Tourism and Travel Trends from India:

News and views on India's Travel and Hospitality Sector

Weekly News Related to Travel Industry in India

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1. In India, Rough Justice Of The Mob

Indian media brimmed over with news of street violence last week. Rioters shut down Agra, the home of the Taj Mahal; parents stoned a New Delhi school where a teacher was accused of sexual abuse; and in Bihar, angry bystanders and police tortured a chain snatcher, raising concerns of a breakdown in law and order in the world’s most populous democracy.

Mob violence is not a new phenomenon in a country where the police are often perceived as corrupt and ill-equipped to deal with citizens’ complaints in a timely fashion. But the incident in the eastern state of Bihar especially raised hackles: Television cameras captured a policeman tying a young man’s leg to his motorcycle and then dragging him through the street.

In Agra, police imposed a curfew and shut down the Taj Mahal for a day after hundreds of rioters took to the streets and set vehicles ablaze following the deaths of four Muslim men, who were mowed down by a truck while on their way home from a religious celebration. It was a heavy blow for a city that depends on tourism, with hotels and travel agents reporting cancellations. In New Delhi, hundreds of parents attacked a private school where a teacher was accused of forcing female students into prostitution and to act in pornographic films by sedating them, filming them in compromising positions and then blackmailing them. The teacher was caught on camera in a television sting operation.

“India is a populous democracy, where people vent grievances through street protests and intimidation instead of constitutional processes,” says historian Ramachandra Guha, author of India After Gandhi. “What happened in Agra was a spontaneous response, and no government whether in India or Britain or the U.S. can control such demonstrations. But in India it’s a daily occurrence.”

Guha accuses the government of allowing mob violence, even when it’s not spontaneous and is instigated by political parties. He points to incidents in the southern city of Hyderabad earlier this month, when controversial author Taslima Nasreen was attacked by politicians and protesters. Instead of arresting the visiting writer’s attackers, some of whom were elected members of the state’s legislative assembly, the police went after the Bangladeshi writer-in-exile. They filed a case that accused her of offending India’s minority Muslim population.

In the past, art galleries have been attacked because artists painted Hindu goddesses in the nude. “These are worrying signs for the future of a functioning democracy,” Guha says. However, in India, mob justice for petty criminals can seem a more humane option than sending them through the criminal justice system, where the accused can languish in prison for years before getting a trial, says Harish Naraindas, a professor at Jawaharlal Nehru University. Nearly 70% of jail inmates are awaiting trial.

“If mob justice is not meted out too violently, it may seem like a better option than sending a petty criminal to prison. People in India are also aware that the law is not a just, speedy system. Most of them hence would rather pay a bribe to a cop than let the law take its course,” he says. One of India’s most respected cops, Kiran Bedi, agrees with criticism. “Over the years, the police force has been losing its effectiveness and position in society, and has been on the defensive.
Therefore people fear the police less. They feel even if they attack the police, they will be able to get away. That’s because you only see the misdeeds of the police, no voice talking for them.” But Bedi points out that constables, who account for about 80% of the police force, get paid miserable wages, are overworked and their welfare is neglected by the state.

“A constable takes home an average of 5,000 rupees ($120) a month. A driver for a company gets paid twice more than that. The police aren’t stakeholders in the system so they look out for their own interests and try to make money on the side, through corrupt measures,” Bedi says. And cops’ problems don’t end with state neglect. In states where there are problems with terrorists and radical regional movements like the rebel communist Naxalites, the police are overwhelmed in trying to deal with recurring incidents of violence and terrorism, Bedi pointed out. “But there is no substitute to policing for internal security, because you can’t privatize law enforcement,” says the senior cop.

But at the end of a week where the cops were in the dock for dispensing their own version of justice, Bedi’s passionate defense of the police may find less takers than usual.

