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Nepal Tourism Board
Tourist Service Center P.O.Box: 11018, Bhrikuti Mandap, Kathmandu Tel: 977 1 4256909, Fax: 977 1 4256910 Email: email@example.com
Pardi, Pokhara, Tel: 977 61 465292 Email: firstname.lastname@example.org
Tourist Information Centre
Tribhuvan International Airport Tel: 977 1 2061011 Email: email@example.com
Concept and Design Research, Planning and Monitoring Department
As part of Nepal Tourism Board’s annual programme, Nepal Tourism Board has commissioned a research on India Consumer Outbound to Falcon Infocomm Pvt. Ltd., a Delhi based public relations and research consultant. The main aim of the research is to gauge the market dynamics in the Indian outbound tourism that will help chalk out strategies to Nepal Tourism Board and tourism entrepreneurs in Nepal.
© Nepal Tourism Board 2010
India Tourism Outbound Nepal Perspective
Indian Middle Class is emerging as the largest number generator. 3. There is a need for one consolidated promotion strategy which should include Nepal Tourism Industry and Indian Tourism Industry where Nepal Tourism Board can play role of a facilitator. 7. Malaysia and Thailand now occupy these slots. Singapore. With increased wealth. 6. . 5. Nepal should focus on promotions in secondary cities as this shall help in higher numbers and lower acquisition cost per traveler.Executive Summary 1. Vernacular language promotion mediums should also be considered. Indian Tourist does not consider Nepal as a low end International destination any more. Mussoorie and Agra. The rapid growth of Indian Economy has resulted in manifold changes in the way Indian Tourist travels. Indian Tourist is still apprehensive about security concerns in Nepal. These destinations have very high domestic travel movements and include aspirational travelers who could be converted into travelling to Nepal. Nepal needs to position itself as a travel destination competing against Indian Domestic Travel destinations such as Nainital. The Indian Tourist is now well informed and is travelling much more than ever before. 2. 4.
Thailand and Malaysia Consumer Characteristics. Nepal on 25th October 2009 106 109 111 113 115 118 120 . Policies and Programs for Nepal Tourism Board to Attract Indian Tourists Recommendations & Guidelines for Nepal Tourism Board Annual Promotion Plan 2010/11 9 13 23 35 59 75 85 91 105 ANNEX Annex I Annex II Annex III Annex IV Annex V Annex VI Annex VII The Trends in Information. Communication and Technology in Tourism Development The Commonwealth Games 2010 Foreign Direct Investment (FDI) in Indian Tourism Role of Bollywood and International Tourism Boards References Research Questionnaires Responses to Queries Made during Presentation at Kathmandu.Contents CHAPTER Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Why India Matters? Overview on Indian Economy. Major Tourism Players of Focus Areas. Tourism Development and Creation of Wealth in the Last Decade Indian Tourism Industry – An Outlook Domestic Tourism in India Current Trends and Information on Key Outbound Destinations which are Competitive to Nepal Including Singapore. Outbound.Delhi and Surroundings and Mumbai and Surroundings Suggestions on Market Segmentation with Special Reference to Nepal Suggestions on Marketing Strategy.
1996-2008 Percentage Share of Top 10 States/UTs in Domestic Tourist Visits in 2008 Tourism Supply Chain Supply Chain and Tourism Volume Tourism Leverage Points Factors Influencing Visitor Behaviour 9 15 16 31 39 43 91 92 93 96 . 2005-2007 Percentage Shares and Ranks of Different States/ UTs in Domestic and Foreign Touris Visits during 2007 Share of Top 10 States/UTs of India in Number of Domestic Tourist Visits in 2008 Domestics and Foreign Visitors at 10 Most Popular Centrally Protected Ticketed ASI Monuments During 2007 Sources of Religious Tourists Indians Keep the Faith: Religious Tourism Booms in India Singapore’s India-Promotion Plan Socio-economic Parameters of Delhi and Mumbai Affluence Index of Delhi and Mumbai Outbound Movements from Indian Cities International Travel Matrix Characteristics of Family Holidays Characteristics of Young and Restless Characteristics of Young Working Couples Characteristics of Middle Age Consumers Characteristics of Religious Groups Characteristics of Retired and Leisure Holiday Makers Budget Activities Suggested Activities 10 21 27 29 30 32 39 40 41 43 44 53 53 61 77 78 80 83 87 88 88 89 89 90 101 105 FIGURES Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Figure 8 Figure 9 Figure 10 International Tourist Arrivals from India by Destination Region. 1996-2008 State/UT Domestic and Foreign Tourist Visits. 2000-2006 Number of Domestic Tourist Visits to all States/UTs in India. 2006 (%) Consumption by the Middle Class India’s Growing Middle Class Number of Indian National Departures from India.2008 Number of Indian National Departure from India 1996-2008 Destination-wise Indian Nationals Outbound Travel.Contents TABLES Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Table 18 Table 19 Table 20 Table 21 Table 22 Table 23 Table 24 Table 25 Table 26 Arrivals from India. 2000-2007 Detail Budget for the Year 2008-2010 Foreign Tourist Arrivals and Foreign Exchange Earnings Important Facts about Tourism . 1996-2008 Number of Domestic Tourist Visits to all States/UTs in India.
ABBREVIATIONS ASI BSE CFA CRM ERP FCI FTA FEE GDP GSS IIP ITES LCC MoT MICE MTPB NCR NTB STB PPPs TAT TSA USD UT VFR Archeological Survey of India Bombay Stock Exchange Central Financial Assistance Customer Relationship Management Enterprise Resource Planning Food Craft Institute Foreign Tourist Arrivals Foreign Exchange Earnings gross domestic product Great Singapore Sale Indian Industrial Production Information Technology Enabled Services Low Cost Carrier Ministry of Tourism Meetings. Incentives. Conventions and Exhibitions Malaysia Tourism Promotion Board National Capital Region of Delhi Nepal Tourism Board Singapore Tourism Board Public-Private Partnerships Tourism Authority of Thailand Tourism Satellite Accounting United States Dollar Union Territory Visiting Friends and Relatives India Tourism Outbound • Nepal Perspective 2010 7 .
In Asia. FIGURE 1. Southeast Asia has the largest share of the international tourist arrivals from India as shown in figure 1. July 2006.Chapter 1 Why India Matters? India is one of the fastest-growing outbound travel markets in the world. the main destinations for Indian outbound are Asia and Europe. 2006 India Tourism Outbound • Nepal Perspective 2010 9 . India Market Scan 2006. The UNWTO has predicted that by 2020 India will account for 50 million outbound tourists. cited in UNWTO. International Tourist Arrivals from India by Destination Region. accounting for 64% and 20% of the total outbound travel from India respectively. With more than 1. continuing to maintain its growth momentum. in 2007 the total number of tourist arrivals to India was 5 million and the number of outbound trips by Indian nationals increased by 17% over 2006 reaching an estimated 9. outbound tourism has already overtaken inbound tourism during the same period and is expected to expand further in the coming years.1 billion inhabitants and GDP increasing by more than 8% every year. The robust economic growth and impressive developments in Indian tourism in recent years have brought the country as a major force in the world tourism market – both for inbound and outbound tourism. According to 2006 data. 2006 (%) Australia/ a Oceania Afric as ric me A 9 5 2 20 Europe Asia 64 Source: Netherlands Board of Tourism and Convention. the country offers enormous potential for future growth in outbound travel. According to World Tourism Organisation (UNWTO). Thus.8 million. The average annual growth rate in terms of number of international trips made by Indians during the period 2000-2007 was 11%.
Bahrain.Chapter 1 Why India Matters? As shown in Table 1 indicates that the top five destinations for Indian arrivals are Singapore.. 20002006. 2000-2007 Destination Series 2000 Singapore Bahrain Thailand United States China Dubai. On an average. markets and competition.3 15.2 billion.0 7.0 13. Indian outbound to Nepal constitutes very negligible part while for Nepal in terms of arrivals it is the biggest source market. United Arab Emirates United Kingdom Saudi Arabia Hong Kong. this percentage represents Indian tourists arriving in Nepal by air only. However. Therefore.2%.000) 2001 340 247 206 270 159 218 189 313 162 144 60 34 62 2002 376 313 253 257 214 300 205 374 194 183 108 70 72 2003 309 351 230 272 219 325 199 363 178 145 127 91 83 2004 471 419 300 309 309 349 255 474 244 173 146 105 106 2005 584 467 353 345 356 358 269 117 273 226 159 113 116 2006 659 590 430 407 405 389 367 345 294 279 181 128 111 411 336 613 205 422 506 2007 749 Change (%). China Malaysia Qatar Sri Lanka Oman Source: UNWTO. According to the UNWTO in 2007.6 11. TCE = tourist arrivals at all accommodation establishments.4 16. Thailand. international tourism expenditure by Indians grew by 20% over 2006 reaching an estimated figure of US$ 8.5 23.3 195.8 AAGR (%). 14.3 – 4. 10 . 2006/ 2005 12.4 13.8 36.0 10. In 2008 and 2007 the share of Indian tourist arrivals to Nepal was 18.. THS = tourist arrivals at hotels and similar establishments Not only Indian tourists are important in terms of quantity also they are also recognized as having high propensity to spend during their travel.4 21.8 18. United States of America and China.6 8.3 17. VF = visitor arrivals at frontiers. 2009 Number of arrivals (×1. A strategic report provides expertise and helps gain a greater visibility into operations.5 9. TABLE 1. it is realized that there is a need for a strategic report on India in order to tap growing Indian tourism market as it is one of the most important segments when it comes to tourist inflow in Nepal. Arrivals from India.0 22.8 VF TF TF TF TF THS VF TF TF VF THS TF THS 346 214 203 274 121 215 206 294 131 132 62 32 52 TF = tourist arrivals at frontiers.9 26.6 13.1 14.3 39. Indians spent US $ 838 per trip overseas in 2007.0 26.
Research Methodology The report was a combination of desk research. India Tourism Outbound • Nepal Perspective 2010 11 . Malaysia and Thailand A comprehensive survey was also conducted to take feedback from the Tourism Industry and the process of survey included: • • • Telephonic discussions Feedback with travel agents during India Sales Missions Consumer feedback during consumer promotion events done in June 2009. economy. the importance of price competitiveness for attracting tourists and the extent to which the Index explains differences in travel intensity between countries. the development of new forms of tourism especially those related to nature and wildlife. innovation and competition. An economy has the potential to enhance lives in a sustainable framework through providing wealth creation. culture. It is hoped that the report will help serve the purposes. The Report aims support the informed decision making process and would help develop strategies for the target audience and make better plans for achieving a higher number of tourist inflow which should culminate in an overwhelming success of the Nepal Tourism Year 2011. zoom from a macro level to granular detail and the data shall help get better insight. consumer lifestyle.Purpose of the Study The India Market report aims to provide clear insight and shall help in planning and coming up with solutions. Interactive discussions with other stakeholders in India such as airlines. It shall also help Nepal in remaining on top of competition. exploring issues such as the impact of recession on the tourism industry. It went to following processes: • • • • Analysis of current state of affairs based upon various data available. Informal discussions with Tourism Boards of Singapore. Hence there is a need to understand and provide a product which appeals to them. enhancements or support for existing system. demographic and geographic impacts etc giving a detailed insight into understanding the target customers and how to reach them. The report also notes some of the main qualitative trends seen in the industry in the form of increased market segmentation. rural areas. Interactive discussions with Travel agents and Incentive houses in the focus areas and understanding their viewpoints. travel trade associations etc. Also how such programmes are influencing traditional package tours as the tourists are increasingly becoming selective about destinations and are demanding higher quality products and services. It will also strive to bridge the gap and look at every possible way to make a clear goal and develop an action plan when it comes to tourism promotion activities. and discussions with Tourism Boards. The travel and tourism industry contains these four elements that enable it to be a dynamic market force for sustainability in the future and economic growth. trends used to promote destinations. choice. This is particularly captured by the topics covered in the following chapters. interviews with the travel trade.
12 .Chapter 1 Why India Matters? Proposed Benefit to the Readers The Report aims to support the informed decision making process and would help develop strategies for the target audience and make better plans for achieving a higher number of tourist inflow which should culminate in an overwhelming success of the Nepal Tourism Year 2011.
Indian economy witnessed near stagnation in real GDP growth in the 1970s. foreign trade. Financial sector reforms. These measures along with developments 13 India Tourism Outbound • Nepal Perspective 2010 . the pick-up benefited from the initiation of some reform measures aimed at increasing domestic competitiveness. which was followed by significant problems experienced in viability and competitiveness.9 per cent in the first five decades after Independence. Restructuring measures by domestic industry. Indian economy has become much more integrated with the world economy now than the pre-reform period. The slowdown could also be attributed to the excessive enthusiasm and optimism in regard to investment plans in domestic industry following deregulation. favourable investment climate amidst strong global demand and rules-based fiscal policy have led to the real GDP growth averaging close to 9 per cent per annum over the 6 year period. Growth of decadal averages was roughly constant at around 5. financial sector and capital flows that was undertaken after the balance of payment crisis in early 1990s led to India becoming well integrated with the world economy. This situation was quite different in the earlier years of India’s Independence. There was some loss of the growth momentum in the latter half of the 1990s which coincided with the onset of the East Asian financial crisis. In this context. 2009) Since 2003-04. (ICRIER. there has been a distinct strengthening of the growth momentum. The higher order of investment activity in the country over the past few years has also been mirrored in strong demand for credit from the banking sector since 2003-04 onwards. quality of fiscal adjustment. encompassed introduction of auctions in government securities. and in 2007-08 they rose to 64 per cent of GDP. Monetary tightening in the face of inflationary pressures is also believed by some to have contributed to the slowdown over this period.Chapter 2 Overview on Indian Economy. (Assocham Research Bureau. Since the early 1990s. growth impulses appeared to have gathered further momentum in the aftermath of comprehensive reforms encompassing the various sectors of the economy. deregulation of interest rates and reduction in statutory pre-emption of institutional resources by the Government was carried forward with the phasing out of the system of automatic monetization of fiscal deficits from 1997-98. investment. slowdown in agriculture growth affected by lower than normal monsoon years. reforms in the financial sector have played a key role. Tourism Development and Creation of Wealth in the Last Decade Indian Economy – A Review Indian economy has been growing at a fast pace since the economic liberalization of 1991. Interestingly. Liberalization in industry.6-5. ending 2008-09. setbacks to the fiscal correction process. as a proportion of GDP. rose from 20 per cent to 53 per cent during the period 1990-91 to 2007-08. these ratios are significantly higher than those in the US for which in 2007 trade in goods and services constituted a lower 41 per cent of GDP and capital flows were only 25 per cent of the GDP in that year. both nominal and real. and some slackening in the pace of structural reforms. initiated in the early 1990s. 2008) The slowdown of growth witnessed during the 1970s was reversed during the 1980s. improved corporate profitability. Total trade flows (receipts and payments on merchandise and invisibles). Capital flows (inflows plus outflows) had been just 12 per cent of GDP in 1990-91. overall reduction in domestic interest rates.
reforms included a market-determined exchange rate.5 trillion. in turn. TVs. rising savings and investment rates.Chapter 2 Overview on Indian Economy. the demand for travel and tourism will grow exponentially. The strong Indian growth story. India had been growing robustly at an annual average rate of 8. A study commissioned by Cartoon Network some years ago measured the `pester power’ – the influence children have on purchase decisions – of Indian kids as substantial (close to 40%) and growing. rise in productivity supported by technological up-gradation and greater integration with global flows of trade. by the year 2025 (The McKinsey Global Institute. facilitated the conduct of monetary policy through indirect market-based instruments through improved fiscalmonetary coordination. Children get first priority on the budget and this has empowered them to emerge as main influencers on family purchases such as mobile phones. 2007). mirroring the trend of other developed nations. 2009) The Indian Middle Class – An Opportunity for Nepal. Domestic tourism. Public investment has started increasing since 2003-04. The ‘middle class’ cherish family ideals and values and invest in products that ensure upward mobility of the family and longevity of economic success through transfer to generation next. by making the yield market-determined. reversing a long-period of declining trend that began in mid-1980s. substantial capital account epitomized and deregulation of the equity market. making India the world’s fifth-largest consumer economy by 2025. current account convertibility. as people acquire more disposable income. Since 2003-04. the above 60 years of age group in India’s age pyramid is also going to increase. Overall. This process was further strengthened through the implementation of the FRBM (Fiscal Responsibility and Budget Management) Act. music systems. Thus. Apart from making the interest rates largely market determined. Moreover. Tourism Development and Creation of Wealth in the Last Decade in the Government securities market. finance and technology. This was higher than the potential growth rate of output as estimated both by the IMF and OECD. (ICRIER. thus.8 per cent for the past five years (2003-04 to 2007-08). computers and even cars. is free to spend on travel. India’s growing middle class has also given rise to an economically comfortable retired pensioner who. there will be more such people with disposable incomes as the demographic transition in the country would produce a huge surge in people in the 20-60 years age group. 2003. large unfulfilled domestic demand and globally competitive firms attracted significant investor attention in recent years. The financial sector reforms designed to improve cost efficiency through price signals. thereby contributing to overall efficiency in financial intermediation. Moreover. having completed the family responsibilities. food and essentials. This will trigger explosive growth in the consumer market taking it to $1. based on its structural strengths of a young population. formed the backbone of financial market reforms. This will have significant implications for the tourism industry as it is a well-recognized axiom that travel is the first priority of an income earner after the basic requirements of home. skilled manpower. poses many opportunities for the tourism industry and meeting the needs of the expanding middle class will be the key to it. According to a report The ‘Bird of Gold’: The Rise of India’s Consumer Market. India’s middle class is expected to swell almost 12-fold from its size of 50 million people to over 583 million – some 41% of the population. By the year 2025. Recent high rates of economic growth have been the result of high levels of investment. private investment has also witnessed a significant rise. travel by railways and air is cheaper for senior citizens because of concessions – all these factors 14 . these reforms have led to better price discovery in both interest rates and exchange rate. under which the Central Government targets to eliminate the revenue deficit and reduce its fiscal deficit to 3 per cent of GDP by 2008-09 and the Reserve Bank was prohibited from participating in the primary government securities market from April 2006.
896 7 6 12 32 35 51 77 54 36 35 34.089 12 20 8 69. Indian rupees.0 will facilitate domestic tourism and the same is applicable for Nepal due its close proximity and cultural similarities. Indian rupees.000) 24 Strivers (500-1. 2000 6. billion.Chapter 2 FIGURE 2.098 1 5 8 15.000) Middle class Seekers (200-500) 24 10 1985 1995 2005E 2015F 17 3 2025F Aspirers (90-200) Deprived (<90) Note: Figures are rounded to the nearest integer and may not add up to 100% Source: MGI India Consumer Demand Model . v1.679 2 0 6 15 10. Consumption by the Middle Class Share of total consumption by income bracket %. India Tourism Outbound • Nepal Perspective 2010 15 .503 Household income bracket thousand. This should be Nepal target segment. 2000 100% Globals (>1.
education and entertainment.999 US dollars is increasing continuously. 16 . It is the largest service industry globally in terms of gross revenue as well as foreign exchange earnings. Households that can afford a few luxuries (“spenders”): annual income between 2. particularly in remote and backward areas.* 90 77 54 32 10 75 75 80 47 50 1 3 1995 A total of 164 million households 2005 A total of 200 million households 2015 A total of 230 million households Households in millions Well-off households: annual income of more than 5. adventure. Progress in air transport and development of tourist facilities have encouraged people to venture out to the foreign lands. The average household in India consists of 5. The basic human thirst for new experience and knowledge has become stronger. It is motivated by the natural urge of every human being for new experience. Tourism Development and Creation of Wealth in the Last Decade Distribution of Indian Households FIGURE 3. has been well recognized the world over.000 and 1. as an instrument for economic development and employment generation.000 US dollars. Tourism is one economic sector in India that has the potential to grow at a high rate and can ensure consequential development of the infrastructure of the destinations.999 US dollars Lo-income households: annual income of less than 1.000 US dollars * Household incomes are not inflation-adjusted Source: IGD Economic Growth and Tourism in India Tourism has been a major social phenomenon of the societies all along. It has the capacity to capitalize on the country’s success in the services sector and provide sustainable models of growth.999 US dollars. The spread of education has fostered a desire to know more about different parts of the globe.5 people. as communication barriers are getting overcome by technological advances.Chapter 2 Overview on Indian Economy.000 and 4.000 and 4. India’s Growing Middle Class The middle class in India is on the rise: the number of households with an annual income of between 2. Tourism can play an important and effective role in achieving the growth with equity objectives which India has set for itself. The motivations for tourism also include social. religious and business interests. Tourism’s importance. Up-and-coming households (“aspirers”): annual income between 1.
The economic benefits that flow into the economy through growth of tourism in shape of increased national and State revenues. where the supply chain is as important as the end product. the expansion of the tourism sector can lead to large scale employment generation and poverty alleviation. This empowerment of women which is being focused by the successive governments is achieved through tourism projects more positively.36 persons in other sectors of the economy due to linkages with tourism . handicrafts. which is of particular significance to India. the standard of living in the families has improved. construction.36 which implies that direct employment of one person in the tourism sector creates employment to 1. surface transport. emanating from tourist expenditure. business receipts. construction. Now in India. Additional demand will thus generate more employment and further multiplier effect will come into force through successive chain of transactions. The growth in the tourism sector emerged as a very important contribution to the national economy and contributed quite a lot for employment generation in various tourism related activities. handicrafts. basic infrastructure and facilitation systems. Thus. Over 382 million domestic tourists visiting different parts of the country every year return with a better understanding of the people living in different regions of the country. In fact investment in tourism has the potential to create more jobs compared to many other sectors and all the more at a lower level of investment. Thus. etc. They have a better appreciation of the cultural diversity of India. transport. hotels. airlines services. India Tourism Outbound • Nepal Perspective 2010 17 . sports etc. is its contribution to national integration and preservation of natural as well as cultural environments and enrichment of the social and cultural lives of people. Women are effective in tourism business with their mental attitude for service and care and upbringing since their childhood especially in hospitality industry. Tourism also encourages preservation of monuments and heritage properties and helps the survival of arts forms. It is a multi-sectoral activity characterized by multiple services provided by a range of suppliers. buoyancy in Central. poultry. horticulture. The labour/capital ratio is very favorable in tourism sector compared to many other industries with 47. It is quite similar to manufacturing industry. travel. the growth of tourism cannot be attained unless the issues related to all the sectors are addressed simultaneously. handicrafts making.These linkages are in the sectors like agriculture horticulture. government of India (Kanjilal. and are now better integrated in the national developmental programme through tourism activities. Both educated & uneducated women are now involved in tourism related activities. Tourism is now recognized for its contribution to create job for large number of women. As a result. crafts and culture. and better exposure through interaction and thus a general improved scene in the women force which was earlier very restricted to move beyond their house limit. improved health care. wages and salary income. Tourism is overwhelmingly an industry of Private sector service providers. The indirect employment multiplier in the case of tourism is fairly high and is estimated as 2. With this double income in the family. employment. more women are in hotel. State and local tax receipts can contribute towards overall socio-economic improvement and accelerated growth in the economy. etc. 2006). Further these directly/indirectly employed following the development of tourism may also need more goods & services as a result of such employment than what they would have demanded otherwise. also induces more employment and generates a multiplier effect on the economy. cultural & entertainment events. The consumption demand. although the public sector has a significant role to play in infrastructure areas either directly or through public–private partnerships (PPPs) approach. Expenditure on tourism induces a chain of transactions requiring supply of goods and services from these related sectors. additional income and employment opportunities are generated through such linkages. etc.Chapter 2 It has the potential to stimulate other economic sectors through its backward and forward linkages and cross-sectoral synergies with sectors like agriculture.5 jobs for a million rupee investment as has been seen in the survey conducted by the Ministry of Tourism (MoT). Better education of children. The related sectors include airlines. Another important feature of the tourism industry. poultry.
with the so-called sub-prime housing mortgage crisis. The Global Crisis The financial crisis in the US started in the latter half of 2007.6 jobs to 40. 2009) Size of India Tourism There has been a remarkable growth over the years in foreign tourist arrival to India due to the various efforts made. (World Travel & Tourism Council.730 crore. This global campaign had attracted the attention of tourism industry observers as well as tourists.478 billion) by 2019. and. down from 1.037.9% of total exports (US$1.73m in 2002 to 5.000 jobs in 2009.) Though the growth in tourism in India has been impressive. (Ministry of Tourism India.4 per cent over 2007. 2009. 18 .4% of total employment or in 1 in every 11.000 jobs. The busting of some of the big financial institutions has created an atmosphere of lack of confidence. Tourism Development and Creation of Wealth in the Last Decade It is also important to note that tourism has become an instrument for sustainable human development including: • • • • Poverty alleviation Environmental regeneration Job creation Advancement of women and other disadvantaged groups. Foreign tourist arrivals (FTAs) in India increased from 2.2% in 2009 and to average 7. and the tourism receipts were of the order of US $ 944 billion. The World Travel and Tourism Council (WTTC) for 2009 forecasts that the contribution of the Travel & Tourism economy to total employment is expected to rise from 219. the crisis had its real roots in hugely excessive leveraging by investment and commercial banks. growing (in nominal terms) to US$4.8% of the total) in 2019.4% of total employment or 1 in every 15. 8. under-pricing of risk and lack of necessary regulatory oversight. It is universally acknowledged that the tourism resources in the country have the potential to generate significantly higher levels of demand from the domestic and international markets. India’s share in global tourist arrivals and earnings is quite insignificant. the year 2008 saw more than 922 million international tourist arrivals. 2008) The contribution of the Travel & Tourism economy to employment is expected to rise from 31.980 billion) in 2009. including promoting India through the ‘Incredible India’ campaign in overseas markets. Real GDP growth for Travel & Tourism economy is expected to be 0. India’s rank in world tourist arrivals in 2008 was 41. Size of Global Tourism According to the World Tourism Organisation (WTO). However Real GDP growth for the Travel & Tourism economy is expected to be -3.2% of total employment or 1 in every 13. if exploited intelligently in a sustainable manner. 7. can prove to be the proverbial engine of growth for the economy.105. The foreign exchange earnings (FEE) from the tourism sector in 2008 were Rs.4% (US$5.Chapter 2 Overview on Indian Economy.0% in 2008.0% per annum over the coming 10 years with export earnings from international visitors and tourism goods are expected to generate 10.7% per annum over the coming 10 years. (World Travel & Tourism Council.132 billion (9.810. but to average 4. 50.5% in 2009.37m in 2008. an increase of 14. 6.474 billion) in 2009 to 9.5% (US$10. Gross Domestic Product (GDP) is expected to rise from 9.8 jobs by 2019.8 jobs by 2019. As is by now well established.000 jobs in 2009.
45%.2% compared to the increase by 24. The Sensex shuttled between 10K and 8K. While the Indian economy registered an average growth of 8. The recently adopted measures by the government. It has dealt a severe blow to investment sentiments and consumer confidence in the economy With the increased linkage with the world economy. industries in the region have also been affected as can be seen in the shocking contraction of Taiwan’s industrial production of around 32 per cent in December 2008.8% seen in the previous year. The contagion of this financial crisis has now spread to countries in Asia as the export markets of these countries have virtually collapsed. In February 2009 gross tax collection rose by 7% compared to 26. borrowing by the government and by the commercial sector increased in February 2009. India cannot remain immune to the global crisis. The Indian economy was on a cyclical slowdown after a five-year record boom and there was every hope that the economy will go for another strong growth phase after this brief slowdown. In the India Tourism Outbound • Nepal Perspective 2010 19 . which is indicative of the continued weakness in markets. The six-core infrastructure industry managed to continue with a positive 2.Chapter 2 This extraordinary financial crisis has now spread to Europe and Japan and is likely to see most developed economies suffering a prolonged period of recession that could extend beyond 2009 and according to some even beyond 2010.2% growth. All the constituent sectors except the crude petroleum were seen to post positive growth. India began to feel the impact of the crisis in January 2008 when the Bombay Stock Exchange (BSE) sensex collapsed after crossing the peak of 20800 in early January 2008. including reduction in fuel prices has brought the WPI based inflation under control. India and the Global Crisis The Indian economy was slowing down even before the onset of global crisis and hence the timing of this external shock could not have been worse. disaggregated numbers raise concerns over the price rise of the essential commodities like the primary food articles. Along with exports. However. its growth is slacking today because the global economic crisis is getting even deeper than before. Money supply in the economy expanded in February 2009 by 16% and was less by a percent than the growth seen in previous year. The total revenue loss due to tax reductions will be 0.8% during the 5 years ending 2007-08.7% recorded in the previous year. Japan and Taiwan saw a fall in exports of around 35 per cent and 40 per cent respectively in their exports in December 2008.2% growth as against plus 9% growth recorded by the industry in the same month of previous year. Exports in major Asian economies have declined by huge amounts. The global crisis has changed that outlook and instead will deepen and prolong Indian economy’s slowdown. The net foreign exchange assets with the banks turned negative during the month. The fallout from a major slowdown in Chinese exports and its GDP growth on South East economies and indeed the rest of the world can be severe and has yet to be factored in to the estimates of global growth for 2009 and 2010.2 % of GDP in 2008-09 and 0. The credit off take was on the rise. The average inflation for February 2009 was 3. The low collection rate was on account the low corporate profits and tax concessions and reductions in the stimulus packages announced over time. The slowdown in tax collection was pronounced since November 2008. Latest IIP numbers for February 2009 shows negative 1. Growth in the aggregate deposits is maintained compared to the previous year and investments in the government and approved securities decelerated to 22. The exit from the markets have has an impact on the overall economy as the country’s forex reserves got affected. with the main economic indicators off the growth track the stock markets seems to appear unattractive for the FIIs.5% of GDP in 2009-10. this growth was however much less than the growth number of 7% seen in the previous year.
