Di sept web by Cross Section Interactive Private Limited

Volume 37 | Issue 9 | September, 2013 | Rs. 50

Date of Publication: 20/09/2013

RNI No. 28908/1976

Goa Yet to Settle the Airport Issue MOPA vs DABOLIM India needs to deliver on the promise of being ‘incredible’:

INDIA

Dr Harsh Varma, UNWTO

t r av e l a n d t o u r i s m c o n c e r n s u s a l l

Imphal

Beckons with its history and beauty

Humayun’s Tomb Facelift proves the success of publicprivate model

“We should make tourists feel safe”

SHARMAN JOSHI

FOCUS: UTTARAKHAND

Working Towards a World Class Infrastructure:

CM Bahuguna

THIS ISSUE

Contents Motivations

03 India needs to deliver on the promise of being ‘Incredible’: Harsh Varma, Director, Technical Cooperation & Services, UNWTO.

Cities & States

06 Searching for sustainable and long term solution for Uttarakhand. 07 Preventive measures necessary to ensure safety in near future: INTACH proposes a roadmap for a resurgent Uttarakhand.

Tourism In The States

08 Gujarat sets a new paradigm: How the Bachchan campaign increased the tourist inflow in the state.

Airlines & Airports

10 Mopa Vs Dabolim: Goa yet to settle the airport issue. 14 Flux dominates as Emirates emerged with largest international market share.

Infrastructure

18 Special zones is what tourism needs for holistic development: Anil Bhandari, Chairman, ABSmart Concepts and former CMD, ITDC.

Medical Tourism

19 Rupee falls makes medical care even more attractive.

Hotels & Resorts

20 HVS Report 2013: Operators Need More Space, Owners Need More Freedom

Issues

24 Adventure Tourism – Push in the wrong company?

Little Nuggets

26 The countryside connect at Norwood Green in Palampur 28 Battle of Imphal Tours bring new impetus to tourism in Manipur

Tourism is Everybody’s Business

31 “We should make tourists feel safe”: Sharman Joshi

Exclusive

Focus Uttarakhand: Working towards a worldclass infrastructure: Chief Minister Vijay Bahuguna

INDIA

t r av e l a n d t o u r i s m c o n c e r n s u s a l l

editor:

NAVIN BERRY navin@crosssectionmedia.com SAURABH SHUKLA saurabh@crosssectionmedia.com

business:

DESTINATION INDIA is printed and published by Navin Berry on behalf of Cross Section Media Pvt. Ltd. and printed at Anupam Art Printers. B-52, Naraina Industrial Area, Phase II, New Delhi 110 028. It is published from IIIrd Floor, Rajendra Bhawan, 210, Deen Dayal Upadhyay Marg, New Delhi – 110 002. Editor: Navin S Berry Tel: 011-43784444, 41001622. Fax: 011-41001627

EDITOR’S NOTE Tourism is a much flouted word, an activity that by itself will never have an image. Tourism will remain the sum total of many images - that would include airlines and airports, hotels and resorts, culture, cuisines, and so much more, to each his own, depending upon what the person’s interests are. Tourism is an activity that encompasses it all an experience, an undertaking. It is never going to be a fixed single image - that is perhaps what makes it as interesting as it is - each one of us has our own take on it, depending upon what we feel, the person that we are, and what we have experienced. In these pages, in our new avatar, we hope to explore some of these nuances on the composite destination, and kind of bring them alive to our readers. Tourism is also, dont we know this so well, about the quality of the infrastructure that helps us travel and discover places and events. It is here that India falters, and inspite of having such wondrous destinations within the destination, for us to discover, we are left frustrated and bewildered. Added to this, is the recent spate of incidents that have left some ugly scars in the Indian experience. However ugly, there is far too much that is memorable, unique and inviting - there is every reason for us to hope, and feel confident that the Indian experience will only go on improving and become truly world class. This is a new look Destination India, in a unique tabloid size. It was India’s first tourism magazine, if we do not consider those that were then being brought out by the Travel Agents Association of India and the federation of Hotel and Restaurant Associations of India, the two exclusive arms of the then tourism fraternity. That was in 1976. In between, the magazine enjoyed utmost respect and integrity in in its role as ‘caring for Indian tourism’. Somewhere down the line, the magazine lost its plot, a convenient way of looking back and discontinued regular publication. It has resumed publication over the last few months. This is the reincarnation issue, a special for you, in tabloid form. These are critical days for Indian tourism. We believe we need to reinvent the way we perceive tourism. It is not just about airlines and airports, a few select monuments and fancy hotels. Tourism is one big experience, hopefully a unique one, when a country like India is involved. An entire destination is what comes within the realm of experience – what is more, we should expect little in India to bend in favour of tourism. In fact, it is often going to be the other way around – tourism has to find its little niches and identify how it can grow and prosper within them. And there would be many – some very obvious ones like pilgrimage places, and others not so obvious, like a trade show or an event like F1, which the country is woefully failing to realize as an important USP. This issue is a small trailer, and we hope to build upon many of the areas that are here touched upon. Like the common voices that have expressed their concerns over the India branding. Or, our interview with a young and popular film star, Sharman Joshi, on what he believes is important for India to do to become a tourism super power. More seriously, the country remains glued at the recent run of events in Kedarnath. All over the country, we prayed when the prayers were back at the temple. There was a terrible loss of thousands of lives – we will never know how many. The state government has an enormous task ahead, to rebuild and yet make sure that somewhere a new and glorious chapter can begin for the people. And that the model of re-development can be easily emulated in other parts of the state, and also elsewhere in the Himalayan region. Linkages of the tourism product are essential for the country – these need to be recognized and then harnessed. We visit two very far away places like Palampur in Himachal Pradesh and Imphal in Manipur – we meet with resort owners and trails developer, young entrepreneurs who are discovering a new way around Incredible India.

Total pages 32

Editor navinsberry@gmail.com

QUOTE GALLERY “It is interesting to see Mumbai during the rain”

He loves returning to India because he loves its people. “And the food,” he adds. Gulab Jamun is a must when in India. “I have a sweet tooth,” he admits.

Jonty Rhodes, Cricketer, South Africa

Cape Town may be home, but Mumbai “feels like home,” he says. Since not too many cricket matches happen during the monsoon, his visit at this time has given him something he’s not accustomed to seeing. “It is interesting to see Mumbai during the rain.” The day of the scheduled launch of the book saw a downpour in Mumbai – the event saw a great turnout despite the weather – albeit to get up close and personal with Rhodes. While attendees grumbled about the amount of taxis off the street and difficulties driving there, Rhodes himself appeared thrilled to bits. “India only took notice of me when I fell over my shoe laces and caught Inzamam [Ul Haq],” he says, laughing. He adds that he loves returning to India because he loves its people. “And the food,” he adds. Gulab Jamun is a must when in India. “I have a sweet tooth,” he admits. He’s also enjoying the evolution of cricket here: “I played cricket at a time when there was no IPL. I love the way the game has changed. Besides that, it’s nice to see the love that the Indian public has for the game,” he says.

MOTIVATIONS

India Needs to Deliver on the Promise of being ‘Incredible’

This is why, in 2012, India dropped two places in the ranking of top tourism destinations to 41st place. It is interesting to note that Asian destinations such as China (3rd), Malaysia (9th), Hong Kong (13th), Thailand (15th), Singapore (22nd), Japan (33rd), Indonesia (35th) and Vietnam (40th ) outperformed India as did destinations from other regions such as Turkey (6th), Russian Federation (12th), Mexico (13th), Egypt (22nd), Croatia (26th) and South Africa (29th), to name a few. What are the main challenges faced by the Indian tourism industry? Infrastructure? New product development? Standards of services and facilities? Pricing? Marketing and promotion? Image? Brand India? If India has to occupy a firm place on the global tourism map, then a concerted effort has to be made on part of all the players – public and private sector alike – to meet these challenges. W he n m a rk e ting and promoting India, it is no longer sufficient to si mply e voke images of a dynamic and diverse natural, cultural, modern and historic India: it is time for the country to deliver on its promise of being a truly Incredible India.

fication also continues in generating markets: the share of top ten generating markets in the global tourism expenditures declined from 67% in 1990 to 46% today. This can be best summarised as: 40 years ago, tourists from a small number of countries travelled to a small Development of destinations are undergoing profound changes. Successful destinations no longer offer a single attraction number of countries; 20 but a wide range of services and facilities such as spas, casinos and shopping to broaden their appeal. years ago, tourists from a small number of countries travelled to or the f irst time in history, than USD 1000 billion tourism revenues. a large number of countries; and, today, international tourist arrivals In this context, approaches for the tourists from a large number of countries worldwide crossed the one development of destinations are undergoing travel to a large number of countries. And, billion mark in 2012. A notable profound changes. this trend will continue. achievement for an industry that Firstly, the actors are changing: it is no Finally, the technological advances and took its first steps as an activity reserved longer central governments or large hotel sustainability factors will have a decisive for Europe’s elite at the turn of the 20th chains or tour operators who occupy the role to play in destination development, century. However, it was only over the last centre-stage – the show has been joined by management, and marketing. In addition three decades that international tourism state governments, local authorities, transto direct electronic marketing and really took off on a mass scale. port operators, amusement parks, spas, distribution, destinations which adopt With worldwide receipts doubling every shopping malls, duty free shops and many policies and strategies for saving energy, 10 years, tourism has become a strategic others. This has led to decentralization and water and raw materials, renewable energy, sector for a wide range of countries: dedirect consumer approach. recycling of waste materials, will have a veloping countries for whom tourism can Secondly, while the first major tourism cutting edge over their competitors. offset the lack of raw materials and low boom, from the 60s to the 80s in Europe, At this historical moment for global manufacturing activity; emerging econowas based on a few simple product models tourism, India received 6.6 million intermies seeking to diversify their economic such as beach resorts, cultural sites and national tourists in 2012 which represented base and striving to achieve an equitable mountains, the tourism products of today a growth of 4.3% over 2011. While this regional development within the country; have become much more complex and ingrowth is similar to the world average, and, economically advanced countries for tegrated – successful destinations no longer it also reflects a relative slowdown from whom tourism can be a growth driver in offer a single attraction but a wide range of an impressive 9.2% growth rate in 2011. the face of de-industrialization and achievservices and facilities such as spas, casinos ing a relatively higher level of returns from and shopping to broaden their appeal. the tourism sector. Thirdly, with international and doThe challenge now for destinations mestic tourist arrivals set to equal the and services operators is to capture a share world’s population in less than five years, of the 1 billion international tourists and the consumer base and profile continue to approximately 5 billion domestic tourists, diversify. The number of tourism destinawith both segments estimated to grow at tions is still increasing. As an example, the about 4% per year over the coming 20 top 10 destinations in the world attracted years. The challenge is also to capture a 88% of international tourists in 1950, 60% share of the 300 million jobs and more in 1980 and only 44% in 2012. Diversi-

?DR. HARSH VERMA

What are the main challenges faced by the Indian tourism industry? Infrastructure? New product development? Standards of services and facilities? Pricing? Marketing and promotion? Image? Brand India?

Dr. Harsh Verma, Director, Technical Cooperation and Services, UNWTO

Impact of Falling Rupee on Indian Hospitality Industry

he bleak performance of the Indian rupee has been the cause of much concern, having depreciated by 20% against the US dollar since the start of January 2013. While the falling rupee is having a detrimental effect on the country’s economy, and industries across the board are reeling under the effect, the devaluation of the Indian rupee may actually present some opportunities for the Indian hospitality industry. India is emerging as a more affordMANAV THADANI able destination for international tourists MRICS Chairman – South Asia supported by the depreciating currency resulting in higher inbound travel and India is emerging as a more augmented foreign exchange earnings. affordable destination for July alone has seen close to 8% increase international tourists supported in Foreign Tourist Arrivals over the previby the depreciating currency ous year. resulting in higher inbound Furthermore, since overseas travel ceases travel and augmented foreign to be a viable option, we witness more and exchange earnings. more Indians planning their vacations within the country. As a result, domestic travel is already gaining momentum, particularly evident in leisure destinations such as Goa, Jaipur, Kerala and Agra. Considering that summer months are typically a lean period for the hotel industry in India, a rise in foreign and domestic tourism during this period promise of a much stronger second-half. Although the opportunities are significant, the challenges are too critical to be left unnoticed. The present scenario brings about much anguish for hotel developers with a marked

escalation in project costs to the tune of 4-5% on the back of rising cost of importing FF&E. Additionally, operating margins too are under pressure as imported food items, beverages and other raw materials become more expensive. Consequently, while budget hotels may be relatively less affected, those in the luxury segment will inevitably face the strongest blow. The depreciation and volatility of the rupee is also seen having an adverse effect on companies that have borrowings in foreign currency making debt servicing tougher. ?MANAV THADANI

The depreciation and volatility of the rupee is also seen having an adverse effect on companies that have borrowings in foreign currency making debt servicing tougher.

dventure, my love for travel and discovery made the A nd a ma ns a n ent icing holiday option for me. Many of the islands are still relatively untouched and there is an exquisite raw beauty about the place. I had heard a lot of the turquoise sea, the stunning sunsets, great diving, fresh seafood and the natural beauty of Andamans which is what precisely made me fall in love with this place and hence it became an instant holiday destination. – Gul Panag, actress

“Andamans is untouched and exquisitely raw beauty” Þ

Gul Panag on her trip to Andaman & Nicobar islands

Exclusive with VIJAY BAHUGUNA CM, UttarakhandE

CITIES & STATES: UTTARANCHAL

We are Working Towards Creating a World Class Infrastructure

Tourism’s role is questioned for unbridlled construction and conjestion

rom all of us in the country, please accept our deepest sympathies for the affected people. The nation is with you in this hour of challenge. How do you see the challenge for tourism, in particular? Our entire economy is tourism based. Tourism suffered immensely, and so did the people. It is critical for us to ensure that tourists feel safe and that indeed they are safe and secure when they visit the state. How bad was the hit on infrastructure? Kedarnath, as everybody knows, was severely affected and it will take some time to bring some normalcy back in the region. Only the roads and bridges to Badrinath snapped. There was no other damage in that region. The rest of the state was totally unaffected but misplaced perceptions had brought about a fall in arrivals to all parts of Uttarakhand. Perhaps some fear psychosis is at the bottom of this. How does the process of normalcy begin? What are the first steps that your government is taking? 11th of this month, the puja commenced at Kedarnath. Fortunately for us, divine intervention I would say, the temple was safe. The city parts remain under debris and the clearing will begin shortly. The morain has to be removed. There are damaged structures in the town and these will be cleared, now that the monsoons are behind us. As we clear these and start the rebuilding, we are seeking new guidelines and a new master plan to develop on a new slate. Uncontrolled tourist activity has been blamed to a large extent. What is your conclusion? For the yatras, we are working on a new pattern for registration of pilgrims, and controls will be put into place to regulate numbers. This would happen from the next season. And the big steps towards building an adequate transport infrastructure? 28 helidromes have been identified to be set up throughout the state. These will help build a new connectivity and also ensure safer evacuation in times of need. We have 200 identified zones where landslides are possible, and these hamper normal life and pose a threat to local people and also tourists. We have proposed tunnelling and the Home Ministry has extended total support to whatever decisions the experts recommend. Between the World Bank and the ADB, we have been assured of `2,000 crores in aid. There are always the environmentalists, who also have some valid considerations to make. How do you intend to move forward in this eternal debate? Our future endeavours are to ensure that we maintain the all important balance between development and environment. Only one of the two will not happen – both have to be kept in mind. We have obviously left it to the experts to guide us. A committee has been set up under the leadership of Dr. Pachauri, along with scientists from Wadia Institute and IIT Roorkee. They will look into aspects such as soil quality, modern technology and the quality of life that we must give to our people. We must be able to build a world class infrastructure in the state, as we come out of this tragedy. We believe that under the circumstances, ropeways may possibly be the best means of transport. We are working upon all possibilities. But what of the immediate concerns, that this fragile environment of the mountains, its vulnerability must not be compromised? While we wait for these recommendations, we have immediately put a stop to all constructions on all river beds in the state. The central government has waived off all taxes, and interest on loans on hotels in the affected areas. We have to alleviate hardships and make things as comfortable as we can under the circumstances. The administration is fully geared towards both rehabilitation and also improving the overall quality of life of our people. ?Interviewed by NAVIN S BERRY

“We have 200 identified zones where landslides are possible, and these hamper normal life and pose a threat to local people and also tourists. We have proposed tunnelling and the Home Ministry has extended total support to whatever decisions the experts recommend. Between the World Bank and the ADB, we have been assured of `2,000 crores in aid.” Uttarakhand Chief Minister Vijay Bahuguna

CITIES & STATES: UTTARANCHAL

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These images carry the grim story of recent times in the hills around Kedarnath, one of the holiest shrines amongst the Hindus. First, the devastation, and then a commendable rescue and now begins the time for hope and new beginnings. Prayers have commenced in the temple in record time.

CITIES & STATES: UTTARANCHAL

Searching for Sustainable and Long-term Solutions

Times of India Group recently organised an important discussion on ‘Resurgent Uttarakhand’. Here, we present excerpts from the deliberations…

Following the Himalayan catastrophe which the Dev Bhumi had to suffer this June, the state government is now searching for long-term solutions to strike the right balance between ecology and development.

Panelists at the TOI seminar in New Delhi on ‘Resurgent Uttarakhand’.

ven as authorities in Uttrakhand are grappling with the exercise of reconstructing the ruins left by flash floods in the month of June – a natural disaster which has only a few parallels elsewhere- the deluge of negative perceptions now has begun to cost it dearly. Almost in a manner that amounts adding salt to the wound. The tongues continue to wag whether the tragedy was man-made or wrath from above, but the immediate fallout has been on the traditional stronghold of the state – tourism. Uttrakhand Chief Minister Vijay Bahuguna expressed his displeasure in no uncertain terms in Delhi recently where he was participating in a seminar titled ‘Resurgent Uttrakhand.’ “So much hype was created around the calamity....people are scared of visiting even Dehradun, Rishikesh and Nainital, even though these places are as safe as Delhi. Our tourism is badly affected and we have suffered losses worth `12,000 crore.” Our five-point programme would Tourism, of course, is a strong include: maintaining traditional sub-plot in the case of Uttrakhand. ethos, bringing in place a But probably a much stronger elevery modern infrastructure at ment is that of dams and hydel strategic locations (like rope projects. “Hilly terrains being way at the noted tourist spots), drilled for creating power to add factor in the hazard vulnerability to the economic might of the state like 25 slide zones, keep the but this has made the landscape balance between ecology and extremely weak, resulting in the development and take the recent tragedy,” that has been the scientific inputs from outside major rallying point coming from V K Duggal, former Home the quarters of the environmenSecretary; Member of National talists in general. Hydel projects, Disaster Management Authority no doubt, are one of the strong pillars of Uttrakhand economy and according to Uttrakhand Jal Vidyut Nigam (UJVN), there are 45 hydropower projects in the It has also been called manstate presently. Bahuguna, howmade disaster for the sheer ever, refused to buy the argument mismanagement. The recent that hydel projects and dams have tragedy should be treated as a become the major curse for the wake-up call to find the ways to state. “A certain section would like balance the ecology in Himalaya us to believe that everything is Sunita Narain, Directorwrong with these dams. But let me General, Centre for Science and tell you, had Tehri dam not been Environment (CSE) there, western UP would have been washed away this time.” Union Cabinet Minister Jairam Ramesh who was also present on the occasion also strongly pointed at a possible case of ‘misplaced While Switzerland receives 8.5 environmentalism.’ “Bio-diversity million tourists every year, the has to be preserved. Hydel projects total footfall in Uttrakhand is have become prisoners of engineers over 28 million. And out of this, or environmentalists and both the foreign tourists are only close to camps are propagating fundamena million talism of their own kind. We need Dr. Pradipto Ghosh, former to take a pragmatic middle path Director of GB Pant Institute of approach,” he commented. The Himalayan Environment and problem about treading the middle Development path is that, you land up not satisfying any one side, he said.

