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Asian Hotels West which owns the JW Marriott New Delhi Aerocity and Hyatt Regency Mumbai and developed properties from mid-scale to high end is aiming to acquire small boutique hotels. “Our expansion plan is limited due to the high cost of funds within the country but are open to small boutique hotels’ acquisitions,” Sandeep Gupta, Executive Director, Asian Hotels West, said. Gupta is of the opinion that the financial health of the India hotel industry is still strong. “The entry of PE players and large Real estate funds will make assets more Fund owned and less individual run,” he said citing the example of the Leela Hotels.
Talking about the performance of the industry, he said that there is definitely a slowdown in the economy. “The next four to five quarters need to be watched and see what’s the latest financial crisis brewing,” Gupta said. He revealed that Hyatt Regency Mumbai is stable in its market at above 70 per cent occupancy and JW Marriott is a growth asset looking at above 75 per cent occupancy year-round. Also, the contribution of F&B and MICE in overall revenue of these hotels stands at 25 to 30 per cent and 40 to 45 per cent respectively. “F&B is a great driver now for luxury hotels and top Chefs of the world like Heston Blumenthal want to come in too. However we need to have an open mind about other cultural preferences as well in cuisine. We have just one restaurant in the top 100 in the world,” he opined. Both these hotels get 35 to 40 per cent business from domestic market and remaining from the oversea markets.
Talking about the challenges, he said that disruptors like AirBnB and OYO have started making an impact, and general consolidation is also happening with large brand companies. “The bottom end of the market is being disrupted by OYO and Airbnb will first affect the leisure segment, and then the corporate travel segment,” he added.
Gupta said that Delhi Aerocity is a classic example of PPP working well with hotels, restaurants, large corporate offices and retail along with the airport hub helping the growth of the entire destination. Speaking on the growth propect of Indian hotel and tourism industry, Gupta said that it needs to grow at least 20-30 per cent annually to make it in the top ten destinations. “Hopefully, as infrastructure of air rail and road networks improves so will tourism. India needs to project itself as a “Clean and safe” destination first,” he said.
Shifting its strategy to the tune of changing market dynamics in order to maintain the growth momentum in the India market, Brand USA, the tourism promotion agency of the USA, has decided to replace ‘India Sales Mission’ to ‘Travel Week India’. India is the second country to host Brand USA Travel Week after Europe.
“We just completed the Travel Week Europe in the beginning of September. It is a new way of doing business in Europe. It is like bringing buyers from all over Europe and USA’s destinations & organizations and conduct business meetings and seminars about the market. Travel Week India will be organized almost on the similar lines in New Delhi. India is the second market for Travel Week programme. It will be a 5 day programme from October 5-9, 2020 focused on educating Indian travel through augmented content,” Jackie Ennis, Senior Director, Global Trade Development for Brand USA, told on the sidelines of the 8th India Travel Mission 2019. Travel Week Europe attracted 97 US exhibitors and 180 ‘pre-qualified’ buyers from more than 20 European countries.
She expects participation 60 companies and organizations in the 1st India Travel Week. The objective is to have a deeper understanding of the demands and prevailing trends in the India market to the US suppliers, she said adding that the Travel Week is all about providing a forum that is the best for the US and offers the most effective stage possible for selling the US. While India Travel Mission was a multi-city event, the Travel Week India will be hosted in New Delhi and attended by buyers from pan India.
Talking about the performance of the India market, Ennis said the numbers from India has more than doubled in the last seven years. “In 2018, USA received 1.4 million Indian travelllers, reflecting a growth of 7.2 per cent over 2017. With this, India ranked at 10th position in terms of source market,” she said that Brand USA targets 22 countries within its area. “However, India is at number 5 position when it comes to visitors spend. The spend by Indian visitors was US$8.1 billion 2012 that jumped to US$15.8 billion in 2018,” she informed.
She said that Brand USA is again going to witness a growth in arrivals from India. “In July this year, Indian arrivals went up by 7 per cent despite some challenges. Our goal is to welcome 1.9 million Indian visitors by 2023. However, it depends on connectivity. We are hopeful to have more direct non-stop flights as we see the potential in the market,” Ennis opined.