September 3, 2007
Source: Forbes

Travel and Transportation Infrastructure

Sector: Aviation

1. Centre gives in-principle clearance to the International Airport at Mohali

At the special meeting held recently in New Delhi, the Central Government is said to have given an in-principle clearance to the proposed International Airport at Mohali. According to official sources, the existing infrastructure of the civil-cum-defence-airport at Chandigarh will be integrated with the Mohali International Airport in addition to 300 acres of land, which will be acquired for the project.

The Centre is said to have agreed to a 49 per cent stake in the International Airport at Mohali, which is slated to be named after Shaheed-E-Azam Bhagat Singh, while the State will retain the remaining share. In the meanwhile, a memorandum will now be taken by Civil Aviation Ministry for approval by the Cabinet, which will take about three months.

September 7, 2007
Source: Travel Biz Monitor

Sector: Hotels and Restaurants

1. Four Seasons all set for a 'formal' launch next year

India has been waiting for a long time for Four Seasons’ debut. Ironically, chairman and CEO Isadore Sharp met the media at the Presidential Suite of Mumbai’s 100-year-old hotel, Taj Palace and Towers in Mumbai.

After struggling for 10 years for a proper debut in India, Canada-based Four Seasons Hotels & Resorts, which is part-owned by Bill Gates, Price Alwaleed bin Talal and Mr Sharp, is launching its first sub-continent property in Mumbai later this year.

While the property in Mumbai will be developed by the Jatias, in Delhi, the company has signed a letter of intent (LoI) with DLF. The mid-sized luxury hotel player is opening up six hotels in India in the next few years.

Mr Sharp, 76, was struck by the rapid pace of hotel development in the country. “India as a country is a natural draw for travel and tourism. It’s getting more accessible for business opportunities and it’s a tailor-made market for the hotel industry. For us the timing is excellent,” said Mr Sharp.

After, 46 years of global operations, Mr Sharp is ready to step on the accelerator with projects planned for India. However, his big bet is on the growing mid-market segment, which in US parlance is known as ‘full facility limited service.’

Magus Estates & Hotels, part of the Jatia Group (which operates the Hyaat Regency in Mumbai), is the principal developer of the first Four Seasons Hotel in Worli. The Jatia family will hold around 74% in the project. Of the total $90-million investment, Four Seasons will invest $7.5 million. Four Seasons was earlier present in the country through alliances with Leelas and the Oberoi group.

The hospitality chain, which manages 74 luxury hotels, had agreed early this year to be taken private for $3.8 million by Bill Gates, Prince Alwaleed bin Talal and Mr Sharp. However, Mr Sharp and his family would continue to hold a significant share of the company and would be involved in the chain’s operations and strategy.

In India, Mr Sharp has identified six locations in metros and tier-I cities. He is looking at a mix of management contracts and equity investments. “We are very optimistic about the Indian market having a sustained period of growth. We are planning with a long-term vision,” said Mr Sharp.

Though the BRIC countries are not contributing significantly to the Four Seasons kitty at present, the rate of development and growth, said Mr Sharp , in the next few years would grow substantially.

September 8, 2007
Source: Economic Times

2. Fortune Hotels to introduce 10 hotels across the country by March, 2008

Fortune Hotels, the hotel subsidiary of ITC Ltd., is looking to set up 10 new hotels in the country by March, 2008. The company, which operates 18 hotels across the country, is focussing on business and leisure destinations, like Bangalore, Mumbai, Lavasa, Kolkata, Kochi, Vishakapatnam, Pune and Shirdi, for its expansion plans. The properties will be developed under its four brands namely, Fortune Select, Fortune Park, Fortune Inn and Fortune Faith. With this expansion, the company aims at adding approximately 1,000 more rooms to its existing portfolio of 1,250 rooms.

Under the Fortune Select brand, the business hotel segment of the company, three properties are being developed - Fortune Select Trinity at Bangalore, Fortune Select Exotica at Navi Mumbai and Fortune Select at Lavasa. The idea is to focus on the metros and gateway cities. Besides, three properties are being developed under the Fortune Park brand, including Fortune Park Panchwati at Kolkata, Fortune Park Jupiter and Wellness Centre in Thane and Fortune Park Mermaid and Residences at Kochi.

