Posted: March 28th, 2021

A Pestel Analysis Of Indian Tourism Tourism Essay

Learning should be like pleasure trips, like excursions , to explore new vistas, and to attain greater heights of knowledge. The basic purpose of learning should be to nurture inquisitiveness in such a manner that clear value additions take place.

What is new and different?

In a competitive world , differentiation is the best strategy, and I have adopted that. The whole term paper is written in steps so that our teacher could understand my term paper easily, as compared to others. I have given the PESTEL and observation of the tourism industry in dustry in the best possible manner. The real observations and examples are given in the term paper.

Benefits from term paper?

This term paper has been written to cater the needs of anyone who wants the first hand experience of various factors influencing the tourism industry.

Various facts and figures are given to understand tourism industry in better way.
















PESTEL ANALYSIS OF INDIAN TOURISM is being done in order to check and determine the effect of various factors that have an impact on the growth and establishment of tourism. The main objective of this term paper is as under:




FUTURE of topic.



The tourism industry in INDIA is substantial and vibrant, and the country is fast becoming a major global destination. India’s travel and tourism industry is one of them most profitable industries in the country, and also credited with contributing a substantial amount of foreign exchange. This is illustrated by the fact that during 2006, four million tourists visited India and spent US $8.9 billion.

Several reasons are cited for the growth and prosperity of India’s travel and tourism industry. Economic growth has added millions annually to the ranks of India’s middle class, a group that is driving domestic tourism growth. Disposable income in India has grown by 10.11% annually from 2001-2006, and much of that is being spent to travel.

Thanks in part to its booming IT and outsourcing industry a growing number of business trips are made by foreigners to India, who will often add a weekend break or longer holiday to their trip. Foreign tourists spend more in India than almost any other country worldwide. Tourist arrivals are projected to increase by over 22% per year through till 2010, with a 33% increase in foreign exchange earnings recorded in 2004.

The Tourism Ministry has also played an important role in the development of the industry, initiating advertising campaigns such as the ‘Incredible India’ campaign, which promoted India’s culture and tourist attractions in a fresh and memorable way. The campaign helped create a colorful image of India in the minds of consumers all over the world, and has directly led to an increase in the interest among tourists. .

Both directly and indirectly, increased tourism in India has created jobs in a variety of related sectors. The numbers tell the story: almost 20 million people are now working in the India’s tourism industry.

A new growth sector is medical tourism. It is currently growing at around 30% per annum. Medical tourist arrivals are expected to reach one million soon.

The tourism industry of India is based on certain core nationalistic ideals and standards which are: Swaagat or welcome, Sahyog or cooperation, Soochanaa or information, Sanrachanaa or infrastructure, Suvidha or facilitation, Safaai or cleanliness and Surakshaa or security.

The following table provides the major tourist attraction in india:

Charminar: Hyderabad, Andhra Pradesh .Kaziranga National Park:Assam. Qutub Minar:Delhi. Mangueshi Temple: Goa. Shimla: Himachal Pradesh.Dal: LakeJammu and Kashmir. Jog FallsShimoga District, Karnataka. Kovalam Beach : Kerala. Amarkantak: Madhya Pradesh . Ajanta: Maharashtra. Puri: Orissa. Golden Temple : Amritsar, Punjab. Jaipur : Rajasthan. Chennai : Tamil Nadu . Badrinath Temple : Uttarakhand, Varanasi , Uttar Pradesh. Victoria Memorial:Kolkata, Bengal


Originally designed as a business environmental scan, the PEST or PESTLE analysis is an analysis of the external macro environment (big picture) in which a business operates. These are often factors which are beyond the control or influence of a business, however are important to be aware of when doing product development, business or strategy planning . PESTEL analysis is the method to characterize or to analyse the various features and traits of any industry like steel industry, power industry, etc,. We are analysing INDIAN TOURISM INDUSTRY by using PESTEL ANALYSIS.PESTEL stands for –











The growth of tourism is at a very quick pace the year 2004-2005 show tourism as major contributors to Indian Economy. There is an excessive growth on the arrival of foreign tourist. Tourist started coming from Middle East, South Africa, USA, Spain, France and Portugal etc…This act as a major contributors in India’s economy. Interesting feature of this growth is that it has come even as global tourism has dropped, due to the September 11 terrorist attacks in the United States, the outbreak of Severe Acute Respiratory Syndrome in East Asia, and the Iraq war………………


According to this article the author tries to say that one of the major contributor to the Indian economy is the tourism industry. One of the political factor of the PESTEL analysis has effected the tourism growth, i.e, the attack of the 11 septembet which was the terrorist activity.

