Vo lu m e 2 . I s s u e 4 . AU G US T 2 016 . ` 5 0 Total pages 28 No.U(NDGPO)-01/2016-2017 Date of Publication: 14/08/2016 RNI No. DELENG/2015/62794 Posting Dt. 12-17/08/2016 Postal Reg. No. DL(ND)-11/6180/2015-16-17
MoT to chair taskforce on connectivity; to rope in Rail, NH and Aviation, says Secretary Zutshi The government has constituted a taskforce to be chaired by Secretary (tourism), involving ministry of Civil Aviation, Nation Highways and ministry of Railways. The concerted push is aimed at creating better linkages… page 11
INTACH moves forward with HRIDAY projects
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eading NGO, INTACH, is moving forward with the Urban Development Ministry programme HRIDAY, implementing some of the objectives at three cities, namely Gaya, Varanasi and Warangal. We bring you a report, see page 4.
Domestic air traffic up an impressive 20.8%; Vistara doubles market share in June this year
R
iding high on the back of consistently low fuel prices and additional seasonal demand, with the onset of the vacation season, domestic air-traffic rose by an impressive 20.81 percent in June as compared to the previous year. Interestingly, Vistara managed to doubled its market share to 2.8 percent in June over the corresponding month last year. Its market share grew from 1.3 percent in June 2015 to 2.8 percent, as it has been steadily inducting new aircrafts in its fleet. As per the data put forth by the DGCA, carriers flew 7.9 million passengers against 6.6 million passengers in June 2015 while domestic carriers registered a year-on-year growth of 22.52 percent in the first five months of 2016, flying 47.5 million passengers. Jet Airways and JetLite, combined, saw their market share slip two percentage points, settling at 19.1 percent. Vistara aside,
market share of Air India, AirAsia India and SpiceJet have all shown a northward tick on a year-on-year basis. Go Air and IndiGo saw their market share come down – IndiGo had a market share of 38.4 percent in June 2015 which came down to 37.9 percent. However, it is important to note that IndiGo’s passenger traffic in absolute terms grew to three million in June – which was a rise of 19 percent growth on year-on-year terms. Jet Airways, too, saw a small increment in traffic in absolute terms, with 8.9 percent hike, taking the total figure past 1.5 million passengers. Given that the government has been focussing on strengthening regional connectivity by creating a dedicated airline for the Northeast, and constructing new aviation hubs to disperse traffic into the hinterland, aviation experts expect domestic traffic to remain robust in the next quarter, as well.
tourism currents
Govt must look into rebates doled by OTAs in larger national interest: Subhash Goyal (Page 5)
states
Ancient Nalanda University gets its due; inducted as World Heritage Site by UNESCO
Industry reacts to the passage of GST in the Upper House
Bhaskar Pramanik Chairman Microsoft India
I am pleased that the GST Bill was passed in the Rajya Sabha. It is a positive development and the Government’s idea of a single tax regime is crucial to improve ease of doing business in India.
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Ritesh Agrawal Founder Oyo Rooms
Ajay Bakaya Executive Director, Sarovar Group of Hotels
Harshavardhan Neotia president FICCI
We look forward to working closely with the government in working out the rules which will provide greater clarity with regard to the applicability of this law for aggregators.
The much anticipated passage of the GST bill brings in a new era in fiscal reforms. Tax rates across various states will be uniform. The consumer will benefit from lower taxation, as there will be no tax on tax at different levels.
It is one of the most-awaited reform measures by the industry. It is noteworthy that the principal opposition party has played a constructive role by articulating concerns and would help form base of a robust framework.
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alanda University, India’s first premier institution, established back in the sixth century B.C., has finally been accorded with the prestigious World Heritage Site tag. The central government had proposed inducting Nalanda into the famed list in 2009, and had submitted an application with UNESCO in this regard. Located in the Nalanda district of Bihar, this historic structure consists of several stupas, viharas and temples, and was a major global centre for education and research. Long neglected on the national stage, this fresh development is likely to have a positive impact on footfalls in the region – which happens to be a key tourist draw, especially, for Buddhist visitors coming in from Southeast Asia – and also brings an ancient repository of India’s heritage back into limelight.
Goa eyes coastal circuits; funding under Swadesh Darshan sanctioned, shares MD (Page 8)
tourism investor meet
Nurture startups to address bottlenecks in the tourism sector: Secretary, DIPP (Page 10)
online + technology
Hotels need to be educated to use best mix of scale-based distribution solution (Page 17)
outbound
Korea undertaking phase-wise promotion to overcome lack of awareness: Byungsun Lee (Page 22)
Global player ITB Berlin, the world’s biggest tourism fair, comes together with Cross Section, India’s first mover in B2B travel trade events, and with over 40 years’ exposure in tourism. Together, they create BITB, a B2B with 6 Power Conclaves that bring sharp focus on tourism, senior leadership and serious buying and selling. 3–6 October, 2016. Pragati Maidan, New Delhi
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this issue : august, 201 6
Industry needs more focus on detailed research to make the most of growing footfalls
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n our cover page, in this issue, we have featured June’s performances of the Indian aviation sector. Overall domestic growth and, also, individual airline performances have shown considerable upward tick. The data put forth by Directorate General of Civil Aviation (DGCA) gives a comprehensive insight into best and worst movers, their market-shares and other intricate details. When it comes to consistent and, almost, real-time research, a very good case in point is the automobile sector. In the first day or two of every month, the Automobile Association comes up with nationwide industry figures, drops, ups in sales, market share details and other facets. It is a comprehensive analysis of market trends and allows automobile sector to undertake corrective measures, almost immediately. Taking stock of tourism and availability of data related to hotels and footfalls, we are getting overall tourism figures for a month, along with country-wise performances, and decline or growth in tourism numbers from individual countries. However, we are yet bereft of city-wise and hotel-wise break-down of performances. There is no mechanism in place to tell us how Delhi hotels have fared. How have hotels in the Aerocity done? We have no statistical data coming through, from let us say, Connaught Place hotels. So there is no mechanism to decipher trends in a real time situation, neither cluster-wise, nor city-wise.
Mahesh Sharma
Tourism Minister on promoting Incredible India Campaign
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The perception about India has changed significantly in the last two years with PM Modi visiting a host of countries. So, who else could be the better face for Indian Tourism than our Prime Minister.
Rajiv Nayan Choubey
Secretary, Civil Aviation, GOI on unveiling a new scheme on regional connectivity
Once the subsidies and incentives are finalised and Viability Gap Funding is provided, it is up to the airline operators and entrepreneurs to start operations to these unserved and underutilised airports.
The ministry of tourism comes up with tourism related figures – which is good, but not good enough. The statistical data is so oceanic in nature that it is difficult to carve out actual numbers and trends emerging out of it. Hospitality industry would be keen to know city-wise growth in key segments like growth and ARR in guesthouse accommodation segment, simply because whenever there is a critical alternative accommodation, even that needs to be examined in a fair manner. Now, the bigger question facing us is who would undertake this research and where will this data come from. The first bet would, of course, be FHRAI – now, FHRAI does come out with figures and HVS brings out data for them – but there is no monthly mechanism in place. There must be a monthly mechanism where one of the responsible organizations comes out with latest trends as they unfold. All these issues indicate a dire need for putting in place more research on tourism and related activities – which are independently driven – so that the larger industry gets its hand on data which could have a realistic impact on their businesses. Tourism related data that we have in the public domain, for instance, does not tell us what impact does footfalls in Tirupati have on hotels present there. Again, HVS does come out with some figures, but that is also, too, annually. Therefore, a vacuum does exist that needs urgent attention from the industry.
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Nitin Gadkari
Road Transport and Shipping Minster, GOI talks about creating inland waterways infra to ease traffic on roadways
Several multimodal terminals are being built on this 1620-km route from Varanasi to Kolkata. The one in Varanasi has already been completed. Others are being built in Sahibganj, Kalughat, Ghazipur and Haldia… Development of inland waterways is a big priority for our government.
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Gagan Kumar Dhal
To sum up, we believe for a meaningful road forward for tourism, we need to look into its research foundations and make them more robust, so that as and when the boom in tourism or hospitality kicks in, we are well prepared to make the most of the positive development. Research is fundamental to growth.
Contents Tourism Currents
4. Revamping infra and addressing religious concerns key issues in INTACH’s Hriday foray 4. Kerala announces ‘God’s Own Country 2.0’; slew of new projects unveiled 5. Govt must look into rebates doled by OTAs in larger national interest: Subhash Goyal 6. Rail ministry mulls tourist trains on revenue sharing model with state tourism boards 6. Tamil Nadu pips Goa to become most frequented state by foreign tourists
states
8. Goa eyes coastal circuits; funding under Swadesh Darshan sanctioned, shares MD
niche: heritage
9. Infusing the art of story-telling could help connect products around heritage to masses
FICCi tourism investors Meet
10. Nurture startups to address bottlenecks in the tourism sector: Secretary, DIPP
Tourism Principal Secretary, Odisha on creating a new tourism policy, making it at par with the Industrial Policy Resolution (IPR 2015)
The policy will be formulated on the lines of Kerala, Gujarat and Tamil Nadu tourism policies. It will focus on the growth of tourism, creation of land bank and assistance to private players for development of infrastructure.
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11. MoT to chair taskforce on connectivity; to rope in Rail, NH and Aviation, says Zutshi
20. Mixed infra development aimed at cross-selling a growing trend in hospitality
12. MoT keen on further relaxing realestate classification and CRZ guidelines, says Billa
21. NRAI Report estimates over 20k crore tax revenue from standalone market in 2016
13. Yes Bank-FICCI report highlights need for creating land banks to expedite infra push
outbound : korea
Online + Technology
16 Convenience and affordability fuelling car rental market in India, says Sakshi Vij 17. Hotels need to be educated to use best mix of scale-based distribution solution
hotels + Resorts
18. International airport and convention centre expected to boost Chandigarh’s MICE standing 19. ‘Tajness’ – an operation philosophy at Taj reflects heritage and local ethos 19. AccorHotels partners with AITTC in a bid to strengthen Indian-Australian tourism ties
22. Korea undertaking phase-wise promotion to overcome lack of awareness: Byungsun Lee
outbound : Taiwan
Navin Berry navin@tourismfirst.org senior writer: Shashank Shekhar shashank@tourismfirst.org features editor: Priyaanka Berry priyaanka@tourismfirst.org editor:
23. Taiwan intensifies MICE outreach with publicity of streamlined group visa policy
outbound : dubai
24. With an eye on tapping luxury Indian outbound, Dubai sets sight on 20 million visitors by 2020 25. In a boost to leisure travel, outbound taking to weddings in Dubai: Kulwant Singh
The Last Page
26. Stoplight on Rio: Sports tourism comes to fore as the world celebrates Olympics 2016
Tourismfirst is owned, published and printed by Navin Berry and printed at Anupam Art Printers. B-52, Naraina Phase II, New Delhi. It is published from 36-37, 3rd Floor, Indra Palace, H-Block, Connaught Place, New Delhi – 110 001. Tel: 011-43784444. Total pages 28
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Revamping infra and addressing religious concerns key issues in INTACH’s Hriday foray INTACH has undertaken the challenge of rejuvenating ancient cities of Varanasi, Gaya and Warangal under the centrally driven HRIDAY program. Addressing infra loopholes aside, it is quietly waging a battle against prevalent social and religious norms that are making this foray a complex exercise By Shashank Shekhar
A
jmer, Varanasi, Amravathi, Amritsar, Badami, Dwarka, Gaya, Kanchipuram, Mathura, Puri, Velankanni and Warangal have been shortlisted by the Ministry of Urban Development (MoUD) for a project aimed at rejuvenation of their age-old heritage by developing requisite infrastructure. A time-bound project, expected to be wrapped up in 27 months, has been sanctioned a sum of INR 500 crores. Addressing core infrastructural woes of these cities, the program seeks development of water supply, sanitation, drainage, waste management, approach roads, footpaths, street lights, tourist conveniences, electricity wiring, landscaping and similar citizen services. It also aims at enhancing local capacity for inclusive heritage-based industry and developing effective linkages between tourism and cultural facilities, besides conservation of natural and built heritage. Perhaps, in a first in the country, the program also plans on development and promotion of core tangible economic activities to enhance avenues of livelihoods amongst stakeholders, which includes necessary skill development amongst them includ-
ing making public spaces accessible and developing cultural spaces. INTACH has been selected as ‘city anchor’ to guide development and rejuvenation program in three of these twelve above-mentioned cities. It all began with a workshop as INTACH, in a commendable initiative, in the early 2015, invited heads of Municipal bodies of all twelve cities, in the fray, for a deliberation on the suggested way forward on the makeover. The discussion revolved around finding bottlenecks and issues that affected the heritage landscape of these cities. Elaborate plans were drawn on charting a way forward, recalled a senior INTACH official. “Ministry of Urban Development did not have a road-map on how they wanted to move about things. JNNURM had certain heritage components in it, enabling the ministry to derive their own learning, as well,” she said. “INTACH intends to handhold the ministry in implementing programs specified under PM’s pet project,” she added. Challenges and bottlenecks in implementing the project Infrastructural overhaul in these ancient cities, especially in Gaya, Varanasi and Warangal are expected to be challenging. Given the state of physical infrastructure,
a way forward on the physical restoration part is a key conundrum for experts. Noting that the infrastructure had not been upgraded for years, the official shared “Even to introduce infrastructure sensitively would be extremely difficult. Streets are narrow; lighting needs to be done. The physical execution of strategies is a big challenge." What makes the challenging all the more intriguing is the thin line between private and public heritage and the absence of sound policies that are yet to articulate them in a coherent manner. “A lot of heritage is actually for public consumption but under private domain. Houses around ghats of Ganges could be privately owned but they add to the visual aesthetics of the place. When it comes to government funding, they are many a times unable to fund private buildings and parties. We are saying that these are private buildings in public realm. There should be certain policies where in some funding mechanisms could be worked out,” another top official detailed. INTACH had lobbied for a reform in the process, but it seems that the moderate success of JNNRUM reforms made the government deliberately go slow on the agenda.
“I believe, that learning from the experiences of this pilot project, it may look at certain issues more critically,” he said. “It is, however, important to understand that much of policies and urban guidelines comes under the purview of state subject and therefore, INTACH, as city anchor, has been pushing for listing of buildings and notifying their owners. But it has been limited,” we were told. Complexities of this undertaking is not merely limited to infrastructural augmentation, but also religious and customary beliefs that clash with this drive. “In Gaya for instance, the crematorium is very close to the bathing ghat. The government has been wanting to shift it a just a 100-200 odd metres away. They have even made alternate arrangements and requisite infra is in place, but no body uses it,” he explained. “People and even local pandas argue about the ongoing custom since times immemorial. Therefore, cultural norms come as a hindrance,” he added. On whether there was a homogeneity in problems, he noted that each city had its own specific set of issues, and there were similar problems, as well. “It is a mix of both. We found Warangal much better equipped to deal with these issues.
Their municipality and development authorities were in quite a close cooperation with us,” he shared. Adding that Warangal had built upon HRIDAY and took it to SMART City, he said that Varanasi, on the other hand, was a different experience altogether. “There are multiple agencies and coordination becomes daunting,” he said. Some have argued that there has been an overlap in national programs, and the objectives of HRIDAY had similar overtones as some of the other declared projects by the present government. But experts believe that the government wanted to create convergence. “Therefore, tourism infra could be addressed through PRASAD; the heritage conservation could be done through HRIDAY. Similarly, Urban infrastructure and transport woes could be addressed through AMRIT and larger management could be done through SMART CITIES. I think that is what the government wishes to achieve,” he said. Suggesting a way forward, he stated that the need was to inculcate a larger vision for the city and not get entangled in small projects. “I think, that is what precisely happened in Gaya and Varanasi,” he rued.
Kerala announces ‘God’s Own Country 2.0’; slew of new projects unveiled Kerala tourism department, in a media outreach event, announced a new media campaign centred around state’s tranquil backwaters. On radar is also the introduction of new offerings by rejuvenating ancient Spice trade route and port city of Muziris. By Shashank Shekhar
K
erala tourism department has embarked upon an audacious new journey to further strengthen state’s tourism pegs and infuse new elements in its repertoire. In a tourism promotion and media outreach event held recently in the capital, Kerala tourism department unveiled a range of new initiatives, both, in augmenting offerings and concretizing outreach into key domestic and international markets. One of the big takeaways of the outreach was the announcement of the launch of a newer version of perhaps India’s best tourism media outreach campaign. Kerala’s slogan of ‘God’s Own Country’ had been able to position the state in a unique light, creating enough buzz through the years to have catapulted it as one of the most visited markets in the country. The tourism department showcased a new media advertisement that highlighted state’s backwaters as the main attraction for tourists coming into the state. State tourism official, speaking to Tourism-
First, argued that although the ‘God’s Own Country’ campaign had gained enough goodwill and equity in domestic and international markets, the tourism board felt necessary to keep evolving with changing times. Dovetailing this brand push was coinciding with the probability of developing transport options including charter flights and trains and tourists’ bogies in trains from major markets in India, he said. “The brand tourism of Kerala is on the threshold of another major boost,” he added. The move is aimed at creating awareness about its lesser, known and, commercially active destinations. Also, through this foray, Kerala tourism board is keen on tapping some high-potential markets like Europe, Middle-east in the international arena, and North and northeast of India, domestically. Besides, the state has also launched a plethora of initiatives. Some of the more insightful ones include time-bound restoration of the long-pending project of ancient Muziris Port. First of its kind in the country, aimed at restoring the historical and cultural significance of the port of Muziris, the
project constitutes a series of 27 museums spread across the heritage region, between them showcasing maritime trade, erstwhile lifestyle and way of life. Muziris was an ancient spice city with flourishing trade relations with Romans, Greeks and, later, Arabs. Another important initiative that seeks to rejuvenate and revive the long lost Spice Route – which linked India’s South western coast with European nations – has been set in place to promote the centuries old route. The Kerala tourism department has received a shot in the arm with the United Nations World Tourism Organization (UNWTO) pledging assistance to this commendable undertaking. Much of state’s tourism offerings are centred around its rich flora and fauna, famed backwaters and tranquillity that sets it apart. However, in a bid to further expand on these lines to diversify offerings, the state tourism would be launching a nature-based adventure holiday program. Terming it ECO-Adventure, the spokesperson underlined that the objective was to use key tourism genres of wildlife, beaches, Hill stations and backwaters to leverage
them for adventure related activities. Trekking, camping, rock-climbing, Junglesafari, kayaking and paragliding, among others, are expected to be core activities to be offered to tourists in this segment. An overhaul in offerings and outreach from the state comes at the back of an impressive performance in attracting travellers to its shores. Numbers testify the success that the state has garnered in recent years. As per state’s official figures on footfalls, foreign tourist arrivals in Kerala in 2015 stood at 9,77,479 – which is an impressive growth of 5.86 percent from the previous year’s figure of 9,23,366. Domestic tourism segment has also witnessed an upward tick. Domestic numbers have soared to 1,24,65,571 from 1,16,95,411, recording an increase of 6.59 percent from the previous year. Interestingly, some of Kerala’s success in its outreach must be given to its impressive presence in the virtual world. With over 1.2 million Facebook followers, 69,400 Twitter followers and some 6000-plus Instagram followers, the state has been able to create a substantial footprint in the online domain.
