Unit- 2; Role of Government in Tourism

Contents
Role of Government in tourism: Tourism in India Since 1947, Establishment of Ministry of
Tourism, organizational structure and functions, I.T.D.C. -Role and Functions, Tourism at state
level – Study of U.P. Tourism

Role of Government in tourism

Government plays a key role in any state for the development and promotion of tourism. Some
nations treat tourism as a priority areas, whereas some states give due importance to it after
considering other key areas. Governments of different countries follow different mechanism to
administer tourism and related activities such as some countries, National Tourism Boards or
for some countries it is Tourism Development Authority etc. In India, we have Ministry of
Tourism and Directorate of Tourism at the national level. A similar structure is followed in
states as well.

Before 1947, there was no specific attention to tourism development in India. In the beginning
of 18th century tourism was an activity of rich and mainly centered in European countries. The
British Government has utilized the natural resources of India, but has neither shown any
interest to the development of the sites. In India, pilgrimage was one of the major purposes of
people traveling other than a segment moved for business activities. Major pilgrimage centres
has very little facilities and barely had proper connectivity between various places.

Some British officers like Sir Alexander Cunningham, James Princep, surveyed major important
historical sites of North India and initiated the preservation of monuments. Some officers
interested in exploring the mountains and remote areas such as Frank Smythe, Eric Shipton and
R.L. Holdsworth who discovered Valley of flowers in 1931. The British also built Bungalows in
major hill stations of India and they spent the summer days in these hill stations. Places such as
Dalhousie, McLeod Ganj, Shimla, Mussorrie, Nainital etc. were the summer stations of British
officers. Mughals built beautiful gardens (Agra, Pinjore Garden, Nishat Bagh, Mughal Garden at
Srinagar) etc. but over a period of time and lack of proper maintenance deteriorated the
conditions of these gardens.

Beaches situated along the Arabian coast also got some attention from westerners. Daman Diu,
Goa were controlled by Portuguese, Kovalam beach was identified as a popular holiday resort
and Gulmarg as a Skiing centre. But the touristic potential of India didn’t get any attention till
Independence. This unit outlines the growth of tourism in India post-independence in detail.

1 Study material for BA Vocational Course I Semester

Prepared by Dr. Shyju P J, Asst. Professor, Tourism Management
Banaras Hindu University
John Sargent Committee (1945)

(The following Notes are taken from the text book of A K Bhatia, Tourism Development)

Government of India appointed Sir John Sargent, the then educational advisor of Government
to study the tourist traffic. Major recommendations of this committee include (AK Bhatia,
1982):-

• Publicity, both in India and abroad.

• Production of suitable literature such as guides books, folders, posters and the like.
• Provision for training of guides.
• Liaison with the travel agencies which would necessarily remain responsible for the
detailed arrangements of tourists.
• Liaison with hotels and catering establishments.
• Collection of tourist statistics.
• Co-ordination with air and train services with a view to facilitate both air and train
journey and to make it comfortable in India.

Post-independence, an ad-hoc committee was appointed to study the tourist potentials of

India. A separate Tourist Traffic Branch was set up in the Ministry of Transport in the year 1949
with the main objective of development of tourist traffic in India. With the increase in its
activities the Tourist Traffic Division expanded considerably and during the year 1955-56, The
sections these four branches were called upon to take up were, i) Tourist Traffic Section ii)
Tourist Administration Section in) Tourist Publicity Section and iv) Distribution Section.

Establishment of tourist offices in India (Mumbai, Kolkata, Chennai, Delhi, and USA, UK,
Australia, New Zealand and Sri Lanka.

Establishment of The Tourist Development Council was set up in February 1958 under the
Department of Tourism, Ministry of Transport and Communication to smoothen the tourism
development activities in the country. The following committees were established in 1957.