While several packages for aiding the ailing exports reforms were announced by the government this year however the recent numbers for February 2009 do not endorse any improvement. Although it is felt that a further decline may raise concern. October 2008 during 2008-09 compared to the growth numbers of previous year. The reason of the sharp erosion in the reserves were large outflows in the foreign investments from the equity markets and use of reserves in keeping the Rupee from weakening apart from the valuation effects. 1000 crores has been allocated to tourism and the breakup is highlighted in the table 2. This will pose a big challenge requiring urgent and sustained policy attention to prevent this downturn from becoming unnecessarily prolonged. FDI received so far up to February 2009 was USD 31 billion. The huge outflow in investments increased the dollar demand and exerted pressure on the Rupee to weaken to 52 against the USD.5 billion when portfolio investments are included.Chapter 2 Overview on Indian Economy. The overall investments shrank and were close to USD 18. In the recent budget. The average exchange rate against the USD in February 2009 was 49. 20 . By end of February 2009 foreign direct investment received was USD 5 billion in excess of what was receive a year ago. Forex reserves reduced sharply to USD 249 billion in February 2009. The forex reserves maintained in February 2009 are enough for 10 months of import cover. Tourism Development and Creation of Wealth in the Last Decade interim budget for 2009-10 the estimate for 2008-09 fiscal deficits was revised to 6.0 % of GDP as against the budget estimates of 2. Rs. Foreign direct investment continues to flow and was seen to be slightly impacted due to the global economic concerns. There is real downside risk that the growth rate could plummet to the pre-1980s levels if appropriate countercyclical measures are not taken immediately and are not urgently followed by necessary structural reforms. Merchandise exports posted negative growth in straight 5 months starting. The Central Bank continues its struggle in keeping the rate of exchange below 50 and stable. Overall trade is in declining state due to dry up in international markets cutting through all sectors.22.5%. (Investment & Technology Promotion Division. 2009) Indian Economic Outlook 2009-11 The current global crisis is likely to bring the Indian GDP growth rate down considerably.
20 ... 70.. ..64 65. 0. Tourist Infrastructure 3452 3452 3452 Total 3452 3601 3602 5452 Total 3452 3601 Total 3452 25.00 6. 472.00 1000. Non-Plan 50.00 .00 106.00 .. The Budget allocations. ..18 220.. . Budget 2009-2010 Non-Plan 70.45 1046. 10.45 Total 486..20 ...00 250.01 68.00 0..20 250.00 304.20 .. Domestic Campaign 3.80 ...00 Total 11.00 71.00 ..50 Tourism 2..00 103..00 125...80 2.45 Revised 2008-2009 Plan 439. 472..00 285.53 IEBR 11.00 89...72 .00 472. .. .00 65.00 472. net of recoveries..01 14. 0..00 100.00 IEBR 11.00 472..00 306.Loss by exchange Total-Tourism Grand Total C.00 19.00 306.00 5.00 89. 1000..00 116...00 561.00 20.20 ..00 Total 8..00 89.. .00 100.. 50 43.72 49...00 6....74 Total 489..00 304.79 1050. 0..00 .in The Budget cost heads are defined as follows: 1.74 Plan 994.00 Budget . Plan Layout Head of Source: indiabudget. .43 65.. ..00 71.00 1000..55 47.80 49.00 457...00 1047. Overseas Campaign 4. 100. .00 100.00 ... 0.00 71..50 1043.. 71.00 64.00 1000.80 ...79 50.. 100.00 89..53 561.00 220.72 .00 47. Lumpsum provision for Project/ Scheme for the benefit of NE Region and Sikkim 2552 4552 Total 2075 11..00 1000.....00 0. 1000. . 472. Secretariat-Economic Services The provision is for meeting the expenditure on the Secretariat of Ministry of Tourism.00 54.00 457..00 1070.50 64.00 285..80 3. 0.00 1000. 0.80 22.00 47. 71.00 ... Direction & Administration The provision is for meeting the expenditure on the Headquarters Establishment of the Directorate General India Tourism Outbound • Nepal Perspective 2010 21 .41 64. . . 0.00 6.00 50. Detail Budget for the Year 2008-2010 A..50 1070. 10.45 46...00 1000. 0.00 561.00 Budget .00 71. 71. . Non-Plan 47.43 0.. Other expenditure 7.00 Budget ...nic.80 3. ...00 3.00 5.00 472.. .00 6. 50.. .50 1064..18 ..53 3. .50 70. . are given below: (In crores of Rupees) Budget 2008-2009 Major Head Revenue Capital Total 1....... 47.41 25.00 54...00 .00 113.00 20..18 .00 5.00 ... Tourist Information & Publicity 3..00 43.00 1050...80 . . Training 6.Chapter 2 TABLE 2..00 .20 220. .....00 65. 472.00 . . 71.55 1047. Secretariat-Economic Services 3451 Plan 439.53 3. . Miscellaneous General Services ....00 3..00 .. ..20 ..00 ...00 .64 0.. . 2..20 125.50 Total 1064.00 IEBR 100.00 .02.53 . .. 0.....00 3..00 0.00 285..00 285.53 Total 100. .72 2.00 0. 1000. 0...01.00 220.00 100.18 . Director General Tourism Direction & Administration 3..00 561.00 39.
The provision also includes Externally Aided Projects (including UNDP Endogenous Tourism Projects). Adventure and Sports facilities. market research and contributions to international bodies along with provision for payment of post closing adjustments relating to disinvested India Tourism Development Corporation Hotels signed by parties with the Government of India. 8. travel agents. posted at places of tourist interest. guides etc. electronic. development of tourism infrastructural facilities. which are following courses of National Council for Hotel Management & Catering Technology (NCHMCT). Providing for improvement in solid waste management and sewerage management. 4.Chapter 2 Overview on Indian Economy. In addition. Signages. refurbishment of monuments. 5. 6. production of publicity material centralized thematic and generic International/Domestic media campaigns are undertaken regularly in the leading print. Cruise vessels. 3. improvement of surroundings. Illuminations of monuments. It also includes provision for Information Technology. This provision also relates to the Large Revenue Generating Projects. 22 . Assistance to Central agencies for Tourism Infrastructural Development and for Construction of Building of Indian Institute of Skiing and Mountaineering at Gulmarg. and creation of land bank for hotels to provide the hotel accommodation in the country by purchasing land and build hotels through Public Private Partnerships. Hospitality and special campaigns including Marketing Development Assistance Scheme have been introduced from 2000-01. Convention Centre. Other Expenditure This provision is for payment of Interest subsidy as well as Capital subsidy on the loans advanced by the Financial Institutions and to service news scheme of investment subsidy for construction of hotels. airports etc. Golf Courses etc. Sound and Light Shows. Indian Institute of Tourism and Travel Management (IITTM) and the National Institute of Water Sports (NIWS) are other bodies involved in manpower development in tourism. government employees etc. generating revenue through levy of fees or user charges like Tourist Trains. Tourist Reception Centers. Under the Scheme stake holders are eligible for drawing assistance for undertaking promotional activities overseas. Cruise terminals. At present there are 35 Institutes of Hotel Management (IHMs) (includes 7 from the Private Sector) and 6 Food Craft Institutes (FCIs). outdoor and web media. Training Trained manpower is an essential feature for the development of tourism in the country. Miscellaneous General Services This represents provision for loss of exchange incurred while remitting funds to Overseas Tourist Offices. Lump-sum Provision for Projects/Schemes for the Benefits of NE Region and Sikkim The availability of diverse tourism products in the North East offers a tremendous scope for the development of tourism in the area. 7. Tourism Development and Creation of Wealth in the Last Decade of Tourism and the regional and field offices under it. Tourist Information and Publicity Promotion and Marketing are undertaken through a network of India Tourism Offices located in India and abroad. regular courses of various durations are conducted for fresh as well as existing service providers including guides. Their main activities are dissemination of tourist information. Procurement of equipment directly related to Tourism and Rural Tourism projects etc. Wayside amenities. Special Tourism Projects.. Besides the regular promotional activities. regulation of various segments of travel industry such as hotels. Tourist Infrastructure This provision relates to the expenditure on creation of Infrastructural facilities on construction of budget accommodation. Besides this.
The results reveal strong performance for travel and tourism demand in India in 2008. “India Travel and Tourism is expected to generate approximately Rs. which at times had not created the desired impact. 2008) In order to develop tourism in India in a systematic manner. the National Tourism Policy. private sector and other agencies • Ensure that the tourist to India gets physically invigorated. Under the revised scheme. with no increase in the coming decade.2 per cent of total employment by 2018. Infrastructure and Destination Development The focus under this scheme is on improving the existing products and developing new tourism products to world class standards. economic development and providing impetus to rural tourism • Focus on domestic tourism as a major driver of tourism growth • Position India as a global brand to take advantage of the burgeoning global travel trade and the vast untapped potential of India as a destination • Acknowledges the critical role of private sector with government working as a pro-active facilitator and catalyst • Create and develop integrated tourism circuits based on India’s unique civilization. the anticipated growth will create 30. mentally rejuvenated. A booming economy and an increase in disposable income have led to a massive growth in the number of Indians travelling abroad. The Indian tourism and hospitality industry has thus emerged as one of the key sectors driving the country’s growth.” says the latest Tourism Satellite Accounting (TSA) research released by the World Travel and Tourism Council (WTTC) and its strategic partner Accenture. rising to Rs 15 trillion (USD 275. heritage.(The Financial Express. growing at 7. The scheme has been restructured during the 10th Five Year Plan to meet the present day infrastructure requirements. spiritually elevated and “feel India from within” Scheme for Product.3 per cent. rising to 40 million jobs. the destinations are carefully selected based on the tourism potential. The long-term forecasts point to a continued solid phase of growth between 2009 and 2018.Chapter 3 Indian Tourism Industry – An Outlook India represents one of the most potential tourism markets in the world.7. and it is thriving owing to a huge surge in both business and leisure travel by foreign and domestic tourists. position it as a major engine of economic growth and to harness its direct and multiplier effects for employment and poverty reduction in an environmentally sustainable manner. 6. broadly attempts to:• Position tourism as a major engine of economic growth • Harness the direct and multiplier effects of tourism for employment generation.4 per cent of total employment. 4 trillion (USD 100 billion) in 2008. The reports also says that while travel and tourism is expected to contribute 6.4 per cent per annum. The past experience had been that a large number of small projects had been funded under the Scheme. spreading the resources very thinly. The focus in the Tenth Plan has been to fund large projects of infrastructure or product development in an integrated manner.1 per cent to India’s national GDP.5 billion) by 2018 over the next ten years. and culture in partnership with States. culturally enriched. The India Tourism Outbound • Nepal Perspective 2010 23 .5 million jobs in 2008. the MoT has been providing Central Financial Assistance to the State Governments during the 9th Five Year Plan which resulted in strengthening of the infrastructure and product development in the country. Master planning of these destinations is undertaken so as to develop them in an integrated holistic manner. averaging at 9. For infrastructure and product development.
tourist transport operators etc. In order to remove these shortcomings and to bring in private sector. and Golf Courses etc.e. The MoT aims at convergence of resources and expertise through coordinated action with States/Uts and private sector. the total outlay for this sector has been increased substantially.. in consultation with the State Governments. which can be admissible for assistance under this scheme. or used by tourists and generates revenue through a levy of fee or user charges on the visitors. this new scheme of Integrated Development of Tourist Circuits has been taken up. Hotel & Restaurant component will not be eligible for assistance under the scheme either on a stand-alone basis or as an integral part of some other project. spread throughout the length and breadth of the country resulting in the resources being spread very thinly. The aim is to provide all infrastructure facilities required by the tourists within these circuits. The destinations are selected in consultation with the State/UT Governments. tour operators. The objective of the scheme is to identify tourist circuits in the country on an annual basis. the government is committed to promoting PPPs in infrastructure development. provides financial support to approved tourism service providers (i. procurement of vehicles and sports facilities like stadiums will also not be eligible for assistance under the scheme. would qualify for assistance. whose turnover include foreign exchange earnings also) for undertaking the following tourism promotional activities abroad: 24 . Scheme for Support to Public Private-Partnerships in Infrastructure Development of infrastructure requires large investments that cannot be undertaken out of public financing alone. administered by the MoT. Besides hotel & restaurants. Convention Centers. Experience has shown that in the past funds under the CFA have been used to fund a large number of small isolated projects. it is proposed to promote large revenue generating projects for development of tourism infrastructure in public private partnerships and in partnerships with other Government and Semi-Government agencies. However. Realizing the importance of destination development. Cruise Terminals. travel agents. Projects like Tourist trains. this is only an illustrative list. should be a project. Therefore. corporate and institutional resources as well as techno-managerial efficiencies. Thus. Scheme for Market Development Assistance (MDA) The Marketing Development Assistance Scheme (MDA). Scheme of Assistance for Large Revenue Generating Projects recognized that the development of tourism infrastructure projects requires very large investment that may not be possible out of the budgetary resources of the Government of India alone.Chapter 3 Indian Tourism Industry – An Outlook master plan is supposed to tie up all backward and forward linkages. This includes activities ranging from preparation of master plans to implementation of the master plans. hoteliers. Large revenue generating project. Important tourist destinations in each State. and develop them to international standards. in order to attract private capital as well as techno-managerial efficiencies associated with it. Cruise vessels. during the 10th Five Year Plan. are taken up for development. This scheme has been put into effect for providing financial support to bridge the viability gap of infrastructure projects undertaken through PPPs. which is also a tourist attraction. Scheme for Integrated Development of Tourist Circuits Under this Central Financial Assistance scheme the MoT has been extending assistance to States for development of tourism infrastructure. including environmental considerations. in order to provide quick and substantial impact.
40 crore.) has been sanctioned. 2.67 crore.89 crore. River Bank.27 crore. Trekking park. Public Amenities. • The project of Development of Mahanadi Central Heritage (Rs. • The project of Development of Srirangam Tamilnadu (Rs. Parking and Landscaping and Beautification of approach roads will be done.3. 4.2.64 crore. 6. In this project Jetties. Puducherry (Rs. • Sound and Talatal Ghar. Beach and Sea Tourism • • • MoT has sanctioned a project of Rs. The project of development of Satkosi in Orissa (Rs.94 crore) has been sanctioned.78 crore) The project of Development of Marina bach in Tamilnadu has been sanctioned (Rs.3. Another project for development of walkway along the bank of river Arasalar and Vanjiiar in Karaikal. Landscaping. Tourist Facilitation Centre. In consultation with the State Governments and Uts the MoT have identified several tourist circuits and destinations for integrated development.25 crore) has been sanctioned in which Interpretation Centre. • The tourist facilities at Sanchi and adjoining tourist places in Madhya Pradesh are being improved at a cost of Rs. 8. • Development of Vallore fort area at a cost of Rs.98 crore.1. will be developed at various places along the river to enhance the experience of visitors to these destinations. 6. • Art and Craft village at Goregaon film city has been sanctioned for an amount of Rs. India Tourism Outbound • Nepal Perspective 2010 • • 25 .63 crore have been sanctioned.3. etc.4.4. Puducherry sanctioned recently for an amount of Rs. • Revitalization of Gandhi Thidal and Craft Bazar.Chapter 3 • • • Sales-cum-study tour Participation in fairs/exhibitions Publicity through printed material Recent Initiatives. Sivasagar in Assam (Rs. Watch Towers and parking facilities.2. MoT has sanctioned a project for development of Ecotourism in Morni-Pinjore Hills and Sultanpur National Park in Haryana for which Rs.00 crore for the project of illumination/lighting of monuments in Rajasthan. Elephant camps. 4.72 lakh) has been sanctioned.92 crore). Some of the important infrastructure projects which have been sanctioned in the recent times are: Heritage Destinations/Circuits • MoT has recently sanctioned Rs. • An Indian Freedom Circuit on Mahatma’s Park in West Bengal is being developed at a cost of Rs. picnic area.5.86 crore. • The project Bijapur-Bidar-Gulbarg Circuit sanctioned at a cost of Rs.58 crore. Nature Trail.0. etc.During the Time of Recession During 11th Five Year Plan (2007-2012) MoT proposed to continue supporting creation of world class infrastructure in the country so that existing tourism products can be further improved and expanded to meet new market requirements and enhance the competitiveness of India as a tourist destination. Ecotourism • • A project of Ecotourism for development of Horsely Hill in Chittoor district of Andhra Pradesh has been sanctioned.00 crore for development and beautification of Beach Promenade in Puducherry. are proposed to be developed. The project of Integrated Development of Tribal Circuit with special focus on Ecotourism in Spiti in Himachal Pradesh has been approved for Rs.
4.66 crore).6% in FTAs in August 2009 as compared to positive growth of 0. signages . Patnitop (Rs.34 crore).54 crore) MoT has sanctioned a project for development of Tizu Kukha as Adventure Destination in Nagaland (Rs. 5.2. Projects for NE Region • • • • • • The INA Memorial Complex at Moirang in Manipur is being renovated and tourist facilities are being developed (Rs.31 crore).39 crore. • There has been a decline of 8.2.57 lakh were lower as compared to 35. 4.00 crore).6% in June 2009 and July 2009 respectively.4.2.Chapter 3 • • • • • Indian Tourism Industry – An Outlook Development of Wayanad in Kerala for an amount of Rs.4. development of Gurez and Telail Valley (Rs. Tourist infrastructure is being developed in Nathula-Memmencho-Kuppu tourist circuit in Sikkim (Rs. Bhaderwah (Rs. Kargil (Rs. Public amenities. Tourist Information Centre. government of India compiles monthly estimates of Foreign Tourist Arrivals (FTAs) and Foreign Exchange Earnings (FEE) from tourism on the basis of data received from major airports.4.3626 crore in August 2008. etc.81 crore). • FEE in US $ terms during the month of August 2009 were US $ 851 million as compared to US $ 845 million in August 2008. Development of Mechuka Destination (Rs. shelters.2% and 0.00 crore) Gayaker Sinyi Lake at Itanagar is being developed at a cost of Rs. Kishtwar (Rs.3. Following are the important highlights.4.06 crore) and Rajouri (Rs.5.40 lakh in January – August 2008. Poonch (Rs. • FEE during January – August 2009 were Rs.91 lakh during the month of August 2008 and 3. Development of Tourist Circuit (Western Assam Circuit) Dhubari-Mahamaya-Barpeta-Hajo has been sanctioned for an amount of Rs.4.83 crore).58 crore in Nagaland. Tourism infrastructure is being developed near Pakhai Wildlife Sanctuary in Arunachal Pradesh (Rs.4.82 lakhs). • FEE during January – August 2009 were US$ 6886 million as compared to US$ 8134 million during January – August 2008 26 .4. • FTAs during January – August 2009 at 32.99 crore) Projects for Jammu & Kashmir MoT has sanctioned a project for development of tourism infrastructure in Leh (Rs.1. Foreign Exchange Earnings (FEE) from Tourism in Indian Rupee Terms and US $ Terms • FEE during the month of August 2009 were Rs.33791 crore as compared to Rs. Circuit – Udhyamandalam. various villages around Sonmarg (Rs.58 lakh in August 2007. Anantnag (Rs. Foreign Tourist Arrivals (FTAs): • FTAs during the month of August 2009 were 3. Bungus Valley (Rs. Tamil Nadu Rs.01 crore.41 crore in Arunachal Pradesh).2.08 crore). Wullar Lake (Rs.Madumalai.4115 crore as compared to Rs.45 crore).00 crore.84 crore).95 crore). approach roads.4.50 crore).Anaimalai. Dandi Pora (3.97 crore.12 crore).2.58 lakh as compared to FTAs of 3. Development of Tourist Destination at Khensa at a cost of Rs. Shri Amarnath Yatra Marg (Rs. as regards these two important indicators of tourism sector.33321 crore in January – August 2008. will be developed in these projects so that tourists who are visiting Jammu & Kashmir should have trouble free experience the beauty and bounty of the region. An Overview of Foreign Tourist Arrival and Foreign Exchange Earnings Numbers Performance of Tourism Sector during August 2009 MoT. 2.4.1 crore).7.
6% 7.2% 7.0% 33. Crore) Month January February March April May June July August September October November December Total Foreign Exchange Earnings (in Rs.4% 8.5% 18.6% 36.3% 24.0% -12.2% 11.2% 8.6% 11.8% 1.0% 16.6% 23.1% -12.3% 16.5% 28.4% 9.8% -2. Crore) 2006 * 3970 3793 3378 2850 2350 2566 2990 2698 2640 3355 3793 4642 39025 2007* 4698 4401 4144 3218 2543 2849 3436 3080 2594 3785 4533 5079 44360 2008# 5438 5182 5035 3773 2988 3409 3870 3626 3143 4248 4935 5083 50730 Percentage Change 2007/2006 18.2% 17.2% 12.9% 14.Chapter 3 TABLE 3.5% 19.0% 14.3% 22.3% 2008/2007 10.2% 6.7% 12.5% 5.8% 13.0% 20.6% 8.8% 19.4% 13.4% Foreign Exchange Earnings( in US$ million) Month January February March April May June July August September October November December Total Foreign Exchange Earnings (in US$ million) 2006* 894 854 761 627 517 564 645 582 569 746 843 1032 8634 2007* 1064 996 938 780 617 691 848 760 640 959 1149 1287 10729 2008# 1382 1305 1248 943 711 796 904 845 689 873 1005 1046 11747 Percentage Change 2007/2006 19.5% -18.7% -9.9% 31.3% 13.6% Foreign Exchange Earnings (in Rs.9% 8.4% 19.9% 15.2% 15.6% 9. Foreign Tourist Arrivals and Foreign Exchange Earnings Foreign Tourist Arrivals (FTAs) and Foreign Exchange Earnings (FEE) from Tourism in India Month January February March April May June July August September October November December Total Foreign Tourist Arrivals (Nos.5% 31. Govt of India India Tourism Outbound • Nepal Perspective 2010 27 .5% 9.7% 9.3% 24.2% 9.3% 20.9% 14.2% 14.0% 22.2% -1.1% 14.7% 21.7% 2008/2007 15.7% 12.4% 11.6% 20.6% 1.6% 17.5% @ Provisional Estimates * Revised Estimates # Advance Estimates Source : Tourism Ministry.6% 14.3% 10.7% 12.7% 24.9% 0.5% 30.7% 21.5% 17.6% 9.8% 17.6% 11.5% 17.) 2006 459489 439090 391009 309208 255008 278370 337332 304387 297891 391399 442413 541571 4447167 2007 535631 501692 472494 350550 277017 310364 399866 358446 301892 444564 532428 596560 5081504 2008 @ 591337 561393 541478 384203 300840 340159 429456 391423 330874 452566 521247 521990 5366966 Percentage Change 2007/2006 16.6% 12.3% 2008/2007 29.
08 million the previous year. Japan and Australia. While the foreign exchange earnings (FEE) of India from tourism for 2008 stood at Rs 50. In an effort to boost the confidence of visitors and tourists after the Mumbai attacks. all member hotels of the HAI will be offering the service of complimentary night stay in the hotel booked by the tourist. according to data received from major airports in India and released by the government. 2007. These value addition services will be offered to tourists visiting the country during the period April 2009 – March 2010. the number of foreign tourist arrivals or FTAs for 2008 was 5.37 million. UK.21 lakh FTAs in November. 28 . as against Rs. The proposed incentives would offer one complimentary international air passage for travelling companion. India saw 5. will offer one complimentary local sightseeing tour in any one of the cities visited by the tourist. growing over 14. Furthermore. complimentary sightseeing in any one city of their choice and a complimentary rural eco holiday. Jet Airways and Kingfisher —have joined this endeavour of the government by providing the additional air passage for travelling companions. the FEE for December was Rs.3% over Rs 44. 5. The Department of Tourism also has plans to organize road shows in countries like Singapore. in joint venture with the IATO.22 lakh FTAs.360 crore in 2007. around 5.7% higher as compared to 5. 4. the Union Ministry of Tourism. The idea is to provide one additional service for every service paid for. The ongoing year will see a rise in the advertisements and marketing through trade fairs and exhibitions to draw the attention of foreign tourists from across the world. India launched a new scheme ‘Visit India 2009’ offering various incentives to foreign tourists and tourism industry.935 crore the previous month and Rs. by the tourists with the help of top airlines and organizations like Hotel Association of India (HAI) and Indian Association of Tour Operators (IATO).079 crore in December.730 crore.083 crore. 5. one night complimentary stay in the hotel booked by the traveller.Chapter 3 Indian Tourism Industry – An Outlook In December. Members of the IATO. Canada. However in the year that India felt the impact of the global economic slowdown as well as terror attacks reflecting in cancellations in corporate as well as leisure travel. marginally higher than the 5. All three major airlines of the country — Air India. an organization recognized by the MoT.
2% (III) Asia & the Pacific Region • • No.4% US $ 11.92% 11 5.6 Billion (P) 11.0% (IV) India’s Position in World • • • • Share of India in International Tourist Arrivals India’s rank in World Tourist Arrivals Share of India in International Tourism Receipts India’s rank in World Tourism Receipts 0. 50730 Crore (P) 14.0 Billion (P) 10.5% (II) World • • No.75 Billion (P) 9.92 Million (P) 6.1 Million (P) 1. of Domestic Tourist Visits to all States/UTs Annual Growth Rate Foreign Exchange Earnings from Tourism i) In INR terms Annual Growth Rate ii) In US $ terms Annual Growth Rate 5.9% US$ 944. of International Tourist Arrivals Annual Growth Rate International Tourism Receipts Annual Growth Rate 922 Million (P) 1. Important Facts about Tourism .9% Rs.65 Million (P) 8.2008 (I) India • • • • No.2% US$ 207.58% 41 1. of International Tourist Arrivals Annual Growth Rate International Tourism Receipts Annual Growth Rate 184.Chapter 3 TABLE 4.66% 6 P: Provisional India Tourism Outbound • Nepal Perspective 2010 29 .6% 10. of Foreign Tourist Arrivals in India Annual Growth Rate No.37 Million (P) 5.24% 23 (V) India’s Position in Aisa & the Pacific Region • • • • Share of India in International Tourist Arrivals India’s rank in International Tourist Arrivals Share of India in International Tourism Receipts India’s rank in International Tourism Receipts 2.8% 562. of Indian National Departures from India Annual Growth Rate No.
2 8. of Indian Nationals Departures (in Million) from India 3.6 2.35 6.81 4. No. It has nevertheless created great interest both among the travel trade in India and in destinations overseas in view of the recent strength of the country’s economic performance.94 5.Chapter 3 Indian Tourism Industry – An Outlook India Outbound Tourism India’s outbound travel market is small relative both to the country’s potential and to that of other large generating countries in the region. TABLE 5. By 2011 Indian outbound travel is expected to be 15.1 17.73 3.6 16.Bureau of Immigration .11 4.34 9. India outbound market is basically spread over four regions: 34% 33% 23% 10% Mumbai New Delhi Chennai/Bangalore Kolkata Financial capital Political capital ITES / Emerging gateways Resurgent economy Over 8 million Indian Travellers travel overseas every year and this market is expected to grow by 10-15% every year. With over 32 million valid passports.42 4.4 8.3 million. With Nepal offering business as well leisure options for the Indian traveller. this is indeed a very interesting market for Nepal.21 7.3 8.3 8.3 3. Number of Indian National Departure from India 1996-2008 Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (P) P: Provisional Source :.3 16.18 8.78 10.Govt of India.46 3. Over 60% of Indians travel overseas for Business and 40% travel for leisure.1 15.65 Percentage (%) change over the previous year 13.8 30 . the expanding middle class and the potential anticipated in a country with such a large population coupled with the relative immaturity of its travel market.56 4.3 7.0 7.
045).Chapter 3 FIGURE 4. of Indian National Departures (in Million) from India 12 10 8 6 4 2 0 1996 1997 1998 1999 2000 2001 2002 YEAR 2003 2004 2005 2006 2007 2008 Source :. 1996-2008 No.200) .000) and Australia (95. attracted only a modest 2% increase out of India. India outbound tourism grew by 13% and there is an increasing preference towards Europe which grew by 25%.452 506. UK (337.Bureau of Immigration . Number of Indian National Departures from India. Preferred Outbound Options Indians traditionally prefer to travel Far East and major short haul destinations are as follows: Destination Singapore Malaysia Thailand China Dubai Hong Kong Travellers (2007) 748. USA (567. The Americas.237 462.Govt of India.726 422. In 2008. India Tourism Outbound • Nepal Perspective 2010 31 .510 Growth + 14% + 56% + 18% + 14% + 6% + 8% Major long haul destinations include.These are essentially business and Visiting Friends and Relatives destinations.450 410. on the other hand.821 317.
23476 N. 49131 4114 72291 189000 22956 N.A.A. 1476 34941 1380 2361 2853 6523 5888 2080 861 10 7875 36755 5864 384 55 5240 N.A. Rep.A.A. 1376 2703 115 670 432 N. 3301 561 1764 34277 351 2647 1590 6044 3633 358 1153 25 5015 27576 3529 1515 3 2622 582 1827 28498 470 2099 1661 4695 4217 1590 959 6 5259 33546 4773 1437 96 4103 653 3421 31834 780 2361 2200 4331 4809 3171 1059 12 6092 32954 4024 1305 24 6249 N. 6169 1852 N.A. 61301 12528 N.Chapter 3 Indian Tourism Industry – An Outlook TABLE 6. 85839 4970 80430 205000 17453 N. of Outbound Indian Nationals 2000 North America Canada USA Central & South America Barbados Cambodia Colombia chile Cuba Honduras Jamaioa Nicaragua Peru Trinidad & Tobago Wesetern Europe Belgium Finland Italy Portugal Switzerland UK Eastern Europe Armenia Bulgaria Georgia Hungary Kazakistan Kyrgyzstan Latayia Moklova. 818 403 2271 913 1207 2830 117 731 414 714 1022 433 3785 960 1296 2995 163 530 423 841 962 973 5286 917 1647 4174 207 643 1153 958 931 584 6597 1161 3148 2717 221 554 304 984 1188 644 6938 1348 3474 3783 278 484 1347 1355 1465 629 8690 1649 3499 3437 343 600* N.A.A. 115055 368745 329 1767 N.A.A.A. 6254 2147 452 167 24 N. of Poland Russia Romania Slovakia Turkmenistan Ukraina Africa Botswana Egypt 124 3015 N.A. 48807 5086 84685 199000 19479 4000 77134 5447 N. Destination-wise Indian Nationals Outbound Travel. 1691 45313 1987 2766 1335 6417 6180 1211 832 30 8702 42184 6033 603 1 5918 1642 N.A. 1462 2199 52071 274202 2001 54742 269674 2002 5549 257271 2003 57010 272161 2004 66315 308845 2005 77849 344926 2006 87210 408845 32 .A.A.A. 1117 N.A.A. 255000 19572 5000 59058 5498 93472 269000 21683 8000 116951 N. 60589 3970 71912 206000 12958 N. 54141 2340 3187 3066 6903 7197 1030 1450 6 9893 45795 6632 443 N. 2000-2006 Country of Destination No.