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Govt must look into rebates doled by OTAs in larger national interest: Subhash Goyal Tamil Nadu’s growing stature as the gateway to Sri Lanka, Singapore and Malaysia has helped it pip Goa to become the most frequented destination by foreign tourists in 2015, reasons Subhash Goyal, Chairman - STIC Travel Group. In a candid interview to TF, the veteran industry insider shares his thoughts on the future of brick-and-mortar tour operators, impact of new Civil Aviation Policy on regional connectivity and tourism, and a lot more.
By TF Bureau
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hare with us some latest trends in inbound tourism? Is global political volatility impacting inbound numbers? A spate of terror attacks in Europe, unrest in the valley and impact of Brexit on global economy have dimmed prospects. Your take.
The latest trend shows a 7.3% growth, but unfortunately, this growth consists of mostly business and VFR (Visiting Friends and Relatives) traffic. Leisure traffic, in fact, has gone down because of terrorism and economic slowdown in Europe and the impact of Brexit on the European economy mainly UK which is one of the largest markets for India. Even though the Ministry figures show an increase in Inbound tourism but the actual fact is that it is a notional increase and leisure
ism, Tamil Nadu has piped Goa to become the most frequented state by foreign tourists. What would you attribute this to? Overall numbers in the Northeast have dipped, too. Your insight on the same.
It is becoming harder for brick-and-mortar travel agencies to survive because they cannot compete with companies that buy hotel room for `2,000 and sell it for `1,000. These OTAs have millions of dollars of backing foreign funds which are available to foreign companies at 1 or 2 percent, whereas Indian companies get funds at 12-14 percent, and therefore they cannot compete with foreign companies. I personally feel just like the East India Company came and ruled India, this type of funding is going to kill the Indian industry. It will be ruled by foreign companies and Indian tour operators and travel agents will not be able to survive.
Tamil Nadu shows an increase in Tourism for two reasons. Firstly, it is the gateway for traffic originating from Sri Lanka, Singapore, Malaysia etc. and again this traffic is mostly VFR (Visiting Friends & Relatives) and is not leisure tourists. Whereas in Goa 90% of the traffic is leisure and last year more than thousand tourist charters were cancelled because of the sudden increase in the tariff and deposits being asked by the Airport Authority, and
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☛ Despite the notion that overall inbound numbers have grown, leisure travel has not gone up. Most hotels are registering low occupancy. ☛ Cancellation of tourist charters coming to Goa has resulted in tourists heading for Sri Lanka, Maldives and other beach resort destinations. tourism has not gone up as most of the hotels are registering low occupancy, and people who are coming to India are mostly NRIs who are coming to visit friends and relatives, or Indian origin investors who have been motivated by our Prime Minister to invest in India.
According to recent statistics shared by the Ministry of Tour-
some law and order problems in the state. This traffic has been diverted to Sri Lanka, Maldives and other nearby beach resorts. The reason why North East dipped was again some law and order problems and also elections – where many people avoided going to the Northeast.
What is your take on some of
the recent developments on the policy front? The government has unveiled a new Civil Aviation Policy that has considerably addressed some major bottlenecks. What are some areas that you believe remain unaddressed and can be systematically taken up? Firstly, I congratulate the present government and the minister in
particular for taking out a clear cut Aviation Policy which was pending for so many years. By allowing regional connectivity to activate unutilized airports is a step in the right direction. The policy also talks about giving traffic rights to countries which are more than 5000 kms. away from India to operate as many flights as they want to in any of the designated international airports subject to their reciprocally, giving the same rights to the designated Indian carrier. What I have not been able to understand is that the Civil Aviation Minister is fixing the rates for operating regional flights but the demand of the industry is to fix the upper limit on airfare for schedule airlines. The fare should not be
First ITB China in Shanghai from 10-12 May in 2017
more than 100% of their direct operating cost from point A to point B, so that tour operators are able to plan their programme and also a poor person who decides to travel at the last minute, due to medical emergencies, should be able to afford the air fares.
How is the regular brickand-mortar travel agent coping with the muscle flexing of OTAs that are backed by millions of dollars of investments? Is this a race that an agent is destined to lose?
It is becoming harder for brick-and-mortar travel agencies to survive because they cannot compete with companies that buy hotel room for INR 2000 and sell it for INR 1000. These OTAs have millions of dollars of backing foreign funds which are available to foreign companies at 1 or 2 percent, whereas Indian companies get funds at 12-14 percent, and therefore they cannot compete with foreign companies, particularly it has become impossible for small and medium tour operators to survive and there is no way they can compete with these OTAs. I personally feel just like the East India Company came and ruled India, this type of funding is going to kill the Indian industry. It will be ruled by foreign companies and Indian tour operators and travel agents will not be able to survive. It is high time that the government should intervene on these unethical practices of OTAs in the larger national interest.
The maiden edition of Serendipity Arts Festival to be held in Goa
Jane Sun to be the first confirmed keynote speaker. Special discounts for exhibitors who register this summer.
J
ane Sun, CoPresident and COO of Ctrip will be the keynote speaker at the official opening of the first ITB China, which will take place in May 2017. This was announced by ITB China’s organiser Messe Berlin, and by Ctrip, one of China’s leading online travel agencies. Commenting On the development, Jane Sun said “We are very excited about ITB China and happy to be part of it right from the first event in 2017. We are confident that the ITB China will be a great opportunity for Ctrip to enhance its business relations with global destinations and travel service suppliers.” Ctrip is a leading provider of travel services including accommodation reservation, transportation ticketing, packaged tours and corporate travel management in China. The company last attracted global attention in 2015 when it acquired a stake of Qunar, its rival company, and thereby strengthened its leadership in China's online travel space. The first ITB China will take place from 10 to 12 May 2017 at the Shanghai World Expo Exhibition and Conference Center. The event, an international offshoot of one of Messe Berlin’s most successful trade fairs, will take place annually there. Its co-organiser is TravelDaily China, a lead-
ing online news portal and organiser of travel industry conferences in Asia’s largest country.
Trade fair preparations well under way
Interest in ITB China is high. Leading Chinese travel industry companies including Ctrip, Alittrip, Utour, Caissa and many others have already confirmed they will be sending their buyers to the first event in mid-May 2017. Exhibitors are also pressing ahead with preparations. visitBerlin – the Marketing agency of Germany’s capital, was one of the first exhibitors to confirm its participation. Ralf Ostendorf, director of Market Management at visitBerlin noted “Naturally, visitBerlin is delighted that as an offshoot of a Berlin event ITB China will be taking place in Shanghai. The Chinese market is very important for us. Last year in Berlin the number of overnights by Chinese visitors rose by 26.6 per cent, and the prospects for more business are good. We are already looking forward to establishing contacts in Shanghai and to taking part in the first ITB China.” Summer special discounts are available until late September Exhibitors who decide early to attend ITB China can take advantage of a 10 per cent discount on stand fees if they register no later than 30 September 2016.
Serendipity Arts Trust, a Munjal initiative has recently announced Serendipity Arts Festival, expected to be India’s premier, curated, interdisciplinary arts festival, held in Goa from December 16 – 23, 2016. To be held with aims to encouraging the evolving arts community, promoting a culture of patronage and creating value for the arts. The festival will be the first of its kind in India to celebrate the diversity in art with a special focus on performing, visual, and culinary arts. Sunil Kant Munjal, Chairman, Hero Corporate Service, commented “It is a unique social responsibility project, which will promote education, spread awareness, empower artists, and reassert value in the arts. The festival will also promote arts education and revive interdisciplinary arts through collaborations between organisations, artists and audiences.” Also reacting to the development, Preeta Singh, Festival Director said, “We are thrilled to announce the first edition of the Serendipity Arts Festival, which we believe will change the way art is consumed in India. We understand the eminent need to break the conventional compartmentalisation of art in India, wherein every discipline is evolving in isolation.”
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Rail ministry mulls tourist trains on revenue sharing model with state tourism boards After having tasted considerable success with the launch of semi-luxury tourist trains, ministry is contemplating a joint venture to operate tourist trains on revenue sharing model. Also, it aims to de-congest platforms by bringing in multipurpose stalls and review policies related to land usage and station development to shore up finances for injecting fresh infrastructure. By TF Bureau
T
he Indian railways has been in news for good reasons, especially in the past two years. In a constant attempt to ramp up reeling infrastructure to better passenger experience, it has undertaken a host of measures, ranging from running tourist trains in dedicated circuits to employing technology for realtime redressal of grievances. In a welcome development that could further boost travel and tourism, the ministry is now keen on leveraging from a symbiotic partnership with state governments. Top sources in the ministry shared with TF that ministry was in consultation with various state tourism boards and governments and examining the feasibility of operating tourist trains on revenue sharing model. Having tasted success with the launch of various tourist trains, the ministry of railways is keen to rope in states to launch more such ventures. Railways has also introduced a train covering ‘Tiger circuit’ which cover National Park in Bandhavgarh and Tiger reserve in Kanha and Jabalpur. Covering important religious and tourist destinations, a theme train named Bharat Darshan has also been flagged off. It is worth mentioning that ministry had recently launched semi-luxury trains covering top pilgrim destinations in north and east India – which had received considerable response. All these tourist trains are being offered with attractive packages that include accommodation, local transfers and meals. Impressed by the success of these
ventures, ministry of external affairs has requested ministry of railways to run a luxury train, covering destinations of interest to Buddhist pilgrims. It is being pushed with an eye on high-spending Buddhist tourists coming from South and southeast Asian countries. Railways has also planned to rake up revenue by constructing theme-based restaurants from old ‘Palace on Wheels’ coaches at historically important properties under its possession. Also, taking cue from growing demand
Structured response to consumer complaints, time-bound outreach on Twitter and Facebook aside, “App based ticket booking and induction of services like e-bedroll are furthering lending weight to our idea of providing customers with convenience at very competitive prices,” the senior official said. As the ministry plugs in infrastructure related plugholes, it is also mulling structural overhaul of policies related to land usage and station development in order to facilitate better financial management. Railways needs billions of dollars’ worth of investments to cope up with its ambitious expansion plans. Aligning itself with national program on cleanliness, ‘Swaccha Bharat Abhiyaan’, railways was ensuring that special emphasis was being laid on cleanliness in and around the station premises, the senior ministry official shared. The ministry has allocated a sum of `500 crore for the purpose. An extension of this effort was visible with the launch of India’s first truly ‘Green Corridor’ in Tamil Nadu. This 114 kilometre stretch between Rameshwaram and Manamadurai would have zero-discharge of human waste. The ministry plans to emulate it on the Jammu-Katra route before the end of March, next year. The ministry has recently passed an order allowing multipurpose stalls. It is expected that famed UK based chain of shop – WH SMITH – could also make a debut on Indian platforms by the end of the year. Tourists can expect books, medicines and other items under one roof.
☛ Ministry of External Affairs has requested Railways to run a luxury train covering destinations of interest to Buddhist pilgrims. ☛ Railways has launched India’s first truly ‘Green Corridor’ between Rameshwaram and Manamadurai. It would have zerodischarge of human waste. ☛ Railways has also planned constructing theme-based restaurants from old ‘Palace on Wheels’ coaches at historically important properties under its possession.
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for an expanded bouquet of offerings in the menu, ministry has decided to leave catering related matters to IRCTC. IRCTC is in process of chalking out more vendors – which include online service providers offering food-delivery on seat, and serving ready-to-eat meals from branded vendors like Haldirams. Further strengthening its outreach for quick response, it has launched ‘clean my train’ app which aims at assisting customers connect to railways for any hygiene related issue in the train compartment.
IRCTC and Manipur govt. join hands to develop new tourism products In an important development impacting a North-eastern state, Indian railways subsidiary arm – IRCTC – and the government of Manipur have come together to boost travel, tourism and hospitality in the state by identifying areas of mutual cooperation. The joint venture comes at a time when the central government has recently announced a dedicated airline service connecting the seven Northeastern sister states. The recently inked Memorandum of Understanding (MoU) seeks “joint use of their capabilities and facilities” to create enhanced tourism and hospitality infrastructure in the state. The coming together of IRCTC and Manipur state government is aimed at using joint capabilities to create new tourism products, opening and managing various catering and hospitality outlets, budget hotels and handicrafts shops at railway as well as non-railway locations. Some of the important areas identified for mutual cooperation include developing Self-Help Group (SHG), installation of drinking water vending machines, use of ‘Rail Neer’ – IRCTC’s packaged drinking water – and development of lounges and greeting areas for travellers in the railway premises. The MoU, signed late last week, was initialled by IRCTC Chairman and Managing Director A K Manocha and Secretary, Tourism, Govt. of Manipur, Nidhi Mani Tripathi.
Tamil Nadu pips Goa to become most frequented state by foreign tourists
oing by the numbers released by the Ministry of Tourism, 2015 saw some major turn-around in state ranking in attracting foreign footfalls. Contrary to popular wisdom, neither Goa, nor Kerala is the most visited destination by foreign tourists. In a stunning development, Tamil Nadu
has piped Goa to become the number one state in the country. What makes this development even more extraordinary is the fact that Chennai was devastated by floods that caused heavy damage to its infrastructure and revenue generation. As per the data released by the MoT, a total of twenty million
foreign visitors came to India’s shore – which is a slight improvement of 4.4 percent compared to the previous year. Tamil Nadu catered to a whopping twenty percent of the total international inbound, clocking an impressive figure of 4.68 million international visitors. Maharashtra followed with 4.41 million tourists, and Uttar Pradesh, probably single-handedly because of the Taj Mahal, raked up 3.1 million footfalls. West Bengal, Kerala, Rajasthan, Bihar and Karnataka, respectively, follow these three top performers. Incidentally, top ten states attracting international footfalls account for a massive 88 percent of nation’s total international inbound. Many tourism experts believe that Tamil Nadu’s ascent as the Numero Uno state is intrinsically linked to its thriving automobile and service industry. Also, the state leads in attracting medical tourists from distant shores who swarm state’s healthcare facilities in search of quality medical treatment at affordable prices.
While Tamil Nadu has given India’s tourism industry plenty to cheer, some of the usually high-performing states like Jammu and Kashmir have slowed down considerably. Take a look at this: the state registered a steep fall in numbers, as only 58,000 tourists visited the valley in 2015 – which is a decline of 32 percent from the previous year. Northeast, too, despite sincere attempts by the government to increase connectivity and infrastructure, has witnessed a slowdown in footfalls. Some of the other states that registered a southward movement include Andaman and Nicobar Islands, Arunachal Pradesh, Chhattisgarh, Haryana, Meghalaya, Mizoram, Odisha, Punjab, Rajasthan and Sikkim. Much of India’s growth in overall international numbers come from neighbouring countries like Bangladesh, followed by the United States, United Kingdom and Malaysia. Some other key markets for India in 2015 included Sri Lanka, China, Japan, Canada, Germany, Australia and France.
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Goa eyes coastal circuits; funding under Swadesh Darshan sanctioned, shares MD Seeking constant rejuvenation of its tourism and infrastructural offerings, Goa Tourism Development Corporation (GTDC) has rolled out a number of projects. From CCTV surveillance at key tourist beaches, infrastructure projects required at tourist spots like beaches and coastal areas, to tying up with the Bird Institute of Goa based in Panjim to develop bird trails in the state, the list of its engagements simply go on. Nikhil Desai, Managing Director, GTDC, in a detailed interview, shares latest trends, current engagements and much more. By Shashank Shekhar
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hare with us some latest trends in footfalls. How have been the first six months in terms of numbers? What have been your key markets this year, both, international and domestic?
