Journal of Management Research and Analysis

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Get Permission Chaudhury, Sarkar, Gebrie, and Panigrahi: Growth, prospects and challenges of tourism industry in Odisha


Introduction

Travelling by men is going on since ancient times. It is an integral part of human life. It is for livelihood pleasure, relaxation and recreation. However, its increasing importance began in the 21st century. Invention of stream-engine and expansion of railway network in the beginning of the 19th century, which brought comfort and saved time (Mishra and Rout, 2016). A person travels away from his home on a certain purpose and stays at different places neither for a long period nor for permanently. International tourism flourished after the end of 20th century because of budget airlines. Modern tourism is commercial oriented, organized, and intensive. Conducive political scenario, easy transportation, development basic infrastructure, friendly environment, safe and secured journey are vital for attracting new travellers (Indapurkar and Berry, 2015).

Tourism sector has a no predetermined boundary. It is a vital part of the service sector of any nation. Tourism industry is a group of industries, which provide various products and services to the travellers during their travel trips. Food and lodging are the basic requirements for any tourist. Tourism industry can be considered as the consumption of goods and services during traveling which is known as the demand side of tourism industry (Sharpley, 2000). It increases demand of goods and services of other industries. Transport, hotel, hospitality and food industries are directly involved with the tourism industry. Supply side of tourism industry includes various subsidiaries or industries, which supply basic products or services to the travellers (Mohanty et. al., 2019).1, 2, 3

Importance and growth of tourism sector varies from country to country. It has various economic and non-economic (i.e. social or cultural) benefits. It enhances the economic activities, because it involves consumption of commodities and services. It can contribute for increasing economic growth and building the identity of the nations. It is an important source of employment generation and foreign exchange reserves. It has multiple effects on output and employment (Mohapatra et. al., 2019). This sector is labour-intensive and has the forward and backward linkages for employment creation. It works like a deep root for the overall development of a society and its economy. The main objectives of this paper are: (a) to study the growth of tourism industry in Odisha; (b) to identify the relation between tourist growth and the gross domestic product of Odisha; (c) to examine the prospects of tourism industry in Odisha; and (d) to identify the challenges before its tourism industry in the state.4, 5, 6

Materials and Methods

The present study is based on the secondary data. The data has been collected from different reports of the Department of Tourism, Govt. of Odisha, The Statistical Bulletin, Govt. of Odisha, Odisha Tourism Development Corporation etc. The primary source for the purpose is “Odisha Statistics Bulletin: 2010-19”. Various journals and books have also been referred in the present study. For the present study, the researcher has used Linear Regression analysis to authenticate the hypotheses. Data analyses have been done on the following hypotheses:

  1. There is no relationship between the number of domestic tourists’ inflow to the GDP of Odisha;

  2. There is relationship between the number of domestic tourists’ inflow to the GDP of Odisha;

  3. There is no relationship between the number of foreign tourists inflow to the GDP of Odisha.; and

  4. There is relationship between the number of foreign tourists inflow to the GDP of Odisha,

(a) Growth of Tourism Sector in Odisha

Odisha is more renowned for its religious, heritage, cultural and adventure tourism. Development of hotel infrastructure is important for the growth of the tourism industry. The number of hotels in the state is increasing by the year. There were 1328 hotels in the state in 2011, which increased to 1961 in 2019. These hotels have 41,207 rooms with 82,377 beds. These hotels can be classified into High Spending Groups, Middle Spending Groups, and Low Spending Groups. In the last decade the share of the first two groups have increased from 28.58% of the total hotels to 41.8%. It is growing rapidly due to the increased number of both domestic and international tourists. International tourists are comparatively spending more time and money on an average compared to the domestic tourists.

