Saturday, September 8, 2007

Impacts of Kerala Tourism


























INTRODUCTION
Today tourism has emerged as one of the dominant economic force all over in the world. Attesting its significance, the World Travel and Tourism Council and World Tourism Organization proclaim tourism as an industry growing faster than the world economy in terms of out put, value added, capital investment and employment.

Tourism in Kerala generally being arranged on the basic component of natural attractions is in seperably attached to the spots of such attractions. The demand and supply of the tourism products in Kerala are therefore by and large, linked to the tourist facilities provided on the already existing natural attraction, in the form of beautiful landscapes, bewitching beaches, enhanting backwaters, waterfalls, stupendous mountains, the wild life, agreeable climate and overall scenic beauty. Some of such attractions may be unique to an area or region in the whole World and they may belong to the category of non-reproducible elements. But most of these natural attractions are publicly owned either in the form of common property or state property.

The most important element in tourism system of a destination area is the spot where the significant and dramatic aspects of tourism occur and where the tourism industry is located. The development of a tourist spot depends on the motivation of people to come to that destination, which attracts them with its images that are shaped by unique attractions and facilities. The tourist activity of an attraction spot includes the involvement of all the three sectors: Primary, Secondary, and Tertiary. The proper use of natural attraction claims the primary element in its production. The construction of support amenities and manufacture of handicrafts bring in the feature of secondary activity to tourism. Tertiary production involves commercial out put of an array of service units engaged in the provision of support facilities. Tourism includes all the economic activities of demand and supply such as production, consumption and exchange of the product of tourism and the functional distribution of its output.
The tourist attractions of a destination area are generally distinguished in to different types based on their geographical, social, cultural, technological or divine emphasis. A tourist spot having basic attractions is prove to tourism as a potential location of cultural, traditional, scenic, recreational, educational, commercial or of any other tourist importance.
The tourist coming to the destination area of Kerala select a single or multiple spots or locations capable of giving them maximum benefit out of their spending of time and money. The main economic significance of tourism lies in the fact that the tourist is inclined to spend at the place visited by him only the amount of money earned by him at his normal Residence. But the demand for the spots varies depending upon the preferences of the tourists. This variation distinctively affects the development pattern of particular spots of the destination area.

SIGNIFICANCE OF THE STUDY
It is hoped that the present study, by analysing the impact of tourism on several areas of benefit the three sections of tourism decision–makers like the Governments, commercial enterprises and non-profit organizations in their respective roles. In view of this, the study is deemed significant on following aspects. This attempt based on the interpot analysis of the demand and supply aspect of tourist activity over a period 1990-2007 can identify the utilizations pattern of the offered tourism product and also the provision of facilities in future to attract the tourists. The study concentrating on both domestic and foreign categories can show the policy makers, which one should be given concentration in the development of tourism in order to augment income and employment generation.

It is evident from the existing research findings that a spot based study making an inter spot analysis of the economic aspects of tourist activity over a period; considering both domestic and foreign categories is a significant and serious lacune in the tourism related information of the state.
OBJECTIVES
The over all objectives of the study is to examine the growth process of tourist activity of the Kerala and its impact on employment generation during the period between 1990 and 2007







The following are the specific objectives of the study:
1) To examine the trend and pattern of demand for tourism in Kerala.
2) To analyze inter spot variations in the trend of demand and supply of tourism activity during the period between 1999and 2007.
3) To identify the impact of tourism activities on the generation of employment and the society.
4) To find out the tourism impact on environment and society.
REVIEW OF LITERATURE
International studies on tourism:
Pries to 20th century, the focus of attentions by the researchers on the analysis of tourism was on the geographical aspect of tourism. The poineers in this field attempted the different dimensions of the movement of people between or among the geographical regions, because the business that is known tourism today was treated only as a travel phenomenon. Western travellers studied tourism as a part of their establishment of colonial rule. Ogilvie(1933) made the first systematic attempt to examine the movement pattern of tourists from western countries towards Asia and Africa based on purposes of business and pleasure.
During the postcolonial period, there appeared a shift in emphasis on the social effects of tourism. The main themes which have been studied later are the cultural economic and environmental effects of tourism travel pattern and motives between origin and destinations and tourisms relationship with economic development.
Later, the aspects like marketing, impact evaluation, travel motivation, management and demand forecasting got berth in the list of topics for tourism research. Tourism research primarily focusing on the economic aspects of the industry has resulted in a few studies with emphasis on demand and supply issues. The majority of the studies on economic impacts of tourism have been directed to international and national levels.

