The Hindu Business Line : Aviation fuel prices, weak rupee impact outbound tourist traffic

Bangalore, Nov 24 The outbound tourist traffic, already clouded by the present economic crisis, has been hit hard by the fluctuating ATF prices, ever-weakening rupee and the zero commission stance adopted by some airlines.

“As the economy shifts towards a saving mode from splurge, a majority of the National Tourism Organisations (NTO) are monitoring the Indian arrivals, the changing travel patterns with a wait-and-watch approach as business volumes plummet,” says Mr Rajeev Nangia, Associate Director – Operations, TRAC Representations, a company engaged in NTO representation and tourism PR.

According to him, though it is too premature to ascertain the exact magnitude of the initial impact, most of the outbound destination will scrape through the current year. Countries such as Singapore, Malaysia and Mauritius have seen an increase in Indian tourist arrivals in the January-September period this year at 5.87 lakh (5.7 per cent increase), 4.14 lakh (31.2 per cent) and 34,386 (7.8 per cent) respectively.

Popular destinations

“The present economic crisis has its repercussion on the travel industry in general, but with regard to arrivals in Malaysia, it continues to see positive growth thus making India a more viable tourism source market in the present situation,” says Mr P. Manoharan, Director - India Market, Tourism Malaysia. The other popular destinations among Indians include Singapore, Thailand, Dubai, the Philippines and the Mauritius.

According to Ms Richa Goyal Sikri, Director, Group Business Development, STIC Travel Group (India representatives of SriLankan Holidays), tourist arrivals in Sri Lanka have noticed a growth of around 28-32 per cent till date compared to last year. “Some very good and ‘value-for-money’ offers were floated and the response has been great,” she says. However, the economic downturn seems to have caused a 10-15 per cent dip in the booking business from international sectors such as the US and Europe.

Price deals

Says Mr Nangia, “With regard to leisure and MICE traffic movement, for sure, the variables in terms of business volumes and arrivals will vest with destination pull in terms of price-deals to attract requisite numbers and focus on luxury quotient of HNIs (high networth individuals) with experiential product for high receipts”.

Tourism Malaysia has adopted a two-pronged approach — reaching out to HNIs with experiential packages offering luxury aspects of Malaysia from Rs 47,000, and short-break packages for three nights and four days from Rs 7,990, says Mr Manoharan of Tourism Malaysia. “The objective is to have ready custom offerings for varied traveller segments to sustain arrival growths and offers value-for-money options,” he adds.

For the Mauritius, “there isn’t any impact so far on the arrivals from India,” says Mr Kavi Ghei, Director, TRAC Representations. “We are currently monitoring the situation and are gearing up for the year-end holiday season, as we are set to host the Kreol Carnival in December,” he adds.

Singapore campaign

Likewise, Singapore Tourism Board has started its “A Sweet Christmas in Singapore” campaign for the festive season, with attractive ‘Kids Free’ offerings for children below 12 years. Indians are among the highest spenders in Singapore and are considered very active tourists, as they seek “more value in terms of sightseeing and shopping”, says Mr Kiran Bhandari, Area Director – Southern India, Sri Lanka and Maldives, Singapore Tourism Board. The ‘Kids Free’ campaign would help “families save a lot on airfare, accommodation and sightseeing expenses” and thus indulge in more shopping, he adds.

The overall holiday market is not as down as some may suggest, says Mr Karan Anand, Head – Relationship and Supplier Management, Cox and Kings India Ltd. Most bookings for this season are done in advance to utilise the discounts and offers given by travel companies, he explains. According to him, there have been no cancellations so far.

However, the actual test of sustenance would be required for the coming year… “we can expect lower outbound targets for 2009,” says Mr Nangia. Ms Sikri says that there are plans for aggressive campaigns and initiatives for new and emerging markets such as West Asia, South-East Asia, Muscat and China, “which we hope to be the new travel destinations for the coming year,” she adds.

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