Author Archives: Shayan Mallick | New Delhi

AHOY THERE!

It’s that time of the year when most of the Indian travel trade bodies are headed to their annual
conventions. Early in October, the Indian Association of Tour Operators (IATO) concluded their 39th Annual Convention in Bhopal. And only last week, the Adventure Tour Operators Association of India (ATOAI) were headed to Tawang for their Convention that was scheduled from December 3 – 8, a long six-day affair, and now, Travel Agents Federation of India (TAFI) is headed to Vietnam next month for the same.

Trade body annual conventions are a great platform to get a good peek into where their respective representative sectors stand, discuss issues at hand, draw up a strategy for the sector to chart a better future, and for the association itself to remain relevant in the ever-evolving market place and to the needs and requirements of their members.

These annual gatherings are also occasions where the associations should look at creating an efficient, well-oiled and thoroughly synergised path forward for their sectors in close co-ordination with the government policies, policy-makers and their aspirations or target from the sector. This is particularly true for trade bodies such as IATO and ATOAI, among others, for the very fact that for tourism, particularly inbound and sub- sectors like Adventure, MICE, etc., to thrive, there needs to be very active co-ordination mechanism between the public and private sectors.

Tourism is a pretty much private sector-led enterprise, but cannot do much on its own if not supported by the political and bureaucratic will. The sooner it is understood, especially by the policy-makers, the better it is. Conventions will go a long way in charting the right course for the sector’s successful role for the ambitious Amrit-kaa ltourism target that seeks Adventure Tourism to contribute USD 800 billion or the targeted USD 3 trillion tourism economy by 2047.

IATO’s, ATOAI’s, or ADTOI’s, such Conventions’ success or failure greatly hinge on the fact that how successful have they been in driving these messages home with real tangible results on the ground, and not merely the bureaucratic or political lip services that these events get.

Shayan Mallick
shayan.mallick02@gmail.com

IATO Convention 2024: Desperate stakeholders arguing Tourism!

India’s inbound tourism paints a very gloomy picture ahead. In the absence of adequate promotion, initiatives and funding, the inbound recovery was far from satisfactory the last year. However, and to the industry’s absolute chagrin, 2024 has been no different so far, probably even worse than the last year, amidst some clear indication that we would likely miss the bus in 2025 as well.

Furthermore, as if a host of unfriendly measures like shutting down overseas Indian tourism offices, discontinuation of scheme that earned the inbound operators incentives on the foreign exchange they earned, among others, were not enough, the 2024-25 Union Budget further plunged the industry, already tottering on the brink, in abject misery.

The recently concluded, 39th edition of IATO Convention, was organised at a time when eyes and expectations are on the post-Covid recovery and the growth thereafter. And in that context, probably the biggest highlight of the event was the lingering scrutiny throughout the three-day event of the government’s commitment to inbound tourism, voiced amply and repeatedly by stakeholders representing IATO and other industry associations and stakeholders.

There were some very strong suggestions, opinions, and demands, made during the events by the likes of IATO President Rajiv Mehra; Puneet Chhatwal, MD & CEO, The Indian Hotels Company Ltd. (IHCL); Ajay Bakaya, MD, Sarovar Hotels & Resorts; Vikram Madhok, MD, Abercrombie & Kent, Amaresh Tiwari, Vice Chairman, ICPB and Board Member – FAITH; among others, with regard to the current state of inbound tourism and the initiatives that are required.

While welcoming Union Minister Tourism and Culture at the inauguration, Mehra expressed hope that under the new Tourism Minister’s leadership, the industry will get full support from the Ministry and overseas promotions will restart. He also requested the Minister to re-instate MDA scheme for the tour operators which has been discontinued for last 3-4 years. “This has resulted in tour operators not being able to do overseas promotion and participate in overseas travel marts,” Mehra lamented.

Reinstatement of schemes such as SEIS that not only motivates and rewards inbound operators on the foreign exchange that they earn, but also aids their individual overseas marketing efforts, an efficient and better-funded Market Development Assistance (MDA) Scheme, putting up trained manpower at embassies overseas to undertake effective promotional work, undertaking different overseas promotion initiatives and regular interaction with foreign tour operators through roadshows, better budgetary support to Ministry of Tourism, advance planning and information for overseas promotion, development of new source markets, organising destination showcase thorough familiarisation trips for FTOs, journalists and influencers, prominently figured in various discourse and suggestions that took place at the IATO Convention.

