A

Project Report

On Turisum

PRESENTED TO : SEJAL ACHARYA

PRESENTED BY-DAVE MILN(09)

RANA LUCKYRAJ(14)

RATHOD HARSH(34)

PRAJAPATI ANIKET(54)

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE ‘MANAGEMENT RESEARCH PROJECT’ COURSE IN THE

MASTER OF BUSINESS ADMINISTRATION PROGRAMME

PREFACE

Today a stiff competition is seen in the economy, Now, the Present scenario

of the business world is quite different from the past. Ethics, Conflicts, new

ideologies, new ideologies, energy scarcities and crazy dogmas are just. The few of

the characteristics that make the present quite different from the past.

In order to cope up in the ever-changing environment, the knowledge of all

business worlds is a need today. M.B.A. programs and management institution

provide a global manager to this modern business world. But only knowledge is

not enough for the business But successful implementation of the know s the key

to success.

Hence in order to get acquainted with the practical knowledge each student

is required to implement the theoretical aspects of the subject in to the practical life

work.

After a lot of brain storming we decided tourism industry as a title of project.

We decided to work on this title.

We referred so many magazines, wed sites, books and newspapers for. The

study purpose. This project will be fruitful for us in the future also. We are

presenting this report, which comprise of secondary data and to out best knowledge

it is true and fair.

ACKNOWLEDGEMENT

It would really difficult for me to complete the project without find co-

Operation of certain people. In other words are so many external who directly help

me in our project.

First of all we are grateful to Pro.Versha Turi who guided us regarding the

project contents and issues related to it. Further we are very grateful to who

provided their valuable guidance to us regarding the project.

We are also very grateful to our friends, who helped us and guided us

Regarding the sources of information related to particular industry.

We are also very grateful to the GOOGLE who guided us regarding the

sources of information.

CONTENT

CH. NO. PARTICULAR PAGE NO.

Preface 1

Acknowledgement 2

1. History of Tourism Industry

2. Market Segmentation for tourism

3. Gujarat Tourism

1 Introduction

2 Infrastructure position

3 Transport connections

4 Marketing

5 Major developments

6 Objectives

7 Proposed approach and strategy

8 Planning for tourism development

10 SWOT Analysis – Gujarat Tourism

11 Key Success Factors

4. Bibliography

1. History of Tourism Industry

It is difficult for us to have command on the cyclic movement of fashions,

needs, requirements and the lifestyles. The law of nature, which forces us to

welcome a change, of course, influences the process of change. If we delay, the

seeds of dissatisfaction and monotony get a conductive nexus for their germination

and development. Hence to control or regulate the process, we allow a change

which influences our decision-making behavior and forces us to welcome a change

of place. It was against this background that the travelling was transformed into a

business and of late is an industry. The process of transformation has witnessed

number of ups and downs in almost all the areas. Right from the very beginning of

culture and civilization, we find the process of change continuing, of course as a

pilgrimage. There is no doubt in it that the Roman Empire injected life, strength

and the continuity to travelling and therefore the credibility for the development of

tourism industry ultimately goes to them.

The fall of Roman Empire resulted into downfall of tourism, at least till the

end of Middle East. The available facts reveal that Roman evinced interest in

visiting temples, shrines, festivals and baths for health and amusement. The

contours of Development underwent radical change atleast till the 15th century.

The trade and commerce along with religious activities gained the momentum but

till the beginning of industrial revolution, tourism continued to remain the matter

of pilgrimage. Of Course a number of developments took place between 15l and

18l centuries. Specially In the industrial world which raised the significance of

specialization or expertise for excelling competition. This motivated the elite of the

society to go abroad for enriching the knowledge, speeding up the learning cycle

developing the excellence and making possible cross fertilization of thoughts and

ideas. By the turn of 19lh century, we find multifaceted development in

transportation, communication and, technological sophistication, which energized

the process of industrial transformation. The tourism started developing as a

business and the professional Travel agents started taking part in the process. With

the beginning of the 20lh century the process of invention and innovation stated

gaining momentum which made ways for the development of infrastructural

facilities and further added new dimensions in tourism business. No doubts,

the World War I and World War II obstructed the flow of development but the

second half of the 20th century proved to be golden age, since almost all the

countries of the world started patronizing tourism as an important economic

activity.