• Tourist Promotion Committee

• Hotel Standards and Rate structure Committee
• Hotel Classification Committee (1962)
• Hotel Review and Survey Committee (1967)

2 Study material for BA Vocational Course I Semester

Prepared by Dr. Shyju P J, Asst. Professor, Tourism Management
Banaras Hindu University
In 1963, Under the chairmanship of L K Jha an ad-hoc committee was constituted to study on
the development of tourism in India. Major recommendations of ad hoc committee on tourism
were

• Landing permits for visitors: Easing producers for charter flights and special flights bring
tourists.
• Opening of tourists offices abroad.
• Provision of shopping and entertainment facilities.
• Setting up of three corporations (viz. hotel, transport and entertainment)
• Improvement of facilities at airports.
• Training of immigration staff.
• Increase tourist publicity.
1967, Dept. of Tourism was attached to Ministry of Tourism and Civil Aviation. In 1968, a report
was submitted by cultural committee (study was done in recommendation with UNDP) and the
report highlighted the following.

• Provide standardized facilities at monuments.

• Protecting all monuments other than those listed in ASI (Archeological Survey of India).
• Tours built around specific themes.
• Coordination between ASI and DOT (Dept. of Tourism).

Indian Institute of Public Administration (1970) recommended the establishment of National

Tourism Authority and Govt. of India established National Tourism Board in 1972.
Tourism started getting attention from government authorities and the chronology of
development from 1970 to 2002 is listed below.
• Tourism Policy of 1982 (the policy proposed integrated development of tourism and
tourism circuits development).
• National Committee on Tourism headed by Md. Younus-1986
• Industry status to Tourism---1986
• Establishment of Tourism Finance Corporation of India
• National Action Plan -1992 (aimed diversification of tourism product, preservation of
heritage, development of domestic tourism (budget class), establishment of craft
villages, Marketing and promotion. 9 tourist circuits have been identified and 6
destinations were selected for intensive tourism development. It also proposed Special
Tourism Areas –STAs.
• Visit India Year – 1999
• Incredible India Campaign –2002

3 Study material for BA Vocational Course I Semester

Prepared by Dr. Shyju P J, Asst. Professor, Tourism Management
Banaras Hindu University
Tourism Policy -2002
It introduced the concept of 7S on the lines tourism would be promoted in India.

Swagat, Soochana, Suvidha, Suraksha, Sahayog, Sanrachana, Safai

The policy proposed the following strategies for tourism development in India
1. Positioning tourism as a national priority
2. Enhance the competitiveness of India
3. Improving and Expanding tourism product
4. Explore opportunities for MICE tourism
5. Focus on cuisine, village, farm, adventure and wildlife tourism
6. Promoting shopping tourism
7. Promoting melas.
8. Creation of world class infrastructure

FOREIGN TOURIST ARRIVALS (FTAs) IN INDIA, 1981-2010

Year FTAs in India Annual Growth (%)
1981 1279210 2.0
1985 1259384 5.5
1990 1707158 -1.7
1995 2123683 12.6
2000 2649378 6.7
2005 3918610 13.3
2010 5775692 11.8
(Source: India Tourist statistics-2010; Ministry of Tourism, GOI)
The liberalization, privatization and globalization policy of India helped tourism sector as well.
Improved image of India in the international platforms and global business environment also
gained momentum to get a speedy growth of tourism in India. Increase in disposable income
among the youth, increased trade relations with other nations, development of IT and its
increased role helped tourism industry in a greater way.

India Tourism Development Corporation (ITDC)

ITDC came into existence in October 1966. The main objectives of the Corporation are:

• To construct, take over and manage existing hotels and market hotels, Beach Resorts,
Travellers’ Lodges/Restaurants;

• To provide transport, entertainment, shopping and conventional services;

4 Study material for BA Vocational Course I Semester
Prepared by Dr. Shyju P J, Asst. Professor, Tourism Management
Banaras Hindu University
• To produce, distribute, tourist publicity material;

• To render consultancy-cum-managerial services in India and abroad;

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

changers etc.;

• To provide innovating, dependable and value for money solutions to the needs of
tourism development and engineering industry including providing consultancy and
project implementation.

In 1970, ITDC’s scope of operations enlarged by merging Ashok Hotels Ltd. and Janpath
Hotels Ltd., comprising Janpath, Lodhi and Ranjit Group of Hotels. There were over 4,000
rooms in 36 hotels located in 30 tourist destinations ranging from five-star hotels to
moderately priced and budget hotels pan-India. Each hotel was designed to highlight India’s
unique culture, handicrafts and cuisine. In the year 1995, ITDC offloaded 10% of equity to the
public and the Indian Hotels Company.

