IMPACT OF TOURISM ON HANDICRAFT INDUSTRY
IN THE DESERT TRIANGLE
I INTRODUCTION
The importance of handicrafts is both cultural and economic. ‘The cultural importance of handicrafts leads to the preservation of the heritage, traditional skills and the art. Its economic importance lies in high employment potential, low capital investment, high value addition, and potential for export/foreign exchange earnings. The craft or handicraft sector is the largest decentralised and unorganised sector of the Indian economy, and is among India’s largest foreign exchange earners (Vijayagopalan, 1993). Indian craftsmanship has been a way of life since centuries. This trade was in a way globalised long back through the
Spice Route
and the
Silk Route
. Region-specific crafts as well as the craftsmen travelled all parts of the world through enterprising traders and country interventions.
In the 1990’s the handicrafts emerged as one of the major exportable goods from India. ‘Within a short span of time, from 1993-2000, the sale of handicrafts and handloom export increased from Rs 30 billion to Rs 100 billion (excluding export of ‘gems and jewellery’)’. This industry has great potential of further growth. Handicrafts are rightly described as the craft of the people, as per Jaya Jetily (2001) there are twenty-three million craftspeople in India today.
WTTC has estimated T&T Economy employment in India to be 5.5% of total employment, or 1 in every 18.1 jobs in 2010. By 2015 the number is wexpected to be 1 in every 18.2 jobs With India emerging as a major tourist destination, the demand for handicrafts has also greatly increased. In ancient era, explorers and travellers were the only source of marketing and publicity for these artefacts. The patronage of the emperors has helped these craftsmen and the crafts to survive the pre independence era in our country. During the 200 years of British rule, craftsperson went through a grim period of ambiguity and severe poverty. The craftsmen were forced to manufacture raw cotton, instead of the products of their desire the ‘handicrafts’. The British rule crippled the rural economy of the country. ‘There was unemployment and famine; it was the black period for the Indian craftspeople’.
However after independence, the artisans again became the masters of their own art. But the Government failed to provide them the earnings and the patronage they enjoyed in the ancient times. Hence, there was no particular change in the status of the craftsmen in the country. The visitors/tourists have once again come to the rescue of the art and artisans in the rural India. Centuries later, today the changing scenario can be observed in our country. Increasing demands for the handicrafts in the international market, if tapped appropriately, may bring the long awaited prosperity for the artisans. It is the time we can provide the due respect and affluence to the artisans of the country. The handicrafts articles particularly, gems, jewellery, leather goods, mirror work, ivory, stone and the brass work constitute the main shopping items of the foreign tourists. ‘The International Passenger Survey (1996-1997) reported that nearly 40% of the tourist’s expenditure on shopping is done on these handicrafts, which in turn contributes heavily for the sustenance of several small/medium firms which account to 90% of the tourism business’.
A seminar held in 2002, on the occasion of celebrating the golden jubilee year of the Resurgence of Indian handicrafts established, that one out of every 160 Indians is an artisan. ‘The seminar also revealed that every year India loses 10% of its artisans’. A study conducted by the Ministry of Tourism, India (2001) revealed that in the two states of Kerala and Rajasthan, more than ninety percent of artisan’s incomes come from the tourism related activities and this has lead to their higher education and better standards of living.
In spite of acknowledging the growing importance of handicrafts in the economy, employment and development, millions of artisans who produce these goods still struggle for the very basic amenities of life. Craftspeople form the second largest employment sector in India, second only to agriculture ‘In the last forty years between 1961 and 2001 (Third to Ninth Plan), there has been a plan investment of about Rupees 90,00,000 million on the infrastructure for industralisation (energy, transport, communications, industry/minerals) and not a fraction for labour and skill based industries employing millions’. According to Timothy (2003) the processes of liberalisation and globalisation have intensified the unsecured existence of artisan communities through increasing global competition, the mass production of craft goods and shifting trends in fashion, cultural taste and aesthetics. However the Gandhian economist L.C. Jain, believes that soon after the independence and long before globalisation reached India, we have already torn apart handlooms, village industries and handicrafts from the very economic rationale of their existence to the toiling rural masses.
Today, in developed nations very few traditional crafts producers survive. Craft manufacturing in China and Japan has already been mechanized completely. In European nations, the impetus for development and industralisation has pushed the handmade crafts in the backdrop and was left to come to an end eventually.
It is obvious, that the handicraft industry was advertently or inadvertently led to a sure death by the negligence of the Government of India. After independence, Indian craftsmen dependent entirely on the government for exhibition of their skills, and the state emporia did provide necessary oxygen for them to survive. However, the basic needs of the crafts people still remained unfulfilled, as they depended on several intermediaries. ‘In 1992, then came the liberalization and globalization, which was dreaded in the Indian society as everyone knew the illiterate and poor craftspeople will not be able to compete with the cheap foreign goods in the market’. But with the globalization also came the awareness of eco-friendly lifestyle, organic products and vegetable dye fabrics, the incredible potential of embroideries and other such exotic material that was a breeze of fresh air in the synthetic world. Suddenly the hand made items became the fashion statement it was the brand of elitism and responsible citizen. However, it was the increase in the tourist arrivals and a revolution in the trade and communication, marketing and the presence of e-commerce during the last decade that has revived this industry. The increasing income of the middle class has also given a boost to the handicrafts industry. It is high time that the Indian crafts should be taken to the highest levels in the world market. The example of Thailand that has tuned its crafts to a high degree of excellence should be an eye opener for the planners and the investors in India.