The three-day event, themed ‘Resurgent India Inbound’ was organised along with a number of business sessions sought to not only, among others, highlight the immense socio-economic and job dividend that the country can benefit from by leveraging inbound tourism, but also highlighted the poor recovery in the aftermath of pandemic and the little support or attention that the inbound tourism sector has been given, amply demonstrated by India’s despondently poor show in attracting foreign tourist so far. Notably, the country earned foreign exchange in excess of USD 30 billion (INR 2,11,661 crore) in 2019, its best year till date.

However, Foreign Tourist Arrival figure is 2023 was still short by a lamentable over 15 per cent in comparison to the peak 2019 numbers, and the situation has not improved much in 2024, because of India’s heavy reliance on fewer source markets. The H1, 2024 inbound numbers were still lagging by 10 per cent, but that was before the Bangladesh, India’s number one tourism source market contributing nearly a quarter of the total FTAs, crisis. Given the continuing political upheaval there, India’s overall FTA number till date is probably worse off than the corresponding 2023 period.

Mehra also highlighted that over the years IATO Conventions have played critical role in showcasing and establishing destinations inbound profile and Madhya Pradesh as the host of the 39th Annual IATO Convention will reap big rewards with increased inbound visitations in the coming years. The delegates were treated with 10 richly crafted post-convention tours covering prominent sites such as Khajuraho Temples, Sanchi Stupa, the prehistoric cave paintings of Bhimbetka, all UNESCO World Heritage Sites, along with other prominent sites, such as Mandu, Jabalpur, Ujjain, Panchmarhi, Shivpuri, its rich wildlife, culture, among others, in order to unlock state’s inbound potential.

The event was attended by Dr. Mohan Yadav, Chief Minister, of Madhya Pradesh; Gajendra Singh Shekhawat, Union Minister of Tourism and Culture; Rajendra Shukla, Deputy Chief Minister of Madhya Pradesh; Dharmendra Bhav Singh Lodhi, Tourism & Culture Minister of Madhya Pradesh; M.R. Synrem, Joint Secretary, Ministry of Tourism, Government of India; Sheo Shekhar Shukla, Principal Secretary – Tourism, Government of Madhya Pradesh & MD, Madhya Pradesh Tourism Board, Bidisha Mukherjee, Additional MD, Madhya Pradesh Tourism Board, Dr. Ilayaraja T, MD Madhya Pradesh State Tourism Development Corporation Ltd. and senior Government officials from Union Ministry of Tourism and Madhya Pradesh State Tourism Department, Madhya Pradesh Tourism Board and Madhya Pradesh State Tourism Development Corporation Ltd.

More than 1,200 delegates attended the event. IATO’s famous Hall of Fame award was bestowed upon IHCL’s Puneet Chhatwal and Late M.L Razdan of Razdan Holidays.

Hong Kong’s new incentives programme to give edge in planning and staging events

Aimed at facilitating event organisers and corporate entities, and growing destination’s incentives share, ‘Hong Kong Incentive Playbook’ offers over 100 authentic HK experiences and 40+ innovative team-building ideas, along with new funding schemes, professional planning, advisory support, and more.

Hong Kong is renowned for its world-class business events and incentives offerings, and it’s recently launched captivating incentives programme ‘Hong Kong Incentives Playbook’ has only made it far more attractive for corporates and incentives organisers.

The programme’s offerings include, from curated authentic experiences and team- building activities to funding schemes and professional planning and more, all aimed at enhancing organisers and visitors’ experiences in the destination.

With nearly 700,000 international MICE arrivals in H1 2024, Hong Kong Tourism Board (HKTB) is keen to further give fillip to Hong Kong’s profile as a premier destination for corporate events and incentives.

Speaking on the sidelines of its recently concluded road show in Delhi, Puneet Kumar, Director, South Asia & Middle East, HKTB, said that HKTB is prioritising the MICE (Meetings, Incentives, Conferences, and Exhibitions) segment, which has shown robust recovery.

