Tourismfirst september issue

Date of Publication: 17/09/2015 RNI No. DELENG/2015/62794 Posting Dt. 12-17/09/2015 Postal Reg. No. DL(ND)-11/6180/2015-16-17

VO LU M E 1. I S S U E 5 . S E P T E M BE R 2 015 . ` 5 0

Uniquely India: home to 70 percent of world’s tiger population, a reversal in decline in their population in recent years has come as a major relief to the global conservation efforts.

linking stakeholders for developing the big picture

Focus on Bodh Gaya

By SHASHANK SHEKHAR

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odh Gaya remains one of the holiest centers for Buddhists worldwide, and PM’s consistent efforts to catapult India as the torchbearer of Buddhism, too, is not lost on anyone. From his visits to Buddhist temples in Sri Lanka to his keen engagement with monks in Japan, his eagerness to project India as a centre for Buddhism bodes well for the wider tourism fraternity. In what could become a true game-changer for Bodh Gaya’s landscape – the government now intends to develop it as the spiritual capital of the Buddhist world. The idea could well position Bodh Gaya as a unique destination showcasing India’s idea of tolerance and ancient heritage, consequently, propelling its inbound tourist numbers to a new-high.

Acknowledging Bodh Gaya’s unique positioning as a spiritual centre, PM Modi said, “I recognize how Buddhists all over the world revere Bodh Gaya as a place of pilgrimage. We in India would like to develop Bodh Gaya so that it can become the spiritual capital and civilizational bond between India and the Buddhist world.” Indicating that some serious infrastructural augmentation could well be under-way shortly in the holy city, “The government of India would like to provide all possible support that its Buddhist cousin nations need for the satisfaction of their spiritual needs from this holiest of holy places

PM promises to make Bodh Gaya a ‘spiritual capital’ of the Buddhist world

PM moots Buddhist city as Spiritual Capital

Andhra on tourism mission mode Ever since N Chandrababu Naidu made a comeback at the helm of Andhra Pradesh governance last year, he has repeatedly asserted on many occasions that tourism would be an important growth pillar. And the state government is now ready with a document mission which was unveiled recently. Prepared in partnership with Yes Bank, the mission document aims at promoting Andhra Pradesh as India’s most preferred tourist destination and positioning Andhra Pradesh Tourism as a global tourism brand. “The Tourism Mission & the new policy mark the start of a new growth phase for tourism sector in Andhra Pradesh and the state government is committed to support this growth in every possible way,” Naidu said on the occasion.

HIGHLIGHTS

Tourism is one of the seven mission sectors identified by Chandrababu Naidu for the future growth of Andhra Pradesh for them,” he reacted after visiting Mahabodhi Temple early this month.

Naturally, attracting more tourists will need better facilities in the town and lead to investment in infrastructure.

Indeed, the idea is a welcome one.

However, it must not grow in isolation and the government must also look into

creating a sustainable Buddha circuit – with robust road and air-connectivity to Sarnath and Kushinagar. Only, then, we will be able to create a complete spiritual experience, one that will stay in the travelers minds long after they have taken the trip. But, well begun is half done!

The mission document envisages positioning AP as a global tourism brand Hub and spoke model to be pursued to link all important locations in the state The tourism sector mission would be implemented by a governing body headed by the chief minister himself

In a recent presentation at India Tourism 2.0 Conclave in the capital, Amitabh Kant, Secretary, DIPP articulated a gameplan for tourism from a ‘Make in India’ perspective.

Tourism can be the biggest integrator for the ‘Make in India’ programme

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ccording to Amitabh Kant, tourism holds a prized position in the list of sectors identified for “Make in India” programme as it is expected to be a key employment generator in the coming decades. He also asserted that instead of doing too many things simultaneously, the real focus should be on creating a few outstanding destinations and circuits which should be truly world-class in all respects. DIPP secretary also minced no words in asking the private tourism stakeholders to do their bit in catering superior and unique experiences and this exercise needs to be kept outside the purview of the government. The private sector in tourism has been seen as not investing adequately. It needed to come together and create a pool of resources to market Incredible India.

Delhi can become an international tourism hub, says CM Kejriwal

AAP is committed to tourism as priority

By RITWIK SINHA

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elhi’s chief minister Arvind Kejriwal has stated that his government is committed to turn Delhi into a major international tourism hub.

Kejriwal was recently speaking at a seminar in Delhi to discuss the business agenda of the AAP government which took over the reins of the national capital early this year. In his speech to the captains of the industry and also local trade bodies, Kejriwal did not mince any words in

underlining that tourism is a top priority area for his government.

“The government is aware about the potential of Delhi tourism and our larger endeavour is to have a vibrant programme to make Delhi a prominent international tourism hub,” Delhi CM said. According to an estimate, about 62 percent of international tourists travelling India pass through Indian national capital but their length of stay in Delhi is too short not resulting in expected business benefits. “It has been brought to our notice that tourists

touching Delhi spend less than 24 hours here. Given Delhi’s amazing offerings, their stay has to be extended to 2-3 days which will

create huge number of jobs. We need active participation of the private sector to make it happen,” Kejriwal said while responding to concerns expressed by tourism sector stakeholders that tourists are side tracking Delhi.

At the seminar, Kejriwal further asserted that his government which is barely few months old is presently engaged in doing away with the existing procedural bottlenecks in the city governance which will also help the promising sectors like tourism. “Sometime back, a delegation of event

managers told us that big-scale events are shifting to other cities because 27 licenses are required here. We immediately convened a meeting with concerned authorities and have done away with several licenses which were mandatory,” he informed.

According to Delhi CM, his government has also provided a major relief to the city’s hospitality sector by making amendments in the luxury tax norms. “We were told that hotels in the NCR locations are charging luxury tax on the actual tariff whereas in Delhi, it was on the published tariff.

We have accordingly changed this to help the hotel units in the national capital,” he added.

9th October 2015.

JW Marriott Juhu, Mumbai

MONSOON IN KERALA BY TANMOY DAS

C I N E M A S C A P E S Get hooked to new destinations to visit and explore. Cinema is the new medium to get glimpses, indeed some of the recent films released have a large share of local flavours of distant lands, both within India and around the world. The more exotic the location, greater is the appeal of the film to attract the masses. Cinema tourism is growing exponentially. The big catcher in this regard is, of course, India’s own Bollywood. Reaching out to them, year on year, on behalf of destination promotion agencies and their line producers is Cinema Tourism Summit, capturing Cinemascapes for producers. The change in name reflects the focus on conferencing as the major thrust, and also the presence of leaders, from government, industry, and also promoters of locations.

Cinema Tourism Summit, 2015 is being held later this year in Mumbai at the prestigious JW Marriott in Juhu.

It will bring together some 300 leading figures representing these verticals, to deliberate on issues concerning film shooting on locations, and also the larger growth of the subject, and its challenges, and also present new choices for Indian cinema producers, for Bollywood in particular.

For additional information, contact: Chander Tamang. Tel: 9818679125. Email: info@tourismfirst.org

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THIS ISSUE : SEPTEMBER, 2015

National programmes will drive tourism, focus on creating amenities

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n all our national missions and programmes – whatever be the nature of activity we wish to give momentum to – be it the ‘Make in India’ campaign or ‘Skill India’ initiative, infrastructure augmentation, road and waterways connectivity, all of it entails one common denominator: travel. It may be direct or indirect in nature, but the process of undertaking each of these national goals will surely herald more travel. Even the focus on using digital systems to facilitate an enabling environment for start-ups has a strong component pertaining to travel. As the government pushes towards a digital India, the process will bring different stakeholders on a singular platform making it easier to undertake travel for different reasons. Another vital area is education – with so many educational institutes and centers of excellence popping up – it is, but, natural that this development will catalyze movement, both domestic and international. Our efforts on creating SMART Cities will also generate infrastructure including hotels and restaurants, cities that are user-friendly. So, a single strand that is a certain outcome of these endeavours is travel.

However, all of these possibilities will need massive investment for creating public amenities. UNWTO defines tourism as a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business purposes.

Looking at the big picture, it is highly likely that when our PM talked about 5T’s – trade, tourism, tradition, technology and talent – he was, also, seeking to create the need for travel. Such an idea can only stem out from a man who is well travelled himself, he is aware that we woefully lack in travel amenities – and to make people travel will only, eventually, mean that economy is prospering, essentially meaning that tourism and development are intrinsically linked to one another.

So, the thrust must be on making people travel and providing them requisite amenities, ensuring better connectivity. It would, also, mean constructing many more highways, bridges, state-of-the-art railway stations and airports. So, when all of this eventually unfolds – and the national thrust seems galvanized towards achieving these tangible goals – tourism is not far away. Because, in the larger scheme of things, all of this movement actually, already, means tourism.

As our numerable national goals begin to materialize, it will, thankfully, shed curtains on a very clichéd idea of tourism – which, virtually, and only meant taking a stroll to Jama Masjid, clicking a few pictures of Qutub Minar or circumambulating a stupa. There is no contention in the fact that it is an important aspect of overall travel and tourism basket of the country, but the canvas of tourism that stems out of development is far wider in reach.

And, it is precisely the kind of travel we must aim to nurture. If we can, as a nation, continue to keep development as a central theme of our national discourse, we would have done just as much for tourism and travel.

We hope that you will find our new looking ‘TourismFirst’ engaging and informative, we welcome suggestions and feedback from our readers, the larger fraternity of stakeholders of India’s tourism and travel.

Navin Berry

TALEB RIFAI

Secretary General, UNWTO commented at the recently held Third International Conference on Financing for Development For an increasing number of developing countries tourism means jobs, poverty eradication, community development, and the protection of natural and cultural heritage. Yet, in order to maximize tourism’s contribution to the development objectives, it is critical to address the disparity between the sector’s capacity to foster development and the low priority it has been given so far in terms of financial support in the development cooperation agenda.

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TONY TYLER

IATA’s Director General and Chief Executive Officer commented recently while evaluating global aviation trends

Tourism is the life blood of many economies and much of it arrives by air. Unfortunately, too often governments appear not to realise this, burdening airlines and travellers with high fees and taxes. The short term financial benefit comes at the long term expense of the economy.

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SIDDARAMAIAH

Karnataka CM on the major thrust of the new tourism policy initiated by the state

Government facilities are not good. We should hand over tourism assets to private sector for better handling. The policy is extremely focused on growth of tourism in Karnataka and we should all look for changing the landscape in this sector.

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VASUNDHARA RAJE

A.P ANIL KUMAR

Rajasthan CM while addressing the opening session of second meeting of Chief Minister’s Advisory Council recently in Jaipur

Since Russia is one of the 43 countries recognized for the ‘Tourist Visa on Arrival’ facility, the state’s exhaustive marketing in the trade fair is expected to create a huge stride in tourist arrivals from this country.

The state is moving ahead with focusing on sectors like health, education, skill development, tourism, urban development, energy, industry, agriculture and mining.

Tourism Minister, Kerala

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Contents CURRENTS

04 GoI awaits broader consensus for unveiling new aviation policy

INFRASTRUCTURE

08 Within 2 years, first model wayside hub to come up, 2000 planned in 4 years 09 Tourism can be the biggest integrator for the ‘Make in India’ programme

AIRLINES AND AIRPORTS

10 Air India’s turnaround could be anchored around its original strengths 11 For SpiceJet there is enough space to succeed in the market: Ajay Singh

I NLAND WATERWAYS 12 45 new inland waterways will create new tourism opportunities, says IWAI chief

S MART CITIES 14 18 tourism centers get major booster dose with inclusion in SMART City Mission INVESTMENTS & INDUSTRY

15 Karnataka eyes $9 billion investment with fresh incentives announced in new policy

HERITAGE

16 ’65 War highlights how heroes can be celebrated and tourism around them 17 Monuments should act as centers for cultural events: Aamir Raza Husain

HOTELSCAPES

18 Hollywood themed resort adds unique experience to Goa’s profile 19 ‘Coromondal circuit’ grows Mahabalipuram registers robust footfall with Chennai’s rise

20 A profusion of French luxury, a fusion with classic from India: Sofitel Mumbai 23 Mumbai’s luxury gets a shot in the arm with St. Regis’ debut

GLOBAL EXCHANGE

24 Spain: Linking Latin America to India via Spain could be a gamechanger for tourism: Spanish Ambassador 25 Switzerland: Cinema tourism takes a backseat, Switzerland woos high-end leisure Indian travellers 26 New York: Consistent innovation, emphasis on quality of life, gives it a perennial vibrancy both for locals as well as visitors 27 Tel-Aviv SMART solutions to create seamless tourist experiences

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 advertising: BALPREET SINGH balpreet@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 28

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GoI awaits broader consensus for unveiling new aviation policy The intrinsic linkage between aviation and tourism was deliberated threadbare at the 8th International Conference on Indian Civil Aviation & Tourism organised by leading industry chamber ASSOCHAM in Delhi late last month. With the country eagerly waiting for a new civil aviation as well as tourism policy, the deliberations involving senior government functionaries and captains of the industry obviously focused more on converging the interests of both the segments by looking at the critical challenges and possible solutions.

Here are the major takeaways of the conference:

Converging Tourism and Civil Aviation HIGHLIGHTS

Both tourism and aviation sectors share the common string of projected high growth in medium to long run. India is expected to receive 20 million overseas guests by 2020 and the country is projected to become the third largest aviation market in the world by 2030 from the current 9th ranking Top government functionaries claim that the new policies on tourism and civil aviation would tend to find the converging points between the two sectors. The broader idea is to create an eco-system wherein they feed each other more robustly resulting in opening of new sectors and destinations. Taking aviation closer to the middle class travellers and tourists is also cited as an imperative Industry has very high expectations from the new civil aviation policy.

Among other things, it is expecting the government to do away with high taxation on ATF and announce fresh incentives for private airport developers. Expanding aviation growth pockets beyond metros is an unanimous call Divergent views prevail on the issue of doing away with the critical 5/20 provision (five years and 20 aircraft fleet). Independent analysts and tourism sector representatives strongly opine that the rule has no validity in a dynamic global marketplace. The established airlines, however, are asking the government to tread cautiously With over 300 airstrips in the country, industry stakeholders are also asking for giving a big-ticket push to helicopter services (used to the hilt in many global destinations) to open up new tourists destinations The government though is promising a progressive civil aviation policy, it is not in a position to fix a deadline for its actual unveiling. Its consultations with the state governments to do away with the ATF taxation anomalies are yet to produce desired results, majority of states are averse to the idea of transferring the aviation fuel in the declared goods basket

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Projected change in aviation is closely linked to tourism Pusapati Ashok Gajapati Raju, Civil Aviation Minister The government is well aware of the fact that all concerned stakeholders in the Indian aviation market are eagerly waiting for the announcement of the new civil aviation policy. We are all anticipating a big change in the civil aviation sector in the coming years with the new policy acting as the catalyst. But we need to tread the path very cautiously. We have to closely examine – what is it we would like to change? Are we going to change for the better or worse? These issues can’t be ignored because there has been serious turbulence in the Indian sky in the recent decades. More airlines have crashed in the market than what have actually survived. In the rush of things, we would certainly not like this trend to continue. The new policy has to ensure that it creates a robust mechanism, should act as the real catalyst helping our stakeholders to adopt best practices. In international market, we have such vibrant examples as that of Emirates which is now serving Indian passengers on a large scale. But they do no sit back on their laurels. Rather they are consistently working for improvement and innovation. Similarly, good examples are available within the domestic market too – there is a larger positive feeling when Indigo is praised for its on-time performance. We have to ensure that more such entities operate in our market in the coming years.

The theory of possible change in the Indian sky is also strongly linked to sectors like tourism. And such linkages have to be closely examined in terms of how they can be taken to the next level feeding aviation growth. As far as tourism is concerned, there is a lot of disposable income in the world which is fuelling its growth and India is also part of this process. We have such a resplendent heritage basket and so much in leisure and adventure. The aviation sector has to play a critical role in tapping this potential by providing more connectivity and our policy framework has to facilitate it.

Coming back to the new civil policy, we are preparing it after broader consultations. The Prime Minister himself is taking his time out to discuss the developments. One of the cornerstones of this policy would be putting in place a transparent regime. The process has been on for quite sometime and now everyone is asking me to tell the date when it will be finally unveiled. But the answer is: I don’t know. We are waiting for all stakeholders to get on the board. We are pursuing the prominent demand of the aviation industry to bring down taxes on ATF with the states. But the fact of the matter is: all states are not in favour of it. Most of the chief ministers consulted are asking to keep it out of the declared goods basket. Our primary objective right now is to get all concerned stakeholders in alignment on such thorny issues as ATF.

We are trying to draw right equation between tourism and aviation Dr. Mahesh Sharma, Minister of Civil Aviation & Tourism Our government is determined to give a new direction to the economy which would benefit us on a long-term basis and that is reflected in the fact that we are working on a new tourism as well as civil aviation policy. We are quite aware that expectations are high and we have to match them. In my reckoning, the new civil aviation policy will be quite revolutionary which will not only meet the expectations of the industry stakeholders but also take care of the interests of the customers and end-users. Indian aviation market is at the cusp of a major change and the new policy will act as a catalyst.

It is important to understand that in a big country like India, no policy formulation could be sound if it is not aligned to the requirements of the allied sectors. And this is what we are trying to do while issuing new guidelines – taking the holistic approach route. In that context, attaching aviation connectivity with tourism linkage becomes imperative.

