September - 2013 Odisha Review

Growth and Prospects of Odisha Tourism :

An Empirical Study

Dr. Suratha Kumar Das

Odisha, a maritime State, on the east coast of entertainment and other areas. It is the hospitality
India, is bounded by West Bengal and Jharkhand sector, which binds together a lot of other
on the North, Andhra Pradesh on the South, the employment generating sectors through backward
Bay of Bengal on the East and Chattisgarh on the and forward linkages. Tourism is a highly labour-
West. Its location is between 17°49‘N to intensive business. It not only creates direct
22°34‘N latitudes and 81°27’E to 87°29’E employment but also creates opportunities for
longitudes. The State ranks eleventh in terms of indirect employment. About 92,206 persons are
total population and ninth in terms of total area. It directly engaged and 276,618 persons are
has a total coastal length and perpetually washed indirectly engaged in this sector in Odisha. The
by the blue waters of the Bay of Bengal. The state ratio of indirect jobs to direct jobs is
is endowed with a vast reserve of mineral and approximately 3:1 in Odisha. The State has
other natural resources like : river, fountain, several sources and triggers for attracting tourists.
mountain, hills, forest, abhayaranya, pilgrims, There are sites that are abound in natural beauty.
historical places etc. The state has worldwide There are also places like Puri that attract a large
unique recognition for its works of Appliqué, number of devotees to the abode of Lord
Metal Crafts, Silver Filigree, Patta Chitra, Pipili Jagannath. There is considerable scope for
Chandua, Sambalpuri Bastralaya as well as high religious and recreational tourism. However,
attraction both in domestic and international Odisha’s full potential for tourism is yet to be
markets for its exquisite Art and Crafts. The state realized. The following identified tourists places
like Odisha offers immense tourism delight and are shown on the table No.1.
pleasure to the visitors owing to its rich and varied
topography, vibrant culture and captivating Table No: 01 Showing Identified tourist
festivities. There are 321 Identified Tourists places in Odisha
Centre in Odisha as on May 2012. Out of it 20 Districts No. of tourist places
tourists centre in four districts are selected as study
areas for the present study. Anugul 13
Balangir 08
The tourism sector has a potential to
generate high employment growth through a mix Balesore 21
of activities of hotels, transport, shopping, food, Bargarh 09

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Bhadrak 08 framing both the public and private institutions of

Boudh 03 resource management that build resilience in the
face of the risks of changes in climate.
Cuttack 22
Deogarh 02 Amelung, B & Viner, D. (2007).
Implications of Global Climate Change for
Dhenkanal 10
Tourism Flows and Seasonality. Journal of Travel
Gajapati 05 Research, 45, 285 296. This research study
Ganjam 22 identifies the possible future implications of climate
Jagatsingpur 06 change for tourism on a global level with a seasonal
Jajpur 13 emphasis. This study shows that in some places
Jharsuguda 05 experiencing a decrease in tourism attractiveness
while other areas will become substantially more
Kalahandi 17 attractive due to global climatic change.
Kandhamal 06
Bark, R.H., Colby, B.G., & Dominguez,
Kendrapada 05 F. (2009). Snowmaking adaptation and the future
Keonjhar 16 of low latitude, high elevation skiing in Arizona,
Khurda 18 USA. Climatic Change, Retrieved January 14,
Koraput 13 2010: This article states that climate change
Malkanagir 06 models predict declining snowpack, shorter and
more variable snow seasons, warmer winter
Mayurbhanj 16 temperatures with increased snowmelt, and
Nuapara 07 increased snowmelt at higher elevations. The
Nawarangpur 05 article focuses on two, low latitude, high elevation
Nayagarh 13 ski areas in Arizona (Snow bowl and Sunrise).
Puri 20 Using information from USDA, NOAA and
IPCC and other worldwide climate research
Rayagada 07 organizations, future predictions of climate change
Sambalpur 07 effects were made.
Subarnapur 06 Buzinde, C. Navarrete, D., Kerstetter,
Sundergarh 12 D., & Redcliff, M. (2010). Representations and
Source: OTDC adoption to climate change. Annals of Tourism
Research, 37 (3), 581 603. This study makes an
REVIEW OF LITERATURE. honest effort to promote tourism, hoteliers and
Adger, N. (2003). Economic Geography, other tourism service providers seek to present
79(4), 387 404. The study highlights cases of what they perceive the travelers will want.
collective action coping with climate change such However, the image that is presented is rarely what
as extreme weather in coastal areas in Southeast the traveler actually receives.
Asia and of community based coastal Ali, Manafi, Hussein (2012): This
management in the Caribbean. The study also research paper wishes to provide new insights
given priority on the importance of social capital into the nature of tourism entrepreneurship thereby

