Tourism and Travel Trends from India:

News and views on India's Travel and Hospitality Sector

Weekly News Related to Travel Industry in India

Places in the News
Travel and Transportation Infrastructure
Niche Tourism
Policy
Travel and Tourism Support Industries
Travel Characteristics of Indians

Places in the News

Travel and Transportation Infrastructure

Sector: Aviation

1. Fare war in the air: Fly to US and back @Rs 26k
Travel to the Big Apple just got cheaper, with a fare war breaking out among airlines flying the Mumbai-New York route. US carrier Delta rocked the boat on Friday with a new basic economy class fare of Rs 26,050 for a Mum-NY-Mum ticket.

Continental Airlines, which starts operations on October 2, will also offer the same fare on the Mum-Newark-Mum sector. Both carriers offer non-stop flights on the route. Other players like Air India, Jet Airways, British Airways and Lufthansa are likely to follow suit with new fares to compete with the US carriers, travel industry sources said.

The offer is valid for outbound travel from October to November 15, though the return leg of leg of the journey can be completed up to a year later.

The current offer is for tickets to be booked before the end of the month, but travel agents here said this is likely to be extended with more offers from competition. The basic fares have a build up of fuel surcharge and assorted taxes, added to them. These range between Rs 10,000 to Rs 20,000 depending on the airline chosen (see chart).

The fare-war has been triggered by the new capacity introduced by Air India, Jet Airways and Continental from August. The fall in fares mirrors a similar situation two years ago on the India-London route, when new airlines like Jet Airways and bmi started operations on the route.

Return economy fares on the India-US routes have traditionally been around Rs 50,000 in the off-peak season, with a few airlines occasionally dipping below this level. Lufthansa and British Airways have the largest marketshare on the sector, carrying passengers via their hubs in Frankfurt and London.

Air India and Jet Airways are now trying to wean away the passengers, which is largely composed of ethnic Indians. All the airlines have plans to start new flights connecting more cities in India to those in the US. This is after an open-skies agreement was signed between the two countries last year.

The non-stop operators had originally decided to price their flights at a premium to to those via Europe. However, the new fares announced by Delta and Continental are significantly lower than those offered by the European carriers. Traffic between India and the US has been growing at about 30% in the last one year, says Ankur Bhatia, managing director of Amadeus India.

Flag carrier Air India has already had to cut fares twice on the new non-stop flight, since its introduction on August 1. The airline has been flying to America via Europe for decades and the airline earned revenues of about Rs 1,600 crore on the route in the last fiscal.

But over the years, issues of poor ontime performance combined with iffy service standards have ensured that it is no longer the carrier of choice for most people. Air India is hoping to make a clean break from the past with the new aircraft Boeing 777 LRs. The new non-stop flights have been scheduled so that passengers board a flight at midnight in Mumbai and arrive in New York at 7.15 next morning.
Aug 25, 2007
Source: Economic Times

2. Virgin Atlantic to add more destinations in India
Virgin Atlantic Airways plans to add new destinations within the country in the next 18 months besides consolidating its position in Mumbai, a senior company official said.

"We have plans to consolidate our position in the Mumbai market and would like to make our roots strong," Virgin Atlantic Airways Ltd's Marketing Manager, Neha Lidder Ganju, told reporters here on Friday.

The airline has plans to add new destinations like Ahmedabad, Hyderabad and Bangalore but it would take around 18 months, she said.

Speaking on competitive pricing of air tickets, she said "the market has settled down and we don't see any price war in the near future."

Virgin Atlantic also inaugurated a project called 'Zindagi Devakana', along with New Life Medical and Educational Trust (NLMET) and Rachael's Children's Trust today, to provide healthcare to under-privileged children in India. 'Zindagi Devakana' provides over 1,800 children in balwadis with mobile medical and dental screening.
Aug 24, 2007
Source: PTI via Economic Times

3. MCA approves Indian, AI merger
The much-talked about merger of Air India (AI) and Indian is finally complete. The Ministry of Corporate Affairs (MCA) approved the application for merger of the two airlines yesterday and the filing of this approval with the registrar of companies has put the legal seal on the merger.

The board of Indian and Air India met yesterday, followed by the board meeting of the new entity National Aviation Company of India Ltd (NACIL), the company release said. V Thulasidas takes over as the Chairman and Managing Director, while Vishwapati Trivedi will be the Joint Managing Director of NACIL.

