### IIFT 2012 Question Paper Question 12

Instructions

Answer the questions on the basis of the following table.

Table : Region Wise Origin of Foreign Tourists Arriving Into India

Question 12

# Which region witnessed the highest compound annual growth rate (CAGR) of tourists arriving into India?

Solution

Let us solve the options one by one.

Option A:

Number of foreign tourists arriving into India from Eastern Europe in 2007 = 152764

Number of foreign tourists arriving into India from Eastern Europe in 2010 = 227650

CAGR =Â $$\ \frac{227650-152764\ }{152764}\times\ \ \frac{\ 1}{3}$$ *100

= 16.34%

Option B:

Number of foreign tourists arriving into India from Central and South America in 2007 = 42319

Number of foreign tourists arriving into India from Central and South America in 2010 = 54728

CAGR = $$\ \frac{54728-42319\ }{42319}\times\ \ \frac{\ 1}{3}$$ *100

= 9.77%

Option C:

Number of foreign tourists arriving into India from West Asia in 2007 = 171661

Number of foreign tourists arriving into India from West Asia in 2010 = 235317

CAGR = $$\ \frac{235317-171661\ }{171661}\times\ \ \frac{\ 1}{3}$$ *100

= 12.36%

Option D:

Number of foreign tourists arriving into India from South East Asia in 2007 = 303475

Number of foreign tourists arriving into India from South East Asia in 2010 = 409043

CAGR = $$\ \frac{409043-303475\ }{303475}\times\ \ \frac{\ 1}{3}$$ *100

= 11.59%

A is the correct answer.