Destination Analysis of India - Case Study Example

Destination Analysis Name of School Name of Course Name of Class Date of Submission Destination Analysis Destination Overview: describe the destination’s location, Political structure, India has a parliamentary system of government it’s a sovereign nation and a secular one too. The constitution of India governs the politics of that nation since it was adopted in 1949 by the constituent assembly and later on came to force in 1950. The president is in charge of the execution of the Union. Real executive power is basically managed by the prime minister while the council of ministers also has a say in it. Furthermore, it is the prime minister and the council of ministers that should assist the president in implementing the policies put forward by the constitution. The Council of Ministers is collectively responsible to the Lok Sabha, the House of the People (Zubeda, 2012). Economy, In terms of purchasing power, India’s economy is the third largest in the world and will keep getting better with time. One of the predictions made by the Global Investment Bank stated that in the year 2035, India’s economy would be the third largest after China and the US. It is possible for it to grow by 60% the size of the economy of America. The history of the country’s economy can be divided to three categories; pre colonial, colonial and post colonial. After India’s independence in 1947, the process of rebuilding the economy began (Jennifer, 2009). Agriculture is one of the sectors that received a boost as well as the industrial sector. With these developments there were more vacancies for people to apply for jobs. Since then, the level of unemployment reduced while the economy has greatly improved. Some of the most crucial steps that the country took to gain momentum economically include financial liberalization, tax reforms, trade liberations and opening the country for foreign investors. Economic liberalization by the finance minister in 1991 proved to be a stepping stone for the reform movements (David 2010). Demography, India in demography ranks the 2nd in the world’s most populated countries. As per the census done in 2011, India has a total population of about 1.21 billion people. It has actually been estimated to surpass china as the most populous country. The growth rate is at 1.41%. Indian demography projects different information regarding the country (Bradnock, 2004). Culture Humanity – Indians have remained mild despite the fact that some Muslim conquerors were very aggressive in reforming foreign policies. Indians are known for their nature of calmness and humanness without being harsh in their ideals and principles. Tolerance – India was commended on an international arena by working wonders with their agenda of believing in freedom without shedding blood. In his famous speech in 1893 in Chicago, Swami Vivekananda spoke about this. Unity - India is comprised of men and women from various creed and castes. It is a combination of both the old and modern principles and ideas and in effect all generations in present India are satisfied. The high and mighty and the common citizen all pray to the same deity and they share the same news. This has somehow brought an agenda of equality (Debarl, 2010). Secularism - India is a secular nation just like it is outlined in its constitution. Freedom of worship is there as everyone respects the other person’s religious beliefs. All religions represented in India work together especially during a crisis neglecting all their differences. Closely knit Social system – India’s social system is based on the system of joint family. However, some recent nuclear families may differ. The families are so close to one another from the grandparents to the grandchildren as they all work in the same spirit and share traditions together. Climate Basically, India has tropical weather. However, for the entire country’s weather to be covered, it has to be divided. The subcontinent has climatic zones which are eight in number and all experience monsoon rains. This is one of the factors that is rather common among all of them. However, the monsoon comes to different parts of the country at different times. At that time, if one flies in space, they can experience a range of weather patterns from the cold air of the mountains to the heat of the Rajasthan Desert where temperatures could even get to 45C. Nevertheless, in most parts of the country that are reserved for tourism, the weather is arm and sunny making it very conducive for foreign tourists to enjoy India (Zubeda, 2012). The Destination Tourism and Hospitality Governance System: describe key government and industry organizations that market and or manage India In the past year, India’s GDP has slowed down while its current deficits and fiscal have increased. Furthermore, the inflation rates which are persistent have raised concerns over the general outlook of the country’s economy. As a result, the government has embarked on a process of making it easy for foreign investors to come to India by reducing the restrictions and the foreign direct investment. However, reforms in policies have been delayed in parliament decisions hence breeding uncertainty about the measures meant to improve the investment climate (Blanke, 2011). In India, decision making and power is decentralized. In effect, investors should be prepared to face challenges