what is national tourism policy 2002

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National Tourism Policy [UPSC Notes]

A complete national tourism policy would be unveiled in India within the next two months, according to Union Minister G Kishan Reddy. Information indicates that the government has discussed this with all key stakeholders, including the state governments, financial institutions, and travel agencies. 

Based on various developments that had occurred since the last policy was created in 2002, the Ministry of Tourism prepared a draft of the National Tourism Policy, taking into account important recommendations from NITI Aayog , the Sectoral Group of Secretaries, international best practices from organizations like the UNWTO, and policies and strategies developed by other nations. So the debate surrounding this policy is important from the UPSC exam perspective.

Draft National Tourism Policy

The National Tourism Policy 2022 is part of the vision of New India on a high trajectory of growth and prosperity. The new Policy is a holistic framework for sustainable and responsible growth of the tourism sector in the country. 

• The policy’s objectives include increasing the framework conditions for the country’s tourist industry’s growth, assisting the travel and tourism sector, and promoting related businesses.

National Tourism Policy Objectives

The Policy’s primary strategic goals are:

• To make India a year-round travel destination and to increase visitors, spending, and time spent there in order to boost the contribution of tourism to the Indian economy.
• To create jobs and entrepreneurial opportunities in the tourism sector and ensure the supply of a skilled labour pool.
• To make the tourist industry more competitive and draw in private sector investment.
• To preserve and enhance the nation’s natural and cultural resources.
• To ensure the nation’s tourist industry develops in a sustainable, ethical, and inclusive manner.

National Tourism Policy Guiding Principles

In this section, we talk about the guiding principles behind the draft policy for tourism.

• The policy aims to promote sustainable tourism by minimizing the negative impact of tourism on social, environmental and economic aspects and maximizing the positive impact.
• The policy further advocates responsible tourism to bring all stakeholders together to take responsibility for achieving sustainable tourism, and to create better places for people to live in and for people to visit. 
• In order to ensure inclusive growth, creating opportunities for marginalized sections of society including people living in remote areas will be a priority. 
• Green tourism catalyzes action for the promotion of sustainable tourism, which takes full account of current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities. 
• The Policy aims to use technology for several initiatives under the policy and aims to help the tourism industry make the most of the opportunities presented by the digital economy.
• The Policy follows a ‘whole of government’ approach to address the major and multifaceted challenges faced by the tourism industry and to develop the tourism sector in the country.  
• The Policy is guided by the principle that growth in the tourism sector has to be led by the Private Sector and the public sector has to play an enabling and facilitating role. 
• It aims to grant ‘Infrastructure Status’ to Tourism and Hospitality projects.
• It also aims at supporting tourism-related MSMEs in digitisation, formalisation of MSMEs, adopting sustainable practices, etc.
• Ek Bharat Shrestha Bharat will be a central idea under the Policy to enhance interaction and promote mutual understanding between people of different States/UTs to promote a sustained and structured cultural connection in tourism and related areas of culture, traditions & music, cuisine, sports and sharing of best practices, etc.
• Know more about Ek Bharat Shrestha Bharat in the linked article.
• The Policy aims at enhancing the tourist experience throughout his/her journey from arrival to return and it will be a key element of planning for tourism development under the Policy.

Significance of Tourism:

• Tourism has emerged as a key driver of economic growth across the world. 
• It is one of the economic sectors with the strongest growth, it has a big influence on commerce, employment, investment, building infrastructure, and social inclusion.
• Tourism is a labour-intensive sector and has a significant multiplier effect on employment in related sectors. 
• Tourism is important in social inclusion since it employs more women and youth than most the other sectors. 
• Tourism can generate resources for the conservation of cultural and natural heritage and has huge potential to make a positive contribution to sustainable development goals .

Conclusion:

National Tourism Policy [UPSC Notes]:- Download PDF Here

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Tourism Policy, Planning, and Development

General overview.