II DEFINING ‘HANDICRAFTS’
Many scholars regard the Swadeshi movement of 1905-1908 as a milestone in the history of India, which re-stimulated an interest in handicrafts, folk craft, and lifestyles in direct contrast to those associated with industrialisation and urbanity. Under the influence of British rule, people were increasingly moving farther from the hand made products.
Besides there is one more school of thought, which propounds that due to the change in work culture of the people especially because of the shift from the manufacturing to the service sector has also generated the need for traveling. Kunal Chattopadhyay (2004)‘It has stated that an average consumer craft is perceived as high cost, high maintenance product that neither wears nor functions as well as its industrial equivalent; for the craftsman, craft is a profession that neither gives economic returns nor social status’.
It was somewhere in between 1850-1880 that first attempt to describe the handicrafts in India was done by George Birdwood, who collected rare designs on print blocks from different parts of the country for an exhibition. In a way that was a commendable job, but it destroyed the creativity in the Indian craftsmen. After this exhibition the Indian artisans were considered to be inefficient but possessing ideas.
Several attempts have been made to define handicrafts. In India millions of people practise traditional skills to produce the handmade goods. The great degree of variance in the production technique and outputs presents difficulty in providing one wholesome definition. Most of the Government agencies and the NGO’s use the terms ‘handicrafts’ or the ‘cottage industries’, or ‘household industries’ , or ‘traditional industries’ interchangeably. ‘Some limit the definition of craft to those items possessing clear artistic value, or to those which demonstrated export success. Others include any occupation that involves manual labour’.
P. A. Ramamurthy a noted follower of Gandhian philosophy, believed handicrafts are not the commodities of sale rather they possess a religious and spiritual appeal. ‘Handicrafts are the hand creation from dexterous fingers of the craftsmen and women which are self expressive in their natural form, revealing a conscious aesthetic beauty approach and are reviewed as an essential segment of cultural heritage’. Even though while mentioning the artisan sector in the First Five year Plan itself, a broad definition of the term crafts was articulated as late as 1989 by the Report of the Task Force on Handicrafts for the VIII Five Year Plan. This same definition was then adopted by the Development Commissioner for Handicrafts, Ministry of Textiles, “items made by hand, often with the use of simple tools and are generally artistic and/or traditional in nature. Artifacts included objects of utility and objects of decoration’ (1989)”. Thus, from all the descriptions, one thing is clear that handicrafts involve two components, firstly the artistic touch or the ornamentation of the products and secondly the traditional skill.
However with the growing international market for the handicrafts a universal definition was needed to avoid confusion regarding the authenticity of the handicrafts and ambiguity for the importing countries. It was in 1969, that an International Trade centre, Geneva, a UN body jointly supported by the UNCTAD and GATT, defined the term Handicrafts as follows:
“The term “handmade” articles should be taken to cover hose products, made with or without the use of tools, simple instruments or implements operated directly by craftsmen, mainly by hand or by foot. Additional identifying features of handicrafts are:
(a) traditional or artistic features deriving from geographical region or country of production.
(b) production by craftsmen, working generally on a cottage industry basis”.
In the Import and Export policy (1990-93) Volume 1, an amendment was made to the definition, ‘the articles besides being handmade should have some artistic value. This artistic value of the article can be its very form, shape or design or traditional or suggestive of the fact that the article is an item of handicraft’. It was again in 1995, that the honorable Supreme Court of India gave a judgment that the items can be classified as handicrafts if they fulfill following tests:
(a) “It must be predominantly made by hand. It does not matter if some machinery is also used in the process.
(b) It must be graced with visual appeal in the nature of ornamentation or in-lay work or some similar work lending it an element of artistic improvement. Such ornamentation must be of substantial nature and not a mere pretence”.
Although the government has taken several measures to define the handicrafts sector, on a macro scale, entire sectors of the crafts industry seem to defy the categorization. There are certain crafts which are described separately in the export category as well as clustered with the handicrafts exports’. This difficulty is quiet genuine as every village or a small scale industry produces distinct handicraft under the same headings. This distinction is owed to the difference in the adjustments made by the artisans to the ongoing social change, besides the production processes differ according to the geographical tuning of the craft and the region.
III IMPORTANCE OF THE HANDICRAFT SECTOR IN INDIAN ECONOMY
Handicraft activity is predominantly in the unorganized household sector and practised extensively in the rural areas. As per the Census of Handicrafts 1995-96, the total number of handicraft units and artisans in the country is represented in the table1.
