47

CHAPTER - IV

OBJECTIVES AND THEORITICAL OUTLINE

Structural Frame Work:

Tourism is an industry and it is a commercial activity which contributes to

GDP of many nations. As an industry it offers many products to its consumers. It

must identify the demands and needs of the consumers in order to fulfill them. One

cannot sell a product, just because one has it. There should be the demand in the

market. Any development in a business could take place only when there is

understanding of market.

Marketing a tourism product is more complicated as it is a service and not a

physical product like a television or a refrigerator. There are more dimensions

attached to it than just fulfilling consumer needs. Tourism development also has to

consider issues of sustainability, and carrying capacity. But the basic concepts in

business like correct marketing mix, identifying market segments and planning

business strategies remain the same for developing a product.

Special Interest Tourism (SIT) is a niche segment developed in tourism

industry in recent years. Agro Tourism which has developed in last 5 years in

Maharashtra is still a recent development. One must understand how this phenomenon

has occurred and what would be the future trends in the development of this SIT

segment.

Marketing is at the heart of any business activity. American Marketing

Association defines marketing as follows:

“Marketing is the performance of business activities that directs the flow of

goods and services from producer to consumer or user.”

Schematically, this definition can be reproduced as shown below:

Producer Consumer

(Product) (Need)

Marketing Activities

Figure No. 4.1

Schematic Definition of Marketing

48

Marketing as per this definition, starts with a ‘Product’; as in our case SIT.

An entrepreneur who wants to start a new business will have to decide what

product he should manufacture (design in case of tourism) and sell. Decision to

choose a product is possible only when consumer needs are identified. Once the

entrepreneur has identified the need of a group of human being (called market

segment) he can determine the product which can help to satisfy that need. This is part

of the modern philosophy of marketing or the marketing concept.

The SIT was designed identifying the need of the tourists who were in search

for something different. The need was identified when the market was saturated and

people wanted to shift to the activities and destinations which were exotic,

adventurous and authentic. This was a shift from mass tourism which generated a

need for SIT.

Philip Kotler defines Marketing as “A human activity directed at satisfying

needs and wants through exchange process.”

Thus the most fundamental concept which must be realized as being the basis

of all marketing activities is the existence of human needs.

The human need is a state in which a person feels deprived of something.

There are many human needs described in many ways.

Maslow’s theory proposed in 1954 is the best amongst them which

describes the hierarchy or ladder, of needs leading to self actualization.

Self

Actualization

Esteem needs

Belongingness and

love needs

Safety needs

Physiological needs

Figure No. 4.2

Maslow’s Theory of Hierarchy of Needs

The order in which these needs are listed is significant in two ways. The needs

appear in this order, from lowest to highest with physiological needs first and self-

actualization needs last, during a person’s normal development from lowest, to

highest, this is also order in which they must be satisfied. In other words,

49

physiological needs must be satisfied before any of the others can be met, safety

needs come before those higher on the list; and so on.

Factors like increased leisure time, more disposable income, longer week-

ends, paid holidays have given rise to the fulfillment of needs higher in the hierarchy.

At any time some needs in a human being are dormant and unsatisfied

whereas others are active and are being satisfied. Marketing may thus device a

product or a service aimed at satisfying certain dormant needs and thus provide

satisfaction to the user. The needs exist but these have to be converted into “wants” by

marketing strategy. When the wants are backed by the ability to buy, the wants are

converted into “demand”.

When a section of tourists wanted something new and different than the others

a need was created. Identification of this need and designing a suitable product (SIT)

was a next step. With increased income, more leisure time, early retirements, paid

family holidays people could back-up their want by ability to buy and thus demand

for SIT was seen in the market.

SIT encompasses many things like eco-tourism, green tourism, food and wine

tourism, ethnic tourism (which includes rural and agro-tourism), cultural tourism and

so on. One would find something for every age group and income group. Consumer

oriented thinking is necessary for any business to survive and grow.

There can also be a process oriented definition of marketing, as “the process of

ascertaining consumer needs, converting them into products or services and then

moving the product or services to the final consumer or user to satisfy certain needs

and wants of specific consumer segment or segments with emphasis on profitability,

ensuring the optimum use of the resources available to the organization.”

Resources are always scarce. In the context of tourism where natural

attractions play a major role in attracting tourists, they are not only scarce, they are

non-renewable. Coral reefs, rain forests, flora and fauna, rivers, mountains, beaches,

wildlife all can become a tourism product. One cannot think of earning only monetary

profit in such case. There are other costs attached to it and which need to be translated

before arriving at the profit. Social, cultural and ecological costs also need to be

calculated.

So while developing a tourism product, concepts like carrying capacity of a

destination, host and guest relationship are equally important. Also the sustainability

of a tourism destination needs to be given consideration. Further in this chapter there

50

would be detailed discussion about these concepts and its importance in tourism

development.

Marketing Mix:

Marketing is performed within a certain environment which itself is always

changing. The marketing activities have, therefore to change in consonance with

environment to be continuously effective. Marketing activities are divided into four

basic elements, together they are called as Marketing Mix.

i) Product

ii) Price

iii) Promotion

iv) Place (or physical distribution)

They can be referred to as Four Ps of the marketing mix or Four Ps in marketing.

i) Product: The word product stands for goods or services offered by the

organization. Once the needs are identified, it is necessary to plan the product and

after that keep on analyzing whether the product still satisfies needs which were

originally planned for, and if not, to decide the necessary change.

ii) Price: Refers to the money value that the customer has to pay. The product has to

be adequately priced. Pricing involves considerations of costs, profit margin and

the concept of right price.

iii) Promotion: It is the aspect of selling through advertising as well as the sales

force. Besides a certain amount of promotion is done through special seasonal

discounts, competitions, special price reduction etc. collectively it is called as

sales promotion.

iv) Physical distribution: It is the channel of distribution through which the product

has to move before it reaches the consumer. The selection of distribution channel

e.g.: wholesaler, retailer or directly to the consumers. The optimum method has to

be determined in terms of both consumer satisfaction and optimum use of business

resources.

Marketing Strategy:

The Marketing strategy consists in directing a proper Marketing Mix towards

a target group of customers or “Market Segment”.

51

The Four points are decided and directed at the consumers on the basis of

proper diagnosis of firm market system arrived through the process of marketing

research.

Marketing Strategy Aimed at Consumers

Figure No. 4.3

Pricing

1) Profit Margins

2) Sales at different Prices

3) The right Price

Product Planning Promotion

1) Introduction of Target Consumers 1) Advertising

New product (Market Segment) 2) Special Packages

2) Improvement of 3) Sales Promotion

existing product Marketing Research

3) Eliminating non-profitable

product

4) Packaging Physical Distribution

5) Branding 1) Selection of distribution channels

2) Logistics

Market Segmentation:

Identifying the target market segment is a key to successful marketing. One

would like to define bull’s eye correctly so that there is no wastage in the marketing

effort.

Market segmentation can be illustrated by the following example:

Suppose for selling product ‘A’ women are being chosen as a group of

customers. Further the consumer is defined as sophisticated women. The word

sophisticated perhaps means i) high income group (ii) in urban area. It can be

represented by:

52

I) Women High Income Group

Urban Areas

Figure No. 4.4

Market Segmentation

II) Women High Income Group

Urban Areas

Figure No. 4.5

Market Segmentation

There are as many as seven segments from which one has to choose. But

segment 5 is a combination of all three groups. So the target is well defined.

Further in this chapter various market segments suitable for SIT are discussed

and from which the target could be well defined for further development.

Marketing Services:

Tourism being a service sector, the products that fall under this sector are

mostly services and not goods. One can book a ticket for journey and reserve a seat.

But that does not mean one is buying a seat. It is an experience of travel which is at

the core of the product. Similarly a room is booked at a destination to stay is for the

experience of luxury and services offered, the ownership of the room is not

transferred to the customer. Being a “service” there are certain more aspects attached

to it than the “product” concept in marketing.

In India we can observe the growing importance of the manufacturing and

service sectors, while agriculture still continues to retain its stronghold on the

economy. The manufacturing and service sectors are growing not only in volume but

also in sophistication and complexity.

53

Daniel Bell, in his book “The coming of the Post-Industrial Society” called

this period of dominance by services sector as the post-industrial society. According

to him “If an industrial society is defined by the quantity of goods as marking

standard of living, the post-industrial society is defined by the quality of life as

measured by the services and amenities – health, education, recreation, leisure and

arts – which are now deemed desirable and possible for everyone.”

The need or the want for SIT could be created because of the facts mentioned

above.

