IMPACT OF TOURISM POLICY ON ECONOMIC DEVELOPMENT SPECIAL REFERENCE OF MADHYA PRADESH
Dr. Kalam Singh Dudve Assistant Professor (HOD-Commerce), Govt. Nehru PG College Deori, District Sagar M. P.
Abstract - Tourism plays a significant role in the economic growth of a country.
Considering the cultural, natural, and historical attractions of Iran, it is necessary to take effective steps to attract foreign tourists in order to increase the economic growth of Country. This study examines the impact of tourism Policy on income and employment generation on economic growth within the framework of Madhya Pradesh to estimate the long-term and short-run relationship between employment generation and tourism, We do descriptive Analysis. Our empirical findings indicate that the impact of tourism on employment generation growth is far higher in Madhya Pradesh in the short and long term, reflecting the potential of tourism in the country, which can have a direct and indirect effect on economic growth. And the policy makers should strive to develop tourism in the Madhya Pradesh.
Keywords: Tourism Policy, Income and Employment Generation and Economic Development.
1. INTRODUCTION
Tourism today is one of the very fast growing industries throughout the world.
Tourism allows us to escape from our normal, humdrum lives. Mark Twain has aptly said, “Even heaven can be boring after a while”. The human animal needs change to attain optimum levels of achievements in all enterprises. Tourism provides that change. Leisure and tourism came into vogue as dimensions of life in the 19th and 20th century. It is one of the growth sectors of the global economy.
Nature- based tourism encompasses a broad spectrum of activities and enterprises. We live in a world of constant change; a world that continually moves and progresses to higher levels of comfort and wellbeing. Tourism seems to be the most sought- after economic business today and its social activities of attracting and serving visitors earn new or basic income for fostering community as a whole.
Tourism is often viewed as a new wave of economic opportunity and acknowledged as a global economic drive.
It is largely responsible for the transfer of wealth from one nation to another and re- distribution of income, leading to a gross increase in wealth-income to the lower community of the tourism region. The degree of benefit from tourism largely depends upon the level of self-sufficiency of the economy of the hosting region. The infusion of new wealth through overseas
visitors is equivalent to the export earnings from any other international trade.
It begins with a thorough understanding about tourism and the benefits it gives to the global economy.
Thereafter it explains about the prospects of tourism in the rural areas. And, the growth and development, it can bring to the rural and peripheral areas by creating new opportunities. And, thus bringing economic, socio-cultural and ecological benefits to the countryside areas which are away from the urban areas. Further, the chapter explains about the rural tourism in global context, Tourism is one of the leading and top growing industries in the world. It contributed US$7.2 trillion to world GDP (in 2015) i.e. 9.8% of the global GDP (WTTC, 2016). And, provided 284 million jobs or 1 in 11 jobs in the world, out of which 108 million were direct in India, Tourism too, is a roaring industry. In 2015, it contributed 6.23%
(₹8.31 lakh crore) to the national GDP and provides 8.7% (37.315 million jobs) of the total employment in India (WTTC). It contributes to Forex earnings, generates revenue and brings benefits to the country. The Foreign Tourist Arrivals (FTAs) in India were 8.02 million with estimated foreign exchange earnings of US$ 21.06 billion (during 2015). Also, the outbound traffic from India was 18.3
million (in 2014) and possibly it touched a 20.0 million mark (in 2015).
Wildlife tourism in the form of Tiger Tourism dominates in India as the country is home to more than half of the world‟s tiger population. The present study concerns the assessment of tourism economy and employment generation in one of the prominent tiger reserves in India, i.e. the Satpura Tiger Reserve of the Madhya Pradesh state. Based on the primary and secondary data, it has been estimated that the expenditure incurred by tourists in the Satpura Tiger Reserve between 2017 and 2018 amounted to INR 1,110 million (equivalent to USD 15,416,666; 1 USD = 72 INR). At the same time, around 127,187 man-days were generated for the nearby local community from the tourism establishment.
2. REVIEW OF LITERATURE
Williams. E and Zelinsky. W (1970) in their work, “Some patterns of International Tourist flows” reveal that the international Tourist flows do not occur at a random manner, but are patterned, exhibiting considerable stability from year to year. They suggest that once the tourist pattern has been established, it has characteristics that will consume time. They suggest that once tourists visit an area, they feed that information to a tourist who in his turn visits the area.
