Tourismfirst january issue by Cross Section Media Pvt. Ltd.

demonetisation THE AFTER EFFECTS: INDUSTRY RESPONDS (pg. 24-26) No.U(NDGPO)-01/2016-2017 Date of Publication: 14/01/2017 RNI No. DELENG/2015/62794 Posting Dt. 12-17/01/2017 Postal Reg. No. DL(ND)-11/6180/2015-16-17

Volume 2. Issue 9. January 2017. `50 Total pages 32

bringing together stakeholders of the bigger picture

Industry reacts strongly to Air India’s negative rating; backs steady improvement

Legacy issues, including the merger of Air India and Indian Airlines, remain difficult to resolve. It has, in the face of stiff competition, both domestically and also internationally, done well. An international agency recently called it the third worst airline globally, a distinction totally motivated and uncalled for. Most people who have flown AI recently are all in praise for its excellent service and brand new planes. If this was not the case, then AI would not have made operating profits of over 100 cr.

Subhash Goyal

Chairman, Stic Travels

here is widespread appreciation among industry and consumers that services on Air India have improved considerably in the last one year. It’s a notable turnaround from where it was, not an easy task, considering how badly the airline had run into all round losses and despair. There are numerous legacy issues, but with the oil prices on its side, and a determined new team, it has strategically weathered the rough storms. Therefore, it was shocking to read how the national carrier had been singled out as the third worst airline in the world! Surely, it had been sour grapes somewhere, for the airline to be meted out this dubious distinction, most uncalled for. Speaking to TF, industry insiders have called the report an exaggeration.

Ashwini Kakkar

There is certainly some room for improvement in on-time performance, profitability, communications etc. but with Lohani at the helm, it is making strides in the right direction.

Executive VC, Mercury Travels

Subhash Goyal, Chairman, STIC Travel called Air India a “fast changing entity” which was coming back to its original glory “and if this momentum is kept, I am sure under the able leadership of Ashwani Lohani, it could become one of the best airlines in the world,” he said. He added that the taste of any pudding was in its eating, stating that most people that he had come across, who had flown Air India recently, were all “in praise for the service and its brand-new planes.” “If this was not the case, then Air India & Air India Express would not have made operating profits of over hundred crores,” he argued. Suggesting a way forward, Subhash Goyal noted that “perhaps if the management of the airline is given more autonomous control on marketing and operations, Air

Vibrant Gujarat Summit 2017 pushes the tourism agenda

Ashwani Lohani CMD, Air India

Several other agreements have been signed, raising hopes of larger investments in infrastructural development around tourism products. The Summit has been successful in bringing the spotlight back on the state with the world media covering the proceedings and delegates attending in large numbers. Overall investments provide the much needed trigger for all that is tourism.

India will definitely be amongst the ten top most airlines of the world.” While Kapil Kaul, CEO and Director, CAPA – South Asia believed that the FlightStats data on Air India’s on-time performance was “an exaggeration and did not corroborate with DGCA data for ex-India flights…….(he argued) for an aggressive expansion plan in place, with focus on fundamentals like on-time and schedule integrity is key to recovery,” he said. He added “Air India needs a new business plan which is fully capitalised as market conditions from FY 18 will be very challenging.” Ashwini Kakkar, Executive Vice Chairman and Director, Mercury Travels said that, over the last couple of years, Air India had made steady progress in its endeavours, beginning with the

TourismFirst to bring onsite Daily at Phocuswright Fast Track

ibrant Gujarat Summit 2017 has come as a shot in the arm for tourism and hospitality industry in the state. In this biennial excercise, a number of MoUs have been inked related to travel and tourism, including a 550-crore agreement for development of religious tourism in the state by creating integrated divine ark infrastructure, connecting all pilgrimage locations through helicopter connectivity.

We totally disagree with the report published by FlightStats about AI. Initially, it seems that the report is fabricated so AI managment will investigate the report till the end.

eading US-based travel and technology research firm, Phocuswright will be holding its second edition of Fast Track, the prestigious conference from Feb. 28 – March 2, 2017 in Gurugram. TourismFirst will be the official onsite newspaper for the conference, exclusively covering the proceedings. This year’s edition is of special significance to an Indian audience, as it would highlight trends in Asia Pacific region.

Kapil Kaul

FlightStats data on AI’s on-time performance is an exaggeration and does not corroborate with DGCA data for exIndia flight.An aggressive expansion plan with focus on fundamentals is key to recovery.

CEO & Director, CAPA-South asia

process of completing all the checks and formalities and becoming a full-fledged member of Star Alliance. “They have embarked on a substantial fleet renewal and enhancement program including the induction of Dreamliners. The in-flight service, which was “Dil Se” continues in the same vein and the airline continues to add direct connectivity to new global destinations and to introduce new interesting schemes which benefit the customer,” he said. He further noted that “there is certainly some room for improvement in on-time performance, profitability, communications etc. but with Lohani at the helm, it is making strides in the right direction.” Air India may still have miles to go, but given determination, specially from its large work force, could get there.

inside

Global hospitality conclave 2017

Industry stakeholders examine challenges ahead

Hotels + Resorts

Rohit Khattar: cinema and food, biggest global ambassadors, remain unexploited

Hotels + Resorts

Roseate Hotels: Set to become the new luxury benchmark in Indian hospitality

announcing india’s most innovative tourism event, the first ever india tourism summit

24th March, 2017. New Delhi presenting the big picture

india tourism summit 2017 24th march

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this issue : January, 2017

Taking potshots appears easy on things Indian? Air India on one side, and Amazon, on the other

n yet another brazen display of dubious intent, online e-commerce giant, Amazon was found selling doormats with the Indian flag imprinted on it, on its Canadian website. The doormats were, of course, taken down from the website by the company after the Union Minster of External Affairs Sushma Swaraj took to twitter, threatening to revoke visas issued to Amazon’s employees, apart from banning their future jaunts. In another response, Economic Affairs Secretary, Shakti Kanta Das, tweeted asking Amazon not to be flippant in its approach to Indian icons and symbols. This had reference to flip-flops with images of Mahatma Gandhi on sale appearing on their website. This is one of the many incidents that have shown a complete lack of respect, bordering on contempt, for India by some of the western countries and organisations. What is puzzling is that why does the Indian flag get signalled out? And, why not flags of western countries, or China, or the Union Jack perhaps? There have been numerable instances where clothing, and even under garments in some instances, with Hindu deities imprinted on them have been put up on sale. The question that begs an answer is that do we as a nation deserve such a treatment? And, what should be our response? At home, too, public sector organisations have been seen as sitting ducks, ideal for the media to take potshots at. Perhaps, it was the lurking fear of being portrayed in bad light was the reason why, not too long ago, public sector organisations were mindful more of managing the environment and PR while the private sector focussed more on the sales side of business. As an extension of this anomaly, somewhere, India has also tended to be a sitting duck for the international media and agencies, compared to many other countries. Films, too, have often excelled only on the basis of portraying the so called reality of India, focussing on poverty and social issues. The fact that a data research firm, FlightStats has judged Air India as the third worst airline in the world, and our sources tell us that when Air India approached this agency as to why and how it was awarded this dubious distinction, their answer was that they had got their data from elsewhere, and it was not their findings. It is simply a shoot-andscoot approach. It is not only a question of industry solidarity, but national solidarity that we should refuse to be seen as sitting ducks. India is not a country that anybody could take potshots at, and get away with. So, we believe that Air India’s response, that we have gathered, was extremely well put, completely in order and, we as a nation must strongly condemn such malicious attempts to presume that we would take whatever comes our way. The India of 2017, and the years ahead, is not going to tolerate such brazen attempts to undermine and malign its image for no obvious reasons.

Contents Aviation 4. CAPA: Domestic market set to grow, bilaterals hinder international traffic 5. Air India will add 100 more aircrafts by 2020; regional connectivity top agenda

CROSS Currents: MoT initiatives 6. MoT: Secretary Zutshi reiterates core objectives, the road ahead for 2017

CROSS Currents: MICE 7. MICE: Beyond tourism, it has implications for talent and human development

Global hospitality Conclave 2017 8. Industry stakeholders examine challenges ahead at Global Hospitality Conclave 2017; approaches, HR and technology come under scanner 10. Stronger revenue management, technological inputs needed to ‘up the game’

12. Straight from the heart: Patu Keswani

hotels + resorts 14. Rohit Khattar: cinema and food, biggest global ambassadors, remain unexploited 15. Roseate Hotels: Set to become the new luxury benchmark in Indian hospitality

16. Bekal gets a connectivity boost; Jet Airways to fly daily from Delhi to Mangalore 17. Louvre Hotels Group acquires majority stake in Sarovar Hotels, expands portfolio

Nitin Gadkari

Union Minister of Road Transport and Highways On constructing roads in Arunachal Pradesh

All road projects in the state worth ` 50,000 crore will be completed before the government at the Centre completes its first five-year term.

Nitish Kumar

CM, Bihar On eco-tourism in Valmikinagar Tiger Reserve We want to develop and promote eco-tourism facilities at VTR so that local tribes and other traditional forest dwellers could earn their livelihood.

Aditya Ghosh

President and Whole-time director, IndiGo Talking to ET on the future of aviation in India I do not know about what the next 10 years will show but certainly this country and the potential of this country has surprised all and in a good way.

Air India

In its press release on being judged the third worst airline by FlightStats

We totally disagree with the report published by FlightStats about AI. Initially it seems that the report is fabricated so AI managment will investigate the report till the end.

online: Phocuswright 18. Increased fundings intensify competition; mobile driving penetration of OTAs

Cities and States 20. Kerala: Plans to market Kochi Biennale globally; Australia, East Asia on the radar 21. GTDC eyeing to develop coastal circuits under Swadesh Darshan, says Nikhil Desai 22. Aggressive marketing needed to leverage ‘Incredible India’ campaign: TAAI President

V. Jayarami Reddy, APTDC, Chairman

On the envisaged tourism policy The entire policy was designed after a detailed study, including the facilities and incentives for potential investors. We hope to comprehensively develop the sector and reach new heights.

Outbound 24. Demonetisation: The after effects: industry responds 28. Abu Dhabi: Connectivity and luxury hotels aid in its foray to attract wedding outbound 29. New York: 2016 is another record year as the city continues its tourism effort holistically 30. Growing demand for organic food and wellness retreats driving Agritourism

Navin Berry navin.berry@bitb.org senior writer: Shashank Shekhar shashank@tourismfirst.org features editor: Priyaanka Berry priyaanka.berry@bitb.org business development: Saurabh Shukla saurabh.shukla@bitb.org editor:

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

aviation

CAPA: Domestic market set to grow, bilaterals hinder international traffic

India’s status as the fastest growing aviation market in the world creates tremendous opportunities. But risks are also heightened as the inadequacy of India’s infrastructure, an emerging shortage of skills, flawed policy initiatives, and weak regulatory oversight threaten to become major stumbling blocks, reads the latest CAPA Report. Excerpts:

ndia’s airlines posted a combined profit of USD122 million in FY2016, returning to the black at an industry level after 10 years

Last year represented a turnaround in the fortunes of India’s aviation industry after several very difficult years. Lower fuel prices combined with modest capacity growth and strengthening economic fundamentals were largely responsible for surging traffic and an improvement in airline financials in FY2016. Domestic traffic was up 21.2% while international grew by a more modest 7.7%. CAPA estimates that India’s airlines reported a combined profit of USD122 million in FY2016, the first time in a decade. This included record profits at IndiGo, Jet Airways, SpiceJet, GoAir and Air India Express. AirAsia India and Vistara, still in their initial years of operations, were however loss-making, as was the national carrier, Air India. Although Air India reported its first operating profit in a decade.

India’s domestic market is on track to surpass 100 million passengers in FY2017, as forecast by CAPA in Feb-2016

After a strong FY2016, traffic growth has accelerated further in FY2017, with India likely to overtake Japan this year to become the world’s third largest domestic market behind the USA and China. In reaching this milestone, India will have achieved average domestic traffic growth of over 15% per annum since the liberalisation of the sector commenced in FY2004. Strong economic fundamentals have contributed to the growth – although traffic has been over- stimulated by low fares. India is expected to achieve 7.5% GDP growth in FY2017, with the IMF projecting that economic performance should improve still further over the next five years.

that there is no visible impact as of yet. However, the purchase of air travel using some withdrawn denominations was permitted until the first half of Dec-2016 which may result in a delayed impact in the first half of FY2018. As of now, it is difficult to fully factor in what the impact may be, if any. Based on aircraft deliveries, competitive dynamics and the positive outlook for the economy, growth above 20% could continue for up to a further two years.

Indian carriers are scheduled to induct 60-65 narrow bodies and 10-12 regional aircraft in FY2018

The pace of aircraft inductions in FY2018 will be one of the key drivers of traffic growth. This is however subject to deliveries of A320neos proceeding as scheduled, and operators being able to deploy the equipment as planned, as some operational challenges have been experienced.

LCC are likely to have a domestic market share of 75-80% within two years

With LCCs taking delivery of the clear majority of narrow body aircraft coming into the market (an estimated 50 out of 65 inductions), their share of the domestic market is expected to rise from around 65% today to reach 75-80% within two years. The last time that LCCs had a similar market position was in early 2011 when their share stood at over 70%. However, on that occasion it was as a result of a blurred demarca-

challenges could start emerging on ultra-long haul routes starting from FY2018.

Air India has been increasing its European and North American network, launching new non-stop services from Delhi to Vienna, San Francisco and Madrid over the last 12 months and a one-stop between Ahmedabad and Newark via London. New destinations under consideration for next year include Washington, Toronto, Nairobi, Tel Aviv, Copenhagen and Stockholm. But CAPA believes that the viability of ultralong haul routes could increasingly be challenged due to cost creep and a possible softening of yields.

The Indian government may agree to only modest incremental expansion in seats than what is being sought by several countries like UAE, Turkey, Hong Kong and Singapore. tion between the full service and low cost operations of Jet Airways and Kingfisher. Airline business models in the market are better defined today and LCCs will have a clearly dominant position.

International traffic is expected to expand at 10-12% in FY2017 and FY2018, but growth remains well below its true potential because of bilateral restrictions.

However, the ramifications of the Indian government’s demonetisation initiative announced in Nov-2016 (which resulted in the withdrawal and replacement of around 86% of the value of currency in circulation, to reduce the volume of undeclared cash in the economy) are still unclear, although there is no visible impact as yet. The introduction of the GST next year may possibly also have a short-term negative impact on economic growth for a couple of years until more positive results emerge.

Domestic traffic could grow by close to 25% in FY2018 and approach 130 million passengers The next financial year is expected to be the third consecutive year of domestic growth above 20% (source: CAPA Research Forecast 2017/18). Growth could be as high as high as 25% but may be tempered 3-5 percentage points lower because of the impact of demonetisation. The introduction of GST may also reduce growth below projections depending upon the tax rates applicable for air travel and inputs. Traffic growth remained strong in Dec-2016 suggesting

Most of the ten largest international carriers are achieving year-round average load factors of 90% or higher, indicating constrained capacity. Without India’s unhelpful restrictions, international growth could be in the region of 15-17% per annum which would result in international traffic volumes doubling within five years. However, Demonetisation could negatively impact demand for short haul tourist destinations such as Dubai, Singapore and Thailand. Several Gulf and Asian carriers are seeking additional entitlements to the tune of up to 150,000 weekly seats. Bilaterals have become a key issue in India’s geo-political relations with markets such as the UAE, Qatar, Turkey, Hong Kong, Singapore and Malaysia. The Indian government may only agree to more modest incremental expansion in seats than is being sought by some countries.

Air India continues to expand its international footprint, primarily using 787 equipment, but viability

Jet Airways is likely to revive its long haul ambitions and may possibly join SkyTeam in 2017 or 2018

Jet Airways is focusing on international growth and the Amsterdam hub signals a revival of its long haul ambitions. The re-induction of 10 777 aircraft which Jet had sub-leased to other airlines, and some of the 777s could be used to launch several new routes. The carrier has been upgauging capacity to Amsterdam and Paris and has entered into extensive codeshare agreements with Delta, Air France and KLM for connectivity to the US and Canada. Closer cooperation with these carriers may be a prelude to SkyTeam membership in the next two years.

LCCs are expected to grow more aggressively on international routes from Summer 2017, overseas routes will remain modest in terms of total operations

IndiGo and SpiceJet have pursued relatively modest expansion on international routes to date, preferring instead to focus on the domestic market. However, both carriers are expected to ramp up their international service from Summer 2017. This is also when GoAir plans to commence international services for the first time, connecting primarily unconnected destinations in Central Asia, the Gulf, China and Vietnam. Re-engined narrowbodies have the potential to transform the economics of regional international routes by making more city pairs viable. However, despite the overseas opportunities, the domestic market will remain the core focus for LCCs. At IndiGo for example international operations are expected to account for only 10-15% of total capacity.

