 |
According to a joint study by Assocham and Yes Bank, at present the industry employs less than four lakh people, but by 2019, this figure could go up 10 times, thanks to expected capital investments worth US$ 94.5 billion.
Need to perk up
More than two billion people are expected to join the middle-class over the next 20 years. So, big questions face the industry: are they ready for this rising tide of new customers? Is there sufficient skilled workforce to guarantee high standards of service and experience?
Although the average growth rate and estimated turnover of the T&T sector is fine, the roadmap for fast growth needs to be structured thoughtfully on areas such as human resource development, infrastructure, taxation, environmental and security considerations. This apart, current taxes that are levied are not helping the industry at all.
Also a barrier on tariffs is required. To deal with all these problems, there is a need to have a licensing policy at the national level. “Our association meets the tourism department before the Budget to submit our proposals for the Industry and none are considered by the government. On the contrary, fuel price and taxes continue to rise,” says Rajji Rai, President,Travel Agents Association of India.
| Fast Facts • World Travel & Tourism Council (WTTC) states demand in India is growing at 8 percent annually and will do so till 2019, thereby making India the second biggest tourist destination after China. • Retail consultancy Technopak, in an analysis, says that although the hospitality sector suffered negative growth (-3.41 per cent) in 2008–09 due to the adverse global economic conditions, it is back in the positive growth territory and clocked a growth of 2.2 per cent in 2009-10. |
 |
What The Industry Needs • Huge infrastructure investment on better roads, better airports and ground for better connectivity • Proper solid waste management • Awareness via roadshows and seminars pan India |
HR has become hip!
Today it is all about board rooms and conferencing. In fact, HR has become a strategic partner in the travel and tourism industry. From thinking out-of-the-box innovative practices to creating a talent pool and from hyping work discipline to imparting formal training, HR here is on a roll.
Major dips and downs
 |
| Getting tech savvy |
| • Online travel ticketing and bookings of tour packages, hotels and all modes of transport • Soaring number of travel web sites • Technology in the Destination Management Organizations • E-Learning offers and courses • Security systems at airports, hotels and the like, such as automated video surveillance. |
The one key event which had the industry in the blues was the economic meltdown. India suffered many cancellations on bookings and air fares took a dip. In 2009, Iceland’s volcanic eruption created a volcanic ash cloud that grounded planes across Europe. It cost Europe’s airlines more than US$ 1.7 billion, according to the International Air Transport Association (IATA). “This unprecedented shut-down was a massive wake-up call for us. The no-fly zone hit the international association sector as well as corporate meetings,” explains Rajji Rai, “Before this the terrorist attacks in US and Mumbai impacted our industry strongly.”
An Industry On the Ascent
Looking at the statistical figures of tourists coming to India, the rate is going up and there is great potential as well. “It is good that more and more new airports are coming up. Railways have increased the services. Road transport is better. National highways are also being constructed,” says Rai.
It also helps that the ministry at the center is acting as a facilitator –there is a proposal for a tax holiday for hotels businesses investing in rural areas and hinterlands. There are also efforts to boost untapped tourism avenues where private players are being roped in too.
The Union Ministry is developing new products such as rural tourism, sustainable tourism, adventure tourism, sports tourism, wild life tourism, eco-tourism, medical tourism, etc.
Outbound tourism from India is growing by leaps and bounds - so is domestic tourism. More and more Indians are travelling all over India. “All this augurs well for our industry but still the Government does not think it fit to give industry status to tourism,” concludes Rai.
Subscribe to this comment's feed
| < Prev | Next > |
|---|
