Tourismfirst february issue

No.U(NDGPO)-01/2016-2017 Date of Publication: 14/02/2016 RNI No. DELENG/2015/62794 Posting Dt. 12-17/02/2016 Postal Reg. No. DL(ND)-11/6180/2015-16-17

Vo lu m e 1. I s s u e 10 . F e b rua ry 2 016 . ` 5 0

Jaisalmer comes alive this month with its annual Desert Festival... pg 30

Ajay Singh Unplugged

Speaking at the recently concluded annual CAPA Aviation Summit in Mumbai, SpiceJet owner, Ajay Singh was at his candid best. Bullish on regional connectivity, he said his own airline future aircraft acquisition would be based on 10-15 years perspective of growth and development… pg 10

‘Make in India’ set to push manufacturing; stimulating travel, tourism and hospitality

The government’s efforts to create a manufacturing base in the country, replicating the successes achieved in the services sector in the past decades, have crystalised in the week-long ‘Make in India’ conference in Mumbai. It is widely believed that manufacturing will provide that additional stimulus to travel and tourism in forms of enhanced corporate and MICE movement, for both tourism and hospitality.

Book releases at the event: the PM with Commerce Minister Nirmala Sitharaman and Niti Aayog CEO, Amitabh Kant

Its time for Kasauli Rhythm & Blues Music Festival 2016

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he popular Himachal hill station, Kasauli will see playing out of the fifth edition of Kasauli Rhythm & Blues festival between February 25th27th. The three day long musical event is organized

by Genesis Foundation, a non-profit organization working towards saving lives of underprivileged children battling with chronic ailments. This year’s line up includes Tabla Maestro & Sultan of Strings (Ustaad Fazal Qureshi & Ravi Iyer), popular musical band Kanchan Daniel & The Beards, Bollywood playback singer Shilpa Rao, etc. The annual festival will be held against the picturesque backdrop of Baikunth Resort.

currentys

Indian outbound travel remains robust, amidst currency fluctuations (Page 6)

airlines & airports

Air India Express to enhance capacity by 40% in 2016-17; connect New Delhi (Page 12)

global exchange

Nevada keen on enhanced student exchange and ‘sister cities’, says Lt. Governor (Page 25)

new launch

The Park plans bigticket push for Zone brand; targets 20 units by 2020 (Page 29)

Kuoni Group valued at `9,800 crores; Zubin to continue as CEO of both Kuoni Group and VFS Global EQT, one of Europe’s leading private equity houses founded by Investor AB, Scandinavia’s largest industrial holding group and part of the respected Wallenberg Group, has made an open offer for publicly held shares of Kuoni Group at CHF 370 per share, representing 34.1% premium over the current 60-day volume weighted average share price.

Based on this offer, the Kuoni Group becomes a much valued asset at around `9,800 crore (on present currency rates, based upon 1.4 billion Swiss Francs). Zubin Karkaria will continue in his dual roles as the CEO of Kuoni Group and CEO of VFS Global. Our sources say this should be a major development for the company as it would bring stability and long-term approach in developing the company further.

VFS Global has a large presence on the Indian market, and is fully owned by Kuoni Group.

However, Kuoni’s travel business in India (including SOTC) was sold off to Thomas Cook India last year.

Budget 2016

Maharashtra set to sign MoU for `2000 crore tourism projects

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he recently held week-long ‘Make in India’ mega-event is likely to bring a massive investment windfall to the host state cutting across different sectors. Maharashtra’s tourism too is hopeful of the event resulting in fresh capital generation for its greenfield and brownfield projects. “We are hoping to sign Memorandums of Understanding (MoUs) worth `2,000 crore during the Make in India Week. We expect them mainly to be under the wellness, hospitality and entertainment sectors,” MTDC Joint Managing Director Satish Soni was quoted in a news agency report.

The investments are also likely to be used for infrastructure upgradation around popular tourists destinations in the state.

“Maharashtra, which is expecting 6-7% growth in tourist arrivals this year, is upgrading its facilities and infrastructure in the tourism sector,” he was quoted as saying.

Our wishlist for tourism, hospitality and aviation looks at a holistic perspective that envisages a National Commission for Tourism, tasked to strengthen the Indian tourism product... pg 3

this issue : february, 201 6

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Our wish list for tourism in this budget

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n the concluding day of this rarest February (all seven days of the week have appeared four times in the 29 days month, probably after 500 years) when the finance minister Arun Jaitely rises to present his budgetary prescription for 2016-17, quite obviously the expectation of all industrywallahs cutting across different sectors would be no different than the previous occasions. They would like to see the FM singing the right tunes and doling out incentives which they believe will be catalysts for their businesses. Afterall, a Santa Claus act is what we ultimately expect from the FM on his d-day.

But going by the quintessential essence of the budget, they are not simply meant to endear themselves by allocation hike or giving tax rebates here and there. They can do something more formidable – by setting up the growth direction of specific sectors and here the push could also be non-fiscal in nature. The representatives of tourism sector too are keenly eyeing to see if Jaitely could spring some surprises for them from his briefcase. Within the tourism space, the most high decibel voice is from the hospitality industry which is demanding the threshold investment limit for infrastructure status to be reduced. With the new civil aviation policy and new tourism policy continuing to remain works in progress for reasons best known to the ministry mandarins (the much awaited policies will have direct bearing on Indian tourism’s growth story in the medium to long-run), somewhere it does become imperative for the finance minister to come out with measures which could signal government’s seriousness in paving the structural and holistic growth of tourism business. This is what we propose, measures which could be a game changer for the sector…

The government sets up a task force to set up national commission for tourism. This will identify what is truly unique about India, suggest making around them experiences that are truly exceptional and world class in quality and depth; provide connectivity both international and domestic including last mile; provide inter connectivity between each of them to enable a new circuit approach. Tackles issues such as competency and skills and integrates best examples from national programmes such as Skill India and Digital India.

Creation of 20 special tourism zones that will become magnets for investment, development of authentic Indian products for national integration and international discovery. These must be independently driven, with a learning lesson behind us gained from the fault lines detected in the creation of Delhi's Aerocity. Single window mechanism that proves ease in doing business has truly arrived.

Through these, restore, rejuvenate Indian art and heritage.

Create or extend policy of supporting start ups in tourism related infrastructure. In cuisines, small hotels and motels on private land, up gradation of dhabas towards making authentic and truly representative of Indian ethos. Start ups in hotels need to be defined as many amazing experiences around the country lack decent accommodation. These would be in budget or 2/3 star category.

Create urgently a sustainable environment for aviation and make the different arms like airports and airlines evolve a mutually acceptable and beneficial framework for long term.

Contents currents

4 HVS Conference in Colombo

Corporate

5 Kuoni Group gets a bid that values the company at `9800 crores, Zubin to continue as CEO of Kuoni and VFS Global 5 Online travel segment making brickand-mortar players re-think their strategy

Tourism Perspectives

6 Indian outbound travel remains robust, amidst currency fluctuations 7 A new getaway from the Capital, Neemrana inaugurates its Tijara Fort Palace

Airlines & Airports

8 CAPA convenes its Summit, shares its roadmap for sustainable environment 10 Ajay Singh Unplugged 11 Jet turnaround on course, says outgoing CEO; codeshares bring 26% additional traffic 12 Air India Express to enhance capacity by 40% in 2016-17; connect New Delhi 13 SIA’s another affiliate ‘scooting’ into India; will connect three destinations before May

States/Destinations

14 Looking beyond Russia, Goa diversifies into adventure activities: MD, Nikhil Desai 15 MP Tourism offers land parcels to the private sector; also brownfield segment 16 Kurukshetra to be brought on world tourism map, assures Haryana CM 17 Telangana launches Tollywood tourism, initiates Warangal circuit 18 J&K set to intensify tourism through monthly festivals, informs Secretary Shah

online : technology

19 Transitioning into a marketplace, Rail Yatri to offer food, taxi and hotel services to rail travellers, a first in this space

Hotelscapes

20 Not looking at foreign investments; may explore IPO route in 2-3 years, reveals S P Jain 21 Involving local community a must in creating experiences for visitors: Akhil Behl

Dr. Raghuram Rajan

RBI Governor explains why Dosa keeps getting expensive

What happens is that in an economy which is growing and when there are sectors which are improving technologically while other sectors are not improving their technology, the prices for the goods manufactured by sectors, that are not improving their technology, will go up faster. You are seeing it in the case of Dosa,

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Tony Fernandes

Founder Air Asia on how the anarchic 5/20 rule is restricting tourism

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We are like a mosquito in India. But a little bit annoying mosquito for some.

Dharmendra

Veteran actor during his first public appearance as Haryana Tourism’s brand ambassador at Surajkund Crafts Mela early this month

Vinod Zutshi

Tourism Secretary commented recently at a seminar emphasising the central ministry's efforts in expediting tourism projects

Haryana Government has given me a new role which is quite different from what I have been doing on the screen for so many years. I will do my best to do justice with this new role of being Haryana Tourism’s brand ambassador.

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Kaushik Vardharajan

Over the last six months, by virtue of flagship programmes of Swadeshi Darshan and Prasad schemes, Tourism Ministry has invested about `1,500 crore.

Money has been invested in various circuits and themes like eco-tourism, coastal tourism, Budhhist circuits, wildlife, deserts and religious places.

Vice President, Development – India at Hilton Worldwide explains why the trend of dualbranding properties is on the rise

A development with two hotels positioned at different levels of the market enables the hotel company to target demands at different price points and caters to customer segments with varied needs.

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global exchange

22 Enhanced economic exchange key to stronger tourism connect, notes Mongolian Ambassador 23 Hong Kong’s Harbour City mall exhibits the power of shopping in boosting footfalls 23 Indonesia to target tier-2 and 3 cities; direct flights may commence after Air-Garuda's fleet expansion 24 We will focus on IT, pharma, F&B and equestrian sector to boost bilateral connect: Irish envoy

Navin Berry navin@tourismfirst.org contributing editor: ritwik sinha ritwik@tourismfirst.org features editor: Priyaanka Berry priyaanka@tourismfirst.org senior writer: Shashank Shekhar shashank@tourismfirst.org editor:

25 Nevada keen on enhanced student exchange and ‘sister cities’, says Lt. Governor 26 India is our biggest market in Asia; will continue to invest more here than in China, asserts SA Country Head

niche: cruises

28 Inadequate services at ports; augment infra to compete, says Monarch Cruise CEO

new launch

29 The Park plans big-ticket push for Zone brand; targets 20 units by 2020

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 32

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currents

HVS conference highlights Sri Lanka’s success in diversifying into niche products to create an exciting tourism portfolio

Participants at a panel discussion at THINC Sri Lanka

A recently concluded conference on augmenting business related to the larger tourism industry stressed on the need for enhancing branded inventory in Sri Lanka. Participants, however, unequivocally praised Sri Lanka’s foray in to multiple niche segments, and pulling them off well.

By TF bureau

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conference on Tourism, Hotel Investment & Networking was recently conducted by HVS in Colombo, Sri Lanka. The event which was co-hosted by the Sri Lanka Tourism Development Authority (SLTDA) aimed at attracting global attention to Sri Lanka and creating value for all industry stakeholders with business interests in the country.

Speaking to us, over the phone, to share his understanding of broad takeaways of the conference, Manav Thadani, Chairman - HVS

Asia Pacific said that the conference was very well received.

“We had 173 participants from 14 countries who shared their concerns and expertise in enhancing the role of hospitality industry in improving overall tourism in the country,” he said.

The conference unequivocally praised Sri Lanka’s success in its attempt to create a number of niche tourism products. “The gathering expressed that unlike individual countries that have cultivated particular segments, Sri Lanka has been able to develop several niche segments with élan,” explained Manav

Thadani. “It has ample offerings in beach tourism, heritage, adventure and tea tourism; a rich amalgamation of Buddhism in the local ethos makes it a Buddhist draw, too. Besides, it has a healthy number of National Parks and waterfalls making it an absolute delight for nature lovers,” he added.

However, one of the major issues that cropped up during the course of several sessions was that Sri Lanka faced a serious crunch of supply, especially, in the branded hotel segment. If that was not enough, there was a broad consensus on the fact that

The conference highlighted the importance of tourism to Sri Lanka’s economy and its rejuvenation – which has been steadily gaining prominence with the closure of the horrific civil war spanning two and a half decades. According to several estimates, the island nation had registered an inbound traffic of one and a half million travelers in 2014, and is expected to add another million by the end of 2016. India, whereas, remained the number one source manav thadani country –and buoyed by chairman, HVS Asia Pacific substantial footfalls, now, Sri Lanka has ample offerings in the Sri Lanka convenbeach tourism, heritage, adventure tion Bureau aimed at an and tea tourism; a rich amalgamation ambitious twenty percent of Buddhism in the local ethos makes it a Buddhist draw, too. Besides, it has hike in corporate and a healthy number of National Parks MICE movements on a and waterfalls making it an absolute year-on-year basis. delight for nature lovers.

The conference saw a number of prominent speakers like Dilip Puri, MD - India and Regional VP the nation had a severe shortfall South Asia, Starwood Hotels & in skilled manpower in the hospitality sector. “We see it as a major Resorts; Dillip Rajakarier, CEO, impediment, and also understand Minor Hotel Group; Gonzalo Maceda, VP Development - APAC, that there are no quick fix solutions to this conundrum. It cannot Melia Hotels International; Hiran Cooray, Chairman, Jetwing Hobe addressed over-night. There must an intervention by the larger tels, and Kapil Chopra, President, The Oberoi Group put forth their tourism fraternity to address the views. lacuna,” opined Manav Thadani.

Bikaner House is now a discreet conference venue at India Gate

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n the heart of central Delhi, on the roundabout of India Gate, Bikaner House has for long been known largely as the central bus stop for road journeys into Rajasthan. This was till recently. One of the oldest properties of the state government, Bikaner House has recently undergone a major metamorphosis, subtly recapturing the essence of Rajasthan. The change over has recreated its spaces into a conference hall, an art gallery, an open courtyard and also a boutique shop. An outsourced catering service has been contracted and Bikaner House now offers Delhiites an alternate venue for discreet conferencing. This sprawling edifice over 8 acres of land was built during the reign of King George V to accommodate and provide for princely accommodation in the heart of Lutyens’ Delhi. The design is functional and yet impressive.

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corpor ate

Kuoni Group gets a bid that values the company at `9800 crores, Zubin to continue as CEO of Kuoni and VFS Global

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uoni entered into a definitive transaction agreement with an affiliate of EQT, which will launch a public tender offer for CHF 370.00 in cash per registered B share. The planned transaction is to be implemented by a voluntary public tender offer. This announcement follows a competitive process with EQT as well as a number of other interested parties over the course of several weeks. As long-term investor, EQT will strengthen and expand Kuoni Group’s global business activities.

EQT is one of Europe’s leading private equity houses founded by Investor AB, Scandinavia’s largest industrial holding group and part of the Wallenberg Group. EQT is committed to invest in the continued development of the Kuoni Group in order to enable the company to grow and strengthen its position as a leading service provider to the global travel industry and governments and to further increase its profitability. Group CEO Zubin Karkaria together with the current management team will continue to lead the company. The operational measures announced in November 2015 to accelerate the implementation of the defined strategy will be carried out as planned in 2016.

“Over the last months the Board has very carefully ana-

Group said “We welcome lysed all strategic options in EQT’s investment in the Kuoni order to secure the sucGroup, which underlines the cessful implementation of attractiveness of our busiKuoni Group’s strategy. As ness activities. With the new a result of this detailed and owners we will be able to accomprehensive analysis and celerate the implementation a competitive process, the of our strategy. Investments Board concluded unaniin technology and supporting mously that taking Kuoni acquisition opportunities give private and handing over the Kuoni Group an excelthe responsibility for the lent platform to build further group to an internationally on its leadership positions renowned new owner with in travel industry services. comprehensive experience EQT has an impressive track in managing and further record of growing companies. developing industry leaders, With access to their experiwith the necessary financial ence and network in both the strengths and with a long travel and tech industries, we term perspective would will be able to accelerate the be the ideal solution to the zubin karkaria implementation of Kuoni’s benefit of all stakeholders,” CEO, Kuoni and VFS Global strategy.” said Heinz Karrer, chairman We welcome EQT’s investment in the The joint management of of Kuoni Group’s Board.

Kuoni Group, EQT has an impressive Kuoni Group by EQT and the Michael Bauer, Partner at track record of growing companies.

Foundation, the key pillars of EQT Partners in Zurich said: With access to their experience and network in both the travel and Kuoni Group's future develop“EQT is proud of taking over tech industries, we will be able to ment and the Foundation's the responsibility for the furaccelerate the implementation of future involvement in Kuoni ther successful development Kuoni’s strategy. will be set out in this agreeof one of the world’s leading ment. Key terms of the travel services provider. We agreement will be disclosed follow an industrial, longin the offer prospect. Karl further increase the attractiveness term oriented approach Hofstetter, Chairman of the Board of the Kuoni Group for clients, when investing into companies of Trustees of the Kuoni and business partners and employees. to build sustainable market leadHugentobler Foundation: “The This marks the starting point of ers. It is our ambition to enable strategy jointly targeted together a very promising era for Kuoni to the Kuoni Group to strengthen with EQT for the sustainable decontinue to build successfully on the market position of its busivelopment of the Kuoni Group is its 110 years long journey.” nesses, both through organic convincing and accords with the Zubin Karkaria, CEO of Kuoni growth and acquisitions, and to

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Foundation’s purpose. The Board of Trustees supports the takeover offer. We also reaffirm our intention to remain invested in Kuoni as long-term shareholder.”

Kuoni Group focuses on three core activities: Global Travel Distribution (GTD) is an industry pioneer and a highly experienced, leading global distributor that provides travel companies with easy access to hotel accommodation and destination services. It sells approximately 38,000 room nights per day online. More than 40% of its turnover is sourced from fast growing markets in Asia, the Middle East and Africa markets.

Global Travel Services (GTS) sources and coordinates destination services - from accommodation, transportation, tours and activities to venues and event management. GTS is the number one player in the growing group travel market and handles 50,000 leisure tours per year. GTS generates 60% of its turnover from Asia/Pacific source markets.

VFS Global, the industry pioneer and world’s leading visa services provider, works for 48 governments, operates 1,837 application centres in 122 countries and holds an estimated 50% share in the Asia/Pacific region.

By TF Bureau

Online travel segment making brick-andmortar players re-think their strategy The burgeoning online travel segment is a testimony to a growing number of internet users in India. With offline players slowly moving into the online space, it demonstrates how the advent of e-commerce has forced the brick-and-mortar players to alter their strategy to remain meaningful.

By Shashank shekhar

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nline booking companies have become ubiquitous in India, thanks to a growing number of travellers who wish to exercise the advantages that come with it. According to Goldman Sachs’ recent report on travel and e-commerce, India’s online travel market is expected to grow from USD 8 billion in 2014 to USD 40 billion by 2030, as internet penetration increases and more and more people look for online solutions to travel and other programs.

While according to a survey by the US-based travel consulting firm Phocuswright, the size of the Indian travel market in 2014 stood at 90, 000 crores, out of which the share of online travel market was just 36,000 crores. With greater penetration of internet into tier-2 and tier-3 cities, this share is set to grow leaps and bounds over the next two decades.

Given the trends, hotels and packaging segment which remains under-penetrated may turn

out to be the key growth driver in the OTA space. The prospect of a billion people online by 2030 has set the stage for enormous growth in e-commerce. The numbers are a testimony to that spurt. The online travel share of the total Indian outbound is currently at forty percent, and growing at a staggering rate of 15-20 percent each year.

After all, the degree of customization, offers and the benefit of choosing from the best available itinerary – all put together seamlessly under a single umbrella is a lure that creates the pull, and is a primary reason for consistently growing numbers of travellers opting for online booking. Kapil Goswamy, MD, BigBreaks cites a number of reasons for this growth and his confidence for carving a niche for himself in a crowded market of online providers.

Stating that the online market in India currently stood somewhere around forty thousand crores, he said that, “despite huge numbers, there are only a handful of major players in the country. So, in the e-commerce segment, the space

is wide open for others to vencreating that experience. For ture into. It is an opportunity a long time now, I have felt a that must be tapped.” gap that leaves customers a However, with the growth little unfulfilled, despite the of online operators, offline best of travel itineraries and players have found it increasofferings. I realized that while ingly difficult to compete. the industry was offering them With the limitation of their standard deals, they lacked physical presence and a the flexibility of personalizing small set of staff, their contheir trips,” he shared. He told cern is legitimate. Given the us that he felt that travellers growth of online segment in had to compromise on their the past years, some even small desires and quests to fit fear the complete wipe-out in their plans. He hoped that of brick-and-mortar segment. he could, through his endeavKapil Goswamy, too, had a our, tap this market with better similar notion. He opined offerings and more personthat only a handful of operaalized services. “Besides tors who were, either, funded offering regular flight and by corporate or had an estabhotel bookings, we specialize lished presence with a long in offering customized deals to Kapil Goswamy MD, BigBreaks history were going to resist our customers,” he told us.

It is a tried and a tested model of the online onslaught. “It is a Giving us his underevolution, and is not unique to India. tried and a tested model of standing of the Indian It has happened world-over. We must evolution, and is not unique look it as an opportunity to innovate and tourism market, he said that to India. It has happened the domestic travel was a huge create unique solutions for travelers, instead of resisting the inevitable. world-over. We must look it segment. And, the attraction of as an opportunity to innovate travelling to different destinaand create unique solutions tions made it a wide-open for travellers, instead of resistarena for players to foray into. ing the inevitable,” he reasoned. standing of consumer preferences “If a traveller in Karnataka wants He further said that Indian through one-on-one interactions, to go for a char-dham pilgrimage, travellers were not only keen on af- offline players venturing into where does he get the choice,” he fordable pricing, but, also, wanted the realm of online were better questioned. He said that besides experiences and personalization. suited to cater to their needs. “For Gujarat which was a very-well He said that travel was something Indians, travelling is a special penetrated market, much of the that was not done on a daily basis. experience. Therefore, they stick domestic Indian market was yet And, having a profound underto an operator, if it is successful in to mature.

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tourism pe rspectives

Thailand remains amongst the most popular destinations for Indian outbound

Indian outbound travel remains robust, amidst currency fluctuations Given the fluctuation in the rupee, vis-à-vis the dollar and other currencies, some interesting outbound trends have emerged.

Contrary to the obvious expectation that outbound would suffer on account of higher cost involved, Indian travelers are taking to newer destinations and figures indicate the industry is robust and destined to keep growing. with South-east Asia emerging as a clear favorite. There is no let up in the cruise market, India being a consistent growth market over the last many years.

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ommon sense dictates that a stable currency is a good omen for tourism and travel, as consumer sentiment remains positive. The last couple of years have been full of currency fluctuations. At the time when the article was filed, rupee stood at 68.83 to a dollar – which has risen consistently since 2014. Against one Pound sterling, rupee was at a hefty 98.98; and, at 48.39 against the Australian Dollar which has, in fact, come down from its peak in 2014. A look at how rupee stands against some of our neighbours tells us that while it has remained, more or less, stable at 48.91 to a Singapore dollar; it has dropped heavily vis-à-vis the Malaysian Ringgit, and stands at a measly 16.39.