Table 1
TOTAL NUMBER OF HANDICRAFT UNITS & ARTISANS IN INDIA AND RAJASTHAN
(1995-96)
LOCATION
|
NUMBER OF UNITS
|
NUMBER OF ARTISANS
|
|
|
RAJASTHAN
|
|
RAJASTHAN
|
RURAL AREAS
|
11,37,580
|
63,411
|
36,40,582
|
2,02,212
|
URBAN AREAS
|
3,17,476
|
65,460
|
11,20,604
|
2,05,488
|
TOTAL
|
14,55,056
|
1,28,871
|
47,61,186
|
4,07,700
|
Source: Census of Handicrafts, Artisans, 1995-96, Development Commissioner Handicrafts, Ministry
of Textiles
This Census report shows that there are 14, 55,056 units (14, 25,414 household units and 29,642 non-household handicraft units) in India. When one compares the number of handicraft units in Rajasthan and India we find that 6% of the Rural and 20% of urban household units of India are found in Rajasthan. In case of number of artisans associated with different crafts (Appendix 1), more or less similar scenario is observed. There are four million artisans in Rajasthan, which comes to be 9% of the total artisans in India. Rajasthan comprises 6% of the artisans in the rural area and 18% of the total artisans in the urban area.
However, according to the NSSO data (1994-95), there is large difference between the data given by DCH 2002, (handicraft census conducted by NCAER in 1995-96). The NSSO survey shows that there are 8.4 million artisans associated with the handicrafts excluding handlooms at the national level, whereas according to NCAER data the number is 4.1 million. The same confusion persists when we compare the two sources in terms of employment generated in the unorganized handicrafts sector are compared. The table 2 indicates the trend of employment in the handicraft sector (1995-96). Although there is problem with the data as different orgainsations give varying predictions regarding employment generation, it is clear that the handicraft sector generates employment in the unorganized sector.
Table 2
EMPLOYMENT IN HANDICRAFT SECTOR (1995-96)
CRAFT
|
ESTIMATION BY NCAER (DCH)
|
ESTIMATION BY NSSO
|
HANDICRAFTS
|
4.1 Million
|
7.7 Million
|
HANDLOOM
|
3.5 Million
|
0.7 Million
|
TOTAL
|
7.6 Million
|
8.4 Million
|
Besides generating employment for the rural as well as the urban population of the country, it has a huge export potential. With the introduction of the economic reforms in 1991, the export scenario changed dramatically. As discussed, the awareness about the handmade artifacts made it a fashion statement and the data suggests that within a short span of time between ‘1987 and 1999, handicraft’s share in the manufactured exports increased from 2 to 5 percent’. The table 3 shows the details of the handicraft exports provided by the EPCH (Export Promotion Council of Handicrafts) / DCH (Development Commissioner handicrafts) from the country and its share in that of all India exports.
Table 3
TRENDS IN HANDICRAFT EXPORTS (Rs in Crores)
YEAR
|
|
HANDICRAFTS (Except Carpets & Gems & Jewellery)
|
% SHARE IN INDIA’S EXPORTS
|
1990-91
|
32553
|
712.99
|
2.19
|
1991-92
|
43828
|
1064.99
|
2.43
|
1992-93
|
53688
|
1495.25
|
2.79
|
1993-94
|
65500
|
2363.54
|
3.01
|
1994-95
|
82338
|
3159.62
|
3.84
|
1995-96
|
106465
|
3207.54
|
3.01
|
1996-97
|
117525
|
3815.21
|
3.25
|
1997-98
|
132522
|
4254.60
|
3.21
|
1998-99
|
141604
|
6234.56
|
4.40
|
1999-2000
|
162738
|
7170.30
|
4.41
|
2000-01
|
201674
|
8490.16
|
4.21
|
2001-02
|
207746
|
7709.33
|
3.71
|
2002-03
|
250130
|
9844.38
|
3.94
|
2003-04
|
291582
|
10465.14
|
3.59
|
2004-05
|
361879
|
13032.70
|
3.60
|
2005-06
|
454800
|
14527.00
|
3.19
|
Source: Export of Handicrafts an Overview, EPCH 2006-07
India is the second largest exporter of handicrafts in the world, after China. The percentage share of both the countries to the world share is still not clear. According to the EPCH report, China accounts for the 15%-17% of the world market share whereas India’s share is merely 1.5%-2%. The trend of handicraft exports has risen from Rs 387 crores during the year 1986-87, to Rs 17,288.14 crores in 2006-07. The trend of growth in the export of handicrafts since 1960’s has been highest in the nineties, after the liberalization of the trade. The table 4 (appendix 1) shows the expansion in the handicraft industry since 60’s. In the two figures 1 and 2 the influence of the Gulf war and attack on the WTC twin towers is also visible in the export of handicrafts and percentage change in the export of handicrafts in India; thus relating it closely to the tourism industry.