Table 1

Tourist visited in Odisha

Year

Foreign

% Change

Domestic

% Change

Total

2010

50,432

10.39

75,91,615

10.16

76,42,047

2011

60,722

20.40

82,71,257

8.95

83,31,979

2012

64,719

6.58

90,53,086

9.45

91,17,805

2013

66,675

3.02

98,00,135

8.25

98,66,810

2014

71,426

7.13

1,07,90,622

10.1

1,08,62,048

2015

66,971

(-) 6.24

1,17,86,117

9.20

1,18,53,088

2016

76,361

14.02

1,28,42,899

8.97

1,29,19,260

2017

1,00,014

30.98

1,40,11,229

9.10

1,41,11,243

2018

1,10,818

10.80

1,52,08,540

8.55

1,53,19,358

2019

1,15,128

3.88

1,53,07,637

0.65

1,54,22,765

2020

10,206

(-)88.00

46,22,273

(-)58.48

46,32,479

[i] Source: Statistical Bulletin (2020), Department of Tourism, Govt. of Odisha, p.4.

The above table illustrates that during 2010-2019, number of domestic and foreign tourists has doubled because of 153.07 lakhs of domestic tourists and 1.15 lakhs of foreign tourists visited Odisha. Domestic tourist are mainly responsible for the growth of tourism in the state. The overall inflow of tourists to the state is quite impressive. In the last ten years except the year 2015 and 2020, the growth rate of foreign tourists to the state is always positive and, the growth percentage of foreign tourists is higher than the domestic tourists. Tourism sector was adversely affected in 2020 due to the covid-19 pandemic, and therefore the number of tourist was sharply fallen.

Table 2

Share of Odisha in national tourist arrivals

Year

India (FTAs)

Odisha

Share

2010

57,75,692

50,432

0.87

2011

63,09,222

60,722

0.96

2012

65,77,745

64,719

0.97

2013

69,67,601

66,675

0.96

2014

76,79,099

71,426

0.93

2015

80,27,133

66,971

0.83

2016

88,04,411

76,361

0.87

2017

1,00,35,803

1,00,014

0.99

2018

1,05,57,976

1,10,818

1.05

2019

1,09,30,355

1,15,128

1.05

2020

71,71,769

10,206

0.14

[i] Source: Statistical bulletin (2020), department of tourism, Govt. of Odisha. p.9.

The above table depicts that foreign tourist arrivals in India and Odisha is increasing continuously until 2019. Foreign tourist arrival in India was about 57.75 lakhs in 2010, which was 76.79 lakhs in 2014, and it reached to 109.30 lakhs in 2019, but was fallen to 71.71 lakhs in 2020. About 0.5 lakhs foreign tourists arrived in Odisha in 2010, which was 0.71 lakhs in 2014, and reached to 1.15 lakhs in 2019, but fallen to 0.1 lakhs in 2020. The share of Odisha in foreign tourist arrivals in national figure was 0.87% in 2010, which was 1.05% in 2019 and 0.14% in 2020.

Table 3

Domestic tourist in Odisha

Year

Tourists of other States / UTs in India

Tourists of Odisha

Total

2010

30,28,873

45,62,742

75,91,615

2011

36,13,855

46,57,402

82,71,257

2012

36,15,832

54,37,254

90,53,086

2013

39,18,421

58,81,714

98,00,135

2014

43,16,545

64,74,077

1,07,90,622

2015

47,14,750

70,71,367

1,17,86,117

2016

51,37,474

77,05,425

1,28,42,899

2017

56,04,828

84,06,401

1,40,11,229

2018

60,83,722

91,24,818

1,52,08,540

2019

61,23,382

91,84,255

1,53,07,637

2020

18,49,066

27,73,207

46,22,273

[i] Source: Statistical Bulletin (2020), department of tourism, Govt. of Odisha. p.7.

The above table shows that the number of domestic tourists to the state have increased continuously, except the year 2020, in which the number of own state tourists are higher than the tourists of other States / UTs of India. The total number of domestic tourist was almost 75.9 lakhs in 2010, which was 107.9 lakhs in 2014, and reached to 153.07 lakhs in 2019. Tourists from the other States /Union territories were just above 30.28 lakhs, which was 43.16 lakhs in 2014, and was reached to 61.23 lakhs in 2019. The number of tourists from Odisha was almost 45.62 lakhs in 2010, which was 64.74 lakhs in 2014, and 91.84 lakhs in 2019, but was fallen 46 lakhs in 2020. From 2010 to 2019, the total number of domestic tourists has almost doubled.

