An empirical study on orissa tourism opportunities and challenges

110
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:

Transcript of An empirical study on orissa tourism opportunities and challenges

Page 1: 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

BATCH: PGP/SS/2007-09

Page 2: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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.

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

Page 3: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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 ALUMNI ID NO.: DS79-M-962iii

Page 4: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

THESIS TOPIC APPROVAL LETTER SENT OVER MAIL

From: Thesis <[email protected]>Date: Wed, Nov 18, 2009 at 3:33 AMSubject: Thesis Topic Approval (M) SS/ 2007-09To: [email protected]

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 -962You are required to correspond with us by sending the thesis final draft to Prof. Dipti Sharma [email protected]   Ph-0124-3917413.  Regards,

Sumanta Sharma Dean (Projects)The Indian Institute of Planning and [email protected]: 0124 – 3917401,413,414,415

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

Page 5: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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: [email protected]

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

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

Page 6: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

also understood that the government of Orissa has not been very successful in attracting

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.

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

Page 7: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

Orissa. Is the system is properly positioned in this highly competitive world. What all

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

Page 8: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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 [email protected]

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

Page 9: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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.

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

Page 10: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

Page 11: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

normal with the tourist arrival figure marginally increasing from 2.3mn in 1997 to 2.5mn

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

1

Page 12: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

2

Page 13: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

3

Page 14: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

4

Page 15: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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:

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

5

Page 16: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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:

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

6

Page 17: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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!

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

7

Page 18: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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.

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

8

Page 19: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

Elements of Tourism Industry

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

9

Page 20: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

(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 -

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

10

Page 21: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

(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

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

11

Page 22: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

12

Page 23: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

13

Page 24: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

challenges which are negatively dictating and adversely affecting its competitiveness.

These challenges can be classified into 3 broad categories:

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

14

Page 25: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

15

Page 26: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

16

Page 27: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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-

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

17

Page 28: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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.

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

18

Page 29: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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.

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

19

Page 30: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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.

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

20

Page 31: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

21

Page 32: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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:

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

22

Page 33: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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.

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

23

Page 34: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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.

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

24

Page 35: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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:

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

25

Page 36: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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.

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

26

Page 37: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

27

Page 38: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

28

Page 39: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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:

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

29

Page 40: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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:

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

30

Page 41: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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 –

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

31

Page 42: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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 tourismEcotourismGolf

SightseeingBeach holidayCruise

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

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

32

Page 43: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

Nesters

DINKS SINKS Early/Active

Retirees

Boomers Youth

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'.

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

33

Page 44: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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.

Purpose of visiting Uganda% of tourists interviewed stating this 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

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

34

Page 45: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

35

Page 46: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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.

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

36

Page 47: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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.

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

37

Page 48: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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:

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

38

Page 49: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

39

Page 50: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

40

Page 51: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

41

Page 52: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

42

Page 53: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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:

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

43

Page 54: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

44

Page 55: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

45

Page 56: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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)

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

46

Page 57: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

            - 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:

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

47

Page 58: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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 Characteristics

Holiday Tourists Business Tourists Common Interests Tourist

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

Seasonality High-Marketing Mix can Assist in Spreading Demand Levels

No Seasonality Partial Seasonality

Length of Stay Could be Influences by promotion/comm.

Normally short. Not prolonged by Advertising.

Prefer Long Stay cost effectiveness helps.

Mode of TPT. Varied Mode (s) of TPT. time spent on way is par of holiday

Air-plane Invariably

the Cheapest mode of transport

Hotel Accommodation

Yes, Normally

In-expensive hotels

yes Normally

Expensive hotels

Only to a very limited degree

Requires entertainment

Very much so yes to a Ltd. Degree

No.

Price Sensitivity Very Sensitive (High price elasticity of demand)

Low price Elasticity of

Sensitive

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

48

Page 59: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

demand

Role of Advtg./Mktg. Comm.

Very Important Rather Limited Quite Important Particularly sales promotions

Impotence of tour package (s)

Of great interest and demand

Of no appeal at all. Limited Appeal

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:

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

49

Page 60: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

50

Page 61: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

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

51

Page 62: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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.

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

52

Page 63: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

PRIMARY FINDINGS AND ANALYSIS

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

How frequently do you Travel

Half Yearly, 55%

Yearly, 35%

2-3 Years, 10%

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

respondents are half yearly travel.

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

53

Page 64: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

Consider a travel Agency

Yes, 70%

No, 30%

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

their trip.

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

54

Page 65: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

trip?

Consider a travel Agency

Always, 40%

Sometimes, 55%

Never, 5%

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.

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

55

Page 66: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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.

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.

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

56

Scale of Satisfaction

1

2

3

4

5

7% 20% 35% 27% 11%

0

1

2

3

4

5

6

1 2 3 4 5

Page 67: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

tour packages.

Necessties in tour package

30%

15%

25%

7% 9%14%

0%5%

10%15%20%25%30%35%

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.

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

57

Page 68: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

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

1

2

3

4

5

2% 24% 29% 35%10%

0

1

2

3

4

5

6

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.