IndiGo is increasingly controlling domestic capacity growth and moving the market; its domestic market share could approach 55-60% within two years

IndiGo’s share of traffic has crossed 40% and could approach 55-60% within the next two years, a remarkable achievement in such a large and competitive market. As its share grows the carrier is becoming more competitive with its pricing. IndiGo will take delivery of more than two aircraft a month through to Mar-2018 which will see its fleet size reach 160 by then (of which around 140-145 aircraft will operate on domestic routes). This pace of growth will create a strategic compulsion for other Indian carriers to accelerate their expansion to remain relevant.

aviation

Air India will add 100 more aircrafts by 2020; regional connectivity top agenda Ashwani Lohani, CMD, Air India shared a roadmap for the national carrier, outlining that consolidation and expansion were being undertaken in equal measure. He shared that Air India was going to add 100 new aircrafts, both, wide-bodied and ATRs, with an eye on ramping up domestic and international connectivity. Excerpts of his speech at 5th Update & Outlook Meeting, PATA India Chapter in the capital recently.

onsolidation part of expansion

Airlines and tourism go hand-inhand. The role of Air India, in that context, becomes very important for international and domestic tourism. I do not say we do not have issues. We at Air India still have a lot of issues which need to be resolved and most of these are basically legacy issues. There were two different carriers, one was an international carrier, another was a domestic carrier and we merged them in 2007 – resulting in a lot of issues. We started going downhill very fast, cumulating a lot of losses. There were compatibility issues between the staff of Air India and Indian Airlines, but we are at it. We want to settle all these issues, but it is not as easy as it looks. There are merger related issues and the debts we have got, but we are at it and trying to solve both, and hopefully, god willing things will improve. We are looking at consolidation and expansion, both – and personally think that consolidation is a part of expansion. I cannot wait to set right the existing routes and then think of adding new routes, but we will do both at the same time.

aircrafts. So, we are planning to fly on a number of new destinations, and are also very aggressively at the ‘Connect India’ program of the ministry of civil aviation, the regional connectivity plan. We have 8 ATR-72s and 2 ATR-42s will go up to 23 ATR-72 by December 2017. We are going to add 15 aircrafts – and we will fly almost everywhere. We want to take a flight to Jaipur, Bikaner, Jaisalmer. We want to get a couple of planes to Bhopal and fly to nearby destinations like Jabalpur, Gwalior. Similarly, for Maharashtra and Karnataka we want to make Hyderabad or Bengaluru as our base. All this will happen in 2017. 2017 will see the turnaround of the Alliance Air. This was a small airline and a bit neglected, but I have full confidence that in 2017-18, Alliance Air should be able to post a profit. We are looking at some unique flights as well. Like, in the month of January, we are going to start a flight from Kolkata in the morning – which will go Raipur and then fly to Indore and then to Ahmedabad, heading then to Jaipur and landing at Delhi in the evening. It will be the first garland flight of India. There are a lot of other connections. We

Air India, in a major capacity augmentation, will add 100 more aircrafts to its kitty by 2020, taking its fleet strength to 242 aircrafts. Copenhagen, San Francisco, Vienna and Tel Aviv new destinations on the radar

In the last one year, between 2nd December 2015 and the 1st December 2016, we added four new international flights, and four is a big number for any international carrier anywhere. We flew San Francisco, firstly, thrice a week, expanding it to six times a week. We are flying to Vienna. Also, Ahmedabad to London and Newark – and the last addition was Delhi-Madrid from the 1st of December. We want to expand further. We have got a couple of aircrafts coming in – some 787s are arriving, beside some 777s in the first quarter of 2018, and we plan to fly to six new destinations in 2017. We plan to go to Washington, Toronto, Tel Aviv, Stockholm or Copenhagen, some destination in Africa; we plan to fly to Frankfurt from Mumbai, and a lot of flights from A-320s to nearby destinations. We are also looking at getting, apart from the eight aircrafts which are yet to come, at least five more wide-bodied aircrafts, if not more.

Air India to induct 100 new aircrafts by 2020; domestic tourism set to gain

On the domestic front, one of the problems we have is the old fleet. While they are safe, as in airlines you cannot compromise with safety. They are as safe as any other airline carrier, but comfort-wise and cabin systemswise we have to retire these aircrafts. We have plans to add 14 new aircrafts to our fleet in 2017. We have ordered for 22 new aircrafts right now. The basic plan is to induct 100 new aircrafts between now and March 2020 to the Air India fleet, taking it from 132 to 232

are flying to Uttrakhand, to Pantnagar. An airport in Pithoragarh is coming up very shortly. So, we will fly from Pithoragarh to Lucknow and other places.

Airlines a tough business, yet Air India hopeful of posting better profits

Airlines is a tough business. It is not like running hotels. Running hotels is a very easy job. I ran ITDC in the past and in hindsight I can say that it was child’s play. We posted an operational profit of 105 crores last year. It only means one thing that, on a year-toyear basis, we have been able to recover the cost that we incur. The revenue is marginally over 20,000 crores. This year we hope that this operating profit will go up by a couple of hundreds of crores. But we still have a big battle ahead, but we are looking at it, looking at restricting on finances and all of that.

Air India working on improving services on-board

Service was an issue. The catering service, as well as reservation service has considerably improved; we have moved forward on that count. We still have a long way to go but about a year ago, we had a lot of negative feedback every day, right from the morning to the night. Now, we have started getting positive feedback as well. We have improved our food, we have put a lot of emphasis on that count. It is one of our USPs. After all, we are not a LCC but a full-service carrier. We have started giving higher baggage allowance, if one converts that into money terms, that means an extra of `2,000. Then we become the cheapest airline; we are cheaper than LCCs. We are a lot more

Airlines is a tough business. It is not like running hotels. Running hotels is a very easy job. I ran ITDC in the past and in hindsight I can say that it was child’s play. We posted an operational profit of 105 crores last year. It only means one thing that, on a year-to-year basis, we have been able to recover the cost that we incur. The revenue is marginally over 20,000 crores. This year we hope that this operating profit will go up by a couple of hundreds of crores. Ashwani Lohani CMD, Air India

competitive. Our punctuality has also considerably improved.

Expansion will boost domestic and international tourism

We will continue to grow and continue to expand. We know that we have to connect India within itself, and we have to connect India with the rest of the world – which amounts to international tourism. We have

to connect state capitals with each other – which will boost domestic tourism. We are open to suggestions and ideas. But we want to fly profitably. So far, whatever we have started on the basis of the mandate provided to us, or perhaps on the basis of the gut feel have all been doing well. We have 13 wide-bodied aircrafts coming to us in the next two years. That means, at least, 13 more destinations.

Air India finds itself at the receiving end of a dubious survey, hits back to discover it is unsubstantiated An international flight data firm, FlightStats put out a list of best and worst airlines in the world – and declared Air India as the third worst airline in the world. The survey does not merit any attention as it remains unsubstantiated.

ir India has strongly contested the data shared and the veracity of the report. Air India said that it had a consistent good record for the last two years of having clocked an OTP (On Time Performance) of over 78% on its domestic and international network. AI is a network carrier which is presently connecting 72 destinations within India and 43 destinations abroad through its hub in Delhi. It was emphasised that the OTP of Air India ranked at par with its competitors in the domestic sector taking into consideration the fact that Air India operated to every corner of India where there were several infrastructural constraints like sunset limitations and weather conditions affecting schedules. On international sectors, too, Air India’s OTP was in no way could be termed poor, going by the sheer volume of its operations to most international stations. Air India also ranked amongst the top 10 carriers in terms of on-time performance amongst the carriers in the prestigious Star Alliance consortium of airlines. The data published was apparently based on unconfirmed information and was directed at misleading the customers and audience at large. The report had clearly targeted Air India and its image. The way the report had been compiled and projected would make one believe that some vested interests might have been at work to tarnish the image of the national carrier of India which has been performing well in recent times and even reported an operating profit of `105 cr in the last financial year. The report has been made public at a time when Air India has just announced major expansion plans by way of induction of fleet and commencement of new international and domestic stations. And, this had also lead one to speculate on the intentions behind the entire exercise. Air India said it would take very strong action and leave no stone unturned to ascertain and bring to light any biased or malicious intent to spoil its image. TourismFirst gathers that the unexpected and equally strong reaction from Air India did not evince sufficiently valid arguments. TF believes not much attention needs to be given to this evaluation and it is best put behind us.

CROSS Curre nts: MoT initiative s

MoT: Secretary Zutshi reiterates core objectives, the road ahead for 2017 Addressing a gathering of PATA members and other industry stakeholders at the PATA and Ministry of Tourism 5th update and outlook meeting held recently in the capital, Vinod Zutshi, Secretary Tourism, GOI shared some of the steps taken by the ministry to boost tourism in 2016, beside outlining his understanding on the road forward. Making a special mention of the ministry’s foray in augmenting niche segments, he detailed initiatives undertaken therein. We bring you excerpts of his speech. By shashank shekhar

utlining some of the key initiatives undertaken by the Ministry of Tourism, Secretary Vinod Zutshi made a special mention of the recently launched helpline in the beginning of 2016. Calling it as one of unique undertakings by the MoT, he said “it is not found in many countries. We launched a SMS led campaign for information to the masses, through the mobile about the existence of this helpline. So, with the feedback that we got, we started this campaign some time in November, and we have covered almost three and half crore SMS send through mobiles.” “By launching this SMS campaign, the queries on this helpline, the number of queries have almost quadrupled,” he added.

Cruise tourism will stand as one of the areas where we have commenced a pioneer year, I would say to begin. A consultant, jointly appointed by the ministry of shipping and the ministry of tourism has been appointed. We had a meeting some time ago, where the consultants brought about the entire road map and interacted with the travel trade to understand the priorities of India as far cruise tourism is concerned.

Augmenting visibility has been a major success for the ministry

Pointing towards the efforts made by the ministry in 2016, he emphasized that visibility was one area where they had been able to make a dent. “Ever since I have joined, I have been listening from the travel trade, and rightly so, that we are out of sight and out of mind; we are not really visible. So, we laid a lot stress on how to make ourselves visible, and the marketing, promotion and the media campaign that we have launched has been unprecedented, at least in the last four-five years,” he asserted. Stating that whether there were global channels like the BBC, Discovery, TLC, NGC, CNN or others, each one of the were running the ‘Incredible India’ campaign with zeal. “In travel channels, we are covering all the leading travel channels globally. We have not left any major digital platform on which we are not campaigning aggressively,” the Secretary added. Informing that the ministry was expecting to launch the second round of promotion campaign in January – which was planned for six months – taking care of the next six

Vinod Zutshi Secretary Tourism, Govt. of India

months, he said “it is to ensure that there is a continuity in outreach in the national and international media.” On the domestic front, after a brief hiatus, the ministry has mooted certain themes, starting with the Indian Heritage Trail campaign. “These are 36 heritage monuments spread all over the country. When states project their World Heritage sites, they mention only the ones they have in own repertoire, but an Indian tourist who wishes to know the details of all the 36 Heritage sites, it would be difficult for him to know through one particular in-print advertisement. So, we have started this, and are also bringing in more creatives. We are also going to pick up more themes, which will cut across all the states and will be common to all,” elucidated the Secretary.

PRASAD scheme to have 21 cities

Taking stock of monetary investments put in place by the ministry, the Secretary expressed satisfaction over the fact that a sum of over `4,000 crores was sanctioned under Swadesh Darshan and PRASAD schemes in the last two year. “Projects worth about six hundred million dollars, which amounts to around 4,000 crore rupees, are all in the pipeline. They are all being taken up by vari-

‘I

The new-look website will also have mobile application and MoT is in consultation with top mobile companies for the same.

Informing the gathering about a new-look state-of-theart Incredible India website, he shared that “work on the new website on Incredible India has started and the process will end in the next two months, and will have a mobile application. We are taking top mobile companies in our orbit to get this work done.” The ministry has also de-

cided to distribute a welcome kit, and a free sim card to every e-visa holder coming to India at 16 airports. “We will begin with T3 (Indira Gandhi International Airport) and expand to all the 16 airports where the e-visa regime is continued,” said the Secretary.

Ministry to make a mention to UNWTO on FTA count

The Secretary asserted that the

With an eye on niche segments, ministry plans a push to tap for more Buddhist segment footfalls The ministry intended to make the best use of nation’s well-endowed Buddhist tourism assets and Secretary noted that it had been one of their key areas

MoT has sanctioned over `4,000 crores in the last two years. The ambit of PRASAD scheme has now been expanded to cover 21 cities.

A more interactive and revamped ‘Incredible India’ website slated to be launched shortly ncredible India’ website to be revamped

ous states and we are closely monitoring them,” Vinod Zutshi said. He added that the ministry had expanded the ambit of PRASAD scheme by adding eight more cities in the list, taking the total tally to 21. Srisailam in Andhra Pradesh, Hazratbal in J&K, Somnath in Gujarat, Tirupati in Andhra Pradesh, Ayodhya in Uttar Pradesh, Guruvayur in Kerala, Trimbakeshwar in Maharashtra, Omkaeshwar in Madhya Pradesh and Belur in West Bengal have been added to the list. “We have started sanctioning projects for these new sites as well,” he said. He noted that 2016 had been a unique year, where MoT had, in the first six months of financial year, spent money which the ministry used to spend in one year. “We are going to spend double the amount of money that we spent in the last few years. We are going to consume every penny of the budget that has been allocated to us,” he said.

figures generated for the total count of foreign tourist arrivals was minus the NRIs. While world over, figures which were shared with UNWTO included non-resident countrymen in their total tally. “We have not been adding that. We asked the Bureau of Immigration from a statistical point of view, and found that 54 lakh people who are NRIs who come to India. If we include the NRI arrivals in the total tourist

tally, in year 2015, it comes up to 133 lakhs in 2015 – taking our total share in the world market from .68% to almost 1.5-1.6%,” he said, pointing towards a difference in how numbers were being crunched in India and elsewhere. “We will write to UNWTO, making a special mention of the figures that include the NRI count. It will be mentioned in our next dispatch to them,” Vinod Zutshi added.

of focus. “Thanks to the organising of the International Buddhist Conclave. It was one of the most successful Buddhist conclaves. It was very well received by one and all,” he said. On the subject of cruise tourism, he stressed that MoT had planned to boost cruise tourism “in a big manner in 2017.” “It will stand as one of the areas where we have commenced a pioneer year, I would say to begin. A consultant, jointly appointed by the ministry of shipping and the ministry of tourism has been appointed. We had a meeting some time ago, where the consultants brought about the entire road map and interacted with the travel trade to understand the priorities of India as far cruise tourism is concerned,” he shared. Highlighting MoT’s foray in strengthening adventure tourism offerings in the country, he shared that the government and MoT, very recently, had constituted a taskforce on adventure tourism, “basically to lay stress on this very important sector.” Adding that the ministry was now looking at organising one of the most sought after events, which had never been organised in India before – the convention of ATTA (Adventure Travel Trade Association), he said “we are working seriously with Madhya Pradesh and other state governments to see that the next ATTA convention can be held in India.”

CROSS Curre nts: MICE

Meeting room at Novotel Hyderabad with NHA screen

Brigade Hospitality Convention Centre, Bengaluru

MICE: Beyond tourism, it has implications for talent and human development Robin Lokerman, Group President, MCI spoke at the ICPB interactive meet held in Delhi some time ago. Giving his take on future trends, sustainability, talent issues, and the role of destination marketing in escalating footfalls and, consequently, business, he exhorted industry stakeholders to view MICE and conventions segment not as a part of the tourism industry, but a talent and human development industry. He also made a special mention of the talent crunch looming large over the global MICE industry – which was an outcome of the rapid transformation in communication channels, aided by technology.

>50% of C-level in the meetings industry come from other industries (rather than tourism and meetings)

Exponential growth organizations in our industry will require >50% of staff on demand

The amount of de-localized hubs will be x20 vs today

Knowledge management = 2/3% of the total costs of any organization

BY TF Bureau

aking note of India as a MICE and conventions destination, Robin Lokerman stressed that “India was asserting itself in the world market, and one of the few truly growing economies left in the world.” Batting for India as a nation with “great potential”, he underscored the need for India to continue its evolution to be able to mature. “It is a business and meetings industry, as most of us call it, but we need to start behaving like an independent industry, separate from tourism,” he said. “I would like to position ourselves differently. We use the infrastructure of the hospitality and the tourism industry, but our clients have nothing to do with tourism. Our clients are looking at human development; all the congresses and learning. Our industry provides more than 70% of the post graduate education after

school. We are an education and human development industry, or on the side, corporate and marketing business development,” argued Lokerman. Calling for a tweak in how India projected itself as a destination, he asked stakeholders of the industry to showcase India as a platform for learning and developing businesses. “If you are promoting India as a place of beautiful culture and venues, that is probably not the message the MICE buyer is looking for; it is a message that, as an individual, the tourist is looking for. Therefore, the communication in this industry is very different,” he said. He lauded the Indian tourism ministry for having the minster himself taking the mantle forward. “MICE marketing is all about research and knowing your customer; knowing what meetings do exist. From the ministry perspective, I think it is fantastic that the

I would like to position ourselves differently. We use the infrastructure of the hospitality and the tourism industry, but our clients have nothing to do with tourism. Our clients are looking at human development; all the congresses and learning. Our industry provides more than 70% of the post graduate education after school. We are an education and human development industry, or on the side, corporate and marketing business development. Robin Lokerman Group President, MCI

India must position itself as a platform for learning and business development to stake claim on the international MICE travel segment. minister of tourism is in the lead,” he said. Sharing his insight on best global practices in the sector, he made a special mention of Korea. “They make it mandatory for every department in the government to sponsor key meetings in their sector to come to the country. The minister of education is sponsoring education meetings; the minister of environment is sponsoring environmental meetings; the minster of transportation is sponsoring transportation related meetings,” he detailed. Highlighting that many nations were taking it a step further, he said

India a tough labour market, needs to focus more on quality than on volume India faces a serious anomaly in managing human resource, relying more on the volume game instead of focusing on upping the ante in terms of quality. Robin Lokerman batted for greater investments in educating employees, focussing on a culture of learning.

okerman believed the battle for acquiring and retaining talent, especially, in India was intense and it was a “very tough labour market” – which called for building robust cultures in organisations, probably also examining the feasibility of opening share holdings. “MCI is a partner organisation. As entrepreneurs,

we need to be sharing some of the benefits of our businesses with our employees to keep the long-standing ones with us. Otherwise, there will always be more opportunities for them,” explained Lokerman. Pointing towards a serious anomaly in managing human resource in India, he said “I think India is a fantastic country, but

whenever there is a problem, the first reaction is to drop-off a bunch of people. It is also a volumes game, rather than the efficiency game.” Asking the industry to understand the merits of efficiency and productivity, and not just numbers, he reasoned “we need to find the right set of people that are scalable and are able to manage projects

is very important.” He also highlighted the need for investing into educating employees by companies. “How much money, whether it is a PCO or a venue, are they spending to educate their people? Most of our companies are not investing in people. There must be a culture of learning,” he showed a way forward.

“I see countries like Australia, where to get a tenure as a university professor, you need to have been on the board of an international organisation, and you get more points by sponsoring conferences to come to your destination. This industry needs to move away from tourism and become the mainstream industry that stands on its own,” he propounded. Speaking on some of the major challenges confronting the global MICE industry, he argued that given that the industry was a people’s driven business, “talent was a huge issue in the industry and a changing issue.” Addressing some key aspects, he said creating adequate knowledge base for the participants of the industry was the foremost need of the hour. “We need completely new skill-sets in our industry, especially having to do with digital solutions. Our project managers have been excellent in logistics in the past, but now, suddenly, they need to create digital marketing campaigns,” he said. He added that they needed to be connecting people through conference app before, during and after the event and “these were new skills, and needed specialist educators.” He shared that Europe and the USA had already put in place graduate and post graduate programs in event management, and the industry needed more event management education to prepare its people for the wide range of responsibilities – from hospitality, to business development, to learning.

