For the second year running, and in response to widespread demand, India will once again be the subject of an Experts’ Forum during the…
For the second year running, and in response to widespread demand, India will once again be the subject of an Experts’ Forum during the ITB Convention.
“In the last few years the country has firmly established itself on the world tourism map as a key destination for business and leisure travellers,” says Professor Dr Roland Conrady, Academic Director of the ITB Convention. “And prospects for growth are enormous thanks to the country`s stable political environment, its strong economy and continuously improving operating and investment climate.”
To quote statistics from India’s Ministry of Tourism, published by the World Tourism Organization (UNWTO), India recorded a 13% increase in international tourist arrivals in 2005 and preliminary estimates suggest that receipts rose even faster, at 20%.
But India is also a fast growing source market for travel and tourism. With a population of over one billion and GDP growth of 7-8% per annum, the country offers enormous potential for growth in outbound travel. As participants to the ITB India Forum in 2005 learned from Bernhard Steinrücke, Director General of the Indo-German Chamber of Commerce, who led last year’s panel discussions, its increasingly affluent middle class already numbers 300 million. Per capita income is increasing by 4-5% a year, said Mr Steinrücke, and per capita expenditure is rising by more than double that percentage – at between 10-12%. It is little wonder that spending by Indians on outbound travel increased by over 50% in the first three quarters of 2005, according to UNWTO.
The ITB Experts` Forum India, which takes place at the Lecture Theatre New York 3 in Hall 7.1a on Wednesday 8 March, will once again feature a strong panel of speakers, led by Mr Steinrücke, and comprising leading political and business figures from India. They will provide their views on the country`s economic strengths; the significance and structure of India`s tourism industry; current trends in inbound, domestic and outbound tourism; air transport developments; and growth prospects for each sector.
This is clearly a boom time for India’s travel and tourism, as reflected by the large number of participants representing the country at ITB this year. In 2005, as many as 36 organisations, comprising tour operators, hoteliers and other service providers, took space at the India pavilion, along with officials from tourism departments of 17 state governments. Some major hotel chains, such as Taj, Oberoi and ITC Hotels, exhibited independently outside the India Pavilion. And, if the ‘floating’ participants are added to the count, Team India probably exceeded 200 professionals.
The growth in inbound tourism – India achieved record arrivals and receipts yet again in 2005 – has largely been attributed to the Incredible India campaign that was launched in 2003. But it also owes much to strides made by the country’s economy in recent years. And with many initiatives in place, especially in upgrading infrastructure like roads and airports, the country is poised for significant growth in 2006.
The most heartening developments have been in aviation which, until a couple of years ago, was neglected by successive governments. One development which is already having a far-reaching positive impact on Indian tourism is the emergence of low-cost carriers. But there are other positive developments. Privately owned domestic carriers are now flying to neighbouring countries, as well as to the rest of the world. The bilaterals` regime has been liberalised and `open skies` is the buzzword in the corridors of power.
Meanwhile, India’s hotels have never had it so good. High occupancies and higher yields have spurred them to greater investments – although room shortages, particularly in metro cities, are causing concern to planners. The relaxation of rules on foreign direct investment (FDI) – 100% ownership by foreign companies is now permitted – is further stimulating investment from abroad.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