Apart from that, Fortune Inn brand, which comprises of business hotels with less than 50 rooms, will introduce one property each at Vishakapatnam and Pune, to be called Fortune Inn Shree Kanya and Fortune Inn Jukaso respectively. And then, in order to cater to the growing number of religious tourists, the company plans to set up two properties in Shirdi under the Fortune Faith brand.

September 8, 2007
Source: Travel Biz Monitor

3. Parsvnath plans 5-star hotel in Hyderabad

Parsvnath Developers plans to open a five-star hotel, shopping and office complex in Hyderabad.

This complex will have an area of 3 lakh square feet and the five-star hotel area will span across 1.75 lakh square feet with 186 rooms.

In addition to this project, the company has received government's approval for setting up a bio-technology and pharmaceutical special economic zone over 25 acres in Hyderabad.

At 3.11 PM, Parsvnath Developers shares, however, were down 1.19 per cent at Rs 312.60 on BSE with volume traded at 2,00,800 against two-week average of 3,89,458 shares.

September 6, 2007.
Source: Economic Times

4. Taj inks marketing pact with Okura Hotels of Japan

Indian hospitality major Taj Hotels Resorts and Palaces has struck a marketing alliance with Japan’s Okura Hotels to explore cross-promotional opportunities for both the companies.

This tie-up initially will give access to nine Taj properties and seven Okura properties across the world. “The list of properties will gradually be expanded. The Japanese market is a big source market for us and currently it accounts for little less than 15% of the business,” said Raymond Bickson, MD of Taj Resorts.

This tie-up will also allow customers a slew of benefits like reservations, travel benefits, and loyalty programmes. “We are not planning to set up hotels in India in the near future and this tie-up will allow us to expand business in India where leisure and business activity is fast increasing,” said Mikio Matsui, president, Okura Hotels.

Under the alliance, both Taj and Okura will jointly participate in trade shows, sales events, niche marketing programmes and culinary promotions. This will also include a special exchange programme wherein both organisations will send people to be trained in each other’s hotels in different areas of expertise.

This alliance will also support and enhance the Taj Hotels and Okura representation in different parts of the world. Okura has achieved a consolidated revenue of $515 million in the fiscal ended March 2007. Taj’s list of hotels include 77 hotels both in domestic and international markets, and Okura runs 24 hotels while 17 are located in Japan.

Meanwhile, Taj has moved to a single currency rate since September 1 and is hiking room rates by 15%. Traditionally, all hotel companies hike room rates in September. After a slow two quarters, the hospitality industry is gearing up for a high season, said Taj officials.

September 5, 2007.
Source: Economic Times

5. Hilton, Ritz Carlton eyeing tie-up with Puravankara

Top hotel chains Hilton and Four Season are believed to be in the race for tying up with Puravankara Projects Ltd for its proposed Rs 1,000 crore investment to set up half a dozen hotels in southern India.

Ritz Carlton and EIH are the other two hotel chains believed to be eyeing the business opportunities, industry sources said.

Officials of none of the four hotel chains or Puravankara could be contacted for comments on the speculation of either the investment or a possible tie up.

Bangalore-based Puravankara had recently tapped the capital market to raise Rs 858 crore through its Initial Public Offer. The IPO of Puravankara Projects was subscribed 1.91 times and shares were listed on August 29. The company's IPO received bids for 4.09 crore shares against 2.15 crore shares on offer. It had lowered its price band to Rs 400-450 per share in view of the volatile market conditions. The company's share price today settled at Rs 375.40, a gain of 0.04 per cent over yesterday's close.

The firm is all set to foray into the international market with its first overseas project expected to be launched in the next 2-3 months in Sri Lanka. The company would develop over 100 villas in Colombo.