We aim to focus and promote Goa across states and hence each state is a key market for us. The prime international source markets for Goa include Russia, UK, Germany, France, the Middle-East and South-East Asia. The E-Tourist Visa regime introduced by the central government – which has now extended ETV benefits to 113 countries has increased tourist footfalls in the state. Year by year, we have been receiving rising number of tourists from across the globe. Goa is now seen as a 365-day destination. The perception of Goa as a half yearly destination has changed into an all-season must visit destination. Goa Tourism and Goa Tourism Development Corporation have been working rigorously to make the state unique in its own dynamic way. We have been working round the clock to add new avenues to the state. We have recently lunched various new tourist attractions such as the Hot Air Balloon, Amphibious vessels, Sea Planes and Heli-Joy Rides. Hot Air balloon and Heli-rides have received a good response. We are all geared-up to start operations of Sea Planes and Duck Boats soon. All these activities showcase Goa’s hidden treasures such as its beaches, hinterlands, temples, churches and other historical sites also giving tourists an opportunity to explore the rich geography of the state via the sky and the waterways. Apart from these interesting projects, we also have ropeway, hop- on hop-off bus services, bungee jumping, para-gliding and horse riding activities in the pipeline which will soon give a boost to the tourism industry. White- Water rafting and trekking expeditions have been our major attraction during the monsoons which attracts a large number of tourists to the state.
What has been the overall impact of global volatility on tourism prospects in the state? With Britain out of the EU, incidents in Germany and elsewhere and the Middle-east in doldrums, it sure is not the best time. How is tourism in
We have a state-of-the-art convention center proposed at Farmagudi which will help boost MICE tourism. GTDC and Goa Tourism are engaged in working on infrastructure projects which are required at tourist spots like beaches and coastal areas. Special coastal circuits have been drawn up and central funding under the Swadesh Darshan has been sanctioned. Toilets, parking facilities, illumination, drinking water are some others. CCTV’s will be installed in some of the most frequent beaches and touristic locations of Goa such as in the Baga Parking Lot, Anjuna and Vagator Beach.
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the state coping up with global factors that it has little control over?
It will definitely affect the state in some manner but we shall continue to promote tourism in the state. We have been receiving a good response from the ETV facility and we hope to get a continued response in the coming season. Goa is also one of the safest states in the country. We have tight security on and off the coastal areas and tourist locations. We see a lot of women travellers visiting Goa. GTDC has also introduced a women taxi service which safeguards and secures women travelers in Goa. The state has also been ranked sixth in World's Best Night Life Cities listed by National Geographic which indicates Goa to be a safe destination.
News reports suggest that the state government would be installing CCTV cameras on more frequented beaches. Take us through this development. What are new facilities are being put in place to enhance the tourism experience of visitors? In an exercise to augment infrastructure for tourism, GTDC and Goa Tourism have been working closely with experts, consult-
ants and private entrepreneurs. We have a state-of-the-art convention center proposed at Farmagudi which will help boost MICE tourism. GTDC and Goa Tourism are engaged in working on infrastructure projects which are required at tourist spots like beaches and coastal areas. Special coastal circuits have been drawn up and central funding under the Swadesh Darshan has been sanctioned. Toilets, parking facilities, illumination, drinking water are some others. CCTV’s will be installed in some of the most frequent beaches and touristic locations of Goa such as in the Baga Parking Lot, Anjuna and Vagator Beach. A multi-level car parking project in Panjim, a refurbished Santa Monica cruise boat jetty, are two major projects set to be launched shortly. Other new ones like a wellness resort, banqueting facilities and high-end accommodation are in the offing.
Quite a few infra related projects have been initiated in the past months like the Marina in Panjim, a Golf-course, a convention center in Mapusa and a new airport at Mopa. When are they expected to be completed? It is a fact that marinas and a golf course
Gujarat tourism takes to social media; advertises ‘White water’ as Sardar Sarovar Dam overflows
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urning a crisis into opportunity for higher number of footfalls into the state, Gujarat tourism board has taken to social media sites, urging visitors to witness ‘White water’ at the Sardar Sarovar Dam. This unique and praiseworthy outreach comes at a time when, swelled by incessant rains, Narmada River has made the Sardar Sarovar Dam overflow for the first time since check-gates were installed in 2014 by the state government. According to the officials of the state tourism development board, adequate safety measures have been put into place to handle any potential rush of visitors.
has also been proposed but are projects not directly connected with GTDC and Goa Tourism’s infrastructure projects. No doubt such projects will up the profile of tourism in the state and bring high end tourists. GTDC is working rigorously in initiating and upgrading a number of tourist infrastructures in the state. Goa Tourism will soon launch a convention center and an Institution of Hotel Management giving augmenting skilled workforce in the state. Other infrastructure projects like the Fort Tirakol has been revamped into a Heritage Hotel which offers tourists a perfect getaway set against the backdrop of picturesque Tiracol and heritage Goa Tourism is also revamping the Old Central Jail at Aguada into a museum which will be one of the major tourist attractions in the state. Goa Tourism along with GTDC will continue to work hard and make the state better and beautiful by each passing day. As far as Golf, it is a relatively a new sports activity in Goa and confined to green patches at starred and luxury resorts. The Mopa Airport will be completed in 2020. We have received a very good response from leading bidders. The new airport at Mopa will be a major enhancement in terms of tourist arrivals in the state.
Share with us some key initiatives undertaken by the state tourism board to boost Green Tourism?
Goa is surrounded with lush-greenery and thus attracts large numbers especially during the monsoons. Goa is the best place to visit during the monsoons as it has the best picturesque when nature flourishes, the rain brings refreshment and romance, and Goa takes on a more traditional flavour. It also offers a plethora of unique experiences and activities. GTDC organizes white water rafting activity and trekking expeditions in a bid to explore state’s hidden treasures that come alive during the monsoons. The experience of rafting in Goa is simply amazing and an exceptionally thrilling activity that one cannot miss. The state also has great potential for bird-watching tourism than is currently being realized where bird watching is a potentially lucrative and growing market. In a bid to encourage Avitourism in Goa, we have been promoting the state as a leading destination for Ornithologists and bird lovers from all over the world. Goa Tourism recently tied up with the Bird Institute of Goa based in Panjim, which is an autonomous society to promote ornithological interest in the State. The Bird Institute helps Goa Tourism and GTDC in developing bird trails in the State, and provides information to bird lovers on its website. This association has added feathers to the bird watching engagements with the publication of a photographic field guide on the Birds of Goa by Bikram Grewal and Savio Fonseca. We plan to make Avitourism more interesting with the introduction of guides on bird trails from the forthcoming tourism season. Goa also has various interesting locations which are must-visit destination during the monsoons which includes the Tropical and Sahakari Spice Plantations in Ponda. NV Eco Farm, a popular tourist location surrounded with lush greenery and activities is truly the most preferred spot to explore during the monsoons.
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Photo courtesy India City Walks
Infusing the art of story-telling could help connect products around heritage to masses India’s diverse heritage, perhaps, does not garner the adulation by communities and travellers, as it ought to have. An important reason for this shortfall is the absence of story-telling in pitching a product for tourists, feels Sachin Bansal, Chief Explorer, India City Walks. His guided tours to bylanes of India’s old cities, with skilled guides and customised rickshaws in offering, are helping travellers and communities visit heritage in a refreshingly new light.
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ow did this idea come about? Heritage tour in Old-Delhi as a concept.
I come with 18 years of international experience, having worked with major MNCs world over. I always thought India had so many stories, and when people visited India, they used to ask me about possible activities to engage into. I thought that we did not have story-telling activities here in India. Although we do have big festivals now, but there is a dearth of activities which connects to masses. So, we started the concept of ‘Delhi Walks’ in 2010 which was my pilot project to showcase Delhi to larger audiences. And then in 2012, we started with ‘India City Walks’ across cities and in past years we have won many accolades, and introduced many products. We do focus on art, heritage, architecture and food. We do not come in as a full-fledged tour company. We want to plug ourselves with big companies so that they have more interesting activities and engagements to offer to their clientele. We attend to FITs, individuals, CSR, NGOs and school and college going students. That aside, we also encourage heritage preservation. We have campaigns like ‘My Heritage My Neighbourhood’ which runs with government institutions like Delhi Tourism.
What are some other cities, apart from Delhi, in which you have ventured post 2010?
We have started tours in Agra and Jaipur which is the ‘Golden Triangle’ for us. We work in Lucknow and Aurangabad. We have roped in a bit of Mumbai in an experiential way. We took our time to create products and pilot them. Now we just need to replicate it. Importantly, we also need to develop skills to understand heritage. We simply
So, are your primary clientele high-spending tourists. Are you roping in only five star and branded properties?
do not have the skills to understand what heritage is. Also, as a company, we are not tour-operators and want to maintain that distinction.
No. We have walks that cost `300, too. And it goes up to `10,000. The difference in pricing varies majorly on inclusions and exclusions of facilities during the selected itinerary. It is purely based on the quantum of service that a consumer wants. If someone needs a car with the package, the cost goes up accordingly. We also closely work with Delhi Tourism and have several itineraries for masses. There are customised itineraries that we curate, depending on preferences of customers.
But there is a thin-line between being a touroperator and conserving heritage, when you are also in a commercial space aimed at catering to tourists. Please elaborate. You distinguish between the two by curating an experience that plugs in to a particular itinerary, and doing the whole itinerary. If some tourists want to undertake a Rickshaw tour, although anybody can do it, we have developed our own customised Rikshaws, travelling on which is an experience in itself.
Sachin Bansal Chief Explorer, India City Walks
What is so special about it? How do you create a unique experience?
You have to be a part of the guided tour to experience it first-hand. It is difficult to describe it in words. The effort that has gone in creating skilled drivers and the experience of cruising the bylanes of Old-Delhi in a customized Rickshaw has its own charm. In my opinion, luxury and experience are misused words in India. Plain talk about ‘experience’ is not right, unless one is offered to the traveller. So that is where you draw the line as we are not a packaged tour.
How is your outreach happening? You must have roped in hotels in your endeavour. Take us through that. I have had plenty of experience in working in different set of international corporations. Outreach is
Economics and governance have to work in certain fashion. I would not say that we are weak at story-telling, but we are too diverse. There are niches involved. If you are talking about Ayurveda, it has a different story; if you have to talk about Buddha, there is a different story; similarly, Mughal architecture has a different story. We have best of brains to take this forward, but the challenge is to develop them into products.
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something we play on. Much of it stems out of personal engagement, and training people and talking to them. It is all about becoming a visiting faculty and talking about it. Word has to go up. Social media is one aspect, but again, as I said, experience and tours are two different perspectives. And when I say larger itinerary, first-time travellers to India who put up in a hotel are communicated through integration with hotels. We are integrated with travel agents, too.
Tell us a little bit about your consumer profile. Are most of your clientele foreign visitors?
I differ from the idea, now. I also thought so when I started with this. Now, I think, sixty percent of my clientele are residents and domestic travellers. Also inter-state travellers who are coming in with special interests, ideas and plans. We have overcome the challenge of showcasing a Delhi resident his city from our eyes.
It is visible that you have been very picky in choosing destinations. You are working in Lucknow, Aurangabad and, of course, in Delhi. From an industry perspective, would not this venture be a great asset, to say, the Northeast?
I am very keen on Northeast and have already developed requisite products. My major problem coming over there is that the local youth
do not want to live there. This is my personal experience. This argument has nothing to do with socio-economic-cultural perspective. I want to create an aspiration out there. I would be glad to take my plans forward, provided we are in possession of requisite funds. And that is why I said that there is a lot of skill management that needs to be imparted in the country. It is important to realise that as an entrepreneur, I need to make profits to be able to sustain my venture.
The crux of your undertaking is based on ‘story-telling’. India, too, needs to infuse storytelling into its outreach. Do you believe that it is the way forward and perhaps the government could take a cue from young breed of entrepreneurs who have successfully averted entangling themselves in a ratrace for numbers and statistical jugglery?
Economics and governance have to work in certain fashion. I would not say that we are weak at story-telling, but we are too diverse. There are niches involved. If you are talking about Ayurveda, it has a different story; if you have to talk about Buddha, there is a different story; similarly, Mughal architecture has a different story. We have best of brains to take this forward, but the challenge is to develop them into products. Telling a story is an important emotion which has to be felt by the client. And stories have to be vetted. That is how we differentiate ourselves from others. All our content is researched; people who are informing audiences are well-versed and educated, and it becomes a process. The government is doing a fair bit on its part with the launch of programs like HRIDAY and PRASAD. Everything is coming up in a big way and this is where we would like better integration in the process and promote this undertaking.
‘Swadesh Darshan’ scheme gets a shot in the arm with over 2000 crores allocation for 25 projects
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he Swadesh Darshan scheme, launched in January last year, has received a substantial allocation of `2,048 crores by the Ministry of Tourism. The project, rolled out by the government with an objective to develop theme-based tourist circuits, has been sanctioned the sum for completion of 25 projects spread across India’s twenty-one states
and Union Territories. Meanwhile, continuing with special focus on the Northeast, Modi government has allocated `821 crores, sanctioning nine projects while three projects worth `282 crores have been approved for tribal areas in Nagaland, Chhattisgarh and Telangana. Ministry of Tourism has released an amount
of `403 crores to states and Union Territories for projects which have already been approved. Some of the states and UTs for which projects have been sanctioned under the scheme include Jammu and Kashmir, Uttrakhand, Rajasthan, Maharashtra, Kerala, Puducherry, Andhra Pradesh, Telangana, Madhya Pradesh, Chhattisgarh and Bihar.
The government has identified thirteen thematic circuits for development under the ‘Swadesh Darshan’ Scheme. They include North-east India circuit, Buddhist Circuit, Himalayan Circuit, Krishna Circuit, Desert Circuit, Tribal Circuit, Eco Circuit, Wildlife Circuit, Rural Circuit, Spiritual Circuit, Ramayana Circuit and Heritage Circuit.
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Nurture startups to address bottlenecks in the tourism sector: Secretary, DIPP Ramesh Abhishek, Secretary, DIPP, asked industry and investors to nurture India’s emerging start-up culture to better address bottlenecks and lacunae staring nation’s tourism sector. He also outlined an array of steps undertaken by his department to facilitate ‘ease of doing business’ which included an elaborate 340-point Action Plan for states to muscle up investments.
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amesh Abhishek, secretary, DIPP minced no words when he said that India, collectively, as a nation had failed to realise tourism’s potential in creating jobs for the economy. He spoke on the importance of tourism in creating jobs and supporting country’s GDP stating that the potential India had, as a nation, was absolutely tremendous. Stressing that time was ripe for taking decisions that were going to have far reaching consequences, he said “adopt policies that help us to realise the true potential of this sector. The advantages that our country has, for tourism development, is well-known.” Delays and Noting that the launch consequent cost of the e-visa regime incurred on operations was an important step of importers and exporters is behind forward on the policy us. There is an front – which was already online system in making a visible impact place – where all six on footfalls and business main coordinating inflows, he said “much is authorities like Food being done, but it also reSafety Authority and Drug Controller have mains true that a lot more been integrated in the needs to be done.” system. Introduction Examining the cycle of online processes of growth, Secretary and integration of mentioned that while various departments China grew in doubleunder one system has reduced the time digits for over three taken by half. decades, and India had managed to reach 8-9 percent GDP growth for a few years, by adopting
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complete in Delhi and most of the other states, he mentioned that introduction of online systems had helped expedite process. “Online systems in Delhi, Mumbai, and many other states are helping get a plan approval done in a matter of 14 days,” he said. A major irritant in expediting approvals stemmed out of the need to obtain an array of permissions from various government authorities, but commendably the government and DIPP had addressing this lacuna, he shared. “One has to fill a common application form, online, at the municipal corporation website. All the involved agencies have also improved their processes and ensured that clearances are expedited at their end,” he said. Adding that Rajasthan government had recently come up with a self-certification system, he said that it had technically made it possible to obtain permit in a day. He announced that reforms in Customs was another criterial area where the department and the government had focused its energies on. “Delays and consequent cost incurred on operations of importers and exporters is behind us. There is an online system in place – where all six main coordinating authorities like Food Safety Authority and Drug Controller have been integrated in the system. Introduction of online processes and integration of various departments under one system has reduced the time taken by half,” he shared. The Secretary mentioned that they were doing similar things to facilitate exports, and urged investors to share with them issues impacting tourism sector; which could be common or specific issues, too. Taking stock of the start-up culture, DIPP Secretary noted that use of technological innovations and disruptive mechanisms by start-ups like hotel aggregators and taxi aggregators had made it challenging for laws to be kept at pace with the dynamism of the market. “We have been in conversa-
☛ Technological innovations and the dawn of the startup culture has made it challenging to keep laws in tune with changing times.
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right set of policies, “India, too, should be able to realise that vision of double-digit growth for the next three decades.” He called tourism sector “critical” in ensuring ‘quality of life’ to people and expressed satisfaction over states competing with each other in promoting tourism and facilitating ‘ease of doing business’. “It is also the priority of this government. We saw our rank improve from 142 to 130 last year, and we will see some more improvement in the figures by the end of this year,” he said. Outlining efforts undertaken by various central government ministries and departments and, most importantly, states, he noted the DIPP had formulated a 340-point Action Plan for states. “We have a state portal now that helps in transparent display of their engagements,” he said. He stressed that the government did not believe in the notion held by governments in previous years, which were not very friendly towards businesses, “there was, almost, a confrontational attitude. Now, in the last two years, that has changed. Government has realised that it has to create a business-friendly environment in the country, if it wants to create jobs,” he said. “And the policies of central and state governments are very clearly geared towards achieving that,” the secretary added. Iterating that DIPP was spear-heading efforts in creating an enabling environment for doing business, he mentioned some of the transformational work that DIPP was engaged in. Sharing that while construction projects usually took months and years to
tion with various start-ups and the Department of Industrial Policy and Promotion would be happy to work with states and other central government ministries to better work with them,” he added. “We are also implementing the start-up India action plan. We hope that ministry of tourism also looks at promoting some start-ups and incubates them purely for tourism development. DIPP has appealed to private sector; I have myself met top corporates to improve CSR work and encourage start-ups,” said the secretary. Insisting that the government had a clear-cut policy on FDI, he said that one hundred percent FDI was being allowed under the automated route. “In the last two years we have been able to attract over two billion dollars of investment where ‘Invest India’ is the investment promotion agency for us,” he shared. Informing that the ministry of tourism, too, was going to be working in tandem with ‘Invest India’, he said “the department is open to connecting states with foreign investors, if any of the states are interested in any such prospect.” He further added that the government was examining the possibility of roping in major international companies that made substantial investment into tourism, and was appraising on possibilities of getting them to invest in India. In his closing statement, he batted for technology, arguing that bottlenecks and issues that plagued India’s tourism sector could be steadily addressed by infusing technology and nurturing the ‘start-up’ environment. “I was looking at a certain app that had been devised to provide security to women. There are already a number of apps that assist tourists in finding hotel rooms and cracking last-minute travel deals,” he said, noting that opportunities and possibilities were many. He said that India had already put in place right set of policies and was, further keen on radical changes in the way it visualise things. “I believe it is the only way we can truly achieve the real potential of the country along with its tourism sector,” he concluded.