G lobal hospitalit y Conclave 2017

Participants come together for a group photograph

industry stakeholders examine chal Conclave 2017; approaches, HR and

edicated to deciphering the churnings in the global marketplace and the hospitality industry, in India and abroad, the fourth edition of Global Hospitality Conclave was held recently at The Leela Ambience, Gurugram. An

event, organised by the Oberoi Alumni, was attended by the top echelons of the industry, representing diverse verticals, including F&B, operators, owners and consultants, and more, saw some serious brainstorming on the latest unfoldings and its implications

on the business and society at large. The Conclave was well attended, as in previous years, with panel speakers including senior industry leaders. India’s vulnerability to global upheavals, political uncertainty and terrorism, and consequential impact

2017 may witness deglobalisation, protectionism and economic slowdown Examining the implications of the social, political, economic and technological developments across the globe in 2016, which were likely to ascertain the course of the society and the industry in the coming years, Vikram Mehta, Chairman, Brookings India shared his understanding on a gamut of issues. Pointing towards the rise of nationalism and xenophobia in the western world, coupled with a sluggish global economic outlook, he propounded that globalisation as an idea was under stress and could result in a more protectionist world in years ahead. By shashank shekhar

ikram Mehta minced no words when he noted that world was a divided house and polarised. Attribution this development to anger of people towards the elite class, he argued that the “victims of globalisation” were the drivers behind the sweep of nationalism and xenophobia, which was emblematic of the year gone by. “2016 saw the rise of the dispossessed. Rise of nationalism and xenophobia. In some senses, what we have seen over the last one year is the revenge of the dispossessed. It is a world where people are genuinely angry,” he said. Asserting that while the world had seen anger in the past, much of it was driven by righteousness. On the contrary, the anger that the world was getting fast engulfed, in the current milieu, was the anger driven by “hate”, he said. “Developments in 2016, on the social and political standpoint has to be seen against that backdrop,” he added.

China is no longer the workhorse of the global economy. The problem is that China is longer able to meet the expectations of its population. Automation in production processes will lay off a million people in 2017. Wage rates have gone up to such an extent that companies are not investing there. It will put pressure on the economy. On the political front, the president is doing utmost to concentrate power in his own hands.

China no longer the racehorse of the global economic engine

On the economic front, the situation had been “difficult”, he noted. There were huge tailwinds on the economic front. Calling China a locomotive that drove the global economic growth in the past decade, he iterated that 2016 began with China “declaring that its economy had slowed down.” Accepting that it was hard to pin-point exactly how the situation was unfolding in China, he, however, suggested that its economy was in “deep trouble”. “The problem is that it is longer able to meet the expectations of its population. Automation in production processes will lay off a million people in 2017. Wage rates have gone up to such an extent that companies are not investing there. It will put pressure on the economy. On the political front, the president is doing utmost to concentrate power in his own hands,” he detailed.

Implications of oil prices

Assessing the consequences of oil prices, Vikram Mehta said that the price of oil,

Vikram Mehta Chairman, Brookings India

through the last year, hovered around 35-45 dollars a barrel, resulting in the worsening health of the finances of all the oil producing countries – which included not only countries in the Middle East, but also Russia, and countries in Southeast Asia. “In

2013-14, four gulf countries – Saudi Arabia, Oman, Kuwait and UAE – had a combined fiscal surplus of 700 billion USD. In 2017, they have estimated an aggregate fiscal deficit of 600 billion USD. It means that there has been a turn-around of 1.3 trillion dollars

G lobal hospitalit y Conclave 2017

llenges ahead at Global Hospitality d technology come under scanner on businesses was deliberated at length. There was concurrence on the next year being challenging on multiple fronts, especially on the economic front after the government’s call on demonetisation. Technological innovations in in their combined economic fortunes. Saudi Arabia will need to sell oil at 80 dollars a barrel just to balance its books,” he explained how the tables had turned in the last few years.

Technology meets commercial conviction

2016 saw the “ring of commercial conviction” surround all new inventions that had been talked about, he said. He termed these innovations disruptive. “Whether it is Uber; whether it is the whole idea of driverless cars; whether it is the idea of electric cars; people are beginning to say that robotics, 3D printing and big data will change the world,” Vikram Mehta suggested.

2017: issues to watch out for

To his understanding, the foremost development that was going to have a strong impact on how the global situation panned out was Donald Trump taking over the reins as the POTUS. Reflecting on the recent appointments announced by the President-elect, and the stark difference between the outgoing and the imminent government’s experience quotient, he said “it will be a cabinet which would be very short of governmental experience. Trump’s top eight elected members have a combined experience of 55 years. Obama’s top eight, on the other hand, had 115 years of experience.” Beside the political churnings in the USA, general elections in France, The Netherlands and Germany were also critical, he opined. Highlighting the rise of the far right in these countries, he said “Marine Le Pen in France has emerged as an important contender. If any of these three countries witness the rise of a right leaning government, that is the end of the EU. The EU cannot survive the loss of Merkel or the victory of Le Pen.”

businesses and their impact on altering the current paradigm, creating the need for taking stock of diverse approaches, instead of relying on existing models of operations was also put under scanner. Laudably, there was a free and frank

De-globalisation on the anvil

Vikram Mehta suggested that the world was steering slowly towards protectionism, where the “forces of de-globalisation” were gathering strength. “Strong leaders would challenge the very concept of institutionalised governments. It would not be a world where any one of us can sit back and think that the world would move along a linear path. It would be a world which would be subject to a lot of twists and turns, and buffeted by very volatile forces,” he forecasted.

Going beyond 2017. Larger trends.

Technological innovations and the rapid

discussion on how hotels needed to embrace diversity while dealing with the workforce, providing substantial opportunities to marginalised and deprived sections of the society. We bring you a report on some of the sessions held at the GHC 2017.

The cost of entering a new business would head towards zero and margins of profits would come under great pressure. pace at which new innovations were to come by were going to alter the global business space, leading to some of the most dramatic changes in the offing, mentioned Vikram Mehta. “I can see the end of the oil era, for example. I can see a move from fossil fuels to renewables. I can see the complete overturning of

the owner-operator model of car ownership. The uberisation of cars will lead to the concept of shared mobility,” he said. Pleading the audience to understand that the times were changing at a pulsating rate, he said “do not for God’s sake think that we will continue business as usual. People and society will leapfrog. The change will be dramatic.”

India is ‘work in progress’; bereft of digital infrastructure to become a cashless society, says Vikram Mehta

echnology will create a new breed of semi-gods

Given the stronger infusion of technology in the day-today lives of people, technology was going to create a new divide between people; ones who would use technology to their advantage, and others who would not, he implied. “It will not be a world where everyone will have the same opportunities. Those who will climb on to the train of technological progress may well acquire a semi-divine right to create and destroy,” he asserted. He further noted that the cost of production, owing to superior technological input, was going to come down tremendously, undermining the matrix of profits. “The cost of entering a new business would head towards zero and margins of profits would come under great pressure,” Vikram Mehta said.

India a country of contradiction; work in progress

Speaking on the discord between the society and the state, he argued that there was a major mismatch between the two. “The median age of Indian population is 26 years. Meanwhile the median age of parliamentarians is 58 years,” he said. Stating that while the

aspirational society, entrepreneurial in nature, wanted to move up the ladder at a fast pace, the state wanted to assert its control, creating a rift between the state and the society. Commenting on demonetization and its impact on the society, he argued that the nation was not prepared to head towards a cashless society, as it was yet bereft of a digital infrastructure to head in that direction. “What is more important is a redefining relationship between an individual and a state. What is worrying is that the state is able to take a decision which will impact my business to such an extent, without my consent. It is something to think about,” he elucidated.

No neat model. Take a holistic approach

Asking the industry stakeholders to look at diverse approach, and avoid relying on a singular neat model, he said “approach must be holistic and all-encompassing. World of the past will not be the world of the present. There is no one tool. Instead, the industry must look at a combination of tools.” In a poetic tinge, he concluded by asking the industry to diversify, reminding the audience that “reputation arrives on foot but it can leave in a Ferrari.”

G lobal hospitalit y Conclave 2017

Stronger revenue management, technological inputs needed to ‘up the game’ The session moderated by Rattan Keswani, Deputy Managing Director at The Lemon Tree Hotels saw industry leaders discuss the need for stronger revenue management and more involvement of owners with operators. Issues related to nurturing a talent pool and developing hospitality professionals to face the challenges of tomorrow also came to fore during the discussion. We bring you excerpts of the insightful session.

Brands taking owners for granted; future of hotels lies in domestic leisure segment, says Manav Thadani Manav Thadani, Chairman, HVS – Asia Pacific asserted that big structured brands had been taking owners for granted and needed to ensure better returns on investments to owners. He placed his wager on the domestic leisure segment, noting that as long as hotels where in the vicinity of a leisure destination, they were going to get enough business.

n demonetisation and its likely impact on the industry

I am a lot more positive. I am pretty much in favour of what is happening will lead to short-term disruption. I think for the medium long-term, in the next 8-10 months, we would start to hear the benefits of demonetisation. There was a lot of unscrupulous stuff that was happening in the real estate sector. If some of it gets cleaned up, it is good for the country. It is good for the image of the country. As cash gets replaced by more institutional capital, we will start to see the benefits of that. If you ask me to pin point where the problem is, I think that big brands are failing us. The structured brands could be doing better for us. They have been somewhat of a let-down. People used to ask us why would you let a brand manage your hotel? We used to turn around and say that brands do a great job

I am a lot more positive. I am pretty much in favour of what is happening will lead to shortterm disruption. I think for the medium long-term, in the next 8-10 months, we would start to hear the benefits of demonetisation. There was a lot of unscrupulous stuff that was happening in the real estate sector. If some of it gets cleaned up, it is good for the country. It is good for the image of the country.

in managing hotels. I think we are getting to a point that brands are taking owners for granted. They need to shape up and figure out a better way to give better returns to owners.

Suggested way forward for the next decade

Get used to technology, because it is going to continue to be a disruptor. Therefore, learn and get used to it. One big area of growth – and I would blame myself for turning away some of those projects – leisure is going to be huge in India in times to come. If you have looked at new hotels that have come up in leisure destinations, I think that the Indian domestic traveller segment is so big that we do not need to worry about where we need to build our hotels, in cities and so forth. The game changer is going to be leisure locations and that could be anywhere. It could be cities, or it could be outside of cities.

Manav Thadani Chairman, HVS – Asia Pacific

Need smarter management to make ROIs comparable to the commercial real estate sector: Ashish Jakhanwala

Ashish Jakhanwala MD, CEO, SAMHI

When people compare returns in hospitality with retail and others, I think they are being very short-sighted. In our business, we have the ability that as the cycle recovers, we can reset our rates every single day. I think we need smarter revenue management, which has completely fallen apart in the last decade, but if we have that in the business, returns in the hospitality industry will be at par, or even better than in commercial real estate.

Ashish Jakhanwala, MD, CEO, SAMHI was of the opinion that with smarter revenue management techniques in place, returns on investment in hotels was going to be as healthy as in the retail or commercial real estate sector.

hy would one need brands? On the difficulties in getting ROI from brands

I think that the problem that the industry faces is the business model itself. For the last few decades, the source of capital for the hotels have been hotel companies themselves, or individual owners. It has to be institutional capital which asks very difficult questions every morning. And none of the hotel companies, whether it is the IHG, ITC, or Marriotts’ or others, ask themselves difficult questions on returns on their capital. As capital sources change, and you will see that change, you will see difficult questions being asked from everybody in the ecosystem – operators, brands and owners. People who run the hotel are too separated from the thing that they are owning. There will be more involvement by owners in the way how operators are performing and in times to come, owners would be much closer to the running of hotels. Also, when people compare returns in hospitality with retail and others, I think they are being very short-sighted. The good

part of this business is that it should naturally be linked to inflation. Now, we have not seen that so far in the last ten years. Inflation has been at 6-7%, hotel rates are at 5% discount in absolute terms. So, it has been quite bizarre, but I think that the cycle has been, hopefully, an abnormal cycle. What we will see is that the rates in the hotels are linked to the way inflation happens in the economy – and if you take a 10-year holding cycle, you will find hotel returns to be comparable with the ones in commercial real estate, or retail. Do not forget that in commercial real estate, people suffer because of not being able to reset the rates for a long period of time, even when the cycle goes up. In our business, we have the ability that as the cycle recovers, we can reset our rates every single day. I think we need smarter revenue management, which has completely fallen apart in the last decade, but if we have that in the business, returns in the hospitality industry will be at par, or even better than in commercial real estate.

G lobal hospitalit y Conclave 2017

Soft skills and life skills must be a part of the pedagogy to create quality workforce: Dilip Puri Ensuring adequate stress on life skills and soft skills in the curriculum of budding hospitality professions was critical to ensure that the new breed of hoteliers were up to the challenges confronting them in the real world, said Dilip Puri.

n larger trends and how to strengthen the HR base in the industry

On the brand piece, which I heard Manav and Ashish talk about, yes, I do think big brands are in a severe danger of getting commoditized. When that happens, one or two things can happen. When you commoditise a product, it is actually supposed to be more efficient, producing in mass terms, build the economy in it. When people compare big brands like the Marriotts of the world to good Indian brands like The Oberoi, Taj, and The Leela, I think one of things these brands have to understand in India is that, as Manav made the point, our future lies in domestic travel. It has never been in big international travel. Not that we do not need that business. If the market is largely domestic, then what is the real value that these international brands are bringing? Today, the value we need is the global distribution etc., but if you look at China, their domestic Chinese brands are doing an amazing job – in terms of their size, scale and returns. What they have done is that they have taken the international model and by using technology, adapted it for the domestic market – and I think

that is what we are not doing. Whether it is a function of size, scale, or the amount of investment to be made, but the reality is that you have to do it in your country for your country. That is what surprises me. We have seen The Marriott become the biggest (hospitality) company in the world, but even Marriott believes that the future of our industry, in India, is domestic travel. So, what is stopping us from making those real transitions? Technological change and the time to make those changes is so rapid that I think it is really the Indian mindset of hoteliering, where we say when we cannot compete with them, let us do what we can do, I think that is a real challenge. In terms of my views on education, I am venturing into the space of hospitality education, and in my several years in the industry, clearly one thing that you see when you go and recruit from IHMs and all the other hospitality colleges in India is the appalling quality that is coming out. You cannot blame kids for it, because the infrastructure and the pedagogy, the whole philosophy of education of the faculties, is so archaic. It is so removed from the reality of our industry. In fact, we are more challenged, because kids come into the industry with really no insights into how

In terms of my views on education, I am venturing into the space of hospitality education, and in my several years in the industry, clearly one thing that you see when you go and recruit from IHMs and all the other hospitality colleges in India is the appalling quality that is coming out. You cannot blame kids for it, because the infra and the pedagogy, the whole philosophy of education of the faculties, is so archaic. It is so removed from the reality of our industry.

Dilip Puri Advisor, Marriott India

the real world works. What I am attempting to bridge is how do you build future-proof hoteliers, that is something we do not do. How do you imbibe life skills and soft skills,

to make difference, into the curriculum and pedagogy is when you will see the transformation in the millennials coming into the industry, and they will not have the same levels of frustration.

Practically usable technology could help enhance efficiency and quality, says Nirupa Shankar Nirupa Shankar, Executive Director, Brigade Hospitality talked on the need for using practical and implementable technologies to increase efficiencies, stating that Nano technology could augment a project’s quality and efficiency.

lot has changed in last 15 years and while we can think about what will happen in the next ten years, right now the task is to handle the next one year. There is a lot happening. Apart from the change of guard in the USA, there is GST coming, and demonetisation to deal with. So honestly, the challenge for us is to get through the next one year in a successful manner. Demonetisation itself, along with RERA (Real Estate Regulation Act), might wipe out over 50% of the small operators in the real estate space. So, what I say is that for us the focus is on the next one year and getting through it in a successful manner, and we will deal with the next ten years, may be, a year from now. People have talked about technology but I want to talk about a different aspect of technology. Being in the construction space, for me, it has always been the use of the Nano technology. Imagine, if you find a compound that will give us leakage-free buildings. That will solve

snippets

almost 80-90% of all our construction related issues, or consumer complains. We have created an accelerator in this regard to look for Nano technology companies to create and come up with some sort of cement or compound that would seal it. And, this is to do with hoteliers as well. Developers are spending crores and crores of rupees for waterproofing and buildings are still not fully waterproof. So, we are looking at compounds that can help us with leakage-free construction. That for me is one of the biggest disruptors you could get in the real estate space. People talk about increasing productivity. Suppose, I am a COO of a company and handle 20 projects. How can we have one person double that and say, may be, handle 30 projects? Perhaps, we are looking at the drone technology. What if you had drone technology to monitor all the development sitting in your office. You could perhaps become three-time more productive.

A lot has changed in last 15 years and while we can think about what will happen in the next ten years, right now the task is to handle the next one year. There is a lot happening. Apart from the change of guard in the USA, there is GST coming, and demonetisation to deal with. So honestly, the challenge for us is to get through the next one year in a successful manner.

Nirupa Shankar Executive Director, Brigade Hospitality

Impulse planning emerges as a key driver among Indian travellers, suggests OYO booking trends

YO’s year-end analysis of hotel-bookings in 2016 indicates that a majority of Indian travellers are increasingly driven by impulse. Impulsively planned trips emerged as the top driver for outstation trips both in business and leisure travel segment. 61% of all the bookings made on OYO platform were made within 24 hours prior to check-in. While 61% of OYO bookings in 2016 were from impulse travellers, yet predictability, standardisation and affordability remained travellers key priorities. In terms of destinations, Paharganj continues to be the go-to spot for backpackers in Delhi, whereas Arambol emerged as the most affordable locality in Goa despite ranking high on popularity. In the realm of metro cities, Chennai and Goa are the highest-growing cities for same-day and overall bookings The research has further highlighted that despite the last-minute bookings, travellers’ expectations in terms of service, facilities and experience were pre-determined and non-negotiable. Wi-Fi, breakfast and hygienic rooms are the three biggest priorities for guests.