Thomas cook was of the view that beauty is for the people. The opinion of n

Mr. Cook generated new dimension in the tourism business, which paved copious

avenues for development of tourism as an industry. We can't deny that since the

time immemorial travel has been first choice of masses , the qualitative

improvement in the process could take place with the participation and co-

operation of leading global organization , such as WORLD TOURIST

ORGANISATION, PACIFIC AREA TRAVEL ASSOCIATION,

INTERNATIONAL UNION OF OFFICIAL TRAVEL ORGANISATION or so

With the development of a broader concept, the essence of Tourism further

distilled and it was more holistic approach because in the general theory of

tourism, Walter Hunziker and Kurt Kraph (1942) considered it both a human As

well as economic activity. In 1974, Burkat and Medlik again brushed up this

approach since they viewed tourism as a composite phenomenon embracing a

whole range of different relationship between traveler's and the host population.

The fun and excitement, no doubt, gained the momentum with the holistic

approach. This New approach made possible development of traveling business

as an industry. The Policy planners as well as the environmentalists

pinpointed the side effects of manufacturing industries remained the only solution

to strike a balance between ecology and industry. The traveling business that was

transformed into an industry was found efficacious in delivering goods to

the socio-economic molecule and the multiplier effects could be extent. .Almost

all the countries started exploring new devices for generating foreign exchange to

fulfill their multi-dimension socio-economic requirements.

The intensity foreign exchange requirement was found at its peak and the

tourism appeared to all of them an important source to be tapped optimally.

In the face of succulent benefit, the developed, less developed and even the

Developing countries started assigning due weight age to the tourism industry in

their national development agenda. We agree with this view that with tremendous

Socio-economic potential, the tourism industry is considered to be an economic

bonanza which paves avenues for the Development of a number of allied

Industries, such as hotel, communication, banking transportation, trade and

commerce or so. In addition, we also consider tourism a potential source for

making possible world peace through mutual appreciation and international

understanding.

In the Indian perspective, we find Seventh Five Year Plan as watershed in

the Development of tourism industry. For the first time, the vast potential of

tourism as a foreign exchange earner and generator of employment opportunities

was recognized.

Several policy initiatives were taken to develop the tourism sector In the

development of tourism, the public sector has made a significant contribution. Of

late, the industry is equipped with a reasonable infrastructural base and is poised

for a self-sustained growth. The future growth of tourism is required to be

activated with the support of the private sector. The strategy for the development

of tourism is required to be designed on the basis of low-cost economy, higher

level productivity, efficiency in the use of infrastructure and sophisticated tourist

facilities.

In the Eighth Five Year Plan(1992-97), the special tourism areas have been

selected and in the Ninth Five Year Plan(( 1997-2002), we took forward the

energizing the process of development but the image problem is found

complicating the task of Professionals. In the business world, we need more

professional excellence to make an assault on the image problem and it is in this

context that we make a strong advocacy in favour of conceptualizing innovative

marketing with help of world class professionals. We have tremendous

opportunities and the professional excellence would make ways for capitalizing on

the same optimally.

2. Market Segmentation for Tourism

The behavioral scientist feels that appeal, strategy and tact vary from

segment to segment in a natural way necessities a change in strategic decisions.

The modern marketing theory prefers the formulation of marketing policies and

strategies for the each market segment which an organization plan to solicit. It is

natural that different segments react in a different way. Segmentation makes

possible tailoring of products and marketing programmes uniquely suitable for

each sub-segment. A market is not only an aggregate demand for a product but the

sum of demands of different market segments. For getting a positive response in

the market, it is pertinent that the marketer's of the tourist professionals are well

aware of the different market segments. It is against this background that we need

to study market segmentation for tourist services.

At the outset, it is essential that the tourist organizations select a suitable

base for segmenting the market. The selection of base has a for reaching impact on

studying the target market. Though there are a number of bases for segmentation,

we find lifestyle an important base since the traveling decisions are fantastically

influenced by the changing lifestyles. The emerging trends in the level of income,

the availability of leisure hour of course influence the process but the main thing is

the lifestyle. This is supported by the logic that if we earn more, we spend more.