Tourism policy, planning, and development are all very connected and do not just occur when a geographic area decides to be a tourism destination. Policy, planning, and development are included in numerous aspects of communities.

continue but from different perspectives. An example would be the use of the destination/product lifecycle, discussed later. It is important to understand what tourism planning and development are individually as well as collectively. Planning is essential to effective development. Tourism is not always a beneficial industry for a geographical area, but without planning tourism can damage the area, including natural and cultural resources (Morrison et al., 2018). A destination might consider “Who, What, When, Where, Why” when working on a tourism plan. The same can be considered for tourism development, as well as other topics included in this alternative textbook (e.g., marketing and promotion).

Tourism Policy

A policy is essentially a course of action taken by some organization or institution (e.g., government, business, educational institution). A tourism policy as defined by Edgell et al. (2008) “is a progressive course of actions, guidelines, directives, principles, and procedures set in an ethical framework that is issues-focused and best represents the intent of a community (or nation) to effectively meet its planning, development, product, service, marketing, and sustainability goals and objectives for the future grown of tourism” (p. 7). Stated more simply, Hall and Jenkins (1995) suggest “tourism public policy is whatever governments choose to do nor not to do with respect to tourism” (p. 7-8). A tourism policy is essentially a framework including guidelines, goals, and initiatives to work toward achieving the goals. Where as an act by government, such as the Travel Promotion Act of 2009 establishing Brand USA, is a law or statute.

A policy for international travel is having a current passport and for many countries a Visa. The application for a Visa to visit a foreign country allows countries to approve who may visit the country and not allow individuals for a variety of reasons (e.g., security threat). The U.S also has the Visa Waiver Program, which is an agreement with  40 countries allowing citizens of those countries to visit the U.S. for business or leisure travel purposes for up to 90 days without a Visa, provided they meet other requirements (U.S. Department of State – Bureau of Counsular Affairs, n.d.). The countries with the Visa Waiver Program also allows U.S. residents to travel to the respective countries with fairly similar criteria. The purpose of requiring a Visa is to regulate travel between countries. The Visa Waiver Program is an agreement to allow citizens of certain countries to visit without having to obtain a Visa if certain criteria are met. This essentially makes it easier to travel between the respective countries.

The International Trade Administration includes a Tourism Policy Council (TPC) to ensure national decision-making considers the national interests of travel and tourism (International Trade Administration, n.d.). The TPC provides resources to help with such issues or challenges as recovering from disaster, and links to Center for Disease Control (CDC), and many other potential issues or challenges for travel and tourism in the U.S.

At more local levels, Morrison et al. (2018) suggest tourism destinations can develop policies for development, marketing, tourist experiences, human resource issues, tourism organizations (e.g., structure), relationships throughout the community, quality assurance, and supporting services (e.g., safety and security).

Policy Setting Process

There are a series of recommended steps for the establishing policy (Morrison et al., 2018). First, identifying and assessing the circumstances related to the issue. This includes understanding contraints that you and/or will face. Constraints can be internal (e.g., locals’ awareness of tourism, training and education of employees in hospitality and tourism, budget) or external (e.g., economy,  price of gas, natural disaster). The tourism organization/local industry has more control or ability to do something about internal constraints, while have little or no control over external constraints. For example, nothing can be done about bad weather or if a natural disaster occurs. However, if locals are not aware of tourism in the local community, education and information can be shared to make locals more aware. This step in the process can also make you aware of new opportunities (e.g., an attraction to develop, new target market).

The next step is typically to create a policy statement to provide guidelines, goals, and initiatives to help guide the organization, destination, etc. While not directly a policy statement, most CVB vision statements include something that provides a guideline with somewhat vague goals. For example, it might be to maintain and/or improve the quality of life for residents of the destination by promoting the destination for tourism and conventions, which would include an economic goal. A policy statement for this vision would be more specific with the goals and initiatives identified to fulfill the goals.

Consultation with government, local tourism businesses, and any other stakeholders is next. This step is to get feedback about the policy statement. Following the consultation and depending on the outcome, the policy statement might be rewritten or modified. Next would be another round of consultation and then rewriting until the the policy statement is approved.

