Tourism and Travel Trends from India:
News and views on India's Travel and Hospitality Sector

Weekly News Related to Travel Industry in India

Top Travel Destinations
Places in the news
Travel and transportation infrastructure
Medical Tourism
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Holistic Healing Service Providers
Travel characteristics of Indians
Investment related
Travel and Tourism Support Industries …and much more

Places in the news

1. Historical site discovered near Rohtak

A new archaeological site dating back to the Harappan period had been discovered near Rohtak in Haryana.

Haryana Archives, Archaeology and Museums Minister Meena Mandal, who on Thursday visited the site, said it was discovered on a link road from Julana to Kirsola village, about 35 km from Rohtak.

She added it could provide information about the disappearance of Harappan Culture and its merger with post Grey Ware Cultures.

The site was discovered by a team of the state Archaeological Department led by Deputy Director J S Khatri in December last year.

Mandal said explorations were conducted by the department from January 2006 in the palio-channel of river Drishadvati, specifically in and around Meham in district Rohtak.

The site was found after earlier discoveries of Harappan culture near village Farmana, known locally as Daksh-Khera, led the team to further explore areas towards Julana in the Northeast direction, she said.

The team's efforts had also led to the discovery of three more sites -- Bedwa, Farmana two and Kheri Meham -- at regular intervals of five km each.
Thursday, February 15, 2007
Source: PTI via NDTV

Travel and transportation infrastructure

Sector: Aviation

1. Corporate India prefers private jets

Public air travel for many business executives is fast becoming passé. The new mantra is to own private jets which are also about having to avoid long check-in queues and waiting time.

Business jets or private aircrafts are giving corporates the freedom to choose when to fly and who they fly with.

The trend is seeing a huge demand. However, the exclusitivity doesn't come cheap. It costs anything between $3mn to upwards of $50mn to own one and even then there is a waiting period of five years.

"If you look at international growth around the world the culture is changing, especially here in India. Indians are recognising the need for business aviation just as Europeans have," said Sean McGeough, Vice President, Intl Sales, Raytheon Aircraft Company.

"The market place we have always looked at was the US but now we are looking at other market places and India is a part of that," McGeough said.

Booming market

Biz jets, seen as the indulgence of the super-rich, aren't new to India. Several honcho's including Ratan Tata and the Ambanis already own biz jets.

But companies like Raytheon and Bombardier are hoping to tap into a booming economy and anticipate they will sell between 25 to 30 aircraft in 10-year time. The sector is not without its share of problems though.

"The entire biz aviation community is working closely with the Indian government to facilitate access to corporate aircraft in the country. There is a huge growth, infrastructure will need to be changed," said Leo Knaapen, Manager, Communications, Biz Aircraft, Bombardier Aerospace.

Biz jets are the new mantras of success. Those corporates who have the moolah and aren't afraid to flaunt it are acquiring biz jets and the demand can be seen from the fact that over five planes were sold in just two days of the recently concluded air show.
Tuesday, February 13, 2007
Source: NDTV

2. Indian gets $500-m loan from KfW Bank

State-owned carrier Indian on Monday signed a contract with Germany-based KfW IPEX-Bank for a loan of $500 million (about Rs 2,250 crore) to finance the acquisition of 43 Airbus aircraft. The airline has commissioned the bank to finance the first batch of 10 aircraft.

The loan will have repayment tenure of 12 years, Indian said in a release here. Indian had placed an order for the purchase of 43 Airbus aircraft last year, the first of which was delivered in October 2006. The public sector airline will use these aircraft to extend its network beyond south-east Asia and the Gulf region.

Indian CMD V Trivedi and Peter Klaus, chairman of the board of managing directors of KfW IPEX-Bank, signed the loan contract in Frankfurt on Monday. The KfW bank has also signed for a 50:50 joint underwriting agreement with the Germany-based HSH Nordbank.

Subsequent syndication in the international bank market is envisaged by the underwriters, Indian said. The KfW bank specialises in financing of complex transport and infrastructure investments.

Indian is likely to induct 9 of the remaining 42 Airbus aircraft — 20 A321s, 18 A319s and 4 A320s — in a staggered manner. With the induction of these 43 new aircraft, the carrier will have a total of 117 planes operating under its network. The carrier is also planning to lease six regional jets in 2007.

Two wide-body A330 aircraft are expected to join the fleet in October 2007, with which the airline will expand its international operations to Melbourne and Guanghzou. The airline has plans to start a direct Bangalore-Male flight five times a week and a second daily flight to Dubai by 2007 winter.