We prefer to utilize our leisure time for gaining pleasure or for enriching the

knowledge bank. This necessitates an in-depth study of like style for making

segmentation proactive. The living styles of Americans and Indian can't be

identical, the decision making of both of them are to be different. The American

prefer to travel and therefore they assign due weightage to the traveling decisions

while scheduling or ordering their engagements. The Indians avoid traveling albeit

we find them earning more or sufficient leisure time or holidays in their hands.

This makes it clear that for segmenting market, we find this variable constituting a

place of outstanding significance.

The aforesaid facts make it clear that for getting a positive response, the

segmentation of tourism market needs an intensive care. The tailoring of products

with the expectations of tourist or a fair synchronization of tourist's

expectations and potentials of the tourist organization would hardly be possible

unless we segment the market in a right fashion. The opinion leaders prompt the

whole drama of marketing where the word-of-mouth promoters play an

incremental role. The process of segmentation simplifies the task of marketers.

Tour operations, the transport operators the travel agents, the tourist guides, e

hotels find it easier to make the marketing decisions. They even with the minor

intelligence and diligence are found successful in identifying the market the

potential tourists. It is right to mention that the needs and requirements well as the

levels of expectations can't be uniform.

The segmentation benefits tourist organization in different ways. An

optimal marketing plan, a balanced development of marketing resources, true

gauging of the level of expectations, formulation of creative strategies for getting

a positive response make it clear the tourist organizations assign due

weightage to segmentation. They are supposed to select a suitable base

for segmentation out of numerous bases like day base, purpose base, demand base,

geographical base, Psychological base, demography base, socioeconomic base, sex

base, age base or so.

These bases help professionals in studying and understanding the changing

behavioral profile of users. The market segmentation bases make it clear that

geographic, demographic, psychographic and socio-economic aspects can't be

underestimated to have clear picture of the tourism users.

1. Holiday as a Base - Mass Market, Popular Market

2. Demand as base - Primary, Secondary opportunity

3. Geography as a base - Cities, Provinces, Regions, Countries

4. Psychography as a base - Lifestyle, Personality Motive, Product,

Knowledge.

5. Demography as a base - Age, Sex, Occupation, Class, Religion.

6. Socio-economic of base - Rich, Poor, Rural, Urban, Literate, Illiterate

7. Purpose as a base - Business Travel, Cultural Tourism, Common Interest

8. Age as base - Kids, Teens, Youths, Young, Married, Single.

The holiday base focuses or attention on the fact that long-distance tours

require availability of more leisure hours. The holiday market is classified in terms

of demand. The different categories are, the mass market, the popular market and

the individual holiday market. The mass market involves largest number of-

vacationists who generally travel in long groups. They prefer all-inclusive tours.

The users belong to the conservative group in which we find skilled and semi-

skilled workers, blue-collar employees as the potential users. The users are

generally class one and class two groups, pensioners and retired people. The

individual holiday market involves "social group-A7 like corporate chairman and

senior executives. We find an apparent change in the behavioral profile of different

categories in the holiday base. Another base is purpose in which we find business

travel market, cultural tourism market, common interest tourism market and

conference and convention.

The demand base classifies markets into primary tourism market, secondary

tourism and opportunity tourism. The geographic base includes lifestyle,

personality, motives, product and knowledge. The demography base covers age,

sex occupation, class and religion. The socioeconomic base makes classification

like rich, poor, rural, urban, literate and illiterate. The age-base classifies markets

for kids, teens, youths, young married and old people market.

The aforesaid small segments simplify the task of tourist professionals. They know

about the changing needs and requirements of different segments and innovate

their strategic decisions accordingly. The development of marketing resources in

tune with the changing levels of expectations make the ways for the stimulation of

demand and simplify the task or marketers. It is in this context that we need to

segment the market for the different allied industries helping the tourism industry

in many ways.

