International Journal of Trends in Commerce & Economics
Volume 1, Issue 6, 2014
© Naik & Khan
An Outcome of Road Transportation and Highways in
Sustained Growth of Tourism - an Overview
Balachandra Naik, Research Scholar, Bharathiar University, Coimbatore
Dr. R. Y. Khan, Principal, Principal Investigator & Research Guide, Govt. First Grade College, Sirsi
ABSTRACT
The study provided a brief discussion on Road Transportation and Tourism Development. This
Paper examines the relationship between transportation and development of tourism. The
attempt is made to qualitatively test of the relationship between presence of transportation
measured by road connectivity and road condition and tourism development measured by
location national parks. The major findings of the study is that road transportation is a
significant determinant of tourism development. The study focused the potentialities of Road
transportation for tourism development. The study also discussed the benefits of tourism in
India, tourism resources, short coming & necessary actions for developing tourism, tourists
arrivals etc. The study highlighted the development of Indian tourism in relation with road
transportation development.
Key words:
Road Transport, Highways, Tourism, Development, Travel.
INTRODUCTION
Transportation is an essential part of the tourism industry and it plays an important role as
well. Traveling would be impossible without road transportation. Expansion of tourism is the
outcome of improvement of transportation. Tourism has been trying to meet the demands of
the tourists and that means improving the transportation facilities and building better transport
system including high quality highways. Transportation and the advanced vehicles have made
travel to all the concerns of India. It had brought tourism to a whole new level. The State with
an efficient road transport is opening up tour packages.
GENERAL BACKGROUND
Tourism is all about travel and the role of transportation in its operation is visited. It is largely
due to the improvement of road transportation that tourism has expanded. The road
transportation has made travel to anywhere possible. India’s road network of 3.34 million km
International Journal of Trends in Commerce & Economics
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is the second-largest in the world. Out of this, national highways account for 65,569 km, state
highways for 130,000 km, and major district roads, rural and urban roads collectively account
for 3.14 million km, as per statistics with the Ministry of Road Transport and Highways.
According to the ministry, roads remain the most important means of transport, accounting for
85% and 65% of passenger and freight traffic, respectively, in India. Broadly, the road
network in India is divided into the primary system comprising national highways and the
secondary system made up of state highways and major district roads. In addition, the network
comprises expressways as well as rural and other roads. National highways account for a
mere 2% of the total road length, but carry 40% of the total road traffic. Economical for short
distance -road transport is economical for short distance. Again, the loading and unloading
charges are reduced due to direct transportation. Where the distance is short, road transport is
not only economical, but also quicker .Low investment - road transport requires low
investment. The vehicles such as trucks and tempos cost comparatively less as compare to
trains, ships and aero planes.National highways account for a mere 2% of the total road length,
but carry 40% of the total road traffic. Between 2006 and 2009, the national highway network
increased by 4,000 km and the state highway network increased by 170,000 km. Of the total
length of the national highway network, about 27% is single-laned or intermediate-laned, 54%
is two-laned and 19% is four-laned. The Ministry of Road Transport and Highways is
planning to seek credit worth USD 2.96 billion from the World Bank for the conversion of
single-laned, intermediate-laned and two-laned roads covering a total length of about 3,770
km. The project is scheduled for completion in 2014. The state highways and major district
roads carry 40% of total road traffic and constitute 13% of India’s total road length. The 11th
Five-Year Plan (2007–2012) has projected an investment requirement of USD 8,613.95
million for the development of rural roads under the Pradhan Mantri Gram Sadak Yojana.
The government provides various incentives for private and foreign sector investment in the
roads sector. 100% foreign direct investment (FDI) under the automatic route is allowed for
support services to land transport such as operation of highway bridges, toll roads, and
vehicular tunnels; services incidental to transport such as cargo handling is incidental to land
transport; construction and maintenance of roads, bridges; and construction and maintenance
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of roads and highways offered on build-operate-transfer (BOT) basis, including collection of
toll. Highway-widening projects qualify for the 10-year tax break under Section 80 IA of the
Income Tax (IT) Act. Other policy initiatives for attracting private investment are government
to provide capital grant up to 40% of project cost to enhance viability on a case-to-case basis,
100% tax exemption for five years and 30% relief for next five years, which may be availed of
in 20 years and concession period allowed up to 30 years. FDI in construction activities
(including roads and highways) sector from April 2000 to July 2011 in India was USD 9.3
billion. This amounted to 6.4% of the total FDI inflows, according to data released by
Department of Industrial Policy and Promotion (DIPP), which formulates the FDI policy and
is part of the Ministry of Commerce & Industry.
