What I found most striking is not only how India's tourism industry is coming into fruition, but the number of factors which are supporting its growth - not only has its success been driven by an immensely effectively "Incredible India" campaign, but also the emergence of so many low cost carriers to boost internal travel, the investment in more budget and premium hotels to cater more to growing demand, and also the aggressive marketing activities of inbound travel agents such as Kuoni which are fuelling growth so well into India.
Q
The tourism market in India is expected to quadruple in value by 2020. What is driving this growth?
A
A number of factors, but most notably:
1) The emergence of low cost carriers is a striking trend, and expected to be a major driver in both domestic and international tourism. India is such a huge country, and each state is so different, and so the opportunities in domestic tourism are huge, especially now given the emergence of these low cost carriers. They have filled a previously huge gap in the market - previously, rail was the main means of transportation across the country, and these trains are generally very overcrowded and uncomfortable. Before low cost carriers came onto the scene, domestic airline trips were unaffordably expensive to the masses (for example, a domestic flight within India would cost the same as an international trip from India to Malaysia or Singapore). Therefore, these low cost carriers are meeting the needs of those wanting to visit their friends and families more regularly, as well as the up-and-coming consumer group of young budding Indian travellers. It has also provided a gateway for international travellers visiting India to experience not only the major cities, but also fly to the second-tier cities.
2) India's government is also making strides in other certain growth areas such as Medical Tourism. India's world-class health facilities and all kinds of medical and health-related solutions are offered, and a growing number of visitors can undertake these treatments at around one-fifth the cost of European and American countries. India also offers holistic healing packages with rejuvenation of the mind, body and soul, which is an ever-growing need in busy and stressful lifestyles experienced in the West, and so this is expected to boom over the next few years. Spas too are riding high on this success and today have mushroomed all over the country.
Q
What are the hurdles that India needs to overcome to truly compete as a holiday destination for non-Indians who might otherwise go to the Caribbean or Western Europe?
A
In short, the country still has infrastructural issues, and for the first-time visitor, it is still incredibly difficult to get around independently, due to the lack of signposting, comfortable amenities and brochures or maps in English, especially in the South. Transport connectivity is also difficult for those travelling for the first time in India. Obviously the hygiene issues and absolute need to improve sanitation is a big hurdle which India needs to address without compromising its rich culture, if it is to compete aggressively with more established tourism markets.
Q
If you were going to make an investment in the Indian tourism market, what would seem to be the best bet?
A
Budget hotels would be a great investment. Backpackers are already the main type of international leisure traveller to India, and will remain the key inbound travel group for at least the next two-three years. The number of adventure travellers and backpackers is expected to grow significantly, and budget hotels are in a great position to capitalise from this. Furthermore, even when facing a downturn or slowdown in number of international visitors, budget hotels are also well-positioned to cater to domestic tourists, who are also set to increase in number.
Q
Getting past the statistics and numbers, how does actually being in India compare to the image one would get from simply reading the research report?
A
From only reading the report, you miss several very essential characteristics of India, including how colourful and vibrant the country is. The report also does not portray the loud noise, bright and impressive sights, pollution, chaos, and energy radiated by the people and ambience. To the visitor, it is nothing short of overwhelming, exhilarating and moving. Visitors going there with an open mind will be the ones who will adapt more readily to the initial culture shock, and once visitors do get past the culture shock, it is an amazing experience.
Parita Chitakasem is Asia Pacific Travel and Tourism Manager at Euromonitor International, a leading independent provider of business intelligence on industries, countries and consumers.
