In an exclusive tête-à-tête with T3 at the recently concluded Arabian Travel Market (ATM) 2013, Taleb Rifai, Secretary-General, UNWTO shares his views on the current state of the Indian tourism industry
International tourist arrivals grew by 4 per cent in 2012 to reach 1.035 billion, according to the United Nations World Tourism Organization (UNWTO) World Tourism Barometer and UNWTO forecasts international tourist arrivals to increase by 3 per cent to 4 per cent in 2013, much in line with its long term forecast for 2030: + 3.8 per cent a year on average between 2010 and 2020. Emerging economies regained the lead over advanced economies, with Asia and the Pacific showing the strongest results and India is expected to play a major role in this pie, already showing a 22 per cent increase in international tourism receipts in 2012. However, Rifai believes that India has a long way to go and tourism needs serious political will and support to be cultivated and nurtured.
India: A success story
As a tourist destination India has started realising its vast potential and is gradually transforming into a well cultivated destination. The constant aggressive branding at international forums and the ‘Incredible India’ campaign is proof enough that the India’s Ministry of Tourism (MoT) is making extra efforts to attract international traffic into India.
The ‘Incredible India’ campaign is the expression of a political will that started to see the benefits of international traffic into India. As opposed to surveys and statistics, I do not agree that the international tourist traffic to India is slow. India is one of the fastest growing emerging markets in terms of tourism.
But I do believe that the traffic inflow should become more structured. India, like many other emerging markets, needs to cultivate its infrastructure, diversify its tourism offerings and make India an approachable destination and not just a market for the niche luxury travellers. India’s promotional strategy needs to match the reality on ground and live up to the expectations of international travellers.
Tourism to be supported by aviation
In the last 10 years, the Indian aviation industry has grown and expanded exceptionally due to the advent of low cost carriers and diversification in the network. These factors have resulted in the growth of the tourism industry. The sector has shown its capacity to adjust to the changing market conditions and, although at a slightly more modest rate, is expected to continue expanding in 2013. Tourism is thus one of the pillars that should be supported by the Civil Aviation Ministry as part of the solution to stimulate economic growth and also increase inbound and outbound traffic.
The Ministry of Tourism (MoT) and the Civil Aviation Ministry need to start working together with a common agenda. Economic regulations, taxations and travel facilitations are the few major focus areas that tourism and aviation stakeholders should look into. Working in synergy and acting upon the challenges will help improve the current state of the aviation Industry.
Aviation and tourism have an interdependent relationship. The tourism market grows by itself with new connections, and a popular destination attracts the operation of more flights. The rapid growth of the tourism industry, both domestic and international, supported by the entry of airline operators offering low fares, has led to the rapid growth of air traffic in India. The Government has done a commendable job so far by streamlining various policies to promote greater investment thus making the Indian aviation industry an integral part of the global aviation industry.
Easier travel facilitation and intelligent taxation
Today, unnecessarily complicated, lengthy and overpriced travel and entry formalities still make it extremely difficult for many tourists especially from some of the world’s fastest growing source markets to travel. Improving visa processes and entry formalities could generate an extra US$206 billion in tourism receipts for G20 countries and create as many as 5.1 million additional jobs by 2015.
Travel facilitation can be a lever to stimulate India’s tourism sector. There is significant room for improving visa procedures, namely considering the possibilities offered by technology. India should revisit their existing visa regime and ease norms and procedures for facilitating free movement of tourists to their countries.
Tourism sector holds potential to create one job for every 43 visas granted and the number is much lower in developing countries like India. India has recently relaxed tourist visa rules and this is a huge effort to bring in international tourists. India should advocate intelligent taxation, raising awareness of the need to evaluate the economic impact of the raise or introduction of new taxes on travel and tourism.
Tourism: A driver for employment and economy
Without proper recognition and support at the highest level, tourism’s potential cannot be fully harnessed. In India, the Government need to tap tourism’s potential in bringing in new jobs and investment; in improving the lives of their people. The message is simple: tourism is a sector that can deliver the goals of economic growth, job creation and fairer development. The Government just needs to put the right policies in place. Many countries such as the USA, China or Spain, have understood that message and built recently national integrated plans for tourism development.
