The main reason WTTC came to India was to make the country and especially the government realise that tourism is not reserved for the elites, rather it is an economic activity. Jyoti Koul finds out how much was achieved by the WTTC India Initiative and why it is shutting shop

STOP PRESS: It is all-official! WTTC is shutting shop in the country. A promising enterprise cut short.

Lalit Suri

Globally, WTTC will still be involved in tourism promotion of India. It will also continue to work in India and host retreats

Ironically, while the World Travel & Tourism Council (WTTC) was busy beating drums about its third upcoming retreat, the rumours of its closure were doing the rounds in the corridors of the industry. Until recently all was well, at least on the surface, when reality hit and it was learnt that the WTTC is calling it quits in India. Industry sources cite two reasons for WTTC discontinuing office operations in India. Firstly, the Initiative was not performance-oriented and secondly, the office incurred high operational costs. It was noticed that the WTTC has been spending an exorbitant amount of money on the India Initiative operations. Running the secretariat has been just too expensive for a non-commercial organisation like WTTC.

But prior to ceasing operations, the Council will organise its third retreat in Srinagar in September. Till December, the WTTC India Initiative will be a functional secretariat.

However, while the Council shuts shop in the Indian sub-continent, it will continue to have a presence through a sub-committee. This decision was taken during a closed-door meeting between the India Initiative members and president, WTTC, Jean Claude Baumgarten held recently in Delhi. It was decided that instead of a permanent head, there would be a chairman on a rotational basis for a period of six months. A sub-committee of nine members has been set up and they will give recommendations on how WTTC can further involve itself with tourism development in the country. The sub-committee will decide whether or not to have an office operational along existing lines or go for a different arrangement. Nevertheless, as the WTTC has been directly funding the India Initiative, the decision will also depend on membership contribution, as the new representation will be run independently. (Presently, the membership fee is US$ 7,000 and it is likely to be revised).

It is debatable therefore, whether, with the closing of its India Initiative, WTTC will survive in India.

Flashback

With a prime objective of making governments aware of the tourism industry’s potential, the World Travel and Tourism Council (WTTC) came into existence in 1990 as a global organisation to promote all sectors of travel and tourism. It was set up under the leadership of Jim Robinson III of American Express. The aim was to create a global body to represent broad-ranging interests of the industry.

Later, on the recommendations of one of WTTC's executive committee members, PRS Oberoi of the Oberoi group, the Council decided to launch its initiative for India. Oberoi believed there was an opportunity for WTTCto help India develop a new approach to tourism thereby boosting the economy and employment. The non-profit organisation launched its India Initiative in February 2000. The stated purpose was to create awareness of the crucial role that travel and tourism plays in the Indian economy in terms of its contribution to the GDP, creating employment and responsibility to the environment.

WTTC's India Initiative was backed by 26 of India's key players from some of the world's most influential travel and tourism companies.

Globally, over the past decade, the Council has become a leadership organisation for the industry, representing 124 global and regional members who are key players in the world's most influential travel and tourism companies. Back home, WTTC appointed a secretary general for the India Initiative to formulate a coherent and cohesive strategic policy for the region. "With growth opportunities in travel and tourism indicating positive signs in the country, our objective was to work with the private sector to maximise this potential," said Jean Claude Baumgarten, president, WTTC. However, WTTC’s India Initiative is set to die young.

Yogesh Chandra

The aim of the first WTTC retreat at Agra was to get the industry's act together and fast

End Of A Beginning?

It was not long ago that Baumgarten had reflected on WTTC’s achievements in superlatives. He mentioned that, "Having identified our goals, we set about spreading our message to the government of India, state governments and media. Now during the third year of its existence, we have entered a new phase and launched high level retreats involving all major stakeholders in India’s travel and tourism industry."

So, has the objective been achieved? Not yet, says PRS Oberoi, member, WTTC. As he puts it, "The WTTC believes in moving ahead. Besides, the India Initiative was set up for a limited period. The organisation does not want to be stuck at one place as its normal duration for any such initiative/chapter is three to four years and then it moves on. The main reason why WTTC came to India was to make the country and especially the government realise that tourism is not an elitist affair but an economic activity. Being the largest industry in the world, it wanted India to realise the vast untapped potential of the travel and tourism industry. So, the basic objective of the Initiative is far from finished."

