Date of Publication: 19/10/2015 RNI No. DELENG/2015/62794 Posting Dt. 12-17/10/2015 Postal Reg. No. DL(ND)-11/6180/2015-16-17
VO LU M E 1. I S S U E 6 . O C TO BE R 2 015 . ` 5 0
Hand-painted umbrellas with your name embossed was a personal takeaway for many of the delegates attending the recently held Cinema Tourism Summit in Mumbai.
linking stakeholders for developing the big picture
Inconsistent hygiene standards bad for visitor perception, sustainable tourism is the way ahead.
President Mukherjee stresses on quality in the visitor experience
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resident Pranab Mukherjee called for a clean, hygienic India and rooted for standardization in creating clean public spaces to improve the state of tourism in the country. Addressing a gathering at the national tourism awards organized by the union ministry of tourism, he called inconsistent sanitation standards a cause of ‘negative impact on perception on guests, saying that it was imperative for us to showcase all our heritage maintaining global standards of hygiene in surrounding areas. Hailing government’s flagship program of Swachh Bharat as a welcome step for improving tourism experience, he said, “The Ministry of Tourism's Swachh Bharat-Swachh Parayatan campaign to promote cleanliness and hygiene at tourist destinations is a welcome step in the right direction.” “Inconsistent sanitation standards would, similarly, have a negative impact. This would be unfortunate - especially at a time when our tourism industry is projecting the unique beauty of our cultural sites, the scenic splendour of our adventure destinations and the richness of our architectural heritage,” he further added. He stressed on the need for developing a mechanism by establishments, at various levels, to ensure effective monitoring of standards without letting aberrations demeaning the quality of experience for visitors. “It is equally important to develop systems for effective monitoring to ensure that these standards are maintained by establishments across
Put your own house in order first, Mahesh Bhatt tells states
the board,” he noted. He appreciated the ministry of tourism for addressing safety concerns of tourists by launching 24x7 Incredible India helpline – which allows tourists to access valuable information and guides them in times of crisis. Noting that there was an urgent need to put in place robust safety mechanisms that gave a sense of assurance to visitors about their safety and security at all times, he said that it was the reassurance which would ultimately improve perception, driving footfalls. “The safety mechanisms that we create, the precautions that we put in place must reassure our guests - so that they never have to be apprehensive about their personal safety or that of their belongings,” he said. Taking a note of fast changing trends in tourism industry, the President referred to quicker access to distant locations, increased disposable incomes and
rising lifestyle aspirations for the swell in footfalls in recent years. Terming sustainable practices a calling card for further tourism initiatives, he asked stakeholders to find innovative ways to lessen carbon footprints, reduce water consumption and improve waste management systems. “It should be incumbent on tourist establishments and hospitality units to operate in a way that they are able to reduce water and energy consumption, cut down on generation of waste, improve waste management and ensure creative recycling and efficient waste disposal," he advised. He further highlighted the need to conserve natural resources and heritage, urging the tourism industry to consciously plan their investments in a manner that sustained the growth of this sector without compromising natural and cultural heritage at our disposal.
The broader perspective unfolded with mainline cinema, television and commercial advertising as three verticals for tourism.
Cinema tourism need a holistic vision where its a win-win for both producers and destinations, concludes CTS Summit By NAVIN BERRY
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inema is fast emerging as a new vertical for tourism development and marketing. Imagine television alone needs to build an arsenal of over 1600 hours of telecast time every week, and many of these are seeking outdoors and in locations within India and overseas. India has yet to become any preferred destination for film shootings except perhaps for films woven around the Raj, for which there is no alternative but to shoot in the country. Cinema production in itself is big business as it generates instant group business stretching at times over a month. Cinema engages local talent, and then there is the incremental revenue from tourism, coming out of exposure of the destination. As Indian states and the centre come alive to these opportunities, and as India gets its act together with the proposed and forthcoming National Film Commission, set in motion through the centre managed
NFDC, it is pertinent to put together a film policy that ensures a win-win situation for both sides – the production houses and also the states and the centre. Incentives must be there, ease of doing business must be ensured, but equally the returns for the destination and location – adequate built in provisions that allow the state tourism machinery to derive full benefits of the incentives given. State governments, while formulating policies, must be equally aware of how destinations around the world are building such safeguards, or else it has the possibility of losing out. Cinema and shooting is not just confined to the world of films – advertising is a big opportunity, too. Feature films get the biggest billing for the instant exposure they generate, given the Indian star appeal and the fans they have worldwide. But then there is television, and also advertising films, the commercials for the corporate world. These conclusions came through at the recently held Cinema Tourism Summit 2015 at JW Marriott Juhu in Mumbai, earlier this month.
Noted film maker Mahesh Bhatt is much known for his no-holds-barred advocacies. And he was no different when he briefly spoke at the awards session of Cinema Tourism Summit in Mumbai earlier this month. Responding to the commonplace grudge of the state governments that Indian filmmakers are giving a skip to them in favour of foreign locales, Bhatt strongly asked the states to put their house in order first. “If state governments want Indian filmmakers to execute projects in their locations, they will have to ensure a conducive environment on all fronts. Without that, it will be difficult to get the film fraternity on board,” Bhatt said.
HIGHLIGHTS
Mahesh Bhatt is among the celebrated filmmakers in the country, a person known for his outspoken advocacy of issues in society and in film industry. The presentation by Thailand was clearly the highlight of the Summit in terms of professionalism and content. Indian states are waking up to the reality of cinema tourism and need to put together their assets of locations and what they can offer in terms of logistics in their destinations. Pointing out the facilities and rebates doled out by popular locations and countries to woo film crews, Bhatt urged the state governments to draw lessons from the global examples. “Thailand is present here and you have seen how they are leaving no stone unturned to get international production houses in the country. It is an example worth emulating. And since Indian film fraternity is quite exposed to extremely supportive environment in so many countries now, they are unlikely to settle for anything less than that,” he stressed. In his brief speech, Bhatt also emphasised that Indian states can still make up with progressive provisions. “ You need to consider it seriously. Cinema is a powerful and truly global medium and you can derive so many benefits – in showcasing your unique locations to the world and also for local employment generation. You must act fast,” he underlined.
3
THIS ISSUE : OCTOBER, 2015
PM Modi’s foreign connect is creating linkages with the world, will drive business and tourism into India
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usinesses run on perception. For a nation to thrive in a globalized economy, perception of being a welcoming one matters where several developing economies are vying to capture limited opportunities for investment. These investments are increasingly stemming out from corporate giants which are looking to venture into newer markets with potential for growth. Interestingly, in the past year, India has seen a noticeable spike in FDI from international firms. It recently piped China and the USA to become number one destination for global FDI, attracting well over 31 billion USD by the end of July 2015. It is no mean achievement at a time when the world economy and investor’s sentiment is under, Chinese stock market crash and sluggish European market, considerable stress. It is an important development, especially, after India emerged out of a long spell of economic downturn caused by policy paralysis. Credit must be given where it is due. PM Modi’s active engagement with global audiences and emphasis on creating personal linkages with people that matter are repositioning India, again, as a preferred destination for business. In the last year and a half, he has extensively traveled to over two dozen countries meeting community leaders, business heads and spreading India’s message of ‘Vasudev Kutumbkam’. His personalized interaction with business honchos, one-on-one meets with CEOs to understand their individual concerns, and developing rapport with heads of states has helped India’s cause. Tech-giants like Facebook and Google have joined India’s quest for seamless broadband connectivity in villages and railway stations. Its importance lies in linking services, increasing real-time awareness of surrounding and streamlining processes, enhancing quality of service and experience for citizens and tourists alike. Each of his international tripshas aimed at marketing India as an exciting destination with ample growth prospects; a young nation poised to grow and it was their loss if they missed the ‘opportunity of the 21st century’. His efforts have also helped state based investments grow in an unprecedented fashion. Japan has pledged 35 billion dollars, while China will pump 20 billion USD in the next five years. USA, Australia, Canada, and Germany have stepped up their presence in India, and are engaging in several projects which are bilateral in nature. These are producing more movement of goods and services. Joint ventures are bringing in people from abroad, so is the new found interest in India as a nation and as a destination. Coming back to perception, tourism, too, thriving upon the image of a destination. It is the most influencing factor in a person’s choice for travel to a destination. Going beyond the maze of statistical analysis of inbound, outbound and FDI inflow, it is the perception of India – as a nation ready to receive the world as a business partner and a host – which is finding resonance in the international community. Increased demand for E-tourist visa is another indicator of world’s growing interest in India. It is a new style of diplomatic engagement which is working well for India in a difficult international market space. It points to the fact that it is these connections and linkages that help movement of people and goods. As long as we keep encouraging these linkages and associations, and through them cement our perception as a nation right and ready to host the world, we are on the right track. And these will produce more tourism for the country, where people will travel to our country, for a variety of reasons. Apart from business and commerce, these will also create more appeal for our cultural assets, over a period of time.
Navin Berry
Contents STATES
04 Smart city tag, sound ease of doing business ranking will help tourism 05 Odisha puts Shamuka and Chilika on fast track for integrated development, invites private investors to participate in world class tourism hubs 06 Delhi and Maharashtra ranked best for competitiveness: WTTCII report 07 “Telangana seeks finance from BRIC Bank for Warangal Heritage Circuit”
INFRASTRUCTURE
08 Seamless broadband for 6 lakh villages and 500 Railway Station on the anvil 09 Pitch for lighthouse tourism, land parcels to be leased out at 78 locations
AIRLINES & AIRPORTS
10 Removal of 5/20 will improve ‘ease of doing business’ in India
ARUN JAITLEY
Union Finance Minister, on increasing India’s share in world tourism
India should increase its airline capacity from 5 to 10 per cent to cater to more foreign tourist in the country. Tourism is the engine of economic growth and we need to increase India's share in world tourism from 0.68 to 1 per cent by 2020 to realize the full potential of this sector.
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NITIN GADKARI
Road Transport and Shipping Minister on govt’s plan of building a 250 km long Greenfield express highway between Delhi and Jaipur
Completion of the Pink City Expressway project, which started in 2008, has been a priority for the ministry. The feasibility study is being conducted and the process would be taken as per the viability.
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AMINA J. MOHAMMED
The UN Secretary-General’s special adviser on UN’s ambitious new sustainable development agenda and its need
It’s universal so it applies to everyone. Clearly anything that happens anywhere in this world has that fallout in many other places – from the global financial crisis to conflict and migration, we feel it everywhere – to natural disasters and climate change.
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On Air-India shifting operations to Terminal 2 in Mumbai’s airport
Deputy CM, Punjab seeks trains to the holy city of Amritsar from across India
It is a great milestone for Air India. We have integrated both our domestic and international flights from one terminal. This will help in reducing the connecting time for the passengers. This also gives us an opportunity to develop Mumbai as our secondary hub after Delhi.
It is the wish of all Sikhs and Punjabis to visit these holy places at least once in a lifetime. Punjabis, who follow other religions, also aspire to pay their obeisance at their sacred places like Varanasi, Ajmer, Bidar, Pushkar.
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14 Time for action is the clarion call at the Cinema Tourism Summit 2015 20 Film Commission to become a reality before March end, assures NFDC 21 Hassle free action guaranteed, affirms Gujarat Tourism for cinema shooting 22 The world of difference in facilitation: Aashish Singh and Rajan Kapoor
26 Indian Hospitality: The challenge of aligning with tectonic technological shift 27 We are making stand-alone hotels more competitive and better skilled: ZO Rooms 28 Shangri-La launches its second offering in India, in the garden city in the south 29 Brand will enhance customer recognition, India a key market for Belmond 31 Experiential tourism is reviving art, generating employment at the grassroots: Sowmya R. Vijaymohan, Founder & Partner, Rare India
HOTELSCAPES
GLOBAL EXCHANGE
HERITAGE
12 Scientific validation lends weight to the idea of Ramayana circuit
CINEMA TOURISM SUMMIT 2015: REPORT
24 Lalit forays further into F&B with mobile trucks; ties with WorldHotels 25 Leela to manage Ambience Shahdara, largest 5-star inventory in Delhi/NCR
SUKHBIR SINGH BADAL
ASHWANI LOHANI
32 Smart diversification of markets and products makes tourism pivotal asset to Jeju’s economy 33 France: Creating experiences through art, culture and cuisines sets France apart
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NAVIN BERRY navin@tourismfirst.org contributing editor: RITWIK SINHA ritwik@tourismfirst.org features editor: PRIYAANKA BERRY priyaanka@tourismfirst.org senior writer: SHASHANK SHEKHAR shashank@tourismfirst.org circulation: CHANDRA TAMANG info@tourismfirst.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, 41001622. Total pages 36
4
STATES
Smart city tag, sound ease of doing business ranking will help tourism
MP Chief Minister Shivraj Singh Chouhan had recently commented that the state clearly has the ambition to occupy the numero uno position in the national tourism scene. In that sense, 2015 holds a special significance for the state tourism – with Visit Madhya Pradesh programme and later the grand Simhastha Mahakumbh which is expected to result in a staggering 50 million footfall from across the world. So how is the scene unfolding in this critical year? Hari Ranjan Rao, who has returned as Managing Director of Madhya Pradesh State Tourism Development Corporation after a gap of five years, responds in an exclusive conversation‌ cities recently identified by the Union Urban Development Ministry. For instance, Ujjain is there in the list. The smart city initiative entails consistent development for the next five years. So does it provide a major boost to your tourism development programme as well? Yes, this tag will undoubtedly help a great deal. Firstly, it recognises that Madhya Pradesh has destinations which have immense potential. We will also be hosting Simhastha Mahakumbh next year in April-May in Ujjain where we are expecting a footfall of about 5 crore pilgrims from all over the world. And quite naturally, addition into the smart city list is a great value addition for us. There are seven cities from the state which have been added in the smart city list and this certainly brings focus to the overall development agenda in these locations. Those who are tourism centric, will certainly stand to benefit in a major way.
By RITWIK SINHA You are celebrating 2015 as Visit Madhya Pradesh year and we are aware that your tourism department has chalked out yearlong activities for promotion and creating more buzz. More than half of the year has gone, how would you explain the trends in your tourism business this year? I must say that the trend have been very encouraging. The idea of our Chief Minister to celebrate 2015 as Visit Madhya Pradesh year was to put tourism high on our governance agenda. If you look at competing sectors in the state, there is a greater realisation now that tourism is one of the biggest job creator and, therefore, every stakeholder has to play a role in this. In that sense, the first six months have been quite positive. In fact, a roadshow organised in Delhi on 15th May, was well received and we believe we have managed to send the message to all that this year is too important for our tourism sector. Has it also resulted in some incremental footfall benefit? It will be unfair for me to claim that footfall has suddenly increased because it does not happen overnight. Moreover the first six months of the financial year is always the lean season and now peak season is round the corner. So we believe that the impact of our efforts would be reflected in the peak season. On an overall basis, I can tell you that the response has been good.
year was connecting just a couple of destinations. So what are the possibilities this time? Will the new service provider connect major cities in the state? This time, we have not forced the operator to cover 3-4 locations. We have given them the freedom to connect as many locations as possible in the state. We have also given the mandate to connect to neighbouring states and other destinations. That was missing in the last contract. The idea is if the tourist has come all the way from the US to Varanasi, he should also all get easy flight to come to Madhya Pradesh through this dedicated service. But will this operator manage to do so much with just one aircraft? They will be commencing the operations with two aircrafts and then they can further add on more aircrafts. We are not restricting it to any number.
To improve air connectivity within the state, Madhya Pradesh Tourism had earlier announced allowing a private air taxi operator to commence operations from July this year. What has happened to this initiative? The first aircraft has arrived and the operator is waiting for the approval from the DGCA to commence operations. It has applied for the formal approval and I believe that the service will commence in October. The company which has been awarded the contract is Supreme Aviation from Mumbai.
There have also been talks of opening up some new resorts at your leading destinations this year. What is the update on this? Yes, there are plans to open more resorts. More importantly, we are opening areas around waterbodies. As you know we have huge waterbodies and lakes and those are the perfect settings for luxury resorts and promotion of eco-tourism. We want private sector to come and set up properties there. The tendering process has already begun and we will award contracts shortly.
The previous air taxi operator which had suspended its operations late last
Some of your noted tourism destinations have found place in the list of 98 smart
I would like to understand from you, what kind of elaborate arrangements you will be making for Simhastha Mahakumbh? 50 million movements to a single location in slightly over 30 days is a staggering number. For Simhastha, we have put in a very efficient team to supervise the arrangements. Of course, different departments will have different roles. From Tourism Development Corporation standpoint, we have been entrusted with the responsibility of adding more rooms and opening new resorts. Our elaborate plans also include putting up luxury cottages and tents. All the neighbouring destinations around Ujjain will also be spruced up to provision for larger accommodation facilities and give value for money experience to the visitors. When Chief Minister Shivraj Singh Chouhan had attened MP tourism roadshow in Delhi, he had spoken about very aggressive promotion of Simhastha in international markets. What is happening on this front? That is unfolding the way we had planned. We had promoted the event at the last edition of ITB in a big way and we will do the same at WTM later this year. We will make use of all noted events over next few months to aggressively pitch in for Simhastha. I am happy to tell you that our chief minister is currently on a nine-day tour of Japan and South Korea to generate more investments and there too he will be pitch in for the grand Simhastha Mahakumbh. This year is believed to be a critical year for Madhya Pradesh tourism. You have gradually positioned yourself in the top league in the national tourism scene over the last decade and the chief minister Chouhan had recently commented that the ambition is to become the number one tourism state in the country. So will
HIGHLIGHTS
Hari Ranjan Rao is back as Managing Director of Madhya Pradesh Tourism with the move of Ashwani Lohani to the Centre as CMD of Air India. Incremental footfall benefits of Visit Madhya Pradesh Year to be witnessed in the peak tourism season. Private air taxi operator expected to commence operations any time soon. Smart City tag for seven locations will benefit the tourism sector. The chief minister himself promoted the grand Simhastha Mahakumbh during his recent visits to Japan and Korea. Madhya Pradesh Tourism is planning an ongoing marketing excercise in the international arena. MP Tourism is aspiring to become No. 1 in ease of doing business among states. this year, wherein you are celebrating Visit Madhya Pradesh and later you will have the grand Simhastha event, push you close to that ultimate target? This will happen and it will happen in not so distant future. If you look at the Ease of Doing business report prepared by the World Bank, Madhya Pradesh occupies the number fifth rank. We know exactly why we are on this rank and it will not be too difficult to occupy the top slot in the future. You can take it from me that in the next two years, MP will be number one state in the country on the ease of doing business index. And if the business in Madhya Pradesh is easy to do, tourism will be a natural beneficiary to it given our focused approach. Finally, now that you are at the helm of MPSTDC, what are the issues which you consider as your key priorities in the near run? My first priority is to bring in investments in the tourism sector in the state to create a more sound eco-system. So far Madhya Pradesh Tourism Development Corporation has been very pro-actively spearheading the tourism sector. But now we want to bring in the private sector as vibrant partners in a major way. Secondly, we want to enhance the product diversity. And thirdly, we would like to have a more vigorous marketing programme. Though our marketing drive is clearly one of the best in the country but now we would like to make a mark in the international market as well.
5
STATES
Odisha puts Shamuka and Chilika on fast track for integrated development invites private investors to participate in world class tourism hubs
By RITWIK SINHA
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t the recently held meeting with a select group of prospective investors in Delhi, the top brass of Odisha tourism did not exactly harp much on that typical “we have everything” line of argument. Instead, their collective appeal was rooted more in drawing the attention of the gathering on two mega projects – Shamuka and Chilika mega tourism hubs. These have clearly been much touted projects for quite sometime (Shamuka was conceived 25 years back) and haven’t really got off the block because of constraints every now and then. But with project consultants now having presented their detailed report and the recent unveiling of the new Industrial Policy Resolution (IPR), 2015 (read the box item: New industrial policy to be the guiding force for tourism projects too) which recognises tourism as one of the ten critical sectors for the future growth
has been significantly scaled down. “Shamuka beach project has now been truncated to 972 acres. It will be easier and pragmatic to develop this patch,” said Anil Kumar Samal, Director Tourism, Odisha government. The project report of Shamuka which has been prepared by PricewaterhouseCoppers underlines huge tract of green areas on the 2000 meter long sea frontage beach which can be utlilised for eco-tourism and camping sites. In the master-plan prepared by the PWC, there is also provision to create a massive integrated complex which will have residential villa, one 200-room 3-star hotel, one 150-room 5 star property, museum complex, a public park and a dedicated corner for club houses. Out of these, hotel and club house units will be built by the private players, while residential villa will be a PPP project and the state government will be solely responsible for creating the museum complex. “The Industrial Development Corporation of Odisha has acquired
A view of the Chilika Lake. The project report prepared by the consultant has suggested taking a cluster approach to create new tourism facilities around the lake of the state, Odisha tourism seems to be more convinced than ever before that the critical pieces have fallen in place for the mega projects to really take off. “We are clearly looking for aggressive participation of investors and the private sector in our tourism development. The recently introduced IPR is a critical add on to our existing tourism policy which provisions for attractive incentives for the private investors. We believe that our two mega projects, Chilika and Shamuka which will be adding defining dimensions to the state tourism, will get a major boost now,“ said Ashok Chandra Panda, Tourism and Culture Minister on the occasion. “The state government plans for a quantum jump in tourism development through a mix of government and private sector participation. The Shamuka beach project which we have planned is going to be one of the largest integrated tourism projects in the country and we are hopeful that it will get ample support from the private sector,” L N Gupta, Principal Secretary, Odisha Tourism added. Odisha tourism certainly seems to be making a new pitch for hard-selling its two unique projects. Going by the details presented by the noted consultants who have been involved with Odisha tourism in shaping the masterplan, the projects underline creation of outstanding hubs which will be truly world class in all respects. Take the case of Shamuka beach area which is quite close to Puri and also the state capital and has been designated as a Special Tourism Area (STA) by the state government. In the past, it was believed to cover a sprawling land parcel of 3000 acres. But now it
about 920 acres and phase 1 development is underway. The construction of 132/33 kv power sub-station has been completed. The government is keen to complete the common infrastructure before inviting the private sector to pitch in and create different components of this ambitious programme,” informed Chandan Mishra, Director, Government Reforms & Infrastructure Development, PWC. For the Chilika lake mega tourism project, the masterplan has been prepared by IPE global and the cornerstone of this plan is to create 10 projects (of diverse nature) in a catchment area of over 1000 square kilometre. “The masterplan recommended by us has been made on the basis of micro-analysis of over 100 sites in the area. We have advised taking the cluster approach in developing as many as 10 tourism nodes in the zone,” said Anuja Shukla, Manager (Urban Reforms), IPE Global. The masterplan broadly talks about creating new assets in the adventure, eco-tourism and water sports space. For instance, it talks of facilitating one day cruise trips in Rambha river stretch which lie in the proposed Mangaljodi cluster. IPE Global’s masterplan for Chilika tourism zone also identifies dedicated corners for luxury resort, budget hotels and MICE center and also provisions for creation of a complete eco-tourism village with an investment of `10 crore. To give the zone its deserving grandeur, there is also suggestion to set up an iconic tower complex at Satapada to attract tourists. The idea is to allow tourists to enjoy beautiful views of the brackish water lake from the top of the tower. The proposed tower complex will also have a
HIGHLIGHTS
Masterplan ready for Shamuka and Chilika mega tourism projects Odisha government seeking substantial private funding in these two projects The formal private sector involvement will begin after the formation of SPVs Samuka beach project size now truncated to 972 acres from 3000 acres Chilika Lake masterplan proposes cluster development approach, ten sites identified State government confident of convincing the NGT to lift the construction ban in Shamuka
(SPVs) will have to be set up to give Shamuka and Chilika Lake projects the envisioned shape. According to Chandan Mishra of PWC, the SPV for Samukha beach will be spearheaded by Industrial Development Corporation of Odisha (IDCO) and Odisha Tourism Development Corporation (OTDC). Additionally, Odisha Tourism is seeking technical assistance from Kerala Tourism to develop Shamuka on the lines of Bekal project. After a round of preliminary discussions, an MoU between the tourism departments of both the states is expected to be inked soon. Meanwhile, a recent order by the National Green Tribunal (NGT) has put off the preliminary construction work at Shamuka beach and the potential investors are concerned if it signals further delay. The NGT had put a brake on Shamuka project following complaints from a social activist claiming that the project would result in a massive deforestation in an ecologically fragile area. Odisha Tourism, however, is
Odisha Tourism Minister Ashok Chandra Panda (fourth from the right) alongwith senior officials of state tourism and FHRAI at the investors summit in Delhi lagoon park, a marine zoo, food court and other amenities. “As per our estimate, the total investments required to make these plans work on the ground would be close to `500 crore,” Shukla added. The formal process of allowing private investments in these mega tourism zones is still somewhat far off. Prior to that, Special Purpose Vehicles
confident that it would convince the tribunal that the project execution would be completely aligned with the environmental concerns. “We are preparing our argument and in the next hearing, we hope to get clearance from them. We are keen to get the project going as expeditiously as possible,” Anil Kumar Samal assured.