Replying to a question over only 35 per cent of the people taking professional’s advise and remaining depends on other channels, she emphasised that trade is equally important. “All destinations look to the trade as this is the way to focus resources. We can’t possibly go to all and promote the destination. The reality is that we have to be sensible in terms of touching the every level of trade whether it is product, retail and sells. We need to keep on evolving in our strategy by acknowledging the trends in the trade. So, we have to work with OTAs. Today, with digital platforms, we have the opportunity to marry travel trade with consumers. It is very important to work with trade,” she opined.
Brand USA, established by the Travel Promotion Act of 2010 to promote the country as a travel destination, is seeking reauthorisation as the current authorization lapses in September 2020. “Brand USA has to reauthorize the Brand USA programme in 2020. When TPA was signed in 2010 and renewed in 2014, we were authorised for five years each time. We are hopeful of getting reauthorization for another seven years. All segments of the industry are supporting the continuation of Brand USA,” she said.
West Bengal Tourism is now focused to reveal the untapped tourism potential of the state to the travel and tourism market. The state recently hosted the 35th Annual Convention of the Indian Association of Tour operators (IATO) in Kolkata. The city has changed remarkably in the last 10 years and we want to showcase the new face of Kolkata as a hub city and the tourism potential of the state to the India travel trade, Atri Bhattacharya, Principal Secretary (Tourism), Government of West Bengal said on the sideline of the IATO luncheon meeting in New Delhi last month.
Talking to media about the tourism potential of the state, Bhattacharya said that the state offers number of tourism circuits. “We are now going to aggressively promote heritage tourism with private parties because I believe that the Government should not extend its involvement in investment in business of tourism. There is a very nice circuit in the south western part of the state where one can have wilderness and adventure tourism with rivers, mountains and forests. We also have a great circuit in Dooars. We also have opportunities for business and recreational trips in the entire stretch from Kolkata to Durgapur to Asansol,” he said and announced that the State Tourism Department is planning to have a new slogan: “Ocean to the Sky”. “We may not necessarily change our tagline but we want to promote the diversity of the state,” he said
Replying to a question over promoting cultural tourism, Bhattacharya said the state has planned a series of festivals. “We have Durga Puja in October, followed by Kali Puja. Then, we have Kolkata International Film Festival in November which is growing in scale. In December, we will have Christmas Carnival in Kolkata. In January, we have Sangeet Mela,” he said and informed that the state is looking to organize River Festival in January. “We have signed a MoU with British Council and British Government for doing a River Festival in January. We would like to do it not only in Kolkata but at other two venues as well,” he revealed. Apart from these, the state tourism department is also focused on promoting the state’s cuisines in a big way, he said.
Talking about cruise tourism, he said that cruise tourism is growing from the last 5-6 years. “We have 4 vessels and we are taking two more. We have two houseboat type vessels which can be used for meetings and we are getting two more to put up in other water bodies like Muktmanipur and Chandan Nagar,” he informed.
J K Mohanty, CMD, Swosti Group and Chairman, Hotel & Restaurant Association of Odisha & IATO Eastern Region, speaks about Odisha’s hotel industry and his Group as well.
The overall scenario of the hotel industry has improved a lot during the recent years. Various attractive campaigns of Odisha Tourism in the National TV Channels as well as tourism roadshows in domestic and international market have been very helpful in branding Odisha’s rich tourism potential and increasing tourist arrivals to our state. Excerpts from the interview:
How would you explain the latest trends in Odisha’s hotel industry?
Hotel industry in Odisha is on the rising trend. There is ample investment opportunity in tourism sector and our government is making all efforts to attract investment in tourism sector by creating land bank and engaging key state-based hoteliers to tap the franchise business model with flagship brands like Hilton Group, Sheraton Hotels and Resorts, Raddison Hotels, Taj Group and Starwood.
Large hotel brands such as Taj Hotels, Hyatt Hotels, ITC Hotels and Crown Plaza have lined up plans for putting up properties in the state. Collaboration with the hospitality brands of repute could help showcase Odisha as a global tourism destination.
What unique challenges this industry is facing and what are the possible solutions according to you?
One of the biggest challenges faced by the hotel industry in the Odisha is lack of proper infrastructure in every tourist places of the state. The state has several places for tourist’s attraction, in the form of ancient monuments; beaches; religious places; hot springs; forest and wildlife; etc. But due to shortage of good quality accommodation tourists visiting these places are finding difficult for their stay. As per current demand-supply scenario, Odisha needs a minimum of additional 5,000 good quality star category rooms across the state, particularly in the key tourist destinations of Odisha to attract more high-end foreign as well as domestic tourists to the state.