He said, “India is one of the top five source markets for the incentive group travel segment of the MICE business, and we have registered a robust rebound in demand from Indian corporates to stage events for their distributor networks, reward employees, or organise global meets for senior management.” India may not feature in Hong Kong’s overall top ten tourism source markets but ranks among the top five source markets for Incentives group travel segment.

Furthermore, he said, “To further cultivate the MICE segment, we have launched a brand new programme, ‘Hong Kong Incentive Playbook,’ that offers over 100 authentic HK experiences and 40+ innovative team-building ideas. These unique offerings are designed to excite and attract incentive groups, thereby enhancing Hong Kong’s appeal in this competitive market. HKTB is offering new funding schemes, professional planning, and advisory support, and exclusive hospitality offers to give the edge in planning and staging events for event organisers and corporates.”

The programme’s experiences and activities have been clubbed under five themes, namely, Nightlife & Parties, Wellness & Nature, Art & Culture, Hong Kong Neighbourhood and Hong Kong Signatures, all collection of iconic experiences and places of interests. “Every theme is designed with recommendations that resonates with the particular segment. At the same you can also play the itinerary in ways such as that you have a slice of vibrant art and cultural scene while also sampling the best of the food and wining and dining or party options,” added Kumar.

The incentives scheme, launched in April this year, was further supported by a mega MICE programme. Ten leading MICE operators from India attended the launch ceremony followed by destination familiarisation trip. The event drew 120 MICE operators from five key markets

“We have also seen that Indian corporates demand including wellness elements in the itinerary, more so if they are organizing their employees retreat or employees reward programmme. And Hong Kong is a perfect destination when it comes to wellness and nature. 70 percent of our landmass is green. We have over 260 islands, easily accessible and within 30 minutes ferry rides,” he elaborated.

Hong Kong has witnessed strong recovery, receiving 181,000 Indian visitors, almost 90 per cent of pre-pandemic arrivals, in the first half of 2024. However, the recovery has been more telling in the Incentives group travel segment, prompting the tourism board to launch the new program.

Furthermore, highlighting the growing importance of India’s source market potential, Kumar, informed that India is Hong Kong’s number one tourism source market among its ‘Emrging Markets’ portfolio, and contributes a staggering 50 percent of this portfolio’s overall share. Vietnam, Russia and Middle East are the other markets in this bracket.

Silence of the Lambs

Two things are happening in stark contrast of each other, and unsavory to both, India’s inbound trade and the Government. The gulf between inbound and outbound has continued to widen. In 2019, India’s best tourism year in terms of Foreign Tourist Arrivals (FTAs), the country received 10.9 million visitors against 26.9 million outbound Indian tourists. India was producing 2.5 tourists for every single tourist it received.

In 2023, which was the first Covid-free travel year, India’s outbound tourism bounced back strongly, registering a record 27.1 million outbound visitors. However, inbound was different story. In the absence of any credible plan or promotions in the overseas market, India could barely reach 85 per cent (9.2 million) of its peak 2019 number. So, in 2023, India was producing nearly 3 outbound tourists for every single tourist it received.

Come 2024, there was near unanimity across stakeholders, Government or private, of not just a full inbound recovery but potentially, a growth. However, H1 2024 numbers were still 10 per cent behind the peak 2019 corresponding period. And if that was not enough, the political turmoil in India’s biggest tourism source market, Bangladesh that began in July not only decimated any hope of a rebound in H2 2024, but has potentially already dragged the year-till-date 2024 number below the corresponding 2023 period. As for the available data for H1 2024, India was producing 3.15 outbound tourists for every single tourist it received. And for June alone, the gulf has further widened to 3.4 outbound travellers for a single tourist received!

Now, what’s utterly surprising is that given the plethora industry associations and federations, inbound has miserably failed to argue its case so far. A big shout out and a joint representation, cobbled together bringing every sector of tourism industry, and led by some of the most powerful voices like those of Taj, the Oberoi, the Lalit, the Park, Marriott, Air India, IndiGo, and the IATOs and the HAIs of the industry, is the need of the hour!

