DIRECTORATE OF TOURISM

SUMMER INTERNSHIP REPORT

Submitted by

AISWARIA V A

in partial fulfilment of the Requirements for the Award of the Degree

of

MASTER OF BUSINESS ADMINISTRATION

of Dr. APJ Abdul Kalam Technological University

CET SCHOOL OF MANAGEMENT

COLLEGE OF ENGINEERING TRIVANDRUM

JUNE 2017

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 DECLARATION

I undersigned, hereby declare that the report titled “Functioning of Department of Tourism”
submitted in partial fulfillment for the award of Degree of Master of Business Administration
of the Dr. APJ Abdul Kalam Technological University is a bonafide record of internship
undergone by me under the guidance of Dr. Sini V Pillai, Assistant Professor, CET School of
Management, College of Engineering. This report has not previously formed the basis for the
award of any degree, diploma, or similar title of any other university.

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 ACKNOWLEDGEMENT

I first and foremost thank the God almighty for giving me the courage and wisdom to take up
the project and complete it successfully.

I am grateful to Dr. G. Chandramohan, Director, CET School of Management Trivandrum,

for his valuable suggestions. I take this opportunity to express my sincere gratitude to Dr. Sini
V Pillai, Assistant Professor, CET School of Management, College of Engineering,
Trivandrum, who provided me the atmosphere to complete this internship report successfully.
I also thank Mrs. Jisha Gopi, Placement Officer, CET School of Management who took the
initiative in arranging my Internship with Directorate of Tourism.

I extend my thanks to my Project guide, Mrs. Bindu Mony and State Information officer,
S Anil kumar, for supporting me and providing a favourable work ambience where I was
able to perform with minimal stress and maximum effectiveness.

Finally, I express my whole hearted thanks to my parents, teachers, & classmates for
their support and encouragement that helped in the timely completion of this internship
report.

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 Contents
INTRODUCTION ..................................................................................................................... 6
1.1OBJECTIVE OF THE INTERNSHIP .............................................................................. 7
1.2 INDUSTRY ANALYSIS ................................................................................................. 7
ORGANIZATIONAL ANALYSIS .......................................................................................... 32
2.1 HISTORY ...................................................................................................................... 33
2.2 MISSION, VISION AND VALUES .............................................................................. 33
2.3 OBJECTIVES…………………………………………………………………………34
2.4 SWOT Analysis ............................................................................................................. 38

2.5 PEST ANALYSIS .......................................................................................................... 44

2.6 7S FRAME WORK OF KERALA TOURISM ............................................................. 46
POSITIONING OF THE INTERN AND HIS/HER ROLE .................................................... 54
3.1 STRUCTURE OF THE OFFICE TO WHICH THE INTERN IS ATTACHED ........... 55
3.2 DETAILS ABOUT THE ROLE OF THE INTERN AND VARIOUS DUTIES AND
RESPONSIBILITIES ASSIGNED TO THE INTERN WITHIN THE ORGANISATION 55
DETAILS ABOUT THE INTERNSHIP .................................................................................. 57
4.1 WEEKLY REPORTS ..................................................................................................... 58
4.2 CONTRIBUTION OF THE INTERN TO THE ORGANISATION ............................. 67
4.3 LEARNING FROM INTERNSHIP .............................................................................. 68
CONCLUSION ........................................................................................................................ 69
BIBLIOGRAPHY……………………………………………………………………………71
REFERENCES ........................................................................................................................ 71

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 CHAPTER 1

INTRODUCTION

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INTRODUCTION

The Company where I got an opportunity to do Internship was in Directorate of Tourism

Museum Trivandrum. Tourism is travel for recreational, leisure or business purposes. The
World Tourism Organization defines tourists as people who "travel to and stay in places
outside their usual environment for more than twenty-four hours and not more than one
consecutive year for leisure, business and other purposes not related to the exercise of an
activity remunerated from within the place visited". Tourism has become a popular global
leisure activity. In 1976, the Tourism Society of England's definition was "Tourism is the
temporary, short-term movement of people to destination outside the places where they
normally live and work and their activities during the stay at each destination. It includes
movements for all purposes."

The Internship Offer issued by the Marketing Department was received by us on Monday,
May 1st 2017. The tenure of the Internship was fixed as 2 months starting from May 3rd to
June 30th. I was allocated to the Facilitation Wing under the guidance of Mrs BindhuMoni
(Tourist Information officer). There were altogether 4 Interns functioning in Marketing
Department.

1.1 OBJECTIVE OF THE INTERNSHIP

To work as an intern and to get familiarized in the Marketing functions of Tourism

Department.

1.2 INDUSTRY ANALYSIS

Kerala, a state situated on the tropical Malabar Coast of southwestern India, is one of the
most popular tourist destinations in the country. Named as one of the ten paradises of the
world by National Geographic Traveler, Kerala is famous especially for
its ecotourism initiatives and beautiful backwaters. Its unique culture and traditions, coupled
with its varied demography, have made Kerala one of the most popular tourist destinations in
the world. Growing at a rate of 13.31%, the tourism industry is a major contributor to
the state's economy.

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Until the early 1980s, Kerala was a relatively unknown destination, with most tourism
circuits concentrated around the north of the country. Aggressive marketing campaigns
launched by the Kerala Tourism Development Corporation—the government agency that
oversees tourism prospects of the state—laid the foundation for the growth of the tourism
industry. In the decades that followed, Kerala Tourism was able to transform itself into one of
the niche holiday destinations in India. The tag line Kerala – God's Own Country was
adopted in its tourism promotions and became a global super brand. Kerala is regarded as one
of the destinations with the highest brand recall. In 2010, Kerala attracted 660,000 foreign
tourist arrivals.

Kerala is an established destination for both domestic as well as foreign tourists. Kerala is
well known for its beaches, backwaters in Alappuzha and Kollam, mountain ranges and
wildlife sanctuaries. Other popular attractions in the state include
the beaches at Kovalam, Kappad, Cherai and Varkala; backwater tourism and lake resorts
around Ashtamudi Lake, Kollam; hill stations and resorts
at Munnar, Wayanad, Nelliampathi, Vagamon and Ponmudi; and national parks and wildlife
sanctuaries at Periyar, Parambikulam and Eravikulam National Park. The "backwaters"
region—an extensive network of interlocking rivers, lakes, and canals that centre
on Ashtamudi Lake, Kollam, also see heavy tourist traffic. Heritage sites, such as
the Padmanabhapuram Palace, Hill Palace, and Mattancherry Palace, are also visited. The
city of Trivandrum ranks first in the total number of international and domestic tourists in
Kerala. To further promote tourism in Kerala, the Grand Kerala Shopping Festival was
started by the Government of Kerala in 2007. Since then it has been held every year during
the December–January period. The state's tourism agenda promotes ecologically sustained
tourism, which focuses on the local culture, wilderness adventures, volunteering and personal
growth of the local population. Efforts are taken to minimize the adverse effects of traditional
tourism on the natural environment, and enhance the cultural integrity of local people.

TOURISM INDUSTRY PROFILE

Tourism has been an effective instrument for generating employment, earning revenue and
foreign exchange, enhancing environment, preserving culture and tradition. It can ensure an
overall development in a sustainable manner. Economic diversification and technological
improvement have created a conducive environment for tourism development in the present

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age of globalization.
The concept of tourism as a phenomenon involves the movement of people within their own
country or across the national borders. Man’s thirst for travelling has increased from time
immemorial. Tourism or travelling opens up horizons, complements our personality, helps to
differentiate between harmonies, and encourages contacts between various cultures and
countries. While travelling, a traveller’s mind must move and react, race and pause, and
move on again. Travelling helps not only to reflect on the life and times of the world, it also
helps to mix East with West, culture with culture and people with people. Our mind and view
broadens, as we see that people are the same everywhere.
Tourism involves basically three elements, namely, man (human elements as the creator of
the act of tourism), space (the physical element to be necessary covered by the act itself), and
time (the temporal element which is compared by the trip itself and the stay at the
destination).

ROLE OF MINISTRY OF TOURISM

The ministry of Tourism plays a crucial role in formulating national policies and programs as
well as coordinating and supplementing the efforts of the State/Union Territory Governments
and private sector in improving the quality of tourism Industry. As regards the domestic
market, the Ministry aims to popularize the culture and natural beauty of different regions,
pilgrim sites and various new tourism products.
The Ministry has a public sector undertaking namely the India Tourism Development
Corporation (ITDC) for carrying out its various functions along with the following
autonomous institutions:-
Indian Institute of Tourism and Travel Management (IITTM)
National Institute of Water Sports (NIWS) has merged with IITTM
National Council for Hotel Management and Catering Technology (NCHMCT)
Institutes of Hotel Management (IHM)
The foreign direct investments (FDI) of Indian hotel and tourism industry which contributes
to the Indian economy inflows are US$ 2.1 billion from April 2000 to March 2010, according
to the Department of Industrial Policy and Promotion (DIPP). Indian Export earnings from
international visitors and tourism goods are expected to generate US$ 51.4 billion (nominal
terms) by 2019. Furthermore, the sector which accounted for 6.4% of total employment in
2009 is estimated to rise to 7.2% of total employment by 2019.
Tourism industry in India holds tremendous potential for India’s economy which eventually
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provide impetus to other industries, create millions of new jobs and generate enough wealth
to help pay off the international debt. This is the main reason that today it is included that
Tourism is amongst the Core Sectors of the Indian Economy.
Indian Tourism has got a major boost because of the booming IT and Outsourcing industry
with the increased number of business trips made by the foreigners to India, who will often
add a weekend break or longer holiday to their trip. They spend more time here in India than
almost any other country worldwide.

IMPORTANCE OF TOURISM IN INDIA

India is a multifaceted country with a vast potential for tourist attraction. It has a rich
architectural legacy dating to an ancient past. There are timeless monuments, magnificent
temples and breathtaking sites. No doubt India is endowed with an imperishable wealth of
land that all men desire to have seen. India is one of the major South-Asian tourist
destinations with the diversity of natural attractions and rich tapestry of cultural heritage
delineating the varied tourism products it can offer to the entire world at large. A 5,000 year
history, culture, religion and alternative medicine fascinate both budget and luxury travellers
alike. India has vast geographical spread and great historical and cultural heritage, which are
excellent condition for growth in tourism sector.
According to WTTC Report, 2007, India’s travel and tourism is expected to grow at 7.95
percent over the coming decade, showing the third fastest growth in the world in terms of
travel and tourism. India has won many international acclaims including the World Travel
Awards various categories as Asia’s leading destination, Asia’s Leading Tourists and
Conventions Bureau and also the World’s Leading Destination Marketing
Award for the Incredible India Campaign. India is one the fastest growing tourist economy
where tourism has made significant contribution to India’s foreign exchange earnings. The
tourism industry in India plays a significant role in transforming the society and economy. As
an instrument for development, it contributes to sustainable human development through
poverty alleviation, employment generation and environmental regeneration in remote and
backward areas. The Indian tourism industry is poised for a major breakthrough in the new
millennium due to infrastructural development, spread of telecommunication network and the
importance of the service sector in nation building.
An integrated approach with a multi-pronged strategy alone can yield rich fruits in the
tourism sector in the years ahead. Tourism has potential to bring about social and cultural
development. It is also essential to take advantage of information technology to develop
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tourism. A well thought out plan should be in place to harness the potential of various media
of communication. WTO has estimated that there will be 1.6 billion international tourists by
the year 2020 and Asia will emerge as the second region to be the most visited in the world.
India being rich in cultural and natural heritage is likely to experience its share in global
tourism. India, however, faces two major challenges in the globalised world, i.e.exploitation
of tourism potential and designing strategies for tapping such potential. Therefore, the
Tourism 2020 Vision document has identified the following priorities:
 Strategic marketing
 Product differentiation and quality improvement
 Sustainable tourism development
 Private – public partnership
 Improving brand image and positioning
 Strategic planning and management of resources
 Development of new destinations
 Use of electronic and internet services for facilitation and database preparation.
It has been estimated that India’s travel and tourism potentials can provide its economy
substantial resources in the coming years. It is expected that tourism has potential to provide
7 million new jobs, provided that potential of tourism resources is effectively exploited.
Tourism is a collection of activities, services and industries that delivers a travel experience,
including transportation, accommodation, eating and drinking establishments, retail shops,
entertainment businesses, activity facilities and other hospitality services provided for
individuals and groups travelling away from home. Tourism is an amalgam of various
productive sectors of the economy, like agriculture, large and small cottage industries,
transport, communication, accommodation, entertainment, etc.The two main industries that
comprise the activity of tourism are hospitality and travel industries. For many developing
countries, tourism is a main source of income, employment and foreign exchange. Outbound
tourism from developing countries is also rising gradually and developing countries
expenditure on tourism in other countries doubled between 2000 and 2006. Tourism is a tool
for economic development and employment generation, particularly in remote and backward
areas and this has been very well recognised world all over. The United Nations Conference
on International Travel and tourism held in Rome in 1963, noted that tourism was important
not only as a foreign exchange earner, but also as a factor of development of less developed
regions.