With growing air connectivity, how do you see tourism scenario unfolding for Odisha?
Direct flight connectivity to various international destinations will definitely go a long way in attracting international tourists to Odisha . We definitely need more direct flights between Bhubaneswar Dubai and one European Connection.
What is your expansion plan?
Swosti Group currently operates 4 properties namely Swosti Premium Bhubaneswar, Swosti Grand Bhubaneswar, Gopalpur Palm Resort, Gopalpur-on-Sea and Swosti Chilika Resort. The Group is coming up soon with two beach resort projects, one at Gopalpur on Sea and another in Puri. We already have land at Puri and acquired a patch of land at Gopalpur on Sea.
How is the response from the market for Swosti Chilka Resort?
Within a short span of time, Swosti Chilika Resort has already made name as one of the best resorts in India. It has been widely acclaimed across the globe and has become a major tourist destination of the state. VVIPs from different places, domestic and foreign tourists who have visited the property have highly appreciated the resort and its top class hospitality.
Jyoti Prakash Panigrahi, Tourism Minister of Odisha, talks about the plan of the government to establish Odisha as a better tourism destination
As the current tourism policy is meeting its time period, Odisha Tourism has started the process to formulate a New Tourism Policy. Excerpts from the interview:
What approach Odisha Tourism is adopting to bring the state at the forefront of tourism?
We have adopted multi-pronged approach. The approach starts from policy changes which is going to happen in 2020, changes in Government’s plans and programs, the chief Minister’s charter to take Odisha at the newer height in the tourism by improving the performance of the Department of Tourism like other performing Departments in the government. We are looking at new projects, new investments, aggressive marketing and other fields.
Also, the Centre recently announced 17 iconic tourism sites and Odisha was not included. We all had to take up this very seriously because Konark is one of the UNESCO heritage sites. Now Union Tourism Minister has declared that one of the sites of Odisha will be included in the iconic sites list.
Our Chief Minister has also a written to the Union Tourism Minister. I met the Union Tourism Minister during State Tourism Ministers Conference. It was an error of omission. Most likely, Konark will be included in the list of the iconic sites of the Government of India.
Are you coming out with a New Tourism Policy?
It is not a new policy. The current policy is going to complete it term. The draft policy should be ready by October and the new policy will be in place by January 2020.
What new elements will be incorporated in the new policy?
We are looking at the elements of the different kinds of tourism. We are clearly focused to position Odisha as a good tourism destination. We are developing circuits for religious, Buddhist, coastal etc. We have decided to develop 9 circuits. The idea is to offer all kind of tourism to visitors to the state.
How about air connectivity?
We are coordinating with the Civil Aviation Authorities. We are in talks with AirAsia and they are also interested.
What sort of increase in Tourism Budget is in place?
There is a marginal increase. However, we are going to get more funds in the Supplementary Budget in December and the 2020 Budget will have more funds as it will the year of tourism.
Odisha is majorly welcoming domestic tourists. Are you looking at tapping the potential of South East Asian countries for Buddhist tourism?
We are looking at all markets. We are going for international promotions through roadshows and travel marts starting from September to February. The plan is already in the place. We are going to 12 international destinations across the world.
In a recent meeting of state tourism ministers in New Delhi organized by the Ministry of Tourism (MoT), Union Tourism Minister Prahlad Singh Patel rightly said that India’s Tourism cannot meet its set target without the active participation, cooperation and support from the states. As Tourism is in the concurrent list of the Constitution, the Centre does not have much say in the state’s matter. The Union Tourism Ministry has already been supporting states through marketing support as well as financial support to develop and strengthen tourism sector of the state.
Going by the historical trends of state’s performance on the tourism matters, we can easily say that tourism is not in the priority list of majority of states. Kerala is exception here. Few more states like Madhya Pradesh, Goa and Rajasthan are slightly more focused than others.