Now is time to implement the policy statement. This will include identifying specific roles of individuals, committees, organizations, etc. This step also includes developing the budget and timeline for the initiative(s).

Finally, those involved evaluation the policy. Were the goals achieved? Why or why not? However, you do not wait until the end of the established timeline for the policy to evaluate. There should be constant assessment to identify if you are likely to achieve the goals. Remember there are numerous constraints that are external (e.g., weather, natural disaster) that might dictate the need to adjust the initiatives and other efforts related to the tourism policy.

Tourism Planning

Prior to tourism planning it is important to consider other types of planning for a community or geographic area. Planning is not new. Gunn and Var (2002) indicate physical planning goes back to early Greek and Roman times. Planning is done to manage visual appearance and land use. However, planning incorporates many disciplines and perspectives: “Planning is a multidimensional activity and seeks to be integrative. It embraces social, economic, political, psychological, anthropological, and technology factors. It is concerned with the past, present, and future” (Rose, 1984, p. 45).

Gunn and Var (2002) suggest when plans (not only tourism, but community, etc.) are created they often include very high or lofty goals and it is difficult to actually achieve such goals for numerous reasons. Planning is very vague and has no real theory behind it. For community plans the general goal is a better place to live. For tourism planning the goal might be to provide visitors with a good experience. As stated earlier, an effective  tourism plan can also maintain or even improve the quality of life of residents, not just economically but the attractions provide activities for local residents as well as tourists.

Morrison et al. (2018) offer three primary reasons for tourism planning. The first two are related to impacts, to maximize the economic benefits and minimize damage to resources (i.e., natural, environmental, cultural). Another reason for a tourism plan is that tourism is constantly changing for many reasons (e.g., visitor expectations, needs, motives; politics; economy; technology). As a result, the plan needs to be adaptable.

Not all destinations have a tourism plan. Some reasons for not having a tourism plan include (Morrison et al., 2018):

• Objections – it should be taken care of by the private sector and there is no need for a formal plan.
• Cost – includes market research, consultations, and a lot of time.
• Complex – tourism is affected by numerous things, such as government policies, dynamic of the community and stakeholders.
• Diversity – various sectors involved directly or indirectly in tourism.
• Seasonality – in many destinations the jobs related to tourism can be seasonal (e.g., beach destinations, snow skiing destinations).
• Unpredictability – keep in mind the numerous things that affect and make tourism complex (e.g., natural disasters, crises, politics, economy).

Gunn and Var (2002) add the following tourism planning barriers:

• Lack of awareness of tourism impacts – which is ironic because it is a reason for a tourism plan.
• Do not understand tourism development – there needs to be a plan for developing tourism and then maintaining and even upgrading tourism (e.g., attractions, facilities, etc.).
• Inadequate infrastructure – might have deteriorated attractions, facilities, etc.
• Unorganized – no leadership to guide the process.
• Politics – usually various opinions among stakeholders (e.g., businesses, government, other stakeholders).
• Lack of hospitality training.

However, there can be serious consequences of unplanned tourism. In general, unplanned tourism is not likely to be sustainable tourism economically, environmentally, socially/culturally.

Tourism Planning Models or Approaches

Morrison et al. (2018) provide a seven step tourism destination planning model:

• Background analysis – including a SWOT analysis and assessments of government policies that affect tourism, inventory analysis (e.g., attractions, accommodations, restaurants, etc.), current demand for tourism at the destination.
• Research and analyses – identify/map locations of the inventory analysis, market survey of current visitors (e.g., motivations, what they like to do) and non-visitors (e.g., why have they not visited?, awareness of the destination, image/perception of the destination), competitive analysis (e.g., who are your competitors?, how can you differentiate your destination from competitors? what do and can you work to improve?).
• Where are we now? (position statement).
• Where would we like to be? (vision statement). Then, identify critical success factors or ways to measure and determine if you achieved your vision.
• Setting goals, establishing strategies, and setting objectives – develop a policy or (e.g., stimulate the economy). Set goals or achievable outcomes. Identify alternative strategies to achieve goals and select the most desired of the alternatives given environment or conditions (e.g., economy, resources, politics). Set objectives which are more short term goals to help monitor if you are going to achieve your longer term goals. If not, remember a tourism destination plan should be adaptable, which is the next step.
• Develop a plan – identify organizations and people to be involved and their roles, funding sources and budgets for different aspects of the plan, activities to implement your plan.
• Implement and monitor the plan – While the plan should be developed by input and participation by numerous stakeholders, it is generally implemented by a local tourism agency or organization (e.g., CVB). But, there should be committees derived of various stakeholders to which the agency is accountable. This helps monitor progress of implementing the tourism destination plan and adapt if needed.
• Evaluate the plan – measure performant of the various parts of the plan against the goals (e.g., did you achieve the goals? Why or why not?). Use the evaluation to see if and how you might adapt the plan moving forward.

