Economic Decision Making Report: Indian Tourism and Local Impact

This report examines the economic decision-making aspects of the Indian tourism and hospitality industry, highlighting its significant role in generating employment and attracting foreign exchange. It discusses the Indian government's support, including FDI allowances, and initiatives like rural tourism schemes and the Clean India campaign. The report further analyzes the role of the Kashmir government in attracting local finance through private investments, improving infrastructure, and developing tourism staffing skills. It emphasizes the positive impact of economic flow on the local community, including talent recognition, employment opportunities, and an improved standard of living. The report references various studies and statistical analyses to support its findings, underscoring the multi-faceted benefits of tourism for both the national and local economies.

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1. Role of Indian tourism in terms of education and training for the development and
hospitality industry:
Indian tourism and hospitality industry has significant emerged as one of the key drivers
witnessing potential growth among varied other service sectors in India. Indian tourism has
played significant role in generating sufficient amount of employment along with bringing in
substantial amount of foreign exchange for the country. Even the government of Indian largely
supports the development of the hospitality industry with an allowance of 100 percent FDI
(Deshwal, 2015) and with a vision of witnessing unprecedented growth in the sector of hotel and
tourism. Indian Tourism is constantly experimenting with its operations like expanding the rural
tourism schemes that help in showcasing rural life and educating the mass about the art and
cultural heritage of rural India where as the Ministry of Tourism is also using this growing global
platform to launch and promote campaigns like Clean India (Gupta, 2015) specifically to
maintain cleanliness in spots of tourist attraction and preserve the scenic beauty of Mother India.
This is exactly how Indian tourism is playing a constructive role in developing the tourism
industry of the country.
2. Role of Kashmir Government in attracting local finance for tourism:
One of the most significant contribution of Kashmir Government in bringing in local
finance for boosting the tourism industry is by attracting more private investors in the
next five years (Ramjit, 2015). Moreover the government is significantly working
towards cleaning and improving the condition of varied water bodies of Surinsar and
Mansar, building viewing point and decks around the water body that would help in
attracting more tourists and will definitely help in raising local finance. There have been

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various other initiatives like indigenous ropeway project, development of border tourism
circuit to help attract sufficient amount of local finance to boost tourism (Bhat, 2014).
3. Kashmir Government’s role in increasing tourism staffing skills of local residents
Kashmir government strongly believes that private sector investment more
essentially after Article 370 and 35A been scrapped out (Gupta, 2017) will definitely give
a boost to pull out grater potentials of the aspirants or students who do not need to go out
of Kashmir to gain recruitment as the tourism industry is expanding in Kashmir where
new big hotels and restaurant are significantly growing with the support of private sector
investment. Going by the statistical analysis of World Travel and Tourism Council
(WTTC) estimates, an investment of rupees 10 lac in travel and tourism industry will
generate about 90 jobs which are much higher than its competing sectors like Agriculture
and Manufacturing which generate 45 & 13 jobs per rupees 10 lac respectively (Bhat &
Qadir, 2013). The government of Jammu and Kashmir is trying to convert the tourism
industry into a multi-segmental industry by creating variety of job opening ranging from
hotel managers, guides to tour operators and chefs. This initiative by the government will
help in improving the overall standard of living of the residents and local people.
4. Effect of Economic Flow on Local Community in terms of Tourism
The local community is largely benefited from good economic flow as proper
funding helps to boost the tourism industry which in turn provides the local community
with a platform to showcase their own talents and uphold their skills which would get
proper recognition as well as monetary acknowledgement generating positive earning
opportunities. Economic flow through tourism automatically helps local communities to

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uplift and get a more global recognition to their community apart from generating
sufficient employment opportunities and improving the overall lifestyle index of the
people (Nunkoo, 2015).

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References:
Bhat, B. A. (2014). Exploring the socio-economic coordinates of tourism: A case of Kashmir.
Journal of Business & Economic Policy, 1(1), 9-15.
Bhat, M. A., & Qadir, N. (2013). Tourist satisfaction in Kashmir: An empirical assessment.
Journal of Business Theory and Practice, Scholink Co., LTD, London, 1(1), 152-166.
Deshwal, P. (2015). Tourism Industry: An Instrument of Indian Economic Growth through FDI.
International Journal of Scientific Research and Management, 3(2).
Gupta, K. (2017). Critical evaluation of special status to state of jammu and kashmir under
article 370 of indian constitution (Doctoral dissertation, Lovely Professional University).
Gupta, R. (2015). Tourism, fdi and inclusive growth in India. Pacific Business Review
International, 7(12), 108-114.
Nunkoo, R. (2015). Tourism development and trust in local government. Tourism Management,
46, 623-634.
Ramjit, M. (2015). Sustainable regional development through rural tourism in Jammu and
Kashmir. African Journal of Hospitality, Tourism and Leisure, 4(2), 1-16.