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

58

Page 69: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

Q7. Please tell me, will you change your travel destination if an attractive package

offered to you?

Change your travel destination

Yes , 70%

No, 30%

The above mentioned graph shows that 70% respondents change their travel destination if

an attractive package offered to them.

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

59

Page 70: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

Q8. Please tell me the duration of a tour package availed by you?

Duration of Package

3 days, 25%

7 days, 40%

2 weeks, 35%

The above mentioned graph shows that 2 weeks duration of tour package availed by 35%

respondents and 7 days duration of tour package availed by 40% respondents.

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

60

Page 71: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

Q9. Please tell me your approximate monthly personal income.

Monthly Personal Income

15000-20000, 35%

20001-30000, 45%

More than 30000, 20%

The above mentioned graph shows that 45% respondent’s personal monthly income are

20001-30000 and 35% respondent’s personal monthly income are 15000-20000.

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

61

Page 72: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

RECOMMEDNATION

There are many tourist places not only in Orissa, but also in various states of the country

and even in abroad which have remained beyond the eyes of the tourists. So apart from

the magazines and newspapers dealing with destination promotion the role of the

Tourism Fair can not be ruled out. In this regard to make the people of Orissa aware

about the various tourist places of the state, other states of the country and even beyond

the country, Orissa Tourism and Ashlee publications have jointly come forward. It was

the right beginning when Ashoka Kumar Mahapatra, the editor-in-chief of Traveller's

Orissa, published from Bhubaneswar and Travel Vision, published from Delhi as well as

the Managing Director of Ashlee publications put up his innovative idea for organising a

Tourism Fair in 2002 for the first time in Orissa. The fair was held by Ashlee

publications in association with Orissa Tourism from 28th Nov. to 30 th Nov. 2002 at

Bhubaneswar. Inaugurated by Orissa Tourism Minister A.U. Singh Deo this three days

fair was also attended by Tourism Secretary Shri R. Balkrishnan and Tourism Director,

Shri Gopinath Mohanty. The Orissa branch of India Tourism, Orissa Tourism, Andhra

Pradesh Tourism, Uttaranchal Tourism and Tamil Nadu Tourism had opened their stalls

there. The main attraction of the fair was the participation of International tourism like

Malaysia, Mauritius and Srilanka. Apart from this the tour operaters, travel agencies and

tourism institutions had also participated. The stalls were nicely designed to catch the

eyes of visitors who mostly visited the fair out of a sense of curiosity. Bupesh Kumar, the

representative of Malaysia Tourism felt that people suffered from a wrong notion i.e.

travelling outside India was expensive. He elaborated hat a trip to Malaysia could be

possible for only Rs.17,000.

The fair gathered a good response of crowd and Orissa could be better projected as a

major destination through such fairs, said Ashok Mohapatra. In fact both Orissa Tourism

and Ashlee publications deserve a pat on their backs for organising this event for the first

time. Getting good response during the last fair Ashlee publications is going to organize

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

62

Page 73: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

the fair this year. The fair is scheduled to be held from 23rd to 25th January at B.D.A.

NICO PARK, Bhubaneswar while the Tourism Department of Orissa, Karnataka, Andhra

Pradesh, Tamil Nadu and Jharkhand have given their consent to patronise the tourism

department of Uttaranchal, Chhatisgarh, Pondichery along with Dubai. Singapore,

Malaysia, Mauritius and Srilanka have confirmed their participation. Besides 150 number

of travel agencies throughout the country will be present during the fair for business

interaction. With this, Food festival, cultural programme, Sand sculpture will be added

attraction in the fair. Entrance ticket to NICO Park will be provided in concessional rate

to enjoy the park with fair, says Ashok Mahapatra. Introducing the fair for the first of its

kind in the state Sri Mohapatra hopes to get more participation and support from all

concerned.

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

63

Page 74: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

CONCLUSION & IMPLICATIONS

Orissa is home to a rich culture and heritage. There are a number of monuments and

destinations in Orissa that make the state one of the popular tourist destinations in India.

Besides the natural beauty, there are a number of religious (sacred) places in Orissa that

are closely related with Hindusm, Buddhism and Jainism. The grand architecture and

sculpture of Jagannath temple, Lingraja temple, Mukteshwar temple and the Sun temple

leave the visitors spellbound. Events like the holy Jagannath Rath yatra in Puri attract a

large number of devotees every year. In addition to the above mentioned tourist

attractions there are many other popular spots in Orissa, which are worth visiting!   Orissa

is an enchanting land of sea, sand and fabulous temples along the long coastal stretch of

the Bay of Bengal. This state has its mention in the epic Mahabharata and attracts tourists

with its gorgeous beaches and grand architectural splendors. The natural splendor of this

land with affluent culture and heritage is simply awe-inspiring.