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MoT to chair taskforce on connectivity; to rope in Rail, NH and Aviation, says Zutshi
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The government has constituted a taskforce to be chaired by Secretary (tourism), involving ministry of Civil Aviation, Nation Highways and ministry of Railways. The concerted push is aimed at creating better linkages between tourist destinations, improving ‘ease of travel’ and seamless connectivity.
inod Zutshi was of the opinion that tourism in the country was undergoing a paradigm shift, and the role of tourism in the economy of the country, not just in India but world over, was increasingly becoming phenomenal. Advocating viewing tourism as an inclusive and encompassing engine of economic growth, and an employment generator and a contributor to the GDP, he said that it was an irrefutable reality that its role was changing. However, the nation and the larger tourism fraternity was yet to acknowledge it. “I will be more candid and frank, at all levels, whether at the level of ministry, level of travel and trade, or at the level of hospitality, we all have been focussed more on the demand side. Our focus has been on increasing inflow which, of course, is one of the primary objectives of the tourism industry,” he said. Pointing out the anomaly of not putting adequate focus on the supply-chain, which was also termed as investment potential in tourism, he said that there had not really been commensurate efforts put in on the demand side. “We will have to find a match between supply and demand. If there is a mismatch, it will affect the carrying capacity. Let us not forget that in terms of quantity and demand, we are doing pretty well. Nine percent growth in FTAs, compared 4.5 percent growth, globally, and fifteen percent growth in the domestic sector is actually putting a lot of burden on India’s available carrying capacity. And that burden will have an impact on the infrastructure,” he explained the linkage between creating enough capacity in accommodating burgeoning numbers. Noting that India needed to gallop to even cope with
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☛ Industry needs to find a balance between supply and demand. Inadequate focus on supply will hamper carrying capacity. ☛ MoT to focus on augmenting lighthouse and cruise tourism in a big way, says secretary Zutshi. the existing demand gap, the secretary said that the gap referred to infrastructure and it could be of varied types. “It could be related to hotels, roads, airline connectivity, and many more things. That gap assessment needs to be done. And filling up the void will take concerted efforts from diverse stakeholders of the tourism industry,” he mooted. Comparing India’s infra with existing infra, world over, he noted that India had a fair distance to travel. “You have examples of cities, internationally, getting more tourists than India as a country put together,” he said, referring to some of the more successful tourist cities and destinations. Reiterating the role of tourism in generating employment, he shared that as per the records at disposal with the ministry of tourism, travel and tourism accounted for over 12.36 percent of all jobs generated in the country. As he
acquired the level where in it could claim to have worldclass infrastructure in its midst. Suggesting a way forward, he advocated construction of new airports while reviving existing ones. “We need to build swanky new terminals and revive air-strips that are already in existence. Both, in the last budget announcement and the recently unveiled civil aviation policy, there is a scheme for revival of fifty air-strips. The ministry of civil aviation has been requested by the MoT to involve us in shortlisting the first batch of 50 air-strips that are slated for a revamp,” he detailed. He elaborated on efforts put in by the ministry railways We will have to find and MoT, together, for upgraa match between dation of 24 railway stations, supply and demand. stating that MoT had taken up Let us not forget that 24 railway stations where in it in terms of quantity intended to bring in the best of and demand, we are passenger amenities. doing pretty well. “Whether it is restrooms or Nine percent growth executive lounges, or bringing in FTAs, compared in tourist coaches in some of 4.5 percent growth, the major tourist destinations, globally, and fifteen we intend to go all out. Tourist percent growth in the coaches will be financed by, domestic sector is both, ministry of railways and actually putting a lot MoT” he added. of burden on India’s On the road infrastructure available carrying front, he shared that MoT had capacity. recently met the secretary of National Highways and raised the issue of lack of quality signage on key roads. Vinod Zutshi pressed on the need for connecting major destinations, sharing that MoT was planning on pushing for a list of destinations wherein it hoped that NH authority would come up projects, linking those destinations on priority. “On the waterways front, our focus is equally on inland tourism and sea-cruises. We have done a lot on that front in the last six months. Starting from bringing in a new standard operating procedure -which has reduced harassment of cruiseliners – to the level of starting new cruise services from Mumbai to Maldives. We have been to cater to the biggest commercial cruiseliner having a port of call in Kochi,” he said, giving a well-rounded view of infra-related development on the waterways front. Taking note of government’s key tourism initiatives, secretary mentioned that the government had spent over `2,500 crores in the last one year on investments in various circuits, under two flagship schemes of ‘Swadesh Darshan’ and PRASAD. Further sharing that MoT was working on a new Coastal Circuit which was likely to instil a new vigour into India’s offerings, he said “Revival of destinations and beaches that are lying unutilized will be done on priority basis and made destinations out of.”
compared tourism’s contribution to GDP which stood at 6.88 percent, he reflected on the fact the GDP output remained far below than the percentage of people employed, indicating that the productivity levels of people engaged in this sector was low. “There is no doubt about the fact that tourism is a low-value industry, but with concerted efforts from, both, the government and private sector, this void can be filled,” he said. Examining key areas that needed maximum attention, irrespective of government or private sector investment, the secretary noted that India’s immediate priority was to create adequate core infrastructure. Arguing that accessibility to destinations for tourists depended on wholesome development of infrastructure – which included road, rail, airports and waterways – Vinod Zutshi said that India hadn’t yet
States must focus on developing ‘investor-friendly’ policies
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eside bolstering India’s inadequate infrastructure on the tourism front, the government was quietly plugging in loopholes to attract private investments into projects. The secretary said that basic facilities like power, land, infrastructure and skilled workforce needed for creating a favourable investment environment had improved tremendously. “States are far more sensitized about the need for creating a land-bank and many states are doing so,” he added. Vinod Zutshi also announced that the government had decided to create a taskforce under the chairmanship of Secretary, tourism
in which National Highways, Civil Aviation and Railways were to be brought on board. “We intend to work on the connectivity aspects of tourist destinations. There is already a taskforce on Cruise tourism. So India has investment-friendly policies, ‘ease of doing business’, pro-active bureaucracy and the roll-out of ‘single-window clearance’,” he said, signalling a more comprehensive approach in dealing with India’s infra woes. Beside creating new infrastructure, MoT was also keen on investing in existing destinations, said secretary Vinod Zutshi. “We have home-stays that has tremendous potential. We have heritage palaces and
courts which can be converted into hotels. We have a number of investable projects that have come to the fore” he noted. “Besides, new products around beaches and rivers, islands and Wellness and Spa, I would like to mention about lighthouses,” he said, adding that India had come up with a unique idea of marketing lighthouse destinations. “We have already had an investors summit on this, some six months ago. I would like to add that we have also appointed a consultant to better nation’s cruise tourism, who will help us improve our record as a cruise tourism destination,” said the secretary. Noting that for measures put in place by
the ministry to truly succeed, states needed to brought on board, he reflected “States have to realise, and we are making them realise, that investments into tourism and infra is equally or more important than the number of tourist arrivals. Both of them are inter-related and depend on each-other to succeed. Therefore, governments will have to focus on both these aspects in equal measure,” he reflected. Taking the mantle forward, he noted that he was going to personally visit a number of states, including meeting with Chief Secretaries to harp on the need for states to compete with each other.
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Kovalam Lighthouse
MoT keen on further relaxing real-estate classification and CRZ guidelines, says Billa Suman Billa, Joint Secretary, Ministry of Tourism, in a well-received address, asked industry to focus on filling in glaring shortages on the supply-side. He also shared a number of initiatives taken by the government and MoT in creating new products, including pitching for a more relaxed CRZ guidelines which could give a fillip to coastal tourism in the country. which also means that the tourism sector is under significant expansion mode,” he substantiated. Stepping into investor’s shoes, Suman Billa picked out battling negative sentiments as a major challenge in the past two years. Attributing structural issues that India imposed upon itself for the outcome, he detailed how investments were being classified into hospitality and commercial real-estate. “It is a fact that a hotel cannot be classified under commercial real-estate because it is a long-duration project,” he argued. Adding that it typically took several years for projects to breakeven where interest ranged as high as 14 percent, and entrepreneurs were At the back of expected to pay it economic reforms and generation of back, he said that it significant amount of debt was a gamble money and surplus taken by hospitalby the middle-class ity industry. “The of the country, a general belief was significant amount that whether or of travel is being undertaken. People not debt could be are spending on travel serviced through and tourism – which revenue streams, but also means that the overall valuation the tourism sector would rise, allowing is under significant hotels enough leverexpansion mode. age to re-capitalize debt, shoring up their returns,” Suman Billa explained. “Unfortunately, after the boom years of 2007-08, economy did not take the trajectory industry hoped it would. There are several assets today that are debt stressed. We are exiting from the tunnel as we move ahead,” he added with a hint of optimism. Outlining ministry’s achievement in getting the hospitality industry out of the commercial real-estate classification and into the infrastructure segment, he explained that it was still a battle half-won. “It came with a couple of riders. First, it is open only to investment of ticket-size of `200 crores or above – which means that it only involves hotels with around 200 rooms or so. It is a very large ticket size to capture,” he explained. “Also, it is not open to cities which have a population of a million or lower, meaning several of investment opportunities are likely to be bypassed. Therefore, I believe that there is a significant middle-ground that needs to be captured,” he added. He informed that the ministry of tourism was in conversation with the ministry of finance and RBI for examining the possibility of bringing hotels with smaller inventory and investments into the bracket, with the hope of fixing the loophole. He further added that the prescription MoT was moving forward with was to bring down the threshold to fifty crores. Taking note of India’s deficient supply side, he highlighted that India was growing at an average of 8-9 percent which to his understanding was significant. He reasoned that if India continue to grow at the same pace, the supply side needed to grow, too. “The last study undertaken by us was in 2010, and we came to a figure of 1,92,000 rooms that needed to be constructed. It is something we need to address, and that is why I say that the size of opportunity is simply tremendous,” he said. Looking at the larger picture, he asked the industry and investors to introspect weather the nation had the collective urge to capitalize on opportunities that were going to be coming about. “Are we ready to understand that this is the beginning of a long-term cyclical growth that is going to be triggered from now? According to a study, tourism market is expected to be around 148 billion USD in value, which is likely to expand to USD 419 billion by 2022. It is a significant projection, highlighting the trajectory of growth,” stressed Suman Billa.
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alling investment an area that remained very intrinsic to the ministry, Suman Billa said that MoT was closely looking at opportunities to increase investments. Revealing that the ministry implicitly understood that there was tremendous potential, he said “tourism is a sector that can transform nation’s economy. However, for some reason, we have not been able to unlock this potential. For long, tourism has been the elephant in the room.” Conceding that everyone realised that it had tremendous potential for opening up India’s economy in a way that was unimaginable, he stressed that tourism had the greatest potential for creating employment which was important, especially, for a country like India. He argued that a foray in tourism was most beneficial for least-developed regions of the country. Citing the example of Northeast and Buddhist Circuit, he said “one can realise that how areas that have missed the development bus can actually come back in a big way through tourism. Unfortunately, this area has not received the kind of attention that it ought to have been given.” Noting that one of most stellar undertakings of the PM was to bring tourism at the centre of national mainstream agenda, he pointed towards the change in outlook, stating “It is for the first time that we are taking about tourism as a game-changer for the economy that can create jobs and that can raise the general level of living of population.” Suman Billa rued the fact that a nation with such diverse offerings and heritage like India catered to only a dismal eight million foreign tourists. By mentioning that a city state like Dubai catered to over twelve million, he tried to put things into perspective. “I think, it is really a shame that a country of the size of India, endowed with an envious heritage and plethora of products in offering, attracts only eight million foreign visitors. That clearly tells us that we have a task cut out for us,” he said. Further examining trends in footfall, he said that domestic numbers in 2015 stood at a staggering 1.45 billion up from 1.2 billion in 2014, which meant that a significant amount of travel was being done by a rising middle-class. “At the back of economic reforms and generation of significant amount of money and surplus by the middleclass of the country, a significant amount of travel is being undertaken. People are spending on travel and tourism –
Government will develop tourist facilities on uninhabited islands in the Andaman’s and Lakshadweep
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omplementing the ‘Make in India’ campaign for creating a tremendous impact on how India was being perceived as an investment destination in the world, Joint Secretary said that the government had considerably improved ‘ease of doing business’, besides bringing in a visible change in the mind-set. “I think it is for the first time that most of us in the government are starting to look at investors as partners,” he said, indicating a major transformation in modus-operandi. Highlighting that India ranked number one in attracting FDI (foreign direct investment) by displacing China in the first half of 2016, he said “In IMF’s ranking, India is the world’s fastest growing major economy. All of this means that as India emerges as the preferred investment destination across sectors, the point that we need to understand that tourism will certainly be one of the core areas. And that is the opportunity that we need to capture.” Drumming up opportunities in several other sectors, besides hotels and hospitality, Suman Billa said that India’s medical tourism was the fastest growing segment, expanding at about 30 percent year-on-year. “There are opportunities for investors to set up state-of-the-art hospitals and bring in people from key source markets into India for medical treatment,” he said. Noting that Wellness and Spa was another major area which had literally transformed the way Kerala tourism worked, he shared that not many were aware that the average length of stay for an international tourist in Kerala was 19.1 days. “It is a seriously long-period of stay by any yardstick of comparison in the world. It is simply because when people come for Ayurveda, they typically stay for three-four weeks. It is not important how many visitors we are able to attract, but for how long are we able to engage them for,” said the Joint Secretary, deftly indicating the need to provide high quality visitor experience, more that getting stuck in the maze of statistical analysis. He further mentioned that there were significant opportunities in agriculture and plantation tourism, besides beaches and islands. He shared that CRZ was due for an overhaul and the ministry had asked for certain relaxations which were going to be announced shortly. Suman Billa noted that, in a major fillip to India’s beach and resort tourism, the PM had already set up a committee to look at uninhabited islands, especially in the Andaman and Nicobar Islands and Lakshadweep for tourism. “We will be opening up those islands for development as very high-value tourist destinations, like in Maldives,” he said. He said that Cruise tourism was one of the biggest success stories being scripted by the ministry. “We have formed a task force under the secretary, MoT as the Chairman and this taskforce looks at streamlining processes for cruise liners to come to India. From Customs declaration of 4,000 pages, we have brought it down to a few. We have done some landmark changes in the way immigration, CISF and Customs work and processes have been made as simple as possible,” he elaborated on steps taken by the government. The government, beside untangling knots on the policy front, was waging a battle to boost India’s insufficient infrastructure, shared the joint secretary. “NHAI is constructing 18 kilometres of road every single day. The ministry of civil aviation, too, has initiated a scheme for regional connectivity; it is essentially an effort to disperse aviation into smaller towns and cities, away from the trunk routes. It will go a long way in shoring up tourism prospects,” he said. He further noted that MoT was also working in tandem with the ministry of railways in improving facilities for tourists. “We will have tourist coaches which will significantly improve the visitor experience. Our two flagships, ‘Swadesh Darshan’ and PRASAD are helping us generate the critical mass needed to make a visible impact,” he said.