United Republic of Uganda Zambia West Asia Bahrain Israel Jordan Kuwait Lebnon Oman Syria Saudi Arabia Turkey United Arab Emirates Sourth Asia Bangladesh Maldives Nepal Pakistan Sri Lanka South East Asia Cambodia Indonesia Lao Peo. 235493 247358 12012 15152 270619 7276 61891 10688 313131 9230 246335 312975 9330 29882 314054 8565 72090 16689 373836 10122 336046 350998 8431 17125 363724 9603 83065 9680 362609 13667 357941 418767 12743 25108 413109 11240 136456 11936 474467 20003 356446 466849 19018 27651 N.A.A.A. 37498 4950 28741 1132 49674 13020 11829 12658 Source: Bureau of Immigration. Rep.A.A.Chapter 3 Country of Destination No. 225642 7224 62313 10685 N.A.A.A.A. 2353 2001 2231 3244 N.A. 14686 941 27810 18844 N.A. Malaysia Myanmar Phillippines Singapore Thailand East Asia China (Main) Hong Kong Japan Macau Mongolia 120930 131368 38767 7530 337 159361 161762 40346 8659 408 213611 193705 45394 10574 347 219097 178130 47620 9820 403 309411 244364 53000 15278 557 356460 273487 58572 20846 420 405091 294079 62605 28903 672 74268 10616 96995 66061 31660 1767 34221 3309 132127 5605 18570 346358 224104 78090 8511 69722 58378 33924 2271 37428 2693 143513 5572 15391 339813 206132 80415 11377 65749 2818 69960 3785 39314 2319 183360 5691 14826 375659 253110 84704 11502 88578 7096 90603 5286 32823 1590 145153 6291 15644 309446 230316 80469 10999 89961 19858 105151 6597 41582 1845 172966 8357 18221 471196 300163 86231 10280 95685 59560 113323 6938 58359 2096 225769 7679 21034 583543 352766 80518 12071 88857 70174 126370 8690 94258 2100 279046 7540 22703 658893 429732 213509 15947 N.A. 11111 116376 11875 117101 26480 N. 29755 4577 25946 981 39906 17598 10691 8658 2006 2895 7975 20769 N.A.A. 10079 110841 9830 345431 35379 N. 582 3480 284 24889 17241 N. N. 23858 18890 2873 15233 1952 29598 24066 4588 2531 2002 2549 3778 N. Govt of India India Tourism Outbound • Nepal Perspective 2010 33 . 24716 3798 24711 1312 36069 14604 9366 4059 2005 2985 7125 900 N. Dem. 24007 20898 3450 17899 1271 35402 21973 5708 2907 2003 2580 3602 463 27479 25367 3145 21031 893 42954 22215 6623 2863 2004 2420 4641 677 N. of Outbound Indian Nationals 2000 Eritrea Ethiopia Guinea Kenya Mauritius Moroco Nigeria Seychelles South Africa Tanzania. 590198 20233 28640 N.
Significant number of students participating in advance education programs (80.Chapter 3 Indian Tourism Industry – An Outlook Indian Outbound Travel Key Features 1. School Holidays (Diwali. 5. 6. accompanied with leisure travel with associates and/or family India has a very strong VFR market. 3. Hindu Festival. Indian leisure traffic peaks in holiday season which is as follows: April 15–June 30 Late October-Early November December-January 2. 3. Shopping Food (Strong preference for Indian food) Entertainment Nightlife Sightseeing 34 . 2. 4. 5 Days) (Christmas and New Year Holiday) Indian Corporate travel is consistent year round. 4. but primarily benefits short haul travel sectors Preferred Activities for Indian Outbound Traveller 1. 5. 7.000 students) further stimulating VFR market Indian FIT is fastest growing market Group travellers primarily made up of first time travellers and seniors Honeymoon market peaks November/ December and February/March MICE travel is strong.
The average Indian is also an avid sightseer and can travel thousands of miles to different environments. rail and air transportation. A significant pointer to this is travel during the summer months. flock to the tourist stations of the Himalayas and test the carrying capacity of these resorts to the maximum. It increased to 167 million in 1998 from just 64 million in 1990. the phenomenon of domestic tourism with its vibrant and changing dimensions can be expected to make an even greater contribution toward strengthening the fabric of the unity of India. thus registering a compound annual growth of 12.36 million in 1998. Despite its great significance in the national integration and development. domestic tourism has grown substantially during the last one decade. Domestic Tourism Surges Ahead Gone are the days when domestic tourism in India was synonymous with pilgrimages or visits to friends and relatives.8 per cent. targeting seaside resorts.540 crore in 1998 from Rs. (Planning Commission of India. Also. It is the single unifying force. domestic tourism has not received adequate attention in the process of development planning. Driven by rising incomes. However. It was just around 17 thousand in 1951. there has been the almost unobtrusive and yet inexorable rise of domestic tourism in the Indian context.Chapter 4 Domestic Tourism in India Domestic Tourism is an important part of Indian Tourism and is expected to be over 500 million. The growth of inbound tourism since Independence has been quite impressive. Both the central government and state governments have been pro-active in terms of marketing in order to showcase their various tourism products. as also by agriculture demands. religious and communal groups living in different parts of the country. an increased standard of living and improved land. desert safaris and historical monuments for special attention. From this level it rose to 2. which combined with improvements to infrastructure and the continued popularity of low cost carriers among other things.7 crore in 1951. which helps in achieving understanding between various linguistic. helped to boost travel and tourism in India. however. Tourism receipts on the other hand have grown at a phenomenal rate of 17 per cent to Rs. Travel and tourism in India experienced another year of encouraging development in 2007. The Plan also proposes to achieve a level of 760 million domestic tourists by 2011 at an annual growth rate of 12% and to increase accommodation units. more people in 2007 went on domestic trips. Domestic tourism is also fuelled by business travel to various parts of the country. Furthermore.7. Even in winter. In the contemporary India. 2006) Domestic tourism is also one of the most vibrant expressions of Indian heritage.11. There was impressive growth in the number of domestic trips taken as well as in the number of arrivals and departures owing in part to aggressive international advertising and promotion through the Incredible India! Campaign. The 11th Plan strategy on tourism is to achieve International tourist arrivals of 10 million by the end of the 11th Plan through diversification of source markets increase per capita spending and length of stay of international visitors and by reducing seasonality. forests sanctuaries. According to available statistics. The bulk of the affluent middle class. Domestic tourism is as old as the Indian society. niches categories such as medical tourism and adventure tourism proved popular in 2007. the Indian traveller is on the move. with improved information technology reaching all corners 35 India Tourism Outbound • Nepal Perspective 2010 . a time when most foreign tourists avoid India.
operating on high volume and low margins through a network of sub-agents. Indigo. In order to grab a bigger pie in the suddenly escalating numbers of train commuters turning towards air travel. Qantas occupied a huge portion of the Australian budget skies. The present list of low cost airlines in India includes Spice Jet. The Indian Railways have played a vital role in providing better connectivity as has the government’s pitomizedn and open skies policy. Jet Lite. though some incentive and business agents control the bulk of the market. The emergence of agencies servicing the individual traveller for their travel-related services is a relatively new phenomenon. The budget carriers keep coming up with new ideas and incentives to grow their customer base. Indian Travel Trade Indian Travel Trade is mainly unorganized and no license is required for this sector. travel agents have benefited from demand for new travel packages and new products as well as new destinations among increasingly demanding domestic tourists. Most travel agents in India are only ticketing agents focussing on the lower end of the market. and Air India Express. Over 7000 Travel agents are spread all over India and over 50 tour operators mainly create packages. Since the Indian air industry still remains largely under-penetrated. The concept originally incepted in the United States in the early 1990s. With the air fare almost reduced to that of train fare. There are about 30 wholesalers but their primary focus tends to be closed groups for Europe. The top 10 agents of most airlines are consolidators. It was in a matter of sometime before the Indian airline industry too caught up on this trend. Boom in Travel and Tourism has Wide-reaching Effects Various categories of travel and tourism have benefited from the boom in travel and tourism in India. there’s a lot of scope for the growth in this sector. all leading domestic airlines slashed their fare rates and unveiled Advanced Purchase schemes (Apex) to take on the new challenger. These low cost carriers are often also referred to as no-frills airlines. New opportunities have also arisen to offer niche tourism products such as adventure tourism and spa tourism packages. Players in hotels have experienced high rates of occupancy and room rates have increased in all categories of hotels. Low Cost Carriers Continue to Gain in Strength A low cost airline or carrier is one that proffers air travel at normally very low rates by cutting down on expensive customary in-flight passenger services. Go Air. While Richard Branson of Virgin Airlines was the forerunner in Britain. 36 . The travel trade in India remains reactive and last minute. It was the Air Deccan. people have begun to take domestic trips more frequently. which introduced the budget flight model to Indian skies in 2003. the inception of no-frills airlines unleashed a fierce cutthroat competition in the Indian aviation scenario like never before.Chapter 4 Domestic Tourism in India of the country. The development of low cost carriers has resulted in an incredible amount of choice for Indian travelers and has enabled many more middleincome consumers to afford to fly for business as well as leisure purposes. In travel retail. The budget airline industry in India is expected to grow significantly in coming years. which led to the introduction of low cost carriers and which thus made domestic air travel affordable to a greater number of domestic tourists.
independent businesses. The distribution of travel product in India is fragmented and predominantly retail based. Most consumers will book through a retail travel agent rather than direct.However most of that usage is emails or bookings for low cost carriers or rail tickets. Whilst the Indians are seasoned travellers they still prefer to pre-plan their itineraries prior to travel. pay later’ promotions or ‘cash back’ schemes. there is at least one major traditional wholesaler with significant support from the smaller retail agents. Large travel agencies take reservations from consumers through their own retail networks as well as from smaller agencies. 2009).3 million active internet users. however most agents are small.Chapter 4 Leading Travel Agents Thomas Cook Kuoni /SOTC Cox & Kings TUI / Select Vacations Travel Corporation of India Kesari / Strawberri Travel Raj Travels Club7 Orbitz Mercury Leading Online Portals Travelguru Make My Trip Ezeego Yatra Cleartrip Consumer Booking Patterns • • • • Indian consumers have a short lead-time for booking their holidays ranging from three to six weeks on average. with aggressive marketing and tactical promotions in print media. Latest figures indicate that India as on September 2008 had 45. However. There has been an increase in the usage of the Internet to research and gather information for travel – a trend that is expected to continue. (IAMAI. Examples include ‘buy now. • • • • Wholesalers/Large Agents Commission Level: 15 % Retail Agents Commission Level: 10% India Tourism Outbound • Nepal Perspective 2010 37 . There are a few national companies. The Internet is an emerging source for sales of tour packages but is still very small to date. Competition between the larger travel agencies is fierce. The traditional wholesaler has not generally developed in the Indian travel industry. although a few larger travel agents are pursuing the development of their own distribution network via smaller independent agents.
India’s domestic tourism is a huge market in itself and offers myriad exciting experiences to tourists. up three places since 2007. according to a UNESCO report (2008). India stands 9th in the index of relative cost of access (ticket taxes and airport charges) to international air transport services. India also has quite a good air transport network (ranked 37th). India has 26 world heritage sites. It is from domestic tourism that the larger impact on India’s economy is thus likely to be derived.000 km coastline and dozens of beaches. India’s great ethnic diversity translates into a wide variety of cuisine and culture. It contains a huge diversity of peoples. 144th in relative contribution to national economies and 5th in longterm (10-year) growth. The report also states that real GDP growth for travel and tourism economy is expected to be 0. plantations and adventure locations. (World Economic Forum 2009) 38 . In terms of travel. cultures. Statistical measures of domestic travel indicate that.0 per cent of total exports (almost US$ 16. particularly given the country’s stage of development.9 billion) in 2009. According to the Travel & Tourism Competitiveness Report 2009 brought out by World Economic Forum. with many World Heritage Sites. India has been rated well for its natural resources (ranked 14th) and cultural resources (24th). and a reasonable ground transport infrastructure (ranked 49th). Also according to the report.The World Travel and Tourism Report for 2009 for 180 countries worldwide also ranks the Indian Travel and Tourism economy 14th in absolute size worldwide. The contribution of travel and tourism to India’s gross domestic product (GDP) is expected to be at 6. India is ranked 11th in the Asia-Pacific region and 62nd overall in a list of 133 assessed countries in 2008.7 per cent per annum over the coming 10 years. It is clear that domestic tourism is far greater in volume than foreign tourism.2 per cent in 2009 and to an average 7. India also has a large number of villages.4 billion in 2019. growing (nominal terms) to US$ 51. in 2006. rich fauna.3 billion by 2019. Export earnings from international visitors and tourism goods are expected to generate 6. regions. economic characteristics and areas of prosperity and poverty.000 million inhabitants. there were 462 million arrivals recorded in states within India by Indian nationals and by 2008 it rose to over 562 million arrivals. Tourism industry in India is being utilized as a powerful tool to facilitate county understanding and enable building of broader cultural horizons.0 per cent (US$ 67.Chapter 4 Domestic Tourism in India Current Trends and Information on Key Domestic Destinations India is a vast country with over 1. both natural and cultural. It is divided into 25 bio-geographic zones and has wide ranging eco tourism products. and strong creative industries in the country.3 billion) in 2009 rising to US$ 187. Indian tourism is one of the most diverse products on the global scene. having almost the lowest costs in the world. India is ranked 7th in terms of number of World Heritage Cultural Sites. India is home to a great variety of wildlife and its reserves are well known throughout the world. Apart from this India has a 6.
67 220. India Tourism Outbound • Nepal Perspective 2010 39 .5 14.20 190. Number of Domestic Tourist Visits to all States/UTs in India.95 462.04 366.9 P : Provisional Note: Fitures for Maharashtra & Chhattisgarh have been estimated Source : State/ UT Tourism Departments FIGURE 5.88 168.27 391.0 18.6 18.4 15.31 526.4 7.2 13.0 13. 1996-2008 Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (P) No. of India.1 5.12 159.4 14. of Indian Nationals Departures (in Million) from India 140. Govt.Chapter 4 TABLE 7.5 7.0 14.9 6.56 562. 1996-2008 No.11 236.92 Percentage (%) change over the previous year 2.47 269.60 309. of Domestic Tourists Visits to States/UTs (in Million) 600 500 400 300 200 100 0 1996 1997 1998 1999 2000 2001 2002 YEAR 2003 2004 2005 2006 2007 2008 Source – Ministry of Tourism. Number of Domestic Tourist Visits to all States/UTs in India.
State/UT 2005 Domestic 1. Andhra Pradesh Arunanchal Pradesh Assam Andaman & Nicobar Islands Bihar Chandigrah Chhattisgarh* Dadara & Nagar Haveli Daman & Diu 394914 2061782 6164 1511893 420628 2237130 5517 1974836 446490 2388330 5315 2018848 93529554 50560 2467652 30225 9687220 614176 324495 526142 Foreign 560024 313 10782 2147 63321 23284 912 1226 2006 Domestic 111715376 80137 3268657 118580 7774732 704531 363759 478000 Foreign 669617 706 11151 9045 84942 25217 1094 1400 2007 Domestic 127933333 91100 3436833 136015 10352887 928159 414322 473489 Foreign 769724 2212 12899 10975 177362 26567 1232 5625 10. State/UT Domestic and Foreign Tourist Visits. 7. 6. 2005-2007 S. of India 40 . 4. 9.N.Chapter 4 Domestic Tourism in India TABLE 8. Govt. Delhi Source: Ministry of Tourism. 5. 8. 3. 2.
5 0.1 Foreign 5.1 1. 0. Govt.6 1.3 0. Punjab Source – Ministry of Tourism.5 2.7 Neg. Neg. 2.4 0. 9. Neg.9 0.8 Neg.1 10.1 0. 4.3 Neg.3 2.8 14. Neg. 2. 0.1 0. of India India Tourism Outbound • Nepal Perspective 2010 41 . Haryana 14. Mizoram 25.9 7. 1. Orissa 27. Neg.1 0.Chapter 4 TABLE 9. Meghalaya 24.2 Neg. Himanchal Pradesh 15.3 0.8 0.4 Neg. Nagaland 26.1 15. Percentage Shares and Ranks of Different States/ UTs in Domestic and Foreign Tourist Visits during 2007 S.0 0. Manipur 23.6 Neg.6 Neg.6 3.0 3. Goa 12.6 0. 5.1 0. 6.9 Neg.2 1. Lakshadweep 20. Madhya Pradesh 21.6 1. Maharashtra * 22. 3.3 Neg.1 0.2 1. Jharkhand 17. 8. Jammu & Kashmir 16. 0. Kerala 19. Delhi 11.N.4 2. 0.1 0. State/UT 1. Karnataka 18. Andhra Pradesh Arunanchal Pradesh Assam Andaman & Nicobar Islands Bihar Chandigarh Chhattisgarh * Dadra & Nagar Haveli Daman & Diu Tourism Visits (Numbers) Domestic 127933333 91100 3436933 136015 10352887 928159 414322 473489 446490 2388390 2208986 18477316 6252945 8481988 7915217 4908394 37825953 6642941 18642 18894500 19226716 101484 457685 43161 22085 5944390 368593 Foreign 769724 2212 12899 10975 177362 26567 1232 5625 5315 2018848 388457 104158 84711 339409 52754 4004 534563 515808 2933 234204 1928052 396 5267 669 936 41880 5470 Percentage Share Domestic 24. 2.1 Neg.2 0. Gujarat 13. 4. 1. 7. 0.
followed by the northern region. Karnataka. Karnataka has the highest percentage of Business Travel and Leisure Holiday trips. The major mode of transport for tourist trips in the country is by bus. Together bus and train account for at least 90 percent of trips in each category of travel.3%) Uttar Pradesh (11. Average number of trips per household in the country was 1. Travel for social purposes accounted for the largest percentage of trips in both urban and rural areas. and Uttar Pradesh ranks first in the social and other trips categories. Rajasthan.1%. In respect of foreign tourist visits in 2007. (National Council for Applied Economic Research (NCAER) . 17. Uttar Pradesh.9%. Middle-income households represent the highest percent of trips in each category of travel by purpose as well as for all trips taken together. with the total share of these States/Uts being 65. Tamil Nadu. Punjab. Tamil Nadu. Karnataka.2003) • • • • • Where Indians Travel The top 5 States in domestic tourist visits in 2008 were Andhra Pradesh. 22. the top 5 States/Uts were Delhi (15.17 and average number of trips per tourist household was 2. Indian Domestic Tourism can be profiled as follows: • • • • • • Andhra Pradesh. These 5 States accounted for about 72. Social travel is relatively uniformly distributed regionally across the country. Maharashtra (14. Uttar Pradesh. Top five states ranked according to trips per 1000 tourist households are Himachal Pradesh.2% of the total domestic tourist visits in the country.3%) and Rajasthan (10. representing at least 70 percent of all trips across all purposes of travel.2008) 42 . 5% and 3. Madhya Pradesh and Maharashtra.Chapter 4 Domestic Tourism in India Domestic Tourism Profile As per the study conducted for MoT & Culture. Rajasthan and Madhya Pradesh with their respective shares being 23. Top five states with respect to number of tourist households per 1000 households are Delhi.6%).64.2%. and Uttar Pradesh. Andhra Pradesh. Regional distribution of trips shows the Southern region as dominant in accounting for most types of trips classified by purpose of travel. Tamil Nadu (13.(MoT India.6 %.3%). Rajasthan and Madhya Pradesh are the five highest ranked states in terms of share in total tourist households in the country. Middle income households constituted over 45% of the total tourist households at the aggregate level.6%).5%.
Chapter 4 FIGURE 6. 10.6 22. 4. 3.7 3. of India India Tourism Outbound • Nepal Perspective 2010 43 . 6.2 17. 8. Govt. Govt.5 5. Percentage Share of Top 10 States/UTs in Domestic Tourist Visits in 2008 Source – Ministry of Tourism.0 Total of top 10 States Others Total * Provisional Note : Figures for Maharashtra & Chhattisgarh have been estimated Source : State/UT Tourism Departments Source – Ministry of Tourism.0 100.4 2. 5. 7.8 2.0 12. Share of Top 10 States/UTs of India in Number of Domestic Tourist Visits in 2008 Domestic Touris Visits * in 2008 Rank 1. of India TABLE 10.9 3.6 3.0 3.3 88. State/UT Andhra Pradesh Uttar Pradesh Tamil Nadu Rajasthan Madhya Pradesh Maharashtra Uttarakhand West Bengal Gujarat Karnataka Number 132684905 124843242 98285121 28358919 22088927 20553359 20546323 19314440 15505264 12797937 494978437 67937132 562915569 Percentage Share % 23. 2. 9.
Srirangapatnam Purana Qila No. Gol. Name of Monuments Taj Mahal. Mamallapuram. 5. Delhi Fatehpur Sikri. 9. 2. 10. 4.s Tomb. Delhi Humayun. 6. Chennai Sahet Shravasti Monument of Shravasti No. Group of monuments. of Domestic Visitors 2624085 2060420 2019453 1347483 1177133 878152 802000 776491 682933 590801 10 most popular centrally protected Monuments for foreign visitors in 2007 Rank 1.Chapter 4 Domestic Tourism in India Most Popular Indian Monuments Taj Mahal in Agra is the most popular monument in India. 7. 8.6 Million domestic tourists in 2007. An estimated 2 million domestic tourists visited it in 2007. attracting over 3 million visitors a year. Bijapur Daria Daulat Bagh. 5. Agra Red Fort. 10. Taj Mahal was visited by an estimated 2 . 6. 7. 2. 3. Agra Qutab Minar. Agra Bibi-Ka-Maqbara. Khajuraho Group of monuments. Among the 10 other most famous monuments popular with domestic tourists Purana Quila (Delhi). Konark Agra Fort. of Foreign Visitors 586105 357570 282451 210384 198956 158589 91093 84887 71055 54968 Source : Archaeological Survey of India (ASI) 44 . is the third most preferred monument among domestic tourists. Delhi Sarnath Excavated Site Western Group of Monuments. 4. Agra Red Fort. known as the tallest brick minaret in the world built here in the 14th century. The Qutub Minar. 3. TABLE 11. Name of Monuments Taj Mahal. 9. 8.2 million tourists visited Red Fort in Delhi. Delhi Qutab Minar. The 17th century Red Fort in Delhi was the second most visited monument in the country and 2. Delhi Sun Temple.Gumbaz. Agra Agra Fort. Domestics and Foreign Visitors at 10 Most Popular Centrally Protected Ticketed ASI Monuments during 2007 10 Most popular centrally protected Monuments for domestic visitors in 2007 Rank 1. Bibi-KaMaqbara (Maharashtra) and Mamallapuram (Tamil Nadu) etc.
Lakes and Parks. forests and a meteorologically and socially pleasant climate. designed and created to hold events for people between 50 and 5000. This first ever purpose built facility in the country has been conceptualized. It is regarded as one of the most ancient temples which were mentioned in Puranas and Sastras. It has the perfect balance between large centers. The fact that these convention centers are easily accessible from five star hotels as well as shopping centers. Gardens and Resorts. The City thrives with a variety of cultures intermingled into an astounding culture that gives it a distinct identity of its own. and on the east by the Bay of Bengal. HICC offers to be an ideal venue for a host of events – conventions. The northern area of Andhra Pradesh is mountainous.000 sq. Andhra Pradesh is bordered on the south by Tamil Nadu state. Andhra Pradesh has valuable gifts that nature has endowed it with — a long coastline bordered by clean beaches. on the north and northwest by Maharashtra state. is an added appeal. from textiles of all modern brand names to ethnic wear. hills. Akasganga. Museum are the other places worth seeing at Tirumala. Hyderabad is famous world over for its fabulous diamond markets. km. weddings. resorts and theme parks. the Vijayanagar Rulers and the later kings of Mysore. View Point. which can accommodate thousands of participants and small and medium-size meeting rooms for small scale gatherings. S. MICE Industry Hyderabad. HICC offers state-of-the-art facilities that are comparable to the world’s best convention centers across the globe. on the west by Karnataka state.Zoological Park. India Tourism Outbound • Nepal Perspective 2010 45 .the burgeoning business hub of India. conferences.V. millions of pilgrims from all over India and abroad visit the temple of Lord Venkateswara at Tirupati round the year. Regional Science Centre. Hare Rama Hare Krishna Mandir. as it allows participants to mix business with pleasure. HICC has an internal hall measuring 6. Kapilatheetham. and heritage structures vie with modern high-rise buildings to add to the beauty of the city. Govindaraja Swamy Temple are the other places worth seeing in and around Tirupathi Hyderabad Hyderabad. Tirupati is a world in itself. Kalyani Dam. Cholas. A state in the southern region of India. Hastakalaramam Papanasanam. This is where tradition fuses with modernity. entertainment shows.Chapter 4 Top Indian Destinations Andhra Pradesh Andhra Pradesh is the third largest state in India with an area of 275.V. Tiruchanur. The temple is patronized by the Pallavas.480 square meters that can be partitioned into six smaller halls. Chandragiri Fort. the city offers an astounding variety of shopping. Museums to delectable cuisine and a delightful shopping experience. is the fifth largest cosmopolitan city in India. Shilathoranam. the capital city of Andhra Pradesh is home to world-class convention centers of all varieties. S. In addition to various shrines scattered all over Tirupati and beyond there are holy water falls. the capital of Andhra Pradesh. The city of Hyderabad is a shopper’s delight. Hyderabad International Convention Centre (HICC) is South Asia’s first truly world class convention centre located in Hyderabad. to name a few. glass embedded bangles and the delectable “Hyderabadi Cuisine”. scared rivers and archaeological wonders. Hyderabad offers a variety of tourist attractions ranging from Heritage monuments. Srinivasa Mangapuram. Tirupati Tirupati is the most popular destination in India. parties. Pandyas. on the northeast by Madhya Pradesh and Orissa states. seminars. Gogarbham. Built across a 15-acre landscaped environment. From the world famous pearls to traditional arts & crafts. etc.
for the last eight years his life as a prisoner of his son Aurangzeb. The Taj Mahal the bank of the Yamuna river. This perfectly symmetrical monument took 22 years (1630-1652) of hard labor and 20. 46 . It is a masterpiece of symmetry. it is perhaps India most fascinating and beautiful monument. nearly straight wall facing the river. Masons and Jewelers to built and is set amidst landscaped gardens. providing the right setting for international expositions. organizer’s office. historical and full of natural beauty. over the building and directly under the dome is the tomb of Mumtaz Mahal. three indoor Exhibition Halls – 3500 sq. It can be observed like a Mirage from the Agra Fort from where Emperor Shah Jahan stared at it. car rentals. cultural. and each revealed as an illusion experienced as one enters through the main gate. Mumtaz. VIP lounge. rises 80 feets. HITEX provides. florist. It was built by the Mughal Emperor Shah Jahan as the final resting place for his favourite Queen./hall) Open Exhibition Area – 32. Uttar Pradesh Uttar Pradesh has the largest number of Tourist destinations that are religious. The verses of Holy Koran as inscribed on it and at the top of gate 22 small domes. Car Parking (1200 cars). photo studio. flattened on the east with a long.ft ) Trade Fair Office Building.m (353.825 sq. trade shows.ft.Chapter 4 HITEX Domestic Tourism in India HITEX serves as a one-stop resource. Ustad Isa. bank ATM. travel and forex centre. There are several Tourist circuits which are popular for Domestic Tourism: • Buddhist Circuit • Water Cruise Circuit • Bundelkhand Circuit • Jain Shrines Circuit • Braj (Agra-Mathura) Circuit • Sikh Panth Circuit • Awadh Circuit • Eco-Tourism Circuit • Vindhya Circuit Most popular tourist places in Uttar Pradesh are: • Agra • Varanasi • Mathura Vrindawan Agra Taj Mahal was completed in 1653 A.m. Built by the Persian architect.D. seeming to be floating in the air from a distance. signifying the number of years the monument took to built. (37. a restaurant. and more. conferences and other corporate events. The fort is crescent shaped. The most elegant dome of the Taj.197 sq. Finished in by Marble. Entrance Plaza (housing Registration and Ticketing Counters). Conference Facilities include meeting rooms. The Taj Mahal has been built on a Marvel Platform that stands above a standstone one. with diameter of 60 feets.000 workers. media centre and also houses services including a business centre. Fantastic inlay works using semi-precious stones decorate and interiors.660 sq. Shah Jahan’s tomb has been erected next to her’s by his son Aurangzeb..
800 sq.. He visited holy men to enlist their prayers for his son. Later. Mughal Emperor Akbar had no heir. an ardent Krishna devotee. perfumes. Buddha. situated in the mid northern plains of India on the banks of holy river Ganga. the infant Krishna was spirited away soon after birth to Gokul. Dewane-e-Khaas. Kaundinya. constructed his capital city and named it Fatehpur Sikri. is one of the oldest living cities in the world. Mahanaman and Ashvajit) for redeeming humanity. the 11th Trithankara. he is gratitude. A city of yesteryear today lost in the mists of time. Akbar has to abandon this city. Other renowned places are Dewane-e-Am. Apart from being an important centre of Hinduism and Buddhism. cultural activities. Sarnath Sarnath renowned for ancient remains of Buddhist stupas. was born in the Dwapara Yuga as the eighth son of the Yadava prince Vasudev and his wife Devaki. When he visited Sheikh Salim Chishti who was living at the village of Sikri the saint foretold the emperor that he would be blessed with a son. Mathura Vrindavan The City of Mathura. Fatehpur Sikri was built by the Mughal Emperor Akbar during 1564 A. Varanasi. Brajbhoomi can be divided into two distinct units – the eastern part in the trans-Yamuna tract with places like Gokul. Kusum Sarovar. Mat and Bajna and the western side of the Yamuna covering the Mathura region that encompasses Vrindavan. an incarnation of Lord Vishnu. it is also an important centre of learning and tourism. enchanting ghats. The famous Vishwanath temple is located at its central place and large numbers of other temples are spread all over the city. Fatehpur Sikri is about 39 K. writers. km. Sarnath is also sacred to the Jains because they look upon it as the site of asceticism and death of Shreyamshanath. the great sage .D. The land of Braj starts from Kotban near Hodel about 95 km from Delhi and ends at Runakuta which is known specially for its association with the poet Surdas. Shri Krishna. artistic brass and copper wares. in Uttar Pradesh. Bashpa. Varanasi is famous for silk fabrics.M. is situated at a distance of 6 kms to the north of Varanasi city which is well connected by road. Varanasi is famous for its hoary rich traditions. Panch Mahal. after attaining enlightenment (Buddha-hood) at Bodh Gaya came to Sarnath and delivered his first sermon to five disciples(i. Covering an area of about 3. Barsana and Nandgaon. due to shortage of water and unrest in North-West. has been the capital city of oriental learning since time immemorial and has produced great poets. Baldeo. Sarnath is one of the four most important Buddhist pilgrimage centers of India. Jodha Bai Palace and Birbal Bhawan. in the tender care of his foster parents Nand and Yashoda in the happy company of the cowherds. Govardhan. today. It was here that he grew to manhood. narrow lanes. monasteries and temples. The beautiful marvel tomb of Sheikh Salim Chishti still attracts thousands who seek blessings of the revered saint. from Agra. magnificent temples. the ruler of Mathura. rail & air. musicians and scholars. is located at a distance of 145 km southeast of Delhi and 58 km north-west of Agra. the nucleus of Brajbhoomi. Buland Darwaja. 47 India Tourism Outbound • Nepal Perspective 2010 . When his son was born. the village of the gopas (cowherds) in Braj (their pastureland). Mahavan. This is holy city for Hindus as it is said to be presided over by Lord Shiva. Varanasi Varanasi.e. It is this place where foundation of a new order of monks (Sangha) and a new order of religion doctrine (Dhamma) was laid. and many other attractions. To save him from the murderous intentions of his maternal uncle Kansa. Bhadrika.Chapter 4 Fatehpur Sikri Fatehpur Sikri is an epic in red sandstone.
