Tourism has been a major social phenomenon of the societies all along. It is motivated by the natural urge of every human being for new experience, adventure, education and entertainment. The motivations for tourism also include social, religious and business interests. The spread of education has fostered a desire to know more about different parts of the globe. The basic human thirst for new experience and knowledge has become stronger, as communication barriers are overcome by technological advances. progress in air transport and development of tourist facilities has encouraged people to venture out to the foreign lands.

The importance of tourism as an instrument for economic development and employment generation, particularly in remote and backward areas has been well recognized the world over. It is the largest service industry globally in terms of gross revenue as well as foreign exchange earnings. Tourism can play an important and effective role in achieving the growth with equity objectives which we have set for ourselves.

Tourism is one economic sector in India that has the potential to grow at a high rate and can ensure consequential development of the infrastructure of the destinations. It has the capacity to capitalize on the success of the country in the services sector and provide sustainable models of growth.

It has the potential to stimulate other economic sectors through its backward and forward linkages and cross-sectoral synergies with sectors like agriculture, horticulture, poultry, handicrafts, transport, construction, etc. Expenditure on tourism induces a chain of transactions requiring supply of goods and services from these related sectors. The consumption demand, emanating from tourist expenditure also includes more employment and generates a multiplier effect on the economy. As a result, additional income and employment opportunities are generated through such linkages. Thus, the expansion of the tourism sector can lead to large scale employment generation and poverty alleviation. The economic benefits that flow into the economy through growth of tourism in shape of increased national and State revenues, business receipts, employment, wages and salary income, buoyancy in Central, State and local tax receipts can contribute towards overall socio-economic improvement and accelerated growth in the economy.

Tourism is overwhelmingly an industry of private sector service providers and the public sector has a significant role to play in infrastructure areas either directly or through Public Private partnership mode. It is multi-sectoral activity characterized by multiple services provided by a range of suppliers. It is quite similar to manufacturing industryz, where the supply chain is as important as the end product. The related sectors include airlines, surface transport, hotels, basic infrastructure and facilitation systems, etc. Thus, the growth of tourism cannot be attained unless the issues related to all the sectors are addressed simultaneously.

Another important feature of the tourism industry, which is of particular significance to India is the contribution to national integration and preservation of natural as well as cultural environments and enrichment of the social and cultural lives of people. Over 382 million domestic tourists visiting different parts of the country every year return with a better understanding of the people living in different regions of the country. They have a better appreciation of the cultural diversity of India. Tourism also encourages preservation of monuments and heritage properties and helps the survival of art forms, crafts and culture.

It is also important to note that tourism has become an instrument for sustainable human development including :
• Poverty elimination • Environmental regeneration • Job creation and • Advancement of women and other disadvantaged groups.

According to the World Tourism Organisation (WTO), the year 2005 saw more than 800 million international tourists arrivals and the tourism receipts were of the order of US$ 682 billion. The World Travel and Tourism Council (WTTC) for 2006 forecasts that travel and tourism will generate 234 million direct and indirect jobs worldwide accounting for 8.7% of the global employment, and it will contribute upto 10.3% of the global GDP. According to the same estimate, the global travel and tourism activity is expected to increase by 4.7% between 2007 and 2016.

There has been a remarkable growth in the recent years, in foreign tourist arrivals to India due to the various efforts made, including promoting India through the "Incredibly India" campaign in overseas markets. It has increased by about 65% from a level of 2.38 million in 2002 to 3.92 million in 2005, while the foreign exchange earnings have grown by about 96% during the same period. In the year 2006, the tourist arrivals have increased to 4.43 million registering an impressive increase of the 14.2% when compared to the previous year. The foreign exchange earnings from tourism have also shown a phenomenal growth from US$ 5730.86 million in 2005 to US$ 6569.34 million in 2006, achieving an increase of 14.6%. The Tourism Satellite Accounting for India has brought out that contribution of tourism to GDP of the country has been 5.9% in 2003-04, while employment in tourism sectors both direct and indirect has been 41.8 million in the same year thus accounting for 8.78% of total employment in the country. It is estimated that by the end of 2006-07, the total employment generated in the tourism sector both direct and indirect would be 51.9 million.

It is universally acknowledged that the tourism resources in the country have the potential to generate significantly higher levels of demand from the domestic and international markets, which if exploited intelligently in a sustainable manners, can prove to be the proverbial engine of growth for the country.

India achieved a significant growth in terms of foreign tourist arrivals during the year 2006 taking India's tourist arrivals from 3.92 million in 2005 to 4.43 million in 2006, showing an increase of 13%. Foreign exchange earnings from tourism also showed a phenomenal growth from USD 5730.86 million in 2005 to USD 6569.34 million in 2006, achieving an increase of 14.6%

• "Conde Nast Traveller", the world's leading travel and tourism journal, ranked India amongst top 4 preferred holiday destinations in world.
• ABTA (Association of British Travel Agency) ranked India as No. 1 amongst top 50 places for 2006.
• World Travel Awards received for (a) Asia's Leading Destination, (b) World's Leading Travel Destination Television Commercial, (c) World's Leading Responsible Tourism Project for Endogenous Tourism Project, and (d) Asia's Leading Tourism & Convention Bureau.

The foreign tourist arrivals, during the year 2006, have been estimated as 4429915, registering a growth of 13% as compared to the corresponding period of previous year. A statement showing month wise estimated foreign tourist arrivals during the year 2006, along with the corresponding figures for the last 2 years, is as given below:

Tourism has become an important segment of Indian economy contributing substantially to its foreign exchange earnings. The estimated foreign exchange earnings during 2006 were Rs. 29603.56 crore as compared to Rs. 25172.28 crore during the same period of 2005, showing a growth of 17.6%. Month wise estimated foreign exchange earnings both in Rupee and US$, during the year 2006, along with the corresponding figures for the last 2 years, are given in the following statements :

The potential of domestic tourism has grown substantially during the last few years due to increase in income levels and emergence of a dynamic urban middle class. However, there are no precise estimates of total domestic tourist traffic in the country. All the State/Union territory Government were, therefore, persuaded to set up Statistical Cell for the collection of domestic tourism statistics through accommodation establishments and furnish them to the Ministry of Tourism on a monthly basis. As per the figures reported by the State/UT Governments, the domestic tourist visits during the year 2005 are estimated to be 390 million, showing a growth of 6.6% as compared to the year 2004