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Yes Bank-FICCI report highlights need for creating land banks to expedite infra push
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Divulging some of the key recommendations of the report compiled by Yes Bank and FICCI, Nikhil Shani, Senior President – Government Banking and Strategic Government Advisory, Yes Bank noted that a number of states had displayed proactive approach in creating tourism related projects. He, however, urged states to identify and allocate land-parcels for investments to expedite the much-needed infra push.
haring some key trends and figures that outlined the direction taken by global tourism, Nikhil Shani pointed towards the fact that tourism was increasingly beginning to play a stronger role in economic generation. He noted that the size of tourism from a global perspective hovered around 9.3 percent in GDP terms while India’s share stood at about 6.3 percent – which was expected to grow to 7.2 percent in the next ten years. “In terms of contribution to the GDP in 2015, India stands at a rank of 142. While a whole lot of people might call this poor, but we look at it as one of the biggest opportunities that could have hit India. From any sectoral perspective, it happens to be the biggest opportunity,” he reasoned, deciphering global tourism trends. Delving deeper into tourism indicators, he informed that approximately 98.4 percent of tourists
base needs to grow,” he said, batting for enhanced focus on domestic footfalls. He added that “to put matters into perspective, there has been a twentyfive percent growth in the last few years which is very substantial for the tourism industry.” Examining tourism related developments, he contested that Wellness boards had been setup; schemes aimed at rejuvenation of heritage cities and projects connecting pilgrimage destinations had come up. He also commended the railways for spearheading a number of projects and new offerings aimed at enhancing ‘quality of experience.’ Arguing that beside
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☛ ‘Digital India’ could play a significant role in infusing technology for creating safe and secure tourist destinations. ☛ Giving infrastructure status to hotels critical to address supply-side shortage. came from domestic markets, and only 1.6 percent of overall numbers came from foreign shores. “One may make a strong case for taking the dismal foreign traffic to higher levels, but our domestic numbers are very strong. The idea is that the
a string of new projects, driven by the central government, a number of state driven initiatives were also worthy of a mention, he said “Madhya Pradesh is looking at developing a Wildlife and Buddhism Circuit. They have developed a
and infrastructure. Highlighting the report tabled by Yes Bank, he shared certain recomNikhil Shani mendations, ranging from Senior President – policy overhaul and more. Government Banking and “One is of course the Strategic Government Advisory, Yes Bank infrastructural status to hotels, given that there is One issue is of course granting infrastructural status still a shortage of about two hundred thousand rooms to hotels, given that there is still a shortage of about two in the mid-market segment. hundred thousand rooms Potentially the sum fixed at in the mid-market segment. two hundred crores needs Potentially the sum fixed at to be re-looked at,” he said. two hundred crores needs Adding that with the to be re-looked at. Also, a advent and spread of ‘Digisafe tourist destination is a constantly talked about tal India’ in a tremendous issue and its importance is fashion, a look at intelligent already well understood to tourist researches on the be elaborated any further. probable way forward was Digital India, there too, can a worthwhile engagement, play a significant role. he recommended infusing technology to create safe and secure tourist destinations. “A safe tourist destination is a constantly talked about issue and its importance is already well undertravel and tourism in a major way. stood to be elaborated any further. “Chhattisgarh’s traditional strength Digital India, there too, can play a has always been domestic tourism. significant role,” he said. Telangana has come up with some Underscoring the importance innovative ideas while Andhra of identifying land-bank and Pradesh has undertaken a mission making land-parcels available approach to tourism. PATA had for investors at large at the state conducted their main event, for the first time, in Bengaluru – which will level, he asked states to also look at developing some for their own give a fillip to Karnataka. Delhi is state-owned tourism units, to be eyeing a water sports tourism comrun on PPP basis, rather than only plex,” he stressed, reiterating that looking at funding it through their states had taken a lead in creating own financial sources. requisite tourism related offerings
film tourism policy and White Tiger Safari has been launched in Rewa. Rajasthan, with the support of the centre is trying to developed a Desert Circuit.” He further noted that Chhattisgarh, too, was picking up on
Over a 1000 hidden nuggets exist in nooks and corners across the country. Each is distinct, unique, and extremely rich for the experience they provide. Each has its own terrain, culture and tradition that they proudly share with their guests. We bring you a window to tradition and heritage, as embodied and revived in numerous heritage properties and manifestations across India. Each has its own distinctive tradition, dance forms, cuisines. Yoga and Ayurveda are unique Indian products, now popular the world over. We bring these experiences under one roof. Ready-to-use booths in varying sizes of 6 sqm, 9 sqm and 12 sqm are available at a special price, almost 15% lower, and need minimal display material.
Presenting Unique Segments at BITB 2016
uniquely indian B2B and Conclave
Who should Exhibit: Every unique product, from the desert in the Rann of Kutch to the monasteries in Ladakh; tea garden bungalows, heritage hotels, coffee plantations and vineyards in Nashik; rural tourism experiences; homestays, among others. Spa resorts and wellness centres, holistic healing and therapy, Ayurveda hospitals. Museums, art galleries, cultural centres, just about every product that is part of the tourism process. Photo courtesy: ITRHD
ITB Comes to India. The best of ‘Glocal’ is here!
Whom will you Meet: Traditional travel agents and tour operators, online portals and booking engines, larger tourism fraternity that will give your product mainstream visibility. Meet with a few thousand buyers from all over India.
Just exhibit, or also explore partnerships, exclusive to Uniquely Indian Showcase for that extra bit more!
© DZT/Scherf, Dietmar
Welcome to BITB.
India's time has come. Presenting for the first time the big mega show on the region's travel and tourism vertical! Bringing together uniquely India, connectivity, big ticket infra developments, hospitality, global exchange and world connect on culture, holidays and business. At the heart of it, is the resilience, the robust growth, and power of the Indian Traveller! Bringing a sharp focus on traditional heritage and culture tourism, but equally on new emerging streams like MICE, weddings, Luxury, Golf and other sports and events, Technology in Travel, the show will be the first of its kind, powered by the world’s biggest player in the business, ITB Berlin! Strong B2B, alongside s t ro n g e r p a r t n e r ship s t ha t b u i l d conferences and side bar activities, supported by mainstream media in print and television. Each segment will be supported by leading players in their niche from around the world, bringing strong content, buying and selling, and B2B business of ever y kind.
3–6 october, 2016
pragati maidan new delhi
www.bitb.org For more information connect@bitb.org
The Best of ‘Glocal’ is Here! Global player ITB Berlin, the world’s biggest tourism fair, comes together with the most experienced local in India!
ITB Berlin Comes to India
Unparalleled global reach
Announcing a co-branded show with Cross Section Media, the first movers in B2B travel trade shows, the founders of India’s first travel mart, in 1994. The best of ‘Glocal’; we know this business best.
With ITB Berlin, BITB 2016 brings you an outreach to world markets in travel and tourism, unlike any other event in India. It positions Delhi as a growing center for travel and tourism and India as a new focal point for the global industry.
A B2B with a difference
Power of the Indian Traveller
A first time show that brings buyers and sellers for leisure, MICE, online, weddings, events and experiential travel. It is truly tourism under one roof. And together they provide synergy and ripple effect for tourism in the country.
1,000 hosted buyers assured
The Indian traveller has proven to be amongst the most resilient and robust globally. BITB is based upon this growing Power of the Indian Traveller, for both domestic and outbound. We present an exclusive showcase of the traditional and new age drivers for Indian tourism and travel.
India roadshow rolled into one
We have existing and sustained relationships with individual players, trade associations and industry chambers. We are in this space for over 40 years and know the business. We will also have trade visitors giving you an unprecedented buying power of the Indian industry.
Only at BITB 2016, we give you an all India canvas of buyers dealing in leisure, online, MICE, luxury, weddings and experiential travel. A mix of segments that are actually driving the business today. No need anymore for roadshows, going from city to city to meet agents. Save time, effort and money.
We drive new thought processes
Not to be missed
B2B buying and selling is critical. Equally important is sharing of ideas bringing top industry leadership onto one table. Six conclaves in 2 days. Each driven by its respective internatioal market leader. BITB is industry driven, from the top down.
About the Organizers
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Cross Section Media is over 40 years in the business, having a number of firsts in India’s history. It was the first mover in B2B trade shows in tourism in India, way back in 1994. Our partnerships endured over the years we ran the event – all these enabled us to host over 4,500 international tour operators from over 50 countries during our 18-year tenure! In 2011, the last year when we exited this event, we were steadfastly tourism focused, growing 25% year on year, presenting 30 countries from around the world, 23 Indian states and some 650 sellers organizations. We have been the first movers in trade journalism, with magazine titles such as destination India, Travel Trends Today, Go Now and presently, Tourism First. We have run successful industry seminars and have been awarded by both industry associations as well as the Government of India.
The design, visitor flow, standard booths will have an international look and feel. A seamless experience awaits buyers and sellers at BITB 2016. Each element is professionally driven, ensuring ease of doing business.
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International look and feel
We know budgets are always stretched, longer lead time is desirable, there are pressures all around and between these are opportunities, some that cannot be missed out! BITB 2016 is one such window for new business creation.
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online + technology
Convenience and affordability fuelling car rental market in India, says Sakshi Vij Speaking to TF, Founder and CEO, Myles shares that easy accessibility, hassle-free service and affordable pricing has helped the growth of car-rental market in the country. In a detailed interview, she discusses about her own venture and key trends in the larger car-rental space. By Shashank Shekhar
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On the policy front, states are looking at better policies pertaining to management of traffic – which is a welcome development. I know for a fact that BMC, Maharashtra, has submitted a detailed proposal regarding their strategy on reducing congestion in the city. It includes certain measures like congestion taxes, timezone driving, allocation of parking space for every car that is bought and restricting the number of cars allowed to be owned per house. All of these things are coming together and, I think, these are good steps. But if we really want to develop SMART cities of the future, most of the heavy-assets will have to be shared and not owned.
ow has been the past few months for you? How many cities are you currently present in?
We operate in 21 cities, as we were a few months ago. But what we have done is to increase the number of cars on the road. We are present in Delhi, Bengaluru and Hyderabad to name a few cities. Another positive development is that our growth has happened, at least, about 35-40 percent on a month-on-month basis.
What would attribute this spur to? What factors are increasing the number of car users?
This growth has been because of a few specific reasons. Firstly, I think the number of reasons for which the customer rents a car has grown manifold. People rent car for dropping off their kids to school and run some errands; they take weekend offs with friends and families and travel to nearby destinations. Then we get a lot of NRIs, who come to India for a few months and do not want to be bothered with all the hassles involving owning a car. They prefer to rent a high-end car, say a Mercedes, for their length of stay. It is very convenient for them. Even a lot of foreign tourists are using our cars now. So, the mindset is changing. In terms of improving convenience, we have started accepting international credit cards for online payments – which makes it much easier for travellers. Today the customer can rent a car for as little as couple of hours and as long as three months. We have put in place all these facilities, keeping in mind that the consumer must be able to find a car that they need. There are over 38 different models of cars that we have in our fleet. Look at how the infrastructure is transforming. Today, we have roads that can take us from Delhi to Agra in two hours. It is just becoming so much easier for people to travel. And that is what is helping people use services like us, because earlier
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people would not really take to driving around themselves. As a concept, renting a car could also help address a lot of issues plaguing our cities. Each family, in Delhi at least, owns 2-3 cars. How would we manage parking? Vehicles are parked on roads. Someone will have to think about these issues.
How are you addressing general travel related concerns? How do you address issues when consumer is on the move?
We, today, have roadside assistance service – which is a round-the-clock service – where we are able to send help to a stranded passenger within a two-hour timeframe. And our service coverage spans to 150 towns and cities of India. While we send a tow-truck to remove the car, we also make sure to drop the client to the nearest hotel or town. This ensures that our clients do not
end up getting stranded on a highway in the middle of the night.
So you reckon all is moving in the right direction?
I definitely think that we are moving in the right direction. I think certain key steps from regulators and certain efforts from people like us, who are bringing the product out and making it simpler, ensuring that networks are right, can help further take this segment forward. And then, subsequently, hopefully the customer starts making economic sense of it. They are beginning to realise it. Initially, we started as an aspirational product, with only luxury cars in our fleet, now we have car models starting from 4-5 lakhs, too. But what really catches the fancy of consumer that he, no longer, has to wait to ride an expensive car. You can rent one for a couple
thousand rupees. On the policy front, states are looking at better policies pertaining to management of traffic – which is a welcome development. I know for a fact that BMC, Maharashtra, has submitted a detailed proposal regarding their strategy on reducing congestion in the city. It includes certain measures like congestion taxes, time-zone driving, allocation of parking space for every car that is bought and restricting the number of cars allowed to be owned per house. All of these things are coming together and, I think, these are good steps. But if we really want to develop SMART cities of the future, most of the heavy-assets will have to be shared and not owned. We will have to look at areas like public transportation and utilities. Another interesting development is that corporates are opening to the idea of renting cars. They are looking at providing themselves with self-drive service.
That could potentially be a big segment for you to tap into?
Yes. In fact, we are already working with a number of clientele, who are keen on testing self-drive as a part of their company policy. And, I think that is helping them streamline expenses. It gives them a lot more flexibility.
Share some numbers with us. Is there a realistic number of clientele you would wish to achieve in the near future?
We believe that, in the next four to five years, the overall self-drive market should have, at least, about two hundred thousand cars. Out of that two hundred thousand strong market, we would want to have a share of, at least, fifty thousand cars.
Which technology partner have you roped in? How is your payment gateway happening?
We have roped in a company called ‘JUSPAY’ that allows us to integrate all the payment gateways, helping our customers manage payment related issues in a far more errorless manner.
Indian outbound takes to Singapore on long Independence Day weekend, says Hotels.com report
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otels.com has recently released a report that indicates that Singapore has emerged as the clear favorite for the Indian outbound while Southeast Asia continues to remains a top draw for travelers. Bali, Bangkok and Phuket stood behind Singapore in the report released by online giant. In the search period that spanned from January to July, 2016, Indians have keyed in most inquiry about Candolim and Calangute – indicating that Goa continues to be a favorite in the domestic segment. Rajasthan’s capital, Jaipur, royal city of Udaipur and Mumbai follow behind Goa’s famed beaches. Delhi stood at sixth spot and Gurugram came on the ninth spot on the list of most enquired destinations.
Search period: Jan 1 – July 31, 2016 Ranking Domestic Destination
Ranking Outbound Destination
1 Candolim 2 Calangute 3 Jaipur 4 Udaipur 5 Mumbai 6 New Delhi 7 Lonavala 8 Mussoorie 9 Gurgaon 10 Agra
1 Singapore 2 Bali 3 Bangkok 4 Phuket 5 Pattaya 6 Dubai 7 New York 8 London 9 Kuala Lumpur 10 Paris
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online + technology
Hotels need to be educated to use best mix of scale-based distribution solution Given the complexities of operating in an increasingly dynamic market place – where new age operators have disrupted pricing patterns – smart price positioning and use of intelligent tools to analyse market trends in real-time have become increasingly important, argues Avinash Lodha, Chief Executive Officer, RezNext Global Solutions. In an insightful interview, he decodes some key market trends.
By TF Bureau
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Smart price positioning is what all hoteliers must target to achieve. In our market studies we have seen that hotels more than often decide their pricing strategy based on competitor action. The efforts are very reactive to a change in competitor’s price. We have been continuously educating hoteliers about the need to adopt a smart pricing strategy – one that is formulated based on the hotel’s own performance – current and historical, existing and upcoming events, current rate performance, expected demand, revenue projections, current ADR, location advantage and ofcourse competitor rates and trends.
n layman terms, how does the system of integrating both the ends work?
By integrating two ends of the demand and supply chain, we mean we automate the flow of hotel room inventory through our distribution platform to the demand generators and vice versa – all bookings from the demand generator is automatically updated into the hotel’s system. We use intelligent APIs for this smooth flow of information across multiple systems within the hotel and with the OTAs. By integrating this flow, we then allow hoteliers to focus on strategic decisions like what target segments to market out to, what rate updates to be done and when, what promotions to introduce. Our business intelligence solution provides real-time data intelligence that helps hotels take important revenue impacting decisions, thereby also improving occupancy and inturn profitability.
A major area of engagement for RezNext is its intelligent digital platform that helps boost sales. Could you elaborate on what are some key features of that service and how hotels could benefit from it?
Our intelligent distribution platform is aptly named so because we do a lot more than just connecting hotels to the demand generators. We automate the entire reservation process end to end which means as a hotel you are always ready to receive guests – no more waiting period at the check-in counter, no more missed out bookings and having to turn away guests which could potentially damage the hotel’s reputation. This also means all inventory including the last minute cancellations are sent back to all OTAs to be sold again. Hotels can thus ensure they sell out all their perishable inventory every day. The platform allows hoteliers to action the insights received from our business intelligence application quickly. All rate updates, stop sells, release of inventory, quick roll out of promotions can be real-time with instant notifications of these updates received from the OTA sites. Our distribution platform today also gives out recommendations based on the hotel’s occupancy performance, rate trends in the market and competitor movements like sold out, promotional discounts. The mobile version of our distribution platform is purpose built to facilitate quick update of inventory and rates to meet the needs of the dynamic market even if the revenue manager is working from a remote location or is on the move.
How interested or involved are today’s hotels in incorporating such systems into their operations? What has been the response of it, so far?
In the 4 years of our operations, we have worked with over 5000+ hotel properties including marque hotel chains, leading independents and mid-market players across metros, destinations and tier 2 and 3 cities. The response has been great. Especially this year, since we introduced our new release we have been receiving great feedback from the industry. We have also introduced flexible
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☛ Instant rate update functionality is a big hit among hoteliers as it does away with the delay in responding to market dynamics. RezNext clients like Golden Tulip have seen an increase in their OTA bookings by 30%. ☛ Use of fully automated reservation system allows hotels to sell their perishable inventory each day, allowing maximum revenue generation. pay-as-you-go subscription models which are being well received in the industry. Hoteliers today are completely aware of the benefits of technology automation, but we still need to educate them on what is the best mix of distribution solution for their hotel based on their scale, their need and the goals they intend to achieve – both short and long term. Our instant rate update functionality is a big hit among hoteliers as it does away with the delay in responding to market dynamics. Our clients like Golden Tulip have seen an increase in their OTA bookings by 30%, while another key player in the market – Clarks Inn – have seen an increase in room nights by 25%. The Manohar, a leading independent five-star property has also seen an increase in their ADR by 35%. These results are testimony to the value we bring to the client’s business.
How important has it become for hotels to weave in smart price positioning? More so, at a time when disruption has become the new norm. Have you seen an upward tick in the number of clientele seeking expertise in positioning themselves in the market?
Smart price positioning is what all hoteliers must target to achieve. In our market studies we have seen that hotels more than often decide their pricing strategy based on competitor action. The efforts are very reactive to a change in competitor’s price. We have been continuously educating hoteliers about the need to adopt a smart pricing strategy –
one that is formulated based on the hotel’s own performance – current and historical, existing and upcoming events, current rate performance, expected demand, revenue projections, current ADR, location advantage and ofcourse competitor rates and trends. We have been able to drive significant changes in the revenue and ADR for our clientele using the above practices delivered through our revenue management services. For JRD Exotica, a leading property based in upscale Delhi market, we have been able to improve their ADR by 40% & online booking revenue by 30%. Our consulting side of business is aggressively growing and we are seeing an increased need from hoteliers in getting their revenue strategy right through a profitable pricing model.