Egmore and Chetput slowly merged with the new developments. Chennai is a city younger than its image. It was built to set up a factory that served as a nucleus for British settlements that began to be formed.Chapter 4 Vrindavan Domestic Tourism in India Vrindavan. and it embraces a series of paradoxes. artistic and cultural accomplishment .Tamil Nadu has a long coastline that stretches nearly a 1000 kms. The Coromandel Coast. along the Bay of Bengal. Chennai This metropolis is often called the cultural capital of India for its deep-rooted traditions and long heritage. Today this buoyant metropolis is a blend of the old and the new. Part of the fascination is of course due to the fact that it is the very tip of the Indian peninsula and the confluence of the Bay of Bengal. as it was known. This is the wood where he frolicked with the gopis and tenderly wooed Radha. agents for the English East India Company. Golden sands of the beach are dotted with coconut palm and pitomized groves. enchanting Kanniyakumari or Cape Comorin is one of the most popular tourist spots in the state. both modern technology and the traditional arts and crafts. The city was called Madras till 1996 and then renamed Chennai. Vrindavan today. it is a true reflection of this country’s diversity. The sea washes ashore pebbles and shells and the gentle breeze sways the yachts and catamarans into the deeper waters of the sea and the waters form small dunes on the shore Sea gulls hover in the sky and then rest on the sails of the fishing boats. just 15 km from Mathura. In a time span of just over 350 years. the land’s end of India or the point where the three seas meet. to form Chennapatnam. which remains till date city’s important landmarks and serves as the Government Secretariat today. In 1639 Francis Day and Andrew Cogan. It is city that encourages all forms of development. acquired a strip of land on lease from the Vijayanagar King. There are many more breathtaking sights that will please you and hold you spell bound in Tamil Nadu. Kanniyakumari is 705 kms from Chennai. More than any other city in India. Surrounding villages like Triplicane. It is understood that Mathura City is the transcendental abode of Lord Krishna. Kanniyakumari Described as the southernmost end of Tamil Nadu. It seems as if it is by prior arrangement. Because Mathura and Vrindavan are intimately connected with Krishna eternally. Chennai has blossomed into a charming city that has a large heart and is very welcoming. Cape Comorin is at its best during Chitra Pournami (the full moon day in April) when the sun and moon are face to face on the same horizon but other full moon days are also special and you can see the sun set and the moon rise almost simultaneously. They built the Fort St. Tamil Nadu Tamil Nadu is the land of the Tamils and it has a history that dates back to several thousand years. 48 . Nature is so spectacular at Kanniyakumari that several other Indian beaches seen pale by comparison.George. It is a land where traditions and culture blend and continue to live in harmony. The name Vrindavan evokes the playfulness and lovable characteristics of Shri Krishna. is noted for its numerous temples. The state abounds in monuments and temples that are ancient and each has its own story of religious. boasts of many ideal locations for sun and surf. is another major place of pilgrimage. It is noted for its numerous temples – both old and modern. the traditional and the modern. Vrindavan is within the jurisdiction of Mathura and still continues to exist. It is not an ordinary material city. for it is eternally connected with the Supreme Personality of Godhead. Purasawalkam. the Arabian Sea and the Indian Ocean.
bronze items and the famous wooden toys of Madurai are some of the notable artifacts. offered his thanks to Lord Shiva and performed pooja to wash away his sin in killing the Demon King. who is remembered as the maker of modern Madurai.. Madurai is a place of great historical and cultural importance. Mamallapuram Though it is no longer a port. with a vast University campus and is renowned for its weaving mills and dyeing industry. and the rule of Thirumalai Nayak. The “madhu” was so sweet that the place where it fell came to be known as Madhurapuri.C. poets and savants highly esteemed both by kings and commoners. on his return from Sri Lanka. Unfortunately most of the work was left incomplete. It is situated within the Meenakshi Temple. It is among the most outstanding examples of Dravidian art and architecture and a jewel in the crown of Tamil Nadu. and time and nature have also eroded the remains of this once great port. It is a month long festival and dances take place during the weekends. Madurai is a modern commercial and industrial city. Handicrafts. brassware. In a land that is liberally strewn with some of the best in temple art. if one visits Rameswaram and prays to Lord Shiva one will be relieved of one’s sins. It is connected to the mainland by road and railway bridges. conveying as they do. The chungadi cotton sarees are the specialty of this city with its colourful tie and dye motifs. which in course of time became “Madurai. Madurai has fostered an essentially Dravidian and Tamil culture. The monuments are floodlit at night and so it is possible to enjoy their beauty even after sunset. are performed by well-known exponents of the art. Famous for its cultural and scholarly pursuits. Odissi. the city had an academy consisting of critics. The Mamallapuram dance festival is conducted every year during Dec-Jan. Madurai is one of the liveliest cities in South India it was originally known as Kadambavanam or the “forest of Kadamba” or the Nauclea kadamba. in his form as the Silver Hall or the Velli Ambalam. Kathak etc. Madurai is 450 kms from Chennai. and stands as a silent yet eloquent witness to the glory of its creators. Madurai is famous for housing one of the five traditional dance halls where Lord Shiva. is a major pilgrim centre. The Meenakshi-Sundareswarar Shrine is its central glory. Rameswaram is known for its 22 theerthas or wells in and around the main temple. It is the oldest city in Tamil Nadu and Madurai lies on the banks of the River Vaigai. This place is equally sacred to both Vaishnavites and Shaivites. Kathakali. Mamallapuram holds its own. Being in the heart of Tamil Nadu. The third corridor of Ramanathaswamy temple is the longest one in the world. Mamallapuram’s wonders in rock leave visitors enthralled. Ravana. Madurai was the capital of the dynasty. According to Hindu Mythology. Mohini Attam. was an eventful one. It is 197 metres long. Rameswaram is a holy place because Sri Rama. an impression of beauty and harmony. Kulasekhara Pandya.Chapter 4 Rameswaram Rameswaram is a small island in the Gulf of Mannar. The Muslims invaded Madurai in the 14th Century. Later it came under the rule of the Nayaks.The Ramanathaswamy temple is renowned for its magnificent corridors and massive sculptured pillars. Mamallapuram has retained its fame in stone. thanks to the great contribution of Pallava artisans. India Tourism Outbound • Nepal Perspective 2010 49 . Today. Classical dances such as Bharatanatyam. It was in Madurai that three successful conferences of Tamil scholars called sangams flourished under benevolent royal support. Kuchipudi. Legend says that Lord Shiva appeared in the dream on the king. Madurai Madurai is known as Athens of the East.” Tamil and Greek documents record its existence from the 4th century B. The king was amazed to see drops of nectar or madhu falling down of earth from Lord Shiva’s matted hair. Madurai was known to be the centre of learning and pilgrimage for centuries.
” The once-sedate cantonment settlement of the British has now spread way beyond the mud fort and the four towers constructed by Kempegowda in 1537. Bangalore enjoys a salubrious climate throughout the year. and is contiguous with the Mudumalai National Park in the neighboring state of Tamil Nadu. it forms the largest protected area in southern India. the park has rich forest cover. small streams. Mysore Known for its magnificent palaces and majestic buildings. and cosmopolitan cities. It is located in the Chamarajanagar district of southern Karnataka in South India. It stretches over 640 km². Bangalore makes an ideal hub for visitors who want to travel to the many hill stations and coastal towns of South India. is a pleasant and growing city in Karnataka with an old world charm. From the majestic evergreen forests of the Western Ghats to the scrub jungles of the plains. picturesque gardens. a wide variety of habitats teem with diverse flora and fauna. the capital of Karnataka has metamorphosed from a sleepy Garden City into one of India’s fastest growing. exceptional edifices and a salubrious climate. gaur and sloth bears. Bandipur National Park It is one of India’s best known protected areas and is an important Project Tiger reserve. Together with the adjoining Bandipur National Park (870 km²) and Mudumalai National Park (320 km²). Rajiv Gandhi National Park (Nagarhole) The exclusive hunting reserve of the former rulers of Mysore. Karnataka’s forests and wildlife are her priceless natural heritage. parks. art and literature. B R Hills Sanctuary: A unique blend of hill resort and wildlife sanctuary. some of the lesser-known ones are sanctuaries protected by the local populace. tree-lined avenues. technophiliac. the ‘City Royale’ always figures in the tourist’s itinerary. It conjures up visions and memories of the resplendent glory of the illustrious Wodeyar Kings. dholes. It retains its tradition in music and dance. shimmering silks and sandalwood. the Wynad Wildlife Sanctuary in Kerala. Some of these jungles were the private preserves of former rulers. Bandipur is part of the Nilgiri Biosphere Reserve. some of them endemic to the region. protecting the wildlife of Karnataka. The hills take their name from the ancient Ranganatha Swamy Temple that sits at the edge of a granite precipice with a drop of more than 1000 ft. sprawling gardens and tree. valleys. Mysore today. parks earning it the sobriquet of “Garden City. Thanks to their protection. With its booming economy and racy lifestyle. However. Surrounded by weekend getaways. The State boasts of some of the largest jungle tracts south of the Vindhyas. and time-honoured crafts. and waterfalls. accommodating. lakes. This former state capital is a seamless blend of old-world charm and modernity. these jungles have survived.lined boulevards. owing to its broad avenues. It is home to around seventy tigers and over three thousand Asian elephants (as per the 1997 census ). along with leopards. and the Nagarhole National Park to the northwest. a profusion of flowering trees.Chapter 4 Karnataka Bangalore Domestic Tourism in India Located 949m above sea level in South India on the Deccan Plateau. 50 . The city boasts of spacious gardens.
The British chose Ajmer for its prestigious Mayo College. Rover. Stunning backdrop of ancient forts: Nahargarh. India Tourism Outbound • Nepal Perspective 2010 51 . (253m) in four distinct cascades – known locally as Raja. Rajasthan is often portrayed as one vast open-air museum. Rajasthan Folklore of heroism and romance resound from the formidable monuments that majestically stand to tell the tale of a bygone era. One just has to choose an activity appropriate to one’s temperament. It is an incredible destination for the outdoor-tourist – take a safari on horses. breaking into streams that meander over hilly tracts to end in a series of dramatic. exciting desert safaris. The city was founded by Raja Ajay Pal Chauhan in the 7th Century A. The Picturesque Pushkar Lake is a sacred spot for Hindus. Jaigarh and Moti Doongari are apt testimonials of the bygone era and a reminder of their lingering romance and chivalry. Ajmer South west of Jaipur. Especially famous is the Dargah Sharif-tomb of the Sufi saint Khwaja Moinuddin Chisti. The magic of vibrant Rajasthan – its rich heritage. shining sand-dunes. Then Prithviraj Chauhan lost it to Mohammed Ghori. and continued to be a major centre of the Chauhan power till 1193 A. Feast your eyes on spectacular sanddunes. Ajmer is a centre of culture and education.Chapter 4 Karnataka abounds in a torrent of sparkling waterfalls set amidst the sylvan environs of the districts of Kodagu and Uttara Kannada.) which has the distinction of having the only Brahma temple in the world. Agra and Jaipur. elephants or even in jeeps. plunging finales throughout the region. During the month of Kartik (Oct/Nov). The old Jaipur painted in Pink can grip any visitor with admiration. colourful culture. which is equally revered both by the Hindus and the Muslims. with the Aravalis – India’s oldest mountain range as the backdrop. Ajmer is a popular pilgrimage centre for the Muslims as well as Hindus. Rajasthan has something for everyone. Ajmer is an oasis wrapped in the green hills. Jaipur Jaipur is 260 km from Delhi and 240 km from Agra and forms the golden triangle of Delhi. Rani. after which Ajmer became home to many dynasties. or just watch the birds in the wetlands. Today. amazing variety lush forests and varied wildlife – makes it a destination nonpareil. a school exclusively for Indian nobility at one time. You can also choose to pamper yourself in the lavish heritage properties. West-flowing rivers gush through thick forests in coastal Uttara Kannada. devotees throng in large numbers to take a dip in the sacred lake. However. camels.D. take the tiger trail. Amer. Ajmer is also the base for visiting Pushkar (14 km.D. now it is one of the best public schools in the country. with its relics so well preserved that it delights even the most skeptical traveler. and Rocket – to create the highest falls in Asia. It a bustling capital city and a business centre with all the trappings of a modern metropolis but yet flavoured strongly with an age-old charm that never fails to surprise a traveler. Jog Falls Bear witness to nature’s headlong tumble as the Sharavati river makes a spectacular drop of 810ft.
founded Jaisalmer in 1156 AD. Jaiselmer The name Jaisalmer evokes utter magic and vibrancy of the desert. crafts and its famed miniature paintings. The hostile terrain notwithstanding the warmth and colour of people is simply overwhelming. in 1459 AD. the leader of the Rathore clan. forests and lakes made this place less vulnerable to external invasion than Chittaurgarh. It is also the ‘city of lakes’. Religious Tourism India has long been known as a very spiritual. which could reap rich dividends. is entered through First Gate. The desert citadel is truly a golden fantasy in the Thar Desert. Major hotel chains and newer entrants into the hospitality industry see good potential business coming from the increasing demand for quality accommodation at affordable prices. The beautiful havelis which were built by wealthy merchants of Jaisalmer are yet another interesting aspect of the desert city. Religious tourism has emerged as a booming market in India. Udaipur merged with the union of India. the hospitality industry is trying to tap into religious tourism. The grand City Palace on the banks of the lake along with the Monsoon Palace (Sajjan Garh) on the hill above enhances the beauty of this magnificent city. Here. The massive golden fort. The new city is outside the structure.Chapter 4 Udaipur Domestic Tourism in India Udaipur is often called ‘Venice of the East’. the Sadar Bazar is right below the hill. Mewar continuously defied foreign invaders and has a history of bloody battles until the British intervention in the nineteenth century when a treaty was signed to protect Udaipur. The Shilpgram festival is a great crowd-puller on new year. Maharana Udai Singh died in 1572 and was succeeded by Maharana Pratap who valiantly defended Udaipur from Mughal attacks. The old city was completely encircled by a wall but much of it has crumbled sadly for want of building material in recent years. religion is a way of life. According to a legend Udai Singh was guided by a holy man meditating on the hill near Pichola Lake to establish his capital on that very spot. Understanding this aspect of secular India. The mammoth. It’s straight out of an Arabian Nights fable. Surrounded by Aravali Ranges. a study by National Council for Applied Economic Research shows that of the 230 million tourist trips undertaken in India. these together leave a lasting impression on the visitors. The bank. Upon independence. Jodhpur This bustling desert city is the second largest in Rajasthan after Jaipur. the largest proportion is made up 52 . One of the main draws is the daunting 12th century Jaisalmer Fort. Jaisalmer is a paragon of beautiful culture and harsh climatic conditions. The main market. Udaipur is also the centre for performing arts. offices and several shops are also located near the Amar Sagar Gate to the west. religion heavy area of the world. Bhati Rajput ruler Rawal Jaisal. after whom the city finds its name. imposing fortress (Meherangarh) has a landscape dominating a rocky ridge with the eight gates leading out of fortress. Maharana Udai Singh founded Udaipur in 1559 AD. The Lake Palace (Jag Niwas) located in the middle of Pichola Lake is the finest example of architectural and cultural marvel. is a burrow of narrow streets with Jain Temples and old palaces. Maharana Pratap is the most revered Rajput icon who gallantly fought the Mughals at the battle of Haldighati in 1576. which is the essence of Jaisalmer. It was founded by Rao Jodha.
Within its distinct segment.13 6.22 7. Place of birth of Lord Krishna Tomb of Saint Golden Temple .(National Council for Applied Economic Research (NCAER). religious tourism in India offers a variety to attract different kinds of tourists. Deity Temple. North India Naina Devi. there are the Char Dhams (four holy sites) at the four corners of the country and the twelve Jyotirlingas scattered across the land. West India Amritsar. alternative way of life as compared to the materialism and confrontation prevalent in the West. Jainism or. have a vibrant culture and spiritual philosophy.28 8. Western India Badrinath & Kedarnath. getaways to sea beaches and even trips to metropolitan cities.04 8. Sikhism. To begin with. Deity Holy Bathing. For those seeking more enduring pilgrimages.21 4. 2003) India is richly endowed with ancient temples and religious festivals. Vaishno Devi and Sabarimala.Chapter 4 of religious pilgrimages. TABLE 12. there are pilgrimages to several world-renowned temples and shrines. East Coast Vaishno Devi. be it Hinduism. North India Mathura. River Ganges Temple.1 Source: National Council of Applied Economic Research India Tourism Outbound • Nepal Perspective 2010 53 . they present a viable. Undertaken by both rural and urban Indians. North India Ajmer Sharif. Together.17 17. North India Shirdi. they outnumber leisure holidays in hill stations.28 8. Deity Temple. Religions originating in India. Himalayas Purpose of Visit Temple.Holiest Sikh Shrine Pay respects to Saint Sai Baba Pilgrimage to seek atonement Visitors (million) 23 18. South India Puri. Sources of Religious Tourists Rural and Urban India Rural India Urban India Source: National Council of Applied Economic Research Million 169 61 TABLE 13. Indians Keep the Faith: Religious Tourism Boom in India Religious Hotspot Tirupati. North India Haridwar. such as Tirupati.25 11. Deity Pilgrimage.
rock climbing is relatively new. water falls.Chapter 4 Domestic Tourism in India Adventure Tourism Adventure tourism has increased in India in recent years due to the efforts taken by the Indian government and the MoT. Due to the presence of climbing rocks in large numbers throughout the country. Jodhpur. The scope for adventure tourism in India is endless because the country has a rich diversity in terms of climate and topography. Kanheri Caves. Auli etc. Various kinds of adventure on water. Paragliding in India has developed recently and paragliding facilities are available in a lot of places in India. This has been increasing due to the presence of a number of rivers. rock climbing as a kind of adventure tourism in India is taking off in a big way. 54 . White Water Rafting Whitewater rafting in India is a relative newcomer in the domain of adventure tourism in India. land. and rapids. and Bhagirathi rivers. Camel Safari Camel safari in India has also become very popular due to the initiatives taken by the tourist boards of some Indian states. The various places in India where tourists can go for rock climbing are Badami. Skiing Skiing in India as a kind of adventure tourism has become popular in the last decade. The places where a tourist can go for whitewater rafting in India are Ganga. This has given rise to skiing adventure tourism in India. and air can be enjoyed in India. The most famous destinations in India for camel safaris are Bikaner. The various kinds of adventure tourism as available in India are: • • • • • • • Rock climbing Skiing Camel safari Para gliding Mountaineering White water rafting Trekking Rock-climbing As a kind of adventure tourism in India. Manori Rocks. The places in India where tourists can go for skiing are Gulmarg. and Jaisalmer. Manali. Alaknanda. and Kabbal. and Jammu and Kashmir for indulging in mountaineering. Himachal Pradesh. Tourists can go to Garhwal. Mountaineering / Trekking Mountaineering in India is also quite popular in the arena of adventure tourism. The country has a large number of hill stations which have excellent skiing facilities.
India’s image as a conference destination is also projected through the chains of Hotels. bring tremendous amount of knowledge and frontier technologies particularly for the developing countries. her unmatched offering as a health destination or continually improved infrastructure facilities that over 3 million foreign tourists thronged her this year generating over US $30 billion as revenue. With increasing opportunities for holidays and leisure. with meeting rooms of distinction.Chapter 4 India MICE Market Meetings. incentives. spacious convention facilities. With the corresponding expansion in the network of airline operations. India is now becoming one of the leading venues for MICE in the region. It is estimated that the total national and international MICE meetings market all over the world is in excess of $270 billion. Incentives. The MICE infrastructure in the country has been developing rapidly and convention hotels and conference venues of international standards are being set up in cities across the country. Despite its recent troubles. the exotic and mystical. Exclusive business hotels and exotic resorts. It is a unique Conference Destination as it offers cultural and heritage sites. You could also offer the credit to the world class incentive programs. modern business centre’s and a wide range of conference facilities. There is a growing interest amongst tourists to experience the rich culture and heritage of India. Conferences & Exhibitions facilities. It is a recognized fact that international and regional conferences contribute greatly towards building up of mutual goodwill and understanding. Conventions & Exhibitions (MICE) market is a fast growing one and has exhibited a huge potential worldwide. excellent facilities of beach and adventure holidays which can be combined as pre and post conference tours to sum it up India has literally everything that a visitor wants to experience and can offer people a complete holiday. Incentives. encourage interaction between nations. India is growing and so are its meeting and convention facilities and leading Meetings and Conventions cities include: • • • • • • • • • Agra Bangalore Chennai Goa Hyderabad Jaipur Kochi Kolkata New Delhi India is marketing itself as a destination which can offer myriad of experiences. India is in a continual process of upgrading its MICE (Meetings. The inbound MICE (meetings. providing international standards in facilities and services. India Tourism Outbound • Nepal Perspective 2010 55 . There are multiple plans on the anvil for more world-class convention centers. India is ready to position and market itself as an important MICE destination. airports that contest with the best in the world and efforts to team the famous Indian hospitality with pitomizedn as per a visitor’s requirement. her ability to heal spiritually. even as most other preferred hotspots marked a decline in their tourism graphs. conventions and events) segment is growing at 15 to 20% annually.
luxury coaches. national and state highways. Today. India is going the global way and MICE is fast becoming a major part of its travel and promotional budgets. Marriott Hotels etc. Destinations have also begun to market MICE products to pitomized agencies and the corporate world at large. Indian & foreign-make vehicles add to the convenience and comfort of surface travel and. the Jaypee Hotels & International Convention Centre. better tourist surface transport systems including the Indian Railways.An excellent network of roads. 56 . Vigyan Bhawan in New Delhi. A large number of Convention Centres are available in India with a seating capacity of up to 2000 persons. India is globally connected to a network of over 50 international airlines and several domestic airlines. The Indian sub-continent is emerging as one of the finest Incentive destinations in the world owing to the diverse culture and geography. Cochin. the BM Birla Science and Technology Centre in Jaipur. Agra and the Cochin Convention Centre. ITC-Welcomgroup. more on business centre services. In the Indian context. many new convention centres. the Oberoi’s. It is estimated that a person travelling to a country for a conference or convention spends anywhere four to eight times more than a normal leisure pitomiz. India offers an educated manpower base where fluency in English and other official international languages can be expected. The incentive programmes are a combination of old world charm and tradition interlaced with modern cosmopolitan sophistication. Chennai. With the expansion in the network of airlines operation on the domestic routes. Renaissance Hotel and Convention Center in Mumbai.Chapter 4 Domestic Tourism in India India provides an impressive combination of accommodation and other conference support facilities to hold a successful Conference. Kochi etc together with facilities in the business hotels and resorts at various centers in the country. new centers of information technology. to add to this. To mention a few. Some important hotel chains like the Taj Group. Jaipur & Kolkata. Goa. incentives are at present the largest component of MICE but it is a maturing market. hotels and meeting facilities. The business of MICE holds enormous potential for any country. India is now an important MICE destination. Bangalore. Hyderabad. also have excellent conference facilities. Added to this is an elaborate network of surface transportation system. Meridien Hotels. which provide convenient connectivity within India. Agra. the Nehru Centre in Mumbai and the Chennai Trade Centre in Chennai amongst several other options. The exhibition industry has also gained fresh impetus with exhibition centre’s like Pragati Maidan in New Delhi. They spend more on food. comprising of airconditioned saloons decorated in the old Maharaja style . The important conference centres in the country are at New Delhi. Mumbai. there are distinct travel divisions within tour companies and airlines that exclusively target MICE movement. There is an excellent Railway system running through the entire country. All-important cities are connected with state-of-the-art ‘Shatabdi & Rajdhani’ Express trains. Special trains like Palace on Wheels and Royal Orient Express.
among the top cities in Asia-Pacific (APAC) region. According to Federation of Indian Hotels and Restaurants Association of India rates across India have fallen by 25 percent on an average. 2009 is expected to be much tougher for the Indian Domestic tourism. India’s domestic traffic continued to fall during the first three months of 2009 with passenger numbers on domestic flights down 15% in January.68 million giving it a market share of 27. Delhi and Mumbai have witnessed the sharpest decline in five-star hotel room rates and business class airfares in the first quarter of 2009. Kingfisher leads the way with 2. Combining Jet Airways (1.4%. are implementing cost-cutting measures such as reducing employee air travel and scaling back or eliminating group meetings at convention hotels and destination resorts. credit crunch and rising unemployment has placed the nation’s economy at or near recession – leaving lesser money available for consumers’ leisure travel and other forms of entertainment.7% is still ahead of Spicejet (12.6%. meanwhile.74 million) and JetLite (0. According to figures published by the Indian civil aviation ministry India’s airlines carried some 9.Chapter 4 Current Trends After several years of healthy growth. as per a study by business travel management firm Egencia. as the occupancy levels have fallen to 50 percent. hospitality and leisure (THL) industry.7 million domestic passengers in the first three months of 2009. (Airline Network News & Analysis. The combination of a global recession.2%) among the pure LCCs. Corporations.72 million) gives Jet a market share of 25. IndiGo with 13. 2009) India Tourism Outbound • Nepal Perspective 2010 57 . 9% in February and 15% in March. Among India’s international airlines Jet Airways and JetLite both achieved at least 75% average loads. Kingfisher’s new international services are so far filling around two-thirds of all their seats.
a partying delight.58 millions.12 millions arrivals which declined by 1. affordable air tickets. In 2008 Singapore posted 10. Southeast Asia posted the largest growth in arrivals for 2008. eat and play.Chapter 5 Current Trends and Information on Key Outbound Destinations which are Competitive to Nepal including Singapore. a corporate hub. also the best in education facilities and a home away from home. Thailand. shop. perfect adventure sports. from scuba diving to bungee jumping to off-road dirt biking. less travelling time.05 millions in 2008. steamy markets and a wealth of outdoor pursuits. In the past few years these countries have aggressively adopted marketing efforts to target Indian travellers. Existing under a diverse cultural. According to PATA Annual Tourism Monitor 2008. such as Phuket and Koh Samui. along with plenty of tourist-friendly infrastructure. India Tourism Outbound • Nepal Perspective 2010 59 . Uniquely Singapore and Amazing Thailand with television commercials of the same in all the leading channels and print ads in all the leading travel magazines. as well as the most popular country in terms of tourist numbers. As far as any international tourists (including Indian) are concerned they view theses destinations as value for money. It’s not just about travelling to these countries. Malaysia saw a 5. Malaysia for its top notch hotels and site seeing has surely won many hearts.3%.32 millions. a gastronomic den. rail and air travel networks ensure easy access to Malaysia and Singapore. considering the fact that the Indian have become more open about spending on holidays outside the country and exploring new places and specially the efforts of these countries in providing the Indian best of deals to bring them there. which follow closely in terms of popularity with huge. Singapore has always been a cosmopolitan city and has attracted major corporate giants. the number of international tourist arrivals to Southeast Asia registered 64. Sunshine and warm water.1% increase in international arrivals by 22. dense jungle. great sight seeing. Also these countries have opened there representative offices in India as the major part of their national income comes from Tourism. shopping at its best.8% to 14. During the same period Thailand showed a marginal increase in international visitor arrivals by 0. it’s also about working and studying in places like Singapore and Malaysia as a lot of Indian universities have their campuses located in this area and also Southeast Asia is also location of headquarters for a lot of multinationals. The best part about travelling in Southeast Asia is that it offers something for everyone. historical and linguistic framework that remains as varied and complex as ever. Among the five sub-regions of Asia Pacific. particularly in the winter high season. Thailand and Malaysia Since the past decade Tourism in mainland Southeast Asia has entered a new era. Extensive and cheap road. They have adopted strategies like Truly Malaysia. at 3. are swamped by foreigners. has become hugely popular with its top resorts.6% as compared to 2007. crowded cities. Thailand is without a doubt the transport hub of the region. frigid mountaintops. bustling cities to enjoy.
Mount Faber and many more. lying 137 kilometres (85 mi) north of the equator. Around 7. It is one of the most preferred 60 . Singapore Zoological Gardens. however it increased to 7. Holland Village.000 in the year 2008. who is first time traveller. 49. Current Trends Indian visitor arrival has doubled to Singapore in the last 5 years. 78. Little India. Singapore Mint Coin Gallery and if one is more of an explorer must visits are the China Town. Night Safari. Prosperous and well-off business men. However there are other places of interest such as the Philatelic Museum. Thailand and Malaysia SINGAPORE Republic of Singapore is an island city-state located at the southern tip of the Malay Peninsula. Butterfly Park and Insect Kingdom when travelling with children.Chapter 5 Current Trends and Information on Key Outbound Destinations which are Competitive to Nepal Including Singapore. Profile of the Indian Traveller • • Strong middle class Indian.000 tourist arrivals were recorded to Singapore. Capital City City of Singapore Places of Interest There is a lot to do in Singapore such as one can visit Jurong Bird Park. The Singapore Crocodilarium.