The author says that due to the rise in the income which has made economic conditions of the people better has added in the domestic tourism. The people in summers visit hilly areas like Kashmir and Himachal, which has happened due to rise in income of the people. Aggressive advertising campaign ” Incredible India” by the government has also had contribution in changing India’s image. More than 6500 taxi drivers, restaurant owners and guides trained under the programme.


ROYAL TRAINS IN INDIA: -india-cream-of-indian-tourism_2192928.html

Royal Trains in India offer royal safaris to the most vibrant cities of India. Royal Trains in India offer an opportunity to feel the royalty and elegance of Indian Maharajas of bygone era. The Royal Indian Trains take the tourists through the verdant valleys, barren deserts, royal palaces, imperial forts, famous beaches and so on and on.Royal Trains in India are Indian heritage hotels on board which open their doors in different cities of India each day. These heriatge trains in India provide the tourists with the utmost royal ambiance to make them feel the royalty of Indian Maharajas, Mighty Marathas and Royal Rajputs…………..


According to this article the author tries to say that the one of the beauty of indian tourism is the royal trains of India. There are 5 royal trains in India- Palace on Wheels, Royal Rajasthan on Wheels, Golden Chariot, Maharaja Express and Deccan Odyssey. All of the five Indian Royal Trains provide luxury tours in India. Royal trains represent the values, heritage and the culture of the India. This is one of the social factor if we take this article with respect to the PESTEL analysis, that has impact on Indian tourism. The royal train are adding great value to tourism as many royality seeking tourists are visiting India for this reason.




The report “Indian Tourism Industry Analysis”by RNCOS provides an insight into the Indian tourism market. It evaluates the past, present and future scenario of the Indian tourism market and discusses the key factors which are making India a potential tourism destination. With focuses on different parameters of tourism industry, including inbound tourism, outbound tourism, expenditure by inbound tourists, medical tourism, and hotel industry, the report gives a thorough analysis on the tourism industry in India.

Key Issues & Facts Analyzed

– What is the current state of the tourism industry in India?

– What are the emerging trends in the tourism sector?

– Which are the leading tourism states? 

– What is the future outlook of the tourism industry?

– Which factors are driving the Indian tourism industry?

– What is the scenario of the hotel industry in India?


According to the report, India represents one of the most potential tourism markets in the world. It has expanded rapidly over the past few years and underpinned by the government support, rising income level and various international sports events, the Indian tourism industry will continue to grow at the fastest pace in the coming years. However, the industry may have to cope up with several challenges which will limit its growth.

Key Findings:

– India is expected to see an influx of 10 Million international tourists by 2010, up from just 5 Million in 2007. 

– Andhra Pradesh, Uttar Pradesh, Tamil Nadu, Karnataka and Rajasthan are the leading tourism destinations in India in terms of total tourist arrivals. 

– India has been promoting its healthcare tourism by providing the visitors with private healthcare facilities. It is expected that the total market for medical tourism will reach US$ 2 Billion by 2012, representing a CAGR of 60.69%.

– Personal disposable income during 2002-2007 grew at a CAGR of 14.16%, thereby driving domestic as well as outbound tourism.

– Indian outbound tourist flow is expected to increase at a CAGR of 13.30% over the five-year period spanning from 2008 to 2012.

– India’s share in the global tourism is expected to reach 1.5% by 2010.



The unwell gloomy faces can now smile as India has been declared an ideal destination for medical tours. Even the failing hearts are now treated more successfully at a much lower cost as compared to other parts of the world. In medical field, India has seen much growth and advancements. In the offing, the most complicated by pass surgeries or bone marrow transplants are viable in India.


