Decision-making – Courses of Action for tourism revenue target Statement: The Union Ministry of Tourism and Civil Aviation has set an annual target of Rs 10,000 crores in tourism earnings by the end of the current decade. Courses of Action: I. There is no need to develop further new tourist spots to meet the target. II. The Ministry should evolve attractive packages to woo foreign tourists to meet the target.

Difficulty: Easy

Correct Answer: Only II follows

Explanation:


Introduction / Context:
A revenue target in tourism invites strategic measures around demand generation, product differentiation, and value creation. The question asks which actions align with growth objectives.



Given Data / Assumptions:

  • Target: Rs 10,000 crores in tourism earnings per year.
  • Timeline: by the end of the current decade.
  • No details on current capacity or product mix.


Concept / Approach:
Growth generally requires improving product-market fit: packages, experiences, marketing, connectivity, and sometimes infrastructure. Categorically declaring “no need for new spots” is unjustified without capacity and demand data.



Step-by-Step Solution:

Assess I: Saying there is “no need” to develop new spots is an extreme, negative assertion and not supported by the statement. New or upgraded attractions could be necessary in many contexts.Assess II: Creating attractive packages (bundled itineraries, seasonal offers, air-seat tie-ups, visa facilitation) is a standard, demand-side lever to increase arrivals and length of stay. II follows.


Verification / Alternative check:
Global destinations use packaging, targeted promotions, and partnerships to reach revenue goals. Even without new sites, better packaging can lift yield; conversely, ruling out new development is premature.



Why Other Options Are Wrong:

  • I follows / Either / Both: I is not supported by the premise and may be counterproductive.
  • Neither: II is a sensible action aligning with the target.


Common Pitfalls:
Treating capacity creation as unnecessary by default; ignoring revenue optimization through bundling and experience design.



Final Answer:
Only II follows

More Questions from Course of Action

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