Experts on their part maintain that the task of rebuilding Uttrakhand is mounthill wherein the focus has to ensure that there are proper checks and balances for its two pillars – hydel projects and tourism. “The recent tragedy in the hill state has also been called man-made disaster for the sheer mismanagement. It should be treated as a wake-up call to find the ways to balance the ecology in Himalaya,” said Sunita Narain, Director-General, Centre for Science and Environment (CSE). According to a noted environmentalist, glacier melting in the Himalayan region has emerged as a serious challenge. “Its no secret to anybody that the Himalaya is the most fragile region in the ecological sense. We have clear evidences to suggest that Uttrakhand glaciers are retreating every year. And when they retreat, they leave large amount of debris on the river bed. In fact, glaciers debris had contributed tremendously to the recent catastrophe. Due to debris, the foundation of the river beds become weak but you have still slowed construction there,” he commented. Gautam Sinha, another noted environmentalist who was present on the dais explained the crux of the problem in these words, “Uttrakhand has one of the densest industrial belts in the country. You can’t wish away industry, and tourists will come. We need to monitor the travel pattern of tourists. Tremendous pollution is happening in the state with a staggering 50 million kg of addition of human defecation and urine in the river bodies,” he underlined. According to Professor N P Todaria, Member, Forest Advisory Committee, enough damage has already been done to the ecology in the state. “We have no other option but to have control over the construction on the riverbeds. In Yamunotri, a disaster is waiting to happen. In Nainital, construction has been done on the old slide areas. What could it result in is anybody’s guess,” he pointed out. Dr. Pradipto Ghosh, former Director of GB Pant Institute of Himalayan Environment and Development presented an interesting insight directly pointing out at the tremendous pressure, which excessive tourists inflow is bringing on to the Himalayan state. “In terms of geographical attributes, both Uttrakhand and Switzerland are somewhat similar especially in terms of total area and the size of the population. But while Switzerland receives 8.5 million tourists every year, the total footfall in Uttrakhand is over 28 million. And out of this, foreign tourists are only close to a million,” he said. Dr. Ghosh's presentation compared Switzerland and Uttarakhand and what came out strongly was that the latter still had ample opportunity for development, both in terms of infrastructure as well as in creating its own energy sources. Implied was the need to do it right, scientifically and in keeping with ecology. Majority of the tourists coming to Uttrakhand are for pilgrim purposes preferring cheap accommodation. And tremendous rise in the demand for accommodation resulted in torrential unsafe construction, even on the riverbeds. “Uttrakhand has been a victim of unregulated faith. Some holy places in India have been manufactured. Without knocking faith and putting additional pressure on the existing resources, we need to devise ways to regulate the traffic,” he opined. V K Duggal, former home secretary who is a member of National Disaster Management Authority (NDMA), credited for successfully spearheading the rescue operations in Uttrakhand is now helping the state in drawing long-term rehabilitation plan and he divulged a five-point redevelopment programme which the government would be implementing. “Our five-point programme would include: maintaining traditional ethos, bringing in place a very modern infrastructure at strategic locations (like rope way at the noted tourist spots), factor in the hazard vulnerability like 25 slide zones, keep the balance between ecology and development and take the scientific inputs from outside,” he outlined the future course of action for the rehabilitation. CM Bahugana too emphasized that threadbare discussions are needed for a long-term approach and domain experts need to provide Uttarakhand Chief Minister Vijay Bahuguna their inputs in ensuring that right kind of strategies are put in place for striking a balance between the ecology and development. “There are a series of pressing issues we have to deal with. For instance, we have identified 200 locations prone to the landslide. We need to find a permanent solution. Can we opt for tunneling? Experts need to tell us,” Bahuguna said. He also emphasized that the infrastructure connecting to tourist spots would need a major facelift. “Most of our religious spots are at high altitude. And they are connected with one way path which pose a serious problem when people get stranded because of climatic reasons. We should be allowed to use cable cars.” But giving face-lift to the infrastructure apart, the broader issue is: how to deal with the influx of tourists? Will it be regulated? Bahuguna hinted that this is a point which the government is considering. “In the wake of the recent disaster, we are considering the issue as to what extent we should be allowing the volume of tourists at different locations which should not be putting tremendous pressure on the existing resources,” Bahuguna said giving enough hints that tourism in the ‘Dev Bhumi’ would probably not be the same as before. ?RITWIK SINHA

“So much hype was created around the calamity....people are scared of visiting even Dehradun, Rishikesh and Nainital even though these places are as safe as Delhi. Our tourism is badly affected and we have suffered losses worth `12,000 crore.”

CITIES & STATES: UTTARANCHAL

Preventive Measures Necessary to Ensure Safety in Near Future INTACH proposes a roadmap for a resurgent Uttarakhand

Short-term measure Revive Pithoragarh airstrip to open up hitherto inaccessible areas such as Munsiyari. Here, the guidelines of sustainable tourism and eco-friendly buildings must be announced and strictly implemented.

Form a high powered Urban Arts and Landscapes Commission to prevent uglification of hill sides and landscapes. Scenic landscapes may be identified and no vitiation of visual aspects to be permitted.

In the Nainital Lake there is a real possibility of the massive hills on the north-east, sliding into the lake.

everal suggestions have poured in to implement sensible recommendations offered in the past. Based on experience of several projects in Uttarakhand, INTACH, whose survey team was located in the ‘eye of the storm’ at Gangotri –Harsil– Maneri - Uttarkashi during 14–22 June 2013’ has some pertinent observations and recommendations to offer : Since 1980 approximately 45,000 hectares of forest land has been diverted in Uttarkhand, 68% of which was after formation of the new state in the year 1999. The maximum diversion was for construction of roads followed by hydel projects and transmission lines. It is not surprising that areas worst affected by floods – Chamoli, Rudraprayag, Uttarkashi and Pitthoragarh are the areas where most forest area was diverted for non-forest purposes. Re-forestation with native species - that not only thrive well in this region but also aid soil and water conservation - should be part of the policy on conservation of forest and environment. Expanding settlements in the upper reaches places immense pressure on the fragile mountains and cannot continue limitlessly. Uttarakhand must have a population distribution policy with bulk of population located in the terai plains [which have urbanizable lands]. The following suite of measures is available to the government for constraining urbanization in the mid and upper hills : Restricting growth of towns in mid-altitudes and construction above tree line except in exceptional cases Building rules of the plains cannot be allowed in hill terrain. Building heights and FARs need to be scaled down, In this context the State also needs to revisit the policy of allowing 3 – 5 storeyed construction in the hills and in fact a comprehensive review of building byelaws and town planning rules for areas above 300 mamsl Building of private townships should not be permitted above 300 mamsl [this is the height at which the foothills begin]. Township building in the hills is possible under current rules. This is leading to gouging out of hillsides using JCB excavators and to the use of tubewells to support such ‘townships’ at higher altitudes. These are deep bores and serve to dry out soil moisture and springs downstream with consequent ill-effect on vegetation and slope stability. Tubewells should not be permitted above 1000m amsl and then only in valley floors and plains. The anaemic Town Planning Department needs to be adequately staffed, capacitated and empowered, rather than restrained from acting. An urban arts and landscapes commission must be set up to prevent ‘uglification’ of pristine hillsides and conservation of scenic landscapes. Lateral [east-west] all-weather roads need to be constructed south of the Gangotri glacier and at mid-altitude to enable lateral movement between various north-south axes. In the recent disaster, movement to the unaffected Yamunotri axis would have enabled greater survival and faster relief. Damage due to torrential flow in rivers cannot be contained by shallow abutments. Roads need to be built away from the highest flood levels of rivers. Outer bends of rivers, which receive the

maximum impact of stream driven boulders, should be identified for strengthening. Between the road and river building construction should be allowed only in exceptional cases. Spatial planning must be extended to the village level to prevent haphazard growth. Several old walking tracks have been abandoned in favour of roads. Disused pathways are still available and with engineering inputs these can make for an alternative evacuation network. At other times these can constitute trekking routes bringing economic contribution to inaccessible hamlets. As an example the disused Almora – Kathgodam route comes readily to mind. As per EIA notification of the MoEF [2009], all State Highway Projects especially above 1,000m amsl and all projects located at altitude of 1,000m amsl and above are required to undergo EIAs but this is more observed in the breach. Strategic environment assessment [including biodiversity assessment and geological assessment] on a valley-wise basis must precede further development. This will prevent unsustainable projects rather than promote contrived environment management plans for pushing through damaging projects. Nipping undesirable projects in the bud. It is necessary to evaluate the current status of dams to assess the loss of storage capacity, in the wake of current crisis one should not shy away from decommissioning a few projects to prevent future disasters. Prevention is always better than cure. Strip development is rampant in the state choking roads and the UP Roadside Act is never enforced. There is a need to amend the existing Act in the light of present day traffic volumes and enforce the same rigourously. ‘Prachin’ shrines need to be restored to the original state of majestic isolation to regain their sanctity. This requires ugly service towns, resembling flies on a honey pot, be relocated in planned fashion a goodly distance away. In recent years devotees zeal is ‘modernizing’ these ancient sites with garish colours and bathroom tiles diluting their antiquity. This opportunity should be taken to reverse such ‘zeal’ and restore the aura of antiquity to these ancient temples. Given the state’s topography, geology and climate, hazard zones are widespread and many disasters are ripening. Preventive measures are necessary if damages and losses are not to continue to retard the state economy. For example, in the Nainital Lake there is a real possibility of the massive hills on the north-east sliding into the lake. The large ex-servicemen population in the state, a disciplined human resource, should not go waste. These men could be encouraged to retain their unit hierarchies, trained in disaster management, rescue and medical relief. Capacities would be enhanced yearly and a small financial incentive added. The volunteer force would thus be present on the scene of action with shortest reaction time and dependence on inducted forces can be reduced. This paper was prepared for INTACH by Manu Bhatnagar, Pr. Director (Natural Heritage Division), INTACH

Prepare and implement a plan for roadside tourism on all national and state highways [a la Haryana] – standards must be higher than Haryana. Add an additional tourism product by way of water recreation on Upper Ganga Canal at Roorkee. Transport mess of Hardwar and Rishikesh must be streamlined by way of internal transport planning and byepasses. Alternate access to Doon valley may be added by developing the Timli Pass road. Highlight Sikh tourism circuit {Hemkunt Sahib, Gobindghat, Reetha Sahib, Nanak Matha}. Implement betterment plans for Bhimtal lake, Nainital lake, Naukuchiyatal Lake and Sattal Lake. Several old walking trails in the hills have been abandoned in favour of road transport. These trails exist, are immune to disaster – they need to be improved [width, paved in some stretches, with steps added at steep gradients] with en route shelters and conveniences facilitating homestays in hamlets and would serve as trekking routes as well as disaster evacuation network.

Long Term Recommendations Upgrade railway line and train services from Rudrapur to Khatima to increase accessibility of east UK. Implement the UP Roadside Act [amended to accommodate high traffic conditions] to prevent clogging of roads. Prepare Conservation and Tourism Plans for several less known and unknown lakes [for eg. at Chorgalia and Harish Tal]. Creating a civilian tourism area at Lansdowne [with improved road access to Rishikesh and Ranikhet].

TOURISM IN THE STATES

Gujarat Sets a New Paradigm From 2006 to 2009, the annual growth rate of tourists in Gujarat was 9.5%. Post the Bachhan campaign, the annual growth rate has been a spectacular 16% for the last 3 years. This is clearly visible in the tourist numbers rise in the ‘Khusboo Gujarat Ki’ Advertisement Campaign resulting in 84 lakh tourists in the last 3 years alone.

G “We have currently received a grant from Planning Commission for developing Beach tourism across the 16 beaches that have been identified. We are also trying to promote adventure sports and Golf tourism.” Vipul Mitra Secretary, Gujarat Tourism

Origin Within Gujarat Other Indian States NRI Foreigner Total Segment Business Destinations Spiritual Destinations Leisure Destinations

rowth of tourism in Gujarat has been a recent phenomenon. The year 2006 was celebrated as the Tourism Year for Gujarat, which showed the commitment and trust of the state government. There was a steady increase in the tourist numbers from then onwards. But the real magic happened after the Bachhan campaign. Overnight, Gujarat was the talk of the entire country. The campaign was a smash hit. And from there on, there was no looking back. From 2006 to 2009, the annual growth rate of tourists in Gujarat was 9.5%. Post the Bachhan campaign, the annual growth rate has been a spectacular 16% for the last 3 years. This is clearly visible in the tourist numbers rise in the ‘Khusboo Gujarat Ki’ Advertisement Campaign resulting in 84 lakh tourists in the last 3 years alone. This impact is also visible across the state in terms of new rooms added in last two years. Showcasing 16% overall rise in hotel infrastructure (stay based infrastructure); from which Resorts category have risen at 53% (from 3,000 rooms in resorts to 4,600 rooms); star category hotel rooms have risen at 32% (from 41,000 rooms in star category rooms to 55,000 rooms) and budgeted accommodations have risen at 8% (from 58,000 rooms to 62,000 rooms). It is also estimated that there is an additional requirement of 1.1 lakh rooms in the next 5 years. Fairs and festivals which were always a part of Gujarati culture began being celebrated in a

2009-10 No 130.77 36.24 2.03 1.07 170.11 2009-10 No 73.25 53.04 4.35

2010-11 % 77 21 1 1 100

% 43 31 3

No 150.62 43.55 2.57 1.39 198.12 2010-11 No 91.16 56.59 5.64

Showcasing 16% overall rise in hotel infrastructure (stay based infrastructure); from which Resorts category have risen at 53% (from 3,000 rooms in resorts to 4,600 rooms); star category hotel rooms have risen at 32% (from 41,000 rooms in star category rooms to 55,000 rooms) and budgeted accommodations have risen at 8% (from 58,000 rooms to 62,000 rooms). It is also estimated that there is an additional requirement of 1.1 lakh rooms in the next 5 years.

2011-12 % 76 22 1 1 100

No 171.76 47.28 2.85 1.75 223.64

% 46 29 3

2011-12 No 101.58 65.37 6.26

2012-13 % 77 21 1 1 100

% 45 29 3

No 195.36 53.56 3.16 2.01 254.09 2012-13 No 119.39 72.29 9.76

% 77 21 1 1 100

% 47 28 4

bigger way. The International Kite festival, which attracts international kitists, was taken to various other cities this year. Saputara Monsoon Festival is a newly started event at Saputara for a month, and has been a huge hit. Rann Utsav, which was earlier celebrated for just 15 days, is now an almost 2 month event with around 400 tents, and is a much sought after destination. The International Bird Watchers’ conference, which started two years ago, has garnered much attention amongst its niche. Other festivals like Navratri, Tarnetar fair, etc are being celebrated in a bigger and better way each year. There has been a steady increase in various segments of tourists. All the destinations which were featured in the Bachhan ads have received tremendous increase in tourists, mainly, Gir, Dwarka, Somnath, Ambaji and Saputara. As a result, investors have shown interest in setting up hotels and other amenities at these places to meet the demand of the ever growing tourists. The government has taken various initiatives to further improve the tourism scenario in Gujarat. The highlights include: • Increased Government spending. • `1,500 Cr on the tourism sector in the 12th Five Year Plan period. • `654 Cr for improving the tourism infrastructure. • `1,200 Cr for development of Coastal Tourism funded by Planning Commission. • Establishment of Gujarat Tourism Venture Fund – `450 Cr. • Establishment of GUJTOP, a JV company between GoG and IL&FS to promote private investments. “We are trying to strengthen our tourist portfolio. We have currently received a grant from the Planning Commission for developing beach tourism across the 16 beaches that have been identified. We are also trying to promote adventure sports and golf tourism. Existing as well as new and upcoming destinations have been identified, and after determining their potential, various development projects have been undertaken. Dwarka, Somnath, Ambaji, Kabirvad, Saputara, Nalsarovar, Shamlaji, Pavagadh etc are some places where development works are being undertaken. Some are beautification of existing destinations, while others are new attractions. There are also plans to develop various tourist amenities along the highway in Gujarat. Another project, ‘Rama trail’, will give a taste of the journey that Lord Rama, Sita and Laxman undertook as part of their 14-year exile, and locations like Sita Van, Ram Sarovar, Unai and Shabari Dham in Gujarat would be developed. We are also exploring opportunites in Caravan Tourism and Paragliding festival.” ?In conversation with NAVIN S BERRY

TOURISM IN THE STATES

Domestic Tourism Grows by Over 19% in 2012

ccording to the latest statistics released by the Ministry of Tourism, the number of domestic tourist visits (DTVs) to states/UTs registered an increase of 19.87 per cent during 2012 over 2011 as compared to an increase of 15.6 per cent in 2011 over 2010. The number of domestic tourist visits to the states/ UTs was 1036 million during 2012, as compared to 865 million in 2011 and 748 million in 2010. The top ten states in terms of number of visits were Andhra Pradesh (206.8), Tamil Nadu (184.1), Uttar Pradesh (168.4),Karnataka

( 9 4 .1 ) , M a h a r a s h t r a (66.3), Madhya Pradesh (53.2), Rajasthan (28.6), Uttarakhand (26.8), Gujarat (24.4) and West Bengal (22.7). The contribution of these states was about 84.5 per cent to the total number of domestic tourist visits during 2012. Andhra Pradesh has occupied the first rank in terms of DTVs in 2012, whereas Tamil Nadu, which was at third rank in 2011, has moved to the second rank. Uttar Pradesh which was at first rank in 2011 has moved down to third place.

Tourists at Agra Fort. Uttar Pradesh which was at first rank in 2011 has moved down to third place. Andhra Pradesh tops the list, in top 10 states in terms of domestic tourist arrivals.

MP Woos AirAsiaIndia

D Þ

Lamp Lighting Ceremony. From (L-R) Mr Krishnendu Narayan Choudhury, the Hon’ble Minister for Tourism, Government of West Bengal, Mr Subhash Goyal, President IATO & Chairman, STIC Travels Pvt. Ltd and Mr P P Khanna, Vice President, Association of Domestic Tour Operators (ADTOI).

Tourism Promotion for Durga Puja Carnival, West Bengal

he Department of Tourism, Government of West Bengal in association with Confederation of Indian Industry (CII) organized a Tourism promotion road show on 31st August and 1st September, 2013 at Ashok Hotel, New Delhi. Heralding the onset of Durga Puja, the 2-day event emphasized on Goddess’ autumnal homecoming to the earth,

Department of Tourism is undertaking intensive efforts to boost the sector and organizing special road shows for promotion of tourism across the country. Krishnendu Narayan Choudhury, Minister-in Charge, Tourism, Government of West Bengal

euphoric abandon, family reunions and lavish Bengali fare. The initiative envisaged to fillip the ongoing intensive Tourism promotion and publicity campaign by West Bengal Tourism, projecting the state as a unique travel destination, lending sharp focus on the upcoming Durga Puja carnival that epitomises the festive flavour and ethos of the State. Focus of the event was to: • Incentivize investment in tourism. • Promote Chalo Chalen Bengal campaign during Sharadotsav 2013. • Display the handloom/handicrafts heritage of the State. • Embody the rare blend of vibrant imagery, imagination, colour and style the celebrated treasure trove of craftsperson from West Bengal. • Convey the essence of cultural heritage of the state in a unique cultural soiree that blended tradition with modernity through music & dance trails.

ANDHRA INVITES PRIVATE INVESTMENT TO DEVELOP NEW DESTINATION

o upgrade tourism infrastructure in the state, Andhra Pradesh has expedited its efforts to draw private investment through public private partnership (PPP). The state tourism department has successfully been doing roadshows in the major metros of the country. As a result, Andhra Pradesh is set to witness investments of over `1,000 crore through (PPP) mode in the tourism sector. The initiative is supported by the Union Ministry of Tourism which has already sanctioned `221 crore. This apart, the state is also expecting investment to the tune of `58 crore for new projects. This involves building coastal corridors along the Vizag-Bheemunipatnam sea front and Vizag-Vizianagaram-Srikakulam Regional circuit with `175 crore investment, and eight new beach properties in Srikakulam, Vizianagaram, East Godavari, West Godavari, Prakasam and Nellore districts. Besides upgrading infrastructure, the state tourism department is promoting awareness about its attractive tourist locations by marketing and promotional activities within the state and at the national level. A sum of around `40 crore is likely to be spent on marketing.

u e t o c on s i s t e nt pu rsua nce of t he M a d hy a Pr a de sh Tourism, Madhya Pradesh government is trying hard to woo AirIndiaAsia to make the state as its hub. Recently, Mittu Chanda lia, CEO, AirAsiaIndia met the state chief minister Shivraj Singh Chouhan in this regard. The meeting was also attended by state chief secretary R Parsuram, additional chief secretary PK Dash and managing director of MP State Tourism Development Corporation, Raghavendra Singh. According to media reports, Mittu Chandalia told Chouhan that AirAsia, which is going to launch domestic services in India along with Tata and Bhatia group very soon, wants to develop their base in Madhya Pradesh. AirAsia wants to operate 20 domestic flights, to begin with, from Bhopal, Indore and Gwalior.

Karnataka to set up Tourism Promotion Board

ea lising the fact that Tourism could emerge as one of the economic drivers of the state after IT, the Karnataka Government has decided to constitute a Committee under the chairmanship of a former top official of software major Infosys, to advise and suggest developments needed in the field of tourism. Moreover, the government has initiated action to establish Karnataka Tourism Infrastructure Ltd a nd K a rnat a k a Tou rism Promotion Board, while the draft Karnataka Tourism Trade Facilitation Act has been prepared to ensure safety of tourists and also overall development of tourism. Mea nwhile, K a rnata k a Tourism has submitted a proposal to the Union Tourism Ministr y to rela x CR Z regulations so as to enable the State, which has a coastline of 320 km, out of which 42 beaches and 11 islands have been recognised as tourist destinations, to develop tourist facilities at a distance of 50-80 metres from the high-tide line.

