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Research Proposal Essay

3114 words - 13 pages

Impact of Tourism
Indian Economy

Submitted to:
Prof. Sharif Menon

Submitted by:

Dhwani Parekh | NR 13089 |
Dhara Shah | NR 13132 |
Sailesh Bhavnani | NR |


Globalization of development programmes has raised the foreign exchange requirements of developed as well as the developing countries. A number of manufacturing and non-manufacturing, traditional and non-traditional industries, no doubt, have helped them in their stupendous task of industrial transformation but at the same time, the harmful side effects have resulted in atmospheric pollution. In addition, the inadequacy of financial resources has also been an important barrier in speeding up the process of economic ...view middle of the document...

The income generation and employment capability of the industry are quite considerable. In fact tourism industry especially for developing countries acts as a greatest leveller in time of economic recessions. This chapter presents the impact of tourism industry in India with regard to various fronts such as economic front, social front, cultural and historical front, environmental front and political effects.


1. Generating Income and Employment: Tourism in India has emerged as an instrument of income and employment generation, poverty alleviation and sustainable human development. It contributes 6.23% to the national GDP and 8.78% of the total employment in India. Almost 20 million people are now working in the India’s tourism industry.
2. Source of Foreign Exchange Earnings: Tourism is an important source of foreign exchange earnings in India. This has favourable impact on the balance of payment of the country. The tourism industry in India generated about US$100 billion in 2008 and that is expected to increase to US$275.5 billion by 2018 at a 9.4% annual growth rate.
3. Preservation of National Heritage and Environment: Tourism helps preserve several places which are of historical importance by declaring them as heritage sites. For instance, the Taj Mahal, the Qutab Minar, Ajanta and Ellora temples, etc, would have been decayed and destroyed had it not been for the efforts taken by Tourism Department to preserve them. Likewise, tourism also helps in conserving the natural habitats of many endangered species.
4. Developing Infrastructure: Tourism tends to encourage the development of multiple-use infrastructure that benefits the host community, including various means of transports, health care facilities, and sports centers, in addition to the hotels and high-end restaurants that cater to foreign visitors. The development of infrastructure has in turn induced the development of other directly productive activities.
5. Promoting Peace and Stability: Honey and Gilpin (2009) suggests that the tourism industry can also help promote peace and stability in developing country like India by providing jobs, generating income, diversifying the economy, protecting the environment, and promoting cross-cultural awareness. However, key challenges like adoption of regulatory frameworks, mechanisms to reduce crime and corruption, etc, must be addressed if peace-enhancing benefits from this industry are to be realized.
6. Direct Financial Contributions: Tourism can contribute directly to the conservation of sensitive areas and habitat. Revenue from park-entrance fees and similar sources can be allocated specifically to pay for the protection and management of environmentally sensitive areas. Special fees for park operations or conservation activities can be collected from tourists or tour operators.
7. Contributions to Government Revenues: The Indian government through the tourism department also collect money in more far-reaching and...

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