Gujarat in India well known as business hub. Tourism in these state based on wild life, natural beauty, unique flora and fauna, hold shrines, vibrant and colorful fairs and festivals. Tourism in its broadest generic sense can do more to develop understanding among the people, provide jobs, create foreign exchange earning, raise living standard than any other economic force. The natural beauty of the state attract tourist from all over India and also from abroad. The focus of this paper is on the economic benefits accruing to the state by way of tourist’s arrivals to Gujarat. This study will evaluate that development of heavy industries is not easy. And the development of tourism industry can be given grater importance as long run economic growth.
“Avo Padharo” words of welcome in the language of Gujarat because it is here that these words ring truly and the guest is “God” and the people of Gujarat are gregariously friendly inviting and will entice you to come again and again. Sky is the limit for marketing services. During the past decade, services have increasingly assumed an important role in the Indian economy. Tourism is a field of human activity known to mankind from time immemorial. The world’s oldest industry is also one of the largest and fastest growing industries today. For the first time, the vast potential of tourism as a foreign exchange earner and generator of employment opportunity was recognized. Several policy initiatives were taken to develop the tourism sector. In the development of state tourism, the public sector has made a significant contribution of late, the industry is equipped with a reasonable infrastructural base and is poised for a self tourism. Tourism is required to be designed on the bases of low-cost economy, higher level of productivity, efficiency in the use of infrastructure and sophisticated tourist facilities.
ROLE OF TOURISM IN ECONOMIC DEVELOPMENT
Tourism is today the world’s largest industry, with the travel and tourism industry and travel and tourism economy contributing 42% and 10.7% of global GDP respectively. A large number of developing countries today are aware of the economic potential benefit of tourism. The economic value of tourism to an economy is measured by its contribution to the national income. The foreign exchange earnings, its contribution to the state revenues and the creation of employment. No wonder that the tourism has been described as “one of the most remarkable economic and social phenomena of the last century. Similarly the industry significantly contributes GDP in our country and also the gross state domestic product (GSDP) for its state which are the most important industries of economic growth. From the above stated research problem, the rest of organized as follows section and review of literature in brief, section 3 discuss the objective data and methodology. Section 4 makes the analysis of findings and section 5 concludes the paper.
The status of Tourism Research in Economics and Social Development in NER as well as India is quite-low. There exist so many literatures about the impact of tourism sector expansion on the host economy, but the literature on whether it actually produces any significant economic growth is limited and that too for emerging countries like India, the empirical researches and evidences are most non-existent. Now we can summarize the most important studies in the following ways:
Hunt and Layne (1991) acknowledge the problems of defining travel and tourism. They say that travel was the most accepted term until 1987 and that since that time tourism is the accepted term used to “singularly describe the activity of people taking trips away from home and the industry which has developed in response to this activity”.
Dritsakis (2004) shows that tourism has a long run economic growth Oh (2005) Korean tourism concluded that the increase is tourism income influences the economic growth. Kim et al (2007) examines the role of tourism is the short run economic development of Pakistan through error correction model and the causal relationship is strong positive relationship between among tourism, receipts and economic expansion which means the economic expansion is necessary for tourism development is Pakistan.
Wiekre masinghe and Ihatanayake (2006) investigate the issue that tourism industry leads to economic development for a developing country –Sri Lanka; using annual data from 1960 to 2000 the result of the study suggests that there is a significant causal relationship from tourism receipts to the GDP of Sri Lanka.
OBJECTIVES OF THE STUDY To access the role of tourism in economic growth through variables of tourist inflows in the state.
To examine tourism as a growing industry in terms of earnings revenue foreign exchange and providing employment opportunity.
To identify the area of improvement needed for tourism.
The entire study is based on secondary sources of data. The present research paper is mainly based on annual reports and tourist information given by Tourism Corporation of Gujarat limited.
TRAVEL AND TOURISM SECTOR IN GUJARAT
Gujarat as a destination has immense potential which is set to be topped. Gujarat has variety and novelty of attractions which include ancient Buddhist, Jain, Hindu and Muslim monuments. A rich and varied animal and bird life, wild ass – distinctive spices. Gir, the only adobe of lions in Asia and unique handicrafts.
It is estimated that the tourism contribution to NSDP is around 2.3% which works out to around 300 crores. The contribution in the state is less than the contribution of tourism to the national GDP which is around 5.6%. it is estimated that around 6.5-7 lakhs persons are employed directly in tourism in the state of Gujarat. Tourism has multiplying factor in the economy and the employment. The multiplier effect for tourism is around 2.5.