Table 4

Region-wise breakup of foreign tourists in Odisha

Name of the Region

Number of tourists during the years

2016

2017

2018

2019

2020

Western Europe

33,976

39,484

41,726

42,977

3829

East Asia

11,358

18,485

24,413

24,212

1137

North America

11,210

11,381

12,064

14,960

1923

South Asia

4,808

7,251

8,195

9,071

1121

South-East Asia

3,478

7,778

8,988

7,972

453

Australia

3,226

4,238

4,725

4,986

568

Eastern Europe

3,302

4,681

4,397

4,545

491

West Asia

1,281

2,318

2,759

2,719

250

Central and South America

1,255

1,843

1,808

1,867

150

Africa

2467

2,555

1,743

1,819

284

Total

76,361

1,00,014

1,10,818

1,15,128

10206

[i] Source: Statistical Bulletin (2020), Department of Tourism, Govt. of Odisha. Pp.11-12.

The above table reveals that the number of foreign tourists from various regions are continuously in rise until 2019. Foreign tourist arrival was hardly affected due to covid pandemic. The highest number of foreign tourist arrived in Odisha was from Western Europe, followed by East Asia and North America respectively. The least number of tourists who visited the state were from Central America, South America and Africa.

Table 5

Country-wise breakup of foreign tourists in Odisha (Top 10 Countries)

Country

Number of Tourists during the Years

2016

2017

2018

2019

2020

United States

9234

8876

8747

11709

1585

Japan

5201

8181

10161

10956

639

China

3756

7326

10531

9508

263

United Kingdom

8607

8761

9652

8546

558

France

4786

5496

5382

6195

707

Italy

4058

4536

5052

5984

668

Netherlands

2871

4720

5957

5389

527

Germany

4667

5323

4588

5126

499

Malaysia

1421

4491

5828

4694

176

Australia

2675

3174

3626

3855

476

[i] Source: Statistical Bulletin (2020), Department of Tourism, Govt. of Odisha. Pp.11-12.

The above table illustrates the names of source countries of foreign tourists to Odisha. The highest number of foreign tourists visited to Odisha were from the United States, which was followed by Japan and China. Except the United States, China, United Kingdom, and Malaysia increased number of tourists from other countries also visiting the state since 2016. Cyclone Fani and spread of Covid pandemic are responsible for the decreased number of tourist footfall in 2019 and 2020. However, the domestic tourists are playing vital role for the growth of tourism sector in the state.

Table 6

Inflow of money via tourist spending in Odisha, (Rs. in Crores)

Year

From Domestic Tourists

From Foreign Tourists

2013-14

10288.60

308.94

2014-15

11297.91

331.01

2015-16

12336.93

308.78

2016-17

13405.27

355.22

2017-18

14579.72

472.10

2018-19

15441.67

474.00

2019-20

14969.81

419.17

[i] Source: Directorate of Tourism, Odisha.

The above table shows the inflow of money from both domestic and international tourists which increased continuously from 2015 to 2018, but decreased in 2019 and 2020. The inflow of money from domestic tourists was approximately 33 times higher than the foreign tourists in 2013-14, which reached 37 times higher in 2016-17, and was nearly 35 times higher in 2019-20.

Table 7

Calculating linear regression between gross domestic product of odisha and domestic tourist inflow

Year

GDP (In Lakhs Rs.)

Domestic Tourist

2013-14

29647538

1,00,64,072

2014-15

31426707

1,10,51,351

2015-16

33087377

1,20,67,695

2016-17

37720178

1,31,12,728

2017-18

41598168

1,42,61,546

2018-19

41598168

1,55,09,529

2019-20

49500000

1,50,35,593

[i] Source: Directorate of economics and statistics, Odisha, & Statistical Bulletin (2020), Department of Tourism, Govt. of Odisha.

