Tag Archives: recovery

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!

Jyoti Mayal Plays an Important Role in Travel Recovery and Gender-Sensitive Tourism

During the pandemic, Jyoti Mayal, President, TAAI, emerged as a powerful advocate, tirelessly working for refunds and the resumption of flights. She collaborated closely with the Ministry of Civil Aviation and international airlines to facilitate the reopening of flights and borders, all while ensuring essential health protocols were implemented. Additionally, she played a crucial role in reintegrating airlines into the Global Distribution System (GDS), enhancing accessibility and affordability for both travel agents and customers.

Beyond her efforts to restore industry operations, Mayal is a dedicated champion of gender-sensitive tourism, prioritizing the safety and comfort of female travellers. Her advocacy has led to significant policy changes aimed at creating safer environments, ensuring that the travel industry meets the specific needs of women.

 

Thailand extends hotel fee waiver for 2 more years

In a bid to bolster its pandemic-hit tourism sector, the Thailand Cabinet has announced an extension of the waiver on operating fees for hoteliers for an additional two years. The exemption, which covers an annual fee of THB 40 per hotel room, will be effective from July 2024 to June 2026. Deputy spokesman Karom Phonphonklang disclosed during a news conference that this extension will incur a cost of THB 54 million in foregone revenue for the government.

The decision aims to alleviate financial burdens on hotel operators who continue to struggle amidst the ongoing impacts of the Covid-19 pandemic. This support comes as Thailand’s economy lags behind its regional counterparts, grappling with high household debt, borrowing costs, and subdued export performance.

Tourism remains a crucial pillar of Thailand’s economic recovery strategy, with the government targeting a 3 per cent GDP growth in 2024, following a modest 1.9 per cent expansion in 2023. The sector has shown signs of recovery, evidenced by a 36 per cent year-on-year increase in foreign tourist arrivals, totaling 16.84 million visitors from the beginning of 2024 until June 23, 2024. These tourists contributed THB 795 billion to the economy, according to data from the tourism ministry, with China emerging as the largest source market with 3.31 million arrivals during the period.

Looking ahead, the government aims to attract 36.7 million foreign visitors in 2024, aiming to rebound close to pre-pandemic levels seen in 2019, when nearly 40 million tourists visited Thailand.

 

 

International arrivals on track for recovery above 2% of 2019 levels in 2024: UN

In 2023 international tourist arrivals recovered 89% of 2019 levels and export revenues from tourism 96%, while direct tourism GDP reached the same levels as in 2019.

UN Tourism’s projection for 2024 points to a full recovery of international tourism with arrivals growing 2% above 2019 levels. In line with this, the newest data released by the UN specialized agency for tourism show that:

International tourism is experiencing a rapid recovery in Asia and the Pacific where arrivals reached 82% of pre-pandemic levels in Q1 2024, after recovering 65% in the year 2023.

UN Tourism Secretary-General Zurab Pololikashvili said, “The recovery of the sector is very welcome news for our economies and the livelihoods of millions. Yet it also recalls the need to ensure adequate tourism policies and destination management, aiming to advance sustainability and inclusion, while addressing the externalities and impact of the sector on resources and communities”.

By subregions, North Africa saw the strongest performance in Q1 2024 with 23% more international arrivals than before the pandemic, followed by Central America (+15%), the Caribbean and Western Europe (both +7%). Southern Mediterranean Europe exceeded pre-pandemic levels by 1%, while South America virtually reached 2019 levels. Northern Europe recovered 98% of pre-pandemic levels, while Subsaharan Africa and North America both recovered 95%.

According to available data, many destinations across the world continued to achieve strong results in Q1 2024, including Qatar (+177% versus Q1 2019), Albania (+121%), Saudi Arabia (+98%), El Salvador (+90%), Tanzania (+53%), Curaçao (+45%), Serbia (+43%), Turks and Caicos (+42%), Guatemala (+41%) and Bulgaria (+38%).

The robust performance of international tourism can also be seen in the UN Tourism Confidence Index which reached 130 points (on a scale of 0 to 200) for the period January-April, above the expectations (122) expressed for this period in mid-January.
Receipts

International tourism receipts reached USD 1.5 trillion in 2023, meaning a complete recovery of pre-pandemic levels in nominal terms, but 97% in real terms, adjusting for inflation.

By regions, Europe generated the highest receipts in 2023, with destinations earning USD 660 billion, exceeding pre-pandemic levels by 7% in real terms. Receipts in the Middle East climbed 33% above 2019 levels. The Americas recovered 96% of its pre-pandemic earnings in 2023 and Africa 95%. Asia and the Pacific earned 78% of its pre-crisis receipts, a remarkable result when compared to its 65% recovery in arrivals last year.

Total export revenues from international tourism, including both receipts and passenger transport, reached USD 1.7 trillion in 2023, about 96% of pre-pandemic levels in real terms. Tourism direct GDP recovered pre-pandemic levels, reaching an estimated USD 3.3 trillion in 2023, equivalent to 3% of global GDP.

Several destinations achieved remarkable results in terms of receipts in the first quarter of 2024 as compared to 2019 levels based on available data, including Serbia (+127%), Türkiye (+82%), Pakistan (+72%), Tanzania (+62%), Portugal (+61%), Romania (+57%), Japan (+53%), Mongolia (+50%), Mauritius (+46%) and Morocco (+44%).

Full recovery globally in 2024
International tourism is expected to recover completely in 2024 backed by strong demand, enhanced air connectivity and the continued recovery of China and other major Asian markets.

The latest UN Tourism Confidence Index shows positive prospects for the upcoming summer season, with a score of 130 for the period May-August 2024 (on a scale of 0 to 200), reflecting more upbeat sentiment than earlier this year. Some 62% of tourism experts participating in the Confidence survey expressed better (53%) or much better (9%) expectations for this 4-month period, covering the Northern Hemisphere summer season, while 31% foresee similar performance as in 2023.

Challenges 

According to the UN Tourism Panel of Experts, economic and geopolitical headwinds continue to pose significant challenges to international tourism and confidence levels.

IMF’s latest World Economic Outlook (April 2024) points to a steady but slow economic recovery, though mixed by region. At the same time, persisting inflation, high interest rates, volatile oil prices and disruptions to trade continue to translate into high transport and accommodations costs.

Tourists are expected to continue to seek value for money and travel closer to home in response to elevated prices and the overall economic challenges, while extreme temperatures and other weather events could impact the destination choice of many travellers. This is increasingly mentioned by the UN Tourism Panel of Experts as a concern for the sector.

Uncertainty derived from the Russian aggression against Ukraine, the Hamas-Israel conflict and other mounting geopolitical tensions, are also important downside risks for international tourism.

As international tourism continues to recover and expand, fuelling economic growth and employment around the world, governments will need to continue adapting and enhancing their management of tourism at the national and local level to ensure communities and residents are at the centre of this development.