"Job Market Updates in India - PDF"
MARKET UPDATE India Market Summary Although the Rupee is stronger and the Indian economy is looking positive, consumers are still cautious. Recent incidents in Australia have had an impact on Indian consumers’ perception of one of Australia’s foundations – safety. Holiday visitation has declined (-11%) while Visiting Friends and Relatives visitation has increased substantially (+38%). Source: Australian Bureau of Statistics, Overseas Arrivals and Departures, February 2010. The trade continues to report increasing consumer concerns about safety in Australia, driven by negative media coverage. Support from trade however, for the destination and Tourism Australia’s activities, remains strong. 1. Market News Political Outlook: The Congress-led UPA coalition, with a strengthened mandate, should ensure uninterrupted rule over the next five years. Its status is much stronger than its previous term when it required significant support from outside the coalition. The strengthened position of UPA should allow the government to move gradually forward on investment-related reform. Source: EIU, EDC Economics. Economic Outlook: Budget for 2010-2011 was announced in February 2010.The main challenge of the budget was to revert to the high GDP growth rate of 9 per cent and to overcome the double digit food inflation. Additional funds have been allocated to infrastructure and rural development. Income tax has been revised upwards to include tax free income up to INR160,000. Overall, India‟s economic outlook remains positive and stable. The real turnaround came in the second quarter of 2009-10 when the economy grew by 7.9 per cent. As per the advance estimates of GDP for 2009-10, released by the Central Statistical Organisation (CSO), the economy is expected to grow at 7.2 per cent in 2009- 10. Source: EIU, EDC Economics. Indiabudget.nic Media Coverage: There were consistent media reports about Australia during first quarter of 2010. The murder of Indian student Nitin Garg in Melbourne was covered intensively in the media in January. This was followed in February by reports on a variety of issues including the political party, Shiv Sena‟s MARKET UPDATE opposition to Australian players participating in the Indian Premier League. News reports on Australia peaked again in March with several reports in the print, online and broadcast media on the murder of an Indian toddler by an Indian man in Melbourne. Among other news highlights on Australia was the “Vindaloo Against Violence”, a mass dining event in protest to the attacks against Indians. Source: As compiled from media reports by Corporate Voice / Weber Shandwick. CVWS is Tourism Australia’s appointed PR agency in India. 2. Consumer Insights Consumer Confidence: Indian consumers were the second most confident out of 52 countries, as recorded in the December 2009 Nielsen Global Consumer Confidence Index survey. In the last quarter of 2009, Indian consumers have become more conscious of a full economic recovery within a year. Seven out of the top ten most optimistic markets about job prospects in 2010 came from Asia, and India spearheaded with 83 per cent of Indian consumers said job prospects would be 'excellent' (17%) or „good‟ (66%) in the next 12 months. However, in the same survey, increasing food prices remain a key concern for Indian consumers where food accounts for at least 58 per cent of total household expenditure and impacts the availability of discretionary income for other items such as non-necessities and holiday travel. Source: The Nielsen Company, January 2010. Media trends: A KPMG-FICCI report on Indian media and entertainment suggests the industry, which had a relatively tepid 2009 in face of collapsing media markets all around, is slated to be back on track in 2010. The report states that the Indian M&E industry will grow at a compounded annual growth rate of 13 per cent per annum through to 2014 to reach INR 1.1 trillion. The performance of 2009 showed that outdoor, films and radio had a negative growth year, while print was a moderate growth year. The television industry showed a good growth rate and is estimated to have reached a size of INR 257 billion, a growth of 6.8 per cent over 2008. It is expected to grow at the rate of 15 per cent over 2010-14 and reach a size of INR 521 billion in 2014. Print media is slowing down in India, with a very moderate growth of 2 per cent in 2009 and will reach a size of INR 175 billion. Print is projected to grow at a compounded annual growth rate of 9 per cent over the next five years and will reach around INR 269 billion in size by 2014. Compiled by: Corporate Voice Weber Shandwick from www.pwc.com For the latest in visitor arrivals, please visit ‘Research and Statistics’ at www.tourism.australia.com 3. Trade Update A small portion of trade has reported that travel to Australia has been affected due to Indian consumers‟ rising concerns on travel safety in Australia. This is a result of the adverse publicity about the destination. Mercury Travel has launched its Australia campaign. Cox and Kings and Make My Trip launched their campaigns in early April. MARKET UPDATE The first quarter of 2010 saw multiple national and regional fairs organised by travel agents and professional fair organisers, targeting consumers who are planning holidays for the peak season in April and June. The Preferred Agency Scheme training was successfully conducted with DIAC across Mumbai, Delhi, Kolkata, Ahmedabad & Chennai between 23 February to 5 March. As at March 2010, there were 1,370 Aussie Specialist agents from 460 agencies in India, of which 625 were fully qualified. There were 197 PAS agents from 114 agencies. 4. Airline News Kingfisher Airlines was granted traffic rights to operate on seven new international routes. The new routes will connect New Delhi to London, Hong Kong, Bangkok and Dubai, and Mumbai to Colombo, Bangkok and Dubai. Kingfisher Airlines joined the Oneworld alliance. Air Asia X will introduce new routes to Indian key cities Mumbai, Delhi, Chennai, Bangalore and Hyderabad from May 2010. Industry is still speculating if the new Air Asia X Indian routes would benefit Indian traffic arriving via the Kuala Lumpur hub. Jet Airways commenced direct services from Mumbai to Johannesburg starting April 14, 2010. Tiger Airways plans to start operations from Kochi, Trivandrum & Trichy, in addition to Chennai and Bangalore. 5. Competitor News South African Tourism has undertaken an extensive outdoor campaign across 17 cities in India, in light of the FIFA World Cup 2010. South Africa Tourism plans to introduce a new program „Learn South Africa‟ for the trade. They recently concluded the annual roadshow to four cities. Tourism New Zealand has launched a tactical campaign with several partners and registered a 27 per cent increase in Indian arrivals The German National Tourist Board is promoting Germany as a leisure destination in India. Atout France in association with Paris Convention & Visitors Bureau concluded its fourth edition of the Paris Event road shows in Mumbai and Delhi. This year the delegation comprised eight new entrants. France is positioned as a family destination. Japan National Tourism Organisation hosted the Visit Japan seminar for travel agents and is set to launch a B2B portal for travel agents. Swisstours has launched an online booking portal offering a variety of holiday options. MARKET UPDATE Visit Britain has planned a dedicated campaign to attract the youth segment. The campaign commenced in May in four key metro cities. Iceland Travel is promoting itself as an attractive supplementary destination to Scandinavia / Europe. New national tourism organisation, Monaco Tourism and Convention Authority has appointed Trac Representations as their Marketing & PR representative in India. 6. Key Campaigns and Activities in India MARKET UPDATE January to March campaigns and activities START END DATE DESCRIPTION TARGET AUDIENCE PARTNERS DATE Feb 2010 March 2010 International Media Hosting Program Journalists Qantas March 2010 Mercury Travel‟s Australia campaign Consumers travelling in peak season May and June Mercury Travel April to June campaigns and activities START END DATE PROJECT/EVENT TARGET AUDIENCE PARTNERS DATE May 2010 June 2010 International Media Hosting Program Journalists State Tourism Organisations April 2010 Cox & Kings‟ Australia campaign Consumers travelling in peak season May and June Cox & Kings April 2010 Make My Trip‟s Australia campaign Consumers travelling in peak season May and June Make My Trip