What category or segment of hotels are your main clientele? Is this realization of smart management and integration seeping into properties in Tier-2 and Tier-3 cities? When we launched our company, our focus was on helping the mid-market segment by giving them access to technology tools to get online quickly and reap the benefits of increased online visibility. We have helped several hotels in Tier 2 and 3 cities get online for the first time and see an increase in their occupancy by opening up new avenues of bookings. We have also worked with aggregators to enable the budget supply from Tier 2 and 3 cities to be made available on
their portal for instant booking. We also felt the need for empowering hotels with revenue tools such that these mid-market hotels would have the same opportunity as large chains and 4-star independent hotels to leverage the market conditions to improve their online booking revenue. Today, we are also seeing a great response to our comprehensive solution suite and revenue enhancing services from the 5-star segment. Across Tier 2 and 3 cities we are seeing an increased need from players providing niche services – experiential stay, service apartments, home stays – to get their supply available on mobile market places for consumption. These players are also realising the power of internet, the need to be online and to intelligently sell their inventory.
OYO teams up with HDFC Bank, launches PayZapp to aid frictionless payment OYO, India’s largest branded network of hotels, recently launched the integration of PayZapp, a complete payment solution by HDFC Bank, on its consumer application. This tie-up is aimed at enabling customers to directly link their debit and credit card to PayZapp, and book an OYO room by making the payment in a seamless process on the internet. Also, with PayZapp, users would be saved form the hassle of loading preload money each time they conduct a transaction, thereby allowing convenient and secure way of payment. Commenting on the partnership, Ritesh Agarwal, founder and CEO, OYO said, “OYO is committed to making the hotel booking process seamless and hassle-free. We deliver a superior app booking and room-service experience. As a result, the app now drives over 60% of our bookings. Making payment frictionless is the next step in wowing the customer. We have received positive customer feedback on the tie-up with PayZapp and how it complements the three-tap booking experience currently offered by the OYO app. PayZapp will help us reach new customers while enhancing the experience of our existing user-base.” Parag Rao, Country Head – Card Payment Products, Merchant Acquiring Services and marketing, HDFC Bank said, “Customer convenience lies at the core of every new initiative at HDFC Bank. We are extremely pleased to partner with OYO to provide 1-Click Payments through PayZapp. Our customer base is highly evolved in the online travel booking segment and we have witnessed a very enthusiastic response to the booking and payment experience through OYO. With this partnership we hope to further enhance this experience.” OYO, is presently operating in over 180 cities, and has more than 6000 hotels in its network and also has operations in Malaysia.
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International airport and convention centre expected to boost Chandigarh’s MICE standing With growing disposable incomes, proximity to nation’s capital and infusion of best of brands in its repertoire, Chandigarh has steadily evolved as an important centre for MICE and leisure segment travel. However, in order to truly reach its potential as a destination, there is a need to up the service quality – where in hotels have an important part to play, feels Rubal Chaudhry, General Manager, JW Marriott Chandigarh. By Shashank Shekhar
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ow significant is MICE to Chandigarh’s overall tourism landscape? How has it evolved over the years?
More and more MICE events are happening in the city every year. However, old bottlenecks, in the form of inadequate infrastructure, support facilities and passive promotions continue to impede the growth in this sunshine sector. There is a need to add a WOW factor to services which we as hotel industry can provide. Companies don't mind spending money for an exceptional experience, as it must act as a motivator for their employees to perform better. But at the same time most MICE groups have clearly defined budgets that have to be kept in mind.
India is going the global way and MICE is fast becoming a major part of its travel and promotional budgets. The business of MICE holds enormous potential for any country. It is estimated that a person travelling to a country for a conference or convention spends anywhere four to eight times more than a normal leisure traveler. They spend more on food, more on business Centre services. Over the past few years Chandigarh has truly evolved as a MICE destination. In fact it has established itself as an attractive proposition for the hospitality sector in the city. With the influx of high end brands, growing number of conferences, meetings, events held on a regular basis and the emergence of a high technology and a highly paid workforce Chandigarh has one of the highest spenders on leisure and corporate travel.
Tell us a little bit about your own MICE offerings.
JW Marriot Chandigarh has a dedicated team of experts for our MICE travelers whose primary concern is to ensure that we conduct their business in the most convenient and seamless manner possible. The hotel offers magnanimous banquet facilities spread over an area of over 30,000 sq. ft. ensuring the business is done in consummate style. Our wide range of fully equipped, private meeting venues, multi-media conferencing facilities and the banquet hall offer the perfect combination of efficiency and convenience. Going beyond the traditional,
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JW Marriott Chandigarh redefines business conduct with The Living Room – A space for ‘business meetings with a difference’. With an open kitchen, a lounging area and an open foyer, it offers a casual and relaxed environment for business meetings and blends the comforts of a living area with the benefits of tech-savvy meeting rooms. Considering, MICE, is an attractive proposition for the hospitality sector in Chandigarh, we roll out interesting packages keeping the specific demands of MICE audience in mind. To facilitate this, Marriott has introduced a unique concept called,
“Meetings Imagined” with an aim to tap on the purpose of the meeting and service accordingly. Based on the purpose of the meeting, the hotels provide expert tips and trends and gives access to an “inspiration gallery” to help guests to plan essentials. Our operations team consists of qualified, trained, experienced professionals who are well equipped to handle MICE events. The hotel also offers packaged dinner services and provides on-demand transportation options. Team Building activities like cooking competitions, Bar Competitions if our guests require such sessions are also conducted.
These days sessions for spouses accompanying for MICE like Chef Interaction, Spa sessions are quite in trend and the hotel also facilitates such events.
What percentage of your own overall guests comprise of the MICE segment? What are your important MICE markets?
MICE contribute about 20-25% of the total business of the hotel with Delhi and Mumbai being the predominant source markets.
Are there any bottlenecks in improving the current scenario? Where do you MICE segment heading in Chandigarh?
Chandigarh, as a city has grown tremendously over the past few years with potential for more growth. More and more MICE events are happening in the city every year. However, old bottlenecks, in the form of inadequate infrastructure, support facilities and passive promotions continue to impede the growth in this sunshine sector. There is a need to add a WOW factor to services which we as hotel industry can provide. Companies don't mind spending money for an exceptional experience, as it must act as a motivator for their employees to perform better. But at the same time most MICE groups have clearly defined budgets that have to be kept in mind. In the long run, the Indian market is very dynamic and will remain so, thus contradicting past trends and generating business from unexpected market segments. Hopefully, the full-fledged functioning of the Chandigarh International Airport is going to further boost the MICE growth in the city and addition of a Convention Centre can further fuel the MICE tourism in the city.
Presenting Unique Segments at BITB 2016
online travel B2B and Conclave
Conclave Anchor Technology is fast catching up, online is going to occupy even more rights in the distribution business. These come together and share their products and services. We also provide a learning curve for destination marketing, and the value of research. Our conference platform is created by a leading global player – come and share their findings, learn the trends in the game. Who will Exhibit: Online players from India and abroad, GDS, market aggregators, specialised sites for niche tourism.
Photo courtesy: www.reconanceco.com
ITB Comes to India. The best of ‘Glocal’ is here!
Whom will you Meet: Fraternity members, your clients across sectors such as airlines, hotels, brick and mortar agents, governments in India and overseas.
Just exhibit, or also explore partnerships, exclusive to Online + Technology Showcase for that extra bit more!
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‘Tajness’ – an operation philosophy at Taj reflects heritage and local ethos
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ith an eye on taking visitor’s experience to the next level, Taj Group of hotels has unveiled Tajness – the group’s brand and operations philosophy for the future. Seeking its inspiration from the nobility, Tajness blends it seamlessly with local cultures to deliver an unparalleled experience at its 100 hotels around the world. At the unveiling of Tajness at the flagship Taj Mahal Palace, Mumbai, Rakesh Sarna, MD and CEO, Taj Hotels Resorts and Palaces, explained how Tajness was a promise of sincere care for guests and stakeholders that honoured the past and would help shape the future of the company, recalling “On 16 December 1903, Jamsetji Tata created the Indian Hotels Company - a symbol of Indian pride and patriotism which laid the foundation of the values that guide us to this day. Tajness pays homage to Jamsetji’s vision with a promise of sincere care at its core. Tajness will come to life for our guests with hotels that are built with a sense of place, reflecting not just our heritage but also honouring the local culture through a set of rituals that are unique to every hotel, and rooms that provide the utmost in contemporary comfort. Tajness is also a commitment to our shareholders and partners through the delivery of consist-
ent growth, to our environment and communities by being a responsible corporate citizen and for the members of the Taj family in the pride they feel when they deliver excellence every day.” The Tajness experience at Taj hotels will focus on delivering a consistency in service and providing a taste of Indian tradition mixed with authentic local experiences. Signature Tajness rituals will be put into practice across all Taj hotels to guide the guest journey from the moment of arrival which honors local traditional welcome rituals. The Tajness rituals will also include the wake-up of gentle yoga and the afternoon tea that pays homage to local tea traditions, to the atmospheric sunset ritual that lights the way into evening and the sleep ritual that soothes into a restful slumber. A Tajness farewell ensures guests carry a bit of Taj with them; lasting memories that will bring them back for their next visit. Additionally, the ongoing product improvement plan through upgrade, redesign and refurbishment will deliver the Tajness consistency across all hotels and resorts. Tajness will be rolled out across all 100 Taj hotels in India and internationally on a phased timeline with completion scheduled at the end of 2017.
AccorHotels partners with AITTC in a bid to strengthen Indian-Australian tourism ties
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ustralia’s largest hotel operator, AccorHotels has signed an agreement with the Australia India Travel & Tourism Council (AITTC) to further strengthen opportunities for promoting tourism between Australia and India. As part of the new partnership, AITTC will endorse AccorHotels market-leading Optimum Service Standards program for Indian visitation. AITTC will facilitate a service training programme to help AccorHotels staff better understand cultural practices and learn basic greetings so they can respectfully serve these guests. Training is expected to commence in Sydney and Brisbane this August and AITTC will issue hotels with a certificate of accreditation once completed. AccorHotels launched its Optimum Service Standards for Indian visitation program to better cater to the specific cultural needs and growing numbers of Indian travellers to Australia and New Zealand. Accredited hotels have adopted services to meet the needs of this emerging travel market including the translation of hotel welcome kits, menus and business cards, Indian meals in the restaurant, Indian adaptor plugs, TV channels and newspapers to make guests travelling from India feel at home. In addition, AITTC and AccorHotels will be working together on promoting both inbound tourism from India as well as outbound opportunities to India. AITTC plays an important role in the industry by presenting a suitable platform for interested parties to connect, communicate, consult and collaborate on matters related to Australia - India travel
Simon McGrath Chief Operating Officer (CEO), AccorHotels Pacific
We have been very fortunate to develop a great relationship with the Australia India Travel & Tourism Council, and look forward to working with them to better equip our hotels with the skills and knowledge to welcome visitors from India. Since the launch of the Indian Service Standards our hotels have experienced an increase in growth from this market, and in particular incentive groups have been on the rise over recent months, a trend we expect to continue.
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and tourism. “Our goal is to see growth in bilateral tourism and this partnership with AccorHotels, which has strong presence in both India and Australia, so it will be win-win for both organisations,” says Sandip Hor, Chairman of AITTC. Chief Operating Officer (CEO), AccorHotels Pacific, Simon McGrath said, “We have been very fortunate to develop a great relationship with the Australia India Travel
& Tourism Council, and look forward to working with them to better equip our hotels with the skills and knowledge to welcome visitors from India. Since the launch of the Indian Service Standards our hotels have experienced an increase in growth from this market, and in particular incentive groups have been on the rise over recent months, a trend we expect to continue,” McGrath concluded.
Presenting Unique Segments at BITB 2016
hotels + resorts B2B and Conclave
Conclave Anchor
Ginger expands footprints in NCR with second property in Noida Expanding its footprints in the National Capital Region (NCR region) Ginger Hotels, the dominant budget hotel chain from the house of Tata’s, has launched its second hotel in Noida; Ginger Hotel Noida, East. With this, Ginger, now boasts of one of the largest room inventories in Noida. Its strategic location, in the heart of Noida provides convenient access to Noida Expo Centre, Electronic City, Corenthum Business Park, Pragati Maidan, Buddh International Racing Circuit and Delhi Expo Mart. The hotel is also in close proximity to Okhla Bird Sanctuary, Akshardham Temple and the Old Fort. The hotel’s location allows access to a multitude of other services like medical, entertainment and banking within the radius of a kilometer. With 96 smartly designed rooms, professional and efficient team to serve you with a smile, this sparkling clean hotel offers free high-speed wireless Internet, multi cuisine restaurant with 24/7 coffee shop, well-equipped fitness center, reliable security features and state of the art meeting facilities, the hotel is a great choice for today’s value conscious traveller. Reacting on the development, Rahul Pandit, Managing Director and CEO, Ginger Hotels said “This is an extremely proud moment for us as we launch our second hotel in Noida - a city that is continuously evolving as a business district and IT hotspot. We assure travellers of a delightful experience with us.”
The first need for any traveller, where ever he goes, is to find the right accommodation. Hotels are an essential constituent in travel, at different price points. In city hotels, resorts, and tier 2 and tier 3 cities across India, hotel building is witnessing an unprecedented growth. Branded business is fast catching up – over 50 brands are competing already. Who will Exhibit: Branded chains, stand alone hotels in different categories and different areas of the business, MICE venues, wedding venues, city business hotels, resorts in far flung exotic locations. Chains that have arrived in India and those yet not, equally find relevance. Leading vendors for the industry find equal prominence, as they position themselves meaningfully as partners in the business.
Photo courtesy: Lotus Greens
ITB Comes to India. The best of ‘Glocal’ is here!
Whom will you Meet: A strong B2B means finding your partners in technology, online space and also traditional travel agents and tour operators. Meet with new age aggregators and drivers of the business. Meet also franchise developers, brand managers and find out what is trending in the business.
Just exhibit, or also explore partnerships, exclusive to Hospitality/ Hotels + Resorts Showcase for that extra bit more!
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Mixed infra development aimed at cross-selling a growing trend in hospitality Architect Anand Sharma, Partner at the Design Forum International deciphers the growing trend of developing properties with an eye on cross-selling to boost profits by the hospitality industry. He explains in detail, designs that are finding traction among hoteliers and architectural concepts that are helping investors reap maximum benefits out of their investments. Guest column by Anand Sharma
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n the growing stature of the associative corporate sector, hospitality industry is one sector that is growing rapidly across the world. Growing business appetite along with increase in spending power of an individual, the hospitality industry is catering to higher number of attendees who are looking for hotels ranging from budget hotels to luxury ones. The hospitality sector broadly caters to two categories; work and leisure. There are spheres of convergence wherein components of leisure complement a work - travel focused property and vice versa; however broad contours remain well defined. On one end where hospitality is related to work travellers; the individuals consider factors such as accessibility, distance to airport, distance to major areas of business interest, well-tailored, no-nonsense service approach; on the other end hospitality related to leisure travellers consider factors such as proximity to tourist destinations, extra services, scale/area of the premises etc. Yet, there are certain common factors that are regarded by both the categories; quality of accommodations, quality of service as well as scope of area available. This article talks about hospitality from the eyes of travellers. The hospitality industry can be sub-divided into two broad categories: Stand-alone infrastructures which are independent, self-serviced and selfsustained infrastructures catering to work travellers with in-house support; and Mixed Infrastructures that are a part of a larger property, part of mixed use residential, commercial, retail developments that operate out of a bigger infrastructure plan where the hospitality infrastructure enjoys cross-selling and support from varied service providers who are a part of the wider plan.
Stand-alone
A stand-alone property has the benefit of ‘flexibility’ wherein decision making can be immediate in a changing scenario. Therefore, it can take a stand on the kind of rate it wants to offer guests, unlike chain hotels which have long procedures of getting approvals. This seems to be a big advantage of business travellers who look for flexibility in terms of tariffs, meeting spaces and services at the hotels. When we talk about stand-alone properties, location is regarded as one of the most prime consideration factor. There are two kinds of work travellers; one which is more of a transit traveller, who does not spend much time on a destination and is more of an in-out traveller. Such individuals look for stand-alone properties closer to the airports and railways. These travellers prefer to spend less time travelling, and hence base themselves out of a property close to the airports and railways where they catch up on their meetings and move out of the city. On the other hand are travellers who travel and stay in cities for a longer period and hence they prefer properties that are more centrally located preferably in the Central Business District (CBD), Secondary Business District (SBD)proximity or parts of SEZs and Industrial Parks, where they can utilize the business facilities and finds themselves close to all services they may need during their stay.
Anand Sharma Architect Partner, Design forum international
The mixed use infrastructures are mostly small to mid-size properties with not more them 200 keys in one entire structure. the denomination is the hierarchy of rooms which are either divided in 2 to 3 categories or have an exclusive service apartment. Another set can be the combination of above two categories but segregated in different towers or by different floors or separated by different access corridors.