Tourism, on its own has several serious issues to grapple with. For instance, we have to seriously combat the perception of India not offering clean and hygienic destinations. But its equally important to ensure seamless connectivity to our destinations for which the support of the aviation industry is a must. All our claims of India having richest tourism potential in the world would go in vain if we do not ensure that tourists can reach to our diverse destinations in a seamless manner. We are betting big on new segments like MICE and medical tourism. But these segments could only be positively tapped provided there is adequate connectivity.

Our less than one percent share in the global tourism market is a big disappointment and we need to drastically change the scene. And this will only happen when we create vibrant alignment not between tourism and aviation but also between tourism and other modes like railways, roadways and inland waterways. Our ministry is committed to pursue this route going forward.

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Keep commercial viability in mind, build structures that are passenger friendly Sudhakara Reddy, Founder and national president, Air Passengers Association of India It must be bear in mind that a number of airports have been invested into without keeping in mind its economic viability. Only AAI can answer how and why such investments have been made. Chennai has been sanctioned a whopping amount of 2,300 crores for airport makeover. It has been decided without any discussions what so ever with stakeholders.

I can share with you a couple of examples to better illustrate the lack of logic behind investments into airport infrastructure.

Puducherry is an important destination and a busy one too. However, the idea behind developing an airport there is absolutely bereft of logic. You see, Puducherry is merely 150 odd kilometers from Chennai by road and from flight it is 140 odd kilometers – which takes more time if you bear in mind the check-in and process of boarding the flight. It’s the same story with Mysore, and Spice Jet was the only airline which tried to operate to both these destinations and had to stop because it, simply, was not a viable business. So, why would a passenger pay more money and waste more time to get around? Such disastrous planning and execution will take us nowhere.

It creates problems for airlines and causes a hole in tax-payer’s pocket too.

If you look the state of airports, in India, it is nowhere near world standards. Its state is not hidden from anyone. We have, in India, some 132 airports and 32 of them are non-operational. It is interesting to note that 125 of these airports are controlled by AAI. As a part of our recommendation, we urge to bring into use sustainable models of airport development keeping in mind passenger utility.

We recommend a detailed study on the economic viability of a project before venturing into it. A city, in which an airport is being planned, must be studied to predict its passenger traffic growth – keeping in mind projects like SMART city, SEZ’s to better understand its immediate and future requirements. Our airport designs must look into providing easy access to passenger amenities and structures that are not a burden on the financial sustenance of an airport in the long-run.

There is also an urgent need to look into the aspect of flexibility in aeronautical and non-aeronautical revenues for the airports and it is only the government’s inconsistent policy towards aviation for the present set of issues confronting the industry.

“Unfriendly regulations should go” Pawan Kumar Agarwal, President (Corporate Finance), Yes Bank The rule of the game is simple – a robust infrastructure is necessary for growth and this is applicable for our aviation sector too. Today, Indian aviation is in a coveted position of being one of the fastest growing aviation markets in the world and trends suggest that this positioning will get further consolidated in the years ahead. Indian aviation market has reached to this prized-stage on the basis of several supportive initiatives in the past – open sky policy, enhancing FDI limits, etc.

However, with just 0.8 percent of Indian population flying, the gap between the potential and actual results is too steep. And there are a host of unfriendly regulations responsible for this. High taxation on ATF is a clear example of this. Our consistent capacity addition exercise in terms of airport development has far from being seamless and, therefore, the existing infrastructure is in an exhausting stage. The aviation growth pockets continue to be limited in the country with a sound connectivity regime for tier-II and tier-III destinations still not in place.

The criticality of the new aviation policy is, therefore, paramount as it has to lay a solid foundation for the future growth of Indian aviation which could be quite dazzling. The sector not only needs rationalisation of ATF but also a uniform taxation pattern across the board. There has to be attractive incentives for private airport developers. We also expect the government to recognise general aviation as a strong pillar of the civil aviation. This untapped segment is waiting for a major policy push. On a broader policy front, the provision like 5/20 rules for overseas flying rights is out of the sync with the changing trends in the aviation market. Such restrictive provisions should be diluted.

Tourism could be a major catalyst for helicopter segment B P Sharma, CMD, Pawan Hans If we look at the pattern of matured global aviation markets, you will notice the helicopter segment playing a critical complimentary role. But when it comes to India, the helicopter business has plenty of distance to cover. With the projected mounting air passenger volume in the country, the importance of helicopter services will be felt more in the coming years particularly for intra-city and intrastate connectivity. The good news is: we have ample physical infrastructure available to put this segment in the fast growth lane as there are about 125 airports in the country and 300 airstrips, suitable for helicopter operations.

The statistics clearly reveal that the helicopter segment in India is yet to take off in a major way. Of our total aviation business, the share of helicopter segment is less than one percent. When compared with the global benchmarks, the deficit becomes more evident.

The total volume of helicopters in operations globally is estimated to be 34,952. But India has only 280 helicopter units. The largest helicopter operator in the world has a fleet size of 330 units. But in India, there are 68 registered operators. Furthermore, the total number of heliport hubs globally is around 6500 and India’s share is a paltry one percent.

In India, the helicopter services are primarily driven by the corporates (as much as 70 percent) whereas in the global markets a significant chunk of helicopter services is also utilised in emergency medical services by law enforcement agencies and for tourism purposes. In India, the dominance of the corporate sector in helicopter operations will have to eventually come down to accommodate more services.

Pawan Hans is presently operating out of 28 bases in the country with a fleet of 53 aircrafts. And we are noticing an interesting churning unfolding around. There is a noticeable uptick in demand from specific sectors and they are slated to chart the course of helicopter business growth in India. Tourism and power sectors are two such vertical which could act as big-time catalysts to take helicopter business to a new level. In my reckoning, it is the right time to plan a vibrant network of heli-hubs in India to tap the potential of this segment.

India could well be heading for an infrastructural crisis Kapil Kaul, CAPA Taking a stock of the infrastructural situation of the country, we can say that we have made some progress since the 2000’s. There has been infrastructural augmentation in the years passed by and while India had made noticeable strides in creating good airports, challenge is to keep up with the changing dynamics of markets – that has impacted passengers and industry alike. Before we sum up the important challenges in terms of aviation infrastructure, we must also take stock of what has happened in the last decade or from 2000-10 to be specific. Delhi, Mumbai, Bangalore and Hyderabad came up as important airports and were doing well. Bangalore and Hyderabad both grew at a 20 percent plus rate per annum and Bangalore, very recently, handled over 15 million passengers. Chennai in midst of a renovation – it has its own set of challenges. But, since 2010, there been a change in the dynamics from an industry perspective.

Infrastructural lacunae and inordinate delay in implementing some of the promises made in the past are a reason for concern. If you take a stock of the infrastructural requirement of the next decade, I do not think we have even started. In the last five years a lot of promises have been made to the industry and now we are looking forward to some of them being fulfilled. Some 2-3 years we were promised that 15 projects, including Chennai, will be taken up under PPP mode and nothing happened afterwards. We have a target of 500 airports by 2020. But each project either gets delayed because of some or the other issue or gets tangled in a web of regulations.

Land acquisition is also an issue that could severely restrict India’s infrastructural push. Its implementation looks difficult too, so unless we do not buckle up and find creative solutions to overcome this looming crunch, we are certainly headed for an infrastructural crisis.

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Tourism is a major contributor to aviation growth K Narayana Rao, Director, Delhi International Airport, GMR Considering the consistent uptick in the passenger volume, we certainly need more airports to come up in the country. But as our experience underlines, the proposition of developing new airports in the country is fraught with serious hurdles. It entails huge capital expenditure with land prices being at the exorbitant level. We do have a public-private-partnership (PPP) regime for airport development but the experience of making them work to create new capacity has not been very satisfactory.

Given the kind of surge which Indian aviation is projected to witness in the coming decade, we will need a staggering investment of $98 billion in airport development alone by 2030. During the stated period, Indian aviation market will also significantly scale up the ranking ladder – from 9th largest aviation market now to 3rd position in the world. Despite all hiccups, the civil aviation market in India has been clocking an average annual growth of 13 percent in the last one decade. And things remaining normal, this trend is slated to become more robust in the coming years. The rising middle class volume is the major contributor to the growing aviation business. Equally important is the contribution from the tourism sector. An estimate pegs that foreign tourists are spending around Rs 548 billion in the Indian market with aviation acting as the bridge. And this bridge has to become stronger given the renewed focus of the government in the tourism sector.

Even as Indian airlines on a cumulative basis are saddled with a loss in the range of $10 billion, they are expanding their wings considering the changing tides in the business. Some of the recent developments are quite indicative that players in the fray are gearing up for big-ticket growth. We have Indigo which has ordered 250 planes in one go, Air Asia is adding 10 more aircrafts for its Indian operations in the near-run, Star Alliance members are consolidating their presence in the Indian market with Air India being a member now and Vistara too is on a rapid expansion drive. Additionally, about 40,000-50,000 crew members are getting added to the aviation business every year and volumes are also building up at non-metro airports.

Simply put, the domestic aviation industry is poised for a high growth trajectory on a long-term basis and, therefore, there are immense expectations from the soon-to-be unveiled new civil aviation policy in terms of effectively dealing with some critical bottlenecks. The industry is waiting for ATF to be transferred to the declared goods category. There is no gainsaying that high ATF prices in India is a major bane for the growth of the business and a clear policy intervention is a must here. We would also expect the government to support the MRO segment by facilitating tax exemptions.

India can become an aviation superpower Ajay Singh, Founder, SpiceJet The growth in Indian aviation business in the recent years, notwithstanding, it has also been a very testing spell for the sector as a whole. The shutting down of Kingfisher was a bolt from the blue immensely affecting all stakeholders- passengers, suppliers to the airline, employees, etc. With a major player in the market going belly up, it also meant a major loss of credibility for the industry as a whole. SpiceJet was also going the same way but now we have stepped in and are determined to put it back on the normal course. Our decision to take over the command again resulted from the realisation that passengers would not want to see it going down since lesser players would have hiked the average air fares. Government too wanted to save SpiceJet and has extended incredible support. The good news is: there are preliminary signals to suggest that our turnaround drive is on the right path.

But while SpiceJet would like to play a major role in Indian sky in the coming years, the Indian aviation itself has a long way to go.

We have a unique opportunity to eventually emerge as an aviation superpower in the world. The issue is: how will we ensure to turn this dream into reality? Just look at the growth possibilities. The UAE and Qatar have a population of over 11 million but those aviation markets are carrying 97 million passengers. The annual volume of air passengers in China is close to 400 million. But despite having such a large population, our passenger volume is very low vis-à-vis other countries.

The available trends clearly underline that there is something which we need to fundamentally do differently. In my reckoning, the prime target should be to bring down the costs for all stakeholders. The government is working on a new policy and we are hopeful that it will address the existing bottlenecks like taxation and clarity on foreign flying rules and would eventually pave the way for our long-term growth.

There should be more competition at the bigger airports S. Machendranathan, Chairman, AERA The Airports Economic Regulatory Authority (AERA) has a critical role to play in the churnings happening in the Indian aviation market. We not only have to keep an eye on the tariff structure of various services at the airports but also consistently examine the services level. This is a major concern for us since we are looking at upgradation of our airports in all respects.

AERA’s functional responsibilities has quite a vast ambit and it also includes providing funds for airport infrastructure. When the existing airports have to add capacity, AERA is supposed to suggest the nature of investment. We have to ensure that the entire process is bereft of any kind of malpractices. The financial formula adopted by the developer should be economical, feasible and at the same time, the capacity created should take into the view the growing long-term demand. Needless to say, consultation with all concerned stakeholders is a consistent exercise for us and this also includes various end-users, particularly the passengers.

In the past, we have come across instances wherein services have been found to be offered at an exorbitant cost. We are aware that some airports are pursuing restrictive trade practices as complaints keep on pouring from different quarters every now and then.

We are doing our best to do away with such practices. A possible solution in my reckoning would be to introduce more competition, bring in more service providers at the airports. There are several airports in the country today where volumes are low. But at the bigger airports, there should definitely be more competition. I am hopeful that the new policy will pave the way for more balanced structure in aviation management.

India will significantly contribute to Asia’s rise Pratyush Kumar, President, Boeing Boeing has recently released a global aviation forecast for the next two decades and the future looks quite promising. Our key projection is: the global aviation business will grow up to a staggering $5.6 trillion by 2035. And there would be several interesting subplots of this growth story. For instance, Asia will consolidate its position as the global hub of the aviation business and India will be a major contributor to this development.

As far as Indian aviation market is concerned, we are more bullish on it now than the last year. As per our latest report, India will need 1740 new aircrafts in the next 20 years. In our annual report in 2014, our projection for the Indian market was 1600 aircrafts. A massive requirement of this nature is hardly surprising given the fact that India is slated to become the third largest economy in the world by 2034. At the moment, the percentage volume of air fliers is low in the country. But just imagine, how much it could gain in the coming years given its burgeoning middle class. According to a government estimate, about 8.2 billion people travel by railways in India. Even if there is a small shift from railways to aviation in next twenty years, it could well mean a huge gain for the latter.

The recent passenger volume trends clearly point out that Indian aviation business is growing by leaps and bounds, every year touching a new peak. As per data available, the total volume of domestic air passengers registered in 2014 stood at 66.4 million which is a record number.

And this year, the trend is equally robust and for the first time, the domestic passenger volume is projected to go past 75 million figure.

The buoyancy witnessed in the global aviation sector these days is also attributed to a sharp decline in aviation fuel price which is to the extent of 33 percent now as against the last October peak. However, taxation anomaly in India is not helping the Indian carriers to reap the full benefit of this trend. Government’s new aviation policy must look at this issue and should also have supportive provisions for intrinsic segments like MRO. This is a critical area where India can make huge inroads as its aviation business grows to new highs.

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INFRASTRUCTURE The first top grade wayside facility in the country will become a reality by late 2016 setting up a chain process to enhance tourists’ experience on Indian highways.

Within 2 years, first model wayside hub to come up, 2000 planned in 4 years

By RITWIK SINHA

R

oads for any kind of travel usually is not only the first and the last mile connecting medium, in a geographically vast country like India, it does become the most important linking line to farflung, diverse destinations. And there are simple parameters to judge the overall experience while travelling on roads or highways – the physical condition of the stretch, the time consumed in the journey and the quality of existing wayside amenities where travellers and tourists can have those experiential interludes.

While on the first two counts, India seems to have made some considerable progress in the last one and half decade, the latter is still believed to an area where not much headway has been made. True that most of the highway stretches in the country are now dotted with innumerable dhabas but the general feeling is that their plain, vanilla deliverables could hardly help in lifting the overall experience quotient of the journey.

The Ministry of Road Transport and Highways, however, is now all set to fill this gap with a structured initiative which will entail setting up quality wayside facilities across the national highways. A preliminary allocation of `600 crore has already been made to a programme which is believed to be the brainchild of Union Minister of Road Transport & Highways Nitin Gadkari and has been aggressively backed by the Ministry of Tourism. “We are aware of the fact that most of the tourists taking highway route to reach to their destinations complain that they don’t get places to meet their basic needs

– good quality food, clean rest rooms, etc. And these are basic necessities. So we thought we would take this initiative and set up top class wayside amenities along our highways network after every 50 km. The programme is very much on the anvil. We have already appointed a project management consultant,” Alkesh Kumar Sharma, Joint Secretary, Ministry of Road Transport & Highways told TourismFirst in a recent exclusive conversation.

The programme is set to formally take off before the year end. The Ministry of Road Transport which will be spearheading this path-breaking initiative has already identified about 350 sites where feasibility studies are currently underway. “The RFPs are being prepared and we should be in a position to start the construction of the first wayside amenity in November,” informed Sharma.

Some of the early sites where these facilities are likely to be set up include – Chittorgarh, Katwa near Jammu, Varanasi and Kanyakumari. In terms of creating such facilities along the highways on a pan-India basis, the ministry has decided

to adopt a multi-pronged strategy in terms of involvement of diverse stakeholders.

“The proposal has two components.

Firstly, we will be creating model way side amenities using our own funds – at least one in each state. Then we will be looking at involving private players under PPP route. We will be giving them land, access permission, and ensure all clearances so that then they set up and operate for a specified time period,” said Sharma.

Furthermore, the Ministry of Roadways will also be joining hands with State Tourism Development Corporations in setting up these facilities. Another critical stakeholder in the proposed programme could well be oil marketing companies.

“Our oil companies have shown interest to partner with NHAI. It is in their interest and many of them have been creating such facilities on their own in the past. So it will be a synergy of the interests of all stakeholders,” Sharma underlined.

All the facilities, however, would not be similar in terms of size, features and deliverables which would be determined by the traffic and demand factors on an identified site (read the box piece). The Ministry of Road Transport & Highways has planned a three-tier structure for these wayside facilities with the common string of providing all kinds of basic quality services – food, rest rooms, fuel stations and even small shopping complexes where local artisans and farmers will be able to sell their products to the tourists. The ministry is keen to hand over the management rights to the private stakeholders – with proven experience and expertise. “We are largely looking at private participation in the management of these facilities because we strongly believe that tourism is a private sector driven activity. We will be broadly engaged in identifying the site, acquiring the land and giving it the private party on a lease basis.

