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Indians splurge on tourism as economy booms
By siliconindia staff writer
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Monday, 19 April 2004, 19:30 IST
NEW DELHI: This country of over one billion people seems to be rediscovering itself -- if the number of domestic tourists travelling the length and breadth of the land is anything to go by.
Be it dewy mountain trails in Ooty, pristine sea beaches in Goa, religious centres like Hardwar and Rishikesh, or the desert sands of Rajasthan - they are all buzzing with tourists. And most of them are Indians.
All this thanks mainly to a booming economy and rising disposable incomes in the hands of the country's vast middle class.
"The domestic tourism industry has really grown at a very healthy pace in the last one year or so," said Ravi Bhoothalingam, member (tourism committee) of the Confederation of Indian Industry (CII), a premier business lobby group.
"There are many factors that have helped in the spread of the wanderlust contagion among the middle-class," Bhoothalingam, who is also the CEO of tourism consultancy firm Manas Advisory, told IANS.
"First of all, the economy has really turned the corner and larger benefits of higher economic growth are now percolating down to all sections of the society.
The stock market boom has also made many people richer in a short period of time.
"Disposable income has also risen manifold and so has consumer spending," added Bhoothalingam.
"The reduction in airfares and construction of world-class highways across the country has only enthused Indians to travel more within the country."
According to travel industry representatives, destinations like Kerala, Himachal Pradesh, Rajasthan, Uttaranchal and Maharashtra have witnessed the maximum number of domestic tourist arrivals last year.
Kerala, famous for its houseboats, beaches, Ayurveda treatments and wildlife sanctuaries, has been the top destination in recent years.
The domestic tourism market in India grew 10 percent to 300 million travellers in 2003, up from 273 million in 2002. And the industry turnover rose from 
319 billion in 2002 to nearly 400 billion in 2003.
A recent survey by the New Delhi-based think tank National Council for Applied Economic Research says rural folk in India contribute more to domestic tourism than urban dwellers.
"People in rural areas travel more and contribute more to domestic tourism than the urban population," it said.
"Though they move out mostly for social purposes, yet they make a significant contribution to the growth of tourism by visiting tourist spots in and around their main destinations."
Travel for social purposes accounts for the largest percentage of tourists in both urban and rural areas in India at 59 percent followed by religious tourists and pilgrims at 14 percent.
"With most Indian states now waking up to the potential of tourism as an industry, travelling within the country has become a good getaway option," says Maharaj Wahi, chairman of Travel Promotion Bureau of India.
"Sensing the demand, the tourism industry is rushing to woo domestic travellers with attractive packages. The advent of good quality hotels at most of the Indian tourist destinations has also helped the boom," he added.
Wahi said many luxury hotels now were also changing gear and wooing domestic travellers, instead of focusing purely on overseas visitors.
"Domestic tourists are no longer interested in just visiting popular tourist sites. They are looking for luxury holidays that provide them extraordinary experiences at an affordable cost."
While the government claims it is taking all measures to improve the image and quality of the country's hotels and transportation and to focus on maintenance and restoration of monuments, experts say much needs to be done to fuel growth.
"The cost of buying land and building a multi-storeyed commercial building is so high in most of the cities in India that very few entrepreneurs even think about putting up a budget hotel," says Bhoothalingam.
"The domestic traveller's woe is further compounded by prohibitive taxes charged by the hotels and transportation companies. We have one of the highest taxation structures in the hospitality sector in the whole world."
319 billion in 2002 to nearly 400 billion in 2003.
A recent survey by the New Delhi-based think tank National Council for Applied Economic Research says rural folk in India contribute more to domestic tourism than urban dwellers.
"People in rural areas travel more and contribute more to domestic tourism than the urban population," it said.
"Though they move out mostly for social purposes, yet they make a significant contribution to the growth of tourism by visiting tourist spots in and around their main destinations."
Travel for social purposes accounts for the largest percentage of tourists in both urban and rural areas in India at 59 percent followed by religious tourists and pilgrims at 14 percent.
"With most Indian states now waking up to the potential of tourism as an industry, travelling within the country has become a good getaway option," says Maharaj Wahi, chairman of Travel Promotion Bureau of India.
"Sensing the demand, the tourism industry is rushing to woo domestic travellers with attractive packages. The advent of good quality hotels at most of the Indian tourist destinations has also helped the boom," he added.
Wahi said many luxury hotels now were also changing gear and wooing domestic travellers, instead of focusing purely on overseas visitors.
"Domestic tourists are no longer interested in just visiting popular tourist sites. They are looking for luxury holidays that provide them extraordinary experiences at an affordable cost."
While the government claims it is taking all measures to improve the image and quality of the country's hotels and transportation and to focus on maintenance and restoration of monuments, experts say much needs to be done to fuel growth.
"The cost of buying land and building a multi-storeyed commercial building is so high in most of the cities in India that very few entrepreneurs even think about putting up a budget hotel," says Bhoothalingam.
"The domestic traveller's woe is further compounded by prohibitive taxes charged by the hotels and transportation companies. We have one of the highest taxation structures in the hospitality sector in the whole world."