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☛ Service Apartments is another category which is the fastest growing segment among hospitality in the NCR , Bangalore and Mumbai-Pune region which is more prevalent in Secondary and peripheral business districts due to lower real estate costs. Keeping in mind the popularity of standalone properties for business travellers, it is important to incorporate certain design considerations when raising a stand-alone property. For business travellers, it is more about experience. As such travellers, travel extensively they look for properties that are welcoming and warm which makes them feel more relaxed. Hence a lot of stand-alone properties invest in building interiors that impart soothing ambience in their guest areas as well as guest rooms. The colours of walls, artifacts and the choice of lighting impacts how the traveller perceives the experience. A very bold colour interior with lavish furniture in rooms can be a hindrance to the experience of the traveller but at the same time, warm pastel colours with contemporary design furniture will remove complexities that a work traveller can perceive. Alongside, it is also about the multiple interaction spaces that the property offers, which can be a factor for business travellers. Choice of meeting their peers at a café, over dinner, having conversation over drinks in a lounge, probably meeting in a formal boardroom environment or meeting casually in a lobby – can provide various options to the individual where they can find a suitable setting in relation to the type of meeting environment they seek. Also, in terms of stays – the stand-alone properties can be mid to large infrastructure properties that boasts to 200+ room capacity across a well-defined hierarchy. Where a basic room can look after the basic needs of an individual, suites and premium category rooms can satisfy their customers’ needs in terms of luxury, abundance of space to move around, a desk for work long side views of
the city, etc. A well-defined hierarchy of rooms will help in catering to all sections of business travellers ranging from corporates to small medium organizations. Added amenities within the campus will always be an attraction to work travellers as it gives them the opportunity to relax from a long travel or a day of hard-work. At this stage, health and fitness centers, spa and well-ness centers, beauty and personal grooming services will give individuals the time to look after themselves within a long and hectic working day. Beach homes is an example which talk about the infrastructures, The development is planned around a luxury hotel which caters to a large number of serviced apartment suites. The hotel is accommodated within a single tower with another two towers of high end luxury apartments. The three towers are all linked at the base with large dedicated lobbies to each tower. The developments includes a large list of amenities including restaurants, cafes, shops, spa, roof top bar and separate banquet hall wing.
Hospitality: A Part of Mixed Use development
A category with increasing popularity, as retail and mixed use developments increase along with commensurate increase in Floor area ratios (FAR), developments choose to incorporate hospitality components to the development, it works well for the development by bringing diversity, association with a hospitality brand. The constructions of retails in the world-over is preferred on the Ground to Second floors, therefore the balance FAR gets utilized in hospitality. Since mixed-use
developments locate themselves on high footfall zones like CBDs or high density residential neighbourhoods, the allied hospitality component benefits by default. also, benefiting the retail sector. The mixed use infrastructures are mostly small to mid-size properties with not more them 200 keys in one entire structure. the denomination is the hierarchy of rooms which are either divided in 2 to 3 categories or have an exclusive service apartment. Another set can be the combination of above two categories but segregated in different towers or by different floors or separated by different access corridors. The design consideration for the mixed use development is clean in terms of segregation of access to the units with respect to other components of the development by Segregated parking, valet, drop offs etc. The ease of access to the lower floors with retail facilities is the key criteria to make such developments. The retail or commercial sectors are easily accessible through the lobbies, lifts and escalators but at the same time not harming the security of the homes. Provision of smaller concierge lobby at the ground level coupled with regular lobby at the base floor of the hospitality segment. There is a Limited focus on options for food and beverages, idea being capitalizing on the options that the mixed use development has to offer. To make it more rousing there is a provision of recreational activities on the terrace and podium top. Merchant Plaza is designed as a contemporary neighborhood shopping and commercial hub, a great example to explain mixed use hospitality development. The scheme is a blend of elements designed to please the 5 senses: Vision, Hearing, Touch, Fragrance and Taste. Merchant plaza has been conceptualized to address three distinct end-uses: Retail, Commercial and Hospitality. Giving the priority to the exclusivity of the end-use, the access points are segregated by means of separate lifts and staircases. The drop-off points are also separated, well- defined and earmarked for the respective zones of the development. Service Apartments is another category which is a fastest growing segment among hospitality in the NCR, Bangalore and Mumbai - Pune region which is more prevalent in Secondary and peripheral business districts due to lower real estate costs this sector have a clear synergy with IT and ITES segment, with manufacturing hubs where assignment related travel keeps stay durations longer. This Can double up as financial products in addition to real estate, act as rental income generators for the investor. The service apartment sector allows for time-share cum rentable units with a service provider/hospitality brand on board. The design for the same is more flexible and have a possibility of shared ownership. The Most prevalent layout of being a Studio, followed by 1 Bedroom. these are more preferred with balconies, in a contrast to hotel rooms. These are more simple and clean on central facilities like food and recreation or health and fitness, takes advantage of the amenities that the campus mixed-use development brings.
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NRAI Report estimates over 20k crore tax revenue from standalone market in 2016
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As per the recently released report by NITI Ayog CEO Amitabh Kant, the chain and standalone market is expected to contribute an estimated INR 22, 400 crores in terms of tax revenue in 2016. Also, on the employment front, the restaurant industry is likely to provide direct employment to over 5.8 million people.
RAI India Food Services Report 2016 (NRAI IFSR 2016) was launched by Amitabh Kant, CEO, NITI Aayog (National Institution for Transforming India), GOI in the national capital recently. Commissioned by the NRAI and compiled by Technopak, NRAI IFSR 2016 is the only and most comprehensive trade report on the Indian food
services sector. Introducing the report, Samir Kuckreja, Past President and Trustee, NRAI said, “The NRAI’s 3rd research on the Food Services Industry is a comprehensive Report that includes results from in-depth interaction with a variety of companies, meetings with over 50 CEO’s, consumer research that covered 2000 people across 20 cities of
India and trade research at restaurants.” The report addresses international market perspective for nine countries including USA, China, South Africa, Turkey and UAE. The report also covers PE/VC funding in the industry and digital and social media marketing. NRAI IFSR 2016 estimates suggest that the total contribution of the restaurant
Amitabh Kant CEO, Niti Aayog
India has been on a high growth trajectory over the last couple of years. India’s exponential growth and consumption in terms of frequency of eating out and experimentation with cuisines and concepts has given the F&B services sector such a fillip that this industry is currently estimated to be worth USD 48 billion in terms of overall market size.
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industry alone would contribute 2.1% to the GDP of India by the year 2021. Commenting on the report, Amitabh Kant said, “India has been on a high growth trajectory over the last couple of years. India’s exponential growth and consumption in terms of frequency of eating out and experimentation with cuisines and concepts has given the F&B services sector such a fillip that this industry is currently estimated to be worth USD 48 billion in terms of overall market size. I am happy to unveil the NRAI India Food Services Report 2016, an industry paper that documents the various developmental parameters, for the F&B sector at large. I congratulate the NRAI team for spearheading a project of this calibre and wish them success for their future endeavours.” Rahul Singh, Honorary Secretary, NRAI, while presenting details from the report pointed out that the NRAI IFSR 2016 documents the unprecedented growth that this sector has witnessed while outlining some of the challenges our industry faces that pose a barrier to entry and optimal operational efficiency. He also noted that the report findings reveal that the food services market in India has triggered growth across a wide range of ancillary industries, thus providing a boost to the entire ecosystem. Key allied industries which support food services and have benefited from its growth are agriculture and food processing, supply chain and logistics, real estate, kitchen equipment, and commissary. While discussing the report, Riyaaz Amlani, President, NRAI at the launch event said, “The total food services market today stands at `3, 09, 110 crores and has grown at 7.7 % since our last report in 2013. This is projected to grow to `4,98,130 crores at a CAGR of 10% by 2021. This year alone, the Indian restaurant sector will create direct employment for 5.8 million people and contribute a whopping `22,400 crores by way of taxes to the Indian economy.” As per the NSDC, restaurants contribute the maximum manpower requirement within the hospitality sector. The report notes that the share of the organized market was merely 33%. Expressing distress on this, he remarked, “This is largely due to over regulation of our industry, the complex maze of approvals and licenses required and high tax brackets. It is about time that our industry’s socio-economic impact is recognized by the government, and it initiates immediate steps to unlock the true potential of this behemoth.” Commenting on NRAI’s contribution to the Indian food services industry, he stated, “I am delighted to report that a lot has been achieved at the NRAI already and we are expecting brighter days in the near future.” The main aim of the report is to aid entrepreneurs and investors take informed decisions and unite the industry under one banner.
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Korea undertaking phase-wise promotion to overcome lack of awareness: Byungsun Lee Byungsun Lee, Director, Korea Tourism Organisation detailed how Korea was systematically unveiling its new offerings to the Indian outbound, as a part of its modus operandi. Sharing that Indian outbound had registered an impressive 47 percent growing on a year-on-year basis, he stressed that Korea had a wide gamut of products to engage varied segments of travellers, and the larger challenge was creating awareness -which it is surmounting through a concerted and multi-pronged media outreach. By TF Bureau
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ow has been 2016 for you in the past six months? How has Indian outbound taken to Korea? What are your realistic expectations for the rest of the month?
We have consistently been one of the top three MICE destinations, globally, after USA and Singapore. Not many people know that. So, there is a strong MICE movement across India’s top tier-1 cities, but I am also witnessing an equally positive surge in leisure movement. We must admit here that the connectivity between the two countries has steadily improved, too. This year, especially, with Asiana Airlines – one of the major Korean Airline – having increased their weekly frequency from three to five times a week from July is a great development.
This year has been a great success for us, in terms of figures and attracting Indian tourists. Of course, as the head of Korea Tourism Board, it is my constant endeavour to increase footfalls emanating from Indian shores. We have recorded an overall increase of over 46 percent in footfalls in this year, compared to the previous year, in the first six months – which is very encouraging. I am very happy at the trajectory and expect this trend to continue moving north.
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What would you attribute this extra 47 percent surge in footfalls to? Where is it coming from? Leisure or MICE?
I think, it is a bit of both. Korea has been, traditionally, a very strong MICE destination. We have consistently been one of the top three MICE destinations, globally, after USA and Singapore. Not many people know that. So, there is a strong MICE movement across India’s top tier-1 cities, but I am also witnessing an equally positive surge in leisure movement. We must admit here that connectivity between the two countries has steadily improved, too. This year, especially, with Asiana Airlines – one of the major Korean Airline – having increased their weekly frequency from three to five times a week from July is a great development. Then Korean Air – Korea’s flagship airline – has launched a new flight from Delhi, which is a direct flight, operating five times a week, and created favourable conditions for enhanced bilateral footfalls between two countries. It is hoped to contribute to better air-connectivity.
Taking a look at current state of political relations between China and Korea, and given that both China and India are two countries can that quickly drive volume, would Korea take this thaw in bilateral relations with China as an opportunity to further concentrate on strengthening its foray into the Indian market? China, indeed, is the biggest market for Korea. It is also true that currently the political situation is not comfortable. However, I would like to share that the movement of tourists from China into Korea is still substantial. But as Tourism Boards, we have to always think about variety of markets, so apart from China – which continues to be a major market – we are considering India as the most important market for us. India is a very big country and its economy is very strong. The growth rate is among the best in the world and there is a constant increase in the middle-class with disposable incomes. There is a growing number of people with higher propensity for travelling abroad. So, we are playing an active role in engaging with these consumers.
Despite growing numbers in leisure and MICE segment, a major area that has remained long neglected is Buddhist tourism. India has rightly
58 million USD investment in Philip Island Nature Parks to boost eco-tourism Down Under
been focussing on employing luxury trains covering Buddhist destinations. What steps are you taking as a board to highlight the Buddhist connect?
I want to develop some special interest tours in India and Buddhist tourism is certainly one of the segments. These developments have bilateral characteristics. Buddhism has originated in India and then spread to South and Southeast Asia. Places like Sarnath, Bodh Gaya and Varanasi hold immense significance for Buddhists. I would want more Koreans to come to India and travel through holy places and vice versa. Korea has some unique temples and its cultural heritage is splendid, because Buddhism in Korea is very unique. Our temples have maintained the gist and heritage of Buddhism, keeping them intact. Tourists can also enjoy the unique experience of staying in a temple with tourist offerings like Temple-Stay. But, growth in bilateral numbers will happen when the overall connectivity between the two countries increases. When bilateral connectivity gets stronger, tourism and movement, too, benefit from it.
Much of your media outreach seems to be focussed on Korea’s nightlife, beaches, culinary and cultural experiences. It seems slanted more towards attracting the leisure segment. Do you reckon that there needs to be a change in the style of outreach to attract a larger gamut of Indian outbound?
When I was posted here, I realised that while Korean products were household names in India, but awareness and knowledge about its standing and offerings as a tourist destination among the Indian outbound was rather weak, and still continues to be limited. It is unclear and that is why we started marketing Korea, first, as a leisure destination. I focussed on the Jeju Islands as a unique leisure destination, followed by Seoul – which is not just a big city with swanky skyscrapers, but has plenty of offerings for family visitors. It was when we had successfully created enough awareness about
these two destinations, we started with campaigns promoting other tourist offerings like Busan. Gyeongju is a cultural city that we are promoting. It has abundant history and boasts of UNESCO World’s Heritage site. So there are many offerings and points of advertising that we had to concentrate on tourist destinations first. Now, I am considering advertising and outreach, keeping in view special attractions points of interest like Buddhist tourism. It would be my next step.
So we could see some new advertisements aimed at attracting Indian outbound to newer destinations? Share with us some key activities that the Indian outbound has taken a liking to. First, I have to say that Korea is a very nice leisure destination for families, especially Seoul. Seoul has everything. The biggest theme park in Asia is not in Dubai, it is in Seoul. The Disneyland is many times bigger that the one in Hong Kong. It is a perfect place for families to unwind and enjoy themselves. Jeju Islands is gaining popularity as a destination for honeymooners and Golfing aficionados. So for high-spending tourists in India, we are starting a campaign on our offerings in Golf tourism and honeymoon segment in Jeju Islands. I, personally, think that Jeju Islands has better offerings for honeymooners than Maldives. We have even started Asia’s first submarine tour, so there is a plethora of attractions to enjoy.
You said that overall numbers have grown by over 47 percent on a year-onyear basis in the first six months of this year. Is there a realistic number that you would like to achieve from India in the near future? We catered to over 1,50,000 Indian visitors last year. And this year, we have already crossed 90,000 by the end of six months. So we are fairly confident of crossing the two hundred thousand mark by the end of 2016.
Australia’s unique and iconic Penguin Parade, held at Phillip Island, is one of Victoria’s most popular tourist attractions, and receives considerable footfalls. Its stature as a hub for eco-tourism has gained it several accolades and tourism. Given its importance in the larger tourism landscape of Victoria, it is going to receive a much needed upgrade, boosting jobs and tourism in regional Victoria. Premier Daniel Andrews has recently announced that the Andrews Labor government will provide USD 48.2 million in the 2016-17 Victorian budget for a major re-development of the attraction’s visitor centre. It will replace the out-dated 1988 facility with a larger and better equipped centre that has a smaller environmental footprint. Phillip Island Nature Parks will add USD10 million to the project for a total cost of USD 58.2 million. Phillip Island Nature Parks happens to be area’s largest employer, providing tourism jobs which are vital in regional Victoria. This investment has been made possible through the new USD 101 million Regional Tourism Infrastructure Fund (RTIF), designed to help boost regional tourism and drive new jobs across Victoria, and will be delivered as part of the upcoming budget. Already supporting 1,350 full time jobs, Phillip Island Nature Parks revamp is expected to create 620 additional jobs each year, including around 110 construction personnel while redevelopment is underway. The eco-tourism park is one of Australia’s most popular wildlife attractions with over 600,000 visitors per year to the Penguin Parade, and almost 1.3 million visitors per year to all of the Nature Parks’ attractions. This project will potentially increase visitation to the Penguin Parade by more than 20 per cent over ten years.
23
outbound : Taiwan
Taiwan intensifies MICE outreach with publicity of streamlined group visa policy In an attempt to shore up MICE traffic from Indian shores, Taiwan intends to highlight its streamlined, group visa policy – which makes it easier to obtain visa for corporate travel Arthur Hsieh, Director of Taiwan Tourism Bureau, Singapore Office, talks about Taiwan’s tourism products and latest footfall trends. By TF Bureau
shopper’s paradise much on the lines of Thailand and Singapore. Taipei has just opened its doors with the Gloria Outlets that is the first US style outlet shopping mall. While flying in or out of Taiwan, visitors can pick up all big and luxury brand names at huge discounts. Leisure travel to Taiwan constitutes a major chunk of the total visitor traffic. Taiwan is fast emerging as one of Asia’s preferred destinations for hosting MICE. MICE movement is on an upswing too thanks to its central location, first-class facilities and vibrant economy. To boost MICE traffic Taiwan has intensified efforts to gain publicity about the streamlined group visa policy in a bid to attract more Indian tourists.
S
hare with us some key trends in footfalls from India in 2016. What are some key source markets for Taiwan and where does India stand on the pedestal? India is one of the prime markets for generating tourist traffic and is now considered one of the largest outbound markets in the world. Delhi, Mumbai, Bangalore and Kolkata are leading source markets for Taiwan and important for us. The Taiwan Tourism Bureau is investing in India in a major way with both B2B and B2C campaigns. For a vast market like India, the market spend has increased exponentially in the last couple of years.
Given that there are a plethora of offerings like Beaches and adventure, nightlife and water-based activities, what is it that the Indian outbound, especially, takes a liking to?
Indians are becoming increasingly adventurous and thirsty for new destinations and experiences. Taiwan is catching the Indian travellers’ attention and there is a growing interest in this beautiful island, thanks to its superb location (a mere 6-hour direct flight from New Delhi); and because it offers the perfect amalgamation of fabulous food, superb night life and night markets; hot springs; culture; history and stunning natural beauty. Also Taiwan is one of the unexplored and upcoming destinations of South East Asia which makes it a unique offering for the adventurous Indian traveller waiting for new experiences and destinations in travel.
