‘Experience-driven travel may see more demand post Covid’

Even as the travel and tourism sector gradually returns to business after a series of Covid-induced lockdowns and other restrictions since March 2020, a revival could be expected by the next calendar year at the earliest, says B Ravi Pillai, Chairman of the RP Group, which is based in the Gulf Cooperation Council region. He points to persisting restrictions globally and safety concerns among travellers.

Pillai, an active investor in the tourism and hospitality sectors, said changes in customers’ preferences would lead to a corresponding change in the hospitality sector’s business model. “There is a scope for enhanced demand for experience-driven travel. We are well positioned to capitalise on it,” he said.

Like other players in the sector, the RP Group was also forced to reconsider investments during the initial days of the Covid outbreak and subsequent lockdown.

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“For a brief period of 2-3 months, when we were getting accustomed to the pandemic-driven lockdown, which created an environment of uncertainties, we were forced to go back to the boardroom and rethink our strategy. However, as opportunities started emerging, we have started evaluating these for possible new investments. I don’t think we will restrain ourselves from making new investments in the sector because of the pandemic that we otherwise would have executed irrespective of the current situation,” Pillai said, adding that projects to the tune of ₹500 crore were at various stages of evaluation and execution.

Meanwhile, the company is exploring opportunities in other sectors such as IT, and commercial and residential space. The RP Group, which is present in the retail business with malls in Kozhikode and Kollam in Kerala and Coimbatore in Tamil Nadu, is evaluating investment opportunities in this sector. “The closest outcome we could think of in the retail space is the development of RP Global Mall in Kozhikode,” he said.

With presence in West Asia, Korea and Australia, apart from India, the group says it is confident of doubling its revenue. Its business in India contributes 30-40 per cent of its turnover. The oil and gas sector is its biggest vertical in terms of turnover.

Pillai commended the central and state governments for their support to businesses in the current environment. “From moratorium on loan repayment for various infrastructure projects, pumping liquidity in the banking system to tax concessions, the central government has strived to provide new opportunities as well as a conducive environment for businesses across India,” he said.

Kerala Government has provided highest allocation to infrastructure and IT in the budget to create more local jobs as well as to incentivise consumption and accommodated to minimise taxes wherever possible to support businesses, he added.

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