e-Visa scheme: A low hanging fruit
With its India operations established in New Delhi in 1985, Abercrombie & Kent is betting big on luxury inbound and MICE segment. Vikram Madhok talks to about the challenges and strategies this year in his company and the industry in general…
e- visa in phases
I would call the expected introduction of electronic visa facility in India a low hanging fruit. This will give a major boost to inbound tourism in India. I see a good 25-35 per cent growth year-on-year in tourist arrivals to India. However, to implement this scheme on such a large scale will be a herculean task for the government. So to implement this realistically as against offering it in one shot, there should be a gradual opening up of the e-visa facility. We have given a suggestion to the Ministry that the scheme should be implemented in three phases over three months in different countries and continents, else it could lead to long queues and a lot of confusion.
Rationalising tax regime
The system of levying Luxury Tax on the published rate in hotels is a big impediment to the growth of the industry. The taxes on published rates do not make sense while actual rates are much lower. Also, we need tourism-friendly policies to develop Cruise Tourism products in the country. The facilities at our ports are not welcoming at all. Impediments exist in terms of infrastructure, connectivity, taxation, etc., and these issues need to be addressed on an urgent basis to facilitate tourism in India.
Growing business
We see maximum growth from our inbound segment. The North American and Latin American business is one of our pillars. These are responding favourably and thus, inbound business has taken centrestage today for the company. However, our outbound division is also catering to the discerning high-end luxury Indian holiday travellers and MICE segment is growing well. We are witnessing a consistent growth in our business. This year, we are expecting a modest growth. We had set out a benchmark of 17 per cent yearon-year growth. But we will be happy if we can achieve a 10 per cent increase, given that a lot of our secondary and tertiary markets are recovering in terms of economy even now.