Or land can become the equity for one party while the private player will share the onus of putting up the facility, run and manage it for specified period of time.

But we will be deciding on architecture and specification even as the private player will have the full leeway to bring in their creativity, value adds, additional aesthetics, etc,” commented Sharma.

The ministry is broadly aiming at creation of 2000 such top class wayside amenities over a period of next three to

HIGHLIGHTS

Ministry of Road Transport & Highways spearheading creation of 2000 quality highway wayside amenities across the country in next four years The construction of first facility slated to begin in November, to be ready before 2016 end 350 sites identified. The first batch of facilities could come up in Chittorgarh, Varanasi, Jammu and Kanyakumari Classified into 3 broad categories, the biggest of them will also provision for a helipad for medical emergencies and VIP movement Common facilities (tourists, private vehicles and truckers) will also have a corner for local artisans and space for farmers to sell their fresh produce Ministry of Road Transport & Highways to create a model facility in each state out of its own funding These facilities will be managed by private players under PPP model A brain child of Nitin Gadkari, the programme has been strongly backed by the Ministry of Tourism four years and according to Sharma, once the programme is kickstarted, it will not take much time to put the exercise in the fast lane. “Initial kicking off of anything always take some time. In this case, it entails identification of sites, finalisation of operational models and putting up the RFP. After that it would purely be the case of the replication of the model and leasing of sites.

The sites will be offered to the partners with specified execution guideline - between leasing of the land to construction and actual commissioning – which will not be more than 15 to 20 months,” explained Sharma. So going by Sharma’s comment, the first top grade wayside facility in the country will become a reality by late 2016 setting up a chain process to enhance tourists’ experience on Indian highways.

Three-layered structure for highway facilities

T

he move to significantly improve travel experience on Indian highways via quality wayside amenities which will be created after every 50 km will not be pursued through “one size fits all” kind of strategy.

The Ministry of Road Transport & Highways has chalked out a meticulous plan wherein the proposed refreshment hubs have been classified into three categories. This classification is a function of not only the traffic density of the identified highway stretches but also takes into the account the needs of different segments of highway

users – travellers using their own vehicles, tourists, and also the vast magnitude of truckers’ community.

While some facilities will be common for all of them, others will have a more specific role to play.

The biggest of the three units (which will probably be few in volume and will be set up in very high density traffic zones) will be catering to all the three notified segments of highway users. Classified as type I facility, the list of their offerings is quite long – fuel station (including gas station), vehicle repair shops, ATM, rest rooms, accommodation for short stays, quality restaurants (AC

or non- AC), etc. A major USP of these units will be a small shopping complex wherein local and ethnic cuisine and handicrafts will be offered to the travellers. According to Alkesh Sharma, a small corner will also be created for the local farmers who could sell their fresh farm and milk produce. “The entire idea is to make it a participatory facility which should also give a boost to the local economy. The presence of farmers in a corner would also induce a village haat kind of feeling in these units.”

Some of the type I units will be quite expansive even provisioning for helipads which could be used

for multiple reasons. “These helipads could be used to operate heli-ambulances to respond expeditiously to any major accident on the highways. They could even be efficiently used to facilitate VIP movements. The parking lot at these facilities will be constructed in such a way that some place will be left to accommodate the helicopters,” added Sharma.

The next category, classified as type II facility will be smaller in size and will be open only for personal vehicles and the bus travellers serving them with quality food options, clean restrooms, ATMs, etc. The type III facility, on

the other hand, will be exclusively meant for the truckers community comprising fuel station, repair shop, medical shop, etc. “The food offered here would be dhaba style, there would be dormitory accommodation, and proper security arrangement so that truck drivers can park their vehicles and take proper rest. We are looking at this type of unit as the complete rejuvenation centers for the truck drivers which can ensure better road safety since majority of the accidents happening on the highways are attributed to drivers’ fatigue and stress,” explained Sharma.

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INFRASTRUCTURE In a recent presentation at India Tourism 2.0 Conclave in the capital, Amitabh Kant, Secretary, DIPP articulated a gameplan for tourism from a ‘Make in India’ perspective.

Tourism can be the biggest integrator for the ‘Make in India’ programme

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ourism with its possible role of a significant economic multiplier becomes very critical since India now has to grow at rapid rates and create jobs.

It will not only be one of key sectors to create jobs but will also have huge impact across several other sectors.

There is no doubt that it’s multiplier effect is most immense in the list of 25 sectors which have been selected for ‘Make in India’ programme. But for tourism to be pushed to the next level, India needs to do several things. One key initiative which has been undertaken in the recent past is opening up of visa regime. This is a critical step because we must understand that India is a long-haul destination where 97.2 percent of traffic comes via airways. We are not like many other countries in the world which survive and flourish on the basis of regional tourism. For people to come to India, they plan out in advance, a trend which is uniform for all South Asian countries.

We are a primarily long-haul destination for which visa is a critical factor. And that has been unleashed now. If you are going to provide e-TV to 140-150 countries, you have crossed a critical barrier.

I also strongly believe that we need to consistently open our skies. Unless India opens its skies with vigour, energy and dynamism, it will be very difficult for India to succeed in the world of tourism. So the good thing is there would be no more waiting outside Indian embassies with liberal visa policy and it should also be supplemented with more flights to India. Let the airlines compete, those who don’t will go bust. But allow more international carriers. There is no such thing as a national carrier in a globalised world. The multiplier effect of that will be enormous in terms of business and in terms of travel and tourism.

There is also another critical point which demands serious introspection: after so much of consistent funding for infrastructure, why India has not been able to create a singular outstanding destination or circuit? We have pumped in money in all these places. We have funded a number of outlandish proposals for infrastructure and if nothing is coming out of them, they should be scrapped. We just need to focus on six-seven outstanding circuits, five outstanding destinations and take them to the world class level. When I had joined tourism, the outlay to the ministry was just `100 crore. We have now taken it to `1,300-1,400 crore level. Why has India with so much of pumping of money for infrastructure to the states not succeeded in creating world class infrastructure? We must bring a new focus to it.

HIGHLIGHTS

Tourism is well poised to become the biggest driver of growth of the national economy In the list of 25 sectors identified in ‘Make in India’ programme, tourism will be one of the leading sectors in employment generation in the coming decades Visa liberalisation provides a critical boost to Indian tourism since India primarily is a longhaul destination for foreign tourists Open sky policy needs to be further relaxed.

Create an environment wherein airlines – domestic and international – should be fiercely competing to open new destinations to/from India Instead of focusing on too many projects, the emphasis should be on creating nearly half-adozen outstanding destinations and circuits Make the most of the digital media platforms to unleash the new age promotions Tourism growth would demand creation of huge amount of skilled manpower in the marketplace.

The existing curriculums focus more on creating managers rather than skilled workforce.

The equation needs to be reversed Private sector should be in the forefront of catering world class experience. It should not be seen as a job of the government is an age wherein we will need to create huge amount of skills in the marketplace.

India today needs to create a workforce, 78 percent of which should be skilled. We just need 22 percent managers. But we are actually doing the reverse – creating 67 percent managers and just 33 percent skilled force. So the entire cycle has to be reversed to strike the right balance in the market. And, therefore, your IIHMs, and your institutes of hospitality management must go through a radical restructuring to create skilled workforce.

The travel and tourism patterns in the world is changing very fast. 90 percent of Americans and Europeans have travelled abroad. But the Chinese, the Koreans and the Indians – only 5 percent of them have travelled abroad. And they will be travellers of tomorrow. The world of tourism has to cater to travellers from these countries who are going to transform the tourism equations in the future. And, therefore, Indian education and Indian Hospitality Management Institutes must cater to the new emerging world of travel and tourism.

To my mind, travel and tourism is one of the most exciting and fascinating subjects to deal with. There are several things which we can do. According to me, a destination

So the good thing is there would be no more waiting outside Indian embassies with liberal visa policy, it should also be supplemented with more flights to India. Let the airlines compete, those who don’t will go bust.

But allow more international carriers. There is no such thing as a national carrier in a globalised world. The multiplier effect of that will be enormous in terms of business and in terms of travel and tourism.

I also believe that the world has swiftly changed since my times in the tourism space.

It has moved from printing, electronic to digital platforms and we now exist in a highly sophisticated digital world. There is no need for India tourism to have a baggage of whole army of tourism officers in so many overseas offices. Such a provision had validity in 50’s, 60’s or 70’s but not in 2015. It’s a digital world wherein the world survives and grows on twitters, facebooks, and other social media platforms. And you need to drive the entire marketing exercise from here making the most of the digital media.

Another critical point is: product development and experience to the customers is not a government’s creation. The government must keep itself at an arm’s length.

Experiences are created by the private sector and it is their responsibility. And, therefore, to my mind the government should singularly focus itself on just a few destinations and circuits. It should rather be focusing on world class marketing through the digital medium. It must keep itself out and allow the private sector to create world class experiences.

There is another important imperative. If tourism has to succeed in India, this

or a product never changes its brandline. It always evolves, it always initiates innovative things. In that context, what you need to do is to take Incredible India to another level, another dimension. That requires a huge amount of creativity and the Ministry of Tourism should work with some of the most creative minds in the world. I also feel that tourism branding and marketing should move out of the government. There must be an agency like Tourism Authority of India driven by the private sector with the government playing the role of a facilitator. But in India, unfortunately the private tourism sector does not put its money for marketing and promotion. They must change it now by creating some kind of pool. A lot of work needs to be done in the area of public relations too. The government is not equipped for all these. Therefore, I am very glad that the new policy talks about a new tourism authority. That must be the leading authority for branding, marketing and promotion.

I have no doubt in my mind that tourism can be the biggest driver of growth as well as employment creation. It can be the biggest integrator of Make in India initiative. But you need to do radical things, key things and become the biggest agents of change.

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AIRLINES & AIRPORTS

Air India’s turnaround could be anchored around its original strengths An opinion piece by NAVIN BERRY

A

ir India has a new CMD in Ashwani Lohani. Lohani’s choice is most welcome, given his past credentials for thinking out of the box, finding solutions in his earlier assignments as chief of ITDC and also three times as MD of Madhya Pradesh Tourism, apart from his stint as divisional regional manager at Indian Railways in Delhi, the biggest and most prestigious railway division in the country, where he was instrumental in giving the railway station a dramatic new look. He has obviously understood the nuances of turning around public sector agencies in the services sector, and is an ideal choice for Air India. That the government has made him both chairman and managing director (the last incumbent was only the MD over four years) is also a direct indication that he enjoys the confidence of his bosses and that he has a wider mandate to effect drastic overhaul and bring about a transformation in India’s flag carrier.

within India and the other outside.

Each enjoyed the highest market share, and had sufficient brand value to be the chosen and preferred carrier. Both merged and started losing, while new entrants arose and increased business.

In both sectors, it lost market shares, prestige and also money. That bit is now clearly history, but important for recall.

Air India has therefore two battlefronts,

merely because it too must be there. It has the best aircraft, and it must ensure they are also providing the best experience to make them the carrier of choice.

Internationally, Air India does not offer the best product – Lufthansa is better to Germany and British Airways for London.

So is Singapore to Singapore and Thai to Thailand, you are not the strongest. Then why make your domestic subservient to

Opportunity for change: time to start assessing ‘real’ performance

Every new dispensation offers an opportunity for change. Yes, Air India has been doing better in the last year or so, has done well to have eventually joined STAR Alliance which is a strategic asset, and the Dreamliner fleet appears to have finally settled down. But these improvements have been still below expectations and the losses continue to mount – till when will the government go on with subsidizing the airline? It is also understood that the government means business, wants to continue running the airline and that there are no plans for privatization.

So, what are the challenges before Mr Turnaround, an expression that seems to have grown upon Ashwani Lohani? First and foremost, we believe we will do well to separate the legacy debt burden and its servicing from the operational side.

Ideally, we believe the legacy debt should be handled separately, either within the airline or even by the Ministry of Civil Aviation and the government must take care of that part of the debt which any new dispensation cannot be blamed for.

This debt should not colour the everyday performance of any new operational

hub over the main Indian metros. It should forge mutually sustainable alliances with the airport operators who would be more than keen to do so, with the concerned state governments and also the central Ministry of Tourism.

Call it flag carrier or a carrier with national interest

Very often we have heard that in today’s world, there is no room for a flag carrier.

We do not agree with this logic. Whether it is privately held or government owned, every worthwhile international airline is serving the cause of its home base, in terms of tourism and its civil aviation.

Take the case of Emirates and Dubai Tourism, or that of Abu Dhabi and Etihad, or that matter even Lufthansa for Germany and British Airways for Britain. The story is no different for Thai Airways and Thailand and for Singapore and Singapore Airlines. There is a home market, a home base, and the country’s tourism inter twined and working for each other. This symbiotic relationship seems to have snapped between Indian tourism and Air India – it is not surprising that Indian tourism decline was in that same period when Air India started its fall. Our belief is that both need each other, and the sooner they start working together again, the better for both.

Management deficit could be an issue: bring the best consultants Ashwani Lohani: Leading Air India out of troubled clouds will probably be the most challenging stint of his remarkable career

a position that is presently shared only with Jet Airways – no other airline has significant operations in both domestic and international. Jet has already married Etihad, and now serves first the Abu Dhabi hub. Flying both domestic and international, that leaves only Air India to serve Indian aviation and tourism.

Need to establish market leadership in both segments We would recommend that any new revival strategy must look at each separately; first become the market leader in each – domestic as well as international. Don’t make domestic routes subservient to foreign operations and lose the domestic advantage – see the success

an operation that is not the best?

There is considerable merit in looking at domestic and international operations under separate teams – even more so on route strategy and its commercial operations? One can only wonder how Indigo has five flights daily direct between Delhi and Goa and Air India has only one. Even Vistara has two already?

Tourism should be the bedrock for revival

Our other contention is that in their first forays, when Air India and Indian Airlines were kings in their domains, their first priority was India’s tourism.

This seems to have been forgotten over the years. It is our belief that tourism

Management expertise could be a challenge. It will need fresh talent, the best in the world. It is our belief that some degree of intervention is desirable, possibly with consultants. Over the years, it is possible that some talent has eroded, making it difficult to compete with the best in many departments including technology to give the airline the required reach and penetration. Some of this talent may be available with its STAR partners the airline must be willing to recognize the need for such talent and be open to bringing fresh infusion of talent.

Today, more than sales offices, travel is sold on the internet – we must have the best technology to fight competition.

Presently, many of the old timers are either retired or about to. A young crop is coming up the ranks, and many of them remain relatively inexperienced though eager to learn. The older guard was also

Air India is a PSU and also an airline. Many of its problems will relate to PSU issues but not all. Many of the vital challenges it faces are aviation linked. Fortunately for Air India, fuel prices are at the lowest in years, giving the airline much needed relief on ATF prices. But the larger aviation picture is complex, and running an airline a most complicated exercise – witness the churning seen over the global scene. team. The operational side should be left for the new management and ideally this is what they can be rightly judged for.

And there are numerous yardsticks that one can go by. Market share, yields on routes, turning around specific sectors, and in fact improving the performance of the airline, restoring some of its old and tarnished glory.

Two sides to the present Air India: domestic and international

So, what are the challenges, and where are the solutions? We will do well to remember, in the historical perspective, that this present day Air India also includes the erstwhile Indian Airlines, which it was amalgamated with. That each of the two carriers were leaders in their respective territories - one

of Indigo and Spicejet to understand that there is a market, now exceeding 70 million annually. Let domestic be driven by domestic considerations and international be serviced with select international penetration, otherwise through STAR Alliance partners. But it should be the preferred carrier on every route that it serves. For instance, it should have double daily frequencies to London from Delhi, Mumbai and Bengaluru if not also Chennai. Beyond London, it can sell on any STAR partner, whether it is United to USA, Air Canada to Canada or to Germany and most of Europe on Lufthansa and its owned sister airlines, namely Swissair and Austrian. Air India’s flights to London should be direct, and not stopping via Amritsar and elsewhere.

It should stop doing lip service to routes,

should and could become the bedrock of their revival. On pure commercial terms, it would be a different challenge to compete with the private and international airlines. But if a tourism first approach is adopted, it can change the rules of the game. Internationally, Air India’s partner could well be the Ministry of Tourism, and domestically, it should be the different states that it serves across the country. It should make a fresh selection of cities that make sense to Indian tourism, both for domestic and also for inbound, and make sure it becomes the preferred choice of travellers, with frequency, timings and pricing. It could do well with the revival of erstwhile promotional programmes such as its successful Stop Over tours. It is the only airline that can immediately

de-motivated with frequent assaults from the media and the political bosses and the travelling public. Restoring confidence must be the first priority for the new team.

Lastly, and most importantly, Air India is a PSU and also an airline. Many of its problems will relate to PSU issues but not all. Many of the vital challenges it faces are aviation linked. Fortunately for Air India, fuel prices are at the lowest in years. But the larger aviation picture is complex, and running an airline a most complicated exercise – witness the churning seen over the global scene.

Lohani will need to tread cautiously on these, as his progress will be watched eagerly by many, most of all by competition, that will be too eager to see him make mistakes!

