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

1. Taj still top draw for foreign tourists: Poll
The Taj Mahal may be in danger of falling off the list of the new seven wonders of the world, but it remains the most enduring image of India. The superbly proportioned marble monument is, despite efforts to promote alternate attractions, by far the biggest draw for foreign tourists.

The monument of Shahjahan's love for Mumtaz Mahal — much discussed and subject of grand celluloid creations — is the most recalled Indian destination. The findings are part of a recent Gallup poll commissioned by the tourism ministry, "Evaluation study of overseas markets", that interviewed 602 trade partners, 8,295 travellers and 518 recent travellers.

The survey noted that 67% travellers mentioned Taj as the most popular attraction of India, with other competing attractions such as the beaches of Goa and the Jaipur palaces coming a distant second and third. Also, the survey claims that for recent travellers, the India experience has indeed been 'incredible'. About 97% of them mentioned that their experience met or exceeded expectations and highlights were warm and friendly people (50%), cultural diversity (46%) and plenty to see and do (45%).

Another significant finding is that India seems to be attracting visitors who are at the top end of the socio-economic pyramid. More than half of the recent travellers interviewed spent over $3,000 during their stay, including the cost of accommodation and air tickets.

While interest in Asian destinations has increased by 20% in source markets like Middle East, Canada, Europe and Americas, interest in traveling to India is around 7%. Among Asian destinations, India is trumped by Thailand (37%), Mainland China (31%) and Japan (31%).

Internationally, according to World Travel and Tourism Council, Africa registered the highest annual growth for international tourist arrivals, above 8%, in 2006 followed by Asia and the Pacific region (7.6%). In sub-regions, South Asia registered the highest annual growth in 2006 of 10.1% followed by Sub-Saharan Africa (9.4%) and South-East Asia (9%). Europe and the Middle East showed a growth rate of 4% in 2006 while the American region was lowest with 2%.

While there is no doubt that India seems to be riding a new interest in it, the bad news is that the awareness is mainly through word-of-mouth. Only 1% of travellers interviewed referred to the tourism ministry's website. The prime attraction in visiting India is sightseeing, followed by cultural events and shopping.

For those who are not keen on travelling to India, the main reasons were safety and hygiene issues or disinterest in what India had to offer.

June 7, 2007
Source: Times of India

Travel and Transportation Infrastructure

Sector: Aviation

1. Jet airways creates European hub in Brussels
Jet Airways has announced the creation of a European hub in Brussels. Jet Airways will work closely with Belgian carrier, Brussels Airlines, in order to offer travelers seamless connections between Europe, the United States, Canada, Africa and India.

On August 5, Jet Airways will launch daily service from Mumbai to New York's Newark-Liberty International Airport via Brussels, and later this year plans to introduce daily service from Delhi to Toronto via Brussels. The Brussels hub will enable passengers from Delhi also to connect effortlessly to New York, and Mumbai passengers to be streamlined onto the flight to Toronto. Eventually, Jet Airways will operate as many as ten daily flights from Brussels between cities in India and cities in the United States and Canada. Subject to government approvals, Jet Airways plans to operate not only from Mumbai and Delhi, but also from Bangalore, Ahmedabad and Chennai, to Los Angeles, Chicago and New York-JFK, all via the Brussels hub.

Jet Airways and Brussels Airlines have signed a Memorandum of Understanding implementing code-sharing, a frequent flyer partnership, and through check-in facilities. Brussels Airlines will code-share on Jet Airways' flights between Brussels and Mumbai, Delhi and Toronto. Jet Airways' initial code-sharing with Brussels Airlines will cover the Belgian airline's flights from Brussels to Stockholm, Oslo, Birmingham, Geneva and Madrid. The goal is to expand the code-sharing to a total of 25 routes from Brussels. As part of Jet Airways' comprehensive expansion plans, its chairman, Naresh Goyal, announced that deliveries have commenced of 20 new wide body aircraft. The airline's first B777-300ER and Airbus A330-200 aircraft were received today in Brussels. Commenting on the set-up of the European hub in Brussels Airport, Goyal said, "Jet Airways was looking for an opportunity to mesh its expansion plan to the USA and Canada with an efficient hub in Europe that is home to a strong national carrier offering a wide network... and we have found it all at Brussels. Jet Airways is also pleased to offer customers in Belgium a world-class in-flight product, with the latest innovations in the airline industry."

With the signature of this agreement, Brussels Airlines increases its portfolio of long-haul destinations to a total of 55. "This perfect match of schedules allows our European and African passengers to connect smoothly to and from India and North America," says Philippe Van der Putten, CEO of Brussels Airlines.

Wilfried Van Assche, CEO of The Brussels Airport Company observed, "As the airport of the capital of Europe, we want to offer our passengers more direct flights to the rest of the world. A double daily link to India is a unique event in the history of our airport and we are extremely proud to welcome the Jet Airways' hub at Brussels. It will not only stimulate the business and tourism links between Belgium and India, but in cooperation with Brussels Airlines, it will also make Brussels Airport a major gateway from Africa and Europe to the Indian sub-continent and North America."

Jun 5, 2007
Source: travelvideo.tv

2. Frequent flyers get more frequent
Spending a lakh plus rupees for a dream holiday is no longer the privilege of a selected few in India. Nor are the destinations limited to, hitherto most popular, Singapore and Thailand. Increasingly, the Indian holidaymaker is looking for fresher pastures offshore and is willing to spend for it.