Table 4
GROWTH OF EXPORT OF HANDICRAFTS (Rs in Crores)
YEAR
|
EXPORT OF HANDICRAFTS (Except Gems & Jewellery)
|
GROWTH RATE
|
YEAR
|
EXPORT OF HANDICRAFTS (Except Gems & Jewellery)
|
GROWTH RATE
|
1961-62
|
10.30
|
|
1994-95
|
2636
|
33.8
|
1965-66
|
12.37
|
4.7
|
1995-96
|
3020
|
14.6
|
1970-71
|
37.54
|
24.9
|
1996-97
|
3569
|
18.2
|
1975-76
|
109.56
|
23.9
|
1997-98
|
4353
|
22.0
|
1979-80
|
314.26
|
30.1
|
1998-99
|
5058
|
16.2
|
1986-87
|
387
|
3.0
|
1999-00
|
5923
|
17.1
|
1987-88
|
415
|
7.2
|
2000-01
|
6955
|
17.4
|
1988-89
|
551
|
32.8
|
2001-02
|
6770
|
-2.7
|
1989-90
|
589
|
6.9
|
2002-03
|
8343
|
23.2
|
1990-91
|
713
|
21.1
|
2003-04
|
13244
|
58.7
|
1991-92
|
1065
|
49.4
|
2004-05
|
15616
|
17.9
|
1992-93
|
1412
|
32.6
|
2005-06
|
17277
|
10.6
|
1993-94
|
1970
|
39.5
|
2006-07
|
19500
|
12.9
|
Figure 1
Source: DCH, Ministry of Textiles
Figure 2
Source: Export of Handicrafts an Overview, EPCH 2006-07
‘A study conducted by the World Bank, in 2000-01 on the Indian Crafts sector also reveals that the world trade in the handicrafts is growing and there is a direct correlation between the purchase of ethnic and cultural goods and world tourism’. In India when the trend of foreign tourist arrivals was compared with that of exports of handicrafts for a time span of sixteen years, a strong correlation was observed between the foreign tourist arrivals and export of handicrafts (r=0.89) (except carpets and gems and Jewellery). The relationship was significant at the 0.01% level (2 tailed).
Table 5
CORRELATION BETWEEN THE FOREIGN TOURIST ARRIVALS & EXPORT OF HANDICRAFTS (1990-2006)
HANDICRAFTS (Except Carpets & Gems & Jewellery)
|
FOREIGN TOURIST
|
HANDICRAFTS (Except Carpets & Gems & Jewellery)
|
Pearson Correlation
|
1
|
.897(**)
|
Sig. (2-tailed)
|
|
.000
|
N
|
16
|
16
|
Foreign Tourist
|
Pearson Correlation
|
.897(**)
|
1
|
|
Sig. (2-tailed)
|
.000
|
|
|
N
|
16
|
16
|
** Correlation is significant at the 0.01% level (2-tailed)
|
|
|
Although it is an established fact that the export of handicrafts is towards a success path, but the producers are still struggling for their existence. ‘As most of the producers are from the informal sector their earnings are lesser than those employed in the formal sector. They are likely to greater deficits opportunities, rights and protection and voice…than those who work in the formal economy……and among the working poor in the informal economy, women are more likely than men to be worse off in all of these respects’. In the handicraft sector, women constitute 47.42% of the total work force, while 37.11% belong to the SC/ST category (NCAER survey 1995-96). It has been estimated that there are more women in the household industry than in the registered, small scale or cottage units. Within the registered units there are more women in the unskilled and lower paid jobs than in the skilled or trained category. Thus, in this unorganized sector women are more prone to exploitation and injustice. Although Government has several plans and policies for the gender justice still the implementation of those at the grass root level is still not apparent.
The demand for the handicrafts, at the global level has dramatically increased in the recent years, but the scenario is still not clear at the domestic level due to the lack of statistics.
To understand the dynamics of tourism industry especially the marketing of the handicrafts, 93 shops were visited and their shopkeepers were interviewed at the three destinations Jaisalmer, Jodhpur and Bikaner (the Desert Triangle). 28 shopkeepers in Jaisalmer, 38 in Jodhpur and 27 shopkeepers were interviewed in Bikaner. While discussing, it was observed 15% of them have opened their shops recently and 7.5% of the shopkeepers have opened within the last 5-10 years of time period. However, almost 40% of the shopkeepers had their shops since last 20 years. This figure of 22.6% of new shops coming up in the last ten years is a clear reflection of new employment opportunities being spawned to fulfill the demand for the handicrafts generated by the tourist arrivals. While interviewing the shopkeepers at the three destinations it was also found that there has been a significant growth in the demand for the handicrafts at the local and national level. Out of the 93 shopkeepers interviewed, 39% (36) shopkeepers said they receive bulk order for the handicrafts by the shopkeepers from other states (indicating the domestic demand), followed by the 16% tourist (domestic as well as foreign) visiting these sites. There are 14% of the shopkeepers who get bulk order for the products from the shopkeepers as well as the tourist and the travel agencies.
Generally these are the big shops with enormous turnover, which get bulk orders. These merchants are directly in touch with the artisans; rather they have a team of the artisans working for them. Shopkeepers provide them with raw material and desired designs and make them work on piece rate. Artisans are also happy working for the shopkeepers as they provide them with regular work as well as loans in the time of need. These shopkeepers have a huge network all over the world; they cater to the Indian shopkeepers from other cities as well as retailers from other countries too.