As the dollar touches an all time high, many within the tourism fraternity have argued that the outbound to the USA could get impacted. An article in reputed English highlights daily went as far as stating that Indian outbound was Indian outbound remains down from all corners, robust and analysts and was going to have a predict a healthy growth to profound impact on the continue wider tourism industry.

After all, the Indian Southeast Asia continues currency has declined to be the favourite haunt for Indian travellers as much as nine percent vis-à-vis the dollar in the Indian travellers have last year. repeatedly proved their

ingenuity in devising ways and means to balance their travel budget Travel to US also appears unaffected inspite of weaker Rupee against US dollar

Karan Anand Head, Relationships, Cox & Kings

Another popular Southeast Asian destination: evergreen Hong Kong

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aran Anand, Head, Relationships, Cox & Kings, however, argued that it was not only the rupee that had suffered this fate. “Currencies across the world have experienced a decline in terms of dollar. For example, the Euro has declined by 19 per cent; the Malaysian Ringgit by 22 per cent; the Australian dollar by 22 per cent and the Thai Baht by nine per cent. But this depreciation has been reg-

Currencies across the world have experienced a decline in terms of dollar. But this depreciation has been registered only vis-à-vis the USD and not with other currencies. For the Indian customer, rupee impact is minimal.

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istered only vis-à-vis the USD and not with other currencies,” he said. It, essentially, means that despite the harrowing time that the rupee is witnessing, it is doing well with regard to Euro or other currencies, making travel to those destinations as competitive as it was before. He, in fact, noted that it was the devaluation of their currencies vis-a-vis the dollar which was going to continue fuelling more travel to those destinations. Adding that the number of Indians who flocked to European destinations and the USA had actually gone up, he said that, “for the Indian customer, rupee impact is minimal. They work around it by opting for group itineraries.”

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harat Dhall, president, Yatra.com observed that the fall of rupee with regard to the dollar was impacting the sentiment of travelers to the USA who get swayed by the perception that it was going to be difficult to manage expenses. “Although, there is an element of truth in the fact that shopping, local travel and dining does get a tad expensive. But, there is not as much impact on the outbound as some presume it to be,” noted Sharat Dhall. “It is true that most of the US bound travelers from India have friends or relatives in the USA, and they do not put up in hotels, but perception does matter. There has been some impact on the outbound to the USA, but Europe remains intact,” he added.

US and particularly destinations such as San Francisco have remained popular regardless of the rupee slide

R Rati Dhodapkar MD, Abercrombie & Kent Vacations

Fall of the rupee hadn't much impacted outbound from India, even when it came to the United States. The great asset USA had, for tourism, was segmented products with many price points.

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ati Dhodapkar, MD, Abercrombie & Kent Vacations, too, believed that fall of the rupee hadn't much impacted outbound from India, even when it came to the United States. She told us that the great asset USA had, for tourism, was segmented products with many price points.

Given that the rupee stood at 77.00 against a Euro, and it had actually come down from 2014, Europe may gain in outbound numbers.

Sharat certainly thought so. “We have seen tremendous interest in summer holidays in Europe for the next year,” he noted.

Giving further insight into the European market, Sharat said that the east European market was a niche market and most of the outbound preferred customized packages.

On a second perusal, rupee was better placed in comparison to currencies in South and South-east Asia, when put

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tourism pe rspectives

A new getaway from the Capital, Neemrana inaugurates its Tijara Fort Palace

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fter over one decade of battling it out, heritage property major Neemrana Hotels finally added one more feather to its cap last month. In a simple ceremony marked by the presence of some eminent personalities and members of local panchayat, the doors of its latest offering Fort Palace at Tijara, 40 km from Alwar in Rajasthan were opened for the guests. Hanging gardens, two pools to swim out to the horizon, an Ayurvedic spa, are some of the critical components adding to the grandeur of the 18th century fort’s new avatar. Neemrana Hotels is promoting this property as a weekend product given its proximity to the national capital.

Among the guests, Muzaffar Ali with Aman Nath

against the US dollar and the Euro. Its consequential impact can be gazed from the fact that there has been a substantial growth in outbound to the region. According to Sharat Dhall, as the rupee was doing better than the Thai Baht, South Asia remained a hot market for outbound. “In terms of top Indian outbound destinations, South Asia, Middle-east, Dubai and Australia have been doing well. Although, there had been a growth in outbound into Russia and China, they continued to remain smaller markets for Indians,” he explained.

Karan Anand, too, believed that the fall in rupee actually benefitted Indian travelers who wished to travel to overseas destinations as their cost of holidaying had declined – and this was most visible in increasing number of visitors to South Asian countries. “The trend has fuelled the demand for short haul destinations such as Malaysia, Thailand, Singapore and Hong Kong, and long haul destinations such as Australia and New Zealand, in this season,” he shared. He stressed that minor fluctuations in the currency did not have a great impact on travel plans of Indian leisure travellers. “Malaysia, Thailand, Singapore and Hong Kong are the most favoured destinations because of better connectivity, in terms of number of airlines operating to India and direct flights from India, and simplified visa processes,” he added to explain that robust air-connectivity also played an impor-

London is the Mecca for Indian outbound, looking westwards towards Europe

sharat dhall president, yatra.com

Although, there is an element of truth in the fact that shopping, local travel and dining does get a tad expensive. But, there is not as much impact on the outbound as some presume it to be.

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tant part in stronger footfalls to these destinations. “As travel to these countries has become cheaper due to the devaluation of their currencies vis-a-vis the dollar, it is an added advantage,” he further said.

Rati attributed the interest in unexplored parts of South and South-east Asia to continuous efforts by tourism boards, the travel fraternity and constant exposure by the media.

Industry insiders believe that despite the fluctuations in the currency, the urge to travel will keep the outbound numbers strong. Karan Anand said that the fascination to travel overseas was going to continue to remain very strong among Indian travellers leading to a non-stop growth in outbound. Sharat, too, believed that the continuing turbulence in the currency was not going to deter Indians from travelling overseas. He exuded confidence that outbound would continue to remain strong, “young Indians are continuously seeking more experiences and as the economic prosperity trickles down to tier-2 and tier-3 cities, we will continue to have more and more Indians heading abroad,” he believed.

Rati, too, noted that despite the currency fluctuation, and economic changes, the fundamental factors motivating Indian consumers to travel abroad remained intact. Adding that travellers may re-evaluate the scope of their trips and, maybe, opt for short haul destinations, she said that, “otherwise, it is business as usual. Indian vacationers are now, also, starting to experiment newer and unexplored countries, globally,” she opined.

airlines & airports

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CAPA convenes its Summit, shares its roadmap for sustainable environment By ritwik sinha

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he global aviation think tank CAPA’s annual jamboree in Mumbai held early this month was noticeable for a couple of reasons. Unlike in the recent years, an undercurrent of optimism was well visible this time. And for a pleasant change, the key discourse had significantly shifted in 2016 edition – stakeholders were not discussing how to keep their heads above the water (minimise the losses) but but rather how to make maximum hay while the sun shines (sustain the profitability with the cushion of low oil prices). As a dedicated global aviation think-tank, CAPA’s outlook for the next fiscal was the key highlight of the summit. And it was certainly more than just presenting a mixed picture. The outlook underlined several positive pointers even as it simultaneously cautioned the stakeholders to keep a check on their operational expenses (read the story in the following page).

Beyond the numbers, the twoday CAPA summit clearly had a holistic deliberation profile with some of the noted global aviation experts pointing out the broader trends panning out across the globe and how Indian civil aviation market can learn from those examples. For instance, CAPA Ex-

ecutive Chairman Peter Harbison, while emphasising on the growing might of Asian countries (including India) also minced no words in underlining that a more robust city pairing system is the need of the hour for most of the countries in the region. “With so many million plus population cities in countries like China and India, more robust city pairing is the way to go,” he emphasised. Noted global airlines strategist Nawal Taneja (an advisor to nearly 15 airlines in his over four decades long career) explained the disruptive forces which have engulfed the aviation business leaving the choice plain and simple for the stakeholders – in the emerging business order, you can either be a disrupter or an entity which has been disrupted. “LCCs, hub and spoke system, customer centric technological penetration are all disruptions in their own way meant to create a new value for the customers. These challenges will become more profound,” he cautioned. However, for the Indian market, he had an extremely positive analysis to share.

“74 percent of the population in emerging countries will take an air trip a year in 2034. India could do much better because its economy, unlike China, is not pushed by governments pending but rather by consumer spending.”

With consumer being the king and his demands varying

highlights

Strong growth trends to continue in the near run Global experts recommend special emphasis on robust city pairing in emerging markets like India

from time to time, serving them satisfactorily is a clear challenge for the online companies supporting air travel. “When it comes to travellers class classification, the watertight categorisation does not work anymore. They are indulging in more short-trips and in local activities than ever before.

We have to be ready to cater to this trend,” said Samyukth Sridharan, President and COO, Cleartrip during a session.

Another session focusing on foreign carriers’ operation in India stood out for its plain speak by the participants with Association of Asia Pacific Airlines (AAPA) Director General Andrew Herdman mincing no words in underlining that policy provisions have not done justice with Indian carriers. “ India is stuck in an environment where foreign carriers outweigh Indian carriers by 70:30

ratio in the inbound segment. You have a rule called 5/20 which is a serious impediment for Indian carriers. Focusing too much on the domestic segment could be a serious mistake in the long run,” Herdman warned. Other participants too emphasised that India has to be careful in drafting its future bilaterals.

These deliberations were clearly a learning experience for most of the attendees at yet another successful CAPA annual show which also saw some noted carriers sharing their medium run plans. While quantitative expansion is certainly their key priority, qualitative rejig also found adequate space in their scheme of things. The message that all the airlines are now equally focused on IT-enabled customer friendly initiatives was not lost on anyone.

“City pairing is a major opportunity in Asian countries” Peter Harbison, Executive Chairman, CAPA pointed at the rise of Asian countries, including India, as the driving region for the global aviation business. Later in an exclusive conversation with TourismFirst, Harbison emphasized out that stimulating intra-Asia traffic vis-à-vis new city pairs is a major opportunity. Edited excerpts: So you are fairly convinced that the global aviation equilibrium has finally tilted towards Asia?

Yes, there is no denying the fact.

The whole equilibrium of the global aviation business is now tilted towards Asia. You look at the number of aircraft​s ordered which is a dramatic indicator.

The orders from Asian countries wherein India has become a significant player is pretty much half of the total global order. If the well-established markets of Europe and North America are lagging behind in the order placement, that obviously means this region is growing more for the aviation business. Aviation is a serious business. If so much orders have been placed, the players must have done their homework.

And you think within Asia, this business will be largely driven by the LCCs?

Yes. But our own analysis points out that the segment which has not taken off in a major way here is the intra-Asian connectivity. It will not happen when you have four full service providers, all focused on long haul, high qual-

ity products. It will be fuelled by local carriers who mostly fly the distance covered between one to four hours. In South East Asia, we are noticing this trend unfolding. The pointer is: 60 percent of all capacity is with the local players in the region. But other parts of Asia have to catch up with this trend. Indian carriers, for instance, have a share of only 20 percent in capacity for international operations. The short haul aircrafts have not been able to effectively link in to India. It is very important because the new aircraft types – A 320 NEO or Boeing 737 MAX which are much in demand – can effectively operate on three-four hours distance route. And you just need to look at permutations across the cities in Asia which have over a million population. China has got 120 cities of that size, India has got 50-60. So the potential of connecting them more robustly is limitless.

So are you in a way saying that the critical challenge for aviation players in a country like India would be to have a more robust city pair routing

LCCs, hub and spoke model and customer centric IT penetration are new disruptions providing a new value; players have to attune to these changing trends Travel class categorisation is diminishing, online companies needs to be more agile Policy hurdles put Indian carriers in a disadvantageous position in serving international markets Experts advise abolition of 5/20 rules Too much focus in building scales in the domestic segment will not help in the long run Leading players commit major expansion, both quantitative and qualitative, in the near to medium run

system? And not only within the domestic circuit but also in the neighbouring countries and the region.

Yes. But it should not be seen as a challenge but as an opportunity.

The usual routes like Delhi-Singapore and Delhi-Kuala Lumpur are traditional routes now. It​​'s ​ the o ​ ther smaller routes which offer enormous opportunity. As I said there are so many cities in the region with one million plus population.

When we look at the case of India, the passenger growth is quite robust. But still it is playing out at seven-eight select locations. Airlines too seem to be disinterested in toying with the new routes. In your reckoning, what could be the reason?

On policy environment in India Emphasis on regional connectivity in the draft policy…

Policy intervention on regional connectivity could be a positive move but it may also mean pushing airlines on routes which they do not find commercially viable. So you have to create an environment wherein the regional traffic is stimulated. If there are faster trains to reach to a particular location, developing air routes centered in that location may not be too viable. One of the problems you have in India is that the country has a good railways network. But the circumstances are there for regional connectivity promotion in a big way and what you need is a bit of encouragement from the government. And that entails making airports capable of expediting the processes for airline operations, making sure that the airport connections into the cities are much better than what they are.

Can any progressive regulatory regime have space for a provision like 5/20?

I am inclined to use strong words. It is so ironic that it has given the foreign airlines the real advantage by not having competition from Indian carriers. The government should have looked at Air India example of how you protect an airline and it does not improve and you have to keep subsidising it. These measures have no meaning in a growing market and it is in the interest of Indian aviation that it should be abolished.

To tell you the truth, this is something I have not been able to fully understand. The opportunities are clearly there. It is a combination of things – it could be partly due to airports. Airport charges are not too sympathetic towards airlines. Low cost carriers need easy facilities and quick turnaround facilitation. This domestic growth has also come in very quickly in India, the​scene has dramatically changed in just a matter of ten years. So an effective strategy has probably not been drawn. But we do have a lot of undergrowth traffic in the region. And I think the players will realise it sooner rather than later and work on the economics. They will understand the merit of city pairing which w ​ ill ​ stimulate traffic. Creating new city pairs is like creating new roads. Passenger will eventually come.

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Indian airlines to raise $1.4 billion in 2016-17

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Pressure on yields may impact profitability in 2016-17, says CAPA CAPA’s latest forecast for the immediate term for Indian aviation clearly underlines that the profitability spell will be sustained. However, even with the cushion of low oil prices, airlines will have to keep on eye on their operational costs.

By ritwik sinha

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hile the latest outlook on the business environment in the aviation sector in 2016-17 released recently by noted think-tank CAPA paints a rosy picture in the near run on those usual growth parameters, it also aptly highlights the challenges which can't be overlooked.

Challenges which entail airline companies to fine-tune their operations to keep their costs in check to ensure that their bottomlines stay in the fine-fettle during the course of the next fiscal.

First the good news. According to CAPA, the surge in passenger growth primarily fuelled by low prices would continue unabated in 2016-17, something which has been the most defining trend in the Indian aviation space in the last one and half years ever since the oil prices began to nosedive.

In 2014, the price of Benchmark crude had fallen by over 45 percent and registered a further drop of around 35 percent in 2015. In concrete India specific terms, there has been a staggering reduction of 50 percent in ATF prices between August 2014 to now. “We expect the total passenger volume to further grow in 20 percent plus trajectory in the next fiscal and could well reach to 100 million by 2016-17 end. In the international segment, we expect passenger growth to the tune of 10 percent. It could even go higher 12-14 percent, subject

to clearance of new bilateral rights and abolition of 5/20 rules,” said Kapil Kaul, Capa’s chief executive (South Asia) while making his presentation at the agency’s annual summit in Mumbai early this month. India’s domestic carriers ferried 81.09 million passengers in calendar year 2015 – a growth of around 21 percent over the previous year number.

CAPA’s latest report also bore positive tidings on the financial performance front.

The losses of the airlines in India in 2015-16 are going to be significantly lower than what was earlier anticipated.

“We expect the losses of Indian carriers to come down to $250-300 million in 2015-16 as against $1.3 billion at the end of 2014-15. This marks a significant drop of 75 percent in the cumulative losses of the Indian carriers,” Kaul underlined. CAPA is expecting national carrier Air India to post an operating profit even as its net loss would be in the range of $600 million which would be lowest in the recent years. Other airlines too have fared well in the last one year.

“Spice Jet has shown a dramatic turnaround. It is likely to have a profit of $45-50 million on its balance sheet at the end of 2015-16 as against a loss of $107 million in the previous fiscal. Indigo had a successful stock market enlisting and is slated to record profits

does not creep into their operational structure. According to the aviation think-tank, recent trends show a modest growth in the Cost of Available Seat Kilometer (CASK) and this will have to be checked by the airlines to have more improved bottomlines in 201617. “Due to these challenges, we expct pressure on yields to be over 5 percent which may possibly impact airlines’ profitability,” warned Kaul.

There are also serious issues on the capacity front.

“Capacity constraints are clearly visible which continue to challenge growth.

Airlines occupancy at above 90 percent especially after Kapil Kaul Capa’s chief executive (South Asia) Q3 is signalling a serious We expect the total passenger volume constraint on this front,” to further grow in 20 percent plus Kaul pointed out. In 2015-16, trajectory in the next fiscal and could the capacity increase in the well reach to 100 million by 2016-17 domestic market was to the end. In the international segment, we expect passenger growth to the tune tune of 10.12 percent while of 10 percent. It could even go higher on the international side it 12-14 percent, subject to clearance of was 6.16 percent. However, new bilateral rights and abolition of during the course of 20165/20 rules.

17, CAPA anticipates major capacity addition in the domestic circuit – to the tune of over 50 aircrafts. “We are in the range of $275-300 million. expecting a significant capacity Go Air too will end the year with expansion during the next fiscal. a record profit number to the tune of $20-25 million,” he added. As per our estimates, 50-60 airWith the cushion of low oil pric- crafts would be inducted subject to the fact that A 320 Neo deliveres, airlines in India are expected ies meet their schedule. Indigo to do well in the 2016-17 fiscal and Go Air will lead this capacity but CAPA has cautioned them to addition drive with induction tackle some serious challenges of almost 30 aircrafts between to ensure that a major cost spike, them,” stated Kaul. mostly in the non-fuel segment,

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Critical steps expected in airport management and development

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APA’s report also talk at length on the recent trends in the airport management and development – a segment where the larger perception veers round to the view that the government has not shown much urgency in the recent past. CAPA report also underlines those concerns though it is hopeful that some critical steps would be set afoot in the near run.

According to CAPA report, the current fiscal has seen a tremendous growth in domestic passenger volume at major airports – 25 percent at Coimbatore, about 20 percent at Bangalore and Hyderabad, and 12 percent at Delhi and Mumbai. The growth in international passenger volume at Indian hubs has been in a robust trajectory too –

16 percent at Chennai, 11 percent at Bangalore and Hyderabad and 7-10 percent at Mumbai and Delhi. Within the domestic circuit, about 10 airports operated by AAI have registered more than 15 percent growth. These include – Bagdogra, Gaya, Varanasi, Dibrugarh, Dehradun, Leh and Goa. As a result of this surge

Mumbai and Chennai airports are likely to start reaching to their capacity thresholds soon, there will also be capacity challenge at Delhi. Considering the passenger volume growth, peak hour congestion at Indian airports is slated to become more visible in the next fiscal.

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in the passenger volume, the airport management companies like their airline counterparts, are also witnessing a profitable spell. For instance, AAI is expected to book a profit of $275 million in 2015-16, a marked improvement over the previous fiscal figure of $246 million. And in the first half of the current fiscal, the expected profits of private airport operators GMR and GVK are estimated to be in the range of $33 million and $25 million respectively.

However, the agency has issued a cautionary note saying that some of the critical hubs will soon reach to the saturation point if regulatory provisions to expedite airport infrastructure development are not brought in place. “Mumbai and Chennai

APA’s latest analysis has also covered the possible additional funding which the Indian carriers may need in the next fiscal to scale up their operations while pursuing their expansion plans and on this parameter too, there could be a modest increase as compared to the previous year’s figure. According to the agency, the aviation industry has raised about $1.2 billion in the form of equity and debt during the course of 2015-16 and this figure is likely to jump up to $1.4 billion in 2016-17. “For Indian carriers, 2016-17 would be a significant year of funding,” said Kapil Kaul.

According to CAPA analysis, after the spectacular success of Indigo IPO last year, Go Air is also expected to take this route in the next fiscal. Jet Airways is expected to raise $300-400 million debt from its equity partner Etihad Airways. And the state-run Air India would raise close to $700 million by way of debt and the new entrants in the Indian sky, Air Asia India and Vistara too would see further recapitalization.

SpiceJet, which has emerged as the most admirable turnaround story in the recent past, will also need additional capital infusion now that the airline has been diverted from the disaster route, has profits on its balance sheet and is expected to place bulk order considering its future plans. “ We expect some significant funding in SpiceJet in the coming financial year,” Kaul pointed out.

Incidentally, Ajay Singh, the promoter of SpiceJet was also present on the occasion and he confirmed that the airline is looking for some serious funding in the near run. “We have positive cash flows. But for our future plans, we will need fresh capital infusion.

We have plenty of options available and we will take a call on it soon,” he said without divulging the possible quantum of funds which the carrier will need to raise.

airports are likely to start reaching to their capacity thresholds soon, there will also be capacity challenge at Delhi. Considering the passenger volume growth, peak hour congestion at Indian airports is slated to become more visible in the next fiscal,” Kaul maintained. And considering the challenging environment, the agency expects some critical steps to be set afoot in the near run. “We expect Navi Mumbai and Goa projects would move ahead. There could also be a final decision on the second airport in Delhi/NCR region.

The 150 km restriction for new airports will also go and there would be regulatory clarity inclined towards hybrid till in airport management,” underlined Kaul.

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airlines & airports

Ajay Singh Unplugged

“10-15 years perspective will determine the size of our bulk order” On market buzz that SpiceJet will place a bulk order of 150 aircraft shortly…

I Within Indian aviation circles​, the man who i​s getting the maximum attention​today is ​none other than​ Ajay Singh, CMD of SpiceJet. It was in late 2014 that the original promoter of the airline had stepped in to salvage the carrier which was on the brink of going belly up. But since then there has been a dramatic turnaround in the fortune​s​of the carrier. At CAPA’s annual summit in Mumbai earl​ier​this​ month​, Ajay Singh was clearly the star of the show responding to myriads of queries on SpiceJet’s turnaround journey. Excerpts of his response on some critical issues:

On what prompted him to get back into SpiceJet cockpit…

Our decision to take over the reins of SpiceJet again was based on some larger macro considerations. We realised that despite growth in the aviation business, less than two percent of Indians are flying in one of the fastest growing markets in the world.

And then we saw the moderation in ATF prices. In our reckoning, the mistakes made by the previous management was fixable.