We also noticed that many states do not have a rational tourism policy. The fundamentals of the most of the tourism policy are the same while states need an exclusive and specific policy. And, even they have good policy; the implementation mechanism is too weak. Like, most of the states have given emphasis on Public Private Partnership model to invite investment in tourism sector. Result on the ground states that only few states have succeeded in getting private investments that too just to an extent. We have a successful Kerala Model of tourism but states are not eager to adopt this. There is a total lack of will power among states for tourism.
The fund released by the Ministry of Tourism under PRASHAD and Swadesh schemes to develop tourism infrastructure has not been utilized. The fund utilization by many states stands at 20% -30%. This itself says about the importance given to tourism by states. One of the reasons is that tourism does not matter for most of the states. Even they know that tourism can be an important growth engine for the state’s economy, states are not according much importance to tourism. Most of states do not have a clear vision for tourism. Some of the states do not even wish to have.
So, what should be the way forward? As Patel said that there is a need for collective effort to position India as a perfect tourism destination in the global market. He urged all Tourism Ministers to share their issues related to tourism development. We, at T3, believe that its high time states should join hands with the Centre and work collectivity to reap the benefit of tourism. Without the support of states, the Ministry of Tourism cannot do much even they are trying give a due place to tourism in the India’s growth story.
The skies are getting darker as the economic downturn is making people cautious when it comes to travel. According to the Ministry of Civil Aviation data, about 82.56 million passengers travelled on domestic routes in January to July 2019 as against 80.04 million passengers a year earlier. This shows that there is a slump in the travel industry.
Second, the results of travel companies in the first quarter (April-June 2019), indicated that the growth in travel is in the higher single digits. The commentary that we hear from people in the industry is that there is a slowdown and this is getting even more obvious with each passing day. Third, the Rupee continues to weaken against major currencies, though a global phenomena but this is not a good sign for the Indian traveler. Fourth, the recent economic data that has been splashed across media indicates the beginning of a slowdown and we have to brace for it.
While the signs are not good, we need to brace for it and arrive at solutions.
The nascent Indian outbound travel industry, which is not more than 30 years old, has experienced such shocks in the past. We have come out of such cycles, more fitter with the support of all the stakeholders contributing to this turnaround so therein lies the opportunity as well.
So, what are the opportunities for the travel industry? First, short-haul travel will be the new flavor and this should be lapped up by the closer destinations such as Singapore, Malaysia, Macau, Dubai, Thailand, Vietnam and Sri Lanka amongst others. These destinations have products that attract the Indian travelers with a mix of nature and First World attractions. Second, they are well connected by air from the metros and mini-metros. This provides the traveler the luxury of travelling on a budget but and a value for money holiday.
However, this is not all gloom and doom for the long-haul markets. The destinations that come up with innovative ideas and path breaking marketing initiatives will stand to gain in the marketplace. This is the time for tour operators to devise packages that attract the mass market effectively.
One of the issues that confront long-haul markets is the lack of adequate air seat capacity out of India, and the government should address this concern as the demise of Jet Airways and the dwindling fortunes of Air India have once again created uncertainty in the travel industry. The earlier this is sorted out the better it will be.
Finally, this is one big challenge that the outbound industry will have to factor in when charting out plans for the coming season and 2020. Hope by that time, some of the clouds would have cleared and we recover quickly.
Ludo Verheggen, Director of Global Air Content Adoption Strategy, Amadeus Travel, shares his perspective on NDC.
New Distribution Capability (NDC) is IATA’s new data standard for XML-based data communications, which will give airlines the ability to distribute their content through third parties. Since NDC is based on XML technology, it will allow airlines to offer descriptions, more flexibility in terms of offers to travel agency chain.
How is the pace of adoption of NDC by industry?
As NDC is technology change, it will take time. Over the last 18 months, we have seen that many more complexities come into play. We have seen that NDC standard has been maturing quite a bit but we are not fully there. Until 12-18 months ago, most of the NDC API stats only cover the first part of the travel agencies need i.e shop and book. But, it did not cover yet the post booking functionalities that are absolutely essential for travel agencies. Hence, it makes it very difficult for travel agencies to start using this new standard. Now, over the last 12 months, we have to realise that NDC needs to go well beyond what was envisaged and there is a need to start putting the functionalities in place in order to be able to work well with NDC booking.
Currently, the foundation of NDC is being laid in the industry so that travel agencies can start working with NDC content and can start doing some fresh bookings but the whole servicing including booking part needs to mature much more in order for travel agencies to be able to work with the NDC content in the same way that they can work today on the GDS.