New industrial policy to be the guiding force for tourism projects too Odisha government has recently unveiled a new Industrial Policy Resolution (IPR), 2015 which is slated to become the cornerstone of all investments in the state in the coming years and will eventually supersede the existing sectoral policies. This will also include the state tourism policy which was announced in 2013. However, according to Odisha government senior officials, this will not impact the growth prospects of the tourism sector. The new IPR, in fact, identifies ten critical sectors for the growth of the state and tourism has been accommodated in this prized list. “The Industrial Policy Resolution 2015 has come into the effect. This is overarching and will supersede all existing policies in the ten identified sectors as drivers of our future growth.
Now, we have to amend the sectoral policies, including the Tourism Policy, so that the concessions and incentives are in sync with IPR 2015,” L.N. Gupta, Principal Secretary - Tourism, Odisha told the gathering of investors organised by Federation of Hotel & Restaurant Associations of India (FHRAI) in Delhi last month. However, till the existing tourism policy is amended, both policies will be in vogue and the investors will have the choice to avail concession granted by either policy frameworks. According to Odisha government officials, the new IPR has provisioned for a well -defined structure on concession and rebate. For instance, the clusters identified for investments and new projects cutting across ten sectors have been
classified into six zones and industrial land rate has been accordingly fixed. For instance, the land price in Zone A has been fixed at `125 lakh/per acre and the parcels offered in Zone B can be acquired in the price range of `30-60 lakh/ per acre. The capital invest subsidy would be to the tune of 20-30 percent of the total cost, the interest subsidy would be 5 percent (ceiling of `1 crore for 5 years) and there would be 100 percent exemption on stamp duty on allotment of land for the new projects. “The IPR 2015 is full of incentives and we are confident that players in the tourism sector too will derive advantage out of it,” commented state Tourism Minister Ashok Chandra Panda.
6
STATES
Delhi and Maharashtra ranked best for competitiveness: WTTCII report Gujarat continues to top the list in ‘ease of doing business’, while Bihar, surprisingly, has gained the most from its marketing campaign. The highlights of the report are presented below.
I
ndia Initiative (WTTCII), through this survey report, aims to analyse the state-wise potential of travel and tourism in India. It also assesses the relative competitiveness of different states in the country. Historically, the evaluation has been carried out for 29 states; however, the split of Andhra Pradesh in 2014 has resulted in the addition of Telangana, increasing the tally to 30 states in this edition. The State Ranking Survey focuses on one component of this industry – hotels – and aims to identify the best performing states in India from the hospitality industry's viewpoint. In order to meet this objective have employed 12 key parameters or criteria for evaluating the performance of different states. While some parameters apply specifically to hotel developers, others are more relevant for state governments. It is, however, important to note that in the last two editions, 11 parameters have been used to determine the actual ranking index of the different states. However, in this year’s survey an additional parameter has been added – the ease of doing business – to reflect each state government's suitability for attracting investment and propagating development. The 1 2 parameters were assessed based on data collected from various reliable sources. 12 identified parameters and their respective weights used to determine the actual ranking index corresponding to their individual impact on the hospitality industry have been listed below.
Luxury tax on Hotels
Luxury travel is a major debatable subject for the Indian travel and tourism industry. Currently, the percentage of luxury tax varies vastly across the different states, with some of them not levying it at all. As a result, the range of luxury tax within the country ranges from 0% to 20%. Another challenge is that the basis for the computation of the tax also varies. In some Indian states, the tax is levied on the published tariff, while in the case of others it is on the actual tariff.
State Expenditure on tourism
Although the average state expenditure on tourism has seen a positive growth over the last five years, the amount as a percentage of the total expenditure continues to be dismally low. Sikkim continues to top this list having heavily ramped up its tourism spend to 2.84% of total expenditure in 2014/15 from 1.83% reported for 2012/13 in the previous edition of this report. Jammu & Kashmir has managed to move up one place to the 2nd rank, displacing Goa which lowered its tourism spend from 1.04% of total expenditure in 2012/13 to 0.48% in 2014/15 – a 54% drop.
Tourist Visits
Tourist visitations per annum is the best indication of state's attractiveness and ability to generate travel and tourism demand. On a countrywide level, there has been an upward trend in tourist visitation. International tourist visits were recorded at 22.6 million, an increase of 13.1% over the previous year. Tamil Nadu, Uttar Pradesh and Maharashtra have retained the top ranks in terms of tourist visits over the past five years. Tamil Nadu, well known for its temple towns, national parks, UNESCO world heritage sites, hill stations as well as state-of- the-art medical facilities, alone accounted for 25.5% of the total visitations in India in 2014.
Presence of Branded Hotel Rooms
The total number of existing branded hotel rooms in a state is indicative of the tourism demand within the state as well as its economic and business potential. Delhi consistently has had the highest penetration of branded rooms per 100 square kilometres in the country, largely due to the state being the capital, a major gateway for travel into India, and an important business destination. Goa follows, Haryana ranks 3rd. Maharashtra has also shown a tremendous growth in branded rooms having increased supply by 2,706 rooms from the last edition of this report.
GSDP Per Capita
Gross State Domestic Product (GSDP) is a major indicator of the economic well-being of a state. Goa,
WTTCII felicitated Maharashtra for progressive tourism initiatives
POINT ALLOCATION FOR EASE OF DOING BUSINESS Ease of Doing Points Rank Business Score Obtained 2015 Gujarat 71.1% 10 1 Andhra Pradesh 70.1% 10 2 Jharkhand 63.1% 10 3 Chhatisgarh 62.5% 10 4 Madhya Pradesh 62.0% 10 5 Rajasthan 61.0% 8 6 Odisha 52.1% 8 7 Maharashtra 49.4% 8 8 Karnataka 48.5% 8 9 Uttar Pradesh 47.4% 8 10 West Bengal 46.9% 6 11 Tamil Nadu 44.6% 6 12 Telangana 42.5% 6 13 Haryana 40.7% 6 14 Delhi 37.4% 6 15 Punjab 36.7% 4 16 Himachal Pradesh 24.0% 4 17 Kerala 22.9% 4 18 Goa 21.7% 4 19 Bihar 16.4% 4 20 Assam 14.8% 2 21 Utarakhand 13.4% 2 22 Tripura 9.3% 2 23 Sikkim 7.2% 2 24 Mizoram 6.4% 2 25 Jammu & Kashmir 5.9% 0 26 Meghalaya 4.4% 0 27 Nagaland 3.4% 0 28 Arunachal Pradesh 1.2% 0 29 Manipur – – – Note: Visits were not conducted in Manipur due to prevailing conditions in the state. Source: Assessment of State Implementation of Business Reforms, Make in India, World Bank Group, KPMG, CII & FICCI, September 2015
Delhi and Sikkim continue to maintain the top three positions within this parameter, while up by two ranks, Himachal Pradesh and Uttarakhand have seen notable improvements since the last survey due to their GSDP per capita having grown by 29.4% and 30.5%, respectively, over this period.
Karnataka was also awarded for its continued excellence by the WTTCII
in nature and, therefore, depends heavily on roadways and railways as modes of transportation. Across three consecutive surveys, Delhi has emerged as the overall leader in both roadway and railway infrastructure; Punjab also retains rank one, similar to that obtained in 2013. Jharkhand has climbed four places since the last survey on account of a significant increase in its rail infrastructure, whereas Himachal Pradesh has dropped by four ranks due to only a marginal growth in its rail networks between the survey periods. Himachal Pradesh's descent has been further augmented by an increase in the rankings of competitor states. Similarly, Rajasthan has dropped by three ranks as a result of negligible expansion of its road infrastructure.
Aircraft Movement
Aviation is a major mode of transport in the country today, particularly with the advent of low fare-no frill models in the aspirations of a rising middle class. Maharashtra, Delhi and Tamil Nadu remain the top three destinations for aircraft movements since 2009; this is primarily attributed to the states possessing the three major airports in the country, which together account for 42.9% of the total aircraft movements across India. Out of the top three, Maharashtra accounts for the maximum aircraft movement capturing 21% of the total. West Bengal obtained the 5th rank this year acting as the major entry point for the north eastern states.
Literacy Rate
Over the last decade, there has been a considerable improvement in the literacy rate across the country, with the literate population of India constituting 74% of the total population in 2011. Kerala leads the states in terms of literacy levels in the country, having witnessed a decadal increase of 3.1% since 2001. Bihar, though ranking the lowest among all Indian states, has shown a major increase in literacy rate from 47.5% in 2001 to 63.8% in 2011.
Ease of Doing Business
Destination marketing plays a key role in the promotion of Travel and Tourism within a state. However, as marketing covers multiple strategies, we have limited our focus to the assessment of the state tourism websites. Bihar continues to hold on to its number one position among the 30 states, primarily due the interest it garners by virtue of being an important destination for Buddhism, housing sites such as Bodhgaya, Nalanda, Kesari and others. Kerala too maintains its 2nd rank since the last survey.
In 2014, the central government announced its aim to improve India's rank in the World Bank-led “ease of doing business index” from the 134th position to the 50th position. Gujarat is the frontrunner in this parameter with an ease of doing business score of 71.1%, depictive of the percentage of overall implementation of the 98-point agenda.Andhra Pradesh, despite its separation from Telangana is at rank two. Investors in the state benefit from an online single window portal with clearly defined timelines for application filing, tracking and approvals, which speeds up the entire process.
Urbanisation:
Intangible Aspects
Effectiveness of Marketing Campaign
Delhi is the most urbanised state in country, with almost 98% of its population being urban, followed by Goa with 62%. Overall, the country's urban population has increased by a decadal growth rate of 31.8%, outpacing the rural decadal growth rate of 12.3%. Looking at absolute numbers, Maharashtra ranks the highest with an urban population of 50.8 million people, which accounts almost 14% of India's urban population.
Road and Rail Infrastructure
In India, a major chunk of tourist movement is domestic
The three key factors that shaped our decision to gauge these intangible aspects include (i) Safety and Security (law and order conditions and safety); (ii) Human Resources (availability of qualified human resources for Travel and Tourism); and (iii) Political Stability (tenure of the ruling party, and development policies of the current government). Maharashtra and Tamil Nadu have emerged as frontrunners with respect to intangible aspects, owing to stable state governments, perceived security being relatively high when compared to other states.
7
STATES
“Telangana seeks finance from BRIC Bank for Warangal Heritage Circuit” By RITWIK SINHA
Telengana, the youngest state in the country, has drawn major plans to position tourism as one of the key drivers of its economy. On the sidelines of an event in Delhi recently, B Venkatesham, Tourism & Culture Secretary, emphasised that the state government is committed to some iconic projects which will define Telangana tourism in the future. Edited excerpts: You are the youngest state and so, therefore, one should expect fresh impetus in all development sectors. Which are your primary thrust areas? We consider MICE as a high potential growth area for us within the tourism basket. The second critical vertical for us would be related with our cultural assets. For instance, we are aggressively promoting Bathukamma, a unique festival celebrating womanhood. So on one hand, you have MICE and then we are giving a push to our cultural products. This strategy in a way means a subtle mix of modernity and tradition. The third important tourism vertical for us is medical. We have quite a developed infrastructure for it. There are many medical institutes in Hyderabad and other places in the state. And these institutes get good numbers from the Middle-East and Central Asia countries. A possibly surprising vertical which could do very well for us is academic tourism.
Telangana Tourism Secretary B Vankatesham (extreme left) interacting with stakeholders at PHDCCI House in Delhi
Telangana has become a hub for medical, engineering and architecture institutes. For instance, in Osmania University, 5000 Iranians are enrolled today. The number of foreign students from other countries too is on a rise. There are a number of places where these people can be educated. ISB is one of the best business schools in the world. You have indicated that 2017 will be celebrated as Visit Telangana year. Have you firmed up the plans? Visit Telangana Year plans are currently on the drawing board. We are presently discussing its possible elements. But most probably we will celebrate 2017 as Visit Telangana Year. We will tend to bring in people from all over the country and also various countries to get a first hand experience of the state and its unique offerings. What are your plans to setting up some defining tourism circuits. Can you share some details on this? The biggest circuits we are planning relate to heritage and eco-tourism. The central government has recently sanctioned us Rs 100 crore to develop Somasila reservoir circuit. If you see those places, you will feel you have missed something very attractive so far. The white river rafting is available for six months in a year. No other river coast has that kind of offering. We will be putting up many tourism-centric facilities in this area. We are also planning
a major Warangal Heritage Circuit. We are planning to send the first project to the New Development Bank recently opened by BRIC countries. What is the kind of investment you will need? We are planning an investment of `500-600 crore in this project. This is one of the rarest cities where you have so many attractions in one place. There is serene lake of Ramappa. The irrigation system of 12th century is still continuing in this area and this itself could be a major attraction for the tourists. Then there is Pakhal lake in the region which is considered as the sixth most serene lake in the world. Plus, the new cave system which have been found is just 30-40 km from Warangal city. Going ahead, it will be a major draw for Telangana tourism. It is 15 km long and we have decided to develop it. Probably it will become the most accessible biggest cave system in the country. The longest you have is in Meghalaya (22 km) but that is not accessible. What has happened to the proposal of replicating the Tirupati temple? Tirupati temple is clearly a class of its own. But we are trying to create a massive temple complex on Hyderabad – Warangal road. We have the popular Yadagirigutta temple and we have decided to massively improve the infrastructure in this location. Our Chief Minister himself has devised the plan to put in `100-200 crore in this area so that in the next four-five years, it becomes a 2000 acre temple complex. The promoters of Ramaji Rao Film City too have planned to set up a unique religious tourism hub which will comprise as many as 108 temples. They will basically be the replica of noted temples in the country like Badrinath, Puri temple, etc – same size and shape. All of them will be put together in one complex. What is the timeline for this project? Ramoji Film City is anchoring this project. And the government of Telangana through its tourism department is supporting them. It is scheduled to be ready by 2020.
8
INFRASTRUCTURE
Seamless broadband for 6 lakh villages and 500 Railway Station on the anvil PM’s pet projects got a major shot in the arm with Microsoft and Google coming on board to help set up Wi-Fi at 500 railway stations and providing broadband connectivity to lakhs of villages. These developments will help connect products and services, creating better experience for citizens. By SHASHANK SHEKHAR
P
M Modi’s whirlwind tour to the U.S. has helped address a gamut of issues and find concurrence on areas of mutual interest. High on rhetoric and agenda, apart from making a strong pitch for his pet-project ‘Make in India’, PM used his second visit to the U.S. to connect with tech-giants like Facebook and Google. He also held an hour-long discussion with the CEO of Tesla motors to explore possibilities of using solar power to fuel homes. Given India’s massive solar power push, it was an important interaction seeking bilateral initiatives and technology transfer. These personalized interactions – which have become PM’s unique style of engagement with corporate honchos – have led to a series of new commitments and bilateral initiatives giving boost to ‘Digital India’ initiative. Google has pledged setting up bases for equipping 500 railway stations with Wi-Fi facility. In an official blog post, Google CEO Sundar Pichai explained his company’s plan for the ambitious project slated to be launched from Chennai in the coming months. “Working with Indian Railways, which operates one of the world's largest railway networks, and RailTel, which provides Internet services as RailWire via its extensive fiber network along many of these railway lines, our Access and Energy team plans to bring the first stations online in the coming months. The network will expand quickly to cover 100 of the busiest stations in India before the end of 2016, with the remaining stations following in quick succession,” he said. “Even with just the first 100 stations online, this project will make WiFi available for the more than 10 million people who pass through every day. This will rank it as the largest public Wi-Fi
HIGHLIGHTS
India ropes tech-giants to boost national programs. PM pitches for ‘Digital India’ in his second US visit. Google to help Indian railways set up base for providing Wi-Fi facility at 500 railway stations in a phase-wise manner. Microsoft will partner GOI in setting up low-cost bandwidth connectivity in 5 lakh villages across India. Bandwidth connectivity will help drive creativity, efficiency and productivity across governments and businesses of all sizes, says Microsoft CEO.
project in India, and among the largest in the world, by number of potential users,” he added. The PM, in his interaction with Silicon Valley CEOs, projected India’s commitment of connecting services through digital platform and hoped to improve the quality of experience at railway stations. “We are expanding our public Wi-Fi hotspots. For example, we want to ensure that free Wi Fi is not only there in airport lounges, but also on our railway platforms. Teaming up with Google, we will cover 500 railway stations in a short time,” he commented at the dinner hosted in his honour in the Silicon Valley. While, in another major technological undertaking, Tech-giant Microsoft has decided to partner the government in setting up low-cost bandwidth connectivity roping an unprecedented
SUNDAR PICHAI GOOGLE CEO
SATYA NADELLA MICROSOFT CEO
Even with just the first 100 stations online, this project will make Wi-Fi available for the more than 10 million people who pass through every day. This will rank it as the largest public Wi-Fi project in India, and among the largest in the world, by number of potential users.
We believe that lost-cost broad band connectivity coupled with the scale of cloud computing intelligence that can be harnessed from data can help drive creativity, efficiency and productivity across governments and businesses of all sizes.
5,00,000 villages in the network. Stressing on the importance of computers in increasing efficiency of businesses and governments, Microsoft CEO Satya Nadella told the PM, “We believe that lostcost broad band connectivity coupled with the scale of cloud computing intelligence that can be harnessed from data can help drive creativity, efficiency and productivity across governments and businesses of all sizes.” These developments will have a massive bearing in connecting services and products by streamlining processes and clamping delays. High speed Wi-Fi
will help tourists and locals alike in having a better real-time awareness of transportation. It will help a number of small and medium businesses like online cabs and online food-delivery services – fuelling entrepreneurship and increasing competition, thereby helping consumers get best quality experience at competitive pricing. Tourism and footfalls, being a reflection of bilateral ties, should improve after much displayed bonhomie between the two governments and industries. PM’s second visit has been, indeed, a success on both fronts – style and substance.
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9
INFRASTRUCTURE Ministry of Shipping is spearheading the excercise to convert some noted lighthouses in the country into vibrant tourism products.
Pitch for lighthouse tourism, land parcels to be leased out at 78 locations By RITWIK SINHA
T
his could well be yet another manifestation of the NDA government’s intent and commitment to add new dimensions to the Indian tourism profile. In a country where innovative ideas to promote tourism have been few and far between, the proposition to add on tourism components to some of the existing lighthouses in the country is subtly taking a concrete shape and some noticeable action is clearly in the offing. Pushed by the Union Shipping and Road Transportation Minister Nitin Gadkari, the Directorate General of Lighthouses and Lightships (which is spearheading the move) is ready with its first list of lighthouses which have been spotted as potential tourism products and where surrounding land will be offered to the potential investors for addition of tourism specific components. “Our first list comprises as many as 78 lighthouses spread across 12 states and union territories. We have already undertaken the feasibility study of 15 lighthouses which are expected to comprise the first bunch to draw investment. We are soon kicstarting a series of Road Shows to explore development of tourist facilities around the lighthouse by the potential investors,” Captain A M Surej, Director General, Directorate General of Lighthouses and Lightships told Tourism First in a recent exclusive conversation. 15 lighthouses
be beautified for the development of tourism without changing their basic character of helping the mariners and local fishermen. That cardinal principle stays in its place now that we are trying to turn the proposition into a reality,” Capt. Surej underlined. The present dispensation has given its verdict for developing these projects under the public-private-partnership (PPP) mode. As per the proposed arrangement, while the land provided by the government would become its equity, it will be leased out to the private parties for the addition of tourism components for a minimum specified period. “It is difficult at this stage to say how much of land will be released on lease. In some lighthouses, the area offered could be just half an acre. But in some other places, especially 17 lighthouses created during the British era, the offering could be fair enough in size for tourist facilities,” responded Captain Surej when pressed to quantify the size of the land parcel which the government plans to release for the development of lighthouses as tourism products. For eight lighthouses, the Directorate is expected to invite Request for Quotation (RFQ) from the interested parties. But for the rest, the usual mode of bringing in private investment would be through direct interaction with them wherein the potential investors would have to present a sound business plan. The private parties once in possession of the land (through the lease model) will have to set up basic amenities like
Muttam Lighthouse, Kanyakumari
HIGHLIGHTS
Idea of lighthouse tourism was first mooted in 2001 Lighthouse tourism to be executed under PPP formula Directorate General of Lighthouses identify 78 units where land will be offered to the private players Hundreds of acres of land will be released for lighthouse tourism development Directorate General of Lighthouses to organise roadshows at three locations to interact with possible investors a long-term asset for their business. Meanwhile, the government is also expecting that development of these lighthouses as vibrant tourist spots may well give a boost to local economic pockets. “Most of these lighthouses are in the remote areas of the country. And if they start receiving tourists, it will definitely help the local economy in terms of sales of local merchandise and handicrafts. So in that sense, the project could result in lighthouse led development,” Captain Surej pointed out. Later this month, the directorate will be interacting with the potential
Most of these lighthouses are in the remote areas of the country. And if they start receiving tourists, it will definitely help the local economy in terms of sales of local merchandise and handicrafts. So in that sense, the project could result in lighthouse led development
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investors for the first time on this unique proposition through its three road shows – in Vizag, Cochin and Chennai- which will be followed by a larger investors meet in Mumbai. And the outcome of these road shows is slated to decide how soon this programme can be turned into a reality. “We are confident that potential investors in the tourism business will like this idea and this project will take off soon. This idea has been backed by the Ministry of Tourism and all Coastal States appears to be quite enthusiastic about it. There is an overall positive mood about the project,” summed up Captain Surej.