At present, ITDC has a network of

• Eight Ashok Group of Hotels

• Five Joint Venture Hotels
• 1 Restaurant (including one Airport Restaurant)
• 9 Transport Units, one Tourist Service Station
• 9 Duty Free Shops at International as well as Domestic Customs Airports
• Two Sound & Light Shows.
• Sound and Light Show: Punana Quila and Red Fort (Delhi)
• Catering units: Hyderabad House
***
• Duty Free Shop at Chennai, Haldia, Kolkata, Goa, Paradip, Vishakhapatnam, New
Mangalore, Mumbai, Kakinada, Krishnapatnam, Cochin Seaports.
• Ashok Travels & Tours (ATT) operates from Delhi, Mumbai, Chennai, Bangalore,
Kolkata, Hyderabad, Guwahati, Patna and Ranchi.
• Architectural interior designing.
• Engineering consultancy services in the field of civil, structure, plumbing, air-
conditioning and mechanical disciplines.
• Designing of industrial kitchens, including preparation of layouts and kitchen
equipment.

5 Study material for BA Vocational Course I Semester

Prepared by Dr. Shyju P J, Asst. Professor, Tourism Management
Banaras Hindu University
 • The Ashok Events manages events, conferences and exhibitions on turnkey basis,
both at national and international level. It has established itself as a leading
Professional Conference Organizer (PCO) with a clientele comprising in a major way
of Ministries and various Government Bodies coupled with an in-house expertise of
providing designing and printing solutions (Coffee Table book, guide books, diaries,
posters, brochures, folders etc.).

Performance: Profit before tax: Rs. 10.97 cr. as compared to Rs. 28.79 cr. in the corresponding
quarter last financial year i.e. 2017-18, a decrease of 61.89% from last year.

ITDC was awarded National Tourism Award : 2016 in the category of Best Hotel based
Meeting Venue. In 2016, it completed its 50 years of establishment.

Ministry of Tourism, Government of India

It is the nodal agency for the formulation of national policies and programmes. The main
function of MOT is co-ordination of activities of various Central Government Agencies, State
Governments/UTs and the Private Sector for the development and promotion of tourism in the
country. This Ministry is headed by the Union Minister of State for Tourism (Independent Charge). At
present. Dr. K J Alphons is the Minister for Tourism in Central Govt.

The following bodies are there under Directorate General of Tourism

• 20 offices in India and 14 offices abroad

• One subordinate office - Indian Institute of Skiing & Mountaineering, Gulmarg
• Indian Institute of Tourism and Travel Management(IITTM)
• National Council of Hotel Management and Catering Technology (NCHMCT)
• National Institute of Water Sports (NIWS)

Functions

1. All policy matters Development Policies, Incentives. External Assistance., Manpower

Development, Promotion & Marketing, Investment Facilitation.
2. Infrastructure development.
3. Human Resource Development.
4. Publicity and Marketing.
5. Research, Analysis, Monitoring and Evaluation.
6. Legislation and parliamentary work.
7. Inspection and Quality control.

6 Study material for BA Vocational Course I Semester

Prepared by Dr. Shyju P J, Asst. Professor, Tourism Management
Banaras Hindu University
8. Coordination with other ministries.
Ministry of Tourism also funds academic institutions for conducting seminars and conference
and skill oriented programmes. Capacity building programmes for stake holders, emigration
officers etc. have been introduced. Evisa policy allows International Travellers whose sole
objective of visiting India is recreation, sightseeing, casual visit to meet friends or relatives, short
duration medical treatment or casual business visit.

Tourism at State Level- UP Tourism

Uttar Pradesh can be called as the heart of India. The marketing tagline of UP Tourism is UP nahi dekha
to India nahi dekha means if you have not seen UP, you have not seen India. There are several
interesting facts about Uttar Pradesh as a state.

