The Growth of Tourism in Kerala - Assignment Example

Background Kerala is the southernmost in India, which has been blessed by the bounties of the lush green nature. It has a natural blend of backwaters, hill stations and beaches. It is this mighty combination that has made the state an important destination in the international tourism map. The state has been given the title, "God's own Country" with reference to the blessings bestowed upon it by the nature (Oommen, & Nair, 1994, pp.L..1-L.7). Adding to the glory of the state as a tourism destination, the colorful traditions of the place, along with the much renowned hospitality of the people has made it a much in demand destination. The economy of Kerala since last few decades has highly depended on tourism as a core source of income. The variety in the destinations it hold as a state has helped to maintain consistency in the tourist in flow. To explain this further, when the activity of tourism was affected highly due to some reason or the other in one kind of destination, Kerala was able to maintain a consistency as the different type of destination negated the loss happened on other sides. When Thekkadi, Munnar and Wayanad gained tourism interests as hill stations, Alappey and Kumarakom gained huge publicity as much wanted backwater tourism spot (Oommen, & Nair, 1994, pp.L..1-L.7). On the other side, Kovalam acquired the status of a high in demand beach destination (Oommen, & Nair, 1994, pp.L..1-L.7). Thus the combination all these diverse kind of tourist spots has helped Kerala to gain the status of a highly preferred destination. The policy makers of the state have evolved with a number of tourist friendly programs which also ensured to support the community participation in tourism. Resultantly tourism has become the economic backbone of the state. Government with a number of support mechanisms is supporting the entrepreneurs involved in tourism helping them to serve the guest to their best. All these efforts in totality has helped Kerala to gain international recognition and since last ten years have successfully evolved as a key destination. One of the result of these efforts is that it has been listed by National Geographic Magazine among the 50 must see destinations. The trend in last ten years The government of Kerala has kept clear watch on the developments pertaining to tourism in their jurisdiction. It is consistently making relentless efforts to promote Kerala as a friendly destination with all the latest class as demanded by the industry. These efforts have found significant results especially with the case of tourists from Europe (GoK, 2009). The ever-increasing number of visitors to the State is a clear testimony for this. The state in the year 2008 has registered 14.28 per cent growth in the sector of domestic tourism and 16.11 per cent growth in international tourism (DoT, 2009). This statistics is in reference with the count of tourist arrival Year ' Domestic ' Tourists ' % of variation ' Foreign ' Tourists ' % of variation ' 1999 4888287 9.07 202173 6.44 2000 5013221 2.55 209933 3.80 2001 5239692 4.52 208830 -0.53 2002 ' 5568256 6.3 ' 232564 ' 11.3 ' 2003 ' 5871228 5.4 ' 294621 ' 26.7 ' 2004 ' 5972182 1.7 ' 345546 ' 17.3 ' 2005 ' 5946423 -4.3 ' 346499 ' 0.27 ' 2006 ' 6271724 5.47 ' 428534 ' 23.7 ' 2007 ' 6642941 5.92 ' 515808 ' 20.37 ' 2008 ' 7591250 14.28 ' 598929 ' 16.11 ' Source: (DoT, 2009). The statistics as tabulated above clearly indicates the growth of tourism in Kerala all through lat decade. The trend has shown clear indications of growth as the number of tourists has increased both domestic and foreign. However, there had few exceptions in the upward trend, but this has obvious internal and external factors associated with it. The trend in tourist arrival has been represented in the graphs below. Source: (DoT, 2009). The scope of tourism as a growing industry in Kerala is reiterated by this graph. Domestic tourist refers to the tourists from within the country which includes the ones from the state as well as from other states of India. Contrary to the common trend, in 2005, there had a downfall of 4.3 percent in the tourist inflow to Kerala (DoT, 2009). This was caused due to detrimental effect of tsunami in December 2004.There is ample evidence to confirm that tourism on a global basis has been hit badly by tsunami. "Indira Point, which was India's southernmost tip and a 100-sq km island, has just disappeared into the ocean... Although there were some tourists and Andaman & Nicobar Islands were being positioned to become the next Maldives, these plans will now need to shelved, as there has been huge loss of coral and other marine life. Loss along India's main coastline was concentrated on some regions and recovery and re-habilitation work is currently ongoing." (Devris J, 2005). Thus there had been a reversal of the growth trend in the year which followed. However, as far as tourism in Kerala is concerned with reference to the domestic tourists, the industry reinstated its pace of growth as by the end of the year 2006, there had been an increase of 5.47 per cent in the number of domestic tourists who visited the God's own country (DoT, 2009). The trend was not different