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addressing main characteristics of main CHOOSING THE STUDY AREA.

dimensions of entrepreneurship. In particular, by — Un-polluted environment
bringing previous study findings as well as
universally recognized quotations, tourism — High quality of natural attraction and suitable
entrepreneurship will be characterized in terms Agro-Tourism areas.
of culture, the nature of ventures, and personal — Breath taking landscapes and untouched
characteristics of tourism related entrepreneurs. natural areas.
Alistair McKinnon (2003) — Rich cultural heritage and historical
Entrepreneurship and Globalisation A Literature background (archaeological and
Review. This study examines some of the issues architectural remains, handicrafts, traditional
of entrepreneurship as they relate to globalisation. dance and music, traditional food, authentic/
The first major element under investigation is the traditional agricultural products, custom,
relationship between small and medium sized myths and legends, festivals and musical
enterprises (SMEs) and globalisation. SMEs are events etc.)
often characterised as being entrepreneurial,
therefore much of the literature on SMEs and — Favorable climate conditions that extends
globalisation is relevant to entrepreneurship. This the tourist season up to 12 months.
also includes internationalization, where — The richness of flora and fauna (birds,
globalisation has forced many entrepreneurial turtles, wild donkeys): vacations
firms to ‘go global’ to successfully compete and
— Hospitality of the inhabitants.
survive. By focusing new initiatives on quality and
differentiation of products and services, the — Number of the newly established micro and
entrepreneur can find a place in the global small enterprises is gradually increasing.
marketplace, irrespective of firm size.
— Pilot experiences for the re-vitalization of
Shervin & Farsi (2012) Scanning old villages positively carried out.
of Entrepreneurial Opportunities in the
— Advantages of the short transporting
Agritourism in Villages Located in the Suburbs
distances.
of the Metropolitan Cities of Iran : An Imperial
Review in International Conference on Business, — Good price/value of rural produce and
Economics and tourism Management, CBETM catering (food/drinks) (VFM-Value For
2011, in Dubai, UAE 28-30 December. This Money)
study Paying attention to small and medium sized — Existence of Government Scheme to
enterprises – given the special characteristics they encourage Village livelihoods
have and the limitations they face in the
vicinities of metropolitan cities – in the rural and RELEVANCE OF THE STUDY
particularly the agricultural tourism sectors can Tourism Industry in Indian can attract
provide the basis for the improvement foreign as well as local tourist. At present, many
of advantages gained from tourism especially with tourists wanted to visit a place like farm house,
regards to employment and entrepreneurship and medicinal farms so there is a possibility to develop
additionally it leads to an optimized management categorical medicinal-farms for the cure of
of rural tourism activities. different disease. Hence, agri-tourism is a tool to