And we reached t​ his c​ onclusion that the brand can be resurrected very fast in a supportive environment.

On support from the government…

The government’s attitude was extremely positive. They also did not want the airline to shut down like Kingfisher before us. And so we got all moral support from them. The previous management had also approached the government asking them to bail out the airline. We, on the other hand, did not ask for any financial support. And things worked for us. Many observers wonder why Kingfisher did not get the support from government quarters. One reason which I can think of,​is the image which the promoter of Kingfisher carried.

The initial pangs of turnaround …

The initial six months were very tough. We did not have too many aircrafts. And, therefore, we resorted to wet lease to add significant number of aircraft in our fleet. It worked well for us though it was expensive a​ nd produced only low margins. But we had to do j​ust this,​ to regain our credibility fast.

Winning the confidence of lessors was another critical issue. Fortunately, most of them knew me personally during our previous stint. They had a healthy professional relation with us. When the ownership had changed in 2010, the airline was profitable and they probably knew our seriousness. So they decided to take another shot when we came back.

On operational performance…

As you know, we have seen consecutive profitable quarters last year. In Q3, our profit was record high at ` 238 crore. Backed on this strong financial performance in the current fiscal, we expect that by the end of 2015-16, we will clean up our balance sheet. We have already cleared `1,500 crore of debt from our book.

The improvement in financial performance has clearly also resulted from a major improvement in operations. Our average load factor is in 90 percent plus trajectory and our on time performance (OTP) has significantly improved from just 40 percent in December, 2014 to over 85 percent now. A key factor behind this operational turnaround i​s also on account of o ​ ur network re-engineering. 75 percent of our network has been altered and fewer stations with more frequency h ​ as been o ​ ur key strategy.

What has not worked so far...

Network alternation as I mentioned has worked for us in a significant way. Our staff morale is also high now, and this h ​ ad nosedived before we came in. Our field staff particularly had to face the wrath of passengers because of high cancellation. But now there is a new energy within the organisation. In the list of what has not worked for us or what we could have done better, the top slot should go to our wet lease contracts. By now, we could have furnished more improved financial numbers if we had negotiated those deals better. Our ancillary revenue is also low and we have to jack it up in a major way.

On emerging opportunity in the regional space and phasing out the Bombardier planes…

There is a fantastic regional business out there. This, in fact, is a major thrust of the soon to be announced civil aviation policy.

I think, it will create immense opportunity for all of us. A good

can’t give you numbers right now. There is no denying the fact that we need to replace our wet lease aircrafts and at the same time, we need to add capacity. We are working on the specifics.

We will in a better position to tell you in about a month’s time. But I could tell you at this stage t​ hat this​is going to be a significant order since we are looking at 10-15 years perspective. But even if we place a bulk order now, it does not stop us re-ordering again three-four years down the line. So it is not going to be the case of placing a bulk order and then keeping quiet for ten years. This is something which we will keep on re-evaluating and then take decisions from time to time depending on how the market grows.

Currently, we are talking to both Airbus and Boeing.

There is a lot of work involved in closing out the orders. We had floated a request for proposals and we have received response from both of them.

We are evaluating th​e​se responses and interacting with them. We would like to place orders as soon as possible.

We will prefer to place it in this financial year. But more than the timing of the deal, it has to be right for us and that is our focus.

On the capitalization plans of SpiceJet… The airline has been doing extremely well in the last few quarters. In Q3, we had historic profits. And we will continue to generate money in the coming quarters. Our cash flow is positive and so we don’t need funds for our o ​ perations. In terms of acquisition of aircraft, we will try and see what opportunities we have. We have options in debt, private investment and our own internal generation. We have not used our current bank limits at all so far. And we have plenty of options on the equity side. At this time though we do not believe that equity infusion will be the right direction to take. In terms of expansion, we will see how much money is really required. We are evaluating various options. deal of growth will come from tier II and tier III towns and many unused airports will be opened up.

We are quite keen to be a leading player in this segment.

Regarding Bombardier planes in our fleet, they are making money.

And they could​​become very critical in our regional play. So right now there is no specific decision to phase out Bombardier planes.

We are continuing with the fleet we have. In fact, we are having fresh negotiation with Bombardier, Embraer and ATR for more aircrafts which could be deployed on regional routes in the future.

journey to start issuing guidance.

Of course, there are factors indicating more upturn in the coming months. As you know well, when oil prices come down, fares also tend to drop. And the challenge is to keep your topline or revenue intact in such a scenario. This is what SpiceJet has been successfully doing in the last 9-12 months. Coming to the near run possibilities, February-March has traditionally been part of a week quarter for our business. But considering what we have done in the recent past, we expect Q4 too could be a good quarter for us.

On possibility of Outlook for fiscal the revival process 2016-17… getting stronger in the In my experience, if the market is growing by 20 percent and if you coming quarters… add 10-15 percent to your fleet, I think it is too early in our revival

I don’t think it will make a great

deal of impact on price. Until and unless, if airlines decide to put maximum capacity on routes like Delhi-Mumbai. There are 95 daily flights between these two cities currently and if you make it 110, it will have a bearing on the pricing.

There are plenty of markets out there where you can go, you can create new city pairs which can generate enough money. I think, the airline companies now seriously need to look beyond Delhi, Mumbai, Bangalore and Chennai.

But coming back to the next financial year outlook, I don’t see any major challenge on the revenue side. But on the cost side, airlines will try to reduce the input costs in the non-oil category. Nobody is sure on oil prices. The hedging period is also very small here. One thing is for sure: the oil prices will go up in the longer run.

Compiled by ritwik sinha

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airlines & airports

Jet turnaround on course, says outgoing CEO; codeshares bring 26% additional traffic In terms of market place buzz, Jet Airways in the recent times has somewhat been pushed aside by the likes of IndiGo and SpiceJet. But probably in his last industry, appearance in India, the outgoing CEO of Jet Cramer Ball should the details of the shift operational churnings which the airline has set a foot as part of its three year old consolidation plan.

By ritwik sinha

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ith buoyancy returning to Indian aviation business​,​ since late 2014 with a significant decline in ATF prices, domestic carriers have once again begun to be in the news for the right reasons. A major upturn in passenger volume, the stock markets giving a big t​ humbs​​up to Indigo IPO, SpiceJet giving a sparkling performance finding its lost ground sooner than expected and an all round sense of major expansion in the near to medium run by all leading carriers – these have been the critical constituents of the aviation buzz generated in recent times.

Surprisingly, the buzz relating to India’s premier carrier and traditional giant Jet Airways has been somewhat low vis-à-vis Indigo or SpiceJet. A general feeling in aviation circle​s​is that the Jet management has kept its cards close to its chest providing ample opportunity to the market to dabble in speculations. Mostly rooted in: if Etihad will further spike its stake in the Indian carrier?

However, when the outgoing CEO of Jet Airways Cramer Ball (he will demit his office at the end of

this month) took to the stage at CAPA annual summit in Mumbai early this month, he surprised the gathering by narrating a spate of developments which are unfolding at the operational level in the airline​, a​ lmost silently and quietly, away from the media glare. And according to Cramer Ball, t​ hese new initiatives have started showing results.

“Last year, we had initiated a three year turnaround plan. Our primary target in 2015 was to bring down losses. 2016, our entire focus is on consolidation and by next year, we will be in profit​s​,” he said. According to Ball, the airline which is presently operating 630 daily​flights​carrying 75 thousand passengers daily (​on their 5​ 00 domestic and 130 international flights per day)​, is increasingly consolidating its position by improving its product and services and re-engineering of its network and fleet. “We have made investments in the cabins of 737, A 330, 777 and ATR planes. They have been completely refurbished,” Ball pointed out while adding that the stress on quality improvement has also brought in some quantitative benefits. “Standardizing and refurbishing the configuration of A 330, 777, 737 and ATR fleets have also

Jet also focusing on IT-enabled customer friendly initiatives

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t could well be the case of simultaneous focus on both the hardware as well as software. While Jet has been refurbishing its fleet in the recent times and trying to optimize the utility of its aircrafts, Ball pointed out that the airline has been equally focused on providing more IT-enabled services to improve its interaction with the travellers. This also includes making the most of the opportunity provided by the social media platforms. “Our customers must have noticed the new website and application which we have launched. We are also present on social media platforms in a major way – Jet Airways facebook page has 2.6 million fans, most for any carrier in India,” Ball said.

Jet Airways’ plans to further endear itself via technology enabled services also include eventually facilitating mobile boarding pass across all its network. “We are currently undertaking pilot projects in Hyderabad and Bangalore and we will gradually include more stations. It will be a big step in enhancing our customer friendly offering,” said he.

Jet management is also hopeful that its unique offering - FareLock scheme – will find favours with the customers. Recently introduced, FareLock allows customers to retain a select fare for a limited period (upto 72 hours) before confirming the purchase.

The facility is now available all across Jet Airways’ network. “It’s a unique offering from us which allows customers the opportunity to plan their travel with greater ease and convenience. It will go a long way,” Ball exuded confidence. In addition, Jet has also partnered with Global Eagle Entertainment (GEE) to provide in-flight entertainment streaming service aboard the airline’s fleet of Boeing 737 NG aircrafts.

Cramer Ball, CEO, Jet Airways

Last year, we had initiated a three year turnaround plan. Our primary target in 2015 was to bring down losses. 2016, our entire focus is on consolidation and by next year, we will be in profit​s.

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resulted in 5 percent additional seats in our fleet, an equivalent of capacity offered by nine mid-sized aircrafts. This has resulted in modest increase in our capacity.

Plus, we have created flexibility in the configuration of our Boeing 737 planes in such a way that they can be easily deployed in both domestic as well medium haul international routes,” he added.

Jet Airways has also made its way to the Flightstats’ prestigious list of top ten airlines for Asia-Pacific on the critical OTP (on time

performance) parameter released for 2015, the only airline from India. “This itself is reflective of our improving performance,” Ball emphasised. Jet Airways outgoing CEO also claimed that there has been a significant increase in fleet utilisation – to the extent of 11.3 percent with every aircraft now clocking an average of 12.7 hours in the air.

Meanwhile, Ball confirmed that the increasing international operational integration with its foreign partner Etihad Airways, has begun to show results on all fronts. “With Etihad Airways, we are connecting to Abu Dhabi from 15 points in India. Our codeshare agreement with Etihad has given us the leeway to connect to 20 points globally from Abu Dhabi. Our increased codeshare traffic was to the tune of 424 percent in 2014-15 and it has grown at a hefty rate of 122 percent in

Amsterdam gateway to go live by March end

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major development is slated to unfold around the end of the next month (27th March to be precise) when Jet Airways shifts to a new European gateway in Amsterdam dissociating itself with Brussels which has been its gateway in the continent since 2007. “We had some issues in Brussels which we are trying to fix. But then we realised that Amsterdam could be a more viable gateway for us allowing us to broaden our networking profile to the markets in the west. Our codeshare partners KLM and Delta airlines are also strongly positioned there. We are, therefore, commencing our operations from Amsterdam by March end,” said Cramer Ball.

The airline has already taken

preliminary steps by announcing two daily non-stop flights to the Dutch capital from two of the busiest Indian hubs – Delhi and Mumbai- by the end of March.

Besides, it has also confirmed

operating a daily flight from Toronto in Canada to Amsterdam.

From Amsterdam, Jet Airways is expected to provide non-stop access to as many as 41 destinations

the first half of the current fiscal,” explained Ball. Jet Airways, on a cumulative basis, has codeshare arrangement with 22 international airlines (1228 daily flights across 89 destinations), and Ball asserted that this route is now more efficiently used. “We have seen a passenger growth of 26 percent over last 18 months,” he pointed out.

As a sum total of these developments, Jet Airways, as Cramer Ball claimed, is on a much firmer footing than what many in the market would imagine. “We have made a strong start in the current fiscal with two profitable quarters in the beginning. And with planned improved network and services quality, our positioning will further improve in 2016-17.

We are well on track for our three year turnaround programme,” Ball asserted. Meanwhile, just a few days after Cramer Ball apprised the aviation industry about Jet Airways’ turnaround plans at the CAPA summit, the airline reported third consecutive profitable quarter in a row and posted highest ever quarterly profit at `467.11 crore in the three months ended December, compared with a profit of `63.11 crore in the year-ago quarter. The record profit has been notched up on a 7.77% increase in sales to `5,443.97 crore from `5,051.02 crore a year ago and probably validates Ball’s assertion that Jet Airways’ revamp initiatives are on the right track. to its passengers across Europe and North America with its code sharing partners KLM and Delta Airlines.

Last month, the airline had announced special inaugural fares for its flights between India and Amsterdam, its new European gateway which will be effective from March 27. The inaugural fares were offered with discounts of up to 16 per cent. “This is a significant step for Jet Airways and demonstrates our continuous endeavour to provide greater choice and better connections for our guests,” Ball said. The airline is expected to deploy A -330 aircraft on the new routes which will connect two Indian cities with the Dutch capital. Meanwhile, after shifting its European base to Amsterdam, Jet Airways will put a brake on it Newark service – a sector which it has been serbing via its Brussels hub.

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Air India Express to enhance capacity by 40% in 2016-17; connect New Delhi The low-cost, international subsidiary of the national carrier promises action galore during 2016-17. While there would be significant jump in its capacity, it will also tend to build base in major markets beyond South India.

Product refinement will be a simultaneous pursuit; paid meals​ and wi-fi services in the offing

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hile the induction of half a dozen new aircrafts will give leeway to Air India Express to stretch its wings significantly, according to the airline CEO, a simultaneous initiative is also being set afoot to enhance the experiential quotient of travellers who are flying with it.

“We have drawn out a plan for product refinement as we fully understand that travellers flying with us have to be provided with more in-flight options,” Sundar said.

As part of this plan, the airline is all set to offer paid meal options. Air India Express is the only low cost international carrier which is providing free meals on​​board but it is adding new items to its menu list for which the traveller will have to pay. “Currently we are offering standard free meal​s​. But we have got requests from customers who are willing to pay if we offer them variety in meals​

By ritwik sinha

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or the international lowcost subsidiary of Air India, 2016-17 is going to be a critical year for consolidation. Backed by a profit of ` 179 crore last year (a further surge in the bottomline, will mean profits touching ` 200 crore​, e​ xpected at the end of the current fiscal) and a major capacity addition by the end of the summer schedule this year, Air India Express i​s​ poised to attain new scales both in terms of adding new routes as well as frequency on its existing network. The icing on the cake is: India’s first low cost international carrier (in existence since 2005) which is primarily known for providing robust connectivity between destinations down South and the Gulf countries will also commence operations from India’s capital Delhi​,​​while also adding to its presence in Mumbai market. ​Conventional wisdom that Air India Express’ strategy does not include building a base in the dynamic metro markets, therefore, is bound to change.

“2016 is going to be a very critical year for us. We are looking at 40 percent increase in capacity and 30-35 percent increase in revenue,” K Shyam Sundar, CEO, Air India Express told TourismFirst in a recent exclusive i​nterview​. S​ ignificant capacity addition will be provided ​with​six new Boeing 737 aircrafts which are being taken on lease. The induction process of these aircrafts will begin from March and before the end of the summer schedule, all six of them will be part of the airline fleet taking its total fleet count to 23 as against existing 17. “As you can see​,​the capacity addition which is going to happen over next few months will provide us the scope to spread our wings significantly both in terms of touching new destinations and also in increasing frequency on routes which are doing well for us,” Sundar said.

This is how the induction of new aircrafts between March and November end is likely to change the operational scale of Air India Express. To begin with, the frequency of Air India Express flights from South Indian destinations (60 percent of its market) to the Middle-east will

K Shyam Sundar CEO, Air India Express

highlights

2016 is going to be a very critical year for us. We are looking at 40 percent increase in capacity and 30-35 percent increase in the revenue.

Six new Boeing 737 to join Air India Express fleet between March to November end

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see a significant increase – 119 weekly flights by the end of November from the present base of 96. It also provides the airline the opportunity to​strengthen​ its most profitable market, Kozhikode, a bit more with an increase to 11718 seats per week from the present 8184 seats. The airline has planned to increase frequenc​ies​ between Kozhikode and Dubai to two flights per day from the present daily flight. Air India Express will also introduce daily two separate non-stop services between Kozhikode and Bahrain and Doha in the new schedule. Ras Al Khaimah is being introduced as a new destination with a frequency of four flights per week from Kozhikode.

The services to Kuwait from Kozhikode will also jump from thrice a week to five flights per week.

Non-stop Dammam flights from K ​ ochi​is another major attraction of the new schedule.

Frequency of flights between Thiruvananthapuram and Dubai will also increase and the seats offered will become 1116 from the present 930 seats in a week. In a cumulative operational sense, the airline is targeting to expand its reach globally to new destinations in West Asia. At the same time, it is seeking to emerge as a much stronger international

on board. So we are going to implement an online scheme wherein​a​passenger with his ticket can also book a meal of his choice​,” Sundar informed.

He was, however, quick to clarify that this would not result in doing away with free meals offered on board. “Our new food scheme will be only for those who opt for meal from the new menu.”

Another critical offering in the near run for Air India Express travellers could be wi-fi connectivity on board. “ The new aircrafts which we are getting on lease will have wi-fi options. We are working out the economics of it and negotiating the cost issues with the service providers. Once we are sure that it will at least meet the cost of providing the service, we will add it to our offerings list,” he said while adding that Air India Express also plans to come out with a dedicated mobile application.

Will connect Delhi will Sharjah and Dubai in May Enjoying to open a new service between Delhi and Iran player in the north Indian market.

“In terms of new international destinations, we are eyeing to bring Ras al-Khaimah, Tehran, Tashkent and Almaty on our global network by 2016-17 end. In terms of city pairs, we are looking at a direct link between DubaiChandigarh, Dubai-Madurai, and increase our frequency on Dubai -Jaipur and Sharjah-Varanasi routes. We have a base and we can certainly enhance our presen​ce​in these sectors,” Sundar pointed out.

According to Air India Express CEO, the decision to commence​ services from Delhi will significantly add to the carrier’s profile as it also provides the opportunity to open new routes like Iran. “We will start operating from Delhi from mid-May. Initially we will connect Dubai and Sharjah. We are also eyeing a service on DelhiTehran route. We are currently involved in the preparatory work to open this route,” he s​ aid​. But prior to services originating from Delhi, the airline will be initiating two services from India’s financial capital – on Mumbai- Dubai and Mumbai- Sharjah routes.

Consultants to advise South East Asia expansion

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ith the fortune of the economies in the Middle East going down following the significant drop in oil prices (the backbone of most of the economies in the region) since late 2014, observers ​in the Indian aviation sector are pointing out that if the scenario extenuates, it could pose a serious problem for Air India Express. And the solution, therefore, for it is to start paying attention to other medium haul regions like South East Asia where it This will be a critical can conveniently operate. The airline ​ milestone for us. As we inch close​r​to this fleet already​operat​es t​o Singapore and size, we will look for new Kuala​​Lumpur in the region. destinations in South“Similar apprehensions were east Asia. At some stage in the near run, we will expressed in 2009 following the engage network experts financial crisis which had affected to suggest us the options the Middle-east economies. Let’s see of new destinations in how the situation pans out this time. the South East Asian We a​ re keen​to develop new regions markets. It is certainly on our radar but it will take as a stronghold in the medium to sometime. long-run. That process may happen after the further growth in our fleet,” responded Air India Express CEO. As per the planned fleet expansion of the airlines, it will become a 36 aircraft carrier by 2018. “This will be a critical milestone for us. As we inch close​r​to this fleet size, we will look for new destinations in South-east Asia. At some stage in the near run, we will engage network experts to suggest us the options of new destinations in the South East Asian markets. It is certainly on our radar but it will take sometime,” informed he.

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airlines & airports

SIA’s another affiliate ‘scooting’ into India; will connect three destinations before May The only remaining member of Singapore Airlines group will soon be present in the country offering Indian travellers to fly long-haul in Dreamliners at low-cost pricing points.

Tourism is a strong component in selecting Indian destinations

By ritwik sinha

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viation observers are somewhat perplexed with Scoot. A subsidiary of global aviation major Singapore Airlines (SIA) which came into existence just three and a half years ago, it proudly calls itself a low cost carrier (LCC). The irony is: it does not have any attribute of a LCC, the parameters which typically define them. LCCs operate narrow body aircrafts but Scoot’s fleet has nothing less than Dreamliners. And unlike LCCs, it operates on medium to long-haul routes. The only salvaging factor for its LCC brand emphasis is in its fares which are at least 15 percent cheaper than the full service carriers (FSCs).

Scoot which has a fleet size of 10 Dreamliners covering 18 destinations across the globe (its primary destinations are: Australia, China, Japan, Hong Kong and South Korea) is now all set to have India on its global network map. This would mark the commencement of operations of the fourth brand of SIA family.

Apart from SIA as a full service carrier, the other two brands of the group – Silk Air and Tiger Air – already have an operational base in India. “We are planning to come to India hopefully by the next month. We have applied to the DGCA for the flying rights and we have three cities on the radar, both metro cities and tier 1 cities in south and north India. We hope to start the operations by 20th March which will be just at the beginning of the summer schedule,” Bharat Mahadevan, Country head (India), Scoot told Tourism First in a recent exclusive conversation.

He, however, refused to divulge the name of the destinations in India where Scoot will be flying

pore Airlines is full service, wide body entity; Tiger is our low-cost, short haul airline which operates narrow body aircrafts; Silk Air operates full service, narrow body and we are a low-cost, wide body airline providing connectivity to the medium and long-haul.

So in a cumulative sense, we can cover all segment of travellers at different pricing points,” Mahadevan emphasised while adding that its fare structure would be quite attractive for Indian travellers.

“We will be offering fares which will be 15 to 50 percent lower than full service carriers. Our competition will be with Air India and Bharat Mahadevan Country head (India), Scoot Jet on sectors in the larger All I can tell you right now is that after Asia-Pacific region.” Scoot launching our inaugural service in is also hopeful that when it India next month, we will be adding commences operations in two more destinations before May end. While two destinations would be India, it will get ample feedin the northern India, one destination ing support from domestic would be in the southern market. carrier Vistara which is also part of the Singapore Airlines group.

In precise operational terms, Scoot presently operates in its debut spell. “All I can tell between Singapore and Sydney, you right now is that after launchGold Coast, Bangkok, Taipei, ing our inaugural service in India Tokyo, Tianjin, Shenyang, Nanjing, next month, we will be adding Qingdao, Seoul, Hong Kong, Perth, two more destinations before Osaka, Kaohsiung, Hangzhou, MelMay end. While two destinations bourne and Guangzhou – making would be in the northern India, up a fast-growing network across one destination would be in the eight countries and territories. In southern market,” Mahadevan said while hinting that the possible the near-run, apart from India, the destinations will not include Delhi, carrier is also launching a service to the Middle-East. “We are adding Mumbai and Bengaluru since the existing entitlements in these cities Singapore- Jeddah route in May which will mark our foray in the have been exhausted.