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There are several factors that can influence the level of tourism activity. One important factor
is that the disposable income continues to rise in the industrialised countries. European
workers have longer vacation periods than their American counterparts. Japanese workers are
now beginning to have more leisure time. Another factor is that the travellers are now seeking
new adventures away from their traditional vacation spots. The international airfares have
become very competitive and are enticing increasing number of travellers.
In India, the huge gap between demand and supply of hotel rooms drove up occupancy levels
and average room rates (ARRs) to new heights. Hotels generally cater to foreign visitors,
corporate business clients and high-end Indian travellers, as hotel accommodation is out of
the reach of the average Indian. Indians are increasingly seeking world-class facilities, such
as clean and comfortable accommodation, internet connection, and perhaps even fitness
facilities, at local prices. The rising middle class is also becoming increasingly affluent,
mobile and more sophisticated in terms of what is demanded in terms of tourism products and
services, and more importantly the price they are willing to pay for it. Until recently, not
much emphasis had been given to the maintenance and development of the tourism
destinations in India, which resulted in a large number of tourists staying away from these.
However, the Indian government’s increasing investment in the upgrading and modernisation
of infrastructure will translate into better facilities, amenities and access to the leading tourist
attractions and sites. Many of the states in India are formulating policies and programmes to
cater to the growing demand of inbound tourism.
India has yet to realise its full potential from tourism. According to WTTC Report, by 2020,
the Government of India expects travel and tourism to contribute Rs. 8,500 billion to GDP,
almost four times the value in 2005. The travel and tourism industry holds tremendous
potential for India's economy. It can provide impetus to other industries, create millions of
new jobs and generate enough wealth to help pay off the international debt.
Tourism Products Offered by India
 Adventure Tourism
 Medical Tourism
 Wellness Tourism
 Golf Tourism
 Film Tourism
 Eco Tourism
 Cruise Tourism

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Domestic media campaigns, international campaigns, national tourism awards, international
accolades, participation in travel fairs and exhibition, road shows, food festivals, printing of
brochures, outdoor publicity by advertising on taxis, buses, trains and billboards are some of
the publicity and marketing techniques adopted by Ministry of Tourism, Government of
India. Each state further has its own publicity and marketing techniques. Eg. Kerala- Gods
own country campaign, Madhya Pradesh- Hinusthan ki dil dekho campaign etc.
TOURISM IN KERALA
Kerala, the lush green strip on the south west coast of India lies snuggled between the vast
Arabian Sea on its west and the Western Ghats in the east. This tropical paradise with its
spectacular and diverse natural attractions has long attracted holidaymakers from across the
world. A 600 kilometres long coastline stretching across 11 out of its fourteen districts,
emerald backwaters, exotic wild life, beautiful waterfalls, historic monuments and misty hill
stations has made it one of the most acclaimed tourism potential state in the world. The
centuries old holistic medicine of Ayurveda, the unique boat race that is the largest team sport
in the world, the ride through the winding waterways in a cosy houseboat or the colourful and
exotic festivals, Kerala offers a multitude of experience to the tourists. The land’s natural
beauty is further enhanced by a rich tradition of music and arts dating back over a thousand
years, making Kerala truly God’s Own Country. The present-day state of Kerala was created
in 1956 from Travancore, Kochi and Malabar. Malabar was formerly part of Madras state.
Kerala is one of the most progressive, literate and highly educated states of India. Kerala state
lies in the southern most strip of India and is situated between the Arabian Sea and the
Western Ghats. It is located in the north latitude between 80 18` and 120 48` and east
longitude between 740 52` and 770 24`. The breadth of the state varies from 11 kilometres to
121 kilometres. The total area of the state is 38864 square kilometres which is only 1.18
percent of the total area ofIndia. According to the 2001 population census, it has a population
of 32 million, which is 3.12 percent of India’s population. The state comprises of three
regions, the coastal low lands, the fertile midlands and the highlands. The low lands of Kerala
are networked by endless backwaters and the deltas of forty four rivers. The midlands are rich
with cashew, coconut, areca nut, tapioca, banana, rice, ginger, pepper, sugarcane, and
vegetable plantations. The forest highlands abound in tea, coffee, rubber and spice plantations
and wild life reserves. Kerala’s culture is thus a composite and cosmopolitan culture to which
several people and races have made their contributions. Kerala’s unique cultural
characteristics are reflected in its music, dance, architecture, festivities, languages spoken,
traditional beliefs, customs and foods of Kerala. Kerala offers an intriguing blend of cultures
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and some unusual opportunities for travel. It offers some of the best and most picturesque
beaches in India. Unlike in other part of the country, in Kerala, tourism is not a seasonal
activity since the state has some event or the other which is being celebrated in regular
intervals that covers almost eight to nine months in a year. Many religious functions are being
celebrated in a big way to attract overseas and inland tourists. In addition to these, many
beautiful hill stations, world famous beaches, backwaters and nature destinations do attract
thousands of tourists into the state every year. Today, Kerala’s ‘Backwaters’ and ‘Ayurveda’
are globally identified and uniquely positioned. In the recent past, tourism has emerged as
Kerala’s core competency sector. Kerala is today the most acclaimed tourist destination in
India with its distinctive ‘God’s Own Country’ branding. Kerala is increasingly rated as one
of the mustsee destinations, not only by the discerning foreign tourists, but also by thdomestic
tourists. In Kerala, where unemployment among the educated youth is a burning problem,
tourism is considered to be a major employment generating industry.
Tourism would not be a focus of economic development strategy based on its job creation
potential, turnover for local companies and millions of capital investment, but it also has a
deep impact on the social and cultural life of any country or city.

TOURISM DEVELOPMENT ORGANIZATIONS

The flagship of tourism industry in Kerala is department of tourism, government of Kerala.
Kerala Tourism Development Corporation (KTDC), Bekal Resorts Development Corporation
(BRDC), Tourists Resorts Kerala Ltd (TRKL), District Tourism Promotion Council (DTPC)
Kerala Institute of Travel and Tourism Management Studies (KITTS), Kerala Institute of
Hospitality Management Studies (KIHMS), Thenmala Eco Tourism development agency and
a host of government departments such as forest and wildlife irrigation museum, zoo and
archaeology are other important state sponsored institutions which play key role in tourism
sector of Kerala. Besides there are numerous agencies working in the semi government and
private sector for the promotion of Kerala tourism.

ROLE OF GOVERNMENT AND DEPARTMENT OF TOURISM IN PROMOTING

TOURISM IN KERALA
The following are the roles played by the Government of Kerala and the Department of
Tourism:
 Promotion and marketing

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  Infrastructure development at tourist destination
 Facilitation to private sector for investment in tourism
 Development of new tourism centres
 Providing tourist information and facilitation
 Human resource development and capacity building in tourism
 Ensuring cleanliness and hygiene at tourist destinations
 Up gradation and development of tourism products
 Development of wayside facilities
 Conservation of nature, heritage and culture
 Promotion of local cultural programmes
 Promotion of rural tourism, ecotourism, farm tourism, adventure tourism etc
 Linking traditional industrial and agricultural sectors to tourism
 Responsible tourism initiative to ensure tourism benefiting the local population in
economic, social and environmental aspects.
 Co-ordination of local tourism developments through DTPCs
 Approval / Classification of tourism units including home- stays
 Tourism impact studies
 Awareness creation
 Application of IT in tourism

ECONOMIC IMPACTS OF TOURISM

According to the World Tourism Organisation, an important indicator of the role of
international tourism is its generation of foreign exchange earnings. Tourism is one of the top
five export categories for as many as 83 percent of countries and is a main source of foreign
exchange earnings for at least 38 percent of countries.15 Tourism Vision 2020, the World
Tourism Organisation’s long term forecast, international tourist arrivals will grow during
1995 to 2020 at annual growth rate of 4.1 percent.The factors like the level of disposable
income, available leisure time, destination attractiveness, relative travel costs and local
exchange rates should be kept in mind as countries seek to attract even more individuals to
participate in international travel and tourism activities. The number of arrivals at a
destination and average expenditures per visitor are important for the countries in assessing
the estimates of tourism activity. Many towns and cities, states and provinces, even entire
nations, have determined that development of their visitor-inducing resources can add to the

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economic well-being of local residents. Tourism may have a comparative advantage over
other industries in two ways. First, the region may be especially appealing to tourists because
it has features that are highly attractive, easily accessible to many potential tourists and has
necessary infrastructure and an abundant labour force to serve in the tourism industry. The
area may have the necessary ingredients for both the demand and supply of tourism.
Secondly, tourism may be the best industry to develop if there are no other industrial
alternatives.
Hence for a state like Kerala with stunning beauty and less industrial alternatives, tourism has
a comparative advantage. One of the most important factors influencing the level of
international tourism to a country is the relative exchange rate of its currency for other
currencies. When international travellers decide to visit a foreign land, they need to trade
their currency for the currency of the nation they will visit. Another important economic
impact of tourism is the multiplier concept. Money is added to an area when someone from
outside its borders buys a good or service produced within the area. In addition to this, new
money generates additional value. The multiplier concept applies to domestic travel also. The
multiplier effect occurs from three levels of impact created by tourism purchases. These
effects are called direct, indirect and induced effects. Direct effects or first round effects come
directly from tourist spending, such as the increase in the number of employees and the
amount of wages paid to restaurant employees due to tourists spending in the restaurant.
Indirect effects or secondary effects are created from the increase in purchases by tourism
suppliers to serve tourist needs, such as increase in food and beverages purchased from
suppliers by a restaurant. Suppliers in turn will have to increase their purchases. Induced
effects are other increases in the economic activity, employment, taxes, etc. generated within
the area’s economy at large due to the existence of tourism. Tourism is usually a good source
of new money for an area because visitors travel to the area and leave their money behind as
they buy goods and services during their visit. Most countries desire international visitors
because tourism services sold to foreign travellers are considered exports
Another positive economic benefit of tourism is that it can provide stability in an economy.
When recessions severely affect all industries, historically tourism has been seen as less
affected. Tourism provides economic diversity. A stable economy is one that provides jobs
and revenues from a variety of industries. Tourism can be added as another economic engine
to the industry mix. Unlike many other industries, tourism provides a wide variety of job
opportunities like the entry level employment for relatively unskilled and semi-skilled
workers, positions for highly skilled crafts persons, such as chefs and artists and many
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professional level career opportunities for well-educated decision makers. Tourism provides
the incentive to improve the infrastructure that can be enjoyed by residents as well as tourists.
Another additional positive impact of tourism is that tourism business can be started in the
form of a small business encouraging entrepreneurial activity. Small retail shops, restaurants,
bed and breakfast homes, guides and taxi services are a few of the many tourism-related
small business opportunities. Hence tourism has many economic benefits.