According to this article the author tries to say that the medical tourism in India is growing at a high pace and which has benefitted the Indian tourism. This is one of the technological factor of the PESTEL analysis, that has been affecting indian tourism. , indian tourism has been growing because of medical tourism . medical and medical related facilities are cheap in india as compared to other countries. As a part of Visit India 2009, the Ministry of Tourism has discussed with all major hospitals of India to offer incentivised deals to the medical tourists. . It is reported that over 1.5 lakhs medical tourists visited India for medical tourism in 2002 alone that brought about $300 million of earnings. Ever since then this figure of influx of medical tourists is increasing year after year by at least 25%. This is providing better oppournity to tourism industry to expand



Gone are days when Indian Tourism Industry had received a set back. A new era of Indian tourism is ushering and things are now falling into their right place. India is too happy to host the exciting Commonwealth Games in 2010. And equally enthusiastic is Delhi where these Games are scheduled. 85 teams of Commonwealth Nations would be seen contesting for 17 disciplines. The 12 day long event will have matches of swimming, wrestling, weightlifting, cycling, marathon, badminton, boxing, shooting, athletics, table tennis and tennis etc. which would be held from 3rd to 14th October 2010


According to this article, author ties to say that India and more importantly Delhi and neighboring states have geared themselves up for the upcoming Commonwealth Games this year. The tourists will be much excited to witness the participants competing in the newly built Khelgaon near Yamuna River Bank which is very close to Swami Narayan Akshardham temple.

Delhi Government and Indian Government had ventured into upgradation of infrastructure of the country. The Aviation, Hospitality as well as Tour and travel industry will be highly benefited from the Games. Keeping this in mind, the transportation services are being improved, metro trains will be soon seen plying passengers, new hotels are mushrooming and the existing ones are been renovated.In addition to this, the monumental heritage of Delhi and surrounding states as Rajasthan, Uttar Pradesh,Himachal Pradesh Madhya Pradesh is specially taken care of.



India, the ancient cultural cradle of the world, fascinates tourists from every corner of the world. Even we Indians are not fully aware of the beauty our country has like our ancient cities, temples, minarets, mosques, gardens, lakes, mountains and a lot more. The most popular tourist destinations in India are Central India, The North Eastern states, Calcutta, Mumbai, New Delhi , Khajuraho, and Goa, where Rajasthan, due to its wide range of cultural and ethnic diversities, is the paradise for the foreign tourists. Indian tourism industry is being utilized as a well-planned tool to facilitate international understanding and enabling building of cultural horizons in a broader way. The Government of India has already initiated to achieve such objectives by offering attractive packages to foreign tourists. It has also organized road shows in major markets of the globe such as the UK, Canada,Australia, Singapore and Malaysia. Within first two years of the introduction of 11th Five Year Plan, the ministry has sanctioned projects worth USD 14.27 million.


This post give us an overview of tourism industry in India, its growth and its contribution in to the country’s economic growth. Tourism is a growing industry in India that accounts for the larger section of foreign earnings for our nation. In recent years, the industry has been severely affected because of the factors terrorism and the troubling situation in Kashmir. The earning through tourism in India was dropped below than USD 1.5 billion and so the tourism traffic, that only accounted for 0.5 percent of the total traffic of the world.

Unlike past few years, 2009 has shown a sign of improvement in foreign tourist inflow. This has led the industry to contribute nearly USD 67.3 billion to gross domestic product this year, which is expected to rise above USD 187.3 billion by 2019. According to Mr Sujit Banerjee, the Tourism Secretary of India, foreign tourist arrival targets is expected to cross six million this year. Also, a 24 per cent increase was observed in foreign exchange earnings (FEE) as compared to previous years. Tourism revenue is expected to grow by 42 percent from 2007 to 2017. After witnessing the positive growth for the first time in 2009, the tourism ministry has planned to develop three niche products, which are wellness tourism, caravan tourism and helipad tourism this year. Also, the Tourism ministry is focusing on the safety and security of the tourists through awareness programs and ad campaigns to entice more visitors. It is constantly making an appeal to Indian public to take care of their guests with the true spirit of ‘Atithi Devo Bhava’. India is moving towards its destination of tourists’ main attraction spot from the phrase ‘Incredible India’. Other services like travel guides, roads,air travel,catering, sanitation, transportation and telecommunication are being operated from professional grounds. This would boost the tourism industry as well as the economy of the country.