Gulf region. We are also looking at Scoot India management is more long-haul routes as our fleet exuding confidence that the comexpands in the next few years,” mencement of its service would informed Mahadevan. The all broaden the profile of SIA in exclusive Dreamliner fleet carrier terms of its offerings to the Indian is adding two more aircrafts this market which is a global strategic year and will get eight more in the point on its network. “There is a next four years which will take its synergy between what SIA and its total tally to 20. subsidiaries have to offer. Singa-

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SIA’s positioning to get a further boost with Scoot’s arrival in India

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coot has been the only remaining member of the SIA fold which d ​ oes not have a presence yet​in India. And that it is ready to finally touch down in India, its arrival is slated to give a major boost to SIA positioning in India – a market which the group has always described as strategically important in its global network.

According to Mahadevan, the inclusion of Scoot will significantly enhance the positioning of SIA as a group​,​in terms of volume of airports from where the company can provide direct international flying

options to Indian travellers. “Currently, SIA and its two affliates, Silk Air and Tiger Air, are covering 12 destinations in the country. With the launch of our flights, Singapore Airlines group will connect fifteen destinations in India. This will be second only to Air India which flies on international sectors from more cities,” he added. On a cumulative basis, SIA and ​ its​group a​ irlines​are covering Delhi, Ahmedabad, Mumbai, Hyderabad, Coimbatore, Thiruvantpuram, Chennai, Kolkatta, Lucknow, Kochi, Tiruchirappali and Vizag​, jointly​covering them with 100 plus

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hile Scoot India country head is keeping his cards close to his chest in terms of divulging the name of the destinations in India where Scoot would touch down in its debut spell, he did subtly indicate the driving factors in selecting the locations. And here tourism seems to be a major consideration for the Scoot management.

“During our short history, we have emerged as a preferred carrier for business travellers,​given our ability to offer them long-haul service in a wide-body aircraft at a relatively lower cost. So that is one, we would like to begin with destinations​,​where business traveller footfall is high. We are also looking at destinations where we can ​ benefit from​the huge amount of inbound tourism​potential of the city​. There is a buzz about India and its tourism products and, therefore, Bharat Mahadevan we may choose tourism destinaCountry head (India), Scoot tions which are already huge in We will be giving Indian tourists the option to fly to India but not served by any direct destinations in Australia flight with Singapore,” Mahadevan at cheaper ​price​. Similarly pointed out. Going by t​hese​hints with us they will find dropped by Scoot India country convenient options to fly to Japan or South Korean head, Jaipur​,​which is a tourism destinations with our powerhouse in the country​,​seems hub in Singapore. Indian to be a strong probability for being outbound tourists will also be a prime target for us. included in the list of the carrier’s debut destinations in India. Presently, no carrier from​the​SIA f​amily​ is flying to the P ​ ink​C ​ ​ity and as per Scoot’s plans, it will cover two destinations in North India.

When it comes to tourism specific consideration​s​in Scoot’s scheme of things for India, growing outbound is also a key driving factor. It is no secret to anybody that outbound growth from India is much​more​robust than the inbound numbers and in Scoot’s global network, there are some distinctive destinations where Indian tourists footfall has shown a consistent rise in recent years.

“We will be giving Indian tourists the option to fly to destinations in Australia at cheaper p ​ rice​. Similarly with us they will find convenient options to fly to Japan or South Korean destinations with our hub in Singapore. Indian outbound tourists will also be a prime target for us,” Mahadevan emphasised.

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weekly frequency. “ In terms of frequency too, our size will grow quite modestly as we are planning three to four weekly flights at our destinations where we will be flying in the initial spell,” he pointed out.

However, while in terms of destination count on international sectors, SIA may steal a march over others in its combined form; when it comes to weekly frequency, it will still be behind s​ ome​foreign carriers. For instance, strongly positioned Emirates cover​s​10 destinations in India with a staggering weekly frequency of 180 flights. Sharjah-based Air Arabia too has quite an expansive reach in India – 12 destinations and 116 weekly frequency. Jet Airways and Etihad combine are presently connecting Abu Dhabi to 14 Indian cities, with over 200 return flights each week.

states/destinations

14

Looking beyond Russia, Goa diversifies into adventure activities: Nikhil Desai As the Russian influx witnesses a major drop in volume, Goa is eyeing newer markets to balance the fast changing dynamics of its footfalls. It is now betting on better days through a meticulous infusion of a plethora of adventure based activities and sizeable investment into its tourism infrastructure to enhance the visitor experience. An exclusive with the MD Nikhil Desai, GTDC By shashank Shekhar

surprisingly coming up strongly. “We hosted over a hundred Iranian charters last year. What is even better is that they come in the months of March, oa is in midst of a transition. As the April and May when we actually need inflows. We nature and volume of the inbound also had them in the monsoon season, this time from the Russian shores changes, it is around,” substantiated the MD. Informing that positioning itself to seek newer markets, Arabs, too, had started coming in the monsoon we were told. It remains a fact that Russian tourseason – which worked very well for them – he told ists have caused concern to certain sections of us that with the Air-Asia introducing direct flights, travelers who choose not to intermingle with them, there was a spike in numbers from the Malaysian causing loss of business from French, Italian, and shores. However, he concurred that there were other high-profile inbound. However, Nikhil Desai, many challenges that needed to be overcome in Managing Director GTDC allayed such concerns the days ahead. Sharing that stating that as a tourism Goa had set its eye on improvboard they welcomed every ing footfalls from the Western tourist into Goa. “The more Europe which would be a the merrier. As far as Russia challenge, given the prevalent is concerned, last couple of economic condition, he told years have been challenging us that “we are expecting because of a depreciating a six percent growth yearRuble, spate of international on-year, compared to the sanctions and war in Ukraine. last year from foreign tourist Still, they are number one in segment, besides a twenty terms of inbound into Goa,” five percent growth from the he explained the reason domestic sector.” behind the fast changing Giving us an insight into dynamics. He agreed that the key domestic markets, we mass volume had decreased were informed that influx but also noted that instead from north India was growing of a barrage of tourists from at a remarkable rate. “Kolall sections of the society, kata is emerging as a major Russian inflow was getting source market for us. There confined to higher and upperare drive-ins from Maharashmiddle class segment – which nikhil desai tra – numbers are massive. was raising the quality. managing director, Goa tourism Actually, it is turning out to be Goa’s bid to assiduously development corporation great short getaway for tourist cultivate newer markets will You cannot develop new markets all from as far as Bangalore, be a challenging one, the MD of a sudden. But, there is a window of hope for us because we always have Pune, Dharwad, Hubli and noted. “You cannot suddenly to look at diversification. We have to develop new markets. But, consistently go to newer markets which Kolhapur,” he shared. Further there is a window of hope for we have already started doing. In fact, commenting on the queswe are looking at markets from the tion of dwindling numbers us because we always have Middle East, Southeast Asia, and even during monsoons which was to look at diversification. as far as Australia. once an important peg of the We have to consistently go overall tourism product of to newer markets which we Goa, he noted that they were have already started doing,” registering sixty percent oche said. “In fact, we are lookcupancy during monsoons which was much better, ing at markets from the Middle East, Southeast Asia, compared to clocking twenty five percent five years and even as far as Australia, apart from traditional ago. He further argued that it was good occupancy. markets like the UK, Germany etc. So, the results “Some destinations get that kind of occupancy ratio are evident in the form of a healthy turnaround during their peak season,” he reasoned. Adding with tourists coming in from those regions,” added that Goa was catering to wedding segment, small Nikhil Desai. conferences and MICE, he said that tourists from Attributing the launch of e-visa facility for ennewer markets were helping them further strengthhanced footfalls from previously weaker markets, en this front. he told us that in terms of specific nations, Iran was

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Investing heavily in improving tourist amenities; adventure sports, hot air ballooning big draws

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s the state pushes for fresh markets and bigger share of domestic travelers, it is also seeking to augment its tourism related infrastructure in a big way. With a sharp focus on adventure based activities, it is hoping to push its profile as a destination and a tourism product, we were informed. Sharing that there were plenty of new initiatives under way, the MD told us that hot air ballooning had started as a regular feature. “We are introducing bungee jumping, luxury Yacht service and scuba diving.

Heli-tourism is starting in a week’s time; we are getting two choppers from Pawan Hans. We will also introduce sea planes by the end of January. With all this in place, Goa will have amazing options to offer to tourists,” informed Nikhil Desai.

“We have identified around twenty activities, and some of them have been awarded already. We are getting heritage boat cruises where you will get a five hour cruise ride with lunch, dinner and other necessities,” he added.

Stressing that cruise activity could only be experienced in places like Hong Kong, Thailand and Malaysia, he asserted that as one could experience them in Goa,a lot of domestic tourists would take to it. However, it is also a fact that these activities are not focused at budget travellers.

The MD, too, concurred that hot air ballooning was not cheap, candidly admitting that their prime focus remained catering to the higher and upper middle class segment; tourists who stay in four and five star hotels. “It costs almost

eight thousand rupees per person.

But, we have been witnessing full house; families after families are going on rides. We have recently discovered that Goa happens to be one of the best destinations for hot air ballooning in the world,” he told us, illustrating that irrespective of the pricing, these new add-ons were working well. “It will have one of the longest flying seasons, globally. Generally, the season stretches to three to four months elsewhere, but in Goa, we can stretch it to as long as seven months.”

Pointing towards the state's relentless efforts to improve tourist experience, he shared that a slew of infrastructural projects were also under way. “We have approached the Ministry of Tourism, asking them to support infrastruc-

New master plan before the onset of monsoon: Dilip Parulekar

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oa Tourism Minister Dilip Parulekar informed us that the master plan mooted for Goa was to be finalized soon. He said that the government hoped to have the draft ready before the coming session in March. “We have invited all stakeholders including the local community to participate in the process and share their views. The policy will be tabled in March, and, Dilip Parulekar tourism minister, Goa hopefully, cleared

by April. Whatever One may say that we have seen some impact vis-à-vis downfall in Russian said and done, we inbound, but we have received good will have a policy numbers from countries like in place before the Ukraine and Turkey. In fact, e-visa onset of the monhas played an important role in riding soon. The idea is to the tide. We are benefitting institutionalize what immensely with higher footfalls all we need and put from the USA. it in place for the next two and a half decade,” he shared.

Goa has been assiduously cultivating newer attractions to keep its vibe and pull intact. The latest addition to its wide array of products is the induction of sea-planes and helicopter service. “We had identified ten-twelve places where we had planned on introducing sea-planes, in association with a private operator. But, we have had some issues at one or two places,” he shared. “Initial operation will commence at the Mondovi River where we have casinos, besides Dona Paula, Chapora River, and, of course, Baga-Calangute belt are some of the places we are going to begin with. We are starting Helicopter ride facility, as well,” he added.

Goa has received a good number of travellers through chartered service, we were told. The state received over one thousand charters from all over the world in 2014-15. “One may say that we have seen some impact vis-à-vis downfall in Russian inbound, but we have received good numbers from countries like Ukraine and Turkey. In fact, e-visa has played an important role in riding the tide. We are benefitting immensely with higher footfalls from the USA,” he declared.

On the question of whether Iran was emerging as a bright spot for Goa, he said that not only Iran, but the state was witnessing a rise in inbound from the entire middle-eastern world, lured by the prospect of witnessing the monsoon. “I would like to add that Goa is almost a three sixty five day destination,” he stressed.

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tural initiatives; the response has been positive. We have invested around two hundred and fifty crores for improving tourism infrastructure which include creating more parking lots, proper lighting in the streets and tourist attractions, walkways, cycling tracks, signage and widening of roads,” he elaborated. “We are also creating more amenities at beaches like changing rooms and wash-rooms,” added Nikhil Desai.

Further seeking to boost tourism through ample use of its water based resources, Goa has also mooted two marinas, but they have run into environmental issues with locals. “They fear that fishing will get affected. We are trying to make them understand that it is nothing but jetties. If you have that infrastructure, it leads to development of coastal regions,” reasoned the MD. Adding that, however, all the related permission and clearances had

been obtained by promoters, so technically, there was no issue, he told us that the government was working hard to get them off the ground and hopefully, by the end of this year at least one out of the two marinas would be functional.

In another major step to boost connectivity, the state has recently acquired 2,000 acres of land for a new Greenfield airport at Mopa Plateau in north Goa, but, as major luxury resorts are located down south, connectivity could remain to be a major issue. To ensure smooth passage for tourists, the central government, in tandem with the state government has envisaged a six lane highway connecting the two ends of the state.

“The whole of north and south Goa will be connected through it, allowing passengers to travel from one tip to another in a matter of less than an hour. We expect the project to be finalized in two to three years.” he detailed.

states/destinations

15

MP Tourism offers land parcels to the private sector; also brownfield segment To further its tourism growth story, MP Tourism is pitching hard for aggressive private sector investment. On the offer is expansive land parcels at its noted destinations for new product development as well as operational opportunity of some defining forts and palaces.

By Ritwik sinha

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n 29th January, when under the aegis of CII, top functionary of Madhya Pradesh Tourism Hari Ranjan Rao,​alongwith his senior colleagues​,​met a select group of tourism entrepreneurs and investors in Delhi, his first direct message to the gathering was: MP is a happening economic entity and tourism is a key priority area for the medium to long haul economic design of the present dispensation. And for this, he first emphasised the massive turnaround which the state has registered in critical areas like agriculture, power and road infrastructure which has pulled the state out of that disparaging BIMARU club​ ,​placing it in the company of

Hari Ranjan Rao, MD, MPSTDC (in the middle) and Tanvi Saundriyal, Addl. MD, MPSTDC (second from right) addressing a select group of tourism investors in Delhi

Hari Ranjan Rao Managing Directoe, MPSTDC

Our agriculture sector has grown the fast​er​growing states in the country.

“Most of the turnaround which you have noticed in the state has happened in the last 9-10 years.

considerably, we are a power surplus state, our road infrastructure has significantly improved and these are the feats we are committed to emulate in the tourism sector as well where we have already managed to create right kind of buzz,” Rao said.

When he began specifically talking about new investment opportunities in the state tourism sector, he had quite a palate to offer. The state which has nine national parks, three world heritage sites and scores of noted religious destinations and had

“We will float bids for two land parcels near Indira Sagar soon” In a brief conversation on the sidelines of the investors meet, Tanvi Sundriyal, Additional MD, MPSTDC told TourismFirst the possible developments in the near run vis-à-vis state tourism grand plans to involve the private sector in its tourism sector development. Excerpts: An important element of the presentation made here today is the expression of your intent to develop Special Tourism Zones (STZs) at as many as 15 locations in the state. Now when you say Special Tourism Zones, it obviously entails creating integrated clusters. Can I get a sense of what is the average size you are looking for these zones? And are they at the drawing board stage or things have moved beyond that?

connecting with the district authorities. And then you will have land revenue expert, a deputy commissioner who will also be officiating as General Manager in the tourism promotion unit. And all the six regions will have one nodal official for handholding investors alongwith the regional managers.

From an early conversation with another senior

It varies from place to official, I had gathered place. If you look at our that MP tourism is now in notifications pertaining possession of over 400 to the development of hectares of land which it Special Tourism Zones wants to lease out to private (STZs), they will be quite parties for developing big. Circulars have been greenfield tourism projects. released and now people When are you going to have to start claiming it. aggressively kickstart the If you intend to put up a bidding process of this specific tourism project in massive land bank? a special tourism zone, you Two bids will be floated will have to claim it first. soon – may be in next fortWe have even put up renight or so. There are two gional managers o ​ n​the job land banks at Hanumantia telling them about policy at the banks of Indira Sagar ​ provisions and they in turn D​am near Khandawa. They are telling the private invesare close to Asia’s biggest tors. They are also holding man-made reservoir. It is workshops with CAs and at this place that we are property owners at three hosting the unique Jal tanvi sundriyal Additional MD, MPSTDC major cities conveying Mahotsava in February. them about policy proviThe two land parcels I have sions. We know, having​a​policy is not enough. It mentioned are adjacent to each other and these is equally important to effectively communicate it will be off the block first. And as soon as we start with the people who will claim benefits out of it. getting interest from the players, we will immediately float the bid for other parcels because Tell me something about this specific tourism documents are ready and preliminary work has been done. promotion unit you have set up now. What specifically is the mandate for it? Madhya Pradesh ​T​ourism already has the reputation ​for starting new initiatives?​

This is a specific promotion body headed by MD, MP ​T​ourism with a special mandate to the Additional Managing Director. The team comprises a Director who is an ex-industry personnel coming with prior experience of pulling investments into the state in the industrial sector. There would be one General Manager level official who will be

Your wayside amenities plan also seems to be too huge. What will be the precise modality when you involve the private sector?

We have PPP provisions for wayside amenities projects. For instance, we have a land parcel, we build a wayside amenity on it and we put it on lease wherein the private player will run it according to the norms which we have laid down. It will be run under a specific brand name.

occupied seventh rank​last year​ in domestic arrival​s​(63 million ) list ​among ​states​,​​​ has earmarked huge land parcels to be offered to the private sector (on a 90 year lease basis) for greenfield tourism specific development. The locations where these parcels have been identified include Gwalior, Orcha, Khajuraho, Satna, Bhopal, Indirasagar, Indore and Neemach.

The largest land-parcel ( 82 hectares) is available in BhopalSanchi belt where among other things, the state tourism department is also looking for creating a high-end golf course with private sector assistance.

“These land parcels have been shifted to the tourism department and we will put them for competitive bidding very soon.

Though we have done our own analysis in terms of a variety of products which private investors can create at these locations, they are free to coming with their own suggestions which will be seriously considered at our end,” Rao emphasised.

Madhya Pradesh Tourism has also identified as many as 15 locations where, taking a cluster approach, it would like to develop Special Tourism Zones (STZs) with the assistance of the private sector. The STZs have been notified at Indrasagar, Gandhisagar, Bansagar, Sanchi, Orcha & Datia, Mandu & Maheshwar, Khajuraho, Tawanagar-madai, Tamia-​P​ atalkot, Salkanpur, Chitrakoot, Panna, Amarkantak, Choral and Govindgarh.

“We are offering very attractive incentives both on the fiscal and non-fiscal side for investors who would like to become part of our tourism growth journey,” Rao underlined. The list of fiscal incentives include luxury tax exemptions for three months (off season) for hotels which charge room rent upto Rs 3000/day. The new hotel units built in Bhopal and Indore will have luxury tax holiday for five years while new heritage hotels will avail this exemption for 10 years. Registered ‘bed and breakfast units’ will be exempted from luxury tax.

For other tourism projects, MP tourism has decided to dole out entertainment tax exemption for 10 years for permanent structures and six years for projects of temporary nature. There is a long list of capital subsidy incentive​s​for different categories of products – 3​0% ​of capital investment for heritage hotels, 10​%​on budget hotels built on government land,​ 20​% f​or those created on private land and 25 percent capital sub-

sidy on projects catering to the MICE category (upto INR 100 million). On the non-fiscal side, there are measures like registration and stamp duty fees reimbursement for new heritage hotels, fast track clearance provisions for all projects, 50 percent exemption on bar license fees to the units given on management contract

by MPSTDC, etc.

Meanwhile, MP tourism has also chalked out a list of brownfield projects, primarily old palaces and forts which can be turned into hotel units, where it will allow interested private sector players to take over the management rein. In the near to medium run, the state tourism has planned to put six properties for bidding (on reserve price basis) which include Taj Mahal Palace (Bhopal), Rajgarah Palace (Datia), Benazir Palace ( Bhopal), Madhavgarh Fort (Satna), Govindgarh Palace (Rewa) and Laxmipur Palace (Panna). In addition, the state tourism department is also asking the private sector to join hands in the development and management of wayside amenities under the public-private-partnership (PPP) mode.

“The ultimate aim is to create 286 wayside amenities all across the state so that there is a good network of them. The private ​ sector​can create new amenities on our land or we can lease out amenities which we have built.

They will be operated under our brand name. All such possibilities exist,” he commented. The state tourism department is targeting to establish 72 such units in the near run – 40 of which have already been constructed, 32 are under construction and 16 have been leased out.

Speaking on the occasion, Rao also assured the gathering that more defining initiatives are in the pipeline which will consolidate Madhya Pradesh positioning as a pro-tourism state. “ The chief minister has recently asked us to improve all road networks leading to our important destinations. We will be working on it on a war-footing.” Furthermore, in a separate notification, the state government is likely to come out with new set of laws to facilitate eco-tourism activities in its vast forest reserves. According to Rao, intra-city air movement within the state will also improve with the commencement of private charter service​s​. “We had cleared it last year itself but the DGCA approval is still awaited. We are hopeful, it will take off in the next couple of months,” he assured.

states/destinations

16

Kurukshetra to be brought on world tourism map, assures Haryana CM Haryana is pinning its hope in Krishna Circuit to revive its tourism fortune. It is promising an integrated development of over 100 Mahabharata linked sites in and around Kurukshetra.

By ritwik sinha

I

n the general perception, despite the big-bang emergence of Gurgaon as a​ leading​ international destination for business travel in the past one decade, Haryana as a tourism entity has not been a​ mong the more progressive states in the country. Having been the pioneer in roadside and highway tourism, many years ago, many of its efforts appear to have narrowed down to the management of SurajKund Crats Mela. There isn’t much of a buzz on its tourism offerings and one hardly gets to notice​ any ongoing​definitive product development and innovation in the state. Statistics tell the story. As per 2014 state-wise footfall figures, while Haryana does not find a place in the top ten domestic tourist arrivals list, it barely manages to occupy t​he t​enth slot in the list

of foreign tourists arrivals (​the G ​ urgaon ​impact​is clearly visible).

But speaking at the inaugural session of the 30th edition of Surajkund International Crafts Mela, Haryana CM Manohar Lal Khattar asserted that the state has definitive plans to bolster its tourism growth story in the coming years. And primary among them​ is d ​ evelop​ment of destination​ Kurukshetra, with strong linkages​ to Mahabharta and Lord Krishna life, as an international destination. “Haryana, being a land of diversity, has Shivaliks in the north and Aravallis in the south; between the two ends lie​s​the land (Kurukshetra) of Mahabharata.

This provides an opportunity for developing a​tourist circuit​for the world​,” he said.

The Ministry of Tourism has already approved Krishna circuit project and the circuit will link five important destinations linked

Chinese firm to create eco-tourism hub near Sonipat

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aryana CM Manohar Lal Khattar​'s​ inaugural speech at the 30th edition of Surajkund International Crafts Mela subtly indicated the future course of direction for the state tourism while pursuing the objective of adding more product​s​to its profile. And in this category, weekend avenues in adjoining areas of the national capital seems to be emerging as a top notch priority. “We are talking to investors – both domestic and international – to create new products in the state which we will support. Most of their enquiries pertain We are talking to to possibility of investors – both domestic doing projects and international – to which are shortcreate new products in the state which we will haul destination​s​ support. Most of their from the national enquiries pertain to capital,” Khattar possibility of doing specified. projects which are short-haul destination​s​ On this front​,​ from the national capital Haryana government seems to have met with some initial success. Recently​,​the Chinese conglomerate Dalian Wanda group has committed a​ n​ investment of a staggering $10 billion to create an industrial park in the state which will also have a strong tourism component. The project will come up at Kharkhoda in Sonipat, near Delhi. “We were keen to have a defining eco-tourism spot in Haryana near Delhi.