In addition to the policy benefits, the government has announced several incentives to attract
private sector participation. These include government to bear the cost of the project feasibility
study, land for the right of way and way side amenities, shifting of utilities, environment
clearance, cutting of trees, etc; duty free import of high capacity and modern road construction
equipments; declaration of the road sector as an industry; easier external commercial
borrowing norms; right to retain toll; increase in the overseas borrowing amount of
infrastructure sectors to USD 500 million from USD 100 million; and full exemption from
basic customs duty to bio-asphalt and specified machinery for application in the construction
of national highways.
The ministry has also framed a ‘Special Accelerated Road Development Programme in North
Eastern Region’ for improving road connectivity to remote places in this region. The estimated
cost of the proposal is USD 2.53 billion. The Union Budget 2012–13 proposed an increase of
allocation of the Ministry of Road Transport and Highways by 14% to Rs. 25,360 crore.
Further, the World Bank has approved a USD 975 million loan for developing the first phase
of the eastern arm of the USD 17.21 billion Dedicated Freight Corridor Project in India. The
Dedicated Freight Corridor Corporation of India Ltd. has tied up with the Japanese Bank of
Industrial Cooperation for USD 14.56 billion funding as loan for the first phase and it is likely
to be commissioned in 2016.
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International Journal of Trends in Commerce & Economics
Volume 1, Issue 6, 2014
© Naik & Khan
The World Bank and the Government of India have also signed a USD 350 million loan to
accelerate the development of road network through the Second Karnataka State Highway
Improvement Project. The Government of Karnataka has demarcated about 25,000 km of the
most important traffic corridors and designated them as the state’s core road network. Also, a
USD 301.38 million-worth project, ending 2016, for construction, up gradation and
improvement of 433 km-long road in six north-east states, assisted by the Asian Development
Bank, has been approved by the Cabinet Committee on Economic Affairs.
The Ministry of Road Transport and Highways had planned to award road projects covering
10,000 km of highways in 2011–12. About 80% of these road projects will be distributed on
the BOT basis. The Prime Minister Gram Sadak Yojana (PMGSY) is a scheme for
development of rural roads in India. The Construction of Rural Roads Project (CRRP) is
another initiative focused on rural development.India located in the southern part of Asian
Continent is one of the most charming countries of the world. There is long list of diversified
tourist attractions in India. India is counted best tourist places in world. There are lot of tourist
places where any tourists enjoy and passes there time.
OBJECTIVE OF THE STUDY
1. To evaluate the role of road transportation in the development of Tourism.
2. To help people become aware of the value of the states biodiversity through
education, the dissemination of information and awareness building.
3. To develop new approaches in tourism to educate the tourists & the public.
4. To know major impacts on the economic and the environment, caused by
transportation.
5. To build better road transport system including high quality highways which
will ease the tourism industry improve.
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LITERATURE REVIEW
•
Wood and Johnson elucidate that transport is a public utility which is vital to the
overall public interest. Almost every business enterprise and every individual is
directly affected by the transportation industry.
•
Kitchin analyzed operational activities of bus transport irrespective of the size of the
organization engaged in bus transport and observed that it should have three main
sections viz., traffic, secretarial and engineering and each having clearly defined
function
•
M.O. Mathew emphasized the efficiency of the transport industry as a whole and the
public utility industry in particular. He opined that transport being regulated by the
Governmental policies in many ways, of which some have a direct impact on the
evolution of size.
•
Bonavia M.R highlighted the role and significance of transport system for the
development of a country and suggested the utility of good transport system for
industrial, political, social and cultural angles.
•
According to Laws et al. (2002) destination tourism management has during past
years developed from early ad hoc, opportunistic and entrepreneurial responses into a
more proactive decision-making.
RESEARCH METHODOLOGY
The present study is based on both primary and secondary data. Information & data have
been collected from published & unpublished sources. The primary data is collected by
survey in Goa, Karnatak and Uttara Kannada District. The collected data is analyzed clearly
to understand that the road & highways development leads to tourism.