As per the estimates provided by Cox & Kings India, the total outbound figure for 2005 was around five million and went up to almost six million in 2006. Indian outbound travel to Asia Pacific destinations, according to PATA's Strategic Intelligence Center, grew 20 per cent last year and has been growing at 9.8 per cent every year on average since 2001.

Though even the current figures are considerable, what excites most international holiday marketers is the potential that India holds. The outbound travel segment accounts for just 10 per cent of the total travel industry and has immense growth possibilities.

"With a population of more than 1.1 billion and GDP growth of more than 9 per cent per annum, the country offers enormous potential for future growth in outbound travel," said The Travel Business Partnership's editorial director, Nancy Cockerell. "And as it reveals clear opportunities for market segmentation and niches, the market is already showing signs of maturing."

"The Indian society is being increasingly driven by consumerism. Foreign holidays are becoming more aspirational by nature. As a result, the society-conscious Indian is making an international holiday an essential element of his/her annual plan," said Sunil Gupta COO, SOTC, the outbound arm of Kuoni India. "As the average Indian’s spending power has gone up, so too has his interest in overseas travel and the willingness to shell out money. The rise in disposable incomes has led to more families opting for annual foreign holidays." As per industry estimates, by 2008 Indians will spend more than US $4 billion on travel alone.

Buoyed by the burgeoning Indian outbound travel segment, several countries have upped their marketing activities in India. Also, due to greater visibility of India in the global markets, thanks to the "Incredible India" campaign spearheaded by the Ministry of Tourism, not only have the travel outfits such as Abercrombie & Kent, Kuoni and American Express have set up shops, various Tourism Promotion Boards of countries like Finland and Egypt have started wooing the Indian outbound tourist.

That Indians are one of the biggest spenders make them worth pursuing by various countries. Said Nikhil Kumar, head, Outbound Travel, Abercrombie & Kent India, "According to Singapore Tourism Board Indians spend an average US $ 1,200 a visit, while the Americans spend US $700 and the British US $500. It is estimated that Indians spend almost four times as much as the Chinese."

Added Maggie White, general manager, South/SE Asia & Gulf Countries, Tourism Australia, "Indians traveling to Australia are essentially the seasoned tourists of Sec A, A+. We wouldn’t categorize them as compulsive shop-o-holics, but their spending patterns are comparatively high. Indians love to indulge in a variety of experiences ranging from nightlife, fine dining, soft adventures, sight seeing, shopping and family fun. The average expenditure on the whole trip, including prepaid airfares and accommodation in 2005 was AUD $4,448."

Foreign tourist offices, some of who have simplified visa procedures for Indian tourists, are increasingly recognizing the growing numbers. "As travelers, Indians do not book months in advance and they prefer to finalize their travel plans maybe couple of days before the scheduled tour," said Arup Sen of Cox & Kings. "In such circumstances the countries that provide visa-on-arrival or issue visas in a couple of days get preference; one of the main reasons why countries in the Far East remains popular."

Australia, for example, has enjoyed 33 per cent growth in Indian arrivals in the first half of 2006 thanks to the launch a programme in India that allows preferred travel agents to recommend visa approvals. In 2005, Mauritius introduced visa-on-arrival for Indians. In one year they have witnessed an increase in arrivals by as much as 40 per cent.

With opening of Indian skies, a larger number of international airlines have entered the Indian skies; thus increasing seat capacities and making airfares competitive, benefiting the customer. "In 2004 there were only 35 direct flights on the India-UK route; this has gone up to 125 direct flights as of 2006," commented Arup.

As per industry sources, the Indian outbound market can be segmented on the basis of exposure levels: lower the exposure, higher the preference towards package tours. Package holidays are primarily for a person going abroad for the first or second time, is traveling with family and needs some "hand-holding". These travelers usually visit the Far East, taking the Singapore-Bangkok-Malaysia sector the first time and US/Europe tours the second or third time. The common factor remains that they prefer to travel in all-Indian groups with an Indian tour guide and eating Indian food.

Though this segment still accounts for almost 50 per cent of outbound travel market, the other segment of leisure-seeking FIT (fully individual travelers) is also growing in leaps and bounds. This segment comprises a well-heeled, exposed traveler looking for very little guidance in his custom-fitted holiday; with or without family. The destinations he seeks are unique and products out of ordinary

With higher margins in this type of market, several international agencies are actively pursuing the FIT traveler. Explained Arup Sen, "The well-heeled Indians are always on a look out for something "different". New destinations such as Turkey and Egypt are the flavor of the season and people have also started enquiring about destinations in Eastern Europe. In fact, the recently introduced Chamonix-Mont Blanc Mountains in France, brought us over 10,000 bookings within days of the launch."

"Specialized tours will also gain importance and one will see more and more travelers opting for health holidays, spiritual getaways, adventure, wildlife vacations amongst others," said SOTC’s Sunil Gupta." Today their numbers might not be so substantial, but these specialized and short haul holidays will drive the Indian tourism industry in the future."

Cruising is also emerging as a popular holiday option among Indians, according to Ms Cockerell, who predicted that India will become the second largest market for cruises after Australia. She said: "In 1999, when Star Cruises entered the Indian market, it had 10,800 customers in its first year. Estimates suggest that by 2008 approximately 30,000 Indians per year will go on a cruise."

Be it the mountains, or a beach or even a spiritual getaway; the Indian traveler is ready to discover the world; albeit on his own terms!

