In 2023, India saw 9.23 million foreign tourists, still below the 2019 pre-pandemic figure of 10.93 million. Experts predict a potential rebound in 2024, possibly surpassing pre-pandemic levels. But is India doing enough marketing to achieve these numbers? PATA Tourism Powerhouse Summit unwrapped the challenges & solutions.
The recent Tourism Powerhouse event, organised by the Pacific Asia Travel Association (PATA) India chapter, brought together key industry professionals to discuss the current challenges and future of India’s inbound tourism sector. The conversation centered on marketing India as a premier tourist destination for overseas tourists and addressing the myriad challenges faced by the industry. The event culminated in a series of action points directed at the Director General of Tourism, highlighting the collective vision for the industry’s growth and the need for robust government intervention.
A clarion call for marketing India
Despite a modest recovery in 2023 with 9.23 million foreign tourists, India’s inbound tourism figures still lag behind the pre-pandemic numbers of 10.93 million in 2019. Experts foresee a potential rebound in 2024, possibly exceeding pre-pandemic levels. PATA’s report estimates 13.34 million inbound tourists by 2024, a 22% increase from 2019. But is India doing enough marketing to achieve these targets?
Ragini Chopra, EVP – Corporate Affairs, InterGlobe Enterprises, and a PATA Committee member, expressed concerns about the lack of international marketing efforts for India as a tourist destination. Chopra noted that while neighbouring countries actively attract the Indian market, India has been complacent on the inbound front, focusing primarily on domestic tourism. She emphasised the urgent need for the ministry to address this gap and take on the challenge of promoting India internationally.
The significance of digital marketing was also underscored during the summit, with industry players highlighting how countries like Saudi Arabia invest heavily in this domain. “The Indian tourism industry needs to leverage digital platforms to enhance its global presence and competitiveness,” one PATA member reiterated.
While some suggested international campaigns and collaborations with marketing agencies, others advocated for a focused international tourism strategy, especially considering the closure of Incredible India’s overseas tourism offices in 2023. Jatinder Taneja, Honorary Treasurer of PATA India, highlighted the need for embassies and missions to appoint tourism specialists to handle all tourism-related queries, urging the Ministry of Tourism to prioritise this. “International marketing is one of key burning issues being talked about now. The responsibility now falls on the embassies/ respective missions, who should appoint two or three tourism specialists to handle all tourism-related queries,” he said.
R. Parthiban, Director at Swagatam Tours, pointed out that embassies are often unable to fulfill their roles effectively. “Embassy staff cannot adequately address client inquiries and are often not approachable,” Parthiban said. He noted that India’s presence at European exhibitions is minimal, with only a few agents representing the country. “India’s participation is nearly zero, with small 2’4 booths representing the country, compared to others. No travel writers are being invited despite our offerings. We need a better approach, learning from smaller countries like Bhutan and Malaysia, which excel in tourism visibility,” he added.
Additionally, there were suggestions for expediting the National Tourism Policy and a National Tourism Board to elevate India’s presence globally.
Focused strategies for segments
Capt. Swadesh Kumar, Founder of Shikar Travels, emphasized the need for a focused approach to leveraging adventure tourism’s immense potential. He proposed a strategic partnership with Nepal and Bhutan to enhance India’s position in this segment, particularly focusing on the Himalayas. This collaboration would involve utilising local guides and resources from all three countries, thereby positioning India as a key player in the adventure tourism market.
Bobby KS Sawhney, Managing Director, Bakshi Transport Service (P) Ltd & Hony. Secretary of the Indian Tourist Transporters Association highlighted practical challenges impacting the overall tourist experience, such as the lack of speed governors and loan availability for imported vehicles in Delhi. He recommended allowing vehicles to be registered without speed governors until a permanent solution is found. He also stressed the need for easier access to loans from nationalised banks and financial institutions for imported vehicles, as this financial barrier hampers the industry’s ability to operate optimally. Sawhney called for the Ministry of Tourism’s intervention to address these issues and advocate for necessary changes.