Commenting on the insights, Kavikrut, Chief Growth Officer, OYO said, “We are witnessing a travel awakening in India. Along with the surge in bookings from impulse travelers both within leisure and business segments, we see an emerging paradox in that even as travel-planning cycle reduces further, the expectations from on-ground suppliers and agents is of delivering a non-negotiable and predetermined experience. Thus, the onus on travel partners such as hoteliers and those offering travel-related services is to ensure consistent, highquality service delivery. We, at OYO, employ tech-enabled solutions to deliver standardized user experiences.” OYO’s research identified Chennai, Goa and Gurgaon as the top-contributors to hotelbooking via app. Shillong, Coorg, Darjeeling, Vishakhapatnam, and Munnar as most popular winter-holiday destinations in 2016 Using its cutting-edge data science and pricing technology, OYO also identified the most-expensive and most-affordable localities for budget hotels in top travel destinations.

City Most Expensive Average tariff Most Affordable Average tariff Locality (in INR) Locality (in INR) Ahmedabad

Vastrapur

2023

GIDC Vatva

607

Bangalore

Bangalore Airport

2137

Indiranagar Extension

1181

Chennai Vadapalani

3008 Egmore

770

Delhi

Pragati Maidan

3800

1292

Goa

Candolim

3172 Arambol

2238

Gurgaon

Manesar

2711

979

Paharganj Sohna Road

Hyderabad Kondapur

2380 Abids-Nampally

1436

Jaipur

Amer

1608

Sindhi Camp

1194

Kolkata

Ballygunge

2014

Ruby Hospital Kolkata

1324

5276

Thane

2231

Mumbai South Mumbai

G lobal hospitalit y Conclave 2017

Lemon Tree Goa

Lemon Tree Vembanad Lake Resort, Kerala

Straight from the heart: Patu Keswani From his formative years in IIT and IIM, to his days in the TATA group, to how he managed to create a brand out of his own savings, a single hotel to begin with, Patu Keswani’s journey has been nothing short of spectacular. In a very candid speech, which also saw the audience giving him a standing ovation, he shared how Lemon Tree Hotels grew to become a formidable entity in the nation’s hospitality landscape. Here are excerpts of his speech:

The next phase was from 2004-2006. I built this one hotel which cost me 9 crores. I could not get a loan. I had a ponytail and used to wear ragged jeans during IIT and when I became an entrepreneur, I went back to that. Every banker that I went to used to stare at my ponytail and not give me a loan. Finally, I was lucky. I used to play Bridge with Deepak Parekh. When I was in Mumbai, I called him and he gave me a loan of 4 crores. Even today, I tell him that I am very grateful for that. Patu Keswani Chairman and managing director, Lemon Tree Hotels

is Background

I studied in Delhi; I was in St. Columbus. Then I did my computer sciences in IIT Delhi. I went to IIM, Kolkata to do my MBA. Some of these things, interestingly, came back to help me later. When I was in IIT, one of the minors I took was architecture and interior designing. I joined the TATA industrial service in 1983. I was with the TATAs for 17 years. My last job was as the Chief Operating Officer at the Taj Hotels – which was 22 hotels. And, in the group, they were underperforming hotels. So, I remember when I took over, my then boss Krishna Kumar – who was the MD at Taj – asked me to double the profits in one year. So, my biggest learning was in the next months, because what happened was I dis-aggregated the hotel business into 180 parameters – and these parameters basically covered all aspects of operational excellence and cost efficiency.

Examples of parameters

In a typical five-star hotel, a room boy clears about 14 rooms in a shift. One of the parameters was to how to make it 20 rooms? What are the changes in design of a room, so that a room boy can improve his productivity, therefore staffing for cleaning of rooms can be reduced by 33%? I defined these 180 parameters and send them to the 22 General Managers in my group, and I told them to get back to me with their numbers. In about two weeks, I had these big Excel sheets with the actual performance figures of the 22 hotels. I selected the best performing parameters and put them into a hypothetical 23rd hotel.

This 23rd hotel, I found, would always make a gross operating profit of 50%. Always! So, it was possible, therefore, to reengineer and redesign a hotel so that it would always make a 50% GOP and a 16-18% return – which as you all know, being hoteliers, is exceptional in terms of performance. In fact, there is only one hotel in India that I know has consistently achieved that – The President hotel – because it was so close in some of these parameters.

How Lemon Tree Hotels came into being

Around 1997, I turned 40 and went through a midlife crisis, because I wanted to ask myself what I wanted to achieve in my life. Did I want to become the MD of TAJ, or did I want to stay in TATA. The USA is the most sophisticated hotel market in the world. There is a clear distinction between asset ownership and management and brands. And in 2013, and you can extrapolate in backwards, the USA had 181 rooms per 10,000 population. The world had an average of 30 rooms. India had much less. If I remember right, there were about 20,000 branded rooms in India. The second interesting thing was that in the early 2000’s most of the branded rooms in India were upper upscale or deluxe, so it was an inverted pyramid of supply. Whereas, normally, in the world, for every one deluxe room you have two upscale rooms, three midscale rooms, and seven economy rooms. In India, two out of three rooms where four and half star hotel. In an analogy, the airline sector in India has two-thirds of its seats in the business class segment. Obviously, there should be enormous latent demand for the mid-

market. Though it had not come into the market yet, but it was clear that should a product come, there should be demand for it. Why had it not come? Very simple. The cost of land was very high, approvals from the government was very corrupt and opaque, cost of debt was short-term and high – all these factors together. The only people who build five-star hotels, other than two or three of the companies like the Taj, Oberoi and the ITC were individuals with black money because they were laundering the money, and people who did it for ego, and did not bother for returns. In 2002, therefore, I founded Lemon Tree as a mid-market hotel. It turned out to be a brand, but it was originally a hotel, and if I look back at next 14 years, we have gone through four distinct phases.

How the growth story unfolded

The first is what I call the startup phase – which was 2002 to 2004. We had no product, just a piece of land, around a 1000 sq. meters. I had around 5 crores in the bank, and I was focussed on

by 2006 with total invested equity of 25-26 crores, and our operating profit at that time was about 25 crores. It was so successful. 2006-2009 was the phase three. Those were the golden years. In 2006, large private equity funds started approaching us. We tied up with Warburg Pincus, and later with Shinsei Bank and Kotak, and raised about 100 million USD by just selling 25% of the company. We used this one hundred million to scale up rapidly to ten years in the next 3 years, also acquiring plots for another ten hotels. So, by the end of 2005-2009, those were the golden years for hotels in India, we had suddenly grown from a 300-hotel room company to a 1000 hotel room operating, and another 1000 rooms under development. At that stage, we also reinvented ourselves a little bit, because we started understanding the midmarket space better. You have to remember in some senses, we were the category creator of the midmarket, and we started understanding that consumers wanted differentiative products in what we just considered just the mid-market space. So, we had really three products. One was the original Lemon Tree, which was the basic threestar product, but with three and a half star service because Indians, and we were

My guess is that in the next decade, the resort space in India is going to be the most exciting space. We are the mid-market category creator in the country. building the entrepreneurial tripod. It is basically three things: a business model, capital and people who will help you execute the business model. I was very lucky to have just enough money to build one hotel. Ten people took a massive leap of faith who left their jobs and joined me. I had nothing other than this dream. In 2003, we started building this hotel and we moved into the phase two of our company – that is we became an operating company in 2004. So the next phase was from 2004-2006. I built this one hotel which cost me 9 crores to build. I could not get a loan. I had a ponytail and used to wear ragged jeans during IIT and when I became an entrepreneur, I went back to that. Every banker that I went to used to stare at my ponytail and not give me a loan. Finally, I was lucky. I used to play Bridge with Deepak Parekh. When I was in Mumbai, I called him and he gave me a loan of 4 crores. Even today, I tell him that I am very grateful for that. The hotel opened in 2004 and it was a smash-hit success. We invested 9 crores, and in the second year our profit was 9 crores. Obviously, we all got very excited. In 2005, I talked to friends and at an enormous premium raised another 2025 crores. And we very quickly built or acquired, scaling the company to five hotels

focussed only on Indian customers, wanted more service. Then we created, for some of our better locations, Lemon Tree Premiere which was a step-up version. It was really an upper midscale product and upscale service. And, in an attempt to meet the mass market, which was a two-star product with twoand-a-half-star service, we created Red Foxx Hotels. Therefore, by the end of 2009, we had these three brands. Incidentally, we also moved into the resort space by then, because I have always felt that I have never understood why resorts did not do well in India. If you look at the domestic middleclass, may be, 15 years ago, they did not treat holidays as an essential or non-discretionary. But my guess is that in the next ten years, the resort space in India is going to be the most exciting space, because Indians want holidays, and as connectivity improves, airlines networks connect more cites, the government is focussing on improving roads, my guess is that any resort within six hours of any major city will start doing well. Also, weekends are great opportunity for business hotels, because people want to move out of their houses in the same city. In the last three years, we have averaged 85% occupancy at our business hotels during weekends.

presenting the big picture

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Photo Courtesy - Oleg March

Chor Bizarre London

Indian Accent, New York

Rohit Khattar: cinema and food, biggest global ambassadors, remain unexploited In a freewheeling interview with TF, Rohit Khattar, Founder Chairman, Old World Hospitality – which also manages the India Habitat Centre in Delhi – opens up about two of his major engagements, food and cinema. Calling Indian culinary offerings and cinema as two of the biggest ambassadors of the country in the global market, he advocates a stronger push by state governments in popularising local cuisines and bats for a more holistic marketing outreach for the same. Excerpts of the interview follows:

I feel tourism bodies, such as the state tourism departments need to think this through, and decide to put in more money on aspects of India such as its cuisines. And I feel that in a widely read magazine such as the British Airways inflight magazine, they need to promote such images. All I get to seeing is the usual monuments and the same imagery. What if each state started to push a few dishes to the world, this could change the dynamics of the business.

Rohit Khattar Founder Chairman, Old World Hospitality

By Navin Berry

ou have an interesting presence in two relatively new verticals for Indian tourism, namely, culinary and cinema. How do you see the two developing for India as an inbound destination?

In terms of restaurants, we started with the Chor Bazaar at Broadway Hotel in Delhi Gate. We have a Chor Bizarre in London for some time, and now an Indian Accent, first in Delhi, and more recently in New York. All of this centres around Indian food.

How do you see India’s story going forward in terms of bringing tourists to India for authentic culinary food? Because we feel in many cases authentic Indian food is missing.

Honestly, when I did these launches I don’t think that my intention was to take Indian food overseas, it was more an opportunity that turned up in London and then in New York. Indian Accent is modern Indian food; it is an interpretation of what the world wants today. Having said that, the flavours are intrinsically Indian. But coming to your question, as far as I think, a lot of people come to India for its mysticism but I don’t think the images of India that are projected talk about food. However, when you think of India’s two biggest ambassadors worldwide – overseas – these are food and films. I think mainly the Indian diaspora, now that my company also distributes films is mainly UK, USA, UAE, that’s where the volumes are. Surely, these can become the new pullers for Indian tourism. Easily, I can say, both remain hugely unexploited.

Where has the story of Indian food reached yet?

Indian food has penetrated everywhere. Now you may say that much of the Indian food in Britain is not really Indian, it is more Bangladeshi. Which, perhaps, is also true. But the fact remains that in the most obscure town in any part of the world, you will find Indian food. So, Indian cuisine is the greatest ambassador and perhaps because of that, now that you mention, people have their fill of food. Maybe that is why they are not travelling for the food. Of course, when they are here, they try it. They may not have felt the need to go all the way to India, when Indian food is available to them at home. For a more authentic experience, to try so much more of the variety that Indian food has in store, these elements need to be promoted.

Yes, the Indian cuisine overseas, so far, has been essentially tandoor and only in a few exceptional cases, like in London there is a small bit of the south as well, the whole gamut of Indian cuisine is mind boggling. I feel tourism bodies, such as the state tourism departments need to think this through, and decide to put in more money on aspects of India such as its cuisines. And I feel that in a widely read magazine such as the British Airways inflight magazine, they need to promote such images. All I get to seeing is the usual monuments and the same imagery. What if each state started to push a few dishes to the world, this could change the dynamics of the business.

What is your impression on creating some mechanism in India or in London,

to begin with, to organize a regular and genuine authentic food festival? We have done food festivals from everywhere, but somewhere sustaining them has always been a challenge.

Just as a thought, every year there is a WTM in London, around the same time. Why not have a 20 cuisine festival in the city, around the same time?

I agree with you. I think it is needed, and can be done.

Do you think food has that potential?

Yes. Across the country, every hotel is doing food festivals all the time. I have this regional restaurant called Delhi O Delhi. It opened in 1999. Till now, every month, I have some state food focus and people do not tire of it. Even at Chor Bizarre, people know us for Kashmiri but we are a regional food restaurant. Most people across the world, and even the Indian food that has gone overseas, predominantly is north Indian. Once in a while, you will see the dosa and other South Indian dishes.

haps taken more ownership of the chicken tikka masala than us. According to statistics, the UK sells more tikka than fish and chips in the UK. I feel guilty, as an Indian, that I don’t know myself adequately, on what kind of cuisine states and destinations like Madhya Pradesh or Chhattisgarh have to offer in terms of their cuisines.

Bengal and Andhra are legendary, there is Goan as well, and many others that can become instant hits overnight. I agree, for sure. But we have yet to get started on this.

You mentioned the second ambassador for India, the big potential one, Indian cinema. And you are actively into films? I have tied up with Anil Thadani. He is the biggest distributor in India. I own 51% and he owns 49% of Cinestaan AA Distributors. Cinestaan is my studio and AA is his company. Indian films have a market in Germany and Spain. And now we have Cinestaan international sales based out of Madrid. In films again it is not as big as it could be. The diaspora is hungry for it. The non-diaspora gets interested, once in a while, with films such as Monsoon Wedding, or the more recent Lunch Box, when the film breaks through and becomes universally liked.

Kerala and Rishikesh have taken ownership of yoga. But with tandoori, no one has taken ownership. I think Britain has perhaps taken more ownership of the chicken tikka masala than us. What is your experience at Indian Accent or at Chor Bizarre?

We have been very lucky. We have people flying in once to enjoy a meal at Indian Accent. A lot of the success is on account of social media. We have been number one on TripAdvisor for so many years. We are the only restaurant from India on the world best list. So people see that and they come. There is so much wealth in this country in terms of food.

What about promoting British films or other language films to shoot in India and therefore promote India, to let’s say, the French audience?

Desperately needed. There is a lack of process and intent right now. Each one of these countries are giving tax credits to shoot. Here UP tourism is giving something. Others do not. The advantage of shooting in so many cities and countries is so fantastic.

It can be a strong pulling power for tourism into India.

What has been your experience so far of dealing with Indian bodies?

At Chor Bizarre in New Delhi, what has been your experience with foreign tourists?

Any plans to go aggressive?

Yes. Absolutely.

70% of the clientele are foreign tourists and it remains packed for a major part of the year. It has been 25 years now; we have never seen recession.

I was also pleasantly surprised when I was eating at Chor Bizarre in London, maybe barring 2 tables, all others were well-heeled locals.

I guess you are right. It is the tip of the iceberg. No one has really done anything. For example, Kerala and Rishikesh have taken ownership of yoga. But with tandoori, no one has taken ownership. I think Britain has per-

For now really we haven’t had much interaction. We are aggressively shooting overseas because of the tax credits and the advantages. I have a UK office, we have many films under development with a lot of shooting overseas.

The fact that you go to X country? Is that expense worth it? Yes, still worth it. So for instance if you go to UK, you hire the local talent, the cast, the crew and do the post production there, they give you back an X% of your budget. Even in the US, there are amazing benefits. In fact every state is competing with each other for the benefits they offer. So basically the intent needs to be there. It will massively promote tourism into the country.

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Roseate Hotels: Set to become the new luxury benchmark in Indian hospitality Ankur Bhatia talks passionately about his latest product, Roseate Hotels and Resorts, perhaps the newest Indian Hotel chain brand to enter the Indian and International market. With a portfolio of 4 operational properties, 2 in the UK and 2 in New Delhi, the brand aims to strengthen and operate within a niche of its own targeting well-heeled guests who have an appreciation for design, art and the best in service. By Priyaanka Berry

ould you share with our readers, the concept behind the brand?

As Bird Hospitality, we had four hotels, two in the UK and one in Delhi, which was called the Dusit Devarana and one almost ready to open at Aerocity. The whole intention was that the hotels which we own and operate have a similarity, similar service styles, a certain association to art with a lot of personalized details in terms of the whole curation of guests staying with us and the F&B offerings. Since the Aerocity, which is the largest property in our portfolio, was set to launch, we thought this would be an opportune time for us to also launch our own brand. The Roseate is a part of the Bird Group. Regarding the name, we had a lot of options on the table and chose the Roseate which is a type of a bird and is also linked to something which is rose coloured. Since the existing Delhi property had quite a few elements of rose, we decided on this. Roseate Hotels and Resorts has two subbrands, The Roseate, which are out of the city, more resort-like experiences. These are The Roseate, New Delhi and The Forbury Roseate which is in Reading, UK. Then we have the Roseate House, which is the Aerocity property in Delhi and The Royal Park in Central London. We have got them onto one common sales platform which is the ‘roseatehotels.com’ as our selling site. We will be representing the hotels as Roseate Hotels and Resorts across various media and advertising. The intentional is create something which as a luxury boutique experience does not exist currently in the country. The detailing is more centred around the experience of the guests and about how we can do something different from what other hotels usually do. The guest experience is personalized and is an ongoing process which we intend to keep building upon.

Could you elaborate on the personalized experience?

This is more individualized. It is more about people coming into any of our hotels and concentrating on them. We do a bit of a research on our guests. For instance, if someone has a taste for wines or is interested in a wellness

experience then we will create a journey around that. If someone is just coming in for a night, then ensuring that the room is comfortable. Everything is available in terms of charging gadgets and other such things. There is something new we are working on for the Aerocity Hotel which is not yet branded. It is an experience of sharing work spaces. This isn’t seen often in hotels. Guests we feel may not like to work in their rooms but also work in common spaces. Another exclusive experience to Roseate House Aerocity is a 70-seater theatre. We are the only hotel in the country to have this! Most people coming to India had heard about Bollywood. We have everyday between 6pm to 9pm, a screening of a Bollywood movie for in-house guests with subtitles. It is also a multi-purpose space which works out well. At The Roseate which is our flagship, we have created an ‘out of the city’ experience despite being in New Delhi. The London hotel gives a very English London house feel being in the heart of the city which is very rare in that area. The Reading hotel is the only 5star hotel there.