The source of data that I have used is SECONDARY SOURCE DATA. Secondary data is elected in form of information which has already been collected by someone. Along with thissome information on crisis management , their features are collected from internet.

For more information regarding research methodology , books from library have been referred.



In India, one can never over-look the political factors which influence each and every industry existing in the country. Like it or not, the political interference has to be present everywhere. Given below are a few of the political factors with respect to the tourism industry:

TERRORISM & SECURITY:Terrorism has an adverse effect on the growth and progress of any country. Terrorism has also bad effect on the tourism industry if India. It is the big political problem to the governing party of the country. With the rise in terrorism the growth of tourism industry in the disturbed parts of country has been at slew rate. The states like Jammu and Kashmir, Assam etc. have a bad tourism output, which intern effects the country’s growth.

The govt. of India is taking steps in regard to tackle the terrorism by providing more security to the tourists who are visiting such terrorist prone areas.

POLITICAL INSTABILITY:Political instability also has effect on tourism industry. Sometimes frequent change of parties at state or central level have an impact on tourism policies and upliftment of tourist sites, as the different parties have different approach to tourist industry.

INFRASTRUCTURE: Infrastructure development depends mainly upon the government or ruling political party. There has been a great infrastructure development from last 20 years in India. The better infrastructure has attracted more and more tourist in India that is why the tourists visited in 2000 were 684 million and 2004 were 760 million.

RELATIONS WITH NEIGHBOURING COUNTRIES: Relationship with the adjoining countries have also a direct relationship with the tourism industry. The political relationship of India with most of adjoining countries is good, but the tourist from near countries are not frequently visiting the country.

LACK OF INTERNATIONAL REPRESENTATION: One of problem that is because of political factor is the lack of international representation of the country. Indian government does not givemuch preference to representation of country internationally because of which tourism rate does not increase by any surplus amount. Countries like Malaysia are representing their country internationally which is giving boost their tourism.


Economic factor also play an important role in the analysis of the tourism industy. Better economic factors help to drive more and more tourist from different countries as well as from domestic market.The Tourism sector of Indian economy is at present experiencing a huge growth. The Tourism sector of Indian economy has become one of the major industrial sectors under the Indian economy. The tourism industry earns foreign exchanges worth Rs. 21,828 crore. Previous year the growth rate of the tourism sector of Indian economy was recorded as 17.3% Some of the economic factors that affect tourism industry are:

GDP (GROSS DOMESTIC PRODUCT): Gross domestic product also plays major part in the upliftment of tourism industry. The GDP of India is growing at constant pace, it was around 9% in July,2008. Better growth of GDP has helped to attract more and more tourist. The tourism will also help to raise the GDP of India as if more and more tourist arrive they will spend more money which inturn raise the GDP of country.

RISE IN NATIONAL INCOME: The Indian tourism is one of the major contributors in increasing national income and improving the economic conditions of India. US $ 4810 were generated in year 2004 alone from tourism industry and it has increased upto 36% from previous year 2003.

BETTER ECONOMIC CONDITIONS: If we talk about the indian tourism industry, the rise in the output is not only because if the foreign tourists but the domestic tourism has also been spreading its wings and adding much more to tourism industry. As the economic condiions has been getting better from last decade and so people are now spending much on tours and travelling.


Social factor are those factors that affect the tourism industry because of the society. Social factors have more or less a significant impact on Indian tourism industry. Some of the social factors that I have analysed, that effect tourism industry of India are:

DEMOGRAPHIC CHANGES:Demographic trends describe the changes in demographics in a population over time. In India majority of the population is of the young people, who are willing to spend and to visit different parts of the country, thus one of this social factor has helped in development of tourism industry majority of population i.e, 50% is under the age of 23 years.

VAST CULTURE: As we all know that the India is country of various religion and has oldest culture. India is often called subcontinent. The Indian culture drives more and more foreigners to visit the country. The is so much vastness in Indian culture and demographics that the tourists find it better to visit country like India as compared to any other country as they find various and vast cultures in India.

HEALTHIER LIFESTYLE: India provides trends to the healthier lifestyle, one of the biggest example is of YOGA . most of the foreign tourist also visit India because of this purpose as they find new and better ways that could keep them healthy in their day to day sy lifestyle.