How big is shopping as a tourism activity? What is the percentage of Indian outbound that heads to Taiwan
Arthur Hsieh Director of Taiwan Tourism Bureau, Singapore Office
Taiwan is catching the Indian travellers’ attention and there is a growing interest in this beautiful island, thanks to its superb location (a mere 6-hour direct flight from New Delhi); and because it offers the perfect amalgamation of fabulous food, superb night life and night markets; hot springs; culture; history and stunning natural beauty.
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purely for leisure? How big is MICE?
Shopping in Taiwan is plentiful and varied. Whether a tourist needs to pick up a quick item at a convenient store or find a bargain at the night market, Taiwan has it all. The country is fast gaining popularity as a
Is there a realistic number you wish to achieve, in terms of Indian outbound into Taiwan? How would you define Taiwan’s USP? What makes it distinct from other Asian destinations?
What makes Taiwan unique is that it’s at Asia’s heart with a combination of stunning cultural sites, great food, shopping and the warmth and hospitality of its people. Taiwan’s a fusion of tradition with new trends. Its special characteristics and diversity present what is precisely a microcosm of Asia. It has an immensely rich cultural and spiritual heritage, amazing food, worldclass hot-springs and stunning scenery. “Taiwan – The Heart of Asia” has been voted as the ‘Best Value Destination’ for 2015 by Lonely Planet as well. This year, we plan to lay more emphasis on promoting the cities of Taipei, Taichung, Kaohsiung and Sun Moon Lake which are must-see in Taiwan!
Presenting Unique Segments at BITB 2016
Airlines + Airports B2B and Conference
Conclave Anchor
A major milestone in Visit Maldives Year, the Island Nation records 7.5 million tourist arrival Maldives, recently, crossed a major milestone in the tourist arrival target of Visit Maldives Year with the welcoming of 750,000th tourist. A Chinese tourist, Wang Shuai, was the distinguished 750,000th tourist to the Maldives who arrived with his family. They were welcomed by the Minister of Tourism, Moosa Zameer Hassan, Excellency Wang Fukang the Ambassador of China to Maldives along with senior officials from the tourism industry. This is the third event held this year to celebrate the achievement of arrival milestones of Visit Maldives Year 2016. One of the important targets of Visit Maldives Year 2016 is to achieve 1.5 million tourist arrivals this year. Visit Maldives year events are being undertaken throughout the year locally and internationally. The biggest international event being the partnership with ITB, the biggest international tourism fair held in Berlin, Germany as the host country. Upcoming events include Maldives Photography competition and Surfing Competition to be held in the Maldives. Tourism being the most important industry for Maldives, the VMY2016 campaign is expected to strengthen the industry giving more opportunities to locals to promote their products and services in a greater platform. India remains an important source market to the Maldives, and one of the biggest booming outbound markets in the world.
Tourism will thrive on the back of steady growth of airlines and airports, connecting seamlessly with other transport modes. Regional connectivity, national and international – India is one big growth area in the world. Our B2B segment combines with an authoritative conference, bringing world leaders to meet with their Indian counterparts. Conference Highlights: A meeting of minds that can see the ‘Future is Here’ in India. They debate how best to bring about a transformation in infrastructure, ‘Make in India’ in the aviation industry, and bring about an ease in travel. To increase industry efficiency and productivity for the greater good of the Indian traveller, create a roadmap of growth and success. Who will Exhibit: Leading aircraft companies, airports and airlines that are keen to meet with their counterparts, exhibit their latest technology and product profiles.
ITB Comes to India. The best of ‘Glocal’ is here!
Whom will you Meet: Meet with travel agents and online agents, and also those that seek synergy with other stakeholders in the tourism business.
Just exhibit, or also explore partnerships, exclusive to Aviation/ Airports + Airlines Showcase for that extra bit more!
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outbound : Dubai
With an eye on tapping luxury Indian outbound, Dubai sets sight on 20 million visitors by 2020
I
n a major push towards garnering higher numbers of Indian luxury outbound travellers, DTCM (Department of Tourism and Commerce Marketing) hosted a major roadshow on luxury tourism recently in the capital. In attendance were major luxury hotel brands, tour operators and promoters of niche products. Given that India continues to be the number one source market for Dubai, this concerted push to further diversify clientele base could not have been timed better. TF engaged with a number of senior representatives of companies in attendance, and there seemed an over-whelming concurrence that Dubai had long been focussing on boosting numbers from budget and middle-class segment of travellers. They argued that with rising disposable incomes, growing culture of exploring newer destinations and increasing propensity for spending money, the Indian market was right and ready for such an outreach. Taking stock of Dubai’s evolvement as a destination, in the last few decades, stakeholders reminisced its dynamic transformation from being a mere stopover destination to a full-fledged leisure and MICE getaway and a regional hub, connecting major destinations across Europe and the United States. Robust air-connection with India was also a major factor behind growing numbers. During extensive interaction, various representatives re-iterated
that luxury tourism in Dubai was affordable in nature and thus an ideal core segment to push in Indian market. They argued that the pricing was way better than what was being offered in Europe, America and, even in, Southeast Asia, highlighting that it remained one of the key USPs of its offerings. Noting that the larger industry was brainstorming on ways and means to boost yield of packages that were being offered to the Indian outbound, a senior representative stated “our bigger challenge would be to strengthen our capacity and create enough pull to make our guests spend more nights in the city.” We spoke to a select few representatives of top hotels, luxury tour operators and travel agents to get a better sense of Dubai’s market, its varied intricacies and India’s standing therein. It is true that India’s luxury outbound is yet to acquire the stature – where it could realistically influence the economy of visiting destinations – but Dubai’s outreach signals the growing clout of Indian outbound. It also has a lesson for India: Constant attempts to diversify consumer base and increasing the economic value of tourist visit is a smart way forward and a healthy alternate to single-minded fixation on augmenting numbers.
A detailed report by Shashank ShekhAr
Tour operators and agents must push to reposition Dubai as a luxury destination Syed A Asim, Executive Director, Bonton Group of Companies bats for a concerted effort from travel agents and tour operators to re-position Dubai as a luxury destination. He stressed that the phenomena of undertaking a luxury vacation was beginning to catch pace and likely to grow in coming years.
I
ndia’s luxury market is an evolving one. So, such an intense focus on augmenting numbers from India signals that the segment is at the cusp of major growth. What is your take on the same?
Yes, India is not a mature luxury market, but that is where the potential lies. India has the potential to become a big luxury market. When you look at any other industry, and talk about economy, people take automobile industry and other such sectors as benchmark. If you look at these industries, India has already become a luxury market for those sectors. Therefore, India has the thrill and the will to become a luxury market. Travel and tourism is one such industry – which is slowly finding its feet among Indian populace. Now people are getting more aware about the possibilities of travelling to newer destinations, riding on the back of economic growth in the past years. Now, even the middle-class is aspiring to have some luxury products. It is becoming popular, especially, among IT executives and similar such professionals to take holidays and explore unseen parts of the world. It was a culture, mostly, prevalent in western countries, but with rising disposable incomes and avenues to undertake travel, Indians are beginning to travel in large numbers. People these days take long vacations and travel to long-haul destination – which was so not the case some years ago. People, earlier, were more focussed on economics of travel, but the new breed of traveller focusses more on experience side of it and money is not a hindrance, if one can cater to that expectation and experience that the consumer expects.
If you talk about India and speak to a number of travel agents, they have sold Dubai as an economy destination. That is the message that has gone out to probable tourists; it has benefited Dubai, also. A lot of people who got to know about Dubai, but for them, whatever they were selling – whether it was Dubai as a stopover destination or any other viewpoint – now they have to take it a step forward, and look towards positioning Dubai as a luxury destination. Instead of fighting on pricepoints, travel agents and tour operators will have to position it from a luxury perspective. One has to take the message to the larger audience that Dubai has a lot more to offer as a destination, in the luxury segment.
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How do you this trend moving forward in the coming years? What are your expectations of the Indian market?
The moment a phenomena gets triggered in India, whether it is a mobile phone or automobile, or any other sector or good, it catches up very fast. There is a dominos effect. When it comes to travel and tourism, the effect of seeing neighbour and then taking a call on one’s next vacation is very high in India. Unlike many other western countries, India works in a different manner. It means that the moment when experiential holiday-
ing catches up in India, it will catch on like wildfire. That is why I say this with conviction that India holds tremendous potential as a luxury market for the rest of the world.
Where does India stand for you as a source market? For your own company, how significant is India? In terms of potential, as I said before, it very high. In terms of where we are, realistically, it is very low. As far as overall traffic and movement is concerned, India is a huge market. But if you speak, specifically, about
the luxury segment, it remains low. The potential remains completely untapped.
And why would say that? What does this glaring omission exist? Dubai is well-known in India, but its varied offerings and the magnitude of products that tourists could enjoy, remains unpublicised. How would you reckon it should be addressed?
True. If you talk about India and speak to a number of travel agents, they have sold Dubai as an economy destination. That is the message that has gone out to probable tourists; it has benefited Dubai, also. A lot of people who got to know about Dubai, but for them, whatever they were selling – whether it was Dubai as a stopover destination or any other viewpoint – now they have to take it a step forward, and look towards positioning Dubai as a luxury destination. Instead of fighting on price-points, travel agents and tour operators will have to position it from a luxury perspective. One has to take the message to the larger audience that Dubai has a lot more to offer as a destination, in the luxury segment. It is in this light that I think this roadshow is a step in the right direction and at the right time. There is a large number of people in India who have the requisite finances to undertake a luxury vacation in Dubai, but they would be first time travellers! If you look at the profile of Dubai, it is very similar to India. India and Dubai, both, are multicultural and multifaceted countries. The type of food, language and culture has much in common. The number of Indian expats is huge and it is rightly called ‘Mini India’. So there cannot be better place than Dubai to experience all of it and more.
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outbound : dubai
In a boost to leisure travel, outbound taking to weddings in Dubai: Kulwant Singh Kulwant Singh, CEO and MD, Car Fare and Lama Groups LCC noted that higher incomes and convenience was fuelling the trend of weddings in Dubai. He argued that city’s vast infrastructure and constant focus on enhancing ‘ease of travel’ were acting as catalysts in this interesting development.
W
hat is your take on this outreach by Dubai Tourism? What is your understanding of the Indian market in the luxury space? Given that India continuous to grow at an impressive pace, a deeper foray into luxury could not have been timed better. Is not it?
Indeed, luxury road shows like these provide a crucial platform for interaction with the industry and we are very happy that the Department for Commerce and Marketing of Dubai has taken this initiative of bringing out such a large delegation with a mix of luxury hotels and large DMCs – which are representing Dubai as a luxury destination. Dubai is a luxury destination, not that it does not cater to masses. It also caters to masses; we are a very mass-focussed destination with a large number of arrivals from the Indian sector. Of course, India is the largest incoming market for Dubai with over 1.6 million visitors each year. But we still feel that there is space for niche clients who are high-spending tourists, who could use Dubai for weddings or as a luxury destination with some of the finest hotels in the world. We have got Versace, Four Seasons, One & Only, Armani; some of the large brands of the world are based out of Dubai. I think it is very important to understand
India remains a very key and focused market for us. It is very important market. Also with enhanced connectivity between India and United Arab Emirates and proximity from India makes it an ideal destination to explore. For Lama Tours, we have a huge focus on the Indian market. We maintain a high year-on-year growth rate, nearly 15-20 percent. So, India surely holds key importance to Lama Tours. We had started our operations in the market about 18-20 years ago, and with our roadshows and continuous interactions with the market, from time to time, we ensure that we remain connected with larger stakeholders, in order to bring more and more visitors into Dubai from Indian shores.
that Dubai has these exquisite and unique services that consumers can avail. So, looking at it from a global perspective, Dubai, certainly, is one of the most important luxury destinations.
You specifically mentioned that Dubai caters to specific niches and to certain extent, it could be its USP. How big is the wedding segment in Dubai? Has the Indian outbound really taken to Dubai as a wedding destination? If yes, why?
Absolutely, yes. Weddings are a huge hit in Dubai. And there are many reasons for this. Dubai has huge hotels with large capacities. We have a huge ground transportation facilities available. Dubai has a very cosmopolitan character. It caters to all nationalities and all kinds of segments. It hardly matters where the families are from; Dubai has such a multicultural outlook that everyone feels comfortable. Beside wedding, Dubai acts a gateway also for clients who focus on niche and high-end products.
Talking specifically about your own venture, how important is India for your business? Is it one of your key source markets? India remains a very key and focused market for us. It is very important market. Also with
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enhanced connectivity between India and United Arab Emirates and proximity from India makes it an ideal destination to explore. There are multiple connections and air-connectivity has improved by leaps and bounds. For Lama Tours, we have a huge focus on the Indian market. We maintain a high yearon-year growth rate, nearly 15-20 percent. So,
India surely holds key importance to Lama Tours. We had started our operations in the market about 18-20 years ago, and with our roadshows and continuous interactions with the market, from time to time, we ensure that we remain connected with larger stakeholders, in order to bring more and more visitors into Dubai from Indian shores.
Excellent connectivity and gamut of clientele driving India’s stature as a source market for hotels Sajeev Vasudevan, Director of Sales- Groups, The Ritz -Carlton DIFC exuded confidence that, driven by robust air-connectivity and increasing buying power, India was on the right track to becoming a key source market in the luxury segment for Dubai in the near future.
T
ell us a little bit about your hotel. What segments do you primarily cater to?
As a brand, Ritz-Carlton is known worldwide in the luxury segment. We are a brand that originated in the US, and we are now expanding to newer territories like Japan. Dubai, as a destination, is the hub for tourism, because of its central geographical location. The amount of travel undertaken by people, from world-over, to Dubai has been growing significantly over the years. And that is why we came there five years ago. We are strategically located in the heart of the city; close to the Burj Khalifa and merely fifteen minutes’ drive from the airport. We, also, are the only hotel connected with Dubai’s financial centre, so our hotel is a mix of, both, leisure and corporate travellers.
How has Indian evolved as a source market for Dubai over the years? What factors have contributed to this growth?
India is an emerging market and that is why you witness such an enhanced sense of focus on it. India is one of the countries that brings volume business to destinations, and Dubai’s proximity to India is also a key factor in fuelling this growth. India is number one in terms of travellers coming into Dubai. And, India has a wide range of clientele, right from luxury to economy-class travel-
Luxury travellers from India, have traditionally, preferred travelling to Europe or the USA. That mindset has changed because of Dubai ascent as a luxury destination on the world map. People can buy properties in Dubai and it has become the hub for the entire Middleeast region. Most of the global corporations have massive representation in Dubai. There was always a small segment of luxury travellers from India, but those numbers are steadily increasing. I believe, DTCM is here to target that segment and figure out how we can get more luxury clientele from India.
lers. Normally, in other markets, you have clienteles on the extreme spectrums – which comes as huge support to Dubai’s overall tourism landscape. Another major factor that has steadily contributed in increasing number of Indian travellers is the excellent air-connectivity. It takes lesser time to fly to Dubai from Mumbai than some of the domestic routes!
How is the overall engagement shaping up? On what contours are these engagements happening?
Dubai’s industry is closely working with India, in terms of wedding groups, MICE groups and FITs. There is heavy focus on Indian market. Emirates is adding up frequencies. So it is very multi-pronged in nature.
India’s luxury segment is beginning to shape up and is far away from becoming a mature market. It is still sometime when Indian luxury outbound begins to actually impact the economy of visiting destinations. How do you envisage that trend panning out?
Luxury travellers from India, have traditionally, preferred travelling to Europe or the USA. That mindset has changed because of Dubai ascent as a luxury destination on the world map. People can buy properties in Dubai and it has become the hub for the entire Middle-east region. Most of the global
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corporations have massive representation in Dubai. There was always a small segment of luxury travellers from India, but those numbers are steadily increasing. I believe, DTCM is here to target that segment and figure out how we can get more luxury clientele from India.
You have shared detailed insights on key trends from India, but looking
at global markets, what are some important markets for Ritz-Carlton?
Our top market is GCC region – which includes Saudi Arabia, Dubai and other neighbouring countries. It is followed by, for my specific hotel, United Kingdom, the USA and India. However, I am witnessing a shift in that trend now. India was on the fourth position, and is now slowly moving up to number three.
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the l a st pag e
Sports tourism comes to fore as the world celebrates Olympics 2016
BaÍa de Guanabara and Christ the Redeemer
The biggest sporting event in the world – Olympics – is underway in the Brazilian capital. More than 10,000 top athletes, from the world over, have assembled in the coastal city of Rio de Janeiro to participate in the extravaganza, slated to be held between 5-21st of August. Expected to boost the nation’s slagging economy, marred by political controversies and outbreak of life-threating Zika virus, as per official estimates, Brazil will host, at least, half a million foreign visitors during the two-week event. The ability to successfully host such a massive undertaking signifies a nation’s preparedness on several fronts, especially its desire to showcase its prowess on infrastructure and connectivity front. With the world’s media bestowing generous coverage of the event, it allows Brazil a never before opportunity to position itself as a desirable destination for travel. Our own forays in holding international level sporting events have been below satisfactory, to say the least. CWG fiasco, as an image, still remains indelible. While all eyes are on athletes and the medal-tally, it would be prudent for our agencies to, also, look into Brazil’s preparedness for the mega-show. We could learn from their experience and adopt some of their successful measures. India must envisage a long-term plan and ensure that as an when it hosts the next major international sporting event, it does the country proud.
PM Modi with the Indian Olympic delegation
A snapshot of the opening ceremony
A panaromic view of Ipanema beach
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