When you walk into a Roseate, is there anything indefinably similar about these properties.

No nothing like that. There is no architectural element which will look similar. But you will know you are at a Roseate when you look at the softness of the look, the softness of the logo, the rooms or when you get into numerous little elements such as branding pencils.

What does it mean to build your own brand today?

It’s a process that we just started recently. It is a continuous process. I think it is seemingly easier than what it was about ten years back with the advent of social media and the internet. There has been a good take in terms of popularity on Facebook, Twitter and Instagram.

What are the challenges along the way? In terms of challenges, there are always

Trends for 2017: Ankur Bhatia

erocity 2017: Last year was not bad at all. There was the convention centre coming next door. That has gotten stalled. There is a lot of demand here in this area. It is not just transitory, but people coming and staying here and using it as their base to explore the city. It is a new destination really. I think GMR is doing a lot to promote it. There is beatification of the area being done. There are a lot of retail options and shops set to open with World Mark and others. Hospitality post demonetisation: We are waiting for GST to happen to rationalize the taxes. Right now, there is something like 40-45% taxes on tariffs include service tax, excise tax and luxury tax. If this all gets combined into one, then yes it will be beneficial. Regarding demonetisation, I don’t think we got affected, apart from a

few marriage events that were booked with us and called off. I think cash is back in circulation. I don’t see much of an impact at all. Hospitality from the aviation side has gone up. Full service airlines have gone up to a very large extent. Foreigners coming to India: There was a lot of negativity about demonetisation across international media. That does affect the number of foreigners coming in. Right now, we are playing with very small numbers of tourists coming in and I think it has to grow. As an individual and as a hotel owner I don’t think I can make any change in the number of people coming in to the country. Of course, we have our UK sales office that sells India as a destination. Overall speaking there could be a slight decrease in the growth but there will be growth for sure. I don’t see a negative growth.

Ankur Bhatia executive director, Bird group

things to overcome when starting any new brand. Having said that, this is the exciting bit of doing business. There is joy in creating a brand that is your own. I must also say that after the Oberois that happened 30 years back we are the next Indian hotel brand to have significant overseas operations and projects.

In terms of building a team, what is the process?

We are an entire in-house training set up. Have been doing so since that past 5 years. It works best as the training is as per our own brand standards. Our people get trained in terms of the quality that is required in accordance to our brand ethics and brand needs.

Where do you position Roseate Hotels in terms of competitors?

I don’t think there is any comparison to any other brand. We are not a Leela for sure. We are not a Taj. What we have created is very different from what these brands present. We are a high-end luxury boutique brand. In terms of the services and in terms of the offering I don’t think we are less than any of the top hotels in the city. We are of course much younger.

Specifically, what sets apart the Roseate House from other Aerocity hotels? Within Aerocity, we are not in comparison with any other property. We just happen to be in this district. The only other hotel which is a lifestyle hotel is the Hyatt Andaz but the scale is very different. They are about 500 keys while we are boutique.

How is the business environment for the UK hotels currently? Doing good. With Brexit, it has been a bit uncertain for hospitality particularly. As the pound went down we became more appeal-

The niche has already been created, and yet remains a process of creation. At the Aerocity hotel we see a lot of bankers, guests with a taste for arts and people who like plainness and simplicity in design. We have a lot of repeat guests as well. The other Indian property is more luxurious. That’s more for couples coming in for the weekend. For example, we are more of less already sold out for Valentine Day celebrations. There is some romance in that property. We also have film shoots, magazine covers and a whole set of different audiences.

ing for the Europeans and the American travellers and that is our key audience. We saw an increase happening this year. Within Reading, which is a more resort property, we also saw an increase because those from UK who were planning on holidaying chose to stay within the country. We don’t know what will happen when Brexit happens.

What is the profile of guests targeted for the two properties? The niche has already been created, and yet remains a process of creation. At the Aerocity hotel we see a lot of bankers, guests with a taste for arts and people who like plainness and simplicity in design. We have a lot of repeat guests as well. The other Indian property is more luxurious. That’s more for couples coming in for the weekend. For example, we are more of less already sold out for Valentine Day celebrations. There is some romance in that property. We also have film shoots, magazine covers and a whole set of different audiences.

Apart from social media what else are you doing to sell these two properties?

Sell in the sense we have the standard channels of GDSs etc. and travel agencies. For marketing, we do participate in certain trade fairs. We do a lot of online marketing which we believe is the way moving forward. We are more driven through an online strategy.

What next with Roseate? I believe you have plans for Goa and Jaipur?

We have plans for more properties in India and overseas. Next up is a Roseate in Rishikesh with 16 cottages on the Ganges. Hopefully it should open by the third quarter of this year. Goa and Jaipur are large projects. These are 25 acres each. We will hopefully start them soon in terms of development.

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Bekal gets a connectivity boost; Jet Airways to fly daily from Delhi to Mangalore ‘God’s own secret in God’s own country’ is how Vivanta by Taj – Bekal describes the majesty of Bekal. Despite everything going its way, Bekal story has not yet happened. One of the major impediment to its road ahead for success was inadequate air connectivity from the capital. With Jet Airways announcing a daily non-stop from Delhi to Mangalore starting mid-January, the glaring drawback has finally been addressed, raising hopes that Bekal will find more prominence in Kerala’s tourism offerings. By TF Bureau

ucked in the western coast of India, Bekal is a small town in Kasaragod district of Kerala. Crammed between Western Ghats to its east and Laccadive Sea to its west, it is often termed as the land of one of the most well-preserved forts – Bekal Fort. Shaped like a giant keyhole, the ramparts of the fort provide a breathtaking view of the Arabian Sea. Given Bekal’s languid and pristine surroundings, it ought to have gained serious prominence in the tourism landscape of the region. With hotels like The Lalit and Vivanta by Taj already in operation, and the likes of Marriott in the offing in the coming year, there is no dearth of quality accommodation either. Bekal’s Achilles heel has been restricted air connectivity with no direct flights from Delhi to Mangalore (the closest airport located at a distance of 70 kms.). However, this evident shortfall, too, has been finally corrected. Jet Airways has recently announced a daily non-stop connection between Delhi and Mangalore, and will press into service a 160-seater Boeing-737. It is important to note that Air India had started a

same. “A light and sound show should start at the Bekal Fort some time soon. A crafts village is expected to open in another couple of months,” he said. Taking stock of road connectivity to Bekal from the Mangalore Airport, he said that road connectivity to Mangalore airport had improved by leaps and bounds, and the hotel was hardly an hour and a half drive from the airport. “The four-lane highway on the Karnataka side has already been done, and the stretch on the Kerala side should be completed in some time, linking it to south Kerala,” shared the Chairman. Lauding the infrastructure of Mangalore airport, he also informed that the “entire Karnataka coast is being developed on a large scale to leverage its ports for enhanced connectivity.” Adding that to give a fillip to road connectivity within the region, the Union Minister for Road Transport and Highways Nitin Gadkari had promised a sum of 5000 crores for strengthening the road network, he said “regional connectivity scheme will help movement from Karnataka to Kerala and vice-versa.” Beside the direct connect to Mangalore, and several flights to Bengaluru, the

The entire Karnataka coast is being developed on a large scale to leverage its ports for enhanced connectivity. flight service some six years ago, which was discontinued owing to inadequate traffic. Commenting on the recent development and the future of Bekal as a tourist destination, Dinesh Khanna, Chairman – Vivanta by Taj – Bekal, Kerala asserted that the government was actively engaged in promoting the entire region and a number of initiatives had been set in motion for the

presence of several top hotels in Coorg area, too, were adding to footfalls in Bekal, he said. “Sea planes are expected to be unveiled in Kerala in a couple of months, which will certainly add more teeth to the state’s tourism profile,” Dinesh Khanna said. Sharing some details about Vivanta by Taj-Bekal, Dinesh Khanna detailed that the hotel had been consistently clocking an

There is a lot of MICE movement happening. We have been hosting a number of conferences and events that take up as much as 20 to 40 hotel rooms. We have also successfully hosted a few weddings. Celebrations and group stays have been received at the hotel too. A number of smaller shops selling jewellery and ethnic shops dealing in silk sarees make it an attractive prospect for travellers from various hues of life. Dinesh Khanna Chairman, Vivanta by Taj - Bekal, Kerala

occupancy rate of over 70%, round the year. The hotel is also known for its spectacular spa – Jiva Grande Spa, and health and wellness segments have a considerable weightage in augmenting overall footfalls. “The idea is to tap the health and fitness segment, and have tourists come in for Ayurvedic messages and extensive therapies for seven to ten days, or more,” he detailed. The hotel attracted a fair number of foreigners, who roughly accounted for almost 30% of its total footfalls, beside expats living in India. “There is a lot of MICE movement happening as well. We have been hosting a number of conferences and events that take

up as much as 20 to 40 hotel rooms. We have also successfully hosted a few weddings,” explained Dinesh Khanna. “Celebrations and group stays have been received at the hotel too. We have 70 rooms on offer,” added the Chairman. Informing that the hotel was gearing up to host a large conference of doctors, where the whole hotel had been booked for two and half days, he also asserted that while Bekal was indeed a small town, there were plenty of shopping options at hand. “A fair number of smaller shops selling jewellery and ethnic shops dealing in silk sarees make it an attractive prospect for travellers from various hues of life,” he said.

Jal-Mahotsav gives Madhya Pradesh its adventure edge

adhya Pradesh has been steadily developing adventure to its product portfolio, in order to diversify its overall mix. For long, known for wildlife and for pilgrim tourism, the recently held second edition of Jal-Mahotsav helped establish the Hanumantiya Tourist Complex, as an adventure destination. The venue has been developed at a cost of about `10 crore by Madhya Pradesh State Tourism Development Corporation (MPSTDC) on the backwaters of the dam on Narmada River. Tourists from near and afar participated in Jal-Mahotsav, amidst festive mood and enthusiasm and visited naturally formed islands in the Narmada backwaters. Tourists from faraway places were unanimous in their appreciation of the efforts and also the end result – described the place

as unique, highly beautiful, fascinating and tranquil. The massive storage of azure water has given the look of a very large water body, where tourists equally enjoyed bullock cart rides and enthusiastically participated in adventurous activities including kite flying, parasailing and water scooting. Cultural programmes were also held daily, showcasing the rich cultural heritage of the Nimar-Malwa region. Neighbouring Boriyamal Island, about 15 km from Hanumantiya by motorboats and Jal Pari, also proved a big tourist attraction as they took the Reva cruise. Hanumantiya Tourist Complex is in Khandwa district and is 130 km from Indore. It is 150 km from Maheshwar, 85 km from Omkareshwar and 48.5 km from Khandwa. From Bhopal, Hanumantiya is 300 to 350 km, depending upon which route you take.

hote ls + re sorts

Golden Tulip, Goa

L - R - Saurabh Chawla, Pierre-Frédéric Roulot, Anil Madhok, Ajay K. Bakaya

Louvre Hotels Group acquires majority stake in Sarovar Hotels, expands portfolio In a recently held press conference, Louvre Group has announced acquisition of a majority stake in Sarovar Hotels. However, despite repeated questions from the media, senior leadership from both the group refrained from divulging the commercial terms of the arrangement.

By TF Bureau

n yet another acquisition which is likely to have far reaching implications, especially, in the midmarket segment, Louvre Hotels Group, 2nd largest hotel group in Europe, has announced its acquisition of a majority stake in Sarovar Hotels, the largest

independent Indian hotel chain in terms of hotels and presence. The group has decided to become a majority stakeholder in Sarovar Hotels, an Indian company made up of 75 hotels on the premium, mid-range and budget sectors, through 3 leading brands – Sarovar Premiere, Sarovar Portico and Hometel. After launching a scheme to strengthen its

positions in China and South-East Asia, Louvre Hotels Group has continued to boost its presence in South Asia, keeping up with the region’s constantly growing leisure and business tourism. The European hotel group continues to roll out its international expansion plans with this, its first investment of size in the Indian subcontinent.

There will be no change in management of the Sarovar Group and the existing team will continue to manage the hotels under its brands. Both hotel groups have shown a shared desire to continue developing Sarovar Hotels brands. This platform is also expected to sustain the development of Louvre Hotels Group brand which has been present in the Indian sub-continent since 2007 and currently manages 22 hotels under its Golden Tulip umbrella brand. Reacting to the development, Anil Madhok, Executive Chairman, Sarovar Hotels said“over the last two decades, Sarovar Hotels has grown to be one of the fastest growing hospitality chains in India. The association with Louvre Hotels Group will help us to spread our wings further and we will continue to develop our brands. With local and international capabilities, we aim to be the leading brand in the business and bring in major benefits to our guests.” “We are deeply glad with the tie-up with Louvre Group of Hotels. We are looking forward to exciting times. In today’s global market, the way to grow is no longer in isolation. You cannot grow in isolation. You have got to be a part of the larger group and the larger group is part of a larger group. That is the way the system is. Like I was telling somebody, running hotels at one time we did not even have a sales department. Now things have changed quite dramatically. We are extremely pleased that we have been able to reach a tie-up with the Louvre Group. All their strength will benefit us in our expansions in India and Africa,” he added. Addressing the media gathering, Ajay Bakaya, Executive Director, Sarovar Hotels called the development a unique arrangement, stating that “this is the first combination, the first cocktail, of a large Indian managed company that remains Indian, and a large multinational company with French and Chinese affiliations with strong European roots – which bring us the technology and the reach across the world.” Pierre-Frédéric Roulot, CEO Louvre Hotels Group shared that with this deal, Louvre Group had substantially furthered its presence in India. “Number 2 in Europe, Number 1 in China, and now a leader in India, we really are a major global player, present in all major markets, and in all the hospitality segments. Sarovar is a fantastic platform, very promising for the future, mostly due to the professionalism and the local expertise of its smart team,” he emphasized. Sharing the philosophy of the group, Pierre mentioned that “The philosophy of our group is to respect people.” Stressing that Louvre Group was very respectful of the old platform they had on board, he said “we are not a global multinational group, we are a global multi local. And, we have partners all around the world – local partners. We never send expats everywhere in the world. We have a strong and a small team. We try to use the strength of the local partner. That is why Sarovar is a very big move for us. We know that the size of Sarovar and Golden Tulip in India, also, and whatever we could bring on board – the Chinese synergy and OTAs – we could develop. I will be very proud when I open my first Sarovar in Paris, or in the USA.”

online: Phocuswrig ht

Increased fundings intensify competition; mobile driving penetration of OTAs

India, Japan and China lead in the mobile gross bookings share in the apac region, signalling a decisive shift towards mobile platform as the preferred mode for bookings and other travel related enquiries. In a dynamic marketspace, these changes are only going to happen at a more rapid pace, indicates trends put forth by Phocuswright. The Phocuswright conference, slated to be held from 28 Feb - 2nd March will examine these unfoldings and more, as leaders of the online space from the APAC region come together under one roof.

hile rising Internet and smartphone access fueled growth in Asia Pacific (APAC) in 2016, varied infrastructure development, digital payments adoption and regulations make for an uneven e-commerce landscape across the region. Phocuswright’s Asia Pacific Online Travel Overview Ninth Edition: Online Travel Agencies analyzes the competitive dynamics throughout APAC, with insight into online travel agency (OTA) gross bookings and growth rates. The report takes a deep dive into the four major OTA trends in APAC. APAC is the world’s third-largest OTA region: Gross bookings hit US$44.5 billion in 2015, up 15% over 2014 and are forecasted to reach $96.5 billion by 2020.

Incumbent OTAs face competition – and a threat of displacement – from emerging intermediaries, which are tapping into new categories, attracting investor dollars and gaining consumer traction.

4. Consolidation Hits APAC Shores

As the region’s online travel industry matures and growth softens, major e-commerce players and OTAs have made notable investments and acquisitions to strengthen their positions in several markets.

1. APAC Is the Fastest-Growing Major OTA Region Worldwide

Internet and smartphone penetration continue to rise, supporting travel bookings’ migration from offline to online channels in the region. With relatively underpenetrated online travel markets such as China, India and Southeast Asia fueling OTA growth, APAC OTA gross bookings grew 21% in 2016.

The supplier market structure also adds to OTA growth in the region. Broadly, the APAC air market is crowded and the hotel segment is highly fragmented, offering OTAs an advantage in aggregating and distributing varied content in one place.

2. Mobile Is the Norm

With ever-increasing smartphone penetration, APAC OTAs are allocating more resources toward mobile product development and marketing. Abetted by sales via apps, mobile share of OTA gross bookings in China hit 45% in 2015 – the highest in the world. As technology companies, OTAs have a strong lead over suppliers across markets when it comes to mobile development and products. While suppliers largely focus on and distribute a single product/segment, most OTAs distribute an array of products within a single mobile platform, thus appealing more to consumers. OTAs accounted for the majority of mobile gross bookings share in the region in 2016: India (86%), Japan (54%), China (52%). Combined OTA mobile gross bookings for China, India and Japan were $14.7 billion in 2015, up 52% year-over-year. Continued discounting and price wars on mobile, however, dragged down transaction values (and put pressure on revenues) particularly in China and India, restraining OTA mobile gross bookings from growing at a faster rate.

3. Online Travel Funding Swells, Competition Intensifies

Aggregate publicly disclosed funding to APAC digital travel startups exceeded $14 billion from 2005 through 1Q16, accounting for 43% of global funding. New entrants are challenging the established order and deploying capital toward price wars to win customer loyalty. Funding to the region’s online travel companies has accelerated dramatically in the last decade; Chinese startups attracted 75% of the total regional funding.

As consolidation looms in the region, it’s eat or be eaten for APAC OTAs. Want more information on OTA trends in the region? Get it straight from the leaders of APAC’s biggest OTAs at Phocuswright India (February 28 – March 2, 2017, in Gurgaon, NCR, India). Phocuswright India provides an unmatched opportunity to meet, learn from and collaborate with Asia Pacific’s top decision makers. Explore the trends, technology and turmoil affecting the Asia Pacific travel market. See industry innovators during Battleground. Hear from the most influential travel leaders during Center Stage. Find practical advice you can put to work in your own business during workshops.