The new airline would have a combined fleet of over 112 aircraft, with 21 new aircraft, including seven Boeing 777 and 10 Airbus A-320 aircraft being inducted this year itself. With about 34,000 employees and an equity base of Rs 150 crore, it will operate three brands - Air India, Air India Express and Air India Cargo. The merger is expected to reduce expenditure by over Rs 800 crore annually.
Aug 25, 2007
Source: Travel Biz Monitor

Sector: Hotels & Restaurants
1. Bharat Hotels to develop 25 budget hotels in India
Bharat Hotels Ltd. recently announced that it will develop about 25 budget hotels in the country in next two to three years. The plan is to tap on the tier-2 cities such as, Jalandar, Surat and Ludhiana for the mega-project.

On the sidelines of the Hoteliers Conclave held recently in the city, Jyotsna Suri, Chairperson and Managing Director, Bharat Hotels Ltd., said, "In the next 24-36 months we will open 20-25 budget hotels in different cities across the country." However, Suri declined to comment on the investments to be made for the project.

Apart from that, the company also has plans to launch a luxury hotel called 'The Grand Fort' in Dubai. Elaborating on the expansion plans in the luxury segment, Suri said that the company is planning to open seven more hotels across the country in a couple of years.
Aug 25, 2007
Source: Travel Biz Monitor

2. More accommodation needed for 1,570 mn tourists by '17
Hospitality industry experts have stressed the need to develop new leisure real estate models as well as budget accommodations in the country with the number of domestic tourists expected to touch 1,570 million by 2017.

"The number of domestic tourist is expected to increase to 877 million in 2012 from the current figure at 430 million and it would further go up to 1,570 million in 2017," Amitabh Kant, the man behind the Incredible India Campaign said at Leisure Real Estate Symposium here.

With the World Travel and Tourism Council (WTTC) predicting India to be the third fastest growing country in the globe in travel and tourism demand over the next 10 years, experts said time was ripe for the country to meet demands from increased number of tourist.

"With the enormous tourism potential in India, the time could not be better for the industry to launch new leisure real estate models that will meet the needs of the evolving consumer," Group RCI Chairman and CEO Kenneth N May said.

Drawing an attention to the growing middle class, May said, "40 million people is being added annually in Indian middle class, so budget accommodations are being launched by lead luxury and business hotel players to serve average Indian who is seeking world-class facilities at local cost."

Over 100 persons from India's hospitality, real estate and travel industry attended the event which showcased trends in leisure real estate and opportunities for the tourism sector. Delegates from the US, the UK, Korea, Indonesia, Singapore and Thailand also attended the session.
Aug 24, 2007
Source: PTI via Economic Times

3. Dehradun to get its first world-class hotel
Dehradun, the picturesque capital town of Uttrakhand will soon have a reason to rejoice: A five-star hotel with world-class facilities. The hotel is going to be jointly built by a business group of the UAE and an Indian real estate developer

Emaar MGF, a joint venture between the Emaar group of the United Arab Emirates (UAE) and leading Indian real estate developer MGF has signed an agreement with the Uttarakhand government to build and run a five-star hotel and a convention centre in Dehradun.

The new hotel and the convention centre is part of an integrated facility comprising retail and entertainment space spread across 10 acres of land and has been planned with an investment of Rs.2 billion ($49 million) over two years, according to an Emaar MGF press release.

"As a strategic pivot within the northern region, Emaar MGF's initial investment in the state will witness the establishment of a world-class hospitality, convention and retail facility, accelerating its positioning as a dynamic business and tourist hub," chief operating officer of Emaar MGF Sanjiv Rai said.

"This will catalyse the development of the state's economy and provide an impetus to generate additional revenue opportunities."

Stating that Uttarakhand enjoyed a strategic geographic advantage conducive to business growth, the state's Tourism Minister Prakash Pant said, "Our partnership with Emaar MGF is the first instance of a public-private partnership (PPP) being undertaken in Uttarakhand for development of tourism and employment generation."
The Emaar MGF JV is a leading player in India's booming infrastructure sector with plans to make the country's largest mall and mega residential projects.

The company has rolled out an integrated mega township project in Mohali called Mohali Hills and a residential community project in Gurgaon called The Palm Springs. It has also built the International Convention Centre, the largest such facility in India.

Earlier this year, Emaar MGF had committed $12 billion investment in India for residential and commercial projects.

"Of the $12 billion, $5 billion will be in the residential sector. The rest will go into hospitality, retail and healthcare," Emaar MGF managing director Shravan Gupta had told a visiting Indian media delegation in Dubai in June.

He had added that work on all these would start within six months.
Aug 24, 2007

Source: IANS via MSN India

Niche Tourism

Medical

1. Medical tourism cuts into city
An increasing number of foreigners are coming to Bombay to take advantage of quality medical care coupled with low prices. When it comes to medical tourism, doctors in Bombay are grateful about the excellent facilities this city has to offer in terms of medical equipment.