Ultimately, NDC needs to bring benefits to all of us in terms of new contents and new types of offers. This is being currently put in place. IATA has put two new certification levels to address the topic of servicing i.e post booking functionalities. During 2019, we will start seeing the airlines are taking basic servicing through NDC and in 2020 we can see that airlines can handle the volumes and they can meet the need of the response time to make all of these contents available.
The 2020 Leader board initiative of IATA is done together with 21 airlines. There objective is to reach 20 per cent of booking by travel agencies to be based on the NDC protocol.
Given the current scenario where only 20 per cent airlines will be on NDC platform by 2020, how do you see the NDC gaining momentum over the next 2-3 years?
2018 was the year of building our NDC-enabled solutions and 2019 is the year for deployment of as we are open for business through our platform. We see 2020 as a year where there will be more convergence of the servicing. There will be further optimization of service. One of the challenges today we have is that servicing that has been implemented through NDC platform by various airlines is quite different from one to other. It also makes difficult for agencies to adopt it as there are different flows and different process and it also makes us difficult for us as aggregator of the content to have one flow.
One thing that GDSs have proved very strongly over the last 40 years is the fact that we are harmonizing all of the airline contents in one way and we allow with the same transaction to book, change, refund etcetra. By 2021, we should start seeing significant volumes coming through NDC as the industry should have reached to a mature level of the NDC standard not only for shopping but also for servicing part. Then it will gradually further take off. Even though we are convinced that NDC will start picking up soon, it will still go very gradual the majority of the airlines will still be distributing all of their contents through the traditional channels based on the traditional protocol.
How Amadeus is strengthening NDC program?
Amadeus has been advocating a lot that the industry needs to maintain the same level of performance. Amadeus is already Level 4 certified as an IT provider. This is a clear testament that we indeed are very much focused on our servicing part. 2018 was the year of building our NDC enabled solutions, 2019 we see as year of deployment through Amadeus Travel Platform. We have been live with NDC since November last year with our pilot customer in Europe. Our solutions are robust and scalable enough. So, we are currently starting to roll out our NDC solutions for travel agencies in the market and we expect that after summer, we will start making our new NDC enabled solutions to also available to the travel agencies in India. So, travel agencies those are using today API for flight content can start using our new NDC enabled web service for bookings and servicing customers. We will be enabling NDC content through same tools. This means that travel agencies around the world can start working in the same environment as they have been working today with NDC content.
There are already so many APIs available in the market. Does not it making the overall system more complex as same contents are available at different platforms and interfaces?
It is right. It is very fare to say that the content landscape has become much more complex over the last years with new players like low cost carriers coming in and growing globally. These carriers are already making content available through their XML based APIs. This is a clear change that we have been seeing since several years. We see that content from the same carrier is available through traditional and NDC protocol. So, we see more complexities to the picture. We also see it as our job to simplify again for travel agencies. It is very difficult for travel agencies to be able to support all these different APIs and Connections. Travel agencies are not technology companies; they are very good at servicing of customers and making sure that they recommends the best offer and service once the booking has been made.
We have been in the industry since last 30 years and we have the investment capacity to bring all of these together again. And, our strategy is all around over the Amadeus Travel Platform. Our Travel Platform is the evolution of our global distribution system. So, we are a GDS with more than 100 thousands travel agencies connected worldwide and more than 400 airlines distributing their content. We have been enhancing our GDS to make it much more scalable than what it used to be and especially flexible. The flexibility comes from the fact that our distribution system is now fully based on open systems. We are the first GDS to have fully migrated out of ‘The Main Frames (TPF)’ into an infrastructure that is fully-based on open systems which allows to bring our application systems to the cloud and also allows us to have much more flexibility that we used to have. This new flexibility is allowing us to also be able to integrate much more different content from the technology point of view.
What NDC brings to the industry?
The most important thing with NDC is that it can source the content from the different source in a very easy and seamless way. This means that we can source the content through existing protocol from airlines and at the same time source through NDC and any other APIs that are doing low cost carriers. Then by brining all of the content together again from all different technology sources into the Amadeus Travel Platform what we can offer travel agencies worldwide is that by accessing one platform still, they will have access all the different content types and their sources. They will have automatically access to all those different APIs that we connect in the background by using our connect platform.