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AIRLINES & AIRPORTS

For SpiceJet there is enough space to succeed in the market: Ajay Singh

Till late last year, the perception about Spice Jet was: after Kingfisher, it will be second major belly up casualty in the Indian aviation space. But in a dramatic turn of events, the original founder of the airline Ajay Singh got into the cockpit to save the airline and the recent months’ performance have triggered the hope that the airline has been diverted from the disaster route. The airline has reported better than industry average on the critical load factor parameter and has also delivered two straight profitable quarters. According to Ajay Singh, the recovery course of the airline has exceeded their own expectations and the new management is confident to regain the position of prominence which the airline used to enjoy in the market not too long ago. TourismFirst caught up with Ajay Singh on the sidelines of a recent seminar in Delhi. Here are the excerpts of a brief conversation:

By RITWIK SINHA

As your revival drive picks up further momentum, the winter schedule is slated to be very critical for you. How the scene will pan out for you in terms of catering to the increased demand which comes with the season?

We are getting five more aircrafts for the winter period. These are Boeing aircrafts and we are open to get more aircrafts if we feel the need to substantially enhance our capacity. With the new aircrafts we will be introducing 40 more flights – both on the domestic as well as international routes.

W

e do understand the enormity of the challenge you are facing right now.

Before you stepped in, market observers had this feeling that Spice Jet will go Kingfisher way. But you took back your baby in your lap about six months ago and in all fairness, some of the recent developments point out that you have managed to put in place a concrete revival course for the airline. So how would you explain the past six months? Has the recovery been better than what you had expected?

Quite honestly, it has been better than what we had expected. We were faced with very difficult situation when we had taken over. And there was a great crisis of confidence not only within the company but also in the entire aviation sector particularly because of the collapse of Kingfisher. Considering the scenario, we have managed to achieve significant progress. Load factors have been high, we have earned profits in past quarters and have managed to pretty much sort out a lot of liabilities and other operational issues. Most importantly, we have got consumer confidence back in the airline.

Tell me the key concerns you had when you began this restoration drive after taking over the airline?

To restore the confidence of the passengers in the airline was a vital challenge because they had suffered a lot of cancellations in the past.

Restoring credibility with lessors and the government – that was the largest task for us. And then trying to ensure that operations remain stable.

There have been indications from Spice Jet quarters in the recent weeks that after stabilising your operations, you are looking for a massive expansion in fleet considering your long-term plans. Have you firmed up your plans? Can you share some details on it – which manufacturers you are talking to presently?

We remain in discussion with manufacturers and as soon as we firm up something, it will be conveyed. Let me specify, we have not discussed any spe-

Ajay Singh : the original founder of SpiceJet is confident that the airline will recover the lost ground

cific number but we expect the aircraft numbers would be sizeable.

What happens to the delivery of 55 Boeing Max which was finalised by your predecessor? Will there be any change in the plan?

We will take a call on that after we have decided on the size of the order and the manufacturer.

How would you term the negotiations which you are having with manufacturers – advanced, preliminary?

The negotiations have been on for a while. And we expect to conclude these negotiations in the present financial year and place the orders.

Indigo and Spice Jet were seen as close rivals at one point in time till Spice Jet’s decline happened. Now Indigo has put a mega order of 250 aircrafts and the sense is that it will give them the handle to dominate the market for a long time on the basis of their sheer fleet size. Will this factor influence your own decision when you place the order before the end of this fiscal?

We have a massive market in India. Less than 2 percent people are flying and, therefore, there is a great potential. I

think the market needs competition and it needs multiple players. While the rival airline you referred to has done extremely well, I think there is enough space for Spice Jet to succeed in the market.

The Prime Minister has expressed concerns on the predatory airfares regime in the country. Spice Jet, itself has indulged in several flash sales in the recent months. How would you respond to it?

The available data is quite clear on this.

A study was conducted by the DGCA on the airfare trends a short while ago. And they have found that on an average, the airfares have gone down by 20 percent from last year. So I don’t think there have been predatory fare trends in the marketplace. Of course, on certain occasions when the flights are full, the fares can go up and they can be very high. But on the flip side, there are also fares which are extremely low. You mentioned the promotional schemes that Spice Jet has pioneered and those are being adopted by every other airline. You have fares in the bracket of 999, 1299 or 1499. As I said, airfares have come down by 20 percent and it is actually the stimulation which has been brought about by these low airfares which is resulting in the current growth in the Indian aviation market.

You are indicating a major order placed before the end of the fiscal.

How do you intend to fund them?

As soon as we finalise the plan, we will let you know. But let me assure you, there is no paucity of fund available to Spice Jet. We are on a strong recovery path and we have a whole range of options available including strategic investments.

You seem to have relied too heavily in promotional sales in the recent months.

How have they worked for you?

In last four months, our average load factor has consistently gone up. It has been highest in the industry – it was over 92 percent last month. And this has happened in a season which is not considered peak for the aviation business. It has been beneficial for both the passengers as well as the airline. We will stick with this strategy. It is important for the LCCs to stimulate the market with low air fares. It also helps in getting some passengers from railways.

Finally, how much time you reckon it will take you to get back to the peak days of Spice Jet? If by peak days, you mean the number of flights and number of aircrafts, that will depend on how the market shapes up.

But in terms of profitability, the Q4 of last year which was the first three months of our takeover of the airline, Spice Jet became profitable for the first time after five years. It was in 2010 that the airline had witnessed a profitable quarter. In Q1 this financial year, the scene improved further with Spice Jet recording highest profit in its history. In that sense, we are getting back on track pretty quickly.

12

INLAND WATERWAYS River cruise segment is expected to be a major beneficiary of the government’s ambitious plan to create over 100 greenfield waterways.

45 new inland waterways will create new tourism opportunities, says Verma

By RITWIK SINHA

D

espite presence of over 10 major rivers covering a staggering stretch of around 15,000 km, the lack of its potential tourism offshoots is a major rankling point for the observers. Sheer ignorance is the larger verdict which also encompasses the nonchalant attitude prevailing for 60 years wherein very sketchy attempts have been made to facilitate waterways emerge as a

o robust transportation mode alongwith the railways, roadways and airports. But come winter session of the parliament and there is a strong possibility that the clearance of the The National Waterways Bill,2015 would pave the way for a tectonic shift vis-à-vis waterways development on a longterm and consistent basis. And among other business sectors, tourism could be a leading beneficiary of this mega move.

It would indeed be a mega move since the bill provisions for creation of as many as 101 new national inland waterways (as against the existing five). The bill was introduced in the parliament in May and was referred to the parliamentary standing committee which has now submitted its report after the larger consultation with the concerned central ministries, state governments and private stakeholders.

And after a fresh ratification by the union cabinet, it is slated to be introduced in the next session of the parliament. No doubt, the primary objective of creating a robust national inland waterways is to shift the cargo load from railways and roadways to this new mode (only 0.3 percent of cargo within the country is transported via waterways as against over 10 percent in the leading economies in the world), these new waterways would be catalysts for the economic activities in different regions in the country. And it is likely to give a major boost to the river tourism segment as in a sizeable chunk of the planned new waterways, there would be scope for development of segments like river cruise, water sports, etc. “This bill will be attempting to finally put the focus on this massively ignored area for decades.

Between 2005 to 2010 alone, China had made an investment of `78,000 crore in developing their waterways. But we had put in an investment of just `1150 crore between 1986 to 2010. We are finally going all hog in tapping our river potential for transportation and this is good news for tourism sector stakeholders too,” says Amitabh Verma, Chairman, Inland Waterways Authority of India (IWAI), which is in the thick of this development.

The government’s emphasis on establishing a robust national inland waterways network is a recognition of

NEW INAND WATERWAYS

HIGHLIGHTS

The National Waterways Bill, 2015 likely to be cleared in the winter session of the parliament The bill envisages creation of 101 new inland waterways 56 of them likely to be primarily driven by cargo movement, about 45 will boost other economic activities including tourism Government is also planning to link religious tourism sites on the river bank with national waterways Advanced feasibility study currently underway The mega plan is meant to give big ticket push to the neglected waterways mode Investments in creating over 100 waterways estimated to the tune of `40,000 crore some critical facts: creating national stretches on a standalone basis does not make any sense, for hinterland connectivity the state waterways have to be linked with national waterways, there is a need to evolve a new mode of transportation to do away with the growing congestion (both passengers and goods) on a long-term basis, etc.

Furthermore, while waterways ensure less pollution vis-à-vis railways and roads, creating the basic navigation infrastructure on rivers is cost effective by a wide margin. “It broadly takes `2-3 crore for creating one km of waterway if a lot of dredging is required. But you will have to invest around `8-10 crore to build one km of roads and `10-12 crore for laying one km of railway track,” Verma underlines.

Coming back to government’s grand plan, of the 101 new national waterways which have been proposed (parliamentary standing committee has added 20 more units after its consultation with the stakeholders), while 56 are

State Andhra Pradesh

No. of rivers/ canal

Name of the River/Canal

3

Krishna, Pennar and Tungabhadra

Arunachal Pradesh

1

Lohit

Assam

13

Aai, Barak, Beki, Dhansiri/Chathe, Dehing, Dikhu, Doyans, Gangadhar, Kopili, Lohit, Puthimari, Subansiri and Tlwang (Dhaleswari)

Bihar

6

Gandak, Ghaghra, Karamnasa, Kosi, Punpun and Sone

Delhi

1

Yamuna

Goa

6

Chapora, Cumberjua, Mandovi, Mapusa, Sal and Zuari

Gujarat

4

Mahi, Narmada, Sabarmati and Tapi

Haryana

2

Indira Gandhi Canal and Yamuna

Himachal Pradesh

2

Beas and Ravi

Jammu & Kashmir

4

Chenab, Indus, Jhelum and Ravi

Jharkhand

2

Kherkai and Subarnarekha

Karnataka

7

Bheema, Ghantaprabha, Kali, Krishna, Malaprabha, Netravathi and Tungbhadra

Kerala

12

AVM Canal, Bharathappuzha, Chaliyar, Kadalundy, Kallada, Korapuzha, Manimala, Meenachil, Muvattupuzha, Pamba, Valapattanam and West Coast Canal

Madhya Pradesh

3

Chambal, Narmada and Tons

Maharashtra

12

Amba, Arunawati/Aran, Kalyan-ThaneMumbai Waterway, Manjara, Nag, Nardama, Penganga/Wardha, Savitri, Shastri/Jaigad, Tapi, Ulhas and Wainganga/Pranahita

Mizoram

1

Tlwang (Dhaleswari)

Nagaland

1

Tizu/Zungki

Odisha

5

Baitarni, Birupa/Badi Genguti/Brahmani, Budha Balanga, Mahanadi and Subarnarekha

Punjab

3

Beas, Indira Gandhi Canal and Sutlej

Rajasthan

3

Chambal, Indira Gandhi Canal and Luni

Tamil Nadu

8

AVM Canal, Bhavani, Kaveri/Kollidam, Manimutharu, Palar, Pazhyar, Tamaraparani and Vaigai

Telangana

6

Bheema, Krishna, Manjara, Penganga/Wardha, Tungabhadra and Wainganga/Pranahita

Uttar Pradesh

10

Asi, Betwa, Chambal, Gandak, Ghaghra, Gomti, Karamnasa, Tons, Varuna and Yamuna

West Bengal

15

Ajoy, Bakreswar/Mayurakshi, Damodar, DVC Canal, Dwarekeswar, Dwarka, Gangadhar, Ichamati, Jalangi, Kumari, Mahananda, Rupnarayan, Silabati, Subarnarekha and Sunderbans Waterway

13

INLAND WATERWAYS likely to be primarily driven by the cargo segment, the remaining 45 will have ample scope of other business activities including tourism. The feasibility study is currently underway. “When we identify a waterway, the first consideration is whether we can make it convenient for navigation shipping. We expect that there would be a few smaller waterways which may primarily be devoted for tourism purposes, recreation, house boats, ferry purposes and roro facility.

They may not cater to the huge cargo movement,” informs Verma. Interestingly, in government’s new scheme of things, the new waterways planned are much smaller than the existing five stretches in the country. Some of them could be as small as 17 or 22 km and only a handful of them may exceed 500 km range.

Though in the precise sense, the possible destination beneficiaries in the tourism list would only become clear after the completion of advanced feasible studies, a sense could be drawn from the list of waterways which have been proposed. For instance, 13 new waterways have been planned for Assam, six for Goa, four each for Gujarat and Jammu & Kashmir, seven for Karnataka, 12 for Kerala, three for Madhya Pradesh, 10 for Uttar Pradesh and 14 for West Bengal (refer to the graph). Simultaneously the

government is also working on a plan to link religious sites on the banks of Indian rivers which will ultimately converge in the larger scheme of creating over 100 new waterways (read the box piece).

According to Verma, even with the limited National Waterways creation in the country so far, there are green shoots to suggest that tourism is poised to reap rich benefits out of this mega move. “If you take the National Waterways 3 which is the backwaters of Kerala, it is a 205 km stretch from Kottapuram to Kollam served by more than 100 houseboats. We have developed a lovely stretch which can compete with any global waterway driven by tourism activities. In National Waterways 1 and 2 which have been developed substantially, a lot of cruise tourism is happening now,“ Verma says while adding that five cruise companies are operating 10 vessels on this stretch catering to high networth individuals and foreign tourists. In addition, good cruise routes have been developed over the years between Haldia-Farakka, Haldia-Patna, Farakka-Patna and last year Patna-Varanasi route has also been opened up. “The river cruise tourism will definitely get a major boost with the kind of new plan which we expect to set afoot after the bill becomes a reality,” sums up Verma.

Linking religious sites with waterways is a priority now

W

hile the government is gearing up to deliver a long-term economic booster in the form of over 100 new national inland waterways, its willingness to encompass tourism in the beneficiary ambit is well reflected in a recently evolved strategy.

The gameplan underlines linking India’s famous religious sites situated on the banks of different rivers with cruise tours and this is expected to be a key cornerstone of the new inland waterways network which The National Waterways Bill, 2015 will eventually facilitate as and when it becomes a reality. TourismFirst has learnt that the strategy was discussed in a meeting presided by the prime minister Narendra Modi with senior representatives of Ministry of Shipping and Ministry of Tourism on 21st June, 2014 and since then IWAI has been holding parleys with different stakeholders to understand the issues (fairway development, access and connectivity to terminals, appropriate berthing facilities, basic civic infrastructure at terminals, etc) in developing robust connectivity between religious sites and river cruise. In fact, late last year a working group comprising representatives

The gameplan underlines linking India’s famous religious sites situated on the banks of different rivers with cruise tours and this is expected to be a key cornerstone of the new inland waterways network which The National Waterways Bill, 2015 will eventually facilitate as and when it becomes a reality. of cruise operators, domestic tour operators, IWAI, Ministry of Tourism and state tourism departments was constituted to examine the modalities of cruise tours connecting religious places and invite recommendations.

It is a work in progress at this stage but a report recently prepared by IWAI clearly underlines that some religious sites have been identified where specific action (primarily in the form of circuit development) will be required to accomplish the task. For instance, on National Waterways 1 (built on the river Ganga), the sites identified for cruise linkage development include Allahabad Circuit, Varanasi Circuit, Patna Circuit, Bhagalpur Circuit and Kolkata Circuit. On National Waterways 2 (Brahmaputra river), Guwahati Circuit, Tezpur Circuit and Neamati Circuit have been identified for further development.

On a broader basis, some specific recommendations have emerged from the discussions of the working group underlining the set of responsibilities for different stakeholders.

For instance, IWAI has been asked to clear the decks for an all-weather navigable channel with draft of 2.5 meters in the identified circuits.

This would obviously entail comprehensive and intensive dredging activities. IWAI is also supposed to ensure proper berthing facilities at the connecting terminals. For the state governments and Ministry of Tourism, the primary task would be to provide tourist amenities at terminals, jetties, river fronts and ghats. This would involve putting up separate restroom facilities for ladies and gents, parking facilities, emergency medical facilities, road linkages, etc. The state governments may send proposals to Ministry of Tourism for 100 percent financial support for development of these basic amenities. For maintenance of tourism places on river banks, the working group has suggested to involve local civic authorities and also NGOs. To ensure safety and security of the cruise visitors, the working group has strongly recommended sensitization of the local police force and also formation of a dedicated river police units by the state governments.

14

SMART CITIES

18 tourism centers get major booster dose with inclusion in Smart City Mission By selecting a host of tourism specific cities in its first bunch of Smart City programme, the government has yet again demonstrated its seriousness to integrate tourism with national mainstream economic agenda. The move has enthused the local stakeholders who believe that the initiative would go a long way in changing the fortune of high-footfall destinations.

By RITWIK SINHA

A

fter dramatically relaxing visa regime to augment footfalls in the country and launching dedicated destination development programmes like HRIDAY and PRASAD, on 27th August the union government gave yet another proof of its intention to accord tourism sector the coveted status of being an important economic driver for the future. The government released the list of 98 cities where action will begin soon under the flagship Smart City project involving a staggering investment of around `48,000 crore over the next five years. In its first decisive step on smart cities, the government has shortlisted 24 business and industrial centers, 24 state capitals, 5 port cities and as many as 18 tourism and cultural cities. Some of the important tourism cities which have been covered in this list include Aurangabad, Amravati, Amritsar, Dharmshala, Ujjain, Panaji, Diu, HubballiDharwad, Gwalior, Sagar, Udaipur, Allahabad, Varanasi and Agra. “A smart city would ensue core infrastructure needed for decent living in urban areas… The prime objective is to enhance the quality of urban life by addressing deficiencies in core infrastructure,” Urban Development Minister Venkaiah Naidu said while releasing the report. On a cumulative basis, these 98 cities have a population of over 13 crore covering nearly 35 percent of urban India.

