Economic Impact of Rajasthan Tourism
Economic Impact of Rajasthan Tourism
Tourism on
Economic
Development
of Rajasthan
Introduction :
Tourism
Tourism is a most desirable human activity; which is capable of changing the socio-cultural,
economic and environmental face of the World. Tourism is one of the largest and fast growing
industries in the world; it has the potential to influence the living pattern of communities. It is one of
the most important channels of cultural exchange which breaks down the barriers between people of
different parts of the world. It is the collection of activities, services and industries that deliver a travel
experience including transportation, accommodation, eating and drinking, establishments of retail
shops, entertainment, business and other hospitality services provided for individuals or groups of
travelling away from home.
Tourism Industry
Tourism has emerged as a key sector of the world economy and has become a major workforce in
global trade. It has been making a revolutionary and significant impact on the world economic
scenario. Tourism has been identified as the major export industry in the world. The multifaceted
nature of this industry makes it a catalyst to economic development and helps balanced regional
development. It is a low capital, labour intensive industry with economic multiplier and offers
opportunity to earn foreign exchange at low social cost. Tourism industry acts as a powerful agent of
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both economic and social changes. It stimulates employment and investment, alters structure of an
economy, significant contribution toward foreign exchange earnings and maintaining favorable balance
of payment. The money spent by the tourist in a country is turned over several times in the process;
the total income earned from tourism is a number of times more than actual spending. The multiplier
effect of tourism receipts is completely recognized as spreading to secondary and tertiary sectors of an
[Link] World Tourism Organization (WTO) defines tourists as people "traveling to and staying
in places outside their usual environment for not more than one consecutive year for leisure, business
and other purposes“.
Tourism Development
Tourism is expected to continue to expand because people find more time for travel and leisure and also
the underdeveloped and developed countries promote tourism as a means of generating foreign
exchange, increasing employment opportunities and attracting development capital. Today tourism is the
largest service industry in India, with a contribution of 6.23% to the national GDP and providing 8.78%
of the total employment. India witnesses more than 5 million annual foreign tourist arrivals and 562
million domestic tourism visits. The tourism industry in India generated about US$100 billion in 2008
and that is expected to increase to US$275.5 billion by 2018 at a 9.4% annual growth rate. The Ministry
of Tourism is the nodal agency for the development and promotion of tourism in India and maintains
the "Incredible India" campaign.
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Rajasthan’s Tourism Industry
Tourism industry in Rajasthan is a vital breath in the economic activity. Tourism has direct and
indirect impact on financial, social and cultural life of people. This industry is considered as leisure
industry with many economic benefits like foreign exchange earnings, regional development,
promotion of local handicrafts and artisans, infrastructure development and increasing standard of
living. Tourism has been accorded the status of industry in India during the 7th [Link] role of
state has become crucial in the promotion of tourism industry especially in terms of the
contribution of the tourism industry to foreign exchange earnings and its creation of employment
opportunities in spite of huge tourist resources .India has a very insignificant share of 0.56 % of
the world tourist [Link] has a significant multiplier effect on the economy it is estimated
that every rupees spent by tourist changes hands 13 times and every hotel room generates direct
employment to three persons and indirect employment to eight persons in Rajasthan. Tourism is
the third largest employer after agriculture and textile sector. Rajasthan is an Indian state with
tremendous religious and cultural heritage and contains a large number of historic and architectural
monuments and vast reserve of natural flora and fauna the geographical location and climate of
the state is unique in [Link] golden triangle of Jaipur ,Agra and Delhi provides boost to tourism
in Rajasthan.
• SPIRITUAL TOURISM
• CULTURAL TOURISM
• WILDLIFE AND ECO TOURISM
• DESERT TOURISM
• MICE TOURISM
• ADVENTURE TOURISM
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Review of literature :
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social natural and the cultural phenomenon which is emerging as the world’s largest employment
generating industry the total number of foreign tourist arrivals in the state has increased it showed
an increasing trend except few years during the study period. (Shiji, 2016) Indian tourism has a
vast potential for generating employment and foreign exchange earnings it is a multidimensional
and service oriented industry so all sectors should actively participate for its sustainable growth.