STAGES OF TOURISM DEVELOPMENT

Stages that a tourism destination may go through from beginning to decline as suggested by
Butler, R.W. (1980)17 are as follows:
Exploration stage
Small number of visitors discover the destination area.
Involvement stage
As the number of visitors increases, more host community members become involved in
serving the needs of the tourists.
Development stage
As the tourists arrivals increase rapidly and outside developers build large facilities to serve
the seemingly endless demand tour operators add the destination to tours.
Consolidation stage
When the growth in the number of visitors ceases, the destination loses its distinctiveness.
Professional managers focus on controlling costs and gaining from tour groups. Some
environmental and cultural problems begin to appear.
Stagnation / Decline stage
When the area has reached full capacity, the business tries to maintain tourist numbers and
revenues by decreasing prices. Maintenance of facilities declines and the resort area begins to
look dated. All of the environmental and social problems of tourism appear.
World Tourism Organisation has realised the importance of linking tourism with poverty, one
of the most important social problems of the world. WTO launched an initiative called
Sustainable Tourism Elimination of Poverty (ST-EP) to creatively develop sustainable
tourism as a force for poverty alleviation. But at the same time attention was placed on the
impact of tourism on different spheres of life especially on the physical and human
environment of destination.
Travel and tourism is one of the world’s leading industries in terms of revenue generation.
Tourism has been pivotal in social progress as well as an important vehicle of widening
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socio-economic and cultural contacts throughout human history. A wide array of interests like
entertainments, sports, religion, culture, adventure, education, health and business drives
tourism. With the advancement of telecommunication, transport and improvement in other
facilities the demand for tourism has increased tremendously. The development, promotion,
management and administration offer varieties of opportunities for tourism employment in
the public and private sectors.

KERALA TOURISM INDUSTRY

Tourism traffic to Kerala shows an increasing trend over the past few years. The Kerala
Tourism is witnessing an enviable advantage in tourist arrivals during the year and the
number shows an increase of 16.11 per cent over the previous year. During the last year
Kerala has contributed 11.6 per cent of the total foreign tourist arrivals to India. The number
of domestic tourists arrived also shows an increase of 14.28 per cent over the previous year.
The Department of Tourism, Government of Kerala had registered that maximum number of
foreign tourists arrivals is in December-January and they keep coming till February which is
the peak tourist season while the major share of domestic arrive is in December.31 The most
fascinating and unique attraction about Kerala as a tourism destination is that it has
everything a traveller looks for and much more to discover. Nature has not blessed any too
many spots like it did Kerala with temperate climate throughout the year to make it the
destination “where the season never ends”. Thus the State is endowed with the immense
potential for the growth and development of tourism industry in an international perspective.

STATE ECONOMY AND TOURISM

Tourism is considered to be the biggest contributor to the growth of service sector in Kerala.
According to the WTTC Report, travel and tourism in Kerala is expected to grow by 11.4 per
cent per annum in real terms between 2004 and 2013. The state could emerge as the top brand
in world tourism by positioning and maintaining tourism as a core competent sector of state
priority. New and varied exciting tourism products offered by the state include health tourism,
farm tourism, beach tourism and cultural tourism. Apart from being a tourist destination,
Kerala is also India’s most advanced society, cleanest and most peaceful state. A state where
investments are rare to come by, it is the tourism sector, which has been the main stay of
Kerala’s economy.
Ever since tourism was declared as an industry in 1986, several incentives which were
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available to the investors in other industrial sectors have been extended to the tourism sector
as well by the State government. During the early 1980s and the first half of the 1990s the
state had a financial crisis that affected almost all the state-sponsored developmental
activities. But it was the tourism sector that enabled the state to come out of the crisis and
improve the economic position. The economic liberalization and reform process of the 1990s,
enabled the tourism sector to attract investment for tourism related infrastructure
development. The National Tourism Policy of 2002 envisages to acknowledge the critical role
of private sector with government working as a pro-active facilitator and catalyst. During the
last few years, Department of Tourism along with the State government has concentrated in
the development of basic infrastructure for the promotion of new tourism products for
tapping the tourism potentials of Kerala. As the State has identified new and exciting tourism
destinations, the variety of tourism potential areas is spread throughout the state. Accordingly,
the investment has to be spread out to new destinations in all seasons. Strategies such as the
infrastructure development with respect to accommodation and supporting facilities has to
come from the private sector. Development of small and medium enterprises in tourism will
enhance the situation in this regard. As per the recent Kerala tourism statistics there is
considerable demand for heritage resorts, home stays, house boats, etc. by the foreign tourists
visiting Kerala.
The state government, either directly or indirectly has to take further initiatives to encourage
private investment in providing tourism infrastructure at all potential tourist destinations. The
private sector will be encouraged to participate only if the financial assistance and basic
amenities such as quality access, water, power, communication and waste management
facilities are provided at places where the tourism infrastructure is to be provided. The
support of the Central and State government should be in the form of a facilitator by
providing investor friendly atmosphere, policies and initiatives.

INDICATORS ON ECONOMIC IMPACT OF TOURISM

Tourism sector happens to be one of the largest earners of foreign exchange in the world, and
has acquired tremendous significance in recent years. The sector is growing at a fast pace,
especially in the developing countries. The tourism industry is a major contributor to the
State’s economy. It is found that the foreign exchange earnings during the year 2009 is Rs.
3066.52 crores which recorded a growth of 16.11 per cent over the previous year. The total
revenue generated from tourism comes to Rs 13130 crore, showing an increase of 14.84 per
cent over the last year and the tourism contribution to State’s GDP is 7.70 per cent.
19
The following are the indicators on the impact of tourism.
 Foreign Exchange Earnings during the year is Rs 3066.52 crores.
 Total revenue generated from tourism comes to Rs 13,130 crores.
 Tourism’s contribution to State’s GDP is around 7.7 per cent.
 The average per day expenditure of a foreign tourist is Rs 3200.
 The average per day expenditure of a domestic tourist is Rs 1500.
 The average length of stay of a foreign tourist is 16 days.
 The average length of stay of a domestic tourist is 6 days.
GLOBAL ECONOMIC RECESSION AND KERALA TOURISM
Kerala Tourism also faces the challenges of the after effects of this situation. It is assessed
that the net impact would be around 30 per cent reduction in business turnover due to
cancellation and forced price reduction a drop of about 25 percent in domestic business and
roughly 35 per cent in international business. The houseboat industry is foreseeing difficult
times ahead. There were no chartered flights operations to Kerala during this year,
considering the fact that, in the previous year up to 7000 tourists have come to Kerala in
chartered flights spending an average of ten days, the impact of tourist can be assessed.

EXPANDING TOURISM PORTFOLIO IN KERALA

In order to develop itself as a world class tourist destination, Kerala has successfully adopted
the following measures:
 Strong Brand Positioning
 Thinking out of the Box
 Product Differentiation
 Model Public / Private Partnership
 Tremendous political Support; and
 Public Acceptance

NEW INITIATIVES OF KERALA TOURISM

Green Farms Kerala
Kerala, being an agriculture dominated State, has the tremendous potential for developing
Farm Tourism in a big way without much additional investment. The State has more than
one-third of its cropped area under the cultivation of tea, coffee, rubber, pepper, cardamom
and ginger plantations, and another one-third under coconut plantations. About 350000 lakh

20
hectares of land is under paddy cultivation. With minimum intervention and of investment,
these can be converted into tourist attractions in order to transfer the benefits of tourism
directly to farmers. As a step towards this, Kerala Tourism has launched ‘Green Farms
Kerala’, an exclusive venture that aims at preparing the farms / plantations in the State to
receive tourists. Additional income from the farm could be possible through farm visits,
trekking, boating, fishing, canoe rides, elephant rides, bicycle tours, bird and butterfly
watching, participation in farm activities, sale of farm produce and value-added products, sale
of local products, food counters, etc.

My Village Tourism or Tourism Friendly Village

By inspiring farmers and plantation owners to open up the rustic village experience for the
growing number of travellers seeking to touch the heart of Kerala and unveil its very soul.
This scheme is in association of Department of Tourism with the Local Self Government
Department presents existing opportunities for the villagers and tourists alike. The scheme
aims at promoting new tourist centres, inspiring products and innovative activities like
adventure tourism right within the village, enabling the tourists to enjoy the authentic
experience of Kerala in its hamlets while providing greater employment opportunities for the
villagers.
In the villages of Kerala one can enjoy true Indian hospitality, where the guest is God. The
colours of the turbans and the saris of the women are in stark contrast to the often parched
backdrop of the landscape. One will be amazed by the elegant way these village women carry
myriads of pots on their heads, and at their incredible dresses. The women cover the outside
of their houses with mud and then paint them with intricate designs, using only their hands
and a paste made of lime. Accommodation is so comfortable for the traveller. Many houses
previously owned by the local gentry are now being run as small hotels. Even though modern
amenities are provided, they have lost nothing of their originality and charm.
ThrissurPooram, the pooram of all poorams, falls in April every year. It is different from
other national festivals like the KumbhaMela of Uttar Pradesh, the Vijayadashami pageantry
of Mysore or the RathYatra of Orissa. It is intrinsically a people’s festival in all respects. The
unique catholic nature of Pooram can be traced to its genesis two centuries ago when
SaktanThampuran, the very architect of Thrissur. Became the ruler of the erstwhile state
Kochi, when the Prince Rama Varma (1751-1805) was enthroned as the ruler, the fortunes of
the state were at its lowest ebb.
ThrissurPooram, the mother of all temple festivals in the state, is essentially one of
21
spectacles. The two devaswams, -Thiruvampadi and Paramekkavu, explore and exploit every
source at their command to make this annual festival a memorable one. It is celebrated with a
colourful procession of caparisoned elephants, parasol exchanges, and drum concerts, display
of pyro techniques and refreshing scenes of public participation. During the festival season,
Trissur, popularly known as the temple town, turns into a town of colour, music and mirth.
Grihastali : The Heritage Protection Scheme
Grihastali is a well thought out scheme to preserve our traditional architecture by converting
them into excellent accommodation options with modern facilities. In addition to offering a
taste of the authentic Kerala lifestyle which is becoming popular across the world, Grihastali
will also inspire public participation in the promotion and development of tourism in the
State. The Department of Tourism has designed an exclusive package of incentives and
financial assistance to projects which are approved. The financial assistance proposed has
been arranged in collaboration with the Kerala Financial Corporation and nationalised banks.
Kerala will have to launch new tourism products, target new markets and continue its
innovative marketing to retain its position as the forerunner of tourism in the country. In short
tourism is a major mission and has a tremendous potential of growth in this beautiful
territory, which is nature’s special manifestation. The State has to think differently to devise
new strategies in promoting tourism among the domestic and international tourists. Also state
has to foster an investor friendly climate with respect to the emerging tourism portfolio in
Kerala

TOURISM INVESTMENT OPPORTUNITIES IN KERALA

For this the government, tourism department and financial institutions should join hands for
encouraging public private partnerships in setting up of the various new and emerging
investment opportunities which are enlisted as follows:
Tourism attractions Investment opportunities

Transportation Operation of aircrafts, luxury coaches and cars, boats, steamers, etc

Accommodation Operation of aircrafts, luxury coaches and cars, boats, steamers, etc

Tours and Travels Travel agencies, tour operators, tourist taxi and transport operators

22
MICE facilities Meeting hubs, convention centres in backwaters, beach hill resorts,
trade fairs, event organisers, etc.
HRD Institutions Manpower training centres, guide training centres, management
training institutes, etc
Souvenir shops Handicraft shops, souvenir shops, ethnic boutiques, traditional
jewellery centres, manufacturing units.
Information facilitation Information kiosks, guide agencies, publishing of maps, guides, etc

Science tourism Planetariums, Science & Technology museums, theme show

theatres, 3D motion stimulators, 4-screen multiplex, amphitheatre,
etc.
Film shoot facilitation Production houses, location scout teams, light equipments,
unit/production vans, crew/man power agencies.
Wayside amenity centres Restaurants, motels, pay-and-use toilets, snack bars , utility shops

Wellness centres Ayurveda centres, wellness spas, health clubs, treatment centres,
exclusive packages, etc.
Beach side entertainment Water-skiing, surfing, snowboarding, canoeing, yachting, diving,
underwater aquarium, recreational boat industry, sea food
restaurant,etc.
Backwater amenities Backwater cruises, resorts, floating restaurants, floating cottages,
water sport facilities like speed boats, yacht & cruisers, recreational
facilities like angling and fishing.
Jungle attractions Environmental friendly accommodation, tree houses, multicuisine
restaurants, plantation tours, wild life safaris, spice tours, boat
cruises, elephant safaris, bird watching, etc.