1 days and in 2009 it is expected to hit double digits. efforts of Singapore Tourism Board (STB) in India to attract Indian travellers and promote Singapore as a family destination.03. MARKETING INITIATIVES The STB with its office in India works in close proximity to satisfy the needs and wants of the Indian tourist and Indian palette. Even Jet has started its flights to Singapore. Months when Indian Likes to Travel to Singapore About 60% of the Indian’s travel to Singapore in the months of May and June. Successful Airline tie-ups .visas. The Singapore Tourism Board frequently works with its travel trade partners to provide the Indian’s with special value-added travel packages to make their visit to Singapore even more memorable. TABLE 14.000 Indian arrivals in the month of May.*N/A VISAS To strengthen ties with India. Other months are October and November. It is also targeting the tier-II cities in India as there is a registered growth of 4. Duration of the Stay in Singapore The average length of stay in 2003 was 9. No.5% in the year 2008. Singapore’s India-Promotion Plan MONTHS Indian Calendar JANUARY Wedding Season FEBRUARY MARCH Wedding Season School/ college exams APRIL School/ college exams/ Summer Vacations Cruise/ GSS Family MAY School/ college Summer Vacations JUNE School/ college re-open JULY *N/A Singapore Promotes Cruise Romance Cruise Romance Cruise Family *GSS Romance *GSS Romance *GSS Romance *GSS – Great Singapore Sale *N/A – Not Available India Tourism Outbound • Nepal Perspective 2010 61 . According to the reports India features in the top seven markets for Singapore and will come up to top five in the next two to three years. It has also been noted that on an average there are 1. Singapore tourism board has introduced e. of Flights in a Week from the Capital City to Singapore Singapore Airlines offers flights from all the major metros from India including Hyderabad.Chapter 5 destinations by the Indian tourist because of its easy accessibility and cheap air tariff. corresponding to summer holidays.
wireless/ broadband internet connection in the room. minister of tourism and minister of housing and urban poverty alleviation. The agreement was signed by Sujit Banerjee. The Raffles. 24. Singapore. Fullerton and Capella. government of India and S. The board is also targeting the stopover markets. many flights have their halts in Singapore. Kuoni has exclusively tied up with these luxury hotels to promote the Great Singapore Sale. its advertisement campaign ‘UNIQUELY SINGAPORE’ is breaking fresh grounds. 62 . 2009 to July 26. STB. Four Seasons. Kuoni in Association with STB Announces Launch of Luxury Packages for Great Singapore Sale Kuoni in association with STB. Singapore has some of the best Luxury Hotels in the world such as Marina Mandarin. beauty and wellness to nightlife and entertainment. 2009. Thailand and Malaysia ELECTRONIC MEDIA The STB has launched many television commercials in the past. senior minister of state for trade and industry and education. These include Chinese set lunch. discounts on Spa treatments. There strategy is also to penetrate regionally by TVC’s and destination advertising in serials like SONAR HORIN (BENGALI). Sentosa Spa & Resort. has announced exclusive high-end luxury packages for the Great Singapore Sale scheduled to take place from May 29. PRINT MEDIA The STB tries to market aggressively with their double spread advertisement in all the leading magazines and newspapers. Kuoni offers an exclusive discount of 10 per cent for MasterCard members on the Great Singapore Sale package. for mutual benefit.Chapter 5 Current Trends and Information on Key Outbound Destinations which are Competitive to Nepal Including Singapore. lunch and evening cocktails. hence avoid the price war. government of Singapore witnessed the signing by tourism officials of India and Singapore. St Regis. 1994. secretary (Tourism). India and Singapore Joint Action Plan on Tourism Cooperation India and Singapore has signed a joint action plan on tourism cooperation. etc. specially travel supplements and weekend newspapers conveying facts like Singapore is a ‘shopper’s paradise’ etc. late check out. They believe that the destination provides a flavour of both the east and west. The Joint Action Plan reiterates the provisions of cooperation enshrined in the bilateral agreement on tourism signed between India and Singapore on Jan. Kumari Selja. chocolate buffet. Moreover it has also launched its mega campaign directed specially at ‘CHILDREN’ in channels like POGO which tries to sell the city as a fun place. TRAVEL PACKAGES The STB has made a deliberate effort not to play a violent price game like its competitors (Thailand and Malaysia) where its travel packages are concerned. As part of Kuoni’s high-end packages for Singapore. such as member countries of ASEAN and China. With the Great Singapore Sale Tourist Privilege Card the customer can enjoy special privileges ranging from dining. and hence to capture that halting traffic they are introducing stopover packages. Customers can enjoy the Great Singapore Sale Tourist Privileges and get 50 per cent off on iPod Touch and up to 55 per cent off on branded items. The objectives of the joint action plan are to strengthen joint marketing collaboration in third countries. Iswaran. Anti Stress Back massage. government of India and Lawrence Leong Yue Kheong. Swissotel Stamford. sightseeing. use of the Spa facilities. travelers can also avail additional benefits that are complimentary for Kuoni clients. assistant chief executive of International Group. daily full buffet breakfast. chocolate fondue set.
and partake in the unique culinary events. exchange programs. With a premier line-up of industry conferences and highlights such as an aerial display by the Australian and Singapore Air Forces. students and by exchanging information on teaching modules and curriculum. The Great Singapore Sale Currently in its 14th year. conference all around the year. the Singapore Air show attracted over 120. EVENTS AND PROMOTIONS To compete with the ever changing market. Where feasible. consider organizing a Singapore and India week at the sidelines of tourism fairs and to promote and encourage human resource development in tourism and travel related industries by collaborating through exchange programs for faculties. giving food lovers from all over the world an opportunity to sample the wide variety of Singapore’s local food favourites. Asia’s largest aerospace and defence event. exhibition of rarely displayed aircrafts. and vouchers for them to enjoy various attractions that show the different sides of Singapore.000 public and trade visitors over its six-day run. This year’s GSS showcased the spirit of Singapore. travel agents and tourism operators. promotions. and simulator rides. Global Movie Marketing Collaborating with Hollywood movies and hosting their world premiers in Singapore in co-ordination of tieup with other countries. accommodation. key officials from race promoter Singapore GP Pte Ltd and the STB witnessed the first demonstration of the lighting system to be used by the world’s first Formula One night race. It also includes the following: Where appropriate. S. with the aim to create awareness about tourist attractions in each others‘ countries. intriguing food trails and attractive dining promotions island-wide. with a range of uniquely Singapore brands. as well as shopping precincts in the heartlands. the Great Singapore Sale (GSS) returned with attractive offers. with a different theme. India Tourism Outbound • Nepal Perspective 2010 63 . the 2008 FORMULA 1. Mr. tempting rewards and exciting events. winners won a 3 nights and 4 Days trip to Singapore that included air tickets. STB for its travellers organise festivals. lifestyle products and collectibles that locals and visitors can take home . Formula One Night Race Senior Minister of State for Trade and Industry.Chapter 5 To promote reciprocal visits of media representatives. In the year 2008 the board marketed events were : Singapore Air Show 2008 The inaugural Singapore Air show. shoppers and visitors enjoyed discounts of up to 70% along the central shopping belt of Orchard Road and Marina Bay. Singapore Food Festival The Singapore Food Festival serves gastronomic treats in this month-long event. is a joint venture between the Civil Aviation Authority of Singapore and the Defence Science & Technology Agency. Iswaran. Featuring an eight-week shopathon. participate in tourism fairs in India and Singapore respectively.
In India they aim to strengthen the consultant network and recently 2. Less about travel and all about healthcare choices.Chapter 5 Current Trends and Information on Key Outbound Destinations which are Competitive to Nepal Including Singapore. and the second most desired destination for medical care and treatment after the United States by a Reader’s Digest Asian Health Survey across seven Asian cities in 2007. This also resulted in launch of Patients Beyond Borders. excellent infrastructure and great attractions. nurtures the medical travel market and promotes the development of overseas referral channels to strengthen the seamless delivery of quality healthcare to international patients. a multi-cultural city. In 2007 the STB organized Education Awards to recognise the best in the industry and also awarded scholars for their excellent work.1 million Singapore education supplement booklets were distributed to all the leading newspapers. By 2012. Singapore Edition is voted the “Best Medical/Wellness Tourism Destination” by Travel Weekly (Asia) Industry Awards 2007 in June for the second year running. World-Class Medical Tourism. cost-effective decisions about travelling abroad for their healthcare. Singapore was the venue for the launch of Patients Beyond Borders Singapore Edition on 23rd July. affordable and safe healthcare and becomes Asia’s leading medical hub. The key role of the board is to engage in a myriad of promotional activities undertaken by the Education Services Division which includes:• • • Organising Education Exhibitions and Seminars Participating overseas education road shows to increase brand awareness and reach out to the target markets Singapore Education’s brand Advertising and Publicity 64 . this consumer guidebook provides practical answers for the increasing numbers of Americans facing long-term financial insecurity due to challenging medical conditions. which will help generate student traffic. not only for business and leisure. is a trade paperback offering health travelers all the resources required to make safe. Written by Josef Woodman and published by Healthy Travel Media. Thailand and Malaysia MEDICAL TOURISM The STB ’s aim is not only to focus tourist holidays but it has also made sure that it promotes its self in other areas which makes Singapore truly unique. This initiative is also led and supported by the Singapore Tourism Board. in Singapore. SINGAPORE EDUCATION In year 2003. Patients Beyond Borders: Everybody’s Guide to Affordable. It is the STB’s responsibility to spearheads the branding and marketing of Singapore’s healthcare services overseas. Patients Beyond Borders is the first comprehensive guide for Americans considering medical tourism. They have tied-up with the Indian university to build campuses such as S. rich in contrast and colour with strategic location. but also for world-class. Though it is dynamically. Singapore hopes to attract 1 million medical travelers annually. government of Singapore established and promoted Singapore as a premier education hub and help international students make an informed decision on studying in Singapore. the STB has made sure that Singapore becomes a leading destination.P Jain Management School.
Hence the STB honors the establishments that are attentive to enhancing the visitors’ experience. The Singapore Service Star is a scheme that will help businesses achieve service excellence which will ultimately lead to greater consumer spending.Chapter 5 SINGAPORE SERVICE STAR The Singapore Service Star is an accreditation scheme that seeks to epitomize and promote businesses that deliver good service and exhibit sound business practices. benefiting both industry players and Singapore as a tourist destination. The board is offering help and clearances to production houses who would like to shoot in Singapore. this scheme is designed to enhance tourists’ confidence when transacting in Singapore and deliver a truly unique experience to the visitors. Strategy plan for India is to promote Singapore as an ultimate Romantic. Indian Movie shoots – The STB figures that the movie industry can be big force multipliers. India Tourism Outbound • Nepal Perspective 2010 65 . when the IIFA Awards were held in the early 2004. Amitabh Bachchan to promote Singapore. Developed by the STB. OTHER STRATEGIES • • Indian Brand Ambassadors – The STB used Indian superstar Mr. especially if the movies are shot in the more attractive parts of the city. Family and Educational destination. Identifying two key markets: Conferences and Meeting and Honeymooners • ECONOMIC SLOWDOWN In 2009 they strategise to beat the economic slowdown and sustain tourism industry with their ‘UMBRELLA CAMPAIGN’ which includes ‘2009 REASONS TO VISIT SINGAPORE and many more.
Batu Feringgi. Gunung Mulu National Park. Mt Kinabalu. Sepang F1 Circuit.Chapter 5 Current Trends and Information on Key Outbound Destinations which are Competitive to Nepal Including Singapore. Thailand and Malaysia MALAYASIA Malaysia consists of 13 states and three federal territories in Southeast Asia with a total landmass of 329.000 visitors from India travelled to Malaysia in the year 2003 and 550. Taman Negara. Langkawi and Penang. Genting. It is divided into two parts. Sipanden and Genting Highlands. KLCC Twin Towers. namely Peninsular Malaysia and Malaysian Borneo.738 Indian arrivals were registered in the 2008. Langkawi. who is first time traveller Prosperous and well-off business men Ambitious Indian youth who are aim to travel with friends Current Trends Around 145. Profile of the Indian Traveler • • • Strong middle class Indian. Capital City Kuala Lumpur Places of Interest Kuala Lumpur.847 square kilometers. They are putting efforts to lure 66 . The Malaysia Tourism Promotion Board (MTPB) aims at price sensitive Indian who has the tendency to visit places like Kuala Lumpur.
Most Popular Destinations among Indians Kuala Lumpur. hence they are straddling two markets • • The first ones are budget travellers and value for money market The well-off. VISAS There are tourist visas and also social visit passes for the long staying tourist. Mumbai. Genting Highlands and Langkawi. Successful Airlines Tie-ups Jet Airways had earlier signed a code sharing agreement with Malaysia Airlines and network-wide reciprocal frequent flyer partnership to provide customers with enhanced travel connectivity and privileges. Their strategies definitely differs from its counterparts. MARKETING INITIATIVES The MTPB targets to attract not only the big cities but they believe and even the tier-II and tier-III cities have major potential as they contain largely untapped first time travellers. Bangalore. Pune and Guwahati amongst others. of Flights in a Week to Malaysia Malaysia Airlines operates 32 flights from Chennai. as India is the sixth largest market for Malaysia. June and July.4 days in 2004. It is important to note that Malaysia entertains 20-25 % Indian from South India and Gujarat. Months when Indian Likes to Travel to Malaysia More than half of the Indian travel to Malaysia in the months of April May. The connectivity offered by the 70 direct flights per week from key cities of India available on the national carrier. Duration of the Stay in Malaysia The average stay was registered approximately 5. in its attempt to reach larger number of Indians. Out of the total Indian visiting the country 76% are mainly for holidays and honeymoons and are first time travelers. as well as other foreign airlines flying to the Far East region. The board has initiated road shows in smaller cities and semi-metro and also plans string of promotions in cities like Ludhiana.7 days in 2005 as compared to 4. Nashik. Kochi. Indore. Hyderabad and Delhi to Kuala Lumpur.Chapter 5 Indian tourist in other places like Kota Kinabalu etc. Malaysia Airlines and Indian Airlines have a similar agreement in the past. No. where the money is not an issue India Tourism Outbound • Nepal Perspective 2010 67 . 43% out which are in the age bracket of 25-34 years. while Jet Airways has one flight connecting Mumbai and Kuala Lumpur.
Malaysia doesn’t lag behind on the conference and convention sector either. Thailand and Malaysia Tourism Malaysia Taps Tier-II Cities in India for MICE Traffic Tourism Malaysia recently concluded its six-city MICE (Meetings. PRINT MEDIA The MTPB tries to market aggressively in all the leading magazines and newspapers specially travel supplements and weekend newspapers conveying facts like Malaysia is full of adventure etc. In the past Tourism Malaysia has unleashed 68 . offering specialist facilities catering for meetings and conferences.000. Conventions. TRAVEL PACKAGES The MTPB strategizes to attract Indians by cut-rate budget packages and aggressive marketing its main target is to catch on as a hot destination for price-sensitive Indians. makes it an ideal MICE hub from India. India continues to remain an important tourism source market for Malaysia with 3. In terms of MICE.35.360 hotels supplying 1.60.Chapter 5 Current Trends and Information on Key Outbound Destinations which are Competitive to Nepal Including Singapore. which was targeted at the high-yielding corporate travellers from the Indian market. This makes the procedure a whole lot easier and cost-effective as one can commission local professional support as against flying down people from India.000 arrivals from Indian market this year. registering an overall increase of 28. Malaysia also offers professional expertise to facilitate conference or convention needs in the country.Malaysia has the expertise.241 Indian arrivals between January to July 2008.8 per cent as compared to the number of arrivals last year for the same period. The road show. Malaysia currently has 2. International Rubber Glove Exhibition And Conference (Malaysia is the largest producer of surgical gloves). Medical Scientific Exhibition and Conference and many such events. Apart from the infrastructure and facilities.000. which showcased the infrastructure and state-ofthe-art amenities to host and hold international conferences at the convention centres both in Kuala Lumpur and beyond. Chandigarh. However the focus remains more on travel packages. Incentives. the total conference arrivals recorded last year were 1. Pune.327 rooms. Hyderabad and Madurai. The thrust of the road show was to provide holistic product update through ‘Meet & Experience Malaysia’ programme. was organised in Ahmedabad. ELECTRONIC MEDIA The MTPB’s advertising campaign Malaysia-‘Truly Asia’ has won the hearts of many Indians and highlights the countries rich flora and fauna. Leading the race in incentive destinations. as well as other foreign airlines flying to the Far East region. The country actually has companies termed ‘Professional Conference Organisers’ or PCOs that specifically cater to MICE needs. Foodex Asia. Malaysia has a sound backing of world-class hotels adjoining the convention centres. It initiates to target the aspirations of every Indian to travel abroad. state-of-the-art centres and services to cater to this segment. Malaysia has hosted more than 100 MICE events from India representing varied industries. Malaysia is now set to capture a greater share of the international MICE market to represent at least ten per cent of the total arrivals to Malaysia. The connectivity offered by the 70 direct flights per week from key cities of India available on the national carrier. It hosts a number of conferences and conventions annually. These are exhibition contractors who handle the logistics and smooth functioning of a small to large scale exhibition. Tourism Malaysia aims to target 500. Exhibitions) road show in an effort to generate higher MICE traffic from India’s Tier-II cities. Kolkata. Important events include the Malaysia International Furniture Fair (MAFEX). over the years.
accessories. music. leisure and holiday packages tht is offered at discounted prices. 3.Chapter 5 attractive packages to visit Malaysia at a throwaway price. One can check out the bargains at shopping malls. ensuring visitors have endless opportunities to enjoy nature-based adventures. For example there are packages: for Rs. Malaysia Mega Sale Malaysia’s most popular shopping comes back every year. Thus was born ‘Malaysia-My Second Home’ programme to aim at Indians who want to stay in Malaysia for a longer duration.000 to 21. The events which are lined up in 2009 are: 1. accessories and many more. EVENTS AND PROMOTIONS Malaysia boasts an exciting year-round calendar of world class and unique local events. The festival is a prelude to the Harvest Fest celebration happening every year. Penang World Music Festival Music lovers get to revel with spectacular performances staged by world-renowned artistes and local musicians in a natural setting of lush greenery. This sale comes at a perfect time. electrical appliances. India Tourism Outbound • Nepal Perspective 2010 69 . Malaysia Savings Sale The Malaysia Savings Sale offers 37 days of fantastic retail therapy. home décor to dining. household equipment. It is also trying its hands on niche packages: for instance. Sabah Fest 2009 The state’s most anticipated event. it had launched Golf and Formula 1 incentive travel scheme for those who have the money to spend. 4. Visitors can find amazing discounts and special offers on a wide array of goods such as branded apparel. 18. specialty outlets and boutiques all around the country. And for the more affluent ones the MTPB works on various innovative packages. 2. fashion and food. The cool evening breeze and the hypnotic ethnic rhythms make it a memorable night! 5. Visitors can shop and save as most items which range from apparels. enriching cultural experiences or fabulous shopping sprees. Sabah Fest features spectrum of cultures and traditions through dance. great dining experience and fun-filled entertainment. Flower Festival The Flora & Fruit Festival in Malaysia is held in conjunction with the local fruit season.000 a couple can fly down to the country and avail complimentary hotels for four days with breakfast also thrown in. coinciding with the Christmas and New Year celebrations as well as the Malaysian school holiday season.
Chapter 5 Current Trends and Information on Key Outbound Destinations which are Competitive to Nepal Including Singapore. Malaysia won the best ecotourism destination award at the 2008 Travel. The hotspots include Langkawi. • • 70 . as a lot of Gujarati’s visit Malaysia every year from India. Tapping the Indian corporate by offering special facilities for holding company conferences and meetings in Malaysia. For instance it has teamed up with Hong Kong Tourism Board where the packages are clubbed with both the place. Thailand and Malaysia ECOTOURISM Ecotourism is a new theme being used by Malaysia to attract highend Indian tourists who are looking for something exotic and different from standard 5 star hotel holidays. For the second time in a row. Organising Malaysian Food festivals in the tier-II cities like Ahmedabad. Hence: twin destination marketing. OTHER STRATEGIES • Tourism Malaysia realises that most Indians prefer to visit more than one country in Southeast Asia on a holiday and on limited budgets. the only island in Southeast Asia recognised by UNESCO as a geo park because of its outstanding geological landscapes.Weekly (Asia) industry awards held in Singapore.
000 km2 (198. Phuket. who is first time traveller. Capital City Bangkok Places of Interest There are a lot of places to be explored in Chaing Mai. Chiang Rai. with a surface area of approximately 513. Prosperous and well-offs Indians who have lately started spending huge amount of money on weddings abroad. Bangkok and many more.000 sq mi). Ko Samui.Chapter 5 THAILAND The Kingdom of Thailand is the world’s 51st-largest country in terms of total area. India Tourism Outbound • Nepal Perspective 2010 71 . with approximately 63 million people. roughly equal in size to Spain. Pattaya. and the 20th most-populous country. Profile of the Indian Traveller • • Strong middle class Indian.
and four times a week from Hyderabad.000 to 16. Cathay launched a promotion putting a limited number of seats into the market at a low fare of 9.254 in 2007 to 1. Months when Indian Likes to Travel to Thailand Months of April May. June and July. Thai government has waived – off the visa fee until 4 June’09 which has been marketed as an additional incentive to visit Thailand.855.Chapter 5 Current Trends and Information on Key Outbound Destinations which are Competitive to Nepal Including Singapore.12. daily from Chennai and Kolkata. which has witnessed 1-2% growth.07 days which has noticed a hike since the same year. The regular fare is 15.000 seats a week. adding to capacity. The routes from Thailand to India are called ‘Happy all the way to the world’.971 while in February the arrivals were 32. Successful Airlines Tie-ups On 29 March ’09 Cathay Pacific started daily flights from Delhi to Bangkok. India visitor arrival contributed a total of 5. Indian visitors can obtain a visa on arrival at all international gateways in Thailand.06. This adds up to a total of 23.000 rupees.73. nine times per week from Bangalore. Thailand and Malaysia Current Trends The numbers of arrivals of Indian have surely changed in the past decade. The total numbers of Indian arrival at Suvarnabhumi International Airport in January this year were 35.29. No.321 in 2008 .000 rupees.237 in 2007 and Indians by nationality have also experienced a tremendous growth from 1. Duration of the Stay in Thailand The average length of stay for Indian in the year 2007 was 6. In 2009. of Flights in a Week to Thailand The airline with the most capacity is Thai International which flies twice daily from Delhi and Mumbai.845 in 2008. Most Popular Destinations Among Indian Bangkok and Pattaya 72 . As per the statistics by the Tourism Authority of Thailand (TAT) the number of Indian as per the country of residence have increased from 4. VISA Liberal visa formalities.732 in 2006 to 5.59.
EVENTS AND PROMOTONS Thailand festivals and events are around the year and in all parts of the country. great shopping. Beaches. and honeymooners. Increase B2B and B2C promotion in Tier II cities and joint promotions with travel agents. In 2009 its main focus is targeting tier II cities as they have great potential. Phuket Film Festival Laguna Phuket International Marathon. It is a borderless celebration of heritage. accessibility and proximity. Ko Samui and the Greater Mekong Sub-region. there is not even a single event which does not fullfill your needs. leading Indian tour operators are being presented with various ideas to feature in a package. and Festivals. Thailand’s annual “Amazing Thailand Grand Sale” starts in June every year and continues to offer visitors great bargains right through to 31 August. Heritage. ELECTRONIC MEDIA India is now being promoted under the “Amazing Thailand” brand name along with its key sub-themes. Nature. Amazing Thailand Grand Sale. PRINT MEDIA The TAT’s marketing strategies also cover advertising in a range of high-end publications. visa on arrival facility and year-round holiday destination. 2. Chiang Rai. India Tourism Outbound • Nepal Perspective 2010 73 .Chapter 5 MARKETNG INITIATIVES The TAT has always aimed at organising road shows all around the country to educate Indian travel and tour operators about Thailand. Health and Wellness. incentive groups. Phuket. 3. Krabi. A scenic route along some of Phuket’s most spectacular west coast bays makes this an event that attracts runners ready to achieve a personal best. It is for all kinds of travellers. TRAVEL PACKAGES The main selling points of Thailand in the Indian market include: value for money and affordability. Chic and Trendy Products. Rayong Funkky Fruit Festival. wedding parties. The TAT has identified target segments such as family groups. nature and culture in this stunning province of Rayong. 1. Organising road shows and workshops across India. Thailand is also a vital relaxation destination with a great deal of authentic Thai massages to offer. With its state of the art infrastructure and transportation Thailand is also making ends meet by initiating railway tourism. variety. New tourism destinations being presented include Chiang Mai. 4. whether you are on a leisure or business trip. in north and South and also in central Thailand. It is targeting women travellers with its great deals and discounts at the time of shopping and highlights its adventure and sea sports.
Looking into twin-destination packages in alliance with Myanmar. 74 .Chapter 5 Current Trends and Information on Key Outbound Destinations which are Competitive to Nepal Including Singapore. ECONOMIC SLOWDOWN Corporate travel followed by high-end tourist traffic and family holidays has been hit due to recession. Promising market is the Indian weddings which are exceptionally lavish and increasingly being staged abroad by the super wealthy. But the authority is making sure that there are no cancellations as the packages are much affordable. ‘Celebrity marketing’ by bringing Indian movie stars to Thailand for feature productions and other publicitygenerating events Targeting retired professionals and Senior Citizens. Thailand and Malaysia OTHER STRATEGIES • • • • • Efforts are also being made to go direct to consumers in joint promotions with supermarkets and retailers.
west and south by Haryana. Also indicative of the city’s wealth is its high rate of car ownership. NCR region is now the home to major international and domestic companies. Delhi. ITES. The origin of NCR is traced to the recommendation of first ever Master Plan of Delhi. Major Tourism Players of Focus AreasDelhi and Surroundings and Mumbai and Surroundings Delhi Delhi has a population of 14 million. NCR is the metropolitan area of Delhi which encompasses satellite cities like Faridabad.340 people per km². there has been a tremendous growth in the infrastructure and economy of these cities. MNCs and corporate bodies from all over the world are turning their heads towards Delhi sighting the manpower and skilled labor resource. It is the second largest metropolis in the country and it has utmost political importance as India’s national capital is located in New Delhi. manufacturing and other service industries Gurgaon: Gurgaon is located in the northern part of Haryana and the city’s population is around 1.Chapter 6 Consumer Characteristics. Rajasthan. IT. is situated in northern India and stands on the west bank of Yamuna River bounded by Uttar Pradesh and in the north. India Tourism Outbound • Nepal Perspective 2010 75 . Gurgaon is the main city of the National Capital Region of Delhi because it is the home to major IT companies and provides the best infrastructure in terms of schools. People from all parts of the country live in Delhi which makes the city very cosmopolitan in nature and there is unity among the citizens from all caste and creed. although the local home ownership rate is slightly below the Indian average.483 km². Ghaziabad and Faridabad were the names that came up for developing the whole NCR region. Gurgaon is famous for its outsourcing and off shoring services that contribute the most towards the economy of Gurgaon. Delhi is a cosmopolitan city where people are open to embracing new ideas and life style. States like Haryana and Uttar Pradesh have benefited a lot from the recent developments in sectors like Real Estate. ITES. Delhi also happens to be the political hub of India. The major industries in Gurgaon are IT. BPOs or other manufacturing and service industries. Delhi is bounded by four states namely Haryana. Noida. ITES. Therefore the neighboring states like Rajasthan.000 as per the 2001 census (SHARMA.000. 2007). Owing to the proximity with New Delhi. Outbound. Punjab. 2009). The prime aim was to reduce the burden of increasing population in Delhi and the growing demand for more space owing to large scale industrialization. every political activity in the country traces its roots to Delhi. housing societies and medical facilities. Uttar Pradesh and Punjab that have strong influence on the lifestyle of Delhi. auto manufacturing and pharmaceuticals. Delhi has the relatively low density of 9. You can notice the transition in the demography of people in Delhi with the changing lifestyle and the influence of modern ideas in the lives of Delhites. G. The city has its historical importance for the fact that it has been the home to Mughal Empire. the capital of India. roads. way back in the year 1962. Gurgaon.180 is almost double the national average(Urban age. Compared to other Indian cities. Haryana and Uttar Pradesh came into consideration for developing satellite cities of Delhi. Delhi spreads over an area of 1. be it IT. Apart from its historical importance. Ghaziabad and Noida. Gurgaon. Delhi’s per capita income of around US$6. Delhi’s economy is concentrated in the services sector.
Mumbai The capital of the State of Maharashtra. Outbound. which put the city on the global map.). of great prosperity and abject poverty. it has done a complete makeover by adding malls. Mumbai has higher than average productivity per capita. Yet the urban region continues to grow. The city is bounded by Delhi in the north. MtronPTI. IT companies. of 21st-century technology and medieval squalor. with a varied and fascinating history and many reasons to face the future with confidence. it welcomes people from all over the nation with open arms. The greater Mumbai. loss of wetlands. stretches over 438 km². there is something for everyone to engage in the city of Mumbai. Mumbai is a colourful (the saris. the city still has much to offer. Some of the main reasons behind the existence of these companies in Noida are the proximity of the city to Delhi and good infrastructure Faridabad: Faridabad is one of the main industrial cities of Haryana and comes under the region of Delhi & NCR. Mumbai is estimated to have an economy valued at US$126 billion (PPP). Major Tourism Players of Focus Areas. Fiserv. and it has an extremely high population density (27.348 people per km²). Impetus. 2004) Mumbai is also congested with people. Delhi has the advantage of its cosmopolitan society where there are people from every nook and corner of India. Interra and Xansa. 2007) Mumbai is India’s financial centre. It boasts the finest collection of Victorian buildings anywhere in Asia and a myriad of temples and mosques. Gurgaon in the west and the parts of Uttar Pradesh on the east and south. the bazaars. In terms of purchasing power parity (PPP). and a per capita income of US$6. GlobalLogic. its air is foully polluted by the barely controlled emissions of its factories and vehicles. Noida is home to many big international as well as national companies like AgreeYa Solutions. the city has a lower than average home ownership rate and proportion of young people. 76 . In India. CSC. the economic powerhouse of the nation. HCL. Metropolitan Region is the world’s fifth most populous metropolitan region. ATC Labs. Enriched with culture and abounding with places for entertainment and leisure. Being the capital of the world’s largest democracy. Newly developed Faridabad or New Faridabad is the most preferred destination for industries. In two years. The Greater Mumbai. electronic advertisements for dotcom companies. and many of its buildings are slowly crumbling. heart of the Hindi film industry and the industrial hub of everything from textiles to petrochemicals. This makes the city very multi linguistic and multi cultured. On the other hand. frequent flooding and critical issues concerning housing and the city’s slums. It is surrounded by river Yamuna in the east and the Aravalli hills in south and west regions.Chapter 6 Consumer Characteristics. EXL. Yet 62% of its population lives in slums – the highest percentage for any large Indian city.924 (PPP) in 2005. STMicroelectronics. Key challenges facing Mumbai include traffic congestion. Mumbai contributes 40% of national income tax and 60% of customs duty. corporate bodies and government departments Ghaziabad: A Newsweek survey. energetic and friendly city. Some projections state that Mumbai will overtake Tokyo as the world’s largest city within decades. Mumbai is the entertainment and financial capital of India but the city also has the largest slums in the country. Mumbai is a city of 19 million. However. (Economic Times. Delhi has embassies of more than 160 countries. Adobe Systems. epitomized by the destitute and crippled lying in rows beneath bright. vibrant. Known as the liberal cosmopolitan cities of India. hitech cities and golf courses to its new face. etc. service-sector employment and car ownership rates. Mumbai is a city of extreme contrasts. Birlasoft.Delhi and Surroundings and Mumbai and Surroundings Noida: Noida is one of the most modern cities of India with world class amenities and infrastructure. TCS. happened in 2006 and since then Ghaziabad has been hip and happening. (Urban Age. its streets are clogged with traffic.