With the formal declaration of 98 cities, the urban development ministry has already set the ball rolling asking the local bodies to submit a formal rejig plan (`2 crore has been allocated to each city to prepare the action plan). After a feasible plan is in place, each city will be released a corpus of `200 crore (half of this will be contributed by the state governments and local bodies) to kickstart their respective action plans in the first year and then will be given a further assistance of `100 crore every year for the next four years.

The move simply seems to have enthused the stakeholders of these destinations in no small measure. TourismFirst spoke with elected representatives of some of the tourism destinations to gauge the mood of the local stakeholders who will eventually make it happen at the ground zero level in terms of reaping the benefits of the smart city tag.

Dharamshala: Global Tibetan center thrilled with the new status Dharmshala, a city in the upper reaches of the Kangra valley in Himachal Pradesh, is popular as the global center of Tibetan movement. The city is visited by nearly half a million domestic and foreign tourists every year and according to its MLA Sudhir Sharma (also state urban development minister), the smart city tag is indeed a prestigious distinction. “From Dharamshala’s perspective, this is a positive move. Our population base is small but tourists inflow is quite commendable. We hope that the funding provided by Smart City Mission will expedite the process of fixing some of our basic issues like providing water to all on a 24x7 basis,” he says. Even as the city’s plan for rejuvenation is currently being worked upon, Sharma underlines that smart city recognition may well augment the current development programmes. “It certainly puts more responsibility on our shoulders to respond to the opportunity offered by the mission programme.

For instance, we are working on alternate mode of transport to reach to the hilly stretches through ropeways. We are also pursuing to put in place underground community dustbins in the city. All such efforts will be expedited after inclusion in the smart city list,” Sharma points out.

Aurangabad: Shot in the arm for Maharastra’s tourism capital Aurangabad, often referred as the tourism capital of Maharastra thanks to its AjantaEllora attraction, is another prominent tourist destination which has been included in the smart city mission list and going by the words of its MP Chandrkant Bhaurao (a Shiv Sena leader), the recognition comes at a time when the city is adding new strengths.

“Aurangabad is no longer just a tourism destination. With the opening of some noted educational institutes in the recent years, it has also become an educational hub. It is also evolving as a major business hub since it is an important strategic point on Delhi-Mumbai Industrial Corridor. We are eyeing for a holistic development through several programmes and this smart city status will augment that drive,” says Bhaurao. The

city in the recent years has seen some fresh development impetus with a `350 crore grant from Japan Bank for International Cooperation (JBIC). Out of this, `60 crore has been infused to upgrade the local airport. Additionally the local municipality body has also embarked upon a major 50 km long water pipeline project (investment to the tune of `92 crore) to fix the water crisis in the city.

Another major project is also currently underway to upgrade the sewage system in the city with central assistance. “We have been thinking of upgrading the smaller roads in the city and launch a major plantation drive for the beautification of the destination. Also in the pipeline is wi-fi facility for the entire city. Now that we have smart city status, these initiatives will be set afoot soon,” Bhaurao adds.

Ujjain: Smart City tag comes at an opportune moment The holy city of Ujjain (in Madhya Pradesh) with a population of around half a million is expected to witness the arrival of a staggering 50 million pilgrims next year when it hosts Simhastha Maha Kumbh. The city has made it to the list of first bunch of smart cities and according to Chintamani Malviya, the BJP leader and MP, the recognition could not have come at a more opportune moment. “It gives us the reason to put serious efforts in making Ujjain one of the most beautiful pilgrim destinations in the world. It would be a five year long programme and a lot can be done with the kind of structural guidance that comes from the mission.

Since we are gearing up for Simhastha, the additional

support in the first year can help a great deal in improving basic amenities,” he points out. According to Chintamani, the state government is leaving no stone unturned in

making the mega Simhastha event a grand success and in the past two years `2,500 crore has been infused in upgrading the physical infrastructure. This includes investments creating a ring road structure and setting up 11 overbridges. And additional

funds to be provisioned by the smart city mission programme could well be directed to improve other basic amenities to give a seamless experience to millions of tourists who will be coming next year.

“While we have just begun working on our city development plan which is a mandatory requirement, considering the present condition in my city, the immediate support from smart city programme could be targeted to ensure 24 hour supply of water and electricity. It could also be used for adequate street lighting. In the coming years, we have plans to set up a cultural museum and this programme will definitely help. We also want Ujjain to assume the identity of a great cultural center,” says Chintamani.

15

INVESTMENTS & INDUSTRY

Karnataka eyes $9 billion investment with fresh incentives announced in new policy HIGHLIGHTS

Karnataka is targeting a staggering $9 billion investment in its tourism sector in the next five years The state government is expecting a significant surge in tourist arrivals – to 214 million by 2024 from around 100 million now Recently launched tourism policy introduces 18 new products Corporates allowed to invest in tourism projects via their CSR funds The state government is seeking integration of Information and Communication Technology (ICT) for improving quality of services to tourists

Karnataka Industry & Tourism minister R.V. Deshpande at the recently held ‘Invest Karnataka’ roadshow in Delhi

Karnataka is all set to up the ante in consolidating its position in the national tourism scene. Its recently launched new tourism policy is much in the news for unveiling as much as 18 new class of products and offering red carpet welcome for potential investors.

By RITWIK SINHA

A

t the recently held ‘Invest Karnataka’ roadshow in Delhi which was attended by representatives of as many as 26 Chinese companies as well as host of corporate representation from Japan and Europe, the senior functionaries of the state government showcased a range of investment opportunities for the private sector. While IT- ITES, chemicals and metals, automobiles, etc. were the leading segments aggressively promoted by team Karnataka before the gathering of global investors, an equal emphasis on tourism was quite conspicuous. The broader objective of the state government expressed on the occasion was: Karnataka is aiming to become the best state in reaping the benefits of ‘Make in India’ programme and in terms of tourism specific objective, its target is to emerge as the most attractive hotspot in the country. The state which boasts of most protected monuments in India is currently ranked at number four slot among states in terms of visitors footfall.

The trigger for the new found confidence which Karnataka government is displaying vis-à-vis putting its tourism sector in a fast lane clearly stems from the new tourism policy which has been recently unveiled. Laying the foundations for massively changing the

tourism scene between 2015-20, the new policy anticipates a staggering jump in tourists inflow – to 214 million by 2024 from the present level of a little below 100 million. And, therefore, to cater to this projected demand surge the state government is targeting a massive investment inflow of $9 billion in next five years. Nearly half of this is expected to be routed from the private coffer and, therefore, the new policy not only provisions for more attractive norms but has also significantly widened the tourism portfolio. “ We have recently come out with a new tourism policy and among other attractions, it has also introduced 18 new products which need development at a rapid pace with the participation of the private sector. Many observers in the tourism industry are calling it a unique initiative,” said R V Deshpande, Minister for Large & Medium Industries and Tourism, Karnataka.

As per the FDI statistics available for Karnataka between 2000-2015 period, the total investments in the state’s hotel and tourism sector has been to the tune of over `7000 crore. Furthermore, between 2009-14, Karnataka tourism had approved 318 projects amounting `950 crore. Out of this, about 126 projects had managed to meet the deadline.But according to Gaurav Gupta, Commissioner for Industrial Development, the government is committed to dramatically change the scene now. “Karnataka is clearly aiming to further consolidate its position as an economic magnet in the country and tourism has been identified as a major vertical for us. If you look at our policy paper, the scope of tourism investment has been significantly widened and we are confident of meeting the $9 billion investment target,” he told TourismFirst on the sidelines.

Some of the key objectives of the new policy include encouraging entrepreneurship in tourism development, provide a total quality experience to visitors, motivate and engage different segments of the society to contribute in state tourism development, encourage local employment opportunities and facilitate integration of Information and Communication Technology (ICT) for

improving quality of services to tourists.

In terms of action plan, the government through its new policy is committing to encourage mega tourism hubs of `100 crore or above and is setting up a Tourism Infrastructure Company for development of required infrastructure and other related facilities through dedicated SPVs, PPP framework, joint ventures and other appropriate structures.

Furthermore, the state government has approved Karnataka Tourism Trade Bill (Facilitation & Regulation), which envisages for enabling investments in tourism, ensuring safety and security of tourists and strengthening accountability at various tiers of the government. The icing on the cake from the standpoint of attracting the private sector is: the state government has allowed the corporates to invest in tourism projects related to community development and rural tourism through their Corporate Social Responsibility (CSR) initiatives. Equally important is the provision to leverage existing financing options extended by multi-lateral agencies for tourism development. The list of products where

the scope of private investments has been extended is quite long including mega projects (targeting golf, cruise, entertainment parks, tourism trains, etc) , heritage zones and clusters (around the sites of Hampi, Badami, Bidar, Pattadakal, Aihole and Bijapur), Marine Tourism (in Mangalore and Karwar), Eco Tourism (a dedicated stretch between Coorg and Karwar), rural, wellness, adventure and weekend tourism.

“Barring snow clad mountains, we have everything. And we want to ensure that each of these segments provide world class experience to the tourists in the years ahead,” Deshpande asserted while speaking to the investors. Gaurav Gupta, further specified that while upgradation of the existing tourism products and creation of new assets would be a key focus, enhancing experiential quotient for tourists would get equal attention. “We already have a destination like Mysore which is recognised as the cleanest destination in India. We would like our other destinations too to have this kind of appeal and therefore improving basic amenities will be mandatory behind all our efforts,” Gupta added. Simply put, Karnataka government is promising action galore on its tourism front in the coming years.

Corporates responding to CSR incentive Karnataka’s efforts to aggressively involve the private sector in pushing its tourism bandwagon to the next stage is well reflected by a recently undertaken initiative which many tourism stakeholders are calling unique. It has become the first state in the country which has allowed the corporates to infuse their Corporate Social Responsibility (CSR) funding in tourism projects – particularly those directed to tourism linked community development and maintenance and upkeep of the existing monuments and assets.

The initiative, termed as “Adopt a Tourist Destination” programme is a key highlight of the recently unveiled new tourism policy (2015-20)

of the state and facilitates tourism specific facilities and infrastructure provided the company pitching in commits continuous funding supply for a minimum of five years. All such financing will be counted as corporate CSR expenditure.

Going by the words of a Karnataka government senior official, the corporates have favourably responded to this proposition with as many half a dozen MoUs signed between the government and the companies for adopting tourist destinations. These include an MoU with Jindal Foundation for Bangalore Museum, BCIC pitching in to take care of the maintenance of Lal Bagh, Sandur Manganese entrusted with the responsibility of improving basic amenities at

Rnganathittu bird sanctuary, and Tasveer Foundation coming forward to take care of the famous Venkatappa Art Gallery. In addition, the maintenance of Kavala Caves will now be the responsibility of West Coast Paper Mills and Coffee Day will work on basic amenities development for Belur- Halebidu. “The corporate response has been very encouraging. Most of them will be involved in improving basic amenities around noted destinations which is much in alignment with our larger objective of giving quality experience to our visitors. We are expecting more corporates to come forward and participate in this exercise going ahead,” the official told TourismFirst.

16

HERITAGE In a no holds barred conversation, veteran theatre actor and director blames the lack of imagination in projecting Delhi as the cultural hub of the nation. He also suggests a roadmap to recovery by pitching in private players in diversifying tourism offerings and using street-food to create an irresistible experience.

Monuments should act as centers for cultural events: Aamir Raza Husain The way forward Amir Raza Husain suggest a fourpronged strategy to make Delhi a hub of cultural activities. He stresses on making the most of the community spaces transforming them into cultural activities zones. Apart from coming down heavily on the ASI, he emphasizes on conducting cultural shows in monuments bringing history and culture closer to each other in the real sense.

By SHASHANK SHEKHAR

I

ndia, which takes pride in calling itself the repository of the world heritage and the longest continuing civilization in the world, is going through a crisis of sorts.

A look at the state of cultural events and theatres that act as an attraction for the visitors – as it gives them a first-hand experience of the country’s DNA – is in a state of doldrums. It is cutting a sorry picture for a country as diverse in culture, cuisine and heritage as us. “Propelling a destination as a tourism product requires a lot of government help. As far as I am concerned, and my industry is concerned, Bollywood sells the world over. Why can’t we package it as tourism gimmick?” argues Hussain. “London has a lot of plays going on all the time, they have about 35-40 west end theatres, New York has, also around 40-50 theatres – these are big tourist hubs. So, anyone who is going to these cities is surely going to go to west end and Broadway. We are bereft of such engagements, we do not have any evening activities, so tourists are not interested in staying-over and heads to close by destinations. We have no activities and shows to keep them in Delhi,” he says.

It is true that theatres require ample money and initial investment. However, Husain is of the view that instead of looking at fresh investments, it is time to look at monuments as centers for cultural programmes and culinary exploration. “Sure, we can’t build fourty new theatres over-night. But, what we do have is a number of monuments where we can create shows. Every monument can have a different show. You can have a dance and light show somewhere, a bhangra programme, a qawaali concert somewhere else.

We have such a wealth of legacy of culture and heritage – which we are yet to exploit.

Monuments can create magic for the tourism industry, not just in Delhi but world over.

But there needs to be a reason to visit the monument, “he reasons.

Bemoaning the lack of skilled staff to create a pleasant interface with the visitors, he points out the stark difference between an experience in India and one abroad.

“We go to Lal-Quila, Hampi and Agra, now compare that experience to going to one of the smaller monuments in Western Europe, let us say Windsor. You will find people there dressed up in medieval costumes, there are audio-visual guides and food in the premises. Our guides are dressed shabbily, have inadequate grooming to handle visitors, and have little skills to handle their jobs in a competent way – because we have not trained them,” he emphasizes.

ASI must clean up its act ASI must wake up to the reality. You can’t have a monument clean by banning food and drinks. They will have to start taking responsibility as a serious stakeholder. Nowhere in the world, will you find that food and drinks are unavailable in the major attractions.

They blame it on tourists, but can’t they have a mechanism in place to keep the premises clean and yet use food to boost sales? It should rope in skilled people to create an interface with the visitors.

It must engage trained guides and chowkidars in the whole process.

Explore the power of Indian street food India’s culinary strength is undisputed.

What is stopping us to make food an enabler in travelling? The ministry of tourism and other stakeholders must catch hold of trained chefs and restaurateurs that do not serve hamburgers and have a hygienic and standardized menu serving clean street food – which will not give the traveller a bad stomach upset. We can use the power of Indian street food and have

monuments as centre of history, culture and cuisines. It will floor the crowd.

Evening cultural shows They are an extremely important facet of city’s tourism offering. We have none here. Why can’t we have the corporate taking care of its upkeep and provide entertainment. Let them run the show.

Wouldn’t it be a great situation where different private parties compete to stage the best show and ensemble of products in the city? Can’t we begin with twenty monuments? The ministry of culture can take the responsibility of staging the cultural events. With such a wide variety of culture and heritage to showcase, I see no problem in creating a platform like that. I am sure, if we begin by doing this, there will be tremendous spurt in the number of visitors in a very short span of time.

Create hubs of activities using vacant community spaces We must use available community spaces to create zones for different activities.

Take for instance, the Times Square in the New York – it is a hub of activities, there is some or the other event or happening there all the time. Can’t we use the empty spaces around Rajpath, for instance, to have a number of shows, dance performances and cultural events?

We can have designated corners where people can find a great place to relax and eat good food, enjoy good cultural activities etc. This will act as a magnet, not only for the foreign tourists, but bus-loads of Indian tourists who come to Delhi in search of a vacation.

He advises handing over the monuments, for upkeep, to corporate players and involving them in looking after the building, the guides, their uniforms and the gardens.

“All of it will render a different feel. But, if we keep offering them chowkidars in chappals, shouting ‘tickets!’ on top of their voices, then we got to stop and re-think,” he quips.

Instead of copying the western model, he suggests adopting a unique Indian approach, focusing on accentuating Indian history, culture and cuisines with an international feel and standard. “We can have thirty different shows at different venues, each one different from the other. We can’t get the quality of theatre that is happening in Broadway and west end, but we should look to create activities with an Indian idiom, in an international language, with an international feel, equipment and standards. We can promote our history and culture and give the visitor an authentic Indian experience. We do not do all of this because there is simply no vision,” he tells us.

17

HERITAGE

’65 War highlights how heroes can be celebrated and tourism around them We have forgotten our national heroes, seldom celebrated collective moments of triumph. As a nation, we need to connect these memories and destinations into a seamless experience.

Tourism should help make these sustainable and help build a sense of national pride.

HIGHLIGHTS

New tourism products will stem out of different pegs. Chivalry, heroism and patriotism is an important peg which will bring us more tourism Commemorating national heroes and celebrating their contribution towards the nation can help create new tourism products and instill a sense of national pride and honor

By SHASHANK SHEKHAR

J

ay Prakash Narayan, famous freedom fighter and one of the tallest socialist of modern Indian history, hailed from Sitab Diyara, a village in Chappra district of Bihar. His ancestral home, which has been used as a launch-pad by several politicians to revive their flagging careers, lies in tatters today. There are ample examples of such perpetual neglect dotted across the country which points towards

The need is to identify these destinations, connect them through appropriate infrastructural augmentation and market them diligently as a symbol of our collective past Apart from, maybe Jaliawala Bagh, we have little to boast of in terms of showcasing our collective moments of triumphs and tribulations as a nation our inability in taking pride in, our heritage and, important heroes of the bygone era.