RAJASTHAN TO GIVE LUXURY TRAINS FACELIFTS

ajasthan Tourism is all set to refurbish its luxury trains – the Palace on Wheels and the Rajasthan Royal on Wheels – on an estimated investment of around `1.5 crores. While a crore of rupee will be spent on ‘Palace on Wheels’, the ‘Royal Rajasthan on Wheels’ will see the remaining investment. The refurbishment is being done on the feedback of guests to enhance their experience. The programme envisages the new look of the dining car, the bar and the lounge and offering modern conveniences like superior communication and entertainment. Moreover, the spa and health club will also receive major upgrades. “We have compiled feedback and are now acting on it to give the incredible Palace on Wheels a refurbishment that should raise the richly royal looks to still greater heights. We have extensively researched princely lifestyles of the royals and the Palace on Wheels will sport a new heritage look with the finest in luxury trappings, reflecting the exclusive lifestyle of maharajas,” Vinod Ajmera, Managing Director of Rajasthan Tourism Development Corporation (RTDC), said.

AIRLINES AND AIPORTS

MOPA vs DABOLIM

Goa Yet to Settle the Airport Issue Being debated over since years, some feel this would bring in a positive change, whereas others find it as unnecessary. We take you through the whole story.

ven though it is over fifteen years since the idea of a new international airport at Mopa in Pernem taluka germinated, the state continues to mope over Mopa, primarily because of opposition from various quarters. Taking into consideration the warming national political scene, the continued protests and opposition, we may not be wrong to say even if the project eventually does go ahead, the first aircraft will take off no sooner than at least twelve years from now. The raging debate continues without a solution for over a decade, even as the baton is now passed to fresh new voices. With the issue locked in a stalemate the various Congress and BJP governments that came to power dragged their feet over the issue, though some intent is visible from the current Manohar Parrikar-led government. While on the surface it may seem normal for both the protagonists and antagonists to shout hoarse, the fact of the matter remains that tourism in south Goa faces the ignominy of deterioration, if the proposed airport becomes a reality and Dabolim is scrapped.

Ground Reality

Those against Mopa airport argue that Dabolim is wellequipped to handle the air traffic needs of Goa for many years to come. They point to the report, tabled by the then Chairman of Site Selection Committee for Goa’s second airport and Executive Director AAI, Mr R C Khurana, which highlighted that Mopa was unsafe and inadequate for an airport. Another opinion is that farmers and Dhangars, a backward community stand to lose their land and will be displaced. In fact the farmers insist that it is fertile land, with lakhs of trees, with several springs that could disappear once the project takes off. The project is initiated by people with vested interest, perhaps also from Maharashtra who stand to gain at Goa’s cost. However those in favour argue that the entire region will get an economic boost and south Goa too would

benefit from it. Pernem taluka that has not seen much progress will be developed and this will create job opportunity for the skilled and unskilled workforce. Tourism too will get further boost in Goa, with the new international airport.

Choice Defies Logic

Situated at the northern-most tip of Goa, the new airport defies general rational logic of choice. To a layman, location-wise there could not be a worse place than Mopa, as it would serve best basically Pernem, besides adjoining talukas like Bardez and Bicholim in Goa and largely Maharashtra and Karnataka. For many north Goans, even those living in and around Panjim, Dabolim still is a better choice.

Benefits Other States

The biggest gainer in the entire controversy would not even be north Goa, as it is currently projected. It would be tourism-aspiring regions of Maharashtra that would inadvertently enjoy the cream. By choosing Mopa, Goa would unwittingly unleash competition from its northern neighbours, Maharashtra and Karnataka which also have similar topographical advantages. The region, specially tourism potential regions of north Konkan belt stretching from Sindhudurg to Ratnagiri, have been waiting in expectancy for some time now. These regions would undoubtedly reap benefits, without really making initial investment. In fact, Sindhudurg region, has been time and again promoted as the next big thing among tourism circles, with places like Vengurla, Malvan, Sindhudurg and Ratnagiri that are wellknown for its pristine unexplored beaches. And the region may get further boost at the expense of Goa, that would inadvertently provide them the platform. Analysts believe that a strong lobby from Maharashtra, possibly builders’ lobby may also be behind the scenes adding fuel to fire, to ensure that Mopa airport becomes a reality, keeping their interest to the fore.

Ball Set Rolling

While activists on either side are leaving no stone unturned to ensure the victory of their cause, the government has already set the ball rolling with the announcement of its “in principle” decision to initiate the `2,500-crore master plan for Mopa airport that aims to be completed by 2015. This is also among reasons why voices of those opposing Mopa are now getting louder. For they are aware the move would spell doom for one region at the cost of the hitherto underdeveloped region.

NGOs to the Fore

While politicians continue to dominate the debate, their efforts have been bolstered by various NGOs, who have taken up the cause and opposing camps now stand face to face, each trying to outdo the other. While South Goa has Goa for Dabolim only, spearheaded by Fr Ermitto Rebello, the north Goa NGO, People for Mopa Airport is led by Pernem Sarpanch and Convenor Devendra Prabhudessai. However, there are also other organizations from Mopa itself that are against the move for the airport there, including the Mopa Airport-Affected Farmers’ Committee. All NGOs have been routinely garnering public support by organising meetings at various villages all over the state.

Other Locations

Apprehensive voices have also questioned the logic in selecting Mopa, which lies to the northern-most tip of Goa. If at all the need for an alternative airport is genuinely felt, many believe a centrally-located place like Ponda could be a better choice and not Mopa, which lies at the northernmost tip of the state. The committee that chose Mopa, had narrowed down to three locations, Betul, Assagao and Mopa, but the current place was chosen because it provided opportunity for a Greenfield airport. (Continued on page 12)

AIRLINES AND AIPORTS

AGAINST MOPA

We do not need another airport till 2035: Fr Rebello

he Convenor of Goans for Dabolim Airport, Fr Ermitto Rebello is adamant that their agitation will go on till Mopa is officially scrapped and land returned to tenants and owners. He reiterated the fact that Dabolim was sufficient and there is no need for another airport in Goa. “Where is the need for another airport? We are well equipped to handle air traffic for over the next two decades, till 2035. Besides, there is not enough traffic at the moment. Last year, the total air traffic was 35 lakhs while the capacity is up to 95 lakhs, he asserted. If the need arises subsequently strategies can be adopted, that is if tourism sustains till then, he cautioned. “Today majority of the tourists coming in are poor tourists, who are coming for the wrong reasons.” If the three authorities, Authority of India (AAI), Navy and the government of Goa work in tandem, all problems can be sorted out, he said, requesting the Navy to provide land for the airport expansion. “Navy has to do this service and sacrifice for Goa and Goans and give about five lakh square metres of the ten lakh vacant land they currently hold, that also has a golf course, football field and other sports grounds,” he said. People say we want the Navy to leave, but that is not true. We do not want the Navy to leave Dabolim, if it is in the interest of Goa and national security, Fr Rebello clarified.

He also requested the Goa government to provide land for facilities like parking and other services and cited example of the then Congress government which denotified the survey no 91/1, 81/1. “We smell a rat and big one. I would say a big rotten elephant, we smell a scam.” There are no solid reasons for the sudden change. “Ex-chief minister Digambar Kamat, PDA chairman, Mauvin Godinho and Revenue Minister Jose Philip Souza were present for the meeting on 4th January 2011. For reasons best known to them they decided to de-notify this land, when it had reached an advanced stage of acquirement. And in spite of the pleading of AAI, till date no alternate arrangements have been made.” People who are voicing their support and calling themselves pro-Mopa activists are mainly those who are landlords, who have vested interest. People who will suffer are the farmers, the Dhangars, a backward community, hill dwellers, other OBC who have not been taken into confidence and will be forced to move out, he ascertained. It is pertinent to note that a number of politician, their relatives and friends have bought vast areas of land at Mopa. The landlords too want the Mopa airport to come up. In fact the Tenancy Act of 1976, which has been implemented in Tiswadi, Bardez and south, including Salcete, has not been implemented here. Why should law be different for different people and different region, he questioned.

‘WE WILL FIGHT TILL THE END’ “I will fight till the very end to ensure that Dabolim airport is retained, even if I have to forfeit my party ticket,” the Curtorim MLA and Congress spokesperson Aleixo Reginaldo Lourenco emphasised when asked on the Mopa imbroglio. I speak in my personal capacity and will also influence my party to maintain their stand on Mopa airport issue, he added. Even though many seem to be in favour of the new airport, we have constantly opposed “I will fight till it, right from the beginning. Not because we the very end to ensure that Dabolim don’t want Mopa airport to come up, but airport is retained, because we want Dabolim to be fully utilised, even if I have to the south Goa MLA pointed out. forfeit my party Our ancestors have ensured that Dabolim ticket.” was equidistance from both ends. Later the Aleixo Reginaldo Lourenco Curtorim MLA and Congress Navy took over the land. We have no problem, spokesperson but we request them to give us some land to further improve Dabolim airport, Lourenco said. Talking about the development in Pernem, he retorted that land sharks will come in and destroy the uniqueness and identity of Goan. “They will bring five stars, seven stars, casinos, dance bars and ruin Goa.” “Even people from Calangute in north Goa do not want Mopa airport, as they are apprehensive about the quality of tourists coming in,” Lourenco revealed. “Has anybody checked how much of land has been given away and at what cost. Perhaps our senior politicians just gave away the land at throwaway prices, without even giving it a thought.”

FOR MOPA

‘Entire state will benefit’

“W

e have not demanded comes up at Mopa. Besides, maintenance, Mopa airport, it has been repair, and operations (MRO) facilities too suggested by the expert can come up in a big manner. committee, who has deBesides, Mopa is for the next generascribed Pernem as an ideal location and tion. The project will take at least another rejected the other two shortlisted sites of ten years to take off, he asserted. Betul and Assagoa,” the Convenor, People People say Sindhudurg region will defor Mopa Airport, Davendra Prabhudes- velop. But should we thwart our progress sai opined. for the sake of others progress, he quesMopa airport will be a Greenfield tioned. In fact, we can use cargo facilities airport and we agree that to use the airport to our Permen will undoubtedly advantage. Besides there is be the primary benefino tourism culture in that ciary, but explained that region and cannot match the entire state too would the facilities of Goa, he benefit. About 7,000 jobs quipped. will be created and evTwo better than erybody will get a share, one he said. A frequent flier within the The proposed expresscountry and around the way will solve the distance world, Dr William Britto, problem to various parts of is of the opinion that a new Goa. You can then reach airport at Mopa would be a from the northern tip of good idea. Pernem to the southern tip “It’s a good idea to of Canacona within one have two airports. How“It’s a good and a half hour. Presently, ever Dabolim must not be idea to have two too it takes the same time sacrificed or abandoned airports. However from Dabolim airport to at any cost for securing Dabolim must not Canacona, he said the success of the new airbe sacrificed or abandoned at any He f e lt t h a t h i g h port,” he cautioned. cost for securing spending tourists will Having two airports is the success of the come, once an exclusive certainly better than havnew airport.” the international airport ing only one, he said. Davendra Prabhudessai Convenor, People for Mopa Airport

‘WE SHOULD NOT DELAY ANY MORE’ The Goa Shiv Sena chief, Ramesh Naik said since Navy is controlling the airport flight restrictions apply on arrival and departures timings. Besides flights are not allowed to park the aircraft after 6 pm, he said citing example that his party supremo Udham Thackeray, had to fly out with his chartered flight be“I feel we should cause of these restrictions. not delay the project, which will During February 2000, the then Chief have over 100 lakh Minister Francisco Sardhinha wrote to the square metres area. then Civil Aviation Minister Sharad Yadav We should go ahead for hastening the Mopa airport project, citing keeping the interest immediate needs, he said showing a copy of of Goa in mind.” the letter. Ramesh Naik Goa Shiv Sena Chief People say that tourist will spoil Goa, but I feel its the government’s duty to control the nuisance created by tourists by being strict and insisting that rules be adhered. In developed countries, you cannot even throw a tissue paper out of the car. Here they even throw bottles, he pointed out. We are saying that Sindhudurg will benefit from Mopa airport, but their Chipi airport project is moving at a speedy pace and even the runway is ready. I know it is a domestic airport now, but there can be a demand for making it international in future and if that happens, it will be bad for Goa, the Shiv Sena chief said. I feel we should not delay the project, which will have over 100 lakh square metres area. We should go ahead keeping the interest of Goa in mind, he reiterated.

AIRLINES AND AIPORTS

New world class terminal next month

“There will undoubtedly be a better flow of passengers.” M Suresh Airport Director

he Airport Authority of India (AAI) plans to give Goans and people travelling to and from Goa, Diwali gift of a new world-class Dabolim Airport terminal building, which will be commissioned next month. The Airport Director M Suresh, in an interview said the passengers stand to gain as the new terminal, with an area of 63,913 square metres, is about four times larger than the current terminal. “There will undoubtedly be a better flow of passengers”, he pointed out. The per hour passenger capacity during peak hours in the new terminal will increase from the current 750 per hour to 2,750 per hour, he disclosed, adding that a new car parking facility accommodating 450 private vehicles too is being set up. Refusing politely to take questions on Mopa, due to its controversial nature, the Director said the new terminal will also have a new passenger boarding bridge (PBB), which will benefit passengers during inclement weather.

However, to an indirect question he revealed that there were some airports in the country including those in the north eastern regions and at Belgaum that were not viable, but were still continuing. He also emphasised that the facilities at Dabolim were sufficient till 2020. Suresh also agreed that having two airports may also be a good idea, specially in terms of any state emergency. The attractively-designed glass and steel span structure, built at the cost of `388.53 crore, was initiated a little over three years ago, on 16th May 2010. The new terminal will have modern aerobridges for boarding, multiple escalators and elevators, a barrier-free environment and a strong security system. The number of counters for checking in luggage and frisking booths, besides security, customs and immigration kiosks have been doubled to avoid long queues. Tenders have also been floated for a food court, entertainment zones and shopping area.

(Continued from page 10)

Two Airports not Viable South Goa contributes the majority of taxes collected from the tourism industry. Even if the proposed expressway linking Pernem to Canacona is built it would take at least `1,000 crores and would take minimum 10 years to build, taking into consideration the tedious land acquisition process. On 19th July 2001 the Hoteliers Association of South Goa had presented a memorandum, signed by 34 hotels in South Goa to Manohar Parrikar, who was also the Chief Minister during that period, highlighting the risks to their businesses from the proposed development of Mopa Airport and how it would adversely affect the tourism in South Goa. Two airports cannot operate in the same state within 100 kms, because of the central government rules and because it would not be financially viable. Similar practice was observed in the case of Cochin, Bengaluru and Hyderabad airports. It is not viable to have one airport as a domestic airport and another as an International airport, in two places hours away from one another as many passengers come by a foreign airline and want to transfer to domestic flights to visit other places in India. Tourist, especially foreign tourist will not travel more than 100 kms to South Goa hotels, even if a four-lane expressway was built. Thousands would lose their livelihood in south, as some hotels may be forced to close down. When Delhi or Mumbai airport experienced phenomenal growth, they did not shift the airport, they built another terminal or expanded it. The impression that Dabolim will be saturated in 25 years is untrue, as it is nowhere near capacity. According to international experts in the field of civil aviation, Mopa international airport will not be financially viable even with the private participation and that new airport will require at least 12 million departing passengers and 24 million total traffic. The estimated passenger traffic is pegged at four million by 2022. A majority of Goans working in the Gulf countries are from South Goa. Dabolim airport supporters and other anti-Mopa voices have even suggested an opinion poll to find solution to the vexed problem. Some politicians had even suggested a smaller airport at Karwar to solve the problem of South Goa.

Though the idea of appeasement would be wonderful for the politicians to make either party happy, the truth looms large that the two airport theory may not be economically viable, simply because Goa does not have that kind of air traffic. Even the proposal of using one as domestic and the other international may prove unfeasible in the long run. The state government may not be economically overburdened as the Mopa airport is proposed to be built on build-own-operate-transfer (BOOT) method, with plans of floating global tenders. Supporters of Dabolim feel that once more land is released by the Navy, the current airport could serve Goa for generations.

Ecological Threat

The ecological implications of the project too needs to be considered and experts have warned against tilting the balance of nature. Mopa village is located in the heart of Western Ghats which has been declared as a bio diversity hotspot. Lak hs of trees and over 36 springs will disappear once the project is initiated. Various envi-

ronmentalists have also cautioned the government on this issue. In fact the People’s Convention on Western Ghats had decided to oppose the proposed airport along the 1,600-km chain of the hill range, if they are set up at the cost of wetlands and paddy fields.

Maharashtra Airport

While the talk of areas right from Sindhudurg to Ratnagiri benefiting from the airport at Mopa gain ground, it may be interesting to note that Maharashtra government has already commenced its work on their airport at Chipi in Sindhudurg, which is barely about 70 km away from Mopa. The IRB Infrastructure Development Corporation Ltd has initiated the work of Parule-Chipi airport project, which began on 18th February 2013 and is proposed to be ready by August 2014. The firm is building the airport on a build, operate and transfer (BOT) basis for the Maharashtra Industrial Development Corporation (MIDC). With two airports in its vicinity the region may develop further. ?DINESH PATEL

July 2013 GO NOW

AIRLINES AND AIPORTS

CAPA’s Indian Aviation Outlook FY14M

Transparent Policy Framework is a Must to Support Ambitious Plans CAPA is a leading consulting company in aviation and recently came out with its report on the aviation sector in India for the year 2014. CAPA’s India Aviation Outlook Report for FY2013/14 presents a comprehensive 320-page sector analysis, with detailed operating, financial and traffic data sets for each key airline and airport operator. That Indian aviation has great underlying potential is beyond doubt. But the market continues to under-perform because ambitious reforms, intended to have a positive and profound impact on the sector, continue to be introduced piecemeal, with no transparent policy or regulatory framework.

ajor policy decisions, with good intentions, are frequently implemented in an ad hoc manner on the basis of limited consultation, without consideration for the overall structural dynamics of the industry and without sufficient clarity on the detail. And at times there has been hesitation which has led to steps being re-traced. This has ultimately led to political controversies, disillusioned investors and industry losses. The 2013/14 financial year has started in this vein. CAPA strongly welcomed the long overdue decision to allow foreign airline investment, which has the potential to be game-changing for Indian aviation. But the manner of its execution has left a lot to be desired. From confusion about whether the policy applied only to incumbent carriers or start-ups as well, to the controversy about the allocation of bilateral entitlements, the end result sends the wrong signal to prospective investors. Such major decisions have been taken in the absence of a policy framework and without the institutional capabilities to assess and understand their implications. India has made no serious attempt to address the industry’s core structural challenges, particularly the fiscal and cost environment, which is particularly hostile at present as a result of stubbornly high fuel prices compounded by a sharp depreciation of the Rupee and a punitive ad valorem sales tax. In spite of this, we expect modest growth of 4-6% to return to the domestic market in FY14, while international traffic could expand at 10-12%.

India has made no serious attempt to address the industry’s core structural challenges, particularly the fiscal and cost environment...

