TravTalk - India

Inbound needs a shot in the arm

The rate of inbound growth, which has slowed down in the months of December 2012 and January 2013, needs attention and stimulator­y measures including release of new promotiona­l campaign and other policy initiative­s.

- VIVEK SETHI

The recent foreign tourist arrivals (FTAs) statistics released by the Ministry of Tourism has made some stakeholde­rs concerned in terms of need of initiating measures to stimulate demand. Many others term the slow pace of growth as an aberration as Incredible India continues to march on a high growth trajectory.

“The rate of inbound growth has slowed down in Dec. and Jan. which needs attention. We should initiate measures to stimulate demand for Incredible India,”opined Arjun Sharma, Managing Director, LPTI and TUI India at the PATA-India Chapter interactiv­e session with The Ministry of Tourism held in February.

In fact, the statistics point out that FTAs during January 2013 were 6.99 lakh as compared to FTAs of 6.81 lakh during January 2012 and 6.23 lakh in January 2011. There has been a growth of 2.6 per cent in January 2013 over January 2012 as compared to a growth of 9.4 per cent registered in January 2012 over January 2011. Similarly,

We should initiate measures to stimulate demand for Incredible India

December 2012 and January 2013. The quarter of the present fiscal year had been good. In fact, all leading companies in the luxury inbound space had set aggressive targets in subsequent months and whole of 2013.”

“The growth in leisure inbound luxury segment is backed by the resurgence in the global economy led by the USA and UK. However, the

We had good business in December 2012 and January 2013

“Incredible India had gone quite silent in the internatio­nal sphere. The new marketing campaign will get the excitement going again,” added Madhok.

All said and done, there is an urgent need to overhaul the visa regime. “The campaign is a marketing activity which is important but we need to convert interest into business. The clients are booking late. Visa turnaround time would help a great deal in getting back volume. Countries like UAE and Thailand as well as Sri Lanka

The slowdown has, largely, been a result of the global economic slowdown

operators should be exempted from service tax requiremen­t for a minimum of 3 years, as currently, Indian DMCs are at a disadvanta­ge and losing business and foreign exchange earnings to SAARC countries like Nepal, Sri Lanka, Bhutan, etc,” said Sodhi.

“Lately, there has been an increase in demand for one- of-a-kind travel experience­s. Another emerging trend is that of product and service sampling- as travellers need not go with the full array of services and can

Inbound tour operators should be exempted from service tax for a minimum of 3 years

 ?? Parvez Dewan ?? Secretary, Ministry of Tourism
Parvez Dewan Secretary, Ministry of Tourism
 ?? Surinder Singh Sodhi ?? Senior Vice President - Leisure Travel (Inbound) Thomas Cook India
Surinder Singh Sodhi Senior Vice President - Leisure Travel (Inbound) Thomas Cook India
 ?? Dipak Deva ?? CEO, Destinatio­n Management India & South Asia Kuoni Destinatio­n Management
Dipak Deva CEO, Destinatio­n Management India & South Asia Kuoni Destinatio­n Management
 ?? Vikram Madhok ?? Managing Director Abercrombi­e & Kent India
Vikram Madhok Managing Director Abercrombi­e & Kent India
 ?? Arjun Sharma ?? Managing Director LPTI and TUI India
Arjun Sharma Managing Director LPTI and TUI India

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