This year’s program features several sessions with APAC’s largest OTAs:

◗ Joint Interview: MakeMyTrip and ibibo Group. Two of India’s largest online travel companies have merged. Hear from Ashish Kashyap, co-founder and president, and Rajesh Magow, co-founder and CEO, on where they go from here and what it means for the rest of the market. ◗ Keynote: Yatra.com. Hear from Yatra’s co-founder and CEO, Dhruv Shringi, on distribution, competition, discounting and running an OTA in the public eye. ◗ Joint Interview: Alitrip and Paytm. Step by step, Alibaba has emerged as a prominent force – and investor – in the Chinese digital travel distribution space. Hear about Alibaba’s travel ambitions through a combined interview with the heads of its travel businesses in China and India, Tony Duan and Abhishek Rajan.

View the full program here.

This year’s speakers include: ◗ Amanpreet Bajaj, Country Manager, India, Airbnb ◗ Albert Pozo, President, Amadeus Asia Pacific, Amadeus IT Group S.A. ◗ Oliver Hua, Managing Director, APAC, Booking.comGeeta Jain, CEO, India, Carlson Wagonlit Travel ◗ Alex Kaluzny, Chief Technology Officer, Egencia ◗ Hai Zhuang, SVP & COO, Tujia ◗ View all speakers Register now to network and learn from Asia Pacific’s most innovative thinkers and leaders in the hospitality, travel and tourism industry.

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HICSA is widely viewed by global industry leaders as the premier hospitality event for the South Asian region. Last year, the conference brought together 500 delegates from across 21 countries, with overwhelming participation from hotel owners, investors, operators, bankers and industry specialists sharing their best practices, new ideas and latest market trends. April 5-6 2017 Grand Hyatt - Mumbai

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citie s and state s

Kerala: Plans to market Kochi Biennale globally; Australia, East Asia on the radar Buoyed by the success of 3rd Kochi-Muziris Biennale, Kerala tourism department has set its sight on diversifying its tourism products by focusing on adventure tourism, beside marketing Kerala as the “land of Biennale”. Also on the radar is highlighting state’s religious sites and destinations to further boost religious tourism in the coastal state, shared U V Jose, Director, Kerala Tourism Department. By shashank shekhar

erala state tourism department is buoyed by the success of the third edition of the Kochi-Muziris Biennale 2016. Traditionally a major traction among tourists heading to the southern state, the third edition has been a larger success, especially in taking the festival beyond the realm of art lovers to locals and visitors alike, said U V Jose. Arguing that while on the management front, there was some confusion over the government’s role in organising the event in the first edition, issues have been ironed out. It is to be noted that the state government did provide all the necessary financial support right from the inception of the festival. “A sum of seven and a half crores has been earmarked for the event. Also, to ensure smooth coordination, the state government has formed a committee under the chairmanship of the District Collector – which will look at plugging loopholes to ensure smooth running of the festival. The state government would provide the infrastructural support. It will still be carried out by the trust with the government’s support,” he said. Calling the festival an apt example of how to manage a public private partnership, he said that the festival has been seen as being run by the government and not a private trust – which illustrates the success of the PPP undertaking. Kerala tourism has spearheaded marketing the festival as a major tourism product of the state, which is substantiated by the fact that the state tourism department has allocated a sum of six crores to create visibility around the Biennale in the national and international markets. “We are using the festival to promote Kerala as a land of Biennale,” he informed. Taking stock of the recently announced

A sum of 7.5 crores has been earmarked for the event. Also, to ensure smooth coordination, the state government has formed a committee under the chairmanship of the district collector – which will look at plugging the loopholes in ensuring smooth running of the festival. The state government would provide the infrastructural support. It will still be carried out by the trust with the government’s support.

U V Jose Director, Kerala Tourism Department

Kochi-Muziris Biennale has emerged as a successful undertaking and is an apt example of how to execute a Public-Private partnership. demonetisation and its consequential impact on tourism, domestic and international, the director said “we are having real problems as far as domestic tourism is concerned. We did a survey and it suggests that there was a 2030% drop in numbers and similar quantum of cancellations.”

He also added that the worst hit from the decision were small-time hotel owners and houseboat operators who were not finding many takers. “We expect this situation to continue, at least, for some time until the situation returns to normalcy,” he noted. While the situation was a little better on

the international tourism front, there were signs of distress, owing to reduced capacity to spend money by international tourists, revealed U V Jose. “The real issue is that we have been positioning tourism as a driver of the local economy, handicrafts and eateries. While cancellations have been in tune of only 10-15%, international tourists are not having adequate cash on themselves to support local artisans, or to buy their produce, creating a lull in the local economy,” he shared. “Kerala’s tourism is based on community development, but international tourists are just not mentally prepared to spend right now,” he added. The state tourism has also stepped in on its efforts to further diversify the tourism profile of the state by working on developing products related to Christian heritage. The state tourism plans to develop, and has mooted digital content on Christianity in the state, five short movies and a microsite with over 200 photos and 225 web pages. These movies would focus on different aspects of Christianity – which include mural paintings, pilgrim centres, cuisines, architecture and literature, among others. These short movies would be marketed through Youtube and state tourism website. The project is likely to cost the exchequer a sum of around 49 lakhs, and is expected to be wrapped up by the end of March next year. Commenting on the development, U V Jose shared “the project has been given to an agency. We understand that we need more products and destinations to market the state in the international and national arena, and it is an effort in that direction.” Noting that it would add more lustre to the cultural offerings of the state, he said “there are several religious properties and sites pertaining to different religions and it holds tremendous potential in attracting footfalls.”

After Ayurveda and Backwaters, Kerala to push for stronger footfalls through the Spice Route project and adventure tourism segment With plans to leverage the abundant rivers and mountains in the state, Kerala Tourism is all set to woo young travellers looking for adventure related activities. Also, the long mooted Spice Route project is expected to move forward in coordination with 31 participating countries, beside UNESCO.

aving tasted considerable success with the 3rd edition of Kochi-Muziris Biennale, the state tourism department has set its sight on 2017. U V Jose shared that the state’s foray was going to be based on the twin pegs of destinations and products and robust marketing to create more visibility. Detailing some of the likely steps in the offing, he said “on the marketing front, we understand that we are doing well and need to continue our focus on the essentials.” Highlighting that the state tourism department was rolling out a project called ‘Green Carpet’, to assist stakeholders develop basic amenities in and around tourist sites, he mentioned “we will help stakeholders develop basic necessi-

ties like toilets and waste management systems, adequate lighting, signages’ and other facilities to ensure that tourists have a holistic and trouble-free experience while their visit to Kerala.” “It is essentially a 10-point agenda that we wish to work on,” he added. While Kerala’s success in positioning itself as the go-to destination for tourists seeking Ayurveda and the backwaters has been exemplary, it now aims at adding more variety to its tourism bouquet, noted the director. “We have done extremely well in courting tourists as far as backwaters and Ayurveda are concerned, but now we would like to attract adventure seekers with the vast repository of flora and fauna in our midst,” U V Jose said.

He said that on the international tourism front, Spice Route project was an ambitious undertaking, and while it was a top priority for the state government, given the involvement of 31 countries, it was going to take some time before it could materialise. “We have taken the lead in this, understanding that we can position ourselves as a leader, and are working in close coordination with the ambassadors of 31 countries involved in this project, beside UNESCO,” he shared. Also, the state tourism has set its sight on East Asian countries after a relentless campaign in Europe and the Americas in the past. “We would be focusing on Australia this year, apart from some other East Asian countries,” he told us.

citie s and state s

GTDC eyeing to develop coastal circuits under Swadesh Darshan, says Nikhil Desai Nikhil Desai, Managing Director, Goa Tourism Development Corporation, in an exclusive interview to TF, outlined the vision for state tourism in 2017. While the state will continue its efforts in creating infrastructure, it has mooted augmenting coastal and religious circuits under the centrally sponsored Swadesh Darshan scheme. Excerpts of the interview follows: By TF Bureau

hat are some of the key engagements and projects in store for 2017? Could you share some of the likely initiatives on branding and marketing front, also on the product augmentation front? A new year always comes with new hopes, aspirations and time bound plans to complete projects and initiatives over the next 12 months of the year, be it activities, events, infrastructure development and so on. If you have seen, the last four years have been packed with projects and initiatives unique to Goa and in many cases unique to India as well. We commissioned adventure activities like duck boats, hot air balloon rides, heli joy rides, motorized paragliding, cycling tours, scuba diving, and infrastructure projects like the multi-level car parking project, refurbished Fort Tiracol hotel into a luxury Boutique resort, renovated Panjim Residency, gave a facelift to temples and churches, heritage monuments, improved tourism locations and accesses to tourist spots, undertook beautification projects at tourism sites and so on. We aim at maintaining the speed and momentum in 2017 as well and will undertake several new tourism development projects and initiatives. We plan to start work on the Reis Magos to Panjim ropeway, expedite the project on the second and new Institute of Hotel Management at Farmagudi, plans to develop our properties at Britona, Miramar, Mayem, Anjuna, develop the old Central Jail into a heritage tourism spot, provide public utility services on the beaches are underway, and under the Swadesh Darshan scheme we propose to develop religious and coastal circuits. New adventure activities like segway tours, Hop On and Hop Off bus tours, horse riding, bungee jumping and many more will also commence. We have forwarded several proposals for

funding under the Swadesh Darshan scheme of the Central government and will fast track projects accordingly. We already received `99.99 crore in the first phase under the Swadesh Darshan scheme. Our new tourism master plan and policy should also be out and this vision document will go a long way in guiding and directing Goa Tourism for better planning and execution of its projects and initiatives.

We aim at maintaining the speed and momentum in 2017 as well and will undertake several new tourism development projects and initiatives. We plan to start work on the Reis Magos to Panjim ropeway, expedite the project on the second and new Institute of Hotel Management at Farmagudi, plan to develop our properties at Britona, Miramar, and under the Swadesh Darshan scheme we propose to develop religious and coastal circuits.

While tourism in the state has taken gallant strides, some of the major bottlenecks like the creation of a Goa tourism board and relaxation in the stringent rules pertaining to Coastal Regulation Zone – which could jettison weddings segment footfalls in the state – remain to be addressed. How is the tourism department addressing these concerns?

Coastal Regulation Zone matters are sensitive and dealt with appropriately as per the law. It is important to have checks and balances to ensure that activities be it tourism or any other is carried out in a regulated manner. The Department of Tourism and Goa Tourism Development Corporation ensure that all stakeholders are under the ambit of the Tourism Trade Act, and that all tourism related businesses are conducted as per the provisions of the Act and rules, guidelines and law. In addition to provisions of the Tourism and Trade Act, there are other agencies who are keeping a close watch on tourism activities, especially when it comes to environment, excise, panchayats and other local bodies etc. Goa Tourism does not interfere in their jurisdictions. Hence tourism stakeholders have to ensure that they follow other guidelines apart from the Tourism and Trade Act for smooth conduct of tourism business in the State. With regards to the tourism promotion board, Goa Tourism is working on this. In the meantime, Goa Tourism had constituted a State-level Marketing and Promotion Committee comprising of experts from

Nikhil Desai MD, Goa Tourism Development Corporation

the tourism sector. Their experience and expertise has helped Goa Tourism steer in the right direction over the last three to four years with regards to marketing and promotion and has generated good results for Goa during the last four years.

What has been the latest developments on the river and cruise segment front? What will it take to make the best of these assets that are yet to be fully tapped? Goa is fully endowed on these fronts and yet it has not materialized, as it ought to have? What is holding it back? This is not true. In fact, during the last two years, Goa Tourism has tried to evolve and shift focus from beach tourism to other assets like hinterland tourism, marine tourism and alike. Our seaplane project and duck boat

(amphibious vessel) adventure activities will be making optimum use of the State’s inland waterways. Both these initiatives are awaiting permissions and once obtained will be commissioned. Soft launches have been conducted successfully and it is expected to take off in this current season. Special circuits and joy rides using the State’s river waters have been chalked out and will give tourists an insight into Goa’s backwaters, hinterlands etc. Scuba diving, snorkelling, angling are some other water based activities which are picking up. Goa’s river waters are also an attraction for yachts and sailing expeditions and competitions are organized often. Water based sports tourism is getting popular. We have luxury cruise liners sailing to Goa with foreign tourists. This year we are expecting a bigger response.

E-visa initiative has turned Goa into an important port of arrival; well prepared to back the demonetisation drive, says Nikhil Desai

Having already initiated a number of measures to facilitate cashless transactions, GTDC has no reason to worry on account of the government’s decision on demonetisation, which was evident by the footfalls that has remained unfazed to the unfoldings.

emonetization has had an impact, in large and small measure, across the country. Given that Goa hosts a large number of tourists, domestic and international, what has been the impact of the government’s diktat on Goa’s tourism revenue? And, how long do you expect this to continue? Will this be a temporary blip, or will it have a long-term impact on the canvas of travel and tourism?

Go Tourism supports digitization of the economy. Goa, like the rest of the country, took the demonetization initiative of the central

government within its stride. It was only at the initial stage that there was a minor impact but things stabilized and the tourism sector limped back to regular business within no time. We at Goa Tourism and GTDC had no reason to panic as initiatives to go cashless had begun months ago. In fact, Goa’s tourism sector was abuzz during the peak season (Nov-Dec) and continues to be bustling even today.

Given that cashless transactions are on the upswing, how are you aiding

stakeholders to move towards the online space?

As I mentioned, Goa Tourism and GTDC already had its cashless systems in place and had no reason to panic. Our residencies and tourism services were all equipped with e-modes for payment and tourists co-operated in every possible way after November 8, 2016 with regards to cashless payments, bookings etc. The GTDC also took up awareness drives with other tourism stakeholders to facilitate a smooth transition to cashless payments and we got an encouraging response. So far, the transition is

going effectively and smoothly.

On the outbound front, which countries would be a top priority? Goa has done well with Middle East in the monsoon season. In that light, which geographical regions and countries, to be specific, would be important for your outreach? We are marketing and promoting Goa Tourism across the globe as a 365-day holiday destination. Every market is important for us be it Europe, Middle East, South East Asia, Scandinavia etc. With the introduction of the Electronic Tour-

ist Visa regime, Goa has become a key port of arrival for foreign tourists from 150 countries from all across the globe. We are aggressively marketing Goa to the countries in the ETV regime and the response is encouraging. While Russia dominates the inbound list, the UK is also a very important market and direct flights to Goa are increasing every season. We can expect to see a surge of tourists from this segment. Goa Tourism does not miss an opportunity to make its presence felt at all key international events and we also use social media platforms to promote Goa Tourism widely.

Outbound: cross curre nts

Aggressive marketing needed to leverage ‘Incredible India’ campaign: TAAI President In a freewheeling interview on the sidelines of an event hosted by Abu Dhabi Tourism & Culture Authority, India Office, Sunil Kumar, President, TAAI put forth some of the challenges confronting the industry in 2017. Commenting on the relentless onslaught of OTAs in the past decade, he noted that conventional travel agents needed to take to the online space for retaining their existing clientele base rather than acquiring new customers.

Sunil kumar President, TAAI

By shashank shekhar

hat are some of the challenges that you envisage in 2017?

2017 started a little difficult, posing a bigger challenge for our travel agents, because our leisure market is badly affected (by demonetisation). The leisure traffic in India has been used to, partially, pay through banks and partially spend their savings in cash. Now, those savings are all back in the bank. So, for them to take it out and spend on travel is not as much a priority as protecting it first, and then using at a later date. Six months down the line, I anticipate that things would slowly start springing back to normalcy.

It may sound a paradoxical statement, but handling a passenger going outbound to another country is much easier than handling them to go into India. I say this because many parts of India do not rise up to the level at which others are geared up in terms of technology, outreach, connectivity and professionalism offered by local agents. The vendors in the domestic market have to be those whose capability must multiply right now.

move. Our minister is a very big plus point. Mahesh Sharma is too good, but I think they need to get the associations into a stronger act. Most of the government’s initiatives are centred around Delhi, it needs to go beyond Delhi and go all over India. That is where the Indian market is.

What is your understanding of the constant rise of OTAs? Do you reckon that smaller travel agents are facing an existential threat?

The theme of our convention (TAAI convention held in Abu Dhabi) was ‘tomorrow begins now’, primarily focussing on the challenge that you have stated, and in order to enhance the capability of an individual travel agent to be able to offer convenience more than cost to their customers, they need to go online. What would happen is that the online industry which was dominated by, may be, numbers that you could count is growing and over a period of time the growing numbers would multiply. So, there would be more online companies. If you take a look at a medium-sized travel company, now they are convinced that they do not need to get online to get new customers. They need

The e-visa scheme has been one of the strongest steps taken by the government for tourism in the recent past. But right now, there is a cash crunch and it will have some effect on the industry. Secondly, the India inbound, I think the government needs more aggressive. I do not see ‘Incredible India’ as a brand very aggressively marketed. If you take a look at global magazines, compare the tourism boards that are in circulation, globally, vis-à-vis ‘Incredible India’ in circulation. So, there is a big gap. The good thing that has happened, off late, is the visa-on-arrival. It is a very strong

online to maintain their current customers, because unless one does not offer convenience to their consumers who wants to be book a ticket at twelve or one o’clock in the night, when you are not awake, and wants to book hotels when he is free, on the move, then it becomes important for everybody to go online. So, I keep telling my members that you need to go online, primarily to first maintain your customers. We are not even

taking about new selling, because the needs of our own customers are growing. If I am able to deliver to the existing customer base, I am happy because their needs are growing. Their growth is my growth, automatically. I am not even looking at a new customer, but I am threatened that I will lose some of my existing customers, because I do not offer them the same convenience that somebody else is offering. Therefore, I need to be online.

Consistently, industry stakeholders have been asserting that the future of Indian travel lies with the domestic leisure segment. How much do you agree with this assertion, and do you reckon that we should train our gun to make the leisure domestic segment happen in the country, instead of focusing our energy in courting more international inbound?

