26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 1
A DDP PUBLICATION
Pages: 68 (Excluding cover)
travtalkindia.com
ddppl.com
Vol. XXV No. 9; May 1 st fortnight issue 2013
` 50/-
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 2
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 1
TRAVTALK
1
ddppl.com
travtalkindia.com
MAY 1 ST FORTNIGHT ISSUE 2013
India ready for more international events India affirmed at the 25th Joint Meeting of UNWTO Commissions for South Asia, East Asia and the Pacific at Hyderabad, that it will further endeavour to bring more such international events, and rise as a leading centre for MICE. TT B U R E AU
I
ndia has shown its potential to rise as an attractive round-the-year destination to attract large-format international events by hosting the 25th Joint Meeting of UNWTO Commissions for South Asia, East Asia and the Pacific at Hyderabad. “By hosting, and exhibiting its rich heritage to all the delegates at the UNWTO Commissions for South Asia, East Asia and the Pacific at Hyderabad, India has been able to showcase its rich heritage to the world.
“We will further endeavour to bring more such international events to India and make the country as a leading centre for MICE,” said K Chiranjeevi, Minister of Tourism. We have also been successful in communicating that India is a safe destination for the tourists, he said. “During the year 2012; Asia and the Pacific region
K Chiranjeevi, Minister for Tourism (fourth from left) with other dignitaries in Hyderabad
saw the highest growth with a rate of over 7 per cent. The sub-region of South-East Asia recorded the maximum number of arrivals in these
regions, with a growth of 9 per cent. India was also second in terms of international tourism receipts in the region in 2012. The Indian
tourism growth of 5.4 per cent was higher than the world average of 4 per cent, in terms of foreign tourist arrivals,” he added.
Students get ready for tourism class The Central Board of Secondary Education (CBSE) has introduced a course in travel and tourism to provide students in Classes XI and XII the opportunity to learn basic skills of the industry. D E V I KA J E E T
Kuku S. Kumar Managing Director TravelMate India and TMI Academy
C
BSE has introduced 40 new vocational courses under the service category, providing schools the opportunity to teach more
skill-based subjects in Classes XI and XII. Travel and Tourism has been selected as one such course, which can now be taught at all CBSE schools for a minimum of 200 hours a year. The course is being
offered to create skilled manpower for the industry, in order to upgrade the skills and proficiency of the younger generation, and also to provide knowledge and awareness about various career options.
This travel and tourism course aims to introduce students to the potential of tourism in India. This course will provide complete knowledge of our country, including our culture, Contd. on page 10
Delegates from 21 countries, eight UNWTO affiliate members, two regional organisations and many industry organisations attended these meetings. They collectively shared the market trends of the region in the year 2012 and tourism prospects for the year 2013. The two commissions also discussed the priority areas of work to be undertaken in the year 2014-15. Various bilateral meetings took place for developing intra-regional and inter-regional strategies. Contd. on page 6
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 2
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 3
NEWS
Outbound attracts forex to India The spurt in outbound tourism has attracted leading NTOs, air-carriers and hotels to set up operations and make huge investments in India. TT B UREAU
T
he Outbound Tour Operators Association of India (OTOAI) is striving forward to build a more favourable sentiment for outbound business. As per Guldeep Singh Sahni, President, OTOAI, “We intend to bring out a white paper on outbound tourism, which highlights its positive contribution in terms of attracting foreign exchange and creating employment opportunities.” “The hard work put in by outbound tour operators also creates large employment opportunities across the world. These investments will grow along with the growth in outbound sector, which is pegged to reach 50 million in India by 2020,” he added. OTOAI intends to accomplish this through an
Members’ meet of OTOAI in New Delhi
intense research-oriented white paper that will be ready towards the end of 2013. “Many senior leaders in our industry have come forward to contribute to the said white paper, which will be ready by September 2013 or so,” said Sahni. OTOAI had also announced the setting up of new committees so that its members can come forward and share their expertise. “We have now created committees to take care of various issues
pertaining to government, NTOs, fams, airlines, members, IT, environment, legal & finance, hotel and newsletter & PR,” said Vineet Gopal, Joint Secretary, OTOAI.
across the country. However, our quality standards will still remain very stringent,” he added.
“All these committees will report to the EC and will constitute a Chairman, a Vice-Chairman and 3-4 members. In the next phase, we will start appointing city co-coordinators to ensure that OTOAI reaches out
OTOAI will release a white paper that will be ready towards the end of 2013
For Research
OTOAI had also announced the setting up of new committees so its members can share their expertise
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 4
STATISTICS VIEWPOINT
Tourism luring FDI
11 million FTAs by 2021 Whether it is foreign tourist arrivals, foreign exchange earnings, or the growth rate; a FICCI survey predicts a rosy future for India. TT B UREAU
I
t’s been clear for some time now that foreign investors have been wary of the growth prospects of the Indian economy. But, the conclusion of the Jet-Etihad deal, which is a welcome development, stands testimony to the fact that the present setting is deemed as most desirable to get going in the Indian market. As per the deal, Etihad Airways will invest $379 million for a 24 per cent stake in Jet Airways under the revised FDI policy of the GoI and will deliver wide-ranging revenue growth and cost synergy opportunities for both airlines. Moreover, the said alliance will bring significant passenger benefits with expanded code-sharing, creating a combined network of 140 destinations. Another important JV has been signed by AirAsia and Tata. The prospects of tourism, when seen in a holistic manner combining the possibility of growth in domestic, inbound and outbound are definitely luring top brands to the tourism sector in India from across the globe. Investor sentiment should get further reinforced with pro-active steps being taken by the Government of India and our Ministry of Tourism (MOT). For instance, the recently held third Inter-Ministerial Coordination Committee on the Tourism Sector has decided to extend the facility of Tourist Visa-on-Arrival to Goa, Thiruvananthapuram, Bengaluru, Hyderabad and Kochi airports in addition to Delhi, Mumbai, Chennai and Kolkata. This VoA facility is presently available to citizens of 11 countries viz. Japan, Singapore, Finland, Luxembourg, New Zealand, Cambodia, Laos, Vietnam, Philippines, Myanmar and Indonesia. K Chiranjeevi, Minister for Tourism, has been pressing hard for extension of the VoA facility to more countries, which has a strong likelihood to bear fruit shortly. Also, in the quest of doubling its inbound and domestic arrivals as envisaged by MOT, as per estimates, India requires to more than double the room inventory. As a facilitative measure to speed up hotel projects, MOT has now launched a web based project monitoring information system powered by the National Informatics Centre. The web-based Public Service Delivery System (PSDS) will make available real time information on Hotel approvals, classification, other allied services and will also be aligned with the Hospitality Development Promotion Board (HDPB).
Vikramajit Chairman SanJeet Publisher Deepa Sethi Editor
Editorial Ratan Kr Paul Vivek Sethi Megha Paul Devika Jeet Anita Jain News-Editor Peden Doma Bhutia Desk-Editor Archana Sharma Sr. Sub-Editor Hritvick Sen
Advertising Gunjan Sabikhi Asst. Vice President Karishma Khanna Sr. Manager Marketing Udit Pandey Sr. Manager Marketing Geetika Pathak Manager Advertising Amit Sarkar Asst. Manager Marketing Photographers Simran Kaur-Delhi Bharat Dangiya-Mumbai
T
ourism in India is the one of the largest service industries of the country. The World Travel and Tourism Council (WTTC) predicted in 2011 that, with an annual growth of 8.8 percent between 2011 and 2021, FTAs in India will cross 11 million by 2021 (approximately one percent of the global tourist population). This will have a tremendous impact on the tourism industry and all its allied sectors. In addition, India has a large medical tourism sector which is expected to grow at an estimated rate of 30 percent vious two years, even in the high-traffic months Jan-Mar and Oct-Dec. This has been boosted by the steady rise in VoAs in the country. During the period January-February 2013, a total number of 3,637 VoAs were issued as compared to 2,618 VoAs during corresponding period of 2012, registering a positive growth of 38.9 percent. Similarly, the FEE growth rates reported also show double digit-positive growth every year except in 2009. As noted earlier, growth in the foreign exchange earnings per tourist in the first few months of 2013 has also been impressive; foreign tourists tend to spend more in India annually, to become a US$ 2 billion industry by 2015. Foreign exchange earnings (FEE) from tourism also grew by 19.8 percent in rupee terms in February 2013 as compared to February 2012, although the FTA growth was much lower. This also indicates an impressive growth in the exchange earnings per tourist that was realised despite the ongoing slowdown in developed country markets, an increase in the cost of travelling and a fluctuating exchange rate. Foreign tourists tend to spend more in India than almost any other country worldwide. These are positive signs for the industry, and indicate significant potential going forward. The onset of the financial crisis in 2008 brought a major disruption in the Indian tourism sector's steady per-
Advertising (Mumbai) Suchita Saran Branch Manager Harshal Ashar Deputy Genral Manager Priyanshu Wankhade Asst. Manager Advertising Rishika Karra Sales Coordinator Advertisement Designers Vikas Mandotia / Nitin Kumar Design: Nityanand Misra Sudhir Mudgal Production: Anil Kharbanda Circulation: Ashok Rana
formance in the years preceding it. However, although the FTA growth rate fell in certain years since the crisis including in 2012, in absolute numbers the tourist inflow has grown every year except in 2009, the only year of de-growth. The
Foreign Exchange Earnings from tourism Year
FEE % change (in US$ mn) YoY
2002 3103 2003 4463 2004 6170 2005 7493 2006 8634 2007 10729 2008 11832 2009 11136 2010* 14193 2011* 16564 2012 8455 (Jan-Jun)*
-3.0 43.8 38.2 21.4 15.2 24.3 10.3 -5.9 27.5 16.7 8.2@
Source: RBI and Ministry of Tourism, GOI Note*: Advance estimate, @ growth rate over Jan-June 2011
TRAVTALK is a publication of DDP Publications Private Limited. All information in TRAVTALK is derived from sources, which we consider reliable and a sincere effort is made to report accurate information. It is passed on to our readers without any responsibility on our part. The publisher regret that he cannot accept liability for errors and omissions contained in this publication, however caused. Similarly, opinions/views expressed by third parties in abstract and/or in interviews are not necessarily shared by TRAVTALK. However, we wish to advice our readers that one or more recognised authorities may hold different views than those reported. Material used in this publication is intended for information purpose only. Readers are advised to seek specific
advice before acting on information contained in this publication which is provided for general use, and may not be appropriate for the readers’ particular circumstances. Contents of this publication are copyright. No part of TRAVTALK or any part of the contents thereof may be reproduced, stored in retrieval system or transmitted in any form without the permission of the publication in writing. The same rule applies when there is a copyright or the article is taken from another publication. An exemption is hereby granted for the extracts used for the purpose of fair review, provided two copies of the same publication are sent to us for our records. Publications reproducing material either in part or in whole, without permission could face legal action.
month-wise data reported in the India Tourism Statistics 2011 at a Glance, published by the Ministry of Tourism (MoT), also shows a steady rise in FTA inflows every month in 2012 over the pre-
than almost any other country worldwide, as India continues to attract relatively more business travellers and top-end holidaymakers compared to other countries in the region.
The publisher assumes no responsibility for returning any material solicited or unsolicited nor is he responsible for material lost or damaged.
504, Marine Chambers, 43, New Marine Lines, Opp. SNDT College, Mumbai - 400 020, India, Ph.: +91-22-22070129; 22070130
This publication is not meant to be an endorsement of any specific product or services offered. The publisher reserves the right to refuse, withdraw, amend or otherwise deal with all advertisements without explanation.
Durga Das Publications Middle East (FZE) Z1-02, PO Box: 9348, Saif Zone, Sharjah, UAE Ph.:+971-6-5528954, Fax: +971-6-5528956
All advertisements must comply with the Indian and International Advertisements Code. The publisher will not be liable for any damage or loss caused by delayed publication, error or failure of an advertisement to appear.
MUMBAI:
MIDDLE EAST:
TRAVTALK is printed and published by SanJeet on behalf of
DDP Publications Private Limited 72, Todarmal Road, New Delhi-110 001 Ph.: +91-11-23710793, 23716318, E-mail: sanjeet@ddppl.com Printed at Cirrus Graphics Pvt. Ltd. B-62/14, Phase-II, Naraina Industrial Area, New Delhi - 110 028
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 5
ASSOCIATIONS
MAY 1 ST FORTNIGHT ISSUE 2013
TRAVTALK
5
When Clinton set the ball rolling... The 13th summit of the World Travel And Tourism Council held in Abu Dhabi from April 8-10 was signiďŹ cant in many ways, not least of all because the keynote address was delivered by no less a person than Bill Clinton, the 42nd US President. A N I L M AT H U R
C
linton spoke on subjects which were clearly music to the ears of the over 1000 distinguished delegates. But it would be a mistake to think that his presence was the only big thing at the WTTC Summit. What was equally important was what the summit did to bring Abu Dhabi, the Tourism and Culture Authority of Abu Dhabi, Etihad Airways, the WTTC and the whole travel and tourism industry of the future into focus. The deliberations made it clear that the speaking with one voice, providing leadership, preparing for tomorrow and sustainability issues would be the talking and action points in days to come.
David Scowsill CEO and President WTTC
David Scowsill, CEO and President, WTTC, said that the importance of tourism industry must be understood, stressed and recognised. He listed steps taken by the WTTC to state the case with one voice, and noted that over the next 10 years, travel and tourism GDP is set to grow by 4.4 per cent on average per year. By 2023, he said, economic contribution of the industry will be 10 per cent to the GDP- amounting to US dollar 10.5 trillion and one in 10 jobs.
Ban Ki moon, United Nations Secretary General
Ban Ki moon, United Nations Secretary General, through a message read by UNWTO Secretary General Taleb Rifai, said that 'tourism can and must play a role in our shared efforts to build a more sustainable world.' Contd. on page 8
Bill Clinton former US President
Clinton set the ball rolling as it were by saying that tourism is enriching the lives in a fascinating world, and it was good for the children, for the earth and growth for the future, adding that 'we should be alive to the possibility of what we can
do to enhance it." 'I predict that in the next 20 years, the travel and tourism industry will be leading the re-examination of energy policies based on what is best for the environment and economics.' Clinton said that there were no permanent
victories or defeats and one should try to stumble along the right direction. The former President said that he hoped that people will live in harmony and that travel and tourism will be a mean of promoting it. Clinton recalled his
days at the White House and earlier, when he had tried to play a role in promoting tourism, seeing its many gains. He noted that India and Pakistan could surpass China in tourism, if the defence spending by the two countries was reduced.
Clinton welcomed the recent Indian move to ease visa rules for elders coming from Pakistan to India. He lauded the progress made by the UAE, saying that the region was spending money in the right direction for development.
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 6
TIME MACHINE
22 years ago... Living through Visa Nightmare Rajen Bali You think you are ‘somebody ‘ with values of human dignity? Forget it, if you are in the capital of India, an Indian citizen and if you wish to travel abroad. Travel abroad requires visas. Everyone knows that. But many may not know about the trials and tribulations of acquiring a visa or what one is made to feel unless one belongs to the ‘privileged minority’. Apart from physical discomfort of having to stand in long queues and after as long as five hours being curtly told, “come tomorrow, your interview cannot be scheduled today,” The attitude of the visa section staff of embassies and high commissions is to be experienced to be believed. If the sahibs and memsahibs are condescending and ‘firm’, the Indians working in these places behave in a manner which can only be described as ‘generally abominable’.
The treatment dished out to the majority of visa-seekers, who are illiterate village folk or working class people and raw students is as if they were criminals. It is not difficult to see ‘fear’ stamped on the face of the visa-seekers. All because they wish to visit a relative or want to go and work abroad, they have to undergo almost inhuman treatment - such is the rude behaviour. True every country has the right to admit only those whom they wish to enter, but reasons like “lack of adequate staff” and “too many applicants” are hardly a licence to bad behaviour. Editor comments: Can’t the industry mobilise opinions to persuade the government of India which can take up the matter with foreign missions. Or do we also similarly treat visaseekers at our embassies?
September 1991 Vol 1 Issue 1 Page 3
... AND NOW
VoA to 5 more airports Kolkata airports. The Government of India has permitted TVoA facility for citizens of 11 countries viz. Japan, Singapore, Finland, Luxembourg, New Zealand, Cambodia, Laos, Vietnam, Philippines, Myanmar and Indonesia.
TT BUREAU
T
he third Inter-Ministerial Coordination Committee on Tourism Sector has decided to extend the facility of Tourist Visa-on-Arrival (TVoA) to Goa, Thiruvananthapuram, Bengaluru, Hyderabad and Kochi airports. This was submitted by Mullappally Ramachandran, Minister of State in the Ministry of Home Affairs in a written reply to the Lok Sabha on April 23, 2013. Earlier, the VoA facility
K Chiranjeevi Minister of Tourism (Independent Charge)
was available only at Delhi, Mumbai, Chennai and
K Chiranjeevi, Minister for Tourism, and his team had been pressing hard for an extension of the VoA facility to more countries and also extending it to new airports. It seems his efforts have now borne fruit.
Showing India to the world Contd. from page 1
The two commissions also discussed the issue of development of UNWTO Convention for the protection of tourists and tourism service providers and implementation of global code of ethics for tourism. The meeting identified visa, taxation and connectivity as three important determinants for the growth of tourism. Also, on the eve of the UNWTO meet in India; Taleb Rifai, Secretary General of United Nations World Tourism Organisation
The Indian tourism growth of 5.4% was higher than the world average of 4%, in terms of foreign tourist arrivals K Chiranjeevi, Union Minister of Tourism (UNWTO), accompanied by K Chiranjeevi, handed over an open letter to VicePresident M Hamid Ansari on April 11, 2013. The letter jointly signed by Rifai and David Scowsill, President and CEO, World Travel and
Tourism Council (WTTC) urges world leaders to join hands with the leaders from the other countries as well as with UNWTO and WTTC, to position travel and tourism higher on the global agenda.
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 7
NEWS
MAY 1 ST FORTNIGHT ISSUE 2013
TRAVTALK
7
Hollywood shoot easy in ‘Bollywood’ Manish Tewari, I&B Minister, assures that the proposed single window clearance mechanism would act as a facilitator as well as employment multiplier and present an opportunity to absorb creative potential of the youth in India. T E E N A B A R UA H
I
nternationally, films are considered a great way to up visitor arrivals in a country and are a brilliant means to grow the tourism exchequer. But, in India, a foreign film producer has to approach more than 30 agencies involved in granting permission to shoot films in India. These bureaucratic hurdles, however, are expected to disappear with the I&B Ministry initiating a single-window mechanism to enable international filmmakers get speedy and hassle-free clearances to shoot films.
Uday Shankar Pani CEO SP Communications
The proposed single window for clearances is a dreamcum-true for filmmakers from India and abroad “The proposed body would act as a facilitator as well as employment multiplier and present an opportunity to absorb creative potential of our young people,” said Manish Tewari, I&B Minister at the launch. The proposed InterMinisterial Empowered Committee to be constituted would include representatives of the State Governments and key Central Government Ministries. The creation of such an Empowered Committee would provide the platform and impetus to promote India as a Filming Destination across the world. This initiative was an important step in view of the country celebrating the commemoration of 100 years of Indian cinema. This has been in the pipeline for long. Sudhanshu Hukku, CMD, Locations World says, “We have been
demanding this for more than two decades. A simple shoot at the Gateway of India in Mumbai requires at least 21 permissions, from coast guards, police, army, road traffic, etc. Even if Centre initiates such a mechanism, a producer will still need clearance from state authorities.