Airlines are offering most cost effective tickets. Is this a situation where airline is directly competing with GDSs that have been supporting them on distribution front since last 40 years?
Currently, everyone is investing heavily in NDC and all of us still need to see the return on investment. Airlines are developing their NDC platform. As Amadeus, we are the leading IT provider to airline’s NDC systems. Many airlines are and will be using our technology, our NDC system. Airlines are investing, GDSs are investing. GDS is even today a very efficient and cost efficient distribution channel for any airline.
The main reason for airlines doing NDC is because how can we make the pie bigger. All players will be benefitted if we manage to generate more revenue. Airlines, intermediaries and agencies will benefit from this as it allows them to make more personalized offers, bundled offers. This needs to be focused because if the focus is on cost only, this is not going bring the scale. If we want NDC to fly, it needs to bring benefits to all of us.
So, all players such as intermediaries, agencies, NDC will remain in the distribution chain?
GDSs have been investing a lot in ancillary services. We are also investing heavily in branded fares that allow airlines to up sell their offers inside the agency community. So, we already came quite a long and we still can optimize much more. There is a merit in NDC. If we want to make airlines offering a digital retaining experience, there is a need for technology to evolve. It needs to happen at right pace.
Airlines have been arguing that NDC is brining transparency, personalization and e-commerce experiences. What is your take on this?
It will be unfair to say that GDSs have not evolved over time. Ancillary services and fare family is available. Multimedia pictures are also available. We keep investing in making the visual experience more compelling. We have been heavily investing in these. One of the main differences between when it comes to personalization that works today and will work with NDC is that in today’s GDS set up when a travel agency does a search, the offers that are being provided to travel agency are the combination that a GDS has put together. We act as a buffer between the travel agencies and airlines and we process all options and combinations available to them and they can choose from there. With NDC, there will be a significant change because with NDC all offers are made available at airline’s site. We, as an intermediary, will make these offers to travel agencies.
Airlines can decide to make a very special offer to a particular travel agency. So, personalization is easier to do with NDC than GDSs. Transparency is already available at GDSs. GDSs are today unrivalled in terms of transparency. We are empowering all metasearch engines. So saying that GDSs cannot offer e-commerce is not fare.
The 15th edition of the International Travel Expo, Ho Chi Minh City (ITE HCMC), the most established travel event in Vietnam and the Mekong sub-region, is set to witness the presence of about 350 exhibitors, 300 hosted buyers from over 50 countries and 40 hosted international media from 14 countries. The 14th edition saw over 7,600 B2B meetings and this year, the organisers are expecting to set a new record.
Scheduled to be held during September 5-7, 2019 at Saigon Exhibition & Convention Center, Ho Chi Minh City, the show has added many new elements. “This 15th anniversary edition will enjoy a larger exhibition space of two halls, and extended operating hours from 9am to 7pm on all three days of the event. Previously, public visitors could visit the show only on the last day,” the Organisers said in a press release adding that various new elements have been incorporated in the 15th edition.
The show has been being organized by Vietnam National Administration of Tourism, Ho Chi Minh City Department of Tourism, Vietnam Trade Fair & Advertising Joint Stock (VINEXAD), and Informa Markets. “As the 15th edition of ITE HCMC nears, we warmly welcome all visitors to our lovely city, and we will do our utmost to show you a memorable time,” Bui Ta Hoang Vu, Director of the Department of Tourism of Ho Chi Minh City, said.
Speaking on the new elements of the show, the organizers said that ITE HCMC 2019 will see a Start -up Tourism Forum to discuss fresh solutions, new perspectives, and enhanced customer experiences emerging out of the rapidly changing travel technology scenario.
Apart from the regular exhibitors such as BenThanh Tourist, Cambodia Ministry of Tourism, Hanoi Department of Tourism, Saigon Tourist, Vietnam Airlines, Vietravel, and Vung Tau Department of Tourism; ITE HCMC is set to see the participation of new players like Gangwon Province; Shanghai Municipal Administration of Culture and Tourism; and Seoul Tourism Organisation. Also exhibiting are companies from popular tourism hotspots such as Australia, Cambodia, China, India, Japan, Korea, Laos, Malaysia, Myanmar, the Netherlands, the Philippines, Singapore, Taiwan, Thailand, and United Arab Emirates (UAE).