The Linear Regression has been run taking Gross Domestic Product [as Y] as dependent variable and Domestic Tourist Inflow [as X] as independent variable.

Table 0

Table 7.a: Summary output

Regression Statistics

Multiple R

0.912435394

R Square

0.832538348

Adjusted R Square

0.799046018

Standard Error

3143491.098

Observations

7

[i] Source: Compiled by the authors.

The R square is found to be 0.832538348, showing, thereby that there is quite a significant degree of relation between the dependent variable Y, i.e. Gross Domestic Product and dependent variable X, i.e. Inflow of domestic tourists. Thus, the researchers reject the null hypothesis.

Table 0

Table 7.b: Coefficients and t-statistics

Coefficients

Standard Error

t Stat

P-value

Intercept

-434020

3974322

-0.10921

0.919934

Domestic Tourist

2.900555

0.325724

8.904944

0.002987

[i] Source: Compiled by the authors.

The value of t-stat has come out to be -0.10921 and the P-value has come out to be 0.919934. The value of t-stat is less than the p-value and, therefore, the null hypothesis has been rejected and it can be said that the number of domestic tourist inflow and Odisha’s GDP are significantly correlated.

Table 0

Table 7. c: ANOVA analysis

df

SS

MS

F

Significance F

Regression

1

2.45631E+14

2.45631E+14

24.85758195

0.004155205

Residual

5

4.94077E+13

9.88154E+12

Total

6

2.95039E+14

[i] Source: Compiled by the authors

.

The F-test statistics of the above table is 24.87 with a p-value less than 0.01 indicates that, the null hypothesis has been rejected and it can be said that the number of domestic tourist inflow and Odisha’s GDP are significantly correlated.

Table 8

Calculating linear regression between gross domestic product of Odisha’s international tourist inflow

Year

GDP (In Lakhs Rs.)

International Tourist

2013-14

29647538

67,400

2014-15

31426707

72,215

2015-16

33087377

67,364

2016-17

37720178

77,496

2017-18

41598168

1,02,995

2018-19

49500000

1,13,721

2019-20

53300000

1,00,567

[i] Source: Directorate of economics and statistics, Odisha, & Statistical Bulletin (2020), Department of Tourism, Govt. of Odisha.

The Linear regression has been run taking Gross Domestic Product [as Y] as dependent variable and International Tourist Inflow [as X] as independent variable.

Table 9

a: Summaryoutput

Regression Statistics

Multiple R

0.892877159

R Square

0.797229621

Adjusted R Square

0.756675545

Standard Error

4509185.914

Observations

7

[i] Source: Compiled by the authors

The value of R square in this case has come out to be 0.797229621, thus showing a significant degree of relation between the dependent variable Y, i.e. GDP and independent variable X, i.e. Inflow of foreign tourists. However, the degree of relation for foreign tourists is lower than that of the domestic tourist inflow in the state of Odisha.

Table 0

Table 9.b: Coefficients and t-statistics

Coefficients

Standard Error

t Stat

P-value

Intercept

3033141.847

8392555.785

0.361408601

0.732563695

InternationTourist

423.8381128

95.59288053

4.433783253

0.006804084

[i] Source: Compiled by the authors

The value of t-stat has come out to be 0.361408601 and the P-value has come out to be 0.732563695. The value of t-stat is less than the p-value and therefore the null hypothesis has been rejected and it can be said that the number of foreign tourist inflow and Odisha’s GDP are significantly correlated.

Table 0

Table 9.c: ANOVA analysis

df

SS

MS

F

Significance F

Regression

1

3.9971E+14

3.9971E+14

19.65843393

0.006804084

Residual

5

1.01664E+14

2.03328E+13

[i] Source: Compiled by the authors

The F-test statistics of the above table is 19.65 with a p-value less than 0.01 indicates that, the null hypothesis has been rejected and it can be said that the number of foreign tourist inflow and Odisha’s GDP are significantly correlated.

