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CENTER FOR BUSINESS ADMINISTRATION

TOURISM ORGANIZATIONS

Objectives and Role of ITDC, ASI, TFCI; Ministries of Railways and Civil

aviation in Develo ment

SUBJECT: HOSPITALITY AND TOURISM MANAGEMENT

SUBMITTED BY:

MD IRFAN AHMAD

CUJ/1/2009/MBA/15

SUBMITTED TO:

C NAGAPAVAN SIR

ASSISTANT PROFESSOR

CENTRAL UNIVERSITY OF JHARKHAND

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INTRODUCTION

The development of any industry needs an organisation to plan, develop, and monitor its

progress and growth and the tourism industry is no exception. Organisations are formed when

groups of people come together for a common purpose or interest .They work together to

achieve the purpose i.e. the aims & objectives which the organisation has laid down. These

can be best achieve when there is unified action through a formal structuring of its members

so that the organisation can work efficiently & effectively as a team & develop the industry.

Tourism organisations thus play an important role in marketing destination and managing

countrys tourism industry.

NEED FOR TOURISM ORGANISATIONS

Tourism organisations are essential for the following reasons:

Differentsectors of the industry are interdependent on each other. For example, for a Tour to be successful, many sectors such as transport , accommodation, transfers and

entertainment need to work in harmony.

Many of the vendors/operators are small scale operators and need an association todefend and protect their rights.

The tourist market is fragmented and organisations help in reaching the potentialcustomers.

Destination can be located far apart, especially in case of international tourism. Tourism has to develop in a planned manner if it is to remain sustainable. Factors like importance of tourism in generating foreign exchange, employment

prospects, national interests and at times the stage of development have determined

the need for such organisations and accordingly influenced their growth and

functions.

VARIOUS TOURISM ORGANISATIONS IN INDIA

INDIAN TOURISM DEVELOPMENT CORPORATION (ITDC)

ITDC came into existence in October 1966 and has been the prime mover in the progressive

development, promotion and expansion of tourism in the country. Broadly, the main

objectives of the Corporation are:

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OBJECTIVES OF ITDC

1. To construct, take over and manage existing hotels and market hotels, Beach Resorts,

Travellers' Lodges/Restaurants.

2. To provide transport, entertainment, shopping and conventional services.

3. To produce, distribute tourist publicity material.

4. To render consultancy-cum-managerial services in India and abroad.

5. To carry on the business as Full-Fledged Money Changers (FFMC), restricted money

changers etc.

6.To provide innovating, dependable and value for money solutions to the needs of tourism

development and engineering industry including providing consultancy and project

implementation.

Operations of ITDC: -

Presently ITDC has the following business groups:

1. Ashoka Group of Hotels (accommodation and cultural division).

2. Ashoka Travel & Tours (travel trade division).

3. Duty and Tax Free Shops (shopping division).

1. Ashoka Groups of Hotels: - The Ashoka chain is the largest hotel chain in public sector

undertaking. Originally it was providing accommodation at those places where the private

sector afraid to invest in the lodging sector. Now it runs hotels all over the country. ITDC

hotels industry ranges from Five Star to lodge. It has thirty-eight properties at twenty-eight

permanent tourist places. These properties are divided into elite, classic and comfort hotels as

Samrat in New Delhi, Kaniska in New Delhi, Ashoka in Jaipur and Traveler Lodge in

Manali.

2. Ashoka Travel & Tours: - ITDC in house travel agency was established in1983. It offers

the number of packages towards both domestic and international. It has the largest fleet of

cars and coaches. It also promotes domestic tourism and launched number of packages which

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Pilgrim Programs and Buddhist are the latest packages in collaboration with railways. The in-

house travel agencies also handle conference and inbound tours.

3. Duty and Tax Free Shops: - The Corporation to facilitate airport shopping has created

thirty-two duty free shops in the arrival and departure lounges at Delhi, Mumbai, Kolkata,

Chennai and Goa. Tax free shops are at Ashoka hotel, New Delhi. This trade is consistency

providing revenue to the corporation. Duty free shops have contributed 38% of the net profit

of ITDC. The Govt. has decided to operate ten more duty free shops in near future.