The new mechanism should be cost-effective and offer quick permissions.” The film fraternity too has been demanding a mechanism to cut the red tape. Film producer Uday Shankar Pani, who is the CEO of SP Communications, says, “So difficult was getting all the
permissions and permits for a French feature film in Kolkata that the producers got fed up, moved out and created Kolkata in Sri Lanka. The proposed single window for clearances is a dreamcum-true for filmmakers from India and abroad. Most challenging are the local per-
missions. Apart from police, traffic, customs, the government should be helpful in organising permissions concerning religious and private properties.” He adds, “The committee should provide a databank Contd. on page 21
Helping Hand The proposed Inter-Ministerial Empowered Committee to be constituted would include representatives of the State Governments and key Central Government Ministries
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 8
8
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
ASSOCIATIONS
Tourism for the future@WTTC Summit
‘India, Pak can surpass China’ Contd. from page 5
India had a strong industry presence at the 13th Annual Global Summit of the WTTC held in Abu Dhabi. What stole the show was the significance of People, Profit and Planet—being discussed, apart from technology, taxation and visa issues coming up. ANIL MATHUR
T
he delegates who reached the Etihad Airways headquarters city had some glowing comments.
Paul said that she would like to have similar discussions at the country level, as per the membership desires. Arjun Sharma, Managing Director, Le Passage to India, said that the
David Scowsill and Taleb Rifai
Priya Paul, Chairperson, Apeejay Surrendra Park Hotels, who also heads the WTTC India, found the summit to be ‘excellent and outstanding’. She was particularly impressed by the quality of discussions at the sessions and the importance given to issues like sustainability and role of tourism.
summit was outstanding and the presence of real players at Abu Dhabi made it all the more relevant. Issues that came up at the summit made it clear that the customer was the key and the business plans must include the technological changes taking place. Sharma
said that embracing the online space was important. Sujit Banerjee, Former Secretary, Ministry of Tourism, now with the WTTC India and Chairman of the Committee on World Heritage Matters, was impressed by the format of the summit, pointing out that podium was necessary to have a successful discussions. Banerjee also liked the concept of each session having its own sponsor and the use of the social media. He was so impressed by the quality of the speakers that he was carrying back a list for possible use in events in India. In this context, he mentioned the name of James Hogan, CEO, and Etihad Airways, who not only was a main player in the organisation but also made some valuable points in his speeches. Sunder G Advani, an industry veteran, CMD, Advani Hotels and Resorts, said that the Abu Dhabi
Summit was a big improvement from the eight earlier ones that he had attended. Important subjects like demographic changes, future hotels and ecology were in limelight making for a very useful conference. The keynote address of Bill Clinton added a new dimension to the whole summit, said Advani. Ashwini Kakkar, Executive Vice Chairman, Mercury Travels, Former TAAI President, said that the summit was intellectually the most stimulating conference, adding that “For me, Abu Dhabi WTTC Summit was one of the best travel and tourism conferences I have attended.” It generated good ideas with things like the three Ps-– People, Profit and Planet– being discussed, apart from technology, taxation and visa issues coming up. Dealing with the next billion travellers would require greater efforts, Kakkar
pointed out. He took extensive notes from the addresses for future reference. Dipak Deva, CEO, Kuoni Travel, mentioned the need to ease travel by tackling visa issues. He noted that Clinton in his address had made a mention of tourism being good for the children and the future. Abha Dayal, General Manager, Corporate Relations, ITC Hotels, said that sharing experience and information were some major achievements of the summit. Mandip Singh Soin, Founder and Managing Director, Ibex Expeditions, said that ‘I am always happy to be at the summit as I love meeting the WTTC TFT awardees who are inspirational persons.’ Bill Clinton was superb, said Soin, echoing the voice and view of most of the delegates, not only from India but from all over.
James Hogan President and CEO Etihad Airways
James Hogan, President and CEO, Etihad Airways said that the global air traffic map was being redrawn as new markets emerge, traditional markets decline and the airline industry reshapes itself. Hogan listed the Etihad way of expansion through organic growth, code shares and minority equity investment in other carriers. This strategy was underpinned by development of Abu Dhabi as a new global air transport hub, connecting the networks of partner airlines. Celebrated media personality Sir David Frost, in a reversal of roles, was interviewed by Geoffrey Kent, founder and CEO, Abercrombie &Kent. Sir David asked the travel and tourism leaders to be well-briefed, charismatic, to lead, make an impression and get the support of world leaders. The 14th WTTC Summit will be held in Sanya, in Hainan province of China.
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 9
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 10
HOTELS
Starwood expands horizon The hotel group, which is targetting 100 hotels in India by 2015, aims to bring its luxury brand W Hotels to Goa in the first quarter of 2015. It also plans to expand the brand to major Indian cities such as Delhi and Mumbai. L YA N D R A D ’ S O U Z A
S
tarwood Hotels & Resorts Worldwide, Inc sees significant growth opportunities in the resort segment in India. The US-based hotel group currently has six resort properties in the pipeline, among which are the Le Meredien Mahabaleshwar, the Westin Bekal and the W Hotel in Goa. Simon Turner President, Global Development Starwood Hotels & Resorts Worldwide, Inc said, “The opportunities in the resort sector in India are tremendous, and we hope to strengthen Starwood’s resort portfolio in the region.” Starwood currently operates 36 properties in India and aims to reach 100 hotels by 2015. The hotel group will have 45 properties in India by the end of this year.
Of its nine brands, six are currently present in India. Starwood aims to bring the other two brands, the W Hotel brand and the St Regis brand in India shortly.
and Hyderabad. We see a strong synergy between Bollywood and the W Hotel brand and we believe that it will attract Indian travellers.” Turner concluded by saying, “It is important for us to be strategic and pro-active in a market like India. The conversion opportunities in India have grown rapidly recently and we will look either to manage a hotel or franchise selectively. India is Starwood Hotels & Resorts’ third largest by rooms.”
Simon Turner President, Global Development Starwood Hotels & Resorts Worldwide, Inc
The W Hotel in Goa will be operational in the first half of 2014. Turner added, “We will also aim to expand the W Hotel brand to Mumbai, Delhi, Kolkata, Bengaluru
Ready to Open Of its nine brands, six are currently present in India. Starwood aims to bring the other two brands, the W Hotel brand and the St Regis brand in India shortly.
Tourism as a subject... Contd. from page 1
traditions, our social history, hidden treasures of our country (natural beauty, monuments, places of pilgrimages), development scenario and aspirations. Outbound tourism will also be taught and will be explained as a passport for international understanding, peace and prosperity. “This is a big achievement for our industry. The Government has addressed the issue of providing specialised skills to students. CBSE has identified skill developers and TMI is the one chosen from the tourism sector,” says Kuku S. Kumar, Managing Director, TravelMate India and TMI Academy, adding, “We will help implement the programme in schools. A committee under IITTM has prepared the syllabus, and both domestic and outbound tourism will be taught in this programme. The curriculum also provides a good base for advanced studies.” India has only five per cent skilled workers in its total workforce. It is projected that the labour force will grow by close to two percent or some seven million or more a year over the next few years. Keeping this in mind, CBSE decided that a student can choose to avail competency-based skill learning, along with general education.
Tourism has the largest potential for employment as compared to other sectors, directly or indirectly. A balanced vocational-oriented education to students is the need of the hour to satisfy the ever-increasing demand of modern tourism. While enthusiastic about introducing the travel and tourism course, Kumar lists a few hiccups; “Some challenges we are facing include the fact that schools
in all CBSE schools across the country.” Teacher qualifications include a bachelor’s degree in tourism with two years’ experience in teaching or the industry or any bachelor’s degree with a diploma in Tourism & Travel with a five-year teaching or working experience. While talking about the expectations from the industry, Kumar adds, “We want the industry to support this
This year, we are looking at targetting 100 schools in Delhi with a minimum batch of 25 each Kuku S. Kumar MD, TravelMate India and TMI Academy
have to accept this course, encourage it and be ready to introduce it as an option. We also need to find good teachers. This year, we are looking at targetting 100 schools in Delhi with a minimum batch of 25 each. Thus, approximately 2,500 students in Delhi and around the same number in Punjab as well. We hope to train at least 5,000 students this year (starting July), and in the consecutive years, we want this number to substantially increase. By next year, we should be able to offer this course
with enough job opportunities in our industry. We require publicity of our industry and a buzz about the growth opportunities in travel and tourism.” New courses have also been added in the hospitality and cargo industry and these include transportation system and logistics management, foodproduction, food and beverage services, dairy science and technology, bakery and confectionery, and frontoffice training.
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 11
NEWS
MAY 1 ST FORTNIGHT ISSUE 2013
TRAVTALK
11
PLBs distort market dynamics: Mayal It has been noticed in a recent case where a travel agent went bust when it had over-traded as much as three-fold its insurance cover. studies the reasons. V IVEK S ETHI
O
ver the last decade, performance-linked benefits (PLBs) had taken the centrestage in terms of governing relationship between airlines and travel agents. As per Balbir Mayal, Past President TAAI (2003-2005), this practice has led to grave distortions in the market.
Balbir Mayal Past President, TAAI (2003-2005)
It is in the interest of the industry that PLBs must be abandoned. This will also motivate small, medium and big travel agents to work for airlines “PLBs were meant to reward travel agents in lieu of their outstanding achievement, or support to various airlines. But, in due course of
British Airways 6th flight on HyderabadLondon route British Airways recently launched its sixth direct service from Hyderabad to London. The flight operates on all days except Mondays. Flight number BA 276 departs from Hyderabad at 0640 hrs and reaches London at 1250 hrs. The airline is offering a choice of three cabins, Club World business class, World Traveller plus premium economy and World Traveller economy on the flight.
time, agents started to misuse PLBs to win business. Today, these PLBs has led to such distortions in the market that the airlines find it more convenient to work with a handful of 7-8 consolidators, while a growing number of genuine small and medium
players are letting their stock go,” said Mayal. In the past few years, the business environment had grown challenging due to the global business environment, diminishing margins and prohibition on collection of transaction fees.
“On top of this, the market looks over-leveraged due to power being consolidated in fewer hands. This has led to a systemic risk. It has been noticed in a recent case, where a travel agent went bust that it had over-traded as much as three-fold its insurance cover,” said Mayal.
“After such instances, many issues come to fore as to how could an agent over-trade to such an extent. However, one of the most negative fallouts of such incidents is that scores of genuine medium and small agents face the heat of new stringent rules and regulations,” added
Mayal. “It is in the interest of the industry that PLBs must be abandoned. The airlines should offer net rates, which will create a level playing field by ensuring transparency. This will also motivate small, medium and big travel agents to work for them,” Mayal added.
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 12
EXHIBITIONS
GITB ups inbound sentiment The sixth edition of the Great Indian Travel Bazaar (GITB) 2013 brought together key policymakers and stakeholders in India along with 273 foreign buyers from over 56 countries… V IVEK S ETHI
T
he strong participation of foreign buyers and Indian sellers has made GITB a niche platform to promote inbound tourism in India. In the sixth edition, the number of foreign tour operators (FTOs) wishing to do serious business with sellers of Indian tourism products grew
between exhibitors and foreign tour operators from across 56 countries scheduled in this edition will translate into negotiations and mutually beneficial business arrangements covering diverse segments. The Indian Heritage Hotel Association (IHHA), Hotel and Restaurant Association of Rajasthan (HRAR) and Rajasthan
enables them to acquire employment. In 2012-13, we trained 60,000 youth and most of them have been able to secure jobs.” Didar Singh, Secretary General, FICCI, said, “The USP of GITB has always been an exclusive focus on Inbound Tourism with structured, pre-scheduled meetings between foreign tour
Jyotsna Suri addressing exhibitors and buyers at the GITB 2013 press conference
from 265 in 2012 to 273 in 2013, who represented 56 countries. “GITB has emerged as a very productive forum for the travel and trade industry bringing a wide diversity of stakeholders from across the world on a single platform. The sixth edition has built on its legacy as over 273 foreign buyers from 56 countries deliberated with 269 Indian sellers across 254 stalls. These stalls were spread across 6 halls in the exhibition area from April 14-16, 2013,” said Bina Kak, Tourism Minister, Government of Rajasthan. GITB is an initiative of the Ministry of Tourism, Government of India, Department of Tourism, Government of Rajasthan and FICCI, which has been successfully organised in Jaipur since 2008 as a pan-India international platform for Inbound Tourism. “I hope like in the previous edition, the over 9,000 structured B2B meetings
Association of Tour Operators have also offered the major support to GITB,” said Jyotsna Suri, Vice President – FICCI, Chairperson - FICCI Tourism Committee. “The Bazaar’s significance is of particular importance in the context of the fact that over the years, countries worldwide have realised the immense economic potential of the tourism industry. The phenomenal growth of the tourism sector has resulted in making a significant contribution to the growth of GDP in different countries. It has, in other words, become a key driver of national economies and we have to undertake all the measures that the pie grows,” added Suri. Highlighting the importance of building skill set, AK Gupta, Additional Director General (MR), Ministry of Tourism, Government of India, said, “Under the scheme of ‘Hunar se rozgar tak’, we are enhancing the skills of the youth and imparting training, which
operators and the sellers of tourism products from India. We are honored to have the presence of the state governments of Gujarat, Madhya Pradesh, Karnataka, Uttarakhand, Maharashtra, Orissa, Himachal Pradesh, Punjab, Tamil Nadu and West Bengal at GITB.” The other dignitaries who shared their perspectives at the inaugural session were Maharaj Jai Singh, Chairman, FICCI, Rajasthan State Council Dipak Deva, Co Chairman, FICCI Tourism Committee and Rakesh Srivastava, Principal Secretary, Tourism, Government of Rajasthan.
Raising Stakes GITB is an initiative of the Ministry of Tourism, Government of India, Department of Tourism, Government of Rajasthan and FICCI, which has been successfully organised in Jaipur since 2008 as a panIndia international platform for Inbound Tourism.
Goa Tourism promotes its beaches, spice plantations Keen on making Goa a year-round destination for tourists, its Department of Tourism, Government of Goa, in partnership with Goa Tourism Development Corporation (GTDC) has launched promotions to draw in the summer vacationers. The state is actively promoting its beaches to couples and families who are looking to take a break during this summer holidays. Visitors have the option of choosing their location to stay: Miramar, Colva or Panjim Residencies run by GTDC.
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 13
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 14
STATES
MP chalks out 16 STZs Sanchi, Orchha, Maheshwar and Mandu are among the 16 sites that have been earmarked as sites to develop the Special Tourism Zones (STZs) concept. these spots. Sanchi, Orchha, Maheshwar and Mandu are among the 16 sites that have been earmarked in this effort.”
VIVEK SETHI
M
adhya Pradesh has recently amended its tourism policy and identified sites to develop them as Special Tourism Zones (STZs). The objective of the concept is to encourage private-sector players to come and develop new tourism attractions. As per OV Chaudhary, Chief General Manager, Madhya Pradesh State Tourism Development Corporation (MPSTDC), “We have recently made a few amendments in our tourism policy, originally released in 2010. We now have introduced the Special Tourism Zones (STZs) concept, wherein we have identified various
Makeover for Tourism Madhya Pradesh has jumped on the tourism map of India in a very short period and emerged as one of top 10 states in terms of domestic tourist visits The state has now introduced the Special Tourism Zones (STZs) concept
OV Chaudhary Chief General Manager MPSTDC
We intend to incentivise the private sector players with help of various subsidies, tax holidays and benefits in terms of fee-exemption to develop new tourist attractions locations to create new tourism attractions at
“The idea is simple. We intend to incentivise the private sector players with the help of various subsidies, tax holidays and benefits in terms of fee-exemption to develop new tourist attractions,” he added. Another important feature of the said initiative is the environment-friendly nature of the entire process. “We have ensured that these projects come up without disturbing the forests, and undertake all the essential environmental safeguards,” said Chaudhary. Madhya Pradesh has jumped on the tourism map of India in a very short period and emerged as one of top 10 states in terms of domestic tourist visits. It had also recently called its trade partners to thank them for support and showed a glimpse of the new TVC promoting MP, which now has gone on air.
Haryana perks for agents Introduces new scheme for agents to book rooms online and earn handsome commissions. reports. A N I TA J A I N
U
nderstanding the growing importance of travel agents and tour operators in domestic market scenario, Haryana Tourism has launched a new scheme wherein agents can register online and start earning commission on hotel-room bookings. As per the new scheme, travel agents and tour operators registered with any of the trade associations (TAAI, TAFI, IATO, ATOAI and ADTOI) or with Government of India can register with a non-refundable fee of ` 1,000 with Haryana Tourism Corporation, and access the online hotel booking platform managed by the tourism board. Along with a minimum of 10 per cent commission of per night per room booking, the commission will vary for group bookings and number of room nights booked in certain period of time. Divulging further details, Sunil Bhatia, Marketing Head, Haryana Tourism Corporation said, “Haryana Tourism Corporation operates over 40
Sunil Bhatia Marketing Head Haryana Tourism Corporation
Along with offering attractive commissions, we also provide assistance to the registered members for local suppliers properties with close to 800 rooms across the state. To increase awareness and improve sales, we are collaborating with members of
reputed travel associations. Along with offering attractive commissions and incentives, we are also providing assistance to the registered members for local suppliers, packages, attractions, sightseeing, etc. It was important for us to collaborate with reputed agents, and thus, we selected top five travel trade associations.” The corporation is also expanding its focus area by exploring other tourism segments like highway tourism wherein it is targetting the transiting tourist travelling to Rajasthan, Uttar Pradesh, Himachal Pradesh and Punjab via Haryana. As per the report filed by AC Nielsen, titled as ‘Tourism Survey for the State of Haryana (April 2011- March 2012)’ and submitted to Ministry of Tourism (Market Research Division), Govt of India; during April 2011March 2012, the corporation recorded 50 per cent occupancy which was the highest. Bhatia concluded, “We are sure that the members will bring us substantial business this year.”
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 15
STATES
MAY 1 ST FORTNIGHT ISSUE 2013
TRAVTALK
15
Chandigarh to host 1 CII tourism fest st
The international event to be held from December 5-7, 2013 at Chandigarh will showcase tourism and hospitality potential in eight Northern states as well as in the UT of Chandigarh. T T B U R E AU
T
he Confederation of Indian Industry (CII) Northern Region announced an event for the tourism and hospitality named ‘CII Tourism Fest’. The event will boost tourism and hospitality industry and showcase tourism potential in the eight Northern states and UT of Chandigarh from December 5-7, 2013.
“Today, across the globe, tourism is recognised as the fastest growing sector. In our endeavour to create the biggest tourism event in the northern region, based on the interaction with our state partners and industry leaders, we have decided to conduct the first ever CII-Tourism Fest in Chandigarh from December 57, 2013. We will work with all stakeholders in the tourism industry to ensure that the said event is a grand success. It will be open for the B2B segment on the first two days while for public, it will be open on the final day,” said Arjun Sharma, Chairman, CII Tourism Fest 2013. According to CII, the event will also dwell on aspects like participative role of central & state governments and agencies, demand & supply scenario in India, tourism development: destination marketing, urban and regional tourism development, sustainable tourism, economic sustainability and impact of tourism on economy among many other key topics of interests. “The CII-Tourism Fest will create a Chief Ministers’ Forum to address various issues like infrastructure, connectivity, security, cleanliness, information sharing, accommodation, food, travel and policies, etc which hinder the growth of tourism,” said Sharma. Speaking on the progress, Jayant Davar, Chairman, CII Northern Region, said, “The first ever CII Tourism Fest would be organised with the partnership of all northern state governments on a very big scale with a lot of domestic as well international participation. Punjab and Chandigarh would be the host states and the discussions are on with other states to partner in this unique initia-
First Ever The first ever CII Tourism Fest would be organised with the partnership of all northern state governments on a very big scale with a lot of domestic as well international participation
tive. States like Chhattisgarh, Jharkhand, Madhya Pradesh, West Bengal, Bihar, Uttarakhand, Gujarat, Maharashtra, Goa, Karnataka, Andhra Pradesh, Kerala and Odisha have also shown interest to participate,” said Davar.
