Lesson 13: Growth and Patterns of Tourism in India
This module analyzes the historical evolution, quantitative growth, and spatial distribution patterns of domestic and foreign tourism in India. It examines key definitions, source market dynamics, recipient state share concentrations, shopping behavior, emerging dimensions (MICE, Medical/AYUSH, Sustainable), foreign exchange earnings, and government institutional frameworks.
Definition & Classification of Tourists
Visitor vs. Tourist, Non-Remunerative Criteria, Atithi Devo Bhava, and Expenditure Patterns
International Tourist
• Criteria: A person visiting India on a foreign passport who stays for at least 24 hours in the destination country.
• Permitted Purpose: Leisure, recreation, holiday, health, study, religious belief, sport, business, family, mission, or meetings.
• Mandatory Exclusion: Must NOT undertake any remunerative assignment (paid job) in the destination country. Diplomats and armed forces are excluded from international tourist statistics.
Domestic Tourist
• Criteria: A person traveling within the country to a place other than his/her usual place of residence or work, staying in any accommodation for not less than 24 hours.
• Permitted Purpose: Holiday, leisure, sports, pilgrimage, study, health, and social functions.
• Exclusion: Persons visiting their native place or home town on leave or short visits solely to meet friends/relatives or attend personal social functions are not classified as domestic tourists.
Cultural Philosophy & Shopping Inflow
• Atithi Devo Bhava: "Guest is God" forms the core ethos of Indian hospitality. Pt. Jawaharlal Nehru's famous motto: "Welcome as a Tourist and send them back as a Friend."
• Shopping Expenditure: Foreign tourists spend nearly 40% of their total travel expenditure on shopping in India, specifically targeting carpets, jewellery, leather goods, ivory, and brassware.
Natural, Cultural & Emerging Typologies of Indian Tourism
Natural & Cultural Landscapes, MICE, Medical/AYUSH, Spiritual, and Sustainable Tourism
Includes Mountain tourism, Island tourism, Desert tourism, Coastal tourism, Lacustrine (lake-based) tourism, Wildlife tourism, and Adventure tourism.
Includes Religious/Pilgrimage tourism, Historical tourism, Traditional tourism, Health tourism, Sports tourism, and Rural tourism.
Includes MICE (Meetings, Incentives, Conferences, Exhibitions), Medical Tourism (AYUSH + Allopathy), Spiritual Tourism, and Sustainable Tourism.
Detailed Breakdown of Emerging Dimensions
• Health / Medical Tourism: Offers world-class medical treatment at low cost. Integrates allopathy with traditional Indian systems of medicine (AYUSH: Ayurveda, Yoga & Naturopathy, Unani, Siddha, Homoeopathy). Attracts patients from USA, Europe, and Middle East.
• MICE Tourism: Fast-growing business segment expanded rapidly following India's 1991 economic liberalization, backed by state-of-the-art convention infrastructure.
• Sustainable Tourism: Meets present tourist and host region needs without compromising the ability of future generations to meet theirs; minimizes environmental and cultural degradation.
Foreign Tourist Arrivals (FTAs) & Source Market Distribution
Quantitative Trajectory (1951–2015), Top 10 Generating Nations, and Top Recipient States
Top 10 Generating Nations for FTAs in India (2014)
| Rank | Country | % Share |
|---|---|---|
| 1 | United States of America (USA) | 14.57% |
| 2 | Bangladesh | 12.27% |
| 3 | United Kingdom (UK) | 10.92% |
| 4 | Sri Lanka | 3.93% |
| 5 | Russian Federation | 3.51% |
| 6-10 | Canada (3.50%), Malaysia (3.41%), France (3.20%), Australia (3.12%), Germany (3.11%) | 16.34% |
| Total Share of Top 10 Source Nations | 61.54% | |
Top Recipient States for Foreign Tourists (2014)
| Rank | State / UT | Visits | % Share |
|---|---|---|---|
| 1 | Tamil Nadu | 4,657,630 | 20.6% |
| 2 | Maharashtra | 4,389,098 | 19.4% |
| 3 | Uttar Pradesh | 2,909,735 | 12.9% |
| 4 | Delhi | 2,319,046 | 10.3% |
| 5 | Rajasthan | 1,525,574 | 6.8% |
| Total Share of Top 10 Recipient States | 88.8% | ||
Note: Most visited monuments by foreign tourists include Taj Mahal, Qutub Minar, and Agra Fort.
Domestic Tourist Arrivals (DTAs) & State Distribution
1.43 Billion Inflow Surge (1997–2015) and Concentration in Top 5 States
Exponential Growth Trajectory (1997–2015)
• 1997 Baseline: 159.88 million domestic visits.
• 2007 Benchmark: 526.70 million domestic visits.
• 2015 Record: 1,431.97 million (1.43 Billion) domestic visits.
• Growth Rate: Total increase of 795.65% over 18 years (~41.88% annual growth rate). Driven by rising income levels, expanding purchasing power, and a dynamic middle class.
Top 5 Recipient States for Domestic Tourists (2015)
| Rank | State | Visits (Millions) | % Share |
|---|---|---|---|
| 1 | Tamil Nadu | 333.46 M | 23.3% |
| 2 | Uttar Pradesh | 204.89 M | 14.3% |
| 3 | Andhra Pradesh | 121.59 M | 8.4% |
| 4 | Karnataka | 119.86 M | 8.4% |
| 5 | Maharashtra | 103.40 M | 7.2% |
| Combined Share of Top 5 Domestic States | 63.26% | ||
Tourism Earnings & Government Policy Framework
Foreign Exchange Earnings (FEEs), World Share, and Historical Institutional Roadmap
Tourism Receipts & Foreign Exchange Earnings (FEEs)
• FEE Growth: Foreign exchange earnings increased from US$ 14.19 billion in 2010 to US$ 16.56 billion in 2011 (+16.7% annual growth).
• Global Share Expansion: India's share of world tourism receipts grew from 0.64% in 1997 to 0.72% in 2002, reaching 1.61% in 2011.
• Smokeless Industry: Vital mechanism to earn foreign currency and maintain balance of trade.
Government Institutional Evolution Timeline
• 1949: Tourist Branch created under Ministry of Transport.
• 1957–58: Separate Tourism Dept (1957) & Tourism Development Council (1958).
• 1982: First National Policy on Tourism announced.
• 1985–90: Granted official "Industry Status" during 7th Five Year Plan.
• 1988: Mohammad Yunus Committee (National Committee on Tourism) published its report—termed the "Foundation Stone of Indian Tourism".
• May 14, 2000: Established full-fledged independent Ministry of Tourism. Launched the global Incredible India promotional campaign.