Figure 3
Source: Computed from the primary survey conducted at Jaisalmer Jodhpur and Bikaner in 2005
There were 27 Shopkeepers who cater only to the customers visiting their shop amongst the ones interviewed, that is 29% of the shopkeepers said they do not get bulk orders for the products. It is difficult to distinguish who they are selling their products to as locals also purchase these goods, although their percentage is very low. The merchants as well as the export houses in Jodhpur believed that there has been a significant increase in the domestic demand for the products in the nineties. However the interview with these shopkeepers at all the three destinations revealed again and again that main buyers are the tourists and consumption of the locals is negligible (especially in Jaisalmer and Bikaner). NSSO (1995) data also confirm an increase in real GDP in the crafts that contributed 3-6 percent of employment and GDP generated in manufacturing in 1990’s. The demand for the products by the domestic and the foreign tourist varies widely. The domestic market demands interior decoration goods, apparels and household utility goods. This has become a trend in the urban areas, due to the increasing craze of the branded goods, changing tastes of dressing among the younger generation; the crafts sector has also been affected adversely. The producers of the crafts are undoubtedly producing more and on larger scale, they are catering to the demands all over the world. Still the conditions of the artisans producing these goods remain pitiable.
IV IMPACT OF THE LOCATION OF THE UNIT ON THE OTHER INDICATORS OF DEVELOPMENT OF HANDICRAFT INDUSTRY AT THE THREE DESTINATIONS
Every handicraft has its own locational importance. Whether it is blue pottery of Jaipur or Usta art of Bikaner. It is this locational importance that attracts tourists to various destinations for these particular crafts. Location of the unit plays an important role on the various related factors of production and distribution of the products. To understand the inter-relationship of the artisan community and tourists at the three destinations 324 artisans were interviewed. The structural details of the sample are as follows:
Registration Status: 64% of the artisans were registered and 36% were unregistered. Amongst the artisans interviewed 35% units were located in rural area and 55 % in the urban. The major drawback of the artisans was their illiteracy. Of the total sample 54.6% of the artisans were illiterate and only 45.4% were literate.
Within the sample of 324, 27.8% of them had on job training, 50.2 % of the artisans had training in the Family and only 22% of them had formal training of the craft provided by the NGO.
The development of a unit largely depends on the education of the producers their technical skills as well as the training provided to the artisans. These indicators are in turn affected by the location of the industry/unit.
Of the total 324 artisans interviewed, 145 (35%) were located in the rural areas and 179 (55%) in the urban area. In the rural area 59% of the total artisans are illiterate and in the urban areas the scenario is a little better as only 41% are illiterates. However education is not popular amongst the artisans as 177 (55%) of them are not educated at all. The educational level after primary is negligible in the rural areas; but it is higher in urban areas. The number of people going for education after middle is very less in the urban areas also. Only 20% have completed their middle and only 5% (10) of the total 179 artisans have done their graduation. Only six artisans were there amongst 324 who were post graduates. Table 6 highlights the importance of location of the unit and the educational status of the artisan.
Table 6
EFFECT OF THE LOCATION OF THE UNIT ON THE EDUCATION OF THE ARTISAN
Location of the unit
|
EDUCATIONAL QUALIFICATION OF THE ARTISAN
|
Total
|
Illiterate
|
Primary
|
Middle
|
Graduate
|
Post Graduate
|
|
Rural
|
59% (105)
|
39% (37)
|
7% (3)
|
0% (0)
|
0% (0)
|
45% (145)
|
Urban
|
41% (72)
|
61% (54)
|
93% (37)
|
100% (10)
|
100% (6)
|
55% (179)
|
Total
|
100% (177)
|
100% (88)
|
100% (40)
|
100% (10)
|
100% (6)
|
100% (324)
|
Source: Computed from the primary survey
(i) LOCATION OF THE UNIT AND THE TOURIST ARRIVALS
Location of the unit producing handicrafts plays a very important role in attracting tourist. The location has also affected the information dissipation. Tables 7 and 8 shows inter-relationship between the location of the unit and the registration status of the artisan. A further attempt has been made to link the two indicators with the arrival of the tourists in this region. The table 7 represents those 152 units where tourists come to buy the handicrafts, whereas the table 8 represents those units where tourists are not the direct buyers of the products. Out of those registered units which are visited by the tourists, only 16% are located in the rural areas whereas 84% registered units are located in urban area. The scenario is more or less same for the unregistered units whether located in rural or urban area (80% unregistered units are located in urban area and 20% in rural areas).