Medlik and Middleto (1973) analyze the complexities in the pattern of demand for tourism by foreign and domestic tourists; the requirements of home tourist are observed as different from those of foreign tourist who belong to different countries of varying standards of living. They noticed the phenomenon of heterogeneity in the demand for tourism related facilities and services as a factor which makes the marketing of tourism product more complex.

Mak (1977) developed a behavioral model using simultaneous equation to analyze the determinants of actual length of stay and per capita daily expenditure for mainland U.S. visitors in Hawaii. Empirical results indicated that length of stay does affect the average daily expenditure per person and vice versa. Results also showed that higher income visitors stay longer and spend more per day than visitor with low incomes.

Vanhoe (1980) noticed that the five most commonly occurring economic variables affecting tourism demand are income levels, population relative price and exchange rate and travel costs. In addition to such variables he also mentions promotion, common language, accommodation capacity, carrying capacity and the degree of urbanization as important demand determinants.

Kaiser and Helber (1978) gave as check list of natural and created resources that are necessary for building the tourism industry of a destination area. They have a also identified an exhaustive list of small business as support industries in tourism. Giving too much significance of the supply side, Leiper (1979) defines tourist industry as that consists of all those firms, organizations, and facilities, which are intended to serve the specific, needs and wants of the tourists.

Jafari (1982) divides the supply side of tourism in to three elements: tourism oriented products, resident-oriented products and background tourism elements. On the supply aspect tourism activity at destinations are treated as the concern of different types of tourism suppliers, conducting a sturdy on the rocky mountain of Europe, John (1982) highlights the importance of tourist attractions of a spot in creating an image of it for the effective marketing of the tourism product of the recreation.
There are numbers of different strategies for estimating the economic impact of tourism. Some economist collect supply side date (i.e. information related to receipts and expenditure of local businesses) to calculate the Keynsian multiplies which measures the amount of change in some economic benefit variables (out put, employment, income etc.) generated by a given amount of tourist spending in an area. Researchers generally mention that studies on the economic contribution of tourism have focused on measuring its volume and on simple analysis of its relative size neglecting the use of linear programming models of assess the land, labour, and capitals consequences of expanding tourism demand in an area.
Lewis and William (1988) introducing the Portuguese tourist industry draw attention to the relationship between market segmentation and the character of employment provider by tourism. For attesting the importance of tourism employment they estimated the percentage of all jobs, which were in the accommodation sub sectors of two regions of Portugal, Madeira and Algarve as 5 per cent and 8 percent respectively.

David (1988) analyzing the macro economic impact of tourism in Netherlands estimated the tourist expenditure as equivalent to less than 3 percent of the total national consumption.
A theoretical general equilibrium model of the effects of tourism was developed by Copeland (1991) to show the structural repercussions of tourism expansion. Giving focus on the rapid development and change of Thailand, one of the leading tourist destinations in Asia, Dobson and Coutreyt (1994) discuss the structure and pattern of tourist industry and the impact of tourism on the Thailand economy in detail.

National level studies
Even though tourism is recent development we find three terms related to the concept of tourism derived from the root word in Sanskrit literature which means leaving home for some time to other places. They are Paryatana (going out for pleasure and knowledge), Dheshatana (going out to other countries primarily for economic gain) and Thirthadana (going out to the places of religious importance)

Studies on Kerala tourism
It appears that virtually no serious attempt has been made by scholar to study the economic aspect of tourism, including the impact of tourism development of aspect or location of tourist attraction in Kerala.
Government of Kerala (1989), conducting a study as the concerted effort of the task force on tourism, identified the crucial areas which require special attention by Department of Tourism for the planned promotion and provision of tourism related infrastructure.
Only a few research works at individual capacity are seen on tourism in Kerala. They in general concentrated on the management aspects of accommodation and transportation business involved in the tourism industry of this state.
As an attempt on the economic aspects of tourism in Kerala the study conducted by Joseph (1990) in the form of a research project in worth mentioning. Through a primary survey of foreign tourists to Kerala he reveals the economic background and pattern of preferences of the tourist for different types of tourism attractions.
Kumar in his exclusive study of foreign tourists visiting Kerala, searches for identifying the influences of their demographic and psychographic profiles on the selection of Kerala as destination. He observed that the psychological factors have influenced their spending pattern during their tourist trip

METHADOLOGY
As part of methodology a questionnaire was prepared to assess and evaluate the trend and impact of tourism in Kerala. The questionnaire was delivered to both foreign and domestic tourist, and different tourism agencies.