(Mir,2014) Owing to the growth of tourism industry in J&K economic parameters like employment
income infrastructure and competition will improve leading to the entry of new products in the
market and thus resulting in better services and more satisfaction to the people. (Jaswal, 2014)
all wings of Central and state governments non public sector and voluntary organisation should go
hand in hand with commercial Enterprises for providing positive stimulus to the countries for
economic and social development by tourism. (Kuang and Tsai, 2016) the study concluded in
favour of allocating more resources to the tourist sector with the aim of obtaining increasing levels
of income. (Bashir,2018)there is a one way relationship between the number of tourist and
economic growth by investment has a two-way relationship with economic growth. (Petreveska,
2013) the study in emphasized tourism contributes to Macedonian economy and might be
classified as important industry principally when compared to the average figures of tourism trends
in other European region.
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campaigns to
promote
Incredible India
Upadhyay,S., A To study the India This papers Foreign tourist
Awasthi,A.,Rawal,P. comparative trend of based on arrivals have
(2017) study on foreign tourist secondary increased in
foreign arrival and data India in the
tourist their information studied period
arrivals in respective furnished by so the income
India earnings in government from foreign
various states bodies tourist
and union department increased and
territories and and councils the contribution
to analyse the regarding the of tourism
recent policy foreign tourist industry is
measure of arrivals and expected to rise
government earnings to 7. 6 % of
towards (INR). GDP by 2025
tourism
sector.
V.R., H.R., N.A. Indian To study the India Studies The tourism
(2017) tourism Indian empirical in industry is one
industry – a tourism nature and of the most
yardstick to industry and mainlyi based important
GDP to analyse the on secondary factors in the
impact of the data which economic
tourism was collected development in
industry on for a period of India the result
GDP. 10 years shows that
(2006-2015) there is a
from Ministry significant
of Tourism relationship
websites and between GDP
Indian and tourism in
statistics Indian economy
database
Auckland.K. (2018) At the The study of India The whole The article
Confluence the tourism research work demonstrates
of leisure pilgrimage isextensively the variety of
and interplay is based on ways in which
devotion : organised in available Hindu
Hindu three literature and pilgrimage
pilgrimage themesi.e. secondary become even
and the presence sources. more entangled
domestic of various with domestic
tourism in tourist tourism and the
India mediators potential for
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such as travel new research
agencies, angles this
hotels. entanglement
generates
Arora,S., Sharma, A The impact To critically Rajasthan, Primary The potential of
(2015) of events on assess the India research is tourism of
Rajasthan opportunities conducted in Rajasthan is yet
Tourism to promote four main to be tapped
with Rajasthan as tourist places fully this
reference to a tourist Jaipur Jodhpur requires
different destination Jaisalmer and combination of
fairs and and to Udaipur efforts on both
festivals evaluate the sample size is policy making
present taken 200 and marketing
tourism tourist visit in side the basic
promotion Rajasthan and infrastructure
system and secondary Road rail and
the research is air connectivity
government also needs to be
policies of conducted strengthened.
Rajasthan from various
Tourism. journals
articles
websitesetc
Jeganathan, G.S. Growth This paper India Data Tourism in
(2014) drivers of aims to presented in India has
tourism analsethe the study have experienced
industry in factors which been collected huge growth in
India have been act from the last decade
as growth government major source of
drivers of reports this growth was
tourism in published from foreign
India with the articles and tourist arrival
help of government and enormous
available websites. rise in the
data. number of
domestic tourist
Akihito,N. (2017) Developmen This paper Uttarakhand, This paper is There are major
t of tourism aims to clarify India basically benefits that
in The the regional based on can be
Tourist characteristic secondary expected from
Industry in s of the data sources. the influx of
India : A development tourist provided
case study of tourism there are
of accompanyin improvements
Uttarakhand g economic in the excess
growth in roads that
8
India and The connect major
Tourist Highways with
Industry lodging
using accommodation
development s
in the
Kumaon
region of
Uttarakhand
Kumbhar,V.M.(2015 Growth and This paper is India This paper is There are 10
) performance mostly based mostly based important
of tourism on secondary on secondary states in India
industry in data sources data sources where foreign
India which is which is tourist visit was
collected from collected from 89. 9 percent in
reports of reports of 2013 and
Ministry of Ministry of India’s share in
Tourism Tourism, world market of
Government Government of travel and
of India 2014 India 2014, tourism has
Indian Indian tourism also increased
tourism statistics and from 0. 65% 1.
