The passage to success

By Arjun Sharma
MD, Le Passage to India

From the tourism perspective, the year started well and we were all quite upbeat about 2007. But by the time we reached November we realised that the scenario was not so great. There has been moderate growth - the reason as known to all of us are the towering hotel rates, the policy on selling the more expensive rooms with more upgraded room categories.

I am sure that my hotelier friends will agree with me when I say that hotel rates have started affecting corporate and leisure growth. This can be attributed to the special offers given during the season and open dates being circulated by hotels. Further, the change in tariff from USD to INR was not timed correctly by many hotels resulting in confusion among the operators.

There are certain areas where we have done well and it seems that we are on the right track. I would like to highlight some of the initiatives taken by the government in the promotion of tourism. I am hopeful that these steps will enhance the experience of Incredible India:

1. Launching B&B scheme to augment room capacity
2. Developing national highways
3. Aggressive marketing through the Incredible India campaign
4. Modernisation of Delhi and Mumbai airports

I am very upbeat about the growth of tourism in the country in the years to come. The year 2008-09 will be important for all as we expect room inventory to go up all across several segments with many hotels projects in the pipeline expected to be operational by next year. This new inventory will also stabilise rates. As a destination management company, we are doing our bit towards the development of tourism.

With regards to the government, yes they have realised the potential of tourism and have also tried to capitalise on the same. Since it is a subject that comes under the purview of the state, the role of the government becomes all the more important. State governments have also now become more proactive in their approach and are upgrading their tourist facilities in terms of infrastructure.

The future of travel and tourism could be as 'golden' for the industry as it appears to be for travellers. To capture the light of future growth and profitability, players involved need to adopt flexible operating models and have customer centricity as a core capability to achieve operational excellence.

I would like all the stakeholders to come together and have a cohesive approach towards the development of tourism rather than making a fragmented effort. We also have our responsibility towards the society and we at Le Passage to India recognise that its businesses have a direct and indirect impact on the communities in which it operates. We strongly believe that corporate social responsibility is one such effective tool that synergises the efforts of the corporate and the social sector agencies towards sustainable growth and the development of societal objectives at large.

The recent high growth rate of development has had an adverse effect on our natural resources and animals. Le Passage to India has joined hands with Wildlife SOS, a registered non-profit charity dedicated in conserving and protecting the environment and wildlife. India is a fast growing economy but at the same time, it also faces social challenges like poverty, corruption and illiteracy. Wildlife SOS organises rescue for animals in distress. It is running a special project called India Bear Rescue to save the Indian Sloth Bear from an age-old practice of qalandar - earning a living by using bears to give roadside acrobatic performances. As part of the corporate social responsibility, Le Passage to India continuously supports and contributes to the Bear Rescue Facility.

It is imperative that Indian companies are sensitive to corporate social responsibilities in the right perspective and undertake a variety of initiatives to enrich people's lives in civil society. For instance, we have been associated with Chintan Environmental Research and Action Group for the last few years. Their understanding and work on issues relating to waste collectors and recyclers of the city is unique and sets an example to be followed by others.

Our objective in associating with the organisation is to encourage and motivate the waste-picker parents to let their children attend educational sessions organised in their communities and get them enrolled into the mainstream educational system. This, we find, is a unique and an encouraging practice of contributing for all to follow.