The landscape of Orissa is dotted with a large number of temples. The temples of Orissa

conform to the Indo Aryan Nagara style of architecture, with distinctive features specific

to this region. The best known of these are the Lingaraja temple at Bhubaneshwar,

Jagannath Temple at Puri and the Sun Temple at Konark. The temples of Orissa exhibit a

majestic grandeur. An Oriya temple (deula) usually consists of a sanctum, one or several

front porches (jagamohana) usually with pyramidal roofs, a dancing hall (nata mandir)

and a hall of offerings (bhog mandir). 'The Lingaraj temple at Bhubaneshwar boasts of a

150-foot (46 m) high deul while the Jagannath Temple at Puri is about 200 feet (61 m)

high and it dominates the skyline of the town. Only a portion of the Sun Temple

at Konark, the largest of the temples of the Golden triangle exists today, and it is still

staggering in size. It stands out as a masterpiece in Orissa architecture. Orissa is also well

known as a Buddhist and Jain pilgrimage destination. North-east of Cuttack, about 10 km

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

64

Page 75: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

from Bhubaneshwar, there are Buddhist relics and ruins at the three hilltop complexes

of Udayagiri and Khandagiri Caves, which still bear witness to Buddhism's fruitful tryst

with this region until well into the 13th century.

Orissa's varying topography – from the wooded Eastern Ghats to the fertile river basin –

has proven ideal for evolution of compact and unique ecosystems. Thereby creating such

treasure troves of flora and fauna that even seem inviting to many migratory species of

birds and reptiles. Bhitar Kanika National Park is famous for its second largest mangrove

ecosystem. The bird sanctuary in Chilika (Asia's biggest brackish water lake) and the

tiger reserve and waterfalls in Simlipal National Park are integral part of any eco tours in

Orissa, arranged by Tourism of Orissa.

The Gharial Sanctuary at Tikarpada and the Olive Ridley Sea Turtles in Gahirmatha

turtle sanctuary also feature on the list of avid nature watchers. The city wildlife

sanctuaries of Chandaka and Nandan Kanan are a must visit for the lessons they teach is

conservation and revitalization of species from the brink of extinction.

Orissa is blessed with around 500 km long coastline and has some of the most beautiful

beaches in the world. Chilika, Asia's largest brackish water lake, not only provides a

haven for millions of birds, but is also one of the few places in India where one can view

dolphins. The lush green forest cover of Orissa plays host to a wide variety of flora and

fauna, including the famed Royal Bengal Tiger. Amidst the picturesque hills and valleys

nestle a number of breathtaking waterfalls and rivulets that attract visitors from all over.

Orissa beaches include Puri, Gopalpur-on-Sea,Chandipur, Ramachandi Beach, Balighai

Beach, Astarang Beach, Paradeep Beach. The famous Shiva Temple is near Dhenkanal.

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

65

Page 76: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

BIBLIOGRAPHY

Becken, S., Simmons, D., and Frampton, C. (2003). Segmenting tourists by their

travel patterns for insights into achieving energy efficiency. Journal of Travel

Research, 42(1): 48-56.

Bigne, J.E., and Andreu, L. (2004). Emotions in segmentation – An empirical study.

Annals of Tourism Research, 31(3): 682-696.

DCMS, Tourism Summit - DCMS report on the conclusions. April 2000. Available in

full at http://www.culture.gov.uk/tourism/tour_conclusion.html

Dolnicar, S. (2004). Insights into sustainable tourists in Austria: A data-based a priori

segmentation approach. Journal of Sustainable Tourism, 2(3): 209-218.

Hvenegaard, G.T. (2002). Using tourist typologies for ecotourism research. Journal of

Ecotourism, 1(1), 7-18.

Kerstetter, D.L., Hou, J., and Lin, C. (2004). Profiling Taiwanese ecotourists using a

behavioral approach. Tourism Management, 25(2004): 491-498.

Outlook – Travellor

Property Observer

www.tourisminindia.com/

www.incredibleindia.org/

tourism.gov.in

www.orissatourism.gov.in/

www.orissa-tourism.com/

www.orissatourism.org/

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

66

Page 77: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

COPY OF QUESTIONNAIRE

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

(a) Half yearly (b) Yearly (c) 2-3 Years

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

(a) Yes (b) No

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

(a) Always (b) Sometimes (c) Never

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.

(a) 5 (Highly Satisfied) (b) 4 (c) 3

(d) 2 (e) 1 (Highly Dissatisfied)

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

tour packages.

(a) Hotel (b) Recreation (c) Transportation

(d) Guide (e) Medical Facility (f) Food

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.

(a) 5 (Completely Influence) (b) 4 (c) 3

(d) 2 (e) 1 (Not at all influence)

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

67

Page 78: An empirical study on orissa tourism opportunities and challenges

The Indian Institute of Planning & Management, New Delhi

Q7. Please tell me, will you change your travel destination if an attractive package

offered to you?

(a) Yes (b) No

Q8. Please tell me the duration of a tour package availed by you?

(a) 7 Days (b) 2 Weeks (c) 3 Days

Q9. Please tell me your approximate monthly personal income.

(a) 15000-20000 (b) 20001-30000 (c) More than 30000

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

68