Inbound travel to India did not reach the estimated levels in 2012. The figures dropped from over 10 per cent growth in the early months to five per cent towards the end of the year. Subhash Goyal, President, Indian Association of Tour Operators (IATO) and Chairman, STIC Travel Group informed, “India recorded 6.7 million arrivals last year compared to 6.3 million in 2011. The growth in 2011 was 8.9 per cent whereas in 2010, arrival growth was even higher at 11.8 per cent. The growth was more than the global average in the beginning, but came down as the year progressed.”
Experts believe that the major reason, of course, is the depreciating financial status in the global market. Europe, which is one of the key source markets for India, continues to be in financial distress. Except for Germany, all other key European markets – France, Italy, Spain, etc., are facing an economic crunch. Vikram Madhok, Managing Director, Abercrombie & Kent –India, said that the global financial crisis is definitely going to affect inbound tourism as it did in 2008. “Europeans who want to travel to India will start travelling within Europe and take short holidays. There could be at least 10-15 per cent dip in total inbound tourists, especially those coming from the UK, Italy, France and Spain.”
Agreeing with Madhok, Goyal said, “As a tour operator I have witnessed a significant decline in European tourists coming into India and I attribute this decline to a weak global economy and the country’s lack of tourism infrastructure.”
Apart from the recession in the European market, the expensive airfares of Indian airlines is another reason for deteriorating inbound traffic into the country, believes Goyal. He added that Indian visa procedures are not at all tourism-friendly.
In addition, there are insufficient efforts to transform India into a tourist destination relative to rival countries such as Thailand, Singapore, Egypt and Turkey. Karl Dantas, Ex- President, Enterprising Travel Agents Association (ETAA) opined, “We need more international gateway airports, an easier visa regime and basic services that affect a tourist’s experience.” He further informed that due to the high taxation in many states, high room rates and domestic airfare, India’s itineraries are quite expensive and may not be attractive enough compared to the other Asian Countries.
According to Rajji Rai, Special Advisor for the Travel Agent Associations of India, the other reason India lags in attracting European arrivals is tourism promotion. “India needs to promote its tourism offerings aggressively to make it attractive to foreigners. Tourism recognition contributes significantly to strengthening the brand and profile of the destination. We also need to reach new markets to sustain the inbound tourism potential.”