Table 7
ASSOCIATIONS BETWEEN THE TOURIST ARRIVALS REGISTRATION STATUS AND LOCATION OF THE UNIT
Registration status
|
Location of the unit
|
Total
|
|
Rural
|
Urban
|
|
Registered
|
52% (14)
|
58% (73)
|
57% (87)
|
|
16%
|
84%
|
100%
|
Unregistered
|
48% (13)
|
42% (52)
|
43% (65)
|
|
20%
|
80%
|
100%
|
Total
|
100% (27)
|
100% (125)
|
100% (152)
|
|
18%
|
82%
|
100%
|
Table 8
ASSOCIATION BETWEEN THE UNITS THAT DO NOT CATER TO THE TOURISTS THEIR REGISTRATION STATUS & LOCATION
Registration status
|
Location of the unit
|
Total
|
|
Rural
|
Urban
|
|
Registered
|
73% (86)
|
63% (34)
|
70% (120)
|
|
72%
|
28%
|
100%
|
Unregistered
|
27% (32)
|
37% (20)
|
30% (52)
|
|
62%
|
38%
|
100%
|
Total
|
100% (118)
|
100% (54)
|
100% (172)
|
|
68.60%
|
31.40%
|
100%
|
Source: Both tables 5.7 & 5.8 computed from the primary survey conducted in 2005
While analyzing the units that do not receive tourists (table 8), it was observed that in the rural area 73% of the units were registered, but these are mainly those household units which are producing the crafts under contract for nongovernmental organizations (NGO) or small scale industries (SSI).
When the unregistered units were discussed (52), it was found that 62% of the unregistered units are in the rural areas, thus making them un-accessible to the information about the new innovations or technological changes.
(ii) IMPACT OF LOCATION ON THE INCOME OF THE ARTISAN
The place where the unit is located plays an important role in the income generation of the artisan. The women hand embroiderer’s get piece rate for their work, and farther they are located from the city centre lesser is their income. It can also be generalized for all the craftsmen practicing different crafts. Most of the craftsmen (94%) said their income level has increased within the last five years, but it was observed that the increase was marginal for the units located in the rural areas and noticeable in the urban areas. The table 9 below indicates the difference in the increase in income at the rural and urban levels.
Table 9
LOCATIONAL IMPORTANCE FOR THE MONTHLY
CHANGE IN INCOME LEVEL IN THE PAST FIVE YEARS
Location of the Unit
|
CHANGE IN THE INCOME LEVEL OF THE ARTISANS (2000-2005)
|
Total
|
Amount Of Change Registered in Rupees
|
No Change
|
Rs 100- Rs 600
|
Rs 600- Rs 1000
|
Rs 1000- Rs3000
|
|
Rural
|
100% (20)
|
55% (91)
|
27% (26)
|
19% (8)
|
45% (145)
|
Urban
|
0% (0)
|
45% (74)
|
73% (70)
|
81% (35)
|
55% (179)
|
Total
|
100% (20)
|
100% (165)
|
100% (96)
|
100% (43)
|
100% (324)
|
Source: Computed from the primary survey conducted in 2005
Parenthesis represents the absolute numbers
As it has been observed for the rural areas the change in the income level over the last five years is of the lower order i.e. lying mainly within the range of Rs 100-600. The artisans whose income level has increased between the ranges of hundred to six hundred rupees, 55% are located in the rural areas and 45% of the units are in the urban areas. At the same time only 27% of the units located in rural areas reported an increase of rupees six hundred to one thousand and 19% have registered an increase of Rs 1000-3000 in their monthly income.
At the same time the increase in the income levels is higher for the units located in urban areas for the upper range (Rs 600-1000 and Rs 1000-3000). As per table 9 it is evident that although the income level has increased in the last five years still the increase is higher for the urban areas. 73% of the units located in the urban areas have registered an increase of Rs 600-Rs 1000 in their income levels and 81% have registered an increase of Rs 1000-Rs 3000. Thus the location of the unit again plays an important role in the earnings of the artisan.
(iii) IMPACT OF LOCATION ON THE MARKETING STRATEGY
Location plays an important role in the marketing strategy of the finished handicrafts. Of the total 145 units in the rural areas, 40% produce goods for the shopkeepers. They do not have their own customers; they prepare for shopkeepers on order. 27% of the artisans produce for the small scale industries or the NGO’s. They work on the piece rate or the daily wages (especially the stone carvers and the hand embroiderers). Only 22% are those who cater to both the retailers as well as the customers (locals as well as tourists).
At the urban centers it was observed that 30% were catering to the retailers as well as the tourists and 30% were producing for the shopkeepers also. Major difference in the urban and rural locational settings can be seen for the ones who approach the retailers with products; only 16% of the artisans from the rural areas and 84% of the artisans from the urban areas approached the retailers with their products. This difference also highlights the infrastructural bottlenecks, like non availability of retail outlets in the rural areas, so the producers are unable to reach them with their products. They prefer producing it for the shopkeepers to ensure fixed amount for their household and lesser risk of larger investment.
