Tourism The Great Indian Traveller THINK INDIA

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					     The Great Indian Traveller




                            THINK INDIA THINK TIMES
November 2006
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Indians prefer travelling abroad to holidaying
                   in India.
India has been identified as the second largest travel market in Asia.
Outbound travel from India in 2004-05 shows unprecedented growth with
figures touching 7.5 million - a growth of 20%.
Liberalization in foreign travel allowance by government has been a major
contributory factor.
As much as 76% of Indian vacation seekers propose to visit an international
destination for their next holidays. (Thomas Cook - Readers Digest Study Nov 2006)
Switzerland, USA and Singapore have emerged as the top leisure
destinations for Indians. – (Thomas Cook - Readers Digest Study Nov 2006)
Delhi and Mumbai are the big power houses that contribute 70% of India‟s
outbound travel market.
Of all international travelers, 70% ranked sight-seeing as the most
important reason for travel, while shopping was most important for 61%.
Casinos, cruises, location shoots are the other attractions for Indians
travelling abroad. (Thomas Cook - Readers Digest Study Nov 2006)

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     Overview of the Tourism Market in India

The total number of Indian outbound travellers this year is 7.5
million.
The Business Traveller (including Corporate Incentive Travel)
comprise 50% of the total.
A little less than 50 % will travel for leisure purposes.
The rest will fall under the categories like students,
immigrants, etc.


Source: The Economic Times July 10, 2005/SOTC Report 2004


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    Indian Outbound Traveller – a growing market
     Outbound travel from India in 2004-05 showed unprecedented
     growth with figures reaching over 7.5 million, which is higher than
     the number of foreign tourists entering India – 4.5 million arrivals.

     WTO predicts that Indian outbound traffic will grow to 50 million
     tourists by the year 2020.

     Indians travelling abroad spent 1.4 billion US$ in 1999 which is
     forecast to grow to 3.9 billion US$ billion rupees in 2004.

     Government of India has eased foreign exchange restrictions in the
     last two years. RBI regulations w.e.f. March 2004 permits Indian
     business travellers to carry up to US$ 25,000 abroad.
Source:Pacific Asia Travel Association.
Economic Times Intelligence Unit/ ET July 10, 2005



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                      The Indian Outbound Traveller
 Indians with an annual income of Rupees half a million and
 upwards are regular leisure travellers.
 The main demand for overseas travel comes from the business
 community, especially those who own and run small
 businesses. Professionals ,doctors, lawyers and IT
 professionals are regular international leisure travellers.
 Traditionally, Indians mostly travel with families and are
 known to be big spenders.
 There is also a growing class of executives who use attractive
 finance options and credit cards.
 Typically, people in the 31-42 year bracket are the target
 leisure-travel audience. These include many younger people
 especially DINK (Double income no kids) couples.
Source: The Economic Times Intelligence Unit /Pacific Asia Travel Association
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                                 Advantage - India

  Growing incomes,changing lifestyles are prompting
financing of holidays by banks in coordination with big
travel companies.
  Players include HDFC Bank, Kotak Mahindra Bank,
Citibank, Stanchart, etc.
  After housing and cars, banks have started to bet on
financing holidays with “buy-now, pay-later” schemes.
  According to Thomas Cook and Kuoni Travels, holiday
finance has grown from 3-5 % to around 12% in FY 04.
  Thus Holiday Financing is expected to be the next big area
in the personal finance segment.

Source:The Economic Times Intelligence Unit

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               Advantage - India

“It would be foolish not to embrace India with its fast
growing economy.” - Richard Branson, Virgin Atlantic
Airlines. He called April 1st, 2005 a „historic day‟ when
ten years of effort culminated in Virgin now running
three flights a week on the London – Mumbai sector.

„What is significant is the potential the market offers.
When you have a population of over one billion, even 2%
is a very large number, as large as the entire population
of Australia‟- Mathew Spacie (Sales and Marketing) Cox
and Kings.



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  Region wise performance- Indian Outbound
                   Market.
EUROPE
UK topped the chart with an average of 200,000 Indian visitors in 2001.
Switzerland is next on the chart with 97,400 arrivals from India and
2,40,000 overnight (transit) stays in 2004.
Switzerland emerged as the top favorite country with 23% of Indian
tourists opting for it. – (Globetrotter Study, Nov 2006)
MasterCard‟s Master Index of Consumer Confidence Survey 2005 said
14% of their respondents prefer Switzerland as a destination for their
next trip abroad.
British Tourist Authority rated tourists from India as the 2nd most
important segment by nationality.
The amount spent by Indians in the UK alone increased by 25% from
134 million pounds in 2000 to 163 million pounds in 2001.

