The Airline - Tourism Nexus: It's A Win-Win Situation

An efficient aviation sector is essential to support the tourism industry, which has immense employment opportunities and the tourism and airline industries with a joint proactive approach can foster tourism development and promotion in a big way, emphasises Chandana Khan

One of the pre requisite for the development of tourism is 'easy access' to the tourism destination, in terms of international and domestic connectivity and easy movement within the destination. An efficient aviation sector is essential to support tourism industry, which has immense employment opportunities. Investment in tourism industry generates the largest number of jobs. Statistics reveal that an investment of Rs 10 lakh creates 13 jobs in manufacturing, 45 jobs in agriculture and 89 jobs in tourism.

Air connectivity is essential for the growth of tourism. Airlines and tourism are self dependent. The tourism market grows by itself with new connections and a popular destination attracts more flight operations. It is a win-win situation.

The recent developments in the area of civil aviation will change the travel dynamics. Naresh Chandra committee recommendations would open up the civil aviation sector far and wide. The recommendations include allowing foreign equity (including foreign airlines) up to 49 per cent in domestic carriers, privatisation of national carriers, allowing domestic airlines to ply on international routes, and abolition of a pile of taxes that make flying within India as expensive as it is today.

There will be a new beginning with domestic airlines allowed to ply on international route. The under utilised bilateral rights will be utilised to the maximum which will benefit Indian aviation and economy. It will increase accessibility for the outbound and inbound traveller, give travellers more choice and competition a run for its money.

Direct connections would also give further impetus to tourists arrival. Over 40 per cent of the passenger traffic is concentrated in two main international airports namely New Delhi and Mumbai. There are only 12 major airports in the country and the limited terminal capacity at these airports has led to increased congestion, bunching of flights and delays in passenger clearances. This has lead to overall saturation. Growth is recently being witnessed in certain regional markets of India namely Bangalore, Hyderabad. Andhra Pradesh was the first state to take the initiative to lower the sales tax on Air Turbine Fuel (ATF) to four percent followed by Chhattisgarh. Connectivity to Andhra Pradesh has tripled since the state lowered the tax on ATF. The increase in connectivity has contributed to domestic and international tourist arrivals.

The infrastructure on the ground at regional airport is however limited. The government has identified 24 airports for modernisation and this will enable major development of regional airports. The development of the new airports at Bangalore and Hyderabad has been enabled by the Indian government's recent decision to privatise the country's airports. The Kochi airport with relatively liberal flying rights has opened vistas for international charters.

For better connectivity few individual regional sectors should strung together and be connected to a bigger hub. Such links will contribute tremendously towards promoting inter-State tourism and also establish and develop the profile of South India as a tourist destination.

India's first lower cost airline Air Deccan, establishes the long cherished concept of "Low Cost - No Frills Airlines' on the Indian Sky. The low cost carrier will help to develop a new class of flying audience. The airlines act as a feeder network for the bigger routes and enhance the connectivity. Low air travel cost offered by such airlines will increase domestic air travel by many folds. These feeder networks if extended to more cities within the State will help in promotion of tourist attractions in the State with faster connectivity at economy price.

Special showcase packages in association with airlines have helped in promoting tourism in a big way. Apart from the packages, promotion measures available in-flight in form of in-flight channel, magazines etc have its own advantages to tap the captive audience.

The tourism and airline industries with a joint proactive approach can foster tourism development and promotion in a big way.