Table 10
Location of the unit
|
Marketing Strategy of the Products
|
Total
|
Approach Retailers with Products
|
Shopkeepers Approach with designs /demand
|
Customers/
tourists approach at
the shop
|
Prepare Mainly for SSI/NGO
|
Catering to Retailers as well as the tourists
|
Rural
|
16% (5)
|
52% (57)
|
31% (11)
|
67% (40)
|
37% (32)
|
45% (145)
|
% within the rural
|
3%
|
40%
|
8%
|
27%
|
22%
|
100%
|
Urban
|
84% (27)
|
48% (54)
|
69% (24)
|
33% (20)
|
63% (54)
|
55% (179)
|
% within the urban
|
15%
|
30%
|
13%
|
11%
|
30%
|
100%
|
Total
|
100% (32)
|
100% (111)
|
100% (35)
|
100% (60)
|
100% (86)
|
100%(324)
|
10%
|
34%
|
11%
|
18%
|
27%
|
100%
|
Source: Computed from the primary survey conducted in 2005
Tourists also reach the artisans located in the urban areas more easily (69%), than those located in the rural areas (31%). It has been observed that maximum transactions are conducted through shopkeepers giving orders for the production along with the raw material as well as designs to the artisans (34%). Next significant marketing strategy is direct dealing with the retailers and the tourists (27%) followed by the important role the NGO’s and the SSI’s play in the lives of the artisans.
The marketing strategy of the sample units it is noted that the above table10 shows 81 units (highlighted) in spite of being located in the urban areas still approach the retailers or work for the shopkeepers. These are mainly those units which do not have their own marketing outlets as well as the artisans who do embroidery on the leather; they work for various shopkeepers who in turn provide them with raw material and ensure that the product is supplied to them under contractual agreement.
VI IMPACT OF TOURISM ON THE INCOME OF THE ARTISAN
There were only 20 (6%) artisans who did not experience any change in their income levels in the past five years. Among these 55% were those who do not cater to the tourists at their units. The remaining 45% who cater to the tourists and have not even experienced any increase in their income are mainly the ones practicing leather based crafts. These artisans told that although they earn more because they are producing more but the profit margins have greatly reduced due to the competition. The table 11 shows the relationship between the tourism and the increasing income levels of artisans in the past five years. The relationship between the increase in the income levels of the artisans and the tourist arrivals is highly significant (the Pearson and likelihood ratio indicate a close association between the two indicators at .05 % scales, χ= 47.6).
Table 11
ROLE OF TOURISM IN THE RISING INCOME LEVELS OF THE ARTISANS
TOURISTS BUY HANDICRAFTS
|
CHANGE IN THE MONTHLY INCOME OF THE ARTISANS
(2000-2005)
|
Total
|
No Change
|
Rs 100-Rs 600
|
Rs 600- Rs 1000
|
Rs 1000-Rs 3000
|
No
|
11
|
115
|
39
|
7
|
172
|
55%
|
70%
|
41%
|
16%
|
53%
|
Yes
|
9
|
50
|
57
|
36
|
152
|
45%
|
30%
|
59%
|
84%
|
47%
|
Total
|
20
|
165
|
96
|
43
|
324
|
100%
|
100%
|
100%
|
100%
|
100%
|
Source: : Computed from the data generated by the primary survey conducted in 2005
Chi-Square Tests
|
Value
|
df
|
Asymp. Sig. (2-sided)
|
Pearson Chi-Square
|
47.686(a)
|
3
|
.000
|
Likelihood Ratio
|
50.077
|
3
|
.000
|
Linear-by-Linear Association
|
37.438
|
1
|
.000
|
N of Valid Cases
|
324
|
|
|
a 0 cells (.0%) have expected count less than 5. The minimum expected count is 9.38.
Among those units that do not receive tourists, 70% of the artisans have registered an increase of Rs 100-600 whereas 41% registered an increase in the range of Rs 600-1000 and only 16% reported an increase in the range of Rs1000 to Rs 3000. Amongst the units which cater to the demands of the tourists directly, 84% of the artisans have registered an increase of rupees 1000 to Rs 3000. It is a known fact now that income of the handicraft unit has increased in the last five years and tourist arrivals has affected the increase.
Table 12
CHANGE IN THE INCOME LEVEL OF THE ARTISANS (2000-2005)
REASON FOR THE INCREASE IN INCOME
|
Amount Of Change Registered in Rupees
|
No Change
|
Rs 100- 600
|
Rs 600-1000
|
Rs 1000- 3000
|
Demand has increased for the product
|
-
|
35% (58)
|
29% (28)
|
14% (6)
|
Shopkeepers pay more for the products
|
-
|
22% (36)
|
22% (21)
|
2% (1)
|
Tourists pay more than the shopkeepers
|
-
|
13% (22)
|
26% (25)
|
70% (30)
|
All the above
|
-
|
7% (11)
|
3% (3)
|
14% (6)
|
Work for NGO/SSI get fixed salary
|
-
|
23% (38)
|
20% (19)
|
-
|
No Change
|
100% (20)
|
-
|
-
|
-
|
Total
|
100% (20)
|
100% (165)
|
100% (96)
|
100% (43)
|
Source: Computed from the data generated by the primary survey conducted in 2005
Table 12 illustrates more precisely the reason for this differential increase in income. 35% of the artisans who registered the increase in income within the range of Rs 100-Rs 600 believe that, this is due to the increase in the demand for the products. Those artisans who have reported an increase in their income within the range of Rs 1000-Rs 3000, 70% of them told tourists have been the main reason for this rise in their income levels as they pay highest for the products than any other source. Thus, it can be said though tourism plays an important role in creating the demand for the products, major beneficiaries are the shopkeepers and the NGO’s/SSI, still there is a noteworthy rise in income levels of the artisans within the last five years.