Domestic Outlook FY2014: Passenger numbers expected to pass 60 million again

Domestic traffic is expected to expand by 4-6% in FY2014, with most of the growth to occur in the second half of the year. Starting from Q3 the traditional festival and holiday traffic is expected to be supplemented by increased passenger movements driven by state elections in November, and then by general elections some time prior to May 2014. AirAsia’s likely entry in the second half of this financial

year could also provide some further growth although the airline will still be relatively small even by the end of the forecast period. These factors could potentially push growth above 6% subject to market conditions from Q3 onwards. We expect that by the end of FY14 domestic traffic will match or slightly exceed the previous high water mark of just over 60 million annual domestic passengers reported in FY12. International Outlook FY2014: Buoyant traffic could grow at 10-12%

International traffic growth is expected to be more buoyant than domestic and could grow by 10-12% as Indian carriers expand and as more bilateral entitlements are expected to be granted to foreign carriers. As is the case for domestic traffic, the second half of the year is expected to account for the majority of the growth. Capacity expansion during the year ahead is likely to be around 10%, largely driven by LCCs. Jet is already profitable on international operations and is expected to further strengthen its performance in the coming year as a result of its increasing cooperation with Etihad. IndiGo and SpiceJet are both modestly in the black on overseas routes. However Air India continues to incur huge losses on international services due to poor alignment between its fleet structure and route network, and weak commercial capability, particularly in offshore markets. As a result international operations account for 80% of its losses. The 787s will help but the structural issues run deep and this will impact the carrier’s overall turnaround prospects. Private airlines are expecting profits of USD250-300+ million in FY2014 - while Air India loses USD750-800 million CAPA estimates that India’s private airlines could post combined profits of USD250-300 million or more in FY14 with a projected breakdown as follows, based on CAPA Research estimates: • GoAir: USD8-10 million profit; • IndiGo: USD100-120 million profit; • Jet Airways: USD125+ million profit; • SpiceJet: USD25-30 million profit. Jet’s return to profitability is largely being driven by a significant reduction in interest costs as a result of a USD600 million reduction in high interest Rupee debt and access to lower interest rates through offshore financing

options that have become available in light of the Etihad investment. In addition the carrier is expected to see an increase in net earnings from further strengthening of its international operations although the real benefits will be seen from FY15 SpiceJet’s and GoAir’s profitability is subject to them being able to control their losses during the weaker second and fourth quarters which have let them down in the past. In the case of SpiceJet, now that it is a relatively large airline, these swings between strong and weak quarters can have a major impact on financials as the losses in low season are so large. However, the overall industry result is expected remain in the red, dragged down by a projected USD750-800 million loss at Air India. These projections have been developed on the expectation: • that oil prices will remain stubbornly high with average Brent Crude rates for the year assumed to be USD100110/barrel; • that the Rupee is not expected to provide any cushion with average rates for the year projected to remain in the range of INR54-55 to the US Dollar; • and that pricing discipline will be maintained – since Jan-13 the industry appears to have lost the discipline that was present during the previous nine months. If the sector was to experience an extended period of discounting similar to that seen in Q4FY13, and as we are seeing again in Q2FY14, profitability would deteriorate well below the projected levels. During low seasons there appears to be an absence of price rationality. Key issues for the sector in this financial year include:

USD1.3 billion in foreign airline investment is imminent Indian carriers are expected to see an infusion of USD1.3 billion (possibly higher as a result of financial assistance other than equity) in the next few months as a result of foreign airline investment transactions. This estimate of funds includes USD700-750 million of investment in equity in up to three Indian airlines, including Jet Airways, and a further USD550-600 million in additional financial assistance such as access to foreign exchange loans at lower interest rates and sale-and-leaseback income from assets such as aircraft and airport slots. The estimated total financial package on offer to Jet Airways for example is around USD900 million, consisting of:

AIRLINES AND AIPORTS • USD379 million in equity in the airline; • USD150 million in equity in Jet’s frequent flyer programme; • USD70 million from the sale-and-leaseback of three pairs of Heathrow airport slots; • USD300 million debt financing. ...we expect two more foreign airline investment deals this year in cases where there is a clear strategic benefit... However, the industry continues to be afflicted by losses, a huge debt burden and the need for massive capital requirements to fund forward business plans. Set against a backdrop of key structural challenges in the sector, particularly in relation to a high tax and high cost environment with increasing regulatory intervention, this may subdue investor interest. Nevertheless we expect two more foreign airline investment deals this year in cases where there is a clear strategic benefit. Foreign airlines will be watching with the interest the outcome of the Jet Airways-Etihad deal which has recently become embroiled in controversy and which will impact investor sentiment about other potential transactions. Key points include: The expansion of the India-Abu Dhabi bilateral agreement coincided with the announcement of the Jet-Etihad partnership which has resulted in major political challenges (and potentially legal challenges) and has made the approval process for the deal more complex. The original Shareholders’ Agreement has been questioned by the Securities & Exchange Board of India (SEBI) and the Foreign Investment Promotion Board. Objections raised relate to concerns that the agreement granted almost de facto control to Etihad for a 24% stake. Revisions have already been made to the Shareholders’ Agreement and further watering down is expected as a result of further agencies such as the Central Vigilance Commission and the tax authorities taking interest in the case. The final agreement may be quite different from the intent in the original document and as a result Etihad may seek a revised valuation. Despite these challenges we expect that the transaction will eventually be concluded by Aug-13. However, any future deals will be subject to increased scrutiny, and in particular the critical strategic issues of management control and market access will come under sharper focus. This is likely to be the case for both unlisted as well as listed airlines. If the deal does not proceed, this will be a particularly negative outcome for Jet Airways which has been completely focused on this transaction and has developed its new business plan around it. Bilateral agreement amendments will need to allow up to 200,000 additional seats by 2015 Aside from the recent expansion of the India-Abu Dhabi bilateral agreement, India is estimated to be faced with requests from foreign governments for an additional 175,000-200,000 weekly seat entitlements over the next 2-3 years. Most of the requests are from Middle East markets such as the UAE (Emirates, flyDubai, Air Arabia), Qatar (Qatar Airways) and Turkey (Turkish Airlines), as well as Hong Kong and Singapore. The emirates of the UAE currently have entitlements of over 90,000 weekly seats which will increase to approximately 130,000 in a phased manner over the next three years as a result of the new India-Abu Dhabi agreement. However the UAE (primarily Dubai and Shrajah) is expected to seek an additional 45,000-70,000 weekly seats by 2016. Importantly the UAE has been able to negotiate the largest number of points of call in India. CAPA expects that the Indian government will continue to liberalise bilaterals in the coming months unless it faces legal challenges in light of the India-Abu Dhabi agreement. Airline Start-ups: AirAsia India is likely to start up this year AirAsia India is likely to receive its security clearances and No Objection Certificate in the next few weeks, which will enable it to apply for an Air Operator’s Certificate to launch the airline. We expect that the airline could commence services by late October 2013. A further 1-2 cross-border joint ventures involving foreign LCCs could be announced in the next 12 months. The 5 Year/20 Aircraft rule has been a failure and is likely to be abbreviated The current regulation requiring Indian carriers to have completed 5 years of domestic operations and have a fleet size of 20 aircraft before being permitted to launch international services has served only to discriminate against Indian carriers since the same requirement does not apply to foreign airlines flying into the country. We expect that at the very least the 5 year and 20 aircraft thresholds will be revised downwards in the next few weeks to less than 2 years and 10 aircraft, and we would not be surprised if the rule is abolished entirely in due course.

GoAir would be the beneficiary of a rule change as it is the only airline which does not currently qualify... Among the incumbents, GoAir would be the beneficiary of a rule change as it is the only airline which does not currently qualify. However, the second beneficiary would be AirAsia India which has made no secret of its desire to operate international services from India. The removal of the restriction would also pave the way for the launch of an Indian long haul LCC in the next two years, with AirAsia being a possible candidate. The A380 Operating ban will be lifted this year With the Indian government seemingly comfortable with granting additional traffic rights to certain markets, the restrictions on A380 operations relative to a 747-800 (which would be permitted under most bilateral agreement) because of a concern about excess capacity becomes difficult to defend. As a result we expect this ban to be lifted and a number of bilateral agreements will be updated to permit the aircraft. Emirates and Lufthansa are likely to introduce the A380 on services to India from the Winter 2013/14 schedule. Jet Airways’ aggressive fleet orders, with SpiceJet also in negotiations Although not officially announced, Jet Airways has reportedly signed an order for 50 737 MAX aircraft. Meanwhile discussions with Airbus for an A320neo order for Jet Konnect are expected to conclude shortly, possibly after the deal with Etihad is approved and formalised. SpiceJet is currently in negotiations with both Boeing and Airbus for 30-40 narrow body aircraft of the reengined MAX and neo types and a decision is expected shortly. SpiceJet’s current narrow body fleet is all Boeing however there is a possibility, which is under consideration, of the carrier switching manufacturers and transitioning to A320s and eventually A320neos. Air India’s intention to lease 19 A320s and 11 turboprops has been pending for the last two years, and these plans are unlikely to be finalised. Air India’s challenge is insurmountable, as billions of dollars are squandered, with no strategy Despite the best intentions of Air India’s management and recent improvements in performance, the carrier has an almost insurmountable challenge, especially in an environment which is set to become increasingly competitive with a strengthened Jet Airways, rapid liberalisation of bilaterals and new market entrants such as AirAsia. In this scenario the government will be faced with having to drip feed billions of dollars over the next few years to finance deficits with no meaningful improvement in the carrier’s situation. Meanwhile Air India itself will be politically hamstrung with regard to taking the difficult restructuring decisions required to develop a competitive cost base. As a result Air India has no future under continued government control which should bring privatisation back on to the agenda, with a possible decision on the divestment schedule in 2014 triggered by the impact of foreign airline investment transactions. In the meantime the carrier requires a new turnaround plan and financial restructuring programme that takes into account the changes in the market since the last plan was prepared two years ago. A viable and long-term solution for Air India is imperative not only for the airline itself but for the industry at large because as long as it struggles under government ownership it will continue to drive distortions in policy. Kingfisher Airlines’ hopes of returning to the skies are remote Since the airline suspended operations in Oct-12 the promoters have continued to express their intention to relaunch the airline, and we understand that discussions with prospective investors remain in progress even till today. However, given the state of the company’s finances and operations after such an extended grounding, a resumption of services is highly unlikely. Regulatory Intervention on commercial issues continues to bamboozle the market As CAPA had earlier highlighted, the announcement by the DGCA in late April 2013 that unbundling of fares would be permitted was not the reform it was made out to be. There was never any specific restriction in the Civil Aviation Regulations; however the practice of charging for preferred seating or baggage for example had been “discouraged” by email communication from the Ministry. And just as informally some airlines had found innovative ways to get around the issue. ...the government’s indecisiveness about the extent of the regulatory easing has only created greater confusion... Unfortunately, instead of ushering in a new environment where airlines could finally have the freedom to emulate global practice with respect to ancillaries, the gov-

ernment’s indecisiveness about the extent of the regulatory easing has only created greater confusion. Within weeks of the initial announcement the government advised airlines that they could collect preferred seating fees on no more than 25% of the seats on an aircraft. The DGCA also appears to be unsure as to what role it should play with respect to regulation of airfares, as it oscillates between concern for the consumer and for airline viability rather than leaving market forces to determine the outcome. In the last 12 months we have seen the DGCA intervene when fares were seen to be too high during the peak festival season, and then just a couple of months later it objected to discounting by airlines because it was felt that the fares were unsustainably low. A recent plan reportedly under consideration would require airlines to disclose the number of seats sold in each fare bucket and for this data to be made public. Mandatory disclosure and publication of such commercially sensitive information would be an unprecedented example of excessive regulatory intervention. We hope that this is simply a case of media speculation and that the plan does not proceed further. A new Civil Aviation Authority is still not operational The establishment of the new Indian Civil Aviation Authority has been approved by Cabinet but is unlikely to be operational this financial year. Intended to provide a regulatory agency with greater flexibility and autonomy, it faces a fundamental challenge in that it will absorb a weak DGCA which has been starved of resources since 2009 and is struggling to meet its regulatory oversight objectives because of a lack of skilled resources and expertise. Civil Aviation Policy: the draft is decades old and will remain a draft The long-awaited comprehensive new civil aviation policy has remained in draft format for the better part of two decades It is unlikely to be announced in a formal and structured manner in FY14. There will be significant activity in the airports sector in the coming year A significant recent development is the decision by the government to invite private international operators to bid for operations and management contracts for Chennai and Kolkata airports (and eventually 15 profitable airports over subsequent years), which are currently under the stateowned Airports Authority of India (AAI). This process is expected to be fast-tracked over the next two months. This is a major strategic decision and should only be taken in the context of a clear long term vision for the future of the AAI. The RFQ for the proposed greenfield airport at Mopa in Goa is expected to be issued in Aug-13, while tenders for the much-delayed Navi Mumbai airport should follow in Q3. The government has also announced plans to issue tenders for the construction of 50 low cost airports to improve regional connectivity and this process may be accelerated in the coming months. In recognition of the increasing shift of the market to low cost, CAPA expects that Delhi may become the first airport in India to open a dedicated LCC terminal within the next two years. There is a requirement for USD1.2 billion of funding for the airport sector in this current fiscal year. The AAI is scheduled to issue USD200 million of tax-free bonds, while the private operators are considering raising capital either through IPOs or securing strategic investors. The final decision will depend upon market conditions. Ground handling decision due from the Supreme Court in Sep-2013 The ground handling policy which the Indian government first wanted to introduce in 2007, and which would restrict carriers from self-handling, was legally challenged by the airlines arguing that they would face higher costs and a loss of control over critical customer service functions. The matter has been in dispute for several years and while settlement talks are apparently on between the parties, the opportunity for an out-of-court settlement remains unlikely. The Supreme Court has postponed the date to hand down a final decision until 3-Sep-2013. We expect consolidation in the sector in FY14 on both the passenger and cargo sides of the business. MRO’s tragic history of dithering and taxation drives jobs offshore Despite the growing potential of the market, especially as the fleet ages, India continues to represent a challenging environment for 3rd party MROs, with high taxation, expensive infrastructure, a shortage of skills and strong competition from neighbouring markets such as Sri Lanka and the UAE. This is brought into sharp focus when an India-based MRO reportedly plans to establish a facility in Dubai to service Indian clients. There are likely to be one or two acquisitions in the sector this year.

INFRASTRUCTURE UPDATE

Integrated transport mechanism on anvil in Kochi

ochi is the only city in the country with a wide network of water bodies linking various places to the city centre and now, Kochi Metro Rail Ltd (KMRL) is going a step further to modernize the water transport network. KMRL wants to facilitate an apt feeder system for the Metro Rail to co-ordinate the transport activities of not only Kochi but also the other panchayats and municipalities in the neighbouring area. The authorities are planning to set up an Urban Metropolitan Transport Authority (UMTA), an umbrella body, which will help in coordinating transport in all the areas. As per the available statistics, 12 of the 16 local bodies, including the Kochi Corporation have licensed ferry services and operate 30 ferry services. Experts say the development of Kochi’s transport network should be done after considering all the issues in a broader perspective. Kochi Corporation Town Planning Committee chairman K J Sohan has been quoted as saying that, NH 47 Kochi Bypass starts from Aroor, where there is a railway station and also

the national waterway touches it. Therefore, Aroor should be developed into a terminal point to connect all three transport networks- railways, waterways, and roadways. Other good news is coming up of a common ticketing system in Kochi which will allow commuters to take any public transport system with the same ticket. So land up in Kochi and opt for any three modes of transport-the Metro Rail, waterways or roadways using the same card. Vyttila Hub will be the first of its kind where all these facilities will be available. Though it will connect Thevara to Kakkanad as in the complete plan but first services will be start between Vyttila hub and Kakkanad from September, according to authorities. The boats can accommodate 50 passengers and 10 bikes at a time. Initially, one boat service will be launched from Vyttila to Kakkanad, and on the basis of public response more boats will be set on sail. Commuters can save a lot of time and trouble as the 9-km journey from Kakkanad to Vyttila now takes nearly an hour due to the traffic congestion.

New Luxury bus service eases the travel from Bangalore to Mysore

OVER `5,000 CRORE RECOMMENDED FOR AMRITSAR-DELHIKOLKATA CORRIDOR A

fter examining the feasibility of setting up the AmritsarDelhi-Kolkata corridor, the inter ministerial group (IMG) has recommended commitment of `5,749 crore as budgetary support stretching over 15 years for the seven integrated manufacturing clusters to be set up along the Amritsar-Delhi-Kolkata corridor. As per the panel, the amount is supposed to be used for interest funding, development of trunk infrastructure and share in equity and primary funding for setting up the designated agency to handle the project on the lines of the Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC). “The government seems to thinking in terms of creating these corridors as vehicles of growth,” said Arvind Mahajan, partner and head, infrastructure and government services, KPMG India. This corridor will be associated to the Eastern Dedicated Freight Corridor and will extent to 20 cities in the seven states of Punjab, Haryana, Uttar Pradesh, Uttarakhand, Bihar, Jharkand and West Bengal. This will influence the existing highway on this route and the internal water system being developed along national waterway-1. The development of Amritsar-Delhi-Kolkata corridor will take place on a stretch of 150 – 200 km on either side of Eastern Dedicated Freight Corridor in different phases. “In the first phase, every state could promote at least one cluster of about 10 sq. km. area to be called Integrated Manufacturing Cluster (IMC), in which 40% area would be earmarked permanently for manufacturing and processing activities,” the ministerial group said in its report. Setting up of an apex monitoring authority has also been suggested, under the chairmanship of the commerce and industry minister. This has been suggested to for the overall guidance, planning and approvals, setting up of deadlines for execution and supervising thereof. The panel said that the corridor will use both the Public Private Partnership approach (PPP) and the non-PPP approach. The non-PPP trunk infrastructure will be developed by the special purpose vehicle (SPV) or the agency vested with the task of setting up IMCs.

SRTC has launched a new lu x u r y bu s s er v ic e t h at connects Mysore with Bengaluru International Airport. The air bus came into operation on 14th August and the bus service is scheduled to make the journey two times a day. The air bus is equipped with hi tech luxury features like GPS locators, and every seat has TV screens capable of streaming over 70 live channels and Video on Demand using wi-fi. GPS locators would provide realtime information on expected time of arrival and passengers could easily access the information on flight arrivals and departures. Before this service came into action, passengers travelling alone were forced to take a cab costing somewhere around `3000 to `4000. If they opted for public transport, they had to change at least two vehicles to reach either the airport or Mysore. Keeping this in mind, the fly bus was introduced.

HRDA to develop River Musi as a tourist spot

he river Musi in Hyderabad will soon be converted into a recreational spot and will also attract tourists as Hyderabad Metropolitan Development Authority (HMDA) is pla n n ing to c onser ve a nd develop the 9 km stretch of Musi riverfront from Himayatsagar and Osmansagar to Bapughat. HMDA is already in action and wants to appoint consultants for preparing a feasibility study which will focus on how to restore Musi and develop it into a recreational spot. The objective is to create green spaces along the riverfront while maintaining optimum water sheets and minimizing damage caused due to floods. The feasibility study will cover issues like restoration of river bank protection wall, construction of new bridges across Musi, identif ication of tourist sports, setting up of kiosks, boating, parking lots, toilets and drinking water facilities.

NEW GOLF COURSE IN THE MAKING AT GOA

new golf course is planned at Tiracol in Goa. A hotel group has purchased the entire Tiracol area which comprises about 12.5 hectares of land and has got the master plan of the golf course approved from the state government. They have also obtained environmental clearance, construction license and clearance from the Pollution Control Board. But they are still waiting for some people to surrender their tenancy rights to the company. 90% of the land is tenanted land and 70 % of people have not surrendered their tenancy rights, but things seem to be positive after a meeting of local residents and developers of golf course. After the meeting, the locals were happy with the assurance by the company that their tenancy rights will be protected.

INFRASTRUCTURE UPDATE

Transit Oriented Development for Hyderabad

n action plan has been prepared for integrated development of Greater Hyderabad as a world class city on the directions of Chief Minister N Kiran Kumar Reddy. The elevated Hyderabad metro rail project is not just another metro project but has multi dimensional goals for the development of urban areas in all ways possible. The plan is to integrate public transport, create employment, improve greenery, protect and conserve lakes. The integrated plan will be ready soon. The project aims to decongest three corridors which have high traffic with a 72-km elevated rail which is now under construction. The model is called Transit + and integrates Metro R ail with main rail st at ions, bu s depots, Multi

Modal Transport System and dedicated feeder buses to reduce road congestion and pollution levels. Other aspect that the project has considered while aiming at infrastructural development is the social agenda of the metro project. For achieving this, setting up of bike stations, designing skywalks and sidewalks, establishing quality public space near Metro stations for promoting family bonding and providing recreation have also become part of the project. Chief Secretary PK Mohanty has also given orders to the Greater Hyderabad Municipal Corporation (GHMC) to protect and conserve 200 lakes in the city by fencing them. At a joint workshop conducted by the World Bank and HMR on ‘land value capture for Transit Oriented Development (TOD)’ in the Metro Rail Bhavan Barjor, E. Mehta, World Bank country head appreciated the innovative features of the TOD project. He said the multi-modal integration and the urban redesign approach of the

Hyderabad model looked very promising. Greater Hyderabad has a very high population, so the plans for its development have to be prepared with focus on transitoriented development (TOD) which will require departments like GHMC, Hyderabad Metropolitan Development Authority,

An action plan has been prepared for integrated development of Greater Hyderabad as a world class city on the directions of chief minister N Kiran Kumar Reddy.

Hyderabad Metropolitan Water Supply and Sewerage Board (HMWS&SB), Hyderabad Metro Rail, irrigation department, railways and AP Industrial Infrastructure Corporation (APIIC) to come together. Money will not be a problem as the state government will fund all the schemes and projects that focus on integrated growth. The government orders, permissions and funding for TOD would be done without any problem. The World Bank has also promised all the support to the Hyderabad Metro Rail (HMR) project and the plans to transform the capital into an eco-friendly global city.