in the case of international tourist arrivals as well. The trend observed during the period 1999 to 2008 has been shown in the graph below. Source: (DoT, 2009). Consistent growth in tourist arrivals can be observed in the case of international tourists as well. As in the case of domestic tourists, in the post tsunami year International tourist arrival also slowed down. However, the slowdown didn't grow to a level that could bring in negative growth, reflecting a growth rate of only 0.27 percent (DoT, 2009). A downfall of 0.53 per cent was shown in the year 2001for which a number of factors pertaining to the global economy would have contributed. This should be read together with the fact that the global economy in this period was on a recessive mode following the dot com bubble blast. The September eleven terrorist attach on the US also contributed much towards this downward trend. However, while comparing the trend of growth in the previous years to that of 2001, this downfall did not create a major problem (GoK, 2009) While comparing the ratio of domestic and International visitors, it can be observed that there had been a considerate growth in the quantum of international tourists. This would mean a considerate increase in the revenue as the spending capacity of the international tourist would be high in comparison with the domestic tourist. In the recent years both domestic and international tourism has observed abrupt growth. The influence of internet has helped generally both the small and large players in Kerala's tourism arena to widely extend and market their facilities to the world This facility when merged with the scope of technologies like online booking and ecommerce has made the growth process spread across the globe with no geographic limitations (Symonds, M, 1999). Economic Impacts of Tourism in Kerala The Government of Kerala has confirmed tourism to have emerged as an important tool for the economic development of the state (GoK, 2009).The industry is a major income generator and holds the potential to provide huge amount of employment opportunities. Tourism becomes of more relevance in the current economic context of Kerala as its conventional industries like Agriculture and manufacturing industries are facing serious threats in terms of profitability. Another major concern for the state is the inconsistency developed in the job prospects in the Middle East countries which had been a major revenue maker for Kerala. In the context of these developments tourism becomes of much economic importance to the state of Kerala (Joseph, B & Joseph, K J 2005, pp.37-57). In light of this, the government of Kerala is giving priority to invite large scale private investments in the tourism sector of the state. The government has estimated that in the year 2008, a total investment of 5000 Million Indian Rupees has been made in the tourism industry (DoT, 2009). The same year tourism contributed to up to 6.29 per cent of the Gross Domestic Product. The industry has also created 700 thousand jobs in Kerala. Kerala had earned 131300 Million Indian Rupees as direct and indirect revenue through tourism (DoT, 2009). Year Revenue from Tourism (Million INR) Foreign Exchange (Million INR) % Increase In Revenue 2001 45000 5350 9.58 2002 49310 7056.7 20.42 2003 59380 9833.7 12.83 2004 68290 12667.7 15.01 2005 77380 15223.1 13.31 2006 91260 19884.0 17.94 2007 114330 26409.4 25.28 2008 131300 30665.2 14.84 Source: (DoT, 2009). It is interesting to note that though there had been a minor fall in the growth of tourist arrival in the year 2005, this has not affected the total direct and indirect revenue earned by the sates. This confirms the economic impact that tourism makes on the state of Kerala. .An added economic benefit is that the department of tourism in Kerala had facilitated the development of infrastructure in the state so as to attract more guests. This would in turn promote other economy related activities as a place with efficient infrastructure facilities would further help to have investments in different industries. Social, Cultural and Environmental Impacts of tourism in Kerala The Kerala model of development in general has been remarked as exemplary by Parayil, G (2000). The latest developments in the global tourism scenario have urged the Kerala tourism industry to be aligned with the environmental and social demands as per the international standards. Campaigns on concerns like climate change, cultural leakage etc has made substantial impact on the awareness of the tourism industry. Community participation also has been asserted as a need to ensure social, cultural and social security while carrying out the business of hosting guest. The political decentralization in Kerala makes an ideal stage for ensuring community participation. (Heller, P, 2001,pp. 131-163) However, when unlimited number of people visits any place, it disturbs the ecological balance of the area. This should be read together with the fact many of the tourist spots of Kerala holds conservable high ecological and social status. The unlimited growth in the number of visitors would for sure disturb these values. Another serious issue is the detrimental effect on the social