“The show is aimed at creating an enabling environment conducive to the growth of tourism sector and attracting investments in Northern India states and UT. It will have an international flavour as well, as Thailand and
Dignitaries announcing launch of CII Tourism Fest 2013
Dubai have already confirmed their participation and we are expecting participation
from countries like Germany, South Africa, US, Canada, Russia, Australia Seychelles,
Sri Lanka, Singapore, Malaysia, Macau, Britain etc”, added Davar.
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 16
16
STATES
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
DoubleTree now opens in Pune Worldwide Hilton recently announced the signing of a franchise agreement with Panchshil Hotels for an upscale, fullservice DoubleTree by Hilton hotel. DoubleTree by Hilton PuneChinchwad, scheduled to open in June 2013, will mark the rapidly-expanding global hospitality company’s first hotel in Pune. This will be the DoubleTree by Hilton’s fourth hotel in the country. “The launch of DoubleTree by Hilton Pune-Chinchwad will be another step in our growth in India,” said Martin Rinck, President, Asia Pacific, Hilton Worldwide. “We are hoping to increase our presence to 17 hotels by the end of this year.” “DoubleTree by Hilton Pune-Chinchwad will offer world-class amenities and services and we are confident that it will be the first choice of travellers in the region,” said Ajay Chordia, Chairman and Managing Director, Panchshil Hotels.
Unveiling the new face of Rajasthan As part of its repositioning, Rajasthan Tourism announced a shift in focus towards innovative tourism products. RTDC has also decided to handover 22 accommodation units to the state government. M E G H A P AU L
B
reaking the shackles of history and heritage, Rajasthan is now looking at repositioning itself in the tourism world. The state will now be promoted as a destination for eco, adventure, wildlife and sports tourism. Bina Kak, Minister for Tourism, Government of Rajasthan said, “This is a major shift from the traditional focus on culture and heritage. We are changing the positioning of Rajasthan to a multiple-interest destination, attractive to diverse tourist groups from India and abroad. The focus will be on bringing efficiency in service delivery to visitors to increase the number of repeat travellers.” Kak, who was speaking at the inauguration of the sixth edition of the Great Indian Travel Bazaar in Jaipur, said the B2B travel market has evolved into a productive forum for businesses as well as policymakers in the country ever since its inception.
Bina Kak
Rakesh Srivastava
Minister for Tourism Government of Rajasthan
Principal Secretary-Tourism Government of Rajasthan and MD, RTDC
We are changing the positioning of Raj. to a multiple-interest destination. The focus will be on bringing efficiency
The state will also be promoting resort, archaeological and tribal tourism.
Incentives are offered for hotel development. These include a 50 % reduction in luxury taxes in the low season In addition, new incentives are being offered to spur hotel development,
Rakesh Srivastava, Principal Secretary-Tourism, Government of Rajasthan and MD, RTDC revealed. These include a 50 per cent reduction in luxury taxes in the low season for new hotels in selected locations, land conversion charges at almost 20 per cent lower than commercial market rates and higher floor area ratios for the construction of hotels and resorts. RTDC will also hand over 22 accommodation units, identified as non-performing, to the state government. According to Srivastava, the ‘current market value’ of these units has been assessed and will be handed over to the government. These properties will be managed by the Power Finance Corporation. With the handing over of these accommodation units, RTDC will be left with 20-odd units under its ownership, Srivastava added. Two mega tourism projects in the state-Jaipur and Jaisalmer-are currently under
the scrutiny of the Ministry of Tourism, Government of India for approval, he informed. Creation of tourism infrastructure and new circuits is of utmost importance to the state tourism department. The department is supporting the joint initiative of ITDC and Hindustan Salts for developing Sambhar as a major tourist destination. While long-term projects will be undertaken by Hindustan Salts, the department also will focus on basic infrastructure works like repair and renovation of temples, museums, circuit houses, etc, around the area.
New Tourism Circuits Eco-Tourism Adventure Tourism Wildlife Tourism Sports tourism Resort Tourism Archaeological Tourism Tribal Tourism
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 17
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 18
18
STATES
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
JATA rep office in India To be hosted in September, JATA ‘TABIHAKU’ Travel Showcase 2013 has over 110,000 visitors and professionals attending the event. JATA, one of the largest travel and tourism events in Asia, now has a representative in India. As per a recently signed agreement, The DDP Group will be the agent for representing this exhibition in India. The first event of Japan Association of Travel Agents (JATA), formerly known as the Japan Congress of
International Travel and Travel Trade Show, started with only 1,500 industry participants. Now, the event has become one of the largest exhibitions in Asia with 37,075 participants and over 110,000 visitors. The JATA ‘TABIHAKU’ Travel Showcase 2013 will be a perfect opportunity for networking and having pioneers in the travel industry under the same roof. From September 12-13, 2013, the tourism event will have trade and press meets, as well as general public days.
CM Manohar Parrikar inaugurates Goa Heritage Festival 2013
Manohar Parrikar, Chief Minister, Goa, inaugurated the Goa Heritage Festival 2013 at the Saligao Football grounds near the 125-year old Mae De Deus church, which is a heritage structure on the occasion of World Heritage Day. The first day saw a Ranmale performance by Pundalik Sawant and troupe from Kirti Kala Krida Kendra, Sarvan, Bicholim, and a fugdi, Kannal Khel and Morailem performance by United Youth of Ambaulim led by John Fernandes.
Act and lead in tourism sector: Modi After making tourism one of the core sectors for economic growth in the state, the tourism budget has been increased from ` 30 crore in 2005-06 to ` 500 crore in 2013-14. features views of Gujarat Chief Minister... A N I TA J A I N
T
en years back, Gujarat was nowhere in the top five states for tourism in India. Today, it not only has the most powerful and talked-about promotional campaigns, but has also registered excellent growth in tourism figures, zipping past many states. In fact, where tourism numbers to India as a whole are not going as they should, visitor numbers to Gujarat have grown – in 2012, the state welcomed 16 per cent more visitors than it did the year before, which was double the national average at eight per cent. According to Narendra Modi, Chief Minister of Gujarat, tourism is now a priority sector in the state. Talking about the growth in tourism sector, Modi said, “Since 2006, when we celebrated the year as a Tourism Year, the state has grown in leaps and
Narendra Modi Chief Minister of Gujarat
Gujarat today caters to every type of traveller according to his or her budget size bounds. With just ` 30 crore as the tourism budget in 2005-06, our budget today
is ` 500 crore and will be increased, considering the potential in this sector. If we act on the potential, we can lead the tourism industry in India. Be it culture, history, Buddhism, wildlife, festivals, nature, monuments or even business; Gujarat today caters to every type of traveller according to his or her budget size.” He also informed that the state is in process of developing more jungles, wetlands, religious sites, cultural and heritage sites, eco-tourism sites for tourism purposes. Among the state’s major attractions, he highlighted the Great Rann of Kutch, spiritual tourism and eco-tourism as well as the increasingly important role in India’s lucrative movie industry. According to Modi, film industry is one of the best ways of promoting a state, and reaching national and international travellers. “We are in process of soon introducing a policy for film-
makers and production houses. Under this special policy, they will be provided with incentives to choose and select various locations in Gujarat for their film shoots. Movies are bringing more and more tourists to Gujarat,” informed Modi. The state is also encouraging private investors to come forward and invest in various tourism projects in the state.
Setting Examples The state welcomed 16 per cent more visitors than it did the year before, which was double the national average at eight per cent Film industry is one of the best ways of promoting a state, and reaching national and international travellers With just `30 crore as the tourism budget in 2005-06, its budget today is `500 crore
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 19
AVIATION
MAY 1 ST FORTNIGHT ISSUE 2013
TRAVTALK
19
Etihad fuels Jet’s dream to soar The alliance will bring significant passenger benefits with expanded codesharing, creating a combined network of 140 destinations, and a 24% stake in Jet for Etihad. T T B U R E AU
E
tihad Airways and Jet Airways announced that the UAE national carrier has agreed to subscribe for 27,263,372 new shares in Jet Airways at a price of ` 754.74 per share. The value of this equity investment is US$ 379 million and will result in Etihad Airways holding 24 per cent of the enlarged share capital of Jet Airways. As part of this, Etihad Airways paid US$ 70 million to purchase Jet Airways’ three pairs of Heathrow slots through the sale and leaseback agreement announced on February 27, 2013. Jet Airways continues to operate flights to London, utilising these slots. An amount of US$150 million will be invested by Etihad Airways in Jet Airways’ frequent flyer programme ‘Jet Privilege’, subject to appropriate regulatory and corporate approvals. Under the partnership, which will be subject to full regulatory and shareholder approval, the airlines will gradually expand existing operations and introduce new routes between India and Abu Dhabi, providing an everwider choice to the travelling public. They will combine their network of 140 destinations, with Jet Airways establishing a Gulf gateway in Abu Dhabi and expanding its reach through Etihad Airways’ global network. Passengers from 23 cities in India will benefit from direct connections to international destinations. Details of the investment were unveiled by Etihad Airways President and Chief Executive Officer, James Hogan, and the Chairman of Jet Airways, Naresh Goyal. The latter said: “I would like to thank the Government of India, especially the Ministries of Civil Aviation, Commerce and Industry, and Finance, for having the foresight to introduce the his-
The Fine Print Substantial ownership and effective control will remain with Indian nationals, with Naresh Goyal as the non-executive Chairman holding 51 per cent of the company Etihad Airways’ investment in Jet Airways follows the minority equity stakes taken by the airline in airberlin, Air Seychelles, Virgin Australia, and Aer Lingus over the last 12 months
toric reform of allowing FDI into civil aviation in India.” Hogan said, “We look forward to collaborating with Jet Airways to build a sustainable, competitive and profitable airline.” A key component of the wide-ranging partnership is expanded codesharing on
flights with passengers benefiting from reciprocal ‘earnand-burn’ rights on the airlines’ frequent flyer programs. The proposed codeshare expansion will significantly enable Etihad Airways to tap into India’s rapidly growing travel market, providing additional passenger traffic to Etihad Airways’ Middle
Eastern, North American and European destinations, and give Jet passengers from various cities access to an expanded network. Etihad Airways currently flies to nine Indian destinations including Delhi, Chennai, Mumbai, Kozhikode, Thiruvananthapuram, Hyderabad, Bangalore,
Ahmedabad and Kochi, with a total of 63 flights per week. The airlines will explore joint purchasing opportunities for fuel, spare parts, equipment and catering supplies, as well as external services such as insurance and technology support.
Etihad Airways President and CEO, James Hogan and Jet Airways Chairman, Naresh Goyal
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 20
20
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
FAMILY ALBUM
India shows its might in Hyderabad By hosting and exhibiting its rich heritage to all delegates at the UNWTO Commissions for South Asia, East Asia and the Pacific at Hyderabad, K Chiranjeevi, Minister for Tourism said, “With this event, India has been able to showcase its rich heritage to the world and also been successful in communicating that India is a safe destination for the tourists.”
Tourism on global agenda On the eve of the UNWTO meet in India, Taleb Rifai, UNWTO Secretary General accompanied by K Chiranjeevi, Minister for Tourism handed over an ‘Open Letter’ to Vice President M Hamid Ansari on April 11, 2013. The letter jointly signed by Rifai and David Scowsill, President and CEO, WTTC urges world leaders to position travel and tourism higher on the global agenda.
A little play to go with work
Indian travel agents got to witness the beauty of Oman on a familiarisation trip conducted by the Ministry of Tourism, Sultanate of Oman in association with Oman Air. Travel agents from Mumbai, Delhi, Bengaluru and Chennai got firsthand exposure to the various activities that Oman offers and see the breathtaking locales of the country.
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 21
STATES
History lesson in Karnataka The state is developing various tourism circuits to attract travellers from every segment and every budget. ANITA JAIN
I
n a bid to develop infrastructure and tourism circuits, the Karnataka State Tourism is now encouraging private sector to invest in the potential tourism industry of the state. Under the landbank policy issued by the state government for 201214 tenure, the government is
focus for these land banks are Aihole, Badami, Pattadakal and Hampi which comes under the ‘historical circuit’ of the state. The state is also focussing on developing hill stations and is investing close to ` 100 crore to develop Kemmanagundi and Nandi Hills for tourism infrastructure. Talking about the hill S B Ashwini Kumar
Picture Courtesy: Karnataka Information Tourism
Tourism Promoter, Promotion, Department, Department of Tourism, Karnataka
We are encouraging private investors to come forward and invest in these locations with us
Stone Chariot, Vijay Vittal Temple Complex
offering state-owned land banks at attractive prices and lease period for private players who are looking at developing tourism-related projects like hotels, attractions, etc. The key destinations in
station tourism, S B Ashwini Kumar, Tourism Promoter, Promotion Department, Department of Tourism, Karnataka said, “Karnataka as a state has excellent tourism assets and we are
Heli-Tourism project Karnataka’s Department of Tourism has constructed 18 helipads across the state to develop heli-tourism. Since it was a public-private partnership project, the state appointed Delhi-based Im Sathya Sai to operate chopper services in the state. However, the private operator backed off due to unknown reasons and now the heli-tourism project in the state is temporarily abandoned. The state is now looking at floating fresh tenders to restart the project and launch helitourism facilities in the state.
slowly developing them to make it tourist friendly. At present, we are reshaping the accommodation facilities at Kemmanagundi Hills along with building infrastructure and other tourist facilities. We will be opening up our Nandi Hills accommodation facility in next three to four months. We are encouraging private investors to come forward and invest in these locations with us.” Elaborating on the other activities, Kumar said, “We are also developing medical tourism, cultural tourism and religious tourism. At present, seven to eight Jain sites are developed to build a Jain religious tourism circuit.”
One window to shoot films Contd. from page 7
of genuine, government approved location managers and line producers. At present, 95 per cent of filmmakers, especially the ones from abroad, usually fall for unscrupulous tourist guides and cab drivers for their coordination. Things can be improved by creating an impressive data bank of various locations in India, available on the click of a button and by being strict with filmmakers from world over regarding government set rules and regulations. At any given time, 90
per cent of the crews from overseas shoot in India without valid permissions.” The committee will act as ‘single window’ for filmmakers seeking permission from different agencies of the government of India for filming of feature films, short-films and TV programmes. The panel will be headed by the I&B secretary and will have joint secretaries from home, tourism, external affairs, culture, railways, civil aviation and defence ministries as its members besides state government representatives on a case-to-case basis.
Elaborating further, the Minister said that the Justice Mudgal Committee constituted to review the mandate and functioning of Central Board of Film Certification (CBFC) and to recommend measures including statutory changes to enable CBFC to deal with contemporary requirements of certification and increased transparency/ efficiency was expected to submit its recommendations shortly. These recommendations would enable the ministry to review the legal architecture for the film certification process.
Berlin on Indian students’ minds German National Tourist Office, India co-sponsored the visit to let the students experience Berlin and its environs. The entire
class of 30 Kendriya Vidyalaya students who won the ‘Germany On My Mind’ competition had a bonus-an opportunity
to meet both the German Chancellor Angela Merkel and the Indian Prime Minister Manmohan Singh in Berlin.
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 22
22
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
AVIATION
Let AI fly with overseas investment wing Despite buoyant speculation about Air India posting ` 1,040 cr operating profit next fiscal, the net result in the current financial year will remain significantly in the red, according to a recent report by the Centre for Asia Pacific Aviation. T E E N A B A R UA H
A
ccording to a new report titled ‘Decisive action on Air India’s future assumes urgency in light of foreign airline investment,’ despite Air India posting an operating profit of ` 20 crore for the first time in 2012-13 after six years of losses, deep structural issues remain. “In the five years from FY08 to FY12, Air India accumulated losses of close to US$5.25 billion. This figure is estimated to increase by a further US$950 million or more by the end of FY13,” the report said. At present, Air India operates on 189 routes. Of these, according to the report, only 12 meet total costs. A further 82 cover their cash costs but not their total costs, and 95 routes, or just over half, do not even meet their cash costs. International routes are bleeding particularly badly
Kapil Kaul CEO South Asia, CAPA India
and account for 80-90 per cent of losses. The government has committed to fund the carrier’s turnaround plan. However, rather than infusing capital on a one-time basis, it is drip-fed in an uncertain schedule. When each small tranche is received, it is largely absorbed by overdue vendor (fuel suppliers and airport operators) and salary payments, rather than being
utilised to implement turnaround initiatives. As a result, the re-capitalisation efforts are not providing the strategic stability required, the report said. The CAPA report also suggests that Air India’s fleet utilisation is poor with only around 100 operational aircraft out of a total registered fleet of 127 aircraft (including Air India Express). And the aircraft in service have daily utilisation rates below the industry average.
Business model needs to be reworked Air India requires a comprehensive review of its business model, suggests the report. It does not have the commercial strength to drive premium traffic volumes on its long-haul routes. In the regional international market, it is focussing on routes to/from Kerala but neglecting the significant opportunities elsewhere. And it has only a
India, adding, “Over time, the central government could reduce its stake to 26% with the balance 25% to be transferred to other public sector units.”
small regional fleet, comprising a mix of regional jets and turboprops - several of which are dedicated to operations in the Northeast of the country - with no clear market proposition. Against this backdrop of capacity stagnation, Air India’s competitors are set to expand aggressively.
Call for Action Bold and pragmatic action is required to provide the airline a fresh start and a fighting chance to compete. “Restructuring is painful. In the case of Japan Airlines, it
involved retrenching 16,000 employees. With an election looming in 2014, the current administration will be reluctant to take such steps. But if decisive action is postponed– as we expect–the Indian taxpayer will bear an even greater cost,” the research noted. Also, it must be led by a managing director who has the full-backing of the government to make the necessary cuts, as was the case at both Malaysia Airlines and Garuda Indonesia. According to CAPA, the government should allow an overseas carrier to invest as much as the permitted 49% in Air
With Indian aviation set to receive close to US$100 billion of investment over the next decade, and given the potential for a vibrant aviation sector to play a critical role in enabling economic development, Air India should be granted a levelplaying field.
Bitter Pill Bold and pragmatic action is required to provide the airline a fresh start and a fighting chance to compete According to CAPA, the government should allow an overseas carrier to invest as much as the permitted 49% in Air India
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:57 PM Page 23
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 24
24
AVIATION
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
India: 3 biggest aviation market by 2020 rd
India is witnessing highest growth in air passenger traffic and currently is the ninth largest aviation market handling 121 million domestic and 41 million international passengers. T T B U R E AU
C
elebrating India Aviation Day; Ajit Singh, Minister of Civil Aviation, Government of India and Tony Tyler, Director General and CEO, IATA, reflected upon the growing areas of synergy between key industry players to work for development of the India aviation sector.
The Oxford Economics report commissioned by IATA indicates that aviation accounts for 1.5 per cent of India’s GDP and supports 1.7 million jobs – with a further 7.1 million employed in other sectors including tourism through the catalytic effects of aviation.“Today, more than 85 international airlines operate to India and five Indian carriers connect over 40 countries. Studies suggest that by the year 2020, India is likely to become the third largest aviation market, handling 336 million domestic and 85 million international passengers with projected investment to the tune of US$ 120 billion,” says Singh. Despite rapid growth of civil aviation in India, “The
benefits of air transport have not reached the smaller cities and remote and difficult areas of the country. To make the growth in this sector equitable and inclusive, my top priority is to provide connectivity to these areas. Apart from the development of low-frill airports and modification of Route Dispersal Guidelines, the Government is in the process of formulating of a policy for promotion of regional and remote area connectivity in India incentivising the Indian carriers to operate on these routes including code sharing and seat credit mechanism,” adds Singh. The Ministry has taken number of initiatives to create an enabling environment for rapid growth of civil aviation sector in India. The single most important policy decision which may transform the civil aviation sector in India has been to allow 49 per cent FDI by foreign carriers in domestic airlines. To reduce tax burden, the Government has decided to allow direct import of ATF by Indian carriers.
travel, the Government has taken substantial steps to liberalise and grant traffic rights to Indian carriers to fly to several new destinations across the globe and traffic rights have already been allocated to Indian carriers for next two years.