Concept of Service:

The term service is rather general in concept, and it includes a wide variety of

services. There are business and professional services such as advertising, marketing,

research, banking, insurance, computer-programming, legal and medical advice. Then

there are services which are provided by professionals but not consumed for business

purposes. E.g. Teaching.

From marketing point of view Philip Kotler defines services as:

“A service is any activity or benefit that one party can offer to another that is

essentially intangible and does not result in ownership of anything. Its production may

or may not be tied to a physical product.”

W.J. Stanton views services as fulfilling certain wants and defines as:

“Services are those separately identifiable, essentially intangible activities

which provide want – satisfaction, and that are not necessarily tied to the sale of a

product or another service. To produce, a service may or may not require the use of

tangible goods. However, when such use is required, there is no transfer of title

(permanent ownership) of these tangible goods.”

As in case of product, in the case of services also, the starting point for

understanding the marketing dynamics is to satisfy the want of customers. It is

important to identify the particular want correctly which the service is fulfilling, as

this will provide the clue for the most appropriate marketing strategy. Also one has to

find the means to differentiate it from that of the competitors, so that the number of

customers can be increased and their loyalty can be commanded.

In case of SIT development, the tourists who wanted to be the first to

experience something new and different than others were a key. These are the people

who have high self-esteem need (higher on a need-hierarchy theory). They are ready

54

to pay a price (not only monitory, but it is also time and effort) for a new experience.

Though a highly niche market segment the returns are worth concentrating on this

segment.

Reasons for Growth in Service Industry:

Table No. 4.1

Sr.

No.

Reasons Types of Services required

1. Increasing affluence Greater demand for services (activities which

consumers used to perform themselves) such as

interior decoration, laundry, care of household

products such as carpets, care of garden etc.

2. More leisure time Greater demand for recreation and

entertainment facilities, travel resorts, adult

education and self-improvement courses.

3. Higher percentage of

women in the labour force

Greater demand for crèches, baby sitting,

household, domestic help.

4. Greater life expectancy Greater demand for nursing homes and health

care services.

5. Greater complexity of

products

Greater demand for skilled specialists to

provide maintenance for complex products such

as air-conditioners, cars, home computers.

6. Increasing complexity of

life.

Greater demand for specialists in income-tax,

labour laws, legal affairs, marriage counseling,

employment services.

7. Greater concern about

ecology and resource

scarcity

Greater demand for purchased or leased

services, car rental, travel, resort to time sharing

rather than ownership basis.

8. Increasing number of new

products

The computer-sparked development of such

service industries as programming, repair and

time sharing.

Reference: Schoell, K.F. and J.T. Ivy, 1981 “Marketing: Contemporary Concepts

and Practices,” Allyn and Bacon; Boston.

55

Characteristics of Services:

Services have number of unique characteristics that make them so different

from products. Some of the most commonly accepted characteristics are:

a) Intangibility

b) Inseparability

c) Heterogeneity

d) Perishability

e) Ownership.

a) Intangibility: A product (goods e.g. soap) can be touched, smelled and its

effectiveness can be checked immediately after use. But when tuition fees for a

school/college are paid, one is paying for the benefit of deriving knowledge and

education delivered by the teacher. There is no way that one can immediately

check its benefits like a product. Teaching is an intangible service. But some

services do have few tangible aspects (e.g. aero plane in which one travels Boeing,

Concorde) is tangible where as transportation service benefit is intangible.

The following figure shows the tangible-intangible dominant aspect on goods and

services continuum. It shows that most services are in reality a combination of

product and service having both tangible and intangible aspects. There are only

few truly pure tangible products or intangible services.

Goods and Services Continuum

Figure No. 4.6

Salt Detergents Automobiles

Soft Drinks Cosmetics Fast Food Outlets

Intangible Dominant

Tangible Dominant

Fast Food

Outlets Advertising Consulting

Agencies Airlines Teaching

Reference: Shostack, G.L., 1977 “Breaking Free from Product Marketing”, Journal of

Marketing, Vol. 41, No.2 American Marketing Association.

56

The distinguishing feature of a service is that its intangible aspect is dominant.

The intangible features are:

• A service cannot be touched.

• Precise standardization of service is not possible.

• There is no ownership transfer.

• A service cannot be patented.

• Production and consumption are inseparable.

• There are no inventories of services.

• Middlemen roles are different.

• The consumer is a part of the production process, so the delivery system must

go to the market or the customer must come to the delivery system.

b) Inseparability: In most cases service cannot be separated from the person or firm

providing it. A service is provided by a person who possesses a particular skill

(singer), by using equipment to handle tangible product (tailor), or by allowing

physical access to or use of physical infrastructure (hotel room). A singer has to

be physically present in a concert to deliver the service of singing. This is in direct

contrast to products which can be produced in the factory today and can be

delivered later after stocking for days or weeks.

c) Heterogeneity: A human element is very much involved in providing and

rendering services and this makes standardization very difficult task to achieve.

This is despite the fact that rules and procedures have been laid down to reduce

the role of human element and ensure maximum efficiency. It is the interaction

with the service provider which can be different every time and it can change your

perception about satisfaction derived from a particular service.

E.g. same clerk at the bank may take a long time to complete a daily routine

transaction which leads to dissatisfaction.

d) Perishability: Services cannot be stored and are perishable. An unsold cover in a

restaurant, a room in a hotel is examples of service capacity lost forever. Further

the peak and low demands (fluctuating demand) pattern aggravates the

perishability characteristic of services.

e) Ownership: When money is paid for the product e.g. pencil or car the person

paying for it becomes its owner. In case of service, one may pay for its use but

never owns it. A service is purchased for the benefits it provides. Products are

57

purchased not because of their physical tangible features but because they provide

certain intangible benefits and satisfaction.

Implication of Service Characteristics and Ways of Overcoming Them

Table No. 4.2

Sr.

No.

Service

Characteristics

Implications Means of overcoming

characteristics

1. Intangibility Sampling difficult,

difficult to judge quality

and value in advance.

Cannot be patented or

copyright. Relatively

difficult to promote.

Focus on benefits. Use brand

names. Use personalities to

personalized service. Develop

reputation. Increase

tangibility (e.g. its physical

representation)

2. Inseparability Requires presence of

performer/producer.

Limited scale of

operations.

Geographically limited

market.

Learn to work in larger

groups. Work faster. Train

more service performers.

3. Heterogeneity Difficult to standardize

quality.

Careful training and selection

of personnel. Define behavior

norms. Reduce role of human

element.

4. Perishability Cannot be stored.

Problem of demand

function.

Better match between supply

and demand by price

reductions in low demand

season.

5. Ownership Customer has access to

but not ownership of

facility or activity.

Stress advantages of non-

ownership.

Reference: Cowell, Donald, “The Marketing of Service”. Heinemann London.

58

In the tourism context and especially in case of SIT, these service

characteristics are vital to understand. Products based on culture, adventure, nature are

more intangible. The consumer has to approach the service provider and it cannot be

taken away from the place where it exists. E.g. To enjoy agro-tourism the consumer

has to go to the farm. The farmer and the farm are inseparable and the service cannot

be enjoyed outside the geographical limit of the farm. The visitors would not own the

farm, but they can be given a sense of belongingness by warm welcome and homely

atmosphere.

Marketing Mix – Some Specific Situations:

• New Product Development and Marketing Mix:

The product is one component of the marketing mix and is usually the core

part, so the product is developed first. However, there are occasions when the product

is designed to fit some other component of the mix. But the various elements of a

marketing mix are conceptually interconnected to meet some want and so there must

be a procedural interconnection in designing the various components.

The drawing up of a tentative marketing mix is a part of any new product

development program. “Promotion” is a key consideration when want is likely to be

latent or passive for the majority of the members of the target market. Generally

motivation to buy is based preferably on some core advantage and the same core

advantage can be stressed in promotion.

“Price” is a strategic element in new product development. Price can be

important not just in terms of cost to the consumer but as contributing to the image of

the product. Although the introductory price is of immediate interest in the context of

new product development, the entrepreneur needs to plan overall pricing strategy that

might be adopted as the market grows.

“Distribution” if the availability of the product in the target market cannot be

assured, all else fails. The role which distribution channels must play should be

decided at the earliest stage possible.

SIT as a new product in the market must decide on the marketing strategies

discussed above. The market segment for SIT is a niche segment. Reaching the

particular market segment through proper distribution channels is important. As in

case of agro-tourism, the current scenario is NGOs like ATDC, MART and Konkan

Krushi Pratisthan are trying to reach customers through local markets. Few agro-

59

tourism farmers have their own web sites to reach customers. But national or

international markets are yet beyond reach.

