The Hindu Business Line : Ad magic

THE Indian travel industry is rejoicing. Foreign tourists are flocking to the country in large numbers. The year 2003 has been a turnaround year for the Indian travel and hospitality industry. Tourist inflows from January to August increased by 14.2 per cent as compared to last year, according to industry estimates.

The turnaround has also been justified by India attaining its highest ever country ranking in global tourism. It was ranked number 9 in the Conde Nast Traveller UK (Magazine's) annual readers' travel awards 2003. Travellers and tourists regard the magazine as a one-stop shop reference guide for travel and holiday-related decisions. The Readers' Travel Awards are an index of satisfaction with travel facilities and services around the world. Readers are asked to choose the best that the travel world has to offer — from hotels and spas to airlines and airports. They are then asked to rate their choices on several criteria, such as service and value for money.

According to Sarah Miller, Editor, Conde Nast Traveller Magazine, "India's result is very exciting and shows the country's increased popularity amongst the sophisticated travellers. It also reflects very positively on the individuals involved in promoting India as a premium tourist destination." While Indian bureaucrats, hoteliers, travel agents and airlines may all have contributed to the success of this industry, the marketing and branding exercise undertaken for the country in the recent past is emerging as the primary factor responsible for the boom.

Claims Amitabh Kant, Joint Secretary, Union Ministry of Tourism, "It is the ministry's Incredible India campaign which has been running since last September that has helped India be in the reckoning once again." Doubling its ad budget from Rs 10 crore last year to Rs 20 crore this year, Government spending to improve the image of India has helped give the industry impetus.

Says Kant, "We should be able to sustain these rankings as long as marketing and branding continue, combined with the improvements in infrastructure."

Adds Jahangir Katgara, President of Travel Agents' Association of India (TAAI) and Director, Travel Corporation of India (TCI), "Tourism is picking up due to the Tourism Ministry's various marketing initiatives in key markets. Additionally, the brand equity of Incredible India and the publicity campaign has stimulated demand."

Besides, the tourism development corporations have also got into the act of promoting their respective States through ad campaigns and rapid infrastructure development. "Previously there was a socialistic mindset and States had small budgets for promoting tourism, but now it has all changed," says Ashish Kumar Singh, Managing Director, Maharashtra Tourism Development Corporation (MTDC). MTDC's budget has jumped from Rs 12 crore last year to Rs 90 crore this year. The corporation claims that tourist traffic has grown by 28 per cent between 2002 and 2003 for the State.

Campaigns apart, there are other factors contributing to the boom. Says Katgara, "The initiatives taken by tour operators in introducing innovative circuits and hotel industry in holding their rates or raising them marginally have helped." He says that these include cruise ships once again including India in their ports of call due to stability in the Indian sub-continent and increase in international conferences being held in India. Charter flights to India are on the rise, with new charters coming in from Israel and Russia. "With the signing of a Memorandum of Understanding (MoU) between the Department of Tourism, Union Government and National Tourism Administration of the People's Republic of China in December 2002 whereby an `Approved Destination Status' was accorded to India and visa regulations relaxed for Chinese tourists, we expect a good inflow of Chinese business and tourist traffic as well," he adds.

Citing additional boost factors, Ashwini Kakkar, Chief Executive Officer & Managing Director, Thomas Cook (India) Ltd, says, "The Indian economy too is in on the upswing and there has been liberalisation of many travel-related regulations including that entitlement of Basic Travel Quota from a mere $500 to $2,000 to $10,000 now. Today, one can also get a loan for a holiday so it becomes comparable to a consumer item. There are also the various affordable deals from airlines and tourism departments of various countries attracting the consumer. Judging by the market trends, the tourism industry will grow stronger though one may see dips if unforeseen events such as September 11th and SARS plague the world."

Basically the travel industry is in a new phase. In the '90s, the number of inbound and outbound tourists remained steady at 1.8 million. In the last four years, the figure for inbound tourism rose to 2.6 million. However, the number for outbound tourism, during this same period, shot up to four million. The tourism industry did face a downtrend due to September 11th, followed by the crisis in the airline industry, and of course, the more recent war and SARS. But the industry is resilient and recovered from these setbacks. This seems to be especially true in India and the Asian region, where the travel industry is coming into its own, according to Kakkar.

Recent initiatives taken by the Indian Government include a proposal to set up a Rs 500-crore Tourism Development Fund which has to be approved by the Cabinet. The fund, which seeks to boost tourism by focusing on infrastructure creation, was announced on Independence Day this year.

Finally, it's all about marketing and branding the country, which seem to have worked in bringing the tourists back. As Kant says, "The `Incredible India' positioning and branding has focused on what makes India unique and unmatched in the tourism world. This has brought back the discerning traveller to India."

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