List of lighthouses identified for tourism development
(Number of Lighthouses – 78; Total Land Lighthouses – 44; Total Island Lighthouses – 34) Land Lighthouses 1. Dwarka 2. Veraval 3. Mandvi 4. Kachchigarh 5. Gopnath 6. Alang 7. Umergaon 8. Kanai Creek
where feasibility study has already been undertaken include: Chennai, Mahabalipuram, Rameshwaram, Kanyakumari & Muttom, Kadalur Point, Agauda, Dolphin Nose, Chandrabagha, Gopalpur, False Point, Dwaraka, Verawal, Minicoy Kanhojee Angre and Sunk Rock. In the list of 78 lighthouses which have been identified by the Directorate, 12 are in Gujarat, 11 in Maharastra, 4 in Karnataka, 8 in Kerala, 10 in Lakshdweep, 7 in Tamil Nadu, 1 in Puducherry, 6 in Andhra Pradesh, 5 in Orissa, 2 in West Bengal and 12 are in Andaman & Nicobar Islands (see the accompanying chart). The list also includes 34 island lighthouses which are also covered by the ambitious Sagarmala Project of the government. Quite a success and generally considered to be unique products in many European countries, the idea of lighthouse tourism was first mooted about fourteen years ago. “The idea of developing lighthouses as a popular tourist spot came when the 47th parliamentary standing committee on transport and tourism observed in 2001 that lighthouses in the country can
CAPTAIN A M SUREJ DIRECTOR GENERAL, DIRECTORATE GENERAL OF LIGHTHOUSES & LIGHSHIPS
small resorts with bed and breakfast facilities, and in places closer to the cities, the company bagging the management rights can even set up a small conferencing facility. According to government estimates, each lighthouse will need an investment of at least Rs 1 crore and more depending upon the kind of amenities which will be put in place. “The investments per lighthouse could be Rs.1 crore and above. The investor can even initiate light and sound show or a laser show on subjects like the history of navigation in India. Just to cite an example, a private investor managing a lighthouse in Tamil Nadu can well opt to put up a laser show to depict Chola period. The whole idea behind this exercise would be to make the spots as much experiential as possible for the incoming tourists. These places already have unique scenic beauty as a natural draw and that will have to be complemented with attractive activities,” underlined Captain Surej. According to the Directorate of Lighthouses, the project is open for all kinds of investors including big hospitality companies to the prominent local firms who may well find
Island Lighthouses GUJARAT 1 Pirotan N. Point 2 Kalubhar 3. Piram 4. Savaibet
MAHARASHTRA/GOA 1. Uttan 1. Vengurla Rock 2. Korlai Fort 2. Sao George 3. Jaigarh 3. Kanhoji Angre 4. Ratnagiri 4. Sunk Rock 5. Devgad 6. Tolkeshwar 7. Aguada 1. Bhatka 2. Suratkal 3. Kaup 1. Chetwai 2. Vypin 3. Mannakodam 4. Vizhinjam 5. Thangesseri 6. Kannur 7. Alleppey 8. Kadalur Point
KARNATAKA 1. Oyster Rock
TAMIL NADU Land Lighthouses Island Lighthouses 1. Manappad 2. Kilakkarai 3. Kodiakkarai 4. Portonovo 5. Pulicat 6. Mahabalipuram 7. Kanyakumari – Muttam PUDUCHERRY 1. Pondicherry ANDHRA PRADESH 1. Antervedi 1. Nagayalanka 2. Sacramento 3. Vakalpudi 4. Santapille 5. Kalingapatnam 1. Gopalpur 2. Puri 3. Paradip 4. Chandrabhaga
KERALA
LAKSHADWEEP 1. Kadamath 2. Thinnakara 3. Agathi 4. Androth W. End 5. Kavaratti 6. Suhelipar 7. Chetlath 8. Kalpeni 9. Kiltan 10. Minicoy
1. Dariapur
ORISSA 1. False point
WEST BENGAL 1. Saugor Island
ANDAMAN & NICOBAR ISLAND 1. North point 2. North Cinque 3. Port Cornowallis 4. Sir Huge Rose 5. Aves 6. East island 7. Chidiya Tapu 8. Little Andaman 9. Rutland 10. Keating Point 11. South Sentinel 12. Narcondum
10
AIRLINES & AIRPORTS
Removal of 5/20 will improve ‘ease of doing business’ in India by NAVIN BERRY Thinking of 5/20 invites an obvious reference to 20/20. What is the difference between the two? One is playing the game, the other not. The first is saying let us slug it out, the other is saying that only restricted play will be allowed on the field? 5/20 is archaic, was invented to thwart competition, effectively ruling others out. It was creating a protective turf, a cushy playing field, where you can choose to bowl or bat, and never needed to look back. You scored at will. In a way, it was a level playing field, in that the level was dictated by you alone. It is a harsh reminder of an era when laws could be made to protect those close to corridors of power. It created a wall around your own team, or aircrafts in this case. This government has been in power for over a year and half. From day one, it has been talking of ease of doing business. Implied in this for the aviation sector, is that rules like these would go. Spice Jet’s Ajay Singh, in a recent television interview, said that the entire sector needed a holistic look, and bring about all reforms or none, and seemed to question a piece meal approach. Does this sound logical? Some reforms do not need a larger perspective in that what they represent is crystal clear. We believe that while a larger policy is under formulation, it is rules like these that can be wished away, and fast. And they will send the signal that this government means business. What could be the options to 5/20? In the past, a convoluted package was suggested as an alternative, even more backward than the existing rule, and so difficult to comprehend, an airline would need a full department to monitor it. There are suggestions to prune down 5/20 to 3/5 or some such thing. Just simply do away with it. And ask the protesting airlines, to quantify how it will affect them, and if their fears are
legitimate, find solutions for them. If they are not, then ask them to sit aside. If this is difficult, hand over the issue to a tribunal of eminent citizens and ask them to mediate and find an answer within a week. But do not let it carry on, showing a sense of paralysis in decision making – that choice of expression should hopefully set the pace! Over these years, the aviation scene is losing ground to foreign carriers – on every sector, it is heavily weighted in favour of the “other country” carrier. Indian carriers are neither not there or do not count. Most sectors our carriers do not fly, or have a token presence, most bilateral rights remain underutilised. Why is this important? Simply, because all foreign carriers, and with no exception, are keen on India for access to the vast Indian market. They are not, and it will remain doubtful if they ever would be, committed to growing Indian aviation per se except to build their presence to capture the Indian market – one of the few growth markets and growing faster than most. In terms of volumes, and the Indian middle class, India remains a prime market for every airline in the world. This magazine does not represent any business interests; we are talking of an aviation policy that builds Indian aviation, is beneficial to Indian skies, and helps the Indian traveller. Yes, Ajay Singh is right in that we need a holistic approach. There are too many anomalies. One sector is eating into the other, eroding into its viability and sustainability. But there are issues and policies that stand apart, and are not allowing the sector to grow, and can be acted upon, without hurting anyone, or a few. But then the larger growth has to be sought, not individual good. Whom does the removal hurt? Indigo and Spicejet have no aircraft orders that can take them beyond a five hour flight, and this effectively rules them out from becoming any significant players for international
Chinese stock market crash is helping Indian Inbound: Sharad Dhall
Indians are taking advantage of drop in oil-prices and global economic sluggishness to travel abroad, says President, Yatra.com. He opines that increase in FDI will help spurt businesses boosting travel and tourism. by SHASHANK SHEKHAR
HIGHLIGHTS
I
n an extremely dynamic international environment, with Chinese market crash and refugee crisis in Europe, tourism and movement have seen some impact. India, too, will not remain untouched by these developments. Significant devaluation of Indian currency – once falling to `66 to a dollar – has impacted outbound. However, Sharad Dhall, President Yatra.com is of the opinion that inbound tourism has seen tremendous growth in the last year post devaluation of rupee. “The rupee depreciation post the Chinese stock market crash came as a bonus for the inbound travel industry especially for travellers from Western Europe and US who saw reduction in their overall costs of travel to India,” he says. He supplements his argument by sharing that in addition to surge in enquiries by about 35 percent they also saw a marked increase in the number of bookings by about 21 percent during the period. “For outbound travellers, Yatra’s survey showed that when the rupee was at 63, Indian travellers remained unfazed and continued with their international holiday plans. However, when the rupee dipped to 66, Indian tourists changed their plans, shortened their trips as well as changed their choice of destinations,” says Sharad. While it also helped boost domestic travel as “some travelers deferred plans of holidaying internationally and looked at exploring destinations within India,” he shares. Nation’s rigorous international engagement in the past year with the international community also helped inbound, he tells us when asked whether PM’s whirlwind tours had helped generate interest in India. It is on the policy-front that the government has scored, he believes. “India has been actively granting
Indian Inbound has gained from the global economic sluggishness. China’s loss is translating into India’s gain. Indians are taking far more breaks than ever before. Family vacations and long weekends in vogue. Drop in oil-prices, attractive accommodation and travel packages by OTA’s are helping Indians explore newer destinations at a very competitive pricing. South Asian countries are becoming preferred Indian getaway. Cambodia, Vietnam and Fiji gaining traction.
Online space is competitive, preempting consumer demand must to stay in the race There is no denying that there has been in an explosion in the online market. In the past years, scores of companies have tried to create a market space for themselves. But, it is the ability to pre-empt everevolving consumer needs is what keeps some ahead of the rest, feels Sharad. “Yatra.com is currently one
of the leading portals in the online travel space and has always believed in “creating happy travellers” and have always projected ourselves as a one-stop-shop for all travel information and needs. Competition is healthy as it helps the market evolve. Our USP has always been of foreseeing trends in the
Visa-On-Arrival and E-Visas to a number of countries around the world. The process is definitely a lot more convenient and we have definitely seen a growth in enquiries and bookings from foreign tourists post e-visa facility,” he says. Indians, too, with constant innovation
market so that our approach becomes more streamlined as we reach out to specific target groups with products that are best suited to that category,” he says. “Our products have become more customer centric over the years and adaptable to changes and filtrations as per the desires of the consumer,” he explains.
in technology, access to smartphone driven internet and amidst a plethora of service providers have changed the way they travel. There has been a sharp increase in the number of people opting to indulge in weekend getaways. “Now Indians are looking to take breaks more
often with people planning holidays up to 2-3 times in a year. The trend of taking frequent breaks on long weekends has been growing over the past few years as people look for a quick, short respite from the hustle-bustle of their hectic lives. Our bookings for long weekends have almost doubled over the last one year as they do not require too much planning and are typically spontaneous in nature,” he tells us. Family vacations also continue to be a favourite, especially during the winter and summer breaks. With the rise of the neo-aspirational middle class, Indians are visiting unexplored destinations with countries like Cambodia, Fiji, Vietnam, and Seychelles gaining in popularity. “Holidaying internationally now has become more affordable with OTAs such as Yatra showcasing great deals and packages for various international destinations. The drop in oil prices has resulted in lower flight prices and a plethora of hotel deals and budget accommodation options has also helped in driving down the overall cost of an International break,” he explains. This has led to an emerging trend of budget travellers which means more and more people including the youth are now willing to take holidays. It is heartening to note that amidst a global turmoil, Indian economy is showing signs of stability. India recently piped China and the USA to become the biggest FDI destination. It augurs well for country’s potential in tourism industry feels Sharad. He believes that the government is taking several steps to make India a global tourism hub. “FDI is one such step in the same direction. It definitely will induce a fresh life in the sector and we are confident that it will be see new entrants in airline carriers and hotel chains coming to India and will be overall beneficial for all types of tourism; medical, adventure, heritage, inbound and outbound tourism,” he asserts.
11
AIRLINES & AIRPORTS HIGHLIGHTS
5/20 is an archaic rule that has outlived its times Ironically, the Indian carriers that are opposing its removal are those that were born in a liberal era where they openly faced competition and did well. It was the competitive spirit that brought out the best in them Drop in oil-prices gives the aviation sector a great window of opportunity when such a rule can be done away with Indian carriers need urgently to upgrade their share of the outbound market, before the battle is lost forever. 5/20 is a restrictive rule and given the cost of flying overseas, viewed in the perspective of existing carriers, its removal is the only answer The present government is committed to improving the ease of doing business. This is one single step that falls within the purview of the Central government and can be most easily implemented
routes. At least, in the visible future, we can’t see any plans. Then, what is their problem, when they do not have any business plans of their own on international routes? In fact, if new entrants are given the opportunity to fly overseas, it may leave the domestic skies safer for existing players. They have a head start over competition and they can keep consolidating while the new entrants can focus on foreign destinations. Jet Airways appears focussed on feeding Abu Dhabi, flying direct from a growing number of cities, straight into the home hub of Etihad. It is unlikely that they will get affected – given the growth of the market, and the speed of induction of aircraft with new entrants. That leaves only Air India. Given its size of operation, its problems, on paper it could get affected. My sense is however that as Air India focuses on profits, cuts out wasteful routes and expenses, aligns with STAR members operating in the country, their operation will become increasingly niche, and will remain unaffected. In fact, new entrants, to our mind, will find new markets and less likely to start competing with the likes of Lufthansa, British Airways and Singapore Airlines – ideally it may make more sense to them to fly on new sectors and create new point to point traffic. Do existing domestic airlines visualise the possibility of Vistara using wide body aircraft on metro routes, upsetting many of their calculations. Even if this be a possibility, can the entire sector be held to ransom, and growth withheld? Stretching this possibility, what happens if Air India starts flying its Dreamliners on the Delhi-Mumbai sector? Should the domestic traveller be denied this luxury, and for how long? The present oil prices are in fact a great opportunity for such reforms in aviation. Airlines have the cushion to play around, somewhat. If any dents do happen, they are less likely to hurt, at a time when some 40% of the airline costs have been reduced by over 50%. That would translate to more than 20% of the overall cost of operation. Indian carriers have a lot of catching up to do, and the sooner they get into the act, the better it would be for Indian aviation.
New Air Canada non-stop to step up business and tourism between the two countries In a major step forward in its strategy to grow its Toronto Pearson hub and international presence, Air Canada is adding Delhi to its extensive global network. The only non-stop flight between Canada and India, using the newest Boeing 787 Dreamliners, which are revolutionizing long-haul air travel, the operating economics of these new aircraft are making this service feasible. It will make this to be the first route dedicated to the larger, 787-9 version of Dreamliners, which began entering the fleet in 2015. Arun Pandeya, Country Manager, Air Canada commented on the recent development saying that – “We are very happy to see the positive response from the market ever since we announced the flights. We are very keen to encourage more and more travelers to experience the new Dreamliner and have therefore come out with a very special inaugural fare.” The move aimed at opening markets in India and continuing to facilitate travel for Canada’s Indian Community, caters, not only to, to Canada’s air sector and promoting increased trade, but is also giving travelers more options to connect with family and conduct businesses.
CAPA report also makes out a case for abolishing the 5/20 rule
A report commissioned by TATA-SIA airline ltd. and CAPA forecasts Indian aviation to reach 250 billion dollar mark by 2025. However, they red-flag regulations, seek infrastructure and supply-side augmentation
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ith an anticipated 3-fold increase in domestic air traffic, the Indian aviation sector has the potential to contribute to over 5% of the GDP and create economic value of up to USD 250 Billion on an annual basis by 2025, forecasts a report titled, ‘Maximising the contribution of aviation to the Indian economy’, prepared for the company by CAPA- Centre for Aviation. Released by TATA SIA Airlines limited, the report indicates a groundswell in employment through the aviation sector generating direct employment for more than 2.3 million people by 2050. Taking a cue from the global data and international best practices, it points to the need for a supportive supply and regulatory environment to realize the aviation industry’s transformative potential. The in-depth research based study of the entire aviation sector intends to inform and sensitize policy makers and other stakeholders about the enormous benefits of liberalizing aviation in the country. The report highlights aviation’s crucial role in releasing government’s priority initiatives including inbound and domestic tourism development, the ‘Make in India’ programme, enhanced trade competitiveness and broad-based socioeconomic development. It has been noted that the incremental domestic traffic handled in the last ten years was almost three times greater than in the previous 50 years, clearly indicating that Indian aviation is yet to achieve its true potential. The joint study called for the attention of the highest levels of government to establish a clear vision and roadmap for the sector and create an enabling environment reading that, “In a country with low penetration of aviation, where only an estimated 1-2% of the population travel by air and the annual per capita seats are less
than a quarter that of China, Indonesia or Thailand, the results of this nurturing could be transformative for the economy.” The report has looked at opportunities in five categories pitching for strong recommendations that could impact the future of Indian aviation:
Reduce the cost of doing business
• Rationalisation of taxes on ATF: ATF, which accounts for up to a significant 30-35% of the operating cost of Indian airlines, is 45% more expensive in India than in the United States, due to the combination of import duty, excise and sales taxation. The removal of sales taxation on ATF would bring its price down by around 20% and deliver a 7% drop in operating expenses, potentially boosting traffic by around 8-9%. • Lowering the high cost of airports: The aeronautical charges at India’s airports are amongst the highest in the world and more expensive as compared to major neighbouring hubs in the region such as Singapore and Dubai • Making in-country MROs more competitive: Service tax on labour, VAT on materials, and import duties applied to in-country aircraft maintenance providers should be lifted. This would obviate the current practice of sending empty aircraft to neighbouring hubs for maintenance and spawn an indigenous MRO industry, employing thousands and significantly contributing to the exchequer and to “Make in India”
Make it easier to do business
• Single window process and defined timeline in licensing: Currently to set up an airline up to 10 government agencies may have to be approached, which creates significant delays • Simplify RDG: Let market forces prevail - Cat 1 and Cat 3 routes should be combined into one. To promote remote region connectivity India can emulate
HIGHLIGHTS
Indian aviation sector poised to contribute to over 5% of the GDP, creating economic value of up to USD 250 Billion on an annual basis by 2025, states the report. Single-window clearance, liberal visa regime and abolishing 5/20 rule remain high on the wish list. The report also stresses on the need for a holistic aviation policy. Immense business opportunities remain untapped in lack of a clear policy directive, concludes report. It seeks to address policymakers, aiming to sensitize them about the need for a liberal aviation policy. It also highlights the need for strengthening Investment in airport infrastructure, airspace management and skill development, crucial to tackle the danger of infrastructural saturation in the coming years.
markets like the US, Canada, Europe and Australia, where airlines are incentivised to provide connectivity by means of direct grants and subsidies which ensure that relevant services are provided to the communities which need them. • Commercial matters should be left to the airlines: Let market forces prevail. Airlines should be allowed and encouraged to innovate for pricing and ancillary service for customers’ benefits • Expedite cargo processing and reduce dwell time: Lack of technology,
prevalence of manual procedures and processes, and greater incidence of multiple inspections means that the dwell time of air cargo can be 1.5-2 days for exports and 2-4 days for imports, as against a matter of hours at other global airports, thus increasing costs and spoilage of perishable goods
Create a liberal aviation regime
• Abolish 5/20 rule: Apart from the fact that there are no global parallels to this rule, the regulation is discriminatory to Indian airlines as foreign carriers that do not meet these criteria are allowed to operate in Indian skies, but Indian airlines cannot enjoy reciprocal rights. Indian carriers are best placed to promote India as a tourism destination and should be encouraged to provide international connectivity if they wish to do so. • Establish a clear bilateral policy: Rule based and transparent award and allocation of bilateral rights is critical for airlines to plan and deploy capacity, and for India to enhance trade and investment ties with strategic markets across the globe
Invest in airport infrastructure, airspace management and skill development
• Set up Airports Approval Commission: India is heading for a traffic logjam with most of the existing metro airport infrastructure getting saturated in 5 years. The Airports Approval Commission should determine what kind of airports India requires, when and where they are required, how much capacity is necessary and the level of capex that should be invested • Develop supply-side capacity: Investments are also required in airspace management, as also in skill development to support the sector’s growth
Focus on safety oversight
• Access to expertise and trained, fit-forpurpose resources are critical for the DGCA to maintain India’s international standing as a safe and well regulated jurisdiction The report concludes that Indian aviation sector is at a critical juncture when it needs government and businesses to form a strong partnership and create a collaborative environment to transform the industry and establish India as a global aviation hub.
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HERITAGE A scientific research has established the occurrence of Ramayana and Mahabharata. This development lends hope to the idea of a functional circuit around our spiritual heritage, spanning half the country, strengthening tourism and ties.