Europe is an important regional destination for Indians.
Source:BTA

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        Region wise performance- Indian Outbound
                         Market.
USA
    USA is attractive to Indians because of the eternal fascination for all things
    American. The sizeable diaspora also beckons once in a while. US has some of the
    world‟s best travel infrastructure making it one of the most enjoyable destinations.

    12 per cent of travelling Indians prefer to visit USA making it the second among the
    top three favourite destinations. (Switzerland is no. 1, Singapore in no.3)

    US arrivals from India in 2003 were 272,000 – a 6 % rise over 2002. Expected
    arrivals for 2004 are 300,000-- a 10% rise over 2003.

    India is one of the four strongest emerging inbound travel markets for the US. In
    the past decade, arrivals to the U.S. from India (and Poland) have grown faster
    than arrivals from any of the top 25 inbound markets to the U.S.



Source: Travel Industry Association of America.
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   Region wise performance- Indian Outbound
                     Market.

CANADA
Indians who travelled to Canada between 2002 & 2004 :

                                                    Nights in
   Year                    Trips in thousands       thousands          Spend in C$ Millions

   2004                             73                  1432                       62
   2003                             67                  1297                       57
   2002                             68                  1377                       51

 Canada has been quite successful in attracting Indian Film crews for shoots. Canada
 especially is a cost-effective destination and has a wide range of experienced
 technicians, artists and other experts to assist Indian film crews.
   Source: Statistics Canada, Culture, Tourism and the Centre for Education Statistics.
                               Last modified: 2006-08-31.
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Travellers to Canada by Country of Origin - 2005
                                                                      2005
                                                                Overnight trips
                                       Trips           Nights                  Spending in Canada
                                               thousands                             C$ millions
                        1
    Country of origin
    United States                           14,390           57,331                                     7,463
    United Kingdom                             888           11,882                                     1,246
    Japan                                      398            4,750                                       557
    France                                     351            5,836                                       463
    Germany                                    311            4,900                                       410
    Mexico                                     179            3,149                                       240
    Australia                                  179            2,447                                       287
    South Korea                                173            4,466                                       247
    Netherlands                                118            1,580                                       131
    China                                      113            3,723                                       219
    Hong Kong                                  109            2,161                                       151
    Taïwan                                      98            1,536                                       110
    Switzerland                                 97            1,684                                       163

    India                                      94            1,771                                        82
    Italy                                       91            1,061                                        95
    Source: Statistics Canada,   Culture,    Tourism   and     the    Centre   for    Education    Statistics.
    Last modified: 2006-08-31.



                India was among the “top 15 countries of origin” from 2002-2005

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   Region wise performance- Indian Outbound
                    Market.
ASIA
•   The World Tourism Organisation figures reveal that around 47% of Indians
    travel within Asia to countries such as Singapore, Malaysia, Hong Kong,
    Thailand and Indonesia.

•   Singapore and Malaysia have emerged as the top leisure destinations for
    Indians.

•   Malaysia has emerged as a recent favorite destination, as a part of the
    multi-destination trip in combination with Singapore, Thailand and Hong
    Kong.

    South-East Asia, Singapore, have so far been among the hottest cruise
    destinations.

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   Region wise performance- Indian Outbound
                    Market.
MALAYSIA
•   India was one of the top 10 visitor markets for Malaysia with 1,87,918
    Indian visitor arrivals till Oct 2005.

•   Malaysia recorded a 20% surge in arrivals from India in 2004 (Jan-Dec),
    over the same period last year. Cumulative tourist receipts from India
    stand at $ 75 million with a per person average spend of US$ 400 per visit.

    According to Mr. P Manoharan, Director, Malaysia Tourism Promotion Board
    the total inbound tourist flow to Malaysia from the various Asian countries
    was 8.7 million for the period January- September 2002. Out of this the
    Southern Asia Region which comprises Bangladesh, India, Iran, Pakistan,
    Sri Lanka and others hold 20% share. India alone contributes to 14% of the
    inbound traffic from Asia to Malaysia.
    Source:MTPB

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   Region wise performance- Indian Outbound
                    Market.
SINGAPORE.
 The number of Indians visiting Singapore in 2005 was 583,000 making India one
 of the foremost visitor markets for Singapore. Indians are spending two and a
 half times more than the average visitor from any other country.
 For the period Jan-June 2005, the growth rate of tourists from India has been
 averaging over 20%, against a fall of nearly 7-8% in the same period for tourists
 from China.
 MasterCard‟s Master Index of Consumer Confidence Survey 2005 said 17% of
 their respondents prefer Singapore as a destination for their next trip abroad.
 Carriers from Singapore no longer need to tie up with Indian carriers.
 Hence air traffic between India and Singapore estimated at 1.5 million, is
 expected to grow 40% in 2004-05 in the short term.
 Ahmedabad and Amritsar may generate substantial traffic to Singapore.
 Singapore wants to raise the total number of tourists from 8.94 million to 17
 million by 2015.

