New Tourism: A Mantra For Change

New Tourism depends on a new seriousness not only about the sector’s potential, but also about the responsibilities that everyone must accept

Rathi Vinay Jha, secretary general - India Initiative, World Travel & Tourism Council gives her perspective on the global travel and tourism scenario and the potential of Indian tourism in future

The World Travel & Tourism Council (WTTC) is the business leaders' forum for travel and tourism, working with governments to raise awareness of the importance of one of the world's largest generators of wealth and jobs. Travel and tourism means jobs. A worldwide community of a quarter of a billion people working in the travel and tourism sector by the end of this decade - with the firm prospect of sustainable growth in the future.

The concept of ‘New Tourism’ dares to embrace a new dimension of travel and tourism and thus is an effective mission in removing barriers and tapping tourism potential. It is a mature response to a more complex world. Global consciousness of the importance of tourism has triggered a fresh look at the opportunities it represents. New Tourism is also a new sense of coherent partnership between the private sector and public authorities and is geared to delivering commercially successful products - but in a way that ensures benefits for everyone. And finally, this concept beyond short-term considerations. It focuses on benefits not only for people who travel, but also for people in the communities they visit, and for their respective natural, social and cultural environments.

WHAT HOLDS TRAVEL & TOURISM BACK

Local conditions inhibit growth - everything from incoherence in planning to discouragement through taxation, and from obstacles to business to a lack of training support. External factors damage confidence - everything from legal uncertainties over ownership or inadequate utilities and infrastructure, to risks of terrorism, crime or disease.

A NEED OF A NEW CONSCIOUSNESS

Solutions exist to external disruption and local neglect. Travel and tourism can continue to deliver its current benefits, and can extend them even more widely, all the time ensuring that it remains sensitive to its potential negative impacts. But instead of just being a 'nice-to-have' in national strategies, it needs instead to become a 'need-to-have'. New Tourism thus depends on a new seriousness not only about the sector's potential, but also about the responsibilities that everyone must accept, if it is to make its full contribution to general well-being.

This new concept will provide new hope for people and economies. It is a force capable of dramatically improving economic and social well-being right across the globe. It will also offer:

• A coherent policy to drive higher-value travel and Tourism traffic for better yields.
• Enhance national revenues by bringing improved economic conditions, while assuring the widest spread of benefits, and winning engagement of all partners.
• Dependable prospects at national and regional levels, and in economies at all stages of development.

INDIA - ON THE UPSWING

India’s travel and tourism is expected to generate Rs 1,846.3 billion (US$ 38.8 bn) of economic activity (Total Demand) in 2004, growing (nominal terms) to Rs 7,027.7 billion (US$ 90.4 bn) by 2014. Travel and tourism demand is expected to grow by 8.8 per cent per annum, in real terms, between 2004 and 2014.

Employment

The Indian travel and tourism economy employment is estimated at 24,456,600 jobs in 2004, 5.6 per cent of total employment, or one in every 17.8 jobs. By 2014, this should total 27,790,000 jobs, 5.7 per cent of total employment or one in every 17.5 jobs. The 11,404,000 travel and tourism industry jobs account for 2.6 per cent of total employment in 2004 and are forecast at 12,441,200 jobs or 2.6 per cent of the total by 2014.

Gross Domestic Product

India's travel and tourism industry is expected to contribute 2.0 per cent to Gross Domestic Product (GDP) in 2004 (Rs 618.4 billion or US$ 13.0 billion), rising in nominal terms to Rs 2,002.3 billion or US$ 25.8 billion (2.1 per cent of total) by 2014. The travel and tourism economy contribution (percent of total) should rise from 4.9 per cent (Rs 1,477.4 billion or US$ 31.1 billion) to 5.2 per cent (Rs 4,972.5 billion or US$ 64.0 billion) in this same period.

Capital Investment

India Travel & Tourism capital investment is estimated at Rs 485.3 billion, US$ 10.2 billion or 7.2 per cent of total investment in year 2004. By 2014, this should reach Rs 1,663.9 bn, US$ 21.4 billion or 7.8 per cent of total.

Personal & Business Travel Tourism

India Personal travel and tourism is estimated at Rs 927.3 billion, US$ 19.5 billion or 5.0 per cent of total personal consumption in year 2004. By 2014, this should reach Rs 3,612.9 bn, US$ 46.5 billion or 6.1 per cent of total consumption. India Business Travel is estimated at Rs 114.5 billion, US$ 2.4 billion in year 2004. By 2014, this should reach Rs 387.4 billion or US$ 5.0 billion.

Exports

Visitor Exports play an important development role for the resident travel and tourism economy. India travel and tourism is expected to generate 6.7 per cent of total exports (Rs 283.2 billion or US$ 6.0 billion) in 2004, growing (nominal terms) to Rs 1,267.3 billion or US$ 16.3 billion (5.4 per cent of total) in 2014

(Excerpts from The Blueprint For New Tourism)