13 Million 4.61 18. 323.00 Rs. 1.181.753.598.5% Rs.9% Rs.Chapter 6 DELHI MUMBAI ANALYSIS TABLE 15. 403.25% DELHI AND SURROUNDINGS AVERAGE HOUSEHOLD INCOME IN 2007-08 City Delhi Chandigarh Jaipur Jalandhar Amritsar Lucknow Ludhiana Kanpur Bhopal Average Household Income Rs.39 26. 289. 288. 3.768.89 % 10.00 Rs.48 India Tourism Outbound • Nepal Perspective 2010 77 .00 Rs. 328.00 Rs.04 Million 19.671. 422. 164.847.61 33. 1. 337. 1. 290. 2.8% Rs.48% 13.020.00 Rs. 1.267.155.00 Rs.46 Mumbai 57.00 Rs.4% Rs.00 NATURE OF INCOME City Salaried Class Average Income in lacs Business Class Average Income in lacs Delhi 53. 325. 191.00 Rs. 2. 1.5% Rs 1.939.5% 0.93 Chandigarh 61.58 % MUMBAI 4.99 Jaipur 31.05 31. 43.00 4. 2.00 6.73 Rs.00 Rs. 40.520. Socio-Economic Parameters of Delhi and Mumbai DEMOGRAPHIC PARAMETER Estimated Households Estimated Population Average Household size Per Capita Income Share to Urban Population Share to Urban Income DELHI 3.5% Rs.00 Rs.00 Rs. 157.8% Rs. 1.8% Rs. 457.3% Rs.059.78 Rs.254.44 Million 4. 298.00 MUMBAI AND SURROUNDINGS AVERAGE HOUSEHOLD INCOME IN 2007-08 City Mumbai Surat Ahmedabad Nagpur Pune Average Household Income Rs.23 43.39 Lucknow 45.02 Million 14.83 32.7% Rs.678.503.677.6% Rs.00 Rs.04 Ahmedabad 61.
8 4.17 5.0 0.0 5.Chapter 6 Consumer Characteristics. Major Tourism Players of Focus Areas. employment rate.1 Relevant Population Potential 10.2 4.6 0. reflecting low to high scores. they should be assigned a greater weighting in the overall score.8 4.Delhi and Surroundings and Mumbai and Surroundings Large Consumer Base and Increasing Affluence Levels Access to a large and relevant target group is possibly the most important parameter for any marketer in selection of markets. The E&Y created a weighted score Index by giving weightage to Affluence Index.8 3. vehicle ownership.9 0. The weighted scoring system is often used to evaluate and quantify a wide range of product concept criteria.38 4.5 0.5 4.59 8.0 0. Affluence Index of Delhi and Mumbai DELHI AND SURROUNDING CITIES City Delhi Chandigarh Jaipur Bhopal Lucknow Ludhiana Amritsar Kanpur Affluence Index 7.1 0.41 Ernst & Young Weighted Score 8. Typically. Markets are selected based on their affluence level as well as size (current and expected in the future) as a judicious mix of both would be critical for any market to be seen as high potential across top eight Indian towns.2 4.5 5.66 7.5 Source – City Skyline of India 2006 by Indicus Analytics Ernst & Young Analysis 78 . each criteria is also assigned a weighting factor that reflects its relative importance.8 4. Ernst and Young E&Y has created an Affluence Index which is calculated after analyzing various Affluence levels parameter such as per capita income. TABLE 16. Since some variables are more important than others.1 2.15 3.1 Future Growth 8. Relevant Population Potential and Future Growth to arrive at a consolidated weighted score and the same is summarised in table 16. internet usage and credit growth. the criteria are assigned values from 0 – 10. Individual ‘evaluation criteria’ are scored and weighted to determine an overall concept score.42 7. savings.1 3.5 4.3 0.17 7.6 5. Outbound.1 6.
50 5.8 GROWING AFFLUENCE MUMBAI City Mumbai Pune Ahmedabad Nagpur Surat Nasik Vadodara Indore Number of Retail Outlets 151.0 Relevant Population Potential 6.134 Number of Retail per 000 2.82 4.53 2.0005 0.962 3.47 4.15 2.0019 0.227 17.500 6.77 5.964 2.74 4.500 5.72 4.48 6.1 0.082 Number of Retail per 000 11.0009 0.131 5.17 6.5 1.25 3.9 4.642 8.0 0.697 1.9 4.8 2.1 5.60 Number of Malls 32 5 2 5 2 2 2 7 Number of Malls per 000 0.318 9.0006 0.37 3.7 0.0020 0.8 4.000 Population in 000 16.5 4.88 3.2 0.0018 0.5 3.0005 0.0013 0.338 2.47 2.0014 0.8 4.5 4.165 5.500 5.90 5.123 7.465 3.184 34.636 13.5 0.0009 0.2 2.0021 0.38 3.84 3.82 Number of Malls 28 9 5 4 2 3 1 1 Number of Malls per 000 0.000 3.3 5.39 1.0010 0.731 2.838 2.000 5.031 958 1.2 3.93 3.254 1.6 7.Chapter 6 MUMBAI AND SURROUNDING CITIES City Mumbai Pune Ahmedabad Indore Nagpur Surat Nasik Vadodara Affluence Index 6.000 8.2 Future Growth 7.9 1.0012 0.956 Population in 000 13.0014 0.0022 India Tourism Outbound • Nepal Perspective 2010 79 .308 1.978 3.38 Ernst & Young Weighted Score 6.74 3.0005 GROWING AFFLUENCE DELHI City Delhi Chandigarh Bhopal Lucknow Ludhiana Kanpur Amritsar Jaipur Number of Retail Outlets 40.742 30.9 4.076 7.2 3.
1000-2000 Madh-Marve Manori Thane Madh Island Karnala 101-200 Short Break Over night Car / Bus / Rail Rs.400 Delhi Oct-Dec 2008 Mumbai 56. 2000-5000 Kosi Mathura Hansi Alwar Bharatpur Sariska 201-300 Weekend 1-2 Nights Car / Bus / Rail Rs.830 5651. 2000-5000 Matheran Khandala Alibaug Lonavala Kamshet Rajmachi Kihim 201-300 Weekend 1-2 Nights Car / Bus / Rail Rs.065 53. 20000 + Manali Vaishno Devi Jammu Kashmir Goa Mumbai Varanasi Khaujurao Tirupati Kerala Karnataka Tamil Nadu Rajasthan 80 . 20000 + Shirdi Goa Delhi Tirupati Uttar Pradesh Kerala Karnataka Tamil Nadu Rajasthan DELHI OUTBOUND MATRIX 0-100 km Impulse Same Day Car / Bus / Rail Rs.129 5754.Delhi and Surroundings and Mumbai and Surroundings TABLE 17.173 5931. Outbound. Major Tourism Players of Focus Areas.544 5673. 10000-20000 Naukuchiatal Nainital Gwalior Ramgarh Sattal Mallital Mukteshwar Shimla Kufri Chail 500+ Planned Holiday 3 Nights + Rail / Air Rs. 5000-10000 Agra Lansdowne Haridwar Rishikesh Dehradun Chandigarh Jaipur Parwanoo Corbett Mussoorie Shekhawati Kasauli Bhimtal 301-500 Long Weekend 2-3 Nights Car / Bus / Rail/Air Rs. 5000-10000 Kashid Beach Malshejghat Jawhar Pune Bordi Murud Nasik Silvassa Bhandardara Daman & Diu 301-500 Long Weekend 2-3 Nights Car / Bus / Rail/Air Rs. Outbound Movements from Indian Cities OUTBOUND MOVEMENTS Air Traffic Movements Delhi Aircraft Movement Passenger Traffic 53.Chapter 6 Consumer Characteristics.629 Jan-March 2009 Mumbai 56. 1000-2000 Manesar Surajkund 101-200 Short Break Over night Car / Bus / Rail Rs. 10000-20000 Khanvel Raigad Shriwardhan Mahabaleshwar Chiplun Panchgani Saputara 500+ Planned Holiday 3 Nights + Rail / Air Rs.354 MUMBAI OUTBOUND MATRIX 0-100 km Impulse Same Day Car / Bus / Rail Rs.
2000-5000 Mashobra Shimla Dehradun Mandi 201-300 Weekend 1-2 Nights Car / Bus / Rail Rs. 5000-10000 Wankaner Mount Abu Rajkot Udaipur Kutch Gondal 301-500 Long Weekend 2-3 Nights Car / Bus / Rail/Air Rs. 20000 + Mumbai Goa Delhi Tirupati Uttar Pradesh Kerala Karnataka Tamil Nadu Rajasthan CHANDIGARH OUTBOUND MATRIX 0-100 km Impulse Same Day Car / Bus / Rail Rs. 10000-20000 Lansdowne Corbett Vaishno Devi 500+ Planned Holiday 3 Nights + Rail / Air Rs. 20000 + Jammu Kashmir Mumbai Goa Tirupati Uttar Pradesh Kerala Karnataka Tamil Nadu Rajasthan India Tourism Outbound • Nepal Perspective 2010 81 . 1000-2000 Parwanoo Morni Hills Kasauli Chail Kufri 101-200 Short Break Over night Car / Bus / Rail Rs.Chapter 6 AHMEDABAD OUTBOUND MATRIX 0-100 km Impulse Same Day Car / Bus / Rail Rs. 1000-2000 101-200 Short Break Over night Car / Bus / Rail Rs. 5000-10000 Mussoorie Rishikesh Amritsar Dharamshala Kangra Haridwar Hansi Kullu Delhi Palampur Gurgaon Sangla Manali 301-500 Long Weekend 2-3 Nights Car / Bus / Rail/Air Rs. 10000-20000 Jamnagar Junagadh Ranakpur Sasan gir Kumbhalgarh 500+ Planned Holiday 3 Nights + Rail / Air Rs. 2000-5000 Baroda/Vadodara Surendranagar Palanpur Champaner Bhavnagar Danta-Ambaji 201-300 Weekend 1-2 Nights Car / Bus / Rail Rs.
20000 + Mumbai Goa Delhi Tirupati Uttar Pradesh Kerala Karnataka Tamil Nadu Rajasthan LUCKNOW OUTBOUND MATRIX 0-100 km Impulse Same Day Car / Bus / Rail Rs. 2000-5000 201-300 Weekend 1-2 Nights Car / Bus / Rail Rs. 2000-5000 Gurgaon Manesar Agra Kota Kosi Delhi 201-300 Weekend 1-2 Nights Car / Bus / Rail Rs.Chapter 6 Consumer Characteristics. 2000-5000 201-300 Weekend 1-2 Nights Car / Bus / Rail Rs. 10000-20000 Gwalior Agra 500+ Planned Holiday 3 Nights + Rail / Air Rs. 1000-2000 Sariska Ajmer Ranthambore Pushkar Alwar Sawai Madhopur Khimsar Bharatpur Shekhawati 101-200 Short Break Over night Car / Bus / Rail Rs. 5000-10000 Pali Nagaur Fort Bikaner Chittorgarh 301-500 Long Weekend 2-3 Nights Car / Bus / Rail/Air Rs. 1000-2000 Kanpur 101-200 Short Break Over night Car / Bus / Rail Rs.Delhi and Surroundings and Mumbai and Surroundings JAIPUR OUTBOUND MATRIX 0-100 km Impulse Same Day Car / Bus / Rail Rs. 1000-2000 Panhala Seoni Pench 101-200 Short Break Over night Car / Bus / Rail Rs. 20000 + Jaipur Mumbai Goa Delhi Tirupati Kerala Karnataka Tamil Nadu Rajasthan NAGPUR OUTBOUND MATRIX 0-100 km Impulse Same Day Car / Bus / Rail Rs. 5000-10000 Akola Pachmarhi Jabalpur Kanha Raipur 301-500 Long Weekend 2-3 Nights Car / Bus / Rail/Air Rs. 20000 + Delhi Mumbai Goa Delhi Tirupati Uttar Pradesh Kerala Karnataka Tamil Nadu Rajasthan 82 . Outbound. 5000-10000 Allahabad Varanasi 301-500 Long Weekend 2-3 Nights Car / Bus / Rail/Air Rs. 10000-20000 Ahmedabad 500+ Planned Holiday 3 Nights + Rail / Air Rs. 10000-20000 Agra Gwali Delhi Mathura 500+ Planned Holiday 3 Nights + Rail / Air Rs. Major Tourism Players of Focus Areas.
20.000.000. 50. 20000 + Delhi Tirupati Uttar Pradesh Kerala Karnataka Tamil Nadu Rajasthan TABLE 18. 10000-20000 Ajanta & Ellora Goa 500+ Planned Holiday 3 Nights + Rail / Air Rs. 20. 2000-5000 Matheran Mahabaleshwar Karnala Alibaug Raigad Kihim Bordi Mumbai Thane Madh Island Kashid Beach Bhandardara Shirdi Manori Murud 201-300 Weekend 1-2 Nights Car / Bus / Rail Rs.00 Singapore Thailand Malaysia Singapore Hong Kong Thailand Dubai Per Person Budget < Rs.000.000.00 Singapore Thailand Malaysia Dubai Hong Kong Per Person Budget < Rs. 50.00 Singapore Thailand Malaysia Singapore Hong Kong Nepal Per Person Budget < Rs. 5000-10000 Aurangabad Silvassa Nasik Chiplun Sangli Kolhapur Khanvel Solapur Mumbai Panhala 301-500 Long Weekend 2-3 Nights Car / Bus / Rail/Air Rs.00 UK Australia New Zealand Europe USA India Tourism Outbound • Nepal Perspective 2010 83 . 50. 50. 50.00 Turkey China Nepal Per Person Budget < Rs.00 UK Australia New Zealand Europe USA Gateway City Chandigarh Amritsar Ludhiana Jallandhar Jaipur Lucknow Agra Gateway City Mumbai Per Person Budget < Rs.000.000. International Travel Matrix Gateway City Delhi Per Person Budget < Rs.000.00 Dubai Per Person Budget < Rs.00 Turkey China Per Person Budget > Rs.000.000. 30.000.00 Nepal Per Person Budget < Rs. 50.Chapter 6 PUNE OUTBOUND MATRIX 0-100 km Impulse Same Day Car / Bus / Rail Rs. 1000-2000 Kamshet Lonavala Madh-Marve Khandala Rajmachi Panchgani 101-200 Short Break Over night Car / Bus / Rail Rs.000.00 UK Australia New Zealand Europe USA Per Person Budget > Rs.00 Turkey China Per Person Budget > Rs.00 Nepal Per Person Budget < Rs. 30. 30.000. 20.
Major Tourism Players of Focus Areas. 84 . The young and spending middle class is buying houses and other amenities in these towns. there is a massive growth in the satellite areas of Delhi and Mumbai.000. There are excellent job opportunities in these cities and qualified professional with an aspirational life style like to settle in these cities. 30. Faridabad in Delhi and Navi Mumbai towns near Mumbai. Outbound.00 Dubai Per Person Budget < Rs.Chapter 6 Consumer Characteristics. Most people would work in these cities and stay at close by areas.00 Turkey China Per Person Budget > Rs.000.000. Due to extreme pressure on infrastructure. 50. 20. The growth of satellite towns and the good development of infrastructure such as malls and golf courses is an indication of their rising status. 50. They love to spend their money on luxuries and like to take holidays as and when possible.Delhi and Surroundings and Mumbai and Surroundings INTERNATIONAL TRAVEL MATRIX Gateway City Ahmedabad Pune Surat Vadodara Nagpur Per Person Budget < Rs. Gurgaon.00 Singapore Thailand Malaysia Singapore Hong Kong Nepal Per Person Budget < Rs.00 UK Australia New Zealand Europe USA Importance of Surrounding Areas near Delhi and Mumbai for Promotion of Tourism to Nepal Delhi and Mumbai work as magnets to High Income and Medium Income families. They are the right target audience for planning a tourist attraction campaign. These include towns such as Noida.000.
the current situation needs to be reviewed. lifecycle) Economy (income. The main reasons for the same could be the following: • • • • Perceived Security Risk Undifferentiated product offering Accessibility Competition from other destinations While focusing on the same customer segmentation. Markets can be divided in a number of different ways: • • • • • • • Purpose of travel (Business. Nepal traditionally has had very stable numbers from India. all Market segmentation of Indian Tourists have been done keeping the Indian International traveler in mind and which can be segmented in two broad categories: • • Leisure Traveller Business Traveller India Tourism Outbound • Nepal Perspective 2010 85 . Wildlife. Leisure) Geography (Which part of India) Buyer needs and motivations (What are they seeking in the product) Buyer or user characteristics (What will they do) Demography (age. Heritage. Nepal tried to create other possible tourism product mix such as Secondary destinations. gender. and greater levels of tourist satisfaction. occupation) Price (How much price are they willing to pay) Before arriving at the suggested market segmentation for Nepal. the numbers went down in the last decade. education. They acknowledge that the needs and wants of tourists worldwide is not the same and that concentrating their efforts on a small part of the overall market will enable them to raise their credibility. have higher levels of tourist satisfaction and more costeffective marketing efforts. Typically customer segmentation for Nepal tourism was focused on outbound International traveler from India who is leisure or a MICE traveler. A tourism promotion strategy was devised to attract these consumers and despite all the promotions done. Adventure Sports etc and did tourism promotion activities.Chapter 7 Suggestions on Market Segmentation with Special Reference to Nepal Market segmentation is the process of dividing up a total market into smaller parts that share common characteristics. in order to deliver services to those people most likely to be competitive tourism destinations and industries have marketing strategies that target specific market segments in order to provide high value products and services. In the past.
Suggestions on Market Segmentation with Special Reference to Nepal
After reviewing the major travel websites, travel magazines, newspapers etc. Nepal as a destination doesn’t seem to leave a mark and lure Indian travelers interested in international leisure travel destinations. Most Indian travelers seeking a holiday abroad can be divided in three major categories: • • • First time travelers Second time travelers Well seasoned travelers
First Time Travelers
These categories of travelers are choosing Far East as their first point of travel from North India. From West India, they are choosing between Far East and Middle East destinations. They are spending over Rs. 25000.00 per person on their travel and a family of four ends up spending over Rs. 100,000.00 on their trip.
Second Time Travelers
This category is choosing UK and Europe as their travel destinations. They are spending over Rs. 50,000.00 per person on their travel and a family of four ends up spending over Rs. 200,000.00 on their trip.
Well Seasoned Travelers
This category is now choosing exotic locales such as Egypt, Turkey, China, South Europe, Spain and USA as their travel destinations. They are spending over Rs. 100,000.00 per person on their travel and a family of four ends up spending over Rs.400,000.00 on their trip. Nepal with a per person cost of around Rs.15,000.00 is unlikely to be considered by Leisure Travelers and Nepal hardly figures in their option list.
For Nepal, there is minimal business travel from India and the only segmentation interesting for Nepal is the Conference and Incentive sector. International Conference and Incentive sector can be divided into three major segments depending upon price segmentation. Budget to Economy – For Corporations spending less than Rs. 25,000.00 – 45,000.00 per person, Thailand is emerging as the preferred option, followed by Singapore and Malaysia and UAE (Dubai) Luxury – For Corporations spending less than Rs.1,00,000. 00 per person, London and other European destinations are emerging as the preferred option. Grand – For Corporations spending over Rs. 150,000.00 per person and USA and High end European destinations are emerging as the preferred option.
Domestic Market Segmentation
With a large and booming domestic tourism market in India, it is strongly suggested that Nepal should focus on Indian tourists planning holidays in India. The price point of Indian domestic holidays is quite similar to a trip to Nepal and it will be far easier to generate numbers from Indian domestic market than focusing on Indian International outbound market.
Indian domestic market for Nepal could be segmented in the following categories: Family Holidays
People in the age group 30-39 year old may have children under 10 and are likely to travel with partner or as a family. Likely to pursue physical activities, visit nature reserves and place importance for their children learning from travel. Normally plan a 4-7 days holidays break. This group is more likely to visit Nepal than other groups and normally will plan their holidays well in advance.
TABLE 19. Characteristics of Family Holidays Family Holidays
Type of Group Estimated period of stay Group composition Things most likely to do
FIT 4-7 days Family with kids Tourism sites Historical sites Shopping Casino Extreme Adventure 2 months Kids and Family Kathmandu and Pokhara Rs. 30000.00 – 50000.00 3-5 stars
Things least likely to do Planning Horizon Decision Making Places to visit Budget Spend Hotel Type
India Tourism Outbound • Nepal Perspective 2010
Suggestions on Market Segmentation with Special Reference to Nepal
Young and Restless
People in the age group 18-25 year old, fresh out of college are likely to travel with partner or a group of friends. Likely to pursue physical activities. Normally plan weekend breaks and can also consider longer 10-12 day break. They plan their holidays at a short notice.
TABLE 20. Characteristics of Young and Restless Young and Restless
Type of Group Estimated period of stay Group composition Things most likely to do Things least likely to do Planning Horizon Decision Making Places to visit Budget Spend Hotel Type
Group, by Bus Both short and long breaks Friends Nightlife Adventure and Shopping Religious Circuit 15-20 days Price + Options Kathmandu and suburbs Rs. 5000.00 – 10000.00 1 – 2 stars
Young Working Couples
People in the age group 25-40 year old, both members have earning and no kids. Normally plan short term breaks and prefer interactive travel experiences to passive holidays. They tend to crave physical or psychological challenges and generally have a higher than average money to spend per trip. They plan their holidays at a short notice.
TABLE 21. Characteristics of Young Working Couples Young Working Couples
Type of Group Estimated period of stay Group composition Things most likely to do
FIT 3-4 days Friends Unique experiences Extreme Adventure Night Life and Shopping Religious Circuit 10-15 days What’s available Varied 3-5 stars, Boutique, Camps Rs. 20000.00 -25000.00
Things least likely to do Planning Horizon Decision Making Places to visit Hotel Type Budget Spend
Middle Age Consumers
People in the age group 40-55 year old, have children at home and are likely to travel with partner or as a family. Travel focuses on getting close with nature and immersing in local culture while having a chance to rest and recharge.
TABLE 22. Characteristics of Middle Age Consumers Middle Age Consumers
Type of Group Estimated period of stay Group composition Things most likely to do Things least likely to do Planning Horizon Decision Making Places to visit Hotel Type Budget Spend
Group by Air 5-10 days Friends Sightseeing cultural and heritage Night Life Shopping Extreme Adventure-Rafting, bungee jumping etc 4 weeks Friends, past experience Varied 3-5 stars, Boutique, Camps Rs. 25000.00 – 30000.00
People in the age group 45-65 year old with no children at home are likely to travel with partner or group of friends. Personal growth is important when choosing destination and would like to visit and complete various religious destinations normally plan their holidays well in advance.
TABLE 23. Characteristics of Religious Groups Religious
Type of Group Estimated period of stay Group composition Things most likely to do
Group 5-10 days Professional Tour operator Religious circuit Culture Historical Shopping/Casino 2 months Group All religious sites 2-3 stars Rs. 10000.00 – 20000.00
Things least likely to do Planning Horizon Decision Making Places to visit Hotel Type Budget Spend
*This age group is also highly likely to visit Kailash Mansarover depending on their spending capacity as the trip can cost upto Rs. 100,000.00 or above per person.
India Tourism Outbound • Nepal Perspective 2010
Characteristics of Retired and Leisure Holiday Makers Retired and Leisure Holiday makers Type of Group Estimated period of stay Group composition Things most likely to do Characteristics Group 5-10 days Professional Tour Operator Culture Religious Historical Night Life 1-2 months Family Kathmandu and Pokhara 2-3 stars Rs.000.Chapter 7 Suggestions on Market Segmentation with Special Reference to Nepal Retired and Leisure Holiday makers* People in the age group of 55 to 60 + years. TABLE 24. Want to be inspired and challenged by a destination. 100. with children settled are likely to travel with partner or tour group.00 Things least likely to do Planning Horizon Decision Making Places to visit Hotel Type Budget Spend *This age group is also highly likely to visit Kailash Mansarover depending on their spending capacity as the trip can cost upto Rs. Travel is about relaxation and learning something new and something they will talk about afterwards. 90 . This group can spend maximum time at a holiday and want quality accommodation. 25000.00-30000.00 or above per person.
This includes stakeholders such as Hotels. India Tourism Outbound • Nepal Perspective 2010 91 .Chapter 8 Suggestions on Marketing Strategy. FIGURE 7. Restaurants. Policies and Programs for Nepal to Attract Indian Tourists Tourism plays a very important role in Nepal’s economy and is the key element to economic development. Tour operators. All these linkages are reflected as shown in figure 7. Trekking Agents etc. Tourism Supply Chain Transport to destinations Ground transport Excursions/ attractions Restaurants Lodging Furniture/ crafts Tour operating TOURISTS Waste management Catering Food production Laundry Energy supplies Infrastructure (including real estate) Marketing/ sales Source: Deloitte Analysis. Every one related to this industry gains by offering products and services to the tourists.
The figure 8 summaries the above mentioned linkages: FIGURE 8. 92 .Chapter 8 Suggestions on Marketing Strategy. If the Tourism Volume increases without a corresponding support by Supply Chain then the Tourists feel that they are not getting the appropriate value for the money which they are spending. Policies and Programs for Nepal Tourism Board to Attract Indian Tourists There is a major linkage between the Tourism Volume expansion and the Tourism Supply Chain Industry. Supply chain should be developed first before Tourism promotion exercise is planned. after taking into account infrastructure costs and implications for congestion Focus must be to use vibrant tourism sector to strengthen supply chains and capture value for the local economy High Low Value and volume of tourism Source: Deloitte analysis. Supply Chain and Tourism Volume Extensive • • • • Supply chains High absorptive capacity for indirect and induced benefits Well-developed supply chains Available domestic skills and labor force Effective tourism strategies focusing on enhancing value and volume of visitors would contribute greatly to wider e economic development Low levels of tourism Supply chains in the sector not fully developed Tourism strategy in this scenario must work alongside supply chain development to capture and maximize economic benefits • • • Well-developed supply chain and tourism sector Focus here needs to be enhancing value generated through segmentation and focus on high value added markets Sustain competitiveness and respond to emerging markets • • • • • • • Limited High levels of tourism activity Significant leakage of value due to limited supply chain links Any growth in tourism is unlikely to deliver net benefits.
Tourism Leverage Points High Security/safety Alternatives (availability) Infrastructure Alternatives (relative cost) Taxation Globalization Adaptability Welcome Place-making Choice of goods and services Skills Quality Potential impact Incomes Inflation Weather/seasonality Landscape and environment Tastes/attitudes Access Information provision Population Low Low Potential to influence High Destination attractiveness Investment Relative cost Spending power Demographic factors Destination attractiveness is the relative attractiveness of a tourist destination over time and attempts to quantify the impact of any improvements made in policy. transport infrastructure) and the development of the tourism supply chain. tourism infrastructure. Investment refers to tourism infrastructure (hotels. and trends and such as the aging of the population in many developed economies. etc.Chapter 8 Deloitte has made a thorough analysis on how perceptions impact the destination. recreation sites.. the dynamics of specific socioeconomic segments. Relative cost is a key factor influencing decisions of both domestic and international travelers. Demographic factors comprise overall population growth. Source: Deloitte analysis. (Deloitte. India Tourism Outbound • Nepal Perspective 2010 93 .) as well as public investment in areas supporting tourism (e. This is closely followed by what alternatives tourist has and what level of infrastructure is available. Security safety perception has the highest impact on Tourism movement. Some of the key factors which impact tourists have been highlighted in the figure 9. The recent significant appreciation of the dollar is a clear example of this at play. 2008) FIGURE 9. and so on.g. airplanes. Spending power is a significant driver of tourism amongst both domestic and source market residents.
it was realized that too many players and too many layers. Nepal Travel Agents and Tour Operators keen to make direct bookings from the Indian Market. There is competition from Nepal Hotels. gain perspectives and share visions on what Nepal should do to attract more tourists from India. Currently a lot of Indian Travel Agents are doing a lot of marketing on a lot of fronts to promote Nepal as a destination. making a menu of offerings available and à la cart shopping were seen as key to attracting emerging and niche markets. infrastructure is poor. While some regions in Nepal are more organized than others. product offering lacks novelty. There were also comments about focussing on high-yield. Flexibility and customization will be required as operators figure out how to attract new visitors. On the other hand. There was considerable agreement that the industry is fragmented. The importance of identifying Nepal’s niche and enhancing market readiness was stressed by Travel Agents. that it is not organized to be a highly desirable destination. Travel Agents talked about how best to organize the industry. to best position Nepal. The “accessible excitement. an underlying message was evident that an under-resourced structure and undervalued industry is much less of a problem than product development and infrastructure support. Packaging should not be synonymous with discounting. as well as those that accentuate the diversity of a Nepal holiday. which are less ecologically demanding. But all of these endeavours are being done at their costs and there is more support required from government of Nepal and Nepal Tourism Board. Packages with a family focus were viewed as a core market. On the one hand there was a call for a strong marketing strategy led by NTB with affordable buy-in opportunities – fewer advertisements in more effective brochures. Policies and Programs for Nepal Tourism Board to Attract Indian Tourists Perceptions and Stakeholder Viewpoints The purpose of this study was to gather information. they feel they should get regular supply of brochures and at the same time feel that too many brochures are out there and Nepal should come with a special brochure with key highlights on what the tourist should do. Communications strategies need to address widespread uncertainty about local situation and the availability of confirmed services with variety of accommodations and amenities. At the end of the day. 94 . Travel Agents talked about key target markets which remain Kathmandu and Pokhara.” was the way one travel agent characterised it. to ensure that Nepal is a safe 365 days destination. Discussions with stakeholders in India indicated major perception issues. as well as emerging and niche markets worth investigating and what needs to be done to these markets. For example. Nepal needs to be positioned from the Indian consumers’ point of view. Travel Agents also feel that Nepal has not defined itself as a destination. or who reflect a broader diversity of cultures and lifestyles or who are part of an aging demographic. This may mean appealing to visitors who do not think they are the outdoors type. and it is not optimising its potentialities. as well as expanding target markets. Approaches such as bundling products. high-yield markets. low-impact markets rather than on high-volume. Marketing tactics need to overcome the prevailing view that Nepal is an unsafe and unpredictable destination with little to do besides local site seeing and casino. however. Travel agents and customers talked about mixed messages leading to marketplace confusion and the need to be consistent. This should help to strengthen both the core and attract new markets. the need for an overriding call to action was stressed —”Nepal Travel Now”— to counter the lack of safety perception in Nepal.Chapter 8 Suggestions on Marketing Strategy.