Scientific validation lends weight to the idea of Ramayana circuit By SHASHANK SHEKHAR
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n what could give an unprecedented boost to tourism by bringing to life a longcherished idea of Ramayana and Mahabharata circuits, and instill a sense of national pride in our shared heritage, an exhibition named “Cultural Continuity from Rigveda to Robotics,” at the Lalit Kala academy, in the capital, has thrown incredible light at our civilizational continuity using some of the advanced scientific methods. An extensive use of astronomy, archeology, paleo-botany and oceanography among other science disciplines have establish with confidence that Ramayana and Mahabharata did happen, while also drawing curtails on a century old debate on Aryan invasion theory. Sharing that the issue was to establish whether Ramayana and Mahabharata actually happened, Saroj Bala, Director, Delhi chapter of Institute of Scientific Research on Vedas (I-Serve) says, “If they, indeed, were true then what kind of scientific evidence did we have to conclusively prove it was the primary thrust of our research. Once conclusively proved, through the Sky views, planetarium software to pinHIGHLIGHTS point star’s position at a corresponding date and matching it with the description Scientific research using given in the historic texts, we knew we advanced methods have had proved their historical existence,” credibly established occurrence she shares. Sky-view of some of the of Mahabharata and Ramayana. most important events were explained This massive enterprise was in the exhibition. Using the references conducted for almost ten years. in Mahabharata, it was observed that Researchers have been able to Bheeshma passed away just after the date significant events like the winter solstice day and the moon was passing away of Bheeshma, in Taurus. The search for this sky view and mapped Lord Rama’s exile during the years 3102 B.C to 3139 B.C did route, lending weight to the show the occurrence of winter solstice idea of tourist circuits around on 19th December 3139 B.C, being Magh important spiritual sites. Shukla Saptami. The day after, on 20th December 3139 B.C, he passed away! Spiritual tourism is one of The research has also been able to the important pegs of overall pin-point Lord Ram’s exile route from tourism product, its growth Ayodhya – when he left the kingdom for will create ample business and 14 years. Through a detailed map, all opportunities in the nation. these places have been pin-pointed. With this fascinating development, Kathmandu
Ayodhya
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Link science to spirituality, let empirical evidence back our heritage, says Saroj Bala
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he bemoans the lack of projecting our heritage in right perspective and blames lack of scientific explanation for its failure in attracting youth. She further believes that Ramayana and Mahabharata circuit will give spiritual tourism in India a new high. “We have been carrying this research for ten years, now, and for the past six years it has been very intensive, objective and scientific. We are not influenced by any biases and base our research on empirical evidences,” she shares when asked whether such research could invite the wrath of ‘rationalists’ – who may term this exercise as a hidden agenda of the government. She believed that India has not been able to project its heritage in the right perspective. “Our history, sciences and arts have not been rightly projected to our younger generations and indeed to the wider world. Ours is a continuing civilization for 10,000 years, it is a Vedic civilization. Our music is almost 9000 years old. Ramayana and Mahabharata happened here. So, our history is richer than any other civilization. How we project is will depend on whether we start taking pride in it,” she argues. “We will raise the self-esteem of our countrymen if we inform and correctly project our history and heritage,” she adds. Bemoaning the lack of management of places associated with spiritual significance, she says that, “it is the common man’s aastha that has preserved sites associated with Ramayana and Mahabharata – ensuring their continuity. These places are so poorly managed that when you visit them you get little information about them. There is no credible scientific evidence put on display there to inform people. Our
SAROJ BALA DIRECTOR, DELHI CHAPTER OF INSTITUTE OF SCIENTIFIC RESEARCH ON VEDAS (I-SERVE)
A well planned and connected Ramayana and Mahabharata circuit will be huge tourist draws. They are a part of our collective narrative, we will do ourselves a favor if we can build good circuits around them.
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handling of such projects is also inept. A glaring example of it is Ram Setu which after an investment of 2,000 crore rupees remains in limbo.” Calling the idea of a circuit based on Ramayana and Mahabharata a game-changer for Indian tourism, she asserts, “there is tremendous potential in developing them into circuits. A well planned and connected Ramayana and Mahabharata circuit will be huge tourist draws. They are a part of our collective narrative, we will do ourselves a favor if we can build good circuits around them.” She further points towards the need for bringing scientific temper science in projecting our heritage. “We must be able to tell able younger generations that our history and collective past is not myth or folklore but actually a true story. This will give them more confidence in their own heritage,” she reasons.
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Map displaying the places visited by Shri Ram during his first journey from Ayodhya to Mithila along with Rishi Vishwamitra & places visited by Shri Ram during his exile from Ayodhya to Rameshwarm
the idea, mooted long ago, of developing a circuit around Ramayana and Mahabharata sites must get a fillip. Spiritual tourism is a strong peg of the overall tourism offering and a functional circuit with ample road, rail and air connectivity would jettison footfalls to new highs. As the map shows, a comprehensive Ramayana circuit would extend from northern Bihar and U.P to Tamil Nadu’s coast covering Jharkhand, Odisha, Maharashtra, Madhya Pradesh and parts of northern Karnataka. A circuit this comprehensive – which is wellconnected to nearby main towns and cities with adequate rail and road connectivity will bring unprecedented gains to the entire region. Tourism has been high on bilateral agenda in our recent engagements. Perhaps, the government may also look into roping Nepal and Srilanka to create an international circuit – as they too share a part of our history and heritage. The present dispensation has been keen on the idea of developing robust SAARC connectivity, seamlessly linking nations into a web of rail, road and air passages. Looking at the big picture, a trilateral spiritual circuit – involving India, Srilanka and Nepal – is a good linkage which will bolster people to people contact helping tourism across the sub-continent. State governments’, too, must realise the importance of developing these pockets, and ensure high-quality overall experience. Tourism being a state subject, for this circuit to realise, states will have to take a lead in the process. The moot question remains that whether we can act on improving connectivity and developing amenities around these places, linking them to important cities and towns – as vast portion of the trail passes through hinterland. The relevance of Ramayana and Mahabharata as a part of our collective conscience is not lost out on any one. Its impact on boosting footfalls and strengthening the overall tourism product of our nation can be extraordinary. It is an apt time to make this longcherished idea a reality.
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CINEMA TOURISM SUMMIT 2015 : REPORT
Mahesh Bhatt
Ramesh Sippy
Piyush Pandey
Vinod Zutshi
Subhash Ghai
Nina Lath Gupta
Roopak Saluja
Vishal Bhardwaj
Lighting the lamp: also seen are Dheeraj Kumar (extreme left) and Kiran Shantaram (second from right). also seen are On the high table:xtreme right) (e i Manish Goswam Shetty (centre) and Manmohan
Cyrus Pagriwala and advertising fraternity Arindam Mitra, senior president with Mukeshand ASAP president and vice Sharma and Karan An and This was the new avatar of Cinemascapes, as a summit of leaders from both tourism and cinema, bringing together ideas on building the business together. Senior representatives from both government and industry attended. There was serious discussions and networking opportunities on the sides. Over 200 delegates participated in this summit of ideas that culminated in a gala awards and theme night, with Thailand Tourism as the host.
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CINEMA TOURISM SUMMIT 2015 : REPORT
Time for action is the clarion call at the Cinema Tourism Summit 2015 Lighting the inaugural lamp: among others, Major Vijay Singh Mankotia, Vice Chairman, Himachal Tourism Board
A report by RITWIK SINHA
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ights, camera, action. These are probably the most defining terms for cinema, the most powerful soft tool on the planet. In its pure artistic demeanour, it unifies the humanity at large in a way probably no other medium can do. And in its commercial avatar, it has distinctive direct and indirect linkages with several other streams of life providing economic benefits to diverse stakeholders even as the cause and the effect roles often overlap. The world is increasingly rising to the reality of the catalytic impact which cinema and tourism can have on each other when they are brought in conjunction. There are umpteen examples of how a global blockbuster shot in a specific location has changed the fortunes of the destination forever. And some countries have very pro-actively made a note of it and provisioned for measures to encourage film making which in turn has expanded their tourism profile. With India being the second largest film market in the world, the stakeholders in the Indian film industry and their counterparts in the tourism sphere too are not oblivious to this trend and their collective pursuit to give a structured shape to their possible collaboration on the ground was visible when they assembled at Cinema Tourism Summit in Mumbai on 9th October. The event brought together diverse stakeholders – senior government officials, veterans of the film world, advertising, television, noted research and consultancy firms, travel and representatives of some states who showcased what all they have to offer to promote cinema tourism. And the major takeaway of this unique event (the only one of its kind in the country linking the screen and the scenic beauty) could well be dubbed as no short of a clarion call from the stakeholders that the two streams need to be aligned more closely in the country. The inaugural session which set the tone for the threadbare discussion during the course of the seminar made it amply clear that the concerned stakeholders have already voted for finding means wherein cinema and tourism can mutually feed each other. There simply was no dispute on what needs to be done? The critical point of
debate was: how to make it happen?
We know cinema tourism has immense potential and we are committed to encourage it as part of our ‘Incredible India’ programme. Both Ministry of Tourism and Ministry of Information & Broadcasting have adopted it as a common goal and in association with National Film Development Corporation (NFDC), we will be organising the first ever road show on cinema tourism at International Film Festival in Goa next month. We are also asking the states to prepare a data base of the best locations which they can offer to the filmmakers.” Vinod Zutshi, Union Tourism Secretary The scope of advertising to push tourism is limited even as ad films can add on to the legend of the locations. But the joy of shooting in India is completely missing, something that makes destinations like Thailand, South Africa and even Argentina hot favourites for the advertising fraternity. Arindam Mitra, President, ASAP The problems which we face has been discussed many times before. But there is a positive feeling that things will move fast under the new government and we hope all facilities and incentives will ultimately fall in place. There are countries which layout a red carpet welcome for film crews which often result in long-term tourism benefits. Those practices should be emulated. Ramesh Sippy, Veteran filmmaker I strongly believe that cinema tourism is not a niche but a mass market. And all stakeholders have to work in tandem to make the most of it. Unfortunately, no film maker thinks about tourism. They just stick to their script and a location may just fit in. Piyush Pandey, Ad Guru Since independence, only 475 foreign units have visited India shooting for over 1200 hours. This is too low. We are losing out in a major way on this front and we need to bring in place a regime which will facilitate better interaction between global filmmakers with local line producers and there should be a more meaningful collaboration between the government and private stakeholders.” Dheeraj Kumar, Noted film and television personality In the good old days, they used to make movies in the name of locations, like Love in Shimla. But we do not see such endeavours now. The Himalayan states have so much to offer and now we are sorting out the linkage and connectivity issues, this region must be explored by the filmmakers. Major Vijay Singh Mankotia, VC, Himachal Tourism Board
MoT backs cinema tourism, wants states to prepare data base on locations A critical assurance that the government is now backing this idea completely came from no other than the Union Tourism Secretary, Vinod Zutshi. “We know cinema tourism has immense potential and we are committed to encourage it as part of our ‘Incredible India’ programme. Both Ministry of Tourism and Ministry of Information & Broadcasting have adopted it as a common goal and in association with National Film Development Corporation (NFDC), we will be organising the first ever road show on cinema tourism at International Film Festival in Goa next month. We are also asking the states to prepare a data base of the best locations which they can offer to the filmmakers,” he said.
Doing away with permit phalanx
The summit, however, brought to the focus the major bottlenecks which filmmakers are facing in the country while trying to reach out to exotic locations for shooting which in turn is also affecting the cause of cinema tourism promotion. According to Dheeraj Kumar, the noted film and television personality, barring a few states (Delhi, Kerala and Goa) about 70 permits are needed for outdoor shooting in other places and this is a major turn-off factor for the fraternity. Despite natural beauty in abundance, statistics clearly reveal that India has not been a favourite turf for global filmmakers too who are wary of procedural entanglements. There are a host of glaring examples. For instance, the last flick of James Bond franchise SkyFall had spotted Rajasthan to shoot a train sequence. But the authorities sat on the proposal for too long and the shooting was shifted to an African country. Similarly a Batman series movie was denied permission to shoot a helicopter scene in Rajasthan even as they waited for seven days and lost a cool $3 million. “Since independence, only 475 foreign units have visited India shooting for over 1200 hours. This is too low. We are losing out in a major way on this front and we need to bring in place a regime which will facilitate better interaction between global filmmakers with local line producers and there should
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CINEMA TOURISM SUMMIT 2015 : REPORT
Tourism ministry road map for cinema tourism: Vinod Zutshi, Secretary Tourism Cinema tourism has tremendous scope in the overall scope of niche tourism in India.
At the onset, I want to congratulate the magazine and organizations who have supported this event. It has immense potential in the overall scope of niche tourism in India. And, as niche tourism, GOI and ministry of tourism gives maximum encouragement and impetus to this important area. It is a matter of happiness that this event has participants from across the cinema world who have the opportunity exchange ideas. The strongest aspect of this summit is that there is an open forum among the government, private stakeholders, and stakeholders from the film fraternity. A number of states are making presentations before the film fraternity.
of initiatives already undertaken in the past; we are working together to organize a symposium/road show during the forthcoming film festival due in November in Goa. I call upon entire film fraternity to, and we will see to it that a lot of state governments, too, participate in big numbers and make it a success.
Committed to building cinema tourism as a vertical of ‘incredible India’ campaign
Although, a lot has been done by way of interaction between the government and media entertainment industries, it is time that all stake holders including the central ministry and state governments act like facilitators and sit down to prepare a roadmap enabling cinema tourism in the Indian environment. I sincerely hope that this summit helps address these issues in a considerable manner; as regard to ministry of tourism, we are committed to build upon a cinema tourism vertical of the ‘Incredible India’ campaign by promoting cinemas of India as a subbrand of ‘Incredible India.’ The ministry of tourism and ministry of I&B have a common mission to promote India as a filming destination, both, for domestic and international film producers, and to coordinate with central ministries, state governments, UT administration for development of locations of film shootings, facilitation and promotion. With this common mission in mind, tourism ministry, NFDC and overall auspices of ministry of I&B shall accelerate the pace
be a more meaningful collaboration between the government and private stakeholders,” Kumar pointed out. Arindam Mitra, President, ASAP, also resorted to the argument that given the cumbersome processes across the operational value chain, advertising can’t become an effective tool to promote tourism at the present juncture. “The scope of advertising to push tourism is limited even as ad films can add on to the legend of the locations. But the joy of shooting in India is completely missing, something that makes destinations like Thailand, South Africa and even Argentina hot favourites for the advertising fraternity,” Mitra explained. Veteran ad guru Piyush Pandey endorsed this standpoint pointing out that even for indoor ad shootings, foreign locations like Budapest are given preference because of their cost effective offerings. However, according to the veteran filmmaker Ramesh Sippy, the film fraternity is now more hopeful of its permit related issues resolved expeditiously given a positive business climate which has emerged under the new government. “The problems which we face has been discussed many times before. But there is a positive feeling that things will move fast under the new government and we hope all facilities and incentives will ultimately fall in place. There are countries which layout a red carpet welcome for film crews which often result in long-term tourism benefits. Those practices should be emulated,” he pointed out. Vinod Zutshi made no bones that permits related issues are major hurdles which need to be fixed urgently. “I have gathered that in Maharashtra, they have brought down the number of permits for shooting from 65 to 31. Other states need to follow this example. The ultimate goal, however, should be in facilitating the single window clearance,” he underlined.
and enabling environment of opportunities present in the country today, let us all lay forth the blueprint and vision for cinema tourism and address some of key issues like creating state wise databank by identifying best locations for films, tele serials, advertisement, shootings and events to help identify talent banks from states, sharing details of infrastructure, incentives and promotional policies of state and central government; issues related to visas, work permits, clearances for international producers and very importantly create a single window clearance system for state governments and central government for facilitation of approvals and permissions. I am happy to note that in the meeting I had with secretary tourism of Maharashtra, she mentioned that out of 61 permits required to conduct shooting in the state, it has now been brought down to 3031, and they are, also, working on a single window system. I would call upon the four states that are present here; the govt. of India and ministry of tourism will certainly look into this important challenge rather an impediment I would say for growth of the Indian film industry.
Ready to sensitize stakeholders about opportunities, will take cinema tourism to heights its deserves
You can share your information, come out with incentivisation, and we will see that all the issues that are pending between the government and film fraternity are sorted out to the maximum extent.
Creating state bank data base and uniform single window clearance key issues. I would like to, also, mention that with a positive
Are filmmakers serious about promoting cinema tourism? Even as the film, television and advertising fraternity expressed their deep concerns on permit related issues in no holds barred fashion at the summit, ad guru Piyush Pandey presented a contrarian theory saying that the onus of promoting cinema tourism also equally lie with the private stakeholders. “I think, it is payback time for all of us. We are in the habit of always asking for something. But if we shoot in Rajasthan or any other state, can states freely promote that in their promotional campaigns? I strongly believe that cinema tourism is not a niche but a mass market. And all stakeholders have to work in tandem to make the most of it. Unfortunately, no film maker thinks about tourism. They just stick to their script and a location may just fit in,” said he. Major Vijay Singh Mankotia, Vice Chairman, Himachal Tourism Board too lamented that filmmakers are not doing their bit in promoting the precious location assets which India and particularly Himalayan states offer. “In
India is a kaleidoscope in itself, a continent in its own right, with varied landscape, vegetation and culture. There is colour everywhere which makes it very photogenic. It remains a treat for any photographer or a cinematographer; and the county’s rich heritage spreads across the nation. Issues for consideration, however, are lack of awareness about opportunity that India has to offer, regime of laws and multiplicity of agencies. In close co-ordination with film fraternity, with concerned ministries and stakeholders, we are ready to sensitize all the stakeholders about the importance of this sector and economic spin-off that it brings to the destination. We are committed for an integrated development of cinema tourism across India as an integral part of ‘incredible India’ campaign and will spare no efforts to take cinema tourism to heights it deserves. Before, I conclude I expresses my gratitude to the organizers for having invited me and given me the opportunity to address this august gathering. I wish this summit and endeavor all the success.
the good old days, they used to make movies in the name of locations, like Love in Shimla. But we do not see such endeavours now. The Himalayan states have so much to offer and now we are sorting out the linkage and connectivity issues, this region must be explored by the filmmakers,” he said.
Cinema tourism is growing, 3000 opportunities for the states
However, amidst this not so perfect scenario in terms of the synergy between cinema and tourism, a fast emerging positive trend is some friendly initiative set afoot by the state governments like Uttar Pradesh through their Film Mitra programme which is full of incentives. “A lot of films are being shot at the popular locations in Uttar Pradesh these days because they have come out with very attractive incentives,” Ramesh Sippy pointed out. The statistical inputs provided by the noted research and consultancy firm Ernst & Young also added a distinctive edge to the discussion by presenting a macro view in terms of kind of opportunities that lie ahead for
The stakeholders in the business need to be aptly sensitised to push Cinema Tourism on the growth highway. Udaipur is a hot favourite for even international filmmakers and we are ready to welcome the fraternity with open arms.” Maharaj Kumar Sahib Lakkshyaraj Singh , Udaipur As it happens elsewhere, the travel agencies should be playing the role of monetising arm of cinema tourism. But till date, nobody here in India has ever asked us to build a package for a destination popularised by cinema.” Mukesh Sharma, DG Films Division, Ministry of
Information & Broadcasting
cinema and tourism together. “Our study shows that cinema tourism is growing at 8.8 percent annually resulting in Rs 500 crore of cinema induced tourism in the country. By 2020, about 3000 films will be shot in India annually and this means 3000 opportunities for the states. They must promote their cinema specific locations aggressively,” Shuchi Trivedi, VP, EY maintained.
Sensitisation lies at the core of promoting Cinema Tourism
“The stakeholders in the business need to be aptly sensitised to push Cinema Tourism on the growth highway,” this appears to be the major summing up point emerging from the summit. “Udaipur is a hot favourite for even international filmmakers (James Bond series Octopussy was shot here) and we are ready to welcome the fraternity with open arms. But we often find government departments acting at cross-purposes,” pointed out Maharaja Kumar Sahib Lakkshyaraj Singh Mewar of Udaipur. According to Karan Anand, Director, Cox & Kings, the stakeholders at large are simply missing the big picture. “As it happens elsewhere, the travel agencies should be playing the role of monetising arm of cinema tourism. But till date, nobody here in India has ever asked us to build a package for a destination popularised by cinema,” he lamented. In the opinion of Mukesh Sharma, DG Films Division, Ministry of Information & Broadcasting, the process of sensitisation and bringing all stakeholders in tandem with each other will get a major thrust from the formation of a dedicated body like the Film Commission. “If Cinema Tourism has to be given a decisive push, we will need to bring in place Film Commission in every state. We have been talking about it for a long time. Now is the time to act,” he strongly emphasised.
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CINEMA TOURISM SUMMIT 2015 : REPORT
Thailand: Making the most of Cinema Tourism
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t’s clearly the case of reading the seeds of the future quite early and reading them right. Thailand, a global tourism powerhouse, has thrived in the recent decades on the basis of a host of niche tourism segments where it has developed unmatched expertise. Cinema tourism, specifically in terms of allowing large scale cinematic shoots in the country which have become its most potent global showcasing medium, is clearly one such segment. In fact, it would be no exaggeration to say that Thailand today stays incomparable in the list of preferred international shooting locations in Asia. The list of global blockbusters shot in Thailand is quite huge and prestigious: Around the World in 80 days (1950’s), Big Boss (starring Bruce Lee) and James Bond franchise Man with the Golden Gun (in 1970’s), Rambo: First Blood Part II (in 1980’s), Tomorrow Never Dies (1997), Alexander, Star Wars, American Gangster, etc, the list is simply endless. In the global movie making circuit, the popular theory is that Thailand built quite a reputation in 1970’s and 80’s by posing as other countries like Vietnam or China when it was difficult for the international crews to actually shoot there due to lack of permission. And it is not only the flicks churned out by Hollywood, crews from other countries (including India) too have lined up in the recent decade voting Thailand as a preferred shooting destination. Many recent Bollywood blockbusters like Kaho Na Pyar Hai, Zinda, Housefull 2, De Dana Dan, Entertainment, etc. have been shot at various exotic locations in Thailand. The country probably has found its best ambassadors in the films which have been captured on its turf and today is a major global tourism magnet.