BENEFITS OF TOURISM CAUSED BY ROAD TRANSPORTATION
DEVELOPMENT
1) Tourism minimizes the negative impacts on the local people and the natural environment.
2) Tourism directs economic and other benefits to the local people by providing them
employment.
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3) It promotes conservation of natural assets and enhances the cultural integrity of the local
people.
4) Tourism has become the major source of income and is attracting lot of travel agencies
than ever before.
5) It promotes the preservation of wildlife and the natural habits.
6) Providing positive attitude and experience among the travelers.
7) Tourism supports the international labour agreements.
FOREIGN TOURISTS ARRIVALS - GROWTH RATES THROUGH ROAD &
HIGHWAYS DEVELOPMENT
India has one of the largest and fastest growing tourism sectors.
Development of road
transport and highways brings about improving steps in tourism industry. Travel
accommodation witnessed the entry of many foreign players who foresaw huge demand for
budget hotels and subsequently planned to launch their branch in India. A few leading foreign
chains and domestic players including Starwood capital and Carlson Hotels are adding
capacity to increase supply in the budget segment.
Foreign Tourist Arrivals (FTAs) during December 2012 and comparative figures of 2011 and
2010
Month
Foreign Tourist Arrivals (FTAs)
Percentage Change
2010
2011
2012
2011/10
2012/11 (%)
January
5,68,719
6,22,713
6,81,002
9.5
9.4
February
5,52,152
6,27,719
6,81,193
13.7
8.5
March
5,12,152
5,35,613
6,06,456
4.6
13.2
April
3,71,956
4,46,511
4,47,581
20
0.2
May
3,32,087
3,83,439
3,74,476
15.5
-2.3
June
3,84,642
4,05,464
4,33,390
5.4
6.9
July
4,66,715
4,75,544
4,85,808
1.9
2.2
August
4,22,173
4,28,490
4,45,632
1.5
4.0
September
3,69,821
4,17,478
4,11,562
12.9
-1.4
October
5,07,093
5,59,641
5,56,488
10.4
-0.6
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November
6,08,178
6,69,767
7,01,185
10.1
4.7
December
6,80,004
7,36,843
7,52,972
8.4
2.2
57,75,692
63,09,222
65,77,745
9.2
4.3
Total
Source: Bureau of Immigration and Ministry of Tourism.
A BRIEF PROFILE OF UTTAR KANNADA AND GOA
A good highway link between Karnataka and Goa encouraged the tourism development. Uttar
Kannada district includes 11 talukas on the basis of its fine different geographical and climate
conditions. The district is broadly classified under three regions as the coastal region, hill
region and the semi arid region. Out of total population 62.78% inhabited in rural and 37.22
population in urban areas. The district also popularly know by its nickname as The Kashmir of
Karnataka
GOA THE HOLIDAY DESTINATION
Goa is the most popular holiday destination in India. A wonder full blend of Indians and
foreigner and equally wonderful marketplaces make it the perfect vacation spot. It has a small
area of mere 3702sq/km. In title Goa (GA) state comprises two districts. The ISOCODE
assigned by International Organization is GA
Comparative Brief Profile of Goa and U.K District
FCTORS
AREA
GOA
UK District
Area Sq/Km
3702
10291
Population (2011)
14.59 lakhs
14.39
Density of Population
394
140
Forest Coverage Sq/Km
1424 (38.47)
8144 (79.14)
NH-224 kms
NH-334 kms
SH-232 kms
SH-665 kms
DR-815 kms
DR-1214 kms
Roads
Source: 1 www.google search Goa. 2. Statistical Hand Book of Uttara Kannada Dist.
It can be found from the above table no.1 is that UK District has a geographical area of about
10291 sq/km whereas the area of Goa has only 3702sq/km. The forest coverage area of the
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© Naik & Khan
Uttara Kannada district is 8144 sq/km. In almost all other factors like roads railways, aviation,
per capita income and literacy rate of Goa has comparative advantage over Uttar Kannada
district.
FOREIGN TOURISTS ARRIVALS
Tourism is characterized by following concerns. It is multidisciplinary with the human
dimension of tourism attracting the attentions of geographers, historians, behavioral scientists,
travelers, roads, highways etc. while the nature of tourism as commercial activity appeals to
those engaged in economics and business activities.