Tuesday, February 13, 2007
Source: Economic Times

3. AP govt, AAI in pact for expanding airports

The Andhra Pradesh government has signed a MoU with the Airports Authority of India for expanding Vijayawada and Rajahmunry airports. While the government is planning to invest over Rs 70 crore for developing Vijayawada airport, Rajahmundry will receive about Rs 53 crore for renovation, according to a state government release.

Spread over 536 acres, the airport in Vijyawada has facilities for night landing and refueling. As per the new agreement, the government is planning to build a new terminal building for handling 300 passengers at an investment of Rs 30 crore. "We are also investing Rs 33 crore for strengthening and extending runway to 7,500 feet initially for A320/321 type aircraft. Eventually, the runway will be made suitable for the operations of wide-bodied aircraft," the release said.

A Doppler very high frequency omni range (DVOR) will also be installed at the airport at an investment of Rs 2 crore besides the Rs 5-crore upgradation planned for constructing a modern fire station.

The government is planning to invest Rs 3 crore at the Rajahmundry airport for introducing night landing facility. "The airport has an area of 365.5 acres. We are also planning to construct a new terminal at a cost of Rs 18 crore and the work will start next financial year," the release said. Plans are also being finalized for runway extension and land expansion at an estimated investment of Rs 30 crore.

Wednesday,February 14, 2007
Source: Economic Times

4. Raytheon to set up repair & maintenance unit with FBO
India’s growing demand for corporate jets has prompted US-based Raytheon Aircraft company to set up a company-owned aircraft maintenance and repairs facility in association with a fixed base operator (FBO) in the country in 2007.

Internationally FBOs typically offer a host of services to private jet users including re-fuelling, flight plan scheduling, getting clearances, quick security and custom clearances, car rentals, food and beverages, lounges, apart from maintenance and repair facilities. Though new for India, around 5,000 such FBOs are in operation in the United States alone.

There has been a spurt in interest among corporates for using business jets to save time and for their sheer convenience for on-the-move senior management professionals. Over the last two years, Raytheon sold over 20 business jets in India, notching up sales worth $60 million in 2006.

In the first two months of 2007, the leading manufacturer of corporate jets sold five aircraft worth over $30 million. “We hope to deliver anywhere between nine to 12 aircraft by the year end,” Raytheon Aircraft vice-president sales for Europe, Middle East, Africa and India, Sean McGeough told ET.

Giving an indication of the interest in corporate jets among Indian business houses, Raytheon said it was approached by at least 30 prospective customers in the just concluded Aero India Show at Bangalore. As per industry estimates, India currently has a pool of around 150 business jets and the number is likely to swell to over 500 by 2010.

Mr McGeough said Raytheon is in talks with a few prospective FBO partners to set up a joint venture in the country. “We are open to taking equity in the project, but the quantum of investment has not been decided yet,” he added.

In the United States, Raytheon owns all its maintenance facilities. The FBO facility in India would be open for use even by non-Raytheon customers. The high profile customers of Raytheon’s business aircraft include the Reliance group, Vijay Mallya, the Tatas, the Munjals of Hero Honda and the Mittals of Bharti group
Thursday, February 15, 2007
Source: Economic Times

5. Mangalore-Abu Dhabi flight inaugurated
Air India Express, the low cost airline of Air India, started its Abu Dhabi-Muscat-Mangalore and Mangalore-Abu Dhabi-Muscat service from Thursday.

With this, Mangalore is connected to two more locations in West Asia. The city had direct flight only to Dubai when the same airlines started its Mangalore-Dubai tri-weekly service on October 3, 2006.

The flight Boeing 737/800 (Abu Dhabi-Muscat-Mangalore) from Abu Dhabi and via Muscat landed at the Bajpe airport here at 10 p.m. on Thursday.

It took off (Mangalore--Abu Dhabi-Muscat) to Abu Dhabi at 11.55 p.m. to reach Muscat later. This flight will operate twice a week on Thursdays and Saturdays.

The flight to Dubai operates on Mondays, Thursdays and Saturdays. Abu Dhabi-Muscat flight became the second flight of Air India Express to operate between Mangalore and West Asia. The flight that landed at the Bajpe airport had taken off from Abu Dhabi at 4.10 p.m. (Abu Dhabi time).

B.R. Shetty, Managing Director and Chief Executive Officer of New Medical Centre Group of Companies that consists of UAE Exchange, Abu Dhabi; Rajesh Sequeira, co-ordinator, Karnataka NRI Forum, UAE; and Sudhir Shetty, general manager, NMC Group of Companies; were among those who landed here in the inaugural flight.

Mr. Shetty told presspersons at the airport that earlier if people from Mangalore were to fly to Abu Dhabi, they had to travel via Mumbai. People had to spend approximately 12 hours to reach Abu Dhabi via Mumbai.