There is a definite market for that segment. In my opinion, I do not think that it is a market which is so big. It may be big. I am not talking about numbers. I am talking about the sustainability of my office, and domestic tourism actually requires a lot more efficiency levels. It may sound a paradoxical statement, but handling a passenger going outbound to another country, or to many countries of the world is much easier than handling them to go into India. I say this because many parts of India do not rise up to the level at which others are geared up in terms of technology, outreach, connectivity and professionalism offered by local agents. So, what really has to happen is that the domestic market is huge in India, but the vendors in the domestic market have to be those whose capability must multiply right now, and on whom there is a greater dependence by all other agents in India. You actually need 100% B2B companies. You cannot have B2B and B2C. There should be dedicated B2B companies in India, and once we have dedicated B2B companies in India then the domestic segment would become a great opportunity.

Hayes & Jarvis predicts hot destinations for 2017; New York continues to remain the top draw

ew York remains the top selling destination for long-haul operator Hayes & Jarvis, followed by Thailand and the Maldives. Las Vegas and the Maldives make up the rest of the top five destinations, according to the operator's latest Trends Report. However, it predicted Kenya would also sell well this year, having seen a whopping 103% rise in customers planning trips to the East Africa destination. Malaysia is coming back into favour too, said Hayes & Jarvis, which has seen a 37%

year-on-year increase in bookings to the southeast Asia country, and it is seeing a 24% rise in bookings to Sri Lanka, which has recently opened up more of the east coast to tourism. Brazil is benefiting from hosting the Olympic Games, which has led to a 54% rise in bookings for 2017. The operator said that while the most popular duration for long-haul holidays was still 11 to 15 nights, it had seen a 6% rise in longer durations, a trend it is expecting to continue. (As quoted in travelmole.com)

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Outbound: de monetisation

Demonetisation THE AFTER EFFECTS: INDUSTRY RESPONDS Short and medium-term leisure travel impacted; it is wait and watch for now Although the long-term impact of Demonetisation remained to be assessed, there was no ambiguity on it taking a toll on travel and tourism in short to medium-term, asserted Vasudha Sondhi, Managing Director, Outbound Marketing. A combination of absence of the ‘feel-good’ factor and availability of cash have stalled travel plans, forcing the industry to take a stock of the situation after the first quarter of 2017 – when the general budget is rolled out.

Smaller travel agents and tour operators are without any business. Discretionary travel has simply come to a halt, at least for the short-term. Domestic travel in short lead time has also come down because of two key components: firstly lack of cash and secondly, the absence of the ‘feel-good’ factor. However, it is still a wait and watch game for now.

Vasudha Sondhi Aaron wodin-schwartz Managing Director, Outbound Marketing director public policy, brand usa

haring that her organisation handled sales and marketing of hotels and destinations, and the sales teams having reported that the situation was “not that great”, she said “smaller travel agents and tour operators are without any business. Discretionary travel has simply come to a halt, at least for the short-term.” The impact has been varied, depending on where it emanated from. While some of the impact has been negated in bigger cities, thanks to the twin-fold reasons of school holidays, and visas and tickets booked well in advance, ensuring that international travel from metro cities have materialised, but “even in the bigger cities travel involving short lead time has taken a hit,” she said. “Domestic travel in short lead time has also come down because of two key components: firstly lack of cash and secondly, the absence of the ‘feel-good’ factor,” she added. Divulging that agencies that her organisation have spoken to have given them a mixed reaction, she said “some say that there would be a washout for the next six months. While some are saying that given that the budget announcements are due, it is expected that the situation would bounce back to normalcy after the first quarter.” Though it remains amply clear that leisure segment travel has been the biggest casualty of the cash crunch emanating from

the government’s diktat, MICE queries and business there in, however, has surprisingly remained unhindered. “Companies that are in the incentive groups are quite upbeat, still. Sectors like pharmaceuticals and insurance that are not really into the retailing business have remained immune to the prevalent cash crunch,” Vasudha Sondhi said. Taking stock of the impact of demonetisation on niche segments such as weddings, the MD shared that they represented a hotel group in Thailand which commanded a lion’s share in the wedding segment, and they, too, were “fully cognizant of the fact that the segment could take a huge hit in the coming months.” “However, it is still a wait and watch game for now,” she said. Sharing her understanding on the possibility of a tweak in itineraries on the part of the outbound on account of the looming cash crunch, she argued that it was a probability that itineraries could get affected in the short to medium-term. “Much of the long-haul actually happens between April to July. But, interestingly, travellers are neither saying yes nor no,” she said, indicating that a sense of indecision had crept in the larger tourism fraternity. Adding that travellers were playing a wait and watch game, she noted “they are waiting for the first quarter to unfold. It will depend on how the first quarter turns out.”

The General Budget is expected to restore normalcy.

Temporary blip a matter of consumer sentiment; future of the industry remains promising Rajeev Nangia, Chief Operating Officer, TRAC Representations continues to demonstrate faith in the strength of the Indian tourism industry and writes that once the sentiment of the Indian travelers is assuaged, which should be sooner rather than later, the Indian growth story will be back with a bang. BY Rajeev Nangia

ast Perfect – Present Tense – Future Promising

India has remained a perfect market in the past and had shown a growth potential in almost every sphere of economic activity, and had been clicking positive sentiments. All economic indicator graphs have been pointing upwards and registering a positive momentum. Various international destinations have been actively promoting their respective travel interests and have been gaining positive results. India has been the second fastest growing outbound market till the year 2016. However, in order to further boost the economy, the government took a step to eradicate shadow economy (black money), weed out corruption from the system and destroy counterfeit notes circulating in the country. The way forward chosen was “demonetisation” on 8th November 2016. India, since that day has seen people lining up outside banks and ATM’s to either deposit or exchange their old 500 and 1000 rupees bills or withdraw the new currency notes for their day-to-day expenses. Since the new currency was not enough to replace the entire old 500 and 1000 rupee notes, as it accounted for nearly over 85% of total currency in circulation, the estimated exchanging nearly `15,000,000,000,000, the government also embarked upon promoting digital payments through various modes of digital transactions and offering incentives to people making and accepting payments through this mode. However, the unexpectedness of

this announcement of demonetisation created sort of a panic and sudden fall in consumption (demand) for various products and services, ranging from basic day-to-day necessities to luxury and indulgencies. It is leading to a state of present being tense. The instant reaction was from people who were on trips overseas, wanted to come back to India, and cancellations were being initiated. Post this reaction, there was an announcement that people can buy tickets with old currency and there were reports of people buying tickets for their future travel, agents also dissuaded people from cancelling, as they would have lost heavily on cancellations fees. The silver lining is that New Year still saw many people travelling overseas and to domestic destinations. However now as we move forward, travel is facing the heat and leisure currently is no longer in the ‘must-to-do’ list. New bookings are hard to come by and people in general are adopting wait and watch policy, awaiting new rules that the government may come forward with. The exact impact will only be known once we have the figures in terms arrivals to various destinations for the month of November and December 2016. However, the general perception is downward trend of anything between 30% to 40%, irrespective of the sector and product. Based upon the general assessment of the market, next 3 to 6 months can be very challenging for travel and tourism, be it inbound, outbound, or domestic travel. Some also estimate that we should prepare for even

As the market corrects and remonetization takes place in terms of new notes (currency) made available easily without any limits as applicable currently from banks, and people adopting the digital payment systems, which is expected now to take some more time. However, it would not be wrong to mention that the future of the Indian market will continue to be promising, and one can expect unprecedented growths from India. Rajeev Nangia Aaron wodin-schwartz Chief Operating Officer, TRAC Representations director public policy, brand usa

negative growth from India in terms of arrivals in the near future. As the market corrects and remonetisation takes place in terms of new notes (currency) made available easily without any limits as applicable currently from banks, and people adopting the digital payment systems, which is expected now to take some more time. However, it would not be wrong to mention that the future of the Indian market will continue to be promising, and one can expect unprecedented growths from India.

The five things to monitor in the year 2017 will be:

◗ Direct Tax collections and its growth post demonetisation ◗ Implementation of GST ◗ Political implications of the demonetisation on the State election results expected in next few months ◗ The agricultural production post demonetisation ◗ The primary and most important will be consumer confidence and sentiments.

Outbound: de monetisation

Time for the cruise industry to take the wedding segment head-on; budget will make things clearer While the impact of demonetisation has been felt in certain pockets, dominated by trading communities, its impact has seized to be universal, reasoned Ratna Chadha, Chief Executive, TIRUN. She believes that the situation could turn for better after the announcement of the general budget. She also argues that it is a tremendous opportunity to take the wedding segment heads-on, given the novelty and convenience factor cruises bring into the equation.

ommenting on the impact of demonetisation, Ratna Chadha noted that the business of cruising was “fortunately insulated from cash transactions”, and therefore was likely to avert the fate that some of the other segments might incur. “We do not get involved in cash transactions as travellers pay through online means, and, also, our books are open to scrutiny,” she explained. However, she did concede that business had been impacted. She also asserted that while there has been visible impact, but it was not universal in nature, and was seemingly relegated to certain pockets. “Travel agents who buy itineraries from us are not really buying the way they used to. Certain pockets, especially areas dominated by trading communities, including Gujarat, Rajasthan and Kolkata have been affected,” she said. Stating that the inventory for the coming months, January, February and March, was already booked for them, making it difficult for them to ascertain the real impact, as of now, she said “tour operators that we have been engaging with tell us that the business is slow and there is a sense of uncertainty in the market.” Adding that once the situation became clearer, people would know what to expect, she said “although people are placing enquiries, but conversions are few and far in between.” She believed that any development which had monetary implications would

invariably impact luxury travel. “It is not a necessity. Big cars, branded items etc. Travel becomes a part of the gamut. People would rather wait to see how the situation unfolds,” she said. Explaining that the impact of the decision was not much to do with travel itself, but with other expenses related to travel, she substantiated “Instead of uber luxury, people may opt for lower levels of facilities to bring down prices. Cruising and vacation is only a part of the expense. Shopping, dining and other expenses requires cash component. It is the disposable income which is being curtailed.” Pinning her hopes on the first quarter of 2017 and the onset of the general budget, which could have elements of tax sops and eased corporate taxation in it, she suggested that it could help in picking-up sluggish business. On the question of whether the prevalent cash crunch could force a tweak in itineraries of the outbound, settling for some of the destinations in the vicinity, she opined that there were remote possibilities of the same. “I think there will be a status quo in that sense. There will be no decline in the traffic heading to America and European shores,” she said. She, however, maintained that South and Southeast Asian countries could witness a stronger surge of the Indian outbound. She informed that, in a first, they were in midst of deploying additional cruise liners in the region. “Apart from additional

I think demonetisation is a great opportunity to take weddings to cruises. There is a formal component of payment and there is tremendous savings on ancillary spending. A cruise liner is a one-stop shop where one can witness the ensemble of entertainment, food and other such activities. We are seeing a rising trend of weddings being organised on cruise.

Ratna Chadha Aaron wodin-schwartz Chief Executive, director public policy,Tirun brand usa

MICE segment faces cash crunch related to ancillary spending than the actual cost. People are travelling to lesser expensive destinations. deployment in South and Southeast Asia, I think added influx to the region may also be attributed to the fact that there are so many first-time travellers, aspirational travellers who would help boost numbers,” she explained. Noting that demonetisation was an opportunity to showcase that cruising was a segment different from others, and it had a ‘novelty’ factor attached to it, she reiterated that “agents dealing in large volumes may witness some decline.” Sharing an overview of the unfoldings in the MICE segment, she explained that her interactions with MICE organisers indicated that they were opting for comparatively lesser expensive destinations. “Those previously looking for MICE trips to the USA are now settling for Europe, and those heading

to Europe are planning jaunts in the Far East. The real issue is that the dealers who are being awarded these incentive trips do not have adequate money on them to do other things. They need to pay for their spouses. Ancillary spending is getting impacted,” reasoned Ratna Chadha. However, there is a silver lining amidst all the gloom that has been casted on the tourism industry post the decision to ban high-value denominations. “I think demonetisation is a great opportunity to take weddings to cruises. There is a formal component of payment and there is tremendous savings on ancillary spending. A cruise liner is a one-stop shop where one can witness the ensemble of entertainment, food and other such activities. We are seeing a rising trend of weddings being organised on cruise,” she concluded.

Demonetisation will help consumers take to the online medium; a short-term slow down in the offing Sharat Dhall, President, Yatra.com remains optimistic about the future of travel and tourism in the coming months, arguing that despite the note ban, air traffic and international footfalls, both, have showed promising signs. Attributing growing numbers to a gamut of budget accommodation option and the presence of LCCs, he believed that demonetisation would expedite the shift of offline users onto the online platform.

Sharat Dhall Aaron wodin-schwartz President, Yatra.com director public policy, brand usa

There were initial signs of hiccups, but talking about our perspective, business has been picking up across the spectrum. In fact, we have seen robust growth. The bigger trend, which might have been partially fuelled by demonetisation, has been the gradual shift towards budget accommodation and opting for LCCs. It is the understanding that convenience, transparency in pricing and availability of plethora of options would remove the need for transacting from offline sources.

hile many have expressed concern over the impact of the government’s decision of demonetisation on travel and tourism, Sharat Dhall left nothing in the realm of ambiguity when he emphatically asserted that their transactions remained robust, and there was no setback in business as far as Yatra was concerned. “There were initial signs of hiccups, but talking about our perspective, business has been picking up across the spectrum. In fact, we have seen robust growth,” he said. He noted that much of this growth could be attributed to the fact that their consumers were, any ways, used to the online mediums of payment, and used credit cards, debit cards and internet banking to process their purchase. “So, I do not think there will be any impact on them,” he said. Pointing towards the slump in oil prices which had led to highly “subdued” airfares, he said “If I look at the December base, compared to the last year, air fares are down by 20%, or so.” Another reason for the consistent growth in numbers had been the rise in budget hotel accommodation, especially in the online space, he maintained. “All of these factors have had a collective impact in bringing down the overall cost of foreign holidays to a significant degree,” he said. Supplementing his argument, he said “the bigger trend, which might have been partially fuelled by demonetisation, has been the gradual shift towards budget

accommodation and opting for LCCs.” “Travellers are, in a way, compromising to reduce their overall expenditure,” added Sharat Dhall. The cumulative effect of these developments has led to a growing interest in Southeast Asian destinations among travellers. “People are travelling to Dubai, Vietnam, Cambodia and others. Europe is not being looked at with the same vigour right now. I think it is also to do with the fact that it is winters, requirs longer stay and, by the virtue of being a long-haul getaway, are traditionally more expensive.” Sharat Dhall said. Reflecting on the impact of demonetisation in the coming months, Sharat Dhall remained “truly optimistic” that, in the medium to long-run, demonetisation would expedite the shift from offline to online travel space. “It is the understanding that convenience, transparency in pricing and availability of plethora of options would remove the need for transacting from offline sources,” he said. He cited growing air traffic numbers and international footfalls to allay fears that have created uncertainty in the market. He contested that despite the announcement of banning notes in November, “domestic air traffic increased by 20 percent during the same period.” “Inbound numbers are doing fairly well, too. I believe that the current scenario is a temporary blip and nothing else,” he reiterated.

Outbound: de monetisation

Outbound will remain unfazed to the cash crunch; we expect business to grow by 10-15% Given the nature of international travel, both, short-haul and long-haul, with bookings and itineraries ironed out well in advance, outbound has remained unfazed from the recent unfoldings, for now, informed Neelu Singh, CEO and Director, Ezeego1. Noting that the next couple of months were to bring more clarity on how the decision of clamping down on black money was going to impact the travel and tourism landscape in the country, she expressed confidence in the appetite of the Indian outbound in ensuring steady business for the industry in the coming season. Unfazed by the ongoing developments, Indian outbound is expected to head for the American shores in the same vigour as in the past.

We registered a 10% growth in outbound segment over last year. The cash crunch has also encouraged travellers to book all-inclusive packages including airfare, stay, food and sightseeing as they would only have to spend on shopping and personal expenses. So, while the move has impacted the travel industry at large, there is no downfall in the outbound travel numbers.

Neelu Singh CEO and Director, Ezeego1

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“I

t has definitely created a slowdown for the small-time agents as they predominantly transact in cash,” noted Neelu Singh, assessing the impact of the development. She, however, was quick to add that being an online travel portal, they had been constantly promoting cashless travel and “most customers pay online, or through credit or debit card or cheques.” While traditional agents have in ways, large and small, felt the pinch of the cash crunch, she, however, contested that the ongoing cash situation had little impact on their year- end bookings for international packages. “We registered a 10% growth in outbound segment over last year. The cash crunch has also encouraged travellers to book all-inclusive packages including airfare, stay, food and sightseeing as they would only have to spend on shopping and personal expenses. So, while the move has impacted the travel industry at large, there is no downfall in the outbound travel numbers,” Neelu Singh revealed. Attributing the steady rise in numbers, also, to booked tickets and planned itineraries well in-advance, she said “bookings to international

We are certain that the situation will be normal very soon and not deter travellers from travelling to their favourite summer destinations. Expect our outbound travel business to grow at least by 10% -15%. destinations, both, short- haul and long haul did not witness any change in travel plans as they were booked 2-3 months prior. As for the upcoming summer travel bookings, we have been receiving inquiries on all-inclusive group packages to Southeast Asian countries as well as to Europe and the USA.” On the question of whether there was a chance of a slump in numbers, as far as the outbound was concerned, she maintained that the industry needed to wait and watch on how the move unfolded in the next couple of months and affected the travel scenario. Sounding confident of a robust season, in the coming summer, sharing that while people were conscious of spending and choosing packages that met their budget, “Europe and United states being important summer destinations for most Indians, we don’t foresee any cancellations or postponement or change in destinations,” she explained. “We are certain that the situation will be normal very soon and not deter travellers from travelling to their favourite summer destinations. We expect our outbound travel business to grow at least by 10% -15%,” Neelu Singh added.

outbound : Abu dhabi

Abu Dhabi: Connectivity and luxury hotels aid in its foray to attract wedding outbound After having successfully hosted the recently held TAAI Convention, Abu Dhabi is likely to gain more prominence among the outbound. TF speaks with Bejan Dinshaw, Country Manager-India, Abu Dhabi Tourism and Culture Authority to understand latest trends and more.

By TF Bureau

hat is the larger tourism profile of Abu Dhabi? What is its USP as a destination?