Tourism Development

The tourism destination plan helps guide development of tourism. Destinations will be at various stages of development. So, it is not that the tourism plan is just for a destination just getting involved in tourism. As suggested by Mason (2003). development and change for destinations occurs as time progresses. The characteristics, motives, preferred activities and attractions, and many other things change over time and destinations redevelop to remain competitive. A fairly common way to view this is commonly referred to as “Butler’s Tourism Area Lifecycle”. There are five main stages to Butler’s Life Cycle (Butler, 1980):

• Exploration – at this stage there might be some tourism but not really an effort to provide traditional or common tourism attractions, facilities, etc. This stage mostly include tourists visiting facilities and local resources used by residents.
• Involvement – this is the beginning of the destination offering some facilities for tourists. The destination begins to more formally organize and provide or improve infrastructure, some attractions, and facilities for tourists at a local level.
• Development – the destination begins marketing and promoting the destination. This stage also begins development from outside organizations and/or businesses. The destination will begin to develop and look more like a noticeable tourist destination. More and more tourists will likely visit the destination as development progresses.
• Consolidation – at this stage the rate of increase in visitors will begin to decline. The rate of development will also begin to decline. Residents may become opposed to tourism with all of the non-locals who are in the community and there is more traffic and congestion. Some of the older attractions, facilities, etc. may also begin showing degradation.
• Decline – number of visitors will be begin to decrease as competitor destinations might have more appealing attractions, infrastructure, etc. The degradation of attractions, infrastructure, and other aspects of the destination will continue and possibly turn into what Butler (1980) refers to as a “veritable tourist slum” (p. 9).
• Rejuvenation – this outcome can occur by development of a new man-made attraction, which is likely to be followed by improvement of surrounding attractions, facilities, and other tourist needs. However, if competitor destinations also rejuvenate, the competition will remain and rejuvenation might be much less or possibly not rejuvenate and potentially decline. Another way Butler (1980) suggest rejuvenation can occur is to utilize natural resources that might not have been part tourism product throughout previous tourism development and marketing and promotion.

Butler (1980), as well as many other tourism scholars, suggest all of these efforts or stages of Tourism Area Life Cycle should be a collaborative effort within the community. For example, the government could offer incentives for private development of a new man-made attraction.

There are a number of potential ways to develop tourism. One way is to develop a “flagship” attraction, which are major attractions like a theme park (e.g., Disney Land, Disney World) and/or utilize natural attractions (e.g., ocean, lake, National Park). Gunn and Var (2002) offer recommendations for tourism destinations to develop destination zones. The zone would have clusters of attractions (e.g., museum districts) and a corridor connecting the clusters with some form of transportation. Clustering attractions provides tourists with more to do in a closer area so they spend more time at attractions and less traveling between attractions. The destination zone and clustering is a great example of planning and development and how integrated the two initiatives should be.

Morrison et al. (2018) suggest tourism involvement should be holistic. The holistic view would include consideration of the product (e.g., attractions, events, support facilities, transportation, infrastructure, etc.). Respective destinations could also ensure people (i.e., hosts, guests) are included to ensure there is community awareness and  inclusion of local businesses, organizations, and residents. Morrison et al. (2018) also suggest visitor management (e.g., signage) and identifying the visitor mix of the destination. Packages (e.g., all inclusive, hotel and tickets to attraction) and programs (e.g., events, festivals, other activities) could also be developed to attract more tourists. However, destinations should approach tourism development and/or redevelopment from a sustainable approach to avoid overtourism (i.e., too many tourists).