GOVERNMENTAL INITIATIVES FOR TOURISM DEVELOPMENT

Kerala tourism, which has become a major contributor to the state’s economy, deserves the
backing of the Union Government. The state of Kerala is one of India’s largest developed
tourism destinations. The major components of tourism industry in Kerala are identified as
restaurant, transportation, houseboat, health, ecotourism and tourist shopping. In Kerala,
Department of Tourism, Government of Kerala is the nodal agency promoting tourism-related
activities within the state. The Government’s policy is to promote tourism in a big way since
Kerala has the potential to attract people from all over the world. Tourism has emerged as a
more powerful catalyst for economic development than the manufacturing, construction and

23
service industries. Kerala tourism has made a steady growth during the past 15 years. The
state witnessed an appreciable increase in the arrival of tourists during this period. The
tourism sector provides employment to one million people in the state, and the number is
expected to increase in the coming years. The foreign exchange earned by Kerala during 2006
reached Rs. 19,880 millions.

TOURISM POLICY – SALIENT FEATURES

Kerala is one of the earliest states in India to announce industry status for tourism in 1986
and announce various incentives and subsidies to attract investment. These early 14 Hill
station facilities Herbal gardens, plantation tours, tree houses, golf courses, angling, cycling,
boating, paragliding, rock climbing, recreational facilities like rope ways/cable cars. 15
Jungle attractions Environmental friendly accommodation, tree houses, multi-cuisine
restaurants, plantation tours, wild life safaris, spice tours, boat cruises, elephant safaris, bird
watching, etc. efforts were aimed at creating the investment friendly atmosphere for tourism
in the state needed for the industry to grow. This increased the investment opportunities for
potential investors. Main lending institutions in Kerala like Kerala Financial Corporation
(KFC), Tourism Financial Corporation of India (TFCI) and Kerala State Industrial
Development Corporation (KSIDC) play an important role in funding the tourism projects.
State also adopted many proactive measures to stimulate investment in tourism industry like a
system for fast track clearance of tourism projects, subsidies, technical guidance, marketing
assistance and support in availing loans (GOI, 1998). The shift in emphasis of tourism
department to a more proactive role of tourism development and marketing and promotion of
the destination started since the early nineties.
Tourism Policy 1995
 The key emphasis of the Tourism Policy highlights focus areas for the state:
 Promoting tourism with the tourist and the pilgrim as the focus.
 Providing special facilities to the traveller
 Improving efficiency of the industry.
 Ensuring participation of stakeholders, including the travel trade and tourism industry.
 Providing quality services to all consumers and stakeholders.
 Improving, diversifying and expanding the marketing of the tourism products.

New Policy Initiatives

24
The new initiatives of Kerala Tourism during 2008-2009 are as follows:
New policy initiative on responsible tourism
 Formulation of destination management committees in every tourist destinations
 Initiated schemes for promoting souvenir industry
 District Tourism Promotion Council reconstituted
 Initiated Schemes for promoting adventure tourism
 Initiated schemes for promoting ethnic food tourism
 Comprehensive development of Alappuzha heritage city
 Comprehensive development of Kerala Kalamandalam
 Development of Ashtamudi cruise circuit
 Kadinamkulam Backwater project
 Bridging the merit of IT for the tourism industry
 Launching of a series of online initiatives branded login Kerala
 Partnership with Google

IMPACT OF TOURISM INDUSTRY IN KERALA

Kerala has tremendous potential for promoting tourism in the state, which will provide
employment, increase business and earn foreign exchange for the country. But this can be
made practicable only if the State is taking proper care in addressing all issues connected
with this sector. The focus of Kerala tourism now is on creation of quality infrastructure at
the tourist destinations and enroute, especially in transportation and road infrastructure.
Tourism’s greatest impact is on the generation of employment. Such employment generation
may cover areas of direct interaction with the tourists, such as persons employed in hotels,
airlines, tour operators, restaurants, retail, leisure and entertainment. However, the
employment impact spreads over a larger area of the economy, covering jobs associated with
the input industries such as suppliers, government agencies and manufacturers of supplied
commodities. Hence, the direct and cascading effect of tourism on employment generation is
significant in Kerala.

PORTER’S FIVE FORCE ANALYSIS

Prof. Michael E. Porter in his path breaking work4 has provided a framework that models an
industry as being influenced by five competitive forces. These “forces” help analyse
everything from the intensity of competition to the profitability and attractiveness of an

25
industry.
The Five Forces are:
 Competition rivalry within the industry
 Threat of new entrants
 Threat of substitutes
 Supplier power
 Buyer power

Here, Potter’s Five Forces are analysed in the following paragraphs in context with tourism
industry in the State and as tourism sector develops, the problems and prospects the stake-
holders are likely to face.

COMPETITIVE RIVALRY WITHIN THE INDUSTRY

Strongest among the forces is the competitive nature of the sellers. The sellers want to
dominate the market through buyers favour. In tourism industry, rivalry is centred on price
competition and promotional schemes whether it is local or cross country. Following are the
important reasons for high rivalry among sellers especially in tourism industry:
Number of competitors
In today’s fierce competitive world, each nation is trying to attract international tourists
through aggressive marketing. If India wants to attract more foreign tourists in particular,
than much more is required to do by concerned agencies, especially on the marketing front to
combat countries like China, Malaysia, and Singapore etc. to name few of the Asia Pacific
countries. When the state of Kerala is taken as an independent unit and a comparison is made
with India, whose position itself in the world tourism map is not so satisfactory. In other
words, Kerala has to go a long way to reach to its potential.
Growing demand
Rapidly increasing tourism market brings about enough business to the region. As demand for
goods and senders increase along with increased tourist flow, the industries like hotels,
transport, eating joints, handicrafts etc. also starts growing. Tourism is one of the world’s
fastest growing industries at present and holds fourth place after fuels, chemicals and
automotive products. For India, tourism is the third largest export industry after gems and
jewellery and ready-made garments. Thus, to enhance employment and income in the State,
development of tourism sector should be on the priority list of the State Government.
Low switching cost

26
The lower the cost of switching to other business, the easier it is for the rival seller to enter
another sellers’ domain. In the case of tourism industry, switching cost is relatively low.
When competitors market their brand at more or less at the same price and promotional
schemes, as in the case of tourism industry, competition becomes tougher.
Standardize service
Tourism is based on standardize services. The differentiation of services, the novelty and the
level of hospitality conditions etc. help increase the rivalry among the competing sellers. To
attract more tourists, the State has to come out with newer and newer schemes and incentives
for the tourists all the time.

Price cut
In a competitive market, it is a common phenomenon that sellers in the process to attract
more customers will reduce price of their product thus a situation of price war can be end
result. In tourism sector this happens when different incentives are dished out to tourists to
visit a place or region.
THREAT OF NEW ENTRANTS
High Investment
Capital intensive industry like tourism sector requires large investment to begin with. If it
happens to be a new venture then the threat of new entry of competitive business units is less.
Thus, high amount of capital requirements or risk works as one of the entry barriers.
Economics of Scale
Economics of scale are an important barrier to entry in tourism industry. Units like, hotels,
transports - like road transport, rail, air etc. requires the potential competitors either to enter
on large-scale or to accept cost disadvantage. In the initial stage, a new investor enters the
market with large-scale investment and is unable to capture the market in proportion of
supply; the expected result will be losses. On the other hand, if new entrant accept cost
disadvantage, he may not survive in the tough competitive market.
Cost and Resource Disadvantage
Existing firms may have cost and resource advantages and this may act as a deterrent to
potential entrants. In the tourism sector this concept applies to a great extent.
Learning and Experience Effects
It is a known fact that lower unit costs are partly or to a large extent a result of experience in
producing or marketing the product. A new entrant on the other hand faces a potentially
significant cost disadvantage while competing against existing firms with more accumulated
27
knowledge. In the case of tourism industry, past experience and present knowledge about
rivals’ strategy goes a long way in the development of tourism of the place or region.
Regulator Policies
Government policies are an important factor in the development of tourism of a place or a
region. No country in the world today practices free trade. The doctrine of “laissez-faire” is
dead. Various types of restrictions are imposed on trade, internal or external, either for
earning revenue or granting protection to certain industries or region. Common methods of
protection followed in the tourism sector are:
Taxes: Levying taxes or traffics on imports of commodities which are also produced at
home/local place. Such duties raises the price of the imported goods and enable the domestic
(local) industries to gain a price advantage over them or offset the price disadvantage that the
domestic industries suffer from.
Bounties: At times Government or local authority’s grants financial assistance to local
producers to enable them to offset their price disadvantages.
Quotas: Government or local authorities in order to develop on underdeveloped area
prescribe quotas on the importation of certain goods. This enables, the local producers to
know how much will come from the other countries or areas and plan production accordingly.
Entry Permit: Sometimes Government agencies limit outside entry by issuing licenses and
permits. Mandatory safety regulations and environmental pollution standards are entry barrier
because they raise entry costs.
THREATS OF SUBSTITUTES
Tourism industry is one type of entertainment industry. Theatre, cinema, television etc. are
also entertainment industries. But it will be churlish to say that they are close substitute of
tourism industry. Thus, tourism industry as such has no problem of close substitute.
SUPPLIERS POWER
Whether supplier-buyer relationship represents a strong or weak competitive force rests on
whether supplier can exert sufficient bargaining power to influence their own terms and
conditions of supply and the extent of supplier-buyer collaboration in the tourism industry.
On the other hand, suppliers are pushed to a weak bargaining position when there are good
substitutes for the item and buyers find it neither costly nor difficulty to switch their
purchases to the alternative items. Suppliers also have less option to bargaining over price
and other terms of sale if the buyer happens to be a major customer.
BUYERS POWER
Customers (buyers or tourists) of an industry (tourism industry) constantly look for reduced
28
prices, improved product quality and added services and these can affect competition within
an industry i.e., may be different State Tourism Corporations or different countries. Buyers
(tourists) push individual suppliers against one another, in their efforts to obtain the above
mentioned benefits or other concessions.
Large number of buyers
When numbers of buyers are large, to attract them, it requires mass promotional schemes. As
customers are located in different geographic areas having different culture and taste it
demands different types of schemes and incentives so as to get attracted to visit a particular
place. On the other hand, coming from different location and having different taste and
culture, though in large numbers, they may not generate sufficient bargaining power
collectively. It is up to the industry to gauge the situation and putting the best foot forward
and try to attract as much tourist as possible from the rivals. In short, Buyer’s power depends
on:
 Number of customers (tourist)
 Size of each order
 Differences between competitors (different tourism bodies),
 Price sensitivity
 Ability to substitute
 Cost of change

THE CHALLENGES FACED BY THE TOURISM INDUSTRY

Indian/Kerala Tourism Industry plays an important role in bringing foreign exchange to the
nation and revenue to State’s exchequer, yet it has mostly faced step-motherly treatment at
the hands of central government in general and state governments in particular. The
inadequacies faced by the industry are many and can be broadly listed as follows:
 Lack of adequate infrastructure in the form of airports, roads, telecom and
accommodation,
 Levy of taxes, on tourism and tourists are not only high but also unconscionable,
 Plethora of clearances to be obtained from numerous agencies of the central and state
governments.
 Difficulties in obtaining land for any development projects if it happens to be private
enterprises in particular.
 Restrictions on the movement of tourists and tourist vehicles in many cases.
 Lack of adequate security especially to foreign tourists.