“Besides having excellent cosmetic surgeons, being an English speaking town with warm people, wonderful care by nurses and a reasonable rate for surgery, Bombay offers world class facilities in terms of Medicare with good safety practice and high-quality infection control at certified hospitals,” says Dr. Mohan Thomas, a city surgeon.

Dr. Thomas who hails from the United States, is currently based in Bombay. He is the medical director of the Cosmetic Surgery Institute located at Bandra, and is the founder and President of the Asian Academy of Cosmetic Surgery and the Academy of Anti Ageing Medicine of Bombay and New York. Bombay occupies pride of place along with Kerala, Madras or Goa when it comes to Medical Tourism. “Bombay is only lagging because of the poor infrastructure as tourists find it
hard to travel from Point A to Point B in this city,” said Dr. Thomas.

Even Dr. Arun Mullaji, an Orthopaedic Surgeon who works at Lilawati and Breech Candy Hospital said, “Bombay has the best hospitals that offer treatment with high quality by using the latest equipment. The sophisticated technology assists in giving faster results with better recovery, more accuracy and less pain.” According to Dr. Mullaji, medical tourists will benefit the most by coming to Bombay because of the ‘low cost of medical care without any compromise to quality.’
Dr. Mullaji added, “If Bombay would optimize in terms of roads and infrastructure and follow the likes of Bangkok, Singapore, Shanghai or Kuala Lumpur this city would do wonders when it comes to medical tourism.”

When it comes to experienced and professional doctors, “The best doctors of India are in Bombay,” said Dr. Mullaji. The reason that Bombay’s doctors are good is, “The incorporation of computerized surgery for hip and even knee surgery that is not available in the United States as yet and is only available in Bombay,” said Dr. Mullaji.

Bombay has better trained surgeons because the doctors here not only handle more difficult cases but the patient-surgeon ratio is high giving them more expertise. This results in Indian surgeons having a ‘cutting edge’ and are more ‘dextrous’ confides Dr. Mullaji. “The medical tourists who come to Bombay arrive on a seasonal basis. They arrive in high numbers during the winter because the climate is good in Bombay,” said Dr. Mullaji. These medical tourists come from the United Kingdome, United States, Malaysia, Indonesia, Africa and even the Middle East. They tend to be middle to old people who are interested in knee replacement surgery when they visit Dr. Mullaji.

Dr. Thomas’s Cosmetic Surgery Institute attracts medical tourists who are interested in treatment including face-lifts, breast augmentation, liposuction, thigh lift or gynaecomastia. Non surgical procedures include botox, fillers, chemical peels, rejuvenation and even corporate makeover.

Dr. Mullaji suggested that ”When it comes to medical tourism, a tourist who come to India should be more worried about their health first and then tourism aspects such as enjoying the beach or nature. Thus, they should look to Bombay for the best health care facilities that the city has to offer.”
Aug 23, 2007
Source: Cybernoon.com

2. Tamil Nadu plans tourist desks at hospitals
With many hospitals in the state offering world-class medical facilities, the Tamil Nadu Tourism Development Corporation will soon launch a website on medical tourism to guide people seeking treatment.

"People across the country and even from Malaysia, Singapore, Pakistan, Bangladesh and Britain come to Tamil Nadu, especially Chennai and Coimbatore, for treatment. TTDC will host a website to guide them about hospitals and places of tourist importance in the state," TTDC managing director M Rajaram told PTI.

He pointed out that affordability is the prime factor for foreigners seeking medical treatment in Tamil Nadu. "We discussed the issue with the health secretary and officials from the Indian Medical Association and the formalities are being worked out," Rajaram said.

The TTDC will also assist foreign tourists with visa clearances. The corporation will also soon establish tourist desks at private hospitals to guide patients and people accompanying them. "These desks will be managed by the hospitals with guidance from the TTDC," Rajaram said. Most people who come to Tamil Nadu for treatment prefer to go in spiritual tourism too. "We will make special arrangements for patients and their family members to visit temples and other tourist spots at affordable rates," he said.

The TTDC also plans to launch a "Freedom Tourist Circuit" that will offer trips to birthplaces of freedom fighters and places of national importance, he said. "We are contemplating launching a Rural Tourist Circuit with special focus on more than 100 model villages in the state," he said. The Jain Circuit, which offers trips to Jain monuments in Tamil Nadu, including those in Thiruparthikundram, Vallimalai, Tirumalai, Tirunathar Kundru, Melchittamur, Sittannavasal and Uthamapalayam, attracts more tourists from north Indian states, especially Rajasthan, he said. With the state having five World Heritage Sites declared by UNESCO, including the Shore Temple at Mamallapuram, Brihadisvara Temple in Thanjavur and Nilgiris mountain railway, the World Heritage Circuit is also becoming popular among tourists, he said.