Pricing as of now is affordable for consumers but overall costing from service

providers side is not making more profit, but just adequate to cover the costs.

Thinking of the long term basis pricing strategy needs to be more precise.

More detailed project reports of the established agro-tourism destinations could be of

great help.

• Product Life Cycle and Marketing Mix:

Product Life Cycle (PLC): A product passes through a specific sequence of

stages corresponding to the life phases of infancy, growth, maturity and decline. The

focus in case of products is on the shape of the sales curve. The assumption is that

sales are low during introductory stage, rapidly rising during the growth stage, reach

the peak during the maturity stage and start declining during the final stage.

The product life cycle curve

Figure No. 4.7

Sa

les

Vo

lum

e

Introduction Growth Maturity Decline

Time

Different products will take different time spans to pass through PLC. Some

products like bulbs, aspirin seem to remain indefinitely at the maturity stage, while

some other products quickly come and go. Further, just as countries can be at different

stages in economic growth, product can be also at introductory stage in one country,

and in maturity in another. For e.g. wine tourism is at its maturity in European

countries, where as in India it is at an introductory stage. Agro-tourism in countries

60

like America and Austria, New Zealand is growing and in India it is at an introductory

stage.

• Typical Suggested Strategies Relating to Marketing Mix in the LPG Stages:

Table No. 4.3

Stage in

PLC

Product strategy Pricing

strategy

Promotion

strategy

Distribution

strategy

Introduction Iron out product

deficiency

Highest Create awareness

of product is

potential.

Stimulate primary

demand.

Selective

distribution

Growth Focus on product

quality, variations of

product introduced

High Selective

advertising of

brand to create

image

Extended

coverage

Maturity Product adjustment

for further brand

differentiation

Moderate Build and

maintain image

Seek closer

dealer

relationships

Decline Simplify product line

seek new product

uses. Introduce

changes to revitalize

product.

Low Primary demand

may again

cultivated

Selective

cultivated

Most of the SIT products are at introductory or growing stages in India. Very

few like trekking and camping have reached maturity. But other SIT products in the

introductory stages like wine and food tourism are copying the development pattern

from the west. The danger lies in too advance product development for which the

consumer mind set is not ready. Product development has to keep pace with customer

mindset. Wine tasting itself is in a very primary stage in India. So it is obvious that

the wine and food tourism is yet to catch attention of even otherwise gourmet segment

of customers.

61

Also agro-tourism in Western countries is much developed. It includes official

bed and breakfast schemes on the farm to pottery and wine making workshops at the

farm. The idea here is to sell the farm and its products to consumers in best possible

way. Indian agro-tourism concept has a cultural lining and guest-host relationship is

more informal. It’s more like rural-urban cultural exchange than selling a product.

There is no concrete answer as to which strategy to follow for all products uniformly.

A marketer should seek and identify the stage in the life cycle of a product from the

conditions in the market.

The consumption of many types of products and services such as books,

magazines, library is dependent on whether the potential customer is literate or not.

Literacy also has implications for designing marketing strategy to market your

products and services. The relatively high level of literacy warrants on the usage of

newspapers and magazines as a medium of advertising.

Demographic, Geographic Data of Indian Market for Niche Market

Segmentation

Demographic Data – India (1981, 1991, 2001)

Table No. 4.4

2001 1991 1981

Population (Mn.) 1,027 846 683

Density (per km2) 324# 273* 230

Persons per household (No.) n.a 5.52* 5.55*

Districts (No.) 593 466 412

AUs & Towns (No.) 1,392 3,768 3,378

Villages (inhabited) (‘000s) n.a. 627 579

Rural Population (Mn.) 742 629 524

Urban Population (Mn.) 285 218 159

Urban as % of total (%) 27.8 25.7 23.3

Male Population (Mn.) 531 439 353

Female Population (Mn.) 496 407 330

Females per 1,000 males (No.) 933 927 934

Workers* (Mn.) 403 306 242

62

2001 1991 1981

Male (Mn.) 275 219 179

Female (Mn.) 127 87 63

Birth rate (per 1,000) 25.8@ 32.5 37.2

Death rate (per 1,000) 8.5@ 11.4 15.0

Expectation of life at birth (Years) 63.0 58.2 50.5

Male (Years) 62.3 57.7 50.9

Female (Years) 65.3 58.7 50.0

Literacy rate (%) 65.4 52.2# 43.6

Male (%) 75.9 64.1# 56.4

Female (%) 54.2 39.3# 29.8

Note: Birth rate and death rate under 2001-1991 & 1981 relate to 1991-00, 1981-90

and 1971-80 respectively; expectation of life at birth to 1991-92 and 1971-80.

Workers are total of main and marginal.

* Excluding Assam and J&K

Excluding Assam

# Excluding J&K

@ Relates to 2000

Reference : Statistical Outline of India 2002-03. Tata Service Ltd.

A critical demographic characteristic of population is its distribution between

different age groups as shown in Table 4.5

Age Distribution of Population (Projections) (1991 to 2013)

Table No. 4.5

Age distribution of

population (years)

1991 1996 2001 2006 2010 2013

Mn.

0-4 ………… 110.9 119.5 108.5 113.5 119.7 120.8

5-14 ………… 196.3 233.2 239.1 221.2 215.5 220.0

15-19 ………… 91.4 90.7 109.0 122.4 117.4 110.1

20-24 ………… 81.2 82.1 90.2 108.5 120.8 120.9

25-34 ………… 128.6 141.9 156.6 170.6 190.8 210.7

35-44 ………… 93.9 104.8 121.6 139.0 151.0 158.6

45-54 ………… 68.6 73.3 85.7 100.2 113.1 123.3

63

Age distribution of

population (years)

1991 1996 2001 2006 2010 2013

Mn.

55-59 ………… 26.2 26.4 31.1 36.9 41.5 45.8

60 & above ….… 50.8 62.3 70.6 81.8 92.5 101.4

Total …………..… 846.3 934.2 1,012.4 1,094.1 1,162.3 1,211.6

Reference: Statistical Outline of India 2002-2003, Tata Services Ltd.

More than 34 percent of our country’s population in 2001 comprised of

children upto 14 years of age. On the one hand this represents the vast potential

market for children products. On the other hand, it must be remembered that this age

segment is not capable of making purchase decision independently. The consumer

segment between 15-59 years age group comprises 66 percent of the population has

the capability to make purchase decision independently both in terms mental

competence and purchasing power.

Table 4.6 provides an insight into the workforce of our country. The table

reveals the difference in employment patterns between men and women. Besides

knowing the age, sex and literacy levels of target market segment, the marketer must

also know where they are located. Table 4.7 provides this information according to

states and is arranged in a descending order according to size of the population.

Classification of Working Population (1981, 1991, 2001)

Table No. 4.6

2001 1991 1981*

(Mn.)

Total workers ……………………. 402.5 306.0 242.0

Of which :

Rural ....…………………. 310.7 241.7 195.1

Urban ……………………. 91.8 64.3 46.9

Male ……………………. 257.4 218.6 179.3

Female …………………… 127.1 87.4 62.7

Main …………………… 313.2 28.9 220.7

Marginal ………………….. 89.3 27.1 21.3

Note: *Excluding Assam and Jammu & Kashmir.

Reference: Statistical Outline of India 2002-2003 Tata Services Ltd.

64

State wise Selected Demographic Indices-2001

Table No. 4.7

State

Decennial growth

of population %

(1991-01)

Females

per 1,000

males

Literac

y rate

(%)

Ratio of Urban

population (%)

Andhra Pradesh 13.9 976 66.1 27.1

Assam 18.9 932 64.3 12.7

Bihar 26.4 921 47.5 10.5

Goa 14.9 960 82.3 49.8

Gujarat 22.5 921 70.0 37.4

Haryana 28.1 861 68.6 29.0

Himachal Pradesh 17.5 970 77.1 9.8

Jammu & Kashmir 29.6 900 54.5 24.9

Karnataka 17.3 964 67.0 34.0

Kerala 9.4 1,058 90.9 26.0

Madhya Pradesh 24.3 920 64.1 26.7

Maharashtra 22.6 922 77.3 42.4

Manipur 30.0 978 68.9 23.9

Meghalaya 29.9 975 63.3 19.6

Nagaland 64.4 909 67.1 17.7

Orissa 15.9 972' 63.6 15.0

Punjab 19.8 874 70.0 34.0

Rajasthan 28.3 922 61.0 23.4

Tamil Nadu 11.2 986 73.5 43.9

Tripura 15.7 950 73.7 17.0

Uttar Pradesh 25.8 898 57.4 20.8

West Bengal 17.8 934 69.2 28.0

Delhi 46.3 821 81.8 93.0

All-India

(incl. others)

21.3 933 65.4 27.8

*Official projection and not census estimate

Reference: Statistical Outline of India 2002-03, Tata Services Ltd.

