Both domestically and internationally, India tourism is growing at an impressive double digit rate. Domestically, the birth of low cost carriers such as Jet Airways, Sahara and Kingfisher has dramatically increased the affordability of internal air travel. This has provided a boon for both domestic travel and international visitors.
Investment in new and upgraded airports in the main gateways of Delhi and Mumbai and major business hubs of Chennai, Bangalore, Kolkata and Hyderabad as well as other strategically important Indian regional areas, has provided access to more of India making it more convenient for international and domestic travellers.
There is a nationwide hotel boom adding more than 50,000 new rooms under global brands such as Four Seasons, Mandarin Oriental, Sofitel, Aman, Marriott, Crowne Plaza, Novotel, Grand Hyatt, Shangri-La and Radisson. They are badly needed to meet both the astonishing growth in domestic and international business, MICE and leisure traffic as well as major international events such as the Commonwealth Games to be held in New Delhi in 2010.
Domestic and international air traffic has grown nearly 20 per cent in the last 12 months with international visitor arrivals influenced by the successful global Incredible India campaign and the growth in international air capacity. Improving consumer attitudes towards spending, and travel in particular, and the surge in disposable income of the average Indian has together fuelled a travel boom outbound and within the country. Positive changes in Indian government policy on travel and aviation have freed the Indian outbound traveller from stringent foreign exchange regulations for overseas travel.
With more marketing exposure and direct air access to new destinations such as Australia, New Zealand and South Africa, Indians are the perfect visitors with a length of stay between 10 and 15 days and an itinerary which really meets the ideal description of dispersion. The south east Asian destinations are the most popular due mainly to increases in airline capacity, visa relaxation, easy availability of Indian food and value for money.
The key industry sectors include pharmaceutical, manufacturing, construction, engineering, electronics, infrastructure, automotive products, computers, finance and entertainment. The Indian public sector also has considerable potential.
Meetings & Incentives
The meetings and incentives market ex-India is being driven by the healthy economic growth of the Indian corporate sector and attractive profits experienced by the many Fortune 500 multinationals in India. This is great news for Australia as it has experienced real growth from the Indian incentive and meeting segment particularly in the last 12 months which can be attributed to a couple of important and positive developments.
With direct flights with Qantas from Mumbai and code share agreements with Jet Airways, an increase in flights from other key Indian gateways with Singapore Airlines, Malaysian, Emirates and Cathay Pacific, Australia now has extensive and vital air links from the Indian market. There has also been increased marketing by Tourism Australia and its industry in India which has lifted the profile of Australia and its tourism assets. Typical Indian incentive and meeting group sizes range from 150 to 500 pax and include a six to 10 night Australian itinerary. These itineraries feature at least two Australia cities, five-star hotels, comprehensive sightseeing, gala dinners and product launches. There are of course many challenges in handling the Indian incentive and meeting market, but like with all new markets, Australia as a destination and its industry has to learn fast and be primed to capitalise on the potential in the corporate incentive and meeting market from India.
Peter Colahan is chief executive of Business Tourism Australia. He has travelled to India extensively in recent times establishing relationships with leading corporations. Peter can be contacted on peter@businesstourismaustralia.com.au or visit www.businesstourismaustralia.com.au.
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