3. Gujarat Tourism

1 Introduction

Hospitality, the foundation on which the structure of tourism is built, is

indigenous to Gujarat. Gujarat sends largest number of travelers to almost every

corner of the world. But its strength to be host has not been fully utilized due to the

lack of information highway. Gujarat offers colorful experience to its travelers

packed with pleasant surprises - endowed with forests and deserts, hills and plains,

sea and lakes, tribal hinterlands and special interest destinations with a strong rail,

road and air network. Gujarat - be the only lion sanctuary of Asia, the only temple

clad summit of Shatrunjaya and the only site of the Indus valley civilization with

an elaborate network of hotels, restaurants, entertainment parks, water resorts, kala

bhandars & many more, has an inherent strength to pull the tourism all over the

world under the umbrella of web based services. Gujarat has made economic

strides on the strength of private enterprise, pragmatic public policies and efficient

administration. While industrial growth is particularly intense in Ahmedabad -

Vapi corridor, the development is not skewed.

19.2 Infrastructures Position.

1

.

Installed Electricity Generation Capacity (MW) 5076

2

.

Electricity Generation (Crore KWH – 1993-94) 2412

3

.

Roads (km)

* National Highway 1570

* State Highway 19609

* Main district roads 20268

* Other district roads 10337

* Village roads 18175

4

.

Railway Track (km) 5227

19.3 Transport Connection.

1

.

Railway Facilities Extensive Network

2

.

Functional Airport 11

3

.

Non-Functional Airport 14

4

.

Airlines operating in Gujarat Indian Airlines

Jet Airways

Sahara

Gujarat Airways

5

.

No. of flights landing in Gujarat Over 100

6

.

International flights from Ahmedabad London

New York

Muscat

Other Destinations

19.4 Marketing.

In tourism marketing a destination is being marketed. Once a destination is

shall to a customer or customer group, everyone who is providing the service in

relation to tourism gets benefited. A destination can have a large variation of

products or benefits to offer and a unique combination of features that cannot be

duplicated elsewhere. The question that arises is how is one to attract tourists to

Gujarat – an industrial hub of India – had nothing as glamorous as the Taj Mahal

or the backwaters of Kerala or the beautiful landscapes of Kashmir to talk about.

This was the task faced by TGCL in 1975 i.e. how to develop and promote tourism

in the state and maintain and strengthen the existing tourist infrastructure.

19.5 Major Developments

The foreign tourists are slightly bored with Rajasthan. Gujarat in terms of

culture and craft is rich and varied and offers a unique combination of desert and

sea. The private enterprise is adding to Gujarat's attractions. For example, the high

teach mega religious complex of Swaminarayan (Akshardham) set up in 1990s is a

tourist destination in itself. The area around Ahmedabad and Gandhinagar is

emerging in to a major recreation region of western India with Akshardham,

waterparks, amusement parks, multiplex cinemas, clubs and resorts. Big hotel

chains like the Taj, Oberoi, Holiday Inn, ITC hotels now have a presence in

Gujarat. The civil aviation scene is also experiencing a boom. Over 100 flights

land at 11 Gujarat airports everyday.

A separate Tourism Department was established in 1973 to identify and

develop the tourism potential in the State This was followed by the creation of

Tourism Corporation of Gujarat Limited in 1978, which was entrusted with the

task of undertaking and developing tourism related commercial activities. The

Corporation is presently engaged in a variety of activities such as creation of

loading and boarding facilities for the tourists and other aspects of tourist

facilitation such as transportation, packaged tours, wayside catering along the

National and state Highways, arranging cultural festivals, organizing exhibitions

and producing and distributing maps, posters, brochures and pamphlets. The

Corporation has set up accommodation facilities at Chorwad, Ahmedpur Mandvi,

Porbandar, Veraval, Hajira, Ubharat and Tithal. Similar facilities at pilgrimage

centres like Palitana, Somnath, Dwarkja, Pavagadh and Dakor have also been set

up by the Corporation. One of the recent tourist attractions introduced by the

Corporation in collaboration with the Indian Railways is a special tourist train. The

Royal Orient Train that connects up various tourist destinations straddling the

Gujarat and Rajasthan State. However, the Corporation has suffered losses due

to a number of organizational constraints. In order to minimize these losses and

also to provide better services to the tourists, the Government has

undertaken privatization of some of the commercial property unities of the

Corporation.