Prospects of Tourism Sector in Odisha

Odisha is more renowned for its tourism sector, which attracts lots of foreign and domestic tourist every year. Places like Bhubaneswar, Puri and Konark have been attracting thousands of tourists from different parts of India. Odisha has many unique tourist destinations. The scenic beauty, wildlife sanctuaries, temples, natural landscapes, monuments, craftsmanship, and untouched beaches make the state an ultimate tourism destination. There are more opportunities for the religious tourism, medical tourism, heritage tourism, adventure tourism, rural tourism, etc. The holiest dham Puri has been attracting tourists from within and outside India. Tourist are attracted not only for the religious purpose, but also for its culture, art and temple architecture. There are thousands of temples in the state. There are Buddhist monuments in Dhauli, Udayagiri, Ratnagiri, Lalitgiri, Pushpagiri etc. Udalgiri and Khandagiri are known for the Jain monuments. There are also renowned forts at Barabati, Raibania, Sisupalgarh, Chudanga, etc.

Odisha is also well known for its flora and fauna. Chilka, Kanjia and Anshupa lakes are quite familiar for their natural beautity. There are many waterfalls at places, like Badaghagara, Barehipani, Duduma waterfalls, and Joranda. The hot springs at Atri, Deulajhari, Taptapani and Tarabalo too attract tourists. Apart from its natural beauty and craftsmanship the culture of the local people also attracts the tourists. The state has more opportunities in rural tourism for the diversified social customs, rural life, culture and heritage of the villages. It will be a benefit to the local communities socially and economically if they are utilised.

There are also more opportunities for sports tourism in the state. The Government has organized various national and international sports events in the last five years. Hockey World Cup in 2018 was the mega event, which attracted thousands of tourists to the state. The National Parks and mountains in Odisha have the biodiversity. Adventure tourism can be increased because Odisha is enriched with its dense forests, rivers, waterfalls and lush green natural surroundings. There are scope for adventure tourisms in the national parks or sanctuaries, like the Simlipal National Park, Baripada; Bhitarkanika Wildlife Sanctuary, Cuttack; Tikarpada Wildlife Sanctuary, Angul; Chilika Wildlife Sanctuary, Puri, and Sunabeda Wildlife Sanctuary, Koraput. Chilka is the largest brackish water lake in Asia and it is renowned for its migratory birds and dolphins.

There is more possibility for the growth of eco-tourism. It can provide alternative employment opportunities to the local people. The state has many islands, like as Becon Island, Breakfast Island, Somolo and Dumkudi islands, which are perfect places for eco-tourism. Odisha has a long coastline and renowned for its beaches, like Puri, Talasari, Gahirmatha, Chandipur, Chandrabhaga etc. There are many museums, like Odisha State Museum, Regional Museum of Natural History, Tribal Research Institute Museum, Odisha Crafts Museum etc., which fascinate the visitors. Odisha Tourism Development Corporation is endorsing tourism in the state and running tourist transportation fleets and bungalows. The Odisha Forest Development Corporation manages Eco-tourism destinations in the state.

Many places of the state are still unnoticed, unseen, and unexplored. Therefore, the new tag line of Odisha tourism is ‘India’s best kept secret.’ The state has 500 km. of a long coastal line and if the long cherished coastal highways if realised it can be a major contributor for promotion of tourism. It will be useful to attract more tourists to its stunning coastal view, seaside villages and well-connected tourist places like, Talsari, Chandipur, Chilka, Puri, and Konark. Rail and air connectivity are more important for promotion of tourism. Odisha is well connected with others states of the country by road, train and air. Bhubaneswar is a mega-junction for connectivity.