Sri Lanka eyeing to best it’s 2018 visitor numbers in 2024

With over 1.2 million visitors recorded in the first seven months, for the anticipated peak season Oct-Nov-Dec windfall, Sri Lanka Tourism is confident of achieving its target of 2.3 million tourists for 2024. Chalaka Gajabahu, Chairman, SLTPB (Sri Lanka Tourism Promotion Bureau), spoke to Shayan Mallick in an exclusive chat.
After a tumultuous few years that started with Easter Sunday bombings in 2019, followed by Covid-19 pandemic and lastly, the economic crisis of 2022, Sri Lanka is finally set to dominate the travel charts once again.
The island nation looks comfortable to achieve its target of 2.3 million international tourist arrivals, and USD 4.6 billion in tourism revenue during 2024. Sri Lanka had registered its record tourism year in 2018 when international tourist arrival surpassed 2.3 million visitors for the first time.
At over 99.9%, Sri Lanka had nearly achieved its 2023 arrival target of 1.5 million that came slightly undone because of geopolitical exigencies like the Russia-Ukraine war and more recently, the crisis in Israel.
“Sri Lanka missed the target by a mere 10,000 visitors because of the two ongoing wars, or we would have jumped the target of 1.5 million because we were getting lot of tourists from these countries as well”, believes Chalaka Gajabahu, Chairman, Sri Lanka Tourism Promotion Bureau (SLTPB). He spoke recently to TravelBiz Monitor, in an exclusive chat, on the sidelines of an award function in New Delhi.
“This year, our target is to reach 2.3 million tourists which are also our best numbers from 2018. We have already received over 1.2 million visitors in the first seven months. But don’t forget that, especially for the European market, the winter season is coming. October, November and December months are going to be very big. We are expecting about 700,000 to 750,000 visitors within these three months alone, that’s excluding the visitors for the August and September months. So I am pretty confident that we will achieve our target of 2.3 million figures,” he added.
Gajabahu also pointed that Sri Lanka’s tourism source markets are diverse and they are keen to maintain it that way. “India has always been our number one market. It was our number one market in 2023, and this year as well. We want it to grow to all categories of visitors. India will be our top market for a long time to come and we want it to be. However, Sri Lanka is a very neutral country. Whether it is India, China, Russia, the UK, France, Germany or the US, we are very welcoming to tourists from across the world.”
Commenting on the turnaround, the SLTPB head pointed, “We went through a very troublesome period before 2022 for five years! When you go through an economic crisis with long queues for essential commodities like food, medicines and petrol, no one wants to visit that country. But, in the past two years, with all that we have done, not only in India but globally, with road shows, promotions and influencer campaigns like ‘Seeing is Believing’, we are now in the top five travel indexes, wherever in the world, from the Fortune to the Forbes, and lot of other such platforms.”
In June 2022, Sri Lanka, said Gajabahu, became the first country to come to India to do the roadshow and also “India was the first country we went to because we knew that India was our next door big brother. It was the market we knew very well that we can handle, and I must admit that all the associations, especially TAAI (Travel Agents Association of India) and Jyoti Mayal came forward to help and committed to bring tourists to Sri Lanka.” TAAI organised its 67th Annual Convention in Sri Lanka last year themed around regional tourism promotion.
Furthermore, under its influencer campaigns like ‘Seeing is Believing’, Sri Lanka hosted no less than 200 global journalists and social media influencers in the last one and half years, earning the island nation receive a lot of positive coverage across the globe that gave a huge fillip to its destination image. Recently, Times of India rated Sri Lanka as the second ‘Most Popular Travel Destination in Asia.’ It was also voted as one of the safest countries for the single women travellers.
“There are many good things happening in Sri Lanka, and we hope to continue the momentum,” said Gajabahu.

‘IntrCity’s SmartBus is on an impressive growth trajectory, with expectations of a yoy increase of over 300%’

Convergence of technology and growing network of quality highways is redefining inter-city bus travel in the country. The online bus market is projected to reach 10 per cent but given the right eco-system could potentially breach the 25-per cent-mark too. Leading the transformation is IntrCity SmartBus, a tech-driven mobility brand and aggregator revolutionising the bus travel experience. Manish Rathi, CEO and CoFounder, IntrCity SmartBus, in an interaction with Shayan Mullick shares insights into the market and opportunity.