AHMEDABAD CITY ENSURE PLANNING BEFORE GROWTH Japan’s 1,500 cr aid to IITHyderabad

hmedabad has experienced tremendous growth in population that rose up to 6.4 million at present from 4.5 million people in 2001, but it has still been able to keep up its development pace. The city’s municipal area officially has expanded from 186 sq. km to the current 466 sq. km which helped to avoid congestion in the city. Eighty nine percent of Ahmedabad’s 2002 Development Plan (DP) has already been implemented, with the rest under implementation. This includes zoning regulations, road networks, open spaces, and infrastructure. Of the total budget of 2,434 crore, 1,845 crore has been spent. There are five clear rings and 17 radial roads of reasonable size, starting from the city centres and going straight out to the periphery. Because of such good network, there is low congestion. The government is planning to develop small townships, expanding at the periphery. Further, they plan to provide good-quality transport combination of metro, Bus Rapid Transit System (BRTS) and city bus service. Ahmedabad’s BRTS service started with

9km and now it is 61km. The target is to reach 89km. The simple rule that has been followed is: Planning before Growth. Comprehensive, city-wide development plans are prepared every 20 years, and revised every 10 years – more frequently than in other cities.

ndian Institute of Technology-Hyderabad (IIT-H) would borrow `1,500 crore from Japan International Cooperation Agency (JICA) to develop its infrastructure, academics and research areas. The aid given by Japan is the biggest aid to an IIT, although a lot of foreign support was given to other branches before as well. Hyderabad had more than 400 engineering colleges and thus it was a favored destination. With the help of Japan, Hyderabad would witness a major development in the standard of higher education. IIT-H would build erect nine state-of-the-art buildings, including a special technology centre, new academic blocks and a research park. Money would also be used to upgrade lab facilities and equipments. Officials said they would expand its current capacity and student strength seven times from existing 1,000 plus to more than 7,500 by 2018. IITs were known for its research work. Now even private companies would get a chance to use the research and development laboratories inside the campus. Experts said the loan from JICA gave a hope to more foreign investments in Hyderabad in future.

INFRASTRUCTURE OPINION

Special Zones is what Tourism Needs for Holistic Development ANIL BHANDARI

As a model for development, in an atmosphere where getting timely approvals is always a problem, one window approach works best.

he National Tourism Advisory Council, at a meeting held in December 2011 was informed by the Ministry of Tourism that 35 Tourism Parks are planned by the year 2016. The Ministry had sought an allocation for this purpose from the Planning Commission in the 12th Five Year Plan outlay for de ve lopment of t he s e Tourism Parks. The proposal for creation of Special Tourism Economic Zones/Parks was suggested by me as Chairman of the PHDCCI Tourism Committee in the year 2007. We are happy and delighted with the announcement made by the Tourism Minister and the acceptance of my proposal by the Ministry of Tourism. Each Tourism Park will have at least 50 acres of land; with sufficient land earmarked for hotels, convention centres, theme parks, skill training centres; having facilities for craft centres, ‘haats,’ entertainment and amusement, food street, sports and hosting of cultural events and festivals. The development of Tourism Parks will be done through PPP/SPV of Central and State Governments with the land to be provided by the State Government or a private partner and with provision for participation and employment prospects for the local community. Initially 20 Tourism Parks to be developed in Mission Mode in phase-I with an outlay of `1000 crore. The concerned State Government will provide tax incentives, speedy clearances, higher Floor Area Ratio (FAR) and connectivity while the Central Government provides core infrastructure and tax incentives.

wenty tourism parks to be developed in Mission Mode in phase-I with an outlay of `1000 crore.

Major gains for the concerned players would be as follows The benefits for investors • Provides single-window clearance • Environmental controls • Fiscal benefits, tax holiday etc. Benefits for tourists • Availability of integrated facilities at one place • Greater choice through a basket of services • Freedom from touts and beggars • Clean and regulated environment The State Governments/UTs will gain by • Higher inflow of investments • Increased employment opportunities • Easier regulation of the environment • Focused tourism development.

Initially, in the first phase, 20 Tourism Parks will be located in developed, underdeveloped, unexplored areas of tourist interest. The Central Government would provide core infrastructure and tax incentives while the concerned State Governments/UTs would provide tax incentives, speedy clearances, higher FAR and connectivity. Presently the reason for people not investing in the development of hotels is lack of availability of land, high cost of land, long procedures and multiple clearances for building hotels, and lack of basic infrastructure. There is no land currently earmarked in Master Plans of State Governments/ UTs for hotels. This results in haphazard development of hotels, impacting the environment. Land for Tourism Parks should be given on long-term lease or through PPP scheme. This land should then be leased out at reasonable rates to investors with the condition that facilities should be built within a fixed time frame or the deposit amount would be confiscated. All approvals and licences to start the hotels/activities should be in place beforehand. The creation of Tourism Parks in or near places of tourist interest such as commercial and business districts, hill stations and religious locations will attract foreigners and Indians in large numbers thereby providing safe and sustainable tourism. Presently, West Bengal is utilising its tourism potential in the state and is looking for investments for a 208-acre Tourism Park near the Teesta barrage in the Jalpaiguri region. The mega `2,500-crore project will have 15 lake resorts and three to four premium hotels on 5 acre each, apart from an 18hole 75-acre golf course. The government also has plans to set up 10 budget hotels, camping areas with log huts, ayurvedic spa, food courts, entertainment centre, picnic spot and a children’s park. A crafts village is being planned so that tourists can buy handicraft items. Again, there will be a herb garden, a theme park and a bird-watching zone. A culture zone with an amphitheatre on a 12-acre plot is also a part of the plan. Other State Governments should also create Tourism Zones for development of Tourism Infrastructure. This would help the economy of the country by providing more jobs and apportunities. The author is Chairman, ABSmart Concepts and former CMD, ITDC

HUMAYUN’S TOMB FACELIFT PROVES THE SUCCESS OF PUBLIC-PRIVATE MODEL

ecoming the most impressive example of a successful restoration project in the country lately, Humayun’s Tomb, a UNESCO World Heritage Sight, gets a facelift and a brand new avatar. Inaugurating the restored 16th century on September 18th, 2013, Prime Minister Manmohan Singh claimed that India has one of the richest “repositories of heritage anywhere in the world and it is critical that we find practical and innovative ways to preserve and maintain this heritage.” Factually, it had taken close to 9 years to build this site and its restoration, and now after 400 years, took another 7 years of painstaking work to complete. Built in 1570 by the Islamic Mughal Dynasty, the Humayun’s Tomb had lost its glory with ignored garden spaces, broken stonework etc. The Aga Khan Trust for Culture with co-funding of Sir Dorabji Tata Trust and in partnership with the Archaeological Survey of India (ASI) took responsibility and carried forward the restoration of

Mughal architecture. Appreciating the public-private model for the restoration of monuments, Manmohan said, “Going by what I have seen and heard today, I think we have found a good model

in the public-private partnership that has restored this great monument to its earlier glory. The responsibility to conserve and restore our nation’s heritage cannot simply be the sole preserve of government agencies. The involvement of local communities who form part of the ecosystem of this heritage is, therefore, essential in this effort.” “The increase in visitor numbers to this World Heritage Site will also translate into greater income through tourism,” he added. Along with the tomb, a number of adjoining monuments: Nila Gumbad, Isa Khan’s garden tomb, Bu Halima’s garden tomb, Arab Serai gateways, Sundarawala Mahal and Burj, Batashewala group of monuments, Chausath Khambha and Hazrat Nizamuddin Baoli have also been restored. Other persons of importance present at the ceremony were Delhi Chief Minister Sheila Dikshit, External Affairs Minister Salman Khurshid, Prime Minister Manmohan Singh’s wife Gursharan Kaur, designer duo Meera and Muzaffar Ali, veteran designer Ritu Kumar, lyrist Prasoon Joshi, artist Anjolie Ela Menon, and former Tata Group chairman Ratan Tata, representing the Sir Dorabji Tata Trust.

MEDICAL TOURISM

Rupee Falls Makes Medical Care even More Attractive The revaluation of the rupee has been an additional incentive for foreigners to seek medical care in India.

Cardiac surgery, Neurosurgery, Spine and Joint surgery, Oncology and Organ Transplant are the most common treatments that are popular among international patients

rom the first recorded instance, thousands of years back, where Greek pilgrims travelled from all over the Mediterranean to the small territory in the Saronic Gulf called Epidauria for medical purposes, to the present where India is emerging as one of the most viable countries for international patients. Medical Tourism has been in existence for quite some time now and continues to show positive signs of growth owing to several factors. Destination India throws light on the driving force for Medical Tourism accelerating in India, where the nation is poised to become a major beneficiary, given its cost advantage. Medical treatments in developed nations carry an exorbitant cost, especially in countries such as United States. In such a scenario, India is becoming more and more viable for the westerners. A close look at the statistics establishes India’s cost advantage vis-à-vis other countries.

The Projected Growth “The Indian medical tourism industry is at a nascent stage with a market share of nearly three per cent of the global $100-billion market. It has an enormous potential for future growth and will remain amongst

the fastest-growing market segments. Positive signs are already visible through an increase in the queries and arrivals of international patients’’ comments Aditya Vij, CEO India, Fortis Healthcare. Sharing his views on growth potential in this segment, Raj Raina, General Manager- Marketing, Indraprastha Apollo Hospitals, adds “India is a booming market for medical tourism, where the sector is increasing at a consistent rate of 30% per year. The recent Asia Medical Tourism Analysis report establishes that India is set to garner 30% growth by 2015. It is a myth that the people can get better treatment abroad, which needs to be contravened in India. As a matter of fact, the same treatments are available in India where the quality of healthcare is at par with international standards”. Vij shares, “number of international patients at Fortis (patients from other countries) has grown nearly 25% a year over the past two years and 28% growth is expected this year. We see a distinct advantage of India’s tourism sector growing during the year which will act as a catalyst in the growth of medical tourism, in comparison to previous years”. The depreciation of rupee has affected the stats and figures of Medical Tourism

to a great extent. “According to the ASSOCHAM report 2013, it is estimated that the current worth of Indian medical tourism industry is at `4,500 crore ($754 million) with about 8.5 lakh foreign patients getting treated annually in the country. It is expected that the market for medical tourism in India will grow at an annual rate of 30% to 95 billion rupees ($1.55 billion) by 2015’’, explains Raina. He continues to add that the numbers at Apollo reflect a positive trend, where there has been a noticeable rise in the number of patients visiting the hospital which propagates clinical excellence practised at Apollo Hospitals. The group is dedicated to delivering accessible healthcare matching world class standards and low cost value proposition’’.

Raj Raina, GM Marketing, Indraprastha Apollo Hospitals

Regions Boosting Demand Also, according to Raina, they see the influx of international patients coming from West Asia, South Asia and the African sub-continent. The number of patients from United Kingdom and United States of America has also risen in tandem.’’

India’s Cost Advantage

Medical tourism is further flourishing in India due to cheaper costs. Treatment in India is 1/10th of the total cost in comparison to the west without compromising on quality healthcare and easy accessibility. “India offers some of the most sought-after treatments at much affordable rates. Also the fact that India is home to internationally renowned doctors in various specialities is what pulls international patients to India. The most common treatments that are popular among international patients include, Cardiac surgery, Neurosurgery, Spine and Joint surgery, Oncology and Organ Transplant’’, says Raina. In the coming times, the need for affordable healthcare will grow and individuals will continue to seek out opAditya Vij, CEO India, Fortis Healthcare Limited. portunities to obtain more from less. This will undoubtedly lead US INDIA SOUTH KOREA THAILAND to the continued growth in the medical tourism industry and 70,000-1,33,000 7,000 31,750 22,000 Coronary artery to match up with this, healthbypass surgery care in the low-cost destinations Bypass surgery with 75,000-1,40,000 9,500 42,000 25,000 must keep up with the current valve replacement practices and global standards. Hip replacement 33,000-57,000 10,200 10,600 12,700 Clarifying this further, Vij says Knee replacement 30,000-53,000 9,200 11,800 11,500 “A heart-valve replacement that Source: KPMG in 2011 (before the rupee’s fall; the 18% depreciation increases the advantage for India) would cost $200,000 or more

“According to the ASSOCHAM report 2013, it is estimated that the current worth of Indian medical tourism industry is at `4,500 crore ($754 million) with about 8.5 lakh foreign patients getting treated annually in the country.

It is a myth that the people can get better treatment abroad, which needs to be contravened in India. As a matter of fact, the same treatments are available in India where quality healthcare at par with international standards is accessible in India.” in the US, for example, goes for $10,000 at our hospital in India. So India offers a unique high quality affordable healthcare proposition which is unmatched in the region.’’ “Indian hospitals with their competent clinical talent undertake complex cardiac procedures, orthopaedic surgeries like joint replacements, complex neurosurgical procedures including spine surgery and gastro intestinal procedures in higher numbers. Transplant medicine including heart, liver and kidney are also performed with high success rate in India. We see the next opportunity in Oncology, particularly for Oncosurgery and bone marrow transplant’’ adds Vij. ?ANUPRIYA BISHNOI

HOTELS & RESORTS: SURVEYS

HVS Report: 2013

Operators and Owners Need to Evolve a New Trust Equation

An overwhelming new feature of managing a hotel is through the franchise route. Owners prefer to sit back and get a professional company to manage operations. But there are high expectations and these are not always met! ?MANAV THADANI, MRICS Chairman – South Asia and JUIE S. MOBAR, Associate Director – Special Projects

Summary

The critical challenges as identified by the owner community (Addendum) bear a strong correlation to a hotel's typical life cycle. While some of these challenges are self-created, others are beyond an owners control. Either way, these set an incorrect precedence for new hospitality ventures, reflecting poorly on the Indian hotel industry at large. The 2012 HVS Whitepaper on Investment and Manpower Requirement by 2021 – India highlights the country's need for around 1,80,000 additional rooms in this decade based on the forecasted number of travellers. These additional rooms are estimated to require an investment of US$25.5 billion and 2,11,000 people to operate them. If these needs are to be met, radical measures will need to be adopted to tackle the priority issues identified by the owner community under each of these critical challenges.

Funding Related Challeges

• Priority Issue 1: Ego-driven spending on product results in escalation of development costs, making loan repayment difficult. • Priority Issue 2: Lending terms by the banking sector are not investment-friendly. • Priority Issue 3: Innovative ways in which capital requirement can be structured are limited.

Development Related Challenges

• Priority Issue 1: Government approvals and licenses are several and non-uniform, causing loss of time and money. • Priority Issue 2: Land cost is very high, making it necessary to create more revenue-generating space. • Priority Issue 3: Absence of infrastructure status that is free of riders for the hotel industry.

Human Capital Related Challenges

• Priority Issue 1: International brands are not investing in hotel education in the country. • Priority Issue 2: Career development opportunities for employees within a hotel are few. • Priority Issue 3: Operators do not take adequate ownership of training quality.

Operator Related Challenges

• Priority Issue 1: Performance clause in management contracts typically protects the interests of the brand making it nearly impossible for the clause to be effected. • Priority Issue 2: Owners are seldom informed and involved in hotel operations. • Priority Issue 3: Hotel owners in India enjoy less favourable management contract terms in comparison to their western counterparts.

Funding Related Challenges

Changing times necessitate the need to adapt and we at HVS firmly believe that the lending institutions need to modify the structure of hotel debt-funding to meet the macro-objective of having a larger number of feasible hotel projects in the country. However, the responsibility to make hotel investments a more viable venture does not lie on the shoulders of the lending community alone. Hotel owners also need to contain development costs and realise that egodriven spending during development has negative ramifications on both the return-on-investment as well as debt-servicing. It is further important that owners adopt a disciplined approach towards utilisation of funds borrowed from a bank using these solely for the project they are meant for. In this section we discuss the three priority issues plaguing the owner community and make recommendations to reduce cost of funding and avoid cost over-runs.

Priority Issue I

Ego-driven spending on product results in escalation of development costs, making loan repayment difficult.

This is a self-created problem by most hotel owners, especially those who invest for the first time. Getting carried away while building a hotel, with little consideration for return-on-investment, is a trend the industry is familiar with. This problem is further accentuated by the high degree of emphasis the design and technical services teams of the operators lay on brand standards, lacking inclination to consider innovative and efficient solutions. This leads to development costs spiraling upwards, and when coupled with an inadequate loan term and a high interest rate, the hotel project becomes unviable even before it has commenced operations. Consequently, hotel owners have unrealistic performance expectations from operations teams as soon as the hotels open, knowing that it typically takes around 3-4 years for hotel assets to attain stabilisation. Moreover, it is frequently observed that developers often over-leverage to meet the capital requirements of their hotel projects resulting in high debt-service payments. Such a focus on shortterm gains and a myopic strategy invites troubles for the developer, the hotel project and the lender. In fact, this is one of the key reasons for the surge in demand for Lender Engineer services by banks,

HOTELS & RESORTS: SURVEYS where the project progress and deployment of funds is periodically assessed and audited by a representative appointed by the banks. We seek to draw the attention of the owner community towards avoiding cost over-runs and adopting a more disciplined approach towards utilisation of funds borrowed from a bank. There definitely needs to be greater emphasis on return-on-investment than return-on-ego with a conscious effort by hotel owners to avoid deploying more capital and borrowing more funds than required.

Priority Issue 2

Lending terms by the banking sector are not investment friendly. HVS India researched the lending parameters prevalent in select other countries of the world for hotel debt-funding and compared them to the prevailing conditions here. Expectedly, it was found that in cities such as New York, London, Dubai and Moscow, the term period of the loan ranges from 20-30 years, with interest rates of 5-7%. In other cities such as Beijing and Buenos Aires, while the length of the loan term is around 10 years, the interest rate is in the range of 9-10%. In clear contrast, debt-funding for hotel projects in India is characterised by a relatively short loan term, typically of 10-12 years, but with high interest rates of 12-14%. The result of the difference in lending parameters across different countries becomes more pronounced when one assesses their impact on the annual debt service, the Debt Service Coverage Ratio (DSCR) and the Equity Internal Rate of Return (IRR) for a hotel project. An increase in the loan term progressively reduces the annual debt service resulting in an increased DSCR, favourable for the lending institutions. On the other hand, it also results in an improved Equity IRR favourable for the hotel developer. Hence, it is a win-win

situation for both parties. The benefits of a longer loan term are further augmented by a simultaneous decrease in interest rates. Our discussions with mortgage brokers and subject matter experts reveal that the lending parameters for hotels projects in India border on being unfriendly towards the borrowers. It is common knowledge that hotels in India typically have a construction period of 3-3.5 years. With a loan term of 10 years, the door-to-door tenure can be broken down as 3-3.5 years (construction period) + 1 year (moratorium on interest payment) + 5.5-6 years (operations period). Therefore, the project only has 5.5-6 years to pay for the debt service, which is unrealistic. As a result, the insufficient payback period leads to either the borrower putting in more equity to pay-off the debt, which

ideally should be coming from the cash flows of the hotel itself or the project undergoing refinancing/ re-structuring, which is a very common occurrence these days. Additionally, the banking communityâ&#x20AC;&#x2122;s lack of knowledge about the hotel industry is a hindrance. Hotel funding tends to decline when marketwide RevPARs drop irrespective of demand increasing, painting a gloomy picture. However, one needs to appreciate that hotel markets have traditionally been cyclical in nature and it is prudent to build hotels during the slump in order to have them operating by the time the market recovers. The above leads us to believe that the lending circle needs to reconsider the way hotel debt-funding is structured in India. Infrastructure status for the industry can be a huge step in this direction with hotel debt being offered longer loan terms at lower interest rates. Moreover, an ascending annual debt service payment schedule that progressively rises over the term of the loan, with minimal burden on the project in its initial years, is another thought worth considering. Such a facility is often extended by banks in India when a project undergoes debt re-structuring. In our opinion, it would be more beneficial both to the lender and the borrower if this facility was to be offered right at the onset and not let a stage be reached where the hotel is unable to meet its debt repayment obligations.

Priority Issue 3

Innovative ways in which capital requirement can be structured are limited. Hotels are capital intensive projects and hence it is necessary for the owner community to have access to multiple ways to structure their funding requirements. However, this, to a large extent, rides on the back of the Indian regulatory framework, leaving the hotel owners with limited options to try permutations and combinations.