Ajit Singh
Tony Tyler
Minister of Civil Aviation Government of India
Director General and CEO IATA
My top priority is to provide air connectivity to the smaller cities and towns of India Recently, they took an important decision to liberalise the acquisition of aircraft by the scheduled, nonscheduled airlines, flying institutes and for private use. Now, no permission for acqui-
I urge the incoming CAA to improve safety, security and efficiency in India sition of aircraft will be required from the Ministry of Civil Aviation and they will be free to acquire aircrafts as per their business plan and requirements. Along with this, to boost international air
The Government has also unleashed the potential of development around airports by simplifying the building regulations. Now, no prior permission will be required for construction activities around airports if the builder constructs the building within the permissible height limits that will be marked by AAI. “I am aware that airline industry in India is undergoing a very challenging period because of high cost structure. I am sure the initiatives that the Civil Aviation Ministry has taken will have a positive impact on the growth and competitiveness of the airlines in India. There are still a number of policy issues and we are in process of taking decisions on these issues to further the process of reforms. Technology
upgradation in the field of air navigation is one of the most important areas for the overall efficiency and safety of entire Indian civil aviation industry. The creation of ANS Corporation from the existing AAI is one of the top-most priorities of the Government,” adds Singh. While the MoCA looks at technology as top priority, IATA calls for the government and industry to join forces on a series of projects to enhance safety, security and efficiency in India. Safety is the industry’s number one priority. As India moves to evolve the DGCA into a Civil Aviation Authority in compliance with global standards, Tyler urged India align with IATA’s longstanding call for improved infrastructure, cost reduction and a relief from excessive taxation. “The establishment of the CAA is a step in the right direction. As India turns a new page in its safety regulation, I urge the incoming CAA to improve safety, security and efficiency in India. A stronger aviation sector will be a catalyst for even wider economic benefits,” says Tyler.
New KUL-DEL flights from June Malindo Air is ready to launch international flights connecting Kuala Lumpur and New Delhi. This LCC is also eyeing Cochin, Trichy, Chennai, Mumbai, Ahmedabad and Kolkata as the proposed destinations in India. Excerpts from a CAPA report… T T B U R E AU
T
he recently-started Malaysian-Indonesian joint venture Malindo Air launched its services in March with seven daily flights spread across Malaysia’s two largest domestic routes – Kuala Lumpur to Kota Kinabalu and Kuching. With its hybrid busi-
ness model and low fares, Malindo will impact both AirAsia and Malaysia Airlines (MAS), which were previously the only two carriers on domestic trunk routes within Malaysia. Malindo is planning rapid domestic and international expansion, leveraging Lion’s order-book for 737s. India is poised to become Malindo’s first inter-
national destination with service to Delhi starting in June 2013. This sector is under-served due to cuts last year at AirAsia X. Several planned destinations in India and China will allow Malindo to increase aircraft utilisation and tap into the lucrative Malaysia-India and MalaysiaChina markets. It also seeks to tap the fast-growing
Indonesia-India and Indonesia-China markets, which Malindo will serve by offering connections to Lion. During CAPA’s Aviation Finance Asia Summit-2013, COO of Lion Air Group subsidiary Transportation Partners John Duffy confirmed that Malindo is planning to launch services from
Kuala Lumpur to Delhi in June 2013. The Kuala Lumpur-Delhi flight will be operated during overnight hours, allowing Malindo to increase utilisation of its initial fleet of four 737900ERs.AirAsia X dropped service between Kuala Lumpur and Delhi in March 2012, leaving MAS as the only carrier on the route.
Kapil Kaul CEO South Asia, CAPA
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 25
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 26
26
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
AVIATION
‘India a big opportunity’ Everyone can fly now AirAsia Expedia expects to benefit from the joint venture, Suresh Nair, Regional Manager (India, Sri Lanka & as then they will have more air capacity coupled with Bangladesh), AirAsia India demystifies the brand for Expedia’s competitive hotel accommodation options… , emphasising on its goal to tap new markets. TT B UREAU
T
he new CEO of AirAsia Expedia was in India on her maiden visit to meet the team that represents the unique joint venture between a leading online travel player and LCC carrier. “I have met my team in India and deliberated on various possibilities of undertaking initiatives that will ensure faster growth,” said Kathleen Tan, CEO, AirAsia Expedia. “Today, everyone is keen to know about the positive effect of the JV between Air Asia and Tata on our entity. In general, the joint venture between Air Asia and Tata is a good news for India. It will lead to fresh capacity and make
New Horizon AirAsia had formed a JV with Tata Sons and Telestra Tradeplace to launch a new airline in India, which is likely to be based out of Chennai
Kathleen Tan CEO AirAsia Expedia
The joint venture between Air Asia and Tata is very good news for India. It will lead to fresh capacity and make travel more attractive
travel more attractive. We will also tend to benefit from the said joint venture as, then, we will have more air capacity that will be coupled with Expedia’s most competitive hotel accommodation options. One needs to remember that we represent the competitive fare advantage of LCC, backed by the best competitive range of accommodation options from Expedia,” she added. For the uninitiated, following the opening-up of the aviation sector to foreign direct investment (FDI) last September, AirAsia had formed a joint venture with Tata Sons and Arun Bhatia of Telestra Tradeplace to launch a new airline in India, which is likely to be based out of Chennai and will also focus on providing connectivity to small towns. “I read in one of the recent tweets of Tony (Tyler), who is now also keen to revive operations in Delhi and Mumbai. It will be a welcome move that will help us cater to a broader base and also get people into India,” said Tan.
T EENA B ARUAH
A
irAsia first showed that incredible skill of expansion in its home market, Malaysia, so much so that the tiny nation now has more airplanes than all the Indian carriers put together. Nair, now demystifies brand AirAsia for , emphasising on its goal to tap new passengers and new markets here.
What will be your business model in India? Our tagline is ‘Now everyone can fly’, and we mean it. We follow a totally different low cost model. Our operation cost is the lowest in the world, so we can offer the lowest fare. Our model, thinking, strategy, is to offer lowest possible fares to stimulate the market and create new markets abroad. And that is what we have done in all the markets we have ventured so far. In India, unfortunately, people think if they take catering out of an aircraft it becomes low cost. But there are a lot of factors that go into making an airline low cost. For instance, in this business, the idea is to keep an aircraft flying for as long as possible. Also, we fly only one type of aircraft, A320. We cut cost everywhere, except where it involves the safety and security of the aircraft. We have 180-seater, single class aircraft. Also, you only pay for the services you want. If you are taking an afternoon flight and don’t need lunch, you won’t have to buy your lunch. Similarly, if you are going from Chennai to Bengaluru for shopping with an empty bag and intend to fly back with your shopping, you can buy 15 kg on ChennaiBengaluru flight and 30 kg from Bengaluru to Chennai.
In these days of price war, how risky is it to enter the Indian skies? We try to educate our passengers on booking in advance, while most Indian carriers offer discounts for next day’s tickets. We open up our flights 6-8 months in advance. The nearer you book to the date of travel the higher will be the ticket price. The idea is to inculcate the advance booking practice. If you want cheaper fares, book
Union Aviation Minister Ajit Singh’s new mantra to boost connectivity seems to be small towns, small airports and small planes. And AirAsia seems to be the pioneer of this mantra… We are the pioneers in opening up new routes. We fly from Kuala Lumpur to Kota Kinabalu 13 times a day. When we started operating in India, our international flights didn’t go to Mumbai and Delhi. We started with Trichy in 2008 and then went to Kochi, Trivandrum and Kolkata in 2009. We came to Delhi last, in 2010. Even today we are doing a double daily flight connecting Trichy with Malaysia.
When do you plan to launch?
Suresh Nair Regional Manager (India, Sri Lanka & Bangladesh), AirAsia India
early. We are not in competition with anybody else. We go according to our cost appropriations. We will definitely not operate on a sector where we can’t make money. We have worked out our revenue structure in such a way that every flight makes money.
Why didn’t you enter the Delhi, Mumbai sectors? But these are not the only profitable sectors. The demand for air travel is there in India, 64 Kingfisher aircraft have gone out of the market. Domestic travel is going down because of higher fares and need for more capacity. How can a booming economy like India show decreasing numbers? China is showing 20 per cent increase in air traffic, while India is showing a 9 per cent drop in air travel.
Tony Fernandes, Group CEO of AirAsia, has announced plans to launch AirAsia India by the end of the year. We are looking at South Indian airports to start with. Following which we intend to expand according to what markets we can stimulate.
What are the dynamics of the Indian aviation market? There are no real low cost airlines operating in India after Air Deccan. Fares are too high for Indian middle class fliers. Also, you fly only if you need to fly on business, but not to attend your best friend’s wedding, because the fare is too high. We will be targeting the youth market, which is huge and bring back the fun of flying.
India’s largest LCC still relies on agents and OTAs. Will it rely on trade partners in India? AirAsia India will be open to all. You can book online, or your travel agent can do it for you. We feel that the consumer getting a fair price and the travel agent getting his service charge is not impossible to achieve.
New travel solutions for the PSAs Arzoo.com introduced innumerable travel solutions for their preferred sales agent (PSA), giving them a chance to pick up the hottest prizes for the travel business this summer till July 31, 2013. Arzoo.com is offering exciting awards from mobiles to a Swift Dzire on its B2B network. On this occasion, Amal Purandare, Head India Operations, Arzoo.com, said, “Since beginning, B2B modules have received a tremendous
response both from India and abroad. Our comprehensive range of travel choices, competent pricing and call center support empowers the agents to buy the most suitable products for their customers. With the introduction of these awards, it endorses the excellent product we offer and our commitment towards our partners.” Arzoo.com has various modules in B2B, depending upon the need of travel
agents. All these modules are comprehensively designed and are equipped with advance features to help travel agents to run easy operations, save costs and make more profits. The modules are armed with multiple payment option, such as credit card, net banking and cash cards, which makes it easy for partners to deposit money instantly and ensure smooth functioning.
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 27
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 28
28
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
FAMILY ALBUM
GITB creates euphoria in inbound circles
The 6th edition of The Great Indian Travel Bazaar ended with euphoria among the travel trade on April 16, 2013. The buyers and sellers expressed great satisfaction on account of more than 9,000 meetings held in the course of two days, which has become one of the major attractions as part of this niche inbound platform in India.
Contd. on page 48
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 29
AGENTS
MAY 1 ST FORTNIGHT ISSUE 2013
TRAVTALK
29
Rocky Mountaineer scales new heights Rocky Mountaineer kicked off its 24th season on April 23 this year with a number of new options. This year marks the debut of Coastal Passage, a new route that departs from and arrives into the US. T T B U R E AU
T
he company has enhanced its First Passage to the West route by adding Lake Louise as a new destination and now offers SilverLeaf Service on two different rail routes through Western Canada.
Ashish Saran Group General Manager– India Canadian Destinations Marketing
Our new offerings add a win-win proposition for the mature Indian travellers and our travel trade partners “We continue to focus on providing innovative and exciting travel options for our guests,” says Hubert Wat, Vice President, Global Marketing of Rocky Mountaineer. “With all of our new initiatives, travellers are able to further customise their rail journeys to make the most of their visits to Western Canada.” For the first time in Rocky Mountaineer’s history, the train travels across the US border, seamlessly connecting Seattle, WA to the majestic Canadian Rockies with its new Coastal Passage route. The train travels along the glistening Pacific Northwest shoreline and stunning landscape of British Columbia and the Canadian Rockies. Here Ashish Saran, Group General Manager– India, Canadian Destinations Marketing, said,” Our new offerings offer a win-win proposition for the mature Indian travellers and our travel trade partners.” The new route launches with four departures in August, 2013 and 24 departures scheduled for the 2014 season. Over 40 per cent of
all Rocky Mountaineer guests book a rail journey in conjunction with an Alaskan Cruise. With flexible cruise dates out of the Port of Seattle, guests have the opportunity to see the best of both worlds through rail and cruise vacation packages.
The introduction of Lake Louise as a new destination marks the return of passenger rail service to the ‘Jewel of the Canadian Rockies’, in over two decades. Guests who book First Passage to the West packages are privy to options of arriving into or departing
from the platform, tucked against the backdrop of sparkling emerald waters. As a response to the successful introduction of SilverLeaf Service in 2012, Rocky Mountaineer expands the new level of service onto its Journey through the
Clouds route. The singlelevel, domed coaches provide guests with affordable luxury, complete with delectable hot meals served at their seats by dedicated onboard hosts and large picture-windows to take in all that Western Canada has to offer.
Service Upgrade As a response to the successful introduction of SilverLeaf Service in 2012, Rocky Mountaineer expands the new level of service onto its Journey through the Clouds route
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/7/2013 12:59 PM Page 30
30
AVIATION
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
Work progresses@Kolkata terminal The much-awaited Kolkata Terminal recently came under media glare due to certain anomalies. However, the Airport Authority of India is confident that the terminal will start its operations soon. A N I TA J A I N
T
outed as a first-ever mega airport modernisation
or belts, signages and even bad toilets to further ruin the passenger experience. Thus, it’s correct to some extent to say that the terminal still resembles work in progress.
project by Airports Authority of India (AAI), the recently opened terminal building at Kolkata Airport is under major
Top 10 international airlines operating from Kolkata According to a report by Innovata, analysis of capacity data for Kolkata in April 2013 (weekly one-way seat capacity and frequency share) shows that international frequencies are up by 44.7 per cent in terms of weekly frequencies, compared to the same period of 2012. Jet Airways is, by far, the largest carrier operating in the international market from Kolkata, and has 17.1 per cent of weekly departures and 15.8 per cent of seat capacity. Emirates Airline provides marginally less seats (14.9 per cent) and around half of Jet Airways’ frequencies (9.8 per cent) on its lone service to Dubai, but nevertheless makes it to the second biggest airline out of Kolkata. Thai Airways comes next by operating 5.7 per cent of the total international frequency and 10.4 per cent seat capacity out of Kolkata to global markets. Air India expanded considerably in Kolkata over the last year (weekly international frequencies up by 160 per cent in April 2013 V/s April 2012), as it became the fourth carrier to operate to Dhaka (daily services also provided by Biman Bangladesh, Jet Airways and United Airways Bangladesh) and currently operates 10.6 per cent frequency and 7.9 per cent capacity share. Biman Bangladesh, IndiGo, AirAsia, Thai AirAsia, Singapore Airlines and Qatar Airways are the others in top 10 airlines operating to/from Kolkata. (Source: Innovata)
After confirming this news, VP Aggarwal, Chairman, AAI said, "The airport would be fully functional in three months." In fact, AAI is now considering giving out the Kolkata Airport on management contract to private players. Ajit Singh,
Ajit Singh Civil Aviation Minister Government of India
infrastructure quality turmoil. Just after a few days of its official inauguration, the terminal witnessed a small part of building falling down and two incidents of glass panels cracking and breaking apart. In fact, the retail, F&B and advertising contracts are still in the process of getting finalised leaving passengers in great turmoil. Moreover, there are problems in convey-
Annual passenger traffic Year
2006-07 2007-08 2008-09 2009-2010 2010-2011 2011-12
Annual Annual domestic interpassengers national (million) passengers (million) 5.20 6.45 5.99 6.86 8.20 8.74
1.27 1.01 1.00 1.19 1.43 1.57 (Source – AAI)
Top domestic routes Obviously, Delhi and Mumbai are the two largest domestic destinations from Kolkata and the only ones to be served with more than 100 weekly frequencies. However, while capacity to Mumbai grew by 6.7 per cent in the year ending April 2013, the market to Delhi saw reductions of 24 per cent in terms of weekly frequencies. Of the six carriers operating flights from Kolkata to Delhi, virtually all have reduced capacity since last year. Currently, the top 10 domestic routes from Kolkata on weekly one way seat capacity are Delhi (18,704 seats), Mumbai (16,944 seats), Guwahati (13,199 seats), Bengaluru (10, 467 seats), Chennai (9,632 seats), Agartala (7,652 seats), Hyderabad (5,957 seats), Port Blair (4,739 seats), Bhubaneshwar (4,606 seats) and Bagdogra (4,397 seats). (Source: Innovata) Civil Aviation Minister, Government of India said, “The AAI could give management control of Kolkata and Chennai airports through a competitive bidding process. It could set up joint ventures with major foreign airport operators to carry out operations and management of these airports.” However, the selection of an operator and handing over the airport would take some time. Meanwhile,
AAI assured that all problems at the new terminal will be taken care of and will be cleared in next three months. The new terminal building is expected to reduce the over capacity burden from the existing terminal building. Kolkata also faced considerable capacity constraints like Delhi, Mumbai, Chennai and Bengaluru and thus the new terminal building was developed by AAI.
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 31
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 32
32
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
GUEST COLUMN
Market Incredible India aggressively The returns from promotion of tourism in India are as high as 36 times, said a WTTC report released in Nov 2012. The report said if India spent US$1 for promotion of tourism in the country, then it would have earned US$36. Still, India’s track record in promoting tourism in the recent past, both for domestic and foreign tourists, has been poor.
I
t was in the year 2002 that India for the first time was marketed as a tourist destination throughout the world. No concerted effort had been made to attract tourists to India. The aggressiveness and professionalism to promote tourism was missing. It was in the same year that the ‘Incredible India’ campaign was launched jointly by the advertising agency Ogilvy & Mather and the Ministry of Tourism. The campaign was featured in print and electronic media of all developed countries. The results were incredible! In the very first year of launch of the campaign, foreign tourist inflow increased by 16 per cent. The following year, the campaign focussed on spiritual tourism and arrival of foreign tourists increased by around 29 per cent. In January 2004, a survey was conducted in 134 countries to select the world’s favourite destination
for individual travellers. India ranked fifth among the top five favourite international destinations in the global survey following Thailand, Italy, Australia and New Zealand. Much of the credit for India’s emergence as a favourite tourist destination went to the campaign. According to K Chiranjeevi, Union Minister of Tourism, Govt. of India, from 2002 (the year when the Incredible India campaign was launched) to 2012, the Foreign Tourist Arrivals (FTAs) to the country increased from 2.38 million to 6.65 million. During the same period, Foreign Exchange Earnings (FEE) increased from ` 150.64 billion to ` 944.87 billion. The domestic visits during the same period rose from 269.60 million to 850.90 million. The campaigns are a regular feature of the Ministry’s promotional activities and are carried out
Vijai Pande Hon. Secretary FHRAI
keeping in mind the Ministry’s goal of overall development of tourism to and within the country. The Ministry of Tourism, as part of its on-going activities, releases print, electronic, online and outdoor media campaigns in the international and domestic markets, under the Incredible India brandline. Besides, the Ministry, through its overseas offices,
organises roadshows like ‘Know India’ Seminars and workshops; participates in various fairs, exhibitions and events to promote various Indian tourist destinations and products. The campaigns include holistic promotion of various Indian tourism products and destinations of the country. But a recent survey of countries as tourist destinations by World Economic Forum has placed India at the 67th position. The monetary allocation for the Ministry of Tourism in the current financial year is ` 1,297.86 crore, which is ` 88 crore more than the previous year’s allocation. But promotion of tourism finds no mention in the budget. The focus in this year’s budget is on infrastructure development and upgradation of existing facilities. “While the allocation for tourism in the Union Budget 2013-14 has been hiked by
` 87.66 crore, its promotion has found no mention,” comments Kamlesh Barot, the Former President of Federation of Hotels and Restaurants Associations of India. “The Budget has no mention at all of tourism promotion. What can I say?” he questions. The Ministry of Tourism, in 2011-2012, spent ` 355 crore for promotion of tourism in the country. In the following financial year – 2012-13, the figure rose by just ` 2 crore and the amount spent was ` 357.20 crore. Other developing countries like Egypt, Sri Lanka, Thailand and Malaysia who are at par with India are increasing their budget manifold for tourism promotion. Adel El Masry, Director, Egypt Tourism Office, sometime back told a travel information website that his country had doubled the
allocation for promoting tourism to Egypt. Closer home, Sri Lanka is also investing heavily in attracting foreign tourists to the country. The Sri Lankan government recently organised a three-week long tourism roadshow in Russia and Ukraine in order to attract more tourists to the country. The roadshows were held in Moscow, St. Petersburg and Kiev. Since the end of the internal strife in May 2009, the country has seen a steady rise in tourist arrivals every year for the past four years. To the east of India, countries like Myanmar and Vietnam are emerging as major tourist destinations for North American and European travellers. It is high time that India once again markets itself aggressively as a tourist destination of the world. It is a known fact that tourism is a Contd. on page 42
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 33
ASSOCIATIONS
MAY 1 ST FORTNIGHT ISSUE 2013
TRAVTALK
33
Akshay Kumar takes reins of ATOAI team After succeeding Tejbir Singh Anand as the new ATOAI President, Akshay Kumar and his team pledges to ensure powerful and resourceful networking opportunities to the membership. T T B U R E AU
A
kshay Kumar, CEO of Mercury Himalayan Explorations, was elected unopposed as the President of Adventure Tour Operators Association of India (ATOAI). The new office-bearers and executive committee of the ATOAI were elected last
Akshay Kumar President ATOAI
month during the annual general body meeting at the Metropolitan Hotel, New Delhi. Kumar takes over the reins from Tejbir Singh Anand, who headed the association for four years. The list of other office bearers and executive body members elected unopposed are as follows:
Executive Body Members Senior Vice President: Sanjay Basu (MD; Far Horizon Tours), Vice President: Mohan Tickoo (MD; Kash Venture Travels), Hony. Secretary: Vishwas Makhija (MD; India Insight Tours), Hony. Treasurer: David Singh (Director and Product Manager; Eco Adventures). The executive committee members are Vinayak Koul (Director; Snowlion Expeditions), Rajesh Ojha, (Partner; Banjara Camps and Retreats), Supratim (Raj) Basu (Founder Director; Help Tourism), Anirudh Chaoji (Director; Pugmarks Holidays), and Swadesh Kumar {Managing
Dreamliner to fly again Air India's Dreamliner aircraft, grounded since January after incidents of battery fire, may take to the sky in the next two weeks. US Federal officials have accepted Boeing's revamped battery system for its beleaguered 787 Dreamliners and intend to lift a three-monthold order grounding the planes, Boeing said in a statement in Washington.