• Ayodhya, Mathura, Kashi, Prayag (major pilgrimages centres are situated in the state)
• Varanasi, one of the oldest living cities in the world known for religion, culture and Philosophy is
one of the most important tourist attractions of India.
• Sarnath and Kushinagar :- holy places of Buddhism is in UP.
• River Ganga, the heritage river of India is the lifeline of the state
• Taj Mahal, one of the wonders of the World is in UP
• Kumbh Mela, one of the largest gathering on the earth takes place at Prayagraj (Allahabad)
• It is a state with vibrant cultural and geographic features.

According to the reports of Govt. of India, Uttar Pradesh is in 2nd position in total tourists arrivals, 2nd in
Domestic Tourist Arrivals and 3rd in Foreign Tourists Arrivals. The tourist attractions of the state are
Agra, Mathura, Varanasi, Khushinagar, Allahabad, Lucknow, Naimisharnya, Ayodhya, Jhansi, Chitrakoot,
Sarnath, Dudhwa, Chandraprabha, Mahoba, Chunar and Deogarh etc. These places are very important in
terms of religious and cultural features. The cultural features include folklores, festivals, dance and
music etc.

The state also has a number of National Parks and Wildlife sanctuaries, riverine landscapes. The state is
blessed with handicraft materials and local products. The government is mooting the proposed One
District One Product programme to encourage local products to get good opportunities. Banarasi Silk,
Carpet of Bhadohi, Potteries of Nizamabad, Brass products and bangles of Moradabad, leather materials
of Kanpur and Agra, Lucknow Chiken etc. have been in good demand for several years.

Uttar Pradesh Tourism has introduced the new tourism policy in the year 2018. It also has air services
policy, ecotourism policy and Heritage policy. The highlights of tourism policy of UP are given below.

The vision statement states “to establish UP as the preferred tourist destination in India, and achieve
country’s highest tourist arrivals and receipts driving employment generation and ensuring best visitor
experience”.

7 Study material for BA Vocational Course I Semester

Prepared by Dr. Shyju P J, Asst. Professor, Tourism Management
Banaras Hindu University
Targets

1. Achieve an annual increase of 10% domestic tourist arrivals and 15% international tourist
arrivals.
2. To impart training to 10000 service providers in the next 5 years.
3. To convert 10 heritage building to heritage hotels per year.
4. To improve regional connectivity of religious and cultural attractions through road, rail and air.
5. To promote the state as a leading MICE destination.
6. To improve local entrepreneur ship avenues.
7. To promote city wise events. (Ganga Mahotsav, Dev Deewali, Gorakhpur Utsav, International
Literature Festival, International Ramayana Conclave, Lucknow Mahotsav, Rang Mahotsav,
Barsana etc.

Strategies

1. Augmenting brand Uttar Pradesh.

2. Strengthening tourist infrastructure.
3. Promoting investments and employment.
4. Focus on religious and spiritual tourism
5. Promoting theme based tourism. (Ecotourism, Cultural Tourism, Vedic Mini City tourism, Agri
Tourism, Crafts, Handloom and Textile Tourism, Weekend Tourism, Adventure Tourism, Caravan
Tourism, MICE Tourism, Wellness tourism, Water and Cruise Tourism, Rural Tourism and Sports
Tourism.

The policy also defines what is a tourism unit? What is a new tourism unit? Existing tourism unit
undergoing expansion etc. New projects of UP Tourism include smart ticketing system, sound and light
show, laser show, city centre observatory, digital museum, ropeway project etc.

Organisation structure of Uttar Pradesh Tourism

Hon’ble Minister : Smt. Rita Bahuguna Joshi

Director General : Sri Awanish Kumar Awasti IAS

Special Secretary &M.D. UPSTDC : Sri Akhand Pratap Singh IAS

8 Study material for BA Vocational Course I Semester

Prepared by Dr. Shyju P J, Asst. Professor, Tourism Management
Banaras Hindu University
 Organisation Structure

Reference

Tourism Development: A K Bhatia

Website: http://www.gourkanjilal.com/India-Tourism-part2.pdf

http://shodhganga.inflibnet.ac.in/bitstream/10603/61560/11/11_chapter%203.pdf

http://tourism.gov.in/role-and-functions-ministry

http://www.theashokgroup.com

http://www.uptourism.gov.in/

9 Study material for BA Vocational Course I Semester

Prepared by Dr. Shyju P J, Asst. Professor, Tourism Management
Banaras Hindu University