65

Table No. 4.8 provides projections on how the population is expected to increase. The

population is likely to increase from the 102.7 crores level in 2001 to more than 123

crores by 2011.

Population Projection (1991 to 2016)

Table No. 4.8

1991-96 1996-2001 2001-06 2006-11 2011-2016

Population (MN)* …….. 934 1,012 1,094 1,179 1,263

Rural …………………… 680 720 761 793 837

Urban ………………… 254 291 333 386 426

Urban ration (%) ……… 27.2 28.8 30.4 32.7 33.7

Expectation of life at birth

Male (years)…………….. 60.6 62.4 64.1 65.5 66.9

Female (years) ………….. 61.7 63.4 65.4 67.1 68.8

Birth rate (per 1,000) …. 27.5 24.9 23.0 20.9 Not

Available

Death rate (per 1,000) …. 9.4 8.4 7.8 7.1 Not

Available

Growth rate (per 1,000) .. 18.1 16.5 15.2 13.8 Not

Available

As on 1st March 961996 & so on.

Reference: Statistical Outline of India 2002-2003, Tata Services Ltd.

• Geographic Characteristics

India is a geographically vast country spread over 32, 08,825 square

kilometers and administratively divided into 28 states and 7 union territories. As per

2001 census, its 102.7 crore people live in 1,392 towns and 6.27 lakh villages. It is

indeed a daunting task for a marketer to ensure that his product is easily available in

all parts of the country all the time.

Table 4.9 presents a geographic profile of each state and each state in turn

forms part of a larger regional zone. One can use the information provided in this

table to segment the market on a geographical basis and plan one’s distribution

strategy. It is important to know not only the number of consumers but also where

they are located and their distribution among rural and urban area. It also shows the

66

number of administration districts that each state is divided into. Each district has its

headquarter and the town in which it is located is invariably a choice to set up a

distribution point, if there are no class I towns in a particular district.

Zone wise Geographic Profile 2001

Table No. 4.9

Zone / State Population (mn.) (‘000s)

No. of districts Urban Rural

NORTH ZONE

Jammu & Kashmir 2.5 7.6 14

Punjab 8.2 16.0 17

Himachal Pradesh 0.6 5.5 12

Haryana 6.1 15.0 19

Chandigarh 0.8 0.1 1

Delhi 12.8 1.0 8

Rajasthan 13.2 43.3 32

Uttar Pradesh 34.5 131.5 70

Uttaranchal 2.2 6.3 13

SOUTH ZONE

Andhra Pradesh 20.5 55.2 23

Karnataka 17.9 34.8 27

Kerala 8.3 23.6 14

Tamil Nadu 27.2 34.9 30

Pondicherry 0.6 0.3 4

WEST ZONE

Gujarat 18.9 31.7 25

Maharashtra 41.0 55.7 35

Goa 0.7 0.7 2

Daman & Diu 0.1 0.1 2

Madhya Pradesh 16.1 44.3 45

Chhattisgarh 4.2 16.6 1

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Zone / State Population (mn.) (‘000s)

No. of districts Urban Rural

EAST ZONE

Jharkhand 6.0 20.9 18

Bihar 8.7 74.2 37

Orissa 5.5 31.2 30

West Bengal 22.5 57.7 18

Tripura 0.5 2.6 4

Meghalaya 0.5 1.9 7

Manipur 0.6 1.8 9

Mizoram 0.4 0.5 8

Nagaland 0.4 1.6 8

Arunachal Pradesh 0.2 0.9 13

Sikkim 0.1 0.5 4

Assam 3.4 23.2 23

Reference: Census of India 2001 Statistical out line of India 2002–03, Tata Services

Ltd.

If the product or service, out of the total 1,392 towns in the country, the

number of class I towns is 11.6 per cent but they account for more than 74 percent of

the total urban population.

The largest numbers of towns (those which have a population of between ten

or twenty thousand) are 30.5 per cent which belong to class III category, but only 11

per cent of the country’s urban population lives in these towns. When planning a

marketing strategy, logically, one should first aim at the class I towns and only then

turn the attention towards town of other categories. This will help to maximize the use

of limited resources.

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Classification of Towns (1971 to 2000)

Table No. 4.10

2000 1991 1981* 1971

No. Of UAs. / Towns...... 1,392 3,768 3,378 2,590

Urban population (Mn.)........ 120.8 217.6 159.5 109.1

Urban as % of total..... 33.4 25.7 23.3 19.9

% of towns

Class I........................... 11.6 8.2 6.7 6.0

Class II......................... 11.7 9.5 8.3 7.0

Class III....................... 30.5 25.7 22.7 22.5

Class IV........................ 24.6 31.4 32.4 33.4

Class V.......................... 15.5 20.1 22.8 25.2

Class VI........................ 6.0 5.1 7.1 5.9

Total............................... 100.0 100.0 100.0 100.0

Agro Tourism as Special Interest Tourism:

SIT (Special Interest Tourism) is labeled in many different ways: sustainable,

localized, alternative, eco, environmental, low impact, new, responsible, respectful

and green tourism. Whatever is the name given to SIT or alternative tourism, it has

emerged out of concern for delivery of sustainable tourism.

SIT may be defined as provision of customized leisure and recreational

experiences driven by the specific expressed interests of individuals and groups. A SI

Tourist chooses to engage with a product or service that satisfies particular needs and

interests. So SIT is tourism undertaken for a distinct and specific reason.

Considering the above explanation agro-tourism is a form of SIT.

Characteristics of SIT

SIT is a complex phenomenon characterized by flexible delivery, market

segmentation and advances in technology affecting management and distribution.

Though it is small scale in nature, it has to deal with issues similar to those of larger

organizations within the tourism system. These include ensuring the delivery of

products and service based on ecologically sustainable development (ESD) principles.

69

SIT planners must direct more attention towards the need for balance in the

management of impacts, and to appropriate pace of development and community

consultation practices in planning and development of a destination.

It should take efforts to maintain the integrity of resources and a balance

between the tourist and the capacity of the attraction should be achieved.

High quality services and products are designed to meet specific needs and

large scale operation based on volume is not aimed.

A tourist behavior in SIT demonstrates a desire for authenticity and real

experiences that offers them active identification with host communities in a non-

exploitative manner. There is a active and conscious relationship between hosts and

guests, as individuals and communities in a way that does not degrade quality of life.

As in case of agro-tourism, the guest and host relationship is interactive and

learning based.

Considerations While Marketing and Developing SIT

Individuals have special interests. Some individuals are happy to share these

interests with others during their travel experiences. Others prefer to limit the number

of people with whom they come into contact while on holidays. They concentrate

their time, energy and other resources on satisfying a specific leisure aim that allows

them to engage with likeminded specialists.

Some individuals may have a serious interest in fine art and make extended

visit to art galleries to observe, sketch, meet artists or take master classes.

Alternatively, busloads of visitors may arrive at the same art gallery as a part of

generic tour, which on a given day could include shopping in a local market and visit

to a zoo.

Now-a-days there is demonstrable shift away from mass tourism to niche

tourism. People are more interested in unique activities, can devote time for special

interest areas. While developing agro-tourism as a form of SIT one has to remember

that social, cultural, economic and environmental costs are not too much. The scale of

development should be appropriate. Interests of the local people should be

safeguarded. Tourists should experience and understand the genuine culture of the

destination. Responsible treatment of the environment should be encouraged. Local

economy should get benefit from the tourism activity at the destination, socio cultural,

economic and physical harmony should be promoted.

70

Sustainability and SIT Development

Sustainability has an important bearing on the tourism development.

Sustainable tourism development is accommodated in the context of wider concerns

for community wellbeing. It implies satisfying the needs of stakeholders as well as

customers without degrading the quality of the environment, conservation and

enhancement of resources, revival in growth.

The number of special interest tourist remains low compared with those of

mass tourism. The issue of volume is fundamental problem for tourism development

and SIT or responsible tourism is seen as an alternative approach that addresses some

of the concerns for limiting the impacts of mass tourism. Managing the growing

impact of these alternative tourists who wish to experience the lifestyle and culture of

host community raises serious issues concerning planning, implementing and

monitoring development.