To attract more tourists to Tamil Nadu, the TTDC will organise travel marts and participate in fairs across the country and even abroad. Earlier, the corporation had announced that it would launch a 14-day South India Tour by rail and road on September 23 from Delhi to facilitate visits by people in northern states.
Aug 22, 2007
Source: Rediffnews

Religious Tourism

1. Keeping the faith
It has often been said that it is God who runs our country. And reposing faith in this belief are people who undertake pilgrimages. A city as ancient as Varanasi (Kashi) has attracted many over the ages. Catering to this movement of people were small guesthouses and dharamshalas. But quality and quantity accommodation never kept pace with the increase in traffic.

It is only in recent times with the domestic travel boom that the budget segment has found this market lucrative enough. And since faith has no class barriers, the biggest pilgrimage destinations have accommodation ranging from five-stars to unbranded guesthouses. Consider Varanasi. The five-star Taj Ganges and a Radisson Hotel for the privileged devotee stand along with the Trimurti Guest House and the Shiva Ganga Lodge for the masses. But still, it is the nondescript hotel which keeps the wheels of faith rolling.

Untapped potential
The problem is that of perception, not of plenty. India attracted nearly 2.4 million foreign tourists till June 2007 this year, who generated nearly US$ 3,590 million. It is on this creamy layer where the focus of Indian hoteliers rests, rather than the sea of domestic tourists that dwarfs the former in numbers. Says Homi Aibara, partner of Mahajan & Aibara, "In India, there is a confusion about the word 'tourist.' Our statistics unfortunately include even business visitors to India. And importance is given to destinations that foreign tourists visit, while domestic tourism takes a backseat. Of the total number of inbound travellers visiting the country, less then 25 per cent are on leisure and the rest are on business."
Domestic tourism, especially religious and pilgrimage tourism, has huge potential but is not taken into account. He informs, "Even though these travellers are low spending, their numbers are huge. Pilgrimage tourism is estimated to be well in excess of 100 million and Tirupati alone attracts more than 18 million visitors a year."

Connecting the threads
Pilgrims require quality accommodation at a price that fits their pockets, and which is not austere or lacklustre. A new breed of visitors, including affluent NRIs connecting to their roots and foreigners seeking mysticism form another part of this category. Says Patu Keswani, chairman and managing director of The Lemon Tree Hotels Company, which is positioning its Red Fox Hotels close to business districts and tourist/religious hubs, "Religious tourism is fundamentally a subset of domestic tourism and will pick up more and more. India is transforming into a consumption led economy due to which an individual has an increased propensity to spend, and will primarily target this domestic traveller."
It is not only the rising income that is fuelling this trend, but also the low-cost carrier revolution. Captain Gopinath, founder of Air Deccan, which is focusing on this segment as part of its growth strategy, says, "More than 60 per cent of the domestic tourists in India are religious travellers. Trends indicate that in the years to come religious tourism will expand further in the country with more people seeking spiritual and holy visits."

The players
Interestingly, this segment had no branded players specifically catering to it. Until now. Fortune Park Hotels has only recently developed Fortune Faith, which is planned for pilgrim destinations all over India. While two properties will come up in Shirdi, one scheduled to open by September this year, and the other shortly after, there are two existing properties - Fortune Kences at Tirupati and Fortune Pandiyan at Madurai. Statistics bolster this enthusiasm. The Fortune Hotel Kences at Tirupati recorded a 43 per cent growth in business in the first quarter of this financial year, compared to the same period last year, and the ARRs ranged between Rs 2,000 and Rs 2,500 with occupancy averaging 70 per cent. Suresh Kumar, president of Fortune Park Hotels, dwelling on the reason for developing these brand extensions says, "There are no national brands before Fortune Faith. Extensions add flexibility and muscle to the brand, and redefine the business in the domestic market. Thus we will develop Fortune Faith into a chain."

Another critical factor is keeping in mind the religious sentiments of a place, especially in the F&B side. While Fortune has taken a conscious decision to keep both of its properties in Shirdi strictly vegetarian, Kumar says decisions made in the future will be keeping in mind location compulsions and religious sentiments.

The selling point
Reaching out to the masses will require a strategy that will bring forth the value proposition as well as the cost-effectiveness, as well as leveraging alliances in the future. Says Narain, "We will be looking at a mix of getting business through the traditional travel agents route as well as through the online route." Ginger Hotels plans to construct 100 hotels within the next five years with a large chunk coming up in religious destinations. Hotels will be competing on pricing not only with other chains, but also with established standalone properties. Kumar points out that Fortune Faith will have prices ranging upwards from US$ 35-40 (approximately Rs 1,600). Says Keswani, "Earlier we were looking at prices ranging from Rs 1,800 to Rs 2,000. Unfortunately, the way land values have risen, we are looking at the Rs 1,200 to Rs 3,000 range."