Jun 7, 2007
Source: Economic Times

Sector: Hotels

Niche Tourism

Medical
Spiritual & religious

1. Kashmir wakes up to Buddhist tourism
The scenic Kashmir Valley has finally woken up to its lesser known Buddhist legacies to attract tourists from across the world.

Taking a cue from the central government sponsored "Come to India - Walk with the Buddha" campaign, which targets tourists from Southeast Asia, Kashmir plans to revamp the Buddhist heritage of the valley.

"We have historical links with Buddhism and need to do something to promote its legacies in the valley," Farooq Ahmed Shah, director of the state tourism department, said.

The idea is to open up the centuries-old Buddhist places of worship in the valley to foreign and Indian tourists who throng the Buddhist-dominated region of Ladakh.

"This would not only glorify our past but also give a much-needed fillip to foreign tourism in Kashmir," Shah added.

He said the tourism department would develop a "Buddhist circuit" of Kashmir.
"We have asked the central government to include the Kashmir Valley in its Buddhist tourist circuit."

"The government has earmarked Rs.20 million for the first phase of preservation and developmental plans of two monasteries in Kashmir - at Harwan in Srinagar and at Ushkura in Baramulla," Shah said.

The state had also approached the Archaeological Survey of India (ASI) for the preservation of these Buddhist heritage sites.

Harwan, 20 km from the heart of Srinagar, houses the 3rd century Kushan sites. Located at the bottom of Zabarwan hills towards the northern bank of Dal Lake, it was once a thriving Buddhist centre.

It has also been established that the great Kushan ruler Kanishka had held the Fourth Buddhist Council here in the 1st century AD.

Remains of a monastery and a stupa, though in a state of neglect, can still be seen. Surviving tiles of the ruins display a variety of sculptural and decorative motifs.

Monastic establishments and terracotta artefacts have also been unearthed in Ushkura, known as Haviskapura in ancient times, in north Kashmir's Baramulla district, some 100 km from here.

Similar discoveries were also made at Ambaran Akhnoor in Poonch, over 30 km west of Jammu. Historians believe that Akhnoor was a stopover for Buddhist monks travelling from Patliputra (now Patna) to Takshasila or Taxila (now in Pakistan).

Buddhism at one time flourished in the Kashmir Valley though its imprints are slowly getting wiped away due to apathy on the part of the state and the people.

Buddhism, it is believed, had become a dominant religion in Kashmir during the time of emperor Asoka. It is also said that Srinagar, known as Shrinagari in ancient times, was first established by Asoka.

Though Buddhism is said to have entered Ladakh from the Kashmir Valley, the monasteries are well preserved in Ladakh, Zanskar and Kargil while being abandoned in the valley.

The twin districts of Ladakh and Kargil have extensively benefited from religious tourism. Lakadh last year received over 43,000 foreign tourists, according to official figures.

According to a study by the Federation of Indian Chambers of Commerce and Industry (FICCI), about 200,000 Buddhist tourists visit India every year. It estimates that this number could witness a sharp 400 percent rise by 2012 if Buddhist circuits are identified, restored and their infrastructure upgraded.

The study adds that Buddhist tourism could yield India $1 billion annually in the next five years, up from the current $125 million.

Shah, a pioneering force behind the revival of Kashmir's tourism sector, said the state had enormous potential to attract heritage tourists.

"We were quite inspired by the FICCI findings," Shah said. "If everything goes as planned, Kashmir might as well benefit from the Buddhist tourist influx," he added.

The scenic Kashmir Valley has finally woken up to its lesser known Buddhist legacies to attract tourists from across the world.

Taking a cue from the central government sponsored "Come to India - Walk with the Buddha" campaign, which targets tourists from Southeast Asia, Kashmir plans to revamp the Buddhist heritage of the valley.

"We have historical links with Buddhism and need to do something to promote its legacies in the valley," Farooq Ahmed Shah, director of the state tourism department, said.

The idea is to open up the centuries-old Buddhist places of worship in the valley to foreign and Indian tourists who throng the Buddhist-dominated region of Ladakh.

"This would not only glorify our past but also give a much-needed fillip to foreign tourism in Kashmir," Shah added.

He said the tourism department would develop a "Buddhist circuit" of Kashmir.
"We have asked the central government to include the Kashmir Valley in its Buddhist tourist circuit."

"The government has earmarked Rs.20 million for the first phase of preservation and developmental plans of two monasteries in Kashmir - at Harwan in Srinagar and at Ushkura in Baramulla," Shah said.

The state had also approached the Archaeological Survey of India (ASI) for the preservation of these Buddhist heritage sites.

Harwan, 20 km from the heart of Srinagar, houses the 3rd century Kushan sites. Located at the bottom of Zabarwan hills towards the northern bank of Dal Lake, it was once a thriving Buddhist centre.

It has also been established that the great Kushan ruler Kanishka had held the Fourth Buddhist Council here in the 1st century AD.

Remains of a monastery and a stupa, though in a state of neglect, can still be seen. Surviving tiles of the ruins display a variety of sculptural and decorative motifs.
 The scenic Kashmir Valley has finally woken up to its lesser known Buddhist legacies to attract tourists from across the world.

Taking a cue from the central government sponsored "Come to India - Walk with the Buddha" campaign, which targets tourists from Southeast Asia, Kashmir plans to revamp the Buddhist heritage of the valley.