Some of the SIT forms like mountaineering and trekking which started with

low tourist volume, have now taken form of mass tourism. Especially in Himalayas

where tourism is a major source of revenue, more number of tourists compared to

carrying capacity has posed a serious threat to the ecological balance in the region.

Agro-tourism development has a direct effect on culture and the life of the host

community. A thought should be given to the development policy, so as the tourism

development does not bear the ill effects of mass tourism. Income from tourism would

always be a supporting income to the major revenue generated from core agriculture

activities. So it is not totally depended on the tourism revenue.

The tourism industry must be profitable and environmentally sustainable if it

is to provide long term benefits. But this will not be achieved without a new and

different approach to industry planning and development. An approach that

acknowledges the interdependence of tourism, culture and ecology and that seeks to

enhance the benefits of tourism and eliminate its negative consequences should have a

value based approach to tourism planning, management and marketing.

Factors Influencing the Development of SIT.

People now have increased leisure time. Advance in technology right from

computers to transport, people have greater opportunities for disposal of their

discretionary wealth. Leisure activities are pursued not only at home but also on

holidays. This factor is considerably contributing to the development of SIT.

71

The other trends contributing to the development of SIT are shorter work

weeks and longer paid holidays, more public holidays, refinements in the mode of

transportation. The tourism market has responded to these trends by developing

shorter, more frequent and more intensive tourism experience. Agro tourism which

can be a day visit or a short stay for one or two nights is one such tourism

development by market demand. Tourists are also prepared to spend more but stay for

shorter periods, which can provide better returns for tourism investment.

The link between personal interest and holidays is close. Holidays not only

include change of scenery and climate but it also needs fulfillment by personal

interest. Time poor but money rich consumers will demand satisfaction and personal

development from precisely tailored, flexible products.

Marketing SIT

SIT like any other tourism sectors is market driven, responding to specific

needs of tourists. Rapid changes have been seen in the ways tourists with particular

interest now access the Internet. Service providers give as much information possible

on the net for customers. So even before they meet first both the parties know about

each other. Both parties have greater expectations with explicit information on sites,

destinations and services and with personalized contact already established.

SIT businesses can use ten value segments identified by Roy organ in

conjunction with Oglivy and Mather (cited in Dickman 1997)

SIT Value Segments

SIT Value Segments

Table No. 4.11

Sr. No. Value Segment Features

1. Basic Needs

(4% of the

Population)

People who hold traditional views of life, enjoy

passive activities are fairly satisfied with their life.

Generally retired, pensioners, and people with low

income group fall in this segment.

2. A fairer Deal

(5% of the total

population)

People who are relatively dissatisfied with their lives.

They are pessimists, cynical and insecure. They think

everyone else has fun and they miss out.

72

Sr. No. Value Segment Features

3. Conventional

family life

(12% of the total

population)

Life revolves around the home and giving children

the life opportunities they deserve. They place a high

value on time with family and friends. They strive for

financial security and see making money as a way to

secure their lifestyle.

4. Traditionally

family life.

(19% of the total

population)

They are the over 50 empty nesters. They retain a

strong commitment to family roles and values and are

interested in their extended family. Life centers on

home, garden and traditional activity.

5. Look at me.

(13% of the total

population)

Young, active and unsophisticated, they are self-

centered, peer-driven and looking for fun and

freedom. They seek prosperous life and are generally

unmarried. They take their leisure activity seriously.

6. Something

Better

(8% of the total

population)

Probably well educated, they have responsible jobs,

feel confident, ambitious and see themselves as

progressive. They want all good things of life and are

prepared to overextend themselves financially to

have things now rather than later.

7. Real

Conservatives

(7% of the total

population)

They view themselves as conservative in most things.

They are asset rich, but income poor, they are

interested in security, tradition and stability. They

hold conservative social, religious, moral and ethical

views.

8. Young Optimist

(8% of the total

population)

They are generally optimistic about the future and

most likely to view themselves as middle or upper

middle class. They are today’s students, computer

technologists and professionals. They are career

building and travelling.

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Sr. No. Value Segment Features

9. Visible

Achievers.

(16% of the total

population)

Generally over 30 years of age, they enjoy above

average incomes, want personal recognition of their

success and are interested in collecting visible signs

of achievements. They believe they are in control of

their lives. They have a strong focus on themselves

and their family needs and desire.

10. Socially Aware

(10% of the total

population)

Socially responsible, community minded people, they

are likely to be involved in community activities and

environmental groups, and believe they are

progressive and open minded. They are early

adopters of products and ideas.

It was suggested in the study that the providers of specialist tourism should

probably attempt to reach groups 4, 5, 8, 9 and 10 i.e. traditional family; Look at me,

young optimist, socially aware. Segmentation represents a powerful marketing tool

because it creates visitor identification. Since the tourist segments participating in SIT

are not homogeneous the strategies for marketing can vary greatly.

As in case of agro tourism, the farm owners are still conservative in nature.

The rural community can allow only certain kind of tourism development irrespective

of the type of tourist segment that can be attracted. It was observed during the visits to

agro-tourism destinations that the owners prefer families, ladies groups and children

and only male groups were strictly banned irrespective of their age group. Though the

potential for corporate groups is seen as a tourist segment the facilities provided by

the farm owners could not match the demand of the corporate segment.

SIT products offer customized packages of experiences developed for niche

markets. These products provide unique insights into particular destinations,

communities or bodies of knowledge. The emphasis is on experiencing rather than

merely seeing landscapes and lifestyles. In case of agro tourism it also provides a

guest an insight into rural culture and lifestyle. The experience is not limited to

beautiful landscape or form activity participation, it goes beyond that. It allows the

visitor authentic experience, and involvement with local people.

74

The agro-tourism service provider should keep in mind following points.

• Must recognize consumer as an individual and understand individual needs.

• Should be knowledgeable and is willing to share that knowledge with the

consumer.

• Should be trustworthy and sincere, fast as in personal relationship.

• A personal rather than commercial relationship should develop that is efficient

but relaxed, and warm but competent.

Ideally speaking staring up of SIT business requires research. A niche must be

identified though observation, personal experience. Usually people tend to follow

business pattern which is successfully run somewhere else. While developing agro-

tourism the farmer community largely follows the pattern of successful developed

model and seeks personal guidance from the successful entrepreneur.

Baramati Agro tourism destination “Malegaon Sheti Farm” is one such

example which has inspired other farmers to follow their development pattern. Here a

trust is created and agro-tourism is a well developed activity with the help of “Krushi

Vigyan Kendra” an NGO funded by Government. Similar pattern in the region is

followed at Phaltan where a trust is formed to develop agro tourism.

Another example of following a successful entrepreneur is seen at Gholevadi

(Tal: Dahanu) Dist. Thane. An agro tourism destination developed by Mr. Anil Save

has inspired Mr. Sawant from Rajwadi (Sindhudurga Dist.) Mr. Sawant has worked as

Electrical Engineer for 25 years and after retirement he has planned to start agro

tourism at his ancestral land in Sindhudurga. It’s a venture which would be supported

by his joint family. He attended a seminar conducted at Mr. Save’s farm and joined

Konkan Pratisthan for further consultancy and development. Rather than making

money, he thinks going back to roots is more important. He would like the next

generations to gain knowledge and benefit from his experience.

The major difference in agro-tourism marketing and development in India and

abroad is a way of looking at it as a purely commercial venture and sharing a piece of

life style with love and affection. The rural community and especially farmers in India

consider their profession (farming) as a noble one. For them the land which is their

sacred mother is gifting them food grains and they are deeply attached to it. Mostly

farming is done on ancestral land and the tradition is passed on to the generations. So

75

it no longer remains a profession, but it becomes a culture which is always welcoming

“guests” i.e. “Athithi Devo Bhava!”

So the marketing strategies and development models put forth based on

foreign surveys and studies would not be much applicable in Indian context. But still

there would be certain consumer behavior trends that could be referred to as common

factors for any kind of tourism development.

The values and lifestyles of the “new consumer” are reflected in the tourists

who are well-educated, better informed, more independent, flexible, spontaneous and

unpredictable. Such tourists tend to demonstrate a “see and enjoy, but do not destroy”

attitude. With more travel experience comes a desire for quality experiences and a

variety of specific activities to satisfy personal interests.

With changing values has come an interest in being rather than having a

sensitivity to the biophysical and cultural environment, an appreciation of things that

are different, an eagerness to participate and a search for the real or natural. Greater

flexibility in work hours, higher incomes and frequent short breaks means that travel

has become a way of life. Consumers wish to be in charge during their free time and,

in an attempt to be different from the crowd, are more likely to take risks.