ROLE OF ITDC IN TOURISM & TRAVEL TRADE: -

There is no doubt, that ITDC is at the four front of Indian Tourism which elaborate

infrastructure of hotels, beach resorts, travel agencies, car rental services, convention and

conference facility across length and breadth of the country. During the recent years, the

corporation has entered into the joint venture agreement with several State Govts. to set up

mid-market over budget hotel. It has also offered tour packages in collaboration with Air

India, State Tourism Corporation and Indian Railways as Enjoy India for domestic tourist

and Discover India pilgrim tours and Buddhist tours etc.

Role of ITDC can be better understood in the following lines:

1. Help India as a tourist destination.

2. Help in the development of infrastructure.

3. Helps in the promotion of domestic tourism in collaboration with railway.

4. Provides consultancy services.

5. Provides inbound tourist traffic.

6. Provides training facilities.

7. Work as a full fledge money changers (FFMC).

8. Provide transport, entertainment, duty free shopping, and convention services.

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ARCHAEOLOGICAL SURVEY OF INDIA (ASI)

The archaeological survey of India (ASI), under the ministry of culture, is the premier

organisation for the archaeological researches and the protection of culture heritage of nation.

Objective of ASI

The objective of the ASI is to maintain the ancient monuments, archaeological sites, and

remains of national importance. Besides this, it regulates all archaeological activities in the

country. For the maintenance of ancient monuments and archaeological sites and remains of

national importance, the entire country is divided in to 24 circles.

Role of ASI

The ASI have a large work force of trained archaeologists, conservators, epigraphists,architects and scientists for conducting archaeological research through its circles,

museums, excavations, branches, prehistory branch, epigraphy branches, science

branch, horticulture branch, building survey project, temple survey projects, and

underwater archaeology wing.

There are at present more than 3650 ancient monuments and archaeological sites andremains of national importance. These monuments belong to different periods,ranging from prehistoric period to the colonial period and are located in different

geographical setting. They include temple, mosque, tombs, churches, cemeteries,

forts, palaces, step wells, rock-cut caves, and secular architecture as well as ancient

mounds and sites, which represent the remains of ancient habitation.

These monuments and sites are maintained and preserved through the various circlesof the ASI spread all over the country. The circles look after the research on these

monuments and conservation activities; the science branch , with its headquarter at

Dehradun, carries out chemical preservation, and the horticulture branch, with its head

quarter at Agra, is entrusted with laying out gardens and environmental development.

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TOURISM FINANCE CORPORATION OF INDIA (TFCI)

The Government of India had, pursuant to the recommendations of the National Committee

on Tourism viz Yunus Committee set up under the aegis of Planning Commission, decided in

1988, to promote a separate All-India Financial Institution for providing financial assistance

to tourism-related activities/projects. In accordance with the above decision, the IFCI Ltd.

along with other All-India Financial/Investment Institutions and Nationalised Banks

promoted a Public Limited Company under the name of "Tourism Finance Corporation of

India Ltd. (TFCI)" to function as a specialised All-India Development Financial Institution

to cater to the financial needs of tourism industry. TFCI was incorporated as a Public Limited

Company under the Companies Act, 1956 on 27th January 1989 and became operational with

effect from 1st February 1989 on receipt of Certificate of the Commencement of Business

from the Registrar of Companies. TFCI has been notified as a Public Financial Institution

under section 4A of the Companies Act, 1956, vide Notification No S.O 7(E) dated the 3rd

January 1990 issued by the Ministry of Industry, Department of Company Affairs. TFCI's

Registered office is situated at 13th Floor, IFCI Tower, 61, Nehru Place, New Delhi - 110

019.

TFCI

Objective

TFCI provides financial assistance to enterprises for setting up and/or development of

tourism-related projects, facilities and services, such as:

Hotels

Restaurants

Holiday Resorts

Amusement Parks

Multiplexes and Entertainment Centres

Education and Sports

Safari Parks

Rope-ways

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Cultural Centres

Convention Halls

Transport

Travel and Tour Operating Agencies

Air Service

Tourism Emporia

Sports Facilities etc.

Forms of Financial Assistance

Rupee Loan

Underwriting of public issues of shares/debentures and direct subscription to such securities

Guarantee of deferred payments and credit raised abroad.

Equipment Finance

Equipment Leasing

Assistance under Suppliers' Credit

Working-Capital Financing

Takeover Financing

Advances against Credit-Card Receivables

Role of TFCI

TFCI provides financial assistance to enterprises, for setting up and/ or developmentof tourism related activities, facilities and services, which inter-alia include hotels,

restaurants, holiday resorts, amusement parks and complexes for entertainment,

education and sports, safari parks, rope-ways cultural centers, convention halls, all

forms of transport industry, air-taxis, travel and tour operating agencies, tourism

emporia, sports facilities etc.