Today, they took only four-and-a-half hours to reach Mangalore from Abu Dhabi. They spent an hour at Muscat. Describing the journey as a great experience, Mr. Sequeira said that people at the aircraft were happy and screamed in joy.

Mr. Vasudeva was present at the airport to receive the passengers of the inaugural flight.
Friday, February 16, 2007
Source: The Hindu

6. Airlines want private cos to supply ATF

In a bid to lower costs of aviation turbine fuel, the aviation industry has urged the government to allow private oil companies to supply fuel using existing infrastructure at airports.

At present, three public sector oilcos — Indian Oil, Bharat Petroleum and Hindustan Petroleum — have ownership over infrastructure through which they supply ATF to airline companies. The aviation industry has suggested that existing ATF storage and supply facilities at Indian airports should be converted to common user facility, which could be owned by a neutral agency.

Although private players have been allowed to supply ATF at non-metro and new
airports, only public sector oilcos have presence at existing airports, including international airports at Delhi and Mumbai.

In their suggestions submitted to the finance, petroleum & natural gas and civil aviation ministries, the Federation of Indian Airlines (FIA) has argued that private oil companies should be allowed to use existing infrastructure at major airports as it could lead to increased competition and subsequent lowering of ATF prices. It said that competition could put pressure on the profit margins of public sector companies which presently range between 15%-20%.

FIA further urged the petroleum ministry to encourage competition to avoid monopolistic pricing of ATF or jet fuel. ATF accounts for over 40% of the total costs of airline companies. Prices of jet fuel in India are almost 70% higher than international level due to high taxes levied by the government and hefty margins maintained by public oilcos.

The Indian aviation industry has been lobbying hard to ensure that ATF prices are brought down to international levels. According to industry estimates, if various taxes on ATF are brought down to 4% from present average of 23%, the sector can save about Rs 1,250 crore annually.

The civil aviation ministry too has planned to create common ground for private oil companies such as Reliance to sell Aviation Turbine Fuel (ATF). It is likely to provide them with land and other infrastructure facilities at major airports. The ministry will also allow international oil companies to sell ATF in the Indian market.

Saturday, February 17, 2007
Source: Economic Times

Sector: Railways

1. IRCTC, ICICI Bank sign MoU for e-Ticket vending service

Internet user base in India is going to cross 100 million mark by '07 end significantly increasing overall net ambiance in the country. That's what seemed to have encouraged Indian Railway to go for more and more amalga-mation of its services with Internet.

After highly successful i-ticketing and e-ticketing for the Internet users, IR is now going to start net based e-ticketing vending machines to be run by merchant's establishments in all the major towns for common mass.

E-points of sale (e-POS) machines located at merchant establishments or shopping malls in over 125 cities all over India will make e-tickets against re-served accommodations available for all. Tickets can be purchased through plastic money via payment gateways including that of ICICI bank or cash on payment of service charges as per major credit card rules.

A MoU has been signed today by Smt. R. Hasija, Group General Manager (IT), Indian Railways IRCTC and Shri S. Khandelwal, GM, ICICI Bank today to facilitate spreading of the service all around the country.

Quoting Railway Minister Mr. Laloo Prasad Yadav as saying in the MoU signing ceremony, a senior NFR official said, It is an important step in the direction of making Railway tickets easily available to mass. This is a pilot project and more such facilities is in pipeline for future.

With ever growing Internet penetration in India, introduced earlier, i-Ticketing and e-Ticketing of IRCTC came out to be smash hits generating good revenue for the IR owned organization. IRCTC handles electronic book-ings for 8,500 passenger trains out of about 14,500 trains.

The e-tickets are delivered to 83 towns once the payment gateways authorize a transaction. More locations are being added. Reportedly,Broadvision Inc, a California based service provider runs the IRCTC site.

Despite good growth, there are miles for IRCTC to go. Lack of availability of its website, possibly due to shortage of bandwidth, is a common complain. Out of around 16 crore IR tickets generated a year, IRCTC sold only 25 lakh in 05-06

Thursday, February 15, 2007
Source: Economic Times

Sector: Hotels and Hospitality

1. Starwood teams up with Brigade

STARWOOD Hotels & Resorts, US has signed up with Brigade Hospitality, part of the Bangalore based real estate developer Brigade Group for a 250-room Sheraton Hotel in Bangalore. Starwood will manage Brigade's Rs 300-crore project, which is part of an integrated township on a 39-acre land at Malleswaram in Bangalore city. The project is likely to go operational by mid-2009 with conferencing facilities, four restaurants and a health club and spa. Sheraton Bangalore will be part of a mixed-use integrated township comprising residential enclave, hospital, mall and a 30-floor tower - Bangalore's highest - having 1 million sq ft of commercial space.

