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Tourism and Travel Trends in India:Weekly News Related to Travel Industry in India
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The tourism sector in the ‘golden triangle’ has suffered huge economic losses due to recent periodic social unrest in the region. Ladakh is one of the most spectacular locations to visit in India. All men or all women group tours are becoming popular with upwardly mobile Indians. The travel and hospitality sector is expected to employ seven million people over next decade.
Places in the News
Travel and Transportation Infrastructure
Policy
Travel and Tourism Support Industries
Travel Characteristics of Indians
1. Ladakh’s lofty passes
Raw. Stark. Stunning. Three words to describe Ladakh.
Located in northwest India’s Jammu and Kashmir state, the remote Ladakh astounds first-time visitors with its surreal landscape – craggy peaks, barren deserts, plunging gorges, turquoise-green rivers and a backdrop of ancient gompas (Buddhist monasteries) carved into sheer limestone cliffs.
Closed to outsiders until 1974, Ladakh is often dubbed “Little Tibet” due to its uncanny resemblance to neighbouring Tibet – from the whitewashed gompas, vast plateaus framed by lofty peaks to the Ladakhi language written in Tibetan scripts.
Literally “the land of high passes”, Ladakh is one the most rugged regions in the Himalayan Range. Its elevations, even in the valleys, rarely dip below 3,000m. Passes and ridgelines average 4,500m-5,500m (Mt Kinabalu sits at 4,095m) and peaks top out at 7,135m/7,087m (Nun-Kun massif).
What draws climbers most to Ladakh are the high-altitude treks, extreme climate and 6,000m-7,000m peaks. Even alpine newbies can summit the popular Stok Kangri (6,153m) with basic ice axe and crampon skills.
Hostile conditions
Adding to its mystique is the fact that eight months in a year, the region is shut off from the rest of the world.
Snowbound passes are closed to traffic from late September to early June, and flights into Leh (gateway capital to Ladakh) are erratic at best. Even in the height of summer this year, my flight out of Leh was cancelled due to thick fog.
In winter, the temperature plummets to a bone-chilling -20°C. A summer’s day may start at a pleasant 15°C-20°C then dip to below 10°C at night. Ladakhis (what the locals are called) depend on melting glaciers for water due to the mere 110mm annual rainfall.
Trekkers’ playground
One of Ladakh’s earliest settlers were the Khampa nomads who traversed high, windswept trails in search of pastures for their yaks. Originally from Tibet, the Khampas settled in the Nimaling plains in the upper Markha Valley. Today, foreign hikers decked in high-tech gear pay local guides to retrace the same route that became part of the popular 10-day Markha Valley trek. As early as the 19th century, British explorers have been traipsing these Trans-Himalayan mountains. Ladakhis are of Indo-Aryan and Tibetan descent and speak Ladakhi, a language similar to Tibetan. Traditionally, Ladakh had an agricultural-based economy producing barley and wheat and breeding livestock. Apricots from the lower valleys and pashmina (wool from the Himalayan mountain goat) are the main exports. Today, tourism makes up 50% of the region’s GNP and in peak seasons – July and August – Leh is overrun with tourists.
Sampling a trek
I signed up for the popular five-day Lamayuru-Chilling trek with Leh-based operator, Nomad Travel. My trekking companion was Dutch tourist Marc Teunissen, whom I met at Mahabodhi International Meditation Centre where we were staying.
The 65km-journey would take us across the high ridges of the Zanskar Range, traversing four passes averaging 4,700m (the highest pass, Konze La, sits at 4,950m) and through quaint, far-flung hamlets beyond the Indus Valley. Our tiny group of four included Raju Gurung, our guide cum cook (a Gurkha from Nepal), and Tashi, the “ponyman” with his four mules that would lug our stuff.
A five-hour, butt-jarring drive from Leh through hairpin roads in a 4WD took us to the rustic village of Lamayuru (3,430m), famous for its ancient gompa. Dating back to the 10th century, Lamayuru gompa is perched on top of an eroded crag with tiny caves. Part of the Kaygupa order, the gompa has been destroyed and restored over the centuries and stores a vast collection of antique thangkas (Buddhist scroll paintings), statues and frescoes.