Chapter 8 Indian visitors are looking for sustainable experiences. The lack of support for travel and tourism infrastructure such as trains and road transport was identified by travel agents as a major issue. The challenge is to position Nepal to appeal to these markets. As such. The need to review and refresh products was a consistent theme. it is suggested that promotional aspects of Nepal should focus on: • • • • Indian Middle Class Increase effectiveness of Promotion Campaigns Provide Indian industry with a communication tool Keep Indian Travel Agents informed with the latest status Streamline product offerings Target Markets No surprise the key activity drivers for Nepal have not changed. Travel Agents need to take a good look at the types of products and accommodations available in Nepal and match them to the needs and wants of various clienteles. adventure tourists and honeymooners need to be explored over the longer term. Kathmandu and Pokhara should remain central to but not the only focus of marketing efforts in order to broaden the visitor base. Single activities are not sufficient trip motivators as Indians want to do a lot in a short holiday. Air travel needs to become more commonplace and affordable. say the next five years the growing Indian Middle Class will remain the mainstay for Nepal Tourism. To summarise. local culture and history. efficient and friendly manner to 95 India Tourism Outbound • Nepal Perspective 2010 . Infrastructure will need to be developed that will appeal to emerging and niche markets. Further. Most stakeholders expressed the value in offering services to the Indian middle class who are looking for a nice and affordable holiday experience. Instead of just passing through an area they will spend two or three days and they want to leave with something to share the experience. shopping. Many consumers want to see a combination of outdoor adventure and medium to high-end accommodations and amenities. Inland transportation in interior Nepal is a challenge. visiting religious sites and Casino remain the most frequently mentioned activities for travellers who express interest in visiting Nepal. the India is getting wealthier and it is not practical to promote Nepal as an International destination to outbound travellers. dining and exploring cities. there is a need to focus on rest stops. Secondary and emerging-market opportunities to draw youth. Road infrastructure needs to be kept in a state of good repair for comfortable journey. For most travellers all inclusive or menu-type packages are attractive. directional and interpretive signage and customer service in general. Over the short-term. soft outdoor adventure activities. Travel Agents stressed the importance of taking advantage of demographic shifts. Getting to a destination needs to be safe and predictable. Nepal regularly needs to communicate with Indian visitors in an organized. A nice affordable family holiday with sightseeing. For example. Interest in a Nepal holiday is sustainable for Indian Middle Class as long as it is coupled with opportunities for shopping. Investigating emerging markets of theme oriented niche tourism and the MNC weekend market also may prove fruitful.
. rain.. flooding.. wildfires Internet Low cost airlines Digital information/mobile technology as a substitute for business travel/online shopping Natural environment/landscape POST-TRIP FACTORS • • Experience with safety and security Taxation on goods and services POLITICAL ECONOMIC • • • Competitive prices for good and services Impact of taxation Impact of inflation SOCIAL INFRASTRUCTURE/ ASSETS Source: Deloitte analysis. rain. fast-tracking • 96 . • • • • • • • • • • • Available choice of goods and services General experience on trip—e. quality Experience with weather/seasonality—e. There are certain pertaining questions: How the Nepal experience is uniquely different from other vacation experiences in India? Why would one choose this destination over others in India? Rich consumers want to be assured that their trips will create a memorable experience so that they can treasure it for a long time. there’s a lot of interesting destinations which are competing on the similar price range.Chapter 8 Suggestions on Marketing Strategy.g. beach Reputation for extreme weather—e. sanitation) Marketing of country Open Skies agreement Incomes Inflation Exchange rates Migration Taxation Socio-environmental awareness/ consciousness Tastes—e. FIGURE 10.g.g. flooding. Deloitte has made an analysis of factors influencing visitor behaviour. Political and economic factors have the highest rating on what particular destinations a tourist will select.. A consistent message delivered by all players is essential if potential visitors are to understand the quality and variety of things to see and do. water.g. After all. Policies and Programs for Nepal Tourism Board to Attract Indian Tourists try to overcome the limited knowledge and safety misconceptions of potential visitors to Nepal. wildfires Culture clash/agreement Ease of travel during trip Integrated systems—e. Other factors such as social and infrastructure/ assets have been highlighted as shown in the figure 10. Factors Influencing Visitor Behaviour FACTOR PRE-TRIP FACTORS • • • • • • • • • • • Perceptions about safety and security Globalization Capacity (airports. holiday type: historic vs..g.
pristine. For example “We are Nepal and our product is the experience of exotic. adventure. Start marketing a destination offering best value for the Indian Middle Class.” Make it clear that that Nepal is the destination which is assessable at low cost. etc. Market Nepal Differently – Beautiful place to visit…clean. Don’t market products to the wrong target market. Provide incentives to Indian Travel Agents to do a better job of marketing. but with all the options of experiencing everything in one country – natural beauty. one printed piece. Align efforts better.Chapter 8 Next Steps Nepal needs to build a foundation for the new marketing strategy and the key issues are: • • • Identifying opportunities for growth Identifying opportunities for aligning tourism stakeholders Working with the team that is developing the strategy to ensure that information is shared with the Indian Travel Agents and industry stakeholders There has never been a better time for Nepal to become more competitive as a tourist destination. Never has the tourism industry and its stakeholders been more of one mind about the need for a marketing change to drive the fortunes of the business in a more positive direction. Need to be truly Indian Middle Class consumer-focused. Organise regular FAM trips educating about different products that Nepal has to offer and to develop markets like adventure tourism. safe with different experiences. India Tourism Outbound • Nepal Perspective 2010 97 . peace. rejuvenation. Nepal needs to sell what you do best. solitude. interesting and memorable experiences. One brand. Need to keep it simple.
Chapter 8 Suggestions on Marketing Strategy. Stay Ahead of Competitors: NTB should leverage technology and effectively heed domestic competitors such as Mussoorie. Therefore 3N/4D holiday package can meet their requirements. Indian consumers are generally not the travellers to International high end destinations. This strategic approach should be measured at every stage of its implementation. Competitive Advantage: The lessons learned over the years should be applied and implemented and best practices from others should be taken into consideration to gain a competitive advantage. Time Deprivation: The trend is less time for leisure and more for shorter vacations. Listen to Perceptions and Act: NTB’s platform should link all levels of marketing initiatives and be distinctive. Policies and Programs for Nepal Tourism Board to Attract Indian Tourists Let’s Get Started Nepal – Now! The goal of the new strategy is to maximize the limited marketing resources available to NTB through the alignment of industry and NTB marketing ventures. Align and Coordinate: There is a need to re-align source markets and marketing tactics to leverage tripplanning behaviour. Support and guidance for the industry in the form of tools that everyone can use to help align their efforts under the overarching strategy. It should not replace the marketing efforts currently underway focusing on the avid and touring markets rather it should guide these and present a road map for quick successes for new business. A new way of working together that aligns the efforts of all the players as opposed to duplicating them. 98 . so that it can be adjusted during the implementation period. These consumers. if it meets their holiday budget and desire expectations. The strategy that follows suggests that all levels of the industry and government should initiate to take risks to get ahead of the competition. targeting the right people. are prime targets for Nepal. they should focus on following three areas: • • A competitive offer for Nepal. Positioning: There is a need to create a distinct underlying image of Nepal and use it to link efforts. It is very important to add and promote bundles for variety and new markets in addition to leveraging market ready Kathmandu and Pokhara Products. and their pent-up demand. in the right places with the right message. They normally choose Indian domestic destinations and will chose Nepal. Product: The main focus should be on the Family Holiday with emphasis on sightseeing and shopping. The proposed strategy should be based on “best numbers” outlook. To do this. Agra and Jaipur. This could be done with consistent communication strategies. Take Advantage of Trends: There is an increasing disposable and discretionary income in the Indian Middle Class. • Recommendations Markets: The main focus should be on “best numbers” markets – the growing Indian Middle Class – Nepal’s strategy should be consumer-focused and keep on top of emerging lifestyle trends.
media consumption and lifestyle drivers. travel habits. Change Marketing Delivery to Meet Consumer Needs Marketing Communications Strategies The strategic direction that follows prioritizes how marketing communications tools can be leveraged against the “best numbers” targets and markets described. Public Relations The use of public relations as a marketing tool is growing by leaps and bounds. Factors affecting choice of media include: • • • • • Existing Clutter level of specific medium within the market Reach of medium across the target group Consumer preference for a specific medium Suitability of the medium given the objective of the advertising /marketing exercise Prior experience of the marketer with the success of the medium in a specific market All media spend should focus on the Indian Middle Class Target group in both West and North India and match Nepal’s interests to their demographic characteristics. per target group habits. Make it Easy to Buy and Use: Trips planning tools to capture consumer leads online and offer all inclusive packages. The public relations strategy for the marketing of Nepal should support the positioning and experiences that best exemplify the distinctive nature of the “Best Numbers” offer. while ensuring its core business is protected.Chapter 8 The current low awareness with the focused audience gives us the liberty to create a “new” Nepal. Trends should be carefully monitored to ensure that the appropriate blend of traditional and new media are used as. as consumers disassociate themselves from the fragmented and ever increasing number of advertising messages they are receiving on a daily basis. India Tourism Outbound • Nepal Perspective 2010 99 . Media Consumption Shifts There is a monumental change taking place in the way consumers are accessing and using media across India and there should be a judicial mix of spending patterns in all media vehicles including: • • • • • • TV Newspaper Magazines FM Radio Billboard Internet A review of target markets show how Nepal need to allocate efforts discreetly to build opportunistic business.
Seeking new investment from the public and private sector should be a priority for all parties to increase the marketing spend to reach the “best numbers” markets and drive consumers to take a holiday decision that should eventually link to the suppliers who can fulfill the promise. on the decline in terms of both frequency and attendance. Consumers want information specific to the experience that facilitates their purchase decision. as a marketing communications medium. with less emphasis on directories and more on trip planning tools. Travel operators. consumer and tradeshow participation has been a primary consumer touch point utilized by NTB. Publications should be used as fulfillment pieces for pre-qualified leads. The recommended strategy is to limit show participation to those that are: • • • located in geographic target markets attended by “best numbers target group members permit floor activation techniques. Maintaining Competitive Advantage For this strategy to be successful there needs to be an ongoing commitment to continuously undertake research to ensure Nepal maintains a competitive advantage.Chapter 8 Suggestions on Marketing Strategy. such as field marketing and onsite promotions Familiarization Trips Criteria for media and trade familiarization trip funding should be based on the ability of the visiting media to showcase Nepal to the target audience. Currently. Furthermore their purchase decision depends on appropriate design of collateral that should be readily available from tourism shows. To effectively implement the new strategy and achieve the implementation of the cascading approach and the alignment of efforts. The environment that the Nepal tourism industry operates is a dynamic one that regularly shifts and changes as new opportunities and challenges emerge out. and other stakeholder groups. 100 . despite the fact that they have a high cost per visitor acquisition and are. Publications and Collateral Try and reach potential visitors by paying attention heavily on the communications channels preferred by people planning to travel to Nepal. sites. the current funds spent on marketing initiatives and human resource efforts should need to shift over the course of the strategy. Policies and Programs for Nepal Tourism Board to Attract Indian Tourists Consumer Touch Points Traditionally. NTB participates in trade shows. tourism offices and kiosks.
3. 20. 30. 10. 4. 9.00.00. The new marketing investment strategy should support conventional as well as Internet marketing strategies. 10.000.Chapter 8 Budget Allocation and Strategy The following budget allocation strategy should assist stakeholders in understanding the shift in effort required to address the changing marketing landscape.000. public relations. Reduce spending money on High End Consumer focussed channels.00 Rs.000.00. Long term scroller contracts rather than advertisement to have sustained visibility.00 Rs.00 Rs.00. 7. 2. the following suggestion should be taken into consideration: 1. 10.00. 5.00. 40.000. 40. Budget Activities Budget Activity 1. 5.000.00 Rs. 2.000.00. 8.00 NTB costs NTB costs Television As the focus is on increasing volumes. and should result in lead generation and targeted industry co-operative marketing programs.00 Rs.00 Rs. 4.00 Rs.000. 15. Should spend money on news scrollers with package rate options and with a toll free number to provide instant information access. TABLE 25. Television Newspapers Magazines FM Radio Internet Public Relations Consumer Promotion India Travel Trade Road shows Media Fame trips Travel Agent Fam trips Suggested Spend for 12 months (IRs) Rs.000. Need to focus on Vernacular channels and with a special focus on News channels in particular. 3.00. 6. 20. Suggested Mediums Hindi • Aajtak • Zee News • IBN 7 • Sahara Samay • India TV • NDTV India • STAR News Marathi • Star Majha • IBN Lokmat • Zee 24 Taas Gujarati • ETV Gujarati • TV9 Gujarat India Tourism Outbound • Nepal Perspective 2010 101 . Special promotions on religious channels such as Aastha and Sanskar for Kailash Mansarovar and Pashupatinath darshans.
intensive use of FM Radio as a medium to attract interested holiday makers is a great option. This shall result in greater exposure amongst target audience at a much lower cost. it is recommended to choose appropriate Vernacular language publication. it can be used to interact with a new audience. While this medium has not been used in the past. At least 6 promotions in one year are suggested and the target cities should be: • • • 102 Delhi Mumbai Chandigarh • • • Jaipur Ludhiana Ahmedabad • Lucknow . Policies and Programs for Nepal Tourism Board to Attract Indian Tourists Due to extreme clutter and expensive rates for English Medium newspapers.Chapter 8 Newspapers Suggestions on Marketing Strategy. Indian Radio Advertising Industry recorded a growth of 24% and is now becoming a preferred medium for targeting the local audience of the region. tactical advertising should be done during the beginning of holiday decision making period along with travel agent contact details for ensuring faster conversions. To ensure prompt conversions. Hence. Suggested Mediums Hindi Hindustan Navbharat Times Punjab Kesari Amar Ujala Dainik Jagaran Dainik Bhaskar Rajasthan Patrika Marathi Maharahtra Times Gujarati Gujarat Samachar Divya Bhaskar English Delhi Times HT City Indian Express Magazines Following the same approach. Chitralekha in Marathi and Gujarati. A sponsorship contest along with an advertorial with travel agent participation would create the maximum impact. Consumer Promotions Following the overwhelming success of shopping mall promotions in Delhi in June 2009. (PricewaterhouseCoopers. it is suggested to follow a focussed approach on the target audience using Vernacular newspapers. FM Radio In 2007. msn and facebook can create lasting impressions on the user. Suggested publications are Griha Shobha and Meri Saheli in Hindi. 2008) Internet Tactical use of popular websites such as google. it is strongly recommended organising similar promotions in the target markets for getting stronger conversions.
At least 10 travel trade and media FAM trips should be organised for ensuring better results. Visitors could be selected from: North India Delhi Ambala Chandigarh Amritsar Ludhiana Jallandhar Gwalior Indore Bhopal Patna Kanpur Lucknow Varanasi Dehradoon Shimla Jammu West India Mumbai Pune Surat Ahmedabad Rajkot Jaipur Nashik Nagpur India Tourism Outbound • Nepal Perspective 2010 103 . Greater number of Road Shows are required for greater penetration in the Indian markets.Chapter 8 Travel trade needs to be an important component for this exercise as most consumers need an instant solution for prompt decision making. Suggested cities for next 12 months are: North & Central India Delhi Jaipur Ambala Chandigarh Amritsar Ludhiana Jallandhar Gwalior Varanasi Dehradoon Shimla Jammu Kanpur Lucknow Bhopal Indore West India Mumbai Pune Surat Ahmedabad Rajkot Nashik Nagpur Travel Trade and Media FAM Trips These activities are necessary to sustain the Indian market. India Travel Trade Road Shows Road shows result in networking of local travel agents with Nepalese travel agents and this gives an opportunity to discuss the business requirements in details.
clarity of roles and functions. the following measures need to be considered and implemented: • Listen to the consumer – Be consumer-focused rather than industry-focused.Leverage the potential of Nepal itself as an easy to reach and a near by domestic holiday destination. and ensure that the potential of Nepal as a market is well-tapped. Leverage the demographic and economic realities. and leverage trends and behaviours strategically. but not limit to them. Focus on “best numbers” markets and targets.It’s crucial to the success of this strategy that a track of success of the investment and ROI is kept to on focus the target.Chapter 8 Suggestions on Marketing Strategy. In order to ensure that this strategy is sustainable. Increased investment to support new and innovative tactics and marketing reach. and to meet objectives and stay ahead of competitive destinations of Nepal. strategically directed implementation are strongly suggested. Policies and Programs for Nepal Tourism Board to Attract Indian Tourists The Next Step A concerted effort on the part of the NTB. Allocate the scarce marketing efforts to focus on the places and people with the most potential. and Travel agents to commit to a new partnership is the starting point to make this work. • • • • 104 . Measure and report . Airlines. Start with North India and do it well . Stay ahead of competitors – Nepal should leverage technology and effectively bring out the story and experiences of visitors via the Internet.
Recommendations and Guidelines for Nepal Tourism Annual Promotion Plan 2010/11 TABLE 26. Suggested Activities
Jan Feb March
Enabling online sales Travel Trade Education Travel Trade Education Travel Trade Education Destination Awareness Consumer Awareness Consumer Awareness Consumer Awareness Consumer Promotion Consumer Awareness Consumer Awareness Consumer Awareness Consumer Awareness Travel Trade Education Travel Trade Education Travel Trade Education Consumer Awareness Consumer Awareness Consumer Awareness Consumer Promotion Consumer Awareness Travel Trade Education Consumer Awareness Consumer Awareness Consumer Promotion Consumer Awareness Consumer Awareness Travel Trade Education Destination Awareness
RFP for website design Travel Agent FAM trips India Travel Trade Road show Pune –Mumbai-Nashik India Travel Trade Road show Lucknow-Varanasi-Patna Media FAM trip Television Advertising FM Radio Delhi- Mumbai Internet banner campaign Direct Interaction –Shopping mall Promotion Mumbai & Pune FM Radio Delhi- Mumbai Internet banner campaign FM Radio Delhi- Mumbai Internet banner campaign India Travel Trade Road show Chandigarh-Shimla-Ambala India Travel Trade Road show Ahmedabad-Bhopal-Indore Travel Agent FAM trip Television Advertising Newspaper Advertising Magazines Advertising Direct Interaction –Shopping mall Promotion – Noida & Gurgaon FM Radio Delhi- Mumbai India Travel Trade Road shows Amritsar-Ludhiana-Jallandhar Newspaper Advertising FM Radio Delhi- Mumbai Direct Interaction –Shopping mall Promotion – Amritsar & Chandigarh Magazines Advertising FM Radio Delhi- Mumbai India Travel Trade Road show Delhi-Jaipur Gwalior Media FAM trip
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India Tourism Outbound • Nepal Perspective 2010
The Trends in Information, Communication and Technology in Tourism Development
Tourism is a leisure activity but can be associated with a definite purpose like pilgrimage or health. With the development of Information and Communication Technology (ICT), tourism has achieved a new momentum. The website of Lonely Planet attracts more than five million people every month, most of who log on repeatedly. As per the forecast by PhoCus Wright, a travel and technology research company, it is estimated that about 35% of leisure travel have been booked online by 2008.
Industry & IT
Tourism and Travel Industry - a heterogeneous industry made of complex and consists of many components parts. Intangible, perishable and international service industry is getting right business curve backed by information technology now days. The best example of information technology application in Travel and Tourism is automated reservation system for Railways & Airlines. There are IT solutions for hotels, motels, hospitality, travel intermediaries, entertainment and tourism at par to streamline business processes, improve customer relationships and more efficient operations. Trends in Industry (Applicable to Most of Countries) 1. 2. 3. 4. 5. A competitive industry with new entrance of global players coming from abroad Continuous change in customer demands Expectations of a tourist are increased and look for more convenience and value for money Tourists are more informed There is a need of automated technologies
Who needs information? Before starting use of information technology, it is important to know the ground needs of information sharing and accessibility. Travel and Tourism Industry is consisted of tourist, travel agents, service providers, government and private tourism offices or consultants. Tourist – a key consumer needs details on destinations, facilities, availabilities, prices, and geography & climate information. If it is out of country then details about border controls & relations. Travel agents look for detail information about tourist (consumer) trends in the market, service providers, destinations, facilities, availabilities, prices, tour packages and direct contact with other branches. Service providers need to know details of consumer, travel agents, competitors and agencies. Tourism offices search for trends in industry, size and nature of tourism flows, policies and plans for development. IT enabled tourism is coined as ‘e – tourism’. Online tourism is at a platform that enables direct booking, easy payment for end-user, business-to-business trading for product providers, travel agents and resellers.
E–Commerce—all the web sites and portals launched by government as well as private organizations offer a wide range of tourism products and services like airlines, hotels, restaurants, camp-sites, tours, activity centers, concerts, festivities, shopping and many more with choices of assortments of services. Plan their tour online through agents’ web sites. Reservation or shopping of facilities for train, airlines, cruise, hotels, resorts, motels, rental cars and adventures can be done on line. Still leaving a part of simple web based portal, which just provides static information and beautiful pictures with less updated knowledge and data transfer, tourism industry is expecting more practical and satisfied chain solutions from Information Technology. Advance technologies in Tourism Industry rather than dot com and e-commerce, travel and tourism industry is looking for solution like E-Business or U-Business (Universal Business) solutions. Customer relationship management – CRM, based system enables service provider to provide knowledge, value and efficient service to its clients. CRM enables service provider to build up a life time relationship by providing on time solutions. Especially tourism industry needs excellent CRM solutions to assist visitors or clients before flying on tour, during tour and after tour services. CRM solutions can be provided to a visitor through web, email, call center, kiosks and traveling information offices. Value chain integration – Tourism industry is a chain of many service providers. In long term solutions, cost cutting & effectiveness in data & information transfer, speed in transactions and looking towards heavy multimedia based services – back end systems need excellent value chain integration through solutions like ERP and CRM. However till today applications of CRM and ERP are not up to the industrial remarks as tourism industry is kind of service industry. Knowledge Management Systems and business intelligence systems have wide scope of implementation in tourism industry. Comparing history timelines and providing instant knowledge about place on the spot makes eager to know more about place to a tourist. Even information enables analyst to find tourist’s behavior and trends with data and information. To find out customer’s demand is no more difficult task. Use of advance technologies Interactive Digital Television (IDTV), Mobile technologies and Internet are carving new faces in customer services for tourism industry. That’s great for adventure tourist. Through a mobile, tourist can be guided through cultural heritage through multi – language voice, text or images. Even it is possible for a tourist to find details on fees, opening days and timings for nearby places, find bookshop, cafe, restaurant or ATM from where ever s/he is present. In advanced countries, e – tourism concept was applied and put in practice in last decade. However e – tourism is still in growing phase with advance technology’s application. But for developing countries and underdeveloped countries it is under capitalised. With application of e-tourism, the travelers would be able to make online reservation, bookings and receive immediate confirmation, this would remove a lot of obstacles that are faced by a tourist. Europe is ahead of other continents in development of travel industry with nearly 49% market share. America is second with 26 % and Asia with 17 % at third position.
India Tourism Outbound • Nepal Perspective 2010
food and beverage services. The existing FCIs. etc. a Bachelor Degree in Tourism (a three-year course) and a Masters Degree in Business Administration (a two-year course) with specialization in tourism. and 11 Food Craft Institutes (FCIs). directly in contact with the country’s tourists. Taxi walas. the Institute has started construction of its Campus at Bhubaneswar for its Eastern Regional Centre on the land provided by the State Government free of cost. Diploma Course. During the 10th Plan. IHMs and the institutes in the private sector cater to mainly the organized sector. The IHMs conduct diploma courses. Indian MoT encouraged the Institutes of hotel management to explore appropriate means to generate their additional resources during the 10th Plan. craft and certificate courses. unemployed youth. and to standardize the courses. Guide training courses are organized by the MoT and also by the State Governments. As it is not possible and viable to set up FCIs in every district. The unorganized sector consisting of small hotels. training and research in travel and tourism.G. The FCIs conduct diploma courses in cookery. The Institute also conducted a number of Guide Training Programmes during the plan period to upgrade the skills of existing guides as also to recruit new guides. the Institute has become almost self sufficient to meet its regular revenue expenditure. Indian Institute of Tourism and Travel Management (IITTM). These courses include programmes for fresh tourist guides and refresher courses for those already active in guide services. etc. skills required by personnel engaged in this sector are different from those required by personnel engaged in other sectors. restaurants and other joints spread all over the country hardly get an opportunity of training from skilled and professional trainers in the hospitality sector. In order to harness the resources and provide a central thrust. Courses were also organized for Government officials who have an interface with the tourists. dhabas. Communication and Technology in Tourism Development Human Resource & Tourism Development Tourism being an employment oriented sector. At present there are 24 Institutes of Hotel Management (IHMs). it is estimated that the hotel and the catering sector provide more than 10% of the total employment generated by the tourism industry. The NCHM&CT. which was just running a single P. The building is almost ready and it is expected that it will meet the requirements of Council. post graduate diploma courses. the MoT has also established the National Council for Hotel Management and Catering Technology (NCHM&CT). was assisted for construction of its new building at Noida. During the year. Being a labour oriented industry. housekeeping.. has started two new courses during the 10th Plan i.Annexure I The Trends in Information. Dhaba and Hotel Staff.e. The Institute also conducted a number of capacity building programmes for the workers in the unorganized sector like Railway Coolies. so that these institutions gradually become self supporting at least on revenue accounts. The main objectives of the Council are to advise the Government on coordinated development of Hotel Management and Catering Education to prescribe educational and other qualifications for staff in the institutions to give certification and accreditation. 108 . established in 1983 as a registered society under the MoT primarily for developing and promoting education. which has emerged as an apex body in the country for hospitality management education. Assistance was given to them to enhance their infrastructural facilities. a number of Capacity Building Programmes for the workers of unorganized sector were organized by FCIs and IHMs during the 10th Plan through outreach training programmes. The contents of these courses were restructured during the 10th Plan.
The tourism ministry is banking heavily on the scheme to bail it out of the severe shortage of rooms. Haridwar. the government is already under duress as the planned hotel rooms to make up for the shortage are running behind schedule. Some additional initiatives taken by the Government-the Delhi government’s Bed and Breakfast scheme has attracted 1. Punjab etc are likely to attract large number of foreign tourists in the year 2010. a pollution free environment. Kerala Backwaters.000 rooms when its hosts the Commonwealth Games in 2010. Tourists have been making online reservation in advance for the upcoming Common Wealth Games. All the athletes would be offered free accommodation. The Indiawide scheme has particular importance in Delhi. Tour agents in India are opened with the new hot travel deals for 2010 Commonwealth Games for the foreign tourists. Uttar Pradesh. Chini Ka Rauza. which is expected to be short of about 18. adventurous tourists sites in the northern states of India bordering Delhi including Punjab. security. Staying with an Indian family and sharing the food on the breakfast table will certainly help them to know country better and create a bond . Most of the foreigners are unaware about Indian traditions and culture. Rajasthan Forts and Palaces. Andaman and Nicobar Islands. With world class interiors. Fatehpur Sikri. Ram Bagh. Uttarakhand. many homes in the posh southern and central parts of the city are getting ready to welcome the one lakh extra tourists who are expected to descend on the Capital for Commonwealth Games 2010. A parliamentary panel had predicted a shortage of 14. Haryana and Rajasthan. Apart from that other major tourists spots in India including the Shimla. Ranikhet. Dehradun. The event will witness a lot of foreign tourists coming to India. They have come up with the exclusive packages at the most attractive prices that are truly rewarding from the economic point of view.000 Delhites have registered to be part of government’s Bed and Breakfast scheme for Commonwealth games visitors. However. Sikandra Itmad-ul-Daulah’s Tomb. only 1. top-of-the-line facilities. Further the new project have come up to discover new heritage religious.Annexure II The Commonwealth Games 2010 Since the Commonwealth Games are scheduled to be held in the India’s capital city – Delhi. The Government of India has Launched a Bed and Breakfast Scheme Over 1. Goa beaches.The scheme was launched to provide a clean and affordable place for foreigners and domestic tourists.000 rooms under the Bed and Breakfast scheme launched two-and-a-half years ago but so far.000 rooms in the city. free transportation and entertainment options for the non competition times. Soami Bagh. They will be offered a free trip to the famed Taj Mahal – the ‘Seventh Wonder of the World’ clubbed with the other heritage sites such as the Red Fort. The government had planned to register 3. the government has come up the new development plans to change the look and feel of the city. Medical and ayurvedic sectors will also be equally beneficiary during the commonwealth games in view of India’s popularity in ancient tradition of yoga and ayurveda and the availability of low cost medical treatments in India. This will also add to the income of these home owners without adding much to their expenses. Jhansi. Dayal Bagh and many more. well-maintained bathrooms and smoke detectors. including an opportunity for foreign tourists to stay with an Indian family and to experience Indian customs and traditions and relish authentic Indian cuisine.000 Delhites who have a room to spare. “The ministry is expecting around a lakh international tourists to the country during the Games and it is a golden opportunity India Tourism Outbound • Nepal Perspective 2010 109 .000 rooms have been registered.