                   Source:STB/Economic Times Intelligence          THINK INDIA.THINK TIMES
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                Region wise performance
                Indian Outbound Market.

HONG KONG

India was one of the key markets showing a 11.3 % increase in the January-
November period over 2004.

Total number of visitors from India: 2,49,994

Hong Kong is celebrating the „Discover Hong Kong‟ year throughout 2006


Source: Economic Times Intelligence Group.




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          Region wise performance - Indian
           Outbound Market - New Zealand
 New Zealand has been voted as the most preferred tourist destination at the
Condé Nast Traveller Awards, 2005 held in UK.

  New Zealand received top marks for scenery (99), environmental friendliness
(98.87) and safety (97).

 New Zealand also took the top overall prize, beating winners of 23 other
categories, Thailand, Australia and Italy to top the charts.

  "The result is gratifying because the readers who voted for us are affluent,
upwardly mobile professionals and, most importantly, are very interested in travel.”
said Mark Burton, Tourism Minister, New Zealand.

  New Zealand is a big hit with Indian tourists who are attracted by its natural
beauty and the varied holiday options that New Zealand provides. From adventure
sports to luxury lodges, New Zealand has a lot to offer to the discerning Indian
tourist. Indian film production companies have evinced interest in location shooting.

Source :Conde Nast Traveller UK


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    Region wise performance - Indian
         Outbound Market - UAE


  MasterCard‟s Master Index of Consumer Confidence Survey 2005
said 14% of their respondents prefer UAE as a destination for their
                          next trip abroad.
  The survey was conducted among Indians, planning personal air
                   travel in the next 12 months.




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                       Power Of Delhi and Mumbai.




         The majority of Indians travelling abroad for
         leisure and other purposes are from the metro
         cities of Mumbai and Delhi.In fact these two cities
         contribute 70 % of Indian outbound travellers.




Source:Pacific Asia Travel Association

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    Major Attractions- shopping, casino cruises,
                  location shoots.
    71% of Indian travellers listed shopping as a priority which
    is one of the main motivators for travel.
    An opportunity to visit casinos added to the attraction of
    any holiday, cruise or business trip.
    The cruise experience is a great attraction for the affluent
    Indians.The cruise industry has a short term cumulative
    market potential of around $70 billion.
    Last year, there was a growth of 20%. 30,000 travellers
    went on cruises last year and number is increasingly
    growing. The expected growth is 50 % for the current year.
    South-East Asia, Singapore, Alaska, Europe, and the
    Caribbean have so far been the hottest cruise destinations.

Source: Pacific Asia Travel Association
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                                             Cruising
The Indian film industry plays a major role in influencing affluent Indians to visit
places they had seen in the movies. In the recent past, locations such as New Zealand,
Australia, Hungary, Scotland, Canada, USA and Bali have been used for shoots.
Over the last few years, increasingly, not just business families but average Indians are
looking at cruises for their holidays.
According to the G.M. of Star Cruises, “The Indian market is poised to grow and, as
India is the flavour of the business world, it is imperative for cruise companies to come
here.”
TCI has introduced cruising to Indians over a decade ago when it brought in the QE II.
Last year Star Cruises took over 70,000 Indian passengers. Of these only 30 % were
corporate groups. The rest were Free Individual travelers (FITs). Star hopes to double
its number this year.
Indian preferences are – shorter holidays and plenty of activities.
Exotic cruises preferred by the Indian traveller :
                                               Yangtze, China
                                         Volga and Dneiper, Russia
                                          Amazon, South America
                                                 Nile, Egypt
                                         Baltic cruise from Helsinki
Source: The Economic Times Intelligence Group Sept 9, 2006
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      The Road Ahead - TAP THE GROWING
               INDIAN MARKET
                                  THE INDIAN TRAVELLER
                                             I


      Diaspora-              LEISURE/FIT          Honeymooners      Business
    Mainly westward         Growing market       A large spending   trevellers
                                 35%                 audience         ( 30%)
The Diaspora traveller is the only outbound that has a heavy traffic towards the West.
The growth however lies in the Leisure / FITs , honeymooners and business travelers.
This sector is predicted to grow for the next five years.The good news is that this
segment is the highest spenders and make up for almost 75% of total outbound
travelers.
All Tourism Boards want a share of this segment …………….DO YOU WANT TO BE LEFT
BEHIND????