Furthermore, Taneja from PATA emphasised the importance of a well-planned exhibition schedule for the entire year to facilitate joint participation and better planning. He raised concerns about the cumbersome process of obtaining special permission from the Ministry of Finance for each exhibition under the NDA scheme, highlighting the lack of clarity on its utilisation. He emphasised the urgency of addressing these key points to support the tourism sector’s growth and competitiveness.
Budget allocation, job creation, and other steps
Another recurring topic at the summit was the need for increased funding and better government support for tourism. Industry leaders proposed arranging a joint meeting with the Ministries of Finance and Commerce to request an increased budget allocation for tourism. This aligns with IATO’s recent letters to Prime Minister Narendra Modi and the Finance Ministry seeking better budget allocation for promoting India’s inbound tourism. Additionally, ICPB requested the Ministry of Tourism to re-initiate the iMICE initiative, conceptualized as a 125-crore project but never realized.
The fraternity also advocated for formal linkages between associations like PATA and CII with the parliamentary committee of tourism to align industry needs with government policies and plans. Marketing incentives to attract foreign tour operators and boost India’s tourism sector post-COVID were discussed, as well as the issues faced by tour operators due to increased taxes and stringent government policies. The discussions also touched on the importance of job creation to encourage the importance of sector.
MoT’s assurance
In response to the extensive discussions and proposed action items, the Director General (DG) of Tourism, Manisha Saxena, assured attendees that these points would be addressed promptly. Saxena acknowledged the issues related to the closure of overseas offices and shared that the Ministry of Tourism is currently in a transition phase. “During this transition, we are collaborating with missions to develop a roadmap for their operations. This includes considering market representative agencies or dedicated staff,” she said.
Saxena added that plans are underway to rewrite the existing overseas tourism marketing plan scheme, with an emphasis on gathering data to segment and target both traditional and new source markets. “There is growing interest in India from regions like South America, South Africa, and Southeast Asia. Also, the airlines are expanding routes globally coming into India, necessitating a focus on attracting traffic from these new regions,” she explained.
“With regards to international visibility, we value industry input on target markets, offerings, and participation in fairs. Your feedback is crucial for advocating more fairs, FAM trips, and shows. Continuity in efforts is essential.”
With a new tourism minister now in supervision, the DG committed to presenting industry suggestions to the Ministry of Tourism and arranging a joint meeting with the Ministries of Finance and Commerce for increased budget allocations. Saxena also proposed following up on the letter to the Prime Minister, emphasising the need for greater focus and funding for tourism marketing.
Emphasising experiences
“The current Indian government prioritises tourism as a key driver of economic growth and employment,” highlighted Saxena. “This means we need to not only continue marketing existing attractions but also develop new destinations, enhance experiences at current ones, and uncover hidden gems. Tourism is now about creating experiences, not just promoting destinations.”
She further asserted the importance of catering to young adults who prefer budget travel but still expect clean and comfortable accommodations. “Improving the quality of existing budget accommodations is essential. We need to increase capacity, possibly by creating diverse hospitality districts with various accommodations at new places, including budget options like hostels and pod hotels.”
“The Ministry of Tourism is also focusing on extensive destination development, but we cannot cover the entire country alone. We need cooperation and expertise, not just funds. Creating tourism products is an art, and the industry is best suited for this,” she added.
“We have 60 G20 locations with infrastructure for conventions and conferences, but we need to curate and segment these offers appropriately. The industry can guide us on what types of events to target, from small, bespoke events to large conferences. We need to work with state governments to increase accommodation, which is a significant bottleneck. We’ve had multiple discussions with states to understand which destinations they want to market and how we can support them. We’ve also engaged with the industry and young startups in the creative and cultural economy to learn from their innovative work in curating experiences. Because it’s essential to enhance the overall tourist experience, not just focus on marketing and promotion,” she emphasised.