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development of the rural farmers as well as villages. — To analyze the performance of the tourism
Odisha is enriched with enormous potentialities of industry
tourism like: eco-tourism, rural tourism and agri- — To review the origin and growth of tourism
tourism. Day by day more and more tourists are industry in Odisha since pre-independence
attracted to come Odisha to witness and inculcate period.
especially tribal culture, car festivals/ratha yatra,
Konark sculpture, historical importance of Dhauli, — To review the problems and hindrances of
Odishi dance, Chilika and other local festivals that the tourism industry in Odisha and
strengthen our state economy as well as national — To suggest concrete measures for the
economy by inflow of foreign currency. Hence growth of tourism industry in odisha
Government and private players are ought to play
METHODOLOGY:
all out possible efforts and initiatives to tourism
sector in Odisha. On this backdrops it is interesting The secondary data are used in analysing
to make a empirical study on tourism sector in the the present study. The data were collected from
state of Odisha. various reports and records of office the Tourism
Department, Government of India, Odisha
OBJECTIVES OF THE STUDY:
Tourism Development Corporation (OTDC),
The present study attempts to analyse the department of Tourism, Govt. of Odisha, internet
growth and prospects of tourism industry in etc. The various journals and books are also
Odisha. The specific objectives of the study are: referred in the present study. The collective data
are analysed with help of suitable statistical
techniques like percentage, ratios and chart.
DATA ANALYSIS :
Table No: 02 showing Tourists visits in odisha
Year Domestic %Change Foreign %Change Total %Change
2002-03 34,29,027 8.4 23,488 6.9 34,52,515 8.4
2003-04 38,05,968 11.0 25,556 8.8 38,31,524 11.0
2004-05 43,26,002 13.7 30,300 18.6 43,56,302 13.7
2005-06 46,95,647 8.5 35,731 17.9 47,31,378 8.6
2006-07 53,77,123 14.5 39,407 10.3 54,16,530 14.4
2007-08 62,10,586 15.5 43,311 9.9 62,53,897 15.4
2008-09 64,82,213 4.37 42,303 -2.32 65,24,516 4.32
2009-10 71,04,079 9.59 47,105 11.35 71,51,184 9.6
2010-11 77,70,741 9.38 53,212 12.96 78,23,953 9.4
2011-12 84,72,208 9.03 62,816 18.05 85,35,024 9.09
Source: statistical bulletin-2012 (Odisha tourism)

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Analysis: Table No: 03 showing Odisha’s Share In

National Tourists Arrival.
From table No. 02 it is depicted that
number of domestic tourists is constantly Year India Odisha Share
increasing to visit various tourists’ places and also 2002-03 25,37,282 22,854 0.90
interested to enjoy culture, festivals and especially 2003-04 23,84,364 23,034 0.96
tribal culture in the state of Odisha during the study 2004-05 34,57,477 28,817 0.83
period 2002-12.The domestic tourists are 34 2005-06 39,18,610 33,310 0.85
29,027 in 2002 and now touched to 84,72,208 2006-07 44,47,167 39,141 0.88
in 2012. The highest percentage increase (15.5%) 2007-08 50,81,504 41,880 0.82
of tourists in 2007-08. Where as lowest 2008-09 52,82,603 43,966 0.83
percentage increase (4.37) in 2008-09. Similarly 2009-10 51,67,699 45,684 0.89
foreign tourists are constantly increasing to visit 2010-11 57,75,692 50,432 0.87
and enjoy Odisha tourism . It is found that highest 2011-12 62,90,319(P) 60,722 0.96
percentage (15.4%) increase of foreign tourists
has been during 2007-08 and lowest increase Source: statistical bulletin-2012 (Odisha tourism)
(4.32%) percentage has been during in 2008- Analysis:
09. finally it is concluded that overall growth and
rise of tourists are positively inclined. It is reflected from table No: 03 that
comparison is being made between number of
Chart No: 01 showing Tourists visits in Odisha tourists in country as well as in the state. The
Chart No: 01 shows that both domestic number of tourists visited to country as well as to
and foreign tourists are increasing throughout study state is constantly increasing during the study
period (2002-12) interested to come to Odisha period 2002-12. The percentage of share tourists
to enjoy Odisha tourism. visited to Odisha is 0.96% to the tourists visited
to India in between 2003 and 2012.