29
  And most important, inadequate “Human Resource” development leading to the
visitors being treated more as an intruder than as an honoured guest.

KERALA TOURISM STATISTICS – 2016

 Foreign Tourist arrival to Kerala during the year 2016 is 10,38,419. It shows an
increase of 6.23%over the previous year’s figure of 9,77,479. Domestic Tourist arrival
to Kerala during the year 2016 is 1,31,72,535. It shows an increase of 5.67% over the
previous year’s figure 1,24,65,571.
 Foreign exchange earnings for the year 2016 is Rs.7749.51Crores which recorded an
increase of 11.51%over the previous year.
 Total Revenue (including direct & indirect) from Tourism during 2016 is Rs.29658.56
Crores, showing an increase of 11.12%over the last year’s figure.
Month wise Foreign and Domestic Tourist arrivals during the year 2016 are as shown
below:

30
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 CHAPTER 2

ORGANIZATIONAL ANALYSIS

33
2.1 HISTORY OF ORGANIZATION

Government of Kerala trended to ignore its tourism potential completely until the late 1980s,
despite the strong marketing efforts done by leading private tour agencies. This even
forced WTTC, often referring Kerala as a late-comer to the tourism sector.

The potentiality of tourism was first identified during last days of Travancore Monarchy. It
was 1st Prince Col. GodaVarma Raja (Husband of H.H Queen of Travancore,
KarthikaThirunal), while spending his honeymoon holidays at Kovalam's Halcyon Castle,
discovered the immense possibility of exploring the kingdom's tourism opportunities. As 1st
Prince, he was in-charge of receiving state guests and often several visiting dignitaries used
to praise the natural beauty, which made him realize to seriously concentrate in developing
the industry. However his idea received a cold response at Royal Court, forcing him to start
his own venture to popularize key tourist destinations. The attitude of ignoring tourism
continued even after Independence, leaving the sector purely driven by few private ventures
and hotel chains.

During the 1960s Kovalam soon rose into international fame, as one of the major centers
of hippie culture in India, which started massive influx of foreign tourists, bringing large
amount of much needed foreign exchange. It was at this point of Kerala Government, slowly
started realizing the importance of tourism.

Following are the vision statements of DOT

 To expand its service base to more and more emerging areas and in developing new
tourist destinations in the State.
 To increase Foreign Exchange and Domestic contribution.
 To increase the Employment Opportunity (direct & indirect)

2.2 MISSION, VISION AND VALUES

MISSION
“To develop infrastructure and quality accommodation options in the state and thereby
promoting tourism as a whole in Kerala”
VISION
"To make Kerala, God’s Own Country, and an upmarket high-quality tourist destination
through rational utilisation of resources with a focus on integrated development of
infrastructure sector, conserving and preserving the heritage and environment and enhancing

34
productivity, income, creating employment opportunities, alleviating poverty, thereby making
tourism the most important sector for the socioeconomic development and environment
protection of the State."
Tourism Vision 2025
Tourism Vision 2025 is to serve as a guiding force to provide a clear vision and direction for
optimizing tourism potential of the state in sustainable manner.
 To increase earnings from tourism at the rate of 10 per cent annually
 To achieve an annual rate of growth of 7 per cent in foreign tourist arrivals and 9 per
cent growth in domestic tourists.
 To create employment opportunities of 10,000 every year.
 To add required hotel rooms in star categories every year
 To innovate and promote at least one new tourism product/destination every year.
2.3 OBJECTIVES
The Key objectives of Kerala Tourism Department are 5 critical and strategic policies:
 Policy: supporting a transparent and inclusive policy process, promoting fair and open
competition, strengthening institutional capacity to implement and enforce policies,
drawing international support to augment expertise in developing Kerala Tourism
 Product Development: leveraging core strengths, creating new products, building
USP, focusing on sustainable development to offer products of international quality,
creating enabling investment environment, stimulating demand, promoting
partnerships to ensure the flow of funds into the tourism sector. Kerala Tourism
Department has developed more than 14 different products
 Marketing: building a brand, emphasizing quality assurances, providing demand-
driven information, competing at a global level, collaborating on international and
regional platforms to create a highly visible platform for the state.
 Infrastructure: focusing on the core and linkage infrastructure and investing in
strategically focused capacity to support development priorities
 Tourism Services: building a critical mass of tourism workers, increasing technical
skills, strengthening community entrepreneurial skills, augmenting managerial
capacity to build a service sector sensitive to tourists and tourism.
Objectives of Kerala Tourism 2025

 To make tourism Kerala’s core competency sector

35
Tourism has emerged as the global industry and has been playing a lead role in economic
growth. In Kerala, tourism has played a significant role in terms of employment and
economic growth. In view of its potential in creating employment, enhancing production and
productivity and contribution towards the development of the state, a growth model led by
tourism will take the state to the pinnacle of socio-economic development.

 To generate employment and enhance productivity

Tourism in Kerala has recorded remarkable growth in the last few years. The number of
foreign tourist and domestic tourists visiting the state has crossed 2 lakhs and 50 lakhs
respectively. Total employment generated both direct and indirect in this sector is about 7
lakhs and the total revenue generated in the economy due to tourism is nearly Rs. 4,000 crore
which is 6.29 per cent of the G.D.P.

 To promote and market Kerala tourism products at national and international

level thereby making Kerala a premier global tourism destination
Promotion and marketing are important components for the development of tourism. Kerala
tourism will take steps to develop and implement effective market strategies to get better
mileage and value for the money spent. This will be based on the market analysis and the
consumer preferences.

 To define and endorse the role of the Government as a catalyst and facilitator for
the growth of tourism industry
Tourism is basically a private sector activity. The state will play the role of catalyst and
facilitator. The state will work towards inter-governmental co-ordination, rationalised and
mild taxation policies, regulating growth in a sustainable manner and providing safety to
tourists. In order to define the role of the Government, the Tourism Vision will be brought
out by the Government.

 To rationalise tourism related legislations and policies of the Government so that

it is tourism friendly and promotes tourism growth.
As tourism is a multi-sectorial activity and it is affected by many other sectors in the
economy, the state has to play a lead role in enacting tourism-friendly legislations. The
existing legislations like KLU Order, Rent control act, Labour Acts, Building Tax Act,
Excise Law etc. will be reviewed in order to facilitate growth of tourism.

36
  To create awareness and tourism consciousness among the people in general and
among the taxi drivers, policemen, bus conductors, porters, customs and
emigration officers, and others with whom tourists interact thereby removing
prejudices and misconceptions and to make Kerala society a tourism friendly
society.
One of the most important components in the development of tourism is the host population.
The host population or the local community, which is tourist- friendly, will send the right
message and that leads to a higher growth. Government should therefore initiate programs for
creating awareness about tourism, culture, art and heritage of the State and to inculcate
among the host population positive and helpful attitudes towards tourists.

 To develop and improve roads, drinking water supply, electricity and power
supply, sewage and sanitation systems, signage’s, transport systems like roads,
rail, sea, inland water and air for selected tourist centres

An important component for the development of tourism in any state is the basic
infrastructure facilities. The state has to ensure that the basic facilities like motor able roads,
clean drinking water, uninterrupted electricity and power supply, efficient waste disposal
systems, good transport facilities and signage systems are in proper place at least in important
tourist areas. The Government should have a mechanism for coordination with other
departments like PWD, water authority, irrigation, transport and forest etc. The state will
make special efforts to welcome investment in infrastructure sector from NRIs, NRKs and
international funding agencies.

 To promote sustainable and eco-friendly tourism in the State based on the

carrying capacity of the destinations
The strength of Kerala tourism is its excellent natural resources in the form of beaches,
backwaters, hill stations and wildlife sanctuaries. Having understood the need for looking
into the sustainable development of these destinations, Kerala tourism focuses on the
conservation of ecology and preserving the pristine environment to reduce the negative
impact of tourism and intend to promote development of tourism based on the carrying
capacities of the destinations. Development of the tourist destinations will be controlled and
regulated based on the guidelines formulated through area development plans.

 To conserve and preserve the art, culture and heritage of the state

37
Kerala is immensely rich in its unique art forms, culture and heritage. The tradition of
classical and folk arts in Kerala dates back over a thousand years. Koodiyattom, one of the
oldest art forms of Kerala, and the only surviving form of the ancient Sanskrit drama, was
recently selected by UNESCO for proclamation as an oral and intangible world heritage.
Kathakali, Mohiniyattam, Thullal, Theyyam, Thira etc. are unique in their style and forms.
The architectural monuments in the state maintain a unique character.

 To develop and promote new innovative tourism products, lesser-known

destinations, art forms, cuisines, monuments and handicrafts.

Tourism in Kerala is now concentrated in the southern parts of the State. Considering the
fragile nature of ecology and environment, it is necessary to disperse the activities to lesser-
known destinations to avoid overcrowding and exceeding carrying capacities. It is also
necessary to develop and promote new products to sustain the positioning. Constant and
continuous innovation will be the route to ensure the top slot for Kerala tourism in the hearts
of discerning travellers.

 To identify, conserve and preserve special tourism zones

Tourism in Kerala is mainly nature-based and unless the developments are controlled /
regulated based on special guidelines formulated for identified special tourism zones, the
destination will not sustain for long. Hence, guidelines will be formulated for the
conservation, preservation and growth of Special Tourism Zones.

 To develop and promote KITTS, KIHMS and IHMCT into institutions par
excellence in India and regulate the syllabi and training facilities of other
institutions to maintain the Quality Standards.
Human Resource Development is an important sector to be developed for effective promotion
and development of tourism in the state. In this regard the existing institutions like KITTS,
KIHMS and IHMCT will be developed into institutions of excellence. The other institutions
offering tourism-related courses will be regulated to maintain quality standards.

 To involve PRIs and NGOs in the development of tourism infrastructure and

tourism awareness.
Any scheme / project in the field of tourism can only become successful if it is implemented
through local participation. The strong Panchayat Raj Institutions and NGOs in the State can
contribute greatly in building up tourism infrastructure and necessary basic amenities.

38
Creation of awareness on the benefits of tourism in terms of economic, physical and social
development, traditions of Indian hospitality and importance of providing assurance on safety
and security to tourists cheating, to prevent harassment to tourists will be done through the
PRIs, NGOs and youth centres

2.4 SWOT Analysis

In order to understand the strengths, weakness and opportunities of the Corporation, its
structure, overall operations and marketing functions of the Corporation, it seem paramount
important to have SWOT Analysis. The following are the major strengths, weaknesses,
opportunities and threats of the organisation identified through the analysis.

Strengths

 Very good reputation.

 Worldwide recognition.
 High quality Tourism Products.
 Strong brand positioning (Global super brand).
 Good range of quality visitor attractions offering a multitude of different tourism
experiences and environments.
 Good customer satisfaction ratings.
 Large number of quality and attractive tour packages and conducted tours.
 Rich cultural heritage and tradition.
 High repeat visitation and customer retention.
 Good communication links giving access to a large catchment area.
 Tremendous government and political support.
 Public support and acceptance.
 Systematically organised, attractive, informative and user friendly website.
 Supported with a dedicated team of employees by which the goals of the organisation
can easily be achieved.
 Large number of tourism information centres and tourist reception centres.
 Well-structured and well equipped high tech central reservation cell.
 Highly skilled and professional managers at top level.
 Large number of massage centres and houseboat accommodation facilitations.