Lalit Suri, chairman, and managing director, Bharat Hotels Ltd and WTTC member says that on a global level, WTTC will still be involved in tourism promotion of India. "It will also continue to work in India and host retreats. However, WTTChas now decided that it should provide autonomy to people. Therefore, we are thinking of having an office by rotation. It will carry on its agenda and objective to create necessary awareness about tourism and advise the government on tourism related issues," said Suri.

On the other hand, according to sources, many of WTTC’s members have already resigned because Baumgarten had earlier mentioned that WTTC is going to lessen its involvement with India. On this point, Yogesh Chandra, secretary general, WTTC questions, "In the new arrangement won't this involvement increase?"

However, having established itself as an elitist tourism body in a short span of just three years, the strength of the WTTC, like the Confederation of Indian Industries (CII) and FICCI, was of an independent secretariat.

It was their first retreat that set the WTTC's India Initiative apart from the rest of the industry associations. This could be attributed to the fact that the 'retreat really proved different' unlike the conventions of other associations like the Pacific Asia Travel Association (PATA), Indian Association of Tour Operators (IATO) and Travel Agents Association of India (TAAI). Albeit, it was ‘different’ as an elitist activity, and never took off as a 'mass' movement. The creme-de-la-creme retreat gatherings met, deliberated and rested. But nothing much was really achieved.

Maharaj Wahi

Its closure will not affect tourism development in any way

Sample this.

The three-day retreat at Agra will go down in the history of Indian tourism as the only platform where all bigwigs of the industry, influential MPs, celebrity journalists, ambassadors and representatives of airlines came together for the first time to realise the worth of Indian tourism. But, it will also be remembered as the only event where despite the presence and promise of bigwigs, nothing concrete happened.

Commenting on the retreat, Yogesh Chandra, secretary general, WTTC had said then, "The aim was to get the industry's act together and fast (as it had set up a deadline of three months). Therefore, we would show the results and findings when we meet again."

Well, the ‘instantaneous action’ that was assured in the setting up of a cabinet committee on tourism under the prime minister’s chairmanship has not taken shape till date. And let's look at the fate of the five other concrete declaration/suggestions proposed at the retreat :

1. To set up a cabinet committee on travel and tourism
2. Increase the plan outlay for the sector.
3. To increase access to India set up a system of visa-on-arrival.
4. Rationalisation and uniformity of taxes
5. New marketing of the brand called 'India'.

No doubt that each and every policymaker and member of Parliament present there gave a positive response which can be simply termed as overwhelming but with a shelf life of its own. The retreat managed to attract bigwigs across party lines to stress on the need to improve tourism and therefore, improve the economy. Samajwadi Party MP Amar Singh had enthusiastically remarked then, "We will go to the tourism minister, Jagmohan and state tourism ministers and form a strong delegation to address tourism concerns to the prime minister in order to promote tourism." But that was the last that was heard of Amar Singh on tourism.

On marketing India as a brand, the retreat pointed out the need for a consistent, cohesive and concise brand 'India'. It was planned to market it on the lines of what other countries have done. "Our brand is very strong. In that case, we need to bring people from different channels to focus on the issue. India has a genuine advantage as far as its tourism resources are concerned. It is certainly a competitive destination for three major reasons. The fantastic locations, a cultural DNA for hospitality and the advantage of English as a widely spoken language," remarked Suhil Seth of Equus Advertising then.

Commenting on the visa-on-arrival issue, PRS Oberoi, chairman, EIH, mentioned that, "September 11 became a good excuse in the process of visa-on-arrival. Until 1982, there were no visas required, it was introduced during the golden temple problem, as security became a major cause. Our government thinks that visas should be on a reciprocity basis but it is never like that. Here, at the retreat, we told the government that reciprocity does not work as far as visas are concerned. We need to distinguish between bilateral relations and the visa-on-arrival issue as far as reciprocity is concerned."