Abu Dhabi as our tag line says- Your extraordinary story begins now; has a different story for each one of us. The destination caters to all age groups and has fun filled activities for everyone. Abu Dhabi

explains the term affordable luxury, as travellers can experience the luxury which the destination entails at a reasonable price.

What are your key source markets in India and how has the enhanced airconnectivity with the Jet-Etihad tie up helped in augmenting numbers?

All tier-1 cities were and will always remain our main source markets in India.

Bejan Dinshaw Country Manager-India, Abu Dhabi Tourism and Culture Authority

13TH HOTEL INVESTMENT CONFERENCE - SOUTH ASIA (HICSA) 2017 GRAND HYATT MUMBAI

But lately, we have now seen a new trend of moneyed travellers emerging from tier-2 cities travelling overseas. These cities hold great potential for outbound travellers who want to travel the world now. Keeping this in mind, the Etihad- Jet group is now entering into this market with their new upcoming flights from Chandigarh and Tiruchirappalli. The outbound traffic from these cities has been seen increasing two fold.

How big is tier-2 cities for you, in terms of numbers, and which regions or states would be core of your outreach in 2017?

This year we are paying more attention to the tier-2 cities. As mentioned above, these cities hold great potential. There are no specific regions per say, but all the cities hold equivalent importance for us. In order to keep in touch with the local agents, we have scheduled our road shows in February which will be covering Lucknow, Kolkata, Mumbai and Delhi.

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How has cinema tourism panned out for Abu Dhabi? Has the government incentivized cinema production or shooting in the country? What is attracting Indian film makers to Abu Dhabi?

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Niche Segments like weddings has gained traction among the Indian outbound, especially in the Middle East. How much of it has been tapped by Abu Dhabi, and how important is it in the larger tourism offerings of Abu Dhabi?

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Abu Dhabi has been seen as an upcoming destination for weddings. Abu Dhabi being about 3 hrs away from India endures luxurious hotels with comfort. With an option of 300 flights per week by Jet & Etihad group flying from 15 cities across India makes our destination all the more approachable. With in numerous options to shop and for gourmet, Abu Dhabi is the next big destination for overseas wedding option. Itâ&#x20AC;&#x2122;s a unique mix of culture, modernity, history and nature wondering in and around the city. Guests not only have wide range of shopping options, but they can also explore cityâ&#x20AC;&#x2122;s museums and art galleries and walk to the heritage village. If you think of a real royal wedding, Abu Dhabi is definitely the best option. Imagine getting ready within the golden walls of Emirates Palace and walk under Swarovski chandeliers on your big day. You also have other options like Park Hyatt at Saadiyat Island, Ritz Carlton, Shangri La and more.

outbound : Ne w york

New York: 2016 is another record year as the city continues its tourism effort holistically New York City is a true melting pot of cultures, languages and people, making it desirable to visitors from all over the world.

he City’s diversity

New York City comprises of five boroughs: the Bronx, Brooklyn, Manhattan, Queens and Staten Island, all community of eclectic, ethnically diverse neighbourhoods and melting pot of cultures through activities, museums, stores and restaurants, where you can meet people of different countries and sample exotic cuisine and products. Hop on the 7 subway line (sometimes referred to as the “International Express”) for a Queens adventure, where Himalayan, Indian and Latin American cuisine are part of an authentic Jackson Heights experience.

Through the year, there’s always something fun to do that doesn’t cost a dime – museum admissions, cultural festivals, holiday parades etc are some of the activities that can be experiences without any cost. Last but not the least, with more than 113,000 hotel rooms currently and additional 20,000+ rooms on the way by the end of 2019 throughout the five boroughs, visitors will find a wide variety of accommodations to suit all segments.

Safety

New York is and remains the safest large city in America, 2016 was the safest year ever in the history of New York City.

Groundbreaking “New” tourism products like new hotels, attractions and restaurants

New York City continues to provide unmatched “New” experiences to all travellers. Be it new luxury hotels openings in Lower Manhattan i.e. Four Seasons Hotel New York Downtown and The Beekman or boutique hotels in Brooklyn with the opening of The William Vale Hotel and 1 Hotel Brooklyn

Total visitors to New York surpasses 60 million for first time 15,000 jobs added over last year and hotel demand expanded by 1.2 million room nights sold

Mayor Bill de Blasio, Council Speaker Melissa Mark-Viverito and NYC & Company has recently announced that the City will welcome an all-time record 60.3 million visitors by the end of 2016, surpassing the 60 million visitor milestone for the first time ever, and representing the seventh consecutive year of travel and tourism growth for the City. The new figure is 600,000 visitors higher than the original forecast of 59.7 million announced earlier this year, and 1.8 million more visitors than last year’s revised year-end figure of 58.5 million. Travel and tourism now sustains more than 375,000 jobs in New York City, representing a gain of 15,000 jobs over the last year. “Not only has 2016 brought the largest number of visitors in New York City history, but it also caps off seven years of strong tourism growth and 15,000 more jobs for New Yorkers,” said Mayor Bill de Blasio. “More tourism means we have more people investing in New York City and are able to create more sustainable jobs for more people. New York is a culturally rich and diverse city, with so much to offer those who visit. I look forward to continue promoting this beautiful city and welcoming all those who visit in the future,” he said. To continue welcoming record visitation and boost winter travel in 2017, NYC & Company unveiled a new “Nonstop NYC” program comprising its popular vibrancy programs NYC Restaurant Week®, NYC Broadway WeekSM, NYC Off-Broadway WeekSM and an all-new NYC Attractions Week. The organization is also expanding its “See Your City,” “See it for Yourself” and Official NYC Family Ambassador campaigns to further encourage travel during the first quarter and beyond.

This year, visitors from the United States will represent a forecasted 47.6 million visitors while travellers from international markets will comprise an estimated 12.65 million international visitors, both alltime highs. Among all visitors, meetings delegates will comprise 6.15 million people. In 2017, NYC & Company is forecasting the City will welcome approximately 61.8 million visitors with 48.7 million domestic travellers and 13.1 million international visitors. Hotel demand in the five boroughs has grown this year by 1.2 million, generating 34.9 million hotel room nights sold by year’s end, an all-time record. Home to more than 111,000 hotel rooms, the City is also expected to add 24,000 new hotel rooms by the end of 2019, reflecting the nation’s most robust hotel development pipeline. A significant contribution to the City’s economy, hotel and sales taxes are estimated to contribute over $1 billion in revenues this year. Just in time for winter visitor arrivals, NYC & Company’s celebrated consumer programs will return in early 2017 with NYC Restaurant Week (Jan. 23-Feb.10), NYC Broadway Week (Jan. 17-Feb. 5) and NYC Off-Broadway Week (Feb. 27-Mar. 12). On the heels of the success of these programs, NYC & Company announced the first-ever NYC Attractions Week. From January 17-February 5, 2017, visitors and locals can receive two-for-one admission for tours, culture and performing arts at over 70 participants, including Big Bus Tours, Brooklyn Museum, Circle Line Sightseeing Cruises, Gray Line City Sightseeing New York Bus Tours, Lincoln Center for the Performing Arts, Madame Tussauds New York, Museum of Modern Art – MoMA, New York Water Taxi, On Location Tours, One World Observatory and many more.

International tourists will comprise an estimated 12.65 million, the highest ever.

Chris Heywood Aaron wodin-schwartz Senior VP, Global public communications, NYCusa & Company director policy, brand

Hotel demand in the five boroughs has grown this year by 1.2 million, generating 34.9 million hotel room nights. NYC & Company has unveiled a new “Nonstop NYC” program comprising its popular vibrancy programs. Bridge to open this February or unique attractions such as the 10-acre park called The Hills at Governors Island and the Transportation Hub Oculus with a variety of dining and shopping options. Not to mention New York is also home to New Dining Concepts from top culinary experts, Tom Colicchio opened his new eatery Fowler & Wells in the stunning new Beekman Hotel and Wolfgang Puck now has brought his luxury restaurant brand CUT to NYC.

Easy Transportation Access

All the above new and exciting venues, attractions can be easily accessible by the City’s affordable 24x7 subway system or through the ferry. The NY subway system’s has also seen a recent expansion with the opening of the Line 7 from Times Square to Hudson Yards (a large-scale development project under construction which will offer a new neighborhood of culture, commerce and cuisine) and also connect to the newly renovated Jacob K. Javits Convention Center, the northern part of the High Line and the Hudson River waterfront. The Staten Island Ferry provides a majestic view of New York Harbor, the Statue of Liberty and Ellis Island, romantic boat ride, for free.

New York City offers affordable

experiences through the year

NYC & Company offers twice yearly value programs to travellers to enjoy live theater, restaurants and attractions in New York City. These popular programs take place in Jan/Feb and Aug/September. The dates for the current ongoing programs are NYC Broadway Week (Jan. 17–Feb. 5), NYC Restaurant Week (Jan. 23–Feb. 10), NYC Off-Broadway Week (Feb. 27–Mar. 12), and the first-ever NYC Attractions Week (Jan. 17–Feb. 5) with 2-for-1 tickets to more than 70 attractions. Through the year, there’s always something fun to do that doesn’t cost a dime – museum admissions, cultural festivals, holiday parades etc are some of the activities that can be experiences without any cost. Travelers on a budget can visit nycgo. com/free for an update on the various freeand low-cost activity and events. Last, but not the least, with more than 113,000 hotel rooms currently and additional 20,000+ rooms on the way by the end of 2019 throughout the five boroughs, visitors will find a wide variety of accommodations to suit all segments. New shopping destinations, iconic attractions, world-class dining and live theater entice travellers to visit New York time and time again. Of course, they first need to get here, and we’re very fortunate with continued increases in air lift from all corners of the globe.

Niche: ag ritourism

Growing demand for organic food and wellness retreats driving Agritourism

A concept which involves elements of wellness, organic food and retreat rolled in one, the concept of Agri-tourism is finding growing numbers of takers in Indian cities and towns, writes Jyoti Balani. She engages with hospitality stakeholders to decipher some key trends in the growing segment, beside taking a look at how some of the hotels are making the most of the trend, also helping the growth of the tourism profile of the destination.

ndia is a country of villages, even when tourists visit our country, they make it a point to spend a few days in our villages to get the real flavor of India whether is it food, farming, etc. These days a lot of hotels, farmstays, homestays, organize for guests to experience these activities such as a fun ride on a bullock cart and tractor or picking figs, plucking and eating fresh pomegranates, sugarcane, oranges, mangoes, guavas, gooseberries, or other fruit orchards along with a stay in a village house or a farm style resort. In addition, encouraging Agri tourism on a professional basis serves as a source of additional income for farmers, farm stays and resorts. It also helps in bringing city guests and tourists closer to rural India which is the essence of our country. Sustainable tourism, village tourism or agricultural tourism as we call it in India is currently being taken very seriously by various hospitality ventures. It is also an attractive holiday concept for Indian travelers who always look for unique weekend trips with an exciting itinerary. These unique itineraries find favour with not just locals but also expat travelers who want to experience the local flavor of a region including the food. I was recently invited to one such unique weekend getaway in a pollution free zone of Satarathe rural district of Maharashtra. As part of it is initiative to endorse environmentally and culturally friendly tourism, Jakson Hospitality has been promoting eco and village tourism in the Satara district of Maharashtra. Jakson Hospitality presently operates ‘Jakson Inns Phaltan’, India’s first three-star LEED GREEN platinum rated hotel which is nestled among the serene sugarcane fields and pomegranate orchards. This popular hotel has successfully managed to develop many experiential outdoor activities for guests from nature trails, fort treks, leisure activities, village tours, farm visits, cultural tours and wind mill tours. Announcing the developments, Sandeep Talaulicar, Managing Director, Jakson Hospitality says “We have long since recognized the potential of eco and village tours in the district of Satara and have been constantly developing opportunities to promote tourism in this region. We aim to strengthen our commitment to responsible tourism by conceptualizing eco sensitive packages for our guests and keep sustainability at the forefront. The market for eco sensitive tourism has been growing exponentially over the years and will continue this momentum over the next two decades. We are extremely delighted to be partnering with the local community at Satara to deliver unique travel experiences aimed at individual and corporate groups”.

One of the fastest growing segments, agritourism includes visits to industries, resorts and retreats. Local attractions include Pusegaon windmill farms to catch a glimpse of hundreds of gigantic windmills set amidst the adjoining hills. The Pussegaon windmill site offers you a chance to view the rotating fans from close proximity. For art lovers, Aundh museum exhibits rare paintings and sculptures by well-known Indian and European artists. Those who enjoy trekking can visit the Ajinkya Tara Fort, located at 3,300 feet above sea level in the Sahayadri Mountains offering a magnificent view of the entire Satara city. It is also a great idea to visit the largest organic farm in Satara on a bullock cart, learn traditional techniques of farming and experience Gladiola and Rose plantations. For those keen on ancient culture and history, a visit to the royal palace of the Marathasthe Phaltan Rajwada is a great idea. Phaltan Rajwada is the former residence of the Phaltan royal family. The grandeur of this palace along with its architectural wonder is a very special attraction for tourists. For a special experience of farming one can visit the nearby sugarcane fields, dairy farms, waterfalls pomegranate orchards to experience nature at its best.

We grow our own vegetables and use the same in our Green Table restaurant. The Green Table at the Hilton Shillim Estate Retreat & Spa, emphasizes health and nutrition. Our menu is inspired by fresh seasonal produce and we strive to preserve and enhance flavor through careful cooking techniques. We grow as much as we can ourselves while supporting responsible farmers and artisans. Bhagwan Balani GM, Hilton Shillim Estate Retreat & Spa

At Shreyas we take great care from the very beginning, from growing the ingredients to harvesting them, to developing the recipes and serving our guests in the appropriate setting and presentation, so that the subtle essence of food can be released and absorbed and appeal to the soul. Yoga therapy and Ayurveda believe that right diet is the foundation of all healing therapy. nidhe Sood Head-Sales and Marketing, Shreyas Retreat

Spread across 25 kms of lush greenery, located just outside Bangalore, Shreyas is the perfect place to spend a few days of relaxation and leisure. This retreat offers all kinds of yoga trainings right from Hatha yogas, Ashtanga asanas, kriyas, Vedic chants, pranayamas and yoga nidras along with in house consultations with the Ayurvedic doctor and Naturopath. “We have 5 acres of organic gardens where we grow vegetables, herbs, fruits, spices etc. that are used in our kitchens every day to prepare meals for our guests. We also have our own cows for our dairy needs. The requirement of milk is met through the cattle reared at Shreyas. The cattle are fed organic fodder grown especially at our farm, ensuring the milk is organic as well. At Shreyas we take great care from the very beginning, from growing the ingredients to harvesting them, to developing the recipes and serving our guests in the appropriate setting and presentation, so that the subtle essence of food can be released and absorbed and appeal to the soul. Yoga therapy and Ayurveda believe that right diet is the foundation of all healing therapy. Healing is not effective without the right foods, right quantity and eating at the right times,” says Nidhe Sood, Head of Sales and Marketing. “At Shreyas, guests have an opportunity to experience the real India as we take them to the local villages and provide them an opportunity to serve the local school children and their families in organized feeding exercises. For example, sourcing the vegetables and herbs, cutting and cooking the food (assisted and supervised by our team of chefs), transporting the food in tractors, cleaning and preparing the area where the school children are fed, and finally feeding them. This exercise which is known as “Seva” or Service is an alchemy for transmuting negative emotions such as arrogance into humility, sympathy and indifference into empathy and compassion anger into love. At Shreyas, guests have an opportunity to spend one hour daily in the herb, agricultural and rice paddy fields. You are guided by our resident team of farmers to learn more about the various items that are grown in house and activities include harvesting, planting, weeding, watering the various food and herbs that go into their food and rejuvenation oils. Yoga, Meditation and Spa sessions that are an integral part of Shreyas and the very soul of the Retreat,” she reveals.

Hotels have capitalized on the concept, creating unique tourism products

unique concept by Hilton hotels, The Hilton Shillim Estate Retreat and Spa houses probably the world’s largest spa. With 99 ecologically designed luxurious villas and a restaurant that serves organic food, the retreat focuses on environment sustainability and holistic rejuvenation of the mind, body and soul. The hour and half drive from Pune to Shillim took us past villages, magnificient views of the picturesque expanse of Shillim valley and peaks of the Sahayadri mountain ranges. “We grow our own vegetables and use the same in our Green Table restaurant. The Green Table at the Hilton Shillim Estate Retreat & Spa, emphasizes health and nutrition. Our menu is inspired by fresh seasonal produce and we strive to preserve and enhance flavor through careful cooking techniques. We grow as much as we can ourselves while supporting responsible farmers and artisans who share our commitment to organically grown produce. Our vision for the future is to achieve a sustainable farm

to table ecosystem that protects limited natural resources and improves the quality of our environment," says Bhagwan Balani, General Manager, Hilton Shillim Estate Retreat & Spa. Fort JadhavGadh, a museum heritage hotel near Pune organizes picking figs from nearby farms, milking cows. All these experiences are unique and give one a feel of the rustic life in villages which works really well as the heritage hotel is located in close proximity to villages. This hotel has vast open spaces, perfect for those who enjoy outdoor games or evening walks. To add to the rustic feel of the heritage hotel, a common means of transport in ancient times known as Jinker, bullock cart riding has been reinstated by Fort Jadhavgadh for guests. Beautifully decorated carts decorated with comfortable colourful mattresses and pillows along with traditional fanfare are used to create an unforgettable and exhilarating experience for hotel guests of all age groups. Agritourism as a concept works very well

in a country like ours as it brings agriculture and tourism close to each other where farms and home stays invite tourists to their property to experience nature at its best. A lot of people enjoy being outdoors, far away from the maddening city crowds, to breathe in fresh air at leisure and eat healthy food which is picked from farms attached to these resorts and retreats. One of the fastest growing segments of the travel industry, agritourism includes visits to industries, resorts, retreats, wineries, ranches and farms. The itineraries are unique and involve a lot of entertainment, education, relaxation, outdoor adventures, shopping and dining experiences. The fact that these trips are cost effective, manage to bring families together for a fun weekend, encourage farming, promote environmental conscious make these initiatives to be a big draw with both guests and entrepreneurs and farmers. These initiatives also help to promote rural development in countries like India.

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21-23 September