SIT or REAL travel consists of four major elements – Rewarding Enriching,

Adventuresome and Learning experiences. Individuals participating as special interest

tourists, like to satisfy their curiosity, learn more, appreciate beauty, collect things,

improve themselves, express their personalities and receive approval from others.

They generally wish to be the first in everything and recognized as authorities and

influential, so as to have a good story to tell of their experience. They set trends for

new things. The self is at the centre of modern consumer society. It ties together

issues of choice, identity, status and culture.

Noticeable trends into tourism consumer behavior are:

• A shift in interest from traditional tourist attractions to special interest

products.

• A move from mass tourism to a demand for personalized and sophisticated

tourism with a wide range of quality choices.

• A growing commitment to the integrity of regions natural and built

environment, and the accompanying landscape and culture.

• An interest in nostalgia and acknowledgement of heritage.

76

• Increasing number of short stay visits.

• A growing awareness of multiculturalism.

• Increasing interest in the diversity of art form practices.

• Greater interest in experiencing rather than passive entertainment.

• Greater desire for accessibility authenticity, ritual and spectacle.

With the encouraging trends in tourist behaviors towards authencity and

different experience, the development scenario of agro tourism looks favorable.

Agencies (NGOs) like MART, ATDC are trying to gather the farmers and encourage

them to implement new ideas to attract more customers. These agencies also try to do

a collective marketing for farmers and establish a forum to put forth the demands of

the farmers for developing agro-tourism.

But while developing agro-tourism one must not forget that it is community

based tourism. Rural communities would welcome guests if they are assured that its

tradition and identity preserved for generations is not invaded by the tourist culture.

Where communities have developed festivals, events and rituals reflecting the

lifestyle choices of residents there can be resistance to the commercialization of

activity that has become a way of life.

In a carefully controlled scenario agro-tourism or any other SIT can be an

opportunity to revitalize a community culture. The activities could be fairs, festivals,

local sports, agricultural shows, pottery, local cooking or other artisanship. It can also

be agriculture related activities like fishing, animal farms, bee keeping, silk

production and weaving which generate interest amongst the tourists. Revenue thus

generated by such activities has significant implications for regional economic

development.

SWOT Analysis of SIT

• Strengths

1) Labour intensive, can generate employment opportunities through local activities.

E.g. Agro tourism is based on agriculture activities. Any supporting activity to

agriculture to attract tourist e.g. bee keeping and honey collection would require

additional manpower. If locals are trained then such additional income can be

distributed amongst local community.

77

Tourists require food and shelter (accommodation) for which manpower is

required. Local employment can be generated and trained which means it can also

develop skilled manpower.

2) Small scale Operations: Mostly SIT is designed to cater small number of tourists.

As in case of agro-tourism the number of visitors catered in a day would not be in

thousands. It would be a small scale operation, involving family participation and

support. The infrastructure used would be simple and cost to operate is usually

low.

Also in terms of investment required is not large scale. Locally available material

is used to develop tourism infrastructure.

3) Capitalize on educational, interpretative and participatory activity – Guest-host

relationship in agro tourism is very close. A tourist is not a mere spectator of

activities but is also a part of it. There is the close interaction between a guest and

a host. A host is in a role of a guide or a teacher who would like to educate the

guest. A guest is also willing to experience and learn new things. So it is a mutual

benefit for both.

4) Capitalize on personal strengths, skills and experiences of entrepreneurs – A good

communication, knowledge about the ongoing farm activity and ability to connect

to the people is a big strength. A farmer must make his experiences interesting for

the guests. Guests are usually curious even in the routine activities carried out at

the farm. Being polite and hospitable always adds warmth.

5) Can offer variety of activity and lifestyle choices – Farming is only one of the

activities, in agro-tourism. Basically the guest is looking at an experience of a

rural culture and life style. Just sitting on a swing tied to a tree can be very

exciting for a guest, a buffalo ride, handling old utensils and kitchen aids like

‘Musal’, ‘Jate’, and ‘Wili’ can take a guest in a different world.

Also a variety of lifestyle can be offered ranging from simple bed and breakfast in

the house to tent or tree house accommodation can be enjoyed. Sitting down and

eating on banana leaf can be a very different experience. A day with a host with

his routine can provide enough excitement for a guest tourist.

6) It is a more sustainable form of tourism – The environmental and cultural

sustainability is possible as it is not a mass tourism. Ill effects of mass tourism can

be avoided as the farmer is not completely depending on the income earned from

agro-tourism. So he can very well decide a break – even and think of catering to

78

limited number of guests, so that the daily activities of the farm and the rural

community are not hampered.

Also in most of the cases the material used to furnish accommodation and food to

the guests is locally available. As the number of guests to be catered is limited, it

does not put extra pressure on carrying capacity.

• Weaknesses

1) Lack of data on tourism assets, need for research and audit of resources –

unfortunately a systematic records of resources and its use is lacking in Indian

context. Now-a-days few NGOs like Konkan Vikas Pratisthan are trying to make

audit of natural resources available and its optimum use. If the entrepreneur is not

aware of resources, the optimum use is not possible.

2) Poor networking and co-operation between players – The distribution channels

and the suppliers i.e. the agencies who could reach the customers (guests) and

hosts (farmers) is not well co-ordinated. In India the farmers are not well

educated, there would be few who are well versed with technology advances and

the importance of networking for growing business.

Few who try to reach people through web sites and agencies like MART and

ATDC do get their market share, but due to lack of knowledge the farmers

hesitate to join.

3) Lack of professional, marketing and finance expertise. There are few successful

farmers who try and share their experiences and knowledge with others. But a

systematic recording or a project report in a concise format is hardly available. So

detailing of finances and break-even are not available. Usually the development

of agro-tourism occurs in a random manner depending on the perception of the

owner.

4) Seasonal limitations on tourist visits: Though the revenue generated from agro-

tourism is not a major source of income for the farmer, it is a supporting source of

income in a period of uncertainty. Certain amount of capital and manpower is

invested and returns are expected. But sometimes there are seasonal limitations

e.g. in heavy monsoon season tourists are unlikely to visit an agro-tourism

activity. Also road conditions in rural areas limit the access.

5) Inadequate public transport service and infrastructure in rural areas – Accessibility

is a major issue in rural areas. The public transport frequency and quality is not

79

upto the mark. Unlike other developed tourism destinations where rail, road and

air transport is easily available.

Basic infrastructure like good roads, electricity, and potable water are other

necessary factors are also required for tourism development. In rural areas these

may not be granted as a must have. This could seriously put the whole

development at a stake..

6) Inadequate signage (e.g. lack of internationally recognized symbols): To reach a

destination proper road signs and boards are essential. Indication of accurate

distance, cross-roads and turns help in finding direction.

We find in rural areas the small villages and wadis are never significantly

mentioned on road signs and it becomes teadious for the first timer to reach a

desired destination. This may discourage a visitor.

7) Contact between host community and visitors can have poor social impacts, with

number, range and scale of visits and can cause ambivalence about tourism by

locals, hostility towards tourists may increase.

As the guest-host interaction is very close, there may be increased pressure on the

community to bear the host interaction all the time. Usually rural communities are

more conservative and may take the interaction in a negative manner.

Sometimes the guest invades a thin line between being curious and being too

inquisitive. The dressing sense and the language used by the guests may be

offensive for the hosts.

• Opportunities

1) Offers chances for authentic lifestyle sharing through personalized small scale

operations that involve mixing with and meeting local people. A tourist visiting

agro-tourism is willing to experience a different culture and lifestyle. He is an

educated tourist who values the host culture and wants to be a part of it.

For most of the guests, it is going back to their roots and get nostalgic about the

things they have to experience. One does not expect a resort type experience on

such a holiday. But a small, cozy, homely atmosphere with personal touch is

sufficient.

2) Community as a whole can benefit, placing the cultural tourism at the heart of it.

Agro tourism can be seen as an opportunity to develop a cultural tourism in the

80

local rural community. Rural tourism encompasses cultural tourism and agro-

tourism. So scope of development can be broadening.

3) Breaks the seasonal cycle of tourist’s visits by introducing special events or

attractive elements – In low tourist seasons, activities like local fairs and festivals

can attract the tourists for day visit. The seasonality factor in tourism which

bothers all the tourism operators can be toned down to certain extent.

4) Combining agro tourism with other forms of SIT – Combining agro tourism with

adventure tourism, pilgrim tourism or yoga or naturopathy is possible. This will

add value to the product and will help in product development.

5) Conservation of local heritage and culture – The small local heritage sites can be

preserved and they could be possible tourist attractions. This would encourage

more tourists who are interested in heritage tourism.