And we discussed with Wanda group for this staggering industrial park development​. T ​ hey have agreed to create an eco-tourism zone in the sprawling 3000 acres township which they will create,” Khattar informed.​A ​ preliminary agreement was signed between the Wanda Group and Haryana State Industrial and Infrastructure Development Corporation last month. As per details available, the Haryana government will not have any equity participation in the project. The Chinese firm is promoted by Wang Jianlin, considered to be the richest Chinese businessman, presiding the largest real estate company in China.

Wanda group will invest in project’s initial infrastructure which is expected to propel other Chinese industrial, tourism and residential companies to become a part of this mega project at a later stage.

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Haryana CM Manohar Lal Khattar at the inauguration of 30th Surajkund International Crafts Mela. Also seen in the picture are: Haryana Tourism Minister Bilas Sharma and veteran film actor Dharmendra who made his first public appearance as brand ambassador of Haryana Tourism

with the life of Lord Krishna. The cost of developing this circuit is expected to be in the range of `170 crore and it will mostly involve creating quality amenities in the chosen locations of the circuit.

“Krishna circuit is going to emerge as a major religious attraction in north India which will be spread across Mathura to Kurukshetra,” commented Minister of Culture & Tourism Mahesh Sharma who was also present on the occasion.

Krishna circuit is being pursued as part of Ministry of Tourism’s ‘Swadesh Darshan’ programme and several reports suggest that

Kurukshetra was​a​last minute inclusion in this circuit plan. Originally, it was supposed to cover major stretches in the state of Uttar Pradesh which are linked to Lord Krishna’s life. But now Mathura, Vrindavan and Kurushetra will be the major nodes of this circuit which the MoT is keen to​​develop as a defining international religious tourism offering. A ​ s part of this development, the government is also believed to be contemplating running a direct Shatabdi train between Kurushetra and Mathura.

Meanwhile, sharing the details of the possible development of

locations within Haryana covered by this circuit, the chief minister said the emphasis would be on integrated development. “There are 134 Mahabhartha linked sites in and around Kurukshetra and we are working for their integrated development. The circuit will entail a usual seven day itinerary for an international visitor and a sizeable part of this will be spent in our state. We will be improving wayside amenities for their convenience. We are committed to transform Kurushetra as a vibrant pillar of Krishna tourism circuit and it will definitely bolster Haryana tourism in the coming years,” Khattar emphasised.

According to Haryana CM, to rejuvenate its tourism sector, the state government is also mooting a plan to develop Kalka to Kalesar stretch which offers new opportunities in the religious tourism segment. He also stressed that the revival of Saraswati river bed is on the priority list of the state government which will open water related tourism options in the region.

17

states/destinations

Pictures of Ramoji Film City. Spread across 1600 acres, Ramoji Studio is one of largest integrated shooting complex in the world and is a critical component of Telangana’s Tollywood Tourism plan

Telangana launches Tollywood tourism, initiates Warangal circuit In its pursuit to offer innovative products, India’s youngest state has now decided to draw on the power of Tollywood – the largest film hub in the regional space. Tourists coming to the state will now have the opportunity to get up and close with their popular filmstars while the camera rolls on the sets.

By ritwik sinha

E

ver since the bifurcation of Telangana from Andhra Pradesh, the new administration under chief minister K C Rao has been looking out for innovative ways to enhance the tourism appeal of the new entity while maintaining that the sector is critically important for Telangana’s economic growth in the medium to the long-run. India’s youngest state has firmed up plans to develop some defining circuits including​ the​iconic Warangal Heritage circuit for which it is negotiating with BRICS B ​ ​ank for fund requirements (see box item). At the same time, there is an emphasis to create a string of innovative products on its existing strengths – products that can be churned out immediately. As part of this exercise, the state tourism​department​has l​aunched ​this unique idea of allowing film buffs coming to the state as tourists the chance to visit film sets and catch up with their popular film stars in action.

Christened as “Tollywood tourism”, the facility will be offered via a specific package which the state tourism department will operate in association with film studios.

“The Telugu film industry popularly known as Tollywood is one of the major film making hubs in the country and we just felt that for tourists coming to the state, providing them the opportunity to visit film sets will be an attractive offering, something that will make their stay in Telangana all the more experiential,” B Venkatesham, Tourism & Culture Secretary recently told TourismFirst in an exclusive chat.

For records sake, Tollywood has the distinction of churning out the maximum number of films (between 1​ 50-200 annually) after Bollywood and is the most

happening hub in the regional cinema space.

Much of the film making action in Telangana is centered at the iconic Ramaji Rao studio, located outside Hyderabad, which is believed to be the world’s largest integrated film studio (spread across over 1600 acres).

On a low-key basis, the studio has been inviting tourists on its own to visit its sprawling campus but now Telangana tourism department is also pitching o ​ n​the scene and its direct Tollywood Tourism offering to the tourists is expected to generate B Venkatesham more footfall to Ramaji Tourism & Culture Secretary Rao and other studios in Telangana The Telugu film industry popularly Hyderabad and its surknown as Tollywood is one of roundings. the major film making hubs in “In Ramaji Rao the country and we just felt that studio, we have a huge for tourists coming to the state, providing them the opportunity to asset to kickstart this visit film sets will be an attractive new tourism offering. offering, something that will make So these packages will their stay in Telangana all the more be allowing tourists the experiential. access within the studio – they will get a chance to see how shooting hapTelugu Producers Council which pens, how artistes and filmstars has assured the government of pursue their work. We are also full support. The idea seems to trying to rope in other studios be much on the lines of Hollyfor this offering which will bewood where tourists are offered come operational in​the next distinctive packages to visit the few weeks,” ​said V ​ enkatesham. sets and watch the scene from Apart from Ramaji Rao studio, a distance. At a later stage, Telthe Tollywood tourism scene is angana tourism is also likely to also expected to be playing out ​ expand the ambit of Tollywood at ​other studios like Ramanaidu tourism allowing film buffs to Studios, Annapurna and Padmapopular outdoor locations like laya Studios and LV Prasad Film Khammam and Adilabad in Institute in the coming months. ​​ the state. Meanwhile, the state Some noted film re-recording tourism department has also and editing centres in and around Hyderabad are also likely planned to allocate a certain to​feature on the Tollywood Tour- percentage of their collections from Tollywood tourism packism itinerary. ages for the welfare of poor Telangana tourism departfilm artists who are in need of ment is initiating this niche offering after consulting with the financial help.

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Telangana Tourism to submit DPR to BRICS ​B​ank for Warangal circuit funding

The 15km long cave system will be a major attraction of Warangal Heritage circuit

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mong the medium to long term new projects which Telangana tourism has zeroed upon, the plan to develop Warangal Heritage Circuit seems to be the most prestigious initiative. “This is one of the rarest cities where you have so many attractions in one place. We are committed to develop​ing​it as a major draw for India’s youngest state in not so distant future.

We will need a couple of hundred crores for development of this circuit for which we are also seeking financial assistance from the recently formed BRICS bank. We are currently working on a​ d ​ etailed project report (DPR) which will be submitted to them soon,” said Venkatesham.

Warangal located about 150 km north-east of Hyderabad has a strong historical and heritage base and after t​ he d ​ ivision of Andhra Pradesh, it has emerged as the second largest city in the newly created state. In late 2104, the Ministry of Tourism had included Warangal in its HRIDAY (Heritage City Development and Augmentation Yojana) programme and by doing s​ o​it had recognised the enormous tourism potential of the city. According to Venkatesham, the state tourism has drawn a holistic plan to develop this circuit. “We have an integrated development approach for Warangal circuit wherein the different attractions will supplement each other. It is clearly one of those rare locations which can offer unforgettable experience to the tourists,” he emphasised.

The region boasts of a couple of serene lakes – Pakhal and Ramappa – which could be a major draw for tourists. As part of the rejuvenation drive of Warangal heritage circuit, provisions will be made to create quality wayside amenities in and around these lakes. The irrigation system of 12th century is still selectively pursued in the region and this would​be​promoted as a tourism product. But the major thrust in Warangal circuit development would be the 15 km long cave system​, b ​ elieved to be the second largest in the country and according to Venkatesham steps are being taken to make it easily accessible for tourists.

Telangana gets highest allocation for circuit development

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​ e state’s pro-active approach in g​ h etting​a big-ticket push to its tourism sector, well reflected in the fact that in the current financial year, Telangana has received the highest allocation from the central assistance fund of the MoT for new circuit development​s​. “Apart from Warangal Heritage circuit, we are simultaneously working on three other circuits which are in the eco, tribal and Buddhist categories. I am happy to tell you that the

Government of India has given us `180 crore for these circuits. It is the highest amount which has been given to any state for circuit development in the recent past,” Venkatesham underlined. Ministry of Tourism, under its HRIDAY and Swadesh Darshan programmes, is reported to have disbursed about `1500 crore to the states in the current fiscal which includes `180 crore given to Telangana.

The new eco-tourism circuit which

Telangana tourism is working on will be centered in Mahbubnagar and will include Smasila riverside development, waterfront cottages, beautification of Akka Mahadevi caves and trekking path from Kadali Vanam. The tribal circuit will comprise areas like Mulugu, Laknavarm, Medaram, Tadavi, Mallur and also Bogatha waterfalls. The primary development exercise of this circuit would include facilitating parasailing, pedal and speed

boats, cruise boats in the local river basin apart from putting in place a tribal crafts bazar, tribal interpretation center and an open amphitheatre at Medaram. Several new tourist lodges will also be opened up in this region. “Work has started in some stretches of these circuits and it will pick up more momentum in the near run.

These circuits are going to benefit Telangana tourism immensely going ahead,” said Venkatesham.

18

states/destinations

Niche segments have gained traction.

Kashmir is fast emerging as a skiing paradise

Gondola ride in Gulmarg is a top draw

J&K set to intensify tourism through monthly festivals, informs Secretary Shah As J&K launched a road show, in the capital recently, Secretary Farooq Shah said that their focus was on attracting domestic clientèle.

The state has mooted some interesting engagements like monthly festival to keep the discerning traveller coming back for more.

By shashank shekhar

highlights

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alling his state the crown of the ‘Incredible India’, Farooq Shah asserted that J&K had all the ingredients to become the best destination in the country.

Sharing that the focus of the state was going to be on engaging with domestic clientèle, he reasoned that “when we have a domestic market of over 1.2 billion people, why do we need to look at foreign markets." Another reason for this approach was the fact that a lot of countries regularly issued travel advisory for J&K which belied the true state of affairs, he said.

Explaining that the event ‘See J&K in a New Light’ was aimed at creating awareness about their vast tourism products and consistent improvement in the quality of experience, he told us, “We are in midst of a comprehensive upgradation of infrastructure which will definitely enhance visitor’s experience. Besides, upgrading our road network and Jammu airport, we are also working towards hav-

With good investments into creating roads, upgradation of airport at Jammu and growing rail network, the state is on course to a much needed infra revamp.

J&K has mooted monthly festivals with diverse themes to engage tourists by showcasing their culinary offerings, art and handicrafts. ing an array of top-notch hotels to fill the gaps in our hospitality offerings.”

In its new avatar, the state has mooted monthly festivals with wide-ranging themes, attracting art-lovers, foodies and other aficionados. “The monthly festival will help sustain the momentum in our efforts to attract tourists with plethora of interests,” Farooq Shah said.

Its foray into niche segments like adventure activities is likely to

gain more traction with it playing the host to the National winter games. “This winter, we are going to organize National winter games in Gulmarg; most likely in the last week of February; we have not been able to finalize dates, as of now, because of less snowfall.

But, we will finalize it by the next week, for sure,” he assured us.

“Promotion of winter sports and related destinations are our key objectives,” added the secretary.

J&K, known for some of the

most exhilarating snow-capped peaks, has been attempting to have more of them opened for tourist activities – which require a go ahead from the Home Ministry. The secretary informed us that “some of them have already been thrown open for tourists.

Some other areas with mountains, that tourists have shown interest in, are being looked at.

We are in constant touch with the Home Ministry for the same,” he detailed. Adding that tourists who

Jammu is much more than just pilgrimage tourism; need the support of the wider fraternity to achieve true potential, says MD Jammu tourism R K Varma passionately argued for better publicity of the state, and pointed at how over-exposure to some stray incidents were denting the collective effort from the administration. He said that Jammu had some world-class destinations, but were not promoted in lack of exposure.

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at the tourism figures to K Varma, MD Jammu the Mata Vaishno Devi Tourism believed that from January to Decema spate of over-blown ber 2015, we have seen coverage of stray incidents a perceptible improveconsistently took a heavy ment in numbers. But, toll on their efforts to boost I have no hesitation in tourism in the state, and admitting that numbers in Jammu. He told us that are, still, way below our it was unfortunate how expectations. Whatever some incidents were given we have achieved as a excessive publicity, taking state, and as Jammu, is a toll on all their consistent far below our capabilefforts to enhance their visR K Varma ibility and inbound. “There Managing Director, Jammu Tourism ity,” said the MD in a candid admission. He were unprecedented floods There are so many other destinations which are not also stressed that they during 2014; unfortunately, being reached and fully such media hype was explored. We have destinations needed all the coopcreated around it, that we like the Bhaderwah valley and eration from wherever Chail which are as good as any it came from, to meet suffered a great hit,” he destinations in the world. So, substantiated. In a bid to their desired targets. we have a lot more to offer than “Everyone must chip in improve the prevalent situajust pilgrimage tourism. to make it happen. We tion, he explained that they are a 365 day destinaheld a number of discustion, and tourism can be sions with the media and great help to the state which had its share tourism fraternity, and were able to negate of issues,” he said, highlighting the role of a lot of pre-conceived notions. “If we look

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tourism in sustaining the state’s economy.

Lamenting the loss of CM Mufti Sayeed who set in motion a number of projects and initiatives for Jammu, he said that despite his unfortunate loss, they were confident of carrying forward his vision for tourism.

It is a given that Jammu’s greatest asset and tourism pull remains to be the Mata Vaishno Devi Shrine. But, some would contest that it's fame has been a boon and bane, in equal measure, as many of Jammu’s other prized destinations have never received the deserved prominence – making Jammu a unilateral tourism product. The MD noted that, although, the holy shrine of Vaishno Devi was the biggest draw for them, they were keen on marketing their other prized destinations.

“There are so many other destinations which are not being reached and fully explored. We have destinations like the Bhaderwah valley and Chail which are as good as any destinations in the world.

So, we have a lot more to offer than just pilgrimage tourism,” he said. Adding that events like these were important in reaching out to the wider tourism fraternity to dispel certain prevalent apprehensions, he said, “J&K, despite being a sensitive state, is as safe as any other place in the country, and that is the message we intend to be hammered home.”

As Carlson Rezidor Group, besides other big names make a foray into the state, its weak inventory, in the five star category, is likely to be addressed soon.

The state is seeking to open mountain passes, besides amplifying its over 2000 highaltitude lakes which, with sufficient infrastructural augmentation, could emerge as new hot-spots for tourism in the near future.

It will play host to the National winter games at Gulmarg in last week of February. Such events will help position the state as a leader in niche segments like winter sports and adventure activities. were seeking newer experiences were increasing in numbers, he said that the state would leave no stone unturned in meeting their expectations.

He also highlighted some of the recent inductions like the commencement of helicopter service which was gaining traction among tourists. “Our competitive pricing has helped it in making it a popular attraction,” he said.

Also, the launch of ‘hop-on-hopof’ bus service has given a much needed shot in the arm to local travel in Srinagar. The recently initiated service is covering important tourist sites like the Mughal Garden, Hazratbal Shrine, Cheshma Shahi and Botanical gardens. “We plan to launch it for Jammu, too,” said the secretary.

Interestingly, the state is also pitching to highlight its utterly unique repository of over two thousand high-altitude lakes which could prove to be the next big thing for the state's tourism.

online : tech nology

19

Transitioning into a marketplace, Rail Yatri to offer food, taxi and hotel services to rail travellers, a first in this space

After gradually building its base as private railways information provider, Rail Yatri is finally taking the plunge to transform into a vibrant online market place for millions of railway travellers in the country.

By Ritwik Sinha

without getting involved in any ticketing services. And on the basis of that, we have got over 1 million downloads. Now that we are getting into the sales side which will broadly cover all the elements of rail travelling barring the ticket booking, we expect more travellers to align with our application. By the end of this year, we expect 8-10 million download of our apps,” Rathi exuded confidence.

Going by the version of Rai Yatri’s CEO, the process of endearing to the railways travellers in the past three years has been

can find the list of food vendors who can supply him at the next fter three years of station. “We have started this serexistence wherein it vice at 80 stations. The vendors has carved a niche who have become part of our for itself by providing network are adhering to some of myriads of railways-centric travel the basic standard specifications information through its dediwhich we have prescribed. The cated app on a 24x7 basis, for the response has been quite encourNoida-headquartered Rail Yatri, it aging and we will roll over this is probably time to go for the kill. service to more stations graduAn opportune moment for the ally,” informed Rathi. technology start-up to transition The company is also set to from an information platform offer cab services through its to a consolidated marketplace. application at different locations.

With over 8 billion people travelAnd for this while it may join ling by Indian Railways every hands with organised online year (half of them are daily players like OLA and Uber, commuters in the country’s it is also not averse to letting major metros), the size of the in stand-alone operators cake is simply gigantic. And becoming a part of its getting even a small fraction network. “On a full-fledged of it on its marketplace ofbasis, our cab offerings will ferings platform through the go live very soon. Right now, sales of food, cabs and hotels we are noticing a critical will well mean unleashing a gap – there could be a gap new avenue of e-commerce. in the time of booking made The good news for the comthrough the app to actual arpany is: it has no formidable rival of the train at a specific competition from any quarter station. If the train gets late, in this segment prsently. It the economics may not work has been the first mover for the taxi operator. We are and now it wants to reap full trying to sort it out. But we benefits of the commercial will allow even small taxi propositions which the segoperators to directly become ment offers. our member if they could “After painstaking efforts technologically align with of three years wherein we us,” Rathi pointed out.

Manish Rathi were establishing linkThe third critical offerCo-Founder & CEO, Rail Yatri age with the huge mass of ing which Rail Yatri will As we make a decisive move towards railways travellers through unveil would be related with becoming a consolidated marketplace hotel booking. “As we make our information app, we are in the non-ticketing railways segment, now all set to add on services a decisive move towards hotel booking is going to be a major like food, cabs and hotels becoming a consolidated thrust area for us. We want to provide sales offering to our platform. marketplace in the nonhotel booking options to railway travellers using our app. We are likely The opportunity is simply ticketing railways segment, to start this service in a month’s time huge and by now we have hotel booking is going to be on an experimental basis. reached to a commendable a major thrust area for us. scale from where multiplying We want to provide hotel will be not difficult,” Manish booking options to railway Rathi, Co-Founder & CEO, travellers using our app. We Rail Yatri told TourismFirst in an are likely to start this service in a quite meticulous – involving exclusive conversation recently. month’s time on an experimental preparation of precise response The scale emphasised by Rathi is to the basic queries of the travelbasis,” Rathi said. reflective in the app downloads As per the details shared by lers to help them with their travel figure – over a million now. A plans on the second largest railthe company, Rail Yatri during drop in the ocean considering ways network in the world. the initial spell of hotel bookthe Himalayan numbers of rail Recently, it had even introduced ing rollout is looking to provide commuters in the country. But a fog alert functionality in its this service at 15-20 locations in nevertheless, a beginning has app. Meanwhile, while seeking the country. While most of the been made which Rathi pegged its next big leap by emerging in a hotels which will be part of Rail as an inflection point for the next consolidated marketplace avatar, Yatri’s network would primarbig leap of Rail Yatri. “Earlier, we the platform has begun with ily be in the vicinity of railway were solely involved in providing food services. Anybody travelstations, the company’s founder information, helping railways ling by train and having Rail Yatri strongly emphasised that they travellers with their travel plan app installed on his smartphone are being chosen on the basis

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The first bunch of hotel offerings will comprise religious destinations

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ail Yatri’s aspiration to provide hotel rooms to its application users (among a slew of other offerings) is inching close to becoming a reality. The platform is all set to kickstart its hotel offerings by March end for which it has short-listed about 20 locations where the accommodation service will be provided in the first spell.

“The locations which we have selected are a mix of business and religious tourism destinations since the footfalls are high in these destinations. We are fast signing up with hotel operators in the selected cities,” said Rathi.

As per company’s version, some of the Indian religious cities which are part of the first list include Jammu, Amritsar and Ujjain. “The holy city in Madhya Pradesh will be hosting the gigantic Simhastha Kumbhmela later this year drawing devotees from both within the country and abroad. Most of the visitors would obviously come by train and it is quite an opportunity for us to provide the religious tourists with the hotel booking options on our app,” he underlined. According to Rail Yatri CEO, as the platform brings in more destinations on its hotel offering map, the focus would clearly be on the traffic density to the specific locations and here tourism destinations would be a vital inclusion.

Meanwhile, for selecting hotels on its network, Rail Yatri will have its own standard specification which the operators will have to align with.

of Rail Yatri’s specific standard parameters.

Rail Yatri’s big leap plans are rooted in the existing equation which underlines that Indian landscape is dotted with as many as 8000 railways stations. “Even if we assume that about 3000 of them are very small, mostly one train stoppage stations, the remaining are vibrant marketplaces in their

Equally important would be their ability to offer accommodation on a shortduration basis. “These units will be mostly accessed by corporate travellers moving by railways who may need to use an accommodation for not more than 12 hours. We are talking to our prospective hotel partners to provide services on such a short-duration basis. We may well end up providing a booster dose to the lodging segment in the Manish Rathi

The holy city in Madhya Pradesh will be hosting the gigantic Simhastha Kumbhmela later this year drawing devotees from both within the country and abroad. Most of the visitors would obviously come by train and it is quite an opportunity for us to provide the religious tourists with the hotel booking options on our app.

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country,” he informed.

Meanwhile, on one hand, Rail Yatri will be attracting stand alone units to become its members, it is also in touch with players like OYO to partner with their products.

“We are talking to OYO and other aggregators. They can also exhibit the properties in their network on our platform.

By doing this, they will have one more medium to sale their properties while we will have a composite network. It’s a win,win proposition,” Rathi remarked. own rights. And we want to tap the business opportunities emerging out of them. In our reckoning, sky is the limit in this domain where all train related travel activity will be ultimately brought under the e-commerce umbrella,” Rathi underlines.

Considering the gigantic size of Indian railways network, one could hardly punch holes in Rathi’s assumption.