Sustainable Tourism Development

Tourism development should also be sustainable and include the three impacts of tourism (i.e., economic, environmental, social/cultural).

The United Nations (n.d.) proposes 17 goals to consider for economic development, which include economic (e.g., “No Poverty”, “Decent Work and Economic Growth”, environmental (e.g., “Clean Water and Sanitation”, “Affordable and Clean Energy”), and social/cultural (e.g., “Good Health and Well Being”, Quality Education”) goals. The 17th goal is “Partnerships For the Goals”, which are very important for tourism destinations, not only in tourism destination planning and development, but other aspects such as marketing and promotion.

Relating development back to the impacts of tourism (i.e., economic, environmental, social/cultural). Sustainable development should include these impacts. Morrison et al. (2018) through applying the triple bottom line to tourism offers some examples of efforts for sustainable development in each of the three areas:

• Social – include residents, be sure development improves or at least maintains locals’ quality of life.
• Environmental – protect resources, educate visitors and residents of ways to protect resources.
• Economic – new employment opportunities, increase spending of visitors, find ways to have businesses purchase locally to minimize leakage.

Tourism Development Strategies

Various strategies exist to develop tourism. For example, flagship attractions (e.g., large amusement parks, National Parks) can provide something unique to market and promote. Development of clusters of attractions (e.g., museum districts) provide several attractions near each other so visitors do not have to drive long distances between attractions. Such districts could also include development of a circuit or trail for transportation via hiking or biking. Aside from man-made attractions, events can be developed by destinations to highlight such things as cultural or other unique aspects of a destination.

Considering all of the possible options of tourism development provides a holistic view. Not only the examples of attractions and events, but packages and programs can developed. Destinations need to also consider all of the elements of tourism in development (i.e., attractions, infrastructure, transportation, built/support facilities, service quality/hospitality). Again, not only businesses and organizations directly involved in tourism, but all stakeholders (e.g., residents, other local businesses) should be included and/or given the opportunity to provide feedback regarding the tourism development plan.

The general goals of tourism development should include improving visitors’ experiences, improving the local economy, not damaging natural resources, and integration throughout the destination so that tourism attractions and venues are not isolated from the rest of the community (Gunn & Var, 2002). Such goals of tourism development require all three sectors (i.e., private, non-profit, government) to be involved and collaborate.

Tourism Development Roles

The private sector, non-profit, government, and local community (e.g., residents) should be involved in tourism development. The private sector role is entrepreneurial and operations (Morrison et al., 2018). The entrepreneurial role is to identify investors to develop man-made attractions, accommodations, food and beverage, and other facilities for tourists. Once built their role becomes to hire workers, manage the operation and ensure it is successful. After all, they are taking a risk as entrepreneurs.

As discussed in the Tourism Organizations section, the non-profit organizations include CVBs to market and manage the destination, chambers of commerce, associations such as a local sports association to attract sporting events to the destination. The CVB typically works with all stakeholders and leads the marketing and sales (e.g., conventions, trade shows) for the destination. Chambers of commerce might be the tourism marketing and sales organization in smaller destinations. However, many of these non-profit types of organizations collaborate with each other, as well as with private or for-profit-sector (e.g., members of CVBs) and government (e.g., hotel tax dollars as a funding source). Non-profit organizations might also operate such things as museums and historical attractions, as well as festivals and events. Such organizations might be local cultural organizations.

The government really does not manage tourism attractions. However, there are exceptions, such as National Parks. Government roles are to stimulate development of tourism, as well as establish and enforce procedures, codes, such as zoning (e.g., business, residential). Government might also get involved for the following reasons: bankruptcy of an attraction where the government needs to help the business in some way, ensure cultural aspects of the community are conserved, encouraging private sector development, find ways to work with potential attractions and other elements of tourism provided through the private sector where businesses may have concerns about being profitable (Morrison et al., 2018).