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Chart No: 02 showing Odisha’s Share In National Tourists Arrival

Analysis : 2011-12 4,253.81 201.14 4,454.95

As it is reflected from chart No: 02 that Source: statistical bulletin-2012 (Odisha tourism)
more and more tourists are day by day interested
to come to India and also to Odisha to visit the Analysis:
different tourists places and enjoy the rare social
It is depicted from Table No: 04 that
culture, natural scenery, festivals etc.
tourism sectors are recognized as the most
Table No: 04 showing inflow of money potential sectors in India and in the state. It
through tourists’ expenditure in Odisha strengthens national and state economy by
contributing a lot to increase foreign currency.
(in crores) During the study period (2007-12), it is concluded
Year Domestic Foreign that there is a constant rise of revenue from the
tourists tourists Total tourists’ expenditure in the state of Odisha.

2007-08 3,088.21 106.93 3,195.14 Chart No : 03 reflect that tourism sector has
significant contribution to strengthen the state
2008-09 3,254.65 135.46 3,390.11
economy. This chart shows that revenue from
2009-10 3,566.89 150.83 3,717.72 domestic and foreign tourists have increased
constantly during the period 2007-12.
2010-11 3,901.61 170.39 4,072.00

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Chart No: 03 showing inflow of money through tourists’ expenditure in Odisha

Table No: 05 showing Year Wise Plan Outlay and Expenditure For 11 th Plan Period
(Rs. in lakh)
Year Name of the Scheme

101-Tourist 102-Tourist 104-Promotion 190-Invest 103-Tourist Addl.Central Total

Centre Accommo- & Publicity ment in Transport Assistance
dation Public Sector
undertaking

11th PLAN – outlay 50.00 2698.50 2451.51 - - - 5200.00

2007-08 Outlay 10.00 816.00 314.00 —- —- 300.00 1440.00

Expenditure 10.00 816.00 312.80 300.00 1438.80

2008-09 Outlay 05.00 2100.00 560.00 —- 600.00 1300.00 4565.00

Expenditure 05.00 1975.00 560.00 —- 600.00 1300.00 4440.80

2009-10 Outlay 05.00 1545.00 790.00 —- —- 1000.00 3340.00

Expenditure 05.00 1320.00 790.80 1000.00 3115.80

2010-11 Outlay 1075.90 1204.10 —- —- 2280.00

Expenditure 1035.67 1204.10 2239.70

2011-12 Outlay 2910.00 1550.00 —- —- 55.45(cp) 4515.45

Expenditure 2909.96 1549.49 55.45 4515.35

2012-13 Outlay 10.00 3700.00 1900.00 —- —- 5600.00

Source: statistical bulletin-2012 (Odisha tourism)

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Odisha Review September - 2013

Analysis: Plan (from 2007-08 to 2010-11), Rs.89.94 crore

was spent for this purpose. In all, 320 tourist
It is indicated from Table No: 05 that government centres have been identified for their development
is conscious about the budget provision for the and promotion in Odisha.
promotion of tourism sectors in the state of Odisha
during the 11th plan period. The government is Organization of State and District Level
constantly increasing the budget to meet the Festivals.
expenditures for expansion, modernization and Several festivals including the Rath Yatra,
beautification of tourists places to attract more Konark Festival, National Crafts Mela,
and more tourists. Mukteswar Dance Festival and other festivities
Chart No: 04 showing Year-Wise Plan Outlay have been recognized state-level festivals in
And Expenditure For 11th Plan Period Odisha and are geared towards attracting tourists.