On an average, room nights will range between one and three nights. Kumar envisages that travellers will spend a minimum night, given that these places, despite all said, are in remote locations and usually in the interiors. Also, a devotee perhaps taking a once-in-a-lifetime trip will want to savour a complete experience, and this will translate into an extended stay. Keswani agrees and says, "The length of stay will vary from one to three nights for most." With the development of the golden quadrilateral, business will increase manifold, as access to these places increases. It is in these satellite towns that there will be an upward surge in domestic tourism and, adds Kumar, which will cater to 80 per cent Indians in the domestic market.

Aug 2007
Source: www.expresshospitality.com

Luxury and Rejuvenation

1. ITC Hotels to launch spa brand 'Kayakalp'
ITC WelcomGroup has plans to launch its own spa concept called Kayakalp, meaning immortal body in Sanskrit. Its first facility is tipped to be the largest in the country. Speaking to Express Hospitality, Anil Chaddha, general manager of ITC Mughal Agra (a Luxury Collection hotel, part of Starwood Hotels & Resorts) revealed, "The spa will be spread across 50,000 sq ft with various health and rejuvenation treatments. It is a big project on part of the group and ITC Mughal is proud to have the first one."

The concept has been developed by ITC WelcomGroup and which include a mix of Indian and international treatments. According to Chaddha, Kayakalp will have eight treatment rooms and a hamam - another first in Indian hospitality. It will also have facilities like a temperature-controlled pool, observatory (with variety of plants) and relaxation chambers.

Tightlipped about the project, a senior official of the group informed, "Kayakalp is a big project and will be taken up in a phased manner." The spa at ITC Mughal is expected to be launched formally in November this year. Officials from the hotel group declined to comment on the investment outlined for the entire project and future possibilities of the spa in other ITC Luxury Collections hotels.
Aug 2007
Source: www.expresshospitality.com

Others

1. India next big market for leisure real estate

With its booming economy and burgeoning middles class, India is the next big market for the leisure real estate market, according to Kenneth May, chairman and chief executive of global leisure real estate leader Group RCI.

"India is poised for growth in leisure real estate and is at the helm of explosive economic growth," May said, inaugurating a 'Leisure Real Estate Symposium, in New Delhi on Friday. "The market for leisure real estate (in India) today is expected to gain further momentum over the next few years," he added.

Over 100 representatives from India's hospitality, real estate and travel industry attended the daylong event, which deliberated on trends in leisure real estate or non-hotel holiday accommodation facilities and opportunities for Indian industry. Referring to the growing middle class in India, May said, "With growing disposable incomes and aspirations and the enormous tourism potential in India, the time could not be better for the industry to launch new leisure real estate models that will meet the needs of the evolving consumer."

Speaking on the occasion, Amitabh Kant, principal secretary (industries & commerce) in the Kerala government, said, "With the growing purchasing power of the Indian, holidays are involving experiential and aspirational experiences for the traveller." Kant, a former joint secretary in the tourism ministry, said that the 'Incredible India' campaign of the government opened up newer destinations and new experiences like rural tourism and medical tourism for both the domestic and international traveller.

"Indian tourism is expected to grow at the rate of 20-25 per cent per annum till 2017, posing a huge opportunity for wealth creation in the country," he said. A Group RCI press release, quoting a World Travel and Tourism Council (WTTC) report, stated that India is expected to be the third fastest growing country in the world in travel and tourism demand over the next 10 years.

That growth, coupled with the 19.8 per cent increase in the number of Indians living in India with financial assets of over $1 trillion, are important factors to promote the growth of leisure real estate in India, it stated. In Friday's symposium, several panel discussions were held on issues like relevance of shared ownership leisure products in India and Asia, asset optimisation in real estate investment and implementing successful marketing and sales strategies. Among the leading Indian companies which attended the event were Cushman & Wakefield India, Indian Hospitality company, Reliance Industries, Parsvnath Developers, Starwood Hotels and Ambuja Realty.
Aug 24,2007
Source: Hindustan Times

2. Four places identified as shopping tourism destinations: Ambika Soni

The Centre has identified four destinations to launch India as a shopping tourism destination. Tourism and Culture Minister Ambika Soni said Shilparamam near Hyderabad, Noida in Uttar Pradesh, Aurangabad in Maharashtra and Bhubaneswar in Orissa have been identified for kicking off the project. More destinations may be added to the project which may be a public-private partnership venture.

