‘Tourism Needs Reform And Good Governance In The Long Term’

Ashwini Kakkar, CEO and MD, Thomas Cook (India) Ltd has been tourism’s and aviation’s only voice in an incessant Bombay Chambers of Commerce and Industry’s (BCCI) quest to push the government into reform mode. He has now taken over as president and in the best possible position to make a case for the Indian industry overall. Excerpts from an interview with Bhisham Mansukhani

Are you optimistic about the future of the Indian industry in light of the recent elections?

The Hinduvta agenda is no longer a concern but the influence of the Left is. The Left party has won over 50 seats which is their best performance in some time and they will be pushing for a strong Common Minimum Programme (CMP), which will invariably lead to a higher level of subsidies. Already free power in Andhra Pradesh is being promised to farmers which is not a sign of a healthy, robust economy. While, I understand that the gains of erstwhile shining India need to percolate downward to the poor, all the subsidies get misused and never make it to the people it is intended for. The only way to lift the poor is to employ them gainfully. That will be the biggest challenge for the next government. There are 400 million youth in this country and if they are not gainfully employed, we will have a social revolution in this country.

How will you make tourism’s case to the new government as BCCI president?

Tourism is the single largest employer in the world and BCCI estimates that in the next three years, this industry could potentially employ up to 25 million. The Congress, I am sure, would be mindful of this and we can expect some kind of infrastructure development. None of the parties have however truly understood the importance of tourism. It is largest GDP multiplier and foreign exchange earner in the world for the countries that have implemented successful tourism models. Substantial investment is required but the returns, I think, are the highest that can be garnered compared to manufacturing and agriculture. The last government had promised open skies, if it retained power. This is now an unfinished agenda. Tourism does not need sops, instead it needs reform and good governance in the long-term. Bombay First, a BCCI initiative, has commissioned a study by Mckinsey report of what needs to be done in the years for the city to survive.

What is your broad agenda for the Indian industry?

My agenda firstly entails chamber-related activities that focus on what is going to happen at World Trade Organisation (WTO) and how can we push the VAT agenda forward as well as what can we do for the chamber itself. Given our distinct status as a chamber run by professionals, unlike conventional owner-manager chambers, we can add more value to the nation’s industry with a combination of knowledge and neutrality.

Secondly, under the Bombay First agenda, the focus will be on infrastructure development within the city. With regard to the India agenda, we will have to ensure that India remains firmly on the growth path. Employment creation, reform and the role of agriculture and manufacturing alongside services will also be a priority

What can the tourism industry hope to gain from your stint as BCCI president?

This is the first time that a tourism professional is presiding over BCCI or any association of the like. I will definitely take the opportunity to appraise the government of the benefits of tourism to the national economy and I will broach the subject with all the relevant ministers. Given that the tourism industry worldwide is worth US$ 4.6 trillion industry -- larger than the entire automotive and chemical sector put together, India has only to gain, if the government pursues this sector more robustly. It cannot however be the only sector that is pursued. India already has 50 per cent of its growth coming through the services sector. In addition, we have to look after agriculture as well. With degrees in mechanical engineering, finance, law as well as an MBA, I am in a position to provide sectoral assistance to the government.