20

hotelscapes

Not looking at foreign investments; may explore IPO route in 2-3 years, reveals S P Jain

The hotel lobby has Indian art work that creates an ambience for authentic Indian hospitality

A view of the Oriental Spice restaurant that serves a variety of cuisines

Tertiary cities will carry forward momentum; hospitality sector will grow in double digits

The Pride Hotels will keep expanding but without over-burdening themselves with debt, says the MD. He denied any possibilities of looking into equity, and argued that with a better understanding of domestic markets and consumers, domestic brands would continue to give a tough fight to the foreign onslaught.

By shashank shekhar

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he Pride Group is in midst of an impressive expansion. The group began with one property in the year 2000, and eye a target of a 3,000 room strong inventory by 2020. This ambitious target, however, comes with a challenge of accumulating sufficient resources. But, S P Jain seemed confident of managing resources needed for the intended expansion. “We have our internal resources, and our domestic promoter is also pumping in money.

We do not require international promoters or funding,” he told us.

Giving us a better understanding of their management of funds, he said that they had borrowed from banks, apart from seeking equity funding. “We have borrowed from the Kotak Equity Fund which accounts to ten percent share of the total investment,” he explained.

The big revelation, however, was that the group may even look at going to public for more funds.

“We may further try to give a wider range of investment option through the IPO (initial public offer) route. We plan to take a call on the IPO route in another twothree years. We are waiting for the right moment. But, we are not going to get into the equity route anymore,” he ascertained.

Noting that the Pride was a young group, he pointed towards their considerable growth from a single hotel to seven owned and five managed properties. “We have considerably expanded our portfolio in the last decade and a half. We are growing at our own steady speed; we are also not in a debt trap,” he said, indicating how many of the home-grown brands had fallen into a debt-trap while attempting to expand their businesses. “We do not borrow too much. We have borrowed

amounts that can be serviced easily by the revenue we generate. We have generated around thirty-five percent GOP (gross operating profit) constantly,” he told us. On the question of whether the group had leveraged its investment, he said that till now not much S P Jain had been leveraged.

MD, The Pride Hotels What has been a We may further try to give a wider major challenge for dorange of investment option through mestic brands is to match the IPO (initial public offer) route. We plan to take a call on the IPO route the ferocity with which in another two-three years. We are some of the international waiting for the right moment. But, we players have forayed into are not going to get into the equity the Indian markets in route anymore. the recent years. They have used varied means ranging from merghundred people, and thirteen ers and acquisitions to sales offices in India. Therefore, deepen their stakes. But, S P Jain we are continuing to grow at a brushed aside these challenges, stating that those brands had little good pace, and giving a tough fight to foreign brands. If you look understanding of the domestic market and needs of the clientele. at the balance sheet, Indian hotels are doing better than foreign “Foreign brands are not investbrands,” he reasoned. Adding that ing money. They are working on growing numbers of mergers and resources created by domestic acquisitions would not be a threat investors. Secondly, they have to them, he quipped that they, yet to understand the domestic themselves, were the master of market well,” he argued. He said acquisitions. “We have acquired that domestic brands had an innate upper-hand in understand- four hotelsm including ones in Nagpur and Ahmadabad etc. ing the requirements of patrons.

Sharing that he hoped to “We know our customers very register a substantial twenty-five well; we have made our product percent growth jump in turn-over, suited to our customer, as per compared to the last year, he said their requirement,” he reasoned. “the hotel industry was in the It is indeed true that the Pride Group has always remained a full- latent state. So, the profitability of the sector was naturally not range of hotels; a good ‘value for very high. But, this year we are money’ for domestic and foreign expecting serious growth.” He clientele, focusing on servicing added that by the next financial a particular segment of upper year they aimed to double that and mid-class business segment. turn-over. “So, basically, we are With the launch of Pride Plaza in gunning for a hundred percent the Aerocity, it is for the first time jump in the turn-over by 2017,” he that they are foraying into the elaborated. upper segment in Delhi, besides The Pride Group now intends in Kolkata and Ahmadabad. “We a robust expansion in the years to have a strong sales group of over

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lacing his wager on tertiary and secondary cities for taking forward the mantle of growth in the hospitality segment, S P Jain asserted that “the next spurt of growth in hospitality lies in tier-2 and tier-3 cities. I reckon Nashik, Rajkot, Kochi, Dharamshala, Indore and Bhopal are top tier2 and tier-3 cities to watch out for,” he pin-pointed cities that, to his money, were on the cusp of a major boom. He backed his assessment by saying that it was the primary reason why the group had heavily concentrated on expanding their portfolio in most of these cities.

He also had a word of praise for the present government.

“Now, our government is very aggressively promoting business – which will consequently help tourism and hospitality,” said the MD. Infrastructural development, e-visa roll out and focus on cleanliness was helping create a much more vibrant image of India, globally,” he further shared. Forecasting that tremendous growth in hospitality and tourism was to be seen in the next five years, he said “even the WTO says that Indian hospitality will grow at a rate of, at least, 10-12 percent year on year.”

Another major worry for the wider hospitality industry has been the lop-sided equilibrium vis-à-vis supply and demand.

Albeit the supply side has

come, we were informed. Having acquired seven acres of land in south Goa, the group in on course to constructing a resort, said the MD. “We are going to come up with a hotel with 300 rooms in Goa. We will have a hotel in Mumbai with 200 rooms; as you are aware, we have already acquired two acres of land in Saki Naka.

We are adding 75 more rooms to our Nagpur property; we have ac-

increased more than demand but in recent months supply side is beginning to dry up. S P Jain concurred with the logic stating that nobody was constructing much. “It is a capital intensive industry with a need for high investments. What I have seen is that whatever supply is introduced is digested by the market. Pune has digested all the supply; Delhi will digest new entrants in one to two years. In fact, domestic demand has gone up, too,” he opined.

Coming back to the Pride Plaza in the capital, it has a heavy dose of ethnic Indian culture, hospitality and art in its ambience. The hotel boasts of actual pictures of Delhi’s top monuments and heritage that have been put up in each of the rooms – depicting what’s in store for the traveler. There are art works installed in the public spaces depicting the colour and feel of India. We were also told that the hotel staff had been trained to treat each of their guests with the underlying principle and feeling of ‘atithi devo bhava’ (the guest is a God). S P Jain called these elements real differentiators. “This is our USP which we have created in this hotel; it is not found elsewhere in the Aerocity. We want to prove that in the Aerocity, we are a hotel that oozes of Indian culture, vibe and warmth,” he concluded. quired some land to carry out the expansion work,” he detailed. We were also told that work on two of their properties in Nashik and Indore was already underway – which would be managed by them. “So, we are all geared up to expand our inventory to three thousand rooms with 25 hotels by 2020,” said S P Jain.

21

hotelscapes

Involving local community a must in creating experiences for visitors: Akhil Behl Akhil Behl – CEO, Ayana Hospitality believes that Indian hospitality sector has started taking small steps to inculcate responsible and sustainable tourism over the past decade.

However, the success of this enterprise will depend on how various tourism bodies define their policies and implement them on the ground.

By shashank shekhar

H

e blames the lack of a holistic approach and a definite sense of direction for the failure of Indian hospitality in imbibing sustainable practices into their operations. “The Indian hospitality sector has taken baby steps towards sustainable and responsible tourism over the last decade, however there is much more ground to cover before I can say with some conviction that there has been a meaningful foray,” he said. Noting that, from a hotelier’s stand point, there always was an economic impact to being sustainable and responsible, and finding the right balance had long remained a challenge, he told us, “I believe there is strong awareness today, and that will eventually lead to profound changes in the right direction, however, it is critical that various tourism authorities and boards define policies for the development and operation of hospitality projects, and make sure that they are implemented.” He further added that if it did not materialize, we would continue to witness small pockets of changes as opposed to concerted approach with a clear direction – defining a pathway for all stakeholders.

Giving an insight into how India’s overall product was evolving in the realm of experiential tourism, he said that the leisure hospitality sector, today, was all about creating experiences and the same was true for India. “Experiences are what guests are demanding, and gone are the days when people would sit back and relax by the pool all day. India has always been an experiential destination right from the palaces of Rajasthan to the backwaters of Kerala.

The more experiences one can create in and around a hotel – the better they will be positioned for success,” he elaborated. Calling the understanding of location the most important factor in creating experiences, he shared that what it offered and how it was to be translated into an experience was crucial. And, he believed that local community remained a key asset in curating those experiences, of course, after the expertise of the hospitality company. “Local communities have, and continue to be essential to the long-term sustainability of tourism ventures, especially in remote and eco-sensitive areas.

“They play a very important role as they have occupied these lands for centuries and have an ocean of knowledge regarding the local flora and fauna. Most remote based properties in India will have around fifty percent of their staff from the local community, in addition to maintaining a very close relationship with key leaders to address any local issues that might surface,” he elaborated. He added that properties that had not done this had faced a lot of backlash from local communities, and in some cases it, also, had resulted in disruption of operations.

Sharing that countries like South Africa had taken steps to ensure that local communities were integrated in the overall economic model of tourism products and had significant financial interest in them, he told us that, “This model entrenches local communities far more and brings more sustainability to the hospitality ventures. India will need to start evaluating this approach.”

Being a hotelier, besides donning other

Akhil Behl CEO, Ayana Hospitality

For sustainable and responsible tourism to succeed, it is critical that various tourism authorities and boards define policies for the development and operation of hospitality projects, and make sure that they are implemented.

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InDeco Hotels is a shining example of integrating local community into the overall experience of visitors. In the picture, a local villager takes a child for a horse-ride

caps, he also had a take on the evolvement of the culinary segment. He believed that the trend in the Indian culinary segment was towards authentic, organic and local cuisines. “I believe that we are in the midst of a culinary revolution. Gone are the days of fusion cuisines. As a hotelier, this trend is

more responsible and sustainable and also results in lower cost of production as ingredients are all locally sourced,” he shared. He concluded by saying that guests now had the ability to truly get an authentic experience, including the most important part of a leisure traveller's day – his meal.

global e xchange: mongolia

22

Mongolia’s distinct culture could be a huge draw, if marketed properly

A traditional costume on display

With large number of horses, it is becoming an attraction for horse aficionados

Enhanced economic exchange key to stronger tourism connect, notes Mongolian Ambassador As Mongolia and India celebrate sixty years of diplomatic ties, it is time to relook at areas of priorities to boost our common​tourism connect, feels envoy Gonchig GANBOLD. In an exclusive interview to TF, he said that with the PM’s recent visit, ties were looking better than ever before.

By shashank shekhar

S

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robably the last remaining vestige of the by-gone era of warheroes and legends, Mongolia, as a destination, has a distinctness which is tough to replicate. Besides, not many would be aware that Mongolia has vocational centers named after Rajiv Gandhi, and an IT centre for excellence named after Atal Bihari Vajpayee. A number of children are, still, fondly named Indira and Jawahar, proving a point that Indian politicians are well-known in Mongolia. This may come as a surprise, but underlines the deep-rooted connect between two of the oldest civilizations in Asia. More than fifty percent of Mongolia’s three million plus population follows Buddhism and finds resonance in India’s vast repository of Buddhist heritage.

“We have been intertwined in various bonds, from spiritual, cultural and historic. There are a number of places in Delhi, and in India, whose name resemble t​ hose from ​our nation. So, they are subject to study for the future generation of historians.

In our manuscripts dating to the thirteenth century, sacred to Mongols, India is known as Hindustan.

India was well-known and considered as the land of Buddha – a sacred place,” said Ambassador Gonchig GANBOLD. Stressing on the historical

L

Want to encourage student exchange; will introduce e-visa for making it easier for Indians

his excellency Gonchig GANBOLD Mangolian Ambassador

Asian-Chinese travelers left their travelogue which details that monks from Mongolia were a regular at these institutions.

On the basis of these very close spiritual and cultural ties, we established diplomatic relations between our two states – which n ​ ow enter the sixtieth anniversary.

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connect between the two nations, he r​ ecalled​how monks from Mongolia travelled through the Himalayas to study at the famed Nalanda University. “Asian-Chinese travelers left their travelogue which details that monks from Mongolia were a regular at these institutions. On the basis of these very close spiritual and cultural

ties, we established diplomatic relations between our two states –which n ​ ow enter the sixtieth anniversary,” he explained. Adding that Mongolia had planned t​o ​ mark this m ​ omentous occasion ​ with year-long events, and this really was a moment to sum up what both nations had accomplished together, he said, “We, at this moment, should also outline what we can do in the next sixty years, together. Sixty years in our concept is a century, in our Oriental school of thought,” he philosophically added.

Mongolia, off late, has gained traction in the Indian consciousness, thanks to PM Modi’s visit last year. The envoy said that PM Namo’s visit was a landmark occasion in the history of bilateral relations. “The government of

Lack of air-connectivity to be resolved shortly; have put inter-airline agreement in place

ack of direct air-connectivity, despite the prom- sales agreement have already been concluded,’ ise of better bilateral relations, remains a major added the Ambassador.

There were several routes that could be explored impediment. If that was not enough, Mongolia besides Hong Kong, he noted. “We may also look at is yet to be represented by a tourism office in India Beijing, Seoul or Tokyo. Since Mongolia is the shortwhich is vital in any nation’s attempt to further its outreach to domestic clientele. But, an encouraging est air-route connecting Europe and Asia, so once this connection gets going, we may development has rekindled hope of a better air-connectivity. “MongoMongolian Airlines MIAT even expand it to other European countries via Mongolia,” he hoped. lian Airlines MIAT has signed one has signed one Indian company to represent On the question of lack of Indian company to represent them MIAT in India, and they representation through a tourism in India, and they also have a tie-up also have a tie-up with office, he conceded that it was a with Jet Airways. So, Jet Airways will Jet Airways. lacuna which needed to be looked fly into Hong Kong and Mongolian into. “We are not represented here Airlines will fly into Hong Kong from which is a shortcoming, but we do Mongolia​; o ​ n some sort of a tie-up try to use every medium to make Indians aware of regarding co​de​sharing,” the envoy explained. He our offerings as a nation,” he said. “Firstly, people said that it would help in recognizing one-another’s ticket, “so, we may have a Jet Airways or Air-India’s working in the media can visit Mongolia, we can ticket, and it will be valid on the Mongolian Airline. exchange some journalists. Then they can play Also, if you send cargo from here, then you will rethe role of a bridge between our two nations,” he ceive it in Mongolia on the same concessional rate. added. He also hoped to explore art and other exThese are some of the initial steps that are being hibitions on both sides which would give people taken. Otherwise, inter-airline agreement and landan insight into one-another’s life.

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tudent exchange is a sure shot formula to enhance bilateral footfalls. It helps foster better understanding by enhancing peopleto-people connect, besides creating foot-soldiers who act as ambassadors helping raise visibility of their nations. It is precisely what Mongolia has planned, shared the envoy. “PM Modi, during the recent visit to Mongolia, had announced that he would want to see more Mongolian students coming into India, and to Nalanda University. So, we are encouraging enhanced bilateral student exchange. However, I do agree that their numbers are not enough; it should be increased,” the envoy told us. “We keep encouraging our youngsters to come here and explore. The knowledge is imparted in English which will give them many opportunities to get meaningful employment,” he added.

Tourism, as a sector itself, is gaining prominence in Mongolia. With a majority of travelers descending from Europe, France in particular, and Japan to enjoy bird-watching and hiking, the nation is also attracting Horse-racing and automobile rallies aficionados. “These are also picking up as popular activities,” the Ambassador said.

Noting that in a bid to attract more tourists, the government had put in place a liberal visa system, so travellers from India did not need to pay any visa fee, he added, “We will initiate an electronic visa system for India, later this year which will make it easier for Indians to visit us.” Mongolia has, now, trained its gun on touching a footfall figure of a hundred thousand, from India, by the next year. “In 2015, we had hosted a total of four hundred thousand visitors, from world-over, and we are trying to increase the numbers,” added the envoy.

India expressed its readiness to boost our bilateral ties; even made the pledge to provide a sum of one billion USD as a line of credit which would encourage Indian export of goods and commodities, including of course, travel and tourism,” he said. Sharing that Mongolia was one of the most sparsely populated nations in the world – It is almost half of India’s size – he said that one could find diverse topographical and climatic zones which appealed t​o ​ Indians. “We do have great political and cultural connect. Now, what ​we need is to diversif​y it​in the realm of economic exchange, like in tourism and enhanced bilateral visits,” said the envoy.

He opined that once the real economic activity commenced on ground, then relations would further deepen. “We are working with some Indian companies to set up outsourcing centers, and probably that company will announce ​its intentions shortly.

We can develop viable projects to properly use the line of credit in infra projects,” he detailed how Mongolia intended on deepening bilateral connect.

He saw tremendous opportunities f​or​trade and commerce in animal husbandry and mineral resources – both of which were found in abundance in Mongolia.

He noted that they had almost sixty million heads of livestock which was a massive resource of animal husbandry materials

like wool, hides, cashmere and intestines. “It can be processed as surgery thread; a value-added product – so a lot of products can be created out of them. We have all the raw materials needed.

Indian pharmaceutical companies can be made more cost-effective.

So, we can create a lot of products together which can be exported to other markets, besides domestic consumption. Russia is under sanction, while China’s demands are huge, so these can be worked upon together,” he opined. He also saw agriculture and IT as major components which were yet to be explored. “The eastern part of Mongolia is very conducive to agriculture; now our government is planning on making it a special agriculture zone – where Indian farmers can grow crops. Again, IT sector is a promising sector.

It can be furthered in Mongolia, with the Indian side helping in its set-up. It can penetrate to other big markets, thanks to our location,” he believed.

Noting that Mongolia was wellendowed with mineral resources, he expressed interest in cooperation on mineral processing. “India has a strong pool of civil engineers who could work in Mongolia in different projects related to setting up of electricity grids and other infrastructural projects which will help us extract huge deposits of minerals from mines. It can be used in India to meet its growing market,” he opined.

23

global e xchange

Hong Kong’s Harbour City mall exhibits the power of shopping in boosting footfalls Shopping is a major tourist draw and destinations can leverage it to boost their tourism numbers, and Harbour City mall is the leader in Hong Kong’s foray for the same. Karen Tam, Assistant General Manager – promotions and marketing, Harbour City mall shares how they have successfully capitalized on their vast offerings and created a tourism experience which is difficult to replicate.

By shashank shekhar

A

comparison between India and Hong Kong is an unreasonable one, to say the least. With a population of less than eight million, and a GDP of around 300 billion USD, it is a much smaller country in every sense of the term. However, India is yet to have a mall that could give a reasonable competition to Hong Kong’s Harbour City mall. With a location A panoramic view of the Victoria Harbour that has the famed Victoria Harbour lending a spectacular multi-million dollar harbour toy store in Asia,” she detailed. that attract the discerning travelview which is unmatched; Adding that besides toy-stores, ler. There are dedicated festivals; The Harbour City mall is the it housed apparels, books and for instance, a chocolate festival Karen Tam Assistant General Manager, epitome of a shopping destinaother products of their interest, is celebrated with great gusto – it Harbour City mall tion. Incidentally, the harbour, she added that “for men, we is a celebration of the Chinese We are the largest shopping mall, and have shops with top of the line New Year and the Valentine’s Day, itself, will complete sixty years have the longest history in Hong of existence. watches and jewellery brands put together. “In summer holiKong. There are different clusters The scale and grandeur of – almost eighty in number days, in July and August, we have that have dedicated products for different segments. the mall can be understood which is double compared events crafted around engaging from the fact that it spreads to our closest competitor travellers,” Karen noted. across a real-estate of 1,85,000 mall – clothing and body care There are three hotels, in the sq. meters. It houses eleven ofproducts. There are a number mall, under the brand name of fice towers, dozens of restaurants have dedicated products for difof electronic gadget shops, too.”

Marco Polo. “Besides, hotels, and hundreds of shops displaying ferent segments. For instance, we Besides, shopping, the lure eleven office towers help us get thousands of top-notch brands. have beauty products for women of entertainment and culinary regular traffic. We cater to almost Karen Tam said that shopping was in a specific area, boasting of over experiences are major draws for a hundred and fifty thousand very integral to the overall tourism two hundred different skin care this one-of-a-kind mall. “There tourists in a weekday; it can go up experience in Hong Kong. “As products – a lot of them are Koare sixty different restaurants in to two hundred thousand on the far we are concerned, we are the weekend,” she shared. rean brands, and very expensive; the mall, serving a wide-variety largest shopping mall, and have What makes the mall a huge a cluster dedicated to children of cuisines to suit one’s taste,” the longest history in Hong Kong. draw, besides its scale is the pricwith plethora of products to suit she said. The mall has employed There are different clusters that ing which allows travellers from their needs, including the largest some smart marketing strategies

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on a budget to the high-spending aficionados to engage in a shopping experience. “From Zara and Wal-Mart to Jimmy Choo, we cater to everyone’s need. In fact, the reason why shopping in Hong Kong is a huge draw, because many of the top brands unveil their finest products here,” Karen elaborated.

“Shopping is the lynch-pin of Hong King’s economy,” she noted.

She told us that a lot of tourists spent a major chuck of their money in shopping and dining, so it had huge stakes in Hong Kong’s economy.

There are some concerns, however, with the slow-down in the Chinese economy; Hong Kong’s lion share of inbound comes from China. But, Karen opined that despite the slowdown in the economy, they still received huge volumes of Chinese travellers from second and third tier cities. “China is a vast country, so we will keep getting numbers from there,” she said. Given the year-on-year growth in terms of footfalls, the Harbour City could moot expansion, especially in India – which despite its spectacular economic rise in the past two decades, has been bereft of a shopping experience like Hong Kong. Karen, however, said that the mall had foreign investments, but it was still confined, only, to China.

Indonesia to target tier-2 and 3 cities; direct flights may commence after Air-Garuda's fleet expansion Indonesia is aiming to widen its presence in India by focussing on secondary and tertiary cities. Its focus on wide array of activities; a heady mix for leisure and business travellers could help it increase the Indian outbound numbers, feel Deputy Director and Country Head.

By shashank shekhar

I

ndonesia is planning to increase its presence in India, as it aims at diversifying its source markets. We were told by the Taufik Nurhidayat, Deputy Director of Ministry of Tourism that by the end of this year, they would have two more VITO offices (Visit Indonesia Tourism Office) – one in Delhi and the other in Mumbai. “For us, biggest markets are Australia, South Korea, China and Japan, because of the proximity and direct connectivity,” he shared during a conversation. Having hosted over a million Chinese travellers last year, the Indonesian government has optimistically set its sight on targeting two million travellers from the Chinese shores. “We have over a million plus figures from Australia and Singapore. Malaysia is closing in on seven digits, so these remain key markets for us,” he further added.

Expanding its foot-prints into India is a calculation based on the potential of targeting new, upcoming secondary and tertiary cities – which are gaining prominence,

thanks to better exposure and, now, enhanced air-connectivity.