• Threats

1) Commodification of cultural products – authenticity compromised: There is

always a fear of staged authenticity and loss of true culture while developing

tourism product. Over exposure of host community to guest culture can influence

the host culture. They may try to imitate the guest behavior. In the bargain the

authentic behavior is suppressed by the put-up show for the guests.

2) Exploitation of natural resources through pressure on carrying capacity

(degradation of location) – In the process of destination development and

attracting more guests, one must not forget that the destination should not degrade

due to over use. At some famous tourist destinations (e.g. Mahabaleshwar) mass

tourism has led to stress on local infrastructure and ecology. Over use and no

breathing period has damaged the natural resources permanently. Air, water and

noise pollution has added to the problems.

A SIT which is a niche segment has limitations in terms of carrying capacity. In

that agro tourism which is a community based tourism can face a challenge from

local people if it is over exposed to the tourists. People may feel that they are

deprived of their privacy and rights over the natural resources.

3) Lack of ability to locate sufficient investment – For development of any tourism

destination sufficient investment from all players e.g.: government, operators are

essential. Agro-tourism located in rural area always gets the last attention by the

government when it comes to infrastructure development. Roads, transport, water

81

and electricity are major investments required by the government. But often lack

of sufficient investment turns down an opportunity for tourism development in a

remote place.

Also the operator due to lack of knowledge about financial investment and its

return could hesitate to invest. Sometimes even he cannot afford to invest.

4) Competition from other (domestic and international) regions – Competition in

healthy sense is good for business, but when a market segment is limited too many

players in the same business can lead to a cut throat competition. There are local,

regional and international destinations luring people with attractive offers. With

the limited resources a small local tourism product (e.g. agro-tourism) may not be

able to compete at a state or national level marketing.

5) Lack of co-operative information sharing: An established tourism operator may

not be willing to share information with other aspirants wanting to start the same

venture. It may be regarding project cost, customer needs and market needs. If

such vital information is not shared the mismanagement of new venture and lack

of business could lead to closing down a venture.

Maintaining a Balance While Developing SIT

Minimizing tourisms negative physical impact is a challenge. Stake holders at

all levels should look for balance. They should seek to maximize the local economic

and social benefits of tourism through sound and appropriate strategies, using

approaches that integrate the environment into tourism policies and plans. This should

ensure the application of appropriate management tools and techniques and the

incorporation of training and education methods that empower monitor and evaluate

impact.

Partnership for sustainable tourism involve, business strategies allowing for

the development of codes of good practices, voluntary actions and audits leading to

environment oriented management. Linking supply and demand through innovative

marketing strategies places greater emphasis on information sharing, collaborative

projects, and involvements of media. Public participation in sustainable tourism will

allow for greater sensitivity of development, response to visitors needs and

encouragement of community based initiatives.

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Sustainability Aspect in Tourism Development and Marketing

While developing and marketing a tourism destination one must consider in

detail the issues relating to host communities and to the tourism destination, and the

notion of impacts, both positive and negative on the social and natural environments.

Also role of tourism in community and community development should be defined.

The idea of quality life, what this concept means and how can it be applied in the

planning and management of SIT should also be elaborated. Visitors’ impact

management, the approaches and the tools designed to assist in the monitoring and

evaluation of the impacts of visitors on places and people would also be the part of

sustainable management.

SIT as a More Sustainable Form of Tourism

SIT can be defined as ‘the provision of customized leisure and recreational

experiences driven by the specific expressed interest of individuals and/or groups”.

SIT tourists are seeking more “authentic” experiences that enable closer

interaction with the host community in a non-exploitative manner, along with more

personalized service. This can raise questions like: Is it that markets and options for

tourists are now more sophisticated and is SIT merely meeting market demand? What

is authentic and what is appropriate? How should ‘culture’ be presented? Does the

host community actually want close and meaningful interaction with the

visitors/tourists?

This raises the further issue of whether tourism is for the benefit of the tourist

or for the local economy and hence the local people? If tourism is a part of

community development and serves the same role as any other industry – providing

employment and income – should it be managed in the same way as other industrial

activities are managed, with special zones and planning regulations? If confined, it

would mean locals whose business do not relate to tourism, and who often consider

tourists an intrusion, would be less affected by visitors. It would also greatly reduce

environmental impacts and enable a greater user – pays approach so that the locals

would not be paying for the services associated with tourism business and the tourist

facilities.

This leads to the ethical question of rights of access to public goods. Do

visitors who have long and productive association with an area have fewer rights than

a newly settled person? Who are the visitors and who are the tourists? Who are the

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locals? What activities and services of tourism are related to? As SIT becomes more

embedded within the local context and is more personalized; it attempts to move

beyond the touristic experience into a host/guest relationship. Would the commercial

realities of tourism allow this to happen?

Questions about culture and appropriate and sustainable use of social, cultural

and natural resources can raise many criticisms on SIT. These suggest that its many

forms like adventure tourism, rural tourism, indigenous tourism, eco tourism, wild life

tourism and so on, are as prone to creating negative social and environmental impacts

as any other form of tourism. A good example may be drawn from Himalayas. Before

1965 fewer than 10,000 tourists visited Nepal each year. By 1996 the number

increased to more than 2.5 lakhs. In Annapurna nature sanctuary the tree line is

eroded by hundreds of meters, as locals are cutting down trees for firewood to sell to

the trekkers and lodge owners. Populations of certain species of fauna have declined

and litter and water pollution have increased. Although the visitors here would

consider themselves nature tourists, ultimately their presence has degraded or

destroyed the natural resources.

As a tourist, we want to travel to exotic, wild and beautiful places but are

outraged by the impact of large number of fellow humans doing likewise. Tourism is

growing at a faster rate than other industries. This trend is likely to continue, but the

challenge is for the growth to be managed in a sustainable way. In reality, it is

difficult as we are threatening the very places we admire – the coastlines, the

rainforests and the vast wilderness. Although SIT encourages travel to places like

Antarctica or into villages in remote places, it brings with it the social and ecological

impacts of human activity, development and modernity.

A consequence of the growing popularity of SIT and of initially small number

of ‘alternative tourists’ exploring previously unvisited places – whether they be

remote or urban, in developing or developed nations, is ultimately to open these

spaces for mass tourism. The alternative tourist will then seek to penetrate even

deeper into unspoiled places. SIT is often small scale and locally based. It can be

related to local character through rural tourism, to people through indigenous tourism,

to heritage through cultural tourism and to natural environment through eco tourism.

Agro tourism which is a part of rural and cultural tourism may face the similar

dilemma while developing. Though it is still in its nascent stage, looking at the pace at

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which the tourism is developing a thought has to be given to sustainable development

aspect to avoid the negative impacts of tourism.

Concept of Sustainable Development

Mass tourism is one result of an improved lifestyle. Tourism is considered a

relatively ‘clean’ industry compared with other forms of economic activity. But, it is

largely responsible for the massive increase in international air travel and with it a

great deal of development, often in the most fragile eco systems, such as coastlines,

rivers and wetlands.

SIT is not considered as a mass tourism phenomenon, but still it is making its

impacts. To understand the impacts of SIT, although understanding of the broader

concept of sustainable development is essential. Increase in our standard of living and

the consequent increase in human activity can be seen with the increase in:

• Industrialization in all countries in the past several decades.

• Population

• Urbanization

• Globalization

• Air and water pollution

• Waste generation

• Soil erosion

• Loss of wetlands and agricultural land

• Deforestation

• Desertification and salt intrusion.

• Global warming and sea level.

If the tourism development is to be sustainable, it must be environmentally

responsible by embracing a more ecological and balanced approach. This requires an

understanding of biological processes, ecological principles and the sensitivities of the

biological systems of which humans are a part.

Tourism usually encourages high and unsustainable energy usage in

developing as well as developed areas. It demands high use of resources like water

and prime agricultural land. It also creates awareness, expectations and demands for

western standard of living with its high resource consumption in the developing

countries with their often massive populations. This alone is a good reason for tourism

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to strive to demonstrate truly sustainable development rather than promoting excess of

luxury. Agro tourism which is a recently developing concept in Maharashtra is a form

of SIT. While developing the concept, in the current scenario, it is possible to draw a

master plan on the sustainable development guidelines. The current development is

seen in the form of individual effort and everybody has their own guidelines. The

forms are ranging from one acre to hundred acres. From individual owner to a

registered trust. In some places the community is still resistant to such form of

development. It is not only about the ecological and resource cost, but it is also about

the cultural sustainability. The NGOs like Konkan Krushi Pratisthan and MART had

laid down rules and regulations for its members wishing to join their marketing

efforts. Rules like obtaining permission from local authorities i.e. “Sarpanch” and

community to start an agro-tourism project ban on alcohol consumption in the farm

premises, following community norms etc.

