Corporate Gypsy: OUTBOUND TOURISM FROM INDIA.-THE TIMES TRAVEL FAIR, 2010

TIMES TRAVEL FAIR 2010 AT MUMBAI

Jan 31st 2010

The healthy prospects of the outbound tourism market was very much in display at the Bandra Kurla grounds this week end. The Times Travel Fair which opened on the 29th of January and wound up on the 31st of January,garnered a healthy response from the public. Most of the big players from the travel industry were in attendance,with a slew of offers and incentives.

The WTO report on the Indian outbound market, the Nielsen Report and the Strategic Intelligence Centre at PATA,all agree that India is one of the fastest-growing outbound travel markets in the world. International tourism departures from India have grown from 3.7 million in 1997 to 9.8 million in 2007 and international tourism expenditures have increased from US$ 1.3 billion in 1997 to US$ 8.2 billion in 2008. On an average, Indians spend nearly US$ 1,789 per person per leisure trip. Not all of this is on travel.Shopping for branded goods accounts for a significant share of wallet and explains why Dubai, Thailand and Singapore are popular destinations.

Even as the world economy went through an upheaval, the Indian economy remained relatively stable and is now showing a healthy 7% growth in GDP.India’s increasingly affluent middle class already numbers 300 million and is growing rapidly. At the same time,its per capita income is increasing by around 5% a year, and its per capita expenditure is rising twice as fast.

There are nearly 23 million passport holders according to estimates and this number will grow significantly since demographics indicates that there is a strong skew towards the youth. Demand for outbound will also be driven by the need to travel abroad for education and for VFR. (visiting friends and relatives).

Travel agents like Thomas Cook , Kuoni , Raj Travels, Akbar Travels, Sachin Travels, Mercury Travels, web sites like makemytrip.com, aviation players like Kingfisher Airlines, tourism boards from Malaysia , Singapore, Dubai and Maldives, were all present with large pavilions at the Times Fair to participate and make the best of this opportunity. A week before the fair, there were full page advertisements in dailies, offering schemes and packages for the season, that hits the peak during the Indian summer holidays. The top management of the bigger players like Kuoni and sister concern, SOTC, as well as it main competitor Thomas Cook Holidays, were present to ensure that leads generated were converted. Many whom the writer spoke to, seemed to be happy with the business generated.

The FIFA World Cup to be held in South Africa this year seems to have generated lukewarm interest, though the travel industry avers that there is interest from the corporate segment and also from the retail trade in Kerala, Bengal and Goa where the ‘beautiful game’ is popular.

Ends
Vinod Natesan