The Hindu Business Line : Tourism industry upbeat on domestic, foreign travel

More Indians are travelling abroad, much more than inbound travellers. During 2003, the number of Indians going abroad was 5.3 million but this grew to 6.2 million in 2004 according to provisional estimates showing a growth of 15.2 per cent.

Chennai , June 24

THE travel and tourism industry in India is going through a boom period this summer. Mr Anil Bhandari, Managing Director, International Travel House Ltd, said that there has been a substantial growth both in domestic visits as well as international arrivals.

During 2004, India for the first time breached the three million mark and the number of tourists who came to this country stood at 3.37 million reflecting an increase of 23.5 per cent over 2003.

Foreign exchange earnings did better with Rs 21,828 crore, up by 32.9 per cent. He said that this momentum has continued during the first half of 2005.

Till May end, arrivals have increased to 1.52 million, a growth of 23.5 per cent over the corresponding period in 2004 and foreign exchange earnings touched Rs 10,571 crore, an increase of 26.7 per cent.

Mr Bhandari said that domestic tourism has continued to be upbeat. During 2004, domestic visits, according to provisional figures crossed the 360 million mark compared to the 2003 record of 309 million.

He pointed out that more Indians are travelling abroad also, much more than inbound travellers. During 2003, the number of Indians going abroad was 5.3 million but this grew to 6.2 million in 2004 according to provisional estimates showing a growth of 15.2 per cent.

For instance, the number of Indian visitors to Malaysia in April 2004 was 10,480; this went up by 47.5 per cent in the corresponding period in 2005 to 15,464.

Increasingly, people have been looking at the Net to plan their leisure travel for both international and domestic sectors. This trend is on the rise with growing Internet penetration (about 5 million) in the country. In India, most of the booking is still done through travel agents though the airlines are now ready with e-ticketing platforms.

The travel trade in India has understood the importance of the Net and now has comprehensive information on fares, packages and other travel related matter on their Web sites, said Mr Sylvester Thomas, Managing Director, Around the World Travel and Tours Pvt Ltd. The information on the Web helps anyone with access to an Internet connection see what is available in the market.

Another trend is that more families are travelling together. This is because family get-togethers are getting rarer as family members find it difficult to take time off to visit parents and siblings.

Mr Thomas said that family groups consisting of 30 and more, along with grandparents, from places such as Hyderabad, Bangalore and even interior Tamil Nadu have opted to travel overseas.

Short stays are another new travel trend. Executives employed in high pressure jobs, which do not allow them to take long vacations, are more likely to take short holidays, closer to their place of work. Sri Lanka, Singapore, Maldives are some such getaways, sources said.

According to a press release from the Sri Lanka Tourist Board, India topped the list of arrivals into Sri Lanka in April 2005 at 9,024 compared to the 5,784 in April last year.

The dynamics of the Indian travel scene has changed with the coming of the low-cost airlines. The low fares have changed the way people look at air travel. Air travel is no longer considered a luxury but a necessity.

Mr Ankur Bhatia, Managing Director, Amadeus India, said that the advent of low-cost carriers has created a new boom in the Indian travel scene offering more options for the Indian traveller, who now has access to better and cheaper air connectivity plus attractive package deals for new destinations.

Leisure traffic to India is yet to pick up in a big way. A Federation of Hotel and Restaurant Association survey shows that more than 50 per cent of the occupancy in hotels comes from corporate travellers. The average room rate (ARR) from corporate occupancy is higher than that of the leisure travellers.

India ranks 50th in the global growth ranking by the World Travel and Tourism Council, below Malaysia which is ranked third and China which is ranked 11th.

To fall in line with internationally benchmarked tourism models, India needs at least 90,000 more rooms (in the five star segment) and therefore an investment of Rs 80,000 crore. India also needs to increase inbound traffic from 3.3 million to at least 10 million in the next six to seven years, Mr Bhatia said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page