Selection of the topic
Since this research attempt is mainly a state level study, the first step of the methodological procedure becomes the selection of the tourist spots for detailed investigation. For the same we seek the help of data that are furnished in secondary source materials.
The tourist spots of natural attraction are mainly classified as beaches, backwaters, hill stations, wildlife sanctuaries, historic place, and scenic beauty.

Data source
The study conducted has relied up on both the categories of data, primary and secondary.

Secondary source
Regarding secondary source of information tourist statistics, published annually by the Department of Tourism, Government of Kerala gives the official data regarding the flow of foreign and domestic tourist of Kerala.
Other publications of the department like Guide to Investors reveal the investment opportunities in tourism and the promotional activities under taken by the Government of Kerala.
A Master Plan for the development of tourism in Kerala by the Asian Institute of Envelopment and Entrepreneurship, Cochin, the tourist Hand Book Kerala by DeeBee, INFO publications also form the basic source of secondary information’s. The District Tourism Promotion Council are the recent agencies, which supply district level data on tourism business. Economic Review (State Planning Board, Kerlala) the articles, journals and dailies in India, but specially in Kerala are the main source of information regarding the recent developments in the tourism industry of Kerala.
Tourist Statistics, Economic survey, Monthly abstract and Development Indicators includes the main source of secondary information.
Identification of accommodation units
Information has been gathered from all the accommodation units of the organized sector functioning during the period of survey.

Categorization of accommodation units
The units are broadly classified as belonging to organized sector (hotels lodges, heritage houses, guesthouse etc) and unorganized sector (rented houses, paying guest system, stay with friend and relatives etc).
Period of survey
The primary survey was conducted in the year 2007, with respect to tourist season covering the period of months between February and May.

Concepts and definitions
For facilitating a proper understanding of the observations made here are introduced the important terms and definitions which appear in this study.

Tourist: “World tourism organizations defines tourist as a visitor who spend at least one night in the place that is outside his/her usual environment for a period not exceeding six months and whose main purpose of visit is other than the exercise of an activity remunerated from the place visited”.
Excursionist: Excursionist is a same day visitors or a visitor who leaves without spending a night in the place visited and hence not treated as a tourist.
Holiday-visitors: A tourist who remains in a place for more than a certain numbers of night’s or days (normally a week or more).
Inbound tourist: Non-resident tourist visitors to a country.
Outbound tourist: Resident of a country visiting another country.
Foreign tourist: As per the definition accepted by the Ministry of Tourism, Government of India, a foreign tourist is a person visiting India on a foreign passport, staying at least twenty four hours in the country, the purpose of whose journey can be classified under one of the following recreation, holiday, health study, religion, sport, business, family, mission and meeting;
Domestic tourist: A domestic tourist is a person who travels with in the country to a place other than his usual place of residence and stays at accommodations establishments for a duration of not less than twenty four hours or one night and for not more than six months at time for purposes other than remunerated from with in the place of stay.
Tourist destination: A place, region or country which possesses an array of attractions capable of offering non-home experience to the tourist visitors. In the present study Kerala is taken as the destination area for both foreign and domestic tourists.
Tourist spot: A place or locality within the destinations area, which possesses natural or human oriented attractions and support facilities for tourist accommodations.
Attractions: Natural or man-made features which collectively or singly create the appeal of a country.
Guide: A person who is licensed to take paying guests on local sight seeing excursions.
Resort: A spot which is frequented by the tourists. It is a place, which has all the facilities for the comfort of the visitors.
Tourist complex: A village or town with a definite concentration of tourist resources, materials base and infrastructure of tourism development. A massive architectural installation specifically meant for the infrastructure of tourism.