“The first major co-production involving a Hollywood company in Thailand was Miss Swanna of Siam which was shot in 1923 and since then Thailand has steadily built its reputation as a global filming destination. Every year, more than 500 films are shot in Thailand, last year the number had stood at 631 films which translated into a business of 1,934 million baht. We have quite an institutionalised structure to ensure low cost and quality shooting facilities,” explained Soraya Homchuen, SORAYA HOMCHUEN DIRECTOR, TOURISM AUTHORITY OF THAILAND Director of Tourism Authority of Thailand IN MUMBAI in Mumbai while making a presentation Every year, more than 500 films are shot in before the Indian film fraternity at Cinema Thailand, last year the number had stood at Tourism Summit. Going by the statistics 619 films which translated into a business provided by Thailand Film Office, Japanese of 1,934 million baht. We have quite an film industry is most attuned to Thai locales institutionalised structure to ensure low cost closely followed by Indian movie makers and quality shooting facilities. when it comes to numbers (refer to the chart given below). About two-dozen films churned out by Hollywood are shot extensively in different locations in the country and they are mostly big budget and high-profile flicks. Not only films, Thailand is a favourite filming turf for even advertising professionals, documentary film makers, television serial and music video production. And the trend is resulting in quite an economic benefit for the country – its revenues out of cinematic and other related activities have broadly fetched it around an impressive 2,000 million Baht in recent years. Thailand’s orientation to push its tourism business via cinema is well reflected in the fact that its nodal agency to facilitate film shootings, Thailand Film Office, works in close conjunction with the Department of Tourism. “Thailand Film Office is in complete command of facilitating film shoots. They normally give all the required permission in 15 days,” Homchuen said. Foreign filmmakers are required to hire a local coordinator registered with the Thailand Film Office who helps in getting all other secondary permits on the ground. After the permit is granted, a Monitoring Officer is attached by the Thailand Film Office who accompanies the crew giving it advise at the locations. The country has now gone further ahead, by encouraging local production houses to install advanced post-production facilities. “We today have state-of-the-art studios, equipment rental vendors, labs for all kinds of post-production requirements. So in short, there is nothing which an international crew will find missing in our country,” emphasised Homchuen.
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FILM STATISTICS Countries and Number of Foreign Productions Filming in Thailand 2010 - 2015 Year
Japan
India Korea China U.S.A. U.K. Hong Australia Taiwan Europe Others Total Kong
Percentage
2010
123
128
41
22
22
12
24
8
16
79
103
578
+16.53%
2011
113
107
47
33
35
22
24
15
9
97
104
606
+4.84%
2012
149
125
33
24
27
32
37
6
1
73
129
636
+4.95%
2013
140
150
29
29
34
41
38
22
7
71
156
717
+12.74%
2014
133
107
22
37
26
37
28
18
2
85
136
631
–11.99%
2015
67
77
21
25
24
27
20
7
3
65
81
417
–33.91%
Thailand Film Office (10/ 8 /2015)
Number of Foreign Productions and Revenue in Thailand 2010 – 2015 Year
Advertising Documentary Music TV Sensitive Game TV TV Feature Others Total Revenue Percentage Video Program Content Show / Drama Series Film (Million TV Reality Baht) Program
2010
262
161
52
35
4
0
6
2
50
0
578
1,869.15
+108.19%
2011
292
156
35
68
8
0
4
7
36
0
606
1,226.45
-34.38%
2012
311
121
42
80
8
3
6
9
54
0
636
1,781.93
+45.29%
2013
345
150
47
92
7
0
7
9
67
0
717
2,173.35
+21.97%
2014
276
151
39
61
6
1
1
7
48
4
631
1,934.82
–11.00%
2015
199
100
36
25
4
9
0
10
32
2
417
1,859.00
–3.89%
Thailand Film Office 10/ 8 / 2015
17
CINEMA TOURISM SUMMIT 2015 : REPORT
awards
These are niche awards, unlike any other in the film industry, in that they recognise the contribution of films and people to the development of tourism.
The Best Film Award, for Haider for location shooting in Kashmir, Ramesh Sippy gives the memento to Vishal Bhardwaj
The Best Film Award, for an overseas destination, to the makers of Queen
The Best Film Award, for an Indian destination, to the makers of Udaan, from Mahesh Bhatt and Manish Goswami
The pioneer of Indian cinema, Subhash Ghai, receives his memento from Ramesh Sippy and Manmohan Shetty
The Gold Award in the Advertising Commercial category to Nirvana Films
The Silver Award in the Advertising Commercial category. UN Pandey, ASAP receives the memento on behalf of Ravi Udyawar Films
Television: Foreign Location
Advertising: Gold Award
Television : India Location
Advertising : Silver Award
Ek Nayi Ummeed – Roshni Pulse Media
Udaan Gurudev Bhalla Productions
Film: International location The pioneer of Indian advertising, Piyush Pandey, has done much for Indian tourism, directly for promoting the ‘Incredible India’ brand and also through cinema
The Best Film Award, for an overseas destination, to the makers of Ek Nayi Umeed
Queen Phantom/ Viacom 18/Vikas Behl.
Film: India location
Haider VB Pictures / Disney / UTV/ Vishal Bhardwaj
Daman & Diu Tourism O & M/ Nirvana Films
Uttar Pradesh Tourism : Home of Taj Ravi Udyawar Films
Pioneer of Cinema Tourism Subhash Ghai
Pioneer of Cinema Tourism (Advertising) Piyush Pandey
More favourable provisions needed to make India a powerhouse for shooting of commercial films: ASAP
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Roopak Saluja at his presentation
oing by the general perception, advertisement filmmaking (running into a few seconds) can be a child’s play when compared with movies or television serials. But according to Roopak Saluja, Senior Member, Executive Committee of Association of Advertising Producers (ASAP), there couldn’t be any other more unfounded assumption. Saluja made an elaborate presentation at Cinema Tourism Summit highlighting the stumbling blocks for the Indian advertising industry. In the world’s second largest consumer market, no doubt, that advertising industry has attained a certain degree of maturity in terms of scale. But Saluja emphasised that with some supportive measures, this position can be further consolidated. “To consider advertising a small affair vis-à-vis cinema is a fallacy. For a big budget Hindi movie, the average per second shoot costs `70,000, for a television serial it is `750 but for an advertising film, it works out to be `333,333 for every second. We have got to be more precise and meticulous in our story telling,” Saluja commented. Even as Mumbai has a presence in the global advertising hotspots, in the last couple of decades new defining centers have come up across the globe which are posing a serious challenge in terms of choice of location for the Indian advertising fraternity. “For the local advertising fraternity, Thailand has become the most favoured location for shooting after Mumbai. Given their incentives, at times it even becomes cheaper than shooting in Mumbai. Similarly Cape Town, which offers one visa permit option, is a formidable location on the global advertising circuit. Some locations in the Central and Eastern Europe too have come
up strongly because of their extremely supportive policies,” he pointed out. With serious competition emerging from several quarters, ASAP strongly believes that to make India a truly global center for advertising and related production, a spate of supportive measures are urgently needed. “We urgently need single window policy clearance system for all advertising shoot facilitation. At least it should be granted for a few happening advertising centers. It will help in drawing international advertising crews as well. We will also need some visa process overhaul for advertising professionals – the authorities should be more forthcoming in issuing temporary, short-term work permit. In a location like Mumbai, which is the nerve center of Indian advertising, we will also need government’s support in keeping workers’ unions at bay,” Saluja demanded. With supportive policy provisions, ASAP is convinced that Indian advertising can skip to new highs given the larger infrastructure available in the country. “We have adequate capacity to become a major global production center. We have state-of-the-art facilities and equipments and defining studios like Reliance and MAD. If we have better operational environment, we are confident that global FMCG majors like Unilver and Procter & Gamble will bring more advertising production to India, “Saluja commented. Meanwhile, ASAP is also eagerly waiting for the formation of Film Commission of India which it believes will help the advertising fraternity with its focused facilitation approach. “Film Commission will clearly be a big thing and we believe, among other things, it will also significantly contribute in making Mumbai a global powerhouse for advertising,” Saluja summed up.
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CINEMA TOURISM SUMMIT 2015 : REPORT
voices Croatian Ambassador
Cinema tourism can bridge knowledge gap between our two countries
Indian cinema industry is of extreme importance to tourism and destination awareness. Who does not know Bollywood industry? I have watched a few films myself, Slumdog Millionaire being my favourite. The Indian film industry sets outbound trends as people get to see new destinations and follow it up with a visit. As a representative promoting Croatia, I can tell you that it is beautiful and is being discovered and rediscovered by Indian tourists. Croatia has 1,247 islands, more than 6,000 km of coast, HE AMIR MUHAREMI and was visited by 13.5 million tourists AMBASSADOR OF CROATIA TO INDIA last year. So, the Indian film industry can The Indian film industry can find many find many wonderful locations, spots and wonderful locations, spots and extensive extensive technical assistance to shoot there. technical assistance to shoot there. Croatia and Indian people, the knowledge between the two countries is limited. It will improve when we get to know each other. Cultural exchanges, business ties and of course cinema will help bridge that knowledge deficit. And I am sure that it will happen as bilateral numbers grow.
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Ashish Singh, VP Yash Raj Films
Single window clearance a standard international practice, make it easier for us to shoot It was a fantastic event that got who’s who of different industries under one roof, we got to meet eminent and key people from tourism industry and government representatives. It gave us a great opportunity to discuss with them requirements of film shooting in India and experiences we had shooting internationally, having shot abroad extensively. How can we gain from those experiences and incorporate them in a policy with various states in India to ASHISH SINGH make it easier to shoot here was part of VP YASH RAJ FILMS our discussion. Single-window clearance Single-window clearance remains top on our agenda, it is a standard international practice remains top on our agenda, it is a standard and must be made a part of cinema policy in international practice and must be made a part of cinema policy in the country. Taking the country. shooting permits, from different authorities becomes a cumbersome experience. We would, also, want international producers to come and shoot here, it will create new avenues for business and collaboration.
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Dheeraj Kumar
Cinema and TV now going hand in hand, need more attention and bigger platform I am extremely happy to be here and also participate as a speaker. It is a very important platform for cinema and television which is currently in its ninth edition and explores possibilities of bringing the world closer actually. I have explicitly spoken about the fact that cinema and television are going hand in hand. Television, by the way, in past 8 years has grown at 15.5%, accounting a total of 575 billion rupees. Cinema, of course, is a bigger entity but Indian TV DHEERAJ KUMAR also needs more attention and bigger EMINENT TV & FILM PERSONALITY platforms from our own fraternity and It is a very important platform for cinema the government. I have suggested a one and television which is currently in its ninth ticket window system, and freedom from edition and explores possibilities of bringing excessive red-tapism. Big-ticket production the world closer. houses from the west hesitate shooting in India, this must change. However, I believe that, through this platform, once we exchange our thoughts with government, possibilities are there to improve the existing scenario.
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19
CINEMA TOURISM SUMMIT 2015 : REPORT Rwanda High Commissioner
Rwanda a growing Hollywood destination, want Indian film industry to join in It was wonderful to attend this event on cinema tourism which remains an important means to create brand awareness. Rwanda, as you know, is an upcoming tourism destination which is HE ERNEST RWAMUCYO attracting film makers from Hollywood HIGH COMMISSIONER OF RWANDA TO INDIA as well. We hope to offer a lot more to It was wonderful to attend this event on cinema tourism which remains an important the Indian film industry and have them come and shoot at our diverse locations. means to create brand awareness. It was, indeed, a great opportunity to have a platform like this to showcase what we offer as a country and as a budding filming destination. We are a peaceful democratic country with beautiful and diverse landscapes. We are also working on providing attractive incentives to have thriving Bollywood industry come and shoot at Rwanda.
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Director, Thailand Tourism
A great platform to share knowledge systems and processes For India, film production is a huge industry because Indian film industry extensively shoots abroad. Now, it is also because a lot SORAYA HOMCHUEN of permissions are needed to shoot in India. DIRECTOR, THAILAND TOURISM MUMBAI We have been, through this discussions, We have been, through this discussions, share knowledge and process of how we share knowledge and process of how we undertake cinema tourism in Thailand. We undertake cinema tourism in Thailand. have been able to facilitate filmmakers well, it has resulted in score of filmmakers coming and shooting in Thailand. Only last year we had 107 Indian films shot in Thailand! In other countries as well we see Indian movies being extensively shot, ideally, it should have been shot in India.
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Maharaja Kumar LakshyaRaj, Udaipur
Nina lath Gupta
Government must act as a catalyst, cinema tourism will grow on its own
Great excitement moving forward after hearing so many opinions
NEENA LATH GUPTA MD, NATIONAL FILM DEVELOPMENT CORPORATION
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The general takeaway, for my money, is that everyone is excited and gung-ho about moving forward.
There is certainly a great deal of knowledge and awareness about cinema tourism and its immense contribution to the overall tourism and economy of any destination. It is a great learning curve and it is good to hear what people from the industry have to say on various issues impacting them. The general takeaway, for my money, is that everyone is excited and gung-ho about moving forward, and by what I heard a lot of it is in pipeline. So, we have a great deal of confidence moving forward. Piyush Pandey
It is a symbiotic relation, cinema and tourism can thrive together It is a positive thing for a forum like this to happen. And, I will go as far as to say that I look beyond cinema tourism, I look at the role of cinema in tourism. I shared that when you shoot in a particular place, PIYUS PANDEY getting facilities is not good enough, VICE CHAIRMAN, OGILVY INDIA promoting the destination is also a role We have to learn to be symbiotic in nature. of the filmmaker. Dheeraj beautifully Cinema has a larger role to play in the illustrated when Zindgi Milegi Naa Dobaara augmentation of tourism was shot in Spain, it was an obligation on the part of the filmmaker to allow promotion of those place for Spanish Tourism. So, it is a give and take for mutual benefit. We have to learn to be symbiotic in nature. Cinema has a larger role to play in the augmentation of tourism. I think it was wonderful discussion, some I agree with some I do not, but it was great to hear so many people.
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Rajan Kapoor, Kabir Khan Films
We need more government approved line producers, ensures quality service The debate is bigger than my purview, we a smaller part of the entire exercise being a production house. To be honest with you, when we shoot a movie, tourism is never on our mind. It is a natural outcome RAJAN KAPOOR of movies, the visual treat it gives to the CEO, KABIR KHAN FILMS We elaborated our experiences, of shooting audience. We elaborated our experiences, of shooting in India and abroad, and how it in India and abroad, and how it can be can be improved. It is wonderful to see J&K improved. government come up with single-window clearance, if it can be implemented as a national level policy it will work wonders for the film industry and eventually boost tourism. Another issue we raised was that of the need for more government accredited line producers –which is available in certain states – to be a part of each state. It ensures we are dealing with the right set of people and will get us quality service.
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First and foremost it is a great initiative to have so many diverse stakeholders coming under one roof who are related to the cinema world, because this is a MAHARAJA KUMAR LAKSHYARAJ parallel economy in itself which is ready UDAIPUR We believe that the government now needs to stand on its own two feet. It just needs to get recognized, it’s now time to put into to play the role of a catalyst – which film motion what all has been deliberated into fraternity wants too. a time-bound action plan. We are very happy to lend our location, and have been doing so right from 1920’, so it is not new to us. We believe that the government now needs to play the role of a catalyst – which film fraternity wants too. It is important for government to understand and be a little more sensitive to the needs of this industry and, by the virtue of the size and business it generates, it will take care of the rest.
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Ramesh Sippy
It is a win-win for cinema and tourism The crux of discussion was how tourism can be expanded and what role can cinema play in it. We need a lot of new visitors in. There are two types of tourism generated from cinema. One directly related to film unit going to a spot and shooting there, involving local people. Other is generated by viewing films and RAMESH SIPPY CHAIRMAN, SIPPY ENTERTAINMENT following it up with a visit. There has been study which says that almost 40% of people There has been study which says that almost 40% of people decide their next decide their next vacation after watching vacation after watching movies movies. We have a common cause and a mutually beneficial path to tread. There are, of course, issues that need to be addressed, especially in India with such diversity. Issues like incentives that states and centre can offer by way of relaxation in taxation and other subsidies. The government in principle has, also, given a green signal to reaching as close to single-window clearance as they can get, we are now working on the practicality of it.
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Roopak Saluja, ASAP
Small policy initiatives can help industry
It was a fantastic experience to be here. There was some intense discussion on various aspects of location tourism and film production and I talked on the behalf of ASAP. We discussed, as television producers and brand based content face, challenges we face – that are a little different from the film industry, just because ROOPAK SALUJA of the eco-system we operate within. EXECUTIVE COMMITTEE MEMBER, ASAP What makes our job a tat bit more Challenges we face are a little different challenging is that we have a very little from the film industry, just because of the time within which we have to complete our eco-system we operate in. assignment. Costs are a factor too, a second of advert on TV costs a whopping 3 lakhs, much more than TV or films. So, these are some of the industry challenges we face. There are things like easy visa clearances and clarity on visa with single window system that will help us grow much better.
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20
CINEMA TOURISM SUMMIT 2015 : REPORT
Film Commission to become a reality before March end, assures NFDC
The formation of a dedicated Film Commission is expected to make India a hot favourite for many international production houses. It is also slated to sensitise the states to have more cinema friendly provisions in place.
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or ease of filmmaking which would subsequently give a decisive push to the cinema tourism segment in the country as well, one critical demand of the film fraternity is the urgent formation of a dedicated Film Commission of India. This, in fact, has been a long-pending demand. Billed to act as a one-stop facilitator for all kinds of shooting requirements for domestic as well as international crews, many countries in the world have made a mark in cinema tourism thanks to the presence of a dedicated agency (in the US, the Film Commission was formed way back in 1940). “ I have seen so many small countries which have done exceedingly well in tapping their cinema tourism potential since it is driven by a dedicated authority there,” pointed out Uday Singh, MD, Motion Pictures Association India in a specific session dealing with the proposition of forming a National Film Commission in India at Cinema Tourism Summit. The good news, however, is: Film Commission of India may soon become a reality. Nina Lath Gupta, MD, National
Film Development Corporation (NFDC) who addressed this session not only assured the fraternity that the Film Commission proposition is inching close to the finishing line but also explained the possible broader operational contours which this agency will have. “We are pretty much close to the goal of forming Film Commission in the country. I think, before the end of this fiscal, this commission will be in place,” Gupta told the gathering. However, she was quick to point out that the commission will have to surmount many critical challenges and the industry should not harbour unrealistic expectations from it. “Setting up a Film Commission and making it effective in a big country like India will not be that easy. So nobody should expect any fast food solutions from it. The concerned departments at the center and the state levels will have to function in tandem. But I believe there is a larger awareness about the catalytic impact of a Film Commission at the administrative level and this could significantly change the scenario in three years’ time,” Gupta pointed out.
Gupta gave further details pertaining to the possible functional nature of the Film Commission of India. To begin with its role will be that of an enabler and will not be directly involved in issuing any clearance at any stage. But it will suggest the government of the required policy intervention to create seamless cinematic shooting environment. This could range from advising the government on specific visa issues to come out with measures to encourage ancillary services for the filmmaking. And then it will closely coordinate with the state governments to make it easier for the filmmakers at the ground zero level. “We will be working closely with the state governments. It will be very important to sensitize the local level officials. There already seems to be a positive mood for facilitating filmmaking in some states like Gujarat, Telangana, UP and Goa and I think other states too will realise its benefits soon,” she added. A critical initiative which Film Commission of India is expected to set afoot relates to creating cinema centric workforce at the local level. “A major drive for this commission would be to structure a training programme at diverse locations, probably under Skill India programme,” she informed. A moot point, however, is: how will the country be attracting the international production houses after such an agency is in place? India, afterall, is believed to be losing out heavily vis-à-vis other countries by not becoming a favourite hunting ground for global dream merchants. “It is important to understand if we will have a new marketing pitch after the Film Commission is there. How will we reach out to foreign producers and
HIGHLIGHTS
Formation of a dedicated Film Commission has been a longpending demand of the film fraternity A dedicated Film Commission is expected to be in place before the end of the present fiscal The commission will act as a facilitator, to co-ordinate with states Will also assist the union government with suggestions on suitable policy intervention to promote cinema tourism Will closely co-ordinate with the Association of Film Commissioners International to bring in global best practices in film making
international production houses who have not been very warm to the idea of coming to India in the past,” Uday Singh said. “We may have a new marketing drive but our primary focus should be in creating right kind of eco-system,” Gupta responded. Meanwhile, the soon to be constituted Film Commission of India is also expected to forge an alliance with the Association of Film Commissioners International, a global body of 300 associations involved in productions across the world. “This association will help us in imbibing global best practices in movie making,” Gupta underlined.
Chhattisgarh aims to woo filmmakers with the Indian version of Niagara Falls Though Chhattisgarh, one of the youngest states in India, is yet to take decisive steps in making its locations a hotspot for film shooting, the state clearly has set its eyes in making deep inroads in this segment. Sanjay Singh, General Manager, Chhattisgarh Tourism Board who presented the case of the state before the film fraternity at Cinema Tourism Summit admitted that though just preliminary preparations have been set afoot so far, it is keen to see the vigorous cinematic action at its locations which are unique in their own rights. “We have done our assessment exercise and we believe that it is our eco-ethno locations which will make an appeal to the film fraternity. For instance, our Chitrakote Waterfalls which is compared with the globally popular Niagara Falls can be an attractive location for the filmmakers,” Singh pointed out while displaying shots of Chitrakote Waterfalls taken from various angles on the presentation screen. Niagara
Falls has been a major draw for several bigbudget international projects and according to Singh, once movie makers discover the unmatched splendour of Chitrkote Falls, it could well become one of the most popular shooting locations within the country both for the domestic as well as international production houses. “We can assure quality shooting facilities at Chitrakote Waterfalls. We already have Dandami Luxury Resorts in the vicinity of the waterfall which will ensure comfortable stay for any film crew. We will assist with all other requirements which the crew may want,” he further said.
Apart from Chitrakote Waterfalls, the Chhattisgarh Tourism Board has also identified some wildlife SANJAY SINGH pockets where it intends to GENERAL MANAGER, CHHATTISGARH TOURISM BOARD promote film shooting. “We are too rich in wildlife and We can assure quality shooting facilities at Chitrakote producers can make use of Waterfalls. We already have certain patches in the Kanger Dandami Luxury Resorts in the Valley National Park. The state vicinity of the waterfall which also has a hill station, Manipat, will ensure comfortable stay for which producers can explore. any film crew. The entire surrounding of Hasdeo Bango Dam is quite impressive in terms of scenic beauty. Additionally, we have about 50 dam sites and the film fraternity has plenty to choose from if they come to our state,” Singh added. Asserting that the perception of Chhattisgarh being a troubled state (due to Naxalism) is totally unfounded, Singh said the state tourism board will soon organise a familiarization trip for leading Bollywood personalities to get a first hand experience of its location offerings. The state may even opt to formulate a dedicated policy to promote cinema tourism. “ We do not have any policy as yet but we may take this route soon. For this, we are trying to gather inputs from the industry. We are committed to provide all kind of support,” Singh assured.
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21
CINEMA TOURISM SUMMIT 2015 : REPORT
Hassle free action guaranteed, affirms Gujarat Tourism for cinema shooting Indian states have begun to realise the unique advantages which cinema tourism brings to the table. While some states have already taken critical preliminary steps, others are firming up plans to make it big in not so distant future.