Typically, debt is the cheapest source of funding available in an economy and all other sources of capital are benchmarked against it. However, in India, the debt itself is so expensive that it has a multiplying effect on the rest. Our discussions with subject matter experts reveal a few other options for capital available to the owner community, other than the traditional debt from the bank. These range from External Commercial Borrowings (ECB) that are becoming increasingly popular owing to low costs attached to them, to loans against Foreign Currency Non Resident Bank Account (FCNR B Account) wherein a non-resident individual of Indian origin can maintain a fixed deposit in foreign currency and earn regular interest on the same. However, these have risks attached

to them. ECBs are vulnerable to exchange rate fluctuations and offer shorter loan tenure, whilst loans against FCNR (B) Accounts tend to be more expensive than ECB, albeit with a longer loan tenure. Overall, costs associated with both these sources of funding are lower than the cost of traditional debt from a bank. Additionally, fund raising through mezzanine investments â&#x20AC;&#x201C; a hybrid of debt and equity instruments â&#x20AC;&#x201C; are now being used by companies primarily for expansions. Several mezzanine funds have started in India in the last couple of years owing to a slowdown in lending by banks coupled with promoters unwilling to sell their equity shares. We also gather that provision to swap Indian rupee loan repayments with US dollar loan repayments is offered by banks to companies with strong balance sheets and high credit ratings. Hence, there are options beyond the equity and traditional debt (in addition to those discussed here) to meet the capital requirements of hotel assets, with more anticipated to be introduced in the years to come. It is possible that the owner community has explored and evaluated all options available for sourcing capital for hotel projects in India, but until such time that the Indian regulatory framework changes and is more friendly towards this sector, one has select options to be innovative with. It is also possible that not all hotel owners are aware of funding options available in the market and hence we suggest that the owner community interact among themselves and share experiences, findings and success stories. The roundtable hosted by HVS was our attempt in this direction, and we hope that in future forums, owners take away as much as possible to help them in their hotel development plans.

Development Related Challenges

The hotel development process in India

needs to be made efficient with an aim to shorten construction tenure and rationalise costs. Right from securing innumerable approvals and licenses to opening the hotel on schedule, the entire process is fraught with challenges for the Indian hotel owner. While all industry stakeholders realise this, little has been done to address these issues. Based on our discussions with the owner community, we list and talk about the three priority issues.

Priority Issue 1

Government approvals and licenses are several and non-uniform, causing loss of time and money. Considering that India is ranked 132 out of 185 countries in terms of ease of doing business1, delays owing to multiple

windows of clearances are not surprising, even for the hotel industry. The current regulatory environment in the country makes hotel development a difficult terrain for owners. Beginning with the land acquisition stage, for which the archaic laws differ from state-to-state, to securing approvals and licenses, an owner faces bureaucratic bottlenecks irrespective of whether he uses a top-down or a bottom-up approach to cut through the red tape, though the former is likely to yield quicker results. There are numerous licenses and approvals (can add up to more than a 100 in some states) that one needs to get in present times to open a hotel in India leading to loss of time, effort and money. Furthermore, the various bodies giving approvals/ issuing licenses tend to work in independent silos, leaving the coordination up to the applicant. A good example to cite is the Hospitality District promoted by Delhi International Airport Limited (DIAL). Last-minute worries expressed by security agencies have cast doubts on the fate of the hotels being developed there. Almost six years after the government approved plans for one of the largest hotel zones in India, the hotels are yet to open with the promoters gravely concerned about their investments as daily losses mount. It appears that the security agencies were never consulted when the approvals were sanctioned, reflecting poorly on the planning and coordination of government-backed projects in the country. Though the central government has formed the Hospitality Development and Promotion Board (HDPB) under the chairmanship of the Secretary of Tourism, Government of India, acting as a facilitator between a promoter and NOC issuing agency, the fact that securing approvals and licenses still continues to be a major issue indicates the Board'slackluster performance. Moreover, the timeframe to open a hotel

in India is much higher than that globally, resulting in owners incurring cost overruns with negative ramifications on the returnon-investment. While we believe that the government has no deliberate intentions to delay the process of securing necessary approvals and licenses to open hotels in the country, the regulatory framework is sluggish and not pragmatic in its functioning, commanding an urgent relook. A single-window clearance system similar to that followed in many other Asian countries, in our opinion, will provide the much needed impetus to the hotel development process in India. Particularly, all land parcels auctioned by the government for hotel development should come preapproved with all the necessary permissions and licenses. Moreover, an introduction of

a uniform approval and licensing system across the country, with minimal local/ regional permissions and sanctions required for hotel development, can bring about homogeneity, reduce delays and result in an investmentfriendly environment.

Priority Issue 2:

Land cost is very high, making it necessary to create more revenue-generating space. Unless you have a historical land bank, the process of identifying new land parcels that can support a hotel development at rational prices is a difficult task in India, especially in Tier-I cities. Compared to international standards, wherein land cost accounts for 15-20% of the total project cost, in our country this is often upwards of 40- 50% (and as high as 60-70% for budget and mid market hotels), posing a huge barrier to entry for promoters keen on investing in hotel assets. This could be one of the reasons why in India, the existing supply of hotel rooms historically depicted an inverse pyramid with most branded hotels being in the upscale/luxury space. Hotels with lower average rates are unlikely to become viable with such high land costs, especially if they are a singular development on a land parcel. Consequently, there is a marked increase in the number of mixed-use development projects coming up in the country comprising a blend of hospitality, commercial, residential and/or retail components. As the returns on investment range from immediate to long-term across these various components, they allow for a phased development with sales proceeds from one component funding the construction of another. This in turn enhances the development viability of all the components that could have been prohibitive individually. Further, high land costs put pressure on the owners to create more revenue generating space in hotels. This leads to a vicious cycle of inventory versus the room size, both of which are key determinants for a project to qualify for consideration by a branded operator. Brand standards pertaining to the threshold key count and bay sizes are often rigid, leaving little or no option for hotel owners to comply and in turn risk their investment. We believe that the government, at both the central and state levels, needs to earmark hospitality development sites at concessional rates with incentives to address this priority issue. Higher Floor Area Ratios (FAR) shall also be a favourable move for hotel development in the country as obstructing vertical growth puts pressure on available land area, eventually resulting in escalation of land costs. Meanwhile, hotel owners must consider mixed-use developments after a thorough analysis of the likely integration of and demand for the components, as applicable. Additionally, effective design and planning needs to be employed to create more revenue generating space in the hotels without adversely affecting guest comfort. In this regard, it is important that branded operators be more flexible and pragmatic with an aim to work with hotel owners in developing products that help justify the land cost. Another emerging trend, which actually helps circumvent the problem of high land cost, is that investors no longer need to limit themselves to acquiring greenfield hotel sites as there are several existing hotels available to transact over, indicative of a maturing industry.

Priority Issue 3

Absence of infrastructure status that is free of riders for the hotel industry The Economic Survey 2012-13 states that with a 25% share, Trade, Hotels and Restaurants, as a group, is the largest contributor to India's GDP among the various Services subsectors. Moreover, WTTC2 reports that in 2012, the total contribution

HOTELS & RESORTS: SURVEYS of Travel and Tourism towards the country's Total GDP was 6.6%, while the total contribution of this sector towards employment (including jobs indirectly supported by the industry) was 7.7%. Considering these statistics, one wonders why the hotel industry in the country is out of the ambit of the RBI's lending list for infrastructure projects. There have been repeated attempts by the hotel industry to secure infrastructure status for itself without any riders. The current rules allow for an inclusion of three-star or higher category of hotels located outside cities with a population of more than one million in the harmonised list of the infrastructure sub-sector for the purpose of bank finance3. Essentially, this means that hotels categorised three-star or above located within cities such as Mumbai, Delhi, Kolkata, Chennai, Bengaluru and Hyderabad among others are excluded from this list. According to Federation of Hotels & Restaurant Associations of India (FHRAI), this provision only covers 5% of existing hotels in India. Moreover, in January 2013, the RBI announced that Indian companies in the hotel sector with a total project cost of `250 crore or more, irrespective of geographical location, are eligible to avail External Commercial Borrowings for repayment of outstanding Indian rupee loans availed from the domestic banking system and/or for fresh Indian Rupee capital expenditure. However, it still does not address the key reasons why there should be a need for hotel owners to borrow funds to repay loans in the first place. In fact, in the past couple of years, quite a few listed hotel companies went for Corporate Debt Restructuring (CDR) as they were unable to adhere to the loan repayment schedule of the lending institutions. This problem is expected to worsen with the RBI adopting a strict stance on the rising number of CDR cases in recent times. Infrastructure status for the industry is particularly important as hotels have a long gestation period, are capitalintensive, and are probably as risky as infrastructure projects. The general perception, it appears, is that while roads, power etc. are directly linked to socio-economic development, hotels categorised three-star and above in larger cities with a population of over a million are not. We differ in our opinion here. Hotels are known to contribute to socioeconomic development wherever they have come up irrespective of their star classification, through generation of employment (skilled and unskilled), foreign exchange earnings, increased tourists arrivals in the country and rise in economic activity of other related industries. Further, there is a larger benefit involved here. Infrastructure status for hotels will allow for cheaper source of funding (higher debt-to-equity ratios, longer loan terms and lower interest rates) reducing input costs significantly. Moreover, this would allow the industry to avail benefits of longer loan terms and access to infrastructure bonds issued by institutions such as India Infrastructure Finance Company Limited (IIFCL) and Infrastructure Development Finance Corporation (IDFC). The hotel sector is capital-intensive and it being accorded infrastructure status could result in the term period of loans being extended to close to 15 years at significantly lower interest rates than the present 12-14% and higher debt-toequity ratios. This would in turn bring down the development costs, making hotel projects a more viable venture. The good news is that the government is currently considering extending the infrastructure status to all hotel projects with a capital expenditure of `250 crore or more. While this move will certainly benefit luxury and upscale hotel projects, the much needed mid market and budget hotels unfortunately don't stand to gain from this impending decision.

Human Capital Related Challenges

HVS estimates that close to 85,000 new rooms are proposed in the organised sector over the next five years; this is an increase of 90% over the existing supply base of accommodation across the country in 2012/13. Notably, 60% of these new rooms are under active development. With little to set apart one lodging product from the other, hotel management companies will be forced to rely on best-inclass service levels and standards as a successful differentiator for their assets. This distinguishing factor, apart from being dependent on technology, largely depends on one single resource â&#x20AC;&#x201C; the human workforce. We talk about the three priority issues pertaining to human capital in the hotel industry in India.

Priority Issue 1

International brands are not investing in hotel education in the country. The top two domestic hotel operators by existing inventory, namely Taj and ITC, operate hotel management institutes offering undergraduate programs, namely the Institute of Hotel Management â&#x20AC;&#x201C; Aurangabad and Welcomgroup Graduate School of Hotel Administration â&#x20AC;&#x201C; Manipal, respectively. Both these

brands, along with The Oberoi Group, also offer individual management training programs, specifically for those interested in establishing a career with these chains. In stark comparison, international brands have negligible presence in hotel education in the country with the exception of Berggruen Holdings (UEI Global), IHG (IHG Academy), Carlson (tie-up with IIMT) and now Best Western (the first institute under construction in Odisha). This poses a huge challenge for hotel owners, who ultimately face the adverse consequences of poor operating performance and low profitability stemming from scarcity of skilled manpower. Considering that the number of hotel and catering management institutes approved by All India Council of Technical Education (AICTE) is less than adequate, and much of the talent graduating each year is unsuited for direct employment in the industry, there is a huge gap between demand and supply of human capital that threatens to only widen in the years to come. As most international brands announce aggressive pipe lines, one wonders where the qualified human capital that is required to operate these hotels will come from. Training alone cannot meet this demand. Education needs to be the first step. There needs to be a monitoring body from within the hotel industry that inspects the professional colleges/institutions offering education in this field ensuring that it is in line

with the industry's requirements. We strongly believe that the industry has no right to complain about the lack of skilled manpower if it is not willing to invest and participate in the hospitality education system. Models such as the one on which the IHG Academy operates, are good examples to emulate. The academy was developed to attract and foster talent in the hospitality industry by providing real-life skills and enhancing employment opportunities. It essentially is a collaboration between individual IHG hotels or corporate offices and education providers and/or community organisations. In our opinion investment in the field of hospitality education not only serves the operator's objective of creating a pool of skilled manpower to staff existing and future hotels, but is also a great Corporate Social Responsibility (CSR) initiative. HVS India is currently exploring an opportunity in the education sector involving tie-ups with three or more branded operators in the country, to offer professional skill-based education for those interested in a career in hospitality. A formal announcement in this regard is expected early next year.

Priority Issue 2

Career development opportunities for employees within a hotel are few.

Career progression for employees is a challenge faced primarily by hotel owners who operate unbranded hotels, have a single hotel asset, or both. It is difficult for such owners to offer an attractive career progression plan to their employees. In fact, based on our past and ongoing engagements with single hotel assets in India, we gather that this difficulty often gives rise to a tall organisational hierarchy through internal promotions and the creation of tailor-made designations that otherwise are non-existent in the hotel industry. However, this is one of the key reasons for these hotel assets having a loyal team and low employee attrition. Evidently, such a model has its pros and cons. HVS Executive Search New Delhi recently conducted detailed discussions with Regional Heads of the Human Resource function across hotel companies in India to gather information on the ongoing retention and employee engagement practices. Majority of the hotel companies were found to have a well-defined career development path chalked out for all levels. However, existing attrition in Indian hospitality is sharply higher at the rank-and-file level (30-35%) than at the management level (10-15%), necessitating keen attention on the former. Career development and progression promotes employee engagement, and improves motivation and overall productivity. It also helps curb attrition, which is particularly important at the entry-level. However, the

HOTELS & RESORTS: SURVEYS increasingly 'young' workforce adds to this challenge as it tends to prioritise compensation over career progression. It is thereby necessary to have frequent career discussions with the team member to brief them on advancement opportunities available within the company and how this would benefit the employee professionally.

Priority Issue 3

Operators do not take adequate ownership of training quality. While most brands claim to focus on training, with a majority of them having detailed management/corporate/ operational training programs, these have not translated into service deliveries on the shop floor leaving the owners dissatisfied. Evidently, either training is inadequate withlittle sense of ownership of that function by operators, or there is lack of communication between the owner and the operator on the training imparted and its resultant impact on guest satisfaction, performance and employee satisfaction. Training Plans, Budgets and Calendars are part of a serious exercise based on detailed employee 'training needs analysis'. However, from our own experience of having reviewed various operating hotels, we have realised that this department is often neglected with most

processes being limited to paper exercises. We all acknowledge that though training shows up as an expense in the P&L of a hotel, it is actually an investment which can affect all the other line items. Therefore, operators and owners need to jointly ensure that this function gets its due.

Hotel Operator Related Challenges

Alignment of owner and operator expectations emerged as a critical challenge during our discussions with hotel owners in India. The underlying feeling of being shortchanged by operators with brand standards often overriding owner’s objectives and development assurances not matching operating deliveries was echoed by majority of the participants at the owners' roundtable during HICSA. This is not to say that the owner community does not want to own branded hotels. In fact 92% of survey respondents thought brands add value to their hotels. However, a more balanced management contract with greater transparency will enable a more trusting environment going forward. In this section we discuss the three priority issues pertaining to owner relations with operators and offer our views on each.

Priority Issue 1

Performance clause in management contracts typically protects the interests of the brand making it nearly impossible

for the clause to be effected. This clause has since long received flak from hotel owners and consultants alike. It is most often the only clause that provides a window for an owner to terminate the management contract with the brand, and hence receives substantial importance during negotiations prior to a tie-up. Right from an operator requiring to fail both GOP and RevPAR based-performance tests for two/three consecutive years for the owner's termination right to be effected, to the cure for the failure by the operator being limited to only the last year of the test period, the way the clause is structured safeguards the interests of the brand at all times making it nearly impossible for the owner to terminate the contract on account of poor performance. In most other industries, a client has the choice to reject /discontinue a product/ service if he/she is dissatisfied. However, hotel owners do not enjoy such a privilege and in turn have to pay a hefty termination fee to disengage with the operator. In our opinion, both parameters of the performance test are important as they take into account the internal as well as the external conditions affecting a hotel's performance. However, the termination right of the owner should be exercisable if the brand fails on 'ei-

shortterm and long-term objectives of both parties to result in a mutually beneficial relationship. Almost all hotel owners prioritise profits over everything else, leaving the details to the operator. On the other hand, the brand ranks its image and income from fees at the top. Non-involvement of owners in hotel operations and lack of transparency can result in a gap in the direction the two parties are taking to meet their individual objectives. We cite a few instances when non-alignment of objectives can be detrimental for the owner: • Brands often emphasise standards, which keep getting upgraded from time-to-time. However, a single change in a brand standard can have a significant cost impact for the hotel owner, who is expected to comply without being convinced about return-oninvestment. • Marketing programs rolled out at a regional/global level by the brand seeking all units to contribute equally may generate new business at a wider level, but need not be directly beneficial to the subject hotel. • Payroll cost is borne by the hotel owner and hence it is critical for him/her that operations are efficient and manpower ratios controlled, while the operator may focus on product and service standards being

value. Such an appointment is expected to be particularly fruitful for first-time hotel owners who lack experience, as well as for those who would prefer to rely on a trusted expert than to get involved in hotel operations.

ther' of the performance thresholds as against 'both' for a test period. We would like to mention that the owner community highlighted that the test period, which generally commences in the fourth/ fifth full operating year of the hotel, should preferably start from the first year of operations. However, HVS holds a different view and believes that the operator is justified in starting the test period after three to four years of complete operations by which time the hotel is estimated to assume stabilised levels of performance. One possible solution with regards to balanced termination rights could be the owner and the operator being offered equal right to terminate the engagement without cause after the first 7-10 years of the term are completed without a penalty. This in our opinion is pragmatic and mutually beneficial to both parties. Analogous to a marriage, if the first few years go past well, there are fewer chances of it failing in the long term. We have noticed in the recent past that a few brands have started to make such offers, particularly for conversion/rebranding opportunities.

maintained or enhanced. We cite a few instances when non-alignment of objectives can be detrimental for the operator: • As discussed earlier, ego-driven spending during the development stage may lead to the owner putting undue pressure on the operator to perform beyond its optimal level to achieve the required return-oninvestment. • On the other hand, the FF&E Reserve for Replacement that brands insist on setting aside during the operating period of a hotel asset for periodic product upkeep is often drained out by owners for other purposes. • Owner may also be motivated to expense asset related expenditure to reduce the GOP, in turn decreasing the operator's incentive management fee. We believe that it is in the interest of an owner to be informed and involved in hotel operations in order to be more cognizant of the challenges and opportunities in front of the operator. However, it is necessary that involvement does not translate into intrusion. Alignment of objectives can be achieved via periodic meetings/communication between the owner and the operator to establish overall goals, set budgets, monitor performance and evaluate new opportunities. Additionally, the role of an asset manager could be explored who has knowledge of hotel operations and monitors ongoing financial performance, physical product and legal/statutory compliances with the key objective of maximising hotel asset

In short, they are a lot more flexible and balanced than they are here in India. It is important to acknowledge that India's hotel market is evolving and is yet to attain the level of sophistication the West has. Also, the credibility of hotel owners in India has taken a hit time and again with regards to maintaining brand standards, having sufficient working capital and conducting timely product renovations, among others. Having said that, the influx of international brands in the country in the last decade has enabled the owner community to adapt to the changing environment. Today, a hotel owner is a lot more aware, well-travelled and conscious about his/her commitments and rights. We, therefore, believe that while it was acceptable for the international operators to have stringent terms when they ventured into India, it is high time they review and revise their management contracts to cater to the new-age hotel owners treating them on par with their western counterparts.

Priority Issue 2

Owners are seldom informed and involved in hotel operations. A management contract allows an operator to perform several actions on behalf of the owner that can have a direct impact on a hotel's profitability. It is thereby imperative that there is an alignment of both

Priority Issue 3

Hotel owners in India enjoy less favourable management contract terms in comparison to their western counterparts. This issue brought up by the owner community is specifically directed at the international operators who are on a signing spree in the country. There are enough reasons for owners in India to believe that they are getting a poor deal in comparison to their western counterparts as far as management contract terms are concerned. We support this view and cite a few areas where different standards adopted by a brand are obvious. Management contracts in the West • Allow for a termination upon sale. • Have shorter tenures. • Have stronger performance tests, with RevPAR test thresholds being 100% at times. • Offer Owner's Priority or subordinate Brand's Incentive Management Fee to Annual Debt Service and Fixed Costs.

Next Steps

As a next step, HVS intends to invite owners and representatives of brands, and possibly the lending community and the government to have a face-to-face discussion on each priority issue highlighted in this article. This will be held in a townhall fashion immediately after Diwali in New Delhi, and should hopefully go a long way in bridging the trust deficit between the different stakeholders.

ISSUES : MANAGING THE ENVIRONMENT

Adventure Tourism : A Push in the Wrong Company?

Due to lack of a clear identity policy framework, adventure tour operators are experiencing a fall in their business. We bring you different takes of people from the industry.