Director; Shikhar Travels (I)}. The Founder President of ATOAI will continue as the Advisor to the association. To the list, Kumar has also nominated Mandip Singh Soin; Founder & Managing Director; Ibex Expeditions and Ajeet Bajaj; Managing Director;
Snow Leopard Adventures as executive committee members. In his inaugural address Akshay applauded the efforts by the last President and his team and expressed confidence that the new, young and dynamic team in place now would
take ATOAI to a new level. The new team has identified some key result areas to immediately start working on. As the top priority, the team has pledged to add value for the members and ensure powerful and resourceful networking opportunities.
Points to focus upon: • Promotion of safe and honorable adventure tourism • Synergy with state ministries • Human resource training and capacity-building at the grassroot level • Constantly evolving and updating recommended
minimum safety standards • Aggressively follow up pending issues • Marketing & promotion of Indian adventure travel trade • Endeavour to increase the membership of ATOAI
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 34
34
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
ANALYSIS
Trends for domestic vacations in India HolidayIQ.com recently launched“HolidayIQ.com Insights: Summer Holidays Prediction Report”, based on the on-site actions of 45 lakh unique Indian visitors who plan their holidays on HolidayIQ.com every month. This report is an analysis of summer holiday enquiries on HolidayIQ.com between April-May 2013 and April-May 2012.
Bigger Budgets, Longer Trips
Season of family and groups
Northern and Southern destinations
The average budget per person per night rose by 62%
Family and group trips constitute two-thirds of the total
70% of summer holidays are planned for Northern and
over a year (` 2690 in summer 2013 and ` 1654 in summer 2012) and the trip length too grew by 6%. Such a trend is observed only in Summer Holidays. Rest of the year, Indian travellers tend to spend more but on shorter holidays. Total number of travellers is up by 34.6% from last summer.
number of trips planned for summer. This trend too is unique in summer holidays. During rest of the year, couple travellers lead the chart. Couple travelers, however, have higher budget per person per night (Rs. 3202) than family (` 2687) and group travellers (` 2216).
Tier 1 travellers take longer trips
Higher holiday budgets
Travellers from Top Tier 1 cities like Surat (4.36 nights),
Travellers from Amritsar lead the chart with an
Rajkot (4.34 nights), Indore (4.18 nights) take the longest trips. Also the longest trips are planned for northern hill stations in J&K, HP and Uttaranchal. Travellers from southern cities take the shortest trips. Trip length of travellers from Trivandrum and Coimbatore are 2.58 and 2.74 nights. Shortest trips are planned for southern pilgrimage destinations like Guruvayur (1.45 nights) and Dharamsthala (1.55 nights). When we compared states of travelers, we found out that Gujaratis (4.19 nights) take the longest trips and Keralites (2.83 nights) the shortest.
average budget per person per night of ` 4710, followed by Dehradun (` 4124) and Mangalore (` 4037).
Southern destinations. J&K leads the chart with 18.8% of summer holiday
travellers. Also the top destinations are mainly long-haul hill
stations such as J&K, Himachal, Uttaranchal, Ooty and Darjeeling.
Newer accommodation types Almost 50% of the summer travellers have opted for
newer accommodation types like Resorts, Homestays, Bread & Breakfast lodges, guest houses and more. This percentage, however, is lower (42%) in travellers from Tier 1 and Tier 2 cities.
Travellers from eastern and southern cities have
the lowest budgets. Travellers from Durgapur have average budget per person per night of ` 1287, followed by travellers from Rourkela (` 1407) and Salem (Rs. 1528). Among states, Punjabis have the highest budget
(` 3807) while Bengalis have the lowest (` 1737).
Delhi travellers for short hops 51% of Delhi travellers have planned their summer
vacation in Northern Destinations. J&K, HP and Uttaranchal constitute 45% of the holidays planned.
Tux buttons up for growth Tux Hospitality plans to focus on creating greater awareness, positioning as well as brand development. T T B U R E AU
T
ux Hospitality, the hotel management and operations arm of the Shipra Group, plans to roll out eight properties across India in 2013. The group currently operates two properties – the Mosaic, Noida and the recently-opened Hive, Alwar. Tux Hospitality operates three brands – its flagship upscalebrand Mosaic, mid-scale brand Hive and upper midscale brand Seed. Rohit Naithani, Vice President, Marketing and Development, Tux Hospitality
said, “We hope to have 10 operational properties in the country by 2013-end. Apart from the already-operational Mosaic Noida, Tux has taken over the Mosaic Mussoorie at the project stage and is confident of opening the property to catch the next season. Tux is not in the budget bracket. We are currently focussing on Tier-II and Tier-III cities. Then, we shall foray into the large cities with suitable products.” Elaborating on Tux Hospitality’s plans to engage with travel agents, Naithani said, “We are committed to developing close partnerships with the travel trade segment
with not just conventional dealings, but also developing key relationships for representation, GSAs, etc, across the country.” “We will actively participate in all trade shows, events and also look at co-promotional activities with interested agents/companies. We will also look to develop some unique partnerships with the travel trade to enhance the brand, and create greater awareness about Tux’s products. ” Naithani added, “We have also tied up with The Preferred Hotel Group to enhance branding.”
A cocktail dinner at Pune
Travel Designer Group in association with Atlantis The Palm Hotel and Resort, Dubai organised a cocktail dinner for premium travel partners of Pune at Hotel Courtyard by Marriott on March 20, 2013. The event feted its top 160+ travel agents who gained information, had fun and excitement. Jaal Shah, MD & Founder of Travel Designer Group appreciated the travel partners for their constant and overwhelming response, with an ending note to forging long business relationships.
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 35
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 36
36
HOTELS
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
Bhullar tees with TAT
Leela grows slowly but steadily In a freewheeling conversation with , Tamir Kobrin, General Manager, The Leela Palace Chanakyapuri talks about the hotel’s two years of operations, facing stiff competition and yet carving out an identity in the Delhi. M E G H A PAU L
W
Tourism Authority of Thailand (TAT), New Delhi has appointed India’s ace golfer Gaganjeet Bhullar to be their Brand Ambassador to promote golf tourism across Thailand in order to project Thailand as one of the most sought after golfing destinations. TAT confirmed that the engagement with one of the best Indian golfers was fuelled by his consistent performances with the iron.
hen The Leela Palace New Delhi opened two years back, it had been a grand affair. The high expectations could not weigh down Tamir Kobrin, General Manager, The Leela Palace Chanakyapuri. In the last two years, the occupancy and RevPAR at the hotel has been rising slowly but steadily. “In fact, both our RevPAR and ARR have doubled. The city occupancy was at mid 70s last year, which
` 53-crore tourism plan for Patiala The project is aimed at improving the state of gardens in Patiala. In September, a heritage walk is planned. The programme includes developing Rajindra Lake as tourism destination by spending ` 5 crore to build an environment park and modern walking zone around it.
Tamir Kobrin General Manager The Leela Palace Chanakyapuri
The Leela Palaces to announce foray into Dubai The Leela Palaces, Hotels and Resorts will soon announce its overseas foray with a deal in Dubai via a management contract. “It will be an upscale and luxurious property with over 400 rooms under a management contract. An announcement on this international project is likely to be made in a month,” Rajiv Kaul, President, The Leela Palaces,
Hotels and Resorts said. At present, The Leela manages eight properties in Mumbai, New Delhi, Gurgaon, Bengaluru, Chennai, Goa, Udaipur (Rajasthan) and Kovalam (Kerala). “Our next phase will be only through management contract. We are planning to double our portfolio of eight hotels in the next five years,” Kaul informed.
came down to higher 60s. Considering just two years in operations, we are at low 50s and expect to get better by the end of this year,” he reveals. From the days of infancy, this hotel was sustained by the F&B revenues. However, room revenues have surpassed the F&B revenues now. “For every ` 1 crore of room revenue, we earn ` 90 lakh from F&B. With expectation of occupancy rising, we are going to get better,”
he adds. The occupancy of the hotel touched 65 per cent in January 2013. It is expected to close the FY2012-13 at low 50s with the highest rates in the city.
With the growing aspirations of the customers, they are ready to pay a bit more for even better quality. Thus, the scope for high-end luxury in this city will only increase.”
Aiming to grab premium costs in the city and offering premium room nights, too, Kobrin points out, “The hotel is commanding the highest rates in the city. We are the lone player in the rates we are operating in.
The Leela Palace Chanakyapuri gets 43 per cent repeat customers, claims the GM. Also, according to the law of average, if one is topping ratings, then the chances of getting business increases by threefold, he concluded.
Rajiv Kaul President, The Leela Palaces, Hotels and Resorts
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 37
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 38
38
NTO
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
HBM 2013: Going beyond the Olympics VisitBritain’s biggest-ever marketing campaign has significantly increased interest in visiting the UK and exploring different parts of the island. M E G H A PAU L
T
FROM
he sports spectacle of Olympics might have ended, but the party in Britain is still not over. Beyond the Queen’s Diamond Jubilee, the 100th anniversary of the Titanic and the 50th anniversary of The Beatles, the endeavours of the country to lure more travellers have just got bigger. VisitBritain recently delivered the second edition of what is now the largest-ever business-to-business tourism event promoting Britain internationally. The Hosted Buyers Marketplace (HBM), which got underway at the iconic Wembley Stadium, was an exclusive opportunity for British tourism suppliers and destinations to meet with over 200 specially-selected international buyers from 22 countries. The range of markets hosted by the tourist board this year included record numbers from India, China and Germany.
LONDON Speaking exclusively to , Sandie Dawe, CEO, VisitBritain said, “This is a fantastic opportunity for British tourism businesses to sell themselves to international buyers from all our key markets. Britain has enjoyed a fantastic image boost over the past year – millions visited us and millions more saw us on TV. Our job now is to convert that interest into visits and to get more of Britain into tour operators’ progammes sold by travel agents around the world.” The HBM brings major inbound tour operators to see everything the UK has to offer. That this second year is showing a 20 per cent growth of attendees shows how a partnership between the public and private sector can work, she added. Regarding the importance of the India market, Dawe revealed, “India is an important market and amongst our top five markets.
Sandie Dawe
Keith Beecham
CEO VisitBritain
Director - Overseas Network VisitBritain
Britain recorded 145,000 Indian arrivals from April-June 2012, making it the best performing quarter in 10 years for us
We would like to take the qualified agents to the next level by introducing the Thematic Module
Britain recorded 145,000 Indian arrivals from AprilJune 2012, making it the best performing quarter in 10 years for us. It was not only the Olympic Games that drew the Indian visitors to the UK shores. Ahead of the Olympics in July was the Queen’s Diamond Jubilee weekend in June, where celebrations included the River Thames Diamond Jubilee Pageant and hundreds of art and culture events that took place all over the UK.” The national agency of tourism in Britain is looking at presenting Britain as a price competitive market. “Our ambition is to achieve a 30 per cent year-on-year growth from the Indian market.” According to Dawe, VisitBritain is looking at touching half million Indian arrivals by 2020. In the coming years, VisitBritain plans to focus on self drive holidays, MICE, honeymoon segment and sports tourism. “We are looking at attracting more traffic from VFR, families, HNIs and luxury segments. We will promote Britain as a business
hub as we foster a conducive MICE environment in London, Manchester, Birmingham, Scotland and Edinburgh and self-drive in Northern part of Britain, Lake District and the Highlands of Scotland,” she articulated. Speaking at HBM, Keith Beecham, Director - Overseas Network, VisitBritain stated, “We are soon launching the Thematic Module of the programme in India by May. Currently, we have 500 BritAgents in India. We would like to take the qualified agents to the next level by introducing the Thematic Module. The programme will focus on presenting a better understanding of Scotland, Wales, England and Northern Ireland.”
Show at its best VisitBritain recently delivered the second edition of what is now the largest-ever business-tobusiness tourism event promoting Britain internationally
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 39
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 40
40
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
STATES
Odisha tourism keeps its rich
legacy alive
Odisha boasts of a great heritage and tradition, manifested in its magnificent monuments, elegant art and architecture, enchanting dance, music and exquisite handicrafts and handloom products. The state’s colourful fairs and festivals, organised round the year, have kept this tradition alive.
E
very inch of Odisha reveals the cultural heritage of the state through its music, dance, art and crafts, customs and traditions. There are a number of traditional fairs and festivals showcasing Odisha’s age-old tradition, customs, rites and rituals, dance, music and delicacies which are vibrant in colour and flavour. The world famous Rath Yatra at Puri, Ashokastami at Bhubaneswar, Khandagiri Mela at Bhubaneswar, Maghasaptami at Konark, Chaitraparb Chhau dance festival at Baripada, Thakurani Yatra at Berhampur, Danda Yatra at Puri, Ganjam and Dhenkanal district and Dhanu Yatra at Baragarh portray the cultural and religious grandeur of Odisha. The Department of
Tourism & Culture hosts festivals like Konark Festival, Mukteswar Dance Festival, Rajarani Music Festival Folk Festival at Sambalpur, Beach Festival at Puri, Tribal Festival (Paraba) at Koraput international Odissi Dance Festival of Bhubaneswar, Pala & Daskathia Festival, Sankirtan Festival (Ballad Singing Festival), Contemporary Dance Festival, Choreography Dance Festival, Dhauli Kalinga Mahostav and Toshali Crafts Mela etc. Its annual calendar of events showcase the rich musical dance, art and crafts tradition of Odisha along with the artists and cultural troupes from outside the state. The cultural heritage of Odisha undoubtedly is one of the major attractions for tourists world over.
Konark Temple
Mukteswar
Udayagiri
Ratnagiri
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 41
NTO
MAY 1 ST FORTNIGHT ISSUE 2013
TRAVTALK
41
United colours of tourism boards for FITs The tourism boards have introduced a package for the Indian market to lure Frequent Individual Travellers. figures out how the tourism board plan to promote the destinations together to their clients. L YA N D RA D’ S O U Z A
I
n an effort to strengthen the position of the destinations and showcase the effortless combinability of the two products, Chamonix Mont-Blanc Tourism Board &
Sheetal Munshaw India Representative Chamonix Mont Blanc Tourism Board
The proximity between Chamonix Mont Blanc and Geneva Tourism Board make it easier for the traveller to combine both destinations Geneva Tourism Boards have joined forces to showcase and promote the two destinations together in the Indian market. The initiative also plans to attract FIT traffic.
Beatrice Dolder India Representative, Geneva Tourism Board
We will be promoting Aiguille du Midi in Chamonix, guided visits of the old town in Geneva, and skiing on the slopes of the Mont-Blanc Sheetal Munshaw, India Representative, Chamonix Mont Blanc Tourism Board said, “This activity is the first of its kind by two tourism offices. The
geographical proximity between Chamonix Mont Blanc and Geneva Tourism Board make it much easier for the Indian traveller to combine both destinations. Both are very complementary to each other, as Chamonix Mont Blanc is an alpine destination and
Geneva is a cosmopolitan city destination. Both tourism boards are also conducting joint training programmes for the frontline staff of travel agencies in Mumbai and Delhi, their primary target cities in the country. Munshaw added, “We also conducted a fam trip recently
for 15 travel agents and tour operators from India. The fam trip will be followed up with continual efforts such as destination trainings, press trips, fam trips and other marketing tools that will be deployed to enhance visibility of the destinations as a complementary product.”
Beatrice Dolder, India Representative, Geneva Tourism Board added, “The products of both destinations that we will promote in India include Aiguille du Midi in Chamonix, guided visits of the old town in Geneva, skiing on the amateur slopes at the foothills of the Mont-
Blanc, and browsing through Piaget Time Art Gallery. Plus, diversified gastronomic experiences from organic vegetarian fare to gourmet meals, view of the glacier Mer de Glace in Chamonix to Michelin star Indian meals and wine tasting in Geneva will also be there.”
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 42
42
ANALYSIS
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
Security issues wane the shine off India After the rape cases that tarnished the country’s image as a travel destination, industry leaders brainstorm on the way ahead. Hospitality and travel experts put forward their view on how this industry should be more proactive in the case of protection of the fairer sex. gives details. M E G H A P AU L
A
recent Associated Chambers of Commerce and Industry of India (ASSOCHAM) survey has revealed there has been a 25 per cent drop in tourist inflow in the first three months of 2013 compared to the same period last year. Worse, there has been a 35 per cent drop in female tourists during the same period after many countries advised women not to travel to India. Of the 1,200 tour operators surveyed, 72 per cent said they had received can-
if they are travelling in a group’. ASSOCHAM said tour operators had told them that ‘some tourists have e-mailed, asking whether it would be safe to travel, and some have changed their mind about travelling to India this year’. The Assocham figures, however, contradict monthly estimates compiled by the Tourism Ministry, which found a spurt in foreign tourists arriving early this year. According to Ministry figures, February saw arrivals increase by 1.6 per cent compared with last year.
to successful business. “For women tourists, a sense of security is given the highest importance. But sadly, we rarely offer respect and priority to tourists. This is common courtesy and should be essential to promote tourism. We need to understand that any bad treatment or a bad experience will harm our business prospects and create a bad image for us,” he says.
