NTOs Bet Long On India The Race Is Hotting Up

Several International Tourism Boards (ITBs), new as well as old, have poured resources into promoting the Indian outbound through good times and bad. Bhisham Mansukhani and Charmaine Fernz probe into one of the world’s latest goldrushes trailing a teeming list of NTOs eyeing the Indian outbound pie

Back in the mid 1990s, air travel for India’s largest consumer class ie the middle income bracket, was strictly window shopping fare — good to dream, impossible to experience. The great Indian middle class no longer appreciates this frugal notion and today considers shopping in Dubai or a cruise spanning Kuala Lumpur and Singapore with well placed enthusiasm. Redoubtably, the Indian outbound story has mirrored the evolution of affordability that cellular phones witnessed during its first decade in India and is one that will continue to get better as India shines on.

Although domestic tourism outscores outbound in sheer numbers, there is little debate about which segment scoops up bigger profits. This has not gone unnoticed and as Indian outbound verges on five million and as direct testament to this surge, the count of National Tourism Organisation (NTO) offices in the country is now beyond 14 and rising. The latest aviation news rings in the clearance for outbound charters that could literally take overseas vacation to the man on the street as economists celebrate double digit GDP growth figures. Top it with the dollop of foreign exchange over US$ 120 billion of reserves and a strengthening rupee that is egging the government to allow Indian travellers all the exchange they want and there is then an extricable feeling of further boom. All this sets the pitch for another flood of Indian outbounders and perhaps, one suspects, of newer destinations too

Been There, Learnt That

Resilience is the consequence of uncertain hope and has been the unmistakable mantra for the thoroughbred tourism boards that pitched their sights on the Indian market much before the outbound phenomenon betrayed any vital signs of success. Malaysia was one of them. Tourism Malaysia director, P Manoharan proffers, “ The Board started its operations in India in the year 2000. Tourist arrival from India to Malaysia in the year 1999 was just 40,000, with business travellers contributing significantly to that figure. Studies conducted by Tourism Malaysia indicated that with the opening of the Indian economy, spending patterns changed and awareness on multiple options emerged. That met with Malaysia’s signature campaign “Truly Asia” and the results were there for everyone to see. The total arrivals from India for the year ending 2002 jumped to 183000, an increase from 1999. The length of an average stay also increased from three nights to five to six nights nights and leisure, holiday and honeymoon travellers were the major contributors to the increase in incoming numbers. India has been categorised as one of the ten prominent markets for Tourism Malaysia in 2004.”

Hong Kong Tourism Board (HKTA) is another NTO that pegged its faith in the Indian market back in 1999 and received double digit growth for four of its five years in India, save 2003 at the height of the SARS contagion. It mainly focussed on the North West region and the South. According to an HKTB spokesperson, “Hong Kong sees India emerging as one of the key markets of the region and therefore one of the most valuable. The percentage growth of Indian visitors has been in double digits over recent years. Despite the unprecedented challenges brought by the SARS outbreak in 2003, visitor arrivals from the Indian market reflected a strong V-shaped rebound. In total, Hong Kong recorded 178,130 Indian visitors in 2003, a modest single-digit shortfall of eight per cent over 2002 figures.”

Other notable veterans that were early entrants in the Indian market include the British Tourist Authority (BTA) now VisitBritian that set up office in 1988 and Dubai Tourism and Commerce Marketing (DTCM) in 1997 with a substantial initial investment of Rs 70 lakh. DTCM has a lot to smile about, receiving 2,18,000 Indian tourists in 2001, an almost 100 per cent increase over its 1997 figure of 1,20,044.

Long Story Sought

Opulent and fascinated Europeans and the Japanese who outdo them in both departments have hitherto been the unfailing patrons of the world’s teeming wonders. There’s another department in which the Indians outdo them both — an insulation to geo political tumult. Tourism Authority of Thailand’s India market promotion director, Somprasong Varamisra proffers, “As an international tourism board, we have to consider good long-term stories from a point of view that is over and above the temporary set backs that geo-political events and natural calamities bring on. In such undesirable situations, the overall market dips but then there is the challenge of prioritising markets and knowing which one will grow sustainably in the future. From that point of view, India is very relevant. For instance, India has quickly become our biggest market in south Asia and our top 20 worldwide in under five years of promotion. Given the preferences of Indian outbounders and the concepts that we are pushing in the market, the growth is not surprising but the pace is very encouraging and has not gone unnoticed.” The Tourism Authority of Thailand (TAT) has a representative office in New Delhi and its 2003 count of Indian incoming was 2,50,000 with a year on year growth that went as high as 23 per cent per year. “In recent years, that figure has fluctuated due to uncontrollable calamities but there has not been a single year of negative growth. That omen augurs well for a market with a long-term story. As far as official infrastructure is concerned, we are ready to open office but the offer has to be reciprocal. The office, when it does open, will be located in New Delhi. The cultural and culinary festivals have succeeded to drive significant numbers to Thailand as that’s our USP right now. The tourism budget allocation is significant, growing as and when the strategy demands. Our target is a consistent rise of 20 per cent,” said Varamisra.