When completed, this will be the only Sheraton brand operating in Bangalore. The existing ITC Windsor Manor Sheraton is expected to be re-branded , sources said. When contacted, a Brigade group official confirmed the tie-up with Starwood. Sources indicate that the new Sheraton is strategically located in the emerging business district of Bangalore. With the signing of Sheraton Bangalore , Starwood is understood to have 24 hotels both in operation and under construction in India.

The Starwood group recently signed up for its Westin brand in Gurgaon and Bangalore. Some of the Starwood brands operational in India are Westin, Sheraton and Le Meridien.

With an acute shortage of quality accommodation in Bangalore, demand continues to be robust owing to heightened commercial activity in the city, reflected in significant office space absorption in 2005-06 , according to the latest HVS survey. "A supply of between 8,000-9 ,000 hotel rooms for the city could lead to an oversupply situation by 2010, which will see a sharp correction in the escalating average room rates," states the survey. The average room rate in Bangalore is around Rs 15,000 per night. The IT, ITeS, engineering sector, banking and research are the dominant drivers of growth in the economy. Bangalore's first mover advantage in the IT sector coupled with improving infrastructure will enable it to retain its attractiveness as a prime investment destination. Starwood Hotels & Resorts Worldwide is one of the leading hotel and leisure companies in the world with approximately 850 properties (owned and managed) in more than 95 countries. Recently, it announced a strategy of reducing investment in owned real estate and increasing focus on the management and franchise business.

Friday, February 16, 2007
Source: Economic Times

Travel Characteristics of Indians

1. World betting on travel-bug bitten Indians

The Indian traveller is a hot commodity for tourist boards across the globe. Around 7.2 million Indians travelled overseas in 2006. Also, the country boasts of 28 million passport holders. No wonder, tourist boards are aggressively marketing their destination to India and have stepped up their investments.

But the latest figures, pertaining to average spend of tourists, shared by tourist boards, have a different, not so rosy, tale to tell. According to the Switzerland Tourism, the average spend (per day) of an Indian tourist has gone down from 400 Swiss franc in 2005 to 250 Swiss franc in 2006.

On the other hand, in Sri Lanka, the average length of stay has decreased from seven days in 2005 to five days in 2006, bringing down the average spend per visit. In the UK, popular destination among travellers, an Indian tourist spends not only less than his counterparts in other South Asian countries but almost half of what a Pakistani tourist spends. While the average spend (per visit) of a Pakistani tourist is £1,697, it’s only £829 for an Indian tourist.

“The yield per tourist has dipped. This could be because of the fact that now mass tourism is happening. Also, the shopping craze has mellowed down,” says Ritu Sharma, manager, India, Switzerland Tourism. With so many brands now available in the Indian market and malls mushrooming in not only metros but tier two and tier three cities as well, shopping craze among travellers is bound to go down.

According to statistics shared by the Sri Lanka Tourist Board, the per day spend of an Indian tourist has gone up from $70 in 2005 to $75 in 2006. However, since the average length of stay has gone down, the overall average spend per visit has also fallen.

“Visitors are now using Sri Lanka as a weekend destination or as a transit hub which has reduced the average length of stay and spend per visit consequently,” says Maadhuri Verma, destination manager, Sri Lanka Tourist Board. The board will be investing Rs 1 crore this year in Indian market to promote its destination. “Our marketing strategy will be focused on activities that will increase average length of stay and spend consequently,” added Ms Verma.

The International Passenger Survey conducted by Visit Britain (UK’s tourist board), reveals that the average spend per visit of an Indian tourist in UK is only £829 which is even less than a Pakistani tourist who spends £1,697 per visit. A Chinese tourist spends around £1,204 per visit; tourist from Singapore £1,028 and a Thai tourist spends £852.

Thursday, February 15, 2007
Source: Economic Times

2. Indian kitchen sets roadmap for global tourism

Global tourism trade is becoming sensitive to the needs of Indians travelling globally. The lack of vegetarian or Indian food seems to be deterring or holding back Indians from travelling to some of the most popular tourist destinations.

A large percentage of Indians are vegetarians, and even for non-vegetarians, the food that is usually plentiful and cheap in many parts of the world may not be very palatable for an Indian. Outbound tour operators in India realise this and even take Indian cooks with large groups.

Earlier, tourism boards of various countries did not consider the lack of Indian food as a major deterrent because Indians were not large spenders. Nor were Indians a major proportion of tourists travelling to their countries. Today the number of Indians travelling out of India is rising every year. And, Indian travellers are among the top ten spenders as a nationality in countries like Singapore and Malaysia.