"We have historical links with Buddhism and need to do something to promote its legacies in the valley," Farooq Ahmed Shah, director of the state tourism department, said.

The idea is to open up the centuries-old Buddhist places of worship in the valley to foreign and Indian tourists who throng the Buddhist-dominated region of Ladakh.

"This would not only glorify our past but also give a much-needed fillip to foreign tourism in Kashmir," Shah added.

He said the tourism department would develop a "Buddhist circuit" of Kashmir.
"We have asked the central government to include the Kashmir Valley in its Buddhist tourist circuit."

"The government has earmarked Rs.20 million for the first phase of preservation and developmental plans of two monasteries in Kashmir - at Harwan in Srinagar and at Ushkura in Baramulla," Shah said.

The state had also approached the Archaeological Survey of India (ASI) for the preservation of these Buddhist heritage sites.

Harwan, 20 km from the heart of Srinagar, houses the 3rd century Kushan sites. Located at the bottom of Zabarwan hills towards the northern bank of Dal Lake, it was once a thriving Buddhist centre.

It has also been established that the great Kushan ruler Kanishka had held the Fourth Buddhist Council here in the 1st century AD.

Remains of a monastery and a stupa, though in a state of neglect, can still be seen. Surviving tiles of the ruins display a variety of sculptural and decorative motifs.
 
Monastic establishments and terracotta artefacts have also been unearthed in Ushkura, known as Haviskapura in ancient times, in north Kashmir's Baramulla district, some 100 km from here.

Similar discoveries were also made at Ambaran Akhnoor in Poonch, over 30 km west of Jammu. Historians believe that Akhnoor was a stopover for Buddhist monks travelling from Patliputra (now Patna) to Takshasila or Taxila (now in Pakistan).

Buddhism at one time flourished in the Kashmir Valley though its imprints are slowly getting wiped away due to apathy on the part of the state and the people.

Buddhism, it is believed, had become a dominant religion in Kashmir during the time of emperor Asoka. It is also said that Srinagar, known as Shrinagari in ancient times, was first established by Asoka.

Though Buddhism is said to have entered Ladakh from the Kashmir Valley, the monasteries are well preserved in Ladakh, Zanskar and Kargil while being abandoned in the valley.
The twin districts of Ladakh and Kargil have extensively benefited from religious tourism. Lakadh last year received over 43,000 foreign tourists, according to official figures.

According to a study by the Federation of Indian Chambers of Commerce and Industry (FICCI), about 200,000 Buddhist tourists visit India every year. It estimates that this number could witness a sharp 400 percent rise by 2012 if Buddhist circuits are identified, restored and their infrastructure upgraded.

The study adds that Buddhist tourism could yield India $1 billion annually in the next five years, up from the current $125 million.

Shah, a pioneering force behind the revival of Kashmir's tourism sector, said the state had enormous potential to attract heritage tourists.

"We were quite inspired by the FICCI findings," Shah said. "If everything goes as planned, Kashmir might as well benefit from the Buddhist tourist influx," he added.

Wednesday, June 06, 2007
Source: MSN India

Rural
Wine

Heritage

1. Royalty flaunts it's selling power
Franz and Anna flew down from Paris to Kochi to exchange vows and insisted on ‘royal’ cuisine for their wedding lunch

Mysore’s former ruler Srikantadatta Narsimharaja Wodeyar is trying to revive the traditional ‘royal’ silks of his state and promote it as a classy option for the global fashion market.

The Liz Hurley-Arun Nayar wedding banked a lot on the world’s largest Art Deco palace, Umaid Bhawan to add a royal sheen to their glittering Jodhpur nuptials

Yes, everyone wants a bit of royal sheen in their lives, whether it’s stately rides on heritage trains or a luxurious, regal repast at a palace hotels, with service befitting a king. The good news for the travel trade, of course, is that they don’t mind paying a king’s ransom to obtain it!

In 1947, some 40% of the subcontinent was under princely states, 562 in all. That adds up to a lot of potential ‘royal’ heritage experiences, thanks to those Maharajas and Raos, Walis and Nizams, known for their outrageous wealth and fancies. A half century on, these royal legacies are making great business sense for the hospitality and tourism sector. “About 70% of the tourists come to India for its heritage,” says Intach chairman S K Misra.

Without its royal splendour India would lose a bit of its ‘incredible’ appeal. Most of India’s must-sees (apart from natural beauty) have, after all, been created thanks to maharajas and shahenshahs. “We are aware that India’s heritage attracts a lot of tourists. That is why our main strategy has been to promote it in our international campaigns also,” says a senior tourism ministry official. “The development of a strong platform on the concept of heritage tourism is definitely useful for India.”

The USP factor is reflected in the numbers too — India has some 135 heritage hotels, according to the Indian Heritage Hotels Association, but not all such properties are listed or affiliated so the total number is estimated to be close to 200. Big players like ITC Hotels and Taj Hotels run many heritage properties but independent palaces do very well too.

Also, while once they were concentrated in Rajasthan, they are now spreading to other areas with royal families converting family properties. Intach, for instance is deeply involved in restoring palaces in Amritsar, Patiala and Kapurthala in Punjab. About 30 to 40 hotels have come up in these areas, where there were only half-a-dozen some years ago.