More To Come

Turkey is one of the relatively newer entrants to the Indian market and despite a wait and watch approach adopted by the headquarters. The Turkish Embassy in New Delhi is so far fronting the tourism promotion activities. Nestled on the fringes of Asia and Europe, Turkey is positioning itself as a combination of the two continents and more so as an accessible option to holiday in Europe. This will depend on its accession to the European Union. Tayfun Sener, director for information from the Turkish ministry of tourism is hopeful of getting a foothold in the Indian market. He says, “Turkey is a mid-market destination with proximity to Europe and is just five hours from New Delhi. The Indian outbound market, according to our research, is one of the world’s five fastest growing outbound markets and will remain so. Indians are the noveau rich and within this rising business cycle, we will find a fair share of incoming.” In 2003, 10,000 Indians visited Turkey of which 7,000 were leisure travellers. Kenya Tourism is equally positive. A ten per cent year-on-year growth for the last five years, a windfall during the cricket world cup last year and a favourable reception to tourism derivatives promoted by the destination like marriage and conventions are spurring plans for an office opening in the immediate future. Kenya Tourist Board’s regional manager Fred Okeyo avers, “The Indian market has registered steady growth from the onset. 20,000 Indians came to Kenya in 2003. Leisure has increased significantly. There is a visible keenness in the Indian market to know about Kenya and it is poised to edge ahead of the business component of the incoming figure. Wildlife and beaches now take their place in the diversity that is Kenya.”

Okeyo underlined the importance of the Indian market by hinting at a tourist office opening in Delhi in the near future. “We are also seriously evaluating our option with respect to opening an office in India as part of a global strategy to open offices in key markets. So far, we have five offices. India is one of our top ten markets and will soon be in the top ten. To grow the market, we are now looking at offering value for money packages that the mid-market can afford. Our strength has always been to tailor make products. That serves us well in the high-end and budget markets as in the former case, we can offer exclusivity and the latter, the package offers flexibility in term of the number elements that add to the cost that the traveller can afford,” he said.

Keeping The Faith

Terry Francis, Canadian Tourism Commission (CTC), says “India is top priority in terms of market opportunities. Canada is an all season destination that has a variety of activities for the urban and adventure lovers. It has stunning natural beauty as well as vibrant cities. It is home to the famous wonder - The Niagara Falls as well as to the Rocky Mountains.” He further comments on why they have set up office in India, “Indians are becoming more adventurous in the selection of their holiday destinations. They are open to new ideas and are willing to experiment. Canada recognises this opportunity and identifies India as the new emerging market.” Korea has been around for more than five years, about 50,000 Indians, visit the country on business which accounts for 80 per cent of their tourist arrivals from India. Jeon Hyo Sik, director, Bangkok office, Korea National Tourism Organisation (KNTO), informed, “Every year, it has been growing by two to three per cent. We have taken regular familiarisation trips for Indians to Korea every April where we take ten travel agents. This September, we plan to bring down ten travel agents. At the moment, we cover the Indian market from Bangkok but in a couple of years, perhaps we will strongly consider opening an office in India, taking into account the growth and the increasing number of leisure vis-à-vis business traffic.

“It is important to be here”, says Ines Griesser, media manager, Vienna Tourism, “because the Indian market has picked up so incredibly since 2000 that 10000 Indian tourists visiting Vienna alone does not seem too ambitious. 2003 did affect Indian visitors numbers to Austria on the whole - the Indian travel trade informed me so. Still we had 9000 Indians in 2002. We have participated in Austrian Tourism roadshows for sometime now and have entered new markets, particularly in the south. There is an impetus getting direct flights from Mumbai to Vienna apart from the present Delhi Vienna route though that is presently under wraps. For Vienna, two of the biggest India specific segments are marriage and Bollywood. Vienna is a city for romantics and more so for those who want to institutionalise it. Couples can get married in a palace or a giant wheel cabin suspended in mid air! Besides, some Indian directors have already shot on location in Vienna and the tourism board is geared to take Indian directors and producers to locations in Vienna and facilitate the process for setting up shoots. As Indians prefer to visit multiple European destinations, Vienna is allying with Prague, Budapest, and Berlin and several Italian cities for regional tourism.”

Right Here Thriving

According to the World Tourism Organisation (WTO), tourism is the world’s largest industry, accounting for 11.6 per cent of global GDP and 9.4 per cent of the world’s total employment. In 1998, the world saw 613 million tourist arrivals, generating a total expenditure of US$ 444 billion. It is indisputable that apart from the elite club comprising Europeans, Americans and Japanese, the Indian affluent and middle class have, without much fuss, become such inveterate globetrotters that tourism driven countries have invested time and resource into this sub-continent relentlessly. Industry representatives say that the total spending of all tourism boards put together was Rs 20-25 crore in 2002 with Malaysia and Singapore being the highest spenders. That figure is set to further swell with newer markets like Brazil, Cambodia, Croatia, Turkey and Sharjah making further forays and existing ones taking their commitments to the next level by adding or creating office infrastructure. Here rings one Indian story, which is not a sad one and it is not about to end either.