Major S K Yadav Managing Director, Wanderlust

dventure tour operators are crying foul as the cases mount up wherein their businesses in some pockets have been shut down as part of the larger exercise by the designated authorities to do away with the illegal business activities in the region. Lack of a clear identity vis-à-vis policy framework has begun to hurt acutely, claim the proponents of adventure tourism in the country. Prima facie, this could clearly be called the case of collateral damage. Even as Adventure Tour Operators in the country grapple with a fall in the business, particularly their clients from abroad following economic downturn, some cases have emerged in the recent months wherein they had to shut their base camps following orders from the state forest department which wanted to do away with illegal activities primarily mining in the notified zone. The crux of the matter is: the base camping has been bundled with activities like illegal sand mining and this is hurting the operators acutely. “Nature Camps have been clubbed with stone crushers and miners

“Nature Camps have been clubbed with stone crushers and miners and their activities have been stopped in the Damdama area in Haryana. A case in point here is that these very adventure and nature lovers with their camps were obstacles in the way of stone crushers trucks who mine the Aravalis.”

and their activities have been stopped in the Damdama area in Haryana. A case in point here is that these very adventure and nature lovers with their camps were obstacles in the way of stone crushers trucks who mine the Aravalis,” rues Major S K Yadav, Managing Director, Wanderlust. But according to Akshay Kumar, President, Adventure Tour Operators Association of India (ATOAI), the Aravali instance is not an isolated case. There have been several instances of this nature where authorities have refused to identify adventure tourism activities as a separate entity and there has been an overall non-chalant attitude which is holding a segment capable of doing wonders in a country endowed with huge natural assets. “We do not doubt the intentions of the local wings of the Forest Department or for that matter the National Green Tribunal (NGT) which is doing an excellent job in the area of forest and environment preservation. But our activities need to be judged separately – something which we have been demanding for long time and yet there has been no clear picture,” Kumar points out. The lack of uniform rules in conducting adventure camps

Akshay Kumar, President, Adventure Tour Operators Association of India

“We do not doubt the intentions of the local wings of the Forest Department or for that matter the National Green Tribunal (NGT) which is doing an excellent job in the area of forest and environment preservation. But our activities need to be judged separatelysomething which we have been demanding for the long time and yet there has been no clear picture.”

ISSUES : MANAGING THE ENVIRONMENT

OPINION

Regulate, Not Ban! Rakesh Kumar, Lawyer, Delhi High Court

n the views of many, even within the legal fraternity, there is a Coming back to the issue of adventure tour operators who are larger feeling that National Green Tribunal (NGT) constituted in facing ban on their activities in certain pockets alongwith mining 2010 primarily as special court to deal with the issue of environand other activities, the disquieting fact is that there is a strong perment preservation is in an extremely proactive mode. And it is often ception that their operations are not environment friendly. They may resulting in pronouncements which create difficulties galore for the resort to the argument that they entertain high-value clients who not concerned parties. In many instances, you would find aggrieved paronly bring top money but also extremely eco-sensitive mindset, we ties claiming that they have not been allowed to present their case all know how uncontrolled tourism has been blamed for the recent adequately or even not made a party to represent their side. disaster in Uttrakhand. No gain saying that this perception also exBut more than NGT, I think the onus lies on the forest departists within the judiciary and it would need a lot to dispel this belief. ment and other agencies of the state governments. The cases are But is blanket ban an answer to the issue or should we look for often presented without indulging in expert finding kind of exerbetter regulation regime? I think, in the interest of all, the solution cises to ascertain the extent of damage which each stakeholder (in lies in the latter. Take the case of Taj Mahal. They have reduced the a given specific case) is causing to the location. Many a times, the lighting there and also restricted the volume of footfalls at any given authorities are not taking the orders in the right spirit and invoking point in time, which are the right moves. Plus, they have also brought blanket ban on all kinds of commercial and incidental activities. in norms to control polluting fumes released by adjoining Mathura Furthermore, there are several instances wherein petitions may have refinery. Similarly, Himachal Pradesh – another tourism hotspot- has been moved by tacit approval of business rivals just to settle the score always followed very strict rules in allowing private operators to setRakesh Kumar, Lawyer, Delhi High Court with their competitor operating in an eco-sensitive zone. up lodges and resorts. They do not allow use of plastic bags. These Tour operators case is just a small part of the larger picture. Just are the examples which need to be emulated. As I said, the solution to cite an example, I am representing a host of manufacturing units located near Sihani lies in finding a middle path and here private operators of any business can’t afford to pay Gate area in Ghaziabad, many of which were asked to shut immediately because there lip services any longer. They have much larger task in hand to change their image from was a complaint that they apparently exist on the river-bed of Hindon river – an ecopolluters to responsible stakeholders. The government agencies too need to act sensibly sensitive zone. Now they have been existing there for decades. Where will they and by going that extra mile to understand the real polluters. Painting everybody with the hundreds of their employees go? Why they were not reprimanded earlier? Why strict same brush may be momentarily convenient but it does not lead to a solution. environmental regulations were not enforced for them? There is no dearth of questions. ?As told to RITWIK SINHA

too has affected the tour operators in specific locations. “Just to cite an example, in the Valley of Flowers in Uttarakhand, the local forest authorities are asking for exorbitant fees from the camp orgainsers. As a result, some tour operators have already left the scene. The point is: there is complete ad-hocism in terms of provisions that exist for us. And disquieting fact is: nobody is paying any attention to it,” Yadav comments. “Haryana, UP, to an extent Madhya Pradesh and now even Uttrakhand are not doing enough to encourage adventure tourism. Even in other states, the scene is quite similar,” Kumar adds. Kumar emphasizes the point that somehow the concerned government departments have not realized the fact that adventure tourism can’t be equated with the rigors of religious tourism. “It would be a grave injustice to compare an adventure tourist with those who come in droves for pilgrimage. The group is always smaller and normally from the higher strata of the society who are not only high-spenders but also have a fair understanding of the issue of environment preservation norms. Plus, this is a segment which also draws foreign tourists significantly. Its difficult to understand why its value is not understood in the right perspective?,” questions Kumar while pointing out that international adventure tourism enthusiasts have begun showing more preference for India’s neigbouring countries like Nepal and Bhutan resulting in huge loss to Indian operators. Another serious form of discouragement which adventure tour industry is forced to combat is: in many states, Forest Department has been allowed to build forest lodges and other adventure parks inside the forest, but there is a strict norm not to facilitate private operators to step in this space. “We fail to understand what is the rationale behind this step-brotherly treatment to a segment which comprise 17 percent of the overall tourism earning?” asks Yadav. “It’s a pre-requisite for our business that we keep the environment and forests where we operate in a healthy state. In that sense, we should have been seen as a force multiplier, permanent partners by the authorities. But the scene is quite different and is baffling,” Kumar says. The adventure tour operators are demanding well-defined guidelines issued by the Union Ministry of Forest and Environment which should pave the way for their distinguished identity as different from the disparaging activities with which they have been clubbed in the recent past. “It’s a must now if adventure tourism has to reach anywhere close to its potential. We have drawn the attention of the Ministry of Tourism and also talking to state tourism departments asking them to consider our presence in a more dignified way. We are hopeful of a positive outcome,” Kumar underlines. ?RITWIK SINHA

Sights Report on Adventure Travel: India H

olidayIQ.com, India's leading travel planning website powered by India’s first and largest traveller community announces “HolidayIQ.com Insights: Report ☛ Adventure travel a new on Adventure Travel in India”, based on the on-site actions of 50 Lakh unique favourite among couple Indian visitors who plan their holidays on HolidayIQ.com on an ongoing basis. This travellers. report on Adventure travel is an analysis of holiday enquiries on HolidayIQ.com between ☛ Spike observed among June - August 2013. travellers from Tier 2 Hari Nair, CEO & Founder of HolidayIQ.com cities. states, “HolidayIQ.com has been synonymous with ☛ Planning time for identifying and resonating the voice & preference of adventure holidays the Indian traveller and HolidayIQ.com Insights is is average 34 days in conceived as a series of reports on varying aspects of advance. Indian tourism based solely on authentic feedback from ☛ Bengaluru tops the Indian travellers.” Elaborating on the research findings list of cities for adventure pertaining to adventure travel, Hari mentions, “The holidayers. interesting fact which emerged in the last few months is, adventure travel is a new fad among couple travellers, ☛ 56.7% adventure they account for 46% of adventure holidays in India, travellers opt for Mountain followed by larger groups at 25%, family travellers at adventure, 20% opt for 22.2% and single travellers at 7%. Another unique Beach and 14.6% opt for trend that we observed is travellers from tier-2 cities Jungle adventure. spend more on adventure holidays doling out `2,382 per ☛ Popular adventure person per night on accommodation, which accounts for sport that travellers seek 19.9% of all adventure holidays.” are trekking, paragliding, Hari Nair HolidayIQ.com insights on trends in adventure rock climbing , wild life CEO & Founder, HolidayIQ.com travel, highlight other notable behavioral aspects of safari and others. Indian travellers. Though adventure holidays are gaining popularity, safety & security are a prime concern in planning, resulting in longer planning periods. An adventure holiday is planned at an average of 34 days in advance as compared to Leisure holidays which are planned 27 days in advance. Mountain adventurers represent 56.7% of adventure travelers, and the remaining 20% represents beach adventurers and 14.6% represents jungle adventurers. Most popular adventure sports that travellers seek are trekking, paragliding, rock climbing, wild life safari and others. 61.3%, a substantial chunk of adventure trips are scheduled for weekdays and only 38.7% of trips are scheduled for weekends. HolidayIQ.com insights imply that a larger chunk of adventure holidays are planned by travellers from the metros, which accounts for 59.6% of all adventure trips planned and the average spend, is `1,912, followed by tier – 1 cities at 20.5% and the spend is `2,229. Couple travellers have the highest accommodation budgets for adventure holidays shelling out an average of `2,460 per person per night, Single travellers are a close second spending `1,921 per person per night and taking the longest adventure holidays averaging at 2.9 days. Family & group travellers spend `1,785 & `1,659 each on accommodation.

Top 10 cities from where adventure holidays are planned

Top 10 Tier 1 & 2 Cities to go on adventure holidays

Favourite Adventure Destinations

Favourite Adventure Destinations among single travellers

Favourite Adventure Destinations among couple travellers

Top 10 adventure activities

Bengaluru, Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Ahmedabad, Pune, Chandigarh, Coimbatore

Ahmedabad, Pune, Chandigarh, Coimbatore, Jaipur, Cochin, Indore, Surat, Nagpur, Bhubaneshwar

Goa, Ladakh (Leh), Andaman & Nicobar, Coorg, Kerala, Manali, Ooty, Corbett, Chikmagalur, Lonavala

Ladakh (Leh), Andaman & Nicobar, Goa, Manali, Kashmir, Kerala, Kaziranga, Corbett, Darjeeling, Ooty

Goa, Ladakh (Leh), Kerala, Andaman & Nicobar, Coorg, Manali, Ooty, Corbett, Kashmir, Lonavala

Trekking, Paragliding, Rock Climbing, Wildlife Safari, Jet Skiing, Mountaineering, Kayaking, River rafting, Snorkelling, Surfing, Skiing

LITTLE NUGGETS

The Countryside Connect at Norwood Green in Palampur The countryside, in particular, is an experience that brings the tourists face-to-face with an entirely new breed of stakeholders. We bring you a glimpse of Norwood Green in Palampur, and meet with and explore this larger tourism connect.

orwood Green are boutique cottages nestled in the tea gardens of Palampur in Kangra, Himachal Pradesh, with pine trees in the backyard and the mighty Dhauladhar mountain ranges on the right. The resort has many good vibes to it and, to add to the charm, the only sound that guests hear is of the different species of birds crooning all day long. The cottages define exquisite living because of its aesthetically constructed infrastructure, equipped with modern day amenities. In total, there are 3 cottages which guests can rent out; each cottage, (500 sq. yard) has 4 bedrooms with attached bathrooms, kitchen, dining and a lounge with glass sliding doors opening onto the veranda, making it a finely detailed resort to experience. Norwood Green lives upto the expectations and desire of the citybread who wishes to break free from city life, get on to the open countryside and yet continue to enjoy all the modern day amenities. As each room has its own privacy the guests can rent out single rooms or can book the entire cottage to themselves.

Karan Grewal, the young entrepreneur, who has converted his family estate into a vibrant resort. He brings passion and knowledge of the countryside, bringing a new tourism experience built around life on the tea gardens of Kangra

Jammu & Kashmir

Dalhousie

Sarchu

Keylong

Dharamsala

Rohtang Manali Kullu

Palampur

Himachal Pradesh Punjab

The road to Palampur is less travelled, though it is just an hour’s drive from Dharamsala. Norwood Green assists their guests in exploring the valley which has plenty of activities to offer for all kind of travelers. It’s a treat for the artists to experience the Sobha Singh art gallery and trying their hands at the world famous Andretta pottery. For diehard adventurers, jumping from 8000 ft. above sea level is an experience in itself, as BIR/ Billing is among Asia’s best sites for paragliding. Apart from taking off from the mountain top, there is rainbow trout fishing, mountain bicycling, as well as trekking in the forest which the resort organizes for its guests. There is plenty to do for all age groups and interests. Reaching Palampur • Daily 2 direct flights from Delhi to Dharamsala airport, from airport to Palampur it is a 1 hour drive. Pick up can be arranged. • Overnight comfortable train from Delhi to Pathankot, from railway station to Palampur it is a 2:30 hour drive. Pick up can be arranged. • Driving time from Chandigarh to Palampur is approximately 6 hours.

Pottery person incharge ‘Juggal’ ‘Andretta pottery is studio kind of pottery very different from commercial pottery. Our’s is terracotta glazed pottery, we put in a lot of effort as it is all hand made. Guests attracted to Pottery making is good for us, as they come to understand the difference between the studio and commercial pottery.

Tea Estate ( Himalayan brew) person incharge ‘Rajiv Sood’ ‘We make Kangra tea all organic, sell it all over India and even export to UK. Tourism is great for us as people become aware about the Kangra tea and its health benefits, the word of mouth spreads, great boon to the Kangra tea industy.

Taxiwala and tour guide: ‘chunni lal’ ‘Norwood Green ke guestoo se mujee bahut faida hota hai, meri gaadi chalti hai aur hamara area promote hota hai’. Norwood Green guests are valuable for me as they pay well. My taxi is utilised and our local area gets promoted.

Chaiwala at scenic view point: ‘ID’ ‘Dur dur se log aate hai, pehle main chai bechta tha aur ab momo’s aur noodles bhi bechne lag gya’. People come from far away places, I used to sell tea earlier but now I also sell momo’s and noodles.

Paragliding & Fishing: Person incharge ‘Goli’ ‘Meri income badh gayi, guest ke aane se. Aur ache logoo se milne ko milta hai.’ My income has increased because of guests and I get to meet a lot of good people.

Trekking guide: ‘Suresh Kumar’ “Kamai achi hoti hai aur, hamare jungle bhi bahut khoobsurat hain, jinko dekh kar ghumne wale bhi khush hote hain”. Its great business for me, our jungles are beautiful and guests have great time exploring them. ?TEAM DI

LITTLE NUGGETS

Battle of Imphal Tours bring New Impetus to Tourism in Manipur Young entrepreneur, Hemant Katoch, from the hills of Himachal has taken flight to the landscapes of Imphal in Manipur and remains determined to discover both its history and beauty and reveal and share it with the world.

Hemant Kochar is the Managing Partner of Eastern Heritage Trails, Visiting Fellow at the Centre for Northeast Studies and Policy Research at Jamia Millia Islamiya, and the Coordinator of INTACH's Manipur WWII Project.

hat inspired you to take up Imphal? I had been out of the country for some years and wanted to come back. But I did not want to return to an office job in Gurgaon or Mumbai. Manipur has fascinated me since 2009, which is the first time I visited Imphal for a friend’s wedding. As I read more and more about the place, I stumbled upon its experience of the Second World War and was amazed about the Battle of Imphal of 1944 – its importance, ferociousness, the number of casualties, and so on. Since no one seemed to be doing much to find out more and promote it at the time, and realizing that 2014 would be the 70th Anniversary of this

key battle, I figured why not move there and do something about it myself. What is the core essence of what you are selling? A chance to discover and experience an incredibly interesting chapter of Manipur’s, India’s and indeed the world’s history is what is on offer with the Battle of Imphal Tours. And we are not talking about the kind of history that is dryly and boringly taught in schools across the country. Instead, through our tours you get to learn about, see, and get a feel for the dramatic events that took place nearly 70 years ago. The fact that the setting for all this is Manipur, surely one of India’s most uncharted states and where South Asia meets Southeast Asia, only adds to the entire experience.

The Battle of Imphal Tour TOUR HIGHLIGHTS IMPHAL-KOHIMA ROAD: This road was during the Second World War – and remains today – Manipur’s lifeline and main connection to Imphal War Cemetery the outside world. KOIRENGEI AIRFIELD (OR IMPHAL MAIN): Of the six airfields constructed in the Imphal Valley during the War, this was the most important one. KANGLA AIRFIELD (OLD SITE): These paddy fields just outside Imphal were the site of the fairweather Kangla airfield during the War. UKHRUL ROAD: This was the road used by the Japanese Army to approach Imphal from the northeast during the Battle of Imphal. NUNGSHIGUM: This battlefield was the closest the Japanese Army came to the city during the Battle of Imphal. KHURAI THANGJAM LEIKAI MEMORIAL: This is the site of a Japanese air bombing in April 1943 that led to the largest loss of civilian lives in a single incident in Manipur during the War. PALACE COMPOUND: This point on the tour lies between the palace of the erstwhile Maharaja of Manipur and the historic Govindajee Temple. IMPHAL INDIAN ARMY WAR CEMETERY: This Second World War cemetery contains the graves of Muslim soldiers of the British Indian Army, as well as a Commemoration Memorial which marks the cremation of Hindu and Sikh soldiers. IMPH AL WAR CEMETERY: This Second World War cemetery includes the graves of Commonwealth soldiers, including Indians, Britons, Australians, Canadians, East and West Africans, and Burmese (Myanmarese). SLIM COTTAGE: This colonial-era cottage inside the Kangla Fort Complex is where General William Joseph Slim, the commander of the British 14th Army, lived for a while in 1944.

What has been your success so far? Our biggest success so far has been to get people to start – however slowly and tentatively – taking note of and recognizing the 1944 Battle of Imphal for what it truly is – one of the most intense, ferociously fought and significant battles of the Second World War. I am happiest about the fact that this recognition is taking place first and foremost in Manipur itself today. Regarding the physical product, how good are the facilities that you are marketing like transport, hotels, food, etc. Let’s be clear – there is no doubt that the Northeast of India is lagging behind the rest of the country in terms of touristfriendly facilities. Manipur is not an exception in this regard. And yet, the situation is changing rapidly and newer and better facilities are coming up even as I write this. Take the example of Manipur and its capital Imphal itself. Where none existed even as recently as mid-2009, today there is a fine three-star hotel in Imphal, the Classic, whose service matches and in fact exceeds that of any similar hotel in India. Moreover, two four-star hotels, including one by the Classic, are under construction and can be expected to become operational before the end of 2014. As for food, for those who have never tried it, all I can say is Manipuri food has got to be one of the tastiest and most varied in the country! What is the present status of tourism in that region? Tourism in Manipur is still at a nascent stage. But as noted above, the picture is not static and lots is either happening or is in the pipeline. From the opening of the Classic Hotel; to the designation of Imphal as an international airport; to the lifting of the Protected Area Permit (PAP) for Manipur, thereby allowing a foreign tourist to just board a direct flight to Imphal without

any additional permits; to the emergence of medical tourists from Burma/Myanmar into Manipur; to the planned start of a direct bus service from Imphal to Mandalay – all of these hopefully signal the beginning of the long march ahead for Manipur’s emergence as a tourist destination. What is the scope and how can that be achieved. I will plagiarize from one of our Battle of Imphal Tour brochures to capture in a single paragraph what Manipur has to offer, besides its Second World War heritage: “Throw in to the mix one of India’s least known and tastiest cuisines; festivals and traditions that are yet to suffer from over-packaging and exposure; a very comfortable climate; people proud of their culture and history; stunning landscapes that are never more than a 15-minute drive away (from Imphal); the thrill of having an international border with Burma/ Myanmar nearby; and what you have is a place just waiting to be explored.” That should give anyone at least an idea of the

Manipur

The Victoria Cross Tour TOUR HIGHLIGHTS THE SILCHAR TR ACK: It was for their actions in June 1944 along this Grave of Abdul Hafiz, VC road, also known as Old Cachar Road or Tongjei Maril, that a Victoria Cross each was awarded to Naik Agansing Rai and Subedar Netrabahadur Thapa of the 5th Royal Gurkha Rifles. NINGTHOUKHONG: It was for their actions in June 1944 along this small turel or river that runs through this town (then a village) that a Victoria Cross each was awarded to Sergeant Hanson Victor Turner of the West Yorkshire Regiment and Rifleman Ganju Lama of the 7th Gurkha Rifles. Silchar-Bishenpur Track (Old Cachar Road) RUNAWAY HILL: It was for his actions in April 1944 on this hill next to Nungshigum just north of Imphal that Jemadar Abdul Hafiz of the 9th Jat Regiment was awarded a Victoria Cross. IMPHAL INDIAN ARMY WAR CEMETERY: This Second World War cemetery is home to the graves of Muslim soldiers of the British Indian Army, as well as a Commemoration Memorial which marks the cremation of Hindu and Sikh soldiers. Jemadar Abdul Hafiz VC is buried here. IMPHAL WAR CEMETERY: This Second World War cemetery is home to the graves of Commonwealth soldiers, including Indians, Britons, Australians, Canadians, East and West Africans, and Burmese (Myanmarese). Sergeant Hanson Victor Turner VC is buried here.