Pointing to growth in interest by both foreign and domestic tourists in heritage experiences, Randhir Vikram Singh of the Indian Heritage Hotels Association (IHHA) adds, “Heritage tourism has become a significant segment and is India’s USP. Tourists can get five-star amenities anywhere in the world, but the heritage experience is altogether different and unique to India, proved by the segment achieving its highest ever numbers.”

Rakesh Mathur, president of ITC’s WelcomHeritage Hotels that manages 53 properties, also believes that the heritage quotient is a strong pull factor. “Why do you think, tourists come to India, despite our inadequate infrastructure and connectivity? It’s because of our diverse heritage and our royal architecture — every country has its share of natural beauty, after all.”

That’s why, for instance, an old palace is being converted into a shopping mall/spa in Jodhpur, under the close eye of Maharaja Gaj Singh II. And the success of The Palace on Wheels, launched in 1991, has not only inspired many states to come out with their own versions like the Royal Orient and the Deccan Odyssey, but in Delhi a luxury bus has been converted into a ‘royal’ coach to take tourists on guided tours of monuments!

“Our mobile royal palaces make the bygone era come alive. It is our endeavour to promote India’s rich cultural heritage,” says Shivani Chopra, promoter of TRTM Tourism, which recently launched the Royal Time Machine. “When we go abroad, we realise that our culture is much richer than other countries. The Time Machine is a luxury bus service for guided tours of the grandeur of Delhi and we enhance the royal experience with plush interiors inspired by Mughal and Rajput period paintings, chandeliers and stewards in traditional attire.”

The royal Sisodias of Udaipur are a perfect example of how lineage and legacy makes a great livelihood too. From their palace hotels to royal weddings to royal dinners and even games! Says Udaipur scion Arvind Singh Mewar, head of the HRH Group of hotels, “While our historic venues are the most sought-after among global and Indian celebrities, there are many regal weddings conducted for families from Surat, Rajkot, Ahmedabad and Bangalore, besides the metros. Quite clearly, the domestic market is attracted to our offerings.”

“At least four or five foreign couples get married here every month, and I get 25 enquiries a month too,” agrees Ankit Bhargava, director, Regal Weddings in Udaipur, who says even local Indians are going in for ‘royal weddings’ in a big way. “They know we have a rich cultural heritage and want the works: all the rituals and ceremonies of a traditional Indian wedding like mehndi and sangeet.”

A few hundred kilometres away in Jodhpur, which attracts some 6 lakh tourists a year, Ansal API is collaborating with the head of the royal house of Rathore to convert Raikabagh Palace into a shopping-cum-hotel destination. It is said that the Maharaja is personally overseeing the renovation of the property into a top of the line boutique hotel with a spa and exclusive designer shopping arcade so that it gives the right ‘royal’ feel.

Pranav Ansal, director, Ansal API says: “In Rajasthan, we feel that the rich heritage should be maintained and given a fresh look. The Raikabagh project is going to enhance the real estate scenario in Jodhpur and showcase the great heritage of our country.”

Down south, the royal Wodeyars of Mysore have grand plans to set up souvenir shops in all their heritage properties, to showcase objects d’art, sculptures and traditional crafts like Mysore silk and crepe saris and other textiles the Maharaja is personally researching and reviving. This, he feels, would be the region’s USP to attract tourists. That dovetails with the current thinking that the global traveller looking to ‘experience’ heritage are no longer interested merely in rooms or the hotel facilities.

Arvind Singh Mewar does, however, sounds a note of caution: “I see a very bright, but challenging, future for heritage tourism in India. The global traveller cannot be taken for granted. In terms of service, hospitality and the range of heritage experiences, they are looking for the most authentic experiences that can be customised to suit their choice and preferences. This is the real challenge for the future: how we can re-invent heritage tourism in Rajasthan and India for this global audience.

Jun 3, 2007
Source: Economic Times

Adventure
Education
Nature tourism
Luxury & rejuvenation ( ayurveda, spas, holistic healing, cruises, customized travel)

Others

Policy

1. Rajasthan to set up State Tourism Cooperative Federation
Rajasthan government is planning to set up a State Tourism Cooperative Federation (RSTCF) to promote tourism by providing the feel of the desert's rural life and hospitality to foreigners.

The Federation would be constituted in collaboration with the cooperative societies at Zila Parishad and Panchayat levels and would be launched on the International Cooperative Day fall on July 7, Prabhu Lal Saini, State Agriculture & Cooperative Minister, said on Friday.

Gram Seva Sahakari Samiti would be the nodal agency and guides from tourism department would be engaged for tourist excursions, he said adding the services of private tour operators would also be taken.

The minister assured that there would be no dearth of money as the cooperative banks would provide loan facilities to entrepreneurs interested in building up infrastructure, hotels, motels, restaurants, paying guest houses, boating, sight seeing operations and transportation services in the state, the minister said.

RSTCF would organise craft fairs and food festivals during peak tourist season, specially during winter and rainy season, he said adding the religious and cultural fairs organised annually in parts of the state would also be linked with cooperative tourism. Rural folks, dance, drama, music and instrumentation would be additional attraction on this tourism circuit, the minister said.

Jun 8, 2007
Source: Economic Times

2. Revival of J-K tourism: Panel suggests disbursal of loans
Prime Minister Manmohan Singh's working group on economic development of Jammu and Kashmir has suggested a slew of measures for revival of tourism in the state including immediate disbursal of soft loans for enhancing the accommodation facilities for the visitors.

