` Agents’ hopes rise as falls
The fall in the value of the Indian Rupee may have hit the economy hard, but it gave reason to cheer for tour operators and travel agents as it brought more revenue. With this, India has become a lucrative market.
The
depreciating value of the rupee has made India a lucrative market for tourism, among foreigners and boosted the inbound traffic of the country. Foreign Tourist Arrivals (FTAs) in India, during 2011 were 6.29 million with a growth of 8.9 per cent, as compared to the FTAs of 5.78 million with a growth of 11.8 per cent during the year 2010 over 2009. The growth rate of 8.9 per cent in 2011 for India is better than UNWTO’s projected growth rate of 4-5 per cent for the world in 2011 and 7-9 per cent for Asia and the Pacific. In the first quarter of 2012, India has already received 3.24 million tourists, making a growth of 7.4 per cent over the same period in 2011. Foreign Exchange Earnings (FEE) from tourism in rupees terms during January-July 2012 were
52,149 crore with a growth of 23.3 per cent, as compared to the FEE of 42,279 crore with a growth of 14.8 per cent during January-July 2011, over the corresponding period of 2010. says Lally Mathews, Hony. Secretary, IATO.
The tour operators and agencies in India are cashing in on this renewed interest in India as a destination. Destinations like Rajasthan, Kerala, Goa and Ladakh are among the top searched
The travel industry needs to invest in business models that offer cost-effective scalability
places to visit in India. Spas, adventure, wildlife tourism in India are some of the indirect beneficiaries.
“Inbound tourists come in for a range of experiences to India. Many of them come to explore historical places, visit wellness centres and also opt for adventure holidays. Most of them coming to India prefer the mid-market to luxury as we do not have adequate options for budget travel. India being a long-haul destination, travelling to the country, is not cheap in itself,” says Arup Sen, Director, Special Projects, Cox & Kings.
“India is fast emerging as a Luxury Tourism destination. Over the years, India has witnessed emergence of niche holidays like adventure sports including river rafting, scuba diving and rock climbing; spa & wellness retreats at exotic locales of Kerala and Rishikesh and wildlife vacations at Jim Corbett Park and Ranthambore Sanctuary, amongst others. India, as a confluence of different religions, also attracts tourists to India for Pilgrim Tourism,” adds Daniel D’Souza, Head, Sales-B2C, SOTC.
The rupee slide has also influenced the mind of the Indian traveller. In spite of being challenged with a sharp rise in airfares, accommodation and fuel prices in India, the number of Indians travelling on domestic routes has gone up significantly. Travel has become a necessity to destress and people do not mind, paying additional rupee to enjoy a good vacation. During 2011, the number of domestic tourist visits to the States/ UTs was 851 million as compared to 748 million in 2010 and 669 million in 2009. The figures for 2012 are expected to be higher.
“Domestic Tourism received a fillip this year with
the rupee depreciation. Kashmir and the North-East India are the new destinations that have become popular this year. Kerala and Goa are also seeing more tourists, this monsoon season, due to the bargain deals. MakeMyTrip’s charter holidays to Ladakh and Bhutan have also opened up to more Indian tourists this year. Among the beach destinations, we have seen enquiries and bookings grow for the Andamans andLakshwadweep Islands,” says Rajesh Magow, Co- Founder & Chief Financial and Operating Officer, MakeMyTrip.
The attractive ‘Incredible India’ campaign has no doubt helped in luring many more foreigners while the brand ‘India’ also received a huge impetus. The industry feels that tourism during harsh economic times can be generated profitably through innovative pro- motions. Magow adds, “Travel being a discretionary expenditure cannot remain de-linked to the economy. Therefore, the industry needs to invest in business models and partnerships that offer cost-effective scalability.” With the downfall in the value of rupee and the global economic meltdown, this can be the golden period for Indian tourism as far as inbound and domestic travel is concerned.