The Hindu Business Line : EIH sees topline growth of 40 pc

THE Chairman & Chief Executive of EIH Ltd, Mr P.R.S. Oberoi, has hailed the proposed privatisation of New Delhi and Mumbai airports as a positive step, stating thatthe process must be completed expeditiously.

Other important airports in the country too needed the urgent attention of the Union Ministry of Civil Aviation, he said.

Reaffirming this viewpoint, Mr S.S. Mukherjee, Managing Director of EIH, told Business Line here that if the airports modernisation programme takes off in right earnest, and picks up speed, the travel and tourism sector is bound to register a quantum job in revenue earnings in the next three years or so.

Asked what kind of growth was expected for EIH in the current fiscal, he said, "If all goes well, we expect a topline growth of 35-40 per cent". He said the co-branding tie-up with Hilton International had produced the desired results.

"The re-branding exercise of the `Vilas' hotels as `Oberoi' has strengthened the Oberoi brand."

In 2004-05, EIH's total revenue was Rs 625 crore, recording an increase of nearly 24 per cent over the previous year (Rs 504.5 crore).

Reviewing the performance of the company in the backdrop of the growing travel and tourism industry in EIH's annual report, Mr Oberoi called for a more liberal visa regime to benefit the travel and tourism industry, acknowledged as one of the biggest employment generators. He said India was a unique destination and deserved easy access for international travellers. He observed, "many of our neighbours have seen an exponential growth in tourism and foreign investment after they simplified their visa processes".

According to him, it is a welcome sign that the constraints of air accessibility are being removed, as "we now have more international flights than ever before, which will not only encourage tourism but also have a positive effect on foreign investment".

In 2005, he pointed out, the travel and tourism demand has shown a growth of nearly 11 per cent, and "we expect a compounded annual growth of over 8 per cent in next 10 years". The industry represents over 24 million jobs and is expected to generate 25 million additional jobs in the next 10 years.

On the effectiveness of the "Incredible India" campaign in positioning the country as an exciting destination, Mr Oberoi said "doubtless, brand promotion plays a crucial role in influencing consumer preferences, but we must not be complacent as there are many other competing destinations". Such a campaign, he felt, required more funding, not only from Government, but also from the private sector.

Pointing out that EIH's policy of investing in new hotels and continuous upgrading would stand the company in good stead, Mr Oberoi says "our hotels have become symbols of refined luxury and are recognised as being amongst the best in the world".

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