In term of tourism, India plays host to a diverse mix of tourism choice. Natures, adventures, cultures, nations, history, architectures and medical are all on offer, making India an attractive destination to a variety of demographic groups. Apart from that, in 2009 this country was singled out as the best value-for-money in term of Country Brand Index (CBI) done by FutureBrand (2012). India has Ministry of Tourism (MOT), its objective is to develop and promote tourism in India by formulating and administrating the rules, regulations and laws.
And in 2002, MOT announced “Incredible India” as the travel theme. The successful of campaign, nowadays the tourism industry in India is becoming the third largest earner in of foreign exchange (Government of India 2012). 2. PETSEL analysis In order to analyses external environment of India’s tourism industry, analysis could be applied and offer clues to opportunities and threats (Wood 2004). 2. 1 Political analysis 2. 1. 1 Stable democratic administration India is the world’s largest democracy; it has a stable democratic government for a long decade.
India is a Secular Democratic Republic with a parliamentary system consists of Parliament and State Government this means in each state of India has its own tourism department (Government of India 2012). It is advantage because each state becomes a competitor of each other, induce high contest between states in order to gain profit from tourism industry. This fact can ensures stability for the tourism industry. 2. 1. 2 Terrorism India is facing with two type of terrorism: external terrorists and internal terrorists but intra-terrorist takes more seriously effect to tourism.
There is a trend of growing internal terrorists especially Maoism and Naxalism their case un-peace in the country (South East Asia Terrioms Portal 2011). By the way India’s government (2012) is continuously improving its defence inventory to combat any potential attack form terrorists especially in areas like Jammu Kashmir and our metropolitan cities like Mumbai, Delhi, Bangalore and places of strategic importance. 2. 2 Economic analysis 2. 2. 1 Economic growing rate GDP of India rose almost 7% in 10 years then India becomes the fastest growing economies of the world (The World Bank 2012).
A higher economic growth can bring about the foreigner investments. This situation wise to supply the higher number of business visits. Apart from that the construction of newer tourist avenues or attraction, beautification of cities and towns etc. are also induce the number of leisure visitor as well. (Rath et al. 2012). The table below clearly shows the huge increase of arrivals from 2006-2011. Table 1 Arrivals by Purpose of Visit: 2006-2011 Source: Euromonitor International from official statistics, trade ssociations, trade press, company research, trade interviews, and trade sources (2012) 2. 3 Social analysis 2. 3. 1 Diversity of nations, cultures and etc. India is a multination country having numbers of different, cultures, traditions, and ethnics. These diverse have a great amalgam of the past and present and this naturally has its effects (Gupta, Lal and Bhattacharyya 2002). Some are negatives; “culture shock” is a good example when people are facing an unfamiliar way of life when visit to a new country. This is why people who belonging to the more affluent country decide not come to India.
Besides there are positives side people who interested in multitudinous lifestyle also visits India and its help to break down prejudices, barriers, suspicions that exist between countries (Back, Bennett and Edles 2012). 2. 3. 2 Languages The languages of Indian reflect the diversity of the country. English is the one of official languages using in political and commercial communication while Hindi is the nation and the most widely spoken language and primary tongue of 41% of the people and 14 other official languages are spoken (Gupta, Lal and Bhattacharyya 2002).
With this reason language barrier is not a trouble for both tourist and Indian. 2. 4 Technology analysis 2. 4. 1 Information Technology India has capability and resource in Information technology and engineering for future development (Rapoza 2012). Dogac, et al, (2004) considers the Internet gives many advantages in tourism industry. Some of these benefits for tourists are travel planning, fight booking, hotel reservation those active done on the internet nowadays.
Beside on tourism organization use internet to promote new attractions and build long term relationship with customer such as sending special offer to customer, develop collaboration between tourism operators, enhance interoperability of external and internal applications. These actives will help increase the return of traveller. 2. 4. 2 Transportation facilities India’s transportation has been recently developed such as air, marine and land transportation to meet traveller’s need (Government of India 2012). But the image of transportation in this country presenting to the world seems under standard in terms of management and security.
For example in May 2012, train accident killed 5 people. And in July 2012 fire train killed 32 passengers (BBC NEWS 2012). On the tourist view, the under standardize of transportation will take direct effect to tourist who looking for a luxury tourism experience on the other hand the backpackers seem not really concern about convenience transportation at all (Gupta, Lal and Bhattacharyya 2002). 2. 4. 3 Medical technology Medical in India is developing continuously in various forms such as spa, meditation, hospital and surgery.