Tourism boards have realised that the non-availability of vegetarian food, or Indian cuisine can be a real showstopper. Cox and Kings director contracting Karen Anand says: “Tourism boards are sensitive to the Indian travellers preference for vegetarian food.

They highlight this aspect when they make presentations to us. On our part we check out the restaurants ourselves to be doubly sure that the food served in restaurants suits the Indian tastes. It is not only vegetarians who have their preferences but also non-vegetarians.”

For instance, Singapore Tourism Board (STB) lists some 20 Indian restaurants based on their prices from the low cost (below S$10) to mid (S$11-20/head) to high (S$21 to over per head). Singapore Tourism Board area director, western India Rebecca Lim says: “Indian travellers need not worry about food in Singapore. We have listed these restaurants after recommendations from various people and a new restaurants are coming up every year.”

The Hong Kong Tourism board (HKTB) lists five Indian restaurants in the city, all of which are in the Quality Tourism Services Scheme (QTSS). The QTSS badge confirms that the restaurant abides by the standards of service, menu, hygiene and so on set by HKTB.

Two of the five Indian restaurants in Hong Kong are in the VIP scheme of the QTSS, under which such accredited restaurants offer a 10% discount on bills. The HKTB site also lists four restaurants offering vegetarian Chinese cuisine.

Friday, February 16, 2007
Source: Economic Times

3. Air Canada to end daily flights to India

Air Canada on Friday announced plans to discontinue its daily flights to India starting in May, citing insufficient demand for the route.

Canada's leading carrier currently offers one daily flight from Toronto to New Delhi, with a stopover in Zurich, but it has been unable to break even on the route, particularly during the summer.

"Our financial goals were not met because of the seasonal nature of traffic to New Delhi, which did not enable us to maintain profitable occupancy levels throughout the entire year," Air Canada spokesman John Reber told AFP. "We have tried several times over the past 20 years to make service between Canada and India work, ... but unfortunately we haven't found the right formula yet," he said.

Beginning in May, Air Canada will offer flights to India via a "code-sharing" arrangement with its Star Alliance partners. An estimated 700,000 people of Indian origin live in Canada, according to the 2001 census.

Saturday, February 17, 2007
Source: Economic Times

Investment related

1. Club Mahindra on an international tourism trail

Club Mahindra Holidays, a subsidiary of the $3.8 billion Mahindra group, has acquired a 97-room hotel in Austria as part of its strategy to take footprint on international tourism trail.

The timeshare holiday major has acquired Bon Alpina hotel in Innsbruck, Austria for a sum of Rs 25 crore. The resort, which is a venue for Olympic skiing thrice, was acquired recently, sources close to the deal told ET.

With timeshare concept becoming a catalyst for the growth of family holidays, the move by the company is said to give a shot in the arm to its line of business in the global arena.

Club Mahindra will spend additional Rs 15 crore to renovate and upgrade the the resort. The resort is a profit-making property and the company will set aside 10-rooms for its timeshare members. The rest of the inventory will be used as a regular hotel, source said.

Noting that the leisure industry is growing a compounded annual growth rate of 50%, the source said Club Mahindra will be targeting Indian diaspora and Europeans as its clientele apart from its regular timeshare member wanting to try exotic locales.

"The company is just tailoring its products to suit the changing demographic profile," the source said.

It had earlier entered into alliances with other resorts for utilisation of space and has already an RCI resort in Thailand. It is looking for a similar arrangement in Malaysia. With sales offices in Dubai and Kuwait, the vacation ownership company is also looking at setting up resorts in Sri Lanka and Maldives, the source added.

The lifetime holiday major, has registered a turnover of Rs 154 crore last year.

It has a membership base of close to 50,000, with an occupancy rate at its resorts registering an impressive 70 per cent.

Known for launching unique marketing initiatives, the company is now leveraging the mall culture and has set up 'Holiday World' in leading retail venues as part of its experiential concept marketing

Wednesday, February 14, 2007
Source: Economic Times

Travel and Tourism Support Industries …and much more

Policy Related

1. Tourism may get only 20% more

Even though the government has identified development of tourism sector as part of the initiative to increase investment in the infrastructure sector, the tourism ministry is likely to get only 20% leg-up in its Gross Budgetary Support (GBS) in the forthcoming Budget.

Against the ministry’s demand to increase its GBS from present Rs 830 crore to over Rs 1,600 crore, the government is likely to enhance budgetary support to only around Rs 1,000 crore. To bridge the short-fall, the tourism ministry now plans to step up public-private initiatives, especially in the hospitality sector.

With the hospitality sector already facing a severe shortage of room inventory, the Incredible India campaign - the country’s marketing pitch to woo tourists - would focus on attracting domestic travellers.