Our trailhead starts across the road from the gompa along a small stream. After an hour’s climb up a scree slope towards the Prinkiti La (3,700m) – La means pass in Ladakhi – I got nauseous and started retching. Altitude sickness had crept up on me although I had acclimatised in Leh (3,500m) for a week before the trek.
But the consolation was when Raju spotted a group of eight mountain goats with their kids in tow, grazing on a high pass about 100m from us. From afar, they looked like Himalayan Tahrs, heavily built goats with stubby legs and short, curving horns. They graze the high pastures in the summer. Bharals (Blue Sheep) are also commonly spotted on the high pastures of Ladakh and Zanskar. They have thick, horizontal horns and the males have dark-blue wool on the rumps and are a favourite staple of the elusive snow leopard, found mostly in the remote regions of West Himalaya.
From the top of Prinkiti, we had a sweeping vista of the snow-dusted peaks of the Zanskar Range and the deep, narrow gorge that awaited us below. Following a steep descent, the trail snakes through a canyon hemmed in by five-storey high rock walls. Four hours later, we arrived at Wanlah village where we set up our tents for the night. The 11th century-old Wanlah gompa, still under restoration, sits on a sheer hill watching over the postcard-pretty village with its mud-brick houses and lush green fields. Over the days, it became a routine to plod up and down sheer terrains, cross icy-cold streams and stroll past remote villages with lovely, bright-yellow mustard fields and a thick growth of willows and poplars. We stumbled upon friendly villagers who cried out, “Julay, julay . . .” (Ladakhi for “hello”, “good-bye” and “thank you”) and slipper-clad shepherds who bounded up the trails with their flock of sheep. Chortens (Tibetan stupas) and mane walls (stone plates inscribed with Buddhist chants) dotting the passes and pilgrimage routes blessed us on the journey.
Sweet juniper-laced crisp air accompanied our walks and the pretty-pink rose bushes (Rosa webbiana, a deciduous shrub) cheered up an otherwise drab landscape. After hours of gasping in the thin air and plodding up almost-vertical slopes, we were always rewarded with awe-inspiring vistas – maroon and turquoise-streaked mountains and snow-dusted jagged peaks framed by clouds floating in a crystal-blue sky.
In the evenings, the aroma of Raju’s cooking whetted our appetites as we chowed down on stir-fried masala vegetables and warm, fluffy chapatis.
Gorgeous alpine views, climbable 6,000-m peaks, and rich, vibrant cultures – a sure recipe for another trip back to Ladakh next year. Marking my calendar now . . .
Getting there
There are daily flights from Delhi to Leh via Jet Airways, Air Deccan and Indian Airlines (irregular). By road, it takes three days to travel from Delhi to Leh via the Manali-Leh pass (open from mid-June to September).
When to vist
Ladakh’s trekking season is from June to October, except for the infamous Chadar trek, a 10-day trek across the frozen Zanskar River, which starts in January/February.
Cost
Trekking costs from US$40/RM135 per person, per day (minimum two trekkers). Includes food, guide, porters/ponies, tents and sleeping pads.
Read
For more information on Ladakh treks, check out:
• Trekking in the Indian Himalaya, Lonely Planet Publications
• Trekking in Ladakh, Charlie Loram, Trailblazer Publications
October 13, 2007
Source: Malaysian Star
2. Chittor: Where Bollywood stars welcome you
With the voiceover done by Bollywood stars Hema Malini and Shah Rukh Khan, the light and sound show at Chittorgarh Fort in Rajasthan's historic city of Chittorgarh has become a great attraction for tourists. Besides the two actors, famous singers Lata Mangeshkar and Rehmat Khan have also lent their voices to the show.
The one-hour evening entertainment in the fort, which is spread across a 280-hectare site on the top of a 180-metre-high hill, is proving to be a great draw as about 1,000 to 1,500 visitors come to see the show every day.
Chittorgarh, also called Chittor, was the capital of the erstwhile princely state of Mewar under the Rajputs from the 7th to 16th centuries.
Completed at a cost of around Rs.29 million, the light and sound show project is the first of its kind in the state that has been set up on a public-private partnership (PPP) basis. Financed by the central tourism ministry and executed by the ITDC, the show is being run by the Rajasthan Tourism Development Corporation (RTDC) and Hindustan Zinc Limited on a partnership basis.