September 4, 2007
Source: PTI via Economic Times

6. Berggruen Hotels' first project to become operational in 2008

The first hotel project of Berggruen Hotels Private Ltd (BHPL), promoted by US-based Berggruen Holdings, that aims to build 40 hotels in India will become operational by July 2008.
"BHPL has received USD 25 million funding so far from Berggruen Holding," its Founder and President Nicolas Berggruen said here today.

"The first hotel will become operational by July 2008 and after that every second month a new hotel will be launched," Kabir Kewalramani, advisors of Berggruen Holdings in India told PTI here today after the company unveiled its top brass that will spearhead its USD 300 million investment in India.

Sanjay Sethi heads the hospitality business as Berggruen Hotels' Managing Director and CEO. BHPL was started in September 2006 with an intent to focus on the value for money and mid-market hotels, resorts and serviced apartments under the brand name `KEYS' with three sub-brands Keys Hotels, Keys Resorts and Keys Apartments.

"Construction has commenced on three sites in Thiruvananthapuram, Kovalam and Ludhiana," BHPL said. BHPL propose to own and operate 100 to 170 room boutique-budget hotels across the country's metros and hinterland. The company has acquired 14 sites for 11 hotels, one resort and two apartments and is pursuing 15 more.

Berggruen Holdings manages assets of Nicholas Berggruen exceeding USD 1 billion and has already made investments in US, Europe, Turkey and Israel.

September 4, 2007
Source: Economic Times

Niche Tourism

Others

1. Travel, but in a responsible way

Tour operators all over the world are offering packages that do good for destinations.

Global warming, environmental degradation because of mass or badly managed tourism, and displacement of local communities might not be the first things you think about when you plan your holiday, but soon they will be hot topics you cannot sidestep (global warming already is). But you can help, in your own small way.

Now there are tour operators who can plan a responsible tour for you. There are hundreds of tour operators across the globe today who are working towards offering trips which, in the true sense, are responsible and often eco-friendly as well.

Check out Responsibletravel.com. Their trips leave the lightest footprint possible, out of over 160 specialist tour operators who meet the website’s required environmental, social and economic criteria. You could book a seven-day Masai Mara safari in Kenya for $1,395 (excluding flights) which will take you not just to the wildlife park but also to discover the contrasting scenery, wildlife environment and cultures of the Masai savanna, Kikuyu Lake area and Great Rift Valley.
“As well as superb wildlife viewing opportunities we include insights into the way of life and cultures of local communities. This way you get a much more rewarding and richer safari experience and the local people get a more direct share of the benefits that foreign visitors can bring,” says the website.

Within India, too, there seems to be a growing consciousness among many tour operators about responsible tours. For the ultimate in understated luxury, in a very responsible way, check out some of CGH Earth’s properties in south India.

At their Spice Village in Thekkady, Kerala, the accommodation is luxurious but, to accentuate the heady spice scents, there is no air-conditioning. This is how the villagers live. Here, the guests can pluck cardamom and other spices along with villagers who stay close by.

Ibex Expeditions organises some trips based on a humanitarian impulse. “We are organising a trip to Kancheepuram in Tamil Nadu where visitors will help in a medical checkup of women weavers who weave the sarees that are famous from this region. We have identified that eye trouble is one of their major concerns, so visitors plan to donate eye glasses to these women,” explains Mandip Singh Soin, managing director, Ibex Expeditions.

The most interesting, by far, is the tour he organises in Nagaland, where the community at large benefits. “There were pheasant hunters in Khonoma village near Kohima. We employed them as guides. The tour sometimes also includes home stays and then a guided walking tour to view exotic birds. The hunters now have an incentive to protect those pheasants,” he says. The Indian government’s rural tourism project across 36 villages too is a good example of responsible travel, where the idea is to help the village communities. Villages have been selected on the basis of their involvement in either a specific art or craft, or for their cultural and natural environment.