Bhitarakanika and Chilka are the two most amazing wildlife tourism hotspots in Odisha. Due to their respective individual beauty, both these places can be the stand-alone destinations. Due to the lack of infrastructure, none has seen the desired tourist inflow. There are more opportunities for development of wildlife tourism in Mangalajodi, Chilka and Bhitarakanika. Museums are a major attraction for tourists. There are more potentiality for development of the museum tourism in Odisha as the state has so many renowned museums, tribal museum, maritime museum etc. There are more opportunities for promotion of zoo tourism too. Nandan Kanan can be useful for such tourism. There are more opportunities for development of experiential tourism places like Pahala, Pipli, Raghuraipur etc. are suitable for such tourism. There will be more possibility of attracting tourists to Puri after completion of the Shamuka, ABHADA scheme and Srimandir Parikrama Yojana.

Challenges before the Tourism in Odisha

There is a large scope of growth of tourism in Odisha. However, except Puri, Bhubaneshwar and Konark, other tourist spots cannot attract sizable number of tourists, as many factors are responsible for it. Growth of tourism depends on not only the beauty of the tourist spots, but also on their well connectivity. The connectivity is still a problem that exists in the state. For example, there are ten districts in the state, which have no rail connectivity (https://ct.odisha.gov.in/transport/railway). There are also shortages of hotels of international standard. Although Oriyas are more renowned for their hospitality, at times cases of harassment in religious places cannot be overlooked. Besides, incidences of extortion, robbery, exploitation and manhandling of the tourists in tourist spots are frequently reported. Such types of cases badly affect the image of the state.

There are issues of environmental degradation in tourist places. Garbage and hordes of polythene bags are in rampart use in many tourist places. Parking fee and entry fees are collected in the tourist spots, but enough attention is not given on the cleanliness of these places. However, Public-Private Partnership venture in tourism sector can be useful, but such a venture is absent. There are also lack of safety and medical facilities in the many tourist spots.

Conclusion

Odisha is a prime tourist destination in India. The number of domestic and international tourists are in rise in Odisha because for its natural beauty, culture, architecture, monuments and festivals. Puri has the largest share of domestic as well as foreign tourists in the state. Besides, Khordha, Balasore and Cuttack districts have the maximum share of tourists visiting to Odisha. West Bengal contributes the highest percentage of domestic tourism other than Odisha itself. Referring to table 5 and different Statistical Bulletin, Department of Tourism, Govt. of Odisha it is observed that maximum number of foreign tourists are from Western Europe, East Asia and North American countries. There is a positive relationship between the tourist inflow and the Gross Domestic Product of the state.

Odisha tourism industry is rising promptly more than the earlier years. As a maritime state, Odisha has enormous prospects for developing tourism as a major sector of the economy. It has more prospects of religious tourism, medical tourism, education tourism, adventure tourism, rural tourism, sports tourism, educational tourism, and heritage tourism. This sector has more potential for increasing income, reducing unemployment, and improving the standard of living of the poor. Transportation, hotels, food, shopping, entertainment etc. industries are also being benefit from this sector. Shortage of transportation facilities, infrastructure safety and security are the basic challenges before it. The Govt. of Odisha is also running various projects for the development of this sector. There should be an earnest initiative for better enactment of laws for the safety of the travellers, allowing more contribution for private sector and other innovative ideas for attracting more and more tourists. Hence, it is concluded that the growth and prospects of Odisha tourism is certainly bright.

The Govt. of Odisha under the stewardship of the present Chief Minister is rigorously working to the development of tourism sector in its all manifestations to attract more and more visitors from home and abroad at present ABHADA Yojana, Ekamra Yojana, Samaleswari Yojana and also creating some new eco retreat centres in different places of Odisha are some of the examples. One should be optimistic, it would certainly increase the creation of jobs, enhanced business opportunities, development of the basic infrastructure around the places contributing to the weaker section of the state in particular and to the GDP in general.

Source of Funding

None.

Conflict of Interest

None.

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Original Article


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70-77


Authors Details

Suman Kalyan Chaudhury, Sukanta Sarkar, Belete Debasu Gebrie, Ashok Kumar Panigrahi


Article History

Received : 06-05-2022

Accepted : 13-05-2022


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