India provide highly quality and professional with low cost. It costs half or one-third cheaper than similar treatments in neighbouring medical hotspots such as Singapore and Thailand. According to low price of medical service in India, the number of meditation sales has increased double from 2006 in 2011 (Euromonitor International 2012). Table 2 Health and Wellness Tourism sales by Category : Value 2006 – 2011 Source: Euromonitor International from official statistics, trade associations, trade press, company research, trade interviews, trade sources (2012) . 5 Environmental analysis 2. 5. 1 Environmental pollution ;amp; Nature hazard India is experiencing seriously environmental pollution for instant deforestation, soil erosion, air pollution from industrial effluents and vehicle emissions, water pollution, huge and growing population is overstraining natural resources and drinking water is not available thought out the country (CIA 2012). Not only pollution but also natural hazards that India has to deal with like earthquake in the Kashmir valley (NDTV 2012).
This situation reflex to life quality in India and may bring down visitor’s trust then decide not to visit India because it is too risk. However, it is a good change for India to improve their environment such as carefully cleaning ancient monument, cleaning areas around and improve them for tourism purpose (Gupta, Lal and Bhattacharyya 2002). 2. 6 Legal analysis 2. 6. 1 Taxation Since end of July 2012, India’s government announced to increase tax in short term accommodation business from 5. 15% to 7. 42% (The Times of India 2012). Increasing of tax seem not has major effect to visitor.
In generally traveller do not concern in minor change of taxation, take Thailand for example, it increased airport tax and car rental tax in 2011 but tourism payments still high (Euromonitor International 2012). Table 3 Balance of Thailand Tourism Payment : Value 2006 – 2011 Source: Euromonitor International from official statistics, trade associations, trade press, company research, trade interviews, trade sources(2012) Meanwhile 2011 Indonesia announce full waiver of fiscal tax in country, but it did not impact to visitor’s spending as well (Euromonitor International 2012).
Table 4 Balance of Indonesia Tourism Payment: Value 2006 – 2011 Source: Euromonitor International from official statistics, trade associations, trade press, company research, trade interviews, trade sources (2012) 3. Customer Analysis 3. 1 Customer choice factors After Ministry of Tourism announce and promote “Incredible India” in 2002, the number of visitor rise continuously because the successful of campaign (Ministry of Tourism of India 2012).
India has done very well in creating value and positioning in tourism industry, they provide goods or services that meet or exceed visitors satisfaction base on understanding what customer’s really need and it bring to customer choice factor analyses. Customer choice factor may relate to five factors which are Personal factor, Social factor, Environmental factor, Economic factor and Psychological factor (DOLCETA 2012). Below are lists of possible customer choice factors on tourism industry. 3. 1. 1 Personal factor comes from individual personality: age, sex, emotion, needs, like, knowledge, hobbies and etc. re involved such as (DOLCETA 2012): – Visiting new place – Arts and cultural are attractive – Experiencing new and different lifestyle – Trying new food – Have fun and being entertained – Facilities for disabilities – Exciting outdoor activities – Facilities for disabilities – Standards of hygiene and cleanliness 3. 1. 2 Social factor related with individual sociality and relationship: social trends, family, friends, and other people recommendations. With this factor CCFs might be (DOLCETA 2012): – Meeting new and different people – Being together as family – Being able to communicate in English – Activities for the whole family
Segments are considered on the basic of geographic, demographic and psychographic. Thus, each segment should distinguishable from others, reachable and relevant to our product (McDonald and Dunbar 2007). The possible segments in tourisms are: Family tourism, customer in this segment usually travels with their family, might be parents with young children spend time together in order to educate their children and make a good relationship between members in family (Ball, Horner and Nield 2007). Religious tourism has purposes for pilgrimage, missionary especially Muslim and Buddhism.
They would like to visit ancient pilgrimage place, in fact all religions – Hindu, Buddhism, Jainism and Sikhism have their major and minor pilgrimage centre in the different countries (Gupta, Lal and Bhattacharyya 2002). Health & wellness tourism involved “people who travel to a different place to receive treatment or proactively pursue activities that maintain or enhance their personal health and well-being, lower cost of care, higher quality of care and different treatment that they could receive at home. This most customers in this segment are Europeans because patients must wait of long time and process in order to avail medical treatment (Global Spa Summit 2011). Adventure tourism is categorized by “the large amount of activities tourists undertake during their trip, and the large amount of interaction with the natural environment of their destination” Typically adventure tourism will involve something that they would normally not have chance to partake in any other day.