FOREIGN TOURISTS ARRIVALS
YEAR
FOREIGN TOURISTS
GROWTH RATE (In
ARRIVALS (In millions)
%)
2001
2.54
-
2002
2.38
93.70
2003
2.73
114.70
2004
3.46
126.73
2005
3.92
113.30
2006
4.45
113.52
2007
5.08
114.16
2008
5.28
103.94
2009
5.17
97.92
2010
5.78
111.79
2011
6.31
109.17
2012
6.58
104.27
2013
3.21
-
Source: Tourists Statistics, 2012, Ministry of Tourism
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140
120
100
80
Growth rate
60
40
20
0
2001
2003
2005
2007
2009
2011
2013
CONTENT WISE ARRIVALS
India is one of the important tourism destinations in Asia Pacific region. The scenic beauty,
wildlife, religious places, historic and centrally protected monuments, the rich culture etc. are
the attractions of our country, which satisfy tourists through well developed roads. The
following table presents the continent wise arrivals to India.
CONTENT WISE ARRIVALS
Mean
CONTINENT
2009
2010
2011
2012
CAGR
Score
RANK
(%)
Asia
18.90
21.35
24.17
25.40
134.39
22.45
I
Europe
18.17
19.78
21.14
21.67
119.26
20.19
II
North and
10.99
12.37
13.01
13.60
123.75
12.50
III
1.83
2.11
2.33
2.45
133.88
2.18
IV
South America
Australia
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Africa
1.65
2.05
2.33
2.62
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158.19
2.16
V
160
140
120
100
80
CAGR
MeanScore
Rank
60
40
20
0
Asia
Africa
North &
South
America
TOURISTS INFLOW IN KARNATAKA
Karnataka attracted around 84.86 million tourists with around 84.10 million domestic tourists
and 0.57 million international tourists in 2011. The tourists figures for the last five years along
with associated growth rates are provided in the following table.
Domestic and International visitors to Karnataka
Domestic
2005
2006
2007
2008
2009
2010
2011
24,698,2
36,195,9
37,825,9
37,010,9
32,729,6
38,202,0
84,107,3
43
07
53
28
79
77
90
47%
5%
-2%
-12%
17%
120%
5,05,524
5,34,563
5,20,041
2,29,847
3,24,573
5,74,005
-7%
6%
-3%
-56%
41%
77%
25,243,4
36,701,4
38,360,5
37,530,9
32,959,5
38,526,6
84,681,3
68
31
16
69
26
50
95
Growth
Rate
Internation
5,45,225
al
Growth
Rate
Total
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Growth
45%
5%
-2%
© Naik & Khan
-12%
17%
120%
Rate
Source: Department of Tourism, Karnataka
120
100
80
60
40
20
0
-20
-40
-60
Domestic Rate
International
Rate
Total Rate
2005
2007
2009
2011
Opinion of the Respondents on Comparative Factors of U.K Dist and Goa
Good
Satisfactory
Not-
Good
Satisfactory
Satisfactory
NotSatisfactory
U.K.