Tourism can be both good and bad for the environment and local people. Responsible travel increases the good and reduces the bad. Incentive to take that responsible holiday

September 2, 2007
Source: Business Standard

Policy

Travel and Tourism Support Industries …and much more

Research and Market reports

1. TAT conducts road shows to promote the 'Seven Amazing Wonders of Thailand' campaign in India

The Tourism Authority of Thailand (TAT) is conducting a three city road show, 'Amazing Thailand Road Show to India' to unveil its latest international marketing campaign, 'Seven Amazing Wonders of Thailand.' The road show was held in Mumbai on September 3rd and is being held in New Delhi today. It will be held in Bangalore on September 7th, 2007. The campaign focuses on promoting the country's hospitality, historical sites, beaches, natural attractions, health-related services, boutique hotels, festivals and shopping destinations. An 18 member delegation comprising of tour operators, hoteliers, and airline representatives are participating in the event. The new campaign, which will be featured in 18 main markets mostly located in Asia-Pacific, East Asia and European regions, is aimed at helping the country attain a target of 14.8 million inbound tourist arrivals in 2007 and 15.7 million arrivals by 2008.

According to Chattan Kunjara Na Ayudhya, Director-International Public Relations division, TAT, they are looking at receiving more corporate and Meetings, Incentives, Conferences, Exhibitions (MICE) travellers from India. "We know there is immense potential with regards to the Incentives market in India. Hence, we are working closely with the Thailand Convention Exhibition Bureau (TCEB) to attract more Indian travellers from the MICE segment," stated Ayudhya while speaking at the road show in Mumbai. As per TAT records, 4, 29,732 Indians visited the country last year of which about 73.58 per cent were leisure tourists, while 13.37 were business travellers. To tap the potential of the MICE and corporate segments, TAT recently set up an office in Mumbai.

Apart from that it is also hosting a FAM trip for Indian travel agents to Thailand in June next year. The target of TAT for the Indian market this year is a 20 per cent increase over last year's figures. TAT is also looking at generating revenue from the medical tourism sector. Pinki Arora, Marketing Manager (New Delhi), TAT, informed, "About 4,300 Indians visited Thailand for post-surgical care in 2006. I believe that the numbers will go even higher by next year. Around 1.5 million tourists from all over the world come to Thailand for medical treatment."

September 5, 2007
Source: Travel Biz Monitor

2. India is the numero uno travel destination

Known for its incredible snake charmers and age-old monuments to the world of tourism, India has emerged as the numero uno travel destinations trailing beauties of Italy, Thailand, Australia and New Zealand.

India's emergence to the top spot, over the fourth last year, was revealed by a survey conducted by a widely-read British magazine Conde Nast Traveller , which gives away Readers Travel Awards, considered to be the Oscar awards of the tourism industry.

"India was the 10th most preferred destination in 2004, the 4th in 2006 and is now at the top in 2007 and that is where we want to be," Union Tourism Minister Ambika Soni said while receiving the award at a glittering ceremony Monday night in London.

Conducted among the readers of the magazine that includes some of the most sophisticated and avid travellers across the world, the survey included a range of criteria for each category from 'range of accommodation' to 'environmental friendliness', the magazine said in a release.

In the April issue of the magazine, readers were asked for nominations for the worlds best hotels, spas, cities, airports, cruise lines and tour operators and to rate them. To discern their list of 'best of the best', each nomination was ranked to produce the world's Top 100 in each field.

The replies were then collated and analysed by an independent market research company before giving away with the awards.

September 4, 2007
Source: PTI via Times of India

3. Hospitality India International Awards recognises 28 top contributors

More than 500 industry leaders gathered in New Delhi last week to celebrate the top achievers in India’s hospitality sector in the third annual Hospitality India International Awards.

To recognise the importance of the emerging India tourism and travel market, the event was attended by leading tourism representatives such as India Civil Aviation Minister Praful Patel and Peter de Jong, Pacific Asia Travel Association (PATA), President and CEO.

