Tourist Arrivals in India: How Important are Domestic Disorders

Abstract

The Indian Tourism Industry has flourished in the past few years, significantly contributing to the nation's Gross Domestic Product, foreign exchange earning and employment. India with her enriched natural beauty is unambiguously one of the most viable candidates for promoting tourism. Since the past few years, Government of India has undertaken various measures to promote tourism; but its' benefits has not attained the maximum. This paper is an attempt to analyse empirically the determinants of international tourist arrivals in India using annual data from 1966 to 2000. The results document that socio-political factors, viz. communalism, terrorism and Indo-Pak tensions place serious threats to the tourism industry putting limits on the gains that could have been potentially realized.

Keywords: Tourist Arrivals, Domestic Disturbance, India

JEL Classification: C22, F01, H27, P26