Opening up new opportunities Urging the industry to sensitise the frontline staff on how to deal with women travellers, Benita Sharma,
Iqbal Mulla
Benita Sharma
Jyoti Mayal
President TAAI
General Manager Sheraton Hotel, New Delhi
Chairperson TAAI-Northern Region
For women tourists, a sense of security is given highest importance. But sadly, it rarely happens. cellations mainly from Australia, Britain, Canada and the US. A handful of countries have put out travel advisories urging caution, the Swiss government in February warning of ‘increasing numbers of rapes and other sexual offences’ and the British Foreign Office asking women travellers to ‘exercise caution when travelling in India even
In this age, when women are travelling alone frequently, security issue is always a concern Moving beyond reports and more reports, the travel stakeholders in the country feel this has tarnished the image of the country as a travel destination. With India being considered as an unsafe region, it is but obvious that travellers would give it a miss. According to Iqbal Mulla, President, TAAI; respect towards tourists, foreign or domestic, is the key
It is our responsibiliy to chalk out itineraries, keeping safety as the first priority General Manager, Sheraton Hotel, New Delhi feels such incidents also throw new business opportunities for the industry. “The women traveller segment has quadrupled in the last 10 years. In this age, when women are travelling alone frequently, security issue is always a concern. ITC is in the business of individualism and thus, the Eva floors have been built in all ITC properties. These floors are women-exclusive floors
Dilip Parulekar Tourism Minister Goa
The department is also contemplating formation of an all-women police team for night patrolling
Anand, Immediate Past President, ATOAI comments, “The consumer should understand that he or she cannot do everything on his own. But, the sense of exploration need not be absent. Yet, an alliance with a tour operator is mandatory for his or her own safety. A tour operator will know people in the distant valleys and so on. As human behaviour, such mishaps usually can be avoided when miscreants know that the traveller has come through recognised channels and is not alone.”
Examining accredition Calling out to the tourism and travel trade bodies, PP Khanna, Vice President, ADTOI feels it is absolutely essential to go through the recognised tour operators. “As accredition becomes more impor-
minutely, as dubious and unscrupulous elements are always present. In a recent case, where a mobile shop owner had applied for membership for ADTOI, the association refused him membership,” he informs.
Taking the lead: Goa Carving out its niche in the tourism industry in India, Goa has been known to attract a large number of tourists, both inbound and domestic. Thus, Goa Tourism has announced strict measures to ensure tourist safety, especially for women. One of the initiatives taken by the department specifically for women is setting up of a Tourist Police Force, comprising 200-250 IRB (Indian Reserve Battalion) Police. Around 50 of them will be lady constables. Tourism Minister of
and can be allotted to women who prefer these. Around 85 per cent of single women travellers in our hotel prefer to stay in these rooms. The demand for the Eva floor rooms is only expected to increase in the coming times.”
Giving B2B a miss? Think again A pertinent point put across by Jyoti Mayal, Chairperson, TAAI-Northern Region is that tourism needs to create its own solutions. “The need for recognised travel agents and tour operators has increased now. It has often been seen that these mishaps happen more with backpackers. As responsible tour operators and travel agents, it is our responsibiliy to chalk out itineraries, keeping safety as the first priority. Also, in present times, women also need to be cautious and opt only for tours through B2B channels,” she points out. Reiterating the same concerns, Tejbir Singh
Tejbir Singh Anand
PP Khanna
Immediate past president ATOAI
Vice President ADTOI
An alliance with a tour operator is mandatory for his or her own safety tant, we, as members of the travel associations, should become more careful and responsible while giving accreditations to the B2B network. Before roping in new members in ADTOI, we inspect the credentials
Before roping in new members in ADTOI, we inspect their credentials minutely Goa, Dilip Parulekar has said the department is also contemplating formation of an all-women police team for night patrolling to instil confidence among women tourists and to intervene in emergency situations.
Invest big to make bigger profits Contd. from page 32
major sector that generates a big amount of foreign exchange earnings (FEE). According to a rough estimate, India’s FEE through tourism is nearly one-third of what India earns through exports. It is
well understood that a lot has to be done to give a thrust to tourism in the country. Chiranjeevi, Ministry of Tourism, on his recent visit to Berlin pointed out that foreign tourist arrivals to India constitute only 0.64 per cent of the
world tourist arrivals and foreign exchange earnings account for 1.61 per cent of the world tourism receipts. He said that it was a matter of concern and efforts would be made to increase India’s share to 1 per cent of the world
tourist arrivals by 2016. Later, while presenting the National Tourism Awards for 2011-12, he said that the tourism industry has immense potential. He said, “For this, we need to constantly monitor trends and reinvent our products for the
marketplace.” There is no doubt that the Ministry of Tourism has taken some steps worth appreciation to boost tourism in India. The Ministry has asked the Central Home Minister to bring more countries under the ambit of
the Visa-on-Arrival scheme. Many tourism experts were feeling that the Incredible India campaign has lived its life and lost its sheen. (From Hon. Secretary's Desk of FHRAI)
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 43
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 44
NTO
Oz to soar on direct runway The tourism board estimates a jump in visitor arrivals from India, with the introduction of direct flights by Air India to Australia. events like the Australian Tourism Exchange (ATE) to be held in Sydney in April 2013; the India Travel Mission (ITM) in Goa in August 2013 and Dreamtime in Dec 2013.”
L YA N D RA D’ S O U Z A
A
s part of its efforts to build demand for Australia in India, Tourism Australia will focus on developing its online training initiative - the Aussie Specialist Program - for travel agents and supplementing it with offline training sessions to help travel partners build their knowledge base on Australia. The tourism board currently has over 2,700 Indian travel agents registered on the Aussie Specialist Program (ASP) of which 797 of these are certified ASP agents. Nishant Kashikar, Country
New Move Australia has recorded an increase in visitor arrivals from 41,000 visitors in 2000, to 159,420 visitors in 2012. India is currently Australia’s 10th largest inbound tourism market. Manager-India, Tourism Australia said, “In addition, we will ramp up partnerships
Nishant Kashikar Country Manager-India Tourism Australia
We will ramp up partnerships with select trade and aviation partners on joint promotions with select trade and aviation partners on joint promotions with attractive tactical offers. Our trade activities will continue with upcoming trade
Mainly targetting the FIT segment in India, Kashikar is optimistic about the impact of Air India’s plans to introduce direct flights to Australia this year. He observed, “The introduction of direct flights on the India-Australia route will not only help in increasing connectivity, but also will improve arrivals. Strong growth of up to 10 per cent could occur, if Air India launches its proposed Australian services in the second half of 2013. Building aviation capacity is critical to achieving the India 2020 potential.” Tourism Australia currently has a cooperative marketing agreement with Singapore Airlines, Silkair and Malaysia Airlines. It is estimated that an extra 345,000 seats will be required by 2020 to meet the expected demand from India.
All eyes on metro cities The destination Laguna Phuket resort is planning to increase visibility through marketing campaigns and agent tie-ups. TT B U R E AU
I
n order to increase the number of arrivals from India, destination resort
Debbie Dionysius AVP Destination Marketing Laguna Phuket
Our roadshow in India last year helped us create a base with the Indian travel trade industry
Laguna Phuket plans to tap the metro cities in India. According to Debbie Dionysius, AVP Destination Marketing, Laguna Phuket, “India is a market with very high potential, given the fact that Phuket is the first choice amongst many travellers, when looking for a beach holiday. We have something for all- be it honeymooners, families, golf enthusiasts, spalovers or even the corporate market looking for their next company incentive. We will look to attract high-end Indian travellers.” Laguna Phuket has appointed Mumbai-based marketing specialist Blue Square Consultants to undertake public relations and marketing activities in the Indian market. Elaborating on their plans create greater awareness about Laguna Phuket in India, Dionysius said, “Our road-show in India last year helped us create a base with the Indian travel trade industry and in recent years we have become well known as
a destination for Indian weddings through sales representation in the sub-continent. FAMs for travel agents, a digital marketing campaign are part of the strategy to increase product awareness and knowledge. We are however, focussing majorly on getting exposure through a strong PR strategy.” Aside from Laguna Phuket itself, the destination resort will also market its properties, namely Banyan Tree Phuket, Angsana Laguna Phuket, Dusit Thani Laguna Phuket, Outrigger Laguna Phuket Beach Resort, Outrigger Laguna Phuket Resort and Villas, Best Western Allamanda Laguna Phuket and Laguna Holiday Club Resort.
The Red Carpet Laguna Phuket is targeting an increase of 5 per cent in Indian room nights in 2013 Laguna Phuket recorded 5,817 Indian room nights in 2012, an increase of 15 per cent from 5,070 in 2011
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 45
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 46
46
NTO
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
Autumn in New Zealand Agents get glimpse of Bulgaria New Zealand, in its Budget 2013, is investing an additional Travel agents in Delhi recently got a glimpse of Bulgaria US$158 million in tourism with special focus on India. through educational seminars organised to train them. T T B U R E AU
J
ohn Key, Prime Minister and Tourism Minister, New Zealand recently released details of US$44.5 million to attract visitors from emerging growth markets and US$24.5 million to boost tourism from existing markets. The New Zealand Government is also investing an additional $158 million in tourism through Budget 2013 to attract more visitors to New Zealand, particularly high-spending visitors. “Attracting more tourists from growing markets such as India, Indonesia and Latin America is a key part of the government’s strategy for tourism. These countries have strong economic growth and increasing numbers of people who have the desire and ability to travel,” says Key. “Visitor numbers from India have been steadily growing, with almost 30,000 visitors registered in 2012. Indian tourists tend to visit
John Key Prime Minister New Zealand
Visitor numbers from India have been steadily growing, with almost 30,000 visitors in 2012 from April to June, making them an important source of visitors during our autumn season,” he said.
“Travellers from these countries are looking for destinations to visit, and we want New Zealand to be the first choice. Although tourist numbers are growing, we currently have a very small presence in these markets. Our additional investment of US $44.5 million will enable us to attract prospective tourists.” “At the same time, we cannot ignore our strong existing markets. Australia, the USA, United Kingdom, Germany and Japan are traditionally important, and tourism from China has grown exponentially over the past decade. Together, these six countries make up almost three quarters of our visitors,” Key said.
Keen Interest Visitor numbers from India have been steadily growing, with almost 30,000 visitors registered in 2012
TT B U R E AU
W
ith an endeavour to focus on training Indian tour operators, the Commercial and Economic department, Embassy of the Republic of Bulgaria, in association with Austrian Airlines, organised a series of educational seminars at the embassy in New Delhi. The seminar, organised for the first time in Delhi, was held in three batches on April 5, 12 and 19, in which a total of 100 tour operators registered their attendance. The presentation was conducted by Stefan Ionkov, Head of Commercial/Economic Office of Bulgaria, followed by a presentation by Austrian Airlines of the excellent connectivity to Bulgaria, including flights to Sofia and Varna. During the presentation, Ionkov informed, “Bulgaria offers diversity in culture and heritage, shopping, including local and international brands, international cuisine, Indian
Stefan Ionkov Head of Commercial/Economic Office of Bulgaria
food, vivid nightlife, discotheques, casinos, beach parties, etc., spa & wellness, golf, skiing and many more activities.” He also informed that Bulgaria will be hosting international celebrities in 2013. Tiger Woods and Rory Mcllroy will participate in the World Match Play Championship of Golf in the country next month. This tournament will be staged at the Black Sea resort of Thracian Cliffs, which is also considered as the ‘Pebble Beach of Europe’. During the
seminar, Ionkov also announced that the first 15 tour-operators who produce the first group to Bulgaria this summer will be a part of the familiarisation trip to the country in the first week of September. A similar seminar was held at the World Trade Centre in Mumbai towards the end of November last year.
QUICK READ The new terminal at Chennai airport started operations handling both arrivals and departures. The airport handles a total of 45 flights a day of which around 60 per cent of the flights (both arrival and departure) will be handled by the new terminal.
Kingdom of Dreams for MICE The magnificent Kingdom of Dreams (KOD)is the entertainment and leisure destination, which brings to life a blend of India’s art, culture, heritage, crafts, cuisine and performing arts. Kingdom of Dreams, the mammoth project is one-of-a-kind initiative of the Great Indian Nautanki Company, to promote Indian culture and tourism. The promoters of this phenomenon are Wizcraft International Entertainment, India’s leading entertainment and Communication Company, Apra Group of Companies and Raghubeer Group of Companies. Several multinational companies including Sony, Airtel, Vodafone, WalMart, Ranbaxy, Samsung, Harley Davidson have held their Family Day as well as Annual Day functions at this splendid lifestyle and entertainment destination. Kingdom
of Dreams have also played host to several Award Nights for media houses also. Corporate giants like Hyundai, Hero Honda, Sony Mobile, General Motors and HCL have organized their noteworthy product launches and dealer meets at this iconic destination. With the growing MICE tourism sector in India, Kingdom of Dreams has established itself as the preferred ‘convention destination’ in the
country and will continue to be a lucrative option for global events, conferences, tradeshows, socials, corporates and industry clients. Set at the apex of the Golden Triangle in Gurgaon an important financial center for India in the north, Kingdom of Dreams conveniently connects with the popular domestic and international touristbase across the three historic cities – Jaipur, Delhi and Agra.
A welcome for better ties Laguna Phuket hosted a welcome lunch for Indian travel agents, media, Tourism Authority of Thailand (TAT) executives and airline representatives who travelled on the inaugural Thai Smiles flight from Mumbai on April 4. The lunch at Banyan Tree Phuket was hosted by Ziya Birkan, Deputy Managing Director of Laguna Phuket. The travel agents later attended a business-to-business conference organised by TAT at Angsana Laguna Phuket
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 47
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 48
48
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
FAMILY ALBUM
Business at its best@GITB 2013
Contd. on page 54
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 49
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 50
50
NTO
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
Take a Botanical Holiday
Oman a click away
India is Oman’s largest inbound market, In the latest phase of its ‘Singapore - The Holiday You Take Home With recording 7,23,632 passenger arrivals You’ campaign, the Singapore Tourism Board focusses on its emergence in 2012. Oman Tourism will be reconas a city in a garden. ducting the online training programme. TT B U R E AU
S
ingapore has embarked on a paradigm shift as it develops from a ‘Garden City’ to a ‘City in a Garden’.
As part of its ‘Singapore - The Holiday You Take Home With You’, the Singapore Tourism Board focusses on its latest attraction, Gardens by the Bay. It invites visitors to ‘Go as parents, return as children’. Chang Chee Pey, Executive Director, South Asia, Middle East and Africa, Singapore Tourism Board, together with Kiat W. Tan, Chief Executive Officer, Gardens by the Bay, launched the latest phase of the campaign. Gardens by the Bay, the city’s latest icon leading this transformation, is positioned to the best international standards and applies cuttingedge innovations in environmentally-friendly technology and sustainable natural resource management. The gardens are a gem on the ‘necklace of attractions’ at Marina Bay boosting Singapore's international appeal as a place to live, work and play. The Gardens is an integral part of Singapore’s
Chang Chee Pey
Kiat W. Tan
Executive Director, South Asia, Middle East and Africa, STB
Chief Executive Officer Gardens by the Bay
We believe that the experiences offered in Singapore will continue to resonate strongly with the Indian travellers ‘City in a Garden’ vision in which the island-state is woven into a green and floral tapestry.
Gardens by the Bay offers a journey into diverse botanical worlds, right on the equator “Visitor preferences and travel habits are changing. Singapore Tourism Board works closely with the indus-
try to innovate and shape our tourism landscape, catering to the changing profiles of our target audience. Gardens by the Bay is one of the latest attractions adding to our city’s evolving landscape. We believe that the experiences offered in Singapore will continue to resonate strongly with the Indian travellers and draw them for repeated trips to Singapore,” said Chee Pey. “Gardens by the Bay offers a journey into diverse botanical worlds, right on the equator. From the best of Singapore flora, to the cloud forest of tropical highlands, to the colourful blooms of Mediterranean-type climatic regions, visitors can now take a ‘botanical holiday’ and enjoy the natural wonders of faraway realms all in one place. The Gardens brings the world of plants to Singapore, and in doing so, presents Singapore to the world,” said Tan.
One of a Kind The Gardens is an integral part of Singapore’s ‘City in a Garden’ vision in which the island-state is woven into a green and floral tapestry
TT B U R E AU
I
n order to create greater awareness on Oman’s products and offerings, Oman Tourism plans to re-launch its online training programme, ‘Discover Oman’ in the second half of this year. The tourism board also plans to tap Tier-II cities in the country such as Ahmedabad, Pune and Hyderabad among others. Lubaina Sheerazi, India Representative, Sultanate of Oman said, “Besides this, we will also conduct several fams for the travel trade so that they can get firsthand experience of Oman. In the past, we have run joint promotional campaigns with leading tour companies to promote Oman and we plan to continue doing so in 2013.” “Additionally, we are highly anticipating the release of the Bollywood movie ‘Once Upon a Time in Mumbai - 2’ which has been partially shot in Oman. Our association with this movie will be one of our major marketing and promotional activities in 2013. We plan to engage a lot with media and trade around the time of the movie release and
Lubaina Sheerazi India Representative Sultanate of Oman
we will also continue to conduct joint promotional activities with our trade partners,” she said. Sheerazi added, “Oman is not a destination for mass tourism. Its strengths lie in its immersive qualities, and its world-class natural and cultural attributes. Hence, Oman is for niche travellers from India who want to travel to a quaint destination which offers world-class hotels and resorts not too far away.”
India Focus Oman is targetting a growth rate of 12 - 15% in leisure arrivals from India in 2013 as well as an increase in the number of FIT visitors to the country
The Constance experience in Delhi Mauritius-based Constance Hotels Experience, part of the Constance Group, along with its Marketing Representative the Nijhawan Group recently organised a networking dinner in Delhi at Taj Mansingh.
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 51
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 52
52
STATISTICS
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
FTAs now specify gender while travelling Tourists in the age group of 35-45 visited India the most in 2011. In sex-wise distribution of tourists coming to India, men have a clear 19% lead over the fairer sex. TT B U R E AU
D
uring the year 2011, sex-wise distribution of the FTAs comprises of 59.4% men and 40.6% women. The male-female break-up of the FTAs in 2010 was 59.3% and 40.7% respectively. Table 1 gives the gender-wise distribution of
FTAs in India during 19962011. Percentage of arrivals not reporting their gender was quite high in 2001 and 2002, but it is gradually decreasing from 2005 and from 2008, it was noticeably low at 0.1. During 2009, onwards the reporting of sex of the FTAs has been 100%. While the proportion of female for most of the coun-
tries is in the range of 30% to 50%, for some countries like Egypt, Sudan, Iraq, Israel, Saudi Arabia, Turkey, Yemen Arab Republic,
much in the last few years. However, the proportion of FTAs aged 55 or above has increased from 11.5% in 1996 to about 24.2% in
FTAs in India according to gender 1999-2011 Year
Arrivals
Gender Distributor Male
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
22,87,860 23,74,094 23,58,629 24,81,928 26,49,378 25,37,282 23,84,364 27,26,214 34,57,477 39,18,610 44,47,167 50,81,504 52,82,603 51,67,699 57,75,692 63,09,222
65.3 61.5 65.4 69.5 61.9 41.1 50.2 55.7 54.9 52.5 57.1 59.9 60.5 59.6 59.3 59.4
Female
Not Reported
34.7 38.5 34.6 30.5 38.1 24.5 27.5 32.1 33.9 33.1 36.2 39.6 39.4 40.4 40.7 40.6
0.0 0.0 0.0 0.0 0.0 34.4 22.3 12.2 11.2 14.4 6.7 0.5 0.1 0.0 0.0 0.0
Afghanistan, Nepal, China (Main), Japan, Korea etc. it was substantially low (less than 30%) in 2011. On the other hand, women outnumbered the men in FTAs in India from Kazakhstan (64.7%), Mauritius (55.1%), Russian Federation (51.1%), UAE (51.0%) and Argentina (50.2%) during 2011.
Age Distribution of FTAs in IndiaThe proportion of FTAs in different age groups has not changed
2011. As the proportion of FTAs not reporting their ages has varied over the years, therefore, comparison of age-distribution of FTAs needs to be done with caution. In 2011, the highest FTAs in India (21.2%) were from 35-44 years age group, followed by the age groups of 45-54 years (19.7%) and 25-34 years (16.6%). The lowest number of FTAs occurred in the age-group of 15-24 years (7.9%).
The proportion of FTAs in the age-group 0-14 years was the highest for USA (22%), followed by Ireland (18.6%) and UAE (17.7%). Furthermore, the proportion of FTAs in India for the age group 25-34 years emerged as the highest from Eastern Europe (32.6%) followed by East Asia (26.6%) and Central & South America (24.4%) whereas for countries of Western Europe the proportion of the FTAs was the highest for the age-group 45-54 years.