Creating weekend gateways packages and advertising at the right time with easy booking process might be able to lure the visitors traffic towards Nepal as thousands of international tourists are expected to arrive for Commonwealth game and a three day getaway is something that can be aimed for. 110 .Annexure II The Commonwealth Games 2010 How Nepal Can Benefit Advertising during this time will rope in Indian as well as international visibility and attention and the cost for advertising in metros and popular tourist destination will bring in priceless benefits. metros are some of the options which can have major impact on the onlookers looking for a weekend getaway. bus stand shelters. Hoardings.
(Department of Industrial Policy & Promotion. 2003) Need for FDI in Tourism Foreign tourist arrivals are expected to grow to 10 million by 2010-12 and the domestic tourism is expected to increase by 15% to 20% over the next five years as per the MoT expectations based on the growth in the last one decade. FDI has the potential to generate employment. adventure and wild life experience to tourists. out of which 194 have done to attract higher FDI. the advent of corporate incentive travel and the multinational companies into India has boosted prospects for tourism. Based on the benefits associated with FDI several developing. entertainment. air and water transport facilities to tourists. tour operating agencies and tourist transport operating agencies. undertaking corporate restructuring and economic reforms and inviting foreign investors in the privatization of state-run units. For Foreign Technology Agreements. Up to 3% of the capital cost of the project is proposed to be paid for technical and consultancy services including fees for architects. surface. They try to attract foreign investors by providing financial and fiscal incentives. It is. important to weigh the costs and the benefits of FDI to gauge whether FDI has positive impact on economic development. raise productivity. through the automatic route and has also identified the investment opportunity of about $8-10 billion in the next 5 years in tourism sector. There is a rapid growth in average room rates and is expected to continue until sufficient new supply come on stream (average increase is 21% since 2004-06 in 4 & 5 star segment). and other tourist complexes providing accommodation and/or catering and food facilities to tourists. and health units for tourists and Convention/Seminar units and organizations. The term hotels include restaurants.Annexure III Foreign Direct Investment (FDI) in Indian Tourism One of the most notable features of economic globalization has been the increased importance of foreign direct investment around the World. design. Automatic Approval is Granted if 1. Tourism related industry include travel agencies. including incentive fee. for example 71 countries made 208 changes in their FDI regulatory policies. In 2001. as well developed countries compete fiercely for FDI. strengthening infrastructure. Up to 3% of net turnover is payable for franchising and marketing/publicity support fee. public freedoms and its many attractions as an ancient civilization makes tourism development easier than in many other countries. leisure. beach resorts. It is estimated there is a need of around 10 billion US $ required for development of tourism as per the different state tourism estimates for the next five years. Government of India is allowing 100% FDI in Hotels and Tourism. FDI as a developmental tool in all sectors and tourism is considered no exceptions. enhance exports and contribute to the longterm economic development of the world’s developing countries. supervision etc. however. countries at all levels of development seek to leverage FDI for development. sports. India’s easy visa rules. More than ever. enhancing competitiveness of the domestic economy through transfer skills and technology. India has significant potential for becoming a major global tourist destination. A rapidly growing middle class. units providing facilities for cultural. 2. and up to 10% of gross operating profit is payable for management fee. 100% FDI is Permissible in the Sector on the Automatic Route. The long term capital requirement of all states is estimated around 56 billion US $ for the next 20 years. Some view it as an engine of economic growth and development while others look upon it as a panacea for all ills. Liberalization policies have led to rapid growth in FDI flows in recent years. amusement. In order to attract 111 India Tourism Outbound • Nepal Perspective 2010 .
The entry of McDonald’s. public freedoms and its many attractions as an ancient civilization makes tourism development easier than in many other countries. The five star hotel segments have grown the fastest during the last five years at a CAGR of 12%. It costs an average of US$50-80 million to set up five-star hotels with 300 rentable rooms in India. this segment can be divided into 3 sub-segments Luxury.2%.1% per annum. Over the last few years the country has witnessed a large influx of business travelers in the country owing to relaxation of the government’s stand on FDI for most of the sectors in the country. A rapidly growing middle class.9 million tourist arrivals in FY06 (15%growth) over the previous period.87 million US $ which is 1. The growth in this segment indicates the genre of travelers coming into the country. Though the Government of India is allowing 100% FDI in automatic route to India in tourism sector and there is a wide gap between the demand and supply of hotel rooms and other tourism infrastructure projects. The Indian hospitality industry is growing at a rate of 15 percent annually. The sector continues to face certain problems. The compounded growth in tourist inflow over the last ten years (FY96-FY05) has been 8. Tourism has attracted the FDI 660. Further. The gestation period is usually between three and four years. Kentucky Fried Chicken. P. Many foreign companies have already tied up with prominent Indian companies for setting up new hotels. which has largely profited from the fast growing economy of India. and upgrade its airports. India needs to increase room supply. This increase in the number of tourist arrivals in the country lifted the country’s standing in the world of tourist destinations. The current gap between supply and demand expected to widen further as the economy opens and grows. while in the last five years. S. (Subbaro.Annexure III Foreign Direct Investment (FDI) in Indian Tourism more visitors. 2008) • • • • • 112 . This has largely been due to the 3. Also tourism development needs to be pursued with a focus on sustainability.46 percent of the total FDI inflow into India from April 2000 to December 2007. Domino’s and Pizza Hut has given an international glitz to the hospitality sector. Reasons to Invest in this Sector • • • Economic liberalization has given a new impetus to the hospitality industry. The country is ranked fourth among the world’s must see countries. The travel and hospitality industry continues to be the sector. motels and holiday resorts. PepsiCo’s. Business and Leisure. growth stands at 9. India’s easy visa rules. the advent of corporate incentive travel and the multinational companies into India has boosted prospects for tourism. open further its skies to increase air capacity. roads and other infrastructure to global standards.
Langkawi and Penang. The Malaysian Government had set aside about $US 2. Scotland and Yorkshire and relive their favorite Bollywood’s filmy moments. the prospects look very promising . The Indian Tourism Ministry and the Maharashtra government too are gearing up looking forward to create private or public partnerships to promote Bollywood Tourism. With a direct flight to Helsinki from India. showcasing themes from all over the world. Tourism Boards the world over along with Mumbai and India are clamoring for a slice of the Indian film industry which is expected to cross a turnover of Rs. 36 China Town) and Malaysia (Don II). The Singapore Tourism Board in 2006 launched a “Krrish” tour package. The FTB proposes to give location subsidies. Kashmir and Kerala have given way to world destinations sites as more producers go westwards to film their movie musicals. also setting aside budgets for awards and glitterati shows.locations such as the Blenheim Palace. already made famous in a host of Hindi films . Hong Kong and Singapore have been added as new destinations to the Mumbai film repertoire. especially in the United Kingdom which has already worked out a counter tourism strategy to lure Hindi film fans.Annexure IV Role of Bollywood and International Tourism Boards Bollywood or the Hindi Indian film industry as is popularly known has unmistakably led fans of this popular cine culture to experience fresher climes in the Finnish Lapland of Rovaniemi and Poland (Fanaa). Brazil (Dhoom II). With the Hindi movie sector in India selling a billion more tickets annually than perhaps Hollywood. the entire fan following in Bollywood has definitely redefined the tourism sectors globally. The trend which began perhaps with “Dilwale Dulhaniya Le Jayenge in the 90’s lapping up the UK and Swiss borders has now transcended its’ boundaries across the Atlantic to New York with Kabhie Alvida Na Kehna and Kal Ho Na Ho. The British move is to allow Hindi film buffs to walk the paths of the now famous British locales of London. The Swiss success of Bollywood has now trickled onto Finland and the Finnish Tourism Board (FTB) in the recent past has organized programs for Bollywood’s dream merchants to familiarize themselves with Finland. Waddesden Manor. Hong Kong recorded a 24.Most popular being the Petronas twin towers. As Dubai along with Ras Al Khaimah in the UAE.140 billion. In the recent past. The Hong Kong Tourism Board has recently accepted Bollywood’s populism and has stepped up its might to attract and promote Hong Kong as a destination for filming Bollywood films. as per a KPMG consultancy report. Kandahar and Kabul (Kabul Express).used extensively for the shots of Kabhie Khushie Kabhie Gham (K3G) and many more such spots made famous in Bollywood movies. with dozens of dots that identify now-seen scenes from Hindi blockbusters.7 million to host the 2006 Global Indian Film Awards (GIFA) thus pushing up sales for Malaysia as a prime Bollywood destination. The idea of the FTB is to sell the midnight sun and Northern Lights of the archipelago and bring it under Bollywood’s arch lights.With over 900 films being produced in India each year. more and more countries are offering their destination points to set shop for Bollywood’s pre and post productions. Britain’s Tourism department is already pitching high on Bollywood through the sale and distribution of an innovative “Bollywood Map of Britain”. With India’s official carrier proposing to add new flights to London and European sectors to rope in the large Indian expatriate community. With film festivals and awards shows the rage of the times. India Tourism Outbound • Nepal Perspective 2010 113 . Victoria in Australia (Salaam Namaste). Ras Al Khaimah (Deewane Hue Pagal.7 per cent growth in visitors from India and this has led the tourism board to learn certain movie making linkages between Mumbai and Hong Kong which has plans to develop destination and tour packages revolving around Bollywood and also market the extensive production centers in Hong Kong to Indian movie makers. Korea (Gangster).
Zakopane in Poland and New Zealand had a new lease from Indian tour operators following the success of films such as Hum Tum. NTB is suggested to develop: • • • • • Strategic Planning Schemes Great Incentives High End FAM trips Presentations followed by Gala Nights These are just few examples of practices followed by various tourism Boards to entice the film Industry to take notice. Nepal’s Hospitality & Tourism industry and the Indian film industry can both benefit mutually as the cost involved for the industry would dramatically be lower as compared to any other international destination without compromising on the scenic beauty and Nepal would get priceless recognition.Annexure IV Role of Bollywood and International Tourism Boards Tourist’s destinations in Amsterdam. however it would take a lot of effort to lure this clientele. visibility needless to say much better than what a 30 sec commercial can establish on prime time. 114 . However some interesting schemes need to be launched keeping in mind the requirements of the Indian film industry and it should be brought to notice of Indian Film makers. the Indian Bollywood Industry is toning up to the global travel and hospitality industry. Nepal is yet to tap in the mainstream Bollywood Industry and with such close proximity to India and with a variety of destinations to offer to the Indian movie industry. Fanaa and Kaho Na Pyar Hein respectively. What “Lord of the Rings” did to New Zealand with the surge in its “Frodo economy”.
2008. 2007. ‘Bird of Gold’: The Rise of India’s Consumer Market. New Delhi: Ministry of Tourism. 2007. New Delhi: Indian Council for Research on International Economic Relations. P. Deloitte. Globalisation Growth and People. P. ICRIER. New Delhi: Ministry of External Affairs. American Express study: Inside the Affluent Space in India. New Delhi: Press Information Bureau. Report on Indian Entertainment and Media Industry. New Delhi: Ministry of Commerce and Industry. New York: McKinsey & Company. by the year 2025. New Delhi: Government of India. Madrid: World Tourism Organisation. London: London School of Economics. PricewaterhouseCoopers. Sharma. The Associated Chambers of Commerce and Industry of India (ASSOCHAM). Monthly Economic Analysis: Fortune 2009. New Delhi: The Associated Chambers of Commerce and Industry of India (ASSOCHAM). 2008. UNWTO. Conference on Tourism in India – Challenges Ahead. Govt. Tourism Development in India. Kapoor. The Indian Outbound Travel Market. American Express. G. 2003. Government of India. 2000. Manual on Foreign Direct Investment in India: Policy and Procedures. Kozhikode: Indian Institute of Management Kozhikode. Integrated City Making Report. Investment & Technology Promotion Division. 2006. 2009. Keong. Opportunities Today: Tourism & Economic Benefits. The McKinsey Global Institute. of India. Government of India. W. Planning Commission of India. Director General Tourism. 2008. India Tourism Outbound • Nepal Perspective 2010 115 . S. The Economic Case for the Visitor Economy: Final Report. Domestic Tourism Study. G. 15-17 May 2008: A Study on Foreign Direct Investment (FDI) in Indian Tourism. 2009. 2006. 2008. of India. Kanjilal. Working Paper No. National Council for Applied Economic Research (NCAER). India’s Consumption Story Stays Strong Despite Global Crisis: India Retail Forum 2008. Subbaro. R. 2008. 234: Indian Economic Outlook 2008-09 and 2009-10. L. Govt. 2009. Germany: India Retail Forum. Department of Industrial Policy & Promotion. 2009. Government of India. 2003.Annexure V References Assocham Research Bureau. Steering Committee on Tourism for the Formulation of the Eleventh Plan (2007-2012). Job Opportunities in the National Capital: A Comparative Analysis of Delhi region & NCR cities. Gurgaon: PricewaterhouseCoopers. London: Deloitte. New Delhi: Ministry of Tourism & Culture. New Delhi: Research Bureau. Urban Age.
iamai. Mumbai: Credit Suisse. 22nd May 2009. World Travel & Tourism Council. Available from: www. development incomplete with 62 percent living in slums. Key Facts at a Glance: Tourism Economic Research Country Reports. (Accessed on 01 June 2009). Credit Suisse.org Nielsen India Outbound Travel Monitor. Economic Times.Annexure V References World Economic Forum. Available from: http://www.in/ 116 . Electronic Article Airline Network News & Analysis. (Accessed on 08 May 2009). Available from: http:// www. Tue. 2009. Available from: http://www. Indian Tourism to generate $100 bn in ’08. (Accessed on 01 June 2009).com/news08/ 189-IndiaTourism. Surrey: Airline Network News & Analysis.credit-suisse. 25th Dec 2004.planningcommission. Travel & Tourism Economic Impact.(Accessed on 24 March 2009).nic.asiatraveltips.com/news/indian-tourism-to-generate-100-bn-in-08/283514/.jsp?ns=40793. September 2008.aspx?nid=1801&NMonth=1&NYear=2009.pdf Incredible India. 45 Million Internet Users in India. Government of India: Five Year Plans. World Travel & Tourism Council. London: World Travel & Tourism Council. New Delhi: The Financial Express. Indian domestic traffic down 13% in 2009 Q1.financialexpress. Credit Suisse Opens Wealth Management Business in Mumbai. 2009. 2008. Mumbai: Economic Times. 12th March 2008. Available from: http://www. Travel & Tourism Competitiveness Report.shtml Planning Commission. 2009. 27th Jan 2009. international demand also down. IAMAI. London: World Travel & Tourism Council. Websites Government of India budgets.aero/2009/05/22/indian-domestic-traffic-down-13-in-2009-q1-international-demand-alsodown/. New Delhi: The Internet & Mobile Association of India.in/PRelease_Detail. Available from: http://indiabudget.in/ub2009-10(I)/eb/sbe93. India.com/p/articles/mi_hb5936/is_200412/ai_n23939402/. Available from: http://findarticles. Available from: http://www. (Accessed on 23rd May 2009). Geneva: World Economic Forum. Available from: https://www.anna. India. The Financial Express.com/news/en/media_release.gov.incredibleindia.
Available from: www. Available from: www.tourism. India Tourism Outbound • Nepal Perspective 2010 117 . 2007-2008.tourismthailand. Report on Evaluation Study in Selected Overseas Markets for Market Research Division. India as a Global Conventions Destination Prospects & Strategies Study.my Other Resources Used ETC Market Intelligence Group. March 2007.visitsingapore. The Indian Institute of Management Bangalore (IIMB) Research Team & India Convention Promotion Bureau. Ministry of Tourism. 2007. Brussels: European Travel Commission.com Tourism Authority of Thailand. Government of India. Market Research Division. New Delhi: Ministry of Tourism. Government of India.Annexure V Singapore Tourism Board.gov. New Delhi: Ministry of Tourism. Annual Report. Available from: www. ETC Market Insights: India. New Delhi: Government of India.org Tourism Malaysia.
Annexure VI Research Questionnaires Filled at the Consumer Promotion Events 118 .
2. 8. 15000. Are you selling International Packages ? If Yes. What countries ? Are you selling Nepal ? What Numbers per month ? <5 Up 5-1 Down 10-50 No Change 50+ How do you compare these numbers from last year Which is the closest destination competition to Nepal ? What is the tourist profile ? High Income Group Site Seeing Adventure Medium Income Group Religious Beyond KTM Rs. Comments & Suggestions India Tourism Outbound • Nepal Perspective 2010 119 . 7. 3. Support Needed from NTB for Nepal Promotion FAM Trips Advertising & Publicity Consumer Promotions & Events Sales Brochures 12. 5. What is the approx spend per person for Nepal < Rs. 6. 15-25000. 25000+ What are there preferred Activities ? 9. 10. 4.Annexure VI Format of the Questionnaire for Indian Travel Trade Nepal Tourism Board Questionnaire for the Indian Travel Trade Travel Agent Person Contacted Address Address City & Pin 1.00 Low Income Group Casino Shopping Rs.00 Security Flights Availability Hotels Availability Lack of Information Lack of NTO Support Others (Please specify) What is the most important issue you face while selling Nepal ? 11.
Cost share should be given only for: • • 100% Nepal Centric advertisements with NTB logo and other details Publishing in prominent publications. This will ensure that we get regular publicity in mainline publications on all year round basis. 120 . there is no advertising support to Indian travel agents who wish to promote Nepal. it is very important for Nepal Tourism Board to give sufficient support to the Indian Tour Operator. Whenever Nepal Tourism Board is releasing their own advertisements in Indian Publications.Annexure VII Responses to Queries Made during Presentation at Kathmandu. they should consider giving contact details of Indian Travel agents in the advertisements. This will ensure that travel agents have enough promotion material to sell Nepal on an year round basis. This will ensure that conversions are faster as intending visitors can immediately contact the travel agent and book packages upon reading the newspapers. This could be done in several ways and we recommend the following strategies: • • • • • • Marketing Collaterals and Sales Support Material Joint Advertising in Indian Newspapers and Magazines Travel agent support in local events Time bound campaigns with monetary incentives Special Incentives for MICE movements FAM trips for sales staff Marketing Collaterals and Sales Support Material Currently Nepal Tourism Board is distributing Marketing Collaterals and Sales Support Material only during Trade Exhibitions and Road Shows. Joint Advertising in Indian Newspapers and Magazines Currently. Personalised Marketing Collaterals will increase motivation levels of Travel agents and also enable prospective travelers to contact Travel agents with available contact details on the sales material as and when they wish to travel to Nepal. Nepal on 25th October 2009 Query 1 How Nepal Tourism Board can work out strategies with Indian Tour Operators as well as how Nepalese Tour Operators can work out strategies with their Indian counterparts? In order to ensure that Indian Tour Operators promote movement to Nepal. Nepal Tourism Board could consider floating a scheme offering certain percentage of cost share to all Indian Travel agents who are promoting Nepal by releasing Newspaper advertisements. It is suggested that Nepal Tourism Board should offer personalised Marketing Collaterals and Sales Support Material to top 10 travel agents in each key city on an year round basis.
Mementoes for the guests . Nepal Tourism should consider creating a special MICE promotion package for travel trade including the following: • • • Complimentary FAM trip for the corporate which are planning a MICE delegation to Nepal. This could include: . Special Incentives for MICE Movements There is a requirement to make a special incentive scheme for promotion of MICE movements to Nepal as well. Nepal Tourism Board should consider organizing a sales staff FAM trip for sales employees of the travel agencies. Special MICE offering for the corporate who has brought the delegation. This will ensure that travel agents have high motivation to sell Nepal packages and get rewarded as well.Special ticket prices for monument visits for large MICE delegations FAM Trips for Sales Staff Currently. Time Bound Campaigns with Monetary Incentives To push maximum traffic from India. all FAM trips are being organized for owners / senior managers of the Travel agencies. This will educate the sales staff and also motivate them to sell Nepal packages better.Complimentary entertainment during the visit for one evening . Synergy Development of Nepal Tour Operators with Indian Tour Operators Following activities could be undertaken to develop synergies between Nepalese and Indian Tour Operators • Organization of more Travel Trade Road Shows in India with active participation from Nepalese tour operators • Inviting Indian Tour operators to Nepal Trade Events such NATA mart • Conducting Joint workshops with Nepalese and Indian Tour operators in Nepal 121 India Tourism Outbound • Nepal Perspective 2010 .Annexure VII Travel Agent Support in Local Events Nepal Tourism Board can consider offering cost share support for travel agents promoting Nepal in local city based events such as: • New Year / Diwali Expositions • Local Club / Cultural Centre celebrations • Shopping Mall promotions This ensures that Nepal gets top of the mind recall in local events and the travel agents can sell packages faster.Gala Dinner for the MICE delegates . Special cash based incentives for travel agents who are bringing in a large delegation. Nepal Tourism Board could announce Travel agent schemes with cash incentives. The scheme could run for 3 months and travel agents be paid cash incentives for achieving passenger targets.
timesofindia.8 million international departures in 2007. When NTB advertises with AdWords.million mark for the first time ever and as per the WTTC report. but economies such as India. making the NTB website just a click away from the potential customer.6 per cent this year. The Indian outbound travel has now crossed the 10. the number of Indians travelling abroad in 2008-09 (April 1 to March 31) touched 10. It also predicts that the world’s travel and tourism economy’s size will contract by 3. which displays ads to people looking for specific products or services on Google or its partner sites. etc. Promotions by Banner Ads in popular messenger services such as MSN messenger.8 million.ndtv. When a potential customer searches Google using the same or similar keywords. China and Brazil will still be drivers of growth.7 million in 1997 to 9. Urban users continue to dominate internet use contributing to 42 million of the 45 million odd users. Google AdWords is Google’s advertising product.com. Orkut and Linkedin and reach target audience by advertising on these sites. which was up by a million over the 2007-08 figure of 9.3 million active internet users. Nepal on 25 th October 2009 Growth of Indian FITs Outbound Travel over the Years As per the latest figures released by the World Travel and Tourism Council (WTTC). the pace of growth has accelerated since 2004 at an average annual growth rate of over 16%. www. • • • 122 . Using Social networking sites such as Facebook. your Google AdWords ads may appear alongside or above the search results as a “Sponsored Link. NTB then use these keywords to create ads that target Indian potential customers when they search for travel related products or services on Google. India had as on September 2008 45.Annexure VII Query 2 Responses to Queries Made during Presentation at Kathmandu. Nepal Tourism Board could consider following options for capturing Indian Outbound tourism market via the medium of Internet marketing: • Using Google Adsense and Adwords Services Adsense Displays targeted Google ads on Nepal related content pages and Nepal Tourism Board can show ads that are suited to Outbound Indian Tourist audience’s interests. India is expected to grow by 10 per cent in the number of outbound Indian tourists in 2009-10.8 million.com. Promotions by Banner Ads in popular Indian websites such as www. NTB can pick words or phrases (called “keywords”) that are related to travel business and products or services. India now is the third largest outbound travel market in the Asia Pacific region. The Indian outbound travel market had grown from 3. Query 3 Use of Internet Marketing in Capturing Outbound Indian Tourism As per a recent survey done by IMRB International and Internet and Mobile Association of India [IAMAI].” in response to the keywords searched.
com Brand Reinforcement by advertising and promotions on social networking sites such as Facebook. Nepal Tourism stakeholders should use Internet as a major medium to book Indian travellers. Step 3 Step 4 Step 5 India Tourism Outbound • Nepal Perspective 2010 123 . Following roadmap could be used by Nepal Tourism Board for enabling internet as a booking medium for Nepal Step 1 Design of a Nepal Centric direct sales website with the following facilities: Information on Nepal Provision of Readymade instant availability packages by Nepalese travel agents Provision of instant Air ticketing by Nepal Air. Regular website update for interest maintenance.timesofindia.com and www. Orkut and Linkedin. Indian Rupee payment gateway for travel packages and airline tickets.ndtv. Air India and Jet Airways.Annexure VII Query 4 How Nepalese Tour Operators can take Advantage of the Internet Marketing Opportunities As mentioned in the previous page. Step 2 Usage of Google Adwords and Adsense to capture interested Indian Outbound tourists and bring to above website Increase of traffic to above website by heavy promotions on popular Indian websites such as www.
CHANDIGARH . 23. Subhash Chandra Bose Road. Ltd N-33/10 Middle Circle. Marg.110048 India Grand Travel Planners (P) Ltd.411004 India Bhavi Tours & Travels 8. Limited 5.411030 India Evergreen Travels S. M. Sadashiv Peth. Dalal Street Fort.400099 India Bhagwati Travels 171.C.160022 India Holiday Maker (India) Pvt Ltd USO House. Pereira Hill Rd. Vidhan Sabha Marg. 11. NAGPUR . Ground Floor. Sriram Tower Ashok Marg. Residency Road.B. Greater Kailash Part . Ltd.II NEW DELHI . Ltd. Chembur. Rainbow Complex. 401. 94-95. JAIPUR .400003 India Chawla Travel Services Shop No.110067 India Girikand Travels Pvt Ltd 759/90 B Bhandarkar Institute Raod. Ltd. 14-16 1st Floor. Raheja Centre. Special Institutional Area. NEW DELHI . AHMEDABAD . 21. (Near S. Avadh Bazar. Next to Eros Cinema. Sector 17-C. AMRITSAR . Second Floor. L. 8 M.G. Shastri Road. Dhan Nirman Complex. Sion-Trombay Road.O. 214 Free Press Journal Road.160022 India Disha Travel 103. Suraj Chanda Cinema Complex. Scindia House. LUCKNOW . NDSE Part I.226001 India Great Escape Travels Pvt. Ltd.C. 55-56. 6. Crawford Market. 486. Connaught Place.Andheri (E).226001 India Balaji Travels Pvt Ltd 6. City Centre. MUMBAI . Cambata Building J T Road. Stadium Road. Near Shakti Bhawan. Akbar Bhavan. NEW DELHI . Behind Picaddaly Theatre CHANDIGARH . # 87-88. Andheri Kurla Rd. Sector 34-A CHANDIGARH . Goodluck Mansion. MUMBAI . Uttar Pradesh LUCKNOW .O. PUNE .440018 India Heena Airways 29-Ground Floor. Road. Nariman Point MUMBAI .160017 India Buena Vista Travels Pvt Ltd 23. M-10.400021 India Crystal Tours & Travels Pvt. MUMBAI .380009 India Impact Tours (India) P. Ellisbridge. Opposite Town-Hall Ashram Road. AHMEDABAD .226001 India Great Value Travels 1st Floor.Swastik Chambers.400023 India Civica Travels Private Limited Aakriti Towers. Veena Chambers. PUNE . NEW DELHI .I.226001 India Bhagyashri Travels Pvt. Subcity Centre. MUMBAI . 15 A-Ashok Marg. Hotel Clarks Avadh.110001 India Anderson Travels P.110001 India Globe Forex & Travels Ltd.110049 India 124 . Panch Batti Crossing. CHANDIGARH .380006 India Hargobind Travels S.I.302001 India Blue Sky Worldwide Travels SCO-188-190.Shreya House.O. Sakar-IV.B. Deccan Gymkhana. Sector 34-A.C.Travel Agents List of the Travel Agents Contacted Akbar Travels of India P. NAGPUR . MUMBAI . S.19.143001 India Contact Tour & Travels LGF-1.400071 India Indica Travels & Tours Pvt Ltd D-52.) LUCKNOW . Qutab Hotel Road NEW DELHI . Churchgate. Ltd.440001 India Grandeur Travels & Tours P Ltd 4. Namjoshi Bhavan. 69/71Janjikar Street. Sector 34-A.160034 India Incentive Destinations P.400020 India A-One Travels Ground Floor. LUCKNOW .
411030 India Lynx Tour and Travels 140. Opp.110001 India TGS Tours & Travels P Ltd Tholia Circle.143001 India Indra Travel Consultancy Services 12. Abhijeet Mithakali Six Roads AHMEDABAD . Tolstoy Marg. Sai-Prasad 8/12.302001 India Jasbhag Tours & Travels Ist Floor. Din Dyal Upadhyay Complex.380009 India Kaleidoscope Travel Consultants (P) Ltd.400602 India Leisure Trips 207. LUCKNOW . Sadhu Wasvani Chowk.Travel Agents Indoglobal Travels Pvt Ltd Shridhar Smriti Behind Dr. Nal Stop Off Karve Road. Next to Solaris Gym. Jagsons Enclave. Chandpole Bazar. LUCKNOW . AMRITSAR . PUNE . NEW DELHI . Yashdeep Apartments.226001 India Om Air Travel Pvt.226001 India Prompt Travels Cabin 3. Customes House. Sheikh Sarai Phase . Road. S. PUNE .411001 India One World Travels 16. India Krisia Holidays & Travels Private Limited 82 Arcadia.411037 India International Travel House Ltd. 1st Floor. S.411004 India J & S Travels Pvt.P. MUMBAI – 400021 India Orient Travels 10-A. Ltd. Setu. Ranjit Avenue. 273. Pune Camp PUNE .Deodhar’s New Hospital Gokhale Road. Off. Near Hanumanji Temple.110001 India Mayfair Airtravel Services Pvt. Ltd.C.440018 India Narula Travels Pvt Ltd Mohan Dev Building. A-1.380006 India Master Tour Organisers 1. Connaught Place. 696. T-2.380006 India Paras Worldwide Tours and Travels 1/Side M K Hotel.110001 India Perfect Connections Limited T/A Uniglobe Perfect Connections.110017 India Prasanna Tours Pvt. Distt. Shop No. S. B/H.15.No. Community Centre.160009 India Jagsons Travels Private Limited. Bhandari Bridge. 208-209.I. Antriksh Bhawan. New Delhi House. AMRITSAR – 143001. 101.O. 27 Barakhamba Road. NEW DELHI . Thane (W) MUMBAI . Maqbool Road. AHMEDABAD . 4 Way Road. 117-A. AHMEDABAD .44-45 Madhya Marg. Shopping Centre. Sarita Darshan Appts. Aditya. NAGPUR .Ashram Road. Sector 9-D CHANDIGARH .4. Rajasthan JAIPUR . Limited 203. Ltd. Maharashinagar. 13. Hazratganj. NEW DELHI . Opp. New HiTech Chambers. 1st Floor. AMRITSAR . PUNE . Nagar Road. Mayfair Building.5 (First Floor).’A’ Wing. NEW DELHI . JAIPUR . Jai Hind Press. C. Historian Joshi Marg. (1st Floor) Pt. Central Avenue.302001 India Nationwide Travels Ganpati House. Madan Mohan Malviya Marg. Shree Sai Tower.195 Nariman Point. Mirza Ismail Road. Parmar Trade Centre.143001 India India Tourism Outbound • Nepal Perspective 2010 125 .G. Narayan Peth.
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