in business among all the twenty eight states and seven union territories that India has. Each state has its own difficulty and one should do enough research before settling to do business. Differences are encountered at state level in regulations, taxations, quality of governance and political leadership. Although India takes pride in its rule of law, the truth is that their courts have pending cases for many years. Out of some accounts that were done recently, more than 30million cases are still pending in Indian courts including the high court itself (Chiesa, 2012). Nevertheless, companies have formulated ways of dealing with issues in this difficult market. Most of the technology companies in India can be placed at the same level with their international prominent. The level of innovativeness and competitiveness in some sectors such as telecommunications and engineering are recognized globally. Foreign companies that have invested in India and succeeded advise that there needs to be a planning horizon on a long term basis that can implement strategies which can easily adapt to the diversity seen in India’s markets (Stephen, 2011). Destination Infrastructure: describe important transport Accommodation, food and beverage and attractions services Destination marketing and management at all levels of state aim at creating awareness to the whole world concerning the various destinations and also provides information on the state of the country from every arena. It enhances the use of ICT which provides interactive portals where the destinations are showcased to interested individuals in a form that may be impossible in other arenas. Internet sites also act as a system of central reservation allowing people to book in form of groups or even on a personal basis. In addition, a major component of the industry of travel and tourism is attractions including monuments, events, professional causes, theme parks, natural attractions and scenic locations (Debruyn, 2010). The tourist information and guidance providers include communication, recreational, banking, tour guides, industry, government agencies, packaging agents and holiday sellers. The roads leading to these sites have been constructed well so that tourists may move around easily. However, most roads in India are still damaged and since good infrastructure can improve the economy a lot, the government is always encouraged to invest in good roads. India has invested a lot in trains and motor bikes in transporting people. Normally the trains are crowded and for a new person in the country, it may not be so advisable because of the stampede. In such crowds, there are many thieves who take advantage of the situation and steal especially from foreigners (Chiesa, 2012). Often Indian food is eaten by hands although this old custom is governed by some basic rules. For instance, it is considered wrong and rude to let the food fall from the joint of the first fingers. Furthermore, fingers are not supposed to touch the mouth in a direct manner. In addition, it is only the right hand that should be used while eating. Indian soup is served with a spoon but the bread provided can also be used. If meat is served, the person is given a knife and fork but since most of it is pre cut it can be easily managed by the fingers. In India the largest meal is served at mid day yet the lightest during dinner. Most Indian workers prefer going home for the mid day meals (Zubeda, 2012). The different accommodation options in India offer some of the most hospitable services combined with warm hospitality which is a reflection of India’s rich culture. Welcome Group is one of the main hotels that have branches and chains all over India. All these hotels offer exemplary services and good hospitality to its guests. Nevertheless, it is important for tourists to know that in order to get good accommodation, they should be ready to spend more because these good hotels are more expensive but the services offered are excellent (David, 2010). Destination Visitor Markets: describe key inbound tourist markets and characteristics of their travel behavior (e.g. number, place of origin, expenditure, use of tourist services, etc) Globally, the tourism industry is one of the largest with regard to foreign exchange earnings and gross revenue. In terms of employment generators, the industry is also among the largest because so many people have gained from it. Tourism has been motivated by the urge for adventure and recreation that every human being has. It is also a social activity driven by business interests, religion and knowledge seeking individuals. As a result, tourism is definitely a source and consequence of economic development. Other sectors of the economy can be stimulated by tourism and hence enhancing teamwork among all sectors in order to improve the economy of a certain region. It has also improved international relations because countries have formed friendships due to the exchange of citizens during visits (Stephen, 2011). In terms of diversification, tourism in India gives products that are varied. The country is rich in religion diversity, cultural heritage, beauty and medicine. Tourism in India has experienced immersive growth over the years. This has also been caused by the rise in incomes among the people. Locally, the Indian people are not so much into tourism because most of them feel it costs too much money. Most tourists