In Numbers Percentage of arrivals not reporting their gender was quite high in 2001 and 2002, but it is gradually decreasing from 2005 and from 2008, it was noticeably low at 0.1. During 2009, onwards the reporting of sex of the FTAs has been 100%. The proportion of FTAs in the age-group 0-14 years was the highest for USA (22%), followed by Ireland (18.6%) and UAE (17.7%). Statistics from MOT
Leisure, business power FTAs in India According to a recent FICCI survey, domestic tourism strategy should now be tailored to target the middle-aged segment (35-50 years) to cash in on the rising disposable incomes and increased propensity to travel. T T B U R E AU
I
n the next six months, India is expected to see an increase in leisure and business tourists from aboard, as well as those visiting for medical treatments and adventure, according to respondents in a recent survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI). The survey findings released recently by Jyotsna Suri, Vice President and Chairperson, FICCI’s Tourism Committee, showed that the bulk of respondents (46 per cent) saw potential growth in inbound tourism in the forthcoming six months. This trend is supported by a Press Information Bureau statement according to which, in the first three months of 2013, the number of foreign tourists visiting India has increased from 1.98 million a year ago to 2.027 million.
We are safe in India 1. 55% of respondents felt that the global economic slowdown will have a moderate impact on Indian tourism over the next 6 months. 45% felt it won’t be affected. 2. 45% respondents felt the Union Budget 2013-14 had no impact on tourism. 3. 46% were confident of the foreign tourist arrivals increase in the coming six months. 4. Majority of the respondents (37%) saw the potential growth in inbound tourism in the leisure segment. Business travel and medical tourism came second with adventure tourism as the third. 5. The survey outlined that India’s tourism should target the middle-aged segment (35-50) to accelerate its growth. 6. 83% were satisfied with the current environment of safety and security for foreign travellers in India. 7. 75% felt that the airfare structure for foreign tourist movement in the country was expensive as compared to competing destinations. 8. 66% found the hotel tariff to be expensive, but not burdensome. 9. 56% found the state of air connectivity to tourist destinations as satisfactory, but could be better. 10. Hygiene and sanitation have been rated (91%) as very important for choosing India as a destination. 11. When asked which countries can India partner with for joint tourism programmes, the respondents listed in order of priority: China, Sri Lanka, Nepal, Germany, Australia, Japan and Thailand (a tie) and UK.
The FICCI survey also revealed that the industry felt let down by the Union Budget 2013-14 proposals as these had no impact on tourism. In fact, around 45 per cent said the Budget impacted the industry negatively due to major unmet and long-standing demands such as declaration of tourism as an industry, export industry status and inclusion of hotels as infrastructure. However, the good news is that 46 per cent of the respondents were confident of the foreign tourist arrivals (FTAs) to go up in the coming six months. Their optimism stems from the fact that FTAs in India have grown by 2.1 per cent in January and February 2013. During these two months, the foreign exchange earnings from tourism rose by 19.8 per cent in rupee terms and by 11.4 per cent in dollar terms.
All that they want... The respondents were asked ‘What is required for the growth of inbound tourism in India that is not being provided today by the stakeholders in tourism?’ The responses listed were: 1. Neat and clean hotels in remote places 2. Budget hotels 3. Last-mile road connectivity catering to smooth and seamless travel 4. Security and safety for tourists 5. Visa-on-Arrival for at least all Western countries 6. Better infrastructure in Tier-II cities 7. Knowledgeable guides 8. Greater awareness on accessibility 9. To look at new markets 10. More thrust on promotion of India in mainland China and Latin American countries 11. Promoting destinations collectively 12. Recognising tourism as an industry and grant it export industry status. The survey received 480 written and telephonic responses from tourism industry professionals in hotels of all categories, tour operators, travel agents, airlines, investors and tourism associations.
While 55 per cent of the respondents felt that there will be a moderate impact of the slowdown on tourism over the next six months, 45 per cent opined that there would be no impact.
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 53
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 54
54
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
FAMILY ALBUM
All the world’s a stage@GITB 2013
Contd. on page 56
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 55
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 56
56
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
FAMILY ALBUM
GITB 2013 was all about work & play
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:58 PM Page 57
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:59 PM Page 58
58
ANALYSIS
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
The high way or no way, say travellers This summer, will you travel in the usual manner, or are you planning to walk down the road less taken? Tour operators talk about what drives the niche travel market and what they are offering to discerning travellers. PEDEN DOMA BHUTIA
T
ravel is big on everybody’s minds. Photographs posted on social networking sites is proof enough of the fact that all people now want to do in their free time is to travel. But there are people who travel and then there are those who tread the road less taken. So, while some of us may be happy posing outside the Eiffel Tower or the Champs-Élysées, some others would rather dine in a crater (non active volcano of course!), or on a floating glacier, or learn Hula dancing in Hawaii or camp in the midst of Egypt’s dramatic White Desert. And in some extreme cases, some others would take the saying ‘To the moon and back’ a tad too seriously. A unique itinerary that Thomas Cook offers involves a holiday in outer space. This includes a month’s training that gives travellers the basics to acclimate themselves to the atmosphere at 62 miles above the earth’s surface. “As Indians reach a level of affluence, they expect the same holiday experience when they travel overseas and we need to design products keeping these interests in mind. The market for such niche experiences is growing. There is no one kind of niche experience, it keeps evolving
Karan Anand
Vishal Suri
Sunil Hasija
Madhav Pai
Head-Relationships Cox & Kings
Deputy Chief Operating Officer Tour Operating, Kuoni India
Executive Director TUI India
Director – Leisure Travel (Outbound), Thomas Cook (India)
There is no one kind of niche experience, it keeps evolving all the time all the time,” says Karan Anand, Head-Relationships, Cox & Kings. Increasing purchasing power is definitely a factor, seconds Vishal Suri, Deputy Chief Operating Officer, Tour Operating, Kuoni India. “Travel has become the new obsession for youngsters. With the increasing job opportunities for this segment of the population, youngsters are becoming financially independent very early on, this helps them to indulge and explore new
One of the top travel trends in 2013 is the increase in the number of independent travellers travel experiences. One of the top travel trends expected to grow in 2013 is the increase in the number of independent travelers. The lack of company is no excuse for youngsters to plan or postpone travels anymore. Young travelers like to go solo and find travelling companions along the way. It’s a market segment that holds tremendous growth.” Little wonder then, that travel companies are
Volunteers can enjoy travelling abroad while assisting environmental & community projects
now throwing open a plethora of options to discerning travellers who are hungry for fresh and engaging travel experiences. Madhav Pai, Director – Leisure Travel (Outbound), Thomas Cook (India) Ltd, says, “This summer, we are witnessing strong demand for options that are as diverse as yachting vacations in the Mediterranean; a safari with highly trained naturalist guides in South
The ‘brag factor’ in the Indian social context gives further impetus to this sector
Africa; a Northern Lights experience in Canada; a Segway tour of Barcelona unique farm-stays and agrotourism in Palermo, decadent truffle-cheese chocolatier experiences in France, Ferrari drives, to haute-couture retail therapy in Italy. At TCI, we had launched a specialised vertical ‘Personalised Holidays’ offering unique experiences and engaging bespoke travel programs, tailor made to our
clients exacting requirements. Some of the unique experiences we’ve designed are as fascinating as a MIG fighter jet rides in Russia; unique farm stays in Sicily, Vietnam & Cambodia; fissure snorkelling in Iceland, glacier climbs and treks in Switzerland, the IFly thrill of body flying in Singapore and many more.” Pai says that besides all the other factors that work to create a market for niche tourism experiences, the ‘brag factor’ in the Indian social context gives further impetus to this sector. TUI India offers a greener option to travel. Sunil Hasija, Executive Director, TUI India, says, “Volunteer travel is a unique form of travel that allows people to make an exceptional difference to the planet in a safe, responsible and supported way. Volunteers can enjoy an exciting travel adventure abroad while assisting vitally important environmental and community projects. People can volunteer all over the world from as little as two weeks up to several months! They will engage with a local community in a unique way and experience part of another country not easily accessible to tourists. Another niche offering is expeditions to the poles under our ‘Quark’ offerings.”
New campus of IITTM in Bhubaneshwar
China Southern delegation in India
K Chiranjeevi, Minister for Tourism, inaugurated the new sprawling campus of Indian Institute of Tourism and Travel Management (IITTM) at Dumduma in Bhubaneshwar on April 18, 2013. Naveen Patnaik, Chief Minister of Odisha and Srikant Jena, Union Minister for Chemicals & Fer tilizers, Statistics and Programme Implementation also graced the occasion along with many other dignitaries.
A 4-member China Southern Airlines delegation led by Guo Zhiqiang-Chief Marketing Officer and Director General-Commercial Steering Committee visited Mumbai from 16-18 March & Delhi from 19-21 March 2013. Condor Air Services Pvt. Limited-GSSA India, hosted dinners in Mumbai & Delhi in honour of the visiting delegation.
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:59 PM Page 59
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:59 PM Page 60
HOTELS
ITC’s tribute to Tamil Nadu The pillar-less convention ballroom promises to make Chennai an important international convention destination in India, enhancing the potential for high quality tourism inflow. TT B U R E AU
A
t a time when the economy is slowing and hotel occupancy levels are expected to take a beating, this hotel is extremely confident. “There will be no price rationalisation in hotel as the room rates are relatively low in this region. In the long
Philippe H. Charraudeau Vice President and General Manager ITC Grand Chola
term, the industry would only grow with additional inventory creating new demand,” feels Philippe H. Charraudeau, Vice President and General Manager, ITC Grand Chola. A luxury hotel from the ITC group, this property was launched last year in September. According to
Charraudeau is betting big on emerging MICE industry in the city. “For us, the mantra is ‘Destination Chennai’.
In 2013, we are planning to bring lots of international conferences, meetings and make the city more vibrant in the MICE world map,” he says. With 600 rooms and a built-up area of 1.5 million square feet, the ITC Grand Chola, inspired by the architectural splendour of the Chola dynasty, is an iconic destination in Chennai. The pillar-less convention ballroom spread over 30,000 square feet promises to make Chennai an important international convention destination in India, enhancing the potential for high quality tourism inflow into the state, he adds. The property, built on an investment of around ` 1,200 crore is expected to achieve an occupancy level that will be a benchmark for any hotel of its size in the history of this country, the GM points out. Talking about the various
segments, which are expected to boost revenues, Charraudeau comments, “The hotel has multiple edifices to accommodate multiple needs of customers and attract revenue streams from various segments – discerning business and leisure travellers for events and conventions. Apart from offerings in the MICE segment, which are unparalleled in the country, the hotel will have a separate section of exclusive service residences and a luxury retail arcade. There will be 10 food and beverage outlets and a 23,000 sq. ft. internationally acclaimed spa brand, Kaya Kalp as well.” Speaking of Chennai as a location for the hotel, he opines, “The hospitality industry in Chennai features the least number of premium accommodations as compared to other major metros in the country. There is hence a need and an opportunity that we believe existed in the luxury hotel segment in Chennai. The ITC Grand Chola is ITC’s tribute to Tamil Nadu and an iconic asset to the city in which ITC forayed into the hotel business in 1975.”
Non-city hotels on their radar... The association Relais & Chateaux has inspected around 50 stand-alone hotels in India, out of which 12 have been shortlisted for membership. TT B U R E AU
A
iming to increase its India kitty, Relais & Chateaux aims to add five new member properties by 2014 in the country. The association already has five properties, located mainly in Northern and Southern regions, as its members in India. This was revealed by Jaume Tapies, Chairman of the Board, Relais & Chateaux, who was recently visiting Delhi. According to Tapies, Relais & Chateaux has completed inspection of around 50 stand-alone hotels in India, out of which 12 have been shortlisted for membership. “We are looking at five properties that will match our standards and join the association of Relais & Chateaux by the end of year. We are also looking at incorporating at least one member restaurant in Delhi this year,” he says. The group is an association of independent luxury boutique hotel properties and
Jaume Tapies Board Chairman Relais & Chateaux
The owners are able to multiply their revenues 20 times of our annual membership fee stand-alone restaurants. Talking about the USP of this association and how does a
member hotel gain from the affiliation, Tapies informs, “We give more business than anybody else to non-city hotels globally. Eighty five per cent of our guests are leisure travellers. They generally stay longer and look for experiences. The owners are thus, able to multiply their revenues 20 times of our annual membership fee. About 35 per cent of the total business of a member hotel comes directly through our referrals.” After the admission, a member benefits from all services that the association can provide, including the central reservation and information office, he adds. Talking about performance of the member hotels this year, the chairman points out, “For the fiscal year that would end in June 2013, nearly US $140 million business is expected to be generated for member properties from our central reservation system.”
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:59 PM Page 61
NEWS Bonton Tours now in New Delhi T T B U R E AU
T
he recent inauguration of Bonton Tour’s regional office in Connaught Place, New Delhi, was in line with the company’s marketing strategy of providing customised solutions and localised support to customers in Delhi. Speaking on the occasion, Avanish Sharma, Managing Director of the Bonton Group, said,
“Our investment in New Delhi is focussed on delivering value added, customised and localised support to our partners in North India. It will surely enhance the consumer experience and help in building customer loyalty to deliver long-term growth. We
Avanish Sharma Managing Director Bonton Group
understand the importance of this region and value the response that we have been receiving from the region. We appreciate the nuances in the requirements of North India as compared to the rest of the country and hence want to provide this region with the best customised travel solutions through our regional office.” The launch of the regional office in Delhi comes after successful establishment of seven branch offices of the company in Mumbai, New Delhi, Hyderabad, Chennai, Kochi, Ahmedabad and Pune. The company also has its corporate headquarters in Mumbai and a back office in New Delhi. The company has already launched new products for Hong Kong, Macau, Europe and China as well as domestic religious tours for Chardham Yatra and Amarnath Yatra. The regional office is expected to introduce many more North India specific products that will see added interest from travellers.
MAY 1 ST FORTNIGHT ISSUE 2013
TRAVTALK
61
1 theme park in India goes B2B way st
Adlabs partners with tour operators to attract travellers from every corner of India and grab a small portion of inbound tourism. T T B U R E AU
D
eveloped on the lines of Disneyland and Universal Studio, the first theme park in India was recently launched near Mumbai in Maharashtra – Adlabs Entertainment Ltd. Classsified as ‘Mega Tourism Destination’ by MTDC, the
park is spread over an area of 110 acres and the first phase of the theme park has been built at an investment of ` 1200 crore. By the end of this year, a 350 room hotel will be ready at the project site and by next year a water park will be commissioned at the cost of additional ` 550 crore. The park has partnered
with select tour operators from Mumbai, Pune and Ahmedabad to increase brand awareness and sales. It has also introduced a B2B portal where all travel partners will have individual logins and accounts enabling them to resell the park tickets and packages. Talking about the partnership with travel trade,
Pooja Shetty Deora, Joint Managing Director, Adlabs Entertainment said, “We have extended our partnership with travel trade to maximise tourist footfalls to our theme park. We expect 40-45 per cent of the sales commitment coming directly from our travel partners covering FITs, groups and MICE.”
Pooja Shetty Deora Joint Managing Director Adlaabs Entertainment
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:59 PM Page 62
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:59 PM Page 63
FAMILY ALBUM
MAY 1 ST FORTNIGHT ISSUE 2013
TRAVTALK
63
MOT to speed up hotel projects With a view to bring in transparency in granting approvals for hotel projects, MOT has launched a web-based Public Service Delivery System (PSDS) for Hotel approvals, classification and other allied services. All applicants seeking hotel project approvals, hotel classification and approvals for other related services will be able to track the progress of their cases online on a real time basis.
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:59 PM Page 64
HOTELS MAY 5-7
Germany
German Travel Mart
6-9
Dubai
Arabian Travel Market (ATM)
9-11
Shanghai
World Travel Fair
11-14
Durban
Indaba Expo
12
Maldives
World Travel Awards Indian Ocean Gala Ceremony
12-14
Budapest
Routes Europe 2013
12-15
Ottawa
Canadian Tourism Commission’s Rendezvous Canada
13-15
Kuwait
Travel World Expo
15-16
Bangkok
5th Asia Pacific Hotel Investment Conference
16-18
Switzerland
Meeting Luxury 2013
21
Moscow
PATA Hub City Forum Moscow
21-23
Germany
IMEX 2013
22-23
London
Boutique Hotel Summit 2013
24-26
Kolkata
India Tourism Fair
24-27
Taiwan
Taipei Tourism Expo
28-29
Singapore
9th Travel Distribution Summit Asia
29-30
Istanbul
Turkey & Neighbours Hotel Investment Conference (CATHIC)
29-Jun 3 Cameroon
Africa Travel Association’s 38th Annual Congress 2013
31-Jun 2 Bern
Switzerland Travel Mart
JUNE
2-4
Cape Town
3-6
Shanghai
IATA: Annual General Meeting International Luxury Travel Market Asia (ILTMA)
5-7
Thailand
Thailand Travel Mart Plus 2013
11-13
Chicago
Americas Incentive Business Travel & Meetings Exhibitions (AIBTM)
13-16
Hong Kong
International Travel Expo
19-23
Vancouver
Cruise3sixty 2013
21-23
Beijing
Beijing International Tourism Expo (BITE)
26-27
New Zealand
Tourism New Zealand’s MEETINGS 2013
JULY 5-7
Kolkata
Travel & Tourism Fair
5-7
Australia
The Wagga Great Outdoor Expo
5-14
Brazil
Expotche
10-11
Honolulu
Hawaii Lodging Hospitality & Foodservice Expo
11-14
Germany
European Outdoor Trade Fair
12-14
Hyderabad
Travel & Tourism Fair - Hyderabad
13-14
Mumbai
Times Travel Trade Fair
17
Zambia
Mte Exhibition - Zambia: Solwezi
17-28
California
California Mid State Fair
19-21
Bengaluru
India International Travel Mart Bangalore
19
Zambia
Mte Exhibition - Zambia: Kitwe
20-24
Reno
STN Expo
24-27
China
Asia Outdoor Trade Fair
26-28
Gold Coast
Midyear Caravan, Camping, Boating & Fishing Expo
26-28
Chennai
IITM Chennai
For more information, contact us at: talk@ddppl.com
India in top 5 markets for Hyatt The hotel company which is aligning its growth to leverage new demand in domestic travel, also plans to expand into several new markets in the country, including Bengaluru, Kochi, Ludhiana, Raipur and Gurgaon. ning to take the count up to 70 in the next five years.”
T T B U R E AU
H
yatt Hotels & Resorts is planning to take the count of its hotels in India to 20 properties by the end of 2013, and 70 properties in the next five years. Kapil Aggarwal, Vice President, Hotel Sales and Marketing, Hyatt Hotels & Resorts, Southwest Asia said, “Three of our brands- Hyatt Regency, Grand Hyatt, and Park Hyatt-already operate in this market, with Andaz and Hyatt Place in development. With the rise of the middleclass, our growth strategy includes adding to our select service brands (Hyatt Place and Hyatt House) which cater
Kapil Aggarwal Vice President, Hotel Sales and Marketing, Hyatt Hotels & Resorts, Southwest Asia
to the upscale, mid-market segment. A significant part of our development efforts will also go into Tier-II and III markets. Hyatt, which currently operates 10 upscale hotels in the country, is plan-
Elaborating on Hyatt Hotels & Resorts’ expansion plans in India, Aggarwal added, “India is one of our top five markets across the globe. Hyatt Place Hampi joins 10 hotels currently open under various Hyatt brands in the country, including Park Hyatt Hyderabad and Park Hyatt Chennai, which opened recently. The momentum will continue with more than 50 previously-announced hotels under development in India across various Hyatt brands, including Hyatt Regency Gurgaon, Hyatt Regency Ludhiana, Hyatt Raipur, Andaz
Gurgaon, Grand Hyatt Kochi and various other Hyatt Place hotels. In the next five years we aim to grow by a hundred percent.” In October 2012, Hyatt Hotels & Resorts announced that it would rebrand five Ista hotels in the country as Hyatt Bangalore M.G. Road, Hyatt Pune, Hyatt Hyderabad Gachibowli, Hyatt Ahmedabad and Hyatt Amritsar by April 2013.
