India has proclaimed 2009 as ‘Visit India Year’. Certainly it is a big bang official approach to promote India-bound Tourism braving expressions of concerns like the economic downturn and impact of Mumbai terror attacks that are holding back committed tourists with a shortfall in tourist arrivals. In spite of the drop in numbers, India’s charm as a hot destination for tourists continues undiminished, as the following facts attest to that claim.

But the good news is that things are changing. Happy tidings are there again- notwithstanding negative forecasts, the tourism sector in India is going to be rebound this season. Negative sentiments are moving out and a revival is in sight—the tourism sector clocked a 7.6 percent growth in foreign exchange earnings in April 09, compared to the same period last year. The month of April posted significant improvement in foreign tourist inflows; compared to a sharp decline of 18 percent in January. In April there was only a 3 percent decline in foreign visitors.

According to Tourism Ministry, in December 2008, about 5, 21,990 tourists came to India - a 12.5 percent decline compared to December 2007. In January 2009, 4, 87,262 travellers came to India, which was 18 percent decline compared to the same month of 2008.

Campaigns

This grave turn around can be traced to the promotional activities started by the Union Government that led to more revenue per visitors and augmented the inflow of foreign exchange. Among the promotional activities are free air tickets for companion of a foreign tourist; travel to additional places and extended stay at hotels. Roadshows organised by the Tourism Ministry in major markets such as the UK, Australia, Canada, Singapore and Malaysia are also bearing results.

Other sops being finalized include a proposal to offer free treatment for any additional ailments to a person visiting India for any major surgery. For sight seeing, the ministry has a package to offer a luxury tour to southern India on the Deccan Odyssey.

Roadshows

Indian Association of Tour Operators (IATO), in collaboration with the Ministry of Tourism is organising roadshows across traffic generating markets to boost tourist traffic to India. IATO President Vijay Thakur led a delegation of about 30 stakeholders, including tour operators and hoteliers, to five US cities of Boston, Chicago, Los Angeles, New York and San Francisco as well as Canada in May, to hold business-to-business roadshows.

The roadshows which began in February will run through October and cover tourism generating markets of Australia, Argentina, Europe, Ireland, Japan, Korea, Malaysia, Mexico, Singapore, Thailand and the UK.

Aiming to bring back tourists to India through the roadshows, the tourism industry hopes to recover losses it suffered due to the declining tourist arrivals, particularly after the Mumbai terror attacks.

Thakur said, “We want to take the fear away from the minds of Americans and tourists from other nations and tell them that India is safe. While it may take time for the industry’s growth rate to pick up pace, we hope to at least be able to cover our losses”.

The association is hopeful that once the global economy bounces back, business and subsequently leisure tourism will pick up pace too. Thakur said new offerings like rural, cruise and medical tourism are also being promoted through the networking events among a plethora of other offerings including complimentary air tickets, free stay at hotels and new rural sites for tourists to explore.

Commonwealth Games

The upcoming Commonwealth Games 2010 in New Delhi is going to play a significant role to attract tourists. Hoteliers in the country are rushing to make the most of the likely spurt in tourist traffic, leading to a boom in development. Global consultancy firm Deloitte ascertains, “In 2010, India will host the Commonwealth Games for the first time, and hoteliers here will be hoping to emulate the success of Melbourne, which was the host in 2006,” it said in a report, ‘Hospitality Vision-Global Performance Review’.

“International and domestic hotel chains are rushing to maximise India’s potential by providing new rooms, leading to a boom in development. Mumbai and Delhi are expected to see an influx of new rooms in 2009, with 305 going to New Delhi’s inventory and Mumbai possibly adding 1,158 rooms into its market,” it added.

The report also exudes confidence that notwithstanding the economic slowdown and Mumbai’s terror attacks in November 2008, India will make a mark as a preferred tourist destination globally. The negative events can deter visitors only in the short-term, but tourists quickly come back.

Revival Inevitable

Reassuring the industry on a faster revival, Mr. Amitabh Kant IAS who was Joint secretary in the Union Tourism Ministry, in his recent book, “Branding India: An Incredible Story” affirms, “I have no doubt that the tourism industry will be resilient to bounce back as it did post-September 2001. Tourism has a unique capacity to adapt and survive. It has constantly demonstrated its extraordinary resistance and ability to overcome crisis. External events impact tourism only temporarily — they redistribute it geographically and alter product use but are not able to bring it to a halt. The need for travel, for business as well as leisure, is an intrinsic part of our lives.”

The bureaucrat looks at the Incredible India campaign in the aftermath of the crisis that confronted Indian tourism in 2001-02, after the September 11 World Trade Centre attack in the US. Noting that the bad effects of 2008 terror attack can be addressed by a cohesive, concerted response, he calls attention to the potential of foreign exchange earnings from tourism, which rose from US$3 billion in 2002 to US$11.5 billion in 2008.

The VISA/PATA Asia Pacific Travel survey ‘Determining Travel Preferences in 2009 and Beyond’ also says that global economic scenario may impact tourism, but that will not bring all travel to a standstill. The travellers will be more creative in their selection of destinations and only 36 percent will postpone their travel as a result of economic uncertainty.

CII Initiatives

The northern chapter of CII, which had been working on a series of initiatives such as the North India Tourism Conclaves for adding efficiency to the service user, service medium and the service provider of the tourism industry to showcase their products and services for sustainable growth of tourism industry in north India, is quite upbeat about the times ahead.

In view of the Commonwealth Games, it wants to create cross-linkages between tourism and other activities and to understand how tourism can have a multiplier effect on socio-economic development, and for developing a mechanism for continuous engagement for maintaining competitiveness in the region.

The Tour 2006 & 2007 Conclaves by CII explored ways to enhance competitiveness of the tourism sector and had Hyatt Hotels, Choice Hotels, Clarks Group of Hotels, Bird Hospitality, Taj Hotels, Maya Hotels, Orchid Group of Hotels, Donnaday Hotels, and ITC welcome Group attending it.

Tax Rationalisation

The PHD Chamber of Commerce and Industry (Phdcci) is for rationalisation of tax structure in tourism sector to increase revenues. Its event ‘Tourism Development Synergising Northern Region States’ noted that New York, Singapore and Kaula Lampur offer examples of low taxation on tourism Industry resulting in increased revenues from heightened tourism activity. Rationalisation and harmonisation of the tax structure is, therefore, important and overall revenue collection of the state will go up if taxes are reduced.

With a dedicated approach to face the challenges together, the Tourism sector is very charged up. Innovative marketing strategies will further add buoyancy to the sector. After all it is a sellers market.