In spite of possessing a variety of tourist attractions such as wildlife, scenic

beauty, pilgrimage centres, exotic traditional crafts and festivals, beaches,

hospitality of the region and a varied healthy and tasteful cuisine, the State has not

been able to accelerate the pace of tourism in comparison to other state. In 1991,

the State did declare a tourism policy but it did not elicit adequate response from

the private sector since the policy contained only a handful of benefits while the

implementation was tardy due to legal and administrative constraints. This was at a

time when the Government of India had already declared tourism as an industry

and a large number of states had followed suit. This enabled the tourism industry to

avail of incentives, reliefs, and benefits available to the industry in those states.

While other state Governments made successful offorts in developing

tourism within their states, the relative inability of the Gujarat State to harness and

develop its full tourist potential may be attributed to a combination of factors such

as lack of effective policies, inadequate infrastructure, ineffective marketing and

lack of decent facilities for the tourists.

19.6 Objectives

The main objective of the Gujarat State Tourism is to intensive Development of

tourism in the State and thereby increase employment opportunities. The following

related objectives are dovetailed with main objectives.

* Identify and develop tourist destinations and related activities.

* Diversification of tourism products in order to attract more tourist Through a

varied consumer choice.

* Comprehensive development of pilgrimage centre as tourist Destination.

* Create adequate facilities for budget tourists.

* Strengthen the existing infrastructure and development new ones where

necessary.

* Creation of tourism infrastructure so as to preserve handicrafts, folk arts and

culture of the state and thereby attract more tourist.

19.7 Proposed Approach and strategy.

The Government should adopt the following strategy towards the private

sector with the objective of securing the active involvement in Leading the

development of tourism in the State.

• The tourism should be given the status of industry in order that the facilities

and benefits available to the industry are also made available to tourism

projects.

• A special incentive package should be made available for encouraging new

tourism projects as well as expansion of existing tourism units.

• Infrastructure facilities should be strengthened and developed within the

State, particularly in Special Tourism Areas.

• Effective mechanism should be set up to build meaningful coordination with

the Central Government and the State Government agencies, the local self-

government bodies and the NGOs.

• Government should encourage building effective linkages with the economic

agents and agencies such as the national and international tour operators and

travel agents of repute, hotel chains and global institutions connected with

tourism such as WTO.

19.8 Planning for tourism development

A perspective plan for tourism development will be prepared in consultation

with experts. An overview of possible tourism products is offered below.

1. Religious (Pilgrimage) and Archaeological Tourism Gujarat has a hold of

pilgrimage centers like some other states. Somnath and Dwarka- some of the well-

known and revered sites of ancient Hindu temples- are situated in the state.

Architecturally brilliant and of significant religious importance are some of the

temples of the state like the ones at Shetrunji, Girnar, Taranga,and Ambaji. Other

temples like those at Dakor Pavagadh, Bahucharaji, Shamlaji, Narayan Sarovar,

Sudamas Porbandar, Kabirvad, Shuklatirth, Kayavaohan, Bhadrakali (Ahmedabad)

and Tankara(Maharshi Dayanand Sraswati's birth place) are also important

pilgrimage destination, which have kept alive the religious sentiments of the

people, Millions of pilgrims visit these places every year.

Not only the devotees from all over the country but also by Non-Resident

Indians and travelers visit these places especially from the eastern part of the

world. Necessary accommodation Facilities and related services will bee created

on these sites. For ensuring orderly and planned development of pilgrimage

centers, the state government has constituted Pavitra Dham Vikas Board chaired by

the Chief Minister. The board will implement plans to provide necessary facilities

to devotees and also ensure conservation of cultural atmosphere consistent with

sentiments of visiting devotees. Shamlaji is an ancient site for Buddhists. The

excavated relies from the Buddhist period at the site are now kept in a museum at

Baroda.

There are a number of places of archaeological importance such as the

temples town of Palitana. Modhera withits Sun temple, historical Rani ki Vav at

Patan with the relief of an ancient capital, the Girnar Hills with Hindu and Jain

temples, Junagadh with a historical fort,Dabhoi, Champaner, Pavagadh, Shaking

Minsrets, Gandhi Ashram, Sidi Sayed Jali etc. These can be developed by

providing necessary infrastructure facilities and marketed tourist destinations to

attract tourists.