statistics and other related 59 person
other related journals. during the
journals period of 1997
to 2013
Mir,L.A. (2014) Economic To find out India The data has- Indian tourism
evaluation the impact of been taken industry
of Indian tourism from various emerged as an
tourism industry on documents important
industry various such as books instrument in
economic newsletters the economic
aspects of reports development of
Indian magazines Indian economy
economy and journals due to its
to understand newspaper strong
the present internet as backward and
status and well as forward
scenario of existing linkages it
Indian literature generates
tourism employment in
industry. different
profiles
Malik, M.M.(2014) A review of In developing India The research The Indian
tourism country like is based on tourism sector
developmen India Tourism the analysis of needs an
t in India has become relevant urgent image
9
one of the reports of makeover and
major sectors Tourism higher
of economy Development investment in
contributing Corporation development
to a large newspapers growth and
proportion to plans previous infrastructure
the national studies and including
income in other through public
generating documentation private
huge together partnership
employment discussion model to
opportunities with tourism capitalize on
authorities and opportunities
also field visits provided by
overall growth
in world tourist
arrivals
Ohlan,R.(2017) The The study India The data used The tourism
relationship investigate in the study sector is
between relationship are annual witnessing a
tourism between figures for the shortage of
financial tourism and period talent in India
developmen economic stretching therefore to
t and growth in from 1960 to achieve the
economic India by the 2014 desired growth
growth in relative consisting of in this sector
India importance of one the country
financial endogenous needs to
development variable ( GDP execute policies
over the per capita a that advance
period of proxy for enthusiastic and
1960 -2014 economic prudent talent
growth ) and management
two particularly in
exogenous human capital
variables development
(International
tourism
receipts per
capita and
financial
development)
Berwal,R. (2017) Role of The basic Rajasthan, The qualitative Tourism can
tourism in objectives of India study has generate
economic the paper is been done employment
developmen to examine where primary opportunities
t of the factors data will be for the local
10
Rajasthan which are collected via people and
with special responsible questionnaire plays a vital
reference to for the telephonic role in the
Shekhawati development interview and economic
circuit of tourism in personal development of
the study interview the studied
reason and to annual reports region
analyse the of Rajasthan
role of Tourism and
infrastructural government
facilities in reports on
the Rajasthan
development Tourism
of Heritage
tourism
T.,V. (2014) Impact of This paper India This paper is Tourism sector
tourism in emphasized prepared with plays a vital
Indian on the the support of role in the way
economy opportunities secondary of helping poor
in tourism sources like countries to
industry magazines provide
realise the newspapers employment
prospects of reports opportunities in
tourism dissertations an increasing
industry to thesis and the rate it is one of
identify the like the important
challenges foreign
involved in exchange
the sector earning industry
and to aware it has
about manifested
different form great potential
of tourism of growth under
industry liberalised
Indian economy
Choudhary,S., Role of This paper is Rajasthan, The Tourism is a
Yadav,S.B.(2018) tourism in an effort to India information in triadic
economic understand the study is composition of
developmen the collected from social natural
t of perspective of secondary and the culture
Rajasthan tourism in sources that phenomena
economic are from which is
development various online emerging as the
of Rajasthan sources world’s largest
and identify websites employment
the factors articles reports generating
influencing books related industry the
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the growth of to tourism in total number of
tourism India foreign tourist
arrivals in the
state has
increased it
showed an
increasing trend
except few
years during
the study
period
O.,S. (2016) Economic To measure India Input output Indian tourism
impact of the economic method has a vast
tourism in impact of ,economic potential for
India tourism in impact generating
India assessment employment
scale tourism and foreign
satellite exchange
accounts earnings it is a
method multidimension
impact of al and service
visitor oriented
spending industry so all
method etc sector should
are used in actively
this paper. participate for
its sustainable
growth
Mir,A.H. (2014) Impact of To find out J&K, India The data is Owing to the
tourism the impact of mainly growth of
industry on tourism in the collected from tourism industry
economic economic secondary in J and K
developmen development sources from economic
t of Jammu of the reports of parameters like
and Kashmir employment WTO , WTTC employment
income Ministry of income
infrastructure Tourism etc. infrastructure
development and competition
and regional will improve
development relating to the
of J and K. entry of new
products in the
market and
thus resulting in
better services
and more
satisfaction to
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the people
Jaswal,S.S. (2014) Role of The paper India The present All Wings of
tourism describes the study is based Central and