39
  Local community cooperative, hospitable, kind, tourist-friendly and perceived with
warmth and welcome.
 Professionally skilled marketing personnel with a strong front-line sales team.
 Well established distribution network with worldwide coverage.

Weaknesses

 Lack of adequate number of professionally and technically skilled manpower.

 Lack of proper planning and implementation of projects and plans.
 Unaffordable pricing strategies for common man.
 Differential pricing strategies and price discrimination.
 Absence of clear and well defined policies.
 Inadequate infrastructure for matching the expectations.
 Lack of clarity in quality matters.
 Lack of vision and mission connectivity.
 Organisation does not follow a professional management system and hence efficient
decision-making is not easily possible.
 Proper channel of communication is not maintained within the organisation.
 Absence of public relations department and officer (PRO) in the organisation
structure.
 Improper maintenance of funds may impair the functioning of the Corporation.
 The centralised attitude of the superiors inside the organisation.
 Employees feel that the work is mechanical and monotonous.
 Lack of trained personnel in information centres.
 Insufficiency of the scientific tourism development.
 Poor tourism promotional strategies and techniques.
 Limited number of tour packages to attract international tourists.
 Level of customer care and professionalism need improvement.
 Lack of serviced accommodation at highest quality level; i.e. five star hotel
accommodation
 Insufficient funds for tourism promotion and infrastructure developments.

Opportunities

40
 Tourism is one of the fastest growing industries in the world with new products in its
arson, which is becoming more and more popular and entering into new and existing
markets by offering new opportunities.
 The awareness and attitude of people towards tourism is very much conductive to the
growth of the tourism industry in the State and development of the Corporation.
 The State’s special features like high literacy rate, high life expectancy, high position
in human development index etc. offers sufficient opportunities for the development
of DOT.
 Vast and untapped potential on heritage tourism, backwater tourism, beach tourism,
eco-friendly tourism, health tourism, farm tourism and pilgrimage tourism etc.
 Brand image of God’s Own Country for achieving the targeted high spending tourists.
 Tourism policy issued by the state provides opportunities for the development of the
corporation by inviting private investments which may result in the rapid growth of
the industry.
 The Corporation has well-qualified and experienced human resources which can be
effectively utilised for tapping the opportunities.
 The promotion of eco-tourism, farm tourism, hill station tourism, Ayurveda tourism
and backwater tourism.
 The existence of available areas for investments.
 The ability of the Corporation to appeal to the various market segments by providing
accommodation, packages, products and services in order to compete effectively with
other organisations.
 Growing interest in local distinctiveness, packages, accommodation and attractions,
which have not become over-developed.
 The competitiveness of the Corporation in terms of value based quality delivered for
the price paid by the visitor; and the marketing effectiveness in attracting visitors to
the products and services offered by the Corporation.
 Partnerships with private industry, government and stakeholders
 Development of the new infrastructures and wayside amenities.
 Increasing opportunities for Ayurveda Packages.
 Opportunities for restaurants and beer parlours.
 Transportation facilities by improved air connectivity with the introduction of low-
cost airlines.

41
  Development of activity based tourism.
 Development of more five star hotels and other forms of accommodation.

Threats
 Competition from the private sector.
 Various social organisations do not support tourism development due to the fear that it
will disturb the environmental balance and cultural heritage of the State.
 Existence of unethical traders and unlicensed agencies in and around tourism centres.
 Undesirable attitude of public towards tourism.
 Exploitation of natural resources, environmental pollution, ecological hazards and
cultural degradation etc.
 Changes in the economic policies by the Government adversely affect the tourism
industry in the State.
 Customs, culture and tradition of tourists.
 Seasonal changes and demands.
 Unplanned growth.
 Environmental pollution caused by backwater tourism.
 Quality concerns in health tourism services especially Ayurveda packages.
 Product development pattern in the recent past are against the principles of sustainable
tourism development.
 Political instability, safety and security situation.
 Lack of resources compared with some competing private agencies.
 Failure to keep abreast of IT developments in marketing communications.
 Relying on government input and funding.
 Government involvement in the development of new plans and projects.

42
SWOT Analysis

Strengths Weakness
 lack of proper planning
 high quality tourism
and implementation of
products
projects and plans
 large numbers of quality
 absence of clear and well
and attractive tour
defined policies
packages
INTERNAL  absence of proper
 high repeat visitation and
channels of
customer retention
communications
E  large number of tourism
 improper maintenance of
X
information centres and
T funds
E tourist reception centres
R  centralised attitude of the
N  professionally skilled
superiors
A marketing personnel with
L
strong frontline service

Opportunities S-O Strategies W-O Strategies

 Brand image of God’s
 Brand image of God’s  Projects can be
Own Country
own country will help in implemented with the
 The existence of
the sales of high quality help of well qualified and
available areas for
tourism packages experiences HR
investments
 Skilled and experienced  Funds can be allocated
 Vast and untapped
human resources helps to by finding the available
potential on various
build strong frontline areas of investments
areas

43
  well-qualified and services  Potential on various
experienced human  Wide range of tourist areas can be explored by
resources spot and packages helps proper communication
customer retention channels
 Increasing  Health tourism can be
opportunities for promoted with the
Ayurveda Packages. tourism packages

 The competitiveness
of the Corporation in
terms of value based
quality delivered for
the price paid by the
visitor; and in
attracting visitors,
Threats S-T Strategies W-T Strategies
 Competition from the
 Completion can be made  lack of proper planning
private sector.
healthy through the high increases the
 Seasonal changes and
quality products and competitions from public
demands
services sector
 Political instability,
 Customer retention and  improper maintenance of
safety & security
repeated visits can help funds increases the
situation
in raising funds changes of relying on
 Relying on
 Professionally skilled government funding
government input and
personnel’s can be  centralized attitude of
funding.
appointed to study the superiors creates lack of
 Lack of resources
change in trends of political instability
compared with some
demands  lack of communication is
competing private
 tourism information the key reason for not
agencies.
centres can help in knowing the demands of
assuring the customers customers
safety and security

44
2.5 PEST ANALYSIS

Kerala is one of the most popular tourist destinations in the world. Growing at a rate of
13.3%, the tourism industry is a major contributor to the state’s economy. Here an attempt is
made to find out what are the main environmental factors that have helped this growth and to
what extent to which the change will help the tourism in the state. The knowledge is
important because the change in these factors can have value usefulness on the way the
tourism industry performs. These environmental factors can be analysed through PEST
Analysis (P- Political, E- Economic, S- Social, and T- Technological). The PEST analysis,
within its parameters, shows the importance of any changes in Political, Economic, Social
and Technological environment on tourism industry of the state.

POLITICAL
The political factor plays a dominant role in case of tourism industry, whether it is for an
individual State or Nation as a whole. The industry is basically built on Government support
and a favourable political climate at the place. Without these, tourism industry cannot sustain
itself. The archaeological sites and the places of historical importance, the roads, the railways,
the support services like airlines, the hotel industry and the tourist operators etc., are heavily
dependent on Government support and cooperation. Any policy change from the Government
side can have a dramatic impact on the performance of the stake holders. For example,
whenever Government changes tax rates on the luxury and star category hotels or increase
entry fee to visit tourist sites etc., there is always a conflict between stake holders and the
Government and the net looser are always the tourists and in turn tourist industry. Secondly,
if political climate of the place is not peaceful and law and order problem prevails, tourist
flow will decline and tourism industry will suffer. If solving the country’s unemployment and
foreign exchange problems are on the top of National or State agenda, then the potential
growth of tourism industry cannot be neglected.
ECONOMIC

45
The tourism industry like other industries grows as spending of the people increases. The
spending power of the people, mostly of advanced countries within last decade, has been
increasing and this led to a large amount of idle cash in their hands. This, in turn, leads to the
tourism boom the world. In India, within last two decades or so, a large educated and skilled
middle class came into the work force with increased disposable income. Previously, most of
the foreign tourists or domestic tourists were shoe-string budget tourists. Now the scenario
has drastically changed. As far as the foreign tourists are concerned, they are mostly high
spending one and they opt for luxury hotels, world-class transport facilities and the like. Even
a large section of Indian tourists are ready to spent for high comforts on hotels, transport,
way-side eating joints etc. Thus, as tourism develops through increased flow of tourists, the
economy benefits through increased spending and its multiplier effects and the end result is
more income and employment of the place. This could be observed in any of the tourist
destinations of the State. The business activities have increased many-fold in these
destinations over last few years along with increased tourist flow.
However, if not carefully handled, tourism can propagate many economic problems. Loss of
economic benefits at a place can happen when there is a high import of goods and services
used by tourism industry of the place and economic conditions may further deteriorate if
tourist facilities are owned and managed by outsiders. This situation reduces net income
earnings of the affected place and may lead to resentment of the local residents. Nevertheless,
there may be no other alternatives but to go for outside help especially when capital and
managerial capabilities are limited. Again, economic distortions can take place
geographically, if tourism is concentrated in one or few places of the region without
corresponding development in other areas. Employment disproportion may be the result if
tourism attracts too many employees from other economic sectors, because of its high wages
and better working conditions3. In short, while tourism development is a must, limited but
effective State control over economic atmosphere of the place is an equally important aspect
for peaceful economic development.
SOCIAL (Socio - Cultural Impact)
Tourism brings both prosperity and problems to the local community and the cultural patterns
of the region. Though, more difficult to measure than economic or environmental impacts,
socio-cultural disturbances are the major concern for the policy makers while developing
tourism in any place. These impacts can be critical in countries that still have strong
traditional societies and economies. People become cautious especially of foreign tourists.
Goa is a living example of it. The above statements may sound discouraging, the scene will
46
be not so bad if the place or places can strike a balance between the local culture and the
demand of the tourists, foreign or domestic. People are now realizing that tourism can be a
major source of income and employment will have discomfort at socio-cultural level. They
also learnt that any type of new development brings changes. Tourism is only one among
many sources that affects socio-economic conditions of a place in today’s world. In short,
tourism should be well planned, developed and managed in a socially responsible manner so
that while bringing employment and income benefits to the place it will also safe guard the
traditional cultural aspect of the place.
TECHNOLOGICAL
Technology plays an important role in the promotion of a tourist spot or a region. In modem
world, better communication facilities are the most important prerequisites for the growth of
tourist inflow. Electronic communications helped remote and inaccessible areas of the
country get connected to the other parts of the world. Better communication system means
better media accessibility and in turn the place can project itself on the world tourist map. An
international class of transport system, be it road, rail, air or sea can go a long way to bring in
tourists in large numbers to a place. In short, technology plays a major role in the promotion
of a place. Of late, the state government and DOT are coming out in a very big way in the
utilization of technology for the development of tourism in the state.

2.6 7S FRAME WORK OF KERALA TOURISM

47
STRATEGY
Kerala Tourism is having a global presence and with its clear strategy for growth sheer
marketing activities, it has gained a lot of tourist from all over the world, Especially from
UK, USA, France and Australia. This article aims to understand the marketing strategy of
Kerala Tourism makes suggestion and develop a model to improve the tourism within &
outside state.

Diversity in India is a known concept in India and its worth to market these diversities
through tourism and Indian tourism and travel industry is estimated to be Rs 5533 Billion
rupees as per Dun and Bradstreet. With 173.48 billion of earnings from tourism in state it will
provide an opportunity to increase trade combined with other tourism also gives an immense
scope to diversify its portfolio of trade opportunities to foreign tourist. Let us see how Kerala
is pitching to Foreign and Domestic tourists.

48
Kerala tourism is currently concentrating more on indirect medium like TV ,Newspaper ,
Internet. Currently promotion is carrying out through two schemes :- Domestics promotion
and publicity and foreign promotions and publicity.