Addressing a press conference after inaugurating the 57th TTF, a travel and tourism exposition, she said she hoped to pick a place in West Bengal also. Asked whether there would be duty-free shopping malls as part of the venture, the Minister said these places would showcase handicrafts and the rural way of life.

The experience would be different from those in Singapore or Dubai. She said the Centre was ready to share 25 per cent of the investment with either the State Government or any private party willing to invest in improving the infrastructure at these four destinations.Coinciding with the Commonwealth Games, a target of 10 million tourists has been set for 2010, she said.
Aug 20,2007
Source: The Hindu

Policy

1. Sapphire valley to be brought on country's tourism map:Azad
The Jammu and Kashmir government has decided to bring the world famous Sapphire valley at Paddar in Kishtwar district on the country's tourist map. Keeping in view the vast potential for promotion of pilgrim and adventure tourism in Paddar, steps would be taken to bring it on the tourism map of the country soon, Chief Minister Ghulam Nabi Azad said.

Paddar valley is popular across the world for blue Sapphire and houses sapphire mines in Pir Panchal ranges.

Paddar can be a perfect tourist destinations with high altitude meadow lands, snow-capped mountains, low lines glaciers, ice water rivers and high degree of communal harmony among the people living in the area, he said while addressing a gathering at Machail village. Referring to Machail Yatra going in the area, Azad said that thousands of pilgrims from within and outside the state participate in the pilgrimage every year to pay obeisance at the shrine.
"Secularism, communal harmony and pluralistic ethos was the biggest strength of the state and emphasized the need to further strengthen this distinctiveness," he said.

On the occasion, people also prayed for peace, progress and prosperity of Jammu and Kashmir.
The chief minister was accompanied by minister for rural development Jugal Kishore Sharma
Aug 24, 2007
Source: PTI via Economic Times

2. Tourists to get fast clearance at airports
Faster clearance at the immigration counters, being pursued hotly by the tourism and hospitality industry to facilitate quick and trouble free arrival of foreign travellers, may well be on the cards soon.

Coaxed continuously by the Tourism Ministry, the key ministries of External Affairs, Home Affairs and the Dept of Information Technology (DIT) are now working together to put in place a new IT-driven mechanism that will allow fast clearance to foreign passengers at the immigration counters, thus cutting the waiting time from 90 minutes to barely 10 minutes.

Earlier, the initiatives of the Tourism Ministry to get clearance for visa on arrival for 16 favoured countries were scuttled by the Union Home Ministry on the adverse comments by the Intelligence Bureau.

According to top official sources, concerns of both the Tourism and the Home Ministries can now be taken care by installing a revolutionary mechanism called the Adverse Person Information System (APIS) that would not only take care of the worries of the Intelligence Bureau but would also allow faster clearance to foreign tourists at the airports.

To make the mechanism work, the DIT is working hard to connect all the Indian missions and embassies abroad and all the Indian airports with a high grade computer network that would pass on information about India-bound passengers on a daily basis.

‘‘Under this system, if a mission or an embassy finds anything adverse about an Indiabound foreign national, it will put his or her name along with its observations and other details in the APIS. The immigration department would be required to check the APIS regularly. As the immigration clearance would hinge totally on the information provided by the APIS, there would be no problem to clear the passengers even if they are not from the favoured country and also give visa on arrival to passengers in some cases,’’ said a govt official.

Officials in the Tourism Ministry feel that if the visa on arrival is granted, India can raise its abysmal share in the world tourism trade that stands at a meagre 0.38 persons in terms of traffic volume and 0.69 pc in terms of total revenue receipts.

According to World Tourism & Travel Council forecast, India could become a favoured destination of foreign tourists if it manages to install proper systems in place and would be able to contribute $3 billion gross foreign exchange receipts and give employment to over 25 million people in the tourism and hospitality industry.
Aug 24, 2007
Source: Newindpress.com

Travel and Tourism Support Industries …and much more

Service providers

1. Tour operators get service tax relief
Domestic tour packages are likely to become cheaper. The government has decided to increase the rate of abatement for service tax on tour operators from 60% to 75%.

Having enjoyed the abatement, the tour operators will now have to pay service tax on only 25% of the total earnings. Earlier they were required to pay service tax (12.33%) on 40% of income earned from such packages.

The finance ministry issued a notification on Thursday revising the abatement rate, an official said. At present, a tour operator pays service tax on 40% of the gross amount earned by providing package tours. The package usually includes provision for transportation, accommodation and sight-seeing.

According to tour operators, the move will make tour packages to the country marginally cheaper by 2-3%. “It will help make India more competitive while attracting foreign tourists,” leading inbound tour operator Le Passage India managing director Arjun Sharma said.