On taxation, Suri had said, "One should realise that the burden of heavy taxes is borne by the tourist, who ultimately regards them as irritants and opts out for other comparable but more economical tourist destinations. The issues of taxation on tourism have now gained increased importance in the wake of 9/11. We therefore, suggested a step towards rationalisation of tax structures with a single cap measure both at central and state levels which would help the tourism industry play a vanguard role in boosting employment and gaining its rightful share in the global market and all the issues were well conveyed".

Significantly, the government in the union budget 2003 took up many of these recommendations. But, the credit for increased outlay and tax relief is being shared by most of the tourism associations like IATO, the Hotel Association of India (HAI), Federation of Hotel and Restaurant Associations of India (FHRAI), and TAAI.

The Consequence

So, will the closing down of India Initiative impact tourism development in the country? No, maintains most tourism practitioners. "The existence of the WTTC India Initiative has never impacted tourism development. Therefore, its closure will not affect tourism development in any way. But yes, I will admit that it also tried its bit to create awareness about tourism," said Maharaj S Wahi, president, IATO. Besides, the industry has proposed to have a confederation of tourism associations which will represent all associations and lobby for tourism.

Jean- Claude Baumgarten

With India’s growth opportunities in travel and tourism showing an upward curve, our objective was to work with the private sector to maximise this potential

A promising undertaking which the WTTC planned was to join hands with the Hotel Association of India (HAI) to conduct an exclusive presentation for members of Parliament (MP), both Lok Sabha and Rajya Sabha, along with chief ministers of the states and other officials from the government of India. Focussing on issues related to the hospitality industry, the joint presentation’s primary objective was awareness building regarding the grievances and expectations due for the hospitality industry, amongst policy makers, administrators and officials, at the centre and state level. The presentation had been conceptualised completely with the government as the focused target audience. Apart from the executive branch of the government, the legislature was also thought worthy of getting substantial insight into the essentials and requirements of the service industry. But unfortunately it never took off.

Tourism Satellite Accounting: Possibly the only achievement that is worth talking about is the research work WTTC has done on Indian tourism. From time to time, the WTTC brought out the Tourism Satellite Accounting report that distinguished it from the other tourism associations in the country. Very recently, it released its first regional report for an Indian state. The council collaborated with the government of Kerala to produce Tourism Satellite Account (TSA). The report views the current performance of India’s travel and tourism and provides forecast based on most recent national and international data fed into econometric models developed by the WTTC's research partner, Oxford Economics forecasting.

Concluding Act

The proposed retreat to be held in Srinagar in September will prove to be WTTC’s final act. The India Initiative's third and last retreat will be held in Srinagar between September 6-7, 2003. Reportedly, the third retreat will look into the progress of the previous two retreats. Although there is no mention of any specific theme for this retreat but it will look into the efforts made during the previous two retreats to resolve tourism related issues and chart the course of action for future.

The New Subcommittee Members

WTTC has now set up a subcommittee of nine members which will give recommendations on how it can further involve itself with tourism development in India. The members are: 1) Lalit Suri - Bharat Hotels 2) Nandini Verma - Jet Airways 3) Vikram Madhok - Abercrombie & Kent 4) Priya Paul - Park Hotels 5) Ajoy Mishra - IHCL 6) D K Beri - IHCL 7) Ragini Chopra - Oberoi Hotels 8) Radha Bhatia - Amadeus 9) Arjun Sharma - Select Holidays

Goa Retreat: Crisis Management Post 9/11, the global tourism industry came to a standstill and India was no exception. Aptly the second WTTC retreat in Goa stressed on finding a permanent solution to tackle any uncalled for event restricting the movement of people. Therefore, the Council suggested setting up of a crisis management committee. Besides, a follow up on the earlier retreat, it also focussed on how private and public partnership can be made effective and liberalising civil aviation policy. The Goa retreat was a further follow up of the five-point agenda discussed at the Agra Retreat. According to Chandra, quite a bit has been achieved in this five-point agenda. He said, "With respect to the achievements, most importantly, we have been able to create awareness about the potential and issues of the tourism industry and we have been successful in communicating it to the right people. The privatisation of the airports is in process. National carriers are improving their fleet of aircraft."