Various Marketing Strategies

1. Web Promotions–Kerala Tourism website receives nearly 1.5 million hits and 2.50 lakhs
page views per month. The key contents in the website includes Key Contents of the Website
include Ayurveda, Cuisine, Boat Races, “Plan Your Trip”, Festival Calendar, Shopping
Options, Picture and Video Gallery, Destination Gallery, and Visitor Queries.

2. MICE Tourism–It is positioned as the ‘Corporate Playground’. This product is

highlighted in all road shows and trade meets. The websites through its strategy of trade
promotions uses its USP like the backwater and promote foreigners in the pictures to indicate
tourism while they are on their business trip.

3. Separate promotion of Eco Tourism and Business Tourism

4. Separate International Print and Website Advertising–Promoting Beaches and other

destinations with a foreign people in the advertising.

5. Sponsorship of Events like Co-sponsor of Kovalam Literary Festival, the India

International Boat Show, organized by Kerala Tourism jointly with India Tourism, Sponsored
VAGA Fest at Kerala

6. Participation in International Fairs-Kerala tourism participates in all the major

international events related to its identified source markets. Some of the key international
fairs the state has participated in the year 2003 were-International Tourism’s Bourse (ITB)
2003, Berlin, Arabian Travel Mart (ATM), 2003, Dubai, PATA Travel Mart 2003, Singapore,
World Travel Mart (WTM) 2003, London etc.

7. Overseas Partnership-Kerala is the first state in India, and indeed the world, to become
the ‘partner state’ to the World Travel and Tourism Council which is a global forum for
travel and tourism

8. Collaboration With PATA and Germany for international Branding by participating in

meets and forums and using the Bilateral Agreement Germany has agreed to development of
tourism market in Kerala example development of backwaters, Solid waste management,
Human Resources Development in Kerala are some of the initiatives

49
9. Certification of Places-Certifications of tourist resources like ‘Gold Star’ and ‘Silver Star’
Certifications for Houseboats, ‘Green Palm’ Certifications for Eco-friendly Measures, ‘Green
Leaf’ Certifications for Ayurveda Centres, ‘STEP’ Certification for Safe-To-Eat Places
certification creates benchmarks for tourist spots and gives tourists an Idea about tourism
credibility in terms of food, safety and services.

Way Ahead – The Tourism Department of Kerala projects a growth rate of 7 % per annum in
foreign tourist arrivals and 9 % annual growth in domestic tourist arrivals as per Tata
Economic Consultancy Services and 12% as per 12th Fiver Plan. The following steps can help
ensure prosperity in the Local and MICE tourism

Encourage Upcoming Places – Through the tourism data we can analyze that the places
like Guruvayoor, Kumarkom, Munnar, Wayanad, and Muzhupalingad are the upcoming
tourist spots. These spots can be clustered with other less tourist areas and a theme based
concept can be introduced to promote the same. The advantages of this theme would be more
employment in the nearby areas, access to tourist through its transport, and customized tour
packages will give a different tourist experience altogether.

Encouraging ‘Free Market’ concept – This will boost trade within the state. Kerala is
known for tea plantations, cashews, sea foods, and spices. These are generally manufactured
by small and medium farmers. The state can give temporary license to market their products
in other part of the states for say 15 days for 3 months. The infrastructure cost can be borne
by the government and it can earn revenue through license and taxes. These ‘temporary’
markets will boost trade in non core areas, better bargaining power to the domestic and
foreign tourist, and more tourist attraction to the places.

Focus on MICE tourism – Exports products like Fishes, Cashew to country like USA, UAE,
Netherlands, Russia, Germany and Asian countries plays an important role in developing
MICE tourism. These exports are more through the ports, so for MICE tourism, the exporting
country nationals can be pitched for Food tourism, Medical Tourism and Backwater tourism.

This tourism would set benchmarks for setting up Industrial centres in the states which will
give additional boost to development of states. So the Meetings and convention centres would
have water sports and backwater resort facility with the flavour of local cuisines. The state
could identify the exports towards countries like China, Russia, Malaysia and
Scandinavian Countries and can give tax holidays for countries that increase the exports
over the years.

50
Advantage of being Tech Savvy – The website can be made interactive and the tourism state
minister speech can be uploaded laying its vision and seriousness towards its tourist and a
mobile app wherein online booking, Location information, and budget calculator can help
prospective tourist.

Customer demands
Thousands of foreigners are coming to Kerala for the local concepts of rejuvenation and
restoration that is embodied in the ayurveda system of treatment. many hotels provide
different programmes based on the customer demands. The government provides guides and
escorts to various tourists spots, this is provided along with the tourism packages. Tourism
department takes feedbacks from the tourists, analyses their suggestions and takes special
care to include these suggestions along with the packages.

STRUCTURE
Tourism can be divided into eight sectors - accommodation, food and beverage, adventure
tourism and recreation, transportation attractions, travel trade, events and conferences and
tourism.

51
SYSTEMS
In tourism department the various systems are:-
Marketing, finance, human resource, operations and information’s.

52
Among these marketing system plays an important role in running the organisations
Marketing Information Systems are an essential means for effective tourism marketing and
improving quality of services of tourism organizations Tourism organizations that have
online presence having marketing information applications or tourism marketing services in
place to support online marketing and transactions. Rise of e-commerce has enhanced the
opportunities of domestic tourist destinations and services to increase their audience in a cost-
effective way. Targeting ads towards people who type in search terms related to tourism in
your area, you can focus messages on convincing interested parties to choose you over other
possible destinations.

SHARED VALUES

The Responsible Tourism movement in Kerala has focussed on local economic development,
on the creation of employment and enterprise opportunities – particularly in rural
communities where many toil in agriculture and rural crafts. Tourism can make a difference
to their lives and it could still do more. In Kerala there are more than 160 self-help and
producer groups, with 1,800 members, many selling to tourism businesses. Likewise, many
small enterprises and sole traders also sell to tourism businesses and tourists. This is shared
value: value that would not have existed without partnership between the formal industry and
local communities. The women secure additional income, while losing nothing of their
traditional livelihood, the hotel has a richer offer for its guests, one which is commissionable
and which contributes, as part of broader programme, to extending length of stay.

STYLE

Choosing the right style, at the right time in the right situation is a key element of leader
effectiveness.

Trust and confidence in top leadership was the single most reliable predictor of employee
satisfaction in the organization .Effective communication by leadership in three critical areas
was the key to winning organizational trust and confidence:–
 Helping employees understand the company’s overall business strategy.
 Helping employees understand how they contribute to achieving key business
objectives
 Sharing information with employees on both how the company is doing and how an
employee’s own division is doing.

53
Department follows eleven principles of leadership
 Know yourself and seek self-improvement
 Be technically proficient
 Seek responsibility
 Take responsibility for your actions
 Make sound and timely decisions–
 Set the example
 Know your people and look out for their well-being
 Keep your workers informed
 Develop a sense of responsibility in your workers.
 Ensure that tasks are understood, supervised, and accomplished
 Train as a team

STAFF

Well acquainted staffs assure the best service with real professional touch. All staffs have job
descriptions, a carrier and training history life, and a record of employee reviews. All staffs
will undergoes full product training and will spend at least four weeks a year onsite at key
travel destination

In an effort to cater to the increasing demands the functioning of tourist information offices in
the districts is made more efficient.

SKILLS

Through “let’s learn”, Kerala tourism has kicked of a first-of –its kind human resource
initiative for upgrading skills and knowledge of personnel in the tourism and hospitality
sectors. The tourism industries success depends mainly on the attitude behaviour and skills of
those working in the public and private tourism sector.

Management Skills of Kerala Tourism

 Political: used to build a power base and establish connections.

 Conceptual: used to analyze complex situation
 Interpersonal: used to communicate, motivate, mentor and delegate.
 Diagnostic: the ability to visualise most appropriate response to a situation
 Technical

54
 Decision making

55
 CHAPTER 3

POSITIONING OF THE INTERN AND HIS/HER ROLE

56
3.1 STRUCTURE OF THE OFFICE TO WHICH THE INTERN IS ATTACHED

Marketing department

Marketing team Operations team Facilitation team

Fig. 3.1 Structure of the office

3.2 DETAILS ABOUT THE ROLE OF THE INTERN AND VARIOUS DUTIES AND
RESPONSIBILITIES ASSIGNED TO THE INTERN WITHIN THE ORGANISATION

Duties and Responsibilities assigned to the intern

 To study about the organisation and its functions

 To visit various Department of Tourism Centres
 T observe the various marketing activities of the department
 To interact with the customers
 Complete the allotted work on time

Department allotted to the intern

The department allocated is marketing

Brief detailing about the whole internship

My internship at department of tourism, Trivandrum was started on 2nd may. Kerala tourism
department is a major government ministry under Kerala government. It is prime regulatory
agency that over views and supervises entire tourism activities of the state.
In the first day a brief introduction class was taken to get familiarised with the department
and its services. From the next day I was allotted with different jobs in the marketing
department. I was asked to visit various information centres of tourism and to do industry

57
analysis.
For the next few weeks job was allotted at the information desk to interact with the guest and
provide them details about various tourism packages.
In the last week SWOT analysis and company profile was prepared under the guidance of
industry guide.

58
 CHAPTER 4

DETAILS ABOUT THE INTERNSHIP

59
4.1 WEEKLY REPORTS

Weekly Activity / Progress Report: - At Directorate of Tourism, Trivandrum.

Date from: - 02-05-2017 Date to: - 05-05-2017

Day & Date Time Tasks Assigned Tasks Completed Observations

02-05-2017 10:00 am An introduction Nil Organizational

class was taken structure of the
Tuesday To department was
observed
05:00 pm

60
 03-05-2017 10:00 am Assigned task at Interacted with Guest Relation
information desk guest over phone
Wednesday To

05:00 pm
Day04-05-2017
& Date 10:00
Timeam Assigned task at
Tasks Assigned Data entry
Tasks of
Completed Finance allotted
Observations
Marketing accounts on marketing
Thursday To department activities was
analysed
08-05-2017 10:00 ampm
05:00 Assigned task at Marketing account Funds allotted to
05-05-2017 10:00 am Marketing
Assigned task at details
Data entry of wasFinance
various marketing
allotted
Monday To department
Marketing prepared
accountsin excel onactivities
marketinganalysed
Friday To department activities was
05:00 pm analysed
05:00 pm
09-05-2017 10:00 am Assigned task t Accounts Marketing
enter marketing prepared in excel Mechanism
Tuesday To mechanism activities studied
accounts
05:00 pm

Remarks of Industry Guide:

Weekly Activity / Progress Report: - At Directorate of Tourism, Trivandrum.