“The Indian aviation sector is on a growth path, but more needs to be done,” said Mr Patel in his speech on the night.“The inward flow of tourists will grow further if infrastructure for tourism is improved. A committee on infrastructure has been formed under the aegis of the Prime Minister’s Office, and travel and tourism is high on its list of concerns.”

During the evening, 28 organisations and individuals were awarded for their achievements in the Indian tourism sector for the year. “India has one of the fastest growing travel and tourism sectors in the world,” commented Mr de Jong.

“In the first six months of 2006-07, inbound international tourists to India grew by almost 8%, with about 3.2 million footfalls. Tourism in India is being fuelled by a consumer-driven economy, a growing aviation sector and improving infrastructure.”

Mr De Jong also used the event to announce the confirmation that the 2008 PATA Travel Mart would be held in Hyderabad. “Earnings from the travel and tourism sector have been increasing steadily over the years. We had predicted that this money flow would grow by almost 25% in the next 10 years. But with the boom in the first three years itself, the target seems more than achievable,” added Mr Patel.

September 3, 2007
Source: www.etravelblackboardasia

Travel Characteristics of Indians

1. Indians abroad hit the road to enjoy self-drive

Outbound Indians are beginning to thrive on four-wheel drives. Indians going abroad for leisure are increasingly picking up self-drive packages doled out by travel companies in droves. There are several licence-neutral nations where an Indian driving licence is legit for three to four months.

Indian visitors are latching on to such feel-good levers of ‘generous’ nations and greasing the wheels abroad. Ergo, while travel firms are busy tailoring auto-packages for their patrons, the tourism boards of Mauritius, Malaysia, New Zealand, South Africa and others seem smitten with the idea. A peek at outbound Indians with ‘self-drive’.

Ravi Lulla is 29 and works as an ad exec in one of the top advertising agencies of the country. When on the job, he occasionally pays a visit to his company headquarters in Madison Avenue, New York. Otherwise, the jetsetter’s fave destination is New Zealand where he gets to drive around the rolling dales in a car of his choice.

“Self-drive packages to New Zealand really lets me get a feel of the countryside and soak in much more than what I would have otherwise,” he says. Though Indians are used to the comfort of being driven around and escorted by experienced guides, the higher-end travellers are enjoying the pleasure and privacy of self-drives.

“This activity is being considered as a status symbol. Promoting the self-drive concept in Malaysia, Tourism Malaysia has been organising the international level car rallies and treasure hunts,” says Manoharan, director of Tourism Malaysia.

The self-drive option is really exercised by high-end globetrotters. “The self-drive holiday concept has started picking pace among frequent travellers. We are aggressively promoting it by offering customised self-drive packages,” says Vishal Suri, COO, leisure travel, Thomas Cook. Though the absolute numbers for outbound travellers opting for this kind of package is not very impressive, the growth rate ticks along at 15%.

Hiring a self-driven car costs $30-60 per day in Mauritius, depending on the make of the vehicle. In Malaysia, while renting a local car costs $10, international brands can set one back by $50 or more.

“Travellers can easily navigate Mauritius roads enjoying picturesque scenery on the way. Self-drive options range from small bikes to fashionable cars to suit any lifestyle and budget,” claims Rajeev Nangia, associate director of TRAC Representations.

The average package cost for self-drive packages starts from $300, which includes basic self-service apartment and a vehicle at disposal. The demand for self-drive packages is steadily rising, both among the family holidaymakers and the honeymoon segment in India and already covers 3.5-4% of the travellers.

Among nations tossing up the self-drive option, New Zealand is fast gaining popularity. Thomas Cook has a brochure dedicated to self-drive options that one can avail of in New Zealand. Cox & Kings, too, is promoting New Zealand as a self-drive holiday destination.

“New Zealand offers many tourist spots within the driving limits. Also, an Indian driving license is valid there. Besides New Zealand, South Africa and Australia are also gaining popularity among travellers,” says Cox & Kings executive director Arup Sen
September 8, 2007
Source: Economic Times