Jammu & Kashmir offers 100 locations for film shooting
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or Gujarat, cinema tourism is yet another government has also provisioned for a staggering niche vertical to further strengthen its 50 percent cent concession for accommodation tourism growth story. The state has already at Toran hotels which are owned by Tourism been identified for initiating measures Corporation of Gujarat. to promote film shooting in the state with an eye Many observers who wish to see cinema to promote its tourism products and this is well tourism becoming a formidable force in the future reflected in the fact that the state was adjudged are suggesting all state governments to come out “Best Film Promotion Friendly State” at National with a data base on their locations and facilities. Tourism Award, 2013-14. But Gujarat Tourism already seems to have taken The state has further reaffirmed its commitment a lead on this front. The official portal of Gujarat to promote cinema tourism when a Tourism has been added with new tourism policy was announced a dedicated section on cinema recently. “Film shooting at tourist tourism enlisting as many as 22 destinations in Gujarat shall be distinctive locations across the further encouraged through singlestate. The section also highlights window clearances along with a series of movie centric service necessary concessions as provided providers (ranging from line for under the relevant Government producers to transporters) who are Resolution,” the policy paper has available in different locations. “Any SANATAN PANCHOLI underlined. Speaking at Cinema information pertaining to shooting RESIDENT MANAGER, TOURISM Tourism Summit, Sanatan Pancholi, facilities in Gujarat is just a click CORPORATION OF GUJARAT Resident Manager, Tourism away. From the reverberating shores We have formed a dedicated Corporation of Gujarat further of Arabian Sea to the peaks of shooting cell with offices in emphasised on the precise nature Aravali, from the shimmering white Gandhinagar and Mumbai of supportive measures which the sands of Kutch to greener pastures, which take care of all kind of concerns of the filmmakers government has rolled out for the you can choose any location and who want to shoot their flick in you will find a very conducive film fraternity. our diverse locations. “We have formed a dedicated environment,” Pancholi added. shooting cell with offices in In the recent years, some major Gandhinagar and Mumbai which Hindi flicks have been filmed in take care of all kind of concerns of the state which include: Mohenjo the filmmakers who want to shoot their flick in our Daro, Goliyon Ki Rasleela – Ram Leela, Katti diverse locations. Our approval process is very fast, Batti and soon to be released Prem Ratan Dhan you will get the reply from us within seven days. And Paayo. Gujarat has also become very popular we are not charging anything from the filmmakers with television producers with popular serials like if they are shooting in open public places,” Pancholi Taarak Mehta Ka Ooltah Chashmah, Saath Nibhana informed. The period for getting approval from the Saathiya and Ek Doosre Se Karte Hain Pyaar Hum local police authorities also does not exceed more extensively shots at various locations in the state. than a week and furthermore filmmakers do not “We are confident there will be more significant have to pay any charges for the police protection additions to this list as we are determined to ensure provided to them while actual shooting. To make the that when in Gujarat, all you have to do is to say stay of the crew comfortable and cost effective, the action,” assured he.
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ab Tak Hai Jaan, Rockstar, Haider, Highway, Bajrangi Bhaijan – what do these films have in common? Any layman response to this would be: they have all been recent blockbusters. But there is another serious string which is shared by these flicks. All of them were shot in Jammu & Kashmir – extensively or partially. In a way, this is testimony to the spirited efforts put up by the state (often referred as Paradise on Earth) to reclaim its position of the most favourite turf for the film fraternity. Kashmir Ki Kali, Kabhi Kabhi, Silsila, etc. are some of the noted films in the past which considerably owed their appeal to their setting in the picturesque Kashmir valley. ALYAS AHMED NAZIR The new government in ASSISTENT DIRECTOR, Jammu & Kashmir under JAMMU & KASHMIR TOURISM the stewardship of Mufti Film producers in the past had Muhammad Sayeed has the serious permit issues in the shown immense agility state. That was rectified early this year when the government in wooing the Indian decided to set up single celluloid captains (early window clearance facility for this year he had visited movie makers. Now you get all Mumbai with a special permits within seven days. appeal for the leading Bollywood personalities to bring their projects to the valley state) and promises of conducive environment have been backed with concrete measures. “The most important reason why you should come to our state with your projects is that if you shoot in Jammu & Kashmir, the success of your film is guaranteed. We have become the lucky charm for movies,” Dr. Alyas Ahmed Nazir, Assistant Director, Jammu & Kashmir Tourism jokingly told the gathering at Cinema Tourism Summit. On a more serious note, he specified some of the recent initiatives which are expected to act as a catalyst for cinema tourism segment in the state. “Film producers in the past had the serious permit issues in the state. That was rectified early this year when the government decided to set up single window clearance facility for movie makers. Now you get all permits within seven days. We are getting a tremendous response from the film fraternity ever since this provision has come in place,” Dr. Nazir highlighted. There is no shooting charge at any location and furthermore, the government is keen to add more locations to the list of its offerings. Traditionally, Pahalgam, Gulmarg, Ladakh, etc. have been the popular shooting locations but now the government wants new locations to be aggressively promoted. “Our new scheme of things also include giving a big push to cinema tourism and for this we have opened up as many as 100 locations where shooting will be allowed. These locations, like Gurez, are largely untapped and if they are captured on cinematic canvas, tourists will be inspired to visit these places. We want to make the most of what cinema tourism can do for our state,” Dr. Nazir emphasised.
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CINEMA TOURISM SUMMIT 2015 : REPORT
The world of difference in facilitation: Aashish Singh and Rajan Kapoor
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ndia film fraternity which has the distinction of producing the highest number of films too have been sold to the idea of filming in exotic locations abroad for quite long and as their financial muscles have strengthened in the recent decades (with growing corporatisation), this trend has clearly picked up more momentum. According to an Ernst & Young estimate, Indian producers currently are spending about `750 crore annually in overseas shoots. For many observers, however, the baffling question is: why Indian producers are rushing off to distant corners in the world when the country itself has all kind of locations and destinations readily available. The answer probably lies in the world of difference in shooting facilitation – from an almost red-carpet welcome which some noted locations in the world provide to the constant worry in even arranging for the basic safety and security of your stars and crew members in India. No doubt, the choice of the location could be driven by the storyline but filmmaker usually zero upon the destinations which can offer hassle free experience wherein even landing a chopper on a busy Chicago road is not a major issue (as shown in Dhoom 3). A key session at Cinema Tourism Summit focused on this central issue and the summing up statement was: when it comes to filmmaking facilitation, a lot of ground needs to be covered within the country. Take the case of Yashraj Films, the largest film production house in the country. The company till date has shot in over 40 countries around the world for its myriads of movies and according to Ashish Singh, VP (Production), Yash Raj Films there is no comparison in the ease of shooting experience in some noted locations overseas and India. Well-oiled government machinery with its different wings working in tandem, tourism and cultural bodies on board, presence of a dedicated Film Commission, single window clearance, a well-structured network of line producers and modest to huge (in the case of upcoming countries like Croatia on international shooting circuit) fiscal concessions usually define the basic nature of shooting facilitation which popular locations in the US and Europe provide. “You have all seen the kind of action sequence
we had shot for Dhoom 3 on Chicago roads. All the government departments were aware of their responsibility and there was no hindrance at all. And this is the basic difference when you shoot abroad,” Singh asserted. Now juxtapose it with what Yashraj Films had to encounter recently when it was planning to shoot in two north-eastern states. “We are working on a film and we plan to shoot in Assam and Meghalaya. We shot off communique to both the states, while there has been no reply from Assam, authorities in Meghalaya too went silent after we responded to their preliminary query asking them pointed questions on security and subsidised accommodation for the crew.” In film making, the financial management has clearly become a more meticulous and professional exercise than ever before with budgets being tightly monitored and controlled. And this is also coming into the play in the choice of locations in a spell when depreciating rupee is a constant concern. Here the fiscal incentives play a major role – almost acting as icing on the cake for foreign locations known for their hassle free offerings. “ In US and European countries, they provide you with VAT, GST rebates. Just to cite an example, we had got $3 million back from Chicago administration after we had completed the shooting for Dhoom 3. In Croatia, they are providing 20 percent rebate.” “There are issues galore when it comes to shooting at different locations in the country ranging from getting permits to managing the crowd if you have a big star in the film. When we were shooting for Bajarangi Bhaijan in Delhi, half of our resources was directed to ensure the safety of Salamn Khan,” recounted Rajan Kapoor, Executive Producer, Kabir Khan Films. And permit entanglements in India may not necessarily always be administration enforced. It could emerge from unexpected quarters. “In all fairness, I must say that we got all kinds of support from the Jammu & Kashmir government for Bajrangi Bhaijan shoot. But seeking approval for a dargah song sequence turned out to be quite an exercise. The dargah is managed by a committee of 17 members and we had to get the green signal from all of them. All committee members were probably not ready for it and we had to seek the intervention of the chief minister himself to make it happen,” Rajan Kapoor added. A chief minister interfering to facilitate a film shooting can be a privilege showered on a cinematic venture which has a superstar like Salman Khan. But this largesse could hardly be available to lesser known filmmakers and that tells the story. It is not that shooting at international locales is always cost effective. For instance, Kabir Khan Films had shot some sequences of its recently released Phantom in Beirut. “Beirut is not a cheap destination for film shooting. It is more of an advertising shooting hub and attuned to Hollywood kind of productions and therefore is expensive. But it has a very supportive shooting system and line producers are very efficient. In such an expensive location, you have to resort to strategy like keeping the shooting hours limited on the financial management part. But the end result is satisfactory,” Kapoor pointed out. “Indian states have to go a long way in matching the overall experience which popular destinations provide to us,” Ashish Singh underlined. “A lot needs to change on the ground and we clearly need a better environment to promote cinema tourism in the country. The fortunate thing is: some states seem to be realising it and this may bode well for the future,” Kapoor summed up.
Taking co-production route to open new dimensions for Indian cinema
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he subtle unfolding of international co-production since world war II days has been a critical sub-plot of the growth of global cinema in the last seven-eight decades. The plain vanilla definition of co-production entails partnership between production houses of different countries facilitated by a concrete treaty which brings to the table well-defined incentives and subsidies and easier access to a desired location as well as cheaper inputs. The crux of such alliances are not only meant to result in products which could be easily marketed in two countries but also enhance cultural co-operation between them. These partnerships have often resulted in creation of products which are truly global in nature. But despite India being a major film factory in the world, international co-productions have really not taken off in a big way even as such treaties have been in existence for quite long. A special session at the Cinema Tourism Summit moderated by veteran film maker Ramesh Sippy looked at the various dimensions of the issue and the larger agreement emerging out of the discussion underlined the point that international co-production route should not be ignored any more. “We have co-production treaty with 11-12 countries. But I don’t think the statistics really reveal that such associations have been productive here,” observed Sippy. Guneet Monga, the co-founder of Sikhya Entertainment, whose recent internationally renowned films like Lunch Box (Indo-French co-production), Kissa (Indo-German co-production) and Massan (Indo-French co-production) have drawn attention to the benefits of international alliance in movie making presented the statistical perspective. “Not more than 20 international co-productions have taken place till date in India even as these treaties have been in existence since 1980’s and 90’s,” she lamented. The moot point is: what is holding back Indian production houses to make the most of this route? “ Is it the failure of the partnering production houses to choose a common subject?” asked Ramesh Sippy. “More than the subject matter, it is the legal and taxation issues which are the stumbling blocks. Countries like France and Canada have well defined tax structure. They have a standardized point system
for production. We do not have any such benchmarks. We do not even follow any standardized process in the structuring of these treaties. There is not much information and knowledge about how do we seal these contracts with multiple countries,” Monga explained. According to a senior official of the Film and Television Producers Guild of India, there has been a larger non-chalant attitude for such international coproductions within the fraternity itself. “We do not have any in-house expertise on the modalities for such co-productions. But we have not seen too many people in the industry who are willing to take this route. There are some countries which are working on co-productions with India. But there have been instances, when it has taken them 6-7 years to even close a deal. Understanding from top to bottom is missing of the value which co-production brings on the table. The industry is not even involved in the formulation of treaties. So practical problems are generally not included in the treaty. You get to know when the treaty has been signed. And then you struggle how to execute it,” commented Kulmeet Makkar, CEO of the Guild A critical bottleneck, as pointed out by panelists, also underline the dominance of the big studios system in the movie making business who would not want to share the satellite rights of their products which has become a major source of revenue for them. Monga, who is today considered as the major proponent of the co-productions thanks to the big-ticket success of movies like Lunch Box, however, firmly opined that international coproductions would propel the fortunes of a new generation of filmmakers who are not studio-backed. “We mostly make films on the basis of equity financing by HNIs. If international co-production is encouraged, these new filmmakers will have the option of subsidy financing which would be a big relief.” “We certainly need more meaningful dialogue within the industry to take forward international coproductions which could benefit everybody. We do not have enough knowledge, information and awareness on it right now. That needs to be clarified first. Then people will begin buying the idea,” Sippy summed up.
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Lalit forays further into F&B with mobile trucks; ties with WORLDHOTELS Committing to delve deeper into F&B and making it integral to its brand of hospitality, The Lalit group plans to launch mobile food trucks to reach out to potential clientele, informs Keshav Suri, Executive Director. He also expressed hope that the tie-up with WorldHotels will increase The Lalit’s reach in international market.
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aving established a strong network of 11 properties in the domestic market, Keshav Suri, Executive Director, The Lalit Hotels Group, is, now keen on expanding his hotel’s foot-prints in the F&B sector. And, to tap this growing segment, he has relied on an ingenious idea of catering to clientele through food-trucks. “Food-trucks are a fantastic way to exhibit a hotel’s F&B prowess to a much wider audience. Through our food-trucks, three of them currently operate in the capital at chosen locations, we are reaching out to potential clients in a way that few other hotels are,” he says. Adding that F&B will continue to be a strong component of the overall hospitality experience provided by the Lalit Suri group, he was keen on linking his 11 properties HIGHLIGHTS through mobile food-trucks for a unique culinary experience. “We are also keen on Focus on F&B will remain a top linking our properties in different cities and priority, says Keshav Suri. After towns through food-trucks operating around the runaway success of brands them. This will lend a seamless experience like Kitty Su and 24*7, the group for clientele, irrespective of where they stay will focus on top-notch culinary with us in the county,” he reasons. experience for its patrons. “Kitty Su and 24*7 have emerged as vibrant go to destinations in the capital, so Aggressive outreach through much so that they are brand in themselves. mobile food-trucks a key part of We have another Kitty Su in Chandigarh. So, its strategy. The group aims to our emphasis on quality F&B has always been link 11 of its domestic properties profound and has paid off well for us,” he says through food trucks lending a backing his decision to focus on enhanced semblance of continuity in their culinary experience. F&B offering. The group is, also, eying an improved Tie-up with the WorldHotels global presence by inking a partnership part of plan to increase its with the World Hotels. Sounding confident international visibility. Timing on improving their brand’s recognition in crucial and opportune as we global market place, he said that, “This tie-up plan to launch our property helps us tap markets previously out of reach in London next year, shares for us. The WorldHotels, with extended Keshav Suri. market outreach in countries like Australia, the USA and Singapore, will introduce our Strategy is also to compete brand to newer territories helping our future with the entry of multinational endeavors,’ he told us in an interview. “The companies with foreign Lalit Suri Hospitality Group personifies India presence which Indian hotel tradition, cuisines, art and culture in all its companies do not have. luxury hotels, palaces, and resorts. After strengthening our presence in the domestic market, we decided to intensify our focus on the international market,” he added. Noting that it was the extensive portfolio of the World Hotels, which now offered 450 hotels in 250 destinations and 65 countries that encouraged them to cement this association. Informing that they were on the way to opening a grand property in London in the coming year, the tie-up was timed to perfection and was a win-win for them, he said. “At a time when we are looking at establishing ourselves in London, it has immense significance for us. It is a 175 year old building which is being restored and we are very excited about our international debut. So, this tie-up will give us a wider reach and, hopefully, help us perform much better,” commented Keshav Suri on the important development.
We will lend international visibility to The Lalit, world bullish on India: Roland Jegge
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he Lalit which has an established presence in India had limited international recognition, and its association with Global Hotels will help it get a toehold in diverse markets, says Roland Jegge, Executive Vice President, Asia Pacific WORLDHOTELS. We are helping independent local brands cater to global audience, sell them to world clientele basically,” he says. “That has been our DNA for the past 45 years through our top-notch distribution, sales, partnerships and marketing, we have 35 offices through partnerships world over. We are taking The Lalit international. They are a strong domestic brand, but there awareness world over is limited, say in South America, Norway, Japan and Australia. We will promote The Lalit in these markets and destinations – where we have offices and people,” he adds. They have a clear strategy put in place aiming to woo five markets in each of ROLAND JEGGE the cities The Lalit has properties in. EXECUTIVE VICE PRESIDENT, ASIA PACIFIC “That is something we have had long WORLDHOTELS deliberation over, we sat down with That has been our DNA for the past their top bosses and picked out five top 45 years through our top-notch markets that that we wanted to look at,” distribution, sales, partnerships and he shares. “But having four hotels with marketing, we have 35 offices through partnerships world over. We are taking us which we started with – Bangalore, The Lalit international. They are a strong Kolkata, Mumbai and Delhi – each of domestic brand, but there awareness our products are oriented at a different world over is limited, say in South market. So, for each of our hotel we America, Norway, Japan and Australia. want to focus on five key markets,” he We will promote The Lalit in these explains. markets and destinations – where we He thinks that the association is have offices and people mutually a win-win prospect and The Lalit was poised to do well because of its positioning. “What works for The Lalit is the larger inventory in their possession,” he says. “Hotels with 200-400 rooms, we wanted that, especially, in India with certain positivity in Indian market. The whole world, right now, is watching India; it is the only large developing economy that is doing well. It offers a renewed opening for corporates, with so many joint ventures under way, the timing could not have been better,” he says with confidence. On the policy front, too, there has been a significant change in India’s perception in the international community. “The impact of easing visa regulations is visible with increased footfalls in India, it is ready to do business,” he says.
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RAJIV KAUL PRESIDENT, LEELA HOTELS GROUP
While we are reducing our debt which can only be largely done through disinvestment of assets, we are also looking to retain our portfolio because these are really irreplaceable assets.
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Leela to manage Ambience Shahdara, largest 5-star inventory in Delhi/NCR In an exclusive conversation with TourismFirst, R ajiv Kaul, President, Leela Hotels explains how the domestic hospitality major is battling the debt pressures trying to steer the company back on the growth path. Excerpts from this conversation… By NAVIN BERRY You have recently negotiated the sale of your hotel in Goa which in a way would ease your situation but happy days may still be elusive? The most important thing for us was to safeguard our assets. Having got into this debt trap, one had to be respectful of the wishes of the ARC, the banks consortia, etc. While we are reducing our debt which can only be largely done through disinvestment of assets, we are also looking to retain our portfolio because these are really irreplaceable assets. Each of them is a real gem. So that h as been our number one priority. The last unit to open was The Leela Palace Chennai, two years ago. In the last two years the company has not grown, we have primarily been in a stand still mode safeguarding our interests. I think we have
have sweeping views of the Taj. Though Amarvilas is 600 mts from the Taj, and we are 1.1kms from the Taj, it is on the same road. Today you cannot build within 1km from the Taj. However you can go higher. You can now see the Taj right from the base to the crown. We want to do 90 magnificent rooms.
confident that we will double this in the next five years. The challenge is to double it while maintaining the same calibre of hotels. That we have to think through very carefully. Who is your partner in Bangalore? Our partner is Snehdeep Aggarwal from the Bhartiya Group. It will be a 270 room hotel along with a 45000 sqft banquet and exhibition area and also 140 Leela branded luxury residences which are on sale right now. It is located close to the new airport. Then closer to home we are developing a property in Jaipur. This project presently is in choppy waters since we need Rs 100 crore to finish the hotel. We cannot put in any more money as there are restrictions from the banks. We are trying to bring in another investor into that.
What about the Delhi property with Supertech? It is not happening. However, we may get a new hotel in Delhi very soon-The Kempinski Ambience, Shahdara. We are looking at that and we will brand it as Leela Ambience Convention Hotel. With this, we will become the biggest player in Delhi/NCR with an inventory of 1200 odd rooms. I wish the Chairman was here,he would have been so proud.
In the last two years the company has not grown, we have primarily been in a stand still mode safeguarding our interests. I think we have been able to do that. And now moving forward aggressively, the company will be on the path of growth. been able to do that. And now moving forward aggressively, the company will be on the path of growth. Ideally for me, whatever restructuring you do should be without any further asset sales. That is precisely what we want. We don’t want any further asset sales. In fact, very soon we will be announcing a property in Bangalore which is under construction and has been signed. This is a management contract deal. The next cycle of growth will be through management contracts. We have a portfolio of eight hotels and we are very
Then construction of Agra is expected to start soon. This will be a pure Leela Palace play and we will be managing this property. We are hoping to break ground just after Diwali. We find it a very exciting project. How will that pitch you against The Oberoi Amarvilas, Agra? The ITC Mughal is still a prized possession as well. I think we have a chance to trump hotels such asAmarvilas and the reason for that is when Amarvilas was built you could only build up to 50 ft height. This has now been enhanced to up to 80 ft. We are getting 3 additional floors that will
have a plan of action to get out of it. It can’t spell it out in detail right now. It is a dynamic plan that changes every two weeks. However we can share the broad contours of what it will entail. Then the thing is really going to be that having built a brand, how do we monetize the brand? So the monetization of the brand is taking place through two major ways. One is, of course more management contracts being signed and taking the brand overseas. There is a luxury hotel in Seychelles that we are looking at. What about Maldives, which is another high yielding tourism destination? See once you get one hotel overseas and it starts doing well, then things follow. So you have to make a start. Seychelles is a better market, in the sense that there are only three hotels. And our local collaborator in the government, and we will get an investor, but these are still early days. We are also working on a Leela Palace property in Abu Dhabi. What about the second rung, the 4 star chainyou had initiated a few years ago? Still on hold. 4 star we will never do. But it would be an entry level 5 star category. Maybe a difference s imilar to what you have b etween a Trident and an Oberoi. I think we can wait for this. Because firstly we need to complete the Leela portfolio.
How is Leela Gurgaon doing? It’s a very fine property. It is doing well. The Oberoi, Gurgaon is the best performing hotel, and we are at the second slot. However, there is a gap in the rates which these two properties command. They have 200 rooms and we are 411 rooms unit. We have a larger inventory, and the larger the inventory, the more is the pressure to fill it.
Once you have signed up the Ambience Shahdara, and with your 1200 room inventory, it gives you a different kind of feel and image and power in the city… Then you think that you have so many people in the city, that you need two hotels in Agra, two hotels in Jaipur because with 1200 in Delhi, you can’t have only a 100 there. It doesn’t make sense. There has to be some balance.