Personally, and I know others might disagree, but I am against marketing the entire North east as a single tourism product. For the term ‘North east’ masks within it tremendous diversity. Each state is different and unique in its own regard, with its own particular history, culture, people and geography and, ideally, should be explored separately to savour and discover it fully.

Loktak Lake

INA Memorial Complex, Moirang

scope for tourism here. Manipur’s tourism potential can be achieved, at one level, by ensuring that any domestic and foreign tourists who visit are provided a comfortable and, importantly, safe stay in the state. The other elements are not rocket science and apply to the development of tourism in any part of the country – from ensuring a quality product

Imphal Indian Army War Cemetery

to marketing it to a potentially interested audience in an attractive manner, among others. Building awareness about Manipur and marketing what it has to offer is perhaps key here, especially in a context where most people still know precious little about the entire region of India that is east of Kolkata. The onus for this lies above all on the people and authorities of

Manipur itself. There is the larger tourism product of the North East - can this be marketed together as a single product? Personally, and I know others might disagree, but I am against marketing the entire North east as a single tourism product. For the term ‘North east’ masks within it tremendous diversity. Each state is differ-

ent and unique in its own regard, with its own particular history, culture, people and geography and, ideally, should be explored separately to savour and discover it fully. If Tamil Nadu, Kerala, Karnataka and Andhra are rightly marketed separately, then why not Assam, Manipur, Nagaland and Arunachal Pradesh? ?As told to NAVIN S BERRY Shenam Saddle, Tamu-Palel Road

The Tiddim Road Tour

The Shenam Saddle Tour

TOUR HIGHLIGHTS INDIA PEACE MEMORIAL: Also known as India Peace Memorial, this is the only Japanese Memorial in India. It is located on the foot of Red Hill. RED HILL: The site of a fierce battle Japanese War Memorial, Maibam at the end of May 1944, this hill (also known as Maibam Lokpaching) is the closest the Japanese came to Imphal from the south. BISHENPUR: We pass through this key town on the Tiddim Road from where the Old Cachar Road (or Tongjei Maril) branches off. Also known in War memoirs as the Bishenpur-Silchar Track or the Silchar Track, this road saw intense clashes between the Japanese and British forces in 1944. POTSANGBAM: This stop on the tour lies between the villages of Potsangbam and Ningthoukhong, which saw some of the heaviest fighting on the Tiddim Road during the Battle of Imphal. Ningthoukhong: It was near the small Ningthoukhong ‘turel’ or river that runs through this thenvillage (now a small town) that two Victoria Crosses were awarded in June 1944. INA MEMORIAL COMPLEX, MOIRANG: The only such INA Complex in the world, this includes a statue of Netaji Subhash Chandra Bose, an INA Museum, the spot where the Indian tricolour was hoisted for the first time on the mainland, and a replica of the original INA Memorial whose foundation stone was laid by Netaji in Singapore in 1945. SENDRA, LOKTAK LAKE: Top of the to-do list of every visitor to Manipur, this spot offers excellent views of Loktak Lake, the largest freshwater lake in northeast India. TORBUNG: Located just beyond the village of Torbung, this stop centres on the site of a British roadblock behind Japanese lines on the Tiddim Road in May 1944. KEIBUL LAMJAO NATIONAL PARK: The only floating national park in the world, it is also the sole home of the endangered brow-antlered deer called the Sangai.

TOUR HIGHLIGHTS KAKCHING GARDEN: The hilltop Kakching Garden is a popular tourist site in Manipur. It also affords a rare, albeit distant, view of what remains of the all-weather Palel Airfield of 1944. TAMU-PALEL ROAD: As in the Second World War, this scenic and winding road remains the most easily navigable route between India and Burma/Myanmar. SHENAM: It is this small and quiet roadside village, today known as Sinam, which lent its name to the entire position known as the Shenam Saddle in British war memoirs and accounts. RECCE HILL: At 5,259 feet, what the British called Recce Hill was the highest point of the Shenam Saddle. Trenches and dugouts from 1944 can still be seen on this hill. GIBRALTAR / LAIMATOL: This most precipitous of all the hills (and battlefields) along the road was called Gibraltar by the British and Laimatol by the Japanese. Both British and Japanese names have similarly been used for the other hills below. SCRAGGY / ITO: Evans and Brett-James provide the best description of this hill and the fierce fighting on it when they say, “Scraggy was the British soldier’s idea of what the First World War battlefields of the Somme had been like…” NIPPON HILL / MAEJIMA: Fiercely fought over for days, this hill near Tengnoupal was finally captured by the Japanese in mid-April 1944 and remained in their hands until July. En route, we also pass under the hills and battlefields named MALTA / YAJIMA; FUTAGO / CRETE WEST / KAWAMICHI; and CRETE EAST / IKKENYA. KHONGJOM WAR MEMORIAL COMPLEX: This stands on the site of the most important battlefield of the Khongjom War or Anglo-Manipuri War of 1891.

TOURISM IS EVERYBODY'S BUSINESS

How does “Destination India” connect with the world of the youthful India – how incredible is it and to what extent does it do justice to the rich diversity of our land. More importantly, how do young Indians respond to the beauty of our country? Read On. And what about the enigmatic name of the campaign, Incredible India? Is it appropriate to attract people from all over the world? We interview a cross section of young minds. The mixed responses left us asking – how much campaigns can do to excite the imagination of travellers in India and overseas. Whatever, the youth definitely loves their country for its beauty and diversity.

“Safety of the people is real concern” Mini Mittal

A fashion designing student on a trip to Goa

I have read that Incredible India has launched great campaigns in other countries. They have organised road shows in Japan, draping Japanese auto drivers in Incredible India T-shirts and colorful Rajasthani turbans. Recently they have also launched a calendar which depicts India as a great tourist destination to visit all round the year. India in fact, has lot to offer – Some people come here to experience a spiritual high and some come for its diverse culture. India has also grown into a MICE destination. When I open their website, I can see India can cater to my different interests – adventure, wildlife, beaches; India has it all. They have great tour plans to suit everyone’s requirement – Short 2 day trips and also a 23 day trip which covers the essence of all major Indian states. All this looks really exciting and can surely allure the foreigners. But I feel the challenge is not only about attracting foreigners to visit our country. It’s also about making their experience great while they are here. It’s about making the people of India feel proud about their country and because of the recent cases India has depleted its reputation as a guest-friendly country. It’s not even safe for the people of the country. Besides great marketing and advertisement, real work needs to be done. The name of the campaign should play on the diversity that one can find here. Incredible means impossible to believe, which doesn’t really tell much about India.

!ncredible india is an appropriate name as India is incredible in itself. It is a true mix of traditional and modern values, ancient and most advanced architecture and the name says it and the exclamation mark used in !ndia clearly marks the exciting trip our country has to offer. Campaigns like these are need of the hour to preserve, beautify and project our monuments, heritage and culture in a way which can attract more and more tourists bringing lots of foreign currency. The theme chosen by the campaign in each of their advertisements educate people on how they can contribute in promoting Indian tourism, which is great. Different tours started by them like women’s only and for the eco tourist are very unique and perfect! I think they can make their website more attractive and informative by adding more pictures and videos. It needs to catch eyeballs as that’s where a traveller starts his journey. It’s a sheer delight to have such campaigns and would like many such campaigns to come forward.

“Needs More campaigns to promote Incredible India” Shweta Khurmi

A 23 year old Engineer on a trip to Jaisalmer

I think this campaign ‘Incredible India’ is a landmark development for encouraging and endorsing the Tourism Industry. India, being so culturally rich and geographically Rishabh Nagar diverse, has the potential A 24 year old Engineer, to become an exotic tourist preparing for MBA on a trip to destination, which lately, Jaipur due to the effect of the campaign is happening. With the campaign’s arms stretched out from the beautiful paradise of Kashmir to the God’s own country Kerela, I think it is the best foot forward by the government of India to endorse and encase our country’s pride – our ‘culture’. If fully exploited, we can really grow as an economy, and bring back the $ to INR ratio down. If we could do it with our present resources, I would be proud to say that I belong to the ‘Incredible India’. India is Inspiring, Inspiriting and Irreplaceable in my heart. It is, indeed, ‘Incredible India’.

“It is, indeed, ‘Incredible India’”

“The phrase ‘Incredible India’ is vague”

India excites me a lot. Some of the activities like garba in Gujarat, ganesh visarjan in Maharashtra, and flying kites on Independence Day are really exciting. But then there are so many other places to see and things to do in India, and everything has its Shraddha own charm and thrill. Because of Incredible India, I have gained knowledge about many parts of the country of which I was not very Srivastava A 27 year old Freelancer Journalist well aware before. My next destinations in India are Cherapunji, on a trip to Pune Leh and Ladakh which have a breath taking view, and very healthy, interesting cuisines. When I think about it, I’d want to be a traveler and a guide. I think Indian government is making a lot of effort in promoting India as a tourist destination but many people still don’t know about “Incredible India”. The phrase itself is vague and does not even give a glimpse of the country. I would prefer something like Thailand which is the land of smiles and Bali is all culture as the promotional phrase. Recently I have been with many foreigners. Some of them called themselves blind as they didn’t know where to go and what to do. There is a lack of guides at the airport, and the only people they depend upon are the local taxi or rickshaw drivers. So, obviously if it’s Incredible India, then they should provide some proper guiding tools to the travelers and show them how it’s incredible. Their website is elaborative and has covered almost all the states in India but they should design it in a way that it becomes user friendly and attractive.

I am happy that finally Indian government has taken some wise steps and launched this wonderful campaign- Incredible India. Being a marketing person, I like the way they are marketing it via the broadcast and digital fronts. It’s exciting to see some of the big stars like Amitabh Bacchan and Amir Khan coming up on TV, telling about our country and reminding the people of the country our age old tradition of “Atithi Devo Bhava” which people seem to forget now. The campaign has also organised many ‘Women Only’ tours which will let women enjoy the companionship of the same gender and many would opt to travel in these trips as they would feel free and safe. Hope the same binge and enthusiasm persists while actually hosting the tourists. I have been to most of the hill stations in the last couple of years and Garima Juneja have found positive development. So A 23 year old co-founder of yes! India is becoming incredible and a web content company on a the name of the campaign proves to be trip to Kullu Manali true to its essence!

“Campaign proves to be true to its essence”

‘Incredible’ – the adjective attached with Indian tourism is very right in its place. It showcases India as the land of mysteries and much more than one’s imagination can hold. India is not only a land that has a variety of culture but is also a place of explicit beauty and such a place needs to be advertised for the world to know what it is that they are missing out on. With the growing publicity of the campaign, I see more and more people getting attracted. Also, with the new campaigns where the focus is on women safety issues and the floods that affected the Uttrakhand region, it will help people in India and all over the world to realize their responsibilities and to try making India a better and safer place to live in. It’s also great to hear that tourism has boosted up tremendously. I feel proud that more people want to come to our country and they acknowledge the presence of India as a great country – the Eshita Bhatnagar !ncredible India. A 21 year old English Hons. Student on a trip to Bombay

“New campaigns will help people become more responsible”

?As told to SHWETA MITTAL

TOURISM IS EVERYBODY'S BUSINESS

“We should make tourists feel safe”

Sharman Joshi

India is vast, and its beauty is abundant. Sharman Joshi believes that it is a place which anyone would love to visit. But there are also a few hitches that need to be taken care of, to raise our tourism to the level we deserve.

hat is the image of India that comes to mind when you look at India’s tourism? From an outsider’s perspective, in my opinion, it is very intriguing; it is a very exotic place with a lot of culture and history. Taking cue from general discussions with people, I believe India is a place that anyone would love to visit. At the same time, there is a sense of little scepticism in terms of the security of the tourists, how they will be treated. This is because tourists have faced few depressing experiences in the past in India, where we were not exactly up to the mark in terms of etiquettes which becomes a worrying factor for foreigners visiting our country. This definitely needs to change very strongly and the change will come about only with education in general; where we can hope to have a large portion of our population more literate, and socially responsible, and understands the basic etiquettes required of society. It’s a long haul I understand, but in the mean time I believe for sheer promotion of tourism, we have had campaigns where ‘Atithi Devo Bhava’ run by governments, teaching us about how tourists should be treated, on lines of etiquettes and basic manners. We are a hospitable country in general and there is plenty of warmth in the country, but it has got to do more with the people who are in the forefront of getting tourists in the country. Like, the agents, hotels, from the cab drivers to the guides, staff, these are the people who matter, as they are the first ones to interact with the tourists and create an image of the country. If these sections are sorted, then I believe it will make a huge difference. What is your message to fellow Indians in terms of discovering India? Well, Ladakh is one place I had gone to for shooting and I was stunned by its beauty. It is such an exotic place that its beauty goes beyond than many well known international tourist destinations. We definitely have a lot to offer from the North to the South - we are a vast country with varied culture, climates and different architectural beauty and also geographically, all the places are so varied. I have also been to Andaman & Nicobar Islands, which took my breath away too, I have been to a couple of Caribbean Islands and the Andamans were more beautiful than them. There are so many serene beaches and little islands around, that it can be a spectacular place to visit. The only hitch being is to getting there - it costs a lot of money which is a big deterrent and the government can help in the same by subsidising these particular destinations which deserve promotion in terms of tourism. These destinations are where people would love to visit again and again, which will in turn will also help in the economic wellbeing of the local people living in that area. If these particular destinations are promoted, by way of subsidising the transportation, accommodation, etc, more people, Indian and foreigners would surely like to discover them.

What in your mind is the quintessential India experience? To experience the diversity that India offers, one has to go from North to South to know how beautifully varied we are. I too would like to do a drive one day from extreme North to South covering the main destinations on the way, discovering the geographical beauty, the climate, the architecture, the languages, the kind of lifestyle of people, and a lot more. We have plenty to offer. Everybody says that we have not realized our true tourism potential; we get only 6.5 million tourists while a smaller country like Singapore gets over 10 million. Where do you think we went wrong and what more should we be doing? There are some basic practical approaches which need to be taken care of. Like, we should make tourists feel safe in our country and this can be done by the government, people who most importantly matter in making proper arrangements for the security of the tourists should be monitored properly. We should have an absolute check on everything and ensure there are no gaps in between. Once the message concerning the security of the tourists goes across to the people in our country and to the foreigners, this will bring a sense of confidence to the tourists. Apart from this, some popular destinations which are spectacular and go beyond many international beauties too should be made more within the economic grasp of the people, so that more tourists come to experience them. For example, when you go abroad, there, such hula is created around even a castle which has a history of just 50 – 100 years old, that people are interested to go there and discover what it is all about. Whereas, we have many places with a history of more than a thousand years but we are not projecting them in the right way. A couple of professional heads should come together and create an environment around these beautiful structures that is conducive for tourism. We should get inspired from the world, see and learn the positive things and take it forward.s. ?As told to NIKITA CHOPRA

we have many places with a history of more than a thousand years but we are not projecting them in the right way. A couple of professional heads should come together and create an environment around these beautiful structures that is conducive for tourism.

7th ANNUAL EDITION PROMOTING

Cinema Tourism The networking forum where leading producers from Mumbai cinema, both from the big and small screen, meet with providers and facilitators of ideal destinations suitable as cinemascapes, promoting cinema tourism. Delegations and representatives from countries, state governments and individual location providers will exhibit and promote their products exclusively promoting cinema tourism conference and B2B meet with Bollywood

7th Annual Conference & Expo

October 19th–20th 2013. Juhu Novotel Mumbai MESSAGES

Mukesh Bhatt

President, Film & Television Producers Guild of India

Ramesh Sippy

Renowned Director & Producer and Senior Member, Guild

Cinemascapes, as we all know, has emerged as a viable platform I am glad to note that Cinemascapes has provided for the stakeholders from the tourism and film/television industries this platform and over the years since its inception to brainstorm on important matters of mutual interest and utilize in 2006, a host of tourist companies and organizathe takebacks of the event to broaden their long term perspective. tions from countries all over the globe have utilized Cinemascapes has well and truly carved a niche for itself – what Cinemascapes to showcase not just their scenic with the ever increasing response of delegates for the events from beauty and picturesque landscapes but also apa year on year basis providing ample testimony to its growing prised the delegates about the various incentives popularity. What essentially began as an event to channelize the offered at their end. enormous potential in the dalliance between the tourism and film Over the years, Indian cinema has traversed various sectors, has now exceeded the aspirations of its founders and has cities and countries across the world and depicted reinvented the very dynamics of the term coined as ‘Filmed Tourthe wholesome wonders of these locales thereby ism’ which has engulfed a number of developing Indian cities in its harnessing or in some cases multiplying their wake not to speak about the various countries who have displayed tourism quotient. At the other end of the spectrum, their beautiful locales for the past 6 or 7 years. Indian audiences get a glimpse of breathtaking As an active producer, I have been privileged to shoot in more visuals and natural beauty of countries they may than 20 countries and from a personal standpoint, I do understand or may not visit in their lifetime. the nitty gritties and obstacles involved in shooting abroad. We This event is not just a conglomeration of intelligent producers, do encounter infrastructural and production hurdles minds from the tourism and entertainment worlds in many countries and Cinemascapes last year tried to address of India but also a meeting ground to explore new this problem by organizing a myopic and introspective session co-production arrangements and deals through the on ‘Line Producers’ involving the brightest minds ofConfederation the film & one-to-one interaction Industry gateway. of Indian tourism industries. Cinemascapes – the annual conclave supported by From the Guild’s perspective as its President, it is my pleasure to the Film & Television Producers Guild of India – is witness this sapling of Cinemascapes slowly but surely growing aimed at collaborating the efforts and thoughts into a fully developed tree which has integrated the mutually deof the tourism and entertainment industries. The pendent tourism and film worlds under its shade. My best wishes synergies of both the industries needed to be to Cinemascapes and a warm round of thanks to Mr. Navin Berry combined and integrated for mutual benefit and and his Cross Section Media Company for joining hands with the an opportunity for experts from both sectors to Guild in this landmark initiative. interact with each other was the need of the hour.

ANCHOR PARTNER

Javed Akhtar

Chairman, CII National Committee on Media & Entertainment Everybody is familiar with the locations, rather cinema scapes, that the film industry patronises, and glorifies, and thereby promotes to the world through hundreds of films shot every year. But what is not often talked about is the challenge of going about, finding and shooting in new and diverse cinema scapes within India and also overseas. There are the usual problems of getting the logistics right keeping costs in control, keeping time under check, and getting the shooting done without a glitch, while interacting with the authorities, with the weather gods, and a sundry other imponderables. There is coordination required at various levels. Line producers become the anchors at every destination. And the platform of Cinemascapes, over the years, has been growing in stature, by providing an annual check-in on cinema scapes across the Confederation globe. The Film fraternity and the tourism industry get together and exchange news and views on what the current trends and practices are. We are confident that the 7th annual edition will mark yet another step forward in this discovery. I with the event every success.

INDUSTRY ASSOCIATION PARTNER

Confederation of Indian Industry

Nakul Anand

Chairman, CII National Committee on Tourism We at Cll are delighted to come on board the prestigious Cinemascapes event for this year. Cinema Tourism is a growing niche market for our country, both for film producers within India, but equally for foreign producers. There is a growing understanding of how cinema tourism works, how effective the backdrops of films provide an incentive for the audience to visit the countries and destinations that are showcased. Cinema as a marketing tool for tourism promotional activity is excellent value for money spent, a great return on investment. As CII is the leading industry body in the country, we are excited about this new partnership. Our endeavwould be to bring to the table of our Indian Industry our resources to reach out to industry at large, and also to the tourism industry in particular, in spreading this importance of the film medium and to bring about a vibrant interaction at the event. We wish the event all success.

TRADE MEDIA PARTNER

Confederation of Indian Industry

From exhibiting to diverse partnership opportunities, contact us for details Contact Aditya on 09818691730; Email: cinemascapes@crosssectionmedia.com Website: www.cinemascapes.co.in

ORGANISERS