Date from: - 08-05-2017 Date to: - 12-05-2017

61
10-05-2017 10:00 am Prepare excel Accounts prepared Funds allotted to
sheet of marketing marketing
Wednesday To account 2013-14 activities during
the year analysed
05:00 pm
11-05-2017 10:00 am Account CPPH accounts CPPH funds
preparation of prepared analysed
Thursday To contribution and
promotion of
05:00 pm heritage projects
12-05-2017 10:00 am Prepare excel Accounts prepared Funds allotted to
sheet of marketing marketing
Friday To account 2012-13 activities during
the year analysed
05:00 pm

Remarks of Industry Guide:

62
Weekly Activity / Progress Report: - At Directorate of Tourism, Trivandrum.

Date from: - 15-05-2017 Date to: - 19-05-2017

Day & Date Time Tasks Assigned Tasks Completed Observations

15-05-2017 10:00 am To study statistics Analysed statistics Trend Analysis

of Kerala Tourism upto 2015
Monday To

05:00 pm

16-05-2017 10:00 am Assigned task Interacted with Guest Relation

assigned at guests over phone
Tuesday To information desk

05:00 pm

17-05-2017 10:00 am To visit Museum Visited Museum of Analysed major

of History and History and promotional
Wednesday To Heritage Heritage activities

05:00 pm
18-05-2017 10:00 am To visit Napier Visited Art and Working and
Museum Natural History maintenance
Thursday To Museum studied

05:00 pm
19-05-2017 10:00 am To visit Sree Art works of Interacted with
Chitra Art Gallery different artists foreigners
Friday To viewed

05:00 pm

Remarks of Industry Guide:

63
Weekly Activity / Progress Report: - At Directorate of Tourism, Trivandrum.

Date from: - 22-05-2017 Date to: - 26-05-2017

Day & Date Time Tasks Assigned Tasks Completed Observations

22-05-2017 10:00 am To visit Tourist Visited TIC Introduction class

Information Centre Kovalam was taken by TIO
Monday To Kovalam Kovalam

05:00 pm

23-05-2017 10:00 am Assigned task Interacted with Guest Relation

assigned at foreign guests
Tuesday To information desk
Kovalam
05:00 pm

24-05-2017 10:00 am To visit natural Visited Natural Working and

history Museum History Museum maintenance
Wednesday To Trivandrum Trivandrum analysed

05:00 pm
25-05-2017 10:00 am Assigned task Interacted with Guest Relation
assigned at guests over phone
Thursday To information desk
Trivandrum
05:00 pm
26-05-2017

Friday LEAVE

Remarks of Industry Guide:

64
Weekly Activity / Progress Report: - At Directorate of Tourism, Trivandrum.
Date from: - 29-05-2017 Date to: - 02-06-2017

Day & Date Time Tasks Assigned Tasks Completed Observations

29-05-2017 10:00 am Assigned task Interacted with Guest Relation

assigned at guests over phone
Monday To information desk

05:00 pm

30-05-2017 10:00 am Assigned task Interacted with Guest Relation

assigned at guests over phone
Tuesday To information desk,
Kovalam
05:00 pm

31-05-2017 10:00 am To study Kerala at Analysed Progress of Kerala

work emerging tourist Tourism
Wednesday To attractions

05:00 pm
01-06-2017 10:00 am To study Kerala at Analysed Progress of Kerala
work emerging tourist Tourism
Thursday To attractions

05:00 pm
02-06-2017 10:00 am A study on Eco- Study for Eco-Tourism
Tourism improving developments
Friday To facilities for Eco-
Tourism
05:00 pm

Remarks of Industry Guide:

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Weekly Activity / Progress Report: - At Directorate of Tourism, Trivandrum.
Date from: - 05-06-2017 Date to: - 09-06-2017

Day & Date Time Tasks Assigned Tasks Completed Observations

05-06-2017 10:00 am Assigned task Interacted with Guest Relation

assigned at guests over phone
Monday To information desk

05:00 pm

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06-06-2017 10:00 am Analysis on Organizational Organizational
Organizational analysed Hierarchy
Tuesday To Structure

05:00 pm

07-06-2017 10:00 am Assigned task Interacted with Guest Relation

assigned at guests over phone
Wednesday To information desk

05:00 pm
08-06-2017

Thursday HARTHAL

09-06-2017 10:00 am To sort files Sorted files as per Sorting

the specific data
Friday To

05:00 pm

Remarks of Industry Guide:

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 Weekly Activity / Progress Report: - At Directorate of Tourism, Trivandrum.
Date from: - 12-06-2017 Date to: - 16-06-2017

Day & Date Time Tasks Assigned Tasks Completed Observations

68
12-06-2017 10:00 am To study Analysed Progress of Kerala
traditional Traditional Tourism
Monday To practices in Kerala practises in Kerala

05:00 pm
Day & Date Time Tasks Assigned Tasks Completed Observations
13-06-2017 10:00 am Assigned task at Interacted with Guest Relation
information desk guests over phone
Tuesday To
19-06-2017 10:00 am Assigned task at Interacted with Guest Relation
Information Desk guest over phone
05:00 pm
Monday To
14-06-2017 10:00 ampm
05:00 Assigned task at Interacted with Guest Relation
Kovalam guests
Wednesday To

05:00 pm
15-06-2017 10:00 am Assigned task at Interacted with Guest Relation
Kovalam guests
Thursday To

05:00 pm
16-06-2017 10:00 am Assigned task at Interacted with Guest Relation
information desk guests over phone
Friday To

05:00 pm

Remarks of Industry Guide:

Weekly Activity / Progress Report: - At Directorate of Tourism, Trivandrum.

Date from: - 19-06-2017 Date to: - 23-06-2017

69
20-06-2017 10:00 am Assigned task to Strengths and SWOT Analysis
do SWOT Weakness of the
Tuesday To Analysis of the organisation
organisation analysed
05:00 pm

21-06-2017 10:00 am Assigned task to Opportunities and SWOT Analysis

do SWOT Threats of the
Wednesday To Analysis of the organisation
organisation analysed
05:00 pm
22-06-2017 10:00 am Assigned task to Prepared 7s 7s Framework
do 7s Framework Framework of the
Thursday To Organisation

05:00 pm
23-06-2017 10:00 am Report Preparation Report Preparation Report Preparation

Friday To

05:00 pm

Remarks of Industry Guide:

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Weekly Activity / Progress Report: - At Directorate of Tourism, Trivandrum.
Date from: - 26-06-2017 Date to: - 28-06-2017

Day & Date Time Tasks Assigned Tasks Completed Observations

26-06-2017 10:00 am Assigned task at Interacted with Guest Relation

Information Desk guest over phone
Monday To

05:00 pm

27-06-2017 10:00 am Report Preparation Report Report Preparation

Preparation
Tuesday To

05:00 pm

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28-06-2017 10:00 am To sort files Sorted files as per Sorting
the specific data
Wednesday To

05:00 pm

Remarks of Industry Guide:

4.2 CONTRIBUTION OF THE INTERN TO THE ORGANISATION

1. Task accomplishments made

 Completed all tasks neatly and accurately
 Interacted with the guest and provided them various information.
 Conducted a preliminary analysis on various marketing activities
 Financial statements of marketing activities conducted by the department from
2011 to 2016 was prepared.
 Visited major tourism information centres and their working was analysed
 Data sorting was done on excel sheets
2. New ideas and concepts
Kerala tourism is ranked as one of the fastest growing tourism industry in the country.
New ideas that can be put forward to the Tourism Department:
 The Promotional activities that must be designed to enhance the awareness
level of destinations in Northern parts of Kerala such as Kappad, Bekal and
Wayanad. Tour operators may design package tours which include tourism
products of these destinations. This will help to divert tourist traffic to lesser-

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 known destinations. Kozhikode can be served as an entry point for the
tourists.
 Efforts should be made to extend the average duration of stay of tourists to
one week which will result in increased revenue generation, product
exploitation, destination development and employment generation.
 It is essential to build awareness among Keralites about the natural and
cultural riches of the land and the importance of preserving them for a better
future. Protection and conservation of the resources is essential for the
survival and suitable growth of tourism industry in the long term.
 For better brand promotion, Government has to prepare sufficient and
innovative promotional materials and it has to be supplied to tourists, tour
operators and accommodation providers
 Opportunities through internet have to be utilized more in the promotion of
tourism marketing. Conscious efforts have to be taken by the government and
private players in creating attractive and innovative web sites and linking it
with leading portals.

4.3 LEARNING FROM INTERNSHIP

 Understood the working of a government department. Government office

workers fill roles in the front end of a government agency, working with
clients or citizens , or the back office , competing data processing or the other
support work. All the persons working in the organisation maintains proper
decorum in the office all the time. The working hour is from 10.00 AM to 5.00
PM , however this time may vary depending upon the work assigned to the
employees.
 Various promotional activities of Kerala tourism. The Kerala tourism is
mulling in stepping up its promotional activities in Gulf countries to boost
tourist inflow from the region. The state government has rolled out two new
initiatives – seaplane project and project Muziris in order to enhance the travel
experience of the traveller. Its promotional activities include advertising,
public relations , publicity , sales promotions and personal selling. Tour
brochures are available at its official website and via travel agents offices and
portals.

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 Organisational culture and their environment. The Responsible Tourism
movement in Kerala has focussed on local economic development, on the
creation of employment and enterprise opportunities – particularly in rural
communities where many toil in agriculture and rural crafts. Tourism can
make a difference to their lives and it could still do more. In Kerala there are
more than 160 self-help and producer groups, with 1,800 members, many
selling to tourism businesses. Likewise, many small enterprises and sole
traders also sell to tourism businesses and tourists. This is shared value: value
that would not have existed without partnership between the formal industry
and local communities. The women secure additional income, while losing
nothing of their traditional livelihood, the hotel has a richer offer for its guests,
one which is commissionable and which contributes, as part of broader
programme, to extending length of stay.
 Financial allotments for various projects. The tourism department has a
handful of projects for private sector participation across the state. They also
look for big-ticket foreign investments in innovative projects. They also have a
cabinet sub-committee headed by Chief Minister for speedy approval of
projects. The department is now drafting an integrated tourism master plan to
give shape to new plans and create an investor-friendly environment.
 Various tourism destinations of Kerala. Kerala, a state situated on the
tropical Malabar Coast of south-western India, is one of the most popular
tourist destinations in the country. Named as one of the ten paradises of the
world by National Geographic Traveller. Kerala is an established destination
for both domestic as well as foreign tourists. Kerala is well known for its
beaches, backwaters in Alappuzha and Kollam, mountain ranges and wildlife
sanctuaries. The state's tourism agenda promotes ecologically sustained
tourism, which focuses on the local culture, wilderness adventures,
volunteering and personal growth of the local population. Efforts are taken to
minimise the adverse effects of traditional tourism on the natural environment,
and enhance the cultural integrity of local people.
 The internship helped to work as a team under the guidance of a senior staff.
Coordination of work in an organisation was experienced.
 Employing the learning in MBA to the actual work experience.

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CHAPTER 5

CONCLUSION

75
CONCLUSION
Kerala tourism department is a major government ministry under Kerala government. It is
prime regulatory agency that over views and supervises entire tourism activities of the state.
Kerala tourism is ranked as one of the fastest growing tourism industry in the country.
There are many beautiful temples, churches and mosques in Kerala which can be visited by
all religions. Now Pilgrimage Tourism is gaining importance. If the local culture undergoes a
serious, traumatic change, because of tourism, the existence of the community is under threat.
Thus Responsible Tourism is to be followed. Considering the importance of our
tradition/culture, The Kerala State Higher Education Council has directed five Universities in
Kerala to develop programmes in Kalarippayattu and Ayurveda to attract foreign students as
part of its India study Semester Initiative.
This internship has been an excellent and rewarding experience for me. I have been able to
meet and network with so many people that I am sure will able to help me with opportunities
in the future. One main thing I have learned from this internship is the communication skills
as well as marketing skills. The internship helped to work under a team under the guidance of
a senior staff. Shared valued of the organization was studies. With the help of this Internship I
was able to gain knowledge about various tourism destination of Kerala and funds are allotted
for the maintenance of these tourist spots The study about the organization its various
departments and their functioning contributed to bridge the gap between the theories and
practical knowledge.
The internship experience that I received during my internship will always be valuable guide
for me in the future.

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BIBLIOGRAPHY

 Tourism Development and Involvement of local people at Destination Unpublished

thesis IMK, University of Kerala
 Travelers’ Perception on travel service providers in an Electronic Environment,
Indian Journal of Marketing Vol. XXXVIII,
 Managerial and Commercial Aspects of Eco-tourism-A Comparative Study of Tamil
Nadu and Kerala, University of Kerala.
 A Study on Tourism Marketing in Kerala, Unpublished thesis, University of Kerala

REFERENCES

 www.keralatourism.org
 www.keralatourism.gov.in
 www.ktdc.com
 www.ekeralatourism.net

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