AND DOMESTIC GUESTS. BACKED BY ITS MINISTRY’S EFFORTS, THE DESTINATION’S PROSPECTS ARE SHINING BRIGHTER.
India's tourism industry is on an upward path as the Ministry of Tourism focusses heavily on product development and the overall promotion of the destination through the implementation of print, electronic, online and outdoor media campaigns in international markets under its Incredible India brand.
In addition, it utilises its overseas tourism offices, participates in major international travel events and organises road shows with the end objective of increasing foreign arrivals.
Among the noteworthy initiatives introduced by the country's government was the e-Tourist Visa scheme, having taken effect in November 2014, which was extended to citizens of 113 countries arriving at 16 airports. According to the ministry's data, the facilitation prompted an 893 percent surge in the number of those arriving with electronic visa between January – August over the same period in 2014.
More specifically for August, the top three source markets availing the electronic facility were the US, Germany and the UAE, with 26, 10 and nine percentage shares respectively. Furthermore, the tourism authority has also expressed a keen interest in enhancing specific subsectors.
Most notably, the anticipated establishment of a Medical & Wellness Tourism Board is expected to take centre stage on a single portal, as well as through overseas tourism offices.
"The range of initiatives underway by the Ministry of Tourism are laudable as these look to position India as a [credible] medical and wellness tourism destination," enthused Amit Kumar, general manager, Hilton Chennai.
In accordance with the economic impact report by World Travel & Tourism Council (WTTC), the overall sector's total contribution to India's GDP was 6.7 percent in 2014, and is forecast to rise by 7.5 percent by year-end.
However, Mahesh Sharma, state culture, tourism and civil aviation minister, India, posited that the industry has yet to be given its rightful place as a key player in economic growth, though the government is now taking strides and laying emphasis on the benefits towards employment and foreign exchange earnings.
DOMESTIC IMPORTANCE
This year has been promising for many of the destination's hospitality partners. Kumar highlighted a 20 percent increase in occupancy in the first half of the year, with the US, Europe and Asia Pacific remaining the main markets. Similarly, and also citing a rise, Alok Chakravarty, director of sales and marketing, Shangri-La's – Eros Hotel, New Delhi, pinpointed the US, the UK, France, Japan, China and the Middle East as the property's growing sources.
However, he further stated that it is imperative for hotels to recognise the potential of the local market to generate further revenue and increase occupancy.
Indeed, WTTC revealed that in 2014, domestic travel spending generated 81.4 percent of the overall direct travel and tourism GDP.
Echoing Chakravarty's call to attention, Arif Patel, regional director, South Asia, Starwood Hotels & Resorts Worldwide, commented, "As domestic travel increases and Indian travellers continue to demand more sophistication in terms of both quality and experience, we have significant opportunity to grow our brands across the spectrum in gateway cities, tertiary markets as well as resort destination."
In addition to this, Patel also expressed confidence in the potential of the Middle Eastern market for the group's hotels.
GROWTH ON THE HORIZON
India is undoubtedly experiencing fastpaced hospitality growth. Starwood Hotels & Resorts Worldwide currently operates 46 hotels throughout the destination, with seven of its 10 brands already in play, and with 37 more properties in the pipeline.
By the end of this year alone, the group will have welcomed a total of seven hotels in the country, including The St. Regis Mumbai which opened in September and the 122-key Le Méridien Mahabaleshwar Resort & Spa, inaugurated in June. As for future development, Patel noted that with the surge of both foreign inbound and domestic travel, the company continues to grow on the back of property openings and new agreements.
"India is the fourth largest market for Starwood Hotels & Resorts Worldwide and will soon be the third," he concluded.
Marriott International, which has 29 operational hotels across India and has another 47 in its development plans, launched its latest project in September.
The opening of the 112-room 16-floor Renaissance Lucknow Hotel was prompted by the positive tourism growth in the country.
The property, which also boasts a variety of dining options and adequate meetings and events facilities, expects to target the local, Delhi and Mumbai market for both business and leisure guests. "Renaissance Lucknow Hotel brings a modern, new face of hospitality to Lucknow and is sure to set benchmarks in the city," said Rahul Maini, general manager, Renaissance Lucknow Hotel.