“Primarily, two markets have been strong for us – that is Delhi and Mumbai. But, other upcoming cities, tier-2 and tier-3 cities, now, have international airports which hosts a good number of foreign travellers. We feel that there is a lot of potential in smaller cities, beyond metros,” reasoned Sanjay Sondhi, Country Director of Visit Indonesia. “We are expecting healthy growth from here. We registered some two hundred and sixty two thousand Indian outbound in 2015. So, to keep up with our new target, we must spread ourselves and be more visible.”

Another cause of this foray is based on the fact that while the Chinese market is over-heating and other international markets register not so impressive growth, India’s economic growth has been steadily heading north. “Once we have direct connectivity on offer, footfalls will surely multiply in numbers,” said Sanjay Sondhi.

He told us that the Air-Garuda was holding on for a capacity enhancement – which was to be completed by the end of the year

countries. That’s a challenge for attracting MICE segment, as with changing two flights, seat availability becomes an issue – there are connecting flights from busy hubs like Singapore, – before taking to the Indian Thailand and Malaysia,” he skies. “It is based on their said. Adding that however, pafeasibility report. We hope that trons did see value in coming the fleet expansion happens into Indonesia with reasonably soon. And soon after, we will priced offerings, he added that have direct air-connectivity “food and rocking night-life between India and Indonesia,” in most of the big cities are he assured us. added advantages.”

The diverse offerings, Sharing that for the past ranging from beaches, two years, their mandate had shopping and cuisines make been ‘beyond Bali’ – which it an ideal destination for aimed at attracting travellers positioning it as a ‘family beyond the famed beaches of getaway’. And, that is what Bali. He agreed, though, that they have planned to focus Sanjay Sondhi connectivity was an issue that on, said Sanjay. “Indonesia as Country Director, Visit Indonesia was yet to be ironed out. a destination has a variety of Primarily, two markets have been Indonesia is now targetofferings from wellness, spa, strong for us – that is Delhi and ing to take Indian travellers nature, and heritage – and, Mumbai. But, other upcoming cities, tier-2 and tier-3 cities, now, have to newer cites, and to show thanks to a considerable international airports which hosts a them the value that the desinfrastructure available, now good number of foreign travelers. We tination has to offer. With an MICE and corporate travel,” feel that there is a lot of potential in augmentation of the existing he said. “Not only in Jakarta smaller cities, beyond metros. infrastructure, and good road or other big cities, we have network, one could drive large convention centres even from Jakarta to Bandung in smaller cities, some are ing attractions like the Jeju Islands which is a shopping destinafocusing on incentives and are serious competitors, but Sanjay tion. “There are more hotels and corporate movement,” added the contested by saying that what convention centres on the anvil country director.

Indonesia’s pitch to position made them different was their USP which can cater to upwards of itself as a MICE and corporate des- of ‘affordable luxury’. “Unfortufive thousand people under one tination is not without challenges; nately, we do not yet have direct roof,” he detailed some of the for Singapore, Busan and upcomair-connectivity between the two infrastructural add-ons.

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global e xchange: ireland

24

A monument to maritime heritage, the famed Titanic was manufactured in Belfast which is still a major tourist pull

The Giants Causeway is an attraction for locals and tourists alike

We will focus on IT, pharma, F&B and equestrian sector to boost bilateral connect: Irish envoy India’s economic growth and young population attractive prospects: Aubrey

By Shashank Shekhar

S

ister Nivedita, Annie Besant, James Cousins and W B Yeats are some of the important historical figures who have shaped India’s history in one way or the other.

But, what has been the travesty of Irish-India connect is that these pivotal bonds have been lost through the years. Ambassador Brian McElduff attributed the then healthy ties to better knowledge of the erstwhile political conditions and the umbilical cord of British colonialism that bound both nations together. “I do agree that a few decades ago, Ireland had a higher profile, because PM Nehru was very interested in us. He knew Ireland quite well, including our political history and movement towards independence. There are certainly parallels. However, I would not over-extend them, as India is so much bigger,” he reasoned. He shared that Ireland had been an inspiration for Indian leaders.

The bilateral-connect has surely transformed through the decades, as India started exporting its manpower to distant shores in search of employment opportunities; as many as thirty thousand Indians live and work in Ireland – primarily in the pharmaceutical and IT sector. Off late, bilateral ties have picked up, thanks to globe-trotting PM who made it a point to visit Ireland, making him an Indian PM to visit Irish shores in fifty years, correcting a grave omission. The envoy called it a positive signal for bilateral cooperation. “The visit of PM Modi was extremely important. Ireland was one of the first European countries he visited.

And we have a substantial Indian community back home, so it was great to see him engaging

I with them, as well,” he said. He believed that the promise of bilateral cooperation was enormous, almost infinite. “I think that India is doing incredibly well; it has great potential, and we have a lot in common. We have historical experiences in common; both our nations speak English. After all, the English language in a sense is a unifying force. It is the language of modern trade and commerce. Also, when it comes to doing business in India, and if you look at the profile Ireland has – we are especially strong in areas that India is interested in, such as the IT sector,” he detailed the reason for his belief.

Besides, Ireland also hosts more than two thousand Indian students and the numbers have increased a lot in the recent years, he said. Stating that the educational system in Ireland was of very high standard, he said that their nation had a very positive image in India, “many of the schools in India, in fact, were set up by Irish religious figures, in most cases. It is wonderful to be here to be able to witness this network, educational network in particular,” he told us.

Brian McElduff Ambassador

I do agree that a few decades ago Ireland had a higher profile, because PM Nehru was very interested in us. He knew Ireland quite well, including our political history and movement towards independence. There are certainly parallels. However, I would not over-extend them, as India is so much bigger,

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Sharing that by the virtue of being a small nation, Ireland intended on focusing on certain areas of its expertise, he said, “It is a principle that applies to every growing economy that we cannot be good at everything.

Even big countries struggle to be good at everything. So we intend to focus on the things we are good at, and make those really excellent and world-class, and find like-minded partners.”

He pointed towards some of the internationally famed Irish products like Guinness, Baileys, or Jameson Whiskey, and how they had attained a global stature.

He believed that the equestrian sector, besides F&B were prime areas where Ireland had enough

Joint visa scheme with the UK has helped footfall; exploring direct-connectivity to India

R

eacting to the question of the possibility of direct air-connectivity between India and Ireland, Ambassador McElduff said that he had heard various possibilities. However, to his understanding, the joint visa scheme initiated in tandem with the UK has had a profound impact on footfalls. “I have heard about various possibilities which I do not want to go into right now. I think it is an issue certainly, as direct flights do make a huge difference. But, I do think that we have enormous progress with the joint visa scheme with the UK, because that was a more serious impediment; it is very easy to get to London, and other European hubs,” he detailed. He said that Ireland was a very short distance from there on, and there are many connections, but the issue of having a separate visa was on for a long time, a greater impediment for visitors.

“The joint visa scheme has really shown very positive results, but having said that, we are very keen on having a direct transportation between the two nations,” he shared. Sharing that Ireland had a very high prominence in international aviation – it was one of the sectors they had done very well in – he said, “we have a lot of experience with home-grown players like the Ryan Air – which has done incredibly well within the European hemisphere, very largely, and garnered enormous success. I know they are interested in branching out further,” he informed us. Noting that directconnectivity was to stem-out after an increase in bilateral footfalls, he noted: “when we register a growth in number of visitors from both sides, I think more airlines will see it more profitable to set up more transport link.”

reland’s investment into boosting its airport infrastructure has helped it cater to larger number of passengers, said Aubrey Irwin. He noted that the accessibility to India had grown many fold with a number of aviation players linking both the nations through Dubai.

“New route been opened from Dubai has simplified travel. Ireland for a very long Aubrey Irwin time, had, looked westwards, Head, northern ireland, tourism ireland towards the USA, so our airlines were focusing on those routes. Now, with Etihad and Emirates flying in, things have changed,” he elaborated.

Sharing his understanding on the British-Irish joint visa scheme, he opined that, although, it was difficult to pin-point the difference between cause and effect, it had helped increase visibility and tourist numbers. “It has helped us to ensure that Ireland does come into the reckoning amongst the four hundred thousand strong outbound that heads to the UK each year. So, there is an opportunity for us to extend their travel into Ireland from the UK,” explained Aubrey Irwin. He added that, “we understand that the development of the Indian economy is very strong and younger people of India have the urge to travel. So, it is about building a momentum towards the future, as well.”

Having a link via Dubai has certainly increased the accessibility, but without a direct stake between the national carriers, the level of engagement will never escalate to desired heights.

However, Aubrey said that, although, he could not necessarily speak on behalf of airlines, they were pitching for direct access between India and Ireland. “Dublin airport has built a second terminal; we have come of age in our hubbing capacity. Out of the twenty five million passengers who use Dublin airport, one million used them as a hub. A part of that is because of the exceptionally favourable condition that passengers travelling from Ireland to the US have. So, I think sometimes you have to make progress at more than one front at the same time,” he reasoned.

He expressed hope that with better facilities at place, enhanced economic growth would act as a catalyst for airlines to push for direct connectivity to India, in the near future.

to share with India. “I was at the Race Day for the Racing Conference in Mumbai, recently.

There was a sizable presence of the Irish contingent. In fact, the equestrian sector is hugely valuable for us, and it is because we do it very well. We do a quite a lot of trade with India in this sector,” he told us. “Equally, when it comes to food and drink, I know there are difficulties related to trade with India. But, we are still doing quite well. Besides, we are exporting Irish whiskey and dairy products. We see them as very important growth market,” added the envoy.

Sharing that although officially, Ireland had quite a small network – there are only three Irish diplomats in Delhi, it did have a considerable auxiliary presence. “We have our team

Ireland which includes tourism department, investment agency, industrial development authority and the education sector. We have very high-profile educational exchanges. We also have a network of honorary consuls in Mumbai, Chennai and Kolkata.

So, we do have quite a strong network,” he stressed.

2016 was going to be an important year for Ireland, said the Ambassador. “It is the beginning of our centennial year of our struggle for independence. So, we are having a number of events, including participation from India – former External Affairs Minister Salman Khurshid will be taking part in it. I am also hoping to do some seminars and events in India,” he detailed how Ireland planned to increase its outreach into the Indian market.

global e xchange: Ne vada

25

Route 50 is often called the loneliest highway in the USA. With no vehicles in sight, it is a unique driving experience

Hot air-ballooning is a fantastic way of experiencing the landscape of the state

Nevada keen on enhanced student exchange and ‘sister cities’, says Lt. Governor Nevada needs no introduction. With the iconic Las Vegas by its side, its tourism pull remains as strong as ever. However, the state is, now,focussing on amplifying its other products and destinations, that are equally riveting in creating experiences.

By shashank shekhar

T

he integral theme of some of the all time classics of Hollywood has been the ‘Wild West’, immortalized on the celluloid by giants like John Wayne and, later by, Jimmy Stewart. Las Vegas has long been the entertainment and cultural capital of the USA – thanks to entertainers like Frank Sinatra, Dean Martin and, lately, Celine Dion. There are more hotels in the Las Vegas Boulevard – which is a strip – than in most major cities in the world. Besides experiencing the gaming and night-life capital of the world, one can soak in the authentic cowboy experience in Nevada. It is also the home of the loneliest highway in the country – the Route 50 where you may drive for hours with no other vehicle in sight. Not many know that Nevada hosts some great wineries, too.

They have wineries in the south and, some, in the north.

The outcome of all this constant exposure of these amazing products to global audience can be understood by the enormity of the number of footfalls in the state. In the Lt. Governor’s own admission, the state hosted upwards of fifty-eight million tourists last year– which is almost twenty times its actual population!

Tourism is critical to Nevada’s economy where close to four hundred thousand jobs come from the tourism industry, we were told.

“There are close to three million people in the state of Nevada; our total work force comes out to be somewhere around 1.2 million people. So, tourism supports a third of the total workforce,” said Mark Hutchison. Adding that, though, he could not exactly pin-point how much it translated in terms of every dollar generated, he asserted that “I believe, it comes down to almost thirtythree cents per dollar. It is a major component of our economy. So

our major industries are hospitality and tourism –which includes gaming, besides mining and traditional industry like construction. It is who we are; I would not like to brag, but we are pretty good in tourism.”

Lt. Governor – who is, also, the Chairman of the Nevada Commission on Tourism – has a clear cut agenda of increasing international inbound, and he stressed that India was integral to their quest for better footfalls. He attributed his belief to the fact that there were so many Indians who want-

India being a long-haul destination works to our advantage, says Larry Friedman

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estinations need to keep re-inventing themselves to keep their much-needed vitality intact. A look at some of the best destinations tell us that they have constantly infused newer elements, improved infrastructure and created better products to keep tourists interested. What seems a little tricky with Las Vegas, though, is that it has long been a celebrated destination, globally. How do you improve something which has already attained a cult status? But, Larry Friedman, deputy director of the Division of Tourism, Nevada credited concerted efforts from the hospitality industry, as well as the government in honing the product.

“People like Stephen Wynn have played a major role in maintaining the exuberance. The opening of The Mirage and The Excalibur Hotels, and other incredible hotels and casinos have consistently lend to the product of the city,” he said. He said that being true to the idea of entertainment had reaped them enormous dividend. Stating that the idea of entertainment, itself, had evolved, he noted that “the importance of nigh-clubs and night-life has gained traction; we have Lake Tahoe and Reno as important assets. We have also kept

Larry Friedman Deputy Director Division of Tourism, Nevada

An Indian visitor, typically, stays longer in the USA; on an average, they spend more money. Most of them come to San Francisco and want to come to Vegas. They prefer to see more of tourist attractions; essentially, they explore more of the western United States.

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up in terms of National Parks with Great Basin National Park, Death Valley, and state parks like the Valley of Fire and Cathedral Gorge.”

He further added that they were constantly mustering, not just the urban landscape and the urban product, but also the transition to outer recreation, as well.

Some of the credit to its status as the Numero- Uno destination

must also be given to an array of matinee stars – who have through the years, lend incredible visibility and luster to Vegas.

Larry concurred to the notion, however, adding that Nevada had been smart and lucky, both. “Not only Las Vegas, but other parts of Nevada have been successful in, both, motion pictures and television shows. The truth is that whether it is motion pictures or television series, and if they want Vegas to be a part of the story line – there is no way to re-create it,” he said. “There is just one Vegas, period. At the same time, there is a Pyramid Lake – which was portrayed as the Red Sea. In another movie, the town of Eli was portrayed as the town of Mexico.

So, other places can pretend to be other places, but Las Vegas strip is one and only,” he stressed.

The USA has always been on the wish-list of the discerning Indian traveller, because of its ‘aspirational’ status. But, being a long-haul destination has been a major deterrent for many,simply because it requires larger spending and more travel time at hand.

But, Larry saw an opportunity in this phenomena, stating that it was one of the prime reasons why India was great for them.

Mark Hutchison Lt. Governor, Nevada

I am not really sure what will be the quantum of investment, but it goes without saying that India will be a priority for us. It was a consensus that we would have a sizable budget to be able to come into India. And, we expect that budget to grow.

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ed to travel internationally. “There are almost fifty-million passport holders here. It is the fastest growing economy in the industrialized “An Indian visitor, typically, stays longer in the USA; on an average, they spend more money. Most of them come to San Francisco and want to come to Vegas. They prefer to see more of tourist attractions; essentially, they explore more of the western United States,” he said. Adding that they have had considerable success with group itineraries that started in New York, and moved their way across the country to Las Vegas from Los Angeles, he told us that they had been able to have Reno and Lake Tahoe added to the itinerary that currently had San Francisco, L.A and Vegas.

“So, I see Indian travelers coming in for longer stay as a positive. Another advantage that we leverage is that we are next door to California that hosts over six hundred thousand Indians – who have moved there to work in the IT industry. So, almost every Indian has a family or relative in California,” he shared.

For Nevada, key markets remained Germany, France, the UK, Mexico, Australia and South Korea. However, as the European markets have been long- established for them, their considerable effort and investment into augmenting visibility in India is a move that makes sense.

world. Fifty percent of India’s population is under the age of thirty-five and wants to travel.

We know that the middle-class is growing exponentially, and more and more Indian travellers are seeking unique experiences,” he reasoned.

He pitched for Indian family travellers telling us that they knew family was very important for Indians. “Nevada is a great family destination. It is one of the safest destinations, and has a lot to offer to different age-groups making it a destination for all. We take the safety and security of our tourists very seriously,” he asserted. He also told us that Nevada had some of the finest shopping and culinary experiences to offer.

Nevada catered to around fifty-three thousand travellers in 2014,he said. He informed us that “although, we do not have details of 2015, we do know that the numbers have grown and that is one of the reasons why we are here.”

During the conversation, he revealed that the entire gamut of legislators, cutting across party lines, and members of the wider tourism fraternity were unequivocally supportive of the foray, and intended to invest substantial sums to boost their presence. He, however, did not divulge details, stating that “I am not really sure of the quantum of investment, but it goes without saying that India will be a priority for us. And, we expect that budget to grow through the years.”

He also seemed enthusiastic about exploring newer areas of bilateral connect. When asked whether he was up for partnering with Indian cities on the concept of ‘sister-cities’, he said that it was an appealing idea which he would explore in the future. Sharing that Nevada was keen on furthering student exchanges, he told us that “we partner UNLD (United Nations Literary Decade) – and cultural exchanges; anything that ties us deeper with India is welcome. We have expanded into China through student exchange; we had a student exchange program with them for years. What we need to do now is to do a better job in absorbing them into the US – our immigration laws are such that some of them might have to go back. So, it is a national level policy issue that we need to develop consensus on.” Nevada has roped in hotel administration and hospitality colleges, and wishes to promote student exchange as a policy of the state of Nevada, beginning with hospitality and, of course, tourism, noted the Lt. Governor.

“Our job is to bring as many tourists to Las Vegas as we can,” he concluded.

global exchange: south africa

26 With plenty of beaches, SA is a paradise for surfers

Tourists soak in the majestic view. Hot air-ballooning is a major adventure activity in South Africa

India is our biggest market in Asia; will continue to invest more here than in China Hoping to regain the lost steam owing to the visa mismanagement issue, Hanneli Slabber, Country Head, South Africa Tourism is betting big on the Indian outbound. She divulged that India remained a key market for creating more jobs back home, and thus SA was looking at profound investments into boosting its profile here. An excerpt of the interview: By shashank shekhar

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he Rainbow Nation is no stranger to India and vice-versa. A relationship that commenced with waves of Indian migrants heading to the southern tip of the African continent to work in mines, almost a century ago, has sustained and grown through the years. SA hosts a huge Indian Diaspora which becomes evident in the multiculturalism and fusion cuisines it offers. The bilateral relation that has a strong business connect – India and SA are members of multilateral groups like IBSA and BRICS – is also gaining in the leisure segment. As the South African Tourism brought a number of partners under one roof in a road-show aimed at showcasing its products in the top Indian markets, Hanneli Slabber, Country head hoped to regain the momentum after a temporary blip caused by the visa issue. “We lost out on a number of potential tourists because of the visa issue.

It was simply take too long to sort out the process,” she admitted.

“It is not a case of having more people in the Visa Immigration office, I might have more people

there but I also need acof the outreach, she noted that creditation from India. India one of the reasons that the is exploding in the internagovernment put money into tional arena, and everybody augmenting footfalls was for is sending more people here,” creating more jobs. “We are she reasoned. She argued that very clear about it. We spend every nation was establishmillions trying to work out ing more consulates in newer that how do we create more cities, so instead of a hundred, travellers; how must they stay now they had to cater to a longer? What is the tipping thousand people asking for point that creates more jobs? accreditation. “Now, we have We know the combination more people in more offices, that we require for travellers so we are confident that we that helps us create jobs back will be able to cater to larger home. It takes less Indian numbers of Indian outbound. travellers to create more jobs It will make a massive differthan the Chinese. So, we will ence to the destination. The spend more money in India slump in our numbers came than in China,” explained because we were simply not Hanneli. “For job creation, able to process what we were India is right at the top. Indians Hanneli slabber Country head, South africa Tourism getting,” she said. indulge in so many activities.

We spend millions trying to work out Elaborating what made the For instance, travellers from that how do we create more travelers; the USA or Europe might be tourism connect work well, how must they stay longer? What is she shared that there were just engaging into something in the tipping point that creates more so many elements that were the mornings and evenings, jobs? It takes less Indian travelers to create more jobs than the Chinese. interwoven into SA’s fabric – but I have not seen an Indian’s So, we will spend more money in India itinerary with time for leisure from constitution, food and than in China culture – that cemented the of the list,” she added. connect between the two Noting that an Indian nations. “In fact, one of the traveller was open to more biggest synergies is the food. experiences, she divulged that food in SA,” she said.

You will find non-Indians cooking “even from a product point of She told us that India was a some of the best Indian curries. view, they are open to experience stronger market for them than Everybody cooks and eats Indian China. Explaining the dynamics more. They might have a day

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on them, but they do make sure they make the most of it.” She said that almost forty percent of their business came from return travellers. “If we give them a taste of everything, when they come back they want to experience it again – in more detail. That is more than what we can ask for; when you get travellers who tell you that there is some much more to experience that I am coming back,” shared Hanneli, detailing why Indian outbound remained key to them.

Describing the product in further detail, we were told that the safari remained a top-draw from India. “We have a huge variety on offer. There are open-vehicles that take you up-close to the wild-life; people really like that. It is very easy to spot a Lion. Another facet that really surprises us is that Indian clientele are the biggest buyer of adventure after the South Africans,” Hanneli said. Sounding confident of crossing the hundred thousand mark this year, she told us that last year SA had catered to some eighty-six thousand Indian.

“We are confident to achieve the numbers – especially, now, the visa issue is sorted,” noted Hanelli.

Mediterranean bounties make Cape Town a unique draw; focus on creating a pull for corporate travellers, says Felicity

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ot many cities in the world have beaches that have different setting to be experienced, all in the same day; Cape Town, thanks to its unique topography, has some of the most scenic beaches in the world. Owing to its Mediterranean climate, beaches on the Atlantic coast have cold water, while water at the False Bay may be hotter by, as much as, ten degrees in comparison. But, thanks to these beaches, some of the most sought after tourist attractions like the Victoria & Alfred Waterfront and the Clifton beach have been long mesmerizing travellers from world-over.

Mediterranean climate of the city, also, brings with itself apt conditions for Viniculture; it is no surprise then that Cape Town’s tourism product is so much about wine and food. “It is arguably the food and wine capital of the world,” says Felicity. Besides, Cape Town has been a cosmopolitan city for a very long time. “We have wild-life and safari experience on

offer, as well. On the west coast, Thanks to these products, we have an ocean which adds to despite the rate of exchange and the experience of a traveller; in visa issues that impaired a lot fact, there is a confluence of two of inbound into South Africa, oceans. You can go fishing or sim- and into Cape Town, it catered ply bask in the sun,” she told us. to almost nine and half million It also happens to be a paradise tourists in 2015. She, now, aims for cycling enthusiasts. There is at expanding the city’s visibility ample cycling opportunity where a traveller can paddle his way through a stream of vineyards, tasting the best of wines that Cape Town has on offer. She told us that cycling vineyard tour had been steadily gaining tracking. “We have dedicated cycling lanes that were put in place during the FIFA World Cup in 2010.