V CONCLUSION
Handicraft represents the large and dynamic segment of the manufacturing sector. Within the past few years the handicrafts have become one of the major exportable items of the country. This success in terms of exports completely discards the fear of crafts being replaced by the modern market driven manufacturing. Due to the development of the tourism industry and awareness of the importance of hand made products the demand of the handicrafts has greatly increased. There is a significant level of correlation between the handicraft exports and the foreign tourist arrivals (0.897 at 0.01% level).
The level of education in the artisan community is still very low, more than fifty percent of the artisans interviewed lack any formal education and the level of technical education is negligible amongst the sample. Besides the education the location of the unit of the handicraft also plays an important role in the tourist arrivals planning of the marketing strategy of the finished products of the artisans. Units located in the rural areas are more prone to producing goods to fulfill the order placed by the retailers/ shopkeepers from the urban areas. Almost 80% of the units located in the urban area received tourist as customers at their units whereas the units located in the rural areas 62% of them do not receive the tourists. Apart from this, the location also becomes an important factor in distribution of the information. Rural areas receive information later than the urban locations and hence the units in the urban areas adopt technological changes before the rural units.
It was found that there is a close association between the tourist arrivals and the increase in the income levels of the craftsperson in the last five years (χ= 47.68). There is an intricate relationship between the tourism industry, shopkeepers and the handicraft production. Chi square test confirms the association of the shopkeepers and the artisans (χ= 41). A strong correlation was observed between the handicraft industry and the tourist arrivals (.349**).
Major problems faced by the artisans are illiteracy and poverty which even prohibit them from availing the important facilities like the training and technological developments. They are being exploited by the merchants and mediators because of their unawareness and incompetence to reach the market with their finished products themselves. However, better guidance and financial assistance to the artisans can help them develop and grow as an international brand.
APENDIX 1
Table 5.11
TECHNOLOGICAL INNOVATION & THE LOCATION OF THE UNIT
Information About Type of Technology
|
LOCATION OF THE UNIT
|
Rural
|
Urban
|
Introduction of New Products
|
Do Not Cater to Tourists
|
Cater to Tourists
|
Total
|
Do Not Cater to Tourists
|
Cater to Tourists
|
Total
|
Yes
|
4
|
22
|
26
|
14
|
60
|
74
|
No
|
114
|
5
|
119
|
40
|
65
|
105
|
Total
|
118
|
27
|
145
|
54
|
125
|
179
|
Introduction of New Raw Material
|
Yes
|
6
|
16
|
22
|
20
|
75
|
95
|
No
|
112
|
11
|
123
|
34
|
50
|
84
|
Total
|
118
|
27
|
145
|
54
|
125
|
179
|
Introduction of New Designs
|
Yes
|
40
|
24
|
64
|
20
|
87
|
107
|
No
|
78
|
3
|
81
|
34
|
38
|
72
|
Total
|
118
|
27
|
145
|
54
|
125
|
179
|
Introduction of New Machines
|
Yes
|
47
|
16
|
63
|
17
|
62
|
79
|
No
|
71
|
11
|
82
|
37
|
63
|
100
|
Total
|
118
|
27
|
145
|
54
|
125
|
179
|
Source: Computed from the data generated during the primary survey conducted in 2005
Vijayagopalan, S (1993), Economic Status of Handicraft Artisans, National Council of Applied Economic Research, New Delhi.
Scrase J Timothy, (2003); Precarious Production: Globalisation And Artisan Labour In The Third World, Third World Quarterly, Volume 24, Number 3 / June 2003, Routledge, Pg 449 - 461
Census of Handicrafts, Artisans, 1995-96, Office of the Development Commissioner (Handicrafts), Ministry of Textiles, Government of India, pp 15
Until now no serious efforts have
been made to analyze the economic significance of tourism related activities on
the local economy. In the rural areas of Jaisalmer at various small villages,
women can be observed busy in embroidering some motifs, or making puppets and
toys from the worn out ‘Pan Parag’ boxes or counting small pieces of mirrors to
paste on table covers and also taking charge of household activities. The usual
day of the lady of the house begins with daily chores of cooking, cleaning and
fetching water, followed by taking care of the kids in the house. The only leisure
time the lady has for herself is the afternoon. During this time the women of
the village gather and chat along with the activities like knitting,
embroidery, tie and dye or making other items for their house hold needs. With
the growth of tourism industry in Jaisalmer these hand works of the locals have
created a lot of interest amongst the visitors and have become popular as
handicrafts of Jaisalmer.The everyday’s leisure hour has started bringing in
some income to the rural household and has gradually empowered the women. During
the interaction with the women folk of the villages it was observed that they
feel confident to speak in family affairs, like deciding on education of their
girl child. Also decisions related to their kins wedding age also being taken
by the women folk of the village. Although there is a lot of change which is
visible only if observed at close quarters, there is no mechanism to record
that change. The case study below emphasizes the importance of tourism to a
small household income and the minimum needs of the women of the house. 