The working group, headed by chairman of Prime Minister's Economic Advisory Council C Rangarajan, observed that since the eruption of militancy in the state tourism has been severely affected. Before that, the sector was growing at a rate of more than 10 per cent annually. "If there were no insurgency, tourism (sector) would have maintained its growth track and the estimated annual tourist arrivals today would have been in the range of 15-18 lakhs," the group said in the report submitted to the third roundtable conference on Kashmir.

For creating infrastructure, the report said the state has to find resources under the state Plan and also help the industry in getting appropriate loans from the banking sector. To accelerate renovations and new constructions of houseboats, hotels and 'shikaras', a sum of Rs 30 crore may be allocated for immediate disbursement as soft loans with an appropriate monitoring mechanism, it said.

It also noted that the share of tourism in gross state domestic product (GSDP) would have been at least 15 per cent to 20 per cent if peace had not been disturbed in the state. The contribution of tourism to GSDP of Jammu and Kashmir in 1988-89 was around 10 per cent.

The report, however, emphasised the need for improving the state's security scenario if the tourism sector, which has shown signs of revival over the past three years, is to flourish. There were early signs of revival in 2003 which accelerated in 2004 with the arrival of 3.8 lakh tourists and 6.1 lakh the next year. However, sporadic incidents of violence through 2006 have dampened the growth. Security is after all a pre-requisite for tourism to flourish, it said. The working group said this is an opportune time for the state to aggressively reposition itself as a tourist destination riding on the back of the economic buoyancy around the world and at home in India.

The state needs to market itself in three different niches -- leisure tourism in Kashmir valley, religious tourism in Jammu and adventure tourism in Ladakh, it said. Although Jammu and Kashmir's natural beauty and religious shrines are large tourist attractions, they need to be supplemented by facilities for recreation and entertainment. It will be necessary to create facilities like shopping complexes, food courts, multiplexes, music festivals and sports events, it said. The group also suggested the state government to examine in a larger context heritage tourism, especially in Ladakh area, which could prove attractive for tourists from South East Asian countries. On the development of infrastructure, it said Kashmir valley needs another 6,000 beds by 2010 and 3000 more thereafter up to 2015.
Jun 8, 2007
Source: Economic Times

3. Tral to become a tourist attraction
Recognising its ample tourism potential, the Tral town in Pulwama district of Jammu and Kashmir would be developed into a tourist destination.

Tral would be brought on the tourist map of the state, Finance and Planning Minister Tariq Hameed Karra told a gathering of various religious and social organisations in Pulwama on Thursday.

"Areas which had been previously ignored would also be brought under the ambit of development programme," he said adding, developmental activities would be carried out irrespective of political considerations.

The minister also announced a grant of Rs 1.5 crore under Phase II for the construction of the Ziarat Sharief Khan-Kahi-Faiz Pannah in the town. The minister also asked the district administration to formulate a proposal of sector wise projects on priority basis so that adequate funds could be released for their timely execution.

Jun 7, 2007
Source: PTI via ET

4. Dollar-dominated hospitality trade take a hit as rupee rise
The Ashok Country Resort in Delhi charges its guests, the bulk of whom are from overseas, in dollars. While the going was good before the rupee started to gain against the dollar, it now has an unhappy predicament—a fall in its revenue when it converts the dollars into rupees. Earnings have dipped “5-10% over the last month and a half” from the same period in 2006 says Varinder Sahni, the hotel’s director, operations.

Slammed by a weaker dollar, hoteliers are seeing revenue growth arrested or slowed down. Moreover, a falling dollar is leading to a face-off between tour operators and hoteliers, both of whom want to offset their losses.

Even higher-end hotels are feeling the pinch. Dipak Haksar, the vice-president of ITC Ltd’s hotel division said his company’s flagship seven Luxury Collection hotels’ revenues grew about 19% in April and May compared with the same period last year, but would have grown by as much as 7 percentage points more if the dollar had not declined.

Haksar said that food and beverage sales, and revenues from domestic clientele, who made up about 35% of the guests and were charged in rupees, helped offset the stunted growth during April and May—when the dollar’s decline was sharp.

Hotels are losing potential revenue in the tourism sector because of the 9% drop in the dollar against the rupee, to Rs 40.7 in the three months ending June 6. Travel agents, who also traditionally charge in dollars and generally make about a 10% commission on hotel room rents, are griping.

With little control over the rapidly appreciating rupee and consequently the dropping dollar, they are pushing hoteliers to help them compensate for the hit they are taking from the shifts in the exchange rate.

“All we’re saying (is) there are ways and means to share this loss which is happening. It could mean now, it could mean try to cover me up in future business,” saidHimmat Anand, chief operating officer for Kuoni Destination The Indian company is a Management’s South Asia unit, an inbound travel agency. subsidiary of the Switzerland-based Kuoni Reisen Holding AG.

“It’s just trying to cover your long term annual losses,” said Anand. He added that his company has also had a loss in revenue of about 10% over the past six weeks.

Both travel agents and hoteliers have benefited from high growth in India’s tourism sector over the past few years. Occupancy rates in India’s hotels were International, a at a 10-year-high at 70.8% in fiscal 2006, according to HVS global hospitality consulting firm. Further, the ministry of tourism reported a 13% increase in foreign visits to India over the prior year to a record 4.4 million in 2006.