Goa
District
Tourists
62.38
24.56
13.06
40.88
21.44
37.69
23.83
22.50
53.67
65.33
33.67
1.00
19.17
34.00
46.83
68.33
25.83
05.84
Spots
Transport
Services
Roads
Source: Compelled from field Survey
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UTTAR KANNADA DISTRCT
70
60
50
40
Good
30
Satisfactory
20
Not Satisfactory
10
0
Tourists Transport
Spots Se rv ice s
Roads
GOA
70
60
50
40
Good
Satisfactory
Not Satisfactory
30
20
10
0
Tourists
Spots
Roads
Tourist inflow to major tourism destination in Karnataka 2011
Destination
Domestic Tourists
International
Total Tourists
Tourists
Bangalore Urban
59,59,529
Bangalore Rural
5,71,265
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89,597
60,49,126
-
5,71,265
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Chitradurga
6,28,369
582
6,28,951
Davanagere
4,18,432
-
4,18,432
Kolar
3,29,856
-
3,29,856
Shimoga
23,01,688
5,099
23,06,787
Tumkur
43,83,594
-
43,83,594
Ramnagar
27,74,533
6,377
27,80,910
Chikkaballapur
13,32,173
-
13,32,173
Belgaum
27,59,800
-
27,59,800
Bagalkot
19,44,865
23,706
19,68,571
Bijapur
16,47,931
2,808
16,50,739
3,24,707
1,941
3,26,648
Dharwad
Haveri
7,300
Gadag
2,84,919
437
2,85,356
20,05,769
36,533
20,42,302
7,50,262
-
7,50,262
Bidar
13,87,478
-
13,87,478
Bellary
25,04,034
81,900
25,85,934
Koppal
26,44,331
51,938
26,96,269
Raichur
7,900
-
7,900
Yadgiri
64,045
-
64,045
Mysore
1,32,60,373
1,14,160
1,33,74,533
Hassan
34,00,014
1,06,846
35,06,860
Mandya
70,40,670
31,283
70,71,953
Chamarajnagar
39,49,593
1,983
39,51,576
Kodagu
18,10,960
5,297
18,16,257
Dakshina Kannada
87,69,681
2,577
87,72,258
Udupi
27,51,891
10,477
27,62,368
Chikmagalur
80,91,428
464
80,91,892
Uttar Kannada
Gulburga
20
-
7,300
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Total
8,41,07,390
© Naik & Khan
5,74,005
8,46,81,395
SUGGESSTIONS
(1)
Identify tourism potential
While tourism is the world’s largest industries not all areas are equally suited for
successful tourism development. Potential business operators or local development
organization must have a clear picture of specific tourism, draws and activities
examine questions such as:
•
What does this place offer in terms of natural areas?
•
Why will tourists be attached to the area?
•
What services or activities can a business offer that responsible explores the natural
environment?
•
How can tourism benefit the environment and the local community?
(2) Conduct Market Research
Determine whatever a demand for tourism service in the local area exists or can
realistically be developed. Tourism relies in large part on a population of visitors with
disposable incomes. Potential businesses owners must assess the areas potential to
draw tourists and decided how to meet the demand their visiting population.
(3) Develop a business plan
A business plan is a tool that provides communication, management and planning
information to investors’ employers, local communities and business owners. A
business plan for tourism should information on how the business will protect, rather
than exploit, the local environment and how it will benefit the community.
(4) Market tourism services
Business or multi business/community partnerships need to reach out to potential
customers to advertise the particular area as an eco-tourism destination and the
specific services available. Target marketing efforts in outlets used by potential
customers such as travel or outdoor magazines or environmental publications.
(5)
Grow and expand services
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Businesses and development organization should work together to grow opportunities
for tourism within an area, several niche markets for eco-tour activities and services
can likely be identical and expanded to grow the regions recognition as tourism
destination.
(6)
Make foreigners believe that India is safer, economical, transportable, and healthy
should have been seen at least once in a lifetime.
CONCLUSSION
Tourism is a unique endeavor that altered conservation efforts in numerous ways. Tourism is
an innovative approach to sustainable and profitable conservation and hopefully with further
research and refinement. Tourism with road and highways development will grow in success.
Building tourism business requires research planning & community partnerships Road and
highway development can contribute to conserve cultural & Natural Heritages, Better cooperation between public and private sectors, sustainable use of Natural and Historic areas.
Road Transportation brings about changes in tourism and leads to development of tourism
with specialization.
REFERENCES:
1. Dr. Santosh P. Thampi, Eco-development project.
2. Indian Roads Congress, (1994), “Guidelines for the Design of at Grade Intersections in
Rural Area and Urban Areas”. IRC SP 41, New- Delhi.
3. Indian Roads Congress, (1990), “Guidelines for Capacity of Urban 6. Roads in
Plain
Areas”. IRC: 106, New- Delhi.
4. Department of Tourism Govt. of India
5. ECER master plan 2007 east coast economic development council.kuala Lumpur.
6. http:// www.ecerdc.com/ecccrdc/about.htm
7. Culpan R (1987) International Tourism model for developing Economics, Annuals of
Tourism Research, vol, 14, 541
8. Duval D.T (2007) Tourism and Transport: mode network and Flows, channel view.
9. Bhalla K., M. Ezzati, A. Mahal, J. Salomon, and M. Reich. 2007. A risk-based method
for modeling traffic fatalities. Risk Analysis 27: 125–36.
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