Q. How big is the overall transportation economy and the share of bus transport in it?
A. The Indian transportation sector is crucial to the Indian economy, with a contribution of around 4.9% to the country’s GDP in 2019-20. This industry has immense potential to continue developing and contributing to the country’s economic growth. In terms of inter-city travel, buses are a popular mode of transportation in India. The vast majority of long-distance travellers in India use buses as their primary mode of transportation.

The inter-city mobility market in India is dominated by bus travel, accounting for around 66% of domestic tourist visits, according to a 2019 report by the Ministry of Tourism. Buses provide an affordable and accessible mode of transportation, particularly in remote areas where other modes of transportation may not be available.

What kind of growth opportunity this segment of travel presents?
A. The bus segment for travel presents significant growth potential as intercity buses have gained the trust of their customers by offering efficient transportation services. IntrCity recently released a report on the Outstation Bus Market in India, which revealed that the online bus market in the country is projected to reach 10%. With a transformation in customer behavior and bus operator business practices, this potential could increase significantly to 25%.The bus industry has made significant strides in enhancing the customer experience by providing comfortable, air-conditioned buses with ample legroom, on-board entertainment, and other amenities.

With the Indian government focusing on making world-class road and highway infrastructure in India, there is immense potential for growth of inter/intra city travel. The Indian government’s recent budget allocation towards road travel has led to a surge in demand for co-branded buses. This demand is bolstered by the rapid growth rate of 8% CAGR over FY20-25 for Indian national highways infrastructure, which outpaces railway track lengths and airports, making it the fastest-growing supporting infrastructure for outstation travel.

Private pre-bookable co-branded buses are proving to be the most cost-effective option, with prices ranging from INR 1-3 per km. With increased connectivity to more cities, road transportation emerges as a highly economical option, backed by the fastest-growing infrastructure.

Q. What are key USPs of InterCity SmartBus?
A. IntrCity SmartBus has embraced an asset-light aggregator model that is changing the way people view bus travel, elevating it to a premium alternative to trains. With its innovative suite of applications, IntrCity SmartBus has emerged as a technology-driven mobility brand that is leading the way in revolutionising the bus travel experience. The company’s cutting-edge applications, including the Operator Dashboard, Crew App, Consumer Platform, and IOT-based Fleet Analytics, ensure that every aspect of the journey is seamlessly managed, providing real-time tracking, accurate ETA of destinations.

Passengers can enjoy the privacy and luxury of private cabins with flat beds, while Wi-Fi-enabled AC lounges at boarding points offer a place to relax and recharge, in-built washrooms with food being given on their tables.

IntrCity SmartBus is pioneering a revolutionary concept with the introduction of IntrCity SmartBus Lounges to provide passengers with a secure and comfortable boarding experience. These lounges offer a plethora of amenities, including air-conditioned waiting areas with fast Wi-Fi, charging ports, spacious and hygienic seating arrangements, recliners, hot tea/coffee, and immaculate washrooms.

Q. How is the growth forecast for the current year?
A. IntrCity’s SmartBus is on an impressive growth trajectory, with expectations of a year-over-year increase of over 300% by 2023. In the next five years, the company aims to revolutionise conventional bus travel by converting over 5,000 buses into a “Connected SmartBus Network” utilising cutting-edge technological advancements from Mobility Platform.

IntrCity SmartBus has set its sights on providing reliable and accessible mobility solutions to the previously unexplored regions, thereby bringing forth a new era of convenience and connectivity. IntrCity SmartBus will expand its current routes across North, South, and West India by adding new lines to its network.

By establishing IntrCity SmartBuses as a dependable, secure, and practical mode of transit, connecting Tier-II and III cities with neighbouring metro areas or industrial hubs will become a seamless task.

Q. Does the service also fit in the ecosystem of tourism travel, booking by agents, commissions etc.?
A. Yes, IntrCity’s service can fit within the ecosystem of tourism travel, bookings by agents, and commissions. IntrCity offers a convenient and reliable mode of transportation for tourists and travellers. Travel agents can collaborate with IntrCity to book bus tickets for their clients and earn commissions. IntrCity’s technology and features, such as real-time tracking, comfortable buses, and amenities, make it an attractive option for tourists and travel agents alike.