industry in contribution on the state
India’s of tourism to secondary government
developmen the data published non public
t generation of by various sector and
national Agencies like voluntary
income UNWTO organisation
expansion of Ministry of should go hand
employment Tourism in hand with
opportunities Ministry of commercial
rising of tax statistics and Enterprises for
revenue programme providing
generation of implementatio positive
foreign n etc stimulus to the
exchange and country’s
transformatio overall
n of regional economic and
economy. social
development by
tourism
Kuang,T. , Tsai,Y. The effect To Taiwan The real GDP The study
(2016) of tourism demonstrate data is concluded in
growth on that whether obtained from favour of
economic tourism the financial allocating more
growth : A growth will database of resources to the
quantile affect Taiwan tourist sector
regression economic economic with the aim of
analysis growth journal and obtaining
depends on the tourist increasing
the arrivals were levels of income
conditional taken from the
distribution of annual reports
economic on tourism
growth from 1965 to
2005
published by
Taiwan
tourism
bureau
Bashir, A. (2018) The role of The study Indonesia In this study There is a one
tourism implies that the secondary way relationship
towards government data is used between the
economic policy has an which was number of
growth in important role published by tourist and
the local in increasing The Central economic
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economy the tourism Bureau of growth while
sector statistics of investment has
development South Sumatra a two way
which is province relationship to
indicated the economic
contribution growth
of this sector
on economic
growth
Petrevska, B. Tourism The objective Macedonia The paper is The study
(2013) contribution of this paper based on emphasized
to economic is to make an different types tourism
developmen assessment of analysis contributes
t in of direct mostly based toMacedonian
Macedonia tourism on available economy and
impacts over sources of might be
economic secondary classified as
development data important
in Macedonia industry
principally when
compared to
the average
figures of
tourism trends
in other
European
region
All the papers are related to Indian except three in which one belongs to Macedonia ,one to
Taiwan and another oneto Indonesia these papers are considered for their good content and
research methodology .
Research Gap :
Though there have been several studies at the international and national level covering tourism
development and its impact on the economy but not much attention has been paid to tourism
development and its impact on the economy of Rajasthan.
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Furthermore, most of the published materials available are either descriptive or repetitive.
A large number of thestudy carried out in the field of tourism development and its impact on
the economy of Rajasthan is of general nature.
Several important aspects of tourism development like foreign exchange earnings, employment
generation, infrastructure development, local industriesetc from the view point of those
engaged in tourism sector from the tourism developed areas, have not been examined or
evaluated so far.
Generally the studies based on secondary data, no input of primary data is taken in most of the
studies.
The cultural rich state of Rajasthan is very much popular for a wide range of tourism events like
the elephant riding , camel riding, bird sanctuaries, festivals and fairs, forts, luxury trains, folk
dance and music, art and craft that contributes nearly to 11% of total foreigntourist arrivals in
India and around 80% of the places are having natural beauty which attracts national and
internationaltourists. The total number of foreign tourists visiting Rajasthan in 2008 was 1477546
which amounted to 27.53% of the total number of foreign tourists visiting India according to
Progress Report 2007-08,TourismDepartment [Link] accounts for approximately 15%
of the Rajasthan’s economy and provides economic benefits like foreign exchange earnings
regional development infrastructure development and promotion of local handicrafts in Rajasthan
Tourism accounts for 2. 7 % (5. 2% after adding indirect effects) in gross state domestic product
and 1. 9%( 7. 2% after adding indirect effects) in state employment. Tourism has a significant
multiplier effect on the state economy it increases employment opportunities generating revenue
developing infrastructure increasing investment opportunities and revival of traditions and heritage
conservation and management.
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exhibition and various big doctors' conferences are the good examples. Alongwith this Rajasthan
is tremendously popular in destination weddings which is also a new avenue of tourism.
TOURISM DEVELOPMENT
• EMPLOYMENT
• INCOME
• INFRASTRUCTURE
• LOCAL INDUSTRIES
Employment
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TOURISM
IMPACT
Income
Infrastructure
Industries
INDEPENDENT VARIABLES DEPENDENT VARIABLE
EMPLOYMENT
INCOME TOURISM
INFRASTRUCTURE DEVELOPMENT
LOCAL INDUSTRY
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The study would be based on four main variables that forms based for the study and the
interconnection is required to be found in order to arrive at the results of the study and thesepillars
are:
• Income : Tourism being a labour intensive service industry can create direct as well as indirect
income from tourist expenditure by providing tourist goods and services.