It is, indeed, heartening to note that the government has planned extended celebrations to commemorate Indian victory in the 1965 war. A two month long event, with a reported budget of `35 crores, will honour fallen soldiers and as per media reports a ‘mini-republic day’ celebration will also be held at Rajpath.

Such events are laudable and will go a long way to instill a sense of pride in our nation and achievements. These will also act as an engaging way of educating our younger generations, and creating nostalgia, around the sacrifices that went into the formation of independent India.

The need, in India, to build new tourism draw and creating new tourism product is a well understood requirement. Now, a lot of these new products will stem out of different pegs and one of the major pegs – which, like most other, is not being looked at – is that of glory, chivalry, sacrifice and national honour. We sure have commemorated some, for instance Jalliawala Bagh is probably in the highest echelons in this category. But we have failed to impart it a sense of connectivity and continuity.

The conundrum facing us is threefold. We must, first, be able to identify these assets, and they are plenty in numbers. Second is to create requisite infrastructure and amenities around them and third, we must be able to market them adequately.

We often hear government talking about developing theme based circuits. It could be a wonderful idea to connect a mainland city to a place of heroism and one that instills national pride. Then, make them accessible and weave the offering in a way that it is seamlessly put together.

All of this would require modest investment, as these would not require any fancy five star hotel to boost footfall. A functional two-star hotel with decent facilities is all that is needed to make it start, see how each of these ideas work, to take development further.

One real problem is the sheer vastness of the sub-continent. In a place like London, most of the important tourist draws are conveniently located at walking distance. In India, with landmarks such as those associated with war heroes and other national icons located in far-flung areas, packaging them together remains a daunting task.

We must find ways to engage local stakeholders to chalk out a comprehensive plan on how exactly do we intend to market them, ensuring the entire programming is inclusive, creating linkages with the local community imparting to them a respectable sense of belonging in the heritage as well as in the tourism revenue to make it a sustainable model of growth.

18

HOTELSCAPES : GOA

Hollywood themed resort adds unique hospitality experience to Goa’s profile Goa, now, has a Hollywood themed resort to attract new visitors. Through this concept that has many new elements, Anand Chaterjee, GM, Planet Hollywood resort hopes to add to Goa’s tourism profile and give visitors a truly unique experience in luxury.

By SHASHANK SHEKHAR

G

oa’s tourism profile has a plethora of elements to make it a successful tourism destination. Pristine beaches, sea-food and weather are some essential assets that have given it the international fame it enjoys today. It would, ideally, take something unique to add to its existing grandeur and a Hollywood theme based resort is a perfect addition to its repository. Located on the white sands of Utorda Beach at South Goa, this 115 rooms resort is first of its brand in Asia, second in the world after Las Vegas and stretches on 12 acres of land. With a total inventory of 115 rooms and suites with eight room blocks – each depicting a unique Hollywood theme and fifteen seasonal tents – visitors can expect luxury and uniqueness in its midst.

Anand Chatterjee, GM, Planet Hollywood resort says it was Goa’s concurrence with Las Vegas, as a vibrant, active and high energy city, that made them choose it as the first Asian city to venture in. “Las Vegas has so much in common with Goa. It is similar in its vibe and energy as a destination. None of the other Asian destination has the vibe of Goa and with such a strong Indian domestic inflow, it had to be Goa,” he tells us.

On the question of lending more strength to the tourism product of Goa, through his property, he tells us that it was the unique concept of a theme hotel that was missing in the coastal city. “You have many properties in Goa, but none have the elements that we have used.

We have a different theme in each room, different furniture, low-rise architecture, dramatic sculptures in the lawns, art work and plenty of attractive lighting to give

our visitors a truly unique experience,” he shares. “I would go as far as saying that these elements are so disruptive, and in a positive sense, that it gives our patrons a very different experience than they have had before in Goa,” he stresses.

But, beyond these features, it is the friendly service and focus on intense personalization for the guests that lends the resort its USP, feels Anand. He believes that despite the ensemble of offerings, it is the top-notch service that retains clients and he has focused on this aspect to engage patrons. “We do a lot of background research on the social profile of the guest to better understand his needs. Elements like personalized baggage tags and warm service – I wouldn’t say casual but warm and friendly service – are helping us attract and retain patrons. In a span of two months of opening we have had repeat guests, so I would like to believe that we are on the right course,” says Anand.

On whether a theme hotel is a hindrance to attracting a gamut of clientele and restricts them to only leisure travellers, Anand shares that the property has a large banquet hall and a sprawling lawn to bring MICE and wedding events in the fold of operations. “We have an outdoor bar and shack to enjoy the best beverages and cigars, so we are equally good at parties and events,” he tells us.

He shares that since it was an off-season for Goa, so majority of the clientele were from the corporate side and hoped the situation to get better on leisure travellers front in the coming months. “Right now, we mostly have corporate travelers on the weekdays and leisure travelers on the weekends. But, we hope this will change post October as people head to Goa for festivities,” he concludes.

The walls are full of pictures depicting Hollywood classics giving it a unique look and feel

I can tell you that Goa is in the middle of a major revamp of its tourism offerings.

Goa will remain the quintessential Indian getaway: Anand Chatterjee A

destination, no matter how attractive and fulsome, needs constant innovation to keep the tourist spellbound.

Goa, having enjoyed the numero uno status as a tourist destination for a considerable time, is also in midst of adding new elements in its tourism bouquet to keep the visitors engaged. And it is this constant innovation that will keep Goa a happening destination for times to come, feels Anand. “We, as stakeholders, are in constant touch with the tourism ministry and administrative machinery of state. I can tell you that we are in middle of a major revamp of our

tourism offering,” he tells us. He shares that Goa has recently inaugurated, India’s first, amphibious bus ride – which will take tourists for a spin in the sea and on the road in the same vehicle. “We, also, have moderate level River rafting in Valpoi River to give adventure seekers some more options at hand,” he shares. On offer is an amphibious sea-plane

ride as well.

However, instead of relying too much on the international arrivals, it is more the rising middleclass and first time flyers that he pins his hopes on. “In the two months of hotel operation I have seen a number of families that are first time flyers, so I see no reason why Goa’s tourism should saturate now or in years ahead. India is a destination that has unparalleled domestic market in terms of movement. We will continue to have a strong domestic inflow, irrespective of the international situation, and the neo-Indian middle class will keep us a destination for all seasons,” he asserts.

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HOTELSCAPES : MAHABALIPURAM

‘Coromandal circuit’ grows, Mahabalipuram registers robust footfall with Chennai’s rise

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ahabalipuram, thanks to Chennai’s rise, is clocking a healthy rise in tourist inflow.

InterContinental, with a fabulous mix of luxury and heritage, aims to cater to these enthusiasts seeking a cocktail of history and luxury.

Chennai’s boom, as an automobile and corporate hub, has had a profound impact on the tourist inflow in the city. Its trickle-down effect has given destinations, in the proximity, more prominence as well. Mahabalipuram, renowned for its nine monolithic temples, cave sanctuaries and open-air reliefs forming a classified UNESCO world heritage site, is getting its fair-share of foreign travelers and domestic enthusiasts. Located on a coast between Chennai and Pondicherry, a popular route and historic destination for local and international travellers, it is becoming a getaway propelled by better accessibility and Chennai’s rise as a corporate city.

According to the data collected by Tamil Nadu Tourism Development Corporation (TTDC), in April, the numbers were over eight lakh and nearly nine lakh domestic visitors visited the world heritage site in May. Domestic tourists apart, there were over 70,000 foreign visitors both in April and May. These are healthy numbers and with more and more travelers opting to visit destinations in the nearby areas, it is also quickly integrating itself as a part of the circuit – which, also, comprises of Chennai, Puducherry, Madurai and Tirupati.

Vijai Singh, GM, InterContinental Chennai Mahabalipuram Resort shares that the city’s rise to prominence has been aided by its proximity to Chennai and it being a fabulous repository of heritage and culture. “It is gaining, not only because of a fabulous ensemble of culture and history – which dates back to several hundred years – but also because of its proximity to Chennai. We receive a number of weekend travelers seeking a break from their monotonous corporate lives,” he tells us. “We have also seen a growth in foreign tourists who visit Puducherry and Tirupati. Its location, a mere 35 kilometers from Chennai, is a great asset and an important reason to its ascent to prominence,” he says.

Explaining that its inclusion in the circuit has been helped by its easy accessibility, Vijai says that: “The circuit itself is very accessible, in terms of distance, and the interest of visitors in culture and history is huge. Entry and exit from Chennai airport is extremely hasslefree and there is so much on offer for a regular traveler ranging from beaches, cuisines and a plethora of historic monuments.”

Tourism in Mahabalipuram is also getting a fillip because of a strong MICE and wedding market that has seen a steady stream of clientele from Delhi, Mumbai and Bangalore, we were told.

“There is a good market for MICE and wedding, primarily driven by clients, from Mumbai, Delhi and Bangalore.

Interestingly, though, we do not see much traffic from Chennai. It is a getaway of sorts for the corporate clientele to conduct their meetings and conferences in the serenity of Mahabalipuram,” he shares with us. He tells us that the hotel was aiming to target corporate events and clientele on the weekdays and leisure getaway clientele in the weekends. “We depend on MICE travellers, especially, on the weekdays. However, there is more leisure clientele on weekend getaways who come even from Mumbai and Pune.

In terms of numbers, Mahabalipuram gets 30 percent foreign and 70 percent domestic travellers,” he explained.

With so much to offer it is indeed an arduous task to add to the city’s tourism profile. After all, it is difficult to match the artistry and grandeur of the Pallavas.

However, the hotel has added a new product which has the essence of local culture and heritage, says Vijay. “There are two luxury hotels here that have neither renovated their product or their inventory in a very long time. Our resort is a new product imbued in local culture and ethos that gives it a unique positioning. Our architectural elements – very traditional south Indian temple like structure –use of black stones and marbles, swimming pool conceptualized like a temple tank and look and feel are all essentially traditional but with exceptional luxury and service,” he claims. “In a nutshell, we are a product where culture meets impeccable luxury

HIGHLIGHTS

Better accessibility and rise of Chennai, as a corporate city, has lent Mahabalipuram a unique profile attracting corporate and leisure clientele in equal measure It is fast integrating into a part of ‘Coromandal circuit’ with travelers opting to visit Tirupati, Chennai and Madurai in one go – giving the entire region a boost MICE and wedding segments see a tremendous growth in the recent past. A healthy number of foreign inbound indicates its unique positioning as a repository of art and heritage Registers nine lakh visitors to the famed World Heritage Sites, in the month of May, as per the data released by Tamil Nadu Tourism Development Corporation

and service. In fact, the resort, itself, is emerging as a mini destination as we are only 13 kilometers from Mahabalipuram,” he adds.

It is, indeed, heartening to see that by the virtue of constant dose of development, stand-alone destinations are integrating themselves to provide the clientele more choices at hand. Although,

VIJAI SINGH GM, INTERCONTINENTAL CHENNAI MAHABALIPURAM

In a nutshell, we are a product where culture meets impeccable luxury and service. In fact, the resort, itself, is emerging as a mini destination as we are only 13 kilometers from Mahabalipuram.

,,

over-accessibility has its own set of consequences – one of them being drop in the number of travellers opting for an over-night stay, hurting hotel’s business prospects. Amritsar is an apt example of such a consequence. But Vijai is assertive that Mahabalipuram will not face a similar fate. Expressing confidence in the destination’s unique tourism elements, he says, “Not really, I do not think such a situation will arise here. People come here to get-away from the hustle and bustle of their daily lives. All the tourist attractions are close-by and changing hotels itself is a tiring process. People stay over here to relish the varied offerings of this great getaway. So it will remain a busy destination for the foreseeable future,” he concludes.

20

HOTELSCAPES : MUMBAI TF Promotion

N a m a s t e B o n j o u r A profusion of French luxury, a fusion with classic from India: Sofitel Mumbai A heady mix of style and tradition, Sofitel’s impeccable offering is a cocktail of the best of both worlds. This new property is sure to lend it a unique positioning in Mumbai’s dynamics landscape.

T

he flagship of Sofitel Luxury Hotels in India, Sofitel Mumbai BKC is the new gem of Mumbai’s five- star hotels, located in the geographic heart of the city – the Bandra Kurla Complex (BKC). In a short span of just three years, Sofitel Mumbai BKC has picked up steam and has proved to be a brand to look out for. The luxury property of AccorHotels in India has won several awards and is today in the top three hotels on TripAdvisor out of over 400 hotels in Mumbai. So what makes this brand so unique?

Sofitel Luxury Hotels worldwide are renowned for offering a genuine experience of elegant French luxury and the best of local culture, which is symbolized by the powerful and unique logo – the Sofitel Link. Differentiating itself in terms of its Brand Pillars – Design & Innovation, Culture & Events and Gastronomy & Wine, Sofitel Mumbai BKC combines the best of warm Indian hospitality with French ‘art de vivre’ in a signature art nouveau style, which is delicately reflected in its design and service thereby creating a niche of its own.

Sofitel Mumbai BKC has successfully introduced the city to a unique mélange of French and Indian design inspirations.

The hotel lives by the motto – “Life is Magnifique!”. Being a large boutique hotel, Sofitel Mumbai BKC promises to offer guests an opportunity to experience luxury at its best. The hotel is a unique address where buoyant business meets a chic lifestyle.

Contemporary elegance combined with exquisite design create a symphony of style in the 302 guest rooms and suites of the hotel. Cutting-edge meeting spaces and lavish venues, the elite Club Millésime Business Lounge on the top-most floor, a wealth of innovative dining outlets, So SPA, So FIT, a serene open-air pool and its strategic location in the new financial centre of Mumbai make this luxurious hotel a haven for both business and leisure travellers. Right from the time a guest

checks-in, the hotel promises to plate up the most attractive experience that is sure to make one’s stay memorable.

The main differentiating feature of Sofitel has been its emphasis on design.

The interior design of the hotel was conceived and created by Ms Isabelle Miaja, a designer of International repute.

The innovative design at the hotel is created as a blend between Indian and French cultures, intricately weaving the two together through different design elements in the hotel. Each detail has been carefully balanced with perfect harmony in the varied colours, shapes and décor that are carefully weaved into the opulent spaces. The entire hotel has intricate artwork and a story behind every diamond and structure. Thoughtfully woven together, Sofitel Mumbai BKC is like a jewel in the heart of the city that couples French elegance and Indian regality with panache.

Inspired by jewellery and gemstones, as Isabelle was the daughter of a jewellery designer in Paris, and a tribute to the Diamond Bourse next door as well, Sofitel Mumbai BKC is embedded with stones, shapes and geometry. The tilted glass work in the lobby and rooms, asymmetrical pillars, contrary to many spaces that need to deal with structural columns in a “wrapping” conventional way, Isabelle wanted each column to exist as an art form on its own.

The bedroom interiors are a perfect blend of French elegance and Indian culture. The bed structure is reinterpreted from the Indian style; with a new concept offering a classic yet modern and comfortable feel. Textures, patterns and colours are influenced by the Paisley motifs integrated with the French Baroque style to recreate a whole new classic look.

The wall paper also features a Paisley design originating in Kashmir, often found on Pashmina shawls. The Paisley design was introduced into Europe by Empress

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HOTELSCAPES : MUMBAI

BISWAJIT CHAKRABORTY GM, SOFITEL MUMBAI

Josephine, the wife of Napoleon, who used Kashmiri shawls as cushion covers in her palace.

The Prestige Suites present a sense of luxury and elegance with their distinctly separate living and sleeping areas. The magnificent Imperial Suite cocoons guests in a spacious and luxurious interior design which stretches over 1,700 sq.ft, blending the best of French flair with Indian inspirations.

Two bedrooms, an in-suite office and beautifully designed living spaces make this the perfect, dramatic address-within-anaddress at the Sofitel Mumbai BKC. All the rooms at Sofitel Mumbai BKC create a soothing retreat, in the heart of the city. The theme of the two cultures carries forth into the rooms with Indian motifs outlining curtains, windows and lining the ceiling. The artwork in the rooms is a unique collection of prints under the banner of “A Tale of Two Cities” that brightens each room, while the use of royal purple adds an additional touch of luxury. Each of the 10 different paintings custom created by Isabelle Miaja, show historical monuments from India merging with landmarks from France.

These unique pieces in the room depict French and Indian flavours, has bright colours depicting red and mauve which has also been adopted in different areas and furniture within the room. This unique and modern concept has been loved by the guests, especially the foreign nationals as they can experience and relate the culture of two different cities in one place.

Food and Beverage

From organizing themed brunch parties to hosting glamourous fashion shows, Sofitel Mumbai BKC is putting together innovative ideas to always keep their guests pleasantly surprised. They even brought over a dozen International Chefs to India including a French Chef for introducing guests to the flavours of France, a Thai Chef for authentic Thai cuisine, a Vietnamese Chef for a taste of Vietnam, a German Chef for crafting sumptuous sausages, cold-cuts and charcuterie delicacies and more recently, a Japanese Chef and Lebanese Chef for a Middle-Eastern fare. Together with the cuisine, Sofitel Mumbai BKC has also flown down local artists to give guests not only a taste of gastronomy, but also the culture of that particular country through perfromances, art, décor and more. These initiatives are just a tip of the iceberg to offer guests with unique experiences.

