of Residence: No. of days spent in India: Age: < 25 25/34 35/44 45/54 55/64 65 & above Sex : Male Female Profession: Service Business Industry Agriculture Students Others A nnual Family Income: Below Average Average More than Average High Very High The Interviewer:

Date: Place of Interview: Airport

Hotel Market

City: Delhi Mumbai Chennai Kolkata Hyderabad Bangalore Signature

04 fte handicrafts

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