Around 20% of the total budgetary support - Rs 200 crore - would be spend on the Incredible India campaign. This is around 21% more than what was spent in 2006-07, pegged at around Rs 165 crore. Many in the tourism and travel sector feel that the domestic tourism market is still largely under-served. In recent months the Incredible India campaigns have been targeting the regional markets. In the international markets the ministry is targeting the ‘high-value or luxury’ tourists. At least four new foreign offices would be set up to woo high-end tourists.

Around Rs 200 crore is likely to be used to spruce up ITDC‘s hospitality assets and expand its room inventory over the next one year. The National Capital Region is facing shortage of around 30,000 rooms ahead of the Commonwealth Games in 2010. The government has also chalked out plans to create land banks for building hotels through the public-private partnership model on a build, operate and transfer basis. Already over 140 new hotel projects - leading to creation of over 12,000 rooms - have been approved by the ministry. A major thrust is being given to create a new category of ‘Bed & Breakfast’ hotels.

“Private sector participation would be sought to upgrade infrastructure in several identified tourist circuits,” said an official of ministry of tourism. Promoting the Buddhist circuit and rural tourism are high on the ministry’s agenda. Plans are also afoot to set up four new hotel and tourism training academies over the next one year to meet the rising need for hospitality manpower.

It still remains to be seen if the finance minister would agree to a long-pending demand of the industry to include tourism ministry in the Concurrent list of the Constitution.

Another demand of the hospitality sector has been to give infrastructure status to hotels in the major metros to enable hotel companies enjoy the benefits under Section 80 IA under the I-T

Tuesday, February 13, 2007
Source: Economic Times

2. Taj, Great Wall to mark India-China tourism year

The Taj Mahal and the Great Wall of China gleam together in the logo of the India-China Friendship Through Tourism Year, launched here Wednesday, as the two neighbours hoped to bridge the 'yawning information gap' with more travel and people-to-people contacts.

'The Great Wall of China and our Taj Mahal, which are both represented in the joint logo that commemorates our Friendship Through Tourism Year, are among the most easily recognisable symbols of travel and tourism the world over,' External Affairs Minister Pranab Mukherjee said at the launch of this defining event in the cultural calendar of the two countries.

'Yet not many from our two countries have seen both,' he added in the same breath. 'The need of the hour then is to create awareness in our peoples about the two countries as tourist destinations,' he said.

The Friendship Through Tourism Year was launched at the Ashok Hotel in the presence of Mukherjee, his Chinese counterpart Li Zhaoxing and Indian Tourism Minister Ambika Soni.

Li also called on Prime Minister Manmohan Singh and discussed a wide array of bilateral, regional and international issues.

Stressing on centuries-old civilisational links between the two Asian powers, Mukherjee said that apart from a small academic and media community, people of the two countries know little about each other.

'India and China are not strangers to each other. Yet, I will not be wrong in saying that today, apart from a small academic and media community in both countries, who have occasions to travel to each other's country, there is a yawning gap in information about each other in both our countries,' he said.

To accelerate tourism and travel, preparations are already underway to open a China National Tourist Office in India. An Indian tourist office is also likely to be operational in China soon.

Alluding to growing strategic and economic ties between the two countries, Mukherjee clarified that there was no rivalry and stressed that both countries can grow together.

'Our leadership has affirmed that opportunities for development are vast for both countries and there is enough room for accommodation of both our growth trajectories,' he said.

'As good neighbours and partners in development, we must grow together while remaining sensitive to each other's concerns and aspirations,' he added.
Wednesday, February14,2007
Source: IANS via Yahoo! News

3. India wants liberal visa regime, Pak says NO

With Foreign Minister Khurshid Mehmood Kasuri's visit to New Delhi less than a week away, India and Pakistan are yet to resolve their differences on a liberalised visa regime as Islamabad has rejected a number of proposals from New Delhi in this regard.

Though Kasuri and his Indian counterpart Pranab Mukherjee had said during their meeting here last month that both sides would finalise the new visa pact before Kasuri's visit to India on February 20, officials said no headway has been made yet towards clinching the agreement.

Among the Indian proposals rejected by Pakistan is one for visas on arrival and another on creating a special visa category for pilgrims and students.

Kasuri will travel to New Delhi for a three-day visit to take part in a meeting of the India-Pakistan Joint Commission and to hold talks with Mukherjee on issues related to the bilateral peace process.

Officials in Islamabad said the Indian side is waiting for Pakistan to respond to a comparative assessment of proposals from both sides that was presented to Kasuri during his talks with Mukherjee.

They pointed out that Islamabad has ‘virtually struck down or watered down’ New Delhi's proposals to liberalise what is considered the ‘most regressive visa regime’ hampering the process of enhancing people-to-people contacts between the two countries.