ethics and balance of the area. There are experiences in Indian context where anti social activities like sexual trade, drugs, alcoholism violence and exploitation has been resulted due to tourism (McNaughton, D 2006, pp. 645-665). The unlimited amount of business also would cause serious imbalance in the economic balance among the people. The interruption in the natural flow of cash and cash accumulation would create social disturbances. Moreover this would cause an abrupt increase in the cost of living. In totality, tourism with no ethical control would serious issues pertaining to economy, ecology, social security and balance. The trends in Kerala tourism show that the local community usually does not much say in the operations going on and their local resources are exploited by big shots giving them neither chances of income generation nor any involvement in policy intervention. Sreekumar & Parayil (2002, pp 529-548) has analyzed the role of tourism as a development model in Kerala and has pointed out the lack of economic, cultural and social benefit sharing to the local population. However, on the other side some of the tourism operations like house boat operations has been confirmed by Kokkranikal & Morrison (2002, pp. 7-20) as an entrepreneurship involving much of local participation. Recommendations The global industry is demanding economic, social and environmental sustainability in each and every mode of tourism activity. So a fair trade certification would highlight Kerala's tourism industry as one which operates ethically. Tourism Concern defines Fair trade in tourism as a key aspect of sustainable tourism (Tourism Concern, 2008). It aims at maximising the benefits from tourism for local destination stake holders through mutually beneficial and equitable partnerships between national and international tourism stake holders in the destination The Fair Trade Labeling Organizations International(FLO}gives certification for fair trade products and services. Efforts should be done to attain such certifications which directly increase the customer reliability. Some of the criteria in fair trade in tourism are Fair trade partnerships between tourism and hospitality investors and local communities, Fair share of Benefits for local stake holders, Fair trade between tourists and local people, Fair and sustainable use of natural resources and Fair wages and working conditions (Tourism Concern, 2008). Environment protection and related activities should be encouraged which adds again to the credibility of Kerala's tourism industry. Tree planting programs and other environment protection programs should be encouraged to be done by the customers in the destinations so as they also get a feel of participation. Participatory programs as described by Kabani, a voluntary organization promoting community based tourism in Kerala which ensures environmental, economic and social can be taken as exemplary models (Kabani, 2006). Environment Impact Assessments should be done in regular intervals. Reference to sustainability indicators can suggest the amendments needed to bring in sustainability in the operations.(Schianetz & Kavanagh , 2008 , pp. 601 - 628). Capacity building of both the locals and concerned workers in tourism has to be ensured so as to have a sustainable model of tourism (Jithendran & Baum, 2000,'pp.'403'-421) References Heller, P 2001, Moving The State: 'The Politics of Democratic Decentralization in Kerala, South Africa, and Porto Alegre', Politics & Society, vol. 29, no. 1, pp. 131-163 Parayil, G, 2000, Kerala The Development Experience: Reflections on Sustainability and Replicability, Zed Books, London Kokkranikal, J J.& Morrison, A J. (2002) 'Entrepreneurship and sustainable tourism: A case study of the houseboats of Kerala'. Tourism and Hospitality Research, vol 4 , no.1. pp. 7 20 Sreekumar, T T & Parayil, G 2002, 'Contentions and contradictions of tourism as development option: the case of Kerala, India' , Third World Quarterly, vol 23,no. 3, pp 529-548 Jithendran, K J & Baum, T 2000, 'Human resources development and sustainability '-' the case of Indian tourism' , International Journal of Tourism Research, vol. 2 , no.6,'pp.'403'- 421 McNaughton, D 2006, 'The "host" as uninvited "guest": Hospitality, Violence and Tourism', Annals of Tourism Research, Vol.33, No. 3, pp. 645-665 Oommen, P. T., & Nair, N. S, 1994 Kerala- The God's Own Country , India: The States, pp.L..1- L.7 Schianetz K & Kavanagh L, 2008 'Sustainability Indicators for Tourism Destinations: A Complex Adaptive Systems Approach Using Systemic Indicator Systems', Journal of Sustainable Tourism, Vol. 16, No. 6 , pp. 601 - 628 Government of Kerala, Achievements and Success Stories of the Department, Department of Tourism, viewed 25 March 2009, Department of Tourism, Tourist Statistics, Department of Tourism, Government of Kerala, viewed 25 March, 2009, http://www.keralatourism.org/touriststatistics.php Devris J, 2005, Tsunami's effects on Tourism, University of Wisconsin-Eau Claire, USA, viewed 25 March, 2009, http://academic.evergreen.edu/g/grossmaz/DEVRIEJJ/ Symonds, M, 1999, The Impact of the Internet on Business, The Net Imperative, The Economist, viewed 15th March 2009, Read More