The chart No: 04 shows that state and Similarly, there are district-level festivals like the
central government has made very good provision Parab in Koraput and Mahotsava in Sambalpur.
outlay for the promotion and development of While these are official festivals, interest groups
101-Tourist Centres, 102-Tourist such as industry subgroups and civil society
Accommodation, 104-Promotion & Publicity, organizations also organize festivals such as beach
103-Tourist Transport etc. The outlay provision festivals at Puri, Gopalpur and Chandipur.
for the said purposes is constantly rising except
Development of Shamuka Beach
2010-11.
The Shamuka Beach Project at Puri is in
GOVERNMENT INTERVENTION progress. Targeted towards high-end tourists, it
is spread over 2,000 acres of land of which, 972
The Government of Odisha has been
acres of land have already been acquired in the
given high priority to the development and
first phase. Development work is already in
promotion of tourism as well as the hotel industry
progress. The State Government released Rs.3.30
sector in Odisha. During the 10th Five Year Plan,
crore during 2010-11 to CESU and OPTCL for
the State spent public funds of Rs.38.45 crore
electrification of the Samuka Project.
on this sector. In the first four years of the 11th

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Tourist Units groups (MSG) and 948 to lower-spending groups

(LSG).
At present, 19 tourist units, i.e.,
Panthasala, Panthika, Tourist Complex and The government of Odisha has designed
Yatrinivas, with 105 rooms and 287 beds function annual budget for the current year 2011-12 for
under the Tourism Department, while 21 tourist promotion and development of Odisha tourism
units with 509 rooms and 1,112 beds are in to attract more and more tourists.
operation under the Odisha Tourism Development
Government's Annual Plan 2011-12 (in
Corporation (OTDC)
Lakhs)
Hotel and Restaurant
SL . Items Amount
This sub-sector has been growing No
consistently since 1950-51. Its share in the State
domestic product increased from 4.85 percent in 1. Grants to State Institute of Hotel 100.00
1950-51 to 12.7 per cent in 2008-09 at Management Bolangir
1999-00 base. The share of the sector in real 2. Deployment of Tourist Police 500.00
GSDP has increased from 10.68 per cent in 2004- Personnel/ Beach Cleaning
05 to 13.22 per cent in 2010-11 at 2004-05 (Puri, Gopalpur,
prices. This sub-sector is expected to contribute 3. International events & seminars 500.00
to 13.73 per cent share in the real GSDP of & Fairs & Festivals have been
Odisha in 2011-12 and has been growing in real clubbed together.
terms at the rate of 10.38 percent. The hotel and 4. Advertisement through Electronic 800.00
tourism industries are strongly linked. Media (Overseas & Domestic)
Print Media
Development of the hotel industry is essential for
the growth of tourism. Over the last 20 years, the 5. Modernization of Tourist Office, 100.00
Tourist Counters
number of hotels has grown 2.76 times, and, with
a compound annual growth rate of 5.21 percent. 6. Acquisition of Land/ Land Bank. 300.00
Thus, it is not keeping pace with the growth rate 7. Development of Tourism 500.00
of the State during the same period. From 1999 Infrastructure.
to 2010, the number of hotel rooms has grown at 8. Furnishing of Tourism Units. 49.00
an annual rate of 6 percent, while the number of 9. Wayside Amenity Centre. 200.00
tourists in the State has grown at the rate of 10 10. Project Monitoring Unit and 200.00
percent. It, therefore, follows that the growth of Consultancy & Architectural Fee
this sector and its contribution to the tourism 11. Provision under New Tourism 100.00
sector is found to be on higher rate of capacity Policy & Critical Gap
utilization. The trend in the standard of hotels in 12. Clearance of liabilities. 0.01
terms of servicing lower spending groups (LSG), Total 3000.00
middle spending groups (MSG) and high
STATE SHARE TO CSP.
spending groups (HSG) from 1999 to 2010 can
be seen from Figure 5.21. The trend and extent 1. Dev. of Mahanadi River as 30.00
Tourist Circuit in Odisha.
of total hotel beds is from 2000 to 2010, the
2. Dev. of Harishankar- Nrusing- 30.42
number of beds increased by 70 per cent. During hanath- Ranipurjharial as tourist
2010, there were 1,326 hotels with 26,555 rooms centre
and 51,317 beds, of which, 114 catered to high- 3. Dev of Tourist Circuit Bhubaneswar- 150.00
spending groups (HSG), 264 to middle-spending Puri-Chilika-under Mega Project