October 12, 2007
Source: MSN India
3. Unrest affects tourism in India's 'golden triangle'
Incidents of unrest in the 'golden triangle' of India's tourist circuit - Agra, Jaipur and Delhi - is adversely affecting the flow of visitors, with hotels in the city of the Taj reporting around 70 percent cancellations in the past month.
The virtual closure of the Taj Mahal in August due to street violence, followed by the fear generated by the gang rape of two Japanese girls and now the Gujjar community protests on the Agra-Jaipur highway have collectively damaged the prospects of a profitable season that the tourism industry had anticipated.
Sources in Agra's Hotels and Restaurants Association and the Tourism Guild here say that a number of tourist groups have shifted to Bangalore and Goa in view of the unrest here. The tourist season has already begun but hotels here have several vacant rooms as many tourists are avoiding the circuit.
Rajeev Tiwari, president of the Federation of Travel Associations, is a worried man following reports of large-scale - nearly 70 percent - cancellations. Agra got around 2.5 million tourists last year, with the Taj drawing at least 12,000 visitors a day.
Tiwari said the Supreme Court should, on the lines of its recent directive in Tamil Nadu asking Chief Minister M. Karunanidhi not to go ahead with a state-wide shutdown, issue a similar directive insulating national highways from rampaging mobs.
'The Uttar Pradesh Tourism Department should approach the apex court to secure a directive against agitators who block the highways,' Tiwari told IANS.
'The image of tourism in the golden triangle segment had taken quite a beating this year after a week-long traffic disruption three months ago on the Jaipur highway.' The Gujjar community in Rajasthan had held violent protests from May 29 to June 4 across the state and blocked national highways demanding tribal status for better employment and educational opportunities. The Meenas, who are opposed to the classification of Gujjars as tribals, clashed with the protestors. The resulting caste violence and police firing claimed 25 lives.
The stage appears set for another confrontation between the Meenas and Gujjars demanding reservation and people in the tourism industry are a worried lot. Gujjar demonstrators Sunday damaged railway tracks forcing several trains between Delhi and Mumbai to pass via Agra. Fishplates at several stretches were found removed and the Kota-Mumbai route was badly affected.
Meanwhile, a mahapanchayat of the Meena community is scheduled to be held at Karauli on Oct 14. According to knowledgeable sources, the event could attract at least 500,000 Meenas from neighbouring districts. The Karauli area, being a religious centre, is also a stronghold of both the communities and this could pose a threat to the law and order situation. If the already explosive situation takes a violent turn, the national highway between Jaipur and Agra could be seriously affected resulting in huge losses to the tourism industry.
October 9, 2007
Source: IANS
Sector: Hotels and Restaurants
1. Emaar-MGF ties-up with Marriott Group to set-up hotels at Kolkata and Amritsar
Emaar-MGF has tied-up with the Marriott Group to develop two properties, one each at Kolkata and Amritsar. The property at Amritsar will be a 150-room business hotel and will operate under the Courtyard by Marriott brand. Emaar-MGF will also construct a 250-room luxury property in Kolkata that will function as a JW Marriott hotel and will become operational by 2010. Further, the company's super luxury hotel at Goa, which is a joint venture with the Accor Group, is also in final stages of completion.
October 13, 2007
Source: Travel Biz Monitor
2. Booming economy, tourism makes Indian hotels among worlds costliest
The long wait of tourists and business travellers expecting some softening of hotel room rates and hoping to find accommodation more easily in the country's top cities, is far from over. With supply lagging behind demand, room rentals and occupancy levels continue to rise across the country. According to the latest figures from hospitality research and consultancy firm HVS Hospitality Services, the average room rate across all star-category hotels in the country rose by 30 per cent over the previous year, touching Rs 7,075 in 2006-07. Average occupancy for all star-category hotels was 72 per cent in 2006-07, up 0.7 per cent over the previous year.
The growth in room rates and occupancy is driven by high demand from both business and leisure travellers. While demand has grown rapidly, supply has not been able to keep pace. Hotel rooms in India's leading cities today are among the most expensive in the world.
