Sustainability Analysis of Tourism in India: Data Envelopment Analysis Approach

Sustainability Analysis of Tourism in India: Data Envelopment Analysis Approach

Surender Kumar (Jaipuria Institute of Management, Noida, India)
Copyright: © 2018 |Pages: 13
DOI: 10.4018/IJVCSN.2018010103

Abstract

In the recent past, understanding and practice of sustainability in tourism are becoming increasingly important to both academicians and tourism planners. In the last two decades, the attainment of sustainable development and the protection of touristic assets have been at the forefront of central policy issues in global tourism development. In addition to social and economic impact of tourism, overuse of natural resources and climate change are leading to the importance of drive for sustainable tourism development. Consequently, there is a growing research interest in investigating the performance of countries, especially in terms of environmental efficiency. In this article, the authors have empirically explored socio-economic efficiency of the top ten performing countries and India. Their basic content is summarised, along with the major findings. In this way, both measurement of countries' performance and the nonparametric approach of DEA have been given deserved attention. Tourism benchmarking and the assessment of tourism management performances are a crucial and challenging task in the direction of evaluating tourism sustainability and reshaping tourism activities. The proposed efficiency assessment procedure is based on data envelopment analysis (DEA). DEA is a methodology for evaluating the relative efficiency when facing multiple input and output. Although the methodology is extremely versatile, for the sake of exemplification, in this article it is applied to the evaluation and comparison of sustainable tourism management of India.
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Introduction

Tourism has emerged as a key sector of the world economy and has become a major workforce in global trade. It has been making a revolutionary and significant impact on the world economic scenario. Tourism has been identified as the major export industry in the world (Gosh Viswanath, 1998). The multifaceted nature of this industry makes it a catalyst to economic development and helps balanced regional development. It is a low capital, labour intensive industry with economic multiplier and offers and opportunity to earn foreign exchange at low social cost. Tourism industry acts as a powerful agent of both economic and social change. It stimulates employment and investment, modifies economic structure and makes positive contributions towards balance of payments. The money spent by the foreign tourists in a country is turned over several times. In the process, the total income earned from tourism is a number of times more than the actual spending. The multiplier effect of tourism receipts is completely recognized as spreading to secondary and tertiary spheres of the economic activities of a nation. It encompasses economic, social cultural, educational and political significance. Marketing and promotion are of vital importance in tourism because of the competitive nature of the industry both within and between the generating countries. Tourism creates direct, indirect and induced employment. With its faster growth, new horizons of employment open up for the unemployed and underemployed youth of the developing countries.

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