Consistently adding new offerings to their outlets, Sofitel Mumbai BKC hopes to increase engagement for the business district’s luxury consumers with

fresh, upbeat and innovative activities. Those looking for an informal French meal amidst charming French interiors, Sofitel Mumbai BKC has Artisan, which will excite you with its quintessential feeling of an enchanting ‘Café Parisian’ in the heart of Mumbai.

Fine hand-made chocolates, house-smoked charcuterie and the aroma of freshly baked breads and cheese makes this venue a must-visit for friendly chats with gourmet bites and coffee. For the evenings, Artisan is transformed into an eclectic venue of music and gastronomy with a stylish Jazz & Blues lounge where innovative gastronomic delights are served together with Cocktails, Margaritas, Wines, Sangrias and more.

The hotel has varied food and beverage outlets each with an inspiration.

The signature restaurant of Sofitel Mumbai BKC, Jyran – Tandoor Dinning & Lounge, features the luscious cuisine from the north-west frontiers of India. Jyran, which means ‘lost love’ in Persian, is a name symbolic of hope, new beginnings and emotions that follow a deep and moving experience. Inspired from the Northwest Frontier Province, a land of warriors & poets, Jyran Tandoor Dining and Lounge is designed with celebration and drama in mind. As one walks over the little bridge leading to Jyran, one feels a sense of theatricality and grandeur. The bridge leads you over Jyran’s signature water features, giving you a feeling of floating over a mystical and blissful abode. The entrance at once establishes Jyran’s unique position and style in the Sofitel Mumbai BKC family – one which combines elegance and traditional charm. As you continue to walk, the entrance bar exudes a sense of warmth and welcome, making it the perfect transition space into the main restaurant.

The main restaurant interiors are complemented by intriguing influences

“Sofitel Mumbai BKC has done well last year and 2015 too has been very positive for the hotel. We have seen enhanced occupancy levels over last year and the upcoming season looks buoyant in terms of both, average room rate (ARR) and occupancy levels.

Our present ARR is on par with other luxury hotel competitors and our RevPar has actually been performing better. We endeavour to enhance our RevPar, which will be a judicious mix of volumes as well as ARR. This will be possible to achieve through quality product offering, impeccable service, intelligent marketing and high ratio of repeat guests. In the coming year, the plan is to amplify Sofitel’s three key brand pillars and provide guests with a holistic experience to make the hotel a destination in itself. The goal is to make Sofitel Mumbai BKC the luxury landmark in Mumbai as well as a cultural and entertainment hub of the city.”

,,

from palace style windows to informal timber seating, and an imaginative blend of materials in an art-deco inspired dining area. An outdoor lounge area is highlighted by three bowls of fire and the terrace area offers al-fresco seating. The restaurant has different sections to cater for smaller or bigger groups.

An impressive recycled metal elephant sculpture weighing several tonnes, is located outdoor, as though it were walking on air. The sculpture also creates a dramatic icon that is intended to initiate conversation about the origin of the restaurant’s name, which was inspired by a heart- warming tale of a young boy named Jyran and how his friendship with an elephant taught him the lessons of life.

The food at Jyran reveals a true mastery of flavours and textures and crafted to give you a palatial ambience and cuisine, Jyran treats you nothing less than a Maharaja!

Vegetarian cuisine is gaining popularity and Sofitel Mumbai BKC takes pride in its all-vegetarian fine dining outlet – Tuskers, which is inspired by the most regal of vegan creatures – the humble Elephant.

Prepared by their very own ‘Maharaj’ (Master Indian Chef) in a stand-alone kitchen, the restaurant offers the purest of vegetarian cuisines, and is one of the only outlets in a 5-star setting. Splendidly masculine, the dining bar interior is designed in a bold fashion; using rich

warm leathers, walnut chesterfields, carpets, grill works, elephant motifs and plush wood. Tuskers is designed to be the ideal venue for dining, having business lunches or for hosting events. The dining bar also offers a private dining area situated in the far side of the restaurant, for those on business meets. The wine cellar houses a fine repertoire of wines and the bar offers a range of exclusive and rare single malts, as well as classic cocktails. It also serves an exclusive place for a South Indian Breakfast every weekend, from 7:00 to 11:00 a.m. at an introductory offer of only INR 711.

Le Bar Diamantaire – the Lobby Lounge sports a majestic floor-to-ceiling Wine Tower with a collection of select Indian and international wines. With over 820 bottles from 120 countries, the gorgeous wine tower is one of its kind in the city. An intimate seating space enhanced by two unique elevated pods that are installed to provide for private rendezvous.

Pondichéry Café, the hotel’s all-day dining restaurant provides guests with an inspired international palette with buffet and à-la-carte options. An Indo-French blend of taste and design, guests can step into the Pondichéry Café and discover an epicurean extravaganza serving the best of Indian, Oriental, Mediterranean, Western, Continental delicacies and more. An elite area for private dining of up to 10 guests lies enclosed in a glass structure inspired by the raw mysterious form of uncut diamonds, set like a jewel in a ring.

Outlets like Pondichéry Café, Le Bar Diamantaire have unique features to lend an elite experience to the Diamond Bourse fans. While the pillars represent uncut diamonds and none are alike, the Private Dining Room (PDR) is set like gem in a ring. The two tone Saffron and Purple bar has embedded crystals in the Sofa and make a peaceful spot for an evening with your loved one. With diamonds and gems, one is sure to look for a regal dining experience as well.

All in all, there are multiple reasons to visit the Sofitel Mumbai BKC, but its innovative décor is certainly a visual treat and its plethora of dining options top the list!

Contributed by TEAM SOFITEL MUMBAI

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HOTELSCAPES : NEW LAUNCHES

Hospitality veterans to participate in PACE 2015

Starwood unveils its new brand Sheraton Grand

100 Sheraton Hotels to be recognized with Grand Designation by early 2017

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tarwood Hotels & Resorts Worldwide, recently revealed the first ten Sheraton Grand properties, which span from Bangalore to Beijing, Dubai to Edinburgh, Miyazaki to Seoul, Taipei to Bangkok, and Tokyo to Rio de Janeiro. By year end, the group expects to have 50 newlydesignated Sheraton Grand hotels around the world with plans for 100 by early 2017.

Sheraton Grand is one of many initiatives currently underway for Sheraton 2020, a comprehensive plan designed to solidify Sheraton as a leading global hotel brand of choice, everywhere.

“Sheraton is Starwood’s largest and most global brand, and as we continue our work to firmly keep Sheraton in the spotlight, we recognize the need to better match guest expectations for the brand around the world,” said Adam Aron, Starwood CEO on an interim basis.

“Sheraton Grand celebrates our standout hotels and helps us further reinforce Sheraton as a trusted voice in global

Blue Ocean brings luxury to Ganpatiphule

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anpatipule is one of the best destinations that Maharashtra has to offer, as it boasts of deserted snowwhite sands, delicious local food and ample of the activities to delve into. Ganpatipule being the most preferred get-away destinations, the place gets its first luxury resorts Blue Ocean Resort & Spa. On can expect, upon arrival, a luxury resort of enchanting Portuguese style

villas, set amidst coconut plantation that opens onto a golden sweep of beach and the warm clear waters of the Indian Ocean. The resort boasts of 31 guest rooms and villas that include Tropical Garden View Villa, Luxury Garden Villa and Luxury Villas that has a lounge with open Garden Bath. This ecofriendly resort offers its guests the opportunity to experience different healing traditions at their Siam Spa. You can soothe your senses with the exotic massage therapies and one-of-a-kind relaxing body treatments. One can also choose to enjoy a cleansing exfoliation remedy and facial or calm the senses with one of the extensive aromatherapy sessions. The knowledgeable staff at Siam Spa ensures that its guests receive the finest care.

The resort offers fine dining options for those special holiday evenings away from home. One can dine at the Atlantic Multi-cuisine Restaurant featuring authentic Indian-Asian, Italian, Chinese, continental and other specialties while enjoying air-conditioned comfort or open-sky terrace or the tropical breeze al fresco style. The restaurant also offers varied options for breakfast, lunch and dinner. On offer is an array of international and Asian cuisines and imported meat and fresh seafood with local herbs and spices.

travel.” The Sheraton Grand designation signifies an exemplary hotel offering for both guests and local communities, with hallmarks including resorts, convention properties, and urban hotels that offer unrivalled standards of service and outperform guest satisfaction benchmarks.

The thrust is also on dynamic guest-rooms and public spaces exhibiting sophisticated design and elevated finishes.

Also on offer is impressive hotel amenities, including top-rated restaurant concepts and renowned chefs, superior gyms, unique Sheraton Club lounges, and an array of idyllic spa options.

Pusa Institute Hotel Management Alumni Association (PIHMAA) will be hosting its annual showcase event on 19th September at the Radisson Blu Hotel, Mahipalpur, New Delhi. PACE 2015 (PIHMAA Annual Conclave & Exchange) as it is titled aims to get together students of the country’s most prestigious hotel school from over six decades in an evening of inspiring discussions, fun, entertainment, cocktails & dinner.

Starting with the knowledge session spread over three hours, industry leaders and successful entrepreneurs from the alumni will share their views in two focused panel discussions. The first session will deliberate this critical issue: ‘Are Hotels really keeping pace with the rapidly changing needs of today’s global traveller?’ This will be followed by a threadbare deliberation on inspiring Gen Y in building successful enterprises in the hospitality business. After business sessions, the evening will unfold into a grand gala of entertainment, games and music and fun.

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HOTELSCAPES : MUMBAI

Mumbai’s luxury profile gets a shot in the arm with St. Regis’ debut Mumbai, as corporate hub, is also fast becoming a leisure getaway for the high-end travellers. St. Regis’s debut is a testimony to its clout as the city that has best of both worlds and plenty more.

By SHASHANK SHEKHAR

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umbai has a distinct character. Its evolution and establishment as the lynchpin of India’s corporate clout has given it a fair share of tourism.

With better inflow of finance and steady stream of travelers – it has become the hub of luxury and corporate hospitality in the recent years. But, it is equally a leisure destination, in its own right, which attracts rich and wealthy from the world over. Driven by the desire to get a toehold on this ever burgeoning market, St. Regis has made its debut in Mumbai – first of its property in South Asia. Located in India’s tallest tower, it is already creating ripples in the tourism landscape of Mumbai.

Anuraag Bhatnagar, GM, St. Regis Mumbai believes that their entry was aptly timed as the country and a number of Indian cities – especially Mumbai – were mature enough to be a truly luxury market destination. “India as a country, and as a destination, is really on the upswing.

A lot of luxury travelers are coming to India and it, also, happens to be the biggest market in Southeast Asia. Over the years, substantial affluence has trickled down to tier-2 and tier-3 cities as well. So, India is right and ready to be a luxury destination and a market to receive the St. Regis,” he reasons. Emphasizing that Mumbai was the focal point of this mega launch, he says: “Mumbai is the poster city of India. It is the corporate capital, a financial hub and a megapolis. In India, it had to be Mumbai. Our property is, also, conveniently located between south and north Mumbai. So, in all the sense Mumbai is the very central to our plan.”

Mumbai’s tourism product is vivid and colorful. It has ample cuisines, beaches, Bollywood and entertainment to keep it a year round destination for the travelers. St. Regis brings uber-luxury and unparalleled service and quality to those coming to experience the ‘maximum city’ he says. Sharing that the hotel will add to the overall tourism product and give new meaning to luxury, he says, “We, foremost, bring a rich legacy of 111 years with us. We, as a group, have been around for over a century. Our unique rituals ranging from wine tasting

HIGHLIGHTS

St. Regis debuts in Mumbai, first such in South Asia Focus on high-end travelers, from USA and Western Europe, coming to Mumbai for leisure The hotel set to focus on its USP, quality and service, to attract clientele. Mumbai witnessing steady inflow of tourists – both corporate and leisure Wedding and MICE important tourism components - extremely important to the group’s performance in the ‘maximum city’

ANURAAG BHATNAGAR GM, ST. REGIS MUMBAI

Over the years, substantial affluence has trickled down to tier-2 and tier-3 cities as well. So, India is right and ready to be a luxury destination and a market to receive the St. Regis.

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to afternoon tea, uber luxury, style and substance, personalized butler service – which we have pioneered – are all elements that give a new meaning to luxury hospitality”. He believes that the hotel was already the grandest of address in Mumbai and the interest seen among guests seeking wedding functions in the property was an encouraging sign for the hotel and, indeed, the city.

“It is the positioning in the minds of our clientele is what we are focused on. As

a brand we are the finest in luxury and service,” he adds.

Although, it is a move that is optimistic in fervor and bodes well for the city, but it is also a massive investment that would need sustained business for the group to reach breakeven. We asked Anuraag whether they had a time-frame in mind to recuperate their investment. He shares that within a short span of time, since opening, business has been brisk and the scale

and grandeur of the hotel is also giving them an opening in wedding and MICE segment. “In the short span of operations we have seen repeat clientele. Our clientele is willing to experiment and the enquiries we are receiving be it for rooms, wedding events or MICE – we are extremely optimistic that we will breakeven in quick time. We have received a fantastic reception and I expect double-digit growth for us in days to come,” he optimistically tells us.

24

GLOBAL EXCHANGE

Spain

Linking Latin America to India via Spain could be a game-changer for tourism: Spanish Ambassador

H.E. Gustavo de Arístegui believes that linking Latin American cities to India via Spain could be a win-win situation for both the countries. He is hopeful that the bilateral footfall will surge with more exposure and Middle-Eastern refugee crisis will not have an impact on overall numbers.

An excerpt of the conversation at his office:

By SHASHANK SHEKHAR What does tourism mean to Spain? How important it is for its economy and global positioning?

We are the second largest destination in the world, and indeed a world power, as far as tourism is concerned. It is almost 12 percent of our total GDP – which equates to about 140 billion euros. We have 4-5 of the biggest brand of hotels and probably the biggest brand in the Latin America and the Caribbean. The industry of tourism is extremely important to us, to the extent that there is, not only, official tourism schools around the country but dozens of private schools. We consider it as an extremely important component of engagement.

What are Spain’s unique advantages vis-àvis destinations and tourism products?

We have a plethora of advantages, we are in a continent that in the north has less hours of sun and more cold months in the south in a relatively small space. In fact, we are peaking at about 73 million tourists this year and we do not count

world mobile congress in Barcelona – are all components that are our strength.

It must be a challenge, as well, to cater to such a swarm of visitors?

Well, it sure has enormous benefits for our economy but it also has tremendous burden for our service industry. It is true that we are one of the best countries as far as ratio of overall infrastructure to population is concerned – we have the biggest capacity of road network in the entire Europe.

Tell us a little bit about Indian outbound to Spain?

Well, they go to Spain for a different kind of tourism than others. They do not go for the beaches, or less and less of it – there are a lot of Indians that go to places like Marbella and Ibiza. But, a vast majority of Indians go to cities and they want to see culture and art, enjoy the culinary experience, shopping and essentially enjoy a vacation.

We have a number between 1,29,000 and 1,50,000 tourists from India in 2014. We certainly hope that with direct air-connectivity this number will go much higher.

Calle de Alcalá, Madrid

people going to Spain for business in it. So, visitors has to be in excess of a hundred million – which is easily more than twice our population!

We are a large country with a 7,800 kilometers of coastline having different climates ranging from cool and moderate to sunny and continental.

If, you, compare with other countries, we have a relatively lower density of population as well – which gives us a large number of national parks that are protected by law. Spain has one of the largest numbers of world heritage sites and a long history of castles, cathedrals and monasteries. We have a staggering number of 20 cities that are included in the coveted list. It is one of the most diverse countries of Europe in terms of languages, history, culture and gastronomy. The shopping, meetings like the world SMART city congress and

HIGHLIGHTS

Is Europe the number one market for Spain?

It is an important market but not the only market. We are also getting a large number of Chinese travellers, Japanese and Latin American tourists. So we are very well spread out that way.

So, do you see an impact of the refugee crisis in Europe and volatility in the Chinese market on tourism in Spain and Europe?

Not to us. In the middle of the financial crisis – where a lot of people stopped travelling – we have had the best years of tourism in our history. It was the first time, recently, that we broke the 70 million inbound tourist barrier. Nobody thought that it was going to happen but the instability in the Middle East and the eastern Mediterranean is helping Spain.

By and large we have similar elements to offer but in a politically peaceful

H.E. GUSTAVO DE ARÍSTEGUI SPANISH AMBASSADOR TO INDIA

A vast majority of Indians go to cities and they want to see culture and art, enjoy the culinary experience, shopping and essentially enjoy a vacation. We have a number between 1,29,000 and 1,50,000 tourists from India in 2014. We certainly hope that with direct airconnectivity this number will go much higher.

Latin America emerges as a key market for Spain.

Better air-connectivity with Madrid helps to boost numbers Over 1, 50,000 Indian visited Spain in 2014, numbers to grow says Ambassador Refugee crisis and Chinese market crash will not affect tourism in Spain and Europe, newer destinations compensating the marginal dip

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environment with competitive prices and much better service. It is true that there has been a fall in Russian numbers but there has been a phenomenal increase in the number of Latin American tourists.

So we are confident of good inflow in the days ahead as well.