LANGUAGE: The Indian population is also good at speaking English language, so this factor plays an indirect part in the upliftment of the tourism industry. The foreigners do not find it much difficult to convey themselves to the people.

TECHNOLOGICAL ANALYSIS:Technology always plays an vital role in any sector, so it has also played its part in tourism industry. Some of the major technological factors that affect the industry if tourism are as under:

MEDICAL TOURISM:Medical tourism has emerged in India from 1995, the medical industry is driving more and more foreigners to come to India for their treatment. India is cheap at medical procedures and technologically advanced than the other countries. Around 1.5 lacs of tourist visited India just for medical purposes, which generated $300 million alone .Thus this one technological factor is attracting more and more crowd to India.

IT SECTOR:IT sector is one of the sector in which India is getting advanced day by day. It is driving more and more foreign nationals and tourist to our country as its providing some job oppoturnity to them, which inturn makes rise in growth of the tourism sector. There are many IT parks in India and many IT hubs which techno savvy people from abroad visit to learn new things.

ECOLOGICAL ANALYSIS: Environment is the main part of our lives that affect us directly. Environment analysis is necessary for tourism industry as its dependent on environment. Environment factor that has impact on tourism industry of India are:

GO GREEN IDEOLOGY: Go green ideology is one of the major steps taken by our government for the preservation of environment. This ideology states that more and more trees should be planted and less consumption of fuel should be done. This affects tourism industry directly as better environment will drive more crowd to the country.

GLOBAL WARMING: Global warming is one of the issues of concern of the whole world. Global warming is effecting the tourism of India as glaciers of Himalaya and the various hill stations in the Jammu and Kashmir and in Himachal Pradesh are facing trouble because of global warming as the temperature and weather conditions are changing there dramatically.

SAVE TIGERS INITIATIVE: Tiger saving initiatives are also taking a pace ,because royal Bengal tiger is world famous . People come from different countries to visit the national parks like KAZIRANGA etc, the tigers are the main attraction to the tourists, so government is taking initiative to save tigers.

LEGAL ANALYSIS: Legal factors of any country have an impact on its tourism. Various laws and acts have direct relationship with the rise and fall in the rate of tourism. Some of the legal factors that have impact on our tourism industry are given as under:

TAX EXEMPTION: The scheme and laws like tax exemption help to develop the tourism industry. The tax exemption laws like, 50% of profit derived by travel agents and tours operators will only be taxed. Such legal schemes are helping a lot in betterment of tourism.

INCREDIBLE INDIA: One of the aggressive advertisement campaign by tourism department is the INCREDIBLE INDIA, it is a advertisement scheme for which the government pays the money. Many banners and advertisment on various channels are shown, by this the ministry of tourism tries to show various great places which can be visited in India.

LOW SPENDERS: Apart from the above stated schemes one of the legal drawbacks is that Indian government does not spend much on the development and upliftment of tourism because of which tourism industry is not getting the utmost best channel for performing the best.

FARES: Government also provides the facilities of the partly low fare to the foreigners in the railways as well as in other services to show the kind treatment and hospitality to the foreigners, this will generate the word of mouth publicity of the tourism industry which inturn is the positive sign of legal factors.


Cheap air fair is curbing the domestic tourism, as people are preferring to go to different places with ease and in short time

Aggressive tourism strategy adopted by countries like countries like SINGAPORE and INDIA is still lagging to implement such strategies.

High operation costs.

Medical tourism is emerging in India which is helping to generate better economy from it. $300 million generated in 2004.

Economic development has developed the pace of domestic tourism.

Personal disposable income during 2002-2007 grew at a CAGR of 14.16%, thereby driving domestic as well as outbound tourism.

Royal trains and palaces attract the tourist who love the royal ways of living.


Inspite of overall recession and war of terrorism, the future looks bright:

Common wealth games 2010, is one of the huge opportunity by which the tourism industry could expect to generate high revenues.

Increased hotel facilities , the accommodation will be easier for the tourists.

Development of the infrastructure has already begun and this will help in boosting the tourism.

Various GO GREEN & SAVE TIGER initiatives are adding to a better India.

Fight war of terrorism to sustain.


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