How is the overall business climate happening for your chain ? Basically, there is no denying that we are not out of t he woods yet, but we
And then you have the capacity to feed the leisure market? Yes. There are different opportunities and possibilities that open up.
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Indian Hospitality: The challenge of aligning with tectonic technological shift
Industry veterans discussing pertinent issues; from (L-R): Mandeep Lamba, KB Kachru, Rahul Pandit, Puneet Chhatwal, Kapil Chopra and Farhat Jamal
On the occasion of PACE 2015 (PUSA Institute Hotel Management Alumni Association Annual Conclave) organised in Delhi last month, the veterans of Indian hospitality sector discussed the emerging dimensions of the business which are being shaped by the technological churnings which also have a disruptive side to them. A report: By RITWIK SINHA
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lvin Toffler’s prophetic theory that “the future always comes too fast and in the wrong order” (underlined in his book Future Shock released in 1970) has simply become an undeniable reality now. The growing technological churnings (most aptly and formidably defined by
rapidly changing needs of today’s global travellers?” This was the core theme raised at the session and the opinions, at best, were mixed in nature. There is clearly a larger realisation within the hospitality fraternity that the change is inevitable and that the nature of this change is not minor tweaking but rather something which may mark a significant shift from what has happened so far. And
only propel the hotel units to induce technology friendly offerings, it could also mean dealing with the onslaught of online sales firms which are increasingly growing in strength. And that is a major worry since it is filled with the proposition of your sales channel dominated by agencies outside your control. “ The standards maintained by Indian hotel groups are fantastic and I hope they will
KB Kachru, Chairman, PACE felicitating noted journalist Vir Sanghvi at the conclave.
the spreading tentacles of internet and myriads of processes stemming from it) has indeed added a new dimension to the billions of lives all across the globe cutting across all kinds of social and geographical divide. It has also forced businesses to change forever, compelling them to bring more online components and the resulting benefits for the endusers rather than staying complacent with their brick and mortar attributes. In fact, the cardinal rule of the game now is: you show any resistance to align with the online world and the chances are you will end up just being a fringe player. You may even find yourself in a situation where the controlling levers of your business may have slipped into the hands of external entities in the most critical areas of even sales and customer retention. What does the changing tide mean for the grand hospitality business? More specifically for the Indian hospitality sector. This was the crux of discussion when a panel comprising industry veterans met last month in Delhi for PACE 2015 conference (organised by PUSA Institute Hotel Management Alumni Association). And the deliberations clearly pointed out that the process of adaptability of technological churnings has not been as seamless as it should ideally have been owing to several micro-issues. “Are hotels really keeping pace with the
much of this would be driven by technology given the changing aspirations of the new age customers who in hospitality parlance today are also defined as “millennial travellers.” “There is no denying the fact that technology is becoming the key agent of change. We have to cater to new age travellers who have different aspirations. The hotels have to be swankier and smart units,” said Mandeep Lamba, Managing Director, Hotels & Hospitality Group, Jones Lang LaSalle. “For us, to align with the changing waves, the moot point is: how long we need to invest in technology? We have entered into an era where wi-fi has to be offered like soap and shampoo to our guests,” added Farhat Jamal, Senior VP, Taj Hotels Resorts & Hotels. But from the standpoint of the hospitality industry in general, the technological churnings could well have a malevolent side too. It may not
catch up when it comes to meeting with the aspirations of new age travellers. But the major changes are happening outside the purview of the hotel units where technology has emerged as a disruptive force as well,” opined Kapil Chopra, President, The Oberoi Group. There is no clear answer to how this story will further unfold. Global trends too suggest that even mightiest of hospitality players are finding it difficult to stay independent of the grip of OTAs. What had begun as a bromance in mid-90’s between hotels and online players has now been replaced by frenemy tag – mid-rung hotels will continue to look at them as friends but for the big units, they are well turning into enemies. However, a clear point that stares into the face of everybody is that hospitality industry has been, by and large, flat footed in devising a sound response to the technological tsunami. “Our industry has clearly been in the mode of adapting rather than innovating on its own. That is why OTAs have come into the place and have such an influence today. Globally, the larger debate today is: how to make legacy properties tech friendly? Things
are happening at a break neck speed because of technological intervention and the kind of changes which have happened in the global hospitality industry in last five years is more than what had happened in the preceding 25 years,” pointed out Puneet Chhatwal, CEO, Steigenberger Hotel Group. Chhatwal’s sweeping statement on the larger global trends vis-à-vis changes induced by technological development undoubtedly has clear lessons for Indian hospitality too. And a larger section of the Indian hospitality seems to be in agreement with the fact that adapting technology would does not merely rest at providing free wi-fi or installing check-in kiosks. It will go a long way in identifying customers’ preference and provide personalised services. “ Broadband today is as integral a component of our offerings as bed and breakfast. We have to prepare ourselves to make use of the technology to identify customers, their individual aspirations so that a personalised service can be catered to them,” suggested Rahul Pandit, CEO, Ginger Hotels. According to K B Kachru, Chairman (South Asia), Carlson Rezidor Hotel Group, Indian hospitality is at the cusp of a major shift in stance wherein hotel management will have to go beyond the prime consideration of a real estate play. “ Global leaders like Apple and Google have built their scale on the basis of their customer relevance. But we are still suffering from the legacy issue keeping ourselves glued to the real estate management principles. A tectonic shift has to come here.” From the standpoint of Indian hospitality, however, the critical challenge seems to be in drawing the line in terms of doling out technological offerings. That is doing new things without adding on drags on your balance sheet. “Indian luxury hotels are the cheapest luxury units in the world. It is the only country where 85 percent of guests in luxury hotels get free breakfast. There has to be a logic behind adding on the list of freebies,” responded Kapil Chopra. Puneet Chhatwal spoke no differently. “You just can’t keep on adding technological inputs in a free-wheeling manner. At some point, you have to draw the line.” However, with the inevitability of embracing technology a popular voice emerging from the Indian hospitality quarters, a popular theory doing the rounds is to integrate technological offerings with the larger experience quotient. “ Hotels will not just be brick and mortar units in the future. It will need to deliver the total set of experience which will have a strong technological component too. It has to be subtly integrated,” opined Rahul Pandit. Kachru too emphasised on technology being turned into a major pillar of the experience offering. “ Today’s customer is clearly looking for right experience which also includes technological offerings. But we have been visibly lagging behind on this front. We have to adopt it even if it means cutting corners elsewhere,” recommended he. For instance, when it comes to cutting corners, the possible solutions being looked at include doing away with concierge services (at least in the mid-segment hotel units) and even getting rid of front desks if the hotel has installed self-check in kiosks. Clearly, the future direction of Indian hospitality points out at dynamic changes (willing or otherwise) as reflected in this subtle comment by Mandeep Lamba, “Hotels in the future will be very different from what they are today.”
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HOTELSCAPES
We are making stand-alone hotels more competitive and better skilled: ZO Rooms ZO Rooms CEO Dharamveer Chauhan believes that hotel aggregators have helped improve the quality of service of stand-alone hotels, equipping them with requisite skills to compete in very competitive market. He is also upbeat on foraying into luxury segment with new launches. By SHASHANK SHEKHAR There has been a spurt in numbers of stand-alone hotels that are choosing to work under the fold of hotelaggregators like yourself. Do you see this as the definitive trend ahead? Is this trend a result of their inability to compete with bigger brands? One has to be able to evaluate strengths and weaknesses of being a stand-alone hotel. My family has been in this business for over three decades and whatever experience I have gained, I can tell you that as a stand-alone you have a better understanding of the city, its character, your cuisines can be extremely authentic and being local helps. You have a better knowledge of the terrain by the virtue of being from the place and operating there. Whereas, they can’t compete with the
IT and internet, thanks to smartphones, has given a lot of visibility to hotels. Whereas, looking at the last three years occupancy and ARR’s are have constantly fallen for these hotels as their visibility is just not at par with chains of hotels that have lured clientele with a robust online presence and engagement. And, a lot of these hotels have not been able to understand why they have not been able to do well for themselves, despite being good at service and hospitality.
properties in metro cities right now. Our change in market positioning is largely a customer driven change. We were catering to corporates, and as word of mouth spread, mid-level executives began enquiring about creating spaces which catered to them too. So, we decided to go ahead with the idea.
DHARAMVEER CHAUHAN CO-FOUNDER AND CEO, ZO ROOMS
Well-established hotels do not face issues like infrastructural crunch, and issues like managing the supply chain. We improve the interface between hotels and consumers.
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Could you elaborate a little on the skill part? Is there a training program put in place? We have a city-wise skill training programme. It is functional in each and every city we operate in and almost 80% of hotel partners are regular participants in it. We train them to maintain staff quality and regularly conduct exercises to enhance their interface skills. We, also, explain to them advantages of these exercises in helping grow their businesses. And, they
better management skills, importance of feedback and basic hospitality skills to better serve their clientele.
do understand and are extremely open to learning. This bodes well for the entire Indian hospitality fraternity.
What is your take on footfalls? Has tourism improved in India? What is driving footfalls right now? Basically, tourism is being driven by domestic MICE and international travellers. Domestic leisure has also seen a growth thanks to information age, awareness about new destinations and concepts like weekend getaway coming in vogue. Electronic travel visa facility and announcement of visa-onarrival has had a positive impact on the perception of our country that we are open to receiving guests. But, only having good hotels will not cut the deal. What about the add-ons? Our monuments and history is not wellpreserved. Compare it with a 500 year old site in Europe and you will see that we have a long way to go in order to make our products more marketable and accessible. Our local heritage, arts and craft is neither preserved nor marketed. Our destinations need newer products to keep them a busy centre for tourists. Unless all of it happens, we will not reach our full potential.
Could you then point some value additions that you bring? Well-established hotels do not face issues like infrastructural crunch, and management of supply chain. We improve the interface between hotels and consumers. The booking experience is smooth, you can order food, order a cab while booking rooms. These are some of the value-addition that we have brought.
You have primarily been a budget hotel aggregator. You started with Zostel, a budget hostel and now, as per media reports, are venturing into luxury segment with Zo prime and Zo star. What prompted this decision? The decision is a recent one and is a result of demand. Zo prime is a mid-level accommodation which ranges from `2,700-3,500 and we only have 12 such
So you are not bullish? No, on the contrary I am bullish. Simply because India is an unfolding story, it is an emerging economy and with so much FDI and businesses coming in, things are looking upbeat. The government has focused on entrepreneurship – which should boost MICE travel in tier-2 and tier-3 cities in the coming months. So, we have no reasons to worry on that front.
So, that is where you come in? What mechanisms do you put in place to make them more competitive? Yes, the idea is to enable them better understand their shortcomings through a process which is uniform and strictly monitored through internal auditing. We engage with them at different levels helping them understand the value of
The idea is to enable hotels better understand their shortcomings through a process which is uniform and strictly monitored through internal auditing. We engage with them at different levels helping them understand the value of better management skills, importance of feedback and basic hospitality skills to better serve their clientele. level of skill, training and inventory of an established five star brand. They do not have access to vast sales and marketing team and their reach-out is genuinely limited. Technology has changed the rules of the game. Lack of knowledge of how the online space operates must also be hindrance for these stand-alone properties? Absolutely, yes. In the past three-four years the online boom has been unprecedented. The outreach created by the expansion of
So your primary clientele are MICE travellers and corporates? It is true that a majority of our clientele are corporate travellers – who need crisp, clean room and decent facilities, mostly for overnight stay. We have designed our inventory to ensure that guests stay remains hassle-free. We are located at prime locations, wherever we are. It does not mean that, though, we do serve leisure travellers. There is a healthy number of family and young travellers using our properties as well.
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HOTELSCAPES : BENGALURU
Shangri-La launches its second offering in India, in the garden city in the south
By PRIYAANKA BERRY
“W
elcome to Shangri-La Bengaluru, how may I be of any assistance”, is the spirit echoed by the entire team during the highly charged launch of the newest luxury hotel in the city. Upon arrival, one can sense an excitement as the team is eager to share with their guests their latest venture which has been nurtured and thought through with great care. On the day of the launch, the management’s efforts to promote and market the property and build brand awareness within the community were evident, as Shangri-La Bengaluru welcomed guests amidst much fanfare. You enter to experience a hotel lobby that is grand and yet w ith a sense of warmth. It features a 4m tall sandstone wall installation from Rajasthan, the columns are highlighted with intricate Indian motifs. A laced floral abstract pattern is seen as a continuing theme. The setting is cosmopolitan with an Indian touch. This 19 storey building also stands amongst the tallest in the area advantageous to envious views of Bengaluru from both the guestrooms and restaurants. The location of the property deserves a special mention. In a city infamous for its traffic, and long hours commuting to the airport or to your hotel, you might want to opt for a hotel that is in the central business district and residential suburb offPalace Road. A reasonable 30 minute drive, the hotel is within easy access from the airport and to the city elite and the desired clientele of the well-heeled traveler. It is about a 15 minute drive to UB City, a prominent and popular corporate address and a 35 minute drive to Indranagar, one ofthe city's m ost expensive localities, which is densely populated with thebest of breweries, bars and restaurants that Bengaluru has to offer. Coming to the brand itself, one cannot help but wonder, why we do not have more Shangri-La properties in India. Since its entry into the market, 10 years ago with Shangri-La’s Eros Hotel, New Delhi, this is now only the second property
to open doors to guests. The growth of the brand has not been commensurate to the brand’s impeccable quality. It seems however that they have, at least, in Bengaluru found a suitable partner with Adarsh Developers with another property with them in the pipeline slated for opening in 2016. Also, traditionally an owner management brand, in India they have opted for the management route primarily due to very high capital cost and are thus relying more on finding the right opportunity with the right partner. Jens Corder, General Manager, Shangri-La hotel, Bengaluru’s opening remarks at the launch highlight the foundation of the brand philosophy. He elaborates that the “hallmark of ShangriLa hospitality is hospitality from the heart”. The brand started out as a family opened company in Hong Kong and the founding father was a gentleman by the name of Robert Kuok. He has based the values of the company on his own family values. Our service culture is routed in traditional Asian family values. It is all about greeting people, treating them with respect and offering assistance. We want our people to connect with our guests in a down to earth manner keeping in mind not to overstep boundaries”. Imbibing the local culture, preferences and sensitivities has been identified as a way of operating at a Shangri-La as well. Not only is it seen in the selection given to F&B, such as b Café, the all-day dining restaurant has a distinct emphasis on vegetarian options, but also in the design space with use of Indian motifs or for instance, the ‘durban’ (doorman), who greets you, dressed in a traditional Indian sherwani. On inquiring, the GM, an Australian with 25 years of experience in hospitality, sharedwhat will differentiate this property. “What will set this property apart is the food and beverage. It is our endeavour to position the hotel as an unmatched culinary destination in the city. The F&B is going to be a big part of its revenue contribution simply due to the sheer size of our food and beverage operation. We are also bringing what I hope will become iconic food and
HIGHLIGHTS
Located in a premium residential suburb and corporate hub of Bengaluru, the property is ideally located to attract their target clientèle. It is a 30 minutes’ drive from the airport. With a total of eight F&B outlets, including five main restaurants, Hype - a rooftop bar, lobby lounge and b Café pastry, the brand hopes to position itself as an unmatched culinary destination in the city. The combination of 1,256sqm banquet space along with the highest inventory of 397 rooms in the city uniquely positions the hotel for corporate and social events. Guest rooms and suites range in size from a very comfortable 41sqm to a more luxurious 274sqm. Highly recommended would be the Horizon floor, the 16th level of the hotel, for its panoramic views.
beverage destinations in Bengaluru. We have put in a lot of research into the market and have tried to come up with a product that will be liked, more so with the local market. We want to give Bangaloreans something that they can be proud of”. Currently the property has opened with b Café and their signature Chinese restaurant, Shang Palace. Before Diwali, that is the first week of November, hotel guests and Bangaloreans can expect the roll out of three more restaurants serving specialized cuisine. This includes Caprese, a Mediterranean restaurant, Saffron for Indian and Yataii serving Japanese. With a total of eight F&B outlets, including five main restaurants, Hype -– a rooftop bar, lobby lounge and b Café pastry, it seems to be competitively and attractively positioned
JENS CORDER GENERAL MANAGER, SHANGRI-LA HOTEL, BENGALURU
What will set this property apart is the food and beverage. It is our endeavor to position the hotel as an unmatched culinary destination in the city.
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for Bangaloreans. The combination of the banquet space, which offers 6 flexible rooms covering a total space of 1,256sqm along with the largest room inventory in the city, “is something that Bengaluru was really crying out for”. Corder added that their 397 rooms uniquely positions them as one stop solution for banqueting needs in the city. The guest rooms and suites range in size from a very comfortable 41sqm to a more luxurious 274sqm. To enhance your staying experience, highly recommended would be the Horizon floor, the 16th level of the hotel, for its panoramic views. This comes with access to the Horizon Club with the standard fare of meeting club room, breakfast, afternoon tea and cocktails in the evening. Prioritizing the local community has been a clear mandate. The hotel is banking upon its F&B which it hopes will help market the hotel and also position the hotel as the place to be for Bangaloreans. Keeping in mind local preferences, the catering facilities include the option of a pure vegetarian kitchen for banquets and events. With this they hope to capture a sizeable amount of revenues through both social and corporate banquets as well as group business such as MICE.
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HOTELSCAPES : INTERNATIONAL
Brand will enhance customer recognition, India a key market for Belmond Andrea Filippi, Executive Director – Worldwide sales, Belmond Group is bullish on the Indian luxury market in the months ahead. Aiming to double their representatives after this year’s successful road show, he believes that company’s new identity will strengthen its brand’s positioning. An excerpt: By SHASHANK SHEKHAR What brings you to India? Despite your presence in several Asian countries, you have yet to step into India in the real sense? A marketing push at this time, when there is a certain sluggishness in world economy. Why now? India is a very exciting destination for Belmond and one with huge potential as we see a very robust growth of outbound travel from India to our properties. To support our development of this important market, in October 2014, we started working with Heavens Portfolio on our sales and marketing activities to further raise awareness of Belmond across the Indian luxury travel trade. After the first 12 months of activities carried out by HP on our behalf, we felt this was the perfect timing to invest in a full roadshow. How was the response to the road show? Will it be an annual affair now? Absolutely. Senior management of Belmond attended from a selection of our locations in Asia, Italy, Spain, Peru, and Russia. The inaugural Belmond Road Show in India lasted for a full week and was an overwhelming success. We will make this an annual appointment and plan to double the number of our international representatives in attendance as of 2016. What sort of branding and market positioning are you looking at? What will be your USP to attract clientele? Our collection is diverse spanning land, and water, adventure and relaxation. Belmond holds a unique position in the market as a travel company that can curate bespoke journeys by land, rail and river from its own portfolio – and our expert reservations team can partner these with flights to offer a ‘one-stop’ easy booking process. Whether travelling on an iconic train or moving between landmark hotels, Belmond brings together incredible locations and exceptional sights to offer some of the greatest journeys in the world. Belmond has an extensive portfolio. Can you tell us about your global outreach? We have a unique and distinctive portfolio which embraces 46 hotel, rail and river cruise experiences in 23 countries – many of which are situated in iconic locations
HIGHLIGHTS
Strengthening brand’s architecture will make the company more attractive to property owners as Belmond advances to venture into the management of third party assets, says Andrea. Robust growth in luxury travel in the past years from India, it will remain a key market for luxury brands in years to come. Honeymoons, adventure, cultural and discovery long-haul journeys remains high in the Indian market space. Belmond aims to cater to this growing breed of Indian travelers, says ED. and are defining of their locality – Belmond Copacabana Palace in Rio for example, or, with cultural provenance such as Belmond Hotel Cipriani in Venice. Belmond has been pioneers of new destinations – leading the way for luxury travellers to explore new destinations. We were the first luxury river cruise operators to Myanmar when we launched Belmond Road to Mandalay 20 years ago – our two decades of experience making us leading experts to this destination. And in 1999, we were the first luxury hotel operator in Peru, where we now offer five hotels in iconic locations and the Belmond Hiram Bingham train that together provide a complete journey of exploration through this spiritual South American country. Our employees are proud and passionate hosts in their environment, enabling guests to discover the destination in a very personal fashion and we offer a service that is genuine, understated, intuitive and tailored to our guest’s needs. But what really sets us apart from other travel companies is not just our unique and diverse global collection – it is our ability to create bespoke authentic, local experiences– our hotels, trains, cruises are the gateway through which our guests can immerse in local culture. What kind of market segmentation have you planned in the Indian market in the near future? Whatever the occasion, Belmond ensures that it is marked in great style. From a lavish wedding to a multi-generational family holiday or the celebration of a milestone birthday, we have a team of
experts on hand to help create special moments that will never be forgotten. Given the geographic distribution of our portfolio of hotels, trains and river cruises, we mostly cater to sophisticated leisure travellers. The Belmond customers are seeking for in-depth immersion in the destinations they plan to visit and they look for a high level of service that is genuine, understated, intuitive and tailored to the specific needs of each individual guest. Could you give us some specifics? The specific market segments that we anticipate will be most successful in the Indian market include honeymoons, adventure, cultural and discovery longhaul journeys. Then family holidays. For groups segments: leisure groups, destination weddings and birthday celebrations and corporate incentive trips What is your take on the hospitality industry in India? How do you view the possibilities ahead? The luxury hospitality industry in India has some of the highest standards of service in the entire world, and many hotels that are internationally known as true “icons” in the global luxury hospitality. During our roadshow, we chose The Taj Mahal Palace in Mumbai and The Imperial in Delhi as the base for our delegation and the venues of choice for all our events and we were welcomed as royalties in both these jewels of the hospitality industry. Belmond is always open to consider new management opportunities for unique, historic buildings that would fit with our overall development strategy. India is certainly a key market of interest to Belmond, but there are no active
ANDREA FILIPPI EXECUTIVE DIRECTOR – WORLDWIDE SALES BELMOND GROUP
The migration to Belmond is intended to increase customer recognition in the marketplace, attracting new guests and stimulating increased visits across the broad scope of the company’s unique collection of exceptional hotels and travel experiences
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discussions for this market as we speak. How different is the new brand from the old one? What has been the change from the past? The migration to Belmond is intended to increase customer recognition in the marketplace, thereby attracting new guests and stimulating increased visits across the broad scope of the company’s unique collection of exceptional hotels and travel experiences from its existing customer base. Strengthening our brand architecture will also make the company more attractive to property owners as we advance in our strategy of expanding into the management of third party assets that are complementary to our existing collection.