 Source:Compiled from PATA report‟02
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 CASE STUDY
Singapore Tourism Promotion Board.(STPB)
 A smart innovation, resulted in Singapore becoming the most popular
 destination amongst Indians.

 STPB published a full page advertorial .The editorial covered various tourist /
 leisure attractions in Singapore. At the center of this page was a contest box.
 To ensure maximum reader participation, the answers to the question were in
 the edit.

 The response was to the contest was tremendous and generated a strong
 interest level towards Singapore as a travel destination.

 A sustained marketing campaign and a bundling of destinations along with
 Singapore boosted growth in the numbers from India to over 20 % between Jan
 and June 2005. There was a drop of –7 to –8% in the number of Chinese.

 With more flights now connecting the two countries, the role of India in the
 Tourism economy of Singapore is becoming increasingly important.


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CASE STUDY
BRITISH TOURIST AUTHORITY ( BTA)

In an effort to tap the potential Indian outbound market BTA sponsored a 4
page colour pull out with The Economic Times titled “ A PASSAGE TO
BRITIAN”.

The Entire report was coordinated by BTA with support from their various
strategic partners both to share costs and contribute towards making an
interesting edit for both business and leisure travelers.The report ended
with a contest box . In this case also the answers to the questions were
within the edit itself.

Consequently UK was the favorite destination for all Indians travelling to
Europe.



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Holidays – Frequency of Travelling Abroad
                                                 Once in
                                                 Six
                                                 Months     Once in                               Once in
                                                 or more    6        Once in Once in Once in      5 or
                                        Travel   frequent   Months- 1-2       2-3      3-5        more
                               All      Abroad ly           1 Year   Years    Years    Years      Years
     Est. Individuals (000s)     800429     1417      124        334      384      203      164        209
     All Publications
     Deccan Chronicle               969      11        2           1*                3        2         3
     Deccan Herald                  542      11 *                  1-                4        2         3
     DNA                            444       2-            *       *           *      *          -
     Financial Exp                   58 *       -           -       *           -      -          -
     Hindu Business Line            147       4*            -               2        2-           -
     Hindu                         2573      71        6          11       25        6       12        10
     Hindustan Times               3504      98        6          29       25       11       10        18
     Midday (Eng)                   600      12 *        *                  4        2*                 5
     Mumbai Mirror                  748      12        2*                   2        1        3         2
     New Indian Express             624       6-         *                  1        2-                 2
     Statesman                      326       3-         -             *             2        1-
     Telegraph                     1007      24        2           3        9        3        2         6
     The Economic Times             803      38        3           7       17        4        5         2
     The Indian Express             508      20 -                  1        3        8        6         1
     Times Of India                6923     178       13          40       43       27       20        35
     Vijay Times                    442       1-            -               1-         -        -
     Business Std                    58       2-            *          -      -        *        -
     Business World                 286      10        1           1        3        2        3*
     India Today (Eng)             3137      92       11          18       20       11       11        20
     Outlook                       1093      39        6           8        6   *             3        15
     Time                           185      12        3           1        2        2        1         2
     Business India                 428      35        9           5        8        3        3         7
     Business Today                 600      31        8           3        7        5        4         4
     Femina                         574      31 *                  5        5        7        3        10
     Frontline                      321      18        3-                   7        2        4         2
     Outlook Money                  160      14 *                  6        6   -        -              1
     Woman'S Era                    454      20 -                  2        5        2        3         9
     Cine Blitz                     231      13        3*                   4   *             2         3    All figures in 000s
     Cosmopolitan                   143       9        4           2        3   -        *        -
     Elle                            47 *       -        -             *        -        -        -
     Filmfare                      1270      31        3           5        7        4        5         7
     India Today Travel Plus        140       1-         -             -        *        *      -
     Outlook Traveller              205       6        4*              -        *             1-
     Readers Digest                2046      91       11          19       26       11       10        13
     Savvy                          112       8*                   3        3        1*         -
     Society                        267      17        7           3        1        5        1*



      SOURCE: The Indian Readership Survey – Round 2, 2006
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