Going by Numbers Hyatt Hotels & Resorts currently has over 50 hotels under development in India – with three of them slated to open in the next six months
Plugging the gap in hospitality With its evolution to an independent micro-market separate from New Delhi, Gurgaon has already achieved the highest RevPAR in the five-star hotel segment nationally last year, says the GM. T T B U R E AU
Gandhi International airport,” the GM adds. The hotel's Regency Ballroom has a capacity of up to 3,000 guests (reception-style) and can be used for weddings with elaborate décor, car launches and conferences of varying capacities.
T
raditionally, Manesar was known for manufacturing and automobile industry. However, as the NCR expands and pushes its boundaries, a lot of residential complexes have emerged. “The new Hyatt Regency Gurgaon is going to fulfil the needs of this growing residential and corporate clientele,” believes Federico Mantoani, General Manager, Hyatt Regency Gurgaon. Betting big on its strategic location, the hotel is aiming to attract a large number of corporate travellers and MICE events. “Just minutes from the Industrial Model Township (IMT) at Manesar, strategically located off the Delhi-Jaipur NH8, Hyatt Regency Gurgaon is the ideal hotel for business travellers to Gurgaon. With an easy access from the National
Federico Mantoani General Manager Hyatt Regency Gurgaon
A large portion of the corporate sector prefers to work and stay in Gurgaon Highway 8, the hotel is a 30minute drive from the Indira
According to Mantoani; with its evolution to an independent micro-market separate from New Delhi, Gurgaon has already achieved the highest RevPAR in the five-star hotel segment nationally last year. Pointing out to an STR Global, he articulates, “Gurgaon reported RevPAR of ` 7,200 in 2012, which is 22 per cent and 27 per cent higher than rates in Mumbai and Bengaluru, respectively. Gurgaon’s hotel market was also one of the few that did not see a dramatic performance decline during the economic downturn.”
Regarding whether the new supply of rooms will pull down the ARRs in the region, he opines, “Looking ahead, the upcoming supply in the Delhi International Airport hospitality district will have minimal impact on the Gurgaon market. A large portion of the corporate sector prefers to work and stay in Gurgaon, as it develops into a separate micro-market and this will add to the regular business at the hotel.” The hotel, which will open its doors by the end of next month, has 450 guestrooms measuring 44 sq m, each with a workstation with a dual-line telephone and media-hub connectivity. The hotel houses four dedicated Regency Club floors; two of which are reserved for suites measuring 88 to 264 sq m.
Skill training academy at ITI, Lonavala Indian Hotels The Company Limited (IHCL), a part of Tata Group, today announced its partnership with the Government of Maharashtra to set up a skill training facility at the Industrial Training Institute (ITI) campus in Lonavala. The training facility was
inaugurated by Prithviraj Chavan, Chief Minister of Maharashtra. The initiative is a part of IHCL’s CSR endeavour of ‘Building Sustainable Livelihoods’. Raymond Bickson, Managing Director & Chief Executive Officer, IHCL, said, “It is our honour to partner
with the Government of Maharashtra to set up a vocational training facility at ITI.” Speaking on the occasion, Chavan said, “We are proud to provide underprivileged youth in the state an opportunity to develop necessary skills sets for employment in the hospital-
ity sector.” The Government ITI Lonavala, established in 1978, has set up a Centre of Excellence for Hospitality Skill Training with partners like World Bank, State Government of Maharashtra and The Taj Group of Hotels.
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:59 PM Page 65
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:59 PM Page 66
HOTELS
Iris Park gets down to business The hotel has increased its travel agent-based bookings from less than 15 per cent of the total to almost one-third of the total share over the last two years. TT B U R E AU
T
alking about the USP of the property, Aashish Kumar Roy, General Manager, Iris Park Hotel says, “The hotel’s USP is a combination of its location, its size and the level of service. It is located equidistant from the Airport (10 km from Terminal 1D), 15km from T3, from both business districts, Connaught Place (10 km) and Nehru Place (8 km) and in close proximity to the Diplomatic area (Chanakyapuri) that starts two kilometers from the hotel. Being mid-size, at 57 rooms, the advantage Iris Park Hotel has over others in
the vicinity is the fact that availability of room is rarely a problem and small groups do not necessarily make the hotel full so that it needs to turn down other guests.”
Considering the peaks and troughs in the occupancy chart, the hotel sees lower occupancy, ranging 40-60 per cent in the summers and 50-90 per cent during the winter season. Weekends and holidays are typically dull periods as the hotel serves business travellers more than the leisure segment, he adds.
stable since the last two years in order to increase our footprint with new clients,” he reveals. Betting big on the B2B segment, the hotel has increased its travel agentbased bookings from less than 15 per cent of the total to almost one-third of the total share over the last two years. The GM confirms,
The hotel commands different ARRs across different segments. “The ARRs are driven by several factors such as contracted tariffs, but broadly, we look at ` 3,500 during the summer months to ` 4,000 during the winters plus taxes. We have kept intentionally kept our ARRs
Considering that the hotel's business has also grown, the travel agents’ participation has increased substantially.
Pamper yourself at Rajasthali Situated 22 kms north of Jaipur in relative seclusion, Rajasthali Resort and Spa offers a solace that is unmatched. TT B U R E AU
R
ajasthali Resort and Spa has established a niche in the affordable luxury segment by being the ultimate pampering hideaway, in contrast with hotels located closer to the monuments and the bustle of Jaipur. Reveals Girish Agarwal, chairman and managing director, Rajasthali Resorts & Studios, Puja Construction, “Whether it is a destination wedding, a corporate event or a rejuvenating holiday, the resort offers 30 exquisitely-
crafted luxury guestrooms, 22 tents, one suite, banquet facilities, swimming pool, a stateof-the-art spa and multi-cuisine specialty restaurant to create an exclusively customised experience.” Regarding special initiatives for the travel agent/tour operator community, the CMD adds,
“We always motivate our travel agents for add-on values, monitory gains and recognition.
With the help of our travel operators, we get approx 40 per cent of the B2B bookings and we would like to increase it up to 60 per cent by the next year.” The property is eyeing main inbound travellers, destination weddings, MICE and domestic leisure travellers in a big way. According to Agarwal, hotel industry is going through an interesting phase in India. “Right now, the domestic market is proving to be a good source of business as there has been
Girish Agarwal Chairman and Managing Director, Rajasthali Resorts & Studios, Puja Construction
an increased level of participation in the MICE sector from Delhi, NCR and Mumbai. The inbound and domestic travellers would be in the ratio of 30:42,” he points out.
‘Bean’ there, and doing that We are investing `20 crore for the Havelock Island property in Andaman & Nicobar. talks to Anand Menon, Head of Marketing, Coffee Day Hotels and Resorts. a tea factory amongst other activities.
TT B U R E AU
B
etting big on travel trade, Coffee Day Hotels & Resorts is looking at increasing its alliance with the B2B fraternity. Currently, around 35 per cent of its business is garnered through this channel. It has now introduced a sixday itinerary across three resorts offering three different experiences. Known as The Serai Memories, the package is clubbed with an offer of an additional complimentary night. For The Serai Bandipur, the company has initiated The Blue
Anand Menon Head of Marketing Coffee Day Hotels and Resorts
Mountain Trail where the guest gets to visit Ooty – visit a chocolate factory and
Anand Menon, Head of Marketing, Coffee Day Hotels and Resorts, who was in Delhi to meet the group’s travel partners says, “Till now, we have received a lot of weekend traffic from Bengaluru itself. The idea is to make the resorts popular among the North Indians. The itinerary is one such step to promote the entire Karnataka circuit.” The subsidiary of Amalgamated Bean Coffee Trading Company (ABCTCL), Coffee Day Hotels &
Resorts is now venturing beyond its home turf in Karnataka. The group is looking at opening The Serai Resorts in Andaman Islands and Mangalore in the next three years. The Andaman Islands property would be the first property of the group outside Karnataka. The group is investing around ` 20 crore for the Havelock Island property in the Andaman & Nicobar Islands, which should be operational in the next 18 months. With 55 operational rooms, the resort on the beachfront will cater to leisure travellers.
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:59 PM Page 67
CLIPBOARD
MAY 1 ST FORTNIGHT ISSUE 2013
TRAVTALK
67
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:59 PM Page 68
68
MOVEMENTS
TRAVTALK MAY 1 ST FORTNIGHT ISSUE 2013
Swiss International Air Lines
Crowne Plaza Kochi
Minar Travels(India)
Mumbai
Kochi
New Delhi
Markus Altenbach has been appointed as the new General Manager, India for Swiss International Air Lines. He will be taking over from Jean-Philippe Benoit who retired recently. Since 1999, Altenbach has been based in Brazil as the Regional Director of Swiss International Air Lines for Latin America. In his new assignment as General Manager for India, he will be responsible for overseeing Swiss International Air Lines’ account cooperations, direct sales and maintaining relationship with top clients and sales partners, among other operational functions.
Sanjay Kaushik has been appointed as the General Manager of Crowne Plaza Kochi. He will be a part of the South West Asia region of IHG. Kaushik started his career as a professional judo player with the CISF. He then graduated in Commerce from Delhi University. Kaushik has 17 years of experience in the hotel industry and has worked with renowned hotel brands like ITC Hotels, Intercontinental, Country Inns and Suites, Crowne Plaza and Radisson Blu in his past assignments.
Gursharan Singh has joined Minar Travels(India), as an Assistant Vice President- Business Development. Singh started his career in 1994 with Travelite (India). As of now, he has reaped 20 years of travel experience from this industry. Singh comes to Minar Travels from TCI. In his new role at Minar, Singh will be responsible for business development from emerging markets and Korea and other Far East Markets in which he specialises.
Air France-KLM
The Ritz-Carlton, Bangalore
Tux Hospitality
Mumbai
Bengaluru
Delhi NCR
Bharati Mongia has been taken on by Air France-KLM as its new Regional Manager-West and South India. Mongia will be responsible for sales in west and South India for Air France-KLM-Delta. Mongia brings with her over 16 years of experience working with Air France-KLM. She is an MBA in marketing and has experience in handling communication, distribution, customer service, loyalty programmes and sales. Prior to this role, Mongia was a Marketing Manager-India followed by Sales Manager-Global and National with Air France-KLM.
Elfa Cleofe has been appointed as the Director of Sales and Marketing of The Ritz-Carlton, Bangalore. In her capacity as the Director of Sales and Marketing, Cleofe will be heading the Sales, Catering, Revenue, Public Relations and Marketing divisions of the hotel. She has been in the hospitality industry for over 20 years. Prior to joining The Ritz-Carlton, Bangalore, she opened The St. Regis Lhasa Resort. She also worked at the Four Seasons Hotels in Tokyo, New York and Philadelphia and the Ritz-Carlton Hotels in New York and Washington D.C.
Dhruv Sharma is now Tux Hospitality’s new Head of Operations. A postgraduate in Hospitality Management, Sharma has worked as the general manager in Choice Hotels International with four properties under his administrative purview. He has also taken charge of a gamut of areas including- sales, purchase, personnel, accounts, engineering, uniform services and room sales, F&B, budget and budgetary control, general administration and leadership and corporate office relations.
The Westin Mumbai Garden City
Square Root Hospitality
Mumbai
New Delhi
Le Cirque, The Leela Palace, New Delhi
Anurag Mishra has been appointed as Assistant Financial Controller in the Finance Department at The Westin Mumbai Garden City. With over 5 years of experience in the industry, Mishra had joined Starwood Asia Pacific Hotels and Resorts as a Management Trainee in the Finance Department. He then was heading the Finance Department at Le Meridien Coimbatore, Tamil Nadu. Mishra has also worked with CA firms. With acting as a passion, Anurag has completed his CA and is now pursuing an IFRS certification course conducted by ICAI, at New Delhi.
Tarun Jain has been appointed by Square Root Hospitality as the CEO of CHI Kitchen and Bar. In his new role, Jain will head the complete business for Square Root that includes Chi Kitchen and Bar as well as all their future projects. Tarun was one of the first employees of the company in 2008 and contributed to the setting up of multiple hospitality formats that LBF operates in today including Subway, Baker Street, Pollo Campero, Frescco, Asia 7, Pinos Pizza & Pasta and Zambar.
Talking People is a special dedicated corner, created as a sounding board for who’s who of the Indian and International travel industry. With Talking People, it is our endeavour to bring you face-to-face with people. Contributed by: Peden Doma Bhutia, Teena Baruah and Megha Paul
Runjuan Tongrut, Director, North and East India, Bangladesh, Bhutan and Nepal, TAT, says, “I may have been in India for a little more than a year but my love for travelling is evident in the fact that I have travelled a lot around the country.” While the Ajanta and Ellora caves at Aurangabad left her mesmerised, she says she also loved Srinagar and Shimla. “I also want to go to Bodh Gaya some day,” she says. While in Delhi, where she works as Director, Tourism Authority of Runjuan Tongrut Thailand, Runjuan says, she loves to visit Old Delhi. Director, North and East "The heritage sites around the city fascinate me. I like India, Bangladesh Bhutan and Nepal, TAT Old Delhi. It’s lovely. I normally take the rickshaw from the mosque to Red Fort. I also love to eat at Karim’s.” She says she also likes listening to Indian music even though she may not understand the lyrics.
New Delhi Federico Pucci has been appointed as the Sous Chef at Le Cirque, The Leela Palace New Delhi. He brings with him an international experience of six years. His passion for cuisine has taken him to several renowned Italian restaurants like Baccarossa (Florence), Restaurant 500 in Florence, Novecento restaurant with the Michelin Star Chef Matteo Vigotti, La Taverna Del Capitano with Michelin Star Chef Alfonso Caputo in Naples.
Ramesh Marwah, Director Chang Chee Pey, Executive GrandTour Assistance Director, South Asia, Middle East International and Dex Aviation, & Africa and Planning Projects, says, “I like to play golf on weekSingapore Tourism Board, says, ends, whenever possible. I also “In my free time, I spend time like listening to music and with my family. Since I’m travelwatching movies, apart from ling throughout the week, I try travelling. My favourite holiday and spend time playing with them destinations are Italy and whenever I get time off from Chang Chee Pey Ramesh Marwah Austria. I can visit these countries Executive Director, South work. For me, staying in India has Director GrandTour Middle East & Africa Assistance International any number of times. I recently Asia, been all about how my kids are and Planning Projects, STB and Dex Aviation visited Slovenia and was being able to take in a different impressed by its pristine beauty. I would like to take culture that’s so rich and varied. My daughter just started my two beautiful daughters and three grandchildren singing Hindi songs, and she’s quite into it and it’s amazthere someday.” ing. She also loved watching 3 Idiots. We are all having a good time as a family In India.” Renato W. Chizzola, General Manager, Constance Halaveli Maldives, is extremely passionate about travelling. "I chose hospitality as a profession because I love travelling. I have worked in a cruise before this. And thanks to my stint in the cruise, I have travelled to over 200 countries in the world. I love knowing about different nations, their cultural diversity and the rich culinary delights." He is an adventure freak. "I go for trekking very often." About staying in the Maldives, Chizzola feels life is a big holiday. "We all work but I work in a place where people go holidaying. Yes, managing a hotel is a big job but it's good to do that task in Maldives," he says. Renato W. Chizzola General Manager Constance Halaveli Maldives
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:59 PM Page 69
26-04 TT MAY_1st ATM ISSUE -2013:TT Layout 5/3/2013 5:59 PM Page 70
Postal Reg. No.: DL(ND)-11/6044/2012-13-14; WPP No.: U(C)-178/2012-14 for posting on 1st-2nd and 15th-16th of the same month at New Delhi P.S.O., RNI No.: 53492/91 Date of Publication:30-04-2013
HIGHLIGHT
Tourism is the saviour, says Craigs From planning to opening PATA’s office in India to providing solutions to the very debated tax issues, Martin Craigs, CEO, PATA, discusses the current difficulties faced by the industry and recommends possible solutions. D E V I KA J E E T
“S
ell with all the resources you can muster. Reshaping public opinion is a hard path, but one
industry today is not selling with all its resources. The travel and aviation industries are world-class when talking amongst themselves, but they are average at external advocacy. And then, they wonder
within your own circle, then you won’t change the external environment.” Highlighting the importance of the complete visitor economy, Craigs adds, “The
India tourism: A way forward •
•
•
•
India’s significant problem areas include taxes imposed on tourism (inbound and outbound), India’s inbound opportunities and challenges, and emerging challenges in South Asia. India is getting noticed on the global tourism map. But if it is high on the tourism inconvenience curve, then it will not attract too many tourists. Word-of-mouth is still very powerful, and the most important customer is the one being served now. Hold on to the long-haul, long-stay passengers. India is in a sweet spot and holding on to the long-stay visitors is eminent. The matrix of tourism has to be changed. The world average expenditure of a tourist is $600, but for India, this average is $2,700. Aviation is not the impediment for the growth of inbound tourism. Outbound tourism, going on the same routes, is growing by leaps and bounds. India also has the lowest airfare, compared to the rest of the world.
•
•
Billion-dollar investments near the Delhi airport for the growth of 4,000 hotel rooms in Aerocity have come to a halt because of security concerns. Hotels on the eve of opening their doors were told not to till they don’t get security clearance. Now the Ministry of Tourism promises to take this matter up with a forum, which is looked into by the Prime Minister’s Secretary. Hotels and airlines can now promote themselves through the Incredible India website free of charge. The MOT is building a very strong website, which will also deliver services electronically. The Ministry reassures that all individual hotel chains and airlines who want to have a link or button on the home page (front page) of the website can do so free of cost. (Excerpts from PATA’s Hub City Roundtable Forum in New Delhi)
Our tourism superstar Craigs was also full of praise for India’s very dynamic tourism minister and said, “Imagine a combination of George Clooney and John Travolta as tourism minister, how cool will that be! And in India, you have got the two in one package and he’s a really nice guy. I am definitely a big fan of the Indian tourism minister Chiranjeevi”.
K Chiranjeevi Minister of Tourism
which is worth taking”, said Margaret Thatcher at the PATA Conference in Honolulu, in the April of 1993.
why they are not respected and reasonably treated by governments in terms of taxation and regulation!”
Discussing the relevance and importance of this saying, Martin Craigs, CEO, PATA, stresses, “The travel
“Well, the answer is, if you don’t turn up, you don’t change anything. If you stay in your comfort zone, talking
travel industry is at a crossroad. It is potentially, and ironically, the saviour of our modern politicians. It is one industry that can create jobs quickly and cost-effectively. The one thing that modern politicians have to do is to create jobs. Yet politicians are blind to the
Martin Craigs CEO, PATA
impact of not just tourism, but the visitor economy. We need to set higher aspirations for what the travel and tourism industry does for the economy, and more importantly, raise our status. The entire travel chain needs to realise that we all are into this together. Most importantly, politicians generally don’t see the light, until they feel the heat.” PATA’s important shortterm goals include putting a spotlight on self-harming taxes that weaken the travel trade, and secondly create unreasonable and unrealistic costs and therefore, disincentive travel. The association feels that governments usually tax the weakest link and will continue eating into the travel and tourism industry. The prime example of this is the £94 APD to be paid for anyone travelling outside Britain. Craigs focusses on the India market by complementing MOT for its great work done in Hyderabad. “I was so impressed with what I saw at UNWTO’s Hyderabad event. We should get a major PATA event back there (Hyderabad) in the next three years. The city is definitely on our radar.” Craigs also mentioned that PATA would have an office in India sooner than later and is aspiring to have a full-time office here within the next three years.