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HOTELSCAPES : INTERNATIONAL
Starwood Hotels & Resorts accelerates growth in Africa and Indian Ocean with seven new deals
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tarwood Hotels & Resorts Worldwide is set for an aggressive expansion in Africa and Indian Ocean, increasing its market penetration across the region. With the expansion of its luxury, upper upscale and midmarket brands, Starwood will grow its portfolio by over 50% in the next five years, with more than 50 hotels operating and nine out of its 10 compelling lifestyle brands flying their flag in the region. With the new signings Starwood will further build its position in Nigeria and Egypt, increase its presence in Senegal and enter new markets, which include Mali, Kenya and Tanzania.
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Indian Culinary Forum to organize 12th Annual Chef Awards Indian Culinary Forum as a part of the celebration of International Chef Day will organize the 12th edition of Annual Chef Awards 2015 on October 23rd , in association with the apex body- Indian Federation of Culinary Associations and World Association of Chef Societies. Chef Davinder Kumar, President Indian Culinary Forum, says "The evolution and concept of this chef awards is to recognize honour and
Nairobi set to get a Carlson's Radisson Blu hotel in 2015
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arlson Rezidor is anticipated to open its first Radisson Blu Hotel, in Nairobi in 2015, with 271 bedrooms and feature a health club, spa and over 1400 square metres of conference space. “Experience Meetings” will be the newest attractive offering of Radisson Blu Hotel Nairobi. The meeting segment is key business for the hotel. “Experience Meetings” provides guests
with a consistent high standard of products and services – from the first to the last phase of their booking. Three elements mark “Experience Meetings”: The first is Brain Food; an innovative and responsible food & beverage solution developed by skilled chefs and nutritionists. Brain Food serves fresh, well-balanced and primarily locally sourced low-fat & low-sugar items: lots of fish, whole grain products, fruits and vegetables that keep the guests’ blood sugar level constant and help them to stay concentrated and to lower their stress level. The second is the Brain Box: a breakout room for participating hotels designed to elevate efficiency and to stimulate creativity. The Brain Box is equipped with a flexible furniture layout like movable lounge chairs and cushions, with adjustable light systems, and special tools like plexi-glass walls to write on. The third element is to enable connectivity: All Radisson Blu properties offer free and fast WiFi for all meeting delegates. Carlson Rezidor will bring a new international hotel brand to Kenya, and open a first class hotel delivering genuine hospitality. It intends to work closely to develop strategic partnerships with key local suppliers with a bigger vision to contribute to the growth of tourism and a better business environment in Kenya.
Carlson Rezidor’s set to expands in Australasia with first Next-Generation Park Inn in Fiji
promote among the fraternity of chefs and encourage youngsters to join the industry. ” Chef Vivek Saggar, General Secretary, of Indian Culinary Forum, says, chef awards have been marked as a special occasion to accredit a chef as an artist. The idea is to create awareness for the profession of chefs who have renowned name in hospitality sector and have set remarkable standards in the art of cooking.”
arlson Rezidor Hotel Group will ink a management contract with Fund Trust Joint Venture, to develop Park Inn by Radisson Fiji Suva. This is the second Carlson Rezidor hotel in Fiji, following Radisson Blu Resort Fiji Denarau Island, which is also jointly owned by iTaukei Trust Fund, an investment entity established by the Fijian government. Park Inn by Radisson Fiji Suva is scheduled to open in the second quarter of 2018. "We are excited to grow our partnership with iTaukei Trust Fund as we expand Carlson Rezidor's presence in Australasia (Australia, New Zealand and the Pacific Islands), beginning with Fiji's capital of Suva, the hub for regional businesses operating in the Pacific Islands," said Thorsten Kirschke, president, Asia Pacific, Carlson Rezidor Hotel Group. The hotel is located within walking distance of the main street, the wharf and the city's main bus terminal. It is located close to shopping malls, offices, banks, and the headquarters of religious organizations, the European Union office and many Non-Governmental Organizations (NGOs). The hotel will have an all-day dining restaurant and a lounge. To cater to demand from the MICE segment, meetings facilities includes a ballroom and meeting rooms. There will also be a fitness center and ample parking lots.
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HOTELSCAPES : EXPERIENCE
Experiential tourism is reviving art, generating employment at the grassroots: Sowmya
A more aware and connected traveler, today, seeks to interact with local communities, understand art, culture and explore new destinations. As concept hotels cater to this new breed, it is also helping shed light on our heritage and fast fading local art. By SHASHANK SHEKHAR
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oncept based experiences and getaways are finding traction in an urban India, which is seeking to explore newer destinations and products. An old-school concept of tourism would include museums, monuments, palaces, forts and shopping malls on a traveller’s itinerary. However, the new-age traveller is taking an offbeat route, engaging with local communities, and understanding India away from the glamour of major cities and towns in a new light. It is this concept that Rare destinations – a concept hotel based company – is taking forward. And in the process, some of these hotels are fast growing to become destination in themselves, says Sowmya R. Vijaymohan, Founder and Partner, RARE India. “We strongly believe in concepts. For our partner hotels, we look for individuality that they bring on broad. It cannot be that you wake up in Jodhpur or in Tanjavur, the hotel experience remains the same. And we have achieved this to some degree. Some of these hotels have become destination in themselves,” she says. For example, in Rajasthan we have Chhatra Sagar – which is in Pali district, falling between JaipurJodhpur drive. We have created a two night stay itinerary there. It has amazing experiences to offer, so it is a perfect example of experiential tourism. Similarly, we have another hotel partner called Shahpura Bagh in Bhilwara district falling between Jaipur-Udaipur drive,” she adds. She shares that visitors during their stay get an opportunity to witness a dying Indian folk painting art apart from interacting with local artisans. “Bhilwada is massive in terms of tribal art and culture. Our guests visit Phad painters – a dying folk painting art of Rajasthan – to first hand witness this art from the last two remaining practicing families. You get to meet them, visit their private forts, so the experience quotient is immense. These properties are creating newer offbeat destinations between two busy centers and giving travellers time to relax and enjoy their vacations,” she adds. Explaining that the idea behind the concept was to create spaces where one could soak in the experience and interact with local communities, she says that talking from the inbound perspective, India can be a very over-whelming experience for the first time traveller. “One is caught rushing between palaces, forts, bazaars and shopping malls. This back and forth between major tourist destinations doesn’t allow one to soak in the experience in peace. Also, through our partner hotels our guests’ also get to see the rural India, interact with local communities and participate in a plethora of activities – that allows them to experience India and Indian culture in a refreshingly new light,” she explains. However, on the hospitality front, one of the major areas of concern, especially for such stand-alone properties is the lack of reach in acquiring adequate skills and training to ensure top-class hospitality. She tells us that they have been augmenting skills of partner hotels through constant auditing and training regimes. However, she believes that individuality of each hotel remains their USP. “We help
HIGHLIGHTS
People are increasingly seeking to explore new destinations and offbeat trails. This growing trend is helping create new destinations in the hinterland. Beyond a level of expected comfort, guests are beginning to seek an interaction with the local community. It is enabling locals showcase their art, culture and heritage to much wider audiences. Experiential tourism is here to stay with growing awareness and enhanced connectivity; holds tremendous scope for employement generation at the grassroots, feels Sowmya. our hotel partners better understand clientele needs by familiarizing them with good hospitality service. There is a series of internal audits and quality check inspections, a lot of back and forth happens before they are allowed on come on board. We supplement them with resources, training etc. Therefore, we strive to maintain the experience standard that our clientele has had,” explain Sowmya. She explains that instead of focusing on prcing and luxury, they have focused on creating experiences. “We do not base our partners on pricing or luxury. We only concentrate on the experience bit. Therefore, our hotels are priced at very different levels. A camping experience in Ladakh may cost you `50,000 a night for a luxury tent, while there are hotels you will find accommodation in a couple of thousand rupees,” she reasons. However, much of their presence, despite having a responsive website, has been focused on offline marketing. She explains why she chose to focus on offline at a time when most of the businesses are going online. “The digital platform cannot be ignored anymore. It
SOWMYA R. VIJAYMOHAN FOUNDER AND PARTNER RARE INDIA
Through our partner hotels our guests’ get to see the rural India, interact with local communities and participate in a plethora of activities – that allows them to experience Indian culture in a refreshingly new light.
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is the big thing right now. But most of our work as a company is mostly offline and this is because our partner hotels are very different in character, “she argues. “They are not regular five stars or any other chain of hotels. Because they are either individually owned, most of them are at offbeat destinations. They
are small-key hotels, a majority of them are in 15-25 rooms inventory, while at some destinations there are even 6 rooms inventory. The largest partner we have had was 39 rooms inventory. So these hotels are not in the fight of ARR’s,” she tells us. Taking a stock of the footfalls in recent times, she told us that Indian market was majorly domestic driven and Europe no longer remained India’s major inbound. “Till a few years ago, Europe was our biggest market. But, this does not hold true anymore. Economic recession has impacted footfalls, “she tells us. “On the flipside though, there has been a tremendous jump in domestic numbers. Young travellers, who are so much more aware of surroundings, connected with internet, are seeking to explore newer offbeat destinations. They want to go beyond the usual monuments, palaces and malls experience, “she informs. As awareness and internet connectivity further increase, many such new and unheard tourism gems will get the due recognition. It will also hopefully shed light on a rich repository of local culture that remains untouched, she hopes.
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GLOBAL EXCHANGE
Jeju
Smart diversification of markets and products makes tourism pivotal asset to Jeju’s economy
Jeju Province is fast becoming a preferred MICE getaway, after ruling the roost as a honeymoon destination for south Asia and China. Its success lies in positioning tourism as a principal source of revenue generation and debunking the myth that tourism cannot be a lynch-pin to economy.
By SHASHANK SHEKHAR
J
eju, one of the nine province of South Korea, has limited brand awareness in India. A sleepy island stretching 35 km in length and 60 km in width which started to gain prominence in early 90’s as a honeymoon destination for well-off Chinese travellers, is becoming an all-round destination. With a constant dose of product enhancement, coupled with focus on quality visitor experience, it is creating a well-deserved name for itself as ‘Hawaii of Asia’. Its steady ascent as an engaging destination has plenty of learning to offer to India as a tourism product and a destination. Smart diversification of markets and products: Despite being hamstrung by lack of available space, by the virtue of being an Island, Jeju has done remarkably well for itself. After gaining prominence as a getaway destination from mainland China, it is, now, attracting visitors seeking leisure and water-sports activities in
strong numbers. It is focusing its energy to promote itself as a MICE destination too. Requisite infrastructure including convention halls and mid-sized hotels with ample occupancy have been created to create pull from nearby countries. Apart from being a hub of Chinese outbound – last year it catered to a whopping 43.9 percent of tourists from China, compared to 16 percent from Japan, and 5.5 percent from the US – it is now aiming to make inroads into newer markets like India, Philippines and Vietnam. This is a clever strategy, specially, in light of the recent Chinese stock market crash. It is this quick thinking that has helped it steadily emerge as a destination for leisure and relaxation, and is being dubbed as the ‘Hawaii of Asia’. This has only happened because they have constantly upgraded their tourism product and created newer attractions to keep their primary markets intact, while, diversifying their offering to lure newer markets.
It remains a lesson for us, especially for a number of Indian cities that have far too long relied on a singular product – Golden temple in Amritsar and Taj Mahal in Agra are some apt examples of lack of product diversification in India. Dearth of constant innovation has made travellers seek newer destinations hampering businesses and investments. Jeju’s tactful nurturing of its assets has made it a successful destination. Focus on visitor experience: Focus on creating visitor experience has ensured that they receive a large number of repeat clientele. In fact, high-end Chinese travellers often come to Jeju province for a weekend getaway. Easy access to and from airport, roads linked with each other spanning throughout the entire shoreline allowing hassle-free movement in the city, with a stunning view of the sea. Plenty of shopping experience has been put into place to create more tourist engagements. Activities like strawberry tasting session
HIGHLIGHTS
Jeju province, which has for long been a favourite Chinese getaway, is attracting new travelers to its shore with emerging markets like Vietnam, Philippines and Malaysia Bereft of substantial manufacturing and agricultural activities, it has smartly positioned tourism as a principal pillar of revenue generation It has constantly innovated its tourism product, adding new elements to strengthen its overall product. Its growing success as a MICE destination is a testimony to its quick adaption with farmers allow visitors to soak in the rustic experience of Korean peninsula. Sustainable tourism initiatives: Nature, jungle and waterfalls remains key aspect of the overall tourism product of the province, and they have used it well. Blessed with ample flora and fauna, Jeju has the coveted tag of having a UNESCO Biosphere reserve and a UNESCO world heritage site under its belt. Basing its economy on tourism revenue: Traditional industries like fishing and agriculture have been the main-stay of Jeju’s economy in the last half a century. But, with growing awareness of its beautiful beaches, wilderness and pollution-free environment, tourism has assumed significant proposition for the nation’s economy. As many as 12.2 million tourists visited the island in 2014. High on natural sites, almost 85% of visitors indulge in sight-seeing, providing a handsome return of over 1,600 US dollars per tourist, apart from providing direct employment to over 617,500 people in South Korea. To ensure maximum footfalls, the government has given free visa-on-arrival to over 180 countries, making it a hassle-free experience to visit its shore.
Trying to understand the nature and demand of the Indian market: Jung Hwan Lee, DG, Jeju Special Governing Body
S
tating that the marketing push to acquaint itself with Indian market was one of the first in many steps that the self-governing province from Korean peninsula intended to take, Jung Hwan Lee said, “we understand that we have our limitations and our brand-awareness is restricted. However, this interaction is aimed at introducing our beautiful island to a potential market of over a billion people,” in an exclusive interaction. He said that India remained an important future market for Jeju province given that there has been a spike in Indian outbound to newer destinations in South and Southeast Asia. The increasing trend of travel to these destinations have given us encouragement, he says. “Indians are travelling to Southeast Asia in much larger numbers than they used to. China, for long, has been the mainstay of our tourism revenue. We are keen on diversifying our markets and India is the perfect source market for us in the coming future. We are taking steps towards building that brand recognition,” he adds. On whether he wanted to market Jeju as a leisure getaway or a MICE destination, he says that with growing businesses in India and a large number of Indian companies taking to MICE travel to distant locations,
JUNG HWAN LEE DIRECTOR GENERAL, JEJU SPECIAL GOVERNING PROVINCE
Indian MICE outbound will grow leaps and bounds in coming years and as we grow in recognition in this country, we will like to position ourselves as the number one corporate getaway.
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they wanted to position themselves as a preferred Indian corporate getaway. “Indian MICE outbound will grow leaps and bounds in coming years and as we grow in recognition in this country, we will like to position ourselves as the number one corporate getaway. It has mountains, waterfalls and UNESCO world heritage sites, apart from shopping and beaches to offer to its visitors, we have world-class convention halls as well. So, we are very keen on that aspect,” he tells us. India outbound to Jeju province has just crossed a meagre thousand mark. However, he remains very optimistic and shares that his efforts were aimed in a very long term perspective. “We want to invest here in the long-term and are happy to see Indian travelers visiting Jeju. We understand that we have a lot of catching up to do but we are in for the long haul,” he shares. Commenting on the lack of direct air-connectivity, he tells us that there were plenty of direct flights from Seoul, Beijing and Vietnam. He also informed that apart from India, Philippines, Vietnam and Malaysia remained high on their agenda.
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Photo Courtesy: ATOUT FRANCE
GLOBAL EXCHANGE
France
Creating experiences through art, culture and cuisines sets France apart France is the world’s most visited country, clocking over 84 million tourists in 2014. Its emphasis on creating experiences, through art, culture and cuisines, by making tourists savour simplest of offerings is the reason for its resounding success. By SHASHANK SHEKHAR
F
rance, in the year 2014, set a record that many destinations can only hope to achieve. It was the world’s most visited country, registering a mind-blogging number of 84 million tourists on its shores, comfortably leaving behind the USA with a margin of upwards of 15 million! India welcomed 6.97 million tourists in the same year, while the entire population of France stands at 66 million – it gives an idea of the enormity of its achievement. France has been a storehouse of art, culture, and heritage; museums like the Louvre which have long fascinated art connoisseurs’ world over; the iconic Eiffel tower that stands as the true symbol of French achievement and excellence – has managed to retain its pull as the numero uno aspirational destination in the minds of travellers world over. Sheetal Munshaw, Director, Atout France - France Tourism Development Agency, reasons that the distinctive factor that sets it apart from its contemporaries is its unique art de vivre or way of life. “It is this intangible element which is a
culmination of France's art, culture, rich and diverse gastronomy. France's unique art de vivre finds expression in the dayto-day life of its people and seamlessly integrates its diverse regions,” she says. “The French way of life is a selection of experiences which outwardly seem routine, but are made special such as savouring a meal with friends or family well complemented by a convivial atmosphere, incorporating art and culture as part of daily life or even taking time out to enjoy the outdoors with your loved ones in the form of a picnic encapsulating the simple pleasures of life,” she adds. It is this factor which adds to France’s lusture as a premier tourist destination. It has varying landscapes, from contemplative mountains to the sea to vineyards to quaint villages to modern, HIGHLIGHTS
France catered to, a never before, 84 million tourists in 2014, making it the most visited country on the planet. Indian outbound to France grew by 18% from 2013 to 2014, crossing 4,00,000 mark. It has positioned itself as a repository of art, culture, rich and diverse gastronomy, stressing on creating experiences through the ‘French way of life’ or Joie de vivre. Focus on experiences, cocktail of rural and urban landscapes and creating ample engagements for tourists make it a destination – which has something for everyone. Its unique positioning strengthens, also, because of its appeal as an aspirational destination for travellers.
Gearing up for Euro-2016 sporting event, providing experiential platforms on top of our agenda: Sheetal Munshaw
W
e will continue to enhance France's appeal as a tourism destination and engage with the potential traveller with promotional strategies that will include different media platforms (print, digital, television and film,” says Sheetal. Events to showcase France to the discerning traveller through experiential platforms have been put to extensive use, as we were told. “We showcase events through experiential platforms such as wine and gastronomy, art de vivre, entertainment in the coming year, and will also continue with our communication campaign, “Be There! Do That!” that showcases France as an experiential travel SHEETAL MUNSHAW destination,” she shares. DIRECTOR, ATOUT FRANCE-FRANCE TOURISM Many of us have seen the aura of the famed DEVELOPMENT AGENCY Eiffel tower on the celluloid, and the power On our agenda for next year is also cinema wields in create an image of a destination promotion of the major sporting event is uncontested. France, too, has gained from Euro 2016 that takes place across Bollywood’s forays into its cities and towns. 10 French cities in June-July next year. “Cinema has always been a popular medium for attracting tourism and France is cognisant of Bollywood’s strength in this domain. A number of Bollywood movies have been shot in France since time immemorial from the evergreen – An Evening in Paris to the contemporary Queen released last year,” concurs Sheetal. She reveals that quite a few Tollywood movies have also been shot in France. She tells us that on their part they have attempted to establish and develop synergies with film producers and directors interested in filming in France alongside audio visual departments at the French embassy as well as the Bombay Consulate. “We have participated and attended cinema workshops that provide a perfect platform for interacting with industry members complemented by the professional expertise of FILM FRANCE in this domain,” she tells us. France is, now, gearing up to showcase a sporting fiesta which will span across ten of its cities giving travellers another reason to visit the city of lights. “On our agenda for next year is also promotion of the major sporting event – Euro 2016 that takes place across 10 French cities in JuneJuly next year,” concludes Sheetal.
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cosmopolitan cities. “The entire gamut of product helps the country cater to a diverse genre of travellers ensuring that there is always something for everyone,” she says. Indians, thanks to Bollywood and ample exposure, otherwise, are taking to France in healthy numbers. A rapidly evolving market, in the last few years, there has been a steady rise in the influx of Indian visitors to France. “We have crossed the 4, 00,000 mark in visitor arrivals in 2014 and are very pleased to record a growth of 18% increase in arrivals in 2014 as compared to 2013,” shares Sheetal. Air-connectivity – crucial to augment bilateral footfalls – has also strengthened as a number of airliners are now in fray connecting the two countries. With French national carrier – Air France operating 20 weekly lights from Delhi, Mumbai and Bengaluru to Paris and onwards to 28 cities in France, connectivity is stronger than ever before. “Air India, also, operates a daily
flight from Delhi to Paris. Joining the fray is Jet Airways that is offering a daily flight ex-Mumbai to Paris. Furthermore, there is Emirates that is directly servicing Lyon and Nice in addition to Paris,” she shares. “Paris is very well serviced by almost all commercial air carriers,” she adds. So, is it the aspirational destination tag that is making Indians travel to French shore? Sheetal thinks that quick-footed facilitation of visa policy has played a crucial role. “This is largely due to effective visa facilitation policies that have been implemented by the French Embassy and the network of consular services across India complemented by our concerted efforts to showcase France as a versatile and premier tourism destination,” she reasons. According to her, the Indian traveller today is discerning and is ready to venture off the beaten track, “exploring French regions and indulge in unique and authentic experiences,” she concludes.
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Photo: Navin Berry at Srinagar Airport
PICTURE PERFECT
When Indigo IPO opens on 27th October, it will clearly be the next big leap for the airline which has an uncanny knack of springing surprises. When it was floated by Rahul Bhatia just under ten years ago, few were willing to give it a chance to make it big in the Indian sky. The market then was inundated with big-ticket announcements of players who were believed to have better financial muscle. But over the years, as theIndia sk iesbecame embroiled in a wave of cyclical disruptions affecting the industry, the only airline which has come out trump sthrough the turbulent spells, has beenthisGurgaon-headquartered Indigo. It has steadily built its scale, endeared itself with the travelling class with its on-time performance and rewrote the rules of the game which once was glued to the cardinal rule – in aviation, small can never become big. Only last year, the airline notched the distinction of becoming a 100 plus fleet airline and earl ierthis year, it turned the heads of everyone in the global aviation business by placing an order fora staggering 250 new generation aircraft with Airbus – the largest single-deal in the history of the aircraft manufacturing giant. Indigo’s IPO has been a much awaited enlisting at the Dalal Street but this could again be a strategic stroke taken at an opportune moment after declaring its long-term big ticket intentions so boldly. Historically speaking, the stock markets have not been a favourite hunting ground for the airline companies. But given Indigo’s penchant to change the rules of the game, yet another surprise could well be in the offing. This event could also write a new chapter for Indian aviation. There are reports that GoAir may also go public. Jet and SpiceJet are already quoted on the stock exchange.
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