The very essence of agro-tourism is giving tourist a real life experience and

simplicity of rural life style. There would possibly be no scope for luxurious amenities

and western influence on the overall development. Basic, clean and hygienic

accommodation with local food is required. Resources used are available within the

local limits and consumption of resources is not conflicting with local priorities. But

to give it a future direction a careful planning is required. It should not turn into a

mass tourism activity.

In the new millennium the overall status of global environmental system is

worse. A special session of the General Assembly of the United Nations in 1997

acknowledged that “a number of positive results have been achieved, but we are

deeply concerned that the overall trends for sustainable development are worse today

than they were in 1992.”

Many concepts have been well developed in the literature on sustainable

tourism. These include:

• The notion of carrying capacity.

• Limits of acceptable change and acceptable use.

• Maintenance of sense of place.

• Host/guest relationship.

• The debate on authenticity and commodification of culture and place.

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• The debate on ethics of tourism, particularly in developing countries and areas

where populations are more vulnerable and impressionable to the

demonstration effects of visitors from wealthier nations.

• The idea of destination life cycle.

In all of these areas the debate centers on different principles of sustainable

development; the tension between economic rationalism and other value systems; and

the dialectic between spatial, temporal and ethical approaches to tourism planning and

development. These approaches include supply versus demand, global versus local,

small scale versus large scale and local versus imported (goods, services and labour).

The challenge lies in utilizing these concepts to help make the practice of tourism

sustainable.

In 1995, the World Tourism Organisation, the World Travel and Tourism

Council and the Earth Council adopted a joint declaration ‘Agenda 21 for Travel and

Tourism Industry: Towards Environmentally sustainable Development.” This draft

action program for the tourism includes the principles outlined below:

• Tourism should help people live a healthy and productive life in harmony with

nature.

• Tourism should contribute to the conservation, protection and rehabilitation of

ecosystems.

• Protection of environment should be an integral component of tourism

development.

• Tourism should be planned at the local level and allow for the participation of

local people.

• Tourism should recognize and support the identity, culture and interests of

indigenous people.

• International agreements to protect the environment should be respected by the

tourism industry.

The essence of developing niche tourism is escaping the ill effects of mass

tourism, educating tourists and to achive a balanced development of the region. But

not all forms of niche tourism have successfully followed the rule. Some forms of

adventure tourism like trekking in Himalayas, Island tourism (coral reefs and

beaches), wild life tourism have seen the massive setbacks in the form of polluted

waters (destruction of coral reefs), cutting down forests for woods (Himalayas),

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displacement of wild life (in sanctuaries). This is mainly because the principles

discussed in Agenda 21 were ignored while developing the tourism. Aggressive

marketing strategies made on the assumptions that more visitors will necessarily

result in greater gain has proved wrong. It has not considered the large amount of

additional infrastructure required such as roads, public transport, utilities, services and

facilities. These create considerable expense for local rate payers, and over burdens

existing systems designed for steady population growth rather than massive seasonal

influxes. Crowding congestion, increase in crime and pollution can be added to these.

Investors and employees are often not local; goods and services are often

imported. This means the promised economic benefit frequently ‘leaks out’. These

pressures contribute to a sense of loss of control and loss of place by residents of

popular destinations who do not necessarily see tangible benefits. What is the ‘social

carrying capacity’ of a community to cope with the constant pressure of visitors? The

negative social effects are more marked in developing countries and regions with

more traditional, social and cultural values.

The factor of negative impact is more valid in case of agro-tourism

development. The acceptance level of rural community towards changes brought in by

tourism should be counted. Rural community is more conservative in nature and

would want to preserve their social and cultural values. So care must be taken that the

tourism product is farm activities and allied authentic experiences and not the rural

people/community. Ever increasing numbers of visitors can also lead to the trap of

“profitless volume”. This can affect on individual business in many ways such as

recurring capital expenses for only a marginal increase in visitor numbers. It can also

affect whole areas by requiring a massive new capital investment for basic

infrastructure beyond the return, or infrastructure increases that create changes in

patterns of normal life.

There is very little research to demonstrate that ‘nature based or cultural

tourism’ is socially, culturally and environmentally benign. But numerous studies

show that even the most lightly trodden path of tourism can destroy fragile soils and

flora and fauna can be adversely affected by merely being watched. “Kass Pathar”

near Satara and ‘Valley of flowers’ in Himalayas are good examples of this. The “take

only photos, leave only foot-prints” ethic of eco-tourism can be highly disruptive to

the lives of many people who do not welcome the ‘invasion’ of visitors. This is

particularly so when over inquisitive photographers are attracted to more sacred

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ceremonies and intrude on private life. This type of tourism can often set up conflict

within communities, usually between those who object and those who stand to profit.

An example of this was seen in my interview with “Dr. Arvind Rabba” a

progressive agro tourism farmer from Akkalkot. This remote village was never on a

tourism map. Being a scientist by nature, using his knowledge about plants and trees

he started planting new varieties of exotic fruit orchids like dragon fruit. To protect

the orchids he decided to build a compound wall around his 30 acres of farm. Initially

the villagers opposed the construction of wall and even discouraged his project as

they were resistant to the change. When foreign tourists visit his farm the villagers are

reluctant to interact with them and see the project as disturbance to their lives.

On the contrary an agro tourism project at Bhilar has taken a step towards

community development through development of agro-tourism. Initially only one

agro-tourism project with strawberry farming was started. It was so successful that the

other farmers in the village also started on the same lines. The economic benefit was

so attractive that the youths of the village who were working in cities due to poor

agriculture income returned back to the village. Now the whole community has taken

positive steps to develop new agriculture concepts to attract tourists.

The other main issue of sustainability concerns tourism’s pervasive nature and

the uncertainty of development over space and time. Once tourism development starts

it usually prompts further development, each stage justifying and/or necessitating the

next. This is one of the main concerns while developing SIT. Tourism is highly

competitive and very seasonal, so economic returns take precedence over ecological

concerns such as the maintenance of bio-diversity. The natural environment becomes

increasingly vulnerable to short-term economic decision making.

The issue of economic dependency on tourism in case of agro-tourism

development is little valid. Mostly the farmers who started agro-tourism were already

earning income from farming. Income generated from agro-tourism activity is a

supporting income. So the chances at economic returns putting pressure on

development are less, unless complete reliance of farmer is on the agro-tourism

income.

The concept of carrying capacity was first developed in 1940s in the field of

agriculture and wildlife management. In more recent years the idea has been useful

tool for tourism planning when considering ecological and social impacts. Ecological

carrying capacity in relation to tourism is level of visitation beyond which the

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satisfaction is not achieved because of overcrowding, noise, aesthetic deterioration of

limited access to services. For the host community, the social carrying capacity is the

level of visitation beyond which unacceptable changes occur – this can be physical,

cultural, economic, ecological or psychological. In each case, the carrying capacity

will vary according to a range of factors such as season, weather conditions, type of

activity, and time of day and so on, it is very site and activity specific and highly

subjective.

A tourist wishing to visit agro-tourism destination is also expecting calm,

peace and authentic rural surroundings. Too many visitors on a small farm at one time

may spoil the whole idea of the visitor. Also for the host too much interaction with

too many guests at one time is not a good idea. It is not like a resort where you check-

in a guest and leave him to enjoy himself. Both the guest and the host can enjoy the

interaction, if it is close, warm and personalized. So in a way social carrying capacity

for visitor and host is an important consideration. Most of the farmers seem to have

understood this important aspect and have a set number of tourists to visit every day.

Also some have policy to screen the guests while accepting the booking itself.

The carrying capacity model is attractive, but determining these limits

scientifically, socially and politically is difficult. Everyone will be affected differently

and will have a different idea about what is acceptable. The process of applying this

model is also expensive, so usually the limits are never determined. However, nature

does have limits, and tourism must be planned to recognize them. Tourism planning

and development needs to be integrated into broader bio regional planning, rather than

just local government or tourism region planning. Ongoing social and environmental

impact assessment are necessary.

Tourism needs to be managed to maximize both visitor satisfaction and local

distribution of benefits. The indicators of successful tourism need to be broadened

well beyond the current economic indicators, so the goals reflect other values and the

various planning processes incorporate them. No single blue print will be found for

this as economic and social systems and ecological conditions differ widely among

countries.

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