Ahead of Mukherjee's trip, Kasuri had said Pakistan was ready to sign a new liberalised visa pact during the visit. He was apparently surprised when it was pointed out during talks that Pakistan had rejected India's proposals made in 2005, including the introduction of pilgrimage and student visas and the issuance of visas on arrival.
Thursday, February15, 2007
Source: PTI via Indian Express

4. Indo-US industry body demands more attention to tourism sector
The Indo-American Chamber of Commerce (IACC) today said the Centre should bring tourism in the Concurrent list of the Constitution for the orderly growth of the sector on a pan-India basis.

"The tax structure needs to be harmonized to ensure uniformity of levies on tourism related sectors including hotels, tour operators and travel services as arbitrary and ad-hoc imposition of levies by some State Governments have stifled the tourism growth," the Chamber said.

"A planned and scientific business model for tourism pre-supposes showcasing India as a whole as a tourist destination with its varied and rich natural endowments," IACC said here in a release.

It was possible only when the Central Government takes more initiatives in conjunction with the State Governments, such as setting aside more funds for tourism development through budgetary allocations and making legislations than promote tourism, the chamber said.

In some states, there are focused policy initiatives to develop the tourism sector, which is netting in considerable revenue from both from foreign and domestic travellers, the chamber said.

It is also important to grant an infrastructure status to the hotels so that they can tap resources for construction and modernization in a much easier manner, IACC said adding that some State Governments have granted industry status to the tourism.

Wednesday, February 14,2007
Source: PTI via newKerela.com

Service Providers

1. India inspirited
It's all there — spirituality, different religions and luxury — a tour for foreigners that you might covet.

What is it?
Travel is one of the most enriching purchases you can make in life. And the Himalayas is one of the most spiritual experiences you can have

Asia Transpacific Journeys (ATJ), an American travel company, is celebrating its 20th anniversary as a tribute to India. It promises a trip to the less-travelled regions of north India in 16 days and is named “In the realm of the spirit — temples and monasteries of the Indian Himalaya”.

What is in it for you?
You have ample time to plan. The trip starts on September 15, 2007 and the bookings are already open. ATJ has been an expert in travel to Asia and the Pacific Rim for the past 20 years.

This trip to north India is one of 18 different itineraries for small groups (maximum 16 travellers) that will showcase in-depth cultural explorations of the region.

The catch phrase for those who have never been there in the lap of the Himalayas is the contrasting spiritual traditions and unparalleled exposure to many different cultures and religions. The many styles of temple architecture and the distinct rituals is a feast for the mind and spirit.

An enamouring list of places — Buddhism in Ladakh, Sikhism’s embrace of all humankind at Amritsar, the enlightened message of compassion espoused by the Dalai Lama in Dharamsala, the intense devotion in sacred Haridwar, and the mystic yogic tradition prevailing in Rishikesh.

Accommodations range from heritage hotels to five-star boutique properties to rustic huts near an 11th century monastery. The journey culminates in Delhi at Hotel Imperial, reckoned among the finest hotels in Asia. The farewell dinner would be at the Imperial’s Spice Route, recognised as one of the world’s top 10 restaurants by Conde Nast Traveler.

Why are we writing about it?
The piece de resistance of the trip is a three-night, end-of-sojourn stay at the spa Ananda in the Himalayas. This retreat recently garnered the coveted World’s Number One Destination Spa award from Conde Nast Traveler magazine.

Included are yoga and meditation classes, steam room and jacuzzi facilities, and morning signature wake up tea. Additionally, on offer are 79 different herbal treatments and an extensive menu of massage options.

What are the damages?
Travelling with your partner? Per person, your travel costs will come up to $5,695 exclusive of international air ticket charges. That is for people travelling from abroad. Internal air ticket charges come up to $510. For one more additional person, the charges are up to $1,100.

The rate includes beyond-the-ordinary lodging, meals, transport and private guide, as well as many other features. Included in the per-person land costs are accommodations, nearly all meals, transfers, visa fees, tips, entrance fees, medical and emergency insurance and a comprehensive pre-departure packet. ATJ also arranges for international air through its in-house air department.

Take it or leave it?
Obviously, this is a package for foreigners to get a taste of India. You should be crazy to travel north India at such exorbitant rates. Then why did we write? We were floored by the Himalayan spa and the spirituality thrown in the package. Who knows, one of us might like this outrageously ticklish travel bug bite.

Tuesday,February 13, 2007
Source: Business Standard

2. Redefining biz travel, Kuoni style

Kuoni Travel Group, India today re-branded its business travel division BTI Sita to HRG Sita India.