However, according to statistics from the ministry of tourism, the dollar’s decline has slowed the growth of foreign exchange revenues for the tourism sector in April and May. Revenues in those two months were Rs4199.7 crore, reflecting a 10% growth rate over the same period in 2006. This is a sharp decline from the 22.5% growth when comparing April and May 2006 to the same months in 2005. In contrast, dollar figures show an actual increase of 1.7 points in the growth rate to 20% when looking at the same periods in 2007, 2006, and 2005. This demonstrates that the exchange rate has had an impact for Indian businesses in the tourism sector.

The growth in foreign tourist arrivals also dropped about 13 percentage points in April and May. About 600,000 foreign tourists came to India in those two months in 2007, an increase of 6.6% over the same period in 2006. In contrast, the growth rate in foreign tourist arrivals for the same months in 2005 to 2006 was 19.9%.

“If (Indian hotels) are quoting in dollars and...not changing it, then it will lead to a big loss,” said Vasudha Sondhi, director, sales and marketing in India for the UK’s Radisson Edwardian Hotels.

Anand says that hoteliers are pushing back requests for concessions by asking tour operators if they are willing to make their payments to hotels in rupees, even though the operators charge clients in dollars.

With an appreciating rupee, the tour operators are worried they would be disadvantaged if they pay hotels in rupees while their own revenue is dollar denominated. The prospect of the change worries travel industry professionals such as Anand, who have thus far done little more than negotiate on their own with hoteliers.

If this happens, he says travel agents will escalate the situation to industry level through organizations such as the Indian Association of Tour Operators to lobby the hotel industry to reduce risk and losses to the travel industry.

However, Gautam Chadha, CEO of Interzign Solutions Pvt. Ltd, owner of the online travel portal JourneyMart.com, said that ultimately there’s not much that travel agents can do, even through industry associations. It is “a great opportunity to let off hot air, but what’s the outcome? Nothing,” he said. “If the hotel decides it’s going to change its rules, what can the travel agency do besides hem and haw?”

For their part, hoteliers such as Sahni and Haksar say they are staying put with their rates and their use of the dollar for tariffs for now. However, if the situation worsens to Rs35 to the dollar, room rent policies would be up for review.

Jun 8, 2007
Source: Livemint.com

Travel and Tourism Support Industries …and much more

Service providers

1. US venture fund invests $5 mn in Indian travel firm
NEA-IndoUS Ventures, a venture capital co-founded by tech evangelist Vinod K. Dham and seasoned Silicon Valley entrepreneur Vani Kola, has invested $5 million in Via, India's leading travel services firm.

The first round of funding in Via, set up as FlightRaja last year, will be invested in expanding its products and service offerings, besides its presence through a network of agents, kiosks and franchises across the country.

"This is the first time an integrated travel services firm is getting VC (venture capital) funding, that too from a US venture firm (NEA), which has been investing in technology start-ups and enterprises all along.

As we brace to offer travel services spanning air, train and road networks and create an ecosystem for providing end-to-end solutions, the VC funding will give us a leadership position in the travel industry," Via Chairperson Ashwini Kakkar told IANS here.

Booking about 5,000 domestic air tickets per day through a network of 3,000 travel agents spread across 290 cities in the subcontinent, Via has been able to achieve a Rs.20 million (approx $493,000) turnover per day and turn profitable in online space within the first 12 months of commencing operations.

"Once we have the distribution network in place and an ecosystem to provide end-to-end solutions in the three travel modes (air, rail and road), we plan to extend the service offerings to the hospitality and tourism sectors, including holiday and health packages," Kakkar said.

NEA-IndoUS Ventures Managing Director Vani Kola said the immense growth potential of the travel industry had made her VC firm invest in Via, which had a unique and compelling business model.

"This funding is a significant step towards our mission to support new ventures and innovative ideas," Kola affirmed.

With over a decade of experience in the travel industry as the CEO and managing director of Thomas Cook India and vice-chairperson of Mercury Travels, which he acquired from the Oberoi group, Kakkar has devised a robust business model to drive the growth of Via by using conventional and modern methods.
"In a booming economy, travel or mobility has become a lifeline and a force multiplier in attracting investments, building infrastructure and generating direct/indirect employment," Kakkar pointed out.

Using the latest technology, including mobile and web and a countrywide distribution network to reach out even those customers or travellers not connected digitally, Via plans to provide an integrated service connecting air, train and road connectivity seamlessly under one roof.

"If a customer from any city or town wants to travel across the country or overseas for official, business, personal, holiday or health purpose, he/she has to contact us through mobile (voice/SMS), Internet or the distribution network of kiosks with touch-screen facility, agents and operators for booking the trip(s) using any or all three modes of transport," Kakkar said.

Via's unique revenue model does not burden customers with additional charge for the service rendered. Instead, it generates income through commission and discount from operators and maximises business through the volume game.
"The growth potential of travel and tourism is huge, thanks to the eight-nine percent GDP growth, increasing mobility, connectivity, choice of travel mode or destination and disposable incomes," Kakkar noted.

With the civil aviation sector growing at 30 percent and train/bus services in double digits, the travel industry has been witnessing 15-20 percent annual growth over the last four-five years.

Though Indian Railways ferry a whopping 25 million people across the country daily, the airlines take a year to fly the same number of passengers, accounting for a mere 0.02 percent of air travel worldwide

Jun 7, 2007
Source: IANS via Mangalorean.com

2. Travel sites shift focus to forex & holidays

With the USP of best air fare losing ground in the online space, travel portals are increasing the range of non-air products like value holiday packages, discounted hotel deals, weekend breaks, foreign exchange and visa processing. Travel websites are aggressively promoting complete travel solutions rather than discounted air fare.

“Air tickets are being commodotised in the online space. We are becoming mere distributor where the brand of airline is a consideration and not the website. So it is more rewarding to offer better hotel rates and holiday packages,” says Deep Kalra, CEO of makemytrip.com. The website provides booking across 3,500 Indian hotels and 10-15,000 international hotels. It also offers foreign exchange and visa processing services.

Also unlike the low margins on air ticket, which is about 5% per ticket, the travel portals get 10-20% margin on the non-air products. “The online hotel booking space is still not as crowded as the air ticket. Out of the 100 flight bookings, hotel bookings account for 20% on our website. The revenue from online hotel booking is expected to rise significantly in the near future,” says Ashwin Damera, Founder CEO of Travelguru.

With the increasing gamut of non-air products, the online travel market, which is estimated to be about Rs 1,800 crore is slowly moving from the best price to best value model. Prashant Muttoo, GM of Indiatimes Travel says, “Creating the lowest price platform and providing freebies with air tickets is not a sustainable model in the long run. This will only subsidise the low margins on air tickets.

So we would rather focus on adding more travel related products to create a wholesome travel solution.” Indiatimes is planning to offer visa processing facility to its customers soon.

June 6, 2007
Source: Economic Times

Travel ecommerce
Events
Research and Market reports

1. Growth in foreign tourist arrival registers sharp decline
The growth of foreign tourists arrival has slipped to a single digit for the second consecutive month in May this year -- a sharp decline from an average of 13-15 per cent in the last five years of tourism boom.

The growth in tourist arrival was just five per cent in May this year.

This is said to be the lowest growth ever recorded since 2002 when the India Tourism launched the "Incredible India" campaign world wide to attract more tourists.

The decline in tourist arrival actually started in the month of April this year when the growth slipped to a single digit of eight per cent over the corresponding period last year.

In April 2006, tourist arrivals had jumped 24.7 per cent, one of the highest recorded in recent years. The month of May in 2006 also registered a growth of 14.7 per cent.

The tourism ministry is at a loss to explain the reason for the dip, except saying that this may be due to the advent of early summer and the resultant high temperature touching up to 43 degree celsius.

In fact, the growth in foreign tourist arrival in February and March this year were 13.6 per cent each as against 10.1 per cent and 11 per cent respectively in the previous year.

However, the overall growth in the first five months of the current year was 12 per cent as against 14.5 per cent during the corresponding period last year.

Under the impact of the high-voltage "Incredible India campaign," which was launched five years ago, India tourism has been recording an annual growth of 13 to 15 per cent in foreign tourist arrival.

The growth in foreign exchange earning also went down to 11 per cent in May this year as against 15.2 per cent in the same month last year.

The same was the case with April this year when foreign exchange earning registered a growth of just 10 per cent as against 28.9 per cent last year.

India has been spending crores of rupees for advertisements on international television channels, travel magazines and websites to woo more foreign tourists every year.

"We will study the reasons for the dip in the growth of tourist arrival in April and May and take corrective measures, including launch of vigorous campaign in foreign countries," a top tourism ministry official said, adding that : "prima facie we don't think there is anything to worry."

June 8, 2007
Source: UNI via NewKerala.com

Human Resources & Training

Travel Characteristics of Indians

1. Traveller, or troubler?

A travel website survey insists that the average Indian tourist is real bad news. How are we reacting to such a ‘revelation’?

Loud, untidy, poorly behaved: these are some of the expressions used for Indian tourists travelling abroad. In a survey by Expedia, a travel website, 15,000 hoteliers across Europe rated France as the worst tourist nation, followed by India, China and Russia.

Amrita Thapar, former Miss India and a frequent traveller, feels, “Having travelled extensively myself, I differ from this survey. Unlike earlier, we now read about the etiquette of the countries before going there. Many years back, when I had gone for a shoot in Switzerland, there were models who would throw litter here and there. And, we kept picking it up and keeping it in our bags. But now, people are well informed and know how to behave.”

Nikhil Mehta, a businessman who travels extensively, agrees, “This survey is all rubbish. Just a group of Europeans can’t decide whether or not we lack culture and etiquette. We, as tourists, are polite and never rude.” Incidentally, the Japanese have been voted the best tourists, followed by the Americans and Swiss. The Japanese have been complimented for being polite and tidy.

The Indians are not impressed, and naturally so. “We are very sensitive, and if they say anything like this, it can affect our European business. Indians don’t need to learn etiquette, and we do behave properly when we go out of the country. We have our own rich culture. In fact, Europeans have learnt about culture from us. And, they are the ones who are telling us what is right,” says Sanjay Hadke, general manager of a leading travel agency.

Others have a different view, though. Milind Babar, director of a tourism company, says, “It’s true that we don’t behave properly. When we check into a hotel, we gather in groups and talk loudly. Sometimes, children run here and there, which is not appropriate. They take shampoos, soaps, towels from the hotels as souvenirs.” He adds, “Some of the hotels keep apples and chocolates at the reception that are meant to be eaten there. But, our people keep loads of them in their pockets. Besides, many don’t know how to use the toilet there.”

Amrita Thapar advises, “It’s always good to read up about the country before going there. There are certain things that are respectable in our country but not in other countries. Information is readily available on the internet. So, it’s good to browse through it.”

June 5, 2007
Source: Times of India