Moreover, a series of comprehensive seminars covering the diverse range of topics will also be held during the show. One of them is the new Corporate Travel Trend Forum, organised by Corporate Travel Community. This forum will discuss topics like the Relationship Between Corporate Travel and MICE; An Introduction of Strategic Meetings Management Programme; and The Myths of Corporate Travel Management. The seminars and forums will also cover Medical Tourism, The Rise of the Solo Traveler, Smart Tourism Development in Ho Chi Minh City, Vietnam – Russia Tourism Cooperation, Vietnam - Middle East Tourism Cooperation and Vietnam – Korea Tourism Cooperation amongst others.
“Vietnam continues to witness strong sustained growth in the tourism sector, with local and foreign companies pumping in more investments and opening up new routes. We are thus confident that ITE HCMC will continue to serve the tourism industries in Vietnam and the Mekong sub-region far into the future,” Michael Duck, Executive Vice President of Informa Markets Asia, said and added that the entry Vinpearl Air and AirAsia is expected to make more parts of the country easily accessible to both local and foreign tourists.
With a substantial 20 per cent increase in Indian arrivals in the first five months of this year, Tourism Authority of Thailand (TAT) is aiming to welcome two million Indians in 2019. This was informed by Charun Ohnmee, Deputy Governor for Policy and Planning, TAT at the last leg of four city Indian roadshows in New Delhi recently. Thailand welcomed 1.6 million Indian visitors in 2018.
With a consistent growth in arrivals, TAT is now putting a lot of efforts for sustainable tourism. Ohnmee informed that Thailand has moved from being a mass tourism destination to a value-for-money destination and now looking at quality tourism to follow the practices of responsible and sustainable tourism. “We have changed the perception of being a cheap destination. We now set our target as tourism revenue only. We do not focus about the number of tourists going to Thailand. We do advertising, broadcast new messages to people and then talk to people on supply side. We tell them that we need quality tourism,” the Deputy Governor said.
Drawing his opinion on a report suggesting Thailand’s aims to receive 10 million Indian tourists by 2028, he said that TAT is looking at India market too seriously with a focussed marketing and promotional strategy for India. “India and Thailand are quite close because we have a strong faith in our strong and similar culture. So, Indians love to visit Thailand,” said.
Recalling the arrival trends from India, Ohnmee looked optimistic to accomplish the target. However, he agreed to the fact that the entitled seats between India and Thailand under the existing aviation bilateral has almost exhausted. Currently, there are more than 300 weekly flights between India and Thailand.
The consistent rise in Indian arrivals to Thailand is due to the directed marketing strategy of TAT for this market. “Now we are focusing on leisure, family and wedding segments. We have to look now for millennials, female and solo tourists, MICE, senior citizens, Golf and honeymooner,” he added. TAT has always been coming up with segment wise marketing strategy for India and it has produced desired result. “We have developed microsites to promote different segments. We have developed a micro-website for first time visitors to Thailand. The site gives all relevant information to first time visitors and is getting very good response from India,” Isra Stapanaseth, Director of TAT New Delhi Office said.
Replying to a question over performance of TAT in China and European market, Ohnmee said, “It is completely different. I think number of tourists from European market is about 6.5 million. China is quite close to us and they can travel year around. China has a large middle class and we are a big market for them. We did not put more money and efforts for the Chinese market,” Ohnmee said and added that the profile of European travellers is quite different. “We try to upgrade our supply side and constantly improving to meet up their requirements. They come to Thailand from September up to March. So, for this period, we try to find some joy activities and do more promotions to draw more European tourists,” he informed.
Pinki Arora, Executive Director, Direct Representation – responsible of marketing Thailand in North and East India, Bangladesh, Bhutan and Nepal, informed that TAT is actively looking at tier -II & III cities in India to maintain the growth trends to Thailand. “We are getting very good response from cities like Chandigarh, Amritsar, Pune, Nagpur, Lucknow, Jaipur, and Ahmedabad amongst others,” Arora said.
India currently ranks at 6th position as a source marker for Thailand is at number six source market after China, Malaysia, Lao, South Korea and Japan.
Thailand currently offers free Visa on Arrival for Indians and will continue to do so till October 31, 2019.
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