2. Heritage Tourism

A large number of old palaces, havelis, darbargadhs exist in the state.These

historical building can be converted into hotels, restaurant or museum by providing

suitable incentives to owners. Wildlife and pilgrimage tourism circuits can be

linked to heritage properties exploiting the geographical congruity. Development

of this sub-sector will not only attract foreign tourists but also provide

encouragement and support to local art and crafts.

The government will take necessary steps to promote heritage tourism in the state.

3. Wildlife Tourism

There is substantial scopes for development of tourism based on wildlife in

the state. The Gir forest of Gujarat is the last stronghold of the Asiatic Lion. The

bear sanctuary at Ratan Mahal(Panchmahal district), Black Buch Sanctuary at

Velavadar (Bhavnagar district),bird sanctuary at Nalsarovar (Ahmedabad district),

wild asa sanctuary at Kutch etc.can be effectively developed into tourist

destinations by providing infrastructure facilities. In order to facilitate visitors to

these areas, coordination among agencies will be established.

4. Coastal and Beach Tourism

Gujarat state has the longest coastline among the maritime board states of

the country. Identified stretches of coastline can be developed into beaches from

the tourism point of view. It will be the endeavor of the state to develop beach

potential by providing facilities as they attract foreign tourist. Various tourist

destinations easily accessible from the coast will be linked through coastal

shipping circuits.

5. Tourism based on Traditional Art, Craft and Cultural Activities.

Banni in Kutch, Khambhat, Junagadh etc. are known for their

craftsmanship .Similarly, there are hundreds of fairs that are celebrated throughout

the year with enthusiasm. The Tarnetar Fair in Surendranagar district, Chitra

Vichitra Fair at Poshina (Sabarakantha district), Kanwat Fair at Chhota Udepur

Panchmahal district), Danf Darbar at Dang, Bhavnath Fair of Junagadh, Vautha

Fair of Ahmedabad etc. have immence tourism value.By developing

accommodation, transport and other facilities, these fairs and festivals will

promoted nationally and internationally. The places of importance from the art and

craft point of view will be included in the tourist circuits and necessary facilities

will bee provided to tourists.

6. Corporate Tourism

The private sector will be encouraged to build state-of-the-art Convention

centers, seminar halls etc. so as to attract corporate events like seminars,

workshops and annual general meetings. Participants in such events generally have

high purchasing power and provide boost to the local economy.

7. Adventure Tourism

This is also a territory with the possibility of development as a , sub-sector,

which will be examined and new activities like camel safari Kutch, horse -riding in

the Aravalli hill ranges, Parachuting in Saputara, trekking in Dang, Pavagadh,

Palitana etc. will be promoted. Such activities will create large- scale Employment

opportunities for guides, collies, traders for hire Of tents and equipments etc. and

will also encourage paying guest accommodation in such areas Private

entrepreneurs and Institutions will be encouraged to develop such facilities.

8. Highway Tourism

There is a good network of state and national highways, which Criss-cross

the state and a large number of travelers prefer road journey. Because of the large

geographical expanse of the state, these journeys tend to be quite long and boring.

There is a need for creating necessary facilities like hotels, restaurants, picnic

spots, water parks etc. along the highways at suitable intervals for the highway

travelers to relax. In fact, travelers can be induced to follow certain traffic routes if

such facilities are better developed. Highway facilities and wayside amenities are

so well developed in some states that this has become the mainstay of tourism. The

state shall encourage private investors to create such facilities on the highways.

19.10 SWOT Analysis-Gujarat Tourism

• Government support( in term of grants) - both government of Gujarat as well

as government of India sets aside annual grants for the development of

tourism in the state.

• Wide network of Services under its fold-includes hotels, tourist Information

Bureaus etc.

Weakness

• Significant internal weaknesses

• Low employee morale

• Lack of professionalism in the organization.

• Bapu culture prevalent

• In-effective Promotions

• Awareness regarding its products, services as will as its investment

opportunities in this sector has not been highlighted.

Opportunities

• Scope for investment in new ventures

• Joint ventures with private parties

• Cashing in on excellent infrastructure facilities

Threats

• Competition from other state tourism corporations

• Private parties assuming the role played by TCGL at this juncture.

19.11 Key success Factors

• Improved service quality

• Increase in usage of those services

• Boosting employee morale