Bhatia (1971) considers the economic benefits, for example, earning foreign exchange as the prime motive of various nations to promote tourism.
Tourism is an important source for maximising foreign exchange for developing as well as developed countries of the world. He says: “Income from foreign exchange earnings adds to the national income and as an invisible export, may offset a loss on visible trading account and be of critical importance in the overall financial reckoning.
Greenwood D.J. (1972) in his study, “Tourism as an Agent of Changes”
reveals that tourism proceeds through three stages. Stage I is ' discovery':
Tourism has been recently introduced and the tourists are welcome. Stage II is local response and initiative: Tourists adapts to the host community to a degree
that the host community accepts the innovations necessitated by the tourists.
Medik S (1972) has observed in his work that the hotel industry should be given adequate importance in any purposeful strategy to develop tourism operations. He has stated the scientific methods and applications that could be introduced by the hospitality sector. The stress laid out by him on the several quantitative and qualitative aspects of the hotel industry would serve as a useful guide for any hotel owner with an interest in sophistication and modernization 3. BACKGROUND OF THE RESEARCH When, the tourism started it was seen as an eternal developmental means for the regions bestowed with natural and cultural possessions, but in the present days it is seen as a alternative option for the rural regions, which lacks significant wealth-producing resources (Chow, 1980;
Fotiadis, 2009; Katoch, 2014). The present traveller of tourism wants to experience good quality of life and escape the busy routine resulted due to modernization, globalization and industrialization (Page & Connell, 2006).
Over the years, the man has become very conscious w.r.t environment and seeks peace of soul, mind and body. And, this pursuit of man has resulted in development of alternative forms of tourism such as rural tourism, ecotourism, ecotourism and myriad other forms of tourism (Katoch, 2014).
4. IMPORTANCE OF TOURISM
Tourism is often viewed as a new wave of economic opportunity. It is largely responsible for the transfer of wealth from one country to another and redistribution of income, leading to a gross increase in wealth-income to the lower community of the tourism region. The degree of benefit from tourism largely depends upon the level of self-sufficiency of the economy of the hosting region. 12 Tourism seems to be the most income generating industry after economic business today and its social activities of attracting and serving visitors earn new or „basic‟ income for the fostering of community as a whole. The infusion of new wealth through overseas visitors is equivalent to the export earnings from any other international
trade. Tourism today is one of the fastest growing industries throughout the world.
Though the Third World shares a small percent of this growth, tourism is an important economic force in almost all developing countries. Realizing the potential benefit of tourism, the developing countries have taken measures to improve their infrastructure and in the way of exploiting this new avenue for economic development.
Tourism can earn not only foreign exchange but also a lot of Government revenue by way of taxes. It generates mostly indirect taxes for the Government.
5. OBJECTIVES
The study has been conducted with the following objectives.
1. To review the development of tourism and its impact on the Economic Development of Madhya Pradesh District.
2. To do Cooperative Study of Income and Employment generation of Madhya Pradesh on the quantum of tourist flows in the district.
3. To identify major economic development variables related to tourism and to measure the level of variations among the owners and employees of tourism business.
4. To study the level of variations of the major development variables in different tourism developed area.
6. HYPOTHESIS
The hypotheses evolved for the study are the following
1. There is no impact on the Economic Development of Madhya Pradesh District due to the development of tourism.
2. There is impact on the Economic Development of Madhya Pradesh due to the development of tourism.
7 RESEARCH METHODOLOGY Sample Design
Secondary data have been used for this research. Secondary Collecting secondary data from various sources i.e. books, journals, magazines, newspapers,
Thesis-Reports and Internet.
Observation & Results Sources of data
Secondary data has been collected from various National and International Journals, magazines, proceedings of seminars, conferences, internet, publications of tourism departments, government of India publications and theses. Data analysis and the statistical tools applied Analysis and interpretation are central steps in the research process.
The aim of analysis is to org anise, classify and summarize the collected data so that they can be better comprehended and interpreted to give answers to the questions that triggered the research.
Interpretation is the search for the broader meaning of findings. Analysis cannot be fulfilled without interpretation;
and interpretation cannot proceed without analysis.
8. RATIONALE OF THE STUDY
The tourism industry was, and still is considered as an economic cure for countries who have limited primary resources with only a small industrial base. This is especially so in the context of developing countries and that means big business. To them, the tourism industry is a vital development agent and an ideal economic alternative for them to develop their countries. It is widely believed that the benefits that brought about from the vibrant tourism activities can act as a catalyst to the economic development of the country. Many countries have adopted tourism as a development tool. Tourism could contribute to economic growth by generation of income, expansion of employment opportunities, and mobilizations of foreign exchange, social integration, cultural transformation and development of commerce among nations.