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4. Dev of Nandankanan – Khandagiri- 9.83 — Peace Park & Amphi theatre at Dhauli
Deras-Chandaka — Development of Gopalpur - on - Sea.
5. Dev of Khurda – Barunei- Atri- 72.51 — Development of Chilika Lake as a tourist destination
Kaipadar- Odagaon- Buguda of Odisha.
6. Dev of Barhampura-Nuagarh-Kuadol- 122 .07 — Development of Similipal in the district of
Nandini-Jhanjibandha Mayurbhanj.
7. Dev of Sambalpur-Hirakud-Dhama- 179.26 — Integrated Buddhist Circuit-Ratnagiri-Lalitagiri-
Pradhanpat-Khandadhar Langudi-Udayagiri.
— Development of Sakhigopal.
8. Vedavyas-Pitamahal-Khinda- 73.92
— Development of Taptapani.
Deogarh-Debrigarh
— Integrated Development Dhauli-Puri-Konark-
9. Dev of Jagatsinghpur under 79.36
Bhubaneswar
Circuit Development.
— Odisha Tourism Portal
10. Dev of Barbati- Paramhansa- 39.99 — Guide Training Programme
Nemala-Naraj-Charchika-Choudwar — Hospitality related Training programme
11. Study of Demand & Supply Employ- 103.80 — Recognition to Excursion Agencies, Approval of
ment generation in Tourism Sector Hotels & Hotel Projects
12. Dev of Jajpur-Chandikhol-Olasuni- — Completion of Ongoing Projects, Safety & Security
Gangi-Mahavinayak-Chhatiaunder of Tourists
13. Dev of Rambha-Taratarini-Hinjilikatu- 55.50
Bhanjanagar-Potagarh- Rusikulya CONCLUSIONS
River Tourism forms a significant aspect of the
14. Dev of Bargarh-Sambalpur-Ghan- 25.00 service sector which contributes largely to the
teswari-Budharaja-Gudguda-
Jharsuguda Indian economic development. Odisha tourism
15. Dev of Sanghagara-Ghatagaon- 25.00 industry is growing rapidly more than the
Keonjhar-Sitabinj-Gundicha preceding years. The scope of tourism has varied
ghaiunder branches very often depending upon the purpose
16. Dev of Subvash Bose Memorial & 0.01 and circumstances under which the activity is being
Swarajya Ashram at Cuttack
taken up. Now the unique tourism arteries that
17. Development of Destination 0.01
Tourism Pipili. have gained momentum are health tourism
18. Development of Sonepur-Boudh 0.01 (medical tourism), religious tourism, sports
under Destination Scheme. New tourism, educational tourism, agri tourism etc.
Projects to be sanctioned by GoI. With proper government incubation, tourism
Total 1000.00 sectors are gaining more and more importance
Grand total 4000.00 due its employment, rural development and
Highlights the Government Activities : for profitability etc. The present growth rate of
Promotion of Tourism tourism sectors can be sustained and it is also
— Publications and publicity material have a value addition and can accelerate further
— Media Management Agency & Event Managers growth. Hence it is concluded that the growth and
— Advertisements (Print Media, Electronic Media): prospect of Odisha tourism is bright.
— Website, Toll -free Number: Audio Visual: Fairs,
Festivals & Events
— Festivals Organized at Tourism Places Dr. Suratha Kumar Das, Lecturer in Commerce,
— Rural Tourism, Raghurajpur Department of Commerce, Sri Jayadev College of
— Destination Development, Puri Education & Technology, Naharakanta, Bhubaneswar.

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