A number of vineyards make We want to have at least a Cape Town a treat for experiencing plethora of wines hundred thousand cyclists by the next five years,” she elaborated on the city’s plan to in India. “Why we think we need augment a growing draw. “Cape to engage with the Indian market Town, incidentally, is the host to is that we have almost all the inthe Cape Argus Cycle Tour – the gredients that could attract them. world’s largest individually timed We have a fantastic night-life cycling competition,” she added. which will create a pull for young

Felicity Poggenpoel International marketing, cape town & Western cape

It is arguably the food and wine capital of the world. On the west coast, we have an ocean which adds to the experience of a traveller. You can go fishing or bask in the sun.

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Indians; we have world-class shopping experience on offer with a large number of shopping malls. We have safari experience to offer – so these are our key products that work well for us

in the Indian market,” detailed Felicity.

Given the offerings of Cape Town, its focus on attracting the leisure segment makes sense.

Felicity explained that each market had its own strengths and drawbacks, and there could not be unanimity in the approach. “So, we have to make tailor-made solutions and offerings for each one of them,” she said. She told us that constant insight into the demand of the market had a say in how Cape Town was going to continue positioning its tourism product.

Elaborating on their modusoperandi in India, she noted that they had a number of incentives that had been meticulously designed to attract the MICE and corporate clientele. “But, the actual rise in footfalls, from the leisure segment, will happen when more corporate travellers visit us from India; they act as ambassadors, there is nothing like a ‘word-of-mouth’ publicity.

So, it’s a two-way process,” she concluded.

global exchange: south africa

27

Jo’burg aiming at a tweak of its product with a sharp focus on the leisure segment Swanky malls, high-rise steel and glass buildings and a thriving corporate culture aside, Jo’burg is also one of the biggest shopping destinations in Africa. Now, it is planning on tweaking its product, training its sight at the leisure segment, says Nabintu Petsana.

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ohannesburg – thanks to its thriving diamond and gold trade – has long been South Africa’s richest city, and often referred to as an ‘economic powerhouse’. But, besides swanky skyscrapers and dominant corporate presence, it is also a melting pot of different ethnicities and cultures. It has through the years acquired the character of a true cosmopolitan.

What makes it different, though, from many other such cities across the globe, is that it has ample for art and culture concessioners to soak into. There are as many as ten superbly maintained museums in the city; an apartheid museum located on the grounds of the Gold Reef City gives an amazing insight into the history and evolution of apartheid attracting tourists – history buff or not.

There are museums dedicated to transport, art, military and Beer!

The cradle of humankind is a UNESCO World Heritage Site where you get to see world’s oldest human fossil find dating back to 2.3 million years, besides containing a complex of limestone caves. There is a cultural village which showcases distinctness of the eleven tribes that makes South Africa a nation.

No wonder why Nabintu Petsana stressed that what made

nabintu petsana unit head, city of johannesburg, joburg tourism

Originally a power station, Orlando Towers is one of the most distinguished landmarks in Soweto Johannesburg different from its sister cities was art and heritage.

“We are the home of Nelson Mandela. He lived, worked and died in Johannesburg. So, we have Nelson Mandela footsteps; we encourage all visitors to experience it. There is a Constitution Hill in Braamfontein – it is a very rich place to understand the politics and struggle for liberation for people of SA,” she detailed.

Besides, history there is a lot of shopping on offer. It is a destination of fashion, big brands and malls; in the entire Arica, it is the number one shopping destination, she shared.

One of the outcomes of being a

cosmopolitan city is having a rich dose of culinary experiences. “You find a lot of world-class restaurants serving the best of global palate.

Whether you are looking for Thai, African or Continental cuisines, you will find them all in Jo’burg.

All of the world’s major hospitality brands have a presence in the city.

We also pride ourselves of being one of the most affordable cities in the world,” said Nabintu.

The city has some of the best infrastructure in place. It boasts of having the first high-speed train in Africa – the Gautrain – which takes you to major arteries of the city in matter of fifteen minutes, from the airport. “Introduced

We are the home of Nelson Mandela. He lived and died here. There is a Constitution Hill in Braamfontein – it is a rich place to understand the struggle for liberation for people of SA.

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in the last couple of years, our city buses have dedicated lanes that save visitors from traffic.

We are rapidly expanding the infrastructure to cover other parts of the city as well. We have Uber service; also, the global brand of the ‘hop-on hop-off’ bus; essentially, all the components of a major global city are present here,” she shared, stressing that Johannesburg was not a stopover destination. Thanks to its megacity character, it is big in the MICE and corporate segment, as well. “We are the biggest centre for meetings, conventions and corporate gatherings in Africa,” Nabintu told us.

Durban capitalizing on Indian connect; seeks to enhance MICE and corporate footfalls Durban is a heady mix of sun, sand, cuisines and wild-life. Its historical linkages with India is an added advantage in its quest for cementing its position as a premier leisure getaway in the Indian market, says Thulani Zungu, Manager: Regional Marketing Asia & Americas (Durban Tourism).

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urban and India are no strangers to each other. For Mahatma Gandhi started off a as a young lawyer in Natal almost a century ago, while the city of Durban, itself, is colloquially called the ‘biggest Indian city’ outside of India. It is reflected by a heady mix of culture and cuisines; its signature dish Bunny chow is ubiquitous – it is a quintessential element to city’s overall tourism offerings. There may be difference of opinion on its origin and transition into its current form, but what no one will contest is that it is one of the many outcomes of an amalgamation of Indian and African culture and heritage.

Durban is the largest city in the South African province of KwaZulu-Natal, extremely rich in cultural context. Reflecting on the vastness of its offerings and century old connection with India, Thulani Zungu said that “We call it a ‘country’ in the province. The historical linkages between India and Durban are cemented by age old relations. Its cuisines are greatly influenced by the Indian Diaspora.”

In terms of its offerings which are aplenty, its sun soaked beaches take the cake. The highlight of the city is, of course,

thulani zungu Manager, Regional marketing asia & Americas, durban tourism

Inkosi Albert Luthuli International Convention Centre is a major centre for corporate events the world famed Golden Mile – a popular beachfront – which hosts a promenade stretching from the Addington Beach, a stone throw away from the Durban harbour in the north to the Vetch's Pier in the south – famous for its abundant snorkeling activity. “There are burger joints, coffee shops and hotels that have excellent accommodation facility on offer. The city has invested a substantial sum to improve facilities,” said Thulani. Adding that one could go for long walks, cycling and jogging, he shared that the subtropical climate made it an ideal getaway. “It is neither too hot, nor too cold. The sea is very swimma-

ble,” he told us.

Besides, offering the experience of a beach city, it is also in proximity to a plethora of wildlife. Tala Game Reserve, Tula Tula Game Reserve and Giants Castle Reserve are located at a drivable distance from the city. “You can be in a wild-life resort in a matter of hours. Giants Castle Reserve is one of the oldest reserves in the world,” he explained. Adding that the city boasted of two World Heritage Sites, he noted “iSimangaliso Wetland Park – which is located along the Elephant Coast in Zululand – is known for bird watching, whale-viewing and scuba diving. So, there are ample

There are burger joints, coffee shops and hotels that have excellent accommodation facility on offer. The city has invested a substantial sum to improve facilities.

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elements that create a vibrant tourism experience for our visitors.”

It is a fact that not only Durban, but entire South Africa gets a large number of European travellers, followed by the USA. But, there have some change in the recent past, shared Thulani.

“We are receiving maximum influx from the USA especially in the last three-four years. Europe, however, is coming back strong,” he elaborated. Giving us an understanding of the Indian market, he said that it was, indeed, a key market for them. He attributed it to a massive number of Indian expats which got them a fair share

The continent of Africa is the biggest market, and source of inbound for the city. “Our continental market is the biggest; tourists come from all over Africa, mainly to shop,” she added. Calling the Indian market an important one, she shared that any drop in numbers from India worried them. “We have a strong linkage with India, and it constantly features in our top five priority markets.”

Commenting on the Chinese market, she noted that it remained a very important market to them.

“The Chinese market is distinctive from the Indian in the fact that unlike Indians who come as FITs and in small groups, Chinese travelers come in big groups. The economic slowdown is causing a drop in numbers, but we are hopeful that it will be a momentary downturn,” she explained.

Sharing that the aim, through this push, was to create awareness about Jo’burg as a destination, as many tourists coming in treated it as stop-over, she said “the most important thing is to let travellers know that there are a lot of things to do in the city – beyond just taking a connecting flight.”

Elaborating their future course of action, she told us that they planned to establish joint marketing agreements for targeting top markets. “At the moment, apart from the South African Tourism Board, we do not have any body pushing our presence. We want to identify and appoint people and bodies that can drive information about Johannesburg. The idea is to tweak the thought-process and establish Jo’burg as a leisure destination,” she said. families and relatives taking a trip, sometimes, more than once in a year. “Most of the visitors come for the wild-life and safari experience,” he added.

Taking a stock of the Asian markets, he said that despite their investments into increasing their outreach, they had witnessed a decline in the inbound from China. Attributing the fall to the recent visa issue in the country, he, however, hoped that things would improve as solutions had been put in place. “China is a market that turns very quickly.

So, we are hoping that this year we will see an improvement in footfalls,” he reasoned.

Referring to Durban’s proximity to Johannesburg compared to Cape Town, he said that not many people were aware of the fact that it was only fourty-five minutes flight away, whereas Cape Town was a two hours flight. Sharing that a number of airliners now connected Durban, boosting its air-connectivity, he said “New flights linking Durban have been unveiled recently. Qatar Airways, Turkish Airlines and Ethiopian Airlines fly into Durban now, besides Emirates Airlines.”

He told us that, through this foray and in months ahead, Durban intended to woo leisure travelers from Indian shores. “It is a top-notch leisure destination, and we want more Indians coming there. Honeymooners are another segment which we want to target. Of course, it will benefit us in targeting MICE and corporate travelers as the ‘word of mouth’ spreads farther,” he concluded.

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niche : cruises

Inadequate services at ports; augment infra to compete, says Monarch Cruise CEO As Monarch Cruise unveiled a never before concoction of Bollywood and cricket to luxury cruising experience, we caught up with the CEO to understand the product and wider issues that are hindering India’s march in boosting cruise industry.

Excerpt of the interview: By shashank shekhar

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ndia is gearing up to host a Maritime India Summit in the coming April. This attempt underlines government’s desire to leverage the hugely untapped potential of nation’s vast coastline which could jettison India’s position as a serious player in the arena of cruising industry. According to various media reports, the Summit – which will be partnered with the Government of South Korea – will showcase over two hundred projects, estimated to be in tune of six billion USD. There is a reason for this sense of urgency. India’s port infrastructure is in a state of shambles.

We have barely hosted international players – who despite their knowledge of India’s potential, as a market, have shied away owing to shoddy infrastructure. Smaller

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countries have better port infrastructure in place. Then there are a number of hurdles, still. Lengthy paperwork, bad consumer experience, and far too many security regulations have added to the problems of cruise players. Somesh Jagga, CEO, Monarch Cruise said that India remained a tough place for any operator. “Mumbai is often on high-alert and getting people off the ship and the port is a massive task. You have to live with it, and as an operator you cannot do much about it; we try to give a good experience to the consumer,” he stated.

He pointed towards the scale of difference in the state of infrastructure between India and some of the countries that had been successful in creating a thriving cruise industry. “Our close neighbours, Hong Kong and Singapore have world-class facilities. For a cruise liner, positive customer

waiting for formalities to be taken care of, and exiting through one crowded gate. So, it is issues like these that are holding us back, more than anything,” he said. “Luckily, we have the Star cruise Virgo which will be taken as a shell and turned around into Monarch cruise. They are managing the port-permission and other clearances, but, all of our paper formalities are done and sorted,” he further added.

Adding that there had been attempts by international operators to come to Mumbai, but Somesh Jagga CEO, Monarch Cruise they could not bring their vessels to these ports; We have created some world-class airports; why can’t we have some he said “it is not only international standard ports? The focus vessels, but the experimust be given to the infrastructural upliftment of ports, and we, as a nation, ence of disembarkation and embarkation for deserve excellent cruising industry. passengers that can be terrible.” He agreed that all of it remained a huge experience is paramount. No pas- challenge, and opined that this was where the government had senger wants to get queued up in to step in. “We have created some a line of five hundred passengers

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We wish to create experiences by merging cricket and Bollywood to top-notch cruising facility

ndia, as a nation, has diversity like no other. This is often reflected in the multitude of opinions that surround our daily discourses. But, very few many disagree on the fact that the glue which binds India together is cricket and Bollywood. If you bring them together with a seven-star luxury and ambience floating on the high seas, you have sure-shot recipe to success. Monarch Cruise has done just that by unveiling a never-before cruising experience for patrons, Indians and international. A doze of Bollywood and cricket, scintillating musical performances and gourmet cuisines await passengers – coming 2017.

Somesh Jagga shared that apart from being India’s first cruise liner, it

was world’s first cricket and Bollywood cruise. “So, the idea is to put luxury cruising experience and merge it with experiences like being with celebrities, cricketers – getting entertained by them; being hosted by best of chefs. We do not call it a product; it is an experience that we wish to cater,” he substantiated. As a passenger, one would get a chance to be with twenty top legends of the cricketing world. Celebrities like Rahat Fateh Ali Khan, Neha Kakkar, Vir Das and Neha Dhupia had already agreed to be a part of this voyage, we were told. “As we continue to head towards the actual date of launch, we will continue to add more names to the list of celebrities,” shared the CEO. The company has appointed non-other than the ‘God of cricket’ Sachin Tendulkar as the brand ambassador, besides roping in cricketing legends like Brett Lee and Shane Warne. The CEO told us

that travellers were also going to get a chance to rub shoulders with the likes of Kumar Sangakkara, Brendon McCullum, Graeme Smith and Jack Kallis – all top international players. “So, the idea was to identify the two biggest interests of Indian community. Generally, a cruise experience does have buffets and restaurants; this time we have with us celebrated chefs like Sanjeev Kapoor, Vineet Bhatia, and other Michelin starred chefs to design the entire culinary experience.

You can even choose to have dinner with your star,” said Somesh Jagga. We were informed that one could choose to have a dinner with Brett Lee; face Shane Warne in the nets while one was being filmed to be gifted a souvenir series.

Besides the on-board spoils, it was going to be full of experiences, told the CEO. “You have events like a massive concert next to the sea in Sri Lanka; a red-carpet party in Singapore and a turn-around party in Mumbai. So, all of it is the part of the itinerary,” he detailed.

The ship would sail from Singapore to Kuala Lumpur via Phuket, then to Colombo and, finally, to Mumbai via Kochi. It is going to turn around, disembarking passengers and taking the fresh lot from Mumbai to Singapore through the same route.

Somesh told us that the company had designed an itinerary for thirteen days, but passengers would also get the chance to opt for a seven day trip – which would head to Singapore via Colombo and back. “We want to give an option to those passengers who do not have the time for a thirteen day trip,” he said.

The ship is expected to host about twenty-two hundred passengers, because the company wants to maintain a very high staff to passenger ratio. The CEO also shared that it was a one-off theme cruise, “the next cruise we roll-out will feature a completely different theme. So, we want to maintain our exclusivity; we do not want to get into a monotony in creating experiences,” he stressed.

world-class airports; why can’t we have some international standard ports? The focus must be given to the infrastructural upliftment of ports, and we, as a nation, deserve excellent cruising industry,” he vehemently argued.

He also stressed that more than the lack of infra; it was the sheer lack of service at the port that was haunting the industry and consumers, alike. He, however, showed tremendous faith in PM’s vision, stating that they had been watching him take extra-ordinary steps for the tourism industry and improving bilateral relations with other nations. “We are very confident that even if it is not in place right now, it will happen.

Apart from that I can share my experience that we met Chairman of Port Authorities Ravi Parmar, we got to know that he has already committed a sum of seventy-five crores only for the development of Mumbai port,” he informed us.

Given the current state of affairs, it may well be difficult for the company to create the desired consumer experience. The Monarch Cruise has, however, left no stones unturned. “We have taken up the challenge and put our foot in the door. What we are trying to do is to create the ambience on the port. So, we will be almost turning around the port on that particular day. We are putting in place standing AC’s and extra scanning machines, to ensuring adequate entertainment,” the CEO told us.

The company has also requested for special permission for additional deployment of CISF personnel to expedite security and passport control. “We will create an event on the port that day, so that passengers who are embarking get all the world-class facilities that a port has to offer,” Somesh said.

Despite the evidence to the contrary, the business of cruising has picked up in India, in the last decade, said Somesh. “We, as a nation, average to about two hundred and fifty thousand passengers. If I only share the statistics of the last half a decade, almost 1.2 million passengers have experienced cruising. Twenty-eight percent of travellers have chosen it as their honeymoon trips, so it has good traction among youngsters,” noted the CEO, giving an insight into fast changing consumer profile. “The outlook towards cruising has changed dramatically, as Indians have experienced cruising in other parts of the world; Bollywood, with movies like ‘Dil Dhadakne Do’, based around cruising, too, has tremendously increased the appetite for experiencing cruises,” he concluded.

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new launch

The Park plans big-ticket push for Zone brand; targets 20 units by 2020 By ritwik sinha

F

or The Park’s mid-segment baby (Zone brand) which had taken its first step in Coimbatore 14 months ago, it’s probably time now to acquire a spring in the step. As per the management plan, the brand is all set to get a big-ticket push with a robust openings pipeline scheduled for the next four years. Zone presently has three units in the country – apart from Coimbatore, it has positioned itself in Jaipur and Chennai markets - and by the end of this year, it will have five new launches reflective of The Park’s management ambition of making this brand grow big in the near to medium run.

“It is a design conscious, price conscious brand created with the designing essence of The Park which we want to take to tier II and tier III cities. We recognise the fact that there is a whole aspirational need in these markets - people want hotels with great

restaurants and proper banqueting facility where they can hold their events. The way this brand has grown, we are looking at 20 units of Zone by The Park becoming operational in the country by 2020,” said Priya Paul, Chairperson of Appejay Surrendra Park Hotels at a private function in Delhi recently.

Later speaking to TourismFirst, Santosh Kutty, General Manager (Operations & Development), Zone by The Park shared the details of the precise rollout plan of Zone’s new units. “Five new units are scheduled to be unveiled this year - Raipur, Mahabalipuram, Bhubaneshwar, Jodhpur, and Electronic City, Bangalore. Our

fourth opening could either be Bhubaneshwar or Electronic City, Bangalore in May. And the remaining four will become operational before the end of the year,” informed Kutty. In terms of capacity, while Jodhpur will be a 90 keys hotel; Electronic City, Bangalore and Raipur will have 72 rooms each.

Bhubaneshwar too will be a 70 plus room unit but the Mahabalipuram unit will have a smaller inventory of 42 rooms.

According to Kutty, about 13 management conpriya paul Chairperson, Appejay Surrendra Park Hotels tracts have already been signed up for the brand We recognise the fact that there is a whole aspirational need in these and apart from the five markets - people want hotels with great openings slated for 2016, restaurants and proper banqueting some of the other units in facility where they can hold their events. The way this brand has grown, the medium run pipeline we are looking at 20 units of Zone by include Goa, Puducherry, The Park becoming operational in the Igatpuri, one more unit in country by 2020.

Chennai and Sindhudurg.

The brand clearly tends to carve its niche in the country’s fastest growing mid-segment hospitality space where competition is increasingly becoming cut-throat. “Given our profile and offerings, we are competing with Aloft, a few properties of Fortune which are in the higher rank, and higher end properties of Sarovar,” Kutty observed. He was, however, quick to point out that in offering terms, the brand has its own set of differentials which will help it have it its own distinctive identity. “Our basic philosophy is to create a buzzing hang out place and we will do anything for that. There would be multi-pricing meal options, and elements of vibrant nightlife in santosh kutty these units.

GM (Operations & Devellopment) Zone by The Park We are using Our basic philosophy is to technology create a buzzing hang out place in a huge and we will do anything for that. manner.

There would be multi-pricing Wi-Fi will be meal options, and elements of vibrant nightlife in these given free to units. We are using technology even nonin a huge manner. Wi-Fi will residents.” be given free to even nonresidents.

He further buttressed this point by pointing out the difference in management approach of Zone properties. “We don’t want to make our hotels room centric. We want 50-55 percent of our business to come from F & B and other offerings.

For instance, there is no point in over-pricing the mini bars. If the retailer is selling it to us at x price, we will sell it at x plus a small margin. And we will have similar pricing strategy for other services like the laundry and spa,” explained he.

According to Kutty, the response to Zone’s debut properties has been quite encouraging and the brand is expected to firmly establish itself in the Indian market sooner than it usually takes. “In Chennai which was opened four months ago, the occupancy rate has been to the tune of 80 percent. In both Coimbatore and Jaipur units, it is in the 70 percent plus trajectory. We are catering to both business and leisure segments, though the ratio of business travellers in our Coimbatore and Chennai units is quite overwhelming at this stage.

Statistically, we have made a sound beginning,” he underlined.

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30

Jaisalmer Calling

This February, Jaisalmer once again comes alive at the annual Desert Festival. The festival, over the years, is the definitive one-stop to take a deep dive into the colours, the sounds, the smells, the sights, the glory and that unadulterated bliss that is Rajasthan. The Jaisalmer Desert Festival returns with a myriad of local and timetested traditional renditions and soulful melodies in an extravagant celebration of Rajasthan, well known for its art and culture. Romantic, remote and unspoiled, the festival is set to the backdrop of the majestic city’s forts, the Gadisar Lake and then the beautiful dunes of the Thar Desert.

The Festival, spread across three days, is a colourful manifestation of the art, music and culture of Rajasthan with a strong message of revival of local arts and folk music together with women empowerment. True to its legacy this year too the Jaisalmer Desert Festival coincides with the Magh Pournima (full moon day of the Hindu month of Magh that essentially falls in February), as it runs between 20th to the 22nd of February, 2016.

S T AY 4 PAY 3 Valid for travel from now to 17 December 2016

TO MAKE A RESERVATION, PLEASE CONTACT YOUR PREFERRED TRAVEL PROFESSIONAL OR VISIT

oneandonlycapetown.com *All rates include breakfast at Reuben’s, taxes, but do not include a ZAR40.00 Tourism Levy per room/per night. Free 4th night is calculated as an average 25% off daily rate. The above promotion is subject to a minimum length of stay of four nights. The Promotion is applicable to new bookings only. This offer is not combinable with any other offer. Valid for all room types. Child policy applies as per existing contract.

Standard cancellation and «No Show» policies shall apply to the Promotion. All other terms and conditions of the standard room use agreements are incorporated by reference and apply to the Promotion.

Promotion is subject to availability at the time of reservation and the rate code SAVE25 must be quoted at time of reservation. This offer is not applicable to group bookings (10 rooms or more).