• Employment : As tourism is a labour intensive service industry there is direct as well as
indirect employment created by the enhancement of tourism it generates a wide range of
employment from the less skilled to highlyskilled jobs.
• Infrastructure : Due to tourism development certain areas get better infrastructural facilities
like roads airports telecommunications sanitary facilities water supply etc. The state and private
entrepreneurs invest huge amount in better infrastructure facilities.
• Local Industry : Development of tourism holds quite high potential for small scale and cottage
industries Rajasthan textile industry ,handicraft industry ,blue pottery ,wooden items , marble
items, paintings of Rajasthani culture , jewellery are world famous and they tend to higher
development due to tourism.
There are certain areas which are very much popular from the tourism point of view. Development of
tourism intheseareas has a wide variety of impact on the economy of that locality and the overall
economy of the state .The impact of the development of tourism is directly felt by those people who
are directly or indirectly involved in tourism business .Therefore the universe of the present study is
limited to impact of tourism on income, employment, infrastructure and local Industry of Jaipur,
Jodhpur ,Udaipur and Jaisalmer of Rajasthan. This study would be exploratoryand empiricalin nature
and the first of its kind in Rajasthan . Therefore the study will be conducted mainly to explore the
positive economic impacts of tourism in the tourism developed areas. The focus of the proposed is
study to establish relationship between tourism development and its impact on Rajasthan’s economic
development by taking four main factors of economic development that is Income, Employment,
Infrastructure and Local Industries of Rajasthan. The study would be based onprimary
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andsecondary sources which would be collected from owners and employees of business connected
with tourism in four above-mentioned districts (Jaipur, Jodhpur,Udaipur, Jaisalmer) of Rajasthan and
journals, reports, official sites, RTDC publications,Ministry of Tourism publications, magazines,
newspapers, dissertations, thesis and various unpublished articles etc. respectively
Rides, Animal Safaris, cultural sites, Deserts architectural wonders, and unforgettablehospitality Make
Rajasthan A Specially Rated Tourism Destination.
Research objectives:
• To analyze the tourism development and its impact on economic development of Rajasthan.
• To explain the economic development variables related to tourism.
• To develop the relationship between economic development with different sets of independent
variable select for study that are income, employment ,infrastructure and local industries.
• To establish correlation between different economic variables selected for the study.
H01: There is no significant impact on the economy of Rajasthan because of the development of
tourism.
H02 : There are no significant variation regarding the independent variable that is income employment
infrastructure local industries selected for the study.
H03 : There is no significant correlation between the independent variables selected for the study and
economic development of Rajasthan.
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Research Methodology:
Research Design:
Exploratory Design: A detailed survey of literature had been undertaken and will also be referred in
future.
Descriptive : The study would be based on various graphs, charts and diagrams.
Empirical : The study would analyse the available data by various statistical tools.
Primary Sources : In primary data, researchers collect data themselves using different methods such as
surveys, interviews and direct observations.
Secondary Sources : Secondary data may be a product of other research, or may have been collected by
some individuals. Secondary data is not tightly controlled by the researcher.
The proposed study is based onprimarydata of four important tourist districts of Rajasthan i.e.
Jaipur, Jodhpur, Udaipur and Jaisalmer andsecondarydata which would be collected from
books, periodicals, research articles, seminar reports, newspaper, study report of expert
committees,publications plan documents , public dissertations, various official reports, RTDC
publications, Ministry of Tourism reports and publications, unpublished relevant articles etc.
Jaipur
Jodhpur
Udaipur
Jaisalmer
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Sample Details
Sample size for working population in tourism = 384 calculated by Krejcie and Morgan
Formula
N = Population
The study would be exploratory in nature and would be basedon secondary sources of data:
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• SPSS 22 and AMOS Software will be used for analyze the data
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2 Review of literature
2.1 Review related to tourism development
2.2 Review related to tourism development and economic development
2.3 Review related to Tourism in Rajasthan
Review related to tourism development and economicdevelopment in
Rajasthan
3 Research Methodology
3.1 Research Objectives
3.2 Research Gap
3.3 Need and Significance of the study
3.4 Objectives of the study
3.5 Hypothesis
3.6 Scope of the study
3.7 Tools
3.8 Processing of data
4 Data Analysis and Interpretation
5 Conclusion
Conclusion and Findings
Suggestions
Scope for further Research
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