Tourism is an important indicator of bilateral relations. What is your take on the state of tourism between the two countries?

Tourism is, indeed, an important indicator of the bilateral relations, but tourism between the two countries is not anywhere near as it should be. And there are several reasons for this. There is a lack of mutual knowledge about our two nations and there is, of course, a hindrance of not having direct air-connectivity.

Yes, I wanted to come to that. There is no direct air-connectivity which is a huge setback for the tourism industry.

We are hoping that Iberia – Spain’s largest airline – receives new air-planes soon which will be used for long-haul flights.

As you are aware that Latin America is a huge market for us and through Iberia we are connecting old and new routes like Nicaragua and Havana to Madrid and other cities. We connect all the major cities of Latin America like no other. So, we are trying to advertise to our Indian partners that they must come forward to cash in the growing interest about India in Latin America. You would need connectivity to tap that potential and Middle-east is not the best option at hand. The gulf carriers only go the main cities and not to all the cities. And the shortest way to reach Latin America – which does not have direct air-connectivity – is through Madrid. This could mean a phenomenal opportunity for the Indian carriers.

So has anything moved for good?

We were in talks with Air-India and there were some advance studies done. The previous chairman of AirIndia visited Spain for a very successful mission – which I, myself, attended.

The meeting was attended by all the major stakeholders of aviation in Spain.

We hope that the study will conclude favourably and we can mutually benefit from it. Then, of course, Iberia, when receives new aircrafts, could think of opening some Asian routes and it is been rumored that Tehran, Tokyo and may be India are possible destinations.

Third possibility – again speculation – is that an airline like Vistara might fly to Spain. It will be a great move, as other Indian carriers go to usual places that are saturated markets. Madrid has not saturated, the airport has a built capacity of over a 100 million passengers and right now it is servicing about 50 million. It is a two-way street which will, also, get more Latin American and Spanish tourists to Indian shores.

How do you view cinema as tool to bolster tourism?

Look, there is no denying the fact that Bollywood has played a crucial role in creating an image in the minds of Indian travellers. The number of Indian tourists doubled in the year following the movie ‘Zindgi milegi na dobaraa’. It was a turning point for us. Even the King saw the movie. Look what it has done to Switzerland, Prague and Berlin. A lot of tourists coming to Spain even want to take the same route as shown in the movie. We are promoting other movies to be shot in Spain. We have a singlewindow clearance system and maintain a very tight link with the film and television producers’ guild of India.

Spain has some of the best-preserved castles in the world. Do you think heritage-reconstruction could be a major area of alignment between the two countries?

Absolutely. We would be delighted to work with our Indian partners to share our expertise in this field and, frankly, we are very good at it. With such a vast repository of ancient heritage and monuments, India could be a wonderful country to work with.

25

GLOBAL EXCHANGE Switzerland gained a cult status after the blockbuster DDLJ, a still of the classic

Switzerland

Cinema tourism takes a backseat, Switzerland woos high-end leisure Indian travellers Switzerland is in the process of positioning itself as a yearround destination, focusing on highend travelers. This tectonic shift, also, indicates an increasing role of hard cash in attracting cinema fraternity.

By SHASHANK SHEKHAR

A

n average Indian’s first introduction to the beautiful country has been the celluloid that has, through the decades, aptly captured its unrivalled beauty and snow-clad Alps. Since, the blockbuster Sangam, of Raj Kapoor, many filmmakers have centered their narratives on Switzerland – making it truly an aspirational destination. But with changing times and evolving market dynamics, it is, in midst, of a major repackaging of its profile. It is aiming to boost its footfall by attracting high-end leisure and individual travelers. Claudio Zemp, Director, India, Switzerland tourism board shares the reason for a profound change in strategy. Once a mecca for cinema shooting, Switzerland is finding it difficult to compete with newer destinations that have doled out hefty cash incentives to lure film-makers. “Interaction between the Bollywood and shooting destinations has changed quite dramatically over the years.

It is certainly not the same. In the changed dynamics, now, there is huge sums of money and incentives involved – and all of it doled in advance – which was not there in the past,” he says. Sharing that lack of availability of cash component remained a hurdle for them, he tells us: “We used to have agreements on accommodation, and also have VAT rebates and tax concessions in place, but now it is a lot of hard cash which rules. That is why see other destinations, which are more willing to park in their money than we are, getting a better share of cinema tourism from India.”

“As a tourism board we do not have that kind of budget to be able to incentivize movie-makers through cash. We are happy with the exposure that cinema tourism has given us in India, but the hard fact remains that we are simply not resourced enough to handle the cash component,” he added.

However, despite losing a major chunk of cinema tourism from the subcontinent, there has been a 25% growth in the number of Indian outbound in Jan-July 2015 compared to previous years. Buoyed by this spurt Switzerland is, now, engaging with the Indian outbound with a new vigor. “There is a spurt in the number of Indian travelers compared to previous years, which is encouraging. We are concentrating on individual leisure travelers and promoting Switzerland as a year-round destination,” he shares with us.

“It is a completely different place in the winters than it is in the summer. So, we are focused on marketing new products to the clientele, putting great self-drive products which can be done all year-round. It works very well in India – the numbers surely are a positive indicator,” he adds.

When asked whether losing out a chunk of cinema business to other countries and its consequent impact would hurt their prospects in the long run, he said that Switzerland had plenty of new experiences and products waiting to be

HIGHLIGHTS

Cinema tourism not the top priority, anymore, because of changed dynamics and increased hard cash component.

Finds it difficult to compete with emerging destinations doling out huge cash incentives and rebates to the film fraternity.

Registered impressive growth in Indian outbound in January-July 2015, with 26 % growth in yearon-year compared to 2014.

Focus on individual leisure tourism to engage the high-end spending visitor.

Switzerland to center its tourism plank on solo and leisure travel with emphasis on specific destinations and activities centered around them.

explored and that it was a destination for all seasons. He also contests the fact that it is only Bollywood that has created the pull. “At a time when there was hardly any outbound tourism, we have had people coming to Switzerland. We, personally, have been here since the year 2000 – 16 years now, and, yes Bollywood has given us a very popular identity. But, we have to follow it up with destinations; what they see in movies must also be backed by us with high quality experience. It is then where we will get word-of-mouth popularity in the masses,” he reasons.

Explaining that the main overnight traffic, from India, was being generated by three important cities – almost 70% people stay in Zurich, Bonn and Lucerne - he asserts, “what we are doing is showcasing that Switzerland, for a repeat customer, has a lot more on offer.

There are always newer experience, and especially for Indian guests, because these are not known to them and this is where we want to concentrate.”

Mountain Raiway, Titlis

CLAUDIO ZEMP DIRECTOR, INDIA, SWITZERLAND TOURISM BOARD

Yes, Bollywood has given us a very popular identity. But, we have to follow it up with destinations; what they see in movies must also be backed by us with high quality experience.

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26

GLOBAL EXCHANGE

NewYork

Consistent innovation, emphasis on quality of life, gives it a perennial vibrancy both for locals as well as visitors

NY is an iconic destination. Its seemingly everlasting success in retaining its vibrancy as a thriving meltingpot is a lesson for many. The key to its success is firmly rooted in bettering quality of life in the city and a constant dose of new elements, says Christopher Heywood, Senior VP, Global Communications, NYC & Company.

By SHASHANK SHEKHAR

H

ow NY maintains its vibrancy could be a lesson for destinations seeking fame and footfall. It has been one of the top global tourist draw for many years.

Elements that create a tourism product are in plethora in this city; it has great museums, shopping, sightseeing elements and culture to rule the roost as a top draw.

Describing New York as a vibrant melting pot would not be far-fetched then?

Christopher Heywood certainly thinks so.

Describing that constant evolvement was key to NY’s success as a tourist destination, he describes NY as a unique city. He explains that “NY is one of the most unique cities of the world, it’s one of the cities that you rightly said has that unique vibrancy and diversity about it. It is city that is constantly evolving, it is in a state of constant flux. During my nine years stint I have had an exciting experience because the product, the destination is continuously changing. And the opportunities for

tourism, because of that, continues to grow every day. Whether it’s the creating new attraction, or enhancement to infrastructure or showcasing of neighbourhood – seamlessly weaved as a part of overall tourism product, we have it all,” he says. “Whether it’s the Broadway or the recently launched Whitney Museum of American Art, it is our unique ability to attract the best in terms of art, culture, music and heritage that makes us what we are,” he adds.

He shares that the focus was on creating an authentic experience for the visitors that meant integrating neighborhoods seamlessly in the overall tourism product of the city. “A lot of visitors come to a destination to seek authentic experiences and because of all the offerings, we are perfectly positioned as a city,” he reasons. He attributes NY’s success, as a destination, to a gamut of factors that have played in its favor.

Calling it one of the safest cities in the USA, he explains that “There has been a huge focus on tourism over prolonged years and the city, really, has embraced the industry. The success that NY is having would not have come about unless we enhanced the quality of life – it is the safest large city in USA, it’s become cleaner and greener,” he asserts.

Apart from these contributing factors, one can’t deny the massive influence wielded by TV and movies in lending an iconic image the city so enjoys today.

Christopher terms NY’s brand awareness at a 100% but points to the challenge of bridging the gap between perception and real experience. “As a brand we are very familiar. I would say that we have 100% brand awareness, people see it in films, pop culture and TV. So, our brand recall is immaculate. This works well in our favor too. But, challenge really is to bridge the gap between what people imagine and perceive New York to be and what it really is, and to operate on all cylinders all the time,” he shares.

Despite of being a corporate capital, its giant strides in creating ample open spaces, for varied activities, is, also, worthy of appreciation. A lot of stress, recently, is being laid on creating biking friendly roads. “The way the concept of biking around the city has developed over the recent years has been tremendous. The

HIGHLIGHTS

Constant evolvement of tourism elements, focus on enhancing the quality of life pivotal to NY’s perennial vibrancy – giving it global fame Despite being 3rd biggest market, no impact of china market crash and turbulence in economy on tourist footfall. NY plans to be in the Asian market for the long haul NY biggest beneficiary of Indian travelers heading to the USA. 12th biggest market in terms of revenue and numbers. City visited by an estimated 263,000 Indian travelers in 2014, 12% higher than the previous year and setting a new visitation record NY, today, boasts of an inventory of 130, 000 hotel rooms and clocking a 90% occupancy rate Focus, now, on marketing the destination as a 365 day gateway.

Stress on leisure travelers seeking lesser hustle-bustle and quitter experience of the city whole idea of having open spaces where people can gather and have activities has been very positively received” he tells us. Informing that, in a bid to constantly augment city’s infrastructure, some work in enhancing waterfront had also been

CHRISTOPHER HEYWOOD SENIOR VP, GLOBAL COMMUNICATIONS, NYC & COMPANY

Whether it’s the Broadway or the recently launched Whitney Museum of American Art, it is our unique ability to attract the best in terms of art, culture, music and heritage that makes us what we are.

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done. “We have seriously looked at water front development of the city – people tend to forget that NY is surrounded by water.

So, expansion of ferry service is also an important area for us. We look at every possible aspect that a city could have to boast of a healthy tourism profile and we try to achieve it,” he shares.

Now Christopher intends to push NY’s profile as a twelve months getaway. He asserts that NY is a 365 days destination.

“For people who prefer lesser crowd, lesscrowded beaches and hotel rooms and relatively quieter experience must visit NY in the winters. The hotels are lesser expensive and over-all there is a different look to the city,” he explains. “As we focus on marketing our city as a winter getaway, too, we certainly hope that we will see stronger Indian outbound in months to come,” he concludes.

27

OVERSEAS DESTINATIONS

By SHASHANK SHEKHAR

H

ow do you label a city like TelAviv? It is a difficult question to answer. It is dubbed as the ‘night-life capital’ of the world, a global-city, a SMART city and one of the greenest too. That’s not all. It is a hub of art and culture – so much so that Tel-Aviv boasts of the highest number of museums per capita population for any country!

It hosts eighteen of the thirty-five major centers of performing arts, in Israel, and is also home to distinct architectural styles – all of them quiet spectators to different periods of a long history of the city.

It is no surprise then that it is the fifth most visited city in the middle-east and African region and is clocking over a million annual visitors – no small feat for a city that expands only to 52 sq. kms.

Being located on the Mediterranean coast, it is a part of Tel-Aviv- Yafo municipality and divided into nine districts – oldest being Jaffer.

It is not only a tourist paradise, but also a SMART city in true sense which has used technology to create better amenities, faster transportation, cleaner and greener surroundings. It provides free Wi-Fi throughout the city and offers entrepreneurs and their startups the infrastructure they need to launch ventures and grow through a ‘SMART city startup’. “The city is home to a thriving ‘ digital travel’ ecosystem of entrepreneurs developing cutting-edge technologies in the field of travel,” says Isaac Mizrachi, Director (Tourism), Tel-Aviv . He lists out some of the important initiatives and solutions being put to use. “Fairfly, a digital initiative, is helping reduce travel costs; we are making information more accessible through YAPQ – an augmented reality application that brings to life points of interest. We are also providing a variety of opportunities for travelers to meet locals and take part in local sharing-economy experiences such as dining in locals’ homes with concepts like EatWith,” he shares with us. Tel-Aviv, also, has an exhaustive network of cycle tracks to make it one of the most bicycle-friendly city.

It remains no secret that Tel-Aviv is one of the most sought after destination in the middle-east and world over. With robust bilateral ties and growing awareness about Tel-Aviv as a multi-faceted destination, Indian outbound could well head for the next vacation to the ‘city that never sleeps’. Isaac welcomes more Indian travelers and suggests walking tour and exploring beaches to better understand the unique profile of the city.

“Indian travelers are welcome to experience what Tel-Aviv has to offer through a series of activities and tours all

ISAAC MIZRACHI DIRECTOR (TOURISM), TEL-AVIV

Indian travellers are welcome to experience what Tel Aviv has to offer through a series of activities and tours all around the city. To begin with, TelAviv Municipality offers five free walking tours that cover all the major sites. In addition, try something new like hiring a SUP at Hilton Beach and exploring the Mediterranean Sea and our beautiful shoreline, or go for a souvenir hunt at the narrow streets of Nevhe Zedek, Tel-Aviv’s first neighborhood.

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Tel-Aviv SMART solutions to create seamless tourist experiences Tel-Aviv’s ascent as a hot-spot tourism destination is a testimony of its staggering leap in technology, greener solutions and SMART city initiatives. It is creating a global pull that we could certainly take a leaf out of.

A panoramic view of the water front with planned market adjacent to it

HIGHLIGHTS

Tel-Aviv is fast emerging as one of the most sought after destinations in the Middle-East and African region. Emphasis on accentuating culture, cuisines and local heritage helping create a pull In 2014, 40,000 Indian tourists visited Israel in total. Due to the Israel’s ministry of tourism’s expected increase in the marketing budget targeting India, this number is expected to grow Digital initiatives like FairFly are helping visitors travel smart and save costs. Emphasis on the creation of digital travel ecosystem is helping entrepreneurs develop top-end technology to aid travel and tourism Extensive use of mobile apps that offer a simplified, cheaper, and efficient transportation offering have improved the quality of tourist experience - such as Moovit- a digital app that lets you to track taxis real-time and GETT transportation that informs travelers when the busses arrive at a certain stop It is one of the safest city in the entire region. Extensive use of technology to monitor streets, and internet connectivity make it most accessible and user-friendly in terms of infrastructure, policing and cleanliness EatWith: Is a concept that allows travelers to share local cuisines and take part in local sharingeconomy experiences such as dining in locals’ homes to better understand and appreciate local culture and ethos – all of it with real-time data through digital means enhancing travel experience

Seamless Wi-Fi connectivity allows access to information making travel a hassle-free experience

around the city. To begin with, Tel-Aviv Municipality offers five free walking tours that cover all the major sites. In addition, try something new like hiring a SUP at Hilton Beach and exploring the Mediterranean Sea and our beautiful shoreline; or go for a souvenir hunt at the narrow streets of Nevhe Zedek, Tel-Aviv’s first neighborhood,” he advises.

Isaac defines the city as a unique blend of old and new, which contains an ‘innovative startup’ climate with beautiful architectural gems making Tel-Aviv’s “White City” a UNESCO world heritage site. “The city enjoys 300 days of sunshine a year, and so tourists have many

opportunities to explore our beautiful beaches – 14 kms of beaches in total. It is a relatively young city – one of three resident is between the ages 18 to 35 – which contributes to the fact that it is truly a non-stop city,” he shares with us. He tells us that it is diverse elements of cuisines, shopping and fun, all put together seamlessly, that gives it the feel of a truly amazing destination. “The nightlife scene is very diverse and dynamic, foodies can enjoy a wide range of superb restaurants and shoppers can choose between street markets and high-end shopping boutiques. All in all, Tel-Aviv offers a dynamic urban holiday,” he says.

To sum up, Tel-Aviv has able to create a product and an image of a destination that is welcoming, warm and full of activities. They have achieved all this, in midst, of a hostile and perpetually disturbed neighborhood is what makes this achievement ever more commendable. India could, well, take a leaf out of Israel’s book and put to use technologies that provide faster, cleaner mode of transport; seek to enhance pedestrian and cycle-friendly tracks and above all use concepts like home-stays – effectively used by Tel-Aviv – to showcase its culture and heritage attracting many to its pristine shores.