For first time since 2002, India's underperforming tourism sector is in decline. Credit crunch, terrorism, poor infrastructure and overpricing lead to drop in foreign visitors, 487,000 visitors in January 2009, versus 591,000 year previous.
January, tourist foreign exchange earnings also drop to US$ 941 million from $US 1.38 billion 12 months ago.
Decline continues; Goa reports winter season figures - up to end of February 2009 - down 20% on 2008, as UK, Russian and Swedish package tourists stay away.
Meager pickings
A worrying trend considering the sectors 6% Indian GDP contribution and 53 million sector-reliant employees. Yet drill down and the real concern becomes more evident. India received just 5.37 million tourists in 2008 - placing it 42nd in World Tourism Organisation's 2008 global rankings - a meager return considering much smaller Ukraine (23 million visitors), Tunisia (6.8 million) and Croatia (9.3 million).
Heads in the sand
To the annoyance of Government, World Economic Forum placed India 62nd of 133 countries in its "Travel and Tourism Competitiveness Report, 2009".
Rather than feel hard done to, others feel India has to address fundamental issues - poor infrastructure, lack of hotel rooms, and high room rates - if it is to bounce back and improve. Vienna based tour operator, Klaus Rinner, recently stated that "totally unrealistic and unacceptable" hotel rates were deterring tourists and high prices were having more of an effect than threats of terrorism.
In support, Himmat Anand, managing director of Diethelm Travel says, "India is not giving value for money; there is an ostrich mentality amongst us when we say everything is alright".
State initiatives
With competition for the tourist Rupee increasing, new state level initiatives are implemented or planned. Tea plantation holidays are directed at UK holiday makers, Chandigarh further develops its 'City beautiful' initiative and Karmataka makes plans for Vegas style heli-tourism.
Incredible India
The 'Incredible India' campaign is working hard to increase the flow of foreign tourists. £3 million is being invested in digital marketing and city specific campaigns have launched in Beijing, Tokyo and Moscow. Tourism and Culture Minister, Ambika Soni is opening a series of tourist offices in key in-bound tourist markets.
India has great potential as a year-round destination, it offers an enviable choice for visitors of all kinds, culture, mountains, beaches, remoteness and urban action. Whether the industry maximises this potential remains to be seen.
Image source - www.railpage.com.au
At a time when global tourism is affected, and countries as well as regions have stepped up their activities in this category, India hasn’t stategicaly planned a global, country brand approach. I haven’t come across a campaign establishing the "why incredible India".
The obstacles need to be concertedly addressed and a positive brand experience needs to be developed, holistically, for the country to garner more numbers and $. With neighboring Singapore, Malaysia, HK & Japan, all on a drive, not to mention Australia, the pickings currently there may just become a trickle if room rates, and basic infrastructure issues are not tackled. Additionally, specific segment-wise strategic directions should be implemented. A few tourism offices in certain markets certainly wont result in increasing quality of service available or quantity of tourists.
Joy Abdullah, General Manager, The Next Big Thing, Malaysia