However, travel operators point out, the issue of service tax continues to vex the industry. Travel operators have to pay service tax when selling their products abroad. In fact, hotels do not pay service tax when their marketing teams sell directly to travellers. This creates different playing fields for the players, tour operators said.

The country attracted 4.2 million foreign tourists in 2006, a growth of 14%. However, rising cost of hotel accommodation is making India an expensive destination for travel.

Increasing the abatement rate to 90% was a long pending demand of the tourism ministry. The proposal was examined by the advisory committee on service tax abatement. The committee recommended rate of abatement at 75% on package tours as against tourism ministry’s proposal for 90% abatement, he said.

2. MakeMyTrip.com comes to Kolkata
MakeMyTrip.com, one of India’s premiere online travel companies has launched its regional office in Kolkata. The offline presence complements the company’s online offerings, to provide customers in West Bengal with greater flexibility and choice while buying international and domestic holidays.

This launch is part of the company’s broader strategy to maintain market leadership by strengthening its presence in existing markets, expanding to newer markets, and introducing varied customer touch-points to purchase travel anytime and anywhere.

Mr. Deep Kalra, Founder & CEO, MakeMyTrip.com, speaking at the launch said, “Kolkata, in its capacity as a commercial hub for the Eastern market, presents a huge opportunity to travel solutions providers. The market sentiment supports our confidence. The Travel & Tourism market here has been growing at 20-25% y-o-y and is expected to be worth Rs. 2073 crores over the next three years.”

Over the past year, MakeMyTrip has looked at innovative ways of broad-basing delivery channels to enhance access and reach. Travelers can book through MakeMyTrip over the telephone, there is a 24 hour customer care centre where payments can be authorized over the phone through a secure gateway and the website is also the first travel portal in India to offer Payment-on-Delivery services.

Recognizing the need to cater to customers who require greater involvement in the purchase process, MakeMyTrip.com became the first travel portal to set offline physical offices that offer a human interface to access the choices provided on the website.

Travel Trends

Sharing more about the travel trends in the local market, Deep said, “The leisure travel market in Kolkata is set to witness an upswing – the share of leisure travel will grow to 48% from the current 40% in the next three years.
The last five years have witnessed a definite surge in the travel market here with 40% y-o-y growth in both domestic and outbound travel. Today, West Bengal ranks no. 6 in the country in terms of  turnover in the tourism sector after Maharashtra, Punjab, Gujarat and Delhi. We are confident that travelers in this region will utilize the services provided at our new Kolkata office to access “best deals guaranteed” through the website.

The new Make My Trip office is located at Sarat Bose Road and includes a dedicated sales and customer service team. Customers will be able to walk in, consult with the travel advisors and walk out with the best travel deals possible in the industry. Interested travelers can now visit the Make My Trip office, or call at 40058747 / 40058687 to have access to the best holiday deals in the market.

Elaborating on the customer benefit provided by the Kolkata office opening, Deep added, “We are constantly looking for ways to improve customer access and experience. With the Eastern sector gearing up as THE destination for tourists seeking adventure, spirituality and nature, the offline MakeMyTrip office in Kolkata would be able to assist them to develop a customized holiday as per their unique needs and preferences.”

Deep re-iterated MakeMyTrip’s commitment to the T&T market, “We believe that the key to maintaining our market leadership is an unrelenting commitment to innovation - innovation in our product offerings, technology and customer service. Our investment in full-service walk-in offices is a step in this direction”.

About the online travel industry

At 40% year on year growth, the online travel industry is a rapidly growing space, and is estimated to be worth US$ 2 billion by 2008. The travel boom, emergence of low cost carriers, proliferation of the internet and the growing acceptance of e-commerce over the last few years, are key factors that have contributed the emergence of this sector as a formidable force in the overall travel industry. According to industry estimates, the offline travel industry is expected to see its share drop from 32% in 2005 to 10% in 2008, owed to the growth in revenue of online travel agents. Make My Trip.com was the first online travel agency in India, and is the current market leader.

A glance at Kolkata travel market

• Kolkata represents 15% of the Travel & Tourism market in India

• Kolkata market expected to be worth Rs. 2073 over the next three years, growing at 25% y-o-y

• Domestic and Outbound travel in Kolkata has grown at 40% y-o-y in the last five years

• The most popular domestic and OBT destinations for tourists from West Bengal are Himachal Pradesh,  Uttaranchal and South-East Asia 

• Favourite international travel destinations for Bengalis - Thailand, Singapore, Malaysia, Europe and Australia
Aug 24, 2007
Source: Makemytrip.com

Research and Market reports

1. Tourists outnumber population in Himachal
Strange though it may sound, statistics reveal that annual tourist inflow to Himachal Pradesh, which earned a revenue of around Rs 1,000 crore from the tourism industry last year, outnumbered the local population.