who visit are from abroad and normally they save a lot of money before coming. However when they get to India, their level of expenditure is very high. The ministry of Culture and Heritage in India has been encouraging its own citizens to visit the beautiful sceneries and museums that India has in order to broaden their knowledge. Most of the tourist services are used by international tourists who come from all over the world including the US, Australia, Canada and even the UK (Debarl, 2011). Most players in the tourism industry in India are small and medium enterprises. The sector that is unorganized dominates the industry in that country. The organized sector is formed by airline companies, hotels, companies and tour operators. Travel arrangements are made by specialist travel service providers. These providers are travel agencies who are involved in retailing of travel products to the tourists directly. On the other hand, business travel agencies make prior arrangements for tourists and in essence they also promote conference trades. The tour operators provide packages for individuals while the principals provide basic travel and tourism related services (David, 2010). Global scenario In many countries, the travel and tour industry is one of the fastest growing. In 2009, it was estimated that it generated about 9.4% of the world’s GDP and 8.2% of the total employment. The industry has contributed a lot to the global economy. In a span of seven years between the years of 2001 and 2008, the international tourist arrivals grew to about 682 million. In 2009m the industry was hit by the financial meltdown and global economy leading to a decline in the services offered. Low business volumes and consumer confidence were some of the factors that grew due to this uncertainty in the business. Employees of the tourism sector lost their jobs and therefore the rate of unemployment was very high. Consequently, in 2009, the tourist arrivals fell by 4% world wide (Chiesa, 2012). However, all these issues that have posed as a challenge have been dealt with over time and a solution has been identified amicably. Tourist attraction has since then increased greatly and the business is getting back to its initial stages. Nevertheless, tourism is recognized globally and as long as a country has political stability, tourism and foreign investments can really thrive. Destination Issues: describe business problems and opportunities in the destination Lack of the basic infrastructure is one of the issues that stand out. The problem of electricity is also another factor. Electricity goes off severally during the winter season. If one runs a business that deals with computers and data storage, the issue of electricity can really be discouraging. Important data has been lost when there is a black out and unless one has another source of power that is uninterrupted, it may cost the business a lot. Such businesses that rely on electricity to run every errand are extremely unproductive when there is no electricity. Water supply is also insufficient in some parts but most businesses in the service sector may not be affected as they do not typically rely on water to rum their business but it can still be a major hic up especially in hygiene issues (Blanke, 2011). Occasionally, internet connection gets cut off in as much as most parts of the country have functional internet services. Productivity can also be lost in such a case. Foreign investors eyeing India for booming business should evaluate all these challenges and ensure they have a plan of dealing with it so that it does not affect their productivity. Experts say that opportunities are in plenty around India. This is because it is a great nation that is interested in growing their economy to a world class level. The people in India know they need services and products from abroad to enhance this growth. American companies interested should know they have huge benefits if they proceed to do so. Goods from America are perceived to be of good quality since they are very conscious of their brands. It is rather easy to identify fake products in America and most people have come up and invested in good quality to reduce counterfeits. This may work as a great advantage for India because the culture of appreciate quality and durability more than price may be formed. Every investor who may want to make money should definitely try India and also improve their economy by employing local citizens who are qualified and give results (Zubeda, 2012). References Blanke, J. (2011). “The Travel & Tourism Competitiveness Report 2011” Beyond the Downturn. pp. 17, 66, 216. Bradnock, R. (2004). Footprint India Footprint Travel Guides, UK: Bath publishers. Chiesa, T. (2012). "Top 100 Cities Destination Ranking". Euro monitor International. 01-21. David, S. (2010). "Southern Star". India Today. 3 p.24-25. Debarl, S. (2011). "Travel & Tourism 2011". World Travel and Tourism Council. p. 26. DeBruyn, P. (2010). Frommer’s India. Keith; Venkatraman publishers. Jennifer, S. (2009). "Annual Report 2009–10". Ministry of Tourism, Government of India. 6 p. 27-32. Stephen, M. (2011). India's top 10 tourist destinations – Rediff.com Business. UK: Rediff Publishers. Zubeda, H. (2012). "The medical capital's place in history". The Hindu. V.3 p. 24-34. Zubeda, H. (2012). “Market Research Division, Ministry of Tourism,” Government of India. 23 p. 15-16. Read More