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TFCI also co-ordinates and formulates guidelines and policies related to financing ofsuch projects.

As a developmental role, TFCI organizes seminars /participates in tourism-relatedactivities organized by Ministry of Tourism, Government of India and by the trade

bodies /associations etc.

TFCI provides all forms of financial assistance for new, expansion, diversification/modernisation projects in tourism industry and/ related activities, facilities and

services.

TFCI follows RBI guidelines with regard to Individual and Group exposure norms inrelation to the net owned funds of TFCI. Appraisal criteria for processing of tourism

related projects with regard to Promoters' contribution, Debt-Equity Norms, Average

Room Occupancy levels and Rates are constantly reviewed by TFCI Board and the

guidelines are formulated accordingly.

For meeting the fund requirements thereof as well as towards its various otherbusiness operations, TFCI raises resources directly from the market (at market-related

interest rates) from retail as well as institutional investors - both within India and

abroad, through a variety of investor-friendly instruments. TFCI's resource raising

efforts have brought it closer to all sections of society.

TFCI has been mobilizing resources through a combination of debt and equity. Itmade a public issue of equity shares in 1994. TFCI's shares are National Stock

Exchange, Mumbai, Delhi, Ahmedabad and Madras stock exchanges and

dematerialised with National Securities Depositories Ltd. (NSDL and Central

Securities Depository Services (I) Ltd. (CSDSL).or Central Depository Services

(India) Ltd. (CSDSL). CSDSL depositories where the securities of an investor are

held in electronic form through the medium of Depository Participants (DPs). This

facility obviates the difficulties of loss, signing of transfer deeds, delay in transfer,

etc. and offers scope for paperless trading.

Besides the paid up capital of Rs. 67.42 crores and the internal generations, TFCImeets its requirements of funds by way of borrowings viz. private placements of

bonds, line of credit from institutions /banks, certificate of deposit etc. at competitive

rates with a view to keep the cost of funds at minimum level.

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RAILWAY & TOURISM

In Indian railways operate certain reasonably priced tour packages across the nation for

domestic as well as foreign tourists. These tour packages are categorised under the Bharat

Darshan plan with wide ranging destinations and tourism packages. Tourism train also play

very important role in varied parts of the country to introduce, reintroduce, live and relive the

real, ancient India, its heritage and culture. Indian railways has already introduce exotic and

high end trains for the luxury market.

Indian Railway Catering and Tourism Corporation Ltd.(IRCTC) has been set up by the

Ministry of Railways with the basic purpose of hiving off entire catering and tourism activity

of the railways to the new Corporation so as to professionalise and upgrade these services

with public-private participation. Rail based Tourism in India will be the specific vehicle for

achieving high growth in coordination with state agencies, tour operators, travel agents and

the hospitality industry

. Objective of IRCTC

(1) To be a customer friendly company through constant innovation, technology driven and

human resource development.

(2) Optimise resources, increase manpower productivity through quality product vending and

innovative marketing strategies.

(3) Upgrade and consolidate catering services in the organized sector.

(4) Expand areas of core competencies, enhance business opportunities through efficient

public - private partnerships to maximise generation of resources.

(5) Imbibe strong and ethical work culture through teamwork, build and reposition Indian

Railways in the emerging services sector.

(6) Evolve high standards of business ethics, quality management and effective cost control

measures.

(7) Concern for the environment and heritage.

ROLE OF IRCTC

Running of Special Train, Special Charters / Coach and promotion of Value added

tours,

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Railway Tourism has seen excellent growth in India Right from IRCTC's inception, we have

undertaken dynamic marketing strategy with major tour operators and State Tourism as our

partners for providing exclusive tour packages across the country. At present IRCTC is

providing following Tourism services across India :

Buddhist Circui t Special Train

IRCTC has designed a train for the Buddhist Circuit keeping in mind the profile of Buddhist

tourists. It covers important sites connected to life of Buddha and Agra : Bodh Gaya , Sarnath

, Kushinagar , Lumbini , Shravasti , Rajgir , Nalanda. The train offers comprehensive on

board and off board services comprising of catering, housekeeping, hotel accommodation,

road transport, sightseeing, trained tourist guides, security, medical facilities, insurance etc.all inclusive in the package. This train won the National Tourism Award in Feb., 2009

Bharat DarshanVi l lage on Wheels

IRCTC is operating Bharat Darshan Village on Wheels Train for Budget Traveller @

Rs 500/- per day (all inclusive package). The package includes Train journey,

accommodation, road transport, site seeing, meals etc. The itineraries range from 7 to 20

days covering major tourist and religious places across India .