According to Manav Thadani, MD, HVS Hospitality Services, "If rates continue to grow at this pace, they will become a deterrent to business and tourist travel. In the long term, inflated room rates will also have a severe negative effect on potential demand. The effects are already noticeable in most markets. For the first time in four years, markets such as Bangalore, Chennai, Delhi, and Hyderabad have seen a decline in occupancy rates." In Bangalore, where room rates are among the highest in the country, occupancy level has declined for the second consecutive year.
Another consequence of the exorbitant rates in branded hotels is the emergence of a segment comprising unregulated and unorganised hotels and guest houses. This segment is booming in Bangalore, Delhi, and Pune. Bangalore, especially, has 2,000 rooms in the unbranded segment, which exceeds the supply in the branded category. With rates in the branded category so high, unbranded hotels and guest houses are also able to command a good price. In Bangalore, their rates range from Rs 3,000-7,000 per night.
The all-India average occupancy level touching 72 per cent is significant. Said Thadani: "When the average touches the 70-72 per cent mark, it indicates substantial unaccommodated demand." That's because of the cyclical nature of demand in the hotel industry: demand is higher during weekends, and again, high during the peak season.
Added Thadani: "The high room rates also mean that the correction in rentals, when supply catches up, will be sharp." According to an HVS report, Bangalore, Pune and Hyderabad could see correction in rental rates in the short term. In other cities, it will be 3-4 years before supply catches up and rentals rationalise.
The answer to escalating rentals, of course, lies in developing more rooms and at a faster pace. But as Rajendra Thakre, MD of Singapore-based Meuse Hotel and Hospitality, which aims to invest $200 million in India by March 2008 said: "The run up in real estate prices has made it tough to develop hotels here."
October 10, 2007
Source: Financial Express via Yahoo.
1. Strong Re, overpricing likely to hurt inbound tourism
Strong rupee coupled with overpricing of tours in the Indian tourism industry is bound to affect the inbound travel and tourism in the country, feel industry experts. Experts say that though inbound tourism has increased by about 20 per cent, it has, however, not done as well compared to the outbound travel.
Some of the travel companies, which usually quote the entire trip in dollars for travellers across the globe, are now planning to shift to a rupee tariff to moderate the effect of rupee appreciation. Experts point out that though there has been no immediate impact on individual travellers it might soon start pinching them. “Travellers who have already booked their tours will surely go ahead and travel but will not spend as much as they would have spent,” said a senior official with the tourism industry.
Rising rupee
Tour operators organising overseas trips are the ones who are bound to get hurt by the appreciating rupee, said Mr Madhavan Menon, Managing Director, Thomas Cook India Ltd. “We will, therefore, quote a rupee tariff wherever possible,” he said.
“The weak dollar is bound to affect the inbound travel, which can become less attractive for travellers,” said Mr Himmat Anand, Chief Operating Officer-India & South Asia, SITA Destination Management. “It is time that we started quoting in rupee,” he added.
Mr Anand also felt that not only the appreciating rupee but also the overpriced tourism sector could be a reason for the poor performance of inbound tourism. “Hotels have become 5-10 per cent more expensive,” he said. A lot of hotels, which used to follow a dual tariff structure, have now shifted to the single tariff structure following rupee appreciation.
Constraints
Mr Anand stated that though the business from the US is growing at a rapid pace, there is a marked change in the trend of travel. “A lot of US tour operators who used to book deluxe category hotels are now settling down for first class hotels, which are a little less expensive,” he said.
Infrastructure and availability of rooms is also a major constraint for inbound travellers. Winter, which is usually a peak season for such travellers, might not be as attractive, say industry experts.
Government measures
However, they feel that the Government is taking adequate measures in order to make India an attractive tourist destination. The Ministry of tourism has done a number of road shows. Moreover, the ‘Incredible India’ campaign has also gone a long way in wooing tourists, said an official. “Some States like Kerala, Madhya Pradesh and Rajasthan have taken proactive measures to promote niche tourism,” she said. She also pointed out that the railways’ effort to provide trains with specific themes will go a long way in attracting tourists.
October 8, 2007
Source: Hindu Business Line
Service Providers
1. Spain Tourist Office, India, promotes Andalucia as a tourist destination
The Spain Tourist Office held a business briefing and product presentation titled 'Andalucia: Tourist Destination' yesterday at ITC Maurya, New Delhi, in an endeavour to promote Andalucia as a tourist attraction in India. Ion De La Riva, Ambassador of Spain in India, D Gaspar Zarrias Arevalo, Regional Minister for the Presidency of Andalucia and A Manuel Gutierrez Ruiz, Director, Tourism Andalucia were present at the event.