David Radcliffe, CEO, Hogg Robinson Group Plc, said: "Our aim is to demonstrate real value to our clients' corporate travel expenditure. India is an important market for HRG, and by cementing our existing relationship with Kuoni Travel Group to form HRG Sita India, we are providing an additional valuable and stable service to our clients."

Zubin Karkaria, CEO and MD, Kuoni Travel Group, India and South Asia, said business travel is growing at over 15% per annum in India, and corporates are looking for much more than plain vanilla solutions to their travel needs. "They see service providers going beyond, by reducing costs, increasing efficiencies and making a critical difference to their business. This is where Kuoni will step in with HRG Sita India by offering solutions that enhance value through innovation, technology and commitment to excellence."

Wednesday, February 14, 2007
Source: Business Standard

Travelogue

1. KLM unveils 'design own luggage label scheme'

Indian visitors of klm.com can now design their own cool luggage labels with incorporating a selected image or their own photographs. The luggage labels can be personalised. A photo of the kids, the dog, a holiday or party picture, anything is possible! Alternatively a KLM-image can be selected from a gallery of five categories.

After ordering, the labels are sent to the chosen address of the customer. The labels available free of cost for anyone who visits www.KLM.com. The limited period offer lasts as long as there are tags in stock. According to Tony Dryden, regional marketing manager, KLM - Northwest, India, Nepal, Bangladesh, Bhutan, Sri Lanka & Maldives says, "KLM is proud to be the first brand to use this innovative concept in India. The ordering process of the labels is quick and fun, while everyone likes to receive these practical presents that they have designed themselves. With this promotion, KLM is tuning into the 'personalisation' trend."

Malaysia Airlines’ scheme

Malaysia Airlines (MAS), the national carrier of Malaysia, has announced its new tactical initiative for the India market. Purchase one business class and avail an attractive wavier -off 80% on next business ticket to Kuala Lumpur and Singapore. This new offer is valid for travel till March 31, 2007, effectively from the carrier getaways of Delhi, Chennai, Bangalore and Hyderabad.

Elaborating further on the new tactical initiative Mr Christopher Yek, Regional Manager, Malaysia Airlines, South Asia said," This 'value for money' proposition would be a rewarding incentive to the business travellers, who can keep up with their meeting schedules and simultaneously take an extended break to unwind with their companion.

Business at leisurely pace is the due ideation behind this offer. Additionally, travellers stand to avail an attractive 85% off on second business class ticket on beyond Kuala Lumpur routes to explore the rest of the world with their companion on Malaysia Airlines."

Gulf Air's exciting seat sale

Gulf Air, the national carrier of the Kingdom of Bahrain and the Sultanate of Oman, keeping with the tradition of welcoming new seasons & in their continuous effort to innovate and serve Indian travellers better, announces the introduction of their exciting Seat Sale.

Open to all passengers from Bangalore to selected destinations in Europe and the Middle East like Abu Dhabi, Dammam, Doha, Dubai, Kuwait, Muscat, Riyadh, Frankfurt, London and Paris. The seat sale, will offer discounts from Bangalore to around 10 sectors starting from as low as Rs 12,000 and Rs 16,000 for a return ticket to Dubai and London respectively. Similar exciting offers exist to destinations in Europe and Gulf countries

Thursday, February 15, 2007
Source: Economic Times

2. Makemytrip.com touches $100 million mark

Makemytrip.com, the travel portal, has reason enough to celebrate. The company crossed the $100 million sales mark on February 12. This, Deep Kalra, founder and CEO, Makemytrip.com, says was the target set to be achieved by March 31, 2007.

Now the company has revised its March 31 target to $120 million. The record sales it has achieved are the result of the dynamism of late in the Internet space. "It clearly indicates that consumers have embraced the medium," says Kalra.
The portal was launched at a time when people weren't buying online at all. Over the years, e-commerce has undergone a sea change. "Online buying habits have changed tremendously," Kalra observes. From chat and e-mail, the consumer has shed his inhibitions towards e-commerce and is confidently buying online, realising the value he's being offered.

The recent surge of travel portals has made this category highly competitive. Other players in this sector are Cleartrip.com, Yatra.com, Travelguru.com and Aarzoo.com. But Kalra is undeterred because he says makemytrip.com has a clear lead with more than 55 per cent market share.

Moreover, he says, Makemytrip.com has created a huge brand name and its recall is higher than even airline brands. With the market getting highly competitive now, Kalra says, "There are two key factors that we will be required to sustain – brand proposition and brand recall."

Makemytrip.com will launching a new Web 2.0 version of the site in the next two weeks. This will enable several more services such as reviews, testimonials and consumer ranking of hotels, besides facilitating user-generated content.

Thursday, February 15, 2007
Source: agencyfaqs! story