Government might fulfill some of the above reasons for their role in tourism development by offering incentives (e.g., tax breaks) to entice development by the private sector. Government might also offer a piece of land for private sector development, which lowers the businesses cost to develop at attraction, supporting facilities, or other element of tourism.

While the sectors may have relatively unique roles in tourism development, it is also important the cooperate with each other for the good of the destination. Edgell and Haenisch (1995) offer a model whereby there are times each will work independently of the other two sectors, times when two sectors work together (e.g., private sector and government), and times when all three work together. Edgell and Haenisch (1995) call this “coopetition”. For example, while attractions compete within the destination for tourists to visit respective attractions, if all stakeholders cooperate the develop and manage tourism, the destination will do better overall.

Project Development Analyses

Prior to developing an attraction, hotel, or other element of tourism, there should be an assessment or analysis to determine the feasibility of being successful. Private sector developers who need be profitable will typically do feasibility studies. This may start with a pre-feasibility study, which is essentially to see if the project is even viable. For example, does the project make sense given what the destination already offers? Pre-feasibility studies might be conducted by whatever company or organization is interested in the project. If it does, the next step would be a more robust feasibility study to identify such things as potential sites for the product being considered, assess the market demand of the project, projected revenues and expenses, capital costs to develop the project, and will there be enough return on investment (ROI) if the project is developed. The full feasibility study is often conducted by an independent consulting company to minimize biases. The feasibility studies helps the company or organization identify if the project should move forward or not.

The market demand study within the full feasibility study would include secondary and primary research. Secondary research would include existing data, such as hotel metrics (e.g., supply, demand or rooms sold over a given period of time, occupancy, average daily rate (ADR), and revenue per available room (REVPAR) if the project is a hotel. Primary market analysis requires collection of data. This can include surveys (e.g., visitors of the destination to determine if the potential project is of interest), focus groups to get in-depth insight as to the interest of visitors. Surveys can also be conducted to potentially identify potential demand for the project.

If a project is not intended to be profitable, such as one being developed by the government or non-profit organization, a cost-benefit analysis can be conducted. Such a study essentially identifies the potential benefits to society are worth the cost of the investment.

Butler, R. W. (1980). The concept of a tourist area life cycle of evolution: Implications for management of resources. Canadian Geographer, XXIV (1), 5-12.

Draper, J., Woosnam, K. M., & Norman, W. C. (2011). Tourism use history: Exploring a new framework for understanding residents’ attitudes toward tourism. Journal of Travel Research, 50 (1), 64-77.

Edgell, D. L., Allen, M. D., Smith, G., & Swanson, L. E. (2008). Tourism policy and planning: Yesterday, today and tomorrow . Elsevier Inc.

Gunn, C. A., & Var, T. (2002). Tourism planning: Basics, concepts, cases (4th ed.). Routledge.

Hall, C. M., & Jenkins, J. M. (1995). Tourism and public policy . Routledge.

International Trade Administration. (n.d.). Tourism Policy Council (TPC). https://www.trade.gov/tourism-policy-council

Mason, P. (2003). Tourism impacts, planning and management . Elsevier Butterworth-Heinemann.

Morrison, A. M., Lehto, X. Y., & Day, J. G. (2018). The tourism system (8th ed.). Kendall Hunt.

Rose, E. A. (1984). Philosophy and purpose in planning. In M. J. Bruton (Ed.), The spirit and purpose of planning (2nd ed., pp. 31-65). Hutchinson.

United Nations. (n.d.). Department of Economic and Social Affairs: Sustainable Development. https://sdgs.un.org/goals

U.S. Department of State – Bureau of Counsular Affairs. (n.d.) Visa Waiver Program. https://travel.state.gov/content/travel/en/us-visas/tourism-visit/visa-waiver-program.html

GHL 2365 - Tourism Copyright © 2024 by Jason Draper is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License , except where otherwise noted.

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