Represented by TRAC Representation in India, the Spain Tourist Office's presentation highlighted the culture, cuisine, leisure tourism, MICE and golf tourism of Andalucia. Besides, a renowned chef was flown in from Andalucia for churning out Andalucian delicacies. "I have come to New Delhi, which is the heart of the Indian peninsula and Andalucia is the heart of Spain. With half a million tourist rooms, five airports, important ports in Andalucia and 21.5 million tourists visiting the region in 2006, we are now looking forward to increasing the number of Indian inbound by consolidating Andalucia as a tourist destination," said Arevalo.
October 13, 2007
Source: Travel Biz Monitor
2. Cox & Kings ka Double Dhamaka
Cox & Kings, the oldest established travel company, has launched the Double Dhamaka offer. Two families get to travel to breathtaking destinations of India for the price of one! The prices start from a minimum of Rs. 37,820 for a family of two and another family of two can join them at no extra price. Similarly, a family of three can avail of a fantastic holiday starting at Rs. 48,500 and have another family of three join them at the same price. The packages start from a minimum of six days / five nights stay and are valid till March 31st, 2008.
These six packages have been designed to offer an ultimate holiday experience for families to the exquisite locales of Kashmir, Himachal, Eastern Himalayas and South India. All this and more at Cox & Kings.
The packages are as follows:
The above mentioned tour prices include accommodation, meals as per the itinerary, transfers and sightseeing as per the itinerary and travel insurance for the paid passengers. The price also includes free return air tickets as part of early bird offer on an airline of Cox & Kings choice.
For bookings / details call 1800 22 1235 or 09867565599.
October 2007
Source: MSN India
Research and Market reports
1. India's Tourism Finance Plans $100 Million Fund
Tourism Finance Corp. of India, which has funded the world's top-rated spa, plans to sell shares and set up a $100 million private equity fund to buy stakes in hotels catering to domestic travelers, the chairman said.
The money for the seven-year fund will be raised from banks and high-net-worth individuals, Archana Capoor, chairman and managing director, said in an interview in New Delhi, where the company is based. Tourism Finance plans to sell new shares to select investors to more than double its equity capital.
A doubling in India's middle class, estimated at 50 million by McKinsey & Co., has in the past decade spurred demand for hotels and resorts, driving an almost threefold rise in Tourism Finance's shares this year. ITC Ltd., the Indian partner of Starwood Hotels & Resorts Worldwide Inc., is expanding its brand of cheaper lodgings to 100 to tap demand in smaller towns. " The future growth is not in the eight big cities, the growth is in the smaller towns,” Capoor said yesterday. “If someone wants to set up a chain of hotels, it's one of the best models. You can't have all your eggs in one basket.”
Shares of Tourism Finance gained 1.45 rupees, or 4.9 percent, to 30.9 rupees on the Bombay Stock Exchange today. Tourism Finance has lent money to IHHR Hospitality Ltd., which operates the Ananda in the Himalayas, rated as the best destination spa this year by the readers of Conde Nast Traveller magazine. The spa resort is located 260 kilometers (162 miles) north of the capital New Delhi.
Hotel Growth
“Tourism is set to grow with economic expansion and hotels are bound to perform better,” said K.D. Mehru, vice president, research, at brokerage Darashaw & Co. in Mumbai. “Equity returns will be much higher than interest income.”
Tourism Finance will invest as much as 500 million rupees ($13 million) in the fund, Capoor said. The company had 663.14 million rupees in cash and short- term investments as of March 31, according to data compiled by Bloomberg.
Tourism Finance was set up in 1989 by IFCI Ltd. along with other state-run banks. IFCI, a state-run lender bailed out by the government in 2003 because of bad debt, owns 19 percent of the company. State Bank of India, the nation's biggest, holds 7.4 percent. Life Insurance Corp., the nation's biggest, owns 6.22 percent and Bank of India, the country's seventh-biggest by assets, owns 3.8 percent. The public shareholding is 39.3 percent, according to the company's Web site. Companies and investors may turn to hotels in smaller towns as growth in room rents in the bigger cities is expected to slow.