Rail Tour Packages

IRCTC offers all Inclusive packages with confirmed Rail reservation, hotel accommodation,

road transportation, meals, sightseeing etc. At present over 70 packages for important tourist

destinations across India covering Kerala, Rajasthan, Tamilnadu, Karnataka, Jammu &

Kashmir, Uttar Pradesh etc. are being operated.

H ill Charters

The Steam trains are operated on Darjeeling Himalayan Railway, Kangra Valley Railway,

Kalka-Shimla Railway and Nilgiri Mountain Railway. Hill charters showcase the special

characteristics of the respective hill sections with heritage stations, seasonal features, breath

taking scenery & adventure tourism. IRCTC offers single window value added services.

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Educational Tours

IRCTC offers Educational Tours Package with rich educational content and in a caring

environment for the students of educational institutions across the country. The facility is

being used by Kendriya Vidyala Sangathan, Sarva Shiksha Abhiyan of Tamil Nadu and West

Bengal and Delhi State Government Schools.

Tour ism Portal

IRCTC's tourism portalwww.railtourismindia.com,is the fast growing a one stop travel

shop and meet all the travel & tourism needs of a tourist. Online booking of tour packages,

hotels and Car Rental across the country is becoming increasingly popular through this

National Tourism Award winner tourism portal of IRCTC.

Budget Hotel

IRCTC is planning to develop Budget Hotels through Public Private Partnership. Budget

Hotels are to be set up in the vicinity of railway stations for tourists and rail users. These

Budget Hotels will provide quality guestrooms with modern facilities, dcor and ambience on

affordable prices, choice of food and beverage services and Web enabled reservation system.

At present four budget hotels are operational at New Delhi , Howrah , Puri & Ranchi in the

existing buildings.

Luxury Tourist Train

IRCTC has set up a 50:50 JV Company, Royale India Train Tours Limited (RIRTL) in

Participation with M/s Cox & Kings India Limited. RIRTL will run Pan India Luxury Tourist

Train. Estimated Cost of the train is Rs.49.48 Crore. The Luxury Train named as Maharajas'

Express is owned by IRCTC. Marketing and operation of the Maharajas' Express would be

done by RIRTL. The train was officially unveiled at the ITB Berlin in March, 2009.

Role of IRCTC in Tourism Development in Brief

Launching of a Luxury Tourist Train with pan India itineraries.

http://www.railtourismindia.com/http://www.railtourismindia.com/http://www.railtourismindia.com/http://www.railtourismindia.com/

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Thrust of Educational Tour on All India basis.

Further development of rail tour package business

Strategic tie-ups for promoting tourism

Comprehensive travel services to foreign tourists booking tickets on IRCTC website.

MINISTRY OF CIVIL AVIATION

The Ministry of Civil Aviation is responsible for formulation of national policies and

programmes for the development and regulation of the Civil Aviation sector in the country. It

is responsible for the administration of the Aircraft Act, 1934, Aircraft Rules, 1937 andvarious other legislations pertaining to the aviation sector in the country.

Main functions of the Ministry of Civil Aviation and Tourism are :

a. Framing of laws and formulation of policies relating to civil aviation and its

implementation;

b. Modernising and upgrading of airports, air routes and air services;

c. Managing matters relating to air space control, safe take off of aircrafts, aeronautical

inspection and supervision of issuance of licences for aircrafts and pilots;

d. Framing of laws and rules relating to registration of travel agencies and their

implementation;

e. Framing of laws and formulation of policies on tourism in Bangladesh and its

implementation, up gradation in the contest of globalisation;

f. Undertaking research for development of tourism industry, its modern management and

development of efficient manpower;

g. Establishment, operation and control of associated/servicebased organisations relating to

the overall development of tourism industries; and

h. Signing of contracts relating to civil aviation and tourism with local and international

organisations and their coordination.

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CONCLUSION

The tourism industry has recognised the fact that successful tourism can be best achieved

through a consolidated effort of government and private organisations. These organisations

need to with the various sectors of the tourism industry to ensure that they function

harmoniously and with maximum profits. At the same time these organisations should ensure

easy accessibility, adequate facilities, safety, and value for money for the tourists, leading to

the customer delight.