Growth of tourism brings benefits to an economy in a number of ways; i.e., over the years, tourism particularly Eco- tourism, has helped in the promotion of ethical values common to humanity, enhancing the societal stand for natural heritage composed of eco systems and bio-diversity. Tourism is of major economic and social significant tool.
9. FINDINGS
The sole purpose of the study is to discover the contribution of tourism sector to the income and employment
development of the district. By examining the key factors such as employment growth, income generation, infrastructure facilities, local industry traits, standard of living and overall regional development, the researcher can achieve her goal of the dissertation
Economic Development Assessment There are so many factors that evaluate the economic development of any region.
This shows the part played by tourism in the development of both district. The findings are elaborated below.
1. Employment The tourism department has opened new avenues for employment in Madhya Pradesh district. We find that that tourism contribution for employment opportunities are moderate.
2. Generation of Income to the Local People The survey makes known that the generation of income through tourism to the local people around the tourist centre are moderate
3. Local Industry Development of the local industry gives employment opportunities to the local people.
The survey reveals that tourism‟s influence on the local development very high.
4. Standard of Living Standard of living is one of the important factors to evaluate the economic development.
10. LIMITATIONS
1. The study is restricted to Madhya Pradesh and District only, though the respondents represented all geographical regions of India.
2. There is a lack of systematic documentation of information relating to tourism and the general infrastructural growth.
3. Due to cost and time constraints a year round participation observation could not be made.
11. CONCLUSION
In the rapidly changing global economic scenario, tourism is considered to be one of the largest and fastest growing industries. The jobs generated by tourism have and is still giving great fruits to those befitted by it. Through this eco- friendly industry, they are not only
enhancing their standard of living but also generating income and raising their standard of living. Tourism has given a big hand in transforming the world- at- large to a global village. It has played a remarkable role in making all nations exchange free trade and culture and share their interest of mutual benefit.
India is one of the chief destinations for the foreign tourists particularly, the state of Madhya Pradesh and Gujrat. Because of its rich cultural heritage among the Indian states. All over the world, the tourists are visiting it due to its pleasant climate, scenic beauty and ecological resources. The statistical figures reveal that the lion shares of total tourist`s arrivals- foreign and domestic are coming to many centres of tourist attraction in the state are Chennai, Kanchipuram, Mahabalipuram, Trichy, Pondicherry, Thanjavur, Madurai, Rameshwaram and Kanyakumari. The rich and vast natural wealth like flora, fauna and water resources are available in plenty. The lakes and beaches of this region must be carefully protected and preserved so that tourism potential of the region may be harnessed and tapped effectively. This in turn helps the residents to have a better living, preserve the nature and also serves as a cradle for mixing of different people irrespective of any divisions. There is a growing realization that tourism is no longer a pursuit of the rich or the poor of the selective groups as billions of people from all walks and shades of the society have already embraced Tourism in India should be developed in such a way that it accommodates for future perspective.
REFERENCES
1. BOOKS Ahuja, S.P and Sharma, S.R., (1990),
“Tourism in India-a Perspective to 1990”, The Institute of Economic and Market Research, New Delhi.
2. Ajith Kumar, M.K., (1998), Psychographic and Demographic profiles of Foreign Tourism Visiting Kerala, Cochin University of Science and Technology, Kochi.
3. Arun Kumar and Premnath Dhar (1998) book, “Indian Tourism: Economic planning and strategies”, Kanishka Publishers &
Distributors, New Delhi.
Journel/Articles
4. Abdul Malek, H.A., Hazbar and Anand., (2009), “Economic and Environmental Impacts of Tourism in Soctora Island”, Southern Economist, Vol.48(4), June 15.
5. Agnes Stephen, (1998) “Tourism in Kanyakumari District”, A journal of the HRC:
Voice of the Hindecon, Vol.II, Hindecon Research Centre, Nagercoil. Ameen,
6. M., (1995), “Tourism Development Expectation and Apprehension” Monthly commentary, Vol. XXXVI (11431).
7. Krishna R.R. and Govindasamy, (1998),
“Marketing in Tourism”, Southern Economics Vol.36. (22) March 15.