"As per the last census figure, Himachal's population stands at nearly 61 lakh, whereas the tourist inflow to the state last year was 75.72 lakh which included two lakh foreign tourists," an official of the Himachal Pradesh government said.

Stating that Himachal earned Rs 1,000 crore from the industry in the last fiscal, he said to tap the full potential of tourism in the state known for the pristine beauty of the Himalayas, the government was encouraging the private sector to develop tourism-related infrastructure without disturbing the ecology.

The main thrust was employment generation and promoting tourism in the countryside and lesser-known areas.

Himachal's rural landscape offers varied and rich attractions to the tourists.

The Centre recently sanctioned Rs 21 crore for the development of three tourist circuits which included Shimla, Kangra and Sirmour.

Another proposal worth Rs 97 crore was sent to the Centre for development of areas including Chamba, Mandi-Bilaspur, Rohru-Chansal, he said. The official said the government wants to develop temple tourism and helicopter services in the areas under the project.

The Railway ministry, he said, has applied to UNESCO seeking world heritage status for the century-old Kalka-Shimla railway, one of the attractions for tourists visiting the state,
Aug 23, 2007
Source: PTI via Economic Times

Travel Characteristics of Indians

1. Exotic foreign locales beckon Indians
Gone are the days when Indians used to find solace and relief  visiting their native villages and enjoy their much earned summer or winter vacation  with their families and relatives.

The emergence of nuclear family set-up coupled with a steep rise in the income have changed the way they enjoy their holiday.

"If we ever happen to go through the holiday brief or note of the children which they often submit to their class teachers after their summer and winter breaks nowadays, we  would be at no wonder to find the vivid detail of the scenic and exotic place which they enjoyed with their parents. The note of their description will be more than enough to point out the latest fad in their lavish living," says Radhika Shastry, Managing  Director, RCI Group India, a global leader in non-hotel leisure accommodations."The Indian vacationer requirements have shifted rapidly during the past few years to something aspirational and luxurious," she says.

India is expected to be the third fastest growing country in the world in travel and tourism demand over the next ten years, according to the Pacific Asia Association . The growth potential along with the the 19.8 per cent increase in the number of the members living in India with financial assets of more than USD 1 million versus 6.5 per cent  growth worldwide is showing its impact in this sector, according to the Total Tourism Study by the Pacific Asia Travel Association.
Aug 22, 2007
Source: PTI via MSN India

2. Malaysia’s bid to woo NE tourists
Improved air connectivity and development of the tourism sector in the State are now providing incentives to the tourism industries of different countries to woo the people of the State as their prospective tourists. Exploring the turf of the North-east India for the first time, representatives of Tourism Malaysia, the nodal agency to promote Malaysia as a preferred tourist destination, are in Guwahati to talk business.

“Among all the north-eastern States, Guwahati is the place with a better air connectivity and the potentials to make it our starting point in the region,” said Roslan Abdullah, Director of Tourism Malaysia, North and East market.

The Malaysian delegation organised an interactive trade session with the city’s leading travel agents and tour operators. The sales mission to the city is aligned with Tourism Malaysia’s objective to target 4,00,000 tourist arrival from India, as a part of Visit Malaysia Year 2007.

With the craze of tourists gradually shifting from European countries to Asian destinations, Malaysia continues to witness a consistent increase in the Indian tourist arrivals. It recorded a total of 2,79,046 tourist arrivals from India in 2006 as compared to 2,25,789 arrivals in 2005, thus registering a 23.6 percent increase. The Malaysian government aims to attract 20.1 million tourists during Visit Malaysia Year 2007.

“We have witnessed more than 200 to 300 percent growth in tourist footfall since our first office was established in India in 1989,” he added. The mostly visited cities in Malaysia are the garden city Kuala Lumpur, the city of entertainment, Genting Highlands and Sabah, a state having cultural similarities with the NE India, like the bamboo dance.

Moreover, the leisurely travellers to Malaysia can make the most of the VMY passport that is first of its kind, which has been launched by Malaysian Tourism Ministry to commemorate the 50 years of nationhood.

The country has also signed a commercial agreement with the Kingfisher Airlines to promote its tourism sector.

Elaborating on the promotional visits to Guwahati, Abdullah said that “NE region is the potential emerging source market to woo the whole Eastern region, after which we are planning to explore Ranchi.” “Guwahati, in the near future, will become a prominent source hub of the NE region and realizing its potentials, we have initiated our interactive trade session with the city’s leading agents,” he added.
Aug 24, 2007
Source: Assam Tribune