Luxury Rooms
The number of five-star luxury rooms will increase to 58,000 in the country's 12 biggest cities in five years from 27,500, Crisil Ltd.'s research division estimates. The average occupancy will drop to 64 percent from 75 percent, it said.
Room tariffs at luxury hotels will rise at a slower pace to 11,200 rupees a night by 2012 from 8,900 rupees, Crisil said. Five years ago the average room tariff was 3,960 rupees.
The tourism industry in India is set to grow an average 7.9 percent between 2008 and 2017, the second-fastest pace after China's 9.1 percent, the London-based World Travel & Tourism Council says on its Web site. The council has forecast investment in travel and tourism in India may increase to $43.9 billion in 2017 from an estimated $18.1 billion this year.
Lotus Hotel Investment Fund is aiming to raise $1 billion to build and buy hotels in Asia, some of which will be managed by Carlson Hotels Worldwide, the operator of the Regent and Radisson chains.
Lotus Fund
Lotus seeks to raise the money in the next five weeks, Martin Rinck, president of Carlson Hotels' Asia Pacific unit, said in an interview today. The fastest wage growth in the Asia-Pacific region is giving more middle-class Indians money to spend on leisure. New York-based consulting firm McKinsey & Co. defines members of the middle class as people with annual disposable income of $4,380 to $21,890.
Tourism Finance plans to sell new shares to increase its equity capital to as much as 1.5 billion rupees from 670 million rupees, Capoor said. Directors will take a decision on Oct. 22, she said, without giving the number of shares to be sold.
“This will increase our net worth and allow us to lend more to a single entity,” said Capoor. Tourism Finance can lend a maximum of 20 percent of its net worth to a single entity, as per local rules, she said.
October 10, 2007
Source: Bloomberg
2. Travel and tourism to create 7 mn jobs in 10 yrs: study
With better infrastructure and soaring income levels, the travel and tourism sector in the country is expected to employ about seven million more people over the next 10 years, a recent study has said.
"A revolutionary growth is being witnessed in the Indian travel, tourism, airline and hospitality industries. It will lead to the creation of over seven million new jobs in India in the next 10 years," Elixir Web Solutions' Business Intelligence Team study said.
As many as 41.8 million people are directly or indirectly employed in the tourism sector in India, according to IBEF.
India is the favoured destination for majority of the travellers to South Asia which spells a pulsating future with immense job prospects in the sector.The area is growing at a rate of 10 per cent, double the global growth in the sector, the study said.
"The growth of tourism in South Asia is boosted by India, the destination responsible for half the arrivals to the sub-region," the study said quoting United Nations World Tourism Organisation. "India expects a tourist inflow of around 10 million in 2010 when it will host the Commonwealth Games," Union Tourism Minister Ambika Soni had earlier said. The sector, which is already on an upswing, is set to witness a boom time in the near future. Globally also, job opportunities in the travel and tourism sector would far outnumber those in the software industry over the next few years, the study said.
If the software industry offered jobs to 1,20,000 software professionals every year globally, the travel-tourism and hospitality industry has the potential to generate 5-10 million new jobs every year over the next three years, a worldwide report from Public Relations Society of India said.
October 7, 2007
Source: PTI via Hindustan Times
1. Same-sex tours gain currency
Thanks to their higher disposable income, singles in the 25 plus age group are being wooed by tour operators. The new trend is to offer all-men or all-women group package. For example, an all-women spa holiday or an all-men adventure holiday.
"This has been a global phenomena and now the trend is catching up in India too," said Rajeev Nangia, associate director, TRAC Representations. The firm represents several international tourism boards. 'It is also gaining momentum as double income families find it difficult to travel together," Nangia added.
However, this is still a niche segment, accounting for a mere 4.5 to 5% of outbound travel. Raja Rani Travels CEO Abhijeet Patil says, "This is a recent trend, and is a factor of the growing financial clout of Indian youth. Unlike in the past, people don't hesitate to take financing options for travel."
Says Frederick Divecha of SOTC, a part of the Kuoni Group, "These (single) tour packages are quite